📰 Today’s Highlights – 2 August 2025
As the new 25% U.S. tariffs on most Indian exports remain in force, markets remain on edge. The rupee continues to trade under pressure, while ongoing trade negotiations are expected to resume later this month when a U.S. delegation visits New Delhi. India’s Commerce Ministry has planned exporter consultations in Mumbai from 2–4 August to assess impacts across sectors like textiles, engineering, chemicals and food processing. Analysts warn these tariffs could shave off up to 30 basis points from India’s GDP growth, though further talks might mitigate damage. Meanwhile, U.S. officials acknowledge the complexity of resolving trade differences, especially over agriculture and dairy access.
Daily Current Affairs – MCQs (2 August 2025)
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**When were the new U.S. tariffs on Indian exports implemented?**A) 30 JulyB) 1 AugustC) 7 AugustD) 10 AugustAnswer: B) 1 AugustExplanation: The 25% reciprocal tariff on Indian exports was activated on 1 August, following Trump’s executive order.
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**What export sectors are the focus of India’s Mumbai consultations (2–4 Aug)?**A) Pharmaceuticals and ITB) Aviation and miningC) Textiles, engineering, chemicals, food processingD) Automobiles onlyAnswer: C) Textiles, engineering, chemicals, food processingExplanation: Commerce Minister Piyush Goyal is meeting exporters from these impacted sectors to formulate countermeasures.
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**What is the likely near-term impact on India’s GDP from the tariffs?**A) +50 bps boostB) No changeC) –30 bps dragD) –100 bps slumpAnswer: C) –30 bps dragExplanation: Analysts forecast a 0.3% GDP drag due to weakened export demand and uncertainty.
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**Which major sticking point remains in U.S.–India negotiations?**A) Automotive tariffsB) Agricultural and dairy market accessC) Currency policyD) Tourism agreementsAnswer: B) Agricultural and dairy market accessExplanation: U.S. insists on entry into India’s protected agriculture and dairy sectors, which India resists on cultural grounds.
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**What trade mission activity is expected this month?**A) U.S. delegation visits New DelhiB) Indian ambassador visits WashingtonC) Trade fair in TokyoD) WTO mediation conferenceAnswer: A) U.S. delegation visits New DelhiExplanation: Officials confirmed that a U.S. trade delegation would travel to India later in August for further negotiations.
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**What is India’s affirmed trade stance amid pressure?**A) Accept tariff concessionsB) Protect domestic agriculture and continue constructive dialogueC) Exit BRICSD) Suspend negotiations indefinitelyAnswer: B) Protect agriculture and maintain dialogueExplanation: India asserts willingness to negotiate but refuses to open sensitive domestic sectors.
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**What broader context did the Free Trade Agreement with the UK provide?**A) Showcases India’s global trade push with EuropeB) Offshores manufacturingC) Replaces U.S. trade entirelyD) Limits Indian exports to EuropeAnswer: A) Showcases India’s global trade push with EuropeExplanation: The India–UK FTA signed on 24 July is part of India’s diversification strategy toward Europe and ASEAN amidst U.S. uncertainty.
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**How are U.S. tariffs being characterized globally?**A) Temporary corrective measureB) Strategic sanction tool targeting countries like IndiaC) Currency management tacticD) Energy pricing mechanismAnswer: B) Strategic sanction tool targeting countries like IndiaExplanation: The broader U.S. tariff regime is viewed as punitive, especially given India’s continued trade with Russia and BRICS membership.
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**What action is recommended by former U.S.-India trade officials to revive negotiations?**A) Use high-level diplomacy between Modi and TrumpB) Impose counter-tariffsC) Withdraw from talksD) Begin WTO disputeAnswer: A) High-level diplomacy between Modi and TrumpExplanation: Experts suggest that top-tier engagement may be necessary to break the impasse.
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**Which describes the likely outlook for rupee sentiment in the coming weeks?**A) Strong rebound above ₹85B) Volatile with downward pressure due to tariffs and outflowsC) Stable within a narrow rangeD) Rapid appreciation due to capital inflowsAnswer: B) Volatile with downward pressure due to tariffs and outflowsExplanation: With sustained export tariffs, capital outflows, and uncertainty over trade resolution, analysts expect the rupee to remain under pressure.
✅ Summary:
Today's quiz covers the fallout from newly imposed U.S. tariffs on Indian exports, government outreach to exporters, ongoing trade negotiation hurdles, India’s refusal to compromise on domestic protection, and the need for strategic diplomacy to reset stalled talks.
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