8 August 2025 Current Affairs (With PDF)

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Parliament Clears Two Landmark Maritime Bills Aimed at Modernizing Shipping Sector

Overview

In a significant step towards reforming maritime governance, the Parliament has passed two key legislative proposals under the Ministry of Ports, Shipping and Waterways:

• The Lok Sabha has cleared the Merchant Shipping Bill, 2025, and
• The Rajya Sabha has approved the Carriage of Goods by Sea Bill, 2025.

These Bills aim to align India’s maritime legal framework with international conventions and enhance ease of doing business in the shipping sector.

Merchant Shipping Bill, 2025 (Replaces the Merchant Shipping Act, 1958)

1. Objective:

To harmonize Indian maritime laws with international standards, including conventions such as:

• MARPOL (International Convention for the Prevention of Pollution from Ships)
• Nairobi Wreck Removal Convention

2. Key Provisions:

a. Compulsory Vessel Registration:

• Mandatory for all vessels, regardless of propulsion method or size.
• Provision for temporary registration of vessels specifically intended for recycling.

b. Broadened Definition of ‘Vessels’:

• Now includes non-traditional vessels such as: Mobile offshore drilling units, Submersibles, Non-displacement crafts

c. Relaxed Ownership Norms:

• Ownership can include: Indian citizens, Indian-incorporated companies or bodies, Registered cooperative societies, Overseas Citizens of India (OCIs)

d. Administrative Reforms:

• Director-General of Shipping is now renamed as Director-General of Marine Administration.
• Empowered to regulate maritime education and training standards.

e. Social Security and Seafarer Welfare:

• Seafarer employment agreements to include additional stakeholders.
• Mandates access to social security for maritime workforce.

f. Environmental Safeguards:

• Pollution prevention made stricter by requiring Pollution Certificates for all vessels, irrespective of tonnage.

g. Institutional Continuity:

• Retains statutory backing for: National Shipping Board and National Welfare Board for Seafarers

Carriage of Goods by Sea Bill, 2025 (Replaces the Indian Carriage of Goods by Sea Act, 1925)

1. Objective:

• To update India’s legal regime on sea-based cargo transport, bringing it in line with modern global shipping practices.

2. Key Provisions:

a. Incorporation of Hague-Visby Rules:

• Adopts the 1924 Hague Rules along with later amendments, bringing India in sync with globally accepted maritime liability standards.

b. Enhanced Role of Central Government:

• Empowered to Issue directives and Frame or amend rules relating to Bills of Lading

c. Bills of Lading - Explained:

• A legal document issued by a carrier to a shipper that details: Type and quantity of goods, Condition at loading, Destination of the shipment
• Plays a key role in international trade documentation and cargo claims.

Rising Power Rivalries Challenge ASEAN’s Strategic Role in the Indo-Pacific

Escalating geopolitical tensions and economic protectionism in the Indo-Pacific are threatening to undermine ASEAN’s long-standing leadership role in shaping regional affairs. The growing US-China rivalry, tariff disputes, and shifting alliances are pushing the region toward greater fragmentation.

Understanding ‘ASEAN Centrality’

1. Core Concept:

• ASEAN Centrality implies that the Association of Southeast Asian Nations (ASEAN) should be at the forefront of steering the political and economic architecture of the Indo-Pacific.

2. Historical Context:

The idea gained traction after the Cold War, particularly following the collapse of the Soviet Union, when:

• The U.S. began scaling down its military footprint in Asia.
• Concerns rose over Japan’s potential remilitarisation.
• China's economic and military rise created new strategic uncertainties.

3. India’s Position:

• India has consistently reaffirmed its support for ASEAN Centrality, most notably in the Prime Minister’s 2018 address at the Shangri-La Dialogue, endorsing a free, open, inclusive, and rules-based Indo-Pacific.

Emerging Threats to ASEAN Centrality

1. Strategic Polarization Due to U.S.-China Rivalry:

• ASEAN’s unity is challenged as member states have varying strategic and economic dependencies on Washington and Beijing.
• This diversity hampers consensus-driven ASEAN forums.

2. Weakening of Multilateral Mechanisms:

• Key ASEAN-led platforms like the East Asia Summit (EAS) and ASEAN Regional Forum (ARF) are losing effectiveness amidst great power competition.

3. Economic Strains from Tariff Wars:

• Protectionist U.S. policies and tariff escalations have disrupted global trade norms.
• ASEAN countries face internal divisions on how to respond, eroding collective economic strategies.

Strategic Measures to Reinforce ASEAN Centrality

1. Internal Strengthening of ASEAN:

• Promote greater institutional cohesion.
• Build rapid-response capabilities for crises.
• Explore flexible decision-making processes beyond consensus.
• Proactively engage on sensitive security issues.

2. Deeper Engagement with Like-Minded Countries:

• Collaborate with strategic partners like the European Union, Japan, and Australia.
• Develop multilateral frameworks that reduce dependence on the US-China binary.

3. Enhanced India-ASEAN Cooperation:

• India’s focus on economic diversification and regional peace aligns with ASEAN objectives.
• Cooperation in digital connectivity, supply chain resilience, and maritime security can be deepened.

4. Modernization of Trade Agreements:

• Upgrade and expand the Regional Comprehensive Economic Partnership (RCEP).
• Encourage broader participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Hiroshima Remembers: 80 Years Since the First Atomic Bombing

On August 6, 2025, Japan commemorated the 80th anniversary of the U.S. atomic bombing of Hiroshima, followed by Nagasaki on August 9, 1945. These bombings led to unprecedented destruction and long-lasting radiation effects, leaving a profound legacy on global geopolitics, nuclear policy, and disarmament movements.

Historical Context

• Hiroshima (August 6, 1945): Targeted with the uranium-based bomb "Little Boy".
• Nagasaki (August 9, 1945): Struck with the plutonium-based bomb "Fat Man".
• Casualties and Impact:
  - Tens of thousands killed instantly; many more died due to radiation exposure.
  - Marked the only use of nuclear weapons in armed conflict to date.

Geopolitical Consequences of the Bombings

1. End of World War II:

• Japan formally surrendered on September 2, 1945, bringing an end to the global conflict.

2. Rise of the Nuclear Arms Race:

• The Soviet Union conducted its first nuclear test in 1949, triggering a strategic arms race.
• Paved the way for the Cold War and a new global security paradigm.

3. Doctrine of Mutual Assured Destruction (MAD):

• A Cold War-era deterrence strategy: any nuclear strike would be met with overwhelming retaliation.
• Ensured nuclear weapons were more a tool of deterrence than use.

4. Civil Nuclear Cooperation:

• Formation of the International Atomic Energy Agency (IAEA) in 1957 to promote peaceful use of nuclear technology while monitoring proliferation risks.

5. Multilateral Disarmament Dialogue:

• Conference on Disarmament emerged as the premier global forum to negotiate arms control and nuclear disarmament agreements.

Major Global Treaties and Initiatives for Nuclear Disarmament

1. Partial Test Ban Treaty (PTBT), 1963:

• Prohibits nuclear tests in the atmosphere, underwater, and outer space.
• Allows underground testing, which continued until the 1990s.

2. Non-Proliferation Treaty (NPT), 1970:

Aims to:

• Prevent the spread of nuclear weapons.
• Promote disarmament.
• Facilitate the peaceful use of nuclear energy.

Currently, 191 countries are party to the treaty.

3. Comprehensive Nuclear-Test-Ban Treaty (CTBT), 1996:

• Bans all nuclear test explosions, regardless of purpose.
• Yet to enter into force due to non-ratification by key nuclear states.

4. United Nations Office of Disarmament Affairs (UNODA):

• Advocates for the complete elimination of nuclear weapons.
• Supports negotiation, implementation, and monitoring of disarmament agreements.

5. Recent Initiatives:

• Treaty on the Prohibition of Nuclear Weapons (TPNW) – First legally binding international agreement to comprehensively prohibit nuclear weapons.
• UN Pact for the Future – Ongoing efforts to promote peace, nuclear restraint, and non-proliferation in the 21st century.

WMO Confirms World’s Longest Lightning Flash Over U.S. Skies

Overview

The World Meteorological Organization (WMO) has officially certified a new world record for the longest single lightning flash.

• Distance Covered: 829 kilometers
• Location: Stretched from eastern Texas to near Kansas City
• Date: Occurred in 2017, now validated as the longest horizontal lightning strike ever recorded.

Understanding Lightning: Nature and Causes

1. What is Lightning?

• A massive electrical discharge occurring between oppositely charged regions within a cloud or between a cloud and the Earth’s surface.
• Happens when the electrical potential difference becomes large enough to overcome the insulating property of air.

2. Associated Phenomena:

• Thunder results from the rapid heating and expansion of air surrounding the lightning channel.
• When lightning is accompanied by thunder and rainfall, it is termed a thunderstorm.

3. Key Triggers of Lightning:

• Global Warming: A 1°C rise in temperature may lead to 7–18% increase in lightning activity (India-specific data).
• Pollution: Increased aerosol concentrations amplify lightning potential.
• Urbanisation: Alters land surface temperatures and atmospheric dynamics, increasing storm severity.

Trends and Impact in India

1. Rising Incidence:

• According to the India Meteorological Department (IMD) and the Climate Resilient Observing Systems Promotion Council (CROPC):
• India recorded a 57% increase in lightning strikes between 2019 and 2024.

2. Consequences:

• Human fatalities
• Structural damages: Electric fires, short circuits, insulation breakdown.
• Environmental impact: Bursting of trees due to rapid moisture evaporation.

India’s Mitigation Measures

1. National Disaster Management Authority (NDMA):

a. Two-Pronged Strategy:

• Scientific Interventions: Based on meteorological and geospatial research.
• Community Implementation: Awareness, preparedness, and responsive protocols.

b. Guidelines Issued:

• “Action Plan for Prevention and Management of Lightning and Thunderstorms” (2019)

c. Public Safety Initiatives:

• Protocol for Dissemination of Early Warnings
• SACHET Mobile App: For real-time lightning alerts and community safety tips.

2. India Meteorological Department (IMD):

a. Forecasting Capabilities:

• Lightning Outlook: From 5-day forecasts to 24-hour alerts.
• Nowcasting: Real-time, hyper-local predictions.
• Damini App: Dedicated lightning alert app for users across India.

b. Infrastructure:

• Three National Lightning Detection Networks
• Doppler Weather Radar (DWR) Network: Enhances detection and warning accuracy.

RBI Tightens Co-Lending Norms to Strengthen Risk Management and Transparency

Overview

The Reserve Bank of India (RBI) has issued revised guidelines for Co-Lending Arrangements (CLAs) between banks and Non-Banking Financial Companies (NBFCs). These updates aim to enhance risk-sharing, operational clarity, and ensure uniformity in asset classification under the regulatory frameworks of:

• Banking Regulation Act, 1949
• RBI Act, 1934
• National Housing Bank Act, 1987

What is Co-Lending?

• Co-lending refers to a collaborative credit model where two or more Regulated Entities (REs)—typically a bank and an NBFC—jointly lend to a borrower.
• Each entity contributes to the loan amount, and the loan is extended under a common set of terms, complying with prudential norms.

Key Features of the Revised RBI Directions

1. Minimum Lending Share Requirement:

• Each co-lender must retain at least 10% of the individual loan exposure in their own books.
• Ensures that all parties have a stake in credit quality and performance.

2. Priority Sector Lending (PSL) Benefits:

• Each lender is eligible to claim PSL status for their respective share, provided the underlying loan qualifies under PSL norms.

3. Uniform Asset Classification:

• If one RE classifies a loan as a Non-Performing Asset (NPA), all co-lenders must follow suit.
• Promotes consistency and avoids regulatory arbitrage.

4. Blended Interest Rate Mechanism:

• The borrower’s interest rate will be determined using a weighted average of each RE’s internal lending rate, proportional to their funding share.
• This brings transparency and fair pricing to the borrower.

Significance of the Co-Lending Model

1. For Banks:

• Extended reach: Banks can penetrate remote and underserved regions using NBFCs' local presence.
• PSL Compliance: Easier fulfillment of priority sector lending obligations through collaboration.

2. For NBFCs:

• Lower cost of funds: Access to capital at bank rates.
• Risk sharing: Reduces exposure concentration, improving financial resilience.

3. For Consumers:

• Cheaper Loans: Benefit from the competitive interest rates offered through bank-NBFC partnerships.
• Customized Solutions: NBFCs often provide flexible repayment plans, better suited to local borrower profiles.

Kartavya Bhawan Inaugurated as a GRIHA-4 Compliant Green Building

The Prime Minister recently dedicated Kartavya Bhawan to the nation - a state-of-the-art administrative complex built under the Central Vista Project.

The building is designed to meet GRIHA-4 (Green Rating for Integrated Habitat Assessment) standards, reflecting India’s commitment to sustainable infrastructure.

About Kartavya Bhawan

1. Function:

• Part of the Common Central Secretariat, aimed at housing various central government ministries and departments.

2. Sustainable Features:

• Solar panels for renewable energy generation
• Rainwater harvesting systems to optimize water use
• Efficient use of natural light and ventilation
• Designed with energy-efficient construction materials

What is GRIHA?

1. Full Form:

• Green Rating for Integrated Habitat Assessment

2. Purpose:

• A nationally recognized green building certification system that helps assess the environmental performance of buildings across multiple criteria.

3. Development & Recognition:

• Developed by TERI (The Energy and Resources Institute)
• Adopted as India’s national rating system for green buildings in 2007

Key Highlights of the GRIHA Rating System

1. Assessment Areas:

• Energy and water efficiency
• Waste management
• Use of sustainable building materials
• Indoor environmental quality
• Site planning and landscape design

2. Rating Levels:

• Buildings are awarded ratings from 1 to 5 stars based on their performance, with GRIHA-5 being the highest.

3. Applicability:

• Applies to both new construction and major renovations of buildings, promoting eco-friendly practices in urban planning.

RBI’s Monetary Policy Committee Holds Repo Rate Steady at 5.5%

In its August 2025 meeting, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) decided to keep the repo rate unchanged at 5.5%, while maintaining a neutral monetary policy stance. This decision reflects the RBI's cautious approach in balancing inflation concerns with growth recovery.

About the Monetary Policy Committee (MPC)

• Legal Basis: Constituted under Section 45ZB of the RBI Act, 1934 (amended by the Finance Act, 2016).
• Mandate: To determine the policy repo rate with the primary objective of achieving the inflation target, currently set at 4% (+/- 2%), under the flexible inflation targeting framework.

Composition and Structure

1. Total Members: 6

• 3 from RBI (including the Governor)
• 3 appointed by the Central Government (independent members)

2. Chairperson:

• RBI Governor (ex officio)

3. Voting Rights:

• Each member has one vote.
• The Governor has a casting vote in case of a tie.

4. Quorum:

• Minimum of 4 members must be present for a valid meeting.

Meeting Frequency

• The MPC is required to meet at least four times a year.
• Decisions are published with individual member opinions for transparency.

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