Read Current Affairs
- Why in News?
- The Reserve Bank of India’s Monetary Policy Committee has prudently chosen to pause rate cuts, as announced on August 6, 2025.
- Key Provisions:-
- Governor Sanjay Malhotra noted that the full impact of the 100 bps cuts since February is still unfolding, and tariff-related uncertainties remain. His caution proved timely, as U.S. President Donald Trump soon imposed an extra 25% tariff on Indian imports, while broader trade negotiations continue. The pause leaves space for future cuts once the global trade outlook is clearer.
- Ample liquidity exists, yet credit demand remains tepid. Consumer durable loans fell 3% year-on-year, housing loan growth slowed to 9.6% from 36%, and vehicle loans also eased. Industrial credit growth dropped to 5.5% from 8.1%. Clearly, rate cuts alone cannot drive growth. Stronger fiscal measures—GST rate rationalisation, targeted tax reforms, and aligning fuel prices with oil trends—are needed. For now, the RBI can wait; the government must act decisively.
- Why in News?
- Rising power rivalries and tariff wars in the Indo-Pacific risk dividing the region into polarized blocs. At stake is the principle of ASEAN Centrality, which positions the Association of Southeast Asian Nations as the primary driver of the Indo-Pacific’s evolving regional architecture. Born out of post–Cold War uncertainties — from the U.S.’s reduced military presence to China’s rise — it also features prominently in India’s 2018 Shangri-La Dialogue vision for a free, open, and resilient Indo-Pacific.
- Key Provisions:-
- Today, ASEAN Centrality faces multiple threats: the U.S.–China Cold War, which strains unity; weakened cooperative platforms like the East Asia Summit; and destabilizing U.S. tariffs disrupting the trading system. To preserve its role, ASEAN must consolidate internally, adopt flexible decision-making, and address security challenges head-on. Partnering with like-minded actors such as the EU, Australia, and India, and updating trade pacts like RCEP while encouraging CPTPP membership, can help strengthen ASEAN’s influence in an increasingly contested region.
- Why in News?
- Parliament has cleared two key maritime legislations — the Lok Sabha passed the Merchant Shipping Bill, 2025 while the Rajya Sabha approved the Carriage of Goods by Sea Bill, 2025. The former modernises India’s shipping laws in line with global conventions such as MARPOL and the Wreck Removal Convention; the latter aligns cargo carriage rules with international standards to promote ease of doing business.
- Key Provisions:-
- The Merchant Shipping Bill replaces the 1958 Act, mandating registration for all vessels, including submersibles and offshore drilling units, and allowing temporary registration for recycling. Ownership norms are broadened to include partial Indian ownership, OCIs, and Indian-registered entities. It retains welfare boards for seafarers, renames the Director-General of Shipping, strengthens training oversight, mandates pollution certificates for all vessels, and expands seafarer agreements with social security provisions.
- The Carriage of Goods by Sea Bill replaces the 1925 law, adopts the Hague-Visby Rules, and empowers the Centre to regulate Bills of Lading.