Digest for 07 August, 2025
US Doubles Tariffs on Indian Goods to 50% Over Russian Oil Imports
The United States has imposed an additional 25% tariff on Indian goods, bringing the total to 50%, in response to India's continued purchase of Russian oil. The White House stated the measure addresses national security concerns related to the conflict in Ukraine. India's Ministry of External Affairs called the action "unfair, unjustified and unreasonable," asserting its oil imports are market-driven and essential for energy security. The move threatens to strain diplomatic and trade relations and could significantly impact Indian exports to the US.
RBI Holds Key Interest Rate at 5.5% Amid Trade Uncertainty
The Reserve Bank of India's Monetary Policy Committee unanimously decided to keep the repo rate unchanged at 5.5%. The central bank adopted a "wait-and-watch" approach to assess the full impact of past rate cuts and growing global uncertainties, particularly new US tariffs on Indian goods. While the RBI maintained its GDP growth forecast for FY26 at 6.5%, the decision signals a higher bar for future rate cuts, with a focus on price stability as inflation is expected to rise later in the year.
Supreme Court Upholds Misconduct Finding Against High Court Judge
The Supreme Court dismissed a plea from Allahabad High Court Justice Yashwant Varma, who challenged an in-house inquiry panel's report finding him guilty of misconduct. The case stems from the discovery of burnt cash at his official residence. The Court's decision upholds the panel's recommendation for his removal under Article 124(4) of the Constitution, paving the way for potential impeachment proceedings. The bench noted that Justice Varma's conduct did not inspire confidence and that the CJI has a duty to act on judicial misconduct.
PM Modi Likely to Visit China for SCO Summit, First Trip Since Border Standoff
Prime Minister Narendra Modi is expected to travel to China from August 31 to September 1 for the annual Shanghai Cooperation Organisation (SCO) summit. This would mark his first visit to the country since the military standoff in eastern Ladakh began in 2020. The trip, which may also include a stop in Japan, is being viewed as a potentially significant diplomatic step toward stabilizing relations between the two nuclear-armed neighbors after years of heightened border tensions and military disengagement talks.
NASA Chief Declares New Space Race with China for Lunar Resources
The United States is in a new space race with China to claim resource-rich areas of the Moon, NASA's interim administrator Sean Duffy stated. He announced ambitious plans to install a 100-kilowatt nuclear reactor on the lunar surface by 2030 to power a permanent base. Duffy emphasized the strategic importance of securing a specific part of the Moon's south pole, which offers both water ice and continuous sunlight, stating, "We want to get there first and claim that for America."