Daily Current Affairs- 10th May 2025

Daily Current Affairs- 10th May 2025

Ceasefire Declared Between India and Pakistan Amid Escalating Tensions

In the News: On May 10, 2025, India and Pakistan announced a full and immediate ceasefire following a week of intense cross-border hostilities. The agreement was reached after U.S.-led mediation, with additional support from Saudi Arabia, the United Kingdom, and Turkey. The ceasefire aims to halt military actions by land, air, and sea, bringing relief to the region and preventing further escalation between the nuclear-armed neighbors.

Key Points:

• Triggering Incident: The conflict escalated after a terrorist attack on April 22, 2025, in Pahalgam, Indian-administered Kashmir, where 26 tourists were killed. India attributed the attack to Pakistan-based militants, leading to retaliatory strikes and heightened military engagements.
• Military Operations: Both countries launched operations—India's "Operation Sindoor" and Pakistan's "Operation Bunyan al-Marsous"—resulting in missile and drone strikes, with significant civilian and military casualties on both sides.
• Ceasefire Agreement: The ceasefire was announced by U.S. President Donald Trump and confirmed by officials from both nations. It took effect at 5:00 PM IST on May 10, 2025. The agreement includes a halt to all military actions and plans for further discussions between the Directors General of Military Operations (DGMOs) scheduled for May 12. 

2025 World Economic Outlook Report

In the News: On April 22, 2025, the International Monetary Fund (IMF) released its World Economic Outlook (WEO) report, highlighting a slowdown in global economic growth due to escalating trade tensions and policy uncertainties. The report projects global growth to decline to 2.8% in 2025, down from the previous forecast of 3.3%.

Key Points:

• Global Growth Projections: The IMF forecasts global growth at 2.8% for 2025 and 3.0% for 2026, both below the historical average of 3.7% from 2000 to 2019. The downgrade is attributed to heightened trade tensions, particularly due to increased U.S. tariffs, and elevated policy uncertainty.
• Regional Outlooks:
  • United States: Growth is projected to slow to 1.8% in 2025, a significant downgrade from earlier forecasts, due to the impact of new tariffs and policy uncertainties.
  • Euro Area: Growth is expected at 0.8% in 2025, with Germany's forecast reduced to 0.0% amid manufacturing slowdowns and policy uncertainties.
  • China: The growth forecast has been lowered to 4.0% for 2025, reflecting the adverse effects of trade tensions and domestic economic challenges.
  • India: India's economy is projected to grow at a robust 6.5% in 2025, maintaining its position as one of the fastest-growing major economies.
• Inflation Trends: Global headline inflation is expected to decline to 4.3% in 2025 and 3.6% in 2026. However, the pace of disinflation is slower than previously anticipated, with advanced economies experiencing upward revisions due to trade-induced price pressures. 

India Abstains from IMF Vote on $2.3 Billion Aid to Pakistan

In the News: On May 9, 2025, the International Monetary Fund (IMF) approved a $2.3 billion financial assistance package for Pakistan, comprising a $1 billion disbursement under the Extended Fund Facility (EFF) and a proposed $1.3 billion under the Resilience and Sustainability Facility (RSF). India abstained from the vote, citing concerns over Pakistan's track record with IMF programs and the potential misuse of funds to support state-sponsored cross-border terrorism.

Key Points:

• India's Abstention Explained: India abstained from the IMF executive board vote due to procedural constraints that do not allow for a formal "no" vote. By abstaining, India formally recorded its dissent and highlighted its objections to the financial assistance package for Pakistan.
• Concerns Over Fund Misuse: India expressed apprehensions that the IMF funds could be diverted to support state-sponsored cross-border terrorism. The Indian government emphasized the risks associated with providing financial aid to a country with a history of misusing such funds.
• Pakistan's Track Record: India highlighted Pakistan's repeated reliance on IMF assistance, noting that the country has received disbursements in 28 of the past 35 years. This pattern raises questions about the effectiveness of IMF programs in bringing about sustainable economic reforms in Pakistan. 

First Round of India–New Zealand FTA Negotiations Successfully Concludes

In the News: On May 9, 2025, India and New Zealand concluded the first round of negotiations for a proposed Free Trade Agreement (FTA) in New Delhi. This development follows the resumption of talks in March 2025 after a decade-long hiatus, aiming to enhance bilateral trade and investment between the two nations.

Key Points:

• Negotiation Timeline: The first round of discussions took place from May 5 to May 9, 2025, in New Delhi. This round built upon virtual discussions held earlier in the year.
• Historical Context: India and New Zealand initially began FTA negotiations in April 2010, but talks stalled in February 2015 after ten rounds.
• Trade Growth: Bilateral trade between the two countries reached USD 1.3 billion in the financial year 2024–25, marking a 48.6% increase over the previous year.
• Negotiation Focus Areas: The discussions covered trade in goods and services, trade facilitation, and sectors of mutual economic cooperation.
• Challenges Identified: Key challenges include disparities in tariff structures—New Zealand's average import tariff is 2.3%, while India's stands at 17.8%—and New Zealand's request for greater access to India's dairy market, which India has historically protected.
• Future Outlook: Both countries aim to finalize the FTA by the end of 2025, with the next round of negotiations scheduled for July 2025. 

La Prensa Honoured with UNESCO Press Freedom Prize Amidst Government Repression

In the News: On May 3, 2025, UNESCO awarded Nicaragua’s oldest newspaper, La Prensa, the 2025 UNESCO/Guillermo Cano World Press Freedom Prize. This recognition highlights the newspaper's unwavering commitment to independent journalism despite severe government repression under President Daniel Ortega and Vice President Rosario Murillo. The award has intensified tensions, leading Nicaragua to announce its withdrawal from UNESCO.

Key Points:

• Award Significance: The UNESCO/Guillermo Cano World Press Freedom Prize, established in 1997, honours individuals or organizations that have made significant contributions to the defence and promotion of press freedom, especially under dangerous circumstances. Named after Colombian journalist Guillermo Cano Isaza, who was assassinated in 1986, the prize underscores the importance of courageous journalism.
• La Prensa's Resilience: Founded in 1926, La Prensa has faced numerous challenges, including censorship, asset confiscation, and arrests of its staff. In 2021, the Nicaraguan government raided its offices, arrested its manager Juan Lorenzo Holmann, and forced the newspaper to cease its print edition. Despite these obstacles, La Prensa continues to operate online, with its journalists working from exile in countries like Costa Rica, Spain, Mexico, Germany, and the United States.
• Government's Reaction: The Nicaraguan government condemned UNESCO's decision, labeling it as "unacceptable and inadmissible." Foreign Minister Valdrack Jaentschke accused La Prensa of promoting foreign intervention and betraying national values. In protest, Nicaragua announced its withdrawal from UNESCO, effective December 31, 2026. 

IEA’s Global Methane Tracker 2025

In the News: The International Energy Agency (IEA) released its Global Methane Tracker 2025 report, highlighting persistent high levels of methane emissions from the energy sector despite available mitigation technologies. The report emphasizes the urgent need for actionable strategies to address methane emissions, a potent greenhouse gas contributing significantly to global warming.

Key Points:

• Methane's Impact: Methane is responsible for approximately 30% of the rise in global temperatures since the Industrial Revolution. It has a much shorter atmospheric lifetime than carbon dioxide but is significantly more potent in trapping heat.
• Energy Sector Emissions: In 2024, the energy sector emitted around 145 million tonnes (Mt) of methane, accounting for over one-third of human-induced methane emissions. Oil operations contributed approximately 45 Mt, natural gas operations nearly 35 Mt, and coal over 40 Mt.
• Abandoned Infrastructure: For the first time, the IEA included emissions from abandoned oil and gas wells and coal mines, estimating around 8 Mt of methane emissions in 2024. These sources now rank as the fourth-largest fossil fuel methane emitters globally.
• Mitigation Potential: The report states that approximately 70% of methane emissions from the energy sector can be reduced using existing technologies, such as leak detection and repair, at little to no net cost.
• Global Initiatives: While initiatives like the Global Methane Pledge aim to reduce methane emissions by 30% by 2030, the report notes a significant gap between commitments and actual implementation.
• Regional Highlights: The Middle East and North Africa region emitted around 20 Mt of methane in 2024, primarily from oil and gas operations. Flaring accounted for about 25% of these emissions. Iraq, Iran, and Algeria were responsible for over 30% of the region's flared volumes.