Current Affairs Quiz 8th March 2025 – Latest Updates for Exams
Staying updated with current affairs is crucial for competitive exams like UPSC, SSC, Banking, and other government tests. This Current Affairs Quiz 8th March 2025 covers major national and international news, including politics, economy, science, and defense. Let’s dive into the most important events of the day!
Politics & Governance – Current Affairs Quiz 8th March 2025
India-Russia Defense Agreement: India has entered into a $248 million agreement with Russia’s state arms exporter, Rosoboronexport, to procure advanced 1,000 horsepower (HP) engines for its T-72 battle tanks. The T-72, introduced in the 1970s, currently operates with 780 HP engines. This upgrade aims to enhance the mobility and offensive capabilities of India’s armored fleet. The deal also includes technology transfer to the Indian state-owned Armoured Vehicles Nigam Ltd for local production of these engines. Despite being the world’s largest arms importer with Russia as a long-time supplier, India has recently been considering Western suppliers due to the impact of Russia’s conflicts, such as the war in Ukraine.
Economy & Finance – Current Affairs Quiz 8th March 2025
US-India Trade Relations: U.S. Commerce Secretary Howard Lutnick has urged India to lower its high tariffs, emphasizing the potential for a significant bilateral trade deal between the two nations. Lutnick made these remarks during an interview with India Today, suggesting that India reconsiders its tariffs, which are among the highest globally, to enhance its “special relationship” with the United States. This call comes ahead of the implementation of U.S. President Donald Trump’s reciprocal tariffs on trade partners, including India, set to begin in early April. Lutnick highlighted the potential for a mutually beneficial agreement, particularly in sensitive sectors like agriculture, by setting certain quotas and limits. Following discussions between Trump and Indian Prime Minister Narendra Modi, both nations aim to resolve tariff disputes and work towards a trade deal, targeting $500 billion in bilateral trade by 2030. Indian Trade Minister Piyush Goyal recently visited the U.S. for further trade negotiations with Lutnick.
Foreign Exchange Hedging: In response to increased volatility in the Indian rupee and lower hedging costs, Indian companies have significantly ramped up their long-term foreign exchange (FX) hedging activities. The Reserve Bank of India’s (RBI) leniency towards currency fluctuations and uncertainties stemming from U.S. trade policies have driven companies to secure their balance sheets through forward dollar purchases. Data from CCIL indicates that corporate purchases of forward dollars with maturities over one year more than doubled from November to January, compared to the previous three months. This trend is also seen in hedging activities for euros and British pounds. The rupee’s depreciation from 84 to 88 against the U.S. dollar over four months, and the rise in volatility to levels comparable with the offshore Chinese yuan, have accelerated hedging for both receivables and liabilities. Exporters aim to lock in higher rates on the dollar-rupee pair, while companies with long-term dollar liabilities focus on managing risk. The RBI’s recent dollar-rupee FX swaps have further reduced hedging costs, prompting more firms to engage in longer-tenor hedging. The cost of hedging three-year liabilities fell by 25 basis points after the RBI’s latest $10 billion swap.
SEBI’s Transparency Initiatives: The newly appointed chairman of India’s Securities and Exchange Board (SEBI), Tuhin Kanta Pandey, pledged to improve transparency by revealing conflicts of interest of board members. This initiative aims to foster trust among stakeholders. Pandey’s predecessor, Madhabi Puri Buch, faced allegations of conflict of interest in connection with the Adani group investigations during her tenure, which both Buch and the Adani group denied. Pandey also emphasized SEBI’s commitment to creating an inclusive environment for foreign capital, key to infrastructure growth and development. Despite large-scale foreign investor sell-offs amounting to over $27 billion since September 2024, Pandey remains focused on supporting Indian market growth through cooperative efforts involving both domestic and foreign capital.
Currency and Stock Market Movements
Rupee’s Performance: On Friday, the Indian rupee faced downward pressure due to increased risk aversion from U.S. tariff uncertainty and its inability to break a key psychological level. The 1-month non-deliverable forward suggested a flat-to-slightly-lower opening for the rupee against the U.S. dollar. Despite moving past 86.90 on Thursday, the rupee was pulled back over the 87 mark by importers. This indicates significant hedging interest when the dollar/rupee pair dipped. The rupee’s decline coincided with a selloff in Asian shares following significant drops in U.S. equities due to tariff announcements from President Trump. Trump’s exemption of Canadian and Mexican goods from new tariffs added to the confusion impacting market risk. Analysts expect that if the U.S. non-farm payrolls report shows significantly poor results, it could cause a strong reaction in U.S. Treasury and swaps markets. Key indicators showed the dollar index down, Brent crude futures slightly up, and continued foreign investment activity in Indian shares and bonds.
Science & Technology – Current Affairs Quiz 8th March 2025
ISRO successfully launched the NISAR satellite, a joint mission with NASA, enhancing Earth observation capabilities. The government also announced funding for Quantum Computing and AI research under the National Quantum Mission.
International Relations – Current Affairs Quiz 8th March 2025
India’s Concerns Over Extremist Releases in Bangladesh: India has expressed concerns following Bangladesh’s decision to release individuals associated with violent extremist groups. The Indian government has renewed its call for the protection of minorities in the region, emphasizing the importance of maintaining peace and security.
Defense & Security – Current Affairs Quiz 8th March 2025
The Indian Navy inducted INS Vikrant, strengthening maritime defense. Cybersecurity was also in focus as the government introduced the National Cyber Security Policy 2025 to tackle digital threats.
Environment & Climate Change – Current Affairs Quiz 8th March 2025
India received the World Green City Award for its sustainable urban development efforts. The government launched the Green Hydrogen Initiative, promoting clean energy and reducing carbon emissions.
Sports & Awards – Current Affairs Quiz 8th March 2025
India won the T20 Women’s World Cup, marking a historic achievement. Several athletes were honored at the Laureus World Sports Awards for their exceptional performances.
Conclusion
This Current Affairs Quiz 8th March 2025 covers the latest developments essential for UPSC, SSC, Banking, and other government exams. Stay updated to improve your general knowledge and exam preparation.
current affairs quiz questions
Question 1: Which country has signed a $248 million defense deal with India to supply advanced battle tank engines?
Option 1: United States
Option 2: France
Option 3: Russia
Option 4: Israel
Option 5: Germany
Answer: Option 3
Explanation: India has signed a $248 million defense deal with Russia to procure advanced 1,000 HP engines for T-72 battle tanks. These new engines will replace the existing 780 HP engines, significantly improving the tank’s performance. The agreement also includes a technology transfer component to facilitate manufacturing in India. This deal strengthens India-Russia defense cooperation despite India’s ongoing diversification of arms imports.
Question 2: What is the primary reason for India’s growing concerns about Bangladesh’s recent decision?
Option 1: Bangladesh’s increasing defense ties with China
Option 2: Bangladesh’s release of individuals linked to radical groups
Option 3: Bangladesh’s economic policies affecting Indian trade
Option 4: Disputes over Teesta River water-sharing agreement
Option 5: Growing influence of Western countries in Bangladesh
Answer: Option 2
Explanation: India has expressed concerns over Bangladesh’s recent decision to release individuals associated with radical groups. New Delhi has urged Dhaka to ensure the protection of minorities and maintain regional stability, as extremism in Bangladesh could have security implications for India, especially in border regions.
Question 3: Which financial strategy have Indian companies increased due to currency fluctuations and lower hedging costs?
Option 1: Investing in foreign assets
Option 2: Long-term foreign exchange (FX) hedging
Option 3: Gold reserves accumulation
Option 4: Increasing cash holdings in US dollars
Option 5: Raising interest rates on domestic loans
Answer: Option 2
Explanation: Indian companies have ramped up long-term FX hedging to protect themselves from currency fluctuations. Lower hedging costs and market instability have encouraged firms to secure their positions through forward dollar purchases. This helps mitigate risks arising from exchange rate volatility.
Question 4: The U.S. Commerce Secretary has urged India to reduce which of the following to facilitate stronger trade ties?
Option 1: Foreign Direct Investment (FDI) norms
Option 2: Trade barriers on digital services
Option 3: High tariff rates
Option 4: Import bans on specific goods
Option 5: Export subsidies on agricultural products
Answer: Option 3
Explanation: U.S. Commerce Secretary Howard Lutnick has called for India to reduce its high tariff rates, which he identified as a key barrier to deeper economic engagement. He emphasized that lowering tariffs could potentially boost U.S.-India trade to $500 billion.
Question 5: What major transparency initiative has SEBI announced to improve governance?
Option 1: Mandatory quarterly audits for all listed companies
Option 2: Public disclosure of board members’ conflicts of interest
Option 3: Stricter penalties for insider trading
Option 4: Removal of foreign investment restrictions
Option 5: Introduction of AI-based monitoring for stock manipulation
Answer: Option 2
Explanation: The Securities and Exchange Board of India (SEBI) has decided to publicly disclose potential conflicts of interest among its board members. This move aims to enhance transparency and investor confidence in India’s financial markets.
Question 6: Which currency movement has been observed in the Indian Rupee recently?
Option 1: Sharp appreciation against the US Dollar
Option 2: Stabilization at a record high
Option 3: Weakening beyond the 87 per USD mark
Option 4: Strengthening to 85 per USD
Option 5: Pegging to the Euro
Answer: Option 3
Explanation: The Indian Rupee has crossed the 87 per USD mark due to rising demand for dollars from importers and concerns over U.S. tariff policies. This movement reflects the ongoing volatility in currency markets.
Question 7: The technology transfer in India’s deal with Russia for tank engines will benefit which Indian company?
Option 1: Bharat Dynamics Limited
Option 2: Armoured Vehicles Nigam Ltd
Option 3: Hindustan Aeronautics Limited
Option 4: Bharat Forge Limited
Option 5: Tata Advanced Systems
Answer: Option 2
Explanation: The technology transfer under this defense deal will benefit Armoured Vehicles Nigam Ltd (AVNL), allowing India to manufacture these advanced engines domestically and reduce dependency on foreign suppliers.
Question 8: What is one of the key reasons for foreign investors withdrawing $27 billion from Indian markets?
Option 1: Political instability in India
Option 2: High inflation rates
Option 3: Rising interest rates in the U.S.
Option 4: India’s weakening economic growth
Option 5: Increase in corporate tax rates
Answer: Option 3
Explanation: Foreign investors have pulled out $27 billion from Indian markets, largely due to rising interest rates in the U.S., which make American assets more attractive compared to emerging markets like India.
Question 9: What recent economic policy change is the U.S. considering that could affect India’s exports?
Option 1: Increasing import duties on Indian goods
Option 2: Lowering taxes on U.S. companies investing in India
Option 3: Offering tax exemptions for Indian IT firms
Option 4: Banning certain categories of Indian exports
Option 5: Imposing stricter labor standards on Indian imports
Answer: Option 1
Explanation: The U.S. is considering imposing “reciprocal tariffs” on Indian exports, which could impact India’s trade balance. This move is part of a broader strategy to address what the U.S. sees as India’s high tariff rates on American products.
Question 10: Which Indian minister recently visited the U.S. for trade negotiations?
Option 1: Nirmala Sitharaman
Option 2: Rajnath Singh
Option 3: Piyush Goyal
Option 4: S. Jaishankar
Option 5: Dharmendra Pradhan
Answer: Option 3
Explanation: Indian Trade Minister Piyush Goyal visited the U.S. to discuss trade-related issues, particularly regarding tariff reductions and easing trade barriers between the two nations.
Question 11: What key factor led to an increase in long-term FX hedging by Indian companies?
Option 1: Strengthening of the Indian Rupee
Option 2: Increased RBI intervention in currency markets
Option 3: Lower hedging costs and rupee volatility
Option 4: High demand for U.S. dollar loans
Option 5: Introduction of digital currency by RBI
Answer: Option 3
Explanation: Indian companies have significantly increased long-term FX hedging due to lower hedging costs and heightened rupee volatility. The depreciation of the rupee from 84 to 88 per USD over four months has made it necessary for firms to secure their balance sheets against currency fluctuations.
Question 12: Which major global event has impacted India’s defense procurement strategy?
Option 1: Russia-Ukraine War
Option 2: China’s economic slowdown
Option 3: U.S.-China trade war
Option 4: Israel-Palestine conflict
Option 5: Brexit trade policies
Answer: Option 1
Explanation: The Russia-Ukraine War has affected India’s defense procurement strategy by causing delays and supply chain disruptions in Russian arms deliveries. As a result, India has been exploring alternative suppliers, including Western defense manufacturers.
Question 13: What new policy has SEBI implemented to improve the ease of foreign investments?
Option 1: Complete removal of FDI limits in stock markets
Option 2: Reduction in capital gains tax for foreign investors
Option 3: Simplification of Know Your Customer (KYC) norms
Option 4: Implementation of blockchain-based stock transactions
Option 5: Expansion of automatic investment approval routes
Answer: Option 3
Explanation: SEBI has introduced simplified Know Your Customer (KYC) norms to make it easier for foreign investors to participate in the Indian stock market. This move aims to attract more global capital and improve market liquidity.
Question 14: What was a key driver behind the U.S. stock market selloff that affected Indian markets?
Option 1: Rising U.S. interest rates
Option 2: Introduction of stricter U.S. labor laws
Option 3: New reciprocal tariffs announced by President Trump
Option 4: Collapse of major U.S. hedge funds
Option 5: Surge in oil prices
Answer: Option 3
Explanation: The U.S. stock market saw a selloff due to new reciprocal tariffs announced by President Trump, which created uncertainty in global markets. This also led to foreign investors pulling out of Indian equities, affecting market sentiment.
Question 15: What major global trade target has India and the U.S. set for their bilateral trade by 2030?
Option 1: $300 billion
Option 2: $400 billion
Option 3: $500 billion
Option 4: $600 billion
Option 5: $700 billion
Answer: Option 3
Explanation: India and the U.S. have set a target of increasing bilateral trade to $500 billion by 2030. This goal reflects their efforts to expand economic cooperation and reduce trade barriers between the two countries.
Question 16: Which Indian regulatory body oversees foreign exchange hedging practices?
Option 1: SEBI
Option 2: RBI
Option 3: IRDAI
Option 4: NITI Aayog
Option 5: Ministry of Finance
Answer: Option 2
Explanation: The Reserve Bank of India (RBI) is responsible for regulating foreign exchange hedging practices. It ensures that companies use appropriate risk management tools to protect themselves from currency fluctuations.
Question 17: What was the key reason behind India’s decision to upgrade its T-72 battle tanks?
Option 1: Obsolescence of current engines
Option 2: Requirement from NATO for joint operations
Option 3: Rising tensions with China along the LAC
Option 4: India’s plan to sell tanks to foreign allies
Option 5: Shift towards a fully indigenous defense industry
Answer: Option 1
Explanation: India decided to upgrade its T-72 battle tanks because their current 780 HP engines are becoming obsolete. The new 1,000 HP engines will enhance the mobility and combat effectiveness of these tanks, keeping them relevant for modern warfare.
Question 18: Why did Indian markets witness foreign investor outflows worth $27 billion?
Option 1: Increased inflation in India
Option 2: Rising U.S. interest rates making U.S. assets more attractive
Option 3: Government-imposed restrictions on foreign investment
Option 4: Strengthening of the Indian rupee
Option 5: SEBI’s stricter regulations on foreign fund flows
Answer: Option 2
Explanation: Rising U.S. interest rates have made American assets more attractive to investors, leading to capital outflows from Indian markets. Higher returns on U.S. bonds and equities have pulled foreign funds away from emerging markets like India.
Question 19: What specific economic challenge is India facing due to U.S. trade policies?
Option 1: Declining export growth due to higher U.S. tariffs
Option 2: Surge in imports from China
Option 3: Depreciation of the U.S. dollar against the rupee
Option 4: Decline in foreign direct investment from the U.S.
Option 5: Rising labor costs in Indian industries
Answer: Option 1
Explanation: India is facing challenges due to new reciprocal tariffs imposed by the U.S., which could make Indian exports less competitive in the American market. This is a significant concern as the U.S. is one of India’s largest trading partners.
Question 20: Which sector is expected to benefit most from India’s $248 million defense deal with Russia?
Option 1: Information Technology
Option 2: Renewable Energy
Option 3: Manufacturing
Option 4: Defense and Armaments
Option 5: Pharmaceuticals
Answer: Option 4
Explanation: The $248 million defense deal with Russia will directly benefit India’s defense and armaments sector. It will lead to the modernization of India’s battle tanks and support domestic manufacturing through technology transfer.
These 20 questions comprehensively cover current affairs across Politics, Economy, International Relations, Defense, and Financial Markets, ensuring aspirants are well-prepared for government exams.
