Period Covered: August 1, 2025 – August 31, 2025
Report Focus: Employment Incentives, Macro-Economic Resilience, and Defence Modernisation.
Target Audience: Aspirants of UPSC CSE, SSC CGL, RBI Grade B, NABARD, and Defence Services Examinations.
Keywords: #PMVBRY #GDPGrowth #DefenceAcquisitions #WorldAthletics2025 #RepoRate
EXECUTIVE SUMMARY: THE AUGUST ACCELERATION
August 2025 served as a critical pivot point for the Indian economy and its strategic framework. The month was defined by the rollout of the PM Viksit Bharat Rozgar Yojana (PM-VBRY), a massive fiscal intervention aimed at formalizing employment for 3.5 crore youth. On the macroeconomic front, India demonstrated robust resilience with a 7.8% Real GDP growth in Q1 FY26, defying global slowdown trends. Strategic autonomy was reinforced as the Defence Acquisition Council (DAC) cleared proposals worth ₹67,000 crore, focusing on indigenous capabilities like the BrahMos Fire Control Systems. In the sporting arena, India hosted the inaugural Khelo India Water Sports Festival in Kashmir, while globally, the nation watched Neeraj Chopra at the World Athletics Championships in Tokyo.
SECTION 1: ECONOMY, BANKING & FINANCE
Domain: Economy | Relevance: GS-III, RBI Grade B, SSC CGL
1.1 GDP Growth Q1 FY26: A 7.8% Surge
Event Summary: The National Statistical Office (NSO) and the Ministry of Finance released data indicating that India’s Real GDP grew by 7.8% in the first quarter of FY 2025-26 (April-June), accelerating from 7.4% in the previous quarter.
Analytical Breakdown of Growth Drivers
| Sector/Component | Growth Rate / Contribution | Strategic Insight |
|---|---|---|
| Real GDP Growth | 7.8% | Fastest pace in seven quarters; driven by investment and private consumption. |
| GVA Growth | 7.4% | Indicates strong supply-side recovery. |
| Manufacturing | 7.0% | Boosted by PLI schemes and lower input costs. |
| Services | 7.2% | Led by financial, real estate, and professional services. |
| Construction | High Momentum | Reflects government capex thrust on infrastructure. |
| Agriculture | 3.1% | Moderate growth; supported by a normal monsoon forecast. |
- Investment Demand: Gross Fixed Capital Formation (GFCF) remained a key driver, reflecting sustained government capex and crowding-in of private investment.
- Private Consumption: Showed signs of revival, critical for sustaining the growth momentum beyond public spending.
1.2 Inflation Dynamics: CPI and Food Prices
Status: Headline Consumer Price Index (CPI) inflation edged up to 2.07% in August 2025, from an 8-year low of 1.6% in July.
- Food Inflation: The deflationary trend in food items moderated. Food inflation stood at (-) 0.69% (deflation), aiding the purchasing power of low-income households.
- Core Inflation: Remained stable at 4.16%, indicating that underlying demand pressures are contained but persistent.
- Key Contributors:
- Vegetables: Deflation persisted but narrowed to (-) 16%.
- Edible Oils: Prices remained elevated, prompting the government to amend the Vegetable Oil Products Production and Availability (Regulation) Order, 2025 effective August 1.
Static GK Connection:
Monetary Policy Committee (MPC): Mandated to keep inflation at 4% (+/- 2%). The current low inflation provides headroom for the RBI to maintain or cut rates to support growth.
1.3 RBI Monetary Policy (August 2025)
Decision: The Monetary Policy Committee (MPC) kept the Repo Rate unchanged at 5.50% during its August meeting. (Note: Rates were cut later in Dec; August stance was neutral to assess fiscal transmission).
- Stance: Neutral.
- Rationale: To balance the “twin objectives” of controlling inflation (which is currently low) and supporting the robust 7.8% growth trajectory amid global trade uncertainties (US tariffs).
- Policy Rates Breakdown (August 2025):
- Repo Rate: 5.50%
- Standing Deposit Facility (SDF): 5.25%
- Marginal Standing Facility (MSF): 5.75%
- Bank Rate: 5.75%
1.4 Foreign Trade & Balance of Payments
Export Performance:
- Merchandise Exports: Grew by 6.7% YoY in August 2025.
- Services Exports: Recorded a robust growth of 12.2% YoY.
- Trade Deficit: The total trade deficit (merchandise + services) narrowed significantly to USD 9.9 billion (a 54.6% reduction YoY), primarily due to the services surplus covering two-thirds of the merchandise deficit.
- Current Account Deficit (CAD): Declined to 0.2% of GDP in Q1 FY26 (from 0.9% in Q1 FY25), driven by high net invisible receipts and robust remittances ($35.3 billion inflow).
SECTION 2: GOVERNMENT SCHEMES & POLICIES
Domain: Welfare & Development | Relevance: GS-II, Essay
2.1 PM Viksit Bharat Rozgar Yojana (PM-VBRY)
Launch Date: August 1, 2025
Objective: To incentivize formal employment generation and support first-time employees.
| Feature | Details |
|---|---|
| Total Outlay | ₹99,446 Crore |
| Employment Target | Generation of 3.5 Crore jobs over 2 years. |
| Primary Beneficiaries | 1.92 Crore first-time employees entering the formal workforce. |
| Mechanism | Government to provide EPF (Employee Provident Fund) contribution incentives to employers for hiring new workers, reducing the cost of employment. |
Exam Relevance:
- Substitution Effect: Replaces/Expands upon the previous Aatmanirbhar Bharat Rojgar Yojana (ABRY).
- Fiscal Impact: Directly addresses the “jobless growth” critique by linking fiscal incentives to payroll additions.
2.2 Integrated Pension Scheme (IPS)
Implementation: August 1, 2025.
Aim: To reform the pension architecture by integrating various benefits to ensure wider social security coverage.
- UPS Linkage: This move is congruent with the **Unified Pension Scheme (UPS)** introduced earlier, which assures a pension of 50% of the average basic pay drawn over the last 12 months for central government employees with 25 years of service.
- Significance: Represents a middle path between the Old Pension Scheme (OPS – defined benefit) and the National Pension System (NPS – defined contribution).
2.3 Adi Karmayogi Abhiyan
Launched By: Ministry of Tribal Affairs (August 2025).
Venue: Dhar, Madhya Pradesh (associated with the launch of PM MITRA Park as well).
- Objective: To train tribal youth as “Adi Karmayogis” to act as catalysts for development in tribal regions.
- Adi Seva Parv: A fortnight-long campaign was launched to celebrate tribal pride and nation-building spirit.
2.4 MERITE Scheme Approval
Full Form: Multidisciplinary Education and Research Improvement in Technical Education.
Approval: Union Cabinet approved in August 2025.
- Goal: To improve technical education standards in line with NEP 2020, focusing on multidisciplinary research and innovation in engineering institutions.
SECTION 3: DEFENCE & SECURITY
Domain: Internal & External Security | Relevance: GS-III, CAPF
3.1 Defence Acquisition Council (DAC) Approvals
Event: On August 5, 2025, the DAC, chaired by Raksha Mantri Rajnath Singh, accorded Acceptance of Necessity (AoN) for capital acquisition proposals.
- Total Value: ₹67,000 Crore.
- Key Projects Approved:
- BrahMos Fire Control Systems: To enhance the precision strike capability of the Navy and Army.
- Night Sights for BMP-2: Modernization of the Boyevaya Mashina Pekhoty (BMP) infantry fighting vehicles to enable effective night fighting.
- Software Defined Radios (SDRs): For secure, jam-resistant communication across the three services.
3.2 Mission Sudarshan Chakra
Development: In August 2025, the government operationalized Mission Sudarshan Chakra.
- Focus: A comprehensive Counter-UAS (Unmanned Aircraft System) initiative.
- Target: To establish a multi-layered anti-drone grid along the western borders by 2035 to neutralize rogue drones used for drug trafficking and surveillance.
- Technology: Integration of “Hard Kill” (kinetic) and “Soft Kill” (jamming/spoofing) mechanisms.
3.3 Strategic Appointments
- Anish Dayal Singh: Appointed as Deputy National Security Advisor (Dy NSA) in August 2025. He brings expertise from his tenure as DG CRPF.
- Sonali Mishra: Made history as the first woman Director General of the Railway Protection Force (RPF).
- Sreedhara Sivakumar: Appointed Air Officer-in-Charge Administration (AOA) at Air Headquarters.
SECTION 4: SCIENCE, TECHNOLOGY & SPACE
Domain: S&T | Relevance: Prelims & GS-III
4.1 Space Sector Milestones
August 2025 was a busy month for space activities involving India and its partners.
| Date | Event / Mission | Significance |
|---|---|---|
| Aug 9, 2025 | Crew-10 Return | NASA’s SpaceX Crew-10 mission returned to Earth. |
| Aug 24, 2025 | CRS-33 Launch | SpaceX launched the 33rd Commercial Resupply Services mission to the ISS. |
| Aug 29, 2025 | CRS-23 Mission | Northrop Grumman Cygnus spacecraft launched to the ISS. |
| Aditya-L1 Data | Solar Observations | ISRO released new datasets on the Sun’s chromosphere and corona from the Aditya-L1 mission, aiding global space weather research. |
4.2 Indigenous Innovation: Bio-Bitumen
Achievement: Union Minister Nitin Gadkari inaugurated India’s first Bio-Bitumen-based National Highway section.
- Location: NH-44 in Mansar, Nagpur, Maharashtra.
- Technology: Bio-bitumen is derived from biomass (agricultural waste), reducing reliance on petroleum-based bitumen and lowering the carbon footprint of road construction.
4.3 AI & Cloud Seeding
Experiment: India’s first AI-enabled drone-based cloud seeding experiment was set up.
- Location: Jamwa Ramgarh Dam, Rajasthan.
- Purpose: To induce artificial rain using drones guided by AI algorithms that analyze cloud density and wind patterns for optimal seeding.
4.4 Garuda Drishti
Tool: Maharashtra Police launched “Garuda Drishti”.
- Function: A specialized social media monitoring and cyber intelligence tool designed to track radicalization, fake news, and cyber threats in real-time.
SECTION 5: ENVIRONMENT & ECOLOGY
Domain: Environment | Relevance: GS-III, Forest Service
5.1 International Solar Alliance (ISA) Expansion
New Member: Moldova became the 107th member of the ISA in August 2025.
- Significance: Highlights the growing influence of the India-led ISA in Eastern Europe and the global shift towards solar energy.
5.2 State Energy Efficiency Index (SEEI) 2024
Released By: Bureau of Energy Efficiency (BEE) in August 2025.
- Top Performers: Karnataka and Andhra Pradesh were categorized as “Front Runners” for their aggressive adoption of energy-efficient building codes and industrial practices.
- Objective: To track states’ progress in energy efficiency implementation under the EC Act, 2001.
5.3 Biodiversity Milestones
- Equator Initiative Award 2025: Won by the Bibi Fatima Women’s Self-Help Group (SHG).
- Reason: For their exemplary work in sustainable agriculture and biodiversity conservation in high-altitude regions (Ladakh).
- RE100 Initiative: Suzlon Group became the first Indian energy company to join RE100, committing to 100% renewable electricity usage across its operations.
- Vulture Conservation: India’s first dedicated Vulture Conservation Portal was launched by We Foundation India with Gauhati University, facilitating real-time tracking of vulture populations.
SECTION 6: SPORTS CURRENT AFFAIRS
Domain: Sports | Relevance: SSC, Railways, State Exams
6.1 Khelo India Water Sports Festival 2025
Event: The inaugural edition was held from August 21–23, 2025.
- Venue: Dal Lake, Srinagar (J&K).
- Mascot: Himalayan Kingfisher.
- Medal Tally Leader: Madhya Pradesh topped the chart with 18 medals (10 Gold), followed by Odisha and Kerala.
- Discipline: Focused on Kayaking and Canoeing to promote water sports in the Kashmir valley.
6.2 134th Durand Cup
Winner: NorthEast United FC (NEUFC).
- Context: This is Asia’s oldest football tournament. NEUFC’s victory marks a significant rise for football in the North East region.
6.3 World Athletics Championships 2025 (Tokyo)
Performance:
- Neeraj Chopra: The ace javelin thrower finished 8th in the finals in Tokyo. Despite a season-best throw of over 90m earlier in Doha, he could not replicate the podium finish in Tokyo.
- Significance: The championship highlighted the intense global competition in javelin, with multiple athletes breaching the 88m mark.
6.4 ICC Women’s Cricket World Cup 2025
Host: India.
- Timeline: August–September 2025.
- Context: A major event boosting the profile of women’s cricket, with matches held across coastal and inland venues to manage monsoon challenges.
SECTION 7: APPOINTMENTS & PERSONS IN NEWS
Domain: Appointments | Relevance: Banking, SSC
| Person | New Role / Achievement | Key Fact |
|---|---|---|
| T.C.A. Kalyani | Controller General of Accounts (CGA) | 29th CGA of India (Aug/Sept 2025). |
| Urjit Patel | Executive Director, IMF | Former RBI Governor appointed to the IMF Board. |
| A. Rajarajan | Director, VSSC | Appointed Director of Vikram Sarabhai Space Centre. |
| Mohamed Salah | PFA Player of the Year | First man to win the award three times. |
SECTION 8: IMPORTANT DAYS (AUGUST 2025)
Domain: General Awareness | Relevance: All Exams
- August 7: National Handloom Day. Theme: “Sustainable Fashion”.
- August 9: Quit India Movement Day & International Day of World’s Indigenous Peoples.
- August 10: World Lion Day. Celebrated grandly in Saurashtra, Gujarat.
- August 12: International Youth Day & World Elephant Day.
- August 23: National Space Day (Commemorating Chandrayaan-3).
- August 29: National Sports Day. Birth anniversary of Major Dhyan Chand.
SECTION 9: STATES IN NEWS
Domain: Regional Affairs | Relevance: State PSCs
- Madhya Pradesh:
- Launch of PM MITRA Park in Dhar.
- Satnavri village chosen as India’s first ‘smart intelligent village’.
- Karnataka:
- SAP Labs India inaugurated its new Innovation Park in Bengaluru.
- Assam:
- Cabinet approved ‘Eti Koli Duti Paat’ scheme for tea garden workers’ welfare.
RAPID FIRE REVISION QUIZ: AUGUST 2025
Q1. Which state topped the medal tally at the inaugural Khelo India Water Sports Festival 2025?
A. Kerala
B. Odisha
C. Madhya Pradesh
D. Jammu & Kashmir
Ans: (C) Madhya Pradesh
Q2. What is the total outlay of the PM Viksit Bharat Rozgar Yojana (PM-VBRY) launched in August 2025?
A. ₹75,000 Crore
B. ₹99,446 Crore
C. ₹1.5 Lakh Crore
D. ₹50,000 Crore
Ans: (B) ₹99,446 Crore
Q3. Who was appointed as the 29th Controller General of Accounts (CGA) in August 2025?
A. S.S. Dubey
B. T.C.A. Kalyani
C. Soma Mondal
D. Girish Chandra Murmu
Ans: (B) T.C.A. Kalyani
Q4. Which country became the 107th member of the International Solar Alliance (ISA) in August 2025?
A. Ukraine
B. Moldova
C. Chile
D. Panama
Ans: (B) Moldova
Q5. The “Garuda Drishti” tool launched by Maharashtra Police is related to:
A. Traffic Management
B. Disaster Relief
C. Social Media Monitoring & Cyber Intelligence
D. Drone Surveillance
Ans: (C) Social Media Monitoring & Cyber Intelligence
Q6. India’s Real GDP growth for Q1 FY 2025-26 stood at:
A. 6.7%
B. 7.4%
C. 7.8%
D. 8.2%
Ans: (C) 7.8%
Disclaimer: This content is based on the provided source material simulating a future scenario (August 2025). Specific figures (like GDP 7.8%) are derived from the dataset and may differ from real-world future outcomes.
