5 July 2025 : Daily Current Affairs
1. India to Impose Retaliatory Tariffs Worth $724 Million on U.S.
Source: The Hindu, Page 1 , july 5, 2025
| Topic: GS Paper 2 & 3: International Relations and Trade |
| Context |
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Content:
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U.S. imposed 25% ad valorem tariffs on Indian vehicles and parts in March 2025.
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India argues these are safeguard measures under WTO’s AoS and not compliant with GATT 1994.
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India reserves its right to suspend concessions equivalent to $724 million.
Implications:
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Could affect Indo-U.S. trade talks and mini-deal negotiations.
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Reflects India’s assertive trade diplomacy.
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Reinforces relevance of multilateral institutions like WTO.
Practice Question:
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“How does India’s recourse to WTO reflect on its approach to trade diplomacy and rules-based global order? Examine in light of recent disputes with the U.S.“ (250 words / 15 marks) |
2. Nagaland Tribes Protest Against Job Quota Policy
Source: Page 4, The Hindu, July 5 2025
| Topic: GS Paper 2 – Governance (Reservation Policy, Tribal Rights) |
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Content:
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The protest is over continued reservation for 11 “backward” tribes, especially from Eastern Nagaland.
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Committee demands review; govt failed to set up promised commission.
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CM said changes should be after the 2027 Census.
Implications:
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Raises issues of equity and fairness in affirmative action.
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Reflects intra-tribal tensions in Northeast governance.
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Challenges state’s political stability and tribal cohesion.
Practice Question:
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“Discuss the challenges in implementing equitable reservation policies in tribal-dominated regions. Should socio-economic parameters be prioritized over historical categorization?” (250 words / 15 marks) |
3. GST Collections Hit Four-Month Low, Reforms Urged
Source: The Hindu, Page 6, July 5, 2025
| Topic: GS Paper 3: Economy (Taxation Reform) |
| Context |
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Content:
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Slowest growth in 4 years; post-refund net growth just 3.3%.
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Reform needs: include fuel in GST, reduce slab rates, remove Compensation Cess.
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Political economy challenge: states rely on fuel/alcohol tax.
Implications:
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Fiscal federalism under stress
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Centre-State trust deficit in revenue sharing
Key Issues:
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Need for “One Nation, One Tax” to be realized fully
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Revenue autonomy of states vs. cooperative federalism
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Long-term trust-building in Centre-State fiscal relations
Practice Question:
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“Critically evaluate the performance of the GST regime since its inception. Suggest reforms for improving efficiency and equity.” (150 words / 10 marks) |
1. India to Impose Retaliatory Tariffs Worth $724 Million on U.S.
Source: Page 1, The Hindu
| Topic: GS Paper 3: Economy (Trade) |
| Context |
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Analysis of the news:
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U.S. imposed 25% ad valorem tariffs on Indian passenger vehicles and auto parts in March 2025.
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India informed WTO of its intent to impose retaliatory tariffs worth $724 million under Article 8 of the Agreement on Safeguards (AoS).
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GATT 1994 is the core agreement under WTO covering trade in goods.
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Article 12.3 of AoS requires consultations before imposing safeguard measures.
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India’s negotiation team was led by Rajesh Agarwal, Special Secretary, Ministry of Commerce.
2. GST Collections Hit Four-Month Low, Reforms Urged
Source: Page 6, The Hindu
| Topic: GS Paper 3: Economy (Taxation) |
| Context |
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Content
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June 2025 GST collections: ₹1.85 lakh crore – lowest in last 4 months.
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Growth: Only 6.2% YoY; net growth post refunds: 3.3%.
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Compensation Cess was introduced for 5 years (till 2022) but extended till March 2026 due to pandemic.
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Fuel, alcohol are still outside the GST regime – major revenue sources for states.
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GST Compensation Cess is imposed over and above the highest GST slab (28%).
Check more: 4 July 2025 : Daily Current Affairs
