National Affairs
Diplomatic Relations and Agreements
India and Denmark signed a renewed Memorandum of Understanding (MoU) aimed at accelerating clean energy transition and supporting India’s target of achieving net-zero emissions by 2070. The MoU was signed by Shri Pankaj Agarwal, Secretary, Ministry of Power, and E. Mr. Rasmus Abildgaard Kristensen, Ambassador of Denmark to India, in the presence of Shri Manohar Lal, Minister of Power and Housing & Urban Affairs.
India and the European Union reaffirmed their commitment to finalize an ambitious Free Trade Agreement (FTA) by the end of 2025. This decision follows discussions between Indian Commerce Minister Piyush Goyal and EU Commissioner for Trade and Economic Security Maroš Šefčovič, aiming to enhance economic resilience and inclusive growth.
The FTA negotiations will maintain momentum through regular rounds, with the next round scheduled for May 12–16, 2025, in New Delhi. Both parties emphasized addressing non-tariff barriers alongside tariff discussions to ensure regulatory frameworks are inclusive and proportionate.
Infrastructure Development
Prime Minister Narendra Modi inaugurated the ₹8,800 crore Vizhinjam International Deepwater Multipurpose Seaport in Thiruvananthapuram, Kerala. This state-of-the-art facility is designed to be a major transshipment hub capable of accommodating the world’s largest cargo ships, reducing India’s dependency on foreign ports.
The inauguration aligned with the birth anniversary of Adi Shankaracharya and supports the government’s focus on coastal development under initiatives like Sagarmala, PM-Gati Shakti, and the Maritime Amrit Kaal Vision.
Economic Initiatives and Progress
GAME (Global Alliance for Mass Entrepreneurship) and NITI Aayog launched a collaboration to develop entrepreneurship ecosystems in Nagpur, Visakhapatnam, and Uttar Pradesh. The initiative unites government, corporates, and communities to solve region-specific challenges and support local businesses.
India’s Manufacturing Sector recorded its fastest growth in 10 months during April, with the HSBC PMI rising to 58.2 due to strong demand and new export orders. Experts suggest global production may be shifting more towards India.
The Central Government replaced the decades-old Sugar (Control) Order, 1966 with the Sugar (Control) Order, 2025 to modernize sugar sector regulation. This initiative aims to bring transparency, efficiency, and accountability in sugar production, pricing, and monitoring.
Healthcare Breakthrough
India achieved a significant milestone in medical science by conducting its first human gene therapy trial for haemophilia, marking a major advancement in the country’s biotechnology and healthcare sectors.
Security Matters
Telangana Chief Minister called for a national-level debate on Operation Kagar, a large-scale counterinsurgency initiative launched by the Indian government in 2024. The operation aims to dismantle Maoist insurgency in the “Red Corridor” spanning Chhattisgarh, Telangana, and neighboring states by March 2026.
U.S. Secretary of Defence Pete Hegseth called Indian Defence Minister Rajnath Singh to offer condolences for the Pahalgam Terror Attack. He condemned the attack, expressed strong support, and reaffirmed that the United States stands firmly with India against terrorism.
Banking and Financial News
RBI Initiatives
The Reserve Bank of India announced it will purchase ₹1.25 lakh crore worth of bonds between May 6 and May 19 through Open Market Operations (OMOs). According to Citi India’s Chief Economist Samiran Chakraborty, this move aligns with RBI’s continued accommodative stance and aims to improve monetary transmission.
The RBI appears to be targeting a specific liquidity surplus level of around 1% of banks’ net demand and time liabilities (NDTL), shifting from its previous approach of responding to market-based indicators like overnight rates.
The central bank imposed a monetary penalty of ₹1.00 lakh on Vanchinad Finance Pvt. Ltd., Ernakulam, Kerala for non-compliance with certain provisions of ‘Non-Banking Financial Company – Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016’.
The RBI’s first monetary policy meeting of FY25 began on April 7, with the decision on the repo rate expected on Wednesday. Experts anticipate another rate cut of 25 basis points amid growing concerns over global economic headwinds.
Market Movements
The Indian rupee surged 77 paise to 83.77 against the US dollar in early trading.
The Sensex and Nifty experienced an early trading spike due to Foreign Institutional Investor (FII) purchasing and anticipated enhanced trade relations between the US and India.
Adani Enterprises reported Q4 earnings increased 7.5 times, driven by the sale of Wilmar’s investment and robust development in solar manufacturing.
The tax office demanded more than ₹25 crore from Britannia Industries.
International Developments
Pakistan opened the Wagah Border to help nationals stranded in India after visa cancellation following the Pahalgam attack. Many were stranded after New Delhi cancelled visas post the deadly terror attack that killed 26 people.
The Indian High Commission in Bangladesh held a remembrance ceremony for the Pahalgam terror victims. High Commissioner Pranay Verma and Nepal’s Ambassador Ghanshyam Bhandar paid respects and condemned the brutal attack.
Ukraine and the US signed a historic minerals deal to boost Kyiv’s economy and strengthen industrial cooperation amid the ongoing war. Ukrainian President Zelenskyy called it historic, promising economic recovery and representing a respectful, balanced partnership.
China’s Commerce Ministry indicated openness to talks with the US over Trump’s 145% tariffs, potentially easing trade tensions and reviving global market confidence amid years of economic strain and conflict.
Corporate News
Amazon reported strong first-quarter earnings growth, though uncertainty around tariffs tempered future outlook.
Apple anticipated a $900 million tariff hit, with potential shifts in iPhone supply chains from the US to India.
Air India requested government assistance after calculating that a Pakistani airspace ban would cost it approximately $600 million over 12 months.
According to insider reports, Zoho suspended its $700 million chipmaking plan, marking another setback for India’s semiconductor manufacturing ambitions.
Sports Highlights
India concluded its campaign at the first Asian U-15 & U-17 Boxing Championships with 43 medals (15 gold, 6 silver, and 22 bronze), finishing second overall after Kazakhstan. The U-17 girls secured four golds, contributing significantly to India’s impressive medal tally.
The Kerala Cricket Association (KCA) suspended S. Sreesanth for three years over false remarks linked to Sanju Samson’s exclusion from the national cricket squad. The decision came after a meeting in Kochi on April 30, 2025.
India ended its Sudirman Cup Badminton Campaign with a 3-2 win over England but missed the quarterfinal spot due to earlier losses to Denmark and Indonesia. Anupama Upadhyaya and Satish Kumar Karunakaran secured strong victories in the final group match.
In European football, Manchester United beat Athletic Bilbao 3-0, while Tottenham won 3-1 against Bodo/Glimt in the Europa League semifinals first leg matches. Both teams now have strong chances of reaching the final.
Gurindervir, Animesh, Manikanta, and Amlan set a new national record in the 4×100-meter relay at the National Open Relay Carnival.
Jyoshna and Harsabardhan won medals for India at the World Junior and Youth Weightlifting Championships.
Important for Competitive Exams
RBI revised Priority Sector Lending (PSL) guidelines effective from April 1, 2025, including enhancement of loan limits, broadening of purposes for ‘Renewable Energy’ classification, revision of PSL targets for UCBs to 60% of Adjusted Net Bank Credit, and expansion of eligible borrowers under ‘Weaker Sections’.
The RBI’s GDP growth projection for 2025-26 remains at 6.5%, with quarterly projections at 6.5% in Q1, 6.7% in Q2, 6.6% in Q3, and 6.3% in Q4.
The Consumer Price Index (CPI) inflation projection for 2025-26 is 4.0%, with quarterly estimates at 3.6% in Q1, 3.9% in Q2, 3.8% in Q3, and 4.4% in Q4.
The Cabinet Committee on Political Affairs (CCPA) approved caste enumeration in the upcoming census.
This comprehensive update covers all major developments from May 3, 2025, providing essential knowledge for banking and competitive examination preparation. Stay informed, stay ahead!
