📰 Today’s Highlights – 3 August 2025
The 25% U.S. tariffs on Indian exports remain in effect. While markets await a U.S. trade delegation to New Delhi later this month, sectors such as textiles, chemicals, engineering, and food processing are bracing for impact. Exporters are seeking government support, with consultations held in Mumbai. Meanwhile, senior U.S. officials acknowledge that resolving issues like agricultural and dairy access cannot be done overnight. Despite the tougher trade climate, analysts still believe that Indian assets—including the rupee and rupee‑denominated bonds—could attract foreign inflows later in the year once uncertainty eases.
Daily Current Affairs – MCQs (3 August 2025)
-
**What major event continues to weigh on the rupee?**A) RBI policy changeB) High U.S. tariffs on Indian exportsC) Domestic inflation spikeD) Surge in oil pricesAnswer: B) High U.S. tariffs on Indian exportsExplanation: The 25% reciprocal tariff announced by the U.S. remains in force, undermining trade confidence.
-
**Which sectors are being targeted in government‑exporter consultations in Mumbai (2–4 August)?**A) Automobiles onlyB) Textiles, engineering, chemicals, food processingC) Pharmaceuticals and financial servicesD) Mining and steelAnswer: B) Textiles, engineering, chemicals, food processingExplanation: Commerce Ministry is engaging exporters from these hardest-hit sectors to plan mitigation.
-
**When is the U.S. trade delegation expected to visit India?**A) This weekB) Mid‑AugustC) Later this monthD) SeptemberAnswer: C) Later this monthExplanation: Indian government confirms a U.S. delegation will visit New Delhi later in August to resume negotiations.
-
**Which major sticking point continues to stall U.S.–India trade talks?**A) Auto tariffsB) Agriculture and dairy market accessC) Currency controlsD) Technology transferAnswer: B) Agriculture and dairy market accessExplanation: U.S. seeks access, but India resists due to domestic concerns, stalling the deal.
-
**How are U.S. officials characterizing the pace of resolving differences with India?**A) Immediate agreement expectedB) Require fast-track diplomacyC) Cannot be resolved overnightD) Already concluded treatiesAnswer: C) Cannot be resolved overnightExplanation: A U.S. senior official acknowledged the complexity and time required to resolve key issues.
-
**What possible economic impact do analysts expect from the trade tensions?**A) GDP boost of 30 bpsB) No measurable impactC) GDP drag of up to 30 bpsD) Full economic collapseAnswer: C) GDP drag of up to 30 bpsExplanation: Forecasts suggest tariffs could shave around 0.3% off India’s GDP growth.
-
**Which Indian asset classes are expected to benefit once uncertainties ease?**A) Real estateB) Rupee & rupee‑denominated bondsC) Tech equitiesD) CommoditiesAnswer: B) Rupee & rupee‑denominated bondsExplanation: BofA projects India will emerge among Asia’s top beneficiaries via renewed foreign inflows and policy easing.
-
**Which country’s exporters may gain an edge due to U.S. tariffs on India?**A) BangladeshB) Pakistan’s basmati rice exportersC) Vietnam’s garment sectorD) Indonesian electronicsAnswer: B) Pakistan’s basmati rice exportersExplanation: India’s basmati loses 6% price competitiveness as Pakistan faces a lower 19% U.S. tariff.
-
**How are U.S.–India relations described in recent analysis?**A) Strategically deepeningB) Sharply deterioratedC) Stable but unsentimentD) Unaffected by tariffsAnswer: B) Sharply deterioratedExplanation: Despite earlier ties, analysts note rising diplomatic friction due to tariffs and geopolitical tensions.
-
**What describes the short‑term rupee sentiment?**A) Strong appreciation near ₹84B) Stabilizing around ₹86C) Volatile with depreciation risk near ₹87+D) Fixed peg to USDAnswer: C) Volatile with depreciation risk near ₹87+Explanation: With tariffs active and capital outflows persisting, analysts expect continued pressure around ₹87 and above.
✅ Summary:
Today's quiz covers ongoing fallout from U.S. tariff imposition, India’s efforts to support exporters, trade stalling over agriculture, the complex negotiation pace acknowledged by U.S. officials, and continued rupee volatility amid global economic jitters.
0 Comments