International Relations & Trade Dynamics
In a notable development impacting India's trade, the United States, under President Donald Trump, has escalated tariffs on Indian imports to 50%. This move, effective August 7, 2025, is reportedly in response to India's continued purchase of Russian oil, adding an additional 25% tax on products from India. This decision is expected to primarily affect sectors such as engineering, electronics, pharmaceuticals, jewellery, and garments, though its overall impact on India's GDP is estimated to be minimal at 0.19%.
On the diplomatic front, India and the Philippines have elevated their relationship to a strategic partnership. This expanded cooperation encompasses defence, maritime security, and space technology. Furthermore, India and Russia have reiterated their commitment to strengthening bilateral defence cooperation. In another international stride, Moldova has officially become the 107th member of the International Solar Alliance (ISA).
National Economy & Governance
The Reserve Bank of India (RBI) has opted to keep the repo rate unchanged at 5.5% in its latest monetary policy statement for 2025-26. This decision reflects a stable yet cautious economic outlook, with projected GDP growth for FY26 at 6.5%. India's digital payment landscape continues to expand, with the Unified Payments Interface (UPI) setting a new record by crossing 707 million daily transactions on August 2, 2025.
The Indian government has made significant strides in various welfare and infrastructure initiatives. Over 4 crore duplicate or inactive domestic LPG connections have been deactivated under the PAHAL direct benefit transfer scheme. Prime Minister Narendra Modi inaugurated Kartavya Bhavan in New Delhi. Additionally, the Union Government approved the establishment of PM Ekta Malls in 27 states under the 'One District One Product' initiative, and extended the Prime Minister National Dialysis Program to 751 districts across all states and Union Territories. The Defence Acquisition Council (DAC) has sanctioned procurement proposals worth ā¹67,000 crore. The Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme, a key component of the National Green Hydrogen Mission, has allocated ā¹17,490 crore to catalyze India's transition to green hydrogen. In an effort to streamline recruitment, the Union Public Service Commission (UPSC) has introduced a new email alert system for recruitment advertisements.
A report by Deloitte India forecasts India's economic growth to be between 6.4% and 6.7% for the fiscal year 2025-26. However, the Ministry of State for Finance, Pankaj Chaudhary, revealed that ā¹7 trillion in GST evasion was detected across 91,000 cases between April 2020 and March 2025.
Science, Technology & Environment
In the realm of space exploration, the Indian Space Research Organisation (ISRO) formally inaugurated the Himalayan Outpost for Planetary Exploration (HOPE) mission. Indian space-tech startup Dhruva Space is also set to launch its first commercial satellite mission, LEAP-1, which will carry payloads for AI and Earth observation. The Indian Army has collaborated with IIT Madras to establish 'AgniShodh', an Indian Army Research Cell, within the IIT Madras campus.
Technological advancements in education and skilling are also in focus, with IIT Palakkad launching 'Tutoz', India's first AI-powered learning app. SAP Labs India has signed a Memorandum of Understanding (MoU) with Gati Shakti Vishwavidyalaya (GSV) to digitally upskill professionals in the logistics and transport sector. Bengaluru, India, has been identified as one of the fastest-growing AI cities globally. The National Commission for Women (NCW) and Future Shift Labs (FSL) have launched "Yashoda AI," an AI Literacy Program for women aimed at enhancing digital inclusion and empowering them in areas of cybersecurity and digital privacy.
Environmental concerns remain pertinent, with a devastating cloudburst in Uttarkashi's Dharali region, Uttarakhand, triggering flash floods and landslides. Rescue operations are underway, with many people still reported missing. Scientists have also discovered a new species of rain snake, Smithophis leptofasciatus, in the tropical montane forests of Mizoram.
Other Notable Mentions
Prime Minister Narendra Modi's "Pariksha Pe Charcha" program has entered the Guinness World Record for the maximum number of enrollments and registrations in a month on a public discussion platform, with 3.53 crore registrations. India also celebrated National Handloom Day on August 7, 2025, marking the 11th edition of the event and commemorating the Swadeshi movement initiated on this day in 1905.