Top Current Affairs for Competitive Exams: May 2025, Week 1

Stay ahead with the latest current affairs for May 2025 to ace competitive exams like UPSC, SSC, and Banking. This week’s updates cover critical topics, from India’s retail inflation drop to the Waqf Amendment Act 2025, offering key insights for exam preparation. Dive into these essential updates to boost your general knowledge.

India’s Retail Inflation Hits Six-Year Low

In March 2025, India’s retail inflation fell to 3.34%, the lowest since August 2019, driven by declining food prices, per the National Statistical Office. This aligns with the RBI’s 4% target under the 2016 monetary policy framework.
Source: Drishti IAS

• Key Drivers: Lower prices for rice and pulses reduced inflation.

• Government Actions: Buffer stock releases and simplified import duties curbed price rises.

• Impact: Boosts household purchasing power but may reduce farmers’ incomes in rural areas.

• CPI Role: The Consumer Price Index (2012 base) guides RBI’s monetary policy.

Exam Tip: Focus on the distinction between games of skill and chance, and federalism issues for UPSC polity questions. Explore our Current Affairs for more. Source: Hindustan Times.

RBI Cuts Repo Rate to 6% in May 2025

The RBI’s Monetary Policy Committee slashed the repo rate by 25 basis points to 6% in May 2025, responding to global economic uncertainties, including US-China trade tensions.
Source: The Hindu

• Objective: Stimulates borrowing and spending to spur economic growth.

• Mechanism: The repo rate is the RBI’s lending rate to commercial banks.

• Consumer Benefits: Cheaper loans for homes and vehicles.

• Business Growth: Lower borrowing costs encourage investment.

• Challenges: Global risks and maintaining the 4% inflation target.

PM Mudra Yojana: ₹32 Lakh Crore Sanctioned

Since 2015, the Pradhan Mantri Mudra Yojana (PMMY) has sanctioned 52 crore loans worth ₹32 lakh crore, empowering micro-enterprises.

• Purpose: Loans up to ₹10 lakh for non-farm micro-enterprises.

• Beneficiaries: Over 70% women; 50% from SC/ST/OBC communities.

• Social Impact: Promotes inclusion and local job creation.

• Challenges: Ensuring loan repayments and flexible interest rates.

National Monetisation Pipeline 2.0 Launched

In May 2025, the Centre launched the National Monetisation Pipeline (NMP) 2.0 to fund infrastructure through asset monetization.
Source: Drishti IAS

• Strategy: Leases and revenue-sharing for roads, railways, and energy assets.

• Economic Impact: Funds public projects and strengthens infrastructure.

• Challenges: Requires robust private-sector frameworks and transparency.

NITI-NCAER Economic Forum Portal Debuts

NITI Aayog and NCAER launched a portal in May 2025, aggregating 30 years of state-level economic data to aid policy-making.

• Data Scope: Covers demography, fiscal, health, and education from sources like Census 2011 and RBI’s State Finances Report.

• Policy Impact: Enables data-driven state policies and fiscal planning.

• Significance: Promotes federalism and inclusive growth.

Exam Tip: Note the DPDP Act’s impact on RTI and judicial precedents for UPSC governance questions. Check our Governance Updates for related topics. Source: Vision IAS.

India’s Cotton Production Crisis in 2024-25

India’s cotton production for 2024-25 is projected at 294 lakh bales, the lowest since 2008-09, impacting the textile sector.

• Causes: Low yield (450 kg/ha vs. global 800 kg/ha) and pink bollworm resistance to Bt cotton.

• Economic Impact: Imports (30 lakh bales) exceed exports, hurting competitiveness.

• Government Response: Testing GM hybrids (cry8Ea1, cry1c genes) and ₹500 crore allocated for 2025-26.

Agricultural Mechanisation Gains Momentum

Labor shortages in May 2025 drove agricultural mechanisation, though India lags global standards.

• Benefits: Harvesters cut costs (₹2,000-3,000/acre vs. ₹5,000) and boost output by 20%.

• Challenges: Small farm sizes (1.08 ha average) and high machinery costs.

• Initiatives: Sub-Mission on Mechanization and FARMS app for equipment rentals.

Urja Ganga Pipeline Nears Completion

In May 2025, GAIL completed 97% of the 3,384 km Urja Ganga pipeline, enhancing gas access in eastern India.

• Coverage: Connects Uttar Pradesh, Bihar, Odisha, and Assam.

• Capacity: 12.26 MMSCMD for industries and cities.

• Significance: Boosts energy security and regional industrial growth.

Exam Tip: Note IMEC’s geopolitical significance and economic benefits for UPSC IR and economy questions. Source: Drishti IAS.

Liberalised Remittance Scheme Sees Decline

Outward remittances under the RBI’s Liberalised Remittance Scheme (LRS) fell 29% to $1,964 million in February 2025.
Source: Guidely

• Limit: $250,000 annually for permissible transactions.

• Reasons: Reduced international travel and overseas education.

• Economic Impact: Eases pressure on forex reserves.

China Curbs Rare Earth Exports in 2025

In May 2025, China restricted exports of seven heavy rare earth elements amid US-China trade tensions.

• Global Share: China controls 69% of rare earth production.

• India’s Role: Low imports limit direct impact, but supply chain disruptions affect high-tech sectors.

• Response: India aims to boost domestic rare earth production.

US Places India on IPR Watch List

In May 2025, the US added India to the USTR’s IPR Priority Watch List over weak intellectual property protection.

• Issues: Piracy and slow patent examinations.

• Economic Impact: Strains US-India trade ties and may deter innovation investment.

• Context: Challenges with Copyright Act enforcement and global norm alignment.

Waqf Amendment Act 2025 Proposed

The Waqf Amendment Act 2025 aims to reform waqf property management for greater transparency.

• Key Reforms: Centralised database and enhanced financial audits.

• Social Impact: Improves community welfare and dispute resolution.

• Challenges: Requires state coordination and faces traditional resistance.

Conclusion

These current affairs for May 2025 are crucial for competitive exam aspirants. From economic policies like the RBI repo rate cut to infrastructure initiatives like the Urja Ganga pipeline, these updates shape India’s growth trajectory. Explore our exam prep resources and share your insights in the comments!