Current Affairs - International

On September 18, 2025, IIT Kanpur and Vietnam National University (VNU) signed a Memorandum of Understanding (MoU) to strengthen academic and research collaboration. The agreement focuses on key areas such as Artificial Intelligence (AI), medical technology, smart cities, drone applications, and advanced material research. This partnership is expected to foster joint research projects, enhance student and faculty exchange programs, and contribute to the socio-economic needs of both nations. It also aligns with India’s Act East Policy by deepening academic and technological ties with Southeast Asia. For Vietnam, the collaboration offers access to India’s expertise in cutting-edge STEM fields, thereby advancing innovation and capacity building.

Australia has significantly raised its climate ambition by setting a new emissions reduction target of 62% by 2035, based on 2005 levels. Announced by Prime Minister Anthony Albanese, this target builds upon the earlier pledge of a 43% cut by 2030. The move aligns with Australia’s obligations under the Paris Agreement and responds to growing domestic risks such as bushfires, droughts, rising sea levels, and biodiversity loss. The country has faced global criticism for its reliance on fossil fuels, making this updated target an important step toward decarbonisation. Backed by recommendations from the Climate Change Authority, it underscores Australia’s intent to balance economic development with climate responsibility.

The US Federal Reserve reduced its benchmark interest rate by 25 basis points (bps), bringing the range to 4.00%–4.25%. This marks the first rate cut of 2025 and signals the beginning of a potential easing cycle. The decision was influenced by signs of a cooling labour market, slower economic growth, and moderating inflation that remains above the 2% target. The Fed’s move aims to lower borrowing costs, encourage business investment, and support consumer spending, while still balancing the risks of inflation. Globally, the cut is expected to shape monetary policy sentiment, impacting capital flows, debt markets, and investor strategies across emerging and developed economies.

India signed a landmark agreement with Mauritius to set up a satellite tracking and communication station near Diego Garcia, located in the Chagos Archipelago. This initiative strengthens India’s strategic footprint in the Indian Ocean Region, an area of immense geopolitical significance due to its proximity to critical sea lanes. The station will enable India to monitor satellites and receive data more effectively, bolstering both scientific and defence related capabilities. Partnering with Mauritius, a close maritime ally, further deepens bilateral ties and highlights the growing cooperation between the two nations in space and regional security matters.

India has achieved the 38th position in the Global Innovation Index (GII) 2025, published by the World Intellectual Property Organization (WIPO). This marks a significant improvement from its 48th rank in 2020, showcasing India’s growing focus on research, knowledge outputs, and innovation driven growth. India also holds the top spot among lower middle income economies and in the Central and Southern Asia region. The GII evaluates 139 countries across more than 80 indicators spanning seven pillars, including infrastructure, human capital, institutions, and knowledge outputs. India’s rise demonstrates the success of its innovation ecosystem and its ability to leverage technology for economic development.