Daily Current Affairs 2025  

14/08/2025

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Contents
1. Export Promotion Mission & US Tariffs: Impacts and Government Response
2. India’s first private constellation of EO satellites
3. Thayumanavar Thittam

 

 
India’s Export Promotion Mission (EPM) has gained urgent significance in 2025 due to a dramatic escalation in US tariffs on Indian goods.
 
Key Developments
Tariff Timeline:

• On August 1, 2025, a 25% tariff was applied to most Indian exports to the US.
• On August 7, 2025, this was followed by an executive order for an additional 25%, bringing cumulative tariffs on most products to 50%.
• Exemptions: Critical sectors like pharmaceuticals, electronics (semiconductors), energy products, and certain minerals have not faced additional tariffs.

 
Exposure:

• Roughly 55–70% of India’s merchandise exports to the US are now vulnerable to the higher tariff.
• Sectors worst affected: Textiles, gems & jewellery, leather, chemicals, auto components, and marine products.
• MSMEs, which have less pricing power and diversification, are at acute risk, with forecasts for engineering exports alone to drop by $4–5 billion. GDP forecasts have been revised down by 0.2–0.5% due to these changes.

 
Export Promotion Mission Adjustments
 
The Indian government has responded by accelerating the rollout and expanding the scope of the Export Promotion Mission:

• Policy Tweaks: Increased allocation from the initial ?2,250 crore, urgent stakeholder consultations, and focused relief for labour-intensive and MSME-driven sectors. The mission builds on trade finance enhancements, overseas warehousing, credit support, and a major push for global branding and market diversification.

 Urgency & Focus:
 

• The EPM blueprint now prioritises expanding India’s export base, especially for smaller companies and first-time exporters, and aims to offset US tariff blows by tapping into 50 countries rather than relying on a few dominant markets.

• Expanded trade facilitation: Streamlined credit, support for compliance with new standards, and targeted help for exporters adapting to shifting US requirements.

• Diversification Strategy: Accelerated FTAs with EU, UK, CPTPP, ASEAN, and focused product-by-product analysis to reduce dependency on the US market.

• Sectoral Relief: Dedicated schemes for the most-affected industries (textiles, gems, leather), including:

• Collateral-free loans, interest equalisation rates, and enhanced working capital support.

• R&D and upskilling funds for quality upgradation.

• Assistance for exporters to meet new compliance and documentation demands.

Strategic and Economic Implications

• Potential for Retaliation: The government is considering reciprocal tariffs on key US imports (aircraft, whisky, motorcycles) if negotiations fail, but remains cautious due to the scale of US–India trade.
• Diversification Push: The mission aims to mitigate the impact by encouraging exporters to explore new markets, modernise logistics, and improve product standards for global competitiveness.
• Domestic Substitution: There is a parallel push for local consumption—reviving the 'Swadeshi Movement' rhetoric—to reduce reliance on volatile foreign markets.
• Economic Effect: While S&P and some analysts expect the impact on GDP to be manageable (exports to the US represent ~2% of GDP), the fallout for MSMEs and labour-intensive sectors could be profound. The mission is seen as vital for protecting jobs and sustaining export-led growth in the face of global protectionism.

India's Export Promotion Mission is now a critical policy tool, turbocharged in both scale and urgency to cushion the economy against the disruptive shock of 50% US tariffs. The strategy emphasizes MSME support, trade finance, export diversification, sectoral relief, and global branding—with the goal of maintaining export momentum and protecting employment in vulnerable sectors.
 
Export Promotion Mission: Overview
India's Export Promotion Mission (EPM), launched with a ?2,250 crore outlay, is a comprehensive government initiative aimed at boosting exports—particularly supporting MSMEs (Micro, Small & Medium Enterprises).
The mission seeks to safeguard Indian industries from global trade shocks, enhance international competitiveness, and facilitate access to new markets.
 
Key Features:

• Credit Support for MSMEs: Easy access to collateral-free loans and interest equalisation support. This helps small exporters and financially constrained businesses fulfill international orders and expand operations.
• Trade Finance and Credit Schemes: Schemes like Niryat Rin Vikas (NIRVIK) and e-commerce export credit cards make working capital cheaper and more accessible. There is also collateral support for export credit, especially for MSME and e-commerce exporters.
• Digital Applications and Compliance: A unified digital trade portal streamlines compliance, documentation, customs filing, and access to trade finance, improving ease of doing business and reducing red tape.
• Upgraded Infrastructure: Investments in logistics, port connectivity, export hubs, and customs modernization aim to reduce turnaround times and logistical costs for exporters.
• Global Branding and Market Access: Initiatives for branding Indian exports globally, establishment of new trade offices (e.g., in Mexico, Kenya, Vietnam), and focused support for market diversification via FTAs (Free Trade Agreements). Export promotion councils advise on exploring newer and emerging markets.
• Sustainability and ESG Incentives: The mission includes a Green Export Credit framework and ESG (Environmental, Social, and Governance) benchmarks, with incentives for companies meeting sustainable production standards.
• Capacity Building: Enhanced allocation for skill development, digital training for e-commerce exports, and information campaigns on global standards. Customization for first-time exporters from smaller cities is included.

Sub-Schemes Under EPM
The EPM is structured under two categories:
Providing Trade Finance Support (NIRYAT PROTSAHAN)

• NIRVIK Sub-Scheme (Interest Equalisation for MSMEs)
• Collateral support for export credit
• Credit cards for e-commerce exports
• Support for emerging export opportunities
• Support for trade instruments for MSME exporters
• BharatTradeNET (digital trade network)

Driving International Market Access (NIRYAT DISHA)

• Technical regulations and compliance support (TRACE)
• Market access initiatives (FMAI)
• Overseas logistics and warehousing (FLOW)
• Global outreach and branding (GLOBE)
• Export planning and cluster development (EXPAND)
• R&D support for specialized sectors like lab-grown diamonds

Strategic Objectives
Inclusivity: Special credit windows for women-led businesses and first-time exporters.
Resilience: Reducing trade shock vulnerabilities and supporting a wider base of exporters.
 Scalability: Streamlining export procedures and infrastructure to enable rapid scale-up of export activities.
 The Export Promotion Mission represents a holistic and multifaceted approach to enhancing India's export capabilities, particularly focusing on MSMEs, digital adoption, infrastructure, sustainability, and global market expansion.
 
 
   
Why in news?
India’s first private constellation of Earth Observation (EO) satellites is being developed and led by a Bengaluru-based consortium headed by PixxelSpace India (PSI), under the facilitation of the Indian National Space Promotion and Authorization Centre (IN-SPACe).
This constellation marks a historic milestone as India’s first fully indigenous commercial EO satellite network built under a public-private partnership (PPP) model.
 
Key points:

• It is a historic first for India to have a fully indigenous private EO satellite system designed, built, launched from Indian soil, and operated domestically.
• The project involves deploying a constellation of 12 advanced EO satellites over the next 4 to 5 years.
• The total investment in the project is over ?1,200 crore.
• The satellite constellation will feature a mix of payloads including panchromatic, multispectral, hyperspectral, and Synthetic Aperture Radar (SAR) sensors.
• The satellites will provide high-resolution, Analysis Ready Data (ARD) and Value-Added Services (VAS).
• Key applications include precision agriculture, water quality monitoring, environmental compliance, land-use mapping, disaster assessment, infrastructure development, climate change monitoring, marine surveillance, and national security.
• The PPP framework involves government providing strategic, technical, and policy support, while the private consortium owns and operates the system including satellite manufacturing, launches, ground infrastructure, and data commercialization.
• The constellation will enhance India’s data sovereignty by reducing dependence on foreign satellite imagery.
• The project will foster innovation, generate thousands of skilled jobs, and contribute to growing India's space economy projected to rise from $8.4 billion in 2022 to $44 billion by 2033.
• It marks a transformative shift for India's space sector from a government-centric model to a vibrant private sector ecosystem.
• The satellites will be deployed in phases to ensure continuous upgrades and expanded global coverage.
• The consortium operates on a satellite-as-a-service model, providing guaranteed national access to advanced EO data delivered at scale with private sector agility.

 This initiative represents a major leap toward self-reliance (Atmanirbharta) in space technology and data for India and positions the country among global leaders in advanced EO satellite systems built and operated by private Indian companies from Indian soil.
 
IN-SPACe (Indian National Space Promotion and Authorization Centre)
It is an autonomous government agency created to promote, authorize, and supervise private sector participation in Indian space activities.
 
Key points about IN-SPACe:

• IN-SPACe is an autonomous, single-window government agency under the Department of Space, Government of India, established in 2020 as part of India’s space sector reforms.
• Its primary role is to promote, enable, authorize, and supervise space activities of non-governmental entities (NGEs) and private sector companies, allowing them to independently design, build, launch, and operate space missions and provide space-based services.
• IN-SPACe acts as an interface between the Indian Space Research Organisation (ISRO) and private players, facilitating access to ISRO’s infrastructure such as launch facilities, ground stations, and testing centers, while ensuring effective utilization of India's space resources.
• The agency provides a single-window clearance system for private space activities and ensures coordination between ISRO and private sector organizations. Its decisions are binding on both ISRO and private entities.
• IN-SPACe supervises various space activities including construction of launch vehicles and satellites, provision of space-based services, sharing of infrastructure controlled by ISRO/Department of Space, and establishment of new space facilities.
• It supports startups and MSMEs through initiatives like the Technology Adoption Fund (?500 crore) to help develop commercially viable space technologies.
• IN-SPACe introduced the Satellite Bus as a Service (SBaaS) initiative to encourage development of indigenous satellite bus platforms and reduce dependence on foreign technology.
• The organization has three key directorates managing promotion, technical matters, and program management and authorization functions.
• IN-SPACe’s establishment marks a transformative shift from a government monopoly to a vibrant public-private partnership ecosystem in India’s space sector, expanding innovation, commercial opportunities, and job creation.
• It plays a pivotal role in expanding India’s space economy and enabling private sector participation to enhance India’s global competitiveness and self-reliance in space technology and data.
• Headquarters of IN-SPACe is located in Bopal, Ahmedabad, Gujarat.

These points capture IN-SPACe’s function as the key facilitator and regulator of private space enterprises in India, promoting a collaborative and robust space ecosystem between government and private players.
 
   
The "Thayumanavar Thittam" is a significant welfare scheme launched by the Tamil Nadu government under Chief Minister M.K. Stalin. Here are the key details and highlights of the scheme:

Objective:

• The scheme aims to uplift approximately five lakh impoverished families in Tamil Nadu by providing integrated government assistance to eradicate extreme poverty within two years.
• It focuses on supporting vulnerable groups such as elderly living alone, orphans, single-parent families, mentally ill persons, differently-abled individuals, and children requiring special care.

Benefits:

• Monthly financial assistance of ?2,000 is provided to children who have lost both parents until they turn 18, helping them continue uninterrupted school education.
• After schooling, beneficiaries receive support for college education and skill development.
• Priority access to basic amenities, education, employment, skill enhancement, and housing is extended to eligible families under this scheme.
• The scheme integrates various government welfare programs to improve overall living standards of the identified poor families.

Eligibility:

• Applicants must be permanent residents of Tamil Nadu.
• Belong to one of the vulnerable categories mentioned above.

Budget and Implementation:

• Announced on February 19, 2024, during the Tamil Nadu budget for the 2024-25 fiscal year.
• The Rural Development and Panchayat Raj Department is responsible for implementation.
• A budget allocation of ?27,922 crore for rural development and Panchayat Raj has been made to support this and related poverty alleviation programs.
• Identification of beneficiary families involves extensive surveys, community involvement, and village panchayat consultations.
• The scheme is planned to be rolled out statewide with participation from elected representatives, NGOs, and banks.

Recent Development (August 2025):

• The scheme also includes a component to deliver ration products directly to the homes of over 21.7 lakh elderly and disabled citizens in Tamil Nadu.
• This door-to-door ration delivery starts on a pilot basis in Chennai and nine districts, operating through over 34,809 fair price shops.
• Delivery occurs on the second Saturday and Sunday of each month, with the Cooperation Department funding this service.

The "Thayumanavar Thittam" reflects the Tamil Nadu government's commitment to social welfare by ensuring critical support reaches the marginalized sections directly, enhancing their quality of life and reducing poverty.
 

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