3 August 2025 Current Affairs | Daily UPSC News for Prelims & Mains | The Hindu & IE Analysis

 India–U.S. Tariffs 2025

🧠 Syllabus: GS Paper 2 – Bilateral Relations
📰 Source: TH

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🗞️ 1. What Happened Recently?

• In 2025, U.S. President Donald Trump put a 25% import tax on Indian goods.

• He said the reason is India's close defense and oil ties with Russia.

• In reply, India’s Foreign Ministry said that India-U.S. friendship is still strong.

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🌐 2. How Are India and U.S. Ties Right Now?

• Both countries call each other global strategic partners.

• They work together in:

  • Democracy 🗳️

  • Trade 💼

  • Defence 🛡️

  • Culture and people’s connections 👨‍👩‍👧‍👦

👀 But, some differences are coming up again – especially about Russia, BRICS, trade issues, and regional friends.

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⚠️ 3. Main Problems Between India and U.S.

3.1 India–Russia Connection (Strategic Autonomy)

1. India still buys weapons (like S-400 missiles) and oil from Russia, even though U.S. is unhappy about it.

2. U.S. added tariffs and pressure, like CAATSA-style warning.

3. India wants to stay independent in global politics (called "strategic autonomy").

4. U.S. wants India to side with them in big power fights.

👉 Example: India still buying Russian oil and weapons despite western sanctions.

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3.2 Tariff War – Trade and Market Access

1. U.S. added 25% tax on Indian textiles, telecom, auto parts, gems.

2. U.S. says India has high import tax (17%) and hidden rules that stop fair trade.

3. India replies that U.S. also puts more tax on agriculture and metals.

4. Now, Indian clothes, leather, gems face 30–38% U.S. tax.

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3.3 BRICS and Global Group Politics

1. Trump called BRICS an anti-U.S. group, and was angry India is part of it.

2. India says BRICS is important for Global South unity, just like QUAD is for Indo-Pacific.

3. India follows multipolar policy – stays in BRICS and also in I2U2, QUAD.

👉 Means: India wants friendship with all groups, not just one side.

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3.4 U.S.–Pakistan Closeness Again

1. U.S. is again talking with Pakistan, calling it a partner against terrorism.

2. India is upset – India wants Pakistan to be isolated for supporting terror.

3. A new U.S.–Pakistan oil deal made Delhi uncomfortable.

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3.5 Competing National Pride – ‘America First’ vs. ‘India First’

1. U.S. follows “America First”, and India also is pushing “India First” diplomacy.

2. India talks of "Sabka Saath, Sabka Vikas" even in foreign policy.

3. But in U.S., some experts now think India has big dreams but no clear alignment.

4. Think tanks like Carnegie say India has a “great-power delusion”.

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📉 4. Economic Effects on India

4.1 Export Becomes Expensive

1. Because of new tariffs, Indian goods like clothes, gems, agri products will cost more in the U.S.

2. So, countries like Bangladesh and Vietnam may take India's market.

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4.2 MSMEs Will Suffer

1. Small businesses in India – like garments, leather, handicrafts – may lose buyers.

2. This can lead to job loss, especially in poor and semi-urban areas.

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4.3 India May Get Ignored in Global Supply Chains

1. U.S. companies may not want to source from India anymore due to high cost.

2. India’s dream of being a global supply chain hub may take a hit.

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4.4 Trade Surplus May Fall

1. India usually sells more to U.S. than it buys – this is called a trade surplus.

2. But high tariffs can reduce this, affecting India’s forex and bargaining power.

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4.5 FDI and “Make in India” Hit

1. If trade policy is uncertain, foreign investors may stay away.

2. This hurts India’s manufacturing goal and job creation under “Make in India”.

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🧭 5. Strategic Impact Beyond Trade

5.1 Friendship Feels More Transactional

• Earlier, India-U.S. talked about shared values and trust.

• Now it’s becoming “what can you give me” type of friendship.

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5.2 Pressure on India’s Independent Foreign Policy

• U.S. wants India to choose sides between West and Russia/China.

• India wants to remain neutral and balanced.

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5.3 Old Trust Issues Coming Back

• Trump’s criticism is making people in Delhi remember Cold War times.

• India wants to stay away from this East vs. West fight.

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5.4 Problems in Student & Tech Exchanges

• If trust breaks, there can be problems in visas, students, research, and even tech companies.

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5.5 Energy Independence at Risk

• U.S. now linking tariffs with India’s oil deal with Russia.

• This can affect India’s freedom to buy oil from wherever it wants.

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🔚 6. Conclusion 

India–U.S. relations are strong, but now under big pressure.
There are serious differences on:

• India’s friendship with Russia & BRICS

• Trade and tariff policies

• U.S. closeness with Pakistan

• National pride and global roles

👉 The future depends on balance — India must protect its independence but also manage good ties with U.S. for trade, tech, and defence.

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🧾 FAQs on India–U.S. Tariffs 2025

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❓1. Why did the U.S. impose new tariffs on Indian goods in 2025?

🟢 Answer:
U.S. President Donald Trump imposed a 25% tariff on Indian imports because of India’s continued defence and energy ties with Russia, especially during a time when the West has put sanctions on Russia.

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❓2. What sectors of Indian exports are affected?

🟢 Answer:
The U.S. tariffs target key Indian sectors like:

• Textiles 👕

• Telecom equipment 📱

• Automobile parts 🚗

• Gems and jewellery 💎

• Leather goods 👞

These now face up to 30–38% import duty in the U.S.

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❓3. What is India’s response to these tariffs?

🟢 Answer:
India’s Ministry of External Affairs said that the India–U.S. partnership is strong, but India will continue its independent foreign policy, including buying oil and weapons from Russia when needed.

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❓4. What is meant by India’s “Strategic Autonomy”?

🟢 Answer:
Strategic Autonomy means that India takes independent decisions in its foreign relations, without getting forced to pick sides in global power struggles like U.S. vs Russia or China vs QUAD.

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❓5. How are these tariffs affecting India’s economy?

🟢 Answer:

• Indian exports become less competitive in U.S.

• MSMEs (small industries) suffer losses

• Job cuts may happen in garments, footwear, and handicrafts

• India’s trade surplus with the U.S. may fall

• FDI (foreign investment) in manufacturing may slow down

🌍 ICJ Ruling Revives Legal Status of Kyoto Protocol 

🧠 Syllabus Covered: GS Paper 3 – Environment, International Agreements
📰 Source: IE

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🗞️ 1. What Happened Recently?

• The International Court of Justice (ICJ) gave a historic advisory opinion.

• It said the Kyoto Protocol (1997) is still legally valid, even though the Paris Agreement (2015) is now the main climate deal.

• This decision surprised many because most people thought Kyoto was dead after 2020.

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📜 2. What is the Kyoto Protocol?

1. It was adopted in 1997 and started in 2005, under the UNFCCC.

2. It was the first legally binding treaty that forced developed countries (Annex-I) to cut their greenhouse gas emissions.

3. It worked on the principle of CBDR–RC – "Common But Differentiated Responsibilities and Respective Capabilities".

4. There were two commitment periods:

   • First: 2008–2012

   • Second: 2012–2020

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🎯 3. Key Features of the Kyoto Protocol

1. Mandatory emission cuts for rich countries (from 1990 levels).

2. Clean Development Mechanism (CDM) created – where rich countries can invest in clean projects in poorer countries and get emission credits.

3. Required finance & tech transfer to developing countries.

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❓4. Why People Thought Kyoto Was Useless After 2020?

1. In 2015, the Paris Agreement was signed – it used a voluntary, bottom-up model (NDCs) unlike Kyoto's strict top-down targets.

2. U.S. never joined Kyoto, and countries like Canada & Japan left it.

3. No third commitment period was agreed after 2020.

4. Though not repealed, it was treated like a dead treaty.

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⚖️ 5. What Did the ICJ Say in 2025?

1. Just because there's no new target after 2020 doesn’t mean the treaty is cancelled.

2. Kyoto Protocol is still a part of international climate law.

3. Countries who didn’t meet their past targets may be guilty of "internationally wrongful acts".

4. Even old targets (like 2008–2012) can be reviewed again.

5. It gives power to civil society and smaller nations to file climate litigation and ask for accountability.

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🌐 6. Why Is This Ruling Important?

6.1 Legal Pressure Comes Back

• Developed countries may now face legal scrutiny for their past climate failures.

6.2 Kyoto and Paris Can Co-Exist

• The ruling supports the idea that both treaties can work together, not replace each other.

6.3 CBDR Principle Returns Stronger

• Kyoto was based on equity and fairness, which Paris had diluted.

• Now, CBDR–RC gets revived, making it hard for rich countries to escape blame.

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📉 7. Challenges in Reality

1. U.S. never ratified Kyoto → big blow to its effectiveness.

2. No penalty system in Kyoto → countries ignored targets with no consequences.

3. Paris is flexible, while Kyoto is strict → confusion in global climate governance.

4. Geopolitical tensions (like U.S.–China rivalry) block any unified climate action.

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🧭 8. What Should Be Done Next?

8.1 Bring Back Kyoto’s Monitoring System

• Countries should be asked to report and explain their past Kyoto commitments.

8.2 Improve Paris Transparency

• Paris needs stronger reporting rules, just like Kyoto had.

8.3 Use Courts and Tribunals

• ICJ-type rulings and tribunals can help clarify state responsibilities for climate action.

8.4 Strengthen North–South Climate Justice

• Rich nations must do fair burden-sharing and give finance and tech to poor nations, as promised.

8.5 Mix Kyoto’s Legality with Paris’s Flexibility

• A hybrid climate governance model may work best: strict for some, flexible for others.

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🧩 9. Final Thoughts

So, the ICJ basically said — “Hey, just because a new treaty came doesn’t mean you can forget the old one.”
Developed countries can’t just walk away from their past promises.
This ruling gives legal teeth to old climate fights and opens a new door for climate justice.

👉 It’s not binding, but it puts moral + legal pressure on rich countries to act now.
In the bigger picture, it’s a wake-up call that history matters in climate change, and the world must not ignore the climate debt of the past.

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🧾 FAQs on Kyoto Protocol & ICJ Ruling 2025

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❓1. What is the Kyoto Protocol?

🟢 Answer:
The Kyoto Protocol (1997) is the first international treaty that made it legally mandatory for developed countries to cut their greenhouse gas emissions. It followed the CBDR principle – meaning rich countries should do more because they polluted more historically.

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❓2. Why was the Kyoto Protocol considered dead after 2020?

🟢 Answer:
After the Paris Agreement (2015) came, Kyoto looked outdated:

• Paris allowed voluntary targets (NDCs).

• Major countries like USA never joined, and Canada, Japan quit.

• There was no 3rd commitment period after 2020.
  So, people thought Kyoto was no longer valid, even though it wasn’t officially cancelled.

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❓3. What did the ICJ rule in 2025?

🟢 Answer:
The International Court of Justice (ICJ) said:

• Kyoto Protocol is still legally alive.

• Even if no new targets are added, past commitments still matter.

• Countries can be held accountable for not meeting their emission targets earlier.

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❓4. Is the ICJ ruling legally binding?

🟢 Answer:
No, the ruling is advisory, not binding.
But it has moral and legal influence, especially in global climate talks and climate litigation in courts.

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❓5. Can countries now be punished for ignoring Kyoto targets?

🟢 Answer:
While there are no direct penalties, the ruling says non-compliance may be treated as an “internationally wrongful act”. This opens doors for:

• Legal action

• Climate lawsuits

• Global pressure on rich countries

🌿 Why the World Needs Better Green Technologies in 2025

🧠 Syllabus: GS Paper 3 – Climate Change, Renewable Energy, Science & Tech
📰 Source: TH

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🌱 1. What Are Green Technologies?

Green technologies are tools and inventions that help protect nature.
They focus on:

• Less carbon emissions

• More energy efficiency

• Using natural resources in a sustainable way

🔍 Example: Solar panels, wind turbines, hydrogen fuel, electric vehicles, etc.

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⚠️ 2. Why Current Green Technologies Are Not Enough?

Even though we have solar and wind now, still there are many big problems. Let’s understand point by point 👇

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🔋 2.1. Low Efficiency of Old Solar Panels

• Most solar panels today are silicon-based, which only give 15–18% efficiency.

• Newer ones like gallium arsenide panels can reach up to 47%, but they are not used widely.

🧠 Why this matters?
If efficiency is doubled, we need half the land, which is very important for a crowded country like India.

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🏞️ 2.2. Solar Energy Needs Too Much Land

• Solar panels take up huge land areas.

• But we also need land for:

  • Farming 🌾

  • Forests 🌳

  • Cities 🏙️

So, there is a land vs energy trade-off. In a country like India, land is precious.

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💨 2.3. Green Hydrogen Isn’t Fully Green Yet

• Making green hydrogen uses more energy than it gives back.

• It’s hard to store and transport due to leakage issues.

• If we convert it to ammonia or methanol for transport, it takes even more energy.

So in the end, it’s not as “green” as it sounds sometimes.

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🌍 2.4. CO₂ Emissions Still Rising

• Even after years of solar expansion, CO₂ levels went from 350 ppm (1990) → 425 ppm (2025)!

• This means renewables are not growing fast enough to beat rising energy demand.

🧠 Example: India makes 6 GW of solar cells, but that’s not enough unless we upgrade to better technology.

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💡 2.5. We Need Breakthrough Innovation, Not Just Expansion

Two promising ideas:

• Artificial Photosynthesis (APS): Like how plants make food using sunlight and CO₂, we can make fuel.

• RFNBOs (Renewable Fuels of Non-Biological Origin): EU is exploring ways to make fuel from sunlight and air directly!

These could skip complex processes and cut emissions from the root.

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🚧 3. Challenges to Better Green Technologies

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3.1. High R&D Cost and Long Time to Develop

• New tech like multi-junction solar cells takes years and huge money to develop.

3.2. Too Much Dependence on China

• India depends on China for 80% of solar components.

• This creates a risk during geopolitical tensions.

3.3. Still at Lab Level

• APS, RFNBOs, etc., are not proven at mass level yet.

• Governments and companies are afraid to invest without guaranteed results.

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🚀 4. Way Forward – What Should India & World Do?

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4.1. Invest in R&D

• Spend more on research for advanced solar tech, APS, and hydrogen innovation.

4.2. Build Public-Private Partnerships (PPP)

• Get startups + govt labs to work together on new green tech.

4.3. Don’t Put All Eggs in One Basket

• Use a mix of:

  • Solar ☀️

  • Wind 💨

  • Hydrogen 💧

  • Nuclear ⚛️

  • Waste-to-Energy ♻️

4.4. Use Land Smartly

• Promote:

  • Floating solar panels

  • Rooftop solar

  • Solar on buildings

This saves land and still gives clean power.

4.5. Collaborate Globally

• Join hands in tech sharing and innovation missions like:

  • Mission Innovation

  • India–EU Green Deal

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🧾 5. Conclusion 

So the thing is — the green tech we use today is good, but not good enough.

The world’s energy demand is rising fast. If we don’t invent faster, we’ll always be one step behind pollution.

India must think ahead — not just install more solar panels, but create smarter, cleaner ones.
Innovation isn’t a luxury anymore… it’s the need of the hour.

Let’s make “green” not just a colour, but a reality 🌿

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🌿 FAQs – Better Green Technologies in 2025

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❓1. What are green technologies?

🟢 Answer:
Green technologies are innovative tools or systems that help reduce environmental damage and promote clean energy.
Examples include solar power, wind turbines, green hydrogen, and waste-to-energy systems.

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❓2. Why are today’s solar panels considered inefficient?

🟢 Answer:
Most of today’s solar panels use silicon, which gives only 15–18% efficiency in the real world.
Newer materials like gallium arsenide can go up to 47%, but are too costly or not mass-produced yet.

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❓3. What’s the problem with land and solar energy?

🟢 Answer:
Solar panels need a lot of space to generate enough power.
But countries like India face land scarcity due to:

• High population

• Urban expansion

• Agricultural needs

• Biodiversity zones

So, we need higher-efficiency panels to save space.

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❓4. Is green hydrogen really green?

🟢 Answer:
Not always.
Green hydrogen needs a lot of electricity to produce through electrolysis, and storing or transporting it is very hard.
Converting it to ammonia or methanol for easy transport adds even more energy use, making the process less efficient.

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❓5. If we’re installing renewables, why is CO₂ still rising?

🟢 Answer:
Because:

• Global energy demand is rising faster than renewable capacity.

• Fossil fuel use is still dominant in many countries.

• Renewable sources need higher efficiency to make a big dent.

CO₂ has risen from 350 ppm (1990) to 425 ppm (2025) despite solar growth.

🚰 Polavaram–Banakacherla Project Dispute: Explained Simply

Tags: GS1 (Water Resources), GS2 (Inter-State Relations), GS3 (Irrigation)

Source:-IE

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📌 Why in News?

The Central Government has set up a high-level committee to sort out the growing water-sharing conflict between Andhra Pradesh (AP) and Telangana over the Polavaram–Banakacherla Link Project (PBLP) and other disputes related to Krishna–Godavari river waters.

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🏞️ What is the Polavaram–Banakacherla Link Project (PBLP)?

1. Main Goal:
   To solve water scarcity in the Rayalaseema region (very dry area in AP) by diverting 200 TMC of floodwater from Godavari River to the Krishna and Penna rivers.

2. How Will Water Travel?

   • Start from Polavaram Dam

   • Go via Prakasam Barrage

   • Lifted to Bollapalli Reservoir

   • Then tunneled under the Nallamala forest

   • Reaches Banakacherla reservoir in Rayalaseema

3. Why It Matters?

   • Improves irrigation, drinking water, and farming

   • Boosts livelihoods and water security in Southern Andhra Pradesh

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⚠️ What Are the Main Disputes?

1. ❌ Violation of 2014 Reorganisation Act

• Telangana says AP broke the rules of the Andhra Pradesh Reorganisation Act, 2014.

• As per the Act, AP must take permission from:

  • Apex Council

  • Krishna River Management Board (KRMB)

  • Central Water Commission (CWC)

• But AP allegedly didn't consult these bodies.

2. ❓ Is the Water Really “Surplus”?

• AP says 200 TMC of Godavari water is “surplus”.

• Telangana disagrees, says it’s not officially approved by any tribunal or authority yet.

3. 🌳 Environmental Concerns

• The original Polavaram Project got clearance in 2005, but experts now say:

  • There should be fresh review

  • Because it might cause flooding in Odisha & Chhattisgarh

4. 🚱 Unauthorised Water Diversion

• Telangana says Godavari water is being diverted into Krishna basin without their consent.

• This could harm Telangana’s own water projects in the Krishna basin.

5. 🧩 Breakdown of Cooperative Federalism

• Telangana says AP is acting unilaterally, not cooperating.

• This breaks the idea of cooperative federalism, where states are supposed to work together for shared resources.

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⚖️ Legal Mechanism for Inter-State River Water Disputes

1. Constitutional Provisions

• Article 262(1): Parliament can make laws to solve water disputes.

• Article 262(2): Courts (even SC) can be barred from interfering in such disputes.

• Entry 17 (State List): States control local water use like irrigation, canals, etc.

• Entry 56 (Union List): Centre can manage inter-state rivers for the public good.

2. Important Laws

• River Boards Act, 1956: Central Govt can create River Boards, but sadly, none have been made till now.

• Inter-State Water Disputes Act, 1956:

  • If Centre fails to resolve a dispute, it can form a Water Tribunal

  • The tribunal’s decision is final

  • In 2002, an amendment said:

    • Tribunal should be set up in 1 year

    • Decision should be given in 3 years

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🏛️ Role of Supreme Court

• Technically, under Article 262, SC should not interfere in water disputes.

• But in real world, states still go to SC under Article 131 or 136.

• Example: Mahadayi case (2018) — SC gave verdict between Goa, Karnataka, Maharashtra.

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❗ Key Issues with Water Dispute Resolution in India

1. Delays, Delays, Delays

   • Tribunals take decades.

   • E.g., Cauvery Tribunal took 17 years (1990–2007).

2. No Common Water Data

   • States show different water data.

   • No independent body to check who's right.

   • E.g., Odisha vs Chhattisgarh in Mahanadi case.

3. Court vs Tribunal Confusion

   • Even though SC is barred, states go to court anyway, causing legal confusion.

4. Weak Enforcement

   • Tribunal verdicts need Central Government notification to be valid.

   • Sometimes Centre delays or doesn’t act due to political reasons.

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✅ What Can Be Done?

1. Time-Bound Decisions

   • Make tribunals give verdicts within strict deadlines.

2. Create a River Basin Authority

   • A central, neutral body with real-time water data to avoid confusion.

3. Encourage Cooperative Federalism

   • Use forums like Inter-State Council for early dialogue and trust-building.

4. Permanent Water Tribunal

   • Like GST Council, make a standing tribunal with technical experts.

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🔚 Conclusion:

India's inter-state water issues like PBLP dispute show that just building dams isn’t enough.
We need trust, clear rules, transparency, and early resolution mechanisms to ensure fair water distribution.
States must move from blame games to collaborative solutions, else the water wars will only grow worse in future.

 

FAQs on the Polavaram–Banakacherla Project Dispute 

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❓ 1. What is the Polavaram–Banakacherla Link Project (PBLP)?

Answer:
It is an inter-basin water transfer project planned by Andhra Pradesh to divert 200 TMC of surplus Godavari river water to drought-prone Rayalaseema through the Krishna and Penna basins, aiming to improve irrigation, drinking water, and agriculture.

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❓ 2. Why is Telangana opposing the project?

Answer:
Telangana says:

• The project violates the Andhra Pradesh Reorganisation Act, 2014, as it was done without approvals from the Apex Council, KRMB, or CWC.

• The claim of 200 TMC as “surplus water” is not verified by any tribunal.

• It might reduce water availability for Telangana’s own projects in the Krishna basin.

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❓ 3. What is the main environmental concern?

Answer:
Though the Polavaram Project got clearance in 2005, the Expert Appraisal Committee (EAC) now says it needs a fresh review due to:

• Submergence disputes with Odisha and Chhattisgarh

• Potential ecological harm to forests and tribal regions.

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❓ 4. Is diverting Godavari water to Krishna basin legal?

Answer:
Technically, inter-basin transfers need mutual consent.
Telangana claims Andhra Pradesh is doing it unilaterally, which violates the principles of cooperative federalism.

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❓ 5. What is Article 262 of the Constitution?

Answer:
It gives Parliament power to make laws for resolving water disputes between states.
It also allows Parliament to bar courts (like the Supreme Court) from interfering in such matters.