Judicial Developments Dominate Headlines
The Supreme Court of India was a focal point of news, addressing several critical matters on August 7, 2025. In a significant ruling, the apex court dismissed a plea by Allahabad High Court judge Yashwant Varma, challenging an in-house inquiry report that found him guilty of misconduct. The Court affirmed the legal sanctity of the in-house inquiry procedure, calling it a "stitch in time" to maintain judicial purity.
In a separate hearing, the Supreme Court expressed concern over the Enforcement Directorate's (ED) "poor conviction rates" in money laundering cases, despite the agency making numerous arrests and registering many complaints. Solicitor General Tushar Mehta informed the Court that the ED had recovered approximately Rs 23,000 crore in laundered money, which was subsequently distributed to victims of financial crimes. The Court also ordered the release of Rs 1 crore deposited by Lok Sabha MP Karti P Chidambaram, a pre-condition for his foreign travel.
Further judicial proceedings included the Supreme Court hearing pleas from women Army officers seeking permanent commissions and cases related to the Lakhimpur Kheri violence and various provisions of the Prevention of Money Laundering Act (PMLA). A Public Interest Litigation (PIL) seeking measures to protect the endangered Great Indian Bustard was also heard.
Economic and Financial Landscape
The Reserve Bank of India's (RBI) monetary policy decisions garnered attention. While some reports indicated that the RBI's Monetary Policy Committee cut the repo rate by 25 basis points to 6.25% from 6.50% on August 8, 2025, maintaining a 'Neutral' stance, other reports from August 7 and 8, 2025, stated that the RBI opted to pause its rate cuts, keeping rates unchanged amidst uncertainties. The RBI also issued directives to banks, instructing them not to insist on legal documents for survivor accounts where a survivorship clause or nominees exist, setting a threshold of Rs 15 lakh for claims without legal heir proof.
In the banking sector, AU Small Finance Bank received in-principle approval from the RBI to transition into a Universal Bank, marking it as the first Small Finance Bank (SFB) in India to achieve this status.
On the broader economic front, Adani Group Chairman Gautam Adani projected that India would become a USD 25 trillion economic "power house" by 2050, emphasizing the shifting global center of gravity towards India. While the Finance Ministry described India's economy as being in a "Goldilocks situation" with moderate growth and low inflation, some economists cautioned about underlying structural imbalances.
The Lok Sabha passed The Manipur Goods and Services Tax (Amendment) Bill, 2025, to implement decisions approved by the GST Council. Meanwhile, the government withdrew the Income-Tax Bill, 2025, with a new, updated version expected to be tabled soon. Indian benchmark indices closed lower on August 8, 2025, primarily due to escalating trade concerns with the United States.
International Relations and Trade Tensions
India's international relations saw significant developments, particularly with the United States. The US imposed an additional 25% tariff on certain Indian imports, including textiles, marine products, and leather, citing India's continued purchase of Russian oil. This move effectively doubled the total tariff to 50% and has been described as a significant downturn in bilateral relations. India condemned these tariffs as unfair and unjustified. Despite the tensions, negotiations are reportedly ongoing, with the next meeting scheduled for August 25. Prime Minister Narendra Modi reiterated India's firm stance, stating that the nation would never compromise on its farmers' interests, even at a heavy price.
In other diplomatic news, the International Relations and Global Diplomacy Dialogue (IRGDD) of Nepal and the Indian Council of World Affairs (ICWA) signed a Memorandum of Understanding (MoU) in New Delhi to enhance bilateral cooperation across various sectors including diplomacy, culture, education, trade, and media.
Other Notable Updates
In the public sector, GAIL India Limited and Hindustan Copper Limited (HCL) signed a strategic MoU to jointly explore and develop critical mineral assets both within India and abroad, aiming to enhance self-reliance in key resources. Several appointments of IAS and other service officers to Director and Deputy Secretary roles in various ministries were also notified. KPMG in India announced the re-appointment of Yezdi Nagporewalla as its Chief Executive Officer for a second term.
From an educational perspective, the correction window for the Indian Air Force Air Force Common Admission Test (IAF AFCAT) 2025 opened on August 7, 2025. Additionally, IIT Palakkad launched 'Tutoz', claimed to be India's first AI-powered learning application for competitive exam preparation. India also observed the 11th National Handloom Day on August 7, celebrating its rich handloom heritage.