5 August 2025 : Daily Current Affairs

1. Centre hits back after Trump threatens more tariffs on India

Source: Page 1 , The Hindu UPSC IAS Edition

Topic: GS-2: International Relations; India–USA Relations

Context

Former U.S. President Donald Trump criticized India’s import of Russian oil and threatened to impose higher tariffs. India responded, defending its energy trade practices and exposing the West’s double standards.

Content

Background

• Donald Trump alleged that India profits from Russian oil trade and threatened to “substantially” raise tariffs.

• He claimed India resells Russian oil for large profits, showing indifference to the war in Ukraine.

India’s Response

• The Ministry of External Affairs (MEA) refuted Trump’s claims, calling them “unjustified and unreasonable.”

• MEA clarified:

  • India started importing Russian oil after Europe diverted global supplies post-Ukraine conflict.

  • The U.S. had earlier encouraged such imports to stabilize global markets.

  • EU and U.S. themselves maintain substantial trade ties with Russia.

Key Points for UPSC

• Energy Security & Strategic Autonomy: India imports Russian oil to ensure affordable energy amid global volatility.

• Double Standards in Global Diplomacy: Western countries criticize India while continuing trade with Russia.

• India–US Trade Tensions: Reflects persistent friction, especially with Trump’s protectionist stance.

• Tariffs and WTO Rules: Raises questions about the legality and reciprocity of tariffs in international trade.

Analysis

• This episode shows how domestic political narratives (like Trump’s presidential campaign) can impact bilateral ties.

• It underscores India’s need to maintain strategic autonomy in foreign policy and energy security.

• It also calls for a nuanced engagement with the U.S., balancing ties with both Russia and the West.

Practice Question:

“In light of recent criticisms by U.S. leadership over India’s energy trade with Russia, critically examine the impact of such accusations on Indo-U.S. bilateral relations. How should India navigate its foreign policy amid such geopolitical pressures?“ (250 words / 15 marks)

2. Lok Sabha disrupted as Opposition seeks debate on Bihar SIR

Source: page 1, The Hindu UPSC IAS Edition

Topic: GS-2: Polity and Governance; Electoral Reforms

Context

Opposition MPs demanded a discussion in the Lok Sabha on the Special Intensive Revision (SIR) of electoral rolls in Bihar, alleging irregularities and foreign nationals on voter lists.

Analysis from UPSC Angle:

What is SIR?

• A Special Intensive Revision of electoral rolls is conducted to verify, correct, and update voter data.

• Concerns were raised after foreign nationals (Nepali, Bangladeshi, and Burmese) were allegedly found on the Bihar rolls.

Opposition’s Demand

• MPs led by Rahul Gandhi called for a full parliamentary debate on the issue.

• They linked it to broader electoral integrity and democratic transparency.

Speaker’s Stand

• Lok Sabha Speaker Om Birla urged MPs to allow House proceedings, noting repeated disruptions.

• Despite attempts at dialogue, no consensus was reached.

Significance for UPSC

• Democratic Integrity: The accuracy of electoral rolls is fundamental to free and fair elections.

• Parliamentary Functioning: The episode illustrates tensions between executive business and opposition oversight.

• Electoral Reforms: Brings into focus the need for more transparent and accountable electoral roll management.

Way Forward

• Need for an independent audit of SIR processes.

• Strengthen Election Commission’s transparency mechanisms.

• Enhance coordination with local authorities and border agencies.

Practice Question:

“Discuss the significance of clean and verified electoral rolls in maintaining the integrity of India’s democracy. In this context, evaluate the role and limitations of the Election Commission of India in ensuring transparency.” (250 words / 15 marks)

3. Govt. asks Google to block 1,700 digital lending apps

Source: Page 2, Indian Express Delhi Edition

Topic: GS-2: Governance; GS Paper 3: Cybersecurity, Digital Economy

Context

The Ministry of Electronics and Information Technology (MeitY) asked Google to block over 1,700 illegal digital lending apps from the Play Store to protect consumers from fraud and predatory practices.

Key Points for UPSC:

Why the Ban?

• Apps were operating without RBI registration or regulatory oversight.

• Engaged in coercive debt recovery, data misuse, and usury.

• Linked to foreign entities evading Indian legal frameworks.

Govt & RBI Action

• RBI introduced Digital Lending Guidelines (2022) to regulate NBFCs and LSPs.

• Mandates disclosure, borrower consent, grievance redressal, and reporting to credit bureaus.

Key Issues

• Lack of financial literacy in users.

• Weak enforcement on tech platforms.

• Cross-border cyber fraud and misuse of personal data.

Significance

• Reflects rising risks in the unregulated fintech sector.

• Reinforces need for data privacy law, consumer protection, and platform accountability.

Practice Question:

“The rise of digital lending apps has posed serious risks to consumer protection and financial stability in India. Examine the regulatory measures taken so far and suggest reforms to strengthen oversight in the digital lending ecosystem.” (150 words / 10 marks)

Check more: 5 August 2025 : Daily Current Affairs