Gold price outlook: MCX gold rate may hit ₹94,000 level as Israel-Iran ceasefire, trade talks dent safe-haven demand
MCX gold rate for August futures ended lower by ₹ 1,563, or 1.61%, at ₹ 95,524 per 10 grams. During the session, gold prices hit a low of 94,951, falling by ₹ 2,136, or 2.2%, from its previous close of ₹ 97,087. For the week, MCX gold price slumped 3.61%.
MCX silver prices for September futures also declined. The white metal ended down by ₹ 1,468, or 1.36%, at ₹ 1,06,429 per kg. It touched a low of ₹ 1,05,380 during the session.
In the international market, comex gold fell over 1.5% to trade below $3,270 per ounce, marking a second straight weekly loss and a nearly 3% decline for the week.
'The slide in gold prices comes as geopolitical risks ease and global trade optimism strengthens, dampening safe-haven appetite. A tentative ceasefire between Israel and Iran held firm, while US Commerce Secretary Howard Lutnick indicated trade frameworks with China and others are nearing completion — fueling risk-on sentiment in markets,' said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Meanwhile, the US dollar dropped over 1.5% to below 97.3, its lowest since February 2022, weighed down by rising expectations of interest rate cuts following US Federal Reserve Chair Jerome Powell's dovish congressional testimony.
Gold price next week will be influenced by a slew of factors, including economic data release in the US and European region.
'Key focal points for the coming week include, the progress in US trade talks ahead of the July 9 tariff decision deadline, the ECB Central Bank Forum, with comments expected from top officials including Chair Powell, and US macro data such as Nonfarm Payrolls, ISM Manufacturing & Services PMIs, and trade figures,' Trivedi noted.
Gold price is expected to remain under pressure with a bearish bias, according to Jigar Trivedi.
'Comex gold has key support at $3,230 – $3,200 per ounce, while resistance is placed at $3,350 level. MCX gold price for August futures is expected to decline towards ₹ 94,800 – ₹ 94,000 per 10 grams as momentum remains weak,' Trivedi said.
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Indian Express
4 hours ago
- Indian Express
Daily subject-wise quiz : International Relations MCQs on ‘Axis of Resistance', EU, Equator Prize 2025 and more (Week 123)
UPSC Essentials brings to you its initiative of subject-wise quizzes. These quizzes are designed to help you revise some of the most important topics from the static part of the syllabus. Attempt today's subject quiz on International Relations to check your progress. 🚨 Click Here to read the UPSC Essentials magazine for July 2025. Share your views and suggestions in the comment box or at Which of the following European countries is/are not a part of the European Union? 1. Liechtenstein 2. Germany 3. Switzerland 4. France 5. Norway Select the correct answer using the codes given below: (a) 1 and 3 only (b) 2 and 4 only (c) 5 only (d) 1, 3 and 5 Explanation — In a bid to soften the impact of steep US tariffs on Indian exports, the Commerce and Industry Ministry is pushing for export diversification and has fast-tracked EU trade negotiations by holding monthly talks with the 27-member bloc, a government official said. — This is significant since the EU is among India's largest export destinations. Duty elimination under a trade deal for goods such as textiles, footwear, and gems and jewellery could boost India's labour-intensive sectors and help offset export declines to the US due to high tariffs and expected demand slowdowns. — The EU countries are: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden. — Several European countries are not part of the EU. These include Iceland, Norway, Switzerland, Liechtenstein, Monaco, San Marino, the Vatican City, and Andorra. Furthermore, Brexit has resulted in the United Kingdom's departure from the EU. Therefore, option (d) is the correct answer. With reference to the Equator Prize 2025, consider the following statements: 1. It is announced by UNICEF every year. 2. It is presented to honour nature-based solutions led by Indigenous Peoples and local communities that promote sustainable development and ecological resilience. 3. There is no winner from India in 2025. How many of the statements given above are correct? (a) Only one (b) Only two (c) All three (d) None Explanation — On the International Day of the World's Indigenous Peoples, the United Nations Development Programme (UNDP), through its Equator Initiative, proudly announces the ten winners of the Equator Prize 2025. Hence, statement 1 is not correct. — This renowned award is given each year to recognise nature-based solutions driven by Indigenous Peoples and local communities that promote sustainable development and ecological resilience. Hence, statement 2 is correct. — This year's winners, from Argentina, Brazil, Ecuador, India, Indonesia, Kenya, Papua New Guinea, Peru, and Tanzania, demonstrate the potential of nature-based solutions spearheaded by people on the front lines of climate change. — From India, the Bibifathima Swa Sahaya Sangha (Bibifathima Self Help Group) is a women-led initiative that assists over 5,000 farmers in 30 villages through millet-based multi-cropping, seed banks, and solar-powered processing. Hence, statement 3 is not correct. Therefore, option (a) is the correct answer. (Source: According to a new assessment conducted by the Food and Agriculture Organisation of the United Nations (FAO) and the United Nations Satellite Centre (UNOSAT) through satellite, which of the following regions has 98.5 per cent of cropland that is either damaged or inaccessible? (a) South Sudan (b) Southern Ukraine (c) Eretria (d) Gaza Strip Explanation — As famine looms in the Gaza Strip, a new assessment conducted by the Food and Agriculture Organization of the United Nations (FAO) and the United Nations Satellite Centre (UNOSAT) through satellite imagery reveals a staggering reality: 98.5 percent of cropland in the Gaza Strip is either damaged, inaccessible, or both. — This means that only 1.5 percent of Gaza's agriculture, or 232 hectares, is currently accessible for cultivation, down from 4.6 percent (688 hectares) in April 2025, in a region with over 2 million inhabitants. — The combination of extremely limited cropland availability, the impact of an ongoing conflict, severe restrictions on the delivery and distribution of humanitarian aid, and widespread destruction of critical infrastructure – including irrigation systems, roads, equipment, storage facilities, and markets – has resulted in catastrophic food security conditions throughout Gaza. Therefore, option (d) is the correct answer. (Source: Which of the following countries, in collaboration with the Food and Agriculture Organisation (FAO), has launched a new initiative to improve food security, boost rural livelihoods, and help Afghan communities better withstand climate and economic shocks? (a) United Kingdom (b) United States (c) Russia (d) India Explanation — The Food and Agriculture Organisation of the United Nations (FAO) and the UK government have announced a new effort to promote food security, boost rural livelihoods, and assist Afghan people in better coping with climate and economic shocks. — Over the next ten months, the FAO's Resilient Agriculture Livelihoods (ReAL) project will impact over 151 000 people (21 572 households) in 15 provinces across Afghanistan's eight regions. The project will prioritise small-scale farmers, livestock keepers, and landless labourers, with a special focus on widows and women-headed households. — The project is generously sponsored by the UK as part of the 'Promoting Resilient and Equitable Recovery of Agriculture and Livelihoods in Afghan Communities' (PREVALE) program. Therefore, option (a) is the correct answer. (Source: The 'Scarborough Shoal' was recently in the news. It is a disputed territory primarily between: (a) China and Vietnam (b) China and the Philippines (c) Malaysia and Indonesia (d) Indonesia and Brunei Explanation — China's military said it monitored and 'drove away' a U.S. destroyer that sailed near the disputed Scarborough Shoal in the busy waterway of the South China Sea, while the U.S. Navy said its action was in line with international law. — The first documented US military operation in at least six years within the shoal's waters occurred the day after the Philippines accused Chinese boats of 'dangerous manoeuvres and unlawful interference' during a supply mission around the atoll. — Scarborough Shoal is a disputed region, principally between China and the Philippines. The shoal is situated in the South China Sea and is claimed by both countries. Therefore, option (b) is the correct answer. Consider the following international organisations/forum 1. Shanghai Cooperation Organisation 2. Quadrilateral Security Dialogue 3. Asia-Pacific Economic Cooperation 4. Organisation for Economic Co-operation and Development Which of the above groupings include India as a member? (a) 1 and 2 only (b) 1, 2 and 3 only (c) 2 and 4 only (d) 1, 2, 3 and 4 Explanation — Prime Minister Narendra Modi was likely to attend the Shanghai Cooperation Organisation (SCO) leaders' meet in Tianjin, China. The grouping includes nine member nations, including India, China, Pakistan and Russia. — Scholars in China have also questioned India's commitments in both the SCO and BRICS (including Brazil, Russia, India, China and South Africa), stating that PM Modi attended just three of the last ten SCO leaders' meetings. — They have also pointed to the June meeting in Qingdao for the SCO Defence Ministers, where Indian Defence Minister Rajnath Singh accused Pakistan of supporting cross-border terrorism, and refused to sign the SCO joint statement. — India being a member of the SCO and the US-led QUAD security dialogue (with Australia and Japan). — India is not a part of Asia-Pacific Economic Cooperation and Organisation for Economic Co-operation and Development. Therefore, option (a) is the correct answer. Operation 'Midnight Hammer' is: (a) a covert Russian operation during the Cold War to tunnel under Alaska. (b) a joint military offensive by Brazil and Argentina during the Falklands War. (c) a cyberwarfare campaign by Israel during the war with Iran. (d) a United States led attack on nuclear facilities in Iran. Explanation — 'Operation Midnight Hammer' is the codename given to the US's precision strikes on three of Iran's nuclear facilities, which marked a dramatic escalation in the Middle East and plunged US-Iran relations to their lowest point since the Iranian Revolution. — The covert operation involved over 125 aircraft and deception tactics, and the fleet included seven B-2 stealth bombers, the press briefing revealed. The US strike targeted three of Iran's most sensitive nuclear facilities — Fordow, Natanz, and Isfahan. Therefore, option (d) is the correct answer. Consider the following pairs: 1. 'axis of evil' — refers to Iran, Iraq and North Korea 2. 'axis of resistance' — refers to a coalition of Iranian-backed groups Which of the above given pairs is/are correctly matched? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Explanation — A coalition of Iranian-backed groups is known as the 'axis of resistance'. Hezbollah, Hamas, the Palestinian Islamic Jihad (PIJ), and the Houthis are some of the major groups in the alliance. — The roots of the 'axis of resistance' go back to the Iranian Revolution of 1979, which paved the way for radical Shia Muslim clerics to come to power. To expand its political and military influence in a region where most powers — such as US-ally Saudi Arabia — are Sunni-majority nations, Iran's new regime began to support non-state actors. Another reason for this was to deter threats from Israel and the US — Iran has seen Israel's creation in 1948 as a means for the US (and the West) to influence the region for its strategic interests. — The coalition's name is said to be inspired by former US President George W Bush's use of the term 'axis of evil' — referring to Iran, Iraq and North Korea — in his 2002 State of the Union address. Therefore, option (c) is the correct answer. Daily Subject-wise quiz — History, Culture, and Social Issues (Week 121) Daily subject-wise quiz — Polity and Governance (Week 123) Daily subject-wise quiz — Science and Technology (Week 123) Daily subject-wise quiz — Economy (Week 123) Daily subject-wise quiz — Environment and Geography (Week 123) Daily subject-wise quiz – International Relations (Week 122) Subscribe to our UPSC newsletter and stay updated with the news cues from the past week. 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Business Standard
4 hours ago
- Business Standard
Gold prices may see consolidation next week as focus shifts to Fed, US data
Gold prices are likely to witness a phase of consolidation in the coming week as traders weigh a mix of global economic indicators, cues from central banks and shifting geopolitical dynamics, analysts said. Traders will monitor US housing numbers, consumer price data from the UK and Eurozone, and provisional PMI releases from key economies. Also, investors will closely track European Central Bank's President Christine Lagarde speech as well as commentary by Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium, which will provide further insights for the broader trajectory of the bullion prices, they added. "Gold prices are likely to see some consolidation/correction in the coming week as focus now remains on the incoming US macroeconomic data and the Federal Reserve's meeting next month with interest rate cuts in focus. "In the week ahead the focus will be on US housing data, CPI numbers from the UK and the Euro zone and the provisional data on manufacturing/ services PMI from across regions," Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services, said. Pranav Mer noted that safe-haven demand has eased after Washington and Beijing agreed to extend trade negotiations for another 90-days. Meanwhile, US-Russia talks to end war in Ukraine had some progress but ended without any conclusion. According to Mer, weaker US macroeconomic data have highlighted a slowdown in the economic activity, but a firm producer and import price data have kept inflation concerns alive, leaving Fed officials divided on the timing of interest rate cuts. Last week, the most traded gold futures for October contract declined by ₹1,648 per 10 grams or nearly 2 per cent on the Multi Commodity Exchange (MCX). Prathamesh Mallya, DVP-Research, Non-Agri Commodities and Currencies at Angel One, said gold prices retreated last week as futures on the MCX slipped nearly 2 per cent. He added that "prices declined from highs of ₹1,02,000 to lows of ₹1,00,000 per 10 grams after US President Donald Trump clarified that gold imports into the US would not face tariffs, in turn threatening the upside momentum of the precious metal". Going forward, Mallya added, developments from US-Russia discussions will be critical. "If not, the possibility of increased tariffs on India will dent the macros and in turn lift gold prices in the week ahead," he added. On Saturday, Comex gold futures for December contracts ended lower at $3,382.60 per ounce in New York. Manav Modi, Analyst - Precious Metal Research, Motilal Oswal Financial Services, said gold prices lost ground last week as safe-haven demand eased amid shifting geopolitical and economic developments. The White House clarified that reports of US tariffs on Swiss gold were inaccurate, reversing a brief price rally that had been driven by confusion following a Customs and Border Protection note. At the same time, optimism surrounding a potential ceasefire in Ukraine gained traction, particularly after a high-profile meeting between US President Trump and his Russian counterpart Vladimir Putin in Alaska. Also, the extension of the US-China tariff truce signalled easing trade tensions further capping demand for gold as a safe-haven asset. On the supportive side, Modi said a weaker dollar and rising expectations of a US rate cut in September provided a cushion. "Soft inflation data spurred dovish bets and Treasury Secretary Bessent hinted at a deeper 50-basis-points reduction. Modi also stated that physical gold demand in Asia, usually a seasonal driver, remained subdued due to elevated prices. Investors are turning their focus on preliminary US PMI data and Fed Chair Powell's upcoming speech at the Jackson Hole Symposium and the broader trajectory of Washington-Moscow discussions, he added. Overall, the near-term outlook for gold will hinge on how incoming data and central bank commentary shape market sentiment, analysts said.
Indian Express
4 hours ago
- Indian Express
UPSC Key: Alaska summit, GST reforms and Eco-sensitive Western Ghats
Important topics and their relevance in UPSC CSE exam for August 17, 2025. If you missed the August 16, 2025, UPSC CSE exam key from the Indian Express, read it here. Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-II: Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests. What's the ongoing story: U.S. President Donald Trump said on Saturday that Ukraine should make a deal to end the war with Russia because 'Russia is a very big power, and they're not', after a summit where Vladimir Putin was reported to have demanded more Ukrainian land. Key Points to Ponder: — Know about the Russia-Ukraine war and its impact. — Read about Alaska. — What is the geopolitical significance of the Alaska summit? — What is the history of India's bilateral relations with Russia and the US? — What are the areas of cooperation between India and Russia? — What are the areas of cooperation between India and the US? — What is India's stand in the Russia-Ukraine war? — Map work: Locate Alaska, Ukraine, Russia and other places in the news in the context of the Russia-Ukraine war on map. Key Takeaways: — In a subsequent briefing with Ukrainian President Volodymyr Zelenskyy, a source familiar with the discussion cited Trump as saying the Russian leader had offered to freeze most front lines if Kyiv's forces ceded all of Donetsk, the industrial region that is one of Moscow's main targets. — Zelenskyy rejected the demand, the source said. Russia already controls a fifth of Ukraine, including about three-quarters of Donetsk province, which it first entered in also said he had agreed with Putin that a peace deal should be sought without the prior ceasefire that Ukraine and its European allies, until now with US support, have demanded. — Zelenskyy said he would meet Trump in Washington on Monday, while Kyiv's European allies welcomed Trump's efforts but vowed to back Ukraine and tighten sanctions on Russia. The source said European leaders had also been invited to those talks. From Economy Page- 'No deal or ceasefire: What the 'failed' Trump-Putin Alaska summit could mean for India' — US President Donald Trump's push for a ceasefire in Ukraine did not yield results, with Russian President Vladimir Putin clearly not yielding. — The apparent failure of the talks may come as a relief for Ukrainian and European leaders, who were worried that Trump would yield to Putin's demands and follow up on his earlier talk of swapping land. New Delhi too had one eye on America's frigid outpost over 15,000 kilometers away, to see if anything came out of the spectacle that could impact India's prospects. — There was some hope in India that if Trump and Putin reached a deal of some kind, that outcome would provide relief to New Delhi with respect to the secondary tariffs imposed on India. There was a belief here that the 25 per cent additional punitive tariff could possibly go away if the Trump administration believed that it was making some kind of progress with Putin on stopping the war. — That hope, although relatively diminished, may still be there to some extent as both Trump and Putin—while saying there was no deal yet—indicated some progress in the Alaska talks. New Delhi would still be hoping for the best-case scenario—rollback of the 25 per cent additional tariff, or at least the postponement of the August 27 deadline when the extra tariff is slated to take effect. Do You Know: — New Delhi has called the targeting of India over the purchase of Russian oil 'unjustified and unreasonable' and said these imports began as its traditional supplies were diverted to Europe, with the US having 'actively encouraged such imports by India for strengthening global energy markets stability'. — India has maintained over the years that as a country that depends on energy imports, it will buy oil from wherever it gets a good deal, as long as the oil is not under sanctions. To be sure, Russian oil is not under sanctions, and is only subject to a price cap imposed by the US and its allies that applies if Western shipping and insurance services are used for transporting the oil. Other Important Articles Covering the same topic: 📍Caught in the Trump-Putin game of chicken: India's Russian oil imports' future and options 📍An Expert Explains: Russia-Ukraine war Previous year UPSC Mains Question Covering similar theme: What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region. (UPSC CSE 2020) Syllabus: Preliminary Examination: Current events of national importance, Economic and Social Development, Indian Polity and Governance Mains Examination: General Studies-II, III: Powers, functions and responsibilities of various Constitutional Bodies. Indian Economy and issues relating to planning, mobilisation, of resources, growth, development, and employment. What's the ongoing story: The Group of Ministers (GoM) on Rate Rationalisation is set to meet in the coming week to discuss the proposal on next-generation GST reforms Prime Minister Narendra Modi announced on Friday. The GoM has ministers from six states: Kerala, Uttar Pradesh, Rajasthan, West Bengal, Bihar and Karnataka. Key Points to Ponder: — What is Goods and Services Tax (GST), and how does it work? — What are the different types of GST? (Thought Process: Know the differences between Central GST (CGST), State GST (SGST), Union Territory GST (UTGST) and Integrated GST (IGST). — What is the purpose of introducing GST? How is it an example of cooperative federalism? — GST Reforms – What do you know so far? — What is the GST Council? (Thought Process: Know the Key Provisions of Article 279A of the Constitution, the composition and role of the GST council) — What are the issues associated with the GST? — What does the term 'rate rationalisation' in the context of GST in India refer to? — How does the process of GST rate rationalisation align with the principle of cooperative federalism in India? Key Takeaways: — While the proposal was shared with the ministers from the six states a day before the PM's Independence Day address, the Department of Revenue in the Union Ministry of Finance will make a presentation to the GoM when it meets, sources said. — Sources in the Union Finance Ministry said they were confident the GoM and later the GST Council would find merit in the proposal. Internal calculations by the Department of Revenue in the Finance Ministry suggest that gross GST revenues under the proposed two-pillar rate structure of 5 per cent and 18 per cent will not be lower than what it is now. — Giving a broad idea of the proposal, sources said most of the products and services would be placed in either of the two rates — 5 per cent or 18 per cent. Goods and services used by the common man, or as inputs by farmers, small entrepreneurs and MSMEs, will attract the lower 5 per cent duty. This will reduce the tax burden and is expected to drive consumption. Most other goods and services will attract the 18 per cent rate, they said. — At present, there are multiple rate slabs — 5 per cent, 12 per cent, 18 per cent and 28 per cent — and a compensation cess ranging from 1 per cent to 290 per cent that is levied on sin and luxury goods such as cars, refrigerators, air conditioners, pan masala, tobacco and cigarettes. — With loans taken by the Centre to pay compensation cess to states getting recouped and fully repaid by November-December, the cess rates on goods are proposed to be subsumed at this special rate of 40 per cent, sources said. But on some goods like tobacco, the tax incidence is substantially higher than 40 per cent; the government is aware of this, and a separate mechanism may be arrived at in due course, the sources said. — Though there might be an initial impact on revenues, the gains from higher compliance and consumption are expected to offset the losses, they said. — Against a tight timeline, the Centre is learnt to have factored in at least three meetings of the GoM before a final proposal is put before the GST Council, the apex decision-making authority on aspects of the indirect tax regime that was introduced in 2017. Indications are that a rollout is being targeted well ahead of Diwali, since the industry needs time to reconcile to the new rate structure and any disruption ahead of the festive season would need to be avoided. — The Centre, sources said, is convinced of the buoyancy from the rate rationalisation taking care of the worries stemming from revenue loss, unlike an earlier attempt in 2018 when rate cuts did not result in revenue gains. Do You Know: — GST, the biggest indirect tax reform in recent years, came into force after the Constitutional (122nd Amendment) Bill was passed by both Houses of Parliament in 2016. More than 15 Indian states then ratified it in their state Assemblies, after which then-President Pranab Mukherjee gave his assent. — It came into effect in 2017 and was billed as an attempt to simplify the existing tax structure in India, where both the Centre and states levied multiple taxes, and to make it uniform. — The President set up the GST Council as a joint forum of the Centre and the states, under Article 279A (1) of the amended Constitution. It said that members of the Council include the Union Finance Minister (chairperson), and the Union Minister of State (Finance) from the Centre. Each state can nominate a minister in charge of finance or taxation or any other minister, as a member. — According to Article 279, the GST council is meant to 'make recommendations to the Union and the states on important issues related to GST, like the goods and services that may be subjected or exempted from GST, model GST Laws'. It also decides on various rate slabs of GST, whether they need to be modified for certain product categories, and so on. — The proposed rationalisation of GST rates and doing away with multiple rates will ease compliance and lower the tax burden on ordinary people. As the complexity of the GST structure has made its administration unwieldy. Other Important Articles Covering the same topic: 📍Explained: What is the GST Council, and what does it do? 📍Next-gen GST reforms by Diwali, says PM Modi; just two rates: 5% & 18% Previous year UPSC Prelims Question Covering similar theme: (1) What is/are the most likely advantages of implementing 'Goods and Services Tax (GST)'? (UPSC CSE 2017) 1. It will replace multiple taxes collected by multiple authorities and will thus create a single market in India. 2. It will drastically reduce the 'Current Account Deficit' of India and will enable it to increase its foreign exchange reserves. 3. It will enormously increase the growth and size of the economy of India and will enable it to overtake China in the near future. Select the correct answer using the code given below: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 Previous year UPSC Mains Question Covering similar theme: Enumerate the indirect taxes which have been subsumed in the goods and services tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017. (UPSC CSE 2017) Syllabus: Preliminary Examination: Indian Polity and Governance – Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues Mains Examination: General Studies-II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, separation of powers between various organs dispute redressal mechanisms and institutions. What's the ongoing story: Opposing the Supreme Court's decision to fix a timeline for the President and Governors to act on Bills forwarded by State Legislatures, the Centre has underlined the separation of powers between the executive, legislature and judiciary, and said the order has the potential to 'destabilise the constitutional balance between (the) organs of State'. It has emphasised that 'gubernatorial assent is a high prerogative, plenary, non-justiciable power'. Key Points to Ponder: — In Tamil Nadu v. Governor case, what specifically has the Supreme Court said about the president's and governor's power? — What is the doctrine of separation of powers? — What are the constitutional provisions with regard to the office of President and Governor? — Read about Articles 200 and 201. — What is Article 142? What are the limitations to Article 142? — Can the Supreme Court undermine the President's powers? — What are judicial encroachment and judicial overreach? — Administrative Reforms Commission of 1968, the Rajamanar Committee of 1969, the Sarkaria commission of 1988 and Punchhi Commission-What were their recommendations in the context of role of Governor? Key Takeaways: — In a written submission to the court on August 12 — a five-judge bench is hearing a reference made by the President on whether timelines can be fixed for the actions of the President or Governors — Solicitor General Tushar Mehta said the judiciary does not hold answers to all problems in a democracy, and 'if any organ is permitted to arrogate to itself the functions of another, the consequence would be a constitutional disorder not envisaged by (Constitution) framers.' — In April, a two-judge bench had set a timeline for Governors to act on pending Bills, and, for the first time, prescribed that the President should take a decision on the Bills reserved for consideration by the Governor within three months from the date on which such reference is received. In a reference to the Supreme Court in May, President Droupadi Murmu had posed 14 crucial questions on the verdict. — Mehta, in his submission, said though separation of powers is part of the constitutional framework, 'over the years, a certain degree of overlap and checks and balances or fusion of powers have come to form…in practical application.' Despite this, he said, 'there are certain zones which remain exclusive to either of the three organs…and cannot be trenched upon by the others. The high plenary positions of Governors and President fall within that zone. While they are political positions, they are also representations of democratic will.' — He said Governors 'are thus not to be treated as alien/ foreigner in the federating units of the Union. Governors are not just emissaries of the Centre, (but) rather representatives of the entire nation in each and every federating unit. They represent national interest and national democratic will in the States as part of the larger Indian constitutional brotherhood.' — Mehta said 'despite the expanding contours of judicial review, there are some zones like assent that remain non-justiciable. The classical notion of judicial review cannot be lifted and applied to assent as the factors at play during the grant or withholding of an assent have no legal or constitutional parallel.' — 'Each organ of the State in the Constitution has certain core functions, one organ interfering with the core functions of another would breach the separation of powers which is a fundamental feature of Indian Constitution.' he said. — 'Exercise of Article 142 is not a supervening judicial power which can override the constitutional provisions or run contrary to them. The apex court, even under Article 142, is bound by constitutional provisions and principles,' he said. Do You Know: — Article 163 of the Constitution deals with the powers of the Governor generally. Article 200 specifically deals with the issue of granting assent to Bills. Both provisions are read together to determine the contours of the Governor's power on this issue. — When a Bill passed by the legislature of a state is presented to the Governor, the Governor has four options: (1) grant assent to the Bill; (2) withhold assent to the Bill; (3) return the Bill for reconsideration; or (4) reserve the Bill for the consideration of the President. — Article 200 reads: 'When a Bill has been passed by the Legislative Assembly of a State or, in the case of a State having a Legislative Council, has been passed by both Houses… it shall be presented to the Governor and the Governor shall declare either that he assents to the Bill or that he withholds assent therefrom or that he reserves the Bill for the consideration of the President.' — Under Article 201 of the Constitution, the Governor has the power to reserve a Bill – passed by both Houses of the State Legislature – for the consideration of the President. — In its ruling, the apex court invoked its special power under Article 142 and called for a decision within three months and added, 'in case of any delay beyond this period, appropriate reasons would have to be recorded and conveyed' to the state concerned. Other Important Articles Covering the same topic: 📍Governor vs. State: Supreme Court draws the line 📍Knowledge Nugget: SC Verdict on TN Governor — Why it matters for UPSC Previous year UPSC Prelims Question Covering similar theme: (2) Which one of the following suggested that the Governor should be an eminent person from outside the State and should be a detached figure without intense political links or should not have taken part in politics in the recent past? (UPSC CSE 2019) (a) First Administrative Reforms Commission (1966) (b) Rajamannar Committee (1969) (c) Sarkaria Commission (1983) (d) National Commission to Review the Working of the Constitution (2000) (3) Which one of the following statements is correct? (UPSC CSE 2013) (a) In India, the same person cannot be appointed as Governor for two or more States at the same time (b) The Judges of the High Court of the States in India are appointed by the Governor of the State just as the Judges of the Supreme Court are appointed by the President (c) No procedure has been laid down in the Constitution of India for the removal of a Governor from his/her post (d) In the case of a Union Territory having a legislative setup, the Chief Minister is appointed by the Lt. Governor on the basis of majority support Syllabus: Preliminary Examination: Current events of national and international importance Mains Examination: General Studies-II: Bilateral, regional and global groupings and agreements involving India and/or affecting India's interests. What's the ongoing story: C. Raja Mohan writes- 'If India was counting on a clear and positive outcome from the Alaska summit to avert the additional 25 per cent US tariff on Indian exports, it will be disappointed by the inability of Donald Trump and Vladimir Putin to deliver last night.' Key Points to Ponder: — What is the significance of the Alaska summit for India? — What are tariffs? Why are tariffs imposed? — Why the U.S. imposition of a 25% tariff plus penalty against India represented a significant departure from prior U.S. trade strategy regarding tariff differentials. — What can be the implications of the higher tariff imposed by the US on India? — What strategies is India using to navigate potential trade negotiations with the U.S.? — What can be the implications of the reset of US-Russia ties for India? — Know about the status of India's relations with the US and Russia. Key Takeaways: — 'The unfinished US-Russian talks in Alaska leave a cloud of uncertainty over India's trade negotiations with Washington. On the upside, though, there was no breakdown of engagement, and the two leaders remain hopeful of an accommodation. As the details of the summit conversations come into public view, India will have to look beyond the tariff question at the implications of a potential reset in Russia's relations with the US and the West.' — 'At their joint press appearance, Putin spoke of the 'agreement' between the two leaders that 'will pave the path toward peace in Ukraine'. — 'While the initial assessments of the summit focused on the lack of an agreement on ceasefire in Ukraine, Trump and Putin appear to have elevated their ambitions to sketch out the terms of a broader peace deal. As Trump said in a social media post on Saturday, 'the best way to end the horrific war in Ukraine is to go directly to Peace Agreement' and not a mere pause or a ceasefire.' — 'Putin put special emphasis on improving bilateral ties with Washington. He noted that Russia and the US are neighbours across the Northern Pacific, evoked their wartime cooperation during the Second World War, and highlighted the potential for broad commercial and strategic engagement – including in the areas of high tech, outer space and Arctic.' — ' Delhi's immediate concern is centred on the punitive measures against India that Trump has inserted into his Ukraine strategy. As part of the effort to pressure Putin into accepting a peace deal, Washington announced an additional 25 per cent tariff on Indian exports — explicitly linked to Delhi's continued purchase of Russian oil.' — 'Since the 2022 invasion, India has become a major buyer of discounted Russian crude, a move that has improved its energy security but drawn sharp criticism from the West. The US administration argues that targeting India, among other large importers, will cut into Moscow's revenues and push it toward compromise in Ukraine.' — 'For now, Delhi must await greater clarity on the summit's outcome, the future trajectory of the Ukraine talks, and the next steps from the US and Europe. One conclusion though is hard to avoid: India's big turn to discounted Russian oil over the last three years has tied it, if indirectly and unwittingly, to the geopolitics of war and peace in Ukraine.' — 'The Modi government will hope that Washington and Moscow will arrive at a final agreement on how to deal with Ukraine, sooner than later, and Trump will discard the 25 per cent additional tariff. At the minimum, Delhi would want Trump, who continues to be optimistic about a breakthrough, to postpone the deadline of August 27 for implementing the additional tariffs against India.' Do You Know: — US President Donald Trump's announcement of a 25 per cent tariff on Indian imports, along with a penalty for procuring military equipment and energy from Russia, has key consequences. — One, it puts India at a disadvantage in comparison to competitors. Two, it put the onus back on the Indian side to fast-track its negotiations for an interim deal with the US. Indications are that the outer limit for a deal, currently pegged at around October from New Delhi's perspective, might need to be brought forward. Other Important Articles Covering the same topic: 📍Alaska Summit: Trump and Putin call for deeper economic ties despite 25% US tariff on India over Russian oil imports 📍The Alaska Report Card: First assessment of who won what, and how 📍UPSC Issue at a Glance | Tariff war: 4 Key Questions You Must Know for Prelims and Mains Syllabus: Preliminary Examination: Current events of national and international importance. Mains Examination: General Studies III: Awareness in the fields of IT, Space, Computers, robotics, nano-technology, biotechnology and issues relating to intellectual property rights. What's the ongoing story: The gigantic antenna reflector on earth observation satellite NISAR, a joint Isro-Nasa mission, has successfully 'bloomed' in space, marking a significant milestone in the satellite's deployment phase. Confirming the successful antenna deployment, Nasa said in a statement that the step-wise unfurling of the antenna reflector with a diameter of 39 feet was completed Friday. Key Points to Ponder: — Know about the NISAR mission in detail. — What is the significance of the NASA–ISRO collaborative model in the NISAR mission? — How does NISAR complement India's existing earth observation systems? — What are the advantages of dual frequency SAR (L band and S band) in studying Earth surface processes? — What are the geopolitical and scientific significance of the ISRO-NASA collaboration on NISAR? Key Takeaways: — NISAR (NASA-ISRO Synthetic Aperture Radar) is the first collaboration satellite of the Indian Space Research Organisation (ISRO) and the United State's National Aeronautics and Space Administration (NASA). NISAR is the most expensive earth observation satellite ever built, weighing over 2.8 tonnes and costing $1.3 billion. — ISRO launched NISAR on July 30 from the Satish Dhawan Space Centre in Andhra Pradesh's Sriharikota, and it was later successfully inserted into a sun-synchronous orbit. NISAR is the first-of-its-kind space mission, which will study the earth's solid, liquid and frozen landforms. It is designed to track even the smallest changes in ice sheets, glaciers, forest coverage, oceans, soil moisture, earthquakes, and volcanic activity. — NISAR is equipped with high-end dual radars that will be used to image the earth, once every twelve days. The onboard sophisticated radar systems form a combination of two synthetic aperture radar (SAR) systems: an L-band system and an S-band system, capable of peering through clouds and facilitating an all-weather imaging of the earth. — Both the ISRO and NASA teams are currently focusing on fine-tuning the antenna and other components of the satellite. — After the deployment of the antenna, NISAR will continue to remain in its calibration and testing phase. NISAR will remain under a 65-day engineering phase, during which the preliminary tests and calibration will be performed. On day 65 (tentatively early October), the first, full-frame scientific data will be taken and the science teams will check for its quality and other parameters. Do You Know: — NISAR will be the first satellite ever to observe the Earth in two frequencies — NASA's L-band and ISRO's S-band. Putting two radar systems on a single satellite is a unique engineering feat because the two systems require different sets of hardware, and yet have to function in a complementary fashion without interfering with one another. — This would mean that the satellite would be able to provide very high-resolution data, in all types of weather conditions, and both during the day and the night. The satellite is powerful enough to capture changes as small as one centimetre in size during its repeated observations over the same terrain. Other Important Articles Covering the same topic: 📍Knowledge Nugget | NISAR in focus: Why is this NASA-ISRO mission relevant for UPSC Exam UPSC Prelims Practice Question Covering similar theme: (4) With reference to the NISAR satellite, consider the following statements: 1. This satellite is developed by the Indian Space and Research Organisation in partnership with NASA. 2. It will measure the motion of the entire planet's land and ice-covered surface every 28 days. 3. The satellite will work only during the daytime. 4. The satellite will be able to predict earthquakes. How many of the statements given above are correct? (a) Only one (b) Only two (c) Only three (d) All four Syllabus: Preliminary Examination: General issues on Environmental Ecology, Biodiversity and Climate Change – that do not require subject specialisation. Mains Examination: General Studies-II, III: Government policies and interventions, Conservation, environmental pollution and degradation, environmental impact assessment. What's the ongoing story: The Environment Ministry's Forest Advisory Committee (FAC) has, for now, declined Stage-II or final approval for Hindalco Industries Ltd's bauxite mine in Maharashtra's Kolhapur, as it falls under the eco-sensitive areas (ESA) of the Western Ghats, according to the minutes of the FAC meeting. Key Points to Ponder: — Read about the Western Ghats. — What are eco-sensitive areas (ESA)? — What is the purpose of demarcating the ESAs? — What is the significance of ESAs in the context of wildlife conservation in India? — What is the Kasturirangan Committee Report? — Know the 2011 guidelines on eco-sensitive zones? — What are the challenges faced by states in implementing the ESZ guidelines?. Key Takeaways: — The committee also noted that no valid mine lease exists for the proposal as of now, and it is a part of a conservation reserve that was declared in March 2021. Elephants, Indian gaur, sambhar, deer, porcupine, leopard, and tiger 'are found in this patch', the ministry's regional office in Nagpur submitted to the FAC. — The mining project was granted in-principle forest approval in 2009 and environmental clearance from the Centre in January 2014. However, since the company had not obtained the Rights of Forest Resources certificate, it got delayed in seeking final approval for the forest diversion of about 16 hectares. The company has not commenced any mining activity yet on the lease. — The committee noted in the minutes of its July 30 meeting that it had a detailed discussion and deliberation with the deputy director general of forest, regional office, Nagpur and nodal officer, Government of Maharashtra, on the proposal. The FAC cited the issue of the mining lease validity, prohibition of mining proposed in the Western Ghats eco-sensitive areas, and the location of the mining lease in a conservation reserve as the reasons for not considering the proposal at this stage. — As per the Environment Ministry's 2024 draft notification on protection of Western Ghats, 'there shall be a complete ban on mining, quarrying and sand mining' in ESAs, and all existing mines have to be phased out from the date of final notification or on expiry of the mining lease. — In 2024, the Centre had issued a sixth iteration of a draft notification declaring 56,825.7 sq km of the Western Ghats as an ecologically sensitive area across the states of Gujarat, Maharashtra, Goa, Karnataka, Kerala and Tamil Nadu. Do You Know: — The Western Ghats are a 1,600-km-long mountain chain running the western coast of the country covering six states — Gujarat, Maharashtra, Goa, Tamil Nadu, Karnataka and Kerala. It has been accorded the World Heritage status by UNESCO. — In August 2012, then Environment Minister Jayanthi Natarajan constituted a High-Level Working Group on Western Ghats under former Indian Space Research Organization (ISRO) chief Dr K Kasturirangan. — While the Gadgil panel recommended 64 percent area in the Western Ghats, a report by a panel led by Dr K Kasturirangan notified only 37 percent of the area as ecologically sensitive. Other Important Articles Covering the same topic: 📍Western Ghats: States' submission on ESAs to Centre's committee based on old surveys Previous year UPSC Prelims Question Covering similar theme: (5) 'Gadgil Committee Report' and 'Kasturirangan Committee Report', sometimes seen in the news, are related to (UPSC CSE 2016) (a) constitutional reforms (b) Ganga Action Plan (c) linking of rivers (d) protection of Western Ghats ALSO IN NEWS Subscribe to our UPSC newsletter. 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