CURRENT AFFAIRS
08 April, 2025
1. DIEGO GARCIA & CHAGOS ISLANDS –
• The US has deployed six B-2 stealth bombers to Diego Garcia amid rising tensions with Iran.
• Located in the Indian Ocean, Diego Garcia is the only major US base in the region, enabling strategic power projection across Asia, Africa, and the Middle East.
Chagos Archipelago and Diego Garcia
• Chagos Archipelago:
• Location: It is situated 500 km south of the Maldives in the Indian Ocean, and consists of 58 islands.
• History: It was inhabited in the late 18th century when the French brought enslaved African and Indian laborers to work on coconut plantations.
• Under the 1814 Treaty of Paris, France ceded the Chagos Archipelago, along with Mauritius, to Britain, marking the beginning of British control over the region.
• In 1965, Britain detached the Chagos Islands from Mauritius to create the British Indian Ocean Territory (BIOT), compensating Mauritius with a 3 million-pound grant.
• Diego Garcia:
• It is coral atoll and the largest island of the Chagos Archipelago, located 7o south of the equator. It was leased to the US and UK in 1967 and became a military base in 1986.
• In 2024, the UK agreed to transfer sovereignty of the Chagos Islands to Mauritius while retaining control of the military base on Diego Garcia under a 99-year lease.
• This followed the 2019 International Court of Justice (ICJ) ruling supporting Mauritius’ sovereignty claims.
• It played a significant role in the Gulf War, Iraq and Afghanistan wars, and post-9/11 operations- highlighting the Indo-Pacific’s strategic importance.
2. INDIA AND SRI LANKA BILATERAL RELATIONS –
• India and Sri Lanka further deepened their ties as Prime Minister Narendra Modi received a grand welcome in Colombo, becoming the first foreign leader hosted by the newly formed Dissanayake government.
Key Outcomes and Agreements of The Visit
• Defence pact signed: Strengthens collaboration through the Colombo Security Conclave and enhanced security cooperation in the Indian Ocean Region.
• Assurance from Sri Lanka: Srilanka reaffirmed that its territory will not be used against India’s security interests, boosting regional stability.
• India-assisted railway modernisation projects: Maho-Omanthai line (128 km) refurbished with $91.27 million Indian assistance.
• Advanced signalling system from Maho to Anuradhapura, funded by a $14.89 million Indian grant.
• Trincomalee Energy Hub Development: Multi-product pipeline and port energy infrastructure to be jointly developed.
• Grid interconnectivity agreement signed, allowing electricity trade between India and Sri Lanka.
• Sampur Solar Power Project: Virtually inaugurated by both leaders, contributing to Sri Lanka’s clean energy goals.
3. EXCISE DUTY HIKED ON PETROL AND DIESEL –
• Central Government of India announced an increase in excise duties on petrol and diesel by ₹2 per litre each. According to a notification by the Revenue Department under the Ministry of Finance, the new excise duty on petrol is now ₹13/litre and ₹10/litre on diesel.
• Despite the duty hike, the Ministry of Petroleum and Natural Gas has confirmed that there will be no change in retail prices, as public sector oil marketing companies (OMCs) will absorb the increase.
• The change comes against the backdrop of global oil price fluctuations, triggered by the US’s tariff policies and increased output by OPEC+.
4. INDIA’S POSITION IN GLOBAL AI INVESTMENTS RANK 10TH GLOBALLY –
• India’s significant strides in artificial intelligence (AI) have been highlighted by a recent United Nations (UN) report, which places the country 10th globally in terms of private AI investment. In 2023, India secured a substantial Rs. 11,943 crore (US$ 1.4 billion) in private investment, reinforcing its position as one of the leading nations in AI development.
• Alongside China, India stands out as one of the only developing countries with significant AI funding, marking a key development in the global AI landscape.
• India’s improvement is also evident in its ranking in the United Nations Conference on Trade and Development (UNCTAD) ‘Readiness for Frontier Technologies’ Index, where it moved up from 48th in 2022 to 36th in 2024 out of 170 countries.
• This improvement reflects India’s growing investment in technologies that have the potential to reshape global industries.
5. WHAT IS STAGFLATION ? –
• On April 4, the US Federal Reserve Chair Jerome Powell said he was worried that President Donald Trump’s new “Liberation Day” tariffs might cause stagflation — a mix of high inflation and slow economic growth. This situation poses unique challenges for policymakers.
• Stagflation refers to a situation where an economy experiences slow growth, high unemployment, and persistent inflation simultaneously. This combination creates a challenging environment for economic management.
• The term was coined in 1965 by British politician Iain Macleod. Stagflation became widely recognised during the oil crises of the 1970s. The OPEC oil embargo led to soaring oil prices, which increased production costs and caused widespread economic disruption.
MCQ QUIZ
Q1. Which country recently honoured Prime Minister Narendra Modi with its highest civilian award, Mitra Vibhushana ?
a) Sri Lanka
b) Indonesia
c) Nepal
d) Bhutan
Q2. Which state is the host of seventh edition of Khelo India Youth Games 2025 ?
a) Karnataka
b) Bihar
c) Jharkhand
d) Maharashtra
Q3. Which organization designed and developed the Hansa-3 trainer aircraft ?
a) Hindustan Aeronautics Limited (HAL)
b) Indian Space Research Organisation (ISRO)
c) CSIR–National Aerospace Laboratories (NAL), Bangalore
d) Bharat Electronics Limited (BEL)
Q4. Consider the following statements about National Aerospace Laboratories (NAL):
1. It is a subordinate body of Hindustan Aeronautics Limited (HAL).
2. Its main focus is on military aviation strategy and combat drone design.
3. It operates under the Ministry of Science and Technology, Government of India.
How many of the above statements is/are correct ?
a) Only one
b) Only two
c) All three
d) None
Explanation-
• Only Statement 3 is correct.
• NAL is not under HAL, though it may collaborate with it.
• Its core focus is on civilian aviation, including regional aircraft, aerospace components, and wind tunnel testing, not military drone design.
• It operates under CSIR, which is under the Ministry of Science and Technology.
Q5. At the 6th BIMSTEC Summit, which of the following reflects a key strategic shift in India’s engagement with the group ?
a) Downgrading BIMSTEC to a sub-regional trade bloc focused on textile exports
b) Proposing an India-led BIMSTEC Space Mission targeting lunar exploration
c) Advocating for institutional reform and formally endorsing the BIMSTEC Charter
d) Launching a common currency framework for BIMSTEC countries
Explanation-
• The 6th BIMSTEC Summit (March 2022) marked a strategic shift as leaders, including India, endorsed the BIMSTEC Charter, which gave the grouping a formal structure, defining roles, institutional mechanisms, and sectoral mandates.
• India strongly advocated for institutional streamlining, leading to the reorganization of BIMSTEC’s areas of cooperation into seven pillars, with each country leading one.
• India assumed the lead on Security, covering counter-terrorism, cyber security, and disaster management.
• India’s emphasis was on regional connectivity, maritime security, and digital and economic integration, not space exploration or currency unification.
Answer Key
1 | 2 | 3 | 4 | 5 |
A | B | C | A | C |