CURRENT AFFAIRS 05 September, 2025

CURRENT AFFAIRS 05 September, 2025

1. GST 2.0 WITH NEXT-GENERATION REFORMS –

• The 56th Goods and Services Tax (GST) Council, unveiled GST 2.0 with next-generation reforms to make the tax regime citizen-centric, boost agriculture, health, manufacturing, and improve ease of doing business.
• The changes in GST rates on services will be implemented with effect from 22nd September 2025.

What are the Key Tax Reforms Under GST 2.0?

• Simplified GST Structure: GST 2.0 replaces four GST slabs (5%, 12%, 18%, and 28%) with a two-slab system (5% (merit rate) for essential items and 18% (standard rate) for others), plus a 40% demerit rate for luxury, sin, and demerit goods like tobacco and pan masala.
• Tax Relief for the Essential Goods: Full GST exemption on individual life and health insurance policies. Essential goods such as Ultra-High Temperature (UHT) milk, paneer, and Indian breads now carry nil GST.
• Consumer Goods: GST on small cars, TVs, air conditioners, cement, and auto parts has been reduced from 28% to 18%. GST on renewable energy devices has been reduced from 12% to 5%.
• These cuts are expected to stimulate manufacturing, promote green energy adoption, and boost domestic demand.
• Medical and Health Devices: GST on 33 lifesaving drugs has been reduced from 12% to nil. GST on three critical drugs used for cancer and rare diseases has been reduced from 5% to nil, strengthening healthcare access.
• Support for Agriculture and Rural Sectors: Machinery like tractors, harvesters, and composters: GST reduced from 12% to 5%.
• Fertilizer inputs such as sulphuric acid, nitric acid, and ammonia: GST reduced from 18% to 5%.
• Labour-intensive goods like handicrafts, marble, and leather items: GST reduced from 12% to 5%.
• Trade Facilitation and Dispute Resolution: The Goods and Services Tax Appellate Tribunal (GSTAT) will be operational by December 2025.
• Process reforms for refunds and registration will improve dispute resolution, reduce litigation, and provide predictability for businesses, especially MSMEs.

2. TOTAL LUNAR ECLIPSE AND ‘BLOOD MOON’ –

• A total lunar eclipse is set to occur on the night of 7th September 2025. At this time, the moon will be completely covered by the Earth’s shadow, turning copper red (Blood Moon).

Total Lunar Eclipse

• About: A total lunar eclipse occurs when the Moon passes entirely through Earth’s umbra (darkest part of its shadow), with the Earth, Sun, and Moon perfectly aligned, completely blocking direct sunlight.

Blood Moon

• A Blood Moon refers to the reddish or coppery appearance of the Moon and occurs only during total lunar eclipses, which take place two to three times a year.
• During total lunar eclipses, the Earth blocks direct sunlight from reaching the Moon.
• However, sunlight passes through Earth’s atmosphere, where it is bent (refraction) and scattered.
• The blue wavelengths of light are scattered away, while the red and orange wavelengths pass through and fall on the Moon’s surface.
• This gives the Moon its distinctive deep red or reddish-orange colour.

3. NITI AAYOG STRATEGY TO DOUBLE PULSES PRODUCTION BY 2047 –

• In a major step toward agricultural self-reliance, Niti Aayog has released a comprehensive strategy to make India self-sufficient in pulses by 2030 and double its production by 2047. The report outlines a roadmap that integrates technological, ecological, and socio-economic interventions, aiming to transform the pulses sector into a pillar of India’s food and nutritional security.
• Currently producing 26.06 million tonnes (MT) of pulses (as of 2022), India is projected to increase production to 34.45 MT by 2030 and further to 51.57 MT by 2047, marking a potential surplus scenario in the coming decades.

The Strategic Targets

• Niti Aayog’s vision is anchored around two major targets,
• Achieve self-sufficiency in pulses by 2030
• Double national pulses production by 2047
• The projections have been carefully estimated using both aggregate and crop-specific models, providing production estimates of 32.1 MT by 2030 and 50.7 MT by 2047—closely aligning with the national production targets.

4. FDI IN INDIA RISES 15% IN Q1 FY26 –

• India recorded a 15% rise in Foreign Direct Investment (FDI) during April–June FY26, with inflows reaching USD 18.62 billion compared to USD 16.17 billion in the same period last year. The United States emerged as the largest source of FDI, nearly tripling its investments despite tariff disputes.

Key FDI Highlights (Apr–June FY26)

• FDI Inflows: USD 18.62 billion (15% rise YoY).
• Total FDI (equity + reinvested earnings + other capital): USD 25.2 billion, up from USD 22.5 billion in Q1 FY25.
• Previous Trend: In the March 2024-25 quarter, FDI inflows had declined by 24.5% year-on-year.

Top Sources of FDI

• United States: USD 5.61 billion (vs. USD 1.5 bn last year).
• Singapore: USD 4.59 billion.
• Mauritius: USD 2.08 billion.
• Cyprus: USD 1.1 billion.
• UAE: USD 1 billion.
• Other contributors: Cayman Islands, Netherlands, Japan, and Germany.

5. NATIONAL TEACHERS’ AWARDS 2025: 45 TEACHERS SELECTED ACROSS INDIA –

• The Ministry of Education has announced the winners of the National Teachers’ Awards 2025. A total of 45 teachers from across the country have been selected for their remarkable contribution to school education. These awards will be presented on September 5, celebrated as Teachers’ Day in India.

National Teacher’s Day Awards 2025

• The award ceremony will be held on September 5, 2025, as part of the Teachers’ Day celebrations. Every year, the Ministry of Education organizes this event to acknowledge the nation’s best educators.

How were the Teacher Selected?

• The Ministry stated that the teachers were chosen through a transparent three-stage online process at the district, state, and national levels. The selection was based on their innovative teaching methods, dedication, and role in improving the quality of education.
• Total Awardees: 45 teachers
• Male Teachers: 24
• Female Teachers: 21
• Representation: 27 states, 7 union territories, and 6 national-level organizations

MCQ QUIZ

Q1.   The 21st edition of Exercise Yudh Abhyas 2025 between India and the USA is being held at which location ?

1. a) Fort Bragg, North Carolina
2. b) Fort Wainwright, Alaska
3. c) Fort Hood, Texas
4. d) Fort Irwin, California

Q2.   During PM Narendra Modi’s Japan visit, he was presented with a Daruma Doll, a cultural symbol in Japan. The Daruma Doll is modeled after which Indian monk, regarded in Japan as Daruma Daishi ?

1. a) Nagarjuna
2. b) Bodhidharma
3. c) Adi Shankaracharya
4. d) Ashvaghosha

Q3.   Recently, India’s Current Account Balance slipped into a deficit of $2.4 billion (0.2% of GDP) in Q1 FY26. What was the surplus recorded in Q4 FY25 ?

8. a) $8.6 billion (0.9% of GDP)
9. b) $5.7 billion (0.5% of GDP)
10. c) $13.5 billion (1.3% of GDP)
11. d) $10.9 billion (1.0% of GDP)

Q4.   With reference to Particularly Vulnerable Tribal Groups (PVTGs) in India, consider the following statements:

1. The PVTG category was created based on the recommendations of the Dhebar Commission.
2. The PVTGs were initially known as Primitive Tribal Groups during the Fifth Five-Year Plan.
3. Currently, there are 75 PVTG communities spread across 18 states and 2 union territories.

          How many of the above statements are correct ?

1. a) Only One
2. b) Only two
3. c) All three
4. d) None

Explanation-

• Statement 1: Correct – The Dhebar Commission (1960–61) identified the need to classify certain STs as more vulnerable.
• Statement 2: Correct – The category was first introduced as Primitive Tribal Groups during the Fifth Five-Year Plan (1974–1979).
• Statement 3: Incorrect – There are 75 PVTGs across 18 states and 1 union territory (Andaman and Nicobar Islands) — not 2 UTs.

Q5.   With reference to India’s ranking in the Global Peace Index (GPI) 2025, consider the following statements:

1. India was ranked 115th out of 163 countries.
2. India’s GPI score showed an improvement of 0.58% over the previous year.
3. India is ranked among the top 10 most peaceful countries in the Asia-Pacific region.

          Which of the statements given above is/are correct ?

1. a) 1 and 2 only
2. b) 2 and 3 only
3. c) 1 and 3 only
4. d) 1, 2 and 3

Explanation-

• Statement 1 is correct – India is ranked 115th out of 163 countries.
• Statement 2 is correct – India’s peacefulness improved by 0.58% compared to previous year.
• Statement 3 is incorrect – India is not in the top 10 in the Asia-Pacific; countries like New Zealand, Singapore are in top 10 in Asia pacific.

Answer Key