01 August 2025 Daily Current Affairs

1. India–U.S. Tensions Escalate Amid Trump’s Remarks and Sanctions

Context: Amid growing global realignments, the U.S.–India relationship faces turbulence with President Donald Trump sharply criticising India’s foreign and trade policy. The episode is significant from the standpoint of India’s strategic autonomy, trade diplomacy, and its positioning in multilateral groupings like BRICS, especially as global blocs become more polarised post-Ukraine war and during a shifting world order.

Details:

• Trump’s Accusations:
  • U.S. President Donald Trump criticised India’s continued ties with Russia, stating India and Russia “could take their dead economies down together”.
  • He referred to India’s BRICS membership as being aligned with an “anti-American” bloc.
  • Highlighted a “massive trade deficit”, high tariffs, and stringent non-monetary trade barriers imposed by India.
  • Claimed India enforces some of the “most strenuous and obnoxious” trade restrictions globally.
• Sanctions and Tariffs:
  • The U.S. State Department imposed sanctions on six Indian companies and five Indian individuals for conducting energy trade with Iran, violating U.S. sanctions policy.
  • The U.S. is also implementing 25% tariffs on Indian imports under its new ‘Liberation Day’ global tariff regime, effective August 2, 2025.
• Pakistan Angle:
  • President Trump announced a new infrastructure deal with Pakistan focused on developing “massive oil reserves”, amidst increased cooperation following the Pahalgam terror attack and Operation Sindoor.
• India’s Response:
  • Commerce & Industry Minister Piyush Goyal rebutted the criticism, stating India is viewed globally as an economic “bright spot”.
  • The Ministry of External Affairs (MEA) refused to officially comment, redirecting focus to the Commerce Ministry’s statement.
• Current State of India-U.S. Trade
  • Contrary to Trump’s remarks, India-U.S. trade reaches $186 billion in 2024, with a $41 billion surplus for India. 
  • Despite tensions, FTA negotiations are still active, with emphasis on mutual benefits. 

Conclusion:

India’s calibrated silence and economic rebuttal reflect its strategic balancing act amidst increasing geopolitical complexities. These developments highlight:

• India’s challenge in maintaining strategic autonomy while engaging with both Western powers and traditional partners like Russia and Iran.
• The growing U.S.–Pakistan trade proximity, which India must monitor vis-à-vis regional energy and security equations.
• The need for India to diversify export markets and reduce dependence on traditional trading partners like the U.S.

2. India Commissions Kavach 4.0 on Mathura–Kota Section

Context:  India’s push toward indigenous safety tech dovetails with ‘Atmanirbhar Bharat’ ideals, mission-mode implementation, and rail safety strategy—especially critical after recent accidents that exposed systemic vulnerabilities.                                                                                                       

Details

1. Commission Milestone

On 30 July 2025, Indian Railways formally commissioned Kavach 4.0, its indigenously developed Automatic Train Protection (ATP) system, on the densely trafficked Mathura–Kota section of the Delhi–Mumbai corridor, marking a key achievement in railway modernization.

2. System Capabilities & Certification

Kavach 4.0, approved by the Research Designs & Standards Organisation (RDSO) in July 2024, supports operations up to 160 km/h and is certified as Safety Integrity Level 4 (SIL-4)—the highest benchmark for ATP systems.

3. Mission-Rollout Plan

Indian Railways aims to expand Kavach 4.0 across the national network within six years, with deployment prioritized on high-density routes like Delhi–Mumbai and Delhi–Howrah.

4. Scale and Workforce Preparedness
   To date: 

 5,856 km of optical fibre laid

 619 telecom towers, 708 stations, and 1,107 locomotives have been equipped

 4,001 route-km of trackside hardware installed

 Over 30,000 staff trained in operating the system

 IRISET has partnered with 17 AICTE-approved engineering institutions to integrate Kavach into B. Tech curricula

5. Regional Spotlight: SCR & Kerala Deployment

South Central Railway (SCR) aims to extend Kavach coverage from current 1,465 km to 4,655 km, including busy corridors like Balharshah–Kazipet–Vijayawada; 202 locomotives and 136 stations already operational with Kavach 4.0

In Kerala, the Ernakulam–Shoranur section (106.8 km) is set to become the state’s first equipped with Kavach at a cost of ₹105.8 crore, scheduled for completion within 18 months.

6. Railway Infrastructure & Financials

As per the 2024–25 allocation, over ₹1,112 crore earmarked; total funds utilized so far stand around ₹1,547–1,950 crore

Conclusion

Kavach 4.0 embodies India’s upward trajectory in rail safety and indigenous tech development:

• Accident prevention: Designed to automatically monitor and prevent SPAD (Signal Passed At Danger) and collisions, it enhances reliability even in fog or low-visibility conditions 
• Strategic Autonomy: Full in-country manufacturing underlines the Atmanirbhar Bharat initiative and demonstrates scalable homegrown solutions.
• Mission-mode implementation: Ambitious national rollout, institutional partnerships, and heavy investment showcase mission-oriented governance.
• Future prospects: India plans to make Kavach export-ready by 2030, potentially positioning it as a global standard in railway safety tech

3. Cabinet Approves ₹6,520 Crore Outlay for PMKSY during 15th Finance Commission Cycle

Context: It demonstrates India’s focus on modernizing agricultural infrastructure, reducing post-harvest losses, promoting food safety, and ensuring farmer welfare through scheme expansion and institutional financing strategies.                                                                                                        

Cabinet Approves ₹6,520 Crore Outlay for PMKSY during 15th Finance Commission Cycle                                                                                                      

Details

• On 31 July 2025, the Union Cabinet, chaired by PM Narendra Modi, approved a total outlay of ₹6,520 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY) during the 15th Finance Commission cycle (2021–22 to 2025–26). This includes an additional ₹1,920 crore beyond the original allocation

Key financial components:

• ₹1,000 crore allocated to establish 50 multi-product food irradiation units under the Integrated Cold Chain & Value Addition Infrastructure (ICCVAI) component.
  • These units are expected to build food preservation capacity of 20–30 lakh metric tonnes per year, thereby reducing spoilage and wastage 
  • ₹920 crore earmarked for sanctioning projects across other PMKSY component schemes, encompassing cold chain, value addition, and packaging infrastructure

Supporting infrastructure under PMKSY:

• 100 NABL-accredited Food Testing Laboratories (FTLs) to be set up under the Food Safety & Quality Assurance Infrastructure (FSQAI) scheme. These labs bolster food safety compliance and enable modern food testing across the country

Implementation mechanism:

• Entities across India will be invited to submit proposals via Expression of Interest (EOI). Approval will follow scrutiny under scheme guidelines.
• These demand-driven components aim to bring in private-sector participation under regulated accreditation norms

Background of PMKSY:

• Initially launched in 2017 as SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters) with ₹6,000 crore.
• Renamed to Pradhan Mantri Kisan SAMPADA Yojana, implemented by the Ministry of Food Processing Industries (MoFPI).
• Objectives include infrastructure modernization from farm gate to retail outlet, reduction of food wastage, value addition, farmer income enhancement, and boosting exports

Conclusion

This ₹6,520 crore cabinet approval significantly scales up India’s food processing infrastructure through mission-mode investment:

• Enhances food preservation & safety: Irradiation units and NABL labs improve storage shelf-life and quality control, effectively addressing post-harvest losses.
• Encourages private sector participation: Demand-driven EOIs for irradiation units and laboratories attract private investment under regulated standards.
• Promotes value addition and farmer income: By integrating cold chains, safety infrastructure, and processing facilities, the scheme contributes to higher farm-level and aggregate value creation.
• Institutional strengthening & governance: Coordinated execution via MoFPI, standardized guidelines, and EOI-based selection reinforce institutional transparency.

PMKSY, launched as SAMPADA in 2017; ₹6,520 crore approved during 15th FCC; 50 irradiation units; 100 NABL-certified labs.

4. India–Singapore Conduct 32nd Edition of SIMBEX Naval Exercis

Context: 

SIMBEX, the longest uninterrupted naval exercise for India, underpins key strategic objectives: Act East Policy, Vision SAGAR, maritime cooperation in the Indo-Pacific, and fostering defense diplomacy with ASEAN nations.

Details

• The Indian Navy will participate in the 32nd edition of SIMBEX (Singapore-India Maritime Bilateral Exercise), hosted by the Republic of Singapore Navy in Singapore later in July 2025.
• SIMBEX began in 1994 as ‘Exercise Lion King’ and is India’s longest uninterrupted maritime drill with a partner nation.
• High Commissioner Shilpak Ambule emphasized the exercise’s alignment with Vision SAGAR and Act East Policy, highlighting India’s regional maritime engagement and strategic commitment.
• Participating vessels include INS Delhi (destroyer), INS Satpura (frigate), INS Kiltan (corvette), and the fleet tanker INS Shakti.
• The deployment is led by Rear Admiral Susheel Menon, Flag Officer Commanding Eastern Fleet.
• The exercise includes anti-submarine warfare, air and surface drills, search-and-rescue operations, communications exercises, and interoperability training under complex maritime conditions.
• The exercise coincides with 60 years of India–Singapore diplomatic ties, further underlining deepening bilateral cooperation in security and maritime domains
• SIMBEX enables joint responses to threats like piracy and non-state actors, and reinforces India’s role as a net security provider ensuring free and safe sea lanes

Conclusion

The 32nd SIMBEX embodies strategic depth and operational synergy in Indo-Singapore naval engagement:

• Maritime Diplomacy & Security: It reinforces India’s proactive role in regional maritime security architecture and its dimensions under Vision SAGAR and Act East.
• Operational Interoperability: By deploying indigenously built platforms and participating in complex naval drills, the exercise enhances coordination and readiness between both navies.
• Strategic Messaging: Amid rising Indo-Pacific tensions, SIMBEX reflects shared commitment to a rules-based maritime order, counter-piracy, and collective security.

5. Google to build a 1-gw data centre worth USD 6billion in visakhapatnam AP

Context: 

It reflects India’s thrust toward building digital infrastructure, foreign direct investment (FDI), green energy integration, and global tech leadership

Details

• In July 2025, Google announced a US $6 billion investment to establish a 1-gigawatt data centre and associated power infrastructure in Visakhapatnam, Andhra Pradesh—its first such venture in India and the largest data centre project in Asia by capacity and investment.

Renewable Energy Focus:

• US $2 billion of the investment is earmarked for renewable energy infrastructure to power the facility sustainably, aligning with Google’s global carbon-free goals 
• Andhra Pradesh plans to develop around 10 GW of power generation capacity during the next five years to meet energy demands for such digital infrastructure projects (predominantly green, complemented by coal)

Strategic Vision & State Policy:

• Andhra Pradesh aims to scale up to 6 GW of data centre capacity over five years from a near-zero base; 1.6 GW in commitments are already finalized, slated to be operational within 24 months—exceeding the current national operational capacity (~1.4 GW)
• The state offers targeted incentives under its IT & Global Capability Centres (GCC) Policy 4.0 (2024–29)—covering land subsidies, power tariffs, capital and rental support

Connectivity & Data Infrastructure:

• Plans to set up three cable landing stations in Visakhapatnam aim to create a submarine connectivity network twice the scale of Mumbai’s, to attract global digital traffic and strengthen the city as a regional data gateway

Economic & Skill Impact:

• The project is expected to generate thousands of direct and indirect jobs, spanning construction, systems operations, cloud, AI, and support services
• Partnerships emphasize AI education, training, and engaging local colleges/startups to integrate digital skills and sustainable tech adoption

Conclusion

Google’s 1 GW data centre signals a transformative shift in India’s digital infrastructure landscape:

• Digital sovereignty & global standing: Marks India’s entry into hyperscale infrastructure and solidifies its position in global cloud, AI, and data ecosystems.
• Renewable integration blueprint: The $2B green energy commitment highlights a sustainable model for tech-industrial expansion—critical for UPSC themes linking infrastructure with environmental governance.
• Regional economic uplift: Visakhapatnam is being positioned as a “data city”, with state-level ecosystem development (AI, innovation hubs, submarine cables) boosting regional growth post-reorganisation of Andhra Pradesh

Policy synergy: The support through GCC Policy 4.0, along with state land allotments and skill schemes like “Future Skills Credit”, illustrates methods of leveraging governance instruments to catalyse private investment

6. Australia’s First Indigenous Orbital Rocket ‘Eris’: Maiden Flight and Learnings

Context: 

The Eris launch underscores the growth of private-sector-led space capabilities, national ambition for sovereign launch capacity, and the regulatory framework enabling commercial launches—central themes for contemporary governance and policy in the global space economy.

Details

       About Eris & Developer

• Developed by Gilmour Space Technologies, founded in 2013, Eris is Australia’s first homegrown orbital launch vehicle—23 m tall, ~30 tonnes, with hybrid propulsion.
• The rocket uses four Sirius hybrid engines in stages one and two, and a Phoenix liquid engine in stage three, capable of delivering ~300 kg payload to low Earth orbit

       Regulatory & Launch Timeline

• Bowen Orbital Spaceport in North Queensland, operated by Gilmour Space, received approvals from Australian Space Agency (ASA) and Civil Aviation Safety Authority (CASA) by February–May 2025.
• Initial launch attempts were repeatedly postponed due to technical issues (payload fairing anomaly, electrical glitches) and weather checks

Maiden Flight – TestFlight 1 (30 July 2025)

• Launch took place at ~8:35 a.m. AEST from Bowen. Eris cleared the launch pad and sustained 23 seconds of engine burn, but crashed after 14 seconds due to loss of thrust and lateral deviation
• All four hybrid engines ignited successfully, lift-off was clean, and launch infrastructure remained undamaged. No injuries or environmental harm reported
• Gilmour leadership hailed the flight as a success, emphasizing data collection and validated systems. Acknowledged that orbit on first attempt is rare and pledged a second flight within six months

     Funding & Strategic Significance

• Gilmour Space received AUD 5 million in July 2025 and AUD 52 million in 2023 from the Australian government. The company maintains a supply chain across ~300 Australian firms and aims to establish commercial launch services

Conclusion

Though short-lived, Eris TestFlight 1 is a strategic leap for Australia’s space ambitions:

• Sovereign capability: Marks the first orbital-class launch attempt by an Australian company from Australian soil in over 50 years, signaling entry into an elite group of nations with domestic launch capability.
• Technical validation: Key systems including propulsion, avionics, telemetry, and spaceport infrastructure performed as designed; early failure provides data to refine future launches.

• Governance framework in action: Enables private space entry under robust regulatory oversight (ASA, CASA), offering a model for public-private collaboration in space policy.
• Strategic potential: Enables future low-cost small-satellite launches, boosting domestic innovation, jobs, and positioning Australia in the global small-satellite launch market.