Daily Current Affairs UPSC Exam - July 31, 2025

Recent environmental, economic, and geophysical developments underscore India's multifaceted challenges and global interlinkages-from the rupee's sharp depreciation and mangrove restoration efforts to the powerful Kamchatka quake, India-U.S. NISAR satellite launch, and upcoming GDP-CPI base year revisions.

Category: Environment

Context

On July 31, 2025, the Indian rupee closed at ₹87.43 against the U.S. dollar, marking a sharp decline of ₹0.61-the steepest single-day fall in nearly three months. This drop was driven by growing concerns over proposed U.S. tariffs of 20% to 25% on Indian exports, along with uncertainty surrounding potential sanctions tied to India's energy and defense dealings with Russia.

Market Reaction

• During the day, the rupee declined to the range of ₹87.51-87.5125 before ultimately closing at ₹87.43.

• The stock markets experienced pressure, with the Sensex and Nifty indices dropping by about 0.6%, reflecting concerns over tariffs and overall global instability.

Contributing Factors

• Foreign Portfolio Investors (FPIs) experienced significant outflows, selling approximately ₹16,370 crore in stocks during the week and close to $2 billion throughout July.

• The increasing U.S. dollar index, nearing the range of 99.8-100, contributed to external pressures.

• Additionally, the rise in crude oil prices negatively impacted the sentiment towards the rupee, intensifying its decline

Currency Depreciation and Appreciation

• Over the past 11 trading days, the rupee has fallen by nearly ₹1.61, which is about a 2% decline.

• In July, the rupee experienced its largest monthly drop (approximately 2%) since September 2022, finishing at ₹87.60 on July 31-marking its lowest closing value and an intra-day low of ₹87.74.

• Experts caution that if trade conflicts continue, further depreciation could push the rupee toward ₹88 and potentially reach ₹89.50 by March 2026.

Impact on Indian Economy

• Economists predict that the manufacturing and export industries may encounter challenges, anticipating a decline of 30-40 basis points in GDP growth for 2025-26, particularly affecting sectors reliant on labor-intensive exports.

• Nonetheless, exports from India represent about 2-3% of the GDP, suggesting that the immediate impact might be limited; however, the indirect consequences resulting from uncertainty in investments are significant.

• Equity investors and capital markets have seen heightened volatility, resulting in decreased market sentiment and postponed investment choices.

Revitalizing Mangroves to Enhance Coastal Security in India

Importance of Mangroves:

1. Natural Defenses: Serve as protective barriers against cyclones, tidal waves, and coastal erosion.Climate Regulation: Function as carbon sinks, capturing and storing carbon dioxide along with blue carbon.

2. Biodiversity Sanctuaries: Offer habitats for various species, including fish, crabs, mollusks, and migratory birds.

3. Cultural and Economic Significance: Essential for local communities engaged in fishing, agriculture, and traditional customs.

Significant Threats to Mangroves:

- Urban development, pollution, shrimp farming practices, changes in water flow, and climate change are major threats.

- According to an IUCN report, over 50% of global mangroves face the risk of collapse by 2050.

Additional Points

- Mangroves are salt-resistant trees and shrubs that thrive in the coastal intertidal zones of tropical and subtropical areas, particularly where freshwater meets seawater, such as in estuaries and lagoons.

- India has approximately 4,975 square kilometers of mangrove forests (ISFR 2021), primarily located in Sundarbans, Gujarat, and Andhra Pradesh.

Distinctive Characteristics of Mangroves:

- Salt Adaptation (Halophytic Properties): They endure saline environments through specialized leaves that excrete salt and unique root systems.

- Unique Root Structures: Featuring stilt roots, pneumatophores (aerial roots), and prop roots for oxygen uptake and stability in soft, waterlogged soil.

- Tidal Resilience: Flourish in fluctuating tidal areas, capable of withstanding both submersion and exposure.

- Significant Carbon Storage: Accumulate substantial amounts of "blue carbon" in their biomass and deep, low-oxygen soils, which is vital for combating climate change.

- Breeding Grounds: Act as critical nursery habitats for fish, crabs, shrimp, and mollusks, supporting coastal economies.

- Natural Coastal Defense: Shield shorelines from cyclones, tsunamis, storm surges, and erosion.

- Species Variety: India is home to over 40 different mangrove species, with common genera including Avicennia, Rhizophora, and Sonneratia.

Ecological and Economic Importance:

Mangroves provide essential ecosystem services, including supporting biodiversity, carbon storage, enhancing fishery productivity, and sustaining livelihoods. They serve as natural barriers, particularly in disaster-prone coastal regions such as Sundarbans and the coast of Odisha.

Mangrove Distribution in India by State/Union Territory (in Descending Order): Here's your Mangrove Distribution in India by State/UT neatly formatted as a table:

Kamchatka Quake

Context : A massive 8.8 magnitude earthquake struck Russia's Kamchatka Peninsula, one of the strongest in recent times.

What Happened?

• It occurred on the Circum-Pacific Seismic Belt (Ring of Fire), which accounts for 80% of the world's strongest quakes.

• Triggered a tsunami with waves up to 3-4 metres in parts of Kamchatka and up to 2 feet in Hawaii.

• No casualties were reported despite significant flooding.

Rarity

• Only five quakes of magnitude 8.5+ have occurred globally in the past 20 years.
• Kamchatka is within the Ring of Fire, a highly active seismic zone with frequent earthquakes and volcanic eruptions.
• The last earthquake of similar magnitude in the region was in 1952.

Why It Happened - Subduction Zone

• Caused by subduction: movement where a denser oceanic plate dives beneath a lighter continental/oceanic plate.

• The Pacific Plate is being subducted under surrounding plates, leading to frequent high-magnitude quakes.

• The Pacific Ocean bed is the most seismically active region due to this tectonic process.

Other Vulnerable Zones

• The Circum-Pacific Belt includes:

Japan, Chile, Indonesia, Alaska, and Russia

• Also compared to the Alpide Belt and Mid-Atlantic Ridge, though those are less active.

India launches NASA-ISRO earth observation satellite

Context

On July 30, 2025, India and the United States successfully launched the NASA-ISRO Synthetic Aperture Radar (NISAR) Earth observation satellite from the Satish Dhawan Space Centre located in Sriharikota, India.

What is NISAR?

The NASA-ISRO Synthetic Aperture Radar (NISAR) is a collaborative Earth observation satellite created by ISRO and NASA.

Set to launch in July 2025, it is recognized as the most advanced Earth-observation satellite globally, developed at a budget of $1.5 billion.

It is engineered to monitor changes on Earth in close to real-time, focusing particularly on land, ice, and vegetation.

What Makes NISAR Unique?

NISAR employs two varieties of Synthetic Aperture Radar (SAR):

- L-band SAR (provided by NASA) - capable of penetrating deeper into vegetation and ice.
- S-band SAR (developed by ISRO) - designed for detailed surface mapping.

This satellite functions in two frequency bands at the same time, facilitating 3D imaging and the detection of minor changes over time (such as landslides, glacial shifts, and earthquakes).

It is equipped with a large radar antenna measuring 12 meters in diameter and deployable solar panels for energy.

Scientific Advantages

NISAR will aid in the examination of:

- Earth's crust deformation (due to seismic and volcanic activity)
- Glacial movements and melting processes
- Forest biomass and the carbon cycle
- Fluctuations in groundwater levels
- Changes in agricultural lands
- Analysis of disaster impacts

ISRO-NASA Partnership

NASA provided the L-band SAR and coordinated the mission's launch planning.
ISRO contributed the S-band SAR, the satellite's structure, and will oversee the launch from the Satish Dhawan Space Centre.
NASA's investment amounted to $1.1 billion, while ISRO allocated ₹900 crore.

Technological Features

- Radar Antenna Reflector: Measures 12 meters in diameter and can fold for launch.
- L-Band SAR: Capable of penetrating ice and vegetation.
- S-Band SAR: Sensitive to surface features, with limited deep penetration.
- Deployable Solar Arrays: Supply the necessary power for operation.

India to Launch New GDP and CPI Series

Overview

On February 27, 2026, the Government of India is set to introduce a new GDP series, designating FY 2022-23 as the base year, taking over from the previous base year of 2011-12. This update will also revise significant economic indicators such as the Index of Industrial Production (IIP) and the Consumer Price Index (CPI) to maintain the accuracy and relevance of India's macroeconomic data for policymaking.

Details of the Revisions

GDP Base Year Change:

- New base year: 2022-23 (replacing 2011-12).
- Initial estimates with the updated base year will include modified sectoral weights and refreshed data sources.

Index of Industrial Production (IIP):

- New base year: 2022-23.
- The revised series is expected to commence from FY 2026-27.

Consumer Price Index (CPI):

- New base year: 2024.
- Updated weights will derive from the 2023-24 Household Consumption and Expenditure Survey (HCES).
- The new CPI series is anticipated to be released in the first quarter of 2026.

Data Release Timeline (remains unchanged):

- CPI: 12th of each month at 4 PM.
- IIP: 28th of each month.

Importance of Base Year Revisions

- Ensures that sectoral weights (agriculture, manufacturing, services) remain relevant.
- Reflects new consumption trends and the rise of emerging sectors (e.g., renewable energy, digital services).
- Aids policymakers in formulating practical fiscal and monetary policies.

Includes:

- Outputs from agriculture, industry, and services.
- Taxes on products (like GST) less any subsidies.

Formula:

GDP at Market Prices = GVA at Basic Prices + Product Taxes - Product Subsidies

Gross Value Added (GVA)

Definition: The value of output after deducting the value of intermediate consumption.

Measured at: Basic Prices (excluding product taxes/subsidies).

Used to evaluate contributions from different sectors (agriculture, manufacturing, construction, services).

Key Differences Between GDP & GVA

Implications of the New GDP Series

For Policy: It will present a more accurate view of growth, inflation, and productivity.

For Markets: Investors and rating agencies will utilize the revised figures for their decisions.

For Comparisons: The data will be aligned with international statistical standards (UN System of National Accounts).