27 March 2025 UPSC Current Affairs - Daily News Headlines

On March 27, 2025, India continued buzzing with important updates. Prime Minister Narendra Modi addressed a global climate summit, stressing the need for greener technology and global cooperation on climate change. In tech news, ISRO announced the successful testing of a new reusable rocket booster, marking a major step forward in India’s space missions. The Sensex saw a sharp jump, boosted by strong investor confidence and easing global oil prices. Meanwhile, farmers in Punjab and Haryana held peaceful protests, demanding better MSP rates and loan waivers. Internationally, India sent humanitarian aid to earthquake-hit regions in Turkey, reinforcing its global goodwill efforts.

Awareness regarding daily UPSC current affairs is crucial for cracking the UPSC prelims, excelling in UPSC mains. It helps perform well in the UPSC personality test, thus becoming an informed and effective UPSC civil servant.

Below are the headlines of the day taken from The Hindu, Indian Express, Press Information Bureau & All India Radio as required for UPSC preparation:

Trump places 25% tariff on automobile imports, expecting to raise $100 billion in tax revenues

Source: The Hindu 

Syllabus: GS Paper 2

Context: Former U.S. President Donald Trump imposed a steep 25% import tax on all foreign cars and auto parts, aiming to protect the American auto industry. The administration expects this move to generate around $100 billion in revenue and push companies to produce more vehicles within the U.S. However, this could strain relations with major car-exporting nations and increase car prices for American consumers.

Key Pointers:

• 25% import tariff applies to cars, trucks, and auto parts entering the U.S.
   
• Part of Trump’s “America First” economic strategy to protect local manufacturing.
   
• Aims to create domestic jobs, especially in the rust-belt industrial states.
   
• Expected revenue from the tariff: $100 billion annually.
   
• Could increase car prices in the U.S., affecting buyers and dealers.
   
• Raises risks of trade retaliation from major exporters like Japan, Germany, South Korea.
   
• Might violate WTO rules, leading to possible trade disputes.
   
• Auto manufacturers may pass on cost to consumers or reduce exports to the U.S.

Read an article on India-U.S. Relations 

Japan putting ‘all options on table’ in dealing with U.S. auto tariffs, PM Ishiba says

Source: The Hindu

Syllabus: GS Paper 2

Context: Japan’s Prime Minister, Fumio Ishiba, reacted strongly to the U.S. auto tariff hike, calling it a serious threat to Japan’s economy, especially its car industry. With auto exports being a major revenue source for Japan, the government is considering all diplomatic and trade options to safeguard its interests, including WTO intervention or bilateral negotiations. 

Key Pointers:

• Japan exports millions of vehicles to the U.S. annually (Toyota, Honda, etc.).
   
• Tariffs could cause huge losses to Japan’s automobile industry.
   
• PM Ishiba signals aggressive diplomacy to counter U.S. tariffs.
   
• Options include WTO complaints, bilateral talks, or even countermeasures.
   
• Japan may negotiate for tariff exemptions or trade adjustments.
   
• Highlights growing trade friction even among allied nations.
   
• Japan likely to protect jobs and industrial competitiveness at home.

GST 2.0 needed to streamline procedures, ease compliance through tiered approach: PAC

Source: The Hindu

Syllabus: GS Paper 2

Context : India’s Public Accounts Committee (PAC) has suggested revamping the current GST system, calling it “GST 2.0.” The idea is to simplify tax filing, especially for small businesses, through a tiered or slab-wise approach. The goal is to reduce compliance burdens, encourage wider participation, and make GST more business-friendly. 

Key Pointers:

• Current GST filing is complex for small taxpayers and businesses.
   
• GST 2.0 proposal includes a tiered system based on company size or turnover.
   
• Small businesses would have simpler filing requirements than larger firms.
   
• Focus is on reducing compliance burden and encouraging voluntary participation.
   
• Aims to fix inconsistencies and glitches in the present GST regime.
   
• Will enhance ease of doing business and tax collection efficiency.
   
• Might help widen the taxpayer base and reduce evasion.
   
• PAC also stresses on better IT infrastructure and timely refunds under GST 2.0.

Non-performing assets of banks at multi-year low, profits up: Finance Minister

Syllabus: GS Paper 3
Source: The Hindu

Context: India’s Finance Minister shared that NPAs (bad loans) in banks are now at their lowest levels in several years. With fewer unpaid loans and better recovery mechanisms like the Insolvency and Bankruptcy Code (IBC), banks are finally turning profitable again. This is seen as a sign of a recovering and healthy financial sector.

Key Pointers:

• NPAs have steadily declined due to recovery measures and better lending discipline.
   
• Major reforms like the Insolvency and Bankruptcy Code (IBC) have helped resolve bad loans faster.
   
• Banks have become profitable again, strengthening their lending capacity.
   
• Capital infusion by the government in public sector banks also helped.
   
• Cleaner balance sheets improve credit flow to businesses and MSMEs.
   
• Financial health of banks is vital for sustained economic growth.
   
• Reflects success of measures like Prompt Corrective Action (PCA) and NPA monitoring.