Daily Current Affairs- 22nd August 2025

Daily Current Affairs- 22nd August 2025

Yamuna Water Pipeline Project: MoU for Inter-State Water Transfer

In the News: The states of Haryana and Rajasthan signed a Memorandum of Understanding (MoU) to jointly draft a Detailed Project Report (DPR) for the ambitious Yamuna Water Pipeline Project, aimed at transferring Yamuna River water via an underground pipeline to water-stressed regions of Rajasthan.

Key Points:

• MoU for Joint DPR Preparation: Under the MoU, both states will collaboratively prepare a Detailed Project Report, and establish a task force for planning and implementation oversight.
• Phase‑1 Water Transfer Details: Phase‑1 is designed to transfer up to 577 million cubic meters (MCM) of Yamuna water annually from the Hathnikund Barrage (Tajewala Headworks) to the arid districts of Churu, Sikar, Jhunjhunu, and nearby areas in Rajasthan.
• Seasonal Timing: The water transfer is scheduled to occur during the monsoon period (July to October), leveraging surplus river flow during peak season to ensure sustainable usage.
• Underground Pipeline Conveyance: The project proposes an underground pipeline network to minimize losses during conveyance, ensuring efficient and secure water transfer.
• Task Force and Consultant Appointment: Both states have constituted a task force to monitor implementation. A consultant will soon be appointed to draft the DPR, with the second meeting of the task force held on April 25, 2025 following an initial meeting on April 7.
• Regional Benefits and Political Context: The MoU and pipeline plan aim to address longstanding water scarcity in Rajasthan’s Shekhawati region, including Jhunjhunu, Sikar, and Churu, thus promising significant relief to these drought-prone districts. Some opposition leaders, however, have criticized the agreement, claiming it may dilute Rajasthan’s entitlements under the original 1994 water-sharing framework.
• Funding for Complementary Infrastructure: Complementing the pipeline project, the Rajasthan government approved an initial release of ₹95 crore toward the Yamuna Basin Development Project. This is part of a broader inter-state initiative valued at ₹11,320 crore, with Rajasthan’s total contribution pegged at ₹216 crore. The funds aim to aid the construction of upstream multipurpose dams like Renukaji (Himachal Pradesh) and Lakhwar (Uttarakhand).

CAG Review of the FRBM Act

In the News: The Comptroller and Auditor General (CAG) of India presented its annual compliance report on the Fiscal Responsibility and Budget Management (FRBM) Act, 2003, for the year 2022‑23. The report assesses how effectively the central government adhered to the Act's fiscal targets and transparency obligations.

Key Points:

• General Government Debt: As of 2022‑23, general government debt stood at 81% of GDP, up from approximately 70% in 2018‑19, exceeding the FRBM Act’s target of 60% by 2024‑25.
• Central Government Debt: Central government debt peaked at around 61% of GDP in 2020‑21, then declined to 58% by 2022‑23. 
• Debt Sustainability Signals: The debt-to-GDP ratio has reduced, with the pace of debt accumulation lower than GDP growth—suggesting improving fiscal sustainability.
• Interest Burden on Revenue Receipts: 35% of the central government's revenue receipts were used to service interest payments in 2022‑23, a slight increase from 34% the previous year, indicating sustained fiscal pressure.
• Unrealised Tax Revenue: A significant sum of ₹21.3 lakh crore in tax revenue remained unrealised by the end of FY 2022‑23—approximately 70% of gross tax revenue, pointing to inefficiencies in tax collection. 
• Fiscal Discrepancies and Transparency Issues: The CAG flagged inconsistencies across official fiscal statements—for instance, discrepancies of ₹18,000 crore in fiscal deficit figures between the Budget at a Glance and the Union Government Finance Accounts. Differences were also observed in data on loans, interest arrears, and non‑tax revenues across various budget documents.
• Guarantee Limits Within Norms: Under FRBM norms, additional government guarantees should not exceed 0.5% of GDP annually. The CAG noted that these remained controlled at 0.23% of GDP in 2022‑23, comfortably within the permissible limit.

India Suspends 11% Cotton Import Duty Till September 30 to Support Garment Industry

In the News: India announced a temporary suspension of the 11% import duty on raw cotton, effective until September 30, 2025, aiming to support the garment industry by easing raw material costs.

Key Points:

• Duty Suspension Timeline: The exemption runs from August 19 to September 30, 2025, covering both the 5% basic customs duty and the 5% agriculture infrastructure and development cess. 
• Industry Relief Motivation: The move offers immediate cost relief to the garment and textile sectors, which are under pressure from a sharp 50% tariff imposed by the U.S., comprising an existing 25% duty plus an additional 25% penalty related to India's Russian oil purchases. 
• Signal in Trade Diplomacy: The suspension serves as a strategic signal to Washington, suggesting India’s willingness to address U.S. trade concerns and potentially negotiate terms in bilateral discussions.
• Boost to Export Competitiveness: By lowering input costs, the policy aims to help preserve India’s competitiveness in textile exports, especially against regional rivals such as Bangladesh (20% U.S. tariffs), Vietnam (20%), and China (30%). 
• Positive Market Reaction: Shares of major textile firms, including Vardhman Textiles, rallied up to 9% following the announcement, reflecting investor optimism.
• Domestic Farmer Concerns: Farmer organizations, including the Bharatiya Kisan Union (Charuni) and Sanyukt Kisan Morcha (SKM), strongly criticized the move, warning that duty-free imports could depress local cotton prices and undermine farmers' livelihoods.

Iran Conducts “Sustainable Power 1404” Missile Drills in Gulf of Oman

In the News: Iran commenced a two‑day military exercise in the Gulf of Oman and the northern Indian Ocean, codenamed “Sustainable Power 1404”. This marks the nation’s first major naval drill since the 12‑day war with Israel in June. The exercise involved coordinated missile launches and multi-domain operations aimed at projecting strength and enhancing combat readiness.

Key Points:

• Exercise Overview & Context: The “Sustainable Power 1404” drill is Iran’s first large-scale naval exercise following the June conflict with Israel, during which Iranian air defence and nuclear sites were targeted, prompting retaliatory strikes by Iran.
• Assets & Ordnance Deployed: The operation included surface and subsurface warships, air units, coastal missile batteries, and electronic warfare brigades—highlighting a multi-layered military approach.
• Missile Systems Utilized: Islamic Republic of Iran Navy vessels — notably the IRIS Sabalan (frigate) and IRIS Ganaveh (missile boat or corvette) — along with coastal sites, fired Nasir, Qadir, and Qader anti-ship cruise missiles with successful target engagements. A domestically produced Bavar‑5 kamikaze drone also destroyed a designated sea target.
• Objectives & Strategic Messaging: Officials described the exercise as an effort to boost combat capabilities, sharpen command tolerance, and reinforce deterrence through demonstration of advanced domestic weapons. It also underscores Iran’s resilience and readiness to counter future threats.
• Geopolitical Backdrop & Implications: Occurring shortly after “Casarex 2025” — a joint drill with Russia in the Caspian Sea — this exercise signals Iran’s intent to project broader regional influence. The location in the Gulf of Oman, a critical maritime corridor, amplifies its strategic message. Simultaneously, the drills coincide with Iran’s suspension of cooperation with the IAEA, raising broader regional and international security concerns.

India and EAEU Sign Terms of Reference to Begin Free Trade Agreement Negotiations

In the News: India and the Eurasian Economic Union (EAEU) signed the Terms of Reference (ToR) in Moscow, formally initiating negotiations for a Free Trade Agreement (FTA). This strategic move comes amid rising trade tensions with the United States.

Key Points:

• Signing Ceremony & Signatories: The ToR was signed by Ajay Bhadoo, Additional Secretary in India's Department of Commerce, and Mikhail Cherekaev, Deputy Director, Trade Policy Department of the Eurasian Economic Commission. The agreement was formalized during External Affairs Minister S. Jaishankar's visit to Moscow.
• Strategic Trade Motivations: With U.S. tariffs on Indian exports rising (50% in some cases), this FTA marks India's strategic effort to diversify trade partnerships and mitigate economic pressures emanating from Western markets.
•  Trade Volume & Economic Scale: Bilateral trade between India and EAEU stood at US $69 billion in 2024, marking a 7% growth over 2023. The EAEU bloc—comprising Russia, Armenia, Belarus, Kazakhstan, and Kyrgyz Republic—has a combined GDP of US $6.5 trillion, offering a substantial market for India.
•  Objectives and Anticipated Benefits:  The ToR establishes a strategic framework to:
• Unlock untapped trade potential,
• Expand market access for Indian exporters,
• Support diversification into new sectors and geographies,
• Strengthen competitiveness against non-market economies,
• Provide significant benefits to Micro, Small, and Medium Enterprises (MSMEs), and
• Build a durable Indo-EAEU economic partnership.

SLINEX-25

In the News: The 12th edition of the India–Sri Lanka bilateral naval exercise, SLINEX‑25, concluded successfully off Colombo. The exercise reaffirmed the two nations' commitment to maritime cooperation and operational readiness in the Indian Ocean Region.

Key Points:  

• Exercise Overview & Context: SLINEX, initiated in 2005, focuses on enhancing interoperability, maritime collaboration, and the exchange of best practices between the Indian and Sri Lankan navies, complementing India’s MAHASAGAR policy.  
• Timing & Structure: Hosted by Sri Lanka from August 14 to 18, 2025, the exercise was executed in two phases:
• Harbour Phase: August 14–16 at the Port of Colombo
• Sea Phase: August 17–18 in the western seas off Colombo
• Participating Assets:
  • India: Guided missile destroyer INS Rana (commanded by Captain KP Sreesan) and replenishment oiler INS Jyoti (commanded by Captain Chetan R Upadhyay)
  • Sri Lanka: Advanced offshore patrol vessels SLNS Gajabahu and SLNS Vijayabahu
• Support: A Bell 412 helicopter from the Sri Lanka Air Force participated during the sea phase
• Harbour Phase Activities: This phase featured professional interactions, exchange of best practices, reciprocal training in firefighting, damage control, aviation operations, Humanitarian Assistance and Disaster Relief (HADR), friendly sports competitions, and a pre-sail conference.
• Sea Phase Operations: 
  • The sea drills encompassed a wide range of advanced operations including:
  • Joint drills and gunnery firing serials
  • Communication protocols and navigation evolutions
  • Visit Board Search and Seizure (VBSS) exercises
  • At-sea fueling exercises These operational elements significantly bolstered interoperability and tactical capabilities.
• Diplomatic & Community Outreach:
  • Commanding officers of INS Rana and INS Jyoti engaged with Sri Lanka’s Commander of the Western Naval Area, Rear Admiral Chandima Silva, to discuss enhancing cooperation and sharing best practices.
  • Floral tributes were offered at the Indian Peace Keeping Force (IPKF) Memorial, honoring Indian soldiers who fell during peacekeeping operations in Sri Lanka (1987–1990).
  • Ships were opened to public visitors—Sri Lankan Navy staff, government officials, students, and Indian diaspora members—demonstrating naval tradition, capabilities, and fostering people-to-people ties.

Ahmedabad to Host Three Major International Sports Events in 2025

In the News: The Gujarat state government announced that Ahmedabad will host three major international sporting events in 2025 to bolster its long-term bid for the 2036 Olympic Games. These events include the Commonwealth Weightlifting Championship, the Asian Aquatics Championship, and the AFC U17 Asian Cup 2026 Qualifiers.

Key Points:

• Strategic Objectives: Ahmedabad’s hosting of these global competitions forms part of a broader vision to emerge as a key sports hub and support its bid for the 2036 Summer Olympics.
• Commonwealth Weightlifting Championship:
  • Scheduled from August 24–30, 2025
  • Venue: Naranpura Sports Complex
  • Participants: Over 350 lifters from 29 countries
• Asian Aquatics Championship:
  • Held in September–October 2025
  • Will feature elite swimmers from nations including China, Japan, and South Korea

• AFC U17 Asian Cup 2026 Qualifiers:
  • Scheduled for November 22–30, 2025
  • Venue: The Arena by TransStadia, Ahmedabad
  • Group D fixtures include teams from India, Iran, Palestine, Chinese Taipei, and Lebanon