Catch the top 5 current affairs of 7 August 2025 crucial for UPSC, SSC, TSPSC, and other competitive exams. Highlights include: The U.S. imposing 50% tariffs on Indian imports, India's ethanol fuel transition with E20, China's strategic tech pressure on India, Aadhaar face ID for exam authentication, New maritime bills modernizing India's shipping laws. Each topic is significant for GS2, GS3, Essay, Economy, and International Relations sections. 1. India–USA Trade Relations: August 2025 Update 📢 What’s the News? On August 6, 2025, former U.S. President Donald Trump signed an executive order imposing an additional 25% tariff on Indian imports. This move, citing India’s ongoing oil trade with Russia, effectively raises total U.S. tariffs on select Indian goods to 50%. The measure is set to take effect 21 days after August 7, 2025. 📌 Key Trade Highlights Total Bilateral Trade: $129.2 billion U.S. Exports to India: $41.8 billion (↑ 3.4% from 2023) U.S. Imports from India: $87.4 billion (↑ 4.5% from 2023) U.S. Trade Deficit with India: $45.7 billion (↑ 5.4% from 2023) India’s Major Exports to the U.S. Precious Stones & Metals – Diamonds, gold Pharmaceutical Products – Generic drugs, APIs Apparel & Textiles – Garments, cotton, home textiles Engineering Goods – Auto parts, machinery Organic Chemicals IT & Software Services – Though not in goods trade, IT services contribute significantly USA’s Major Exports to India Petroleum & Crude Oil – Crude and LNG exports rising Aerospace & Defense Equipment – Aircrafts, defense systems Medical Devices & Instruments – Surgical and diagnostic tools Electronic Goods – Semiconductors, computer components Industrial Machinery – Manufacturing, automation equipment Agricultural Products – Almonds, apples, soybeans 💥 Impact of the New Tariff Policy Sectors at Risk: Textiles Gems & Jewelry Footwear Seafood Estimated Losses: Over ₹24,000 crore MSME Impact: ~55% of Indian exports to the U.S. could be affected, with micro, small and medium enterprises (MSMEs) particularly vulnerable 🌐 Broader Global Context The tariffs follow the collapse of bilateral trade negotiations, marking a sharp downturn in U.S.–India ties. Trump has hinted at further tariff actions, including on semiconductors and high-tech sectors. The move comes amid possible U.S.–Russia diplomatic shifts, with Trump signaling a meeting with Russian President Putin, citing the tariff as a factor in nudging forward Ukraine ceasefire talks. ⚖️ Legal and International Implications India has raised concerns over selective U.S. targeting, as other countries like China continue purchasing Russian oil without similar penalties. Questions are emerging over the legal basis of these tariffs, especially use of the International Emergency Economic Powers Act (IEEPA)—previously challenged in U.S. courts. At the World Trade Organization (WTO), India may face hurdles due to the paralysis of the Appellate Body, making dispute resolution difficult. 🔍 Implications for India Small businesses that export to the U.S. face immediate pressure due to thin profit margins and high dependency on U.S. markets. Investor confidence may be shaken, especially with uncertainty over U.S. trade policies. The episode is seen as a wake-up call for India to reduce over-dependence on select export markets. 🔧 Way Forward Business leaders and economists are calling for structural reforms: Anand Mahindra (Mahindra Group) has urged a national-level “Manthan” (introspection) to find India’s economic “Amrit” (elixir). Focus areas for reform include: Strengthening MSMEs Boosting domestic manufacturing Scaling up tourism Simplifying the ease of doing business Indian policymakers are considering: Diplomatic solutions to de-escalate trade tensions Diversifying export destinations beyond the U.S. Building self-reliant capabilities across vulnerable sectors 2. Ethanol-Blended Fuel (E20) in India: Facts, Concerns & the Way Forward 📰 What’s the News? On August 6, 2025, Union Minister Nitin Gadkari accused petrol lobbies of fueling misinformation around E20 fuel, India’s newly rolled out 20% ethanol-blended petrol. He clarified that the government’s shift toward ethanol is scientifically backed, environment-friendly, and designed to boost rural economies. India has achieved the E20 blending target five years ahead of schedule, with E20 now available at selected petrol pumps nationwide. 📌 Key Facts & Government Position E20 Fuel: Contains 20% ethanol and 80% petrol, part of the Ethanol Blending Programme (EBP) under the National Biofuel Policy, 2018. Objective: To reduce oil imports, cut down carbon emissions, and provide additional income for farmers. Testing Agencies: ARAI, IOC R&D, and IIP studies show: No major damage to vehicle engines. Mileage may dip slightly—between 1% to 6%. Corrosion risk is minimized using fuel standards and inhibitors. 🚗 Public Concerns & Real-World Feedback Despite official assurances, many vehicle owners—especially with older or non-compliant vehicles—have reported: Mileage drops of 15–20% Concerns about engine wear and tear Poor or unclear fuel labeling, leading to confusion Fear of vehicle warranty being voided Critics on platforms like Reddit and Twitter have raised red flags about the credibility of fuel testing and suspect vested interests are undermining public discourse. 🌍 Global & Policy Context India’s ethanol push mirrors Brazil’s successful flex-fuel model. New Corporate Average Fuel Economy (CAFE) norms (from 2027) aim to treat E20–E100 flex-fuel vehicles on par with electric vehicles (EVs). The Society of Indian Automobile Manufacturers (SIAM) has started rolling out E20-compliant vehicles since April 2023. Ethanol blending aligns with India's commitment to net-zero emissions by 2070 and broader climate goals. Key Government Schemes Promoting Biofuels Ethanol Blended Petrol (EBP) Programme: Encourages ethanol extraction from surplus crops and organic waste. Pradhan Mantri JI-VAN Yojana (2019): Supports commercial 2G ethanol projects and R&D in advanced biofuels. GOBAR-DHAN Scheme (2018): Converts cattle dung and organic waste into biogas and bio-CNG, improving sanitation and rural income. 🛣️ Way Forward Public Awareness Campaigns: Ensure proper fuel labeling and educate consumers on vehicle compatibility. Retrofitting Support: Offer conversion kits or incentives for older vehicles to run on E20. Independent Testing: Promote transparent fuel testing by neutral agencies to counter misinformation. Incentivize Biofuel Use: Encourage adoption via carbon credit schemes, R&D funding, and industry standards. Join Telegram :Join our Telegram group to get instant alerts and study materials on current affairs and important topics: Link 3. Decoding China: Strategic Lessons for a Vulnerable India 📰 What’s the Latest? Amid rising geopolitical and trade tensions, India is accelerating efforts to reduce its dependency on Chinese rare earths, a strategic resource vital for the electric vehicle (EV), renewable energy, and defense sectors. The Indian government has directed IREL (India Rare Earths Ltd.) to suspend exports to Japan, preserving domestic supply in light of China's recent export restrictions. IREL aims to increase neodymium output to 450 metric tons by FY 2025–26, with plans to double it by 2030. A ₹5,000 crore scheme is being launched to build a robust domestic rare earth value chain. 🏭 Industry Response Private companies are aligning with the national strategy: Sona Comstar is setting up rare earth magnet manufacturing facilities in India, encouraged by PLI-type incentives. Mahindra & Mahindra is shifting to alternative sourcing strategies and engineering solutions to manage long-term risks. These shifts signal a broader industrial pivot toward self-reliance in critical technologies. 🌐 Multilateral Cooperation: The Quad Factor India, along with the U.S., Japan, and Australia (Quad partners), is working to diversify global rare earth supply chains, challenging China’s overwhelming dominance. This is seen as a crucial step toward securing global technology flows and maintaining economic sovereignty. 📌 Key Points for UPSC (Prelims + Mains) China holds a near-monopoly in global rare earth mining, processing, and magnet manufacturing—often used as a geopolitical lever. India ranks 5th globally in terms of rare earth reserves, yet lacks full-scale processing and value-addition infrastructure. Recent disruptions in rare earth supply have exposed vulnerabilities in India’s automotive and EV sectors. The Indian government is modeling its rare earth strategy on Production Linked Incentive (PLI) schemes seen in other tech sectors. ⚖️ Broader Geopolitical & Economic Context India’s dependence on China for rare earths poses national security risks and undermines technology sovereignty. The automotive, renewable energy, electronics, and defense sectors are directly impacted by disruptions in rare earth supply. Strategic investments in rare earths can: Generate domestic employment Reduce the current account deficit Strengthen bilateral and multilateral partnerships in the Indo-Pacific India-China Trade & Strategic India’s trade imbalance with China—heavily tilted in Beijing’s favor—has long been a concern. Critical dependency on China for inputs like rare earths, APIs (pharma), and electronics leaves India strategically exposed. Post-Galwan (2020), India has intensified efforts under Atmanirbhar Bharat to boost domestic capacity in strategic sectors. The rare earth issue reinforces the need to de-risk supply chains, localize production, and collaborate with trusted allies. 🛣️ Way Forward Scale Rare Earth Processing Infrastructure: Expedite setting up of domestic refining and magnet-making units. R&D & Innovation: Invest in new extraction technologies, recycling, and alternative materials. International Partnerships: Leverage Quad cooperation to build redundant and resilient mineral corridors. Policy Consistency: Ensure long-term fiscal and regulatory support to attract private players. Strategic Stockpiling: Consider building national reserves of critical minerals for future contingencies. Join Telegram :Join our Telegram group to get instant alerts and study materials on current affairs and important topics: Link 4. Aadhaar Face Authentication: Enhancing Transparency in Exams & Governance 📰 Latest Developments As of June 2025, over 15.87 crore Aadhaar-based face authentication transactions were recorded, a sharp rise from 4.61 crore in June 2024 (UIDAI data). Total Aadhaar-based authentication transactions across all modalities exceeded 229 crore in June 2025. A pilot project using Aadhaar face authentication was conducted successfully during NEET UG 2025 in Delhi, offering contactless identity verification. From August 1, 2025, the Employees’ Provident Fund Organisation (EPFO) has mandated face authentication for Universal Account Number (UAN) generation through the UMANG app. 🔑 Key Points for UPSC (Prelims & Mains) UIDAI’s Face Authentication Technology uses liveness detection and real-time facial recognition, reducing impersonation and exam fraud. Supports enhanced transparency in high-stakes exams like: NEET SSC (Staff Selection Commission) RRB (Railway Recruitment Board) Increasing adoption signals institutional trust in biometric-based governance. 📜 Static Background & Policy Framework Aadhaar Act, 2016 provides the legal basis for biometric authentication. UIDAI under the Ministry of Electronics and Information Technology (MeitY) is the nodal agency. UMANG (Unified Mobile Application for New-age Governance): A flagship app for delivering central and state government services on a single platform. 🌐 Broader Digital Governance Context Aadhaar authentication is part of India’s Digital Public Infrastructure (DPI) strategy, alongside platforms like: DigiLocker CoWIN UPI Aligns with the goals of Digital India Mission and Good Governance initiatives. 🌏 Global & Ethical Implications Boosts integrity in public service delivery and reduces exam malpractice. Raises key concerns about: Data privacy and cybersecurity Informed consent Need for robust enforcement of the Digital Personal Data Protection Act, 2023 🚀 Way Forward Institutionalize Aadhaar-based face authentication for: Govt recruitment Scholarships Pension verification Ensure independent audits and algorithmic transparency to enhance accountability. Educate exam aspirants and beneficiaries on rights, protections, and opt-out provisions. Strengthen the role of Data Protection Board of India in biometric governance oversight. Join Telegram :Join our Telegram group to get instant alerts and study materials on current affairs and important topics: Link 5. Modernising India’s Maritime Laws: Strategic Legal Overhaul 📰 Latest Developments On August 6, 2025, Parliament passed two key maritime reform Bills: Carriage of Goods by Sea Bill, 2025 (Rajya Sabha): Replaces the Carriage of Goods by Sea Act, 1925 Aligns with the Hague-Visby Rules Introduces digital Bill of Lading & legal clarity Merchant Shipping Bill, 2024 (Lok Sabha): Replaces the Merchant Shipping Act, 1958 Brings India in line with International Maritime Organization (IMO) standards Covers vessel safety, crew welfare, environmental norms, and accident investigations The Bills of Lading Bill, 2025 (passed earlier) promotes digitization of maritime documentation. 🔑 Key Points for UPSC (Prelims & Mains) First comprehensive update in nearly 100 years to India’s maritime legal regime. Facilitates ease of doing business in international shipping and improves regulatory clarity. Enables adoption of e-documentation, track-and-trace, and faster cargo handling. 📜 Static Policy Linkages India is a signatory to key IMO Conventions, including: MARPOL (Marine Pollution) SOLAS (Safety of Life at Sea) MLC, 2006 (Maritime Labour Convention) India’s maritime sector is governed by: Sagarmala Programme (2015): Port-led development PM Gati Shakti (2021): Integrated infrastructure connectivity National Logistics Policy (2022) 🌐 Global Trade Context India handles ~95% of its trade by volume and ~70% by value via sea routes. Reformed laws will: Enhance India's status as a credible maritime hub Promote foreign investment in port infrastructure Lower legal disputes and customs friction 🧭 Implications for India & the World Boosts India's competitiveness in global supply chains Helps meet sustainability and carbon-neutral shipping targets under IMO 2050 plan Creates legal foundations for blue economy, marine biodiversity, and offshore renewable energy 🚀 Way Forward Capacity Building: Train maritime authorities, shipping companies, and customs officials. Digital Integration: Leverage digital tools for port community systems and cargo management. Harmonization: Align new laws with global frameworks and Free Trade Agreements (FTAs). Skill Development: Partner with IMU (Indian Maritime University) and DG Shipping to upskill maritime professionals. Sustainability Mandates: Ensure compliance with IMO GHG reduction mandates and circular economy models. Watch Video – Click Join YouTube:Subscribe to our YouTube channel for daily updates on current affairs, environment, governance, and more: Link Join WhatsApp:Join our WhatsApp group to get instant alerts and study materials on current affairs and important topics: Link Join Instagram:Follow us on Instagram for quick facts, infographics, and updates on UPSC and government exams: Link Join Facebook:Like and follow our Facebook page to stay connected with detailed analysis, live sessions, and discussions: Link Join Telegram :Join our Telegram group to get instant alerts and study materials on current affairs and important topics: Link
