Daily Current Affairs- 6th August 2025

Daily Current Affairs- 6th August 2025

Agnishodh and Project SAMBHAV

In the News: Chief of the Army Staff (COAS) General Upendra Dwivedi inaugurated “Agnishodh”, the Indian Army Research Cell (IARC), at the IIT Madras campus. He also spotlighted Project SAMBHAV (Secure Army Mobile Bharat Vision) as a pivotal technology initiative for secure battlefield communication.

Key Points:

Agnishodh

• Bridge from Lab to Field: The Indian Army Research Cell (IARC), Agnishodh, is designed to convert academic innovations into practical defence technologies, aligning closely with operational needs.
• Supports Army Transformation: It forms a critical component of the Indian Army's Five Pillars of Transformation, with a focus on Technology Absorption, Structural Change, Human Resource Development, and tri-service cohesion.
• Core Focus Areas: The cell emphasizes cutting-edge domains such as Artificial Intelligence, Quantum Computing, Cybersecurity, Wireless Communication, and Unmanned Systems, while also upskilling personnel in these advanced fields.

Project SAMBHAV (Secure Army Mobile Bharat Vision)

• Secure 5G Ecosystem: SAMBHAV is a secure, 5G-based, network-agnostic mobile communication system enabling encrypted, on-the-move connectivity—even in remote or high-risk areas.
• Enhanced Field Communication: It strengthens battlefield communication by making it faster, more secure, and more reliable, mitigating risks associated with conventional apps and public networks.

India’s Business Confidence Index Rises to 149.4 in April–June

In the News: India’s Business Confidence Index (BCI) surged to 149.4, up from 139.3 in the prior quarter, as revealed in the National Council of Applied Economic Research (NCAER)’s latest Business Expectations Survey. This notable rise reflects a substantial boost in corporate optimism regarding future economic conditions.

Key Points:

• BCI Surge: India’s Business Confidence Index climbed significantly to 149.4 in Q1 FY 2025–26 (April–June), from 139.3 in the preceding quarter.
• Measurement Components: The BCI draws from four dimensions—anticipated improvement in overall economic conditions, better financial health of firms, favorable investment climate, and higher or optimal capacity utilization.
• Optimism Across Indicators:
  • Production: 78.7 % of firms expect an increase.
  • Domestic Sales: 79.1 % foresee growth.
  • Exports: 66.5 % anticipate improved performance.
  • Raw Material Imports: 54.3 % anticipate higher imports, up from 46.1 %.
• Profit Expectations: Nearly 61 % of surveyed firms foresee a rise in pre-tax profits, indicating strong anticipated margins.
• Labor Market Remains Slow: Despite upbeat sentiment on output and sales, the labor market outlook remains muted—with no expected change in hiring or wages over the next six months.
• Survey Details: The survey was conducted in June 2025, featuring insights from 479 firms across six major cities in India

RBI Monetary Policy Statement 2025-26

In the News: The Reserve Bank of India (RBI)'s Monetary Policy Committee (MPC) unanimously decided to keep the policy repo rate unchanged at 5.50%, maintaining a ‘Neutral’ stance, following a significant 50 bp rate cut in June. The central bank also lowered its inflation forecast for FY26 from 3.7% to 3.1%, while retaining the GDP growth projection at 6.5%..

Key Points:

• Rate Pause: The RBI held the repo rate steady at 5.50%, following three cumulative rate cuts since February totaling 100 bps. The neutral approach aligns with its goal of balancing growth support with inflation control.
• Monetary Stance: The policy approach remains Neutral, signaling the RBI's intent to allow previous easing measures to permeate the economy while monitoring evolving macroeconomic indicators.
• Growth Outlook: The GDP forecast for FY26 is maintained at 6.5%, underpinned by robust rural demand, steady consumption, and favourable monsoon conditions.
• Inflation Forecast Lowered: CPI inflation projection for FY26 has been revised downward to 3.1% from 3.7%, reflecting falling food prices and easing retail inflation. June wholesale inflation dropped to a six-year low at 2.1%.
• Liquidity & CRR Shift: The CRR cut announced in June (from 4% to 3%) will begin implementation from September 6, 2025, designed to enhance systemic liquidity. Other rates—SDF (5.25%), MSF/Bank Rate (5.75%)—remain unchanged.
• Global Trade Risks: Despite U.S. trade tensions and looming tariffs on Indian exports, the RBI held steady, suggesting confidence in domestic economic resilience. Governor Sanjay Malhotra cited India’s lower dependence on external factors for inflation dynamics.
• Analyst Perspective: Many analysts infer that this may be the end of the RBI's easing cycle, given the cautious outlook and narrowing space for further rate reductions in the near term.

Trump’s additional 25% tariff on India brings tariffs on India to 50%, highest tariffs worldwide

In the News: U.S. President Donald Trump signed an executive order imposing an additional 25% tariff on imports from India—effectively doubling the total tariff rate to 50%, the highest the U.S. imposes on any country. The increase was in response to India’s continued importation of Russian oil. The new tariffs will take effect 21 days later, with exemptions for in-transit shipments arriving before September 17.

Key Points:

• Tariff Escalation: The U.S. raised its import duties on Indian goods from 25% to 50%, setting a new record for U.S. tariff levels on any trading partner. ([turn0news17], [turn0news16])
• Reason Cited: Trump justified the move as a punitive response to India’s ongoing purchases of Russian oil, which he claimed financially support Russia’s war effort. The action was underpinned by authorities under the International Emergency Economic Powers Act, among others.
• India’s Reaction: The Indian government condemned the decision as “selective and unfair” and “extremely unfortunate,” arguing that its oil imports are market-driven and necessary for its population. ([turn0news19], [turn0news17])
• Timing & Exemptions: The tariff hike becomes enforceable 21 days after August 6, with a carve-out for shipments arriving before September 17. ([turn0news16], [turn0search6])
• Economic and Diplomatic Impact: Analysts warn that the heightened tariff could undermine India’s $4 trillion economy, potentially reducing GDP growth by over 80 basis points and rendering exports to the U.S. (valued around $87 billion last year) unviable. ([turn0news17])
• Sectoral Pressures: Indian textile exporters—like Gokaldas Exports, Pearl Global, Indo Count Industries, KPR Mill, and Welspun Living—are expected to face heightened market stress, as the U.S. is a critical destination for their goods.

Tata Motors Acquires Iveco for €3.8 Billion in Biggest Deal Since Corus

In the News: Tata Motors announced it will acquire the commercial vehicle business of Italy’s Iveco Group in an all‑cash deal worth approximately €3.8 billion—marking Tata’s largest global acquisition since the Corus deal. The acquisition excludes Iveco’s defence division, which is being sold separately to Leonardo. The transaction, expected to close in the first half of 2026, aims to create a formidable global player in the commercial vehicle space

Key Points:

• Transaction Overview: Tata Motors will execute a voluntary tender offer at €14.1 per share, backed by full financing. The deal excludes Iveco’s defence unit, which has been sold to Leonardo for €1.7 billion.
• Deal Scope & Strategic Rationale: The combined entity is projected to generate roughly €22 billion in annual revenues, with sales exceeding 540,000 units across Europe (~50%), India (~35%), and the Americas (~15%). This acquisition strengthens Tata’s commercial vehicle offerings through geographic and product diversification.
• Funding & Financial Structuring: The initial financing includes a bridge loan from Morgan Stanley and MUFG, complemented by plans to raise about €1 billion in equity and monetize Tata Capital stake to repay the debt over four years.
• Governance & Safeguards: Tata has committed to maintain Iveco’s workforce, operations, and brand identity for a minimum of two years post-acquisition. The Italian government is closely monitoring the deal under “golden power” norms to ensure preservation of jobs and strategic assets.
• Valuation & Premiums: The offer includes a 22–25% premium over Iveco’s 3-month average share price (~€16.02), with an effective premium of 34–41% after accounting for an extraordinary dividend from the defence sale.
• Strategic Implications & Analyst Views: This acquisition aligns with Tata’s ambition to build a future-ready global commercial vehicle ecosystem by integrating Iveco’s technology in areas like electrification and ADAS. Analysts view the valuation as reasonable—forecasting a 16% return on invested capital, well above Tata’s cost of capital.

What caused Uttarkashi flash floods

In the News : Flash floods struck Dharali village in Uttarkashi district, Uttarakhand, triggered by intense rainfall and possibly a cloudburst. The floods left at least four confirmed dead, with dozens— including 11 Indian Army personnel—still missing. Steep terrain, blocked roads, and landslides have significantly hampered rescue operations by SDRF, NDRF, and Indian Army teams.

Key Points:

• Triggering Event : Although initial reports cited a cloudburst in the upper Kheer Ganga catchment, experts now question this claim—IMD data shows no cloudburst activity registered in the area. Many scientists currently consider a glacial lake outburst flood (GLOF) or glacier collapse or overflow as a more likely cause, possibly compounded by landslides.
• Geographic Drivers : Uttarkashi’s rugged, high-elevation terrain—characterized by steep slopes, deep gorges, and narrow valleys—means that even moderate heavy rainfall can trigger debris-laden flows rapidly traveling downstream, amplifying flash flood impacts.
• Climate Vulnerability : Experts underscore that the Himalayan region’s fragility is intensified by climate change, which is increasing glacier melt, altering rainfall patterns, and making extreme precipitation events more frequent and intense. Additionally, unplanned development in ecologically sensitive areas exacerbates risks.
• Rescue Challenges : Landslides and blocked roads have severely impeded access, slowing rescue efforts. Teams have mobilized heavy machinery, drone surveillance, sniffer dogs, and makeshift ziplines to reach affected sites, including remote army camps.

ISRO Launches HOPE Mission in Ladakh to Simulate Astronaut Life for Gaganyaan

In the News: ISRO inaugurated its HOPE mission—Himalayan Outpost for Planetary Exploration—in the Tso Kar Valley, Ladakh. This 10-day high-altitude analogue setup, operating at around 14,000 feet (approx. 4.3–4.5 km), simulates extraterrestrial conditions to help prepare for India’s upcoming Gaganyaan and human spaceflight missions.

Key Points:

• Mission Overview: The HOPE mission is not merely a simulation but a “rehearsal for the future,” as stated by ISRO Chairman Dr V Narayanan during the inauguration. It aims to replicate planetary conditions to refine life‑support systems, psychological protocols, and mission workflow for future human space exploration.
• Location and Infrastructure: Situated in Tso Kar Valley—chosen for its Mars-like high UV levels, low air pressure, extreme cold, and saline permafrost—the analog habitat comprises:
  • An 8‑metre diameter habitat module for crew living
  • A 5‑metre utility module for support systems
    These interconnected modules house hydroponic systems, sanitation, circadian lighting, and kitchen facilities.
• Mission Goals: The mission involves two selected analogue crew members living in complete isolation to simulate the physiological and psychological stressors of long-duration space missions. Parameters monitored include genomic, epigenetic, physiological, and psychological responses, alongside testing health-monitoring, planetary operations, and sample handling protocols.
• Strategic Role: HOPE is a milestone in India’s Human Spaceflight Programme, building knowledge essential for executing crewed low Earth orbit (Gaganyaan), lunar missions (targeted by 2040), and eventual interplanetary exploration. The analogue data informs design of habitats, crew workflows, and technology readiness.