Daily Current Affairs- 25th May 2025

Daily Current Affairs- 25th May 2025

PM Modi Chairs 10th NITI Aayog Governing Council Meeting: Focus on Viksit Bharat@2047

In the News: On May 24, 2025, Prime Minister Narendra Modi chaired the 10th Governing Council Meeting of NITI Aayog at Bharat Mandapam, New Delhi. The central theme was "Viksit Rajya for Viksit Bharat@2047," emphasizing the collaborative efforts of states and union territories in transforming India into a developed nation by its 100th year of independence.

Key Points:

• Vision for Viksit Bharat@2047:
  • PM Modi underscored that the aspiration for a developed India by 2047 is a collective goal of 140 crore Indians, transcending political affiliations.
  • He emphasized that the development of each state, city, and village is crucial to achieving this vision.
• State Participation and Commitments:
  • The meeting witnessed participation from Chief Ministers and Lieutenant Governors of 24 states and 7 union territories.
  • States shared their individual "Vision 2047" documents, outlining strategies for economic growth, infrastructure development, and social welfare.
• Strategic Initiatives Discussed:
  • Tourism Development: PM Modi urged each state to develop at least one world-class tourist destination to boost local economies and attract international visitors.
  • Investment-Friendly Charter: NITI Aayog was tasked with preparing a charter to attract investments, leveraging India's favorable global perception.
  • River Grids: The creation of river grids at the state level was proposed for effective water resource management.
  • Urban Planning: Emphasis was placed on sustainable urban growth, particularly in tier-2 and tier-3 cities.
  • Youth Skilling: The importance of skilling and training youth in emerging sectors to make them employment-ready was highlighted. 

Draft Space Activities Bill Finalised

In the News: On May 25, 2025, the Government of India finalized the draft of the Space Activities Bill, aiming to provide a comprehensive legal framework for space activities in the country. This legislation is poised to bolster private sector participation and grant statutory powers to the Indian National Space Promotion and Authorization Center (IN-SPACe), aligning with India's ambition to expand its share in the global space economy.

Key Points:

• Empowering IN-SPACe: The bill seeks to grant statutory authority to IN-SPACe, the regulatory body established in 2020 to facilitate and oversee private sector involvement in India's space endeavors.
• Facilitating Private Sector Growth: By providing a clear legal framework, the bill aims to encourage private companies to engage in space activities, including satellite manufacturing, launch services, and space-based applications.
• Insurance Provisions: Addressing concerns from private entities, the bill includes provisions for affordable insurance mechanisms for space missions and assets, mitigating financial risks associated with space ventures.
• Intellectual Property Rights (IPR): The legislation outlines measures to protect the intellectual property rights of entities involved in space activities, fostering innovation and safeguarding proprietary technologies.
• Compliance with International Obligations: The bill ensures that India's space activities adhere to international treaties and agreements, holding the government accountable for all space activities conducted under its jurisdiction.
• Economic Ambitions: The government envisions expanding India's space economy from $8.4 billion in 2022 to $44 billion by 2033, with $11 billion projected from exports. 

Trade War Fears Abound After Trump Announces 50% Tariffs on EU

In the News: On May 23, 2025, U.S. President Donald Trump announced a significant escalation in trade tensions by proposing a 50% tariff on all European Union (EU) imports, set to take effect on June 1. This move, justified by the administration as a response to the EU's trade barriers and a substantial trade deficit, has raised concerns about a potential transatlantic trade war and its implications for the global economy.

Key Points:

• Tariff Announcement: President Trump declared a 50% tariff on all EU imports, citing a $235.6 billion trade deficit and accusing the EU of exploiting the U.S. through unfair trade practices. He stated, "I'm not looking for a deal—we've set the deal at 50%," indicating a firm stance on the matter.
• Impact on Specific Sectors: The proposed tariffs would affect a wide range of EU exports, including automobiles, pharmaceuticals, wine, and cheese. Additionally, Trump threatened a 25% tariff on smartphones not manufactured in the U.S., directly impacting companies like Apple and Samsung.
• EU's Response: EU leaders have expressed strong opposition to the proposed tariffs. Trade Commissioner Maroš Šefčovič emphasized the need for mutual respect in trade relations and warned that the EU is prepared to defend its interests. Irish Tánaiste Simon Harris highlighted the potential harm to critical supply chains, particularly in pharmaceuticals and semiconductors.
• Market Reactions: Financial markets responded negatively to the announcement, with significant declines observed in major indices. The Dow Jones Industrial Average dropped by over 1,000 points, while the S&P 500 and Nasdaq also experienced substantial losses.
• Potential for Retaliation: The EU is considering retaliatory measures, including tariffs on U.S. exports such as aircraft, medical devices, and agricultural products. The European Commission has indicated readiness to implement countermeasures if the U.S. proceeds with the proposed tariffs. 

India-Bangladesh Trade Tensions: Regional Impact of Land Port Closures

In the News: In May 2025, India imposed restrictions on imports from Bangladesh via land ports, affecting goods worth approximately USD 770 million, nearly 42% of total imports from the neighboring country. This decision follows Bangladesh's earlier move to ban Indian yarn imports through land ports in April 2025, disrupting supply chains for Indian textile mills.

Key Points:

• Affected Goods and Routes:
  • India's restrictions target seven categories of Bangladeshi goods, including ready-made garments (RMG), processed food items, carbonated drinks, plastic goods, and wooden furniture.
  • Imports of these goods are now permitted only through the seaports of Kolkata and Nhava Sheva, effectively halting their entry via land ports in northeastern states such as Assam, Meghalaya, Tripura, Mizoram, and border points in West Bengal.
• Economic Impact:
  • Bangladesh's RMG exports to India, valued at over USD 700 million annually, are significantly affected, as over 93% previously moved via land routes.
  • Indian textile manufacturers are expected to benefit, with an estimated Rs 1,000–2,000 crore boost in business due to reduced competition from Bangladeshi imports.
• Regional Effects:
  • The northeastern states of India, which rely heavily on cross-border trade with Bangladesh, are experiencing disruptions in supply chains, leading to increased logistics costs and transit times.
  • Exports from Indian states like Mizoram, particularly ginger, have been severely impacted due to the sealing of the India-Bangladesh border. 

Saudi Arabia Launches TOURISE to Shape the Future of Global Tourism

In the News: On May 22, 2025, Saudi Arabia's Minister of Tourism, Ahmed Al-Khateeb, officially launched TOURISE, a global platform designed to shape the future of tourism over the next 50 years. This initiative aims to unite leaders from the public and private sectors—including policymakers, sustainability experts, entrepreneurs, and investors—to address challenges and unlock transformative opportunities in the tourism industry.

Key Points:

• Strategic Objectives: TOURISE is envisioned as a year-round global platform and annual summit that will focus on four key themes:
  • The role of Artificial Intelligence (AI) in tourism
  • New business models and investment strategies
  • Enhancing the travel experience
  • Promoting sustainable and inclusive tourism practices
• First TOURISE Summit: The inaugural TOURISE Summit is scheduled to be held in Riyadh from November 11–13, 2025. The event will be live-streamed and will feature an Innovation Zone showcasing ideas and technologies from global companies and startups.
• Collaborative Approach: TOURISE will convene a cross-section of industry leaders with expertise in tourism, technology, investment, sustainability, and culture. The platform aims to develop whitepapers and global indices focused on tourism, sustainability, and the global economy, co-created with leading international organizations to set new benchmarks for the tourism sector.
• Alignment with Vision 2030: The launch of TOURISE aligns with Saudi Arabia's Vision 2030, which positions tourism at the heart of the national transformation strategy. The initiative seeks to leverage the Kingdom's diverse natural, cultural, and historical resources to foster growth, create job opportunities, and solidify Saudi Arabia’s status as a premier global tourism destination.
• Global Impact: By addressing critical challenges such as climate change, AI disruption, workforce skill gaps, and shifting traveler expectations, TOURISE aspires to set the agenda for a tourism sector that is sustainable, equitable, and future-focused.