Digest for 06 August, 2025
US Threatens Tariff Hike Over India's Russian Oil Trade, New Delhi Hits Back
US President Donald Trump threatened to “substantially” raise tariffs on Indian goods, accusing New Delhi of profiting from Russian oil and “fuelling the war machine.” In a sharp rebuttal, India’s Ministry of External Affairs called the targeting “unjustified and unreasonable,” pointing out that the US and EU also continue significant trade with Russia. India stated it began importing Russian oil after traditional supplies were diverted to Europe, a move initially encouraged by the US to stabilise global energy markets.
Reserve Bank of India Holds Key Interest Rate at 5.5%
The Reserve Bank of India’s Monetary Policy Committee (MPC) unanimously decided to keep the repo rate unchanged at 5.5%, pausing after three consecutive rate cuts. The decision was influenced by concerns over tariff uncertainties. Governor Sanjay Malhotra announced that the central bank has retained its GDP growth forecast for FY26 at 6.5% while lowering the current year's inflation projection from 3.7% to 3.1%. The move aims to balance economic growth with inflation, which has remained below 4% since February.
Dozens Missing, Including Soldiers, After Uttarkashi Flash Floods
Rescue operations are underway in Uttarkashi, Uttarakhand, after a cloudburst triggered devastating flash floods, killing at least four people. Around 60 people, including 11 soldiers, are reported missing after an Army base and the village of Dharali were hit. The incident ravaged the village, a key stop for Gangotri pilgrims, and buried the ancient Kalp Kedar temple in debris. The Army, ITBP, and SDRF are conducting search and rescue efforts amidst heavy rain, having evacuated around 130 people to safety.
India Post to Discontinue Registered Post Service From September 1
India Post has announced it will discontinue its long-standing Registered Post service from September 1, 2025. The service will be merged with Speed Post as part of a strategy to modernise operations and improve efficiency. Registered Post has been a crucial service for official correspondence, legal notices, and job letters, particularly in areas with poor digital connectivity. The decision follows a 25% decline in usage between 2011 and 2020, attributed to the rise of digital communication and private couriers.
Parliament Extends President's Rule in Manipur by Six Months
Parliament has approved a statutory resolution to extend President's Rule in Manipur for an additional six months beyond its August 13 deadline. The resolution was passed by the Rajya Sabha amid protests from Opposition parties over unrelated issues. President's Rule was first imposed in the state on February 13 following the resignation of the chief minister amid severe ethnic violence. The extension signifies continued instability in the state, transferring legislative and executive powers to the Union government to manage the security situation.