Daily Current Affairs MCQ: 9th August 2025 - UPSC MCQ

Statement-I

“India enjoys a merchandise trade surplus with the U.S. amounting to $41.18 billion in 2024–25.”
This is correct. India’s exports to the U.S. during FY 2024–25 were approximately $86.51 billion, while imports from the U.S. were around $45.33 billion, yielding a trade surplus of $41.18 billion 

Statement-II

“The U.S. tariffs targeting Indian exports and crude oil imports may lead to a decline in GDP growth and an increase in the current account deficit.”
This is also correct. U.S. tariffs on Indian goods—including a looming 50% rate tied to oil imports—are expected to reduce export competitiveness and shave off GDP growth, with estimates ranging from a 0.3 percentage point to up to a full 1 percentage point hit.
Moreover, avoiding these tariffs—particularly by reducing Russian oil imports—could raise India’s oil import bill by $9 billion to $12 billion, thereby widening the current account deficit.

Relationship Between the Statements

Statement-II does not explain Statement-I.

• Statement-I simply states a fact about the trade surplus in FY 2024–25.

• Statement-II highlights potential future economic consequences from U.S. tariffs, which, while significant, do not explain why the trade surplus exists.

The correct option is:  Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I

The recent tariffs imposed by the United States on Indian exports and crude oil imports could potentially widen the trade deficit. This widening could have implications for India's economic stability and trade balance. Tariffs tend to affect export competitiveness and could lead to a widening trade deficit, impacting India's overall economic growth trajectory.

1. Nauru - Located in the southeastern Pacific Ocean: This is incorrectly matched. Nauru is located in the southwestern Pacific Ocean, about 1,300 km northeast of the Solomon Islands.

2. MERITE Scheme - A Central Sector Scheme involving collaboration with the World Bank: This is correctly matched. The MERITE Scheme is indeed a Central Sector Scheme, developed in collaboration with the World Bank to improve the quality, equity, and governance in technical education.

3. Industrial Accidents - Predominantly due to strict safety measures in India: This is incorrectly matched. Industrial accidents in India are significant due to systemic negligence, regulatory inertia, and a lack of stringent safety measures, not due to strict safety measures.

4. Yaren - De facto capital of Nauru: This is correctly matched. Yaren serves as the de facto capital of Nauru, even though the country has no official capital city.

Thus, only two pairs (2 and 4) are correctly matched.

1. Hepatitis D Virus (HDV) - Requires Hepatitis A Virus (HAV) for replication: This pair is incorrectly matched. Hepatitis D Virus (HDV) requires Hepatitis B Virus (HBV) for replication, not Hepatitis A Virus (HAV).

2. Co-infection with HDV and HBV - Increases risk of liver cancer: This pair is correctly matched. Co-infection with both HDV and HBV significantly increases the risk of severe liver damage and liver cancer.

3. CATCH Grant Program - Provides up to ₹50 lakh in grants: This pair is correctly matched. The Cancer AI & Technology Challenge (CATCH) Grant Program provides grants of up to ₹50 lakh to support AI-driven solutions for cancer care.

4. INC (Intergovernmental Negotiating Committee) - Focuses on air pollution: This pair is incorrectly matched. The Intergovernmental Negotiating Committee (INC) is focused on plastic pollution, not air pollution.

The correctly matched pairs are 2 and 3, making the total number of correctly matched pairs two.

1. Statement 1 is correct. Nauru is indeed one of the few phosphate rock islands in the Pacific. The island has been significantly affected by phosphate mining, which has impacted its agricultural viability due to the environmental degradation it causes. This statement correctly highlights the ecological challenges stemming from the island's geological characteristics and mining activities.

2. Statement 2 is incorrect. Nauru does not have an official capital city. Instead, the district of Yaren serves as the de facto capital. This distinction is important as it underscores the unique administrative setup of Nauru compared to other nations with designated capital cities.

3. Statement 3 is correct. Nauru's passport program is an innovative approach to fund climate action initiatives. This strategy reflects the broader challenges microstates face, particularly in the context of climate change, and highlights their efforts to secure funding and resources to mitigate these issues.

Thus, the correct answer is Option B: 1 and 3 Only, as only statements 1 and 3 accurately reflect the situation in Nauru regarding its phosphate mining impact and climate action strategies.

The main aim of the Cancer AI & Technology Challenge (CATCH) Grant Program is to enhance cancer care through innovative AI solutions. By supporting the development of AI-driven solutions for cancer screening, diagnostics, and treatment support, the program seeks to revolutionize cancer care in India. It provides grants for selected teams to implement AI technologies in the healthcare sector, emphasizing ethical AI development and readiness for deployment in the Indian healthcare context.

The main objective of the 'MERITE' Scheme approved by the Union Cabinet is to enhance technical education in government engineering institutions and polytechnics across all States and Union Territories in India. This scheme aims to improve the quality, equity, and governance in technical education, aligning with the National Education Policy-2020.

The revision of the "creamy layer" income ceiling for OBC reservation benefits is essential to adapt to changing economic conditions and ensure that the benefits reach those who truly need them. Inflation and rising income levels have made the current limit insufficient, highlighting the necessity for this revision. By updating the income ceiling, the aim is to maintain the effectiveness of the reservation system in providing support to disadvantaged OBC families.

1. Reciprocal Tariff Impact: Widening of the trade deficit by 1.56% of GDP - Incorrect. The impact on the trade deficit is mentioned as 0.56% of GDP, not 1.56%.

2. GDP Growth Impact: Estimated drop by 0.8 percentage points - Incorrect. The GDP growth is estimated to drop by 0.6 percentage points, from 6.5% to 5.9%.

3. Current Account Deficit: Expected rise to 1.15% - Correct. The CAD is expected to rise from 0.6% to 1.15%.

4. Mitigating Factors: New trade agreements with the U.K. and EU - Correct. New trade agreements with the U.K. and ongoing negotiations with the EU are mentioned as mitigating factors.

Pairs 3 and 4 are correctly matched, so the correct answer is Option B: Only two pairs.

1. Statement 1 is correct. The concept of the creamy layer was indeed introduced following the Indra Sawhney v. Union of India (1992) judgment. This landmark judgment laid down the principles for excluding the "creamy layer" from OBC reservation benefits to ensure that the most disadvantaged among the OBCs could benefit from reservations.

2. Statement 2 is correct. The creamy layer income ceiling has been revised several times since its inception. Starting with ₹1 lakh in 1993, it was increased to ₹2.5 lakh in 2004, ₹4.5 lakh in 2008, ₹6 lakh in 2013, ₹6.5 lakh in 2014, and finally to ₹8 lakh in 2017. These periodic revisions reflect the intent to adjust the income threshold in response to changing economic conditions.

3. Statement 3 is incorrect. The revision of the creamy layer income ceiling is mandated every three years according to Department of Personnel and Training (DoPT) norms, not every five years. This ensures that the income criteria remain relevant and aligned with economic realities, thereby maintaining the efficacy of the reservation policy.

Thus, the correct answer is Option B: 1 and 2 Only, as these statements accurately reflect the information regarding the creamy layer policy in OBC reservations.