Indian Rupee Under Pressure Amid Dollar Surge
On July 29, the Indian rupee was expected to open weaker around ₹86.75–86.77 per USD, impacted by a surge in the U.S. dollar index that coincided with a steep fall in the euro. Foreign investors withdrew nearly $700 million from Indian equities, and stronger oil prices added further pressure on currency and market sentiment.
MCQs:
1. What was the expected opening range of the rupee per U.S. dollar on July 29?
A) ₹85.00–85.20
B) ₹86.00–86.10
C) ₹86.75–86.77
D) ₹87.50–87.60
Answer: C
2. How much did foreign investors pull out of Indian stocks recently?
A) ~$300 million
B) ~$500 million
C) ~$700 million
D) ~$1 billion
Answer: C
3. Which currency’s decline contributed to the rupee’s weakness?
A) British pound
B) Japanese yen
C) Euro
D) Chinese yuan
Answer: C
India Pushes Back on EU Oversight Proposal in Trade Talks
As India and the EU negotiate a free trade deal aiming for completion by the end of 2025, India has firmly rejected an EU proposal to establish a joint oversight body with a say in its capital-flow policies—citing strong concerns about sovereignty and its ability to manage economic crises independently.
MCQs:
1. What did India reject in the EU trade talks?
A) A tariff increase on agriculture
B) A joint oversight committee on capital flows
C) Visa-free travel between India and EU
D) Investment restrictions in tech sector
Answer: B
2. India’s main concern about the oversight proposal was:
A) Loss of trade benefits
B) Environmental obligations
C) Sovereignty over economic policy
D) Currency manipulation
Answer: C
3. The goal is to conclude the EU‑India trade deal by:
A) Mid‑2025
B) End of 2025
C) 2026
D) No deadline specified
Answer: B
$234 Million Drone Incentive Scheme Announced
On July 4, the Indian government unveiled a ₹20 billion (~$234 m) drone incentive scheme to boost domestic production of both civil and military drones. This initiative aims to reduce dependency on imports—especially following the drone escalation witnessed during the India‑Pakistan conflict in May 2025.
MCQs:
1. What is the total value of the drone incentive scheme?
A) ₹10 billion
B) ₹20 billion
C) ₹50 billion
D) ₹100 billion
Answer: B
2. The incentive scheme targets production of:
A) Only military drones
B) Only agricultural drones
C) Civil and military drones and components
D) Satellite technology
Answer: C
3. One motivation behind the scheme was:
A) Climate change mitigation
B) Response to May’s India‑Pakistan drone conflict
C) Boost tourism
D) Improve postal delivery
Answer: B
Defence Minister Rejects U.S. Pressure Claim in Kashmir Operation
On July 28, India’s Defence Minister clarified that the military operation in Kashmir in May ended because India met all its objectives, not due to international pressure. He refuted U.S. President Trump’s claim of brokering a truce, affirming New Delhi acted independently in deciding to halt operations after completing key goals, including neutralising threat actors in the April 22 attack on Hindu tourists.
MCQs:
1. Who denied that India ended its military action due to U.S. pressure?
A) Foreign Minister
B) Defence Minister
C) Prime Minister
D) Army Chief
Answer: B
2. According to India, why did the operation cease?
A) Lack of resources
B) International mediation
C) All defined objectives were achieved
D) Public protests
Answer: C
3. What event triggered the May operation in Kashmir?
A) Cross-border firing
B) Terror attack on tourists
C) UAV incursion
D) Economic sanctions
Answer: B
