India-Philippines Strategic Partnership Deepens
In a significant diplomatic move, India and the Philippines elevated their bilateral relationship to a strategic partnership on August 5, 2025. This development occurred during the state visit of Philippine President Ferdinand R. Marcos Jr. to India, where he engaged in bilateral discussions with Prime Minister Narendra Modi. The two nations signed several agreements, including enhanced cooperation in defence, digital technologies, and a comprehensive Strategic Partnership Plan of Action (2025-29). India also committed to supporting a pilot project for the Philippines' Sovereign Data Cloud Infrastructure and extended an invitation for the Philippines to join the Information Fusion Centre–Indian Ocean Region (IFC-IOR). This partnership marks 75 years of diplomatic ties, further strengthened by India's 'Look East' and 'Act East' Policies.
US-India Trade Tensions Escalate Over Russian Oil Imports
Amidst ongoing global economic uncertainties, US President Donald Trump renewed threats to impose substantially higher tariffs on Indian goods. This comes in response to India's continued purchases of Russian oil, with Trump having already imposed a 25% tariff on Indian imports. India has strongly defended its stance, calling the targeting "unjustified and unreasonable" and asserting its right to protect national economic interests. Russia has also publicly supported India's sovereign right to choose its trade partners. Experts suggest that increased tariffs could impact India's competitive edge in nearly $64 billion worth of exports to the United States.
RBI Maintains Key Policy Rates Amidst Economic Outlook
The Reserve Bank of India's Monetary Policy Committee (MPC) concluded its meeting on August 6, 2025, with Governor Sanjay Malhotra announcing that the repo rate would remain unchanged at 5.5%. The RBI retained its GDP growth projection for the financial year 2025-26 at 6.5% and lowered the Consumer Price Index (CPI) inflation forecast for FY26 to 3.1% from the previously projected 3.7%. The central bank reiterated its commitment to taking all necessary measures to support economic growth, despite global trade uncertainties.
Banking Law Amendments and UPI Changes Come into Effect
Important provisions under the Banking Laws (Amendment) Act, 2025, became effective from August 1, 2025. These amendments include changes to the minimum amount considered 'substantial interest' in banking and an extended term for directors in cooperative banks. Additionally, new usage limits for UPI applications were introduced from August 1, 2025, aimed at improving system performance and reducing transaction failures during peak hours.
Tragic Cloudburst in Uttarkashi Causes Flash Floods
On the domestic front, a devastating cloudburst occurred near Uttarkashi's Dharali village in Uttarakhand on August 5, 2025. The incident triggered severe flash floods, resulting in at least four fatalities and leaving over 50 individuals missing. The calamity also disrupted road connectivity to the revered Gangotri Dham.
National Handloom Day Celebrations Underway
Preparations are in full swing for the 11th National Handloom Day, scheduled for August 7, 2025, at Bharat Mandapam in New Delhi. Week-long celebrations, from August 1 to 8, 2025, are highlighting India's rich handloom heritage, including a Handloom Hackathon held on August 4, 2025, to foster innovation in the sector.