Current Affairs – December 25, 2025

{GS2 – Polity} PESA Mahotsav 2025 **

Context (PIB | PIB): PESA Mahotsav (23–24 Dec 2025) was held in Visakhapatnam, marking the anniversary of the Panchayats (Extension to Scheduled Areas) Act, 1996.

About PESA Act

Origin: Enacted in 1996 following the Bhuria Committee (1995), which recommended tribal self-rule to correct the historical exclusion of Scheduled Areas from mainstream decentralisation.
Constitutional Gap: PESA was designed to cover Fifth Schedule Areas left outside the 73^rd Constitutional Amendment (Part IX of the Constitution), ensuring self-governance.
State Legislature Role: State legislatures are expected to play a facilitative and advisory role.
Institutional Responsibility: Ministry of Panchayati Raj (MoPR) acts as the nodal ministry.
Spatial Reach: Operates across 10 Fifth Schedule states, spanning ~77,500 villages and ~22,000 Panchayats, giving PESA national-scale relevance.

Significance of the PESA Act

Demographic Empowerment: Covers 8.6% of India’s population belonging to Scheduled Tribes, addressing governance in some of the most marginalised regions.
Gram Sabha Supremacy: Gram Sabha is the core institution of self-governance in Scheduled Areas, with authority over social, economic and cultural matters affecting the community.
Land Protection: Mandatory consultation and consent of Gram Sabha before land acquisition, resettlement or rehabilitation in Scheduled Areas, preventing arbitrary land alienation.
Forest Rights Control: Gram Sabhas have ownership and management rights over minor forest produce, strengthening livelihood security for tribal households.
Mining Regulation: Recommendation of Gram Sabha is required for granting leases for minor minerals.
Customary Law Recognition: Traditional customs, dispute resolution mechanisms and cultural practices of tribal communities are legally recognised and protected.
Social Regulation: Gram Sabhas are empowered to prevent intoxicant abuse and regulate money-lending practices to protect vulnerable households.

Key Issues in PESA Implementation

Uneven Rule Adoption: Only 8 out of 10 Fifth Schedule states have notified PESA Rules, creating legal uncertainty in Odisha and Jharkhand.
Diluted Authority: In the Hasdeo Arand coal blocks (Chhattisgarh), forest and mining clearances proceeded despite multiple Gram Sabha resolutions opposing mining.
Capacity Constraints: During MoPR-led assessments, it was found that over 40% of elected representatives in PESA Panchayats were unable to explain the concept of Gram Sabha clearly.
Monitoring Gaps: Absence of a unified monitoring framework across ~63 Fifth Schedule districts weakens accountability and enforcement.
Administrative Resistance: In the Polavaram irrigation project (Andhra Pradesh), displacement continued under sectoral project laws even as PESA-mandated Gram Sabha consent was contested.

Government Initiatives for PESA Act Implementation

Dedicated PESA Cell: Established in MoPR for focused coordination, monitoring and inter-state support.
Capacity Building: Two rounds of master-trainer programmes trained 1 lakh+ representatives.
Digital Enablement: PESA–Gram Panchayat Development Plan Portal for fund tracking.
Language Access: Translation of PESA manuals into tribal languages to improve comprehension.
Academic Support: Centres of Excellence set up in universities to document customs and best practices.
Knowledge Sharing: Publication of 40 PESA success stories to enable cross-state learning.

Way Forward

Law Convergence: Integrate PESA with the Forest Rights Act (2006) and Land Acquisition Act (2013) so Gram Sabha consent becomes a single, binding clearance.
Clear Role Allocation: Clearly demarcate responsibilities between MoPR and Ministry of Tribal Affairs; E.g., MoPR to handle governance processes, MoTA to safeguard land, forest and livelihood rights.
Uniform Rule Design: Develop model PESA Rules for adoption by all states; E.g., central templates with limited state flexibility to prevent dilution.
Continuous Capacity Support: Shift from one-time training to ongoing handholding; E.g., community paralegal and barefoot governance facilitator pilots.
Incentive Alignment: Link effective PESA compliance to funding incentives; E.g., higher untied grants for Panchayats demonstrating strong Gram Sabha-led governance.

Read More> India’s Financial Sector

{GS3 – IE} RBI to Inject Liquidity in Banking Sector **

Context (IE): Reserve Bank of India announced a ₹3 trillion liquidity infusion to address a liquidity deficit in banks.

Open Market Operation: It will purchase ₹2 trillion government securities from banks to inject systemic liquidity.
Dollar Swap: RBI will buy $10 billion from banks for rupees and sell it back in three years.
Objective: The move aims to stabilise government bond yields and prevent spillover risks to broader economic activity.

Key Tools to Control Liquidity Deficit

Open Market Operations: RBI purchases Govt. securities to inject rupees into the banking system.
Repo Operations: RBI uses the repo rate and Variable Rate Repo auctions to supply short-term funds to banks.
Marginal Standing Facility: MSF allows banks to borrow overnight funds from RBI at a penal rate.
SLR Adjustment: RBI can reduce the Statutory Liquidity Ratio to release bank funds held in government securities.
CRR Adjustment: Lowering the Cash Reserve Ratio increases lendable resources by reducing deposits kept with the RBI.
Forex Swap: RBI conducts USD/INR buy-sell swaps to inject rupee liquidity into the banking system.

Factors for Recent Liquidity Deficit in the Banking Sector

Tax Outflows: Quarterly advance tax and GST payments moved corporate funds from banks to government accounts.
Forex Intervention: RBI’s forex intervention through dollar sales absorbed rupee liquidity from the banking system.
Festive Withdrawals: Increased public spending during festive seasons raised cash withdrawals and reduced bank deposits.
Capital Outflows: Equity and debt sales by foreign portfolio investors (FPI) worsened rupee pressure and liquidity strain.

Impacts of Liquidity Deficit

Interest Rates: Scarcity of funds raises short-term interest rates as banks compete for limited cash.
Higher Costs: Prolonged deficits force banks to raise lending rates for households and businesses.
Investment Activity: Reduced credit access slows business investment and consumer spending, weakening overall economic growth.
Policy Transmission: Liquidity shortages prevent banks from passing repo rate cuts to borrowers.
Rising Yields: Liquidity deficit lowers bond prices and raises government security yields, leading to a “dull” equity market.

Read More> India’s Financial Sector

{GS3 – IE} India’s Creator Economy

Context (LM | DD): India’s creator economy is transitioning from informal content creation to structured commerce and contracts, with 2026 expected to mark consolidation and regulatory maturity.

Current Snapshot of India’s Creator Economy

Market Size: The creator economy expanded by ~25% in 2025, reaching nearly ₹4,500 crore, reflecting rapid monetisation beyond brand endorsements.
Creator Base: India hosts around 2–2.5 million monetised creators, making it one of the world’s largest creator ecosystems by volume.
Economic Influence: Creator-led content already shapes $350–400 billion in annual consumer spending, projected to exceed $1 trillion by 2030, signalling systemic economic impact.

Reasons for Push Towards Creator Economy

Digital Consumption Shift: Over 60% of internet users are regularly exposed to creator content, weakening the dominance of traditional advertising channels.
Trust-Based Commerce: Around 30% of consumers directly attribute purchase decisions to creators they follow, showing higher conversion than mass-media ads.
Vernacular Expansion: India’s regional-language internet users now form the majority of new users, driving demand for niche and local creators at scale.
Platform Monetisation Tools: Affiliate marketing, subscriptions and commissions now account for a rising share of creator income, improving revenue diversification.
Low Entry Barriers: Cheap data, smartphones and platform onboarding have enabled millions to enter content-based self-employment with minimal capital.

Government Initiatives Supporting Creator Economy

AVGC Promotion Task Force: Supports Animation, Visual Effects, Gaming and Comics with skilling, incubation and export promotion, benefiting digital and XR creators.
Digital India Programme: Expansion of broadband, UPI, and digital public infrastructure enables seamless creator-led commerce and micro-payments at scale.
Skill India Digital: Offers courses in digital marketing, content creation and media skills, indirectly strengthening creator employability and professionalism.
IPR Awareness Programmes: Government-led copyright and trademark facilitation drives help creators protect original content and digital identities.

Challenges Faced in the Creator Economy

Income Volatility: Less than 20% of creators earn stable monthly incomes, with the majority relying on irregular brand campaigns and seasonal deals. (BCG Creator Economy Report).
Platform Dependency: Nearly 80% of creator revenues come from just 2–3 major platforms, making incomes highly vulnerable to algorithm changes and policy shifts.
AI Authenticity Risks: AI-assisted content creation has expanded rapidly, with over 40% of digital creators globally using AI tools, while disclosure compliance remains uneven. (OECD Report).
Legal Vulnerability: Informal contracts often result in 60- to 90-day payment delays, disrupting cash flow and income stability, especially for independent creators.

Way Forward

Disclosure Frameworks: Introduce mandatory AI and sponsored-content disclosures, on the lines of the EU Digital Services Act transparency norms.
Creator Legal Support: Set up creator legal aid cells and standard contract templates, inspired by Startup India legal facilitation models.
Advanced Skilling: Expand AVGC and Skill India modules to cover analytics, commerce integration and immersive media, building future-ready creators.
Platform Diversification: Encourage omnichannel presence through incentives, similar to South Korea’s creator export support programmes.

{GS3 – Infra} Comprehensive Guidelines on Building Road Tunnels

Context (IE): The Ministry of Road Transport and Highways (MoRTH) released guidelines for building road tunnels to prevent and mitigate tunnel collapse risks.

Key Provisions of the Guideline

Risk Ownership: Contracts must assign every identified project risk to the party best equipped to manage it.
Stakeholder Coordination: Planning requires early consultation with Forest, PWD, Railways, and Disaster Management departments.
DPR Mandate: Every Detailed Project Report (DPR) includes a Geotechnical Baseline Report (GBR) and a live Risk Register.
- Geotechnical Baseline Report: Contractual reference for expected ground conditions.
- Risk Register: Lists identified hazards with site-specific mitigation measures.
Portal Siting: Alignment planning must use the Landslide Susceptibility Maps by the GSI to avoid portals in unstable zones.
Rescue Pipe: High-risk collapse zones require installation of a 0.9-metre NP-4 escape pipe in the tunnel invert (floor).
Rescue Staging: One mobile rescue container for 12 workers must be placed 150-300 metres behind the tunnel face (active excavation point).
- Survival Support: Rescue containers will provide at least 24 hours of oxygen, water, and communication facilities.
ERP Discipline: Emergency Response Plans undergo weekly updates and bi-weekly verification by an authorised safety officer.
Evacuation Gaps: Pedestrian cross-passages are provided at 300-metre intervals for emergency escape.
Early Oversight: Tunnels above 1.5 kilometres require intimation to the Ministry of Road Transport and Highways (MoRTH) Tunnel Zone.
Quality Assurance: An independent expert panel will review the DPR and construction methodology before execution.

Road Tunnels Landscape in India

Completed Works: 42 road tunnels covering 60.37 km have been completed across 27 National Highway (NH) projects.
Ongoing Projects: 57 tunnels spanning 93.96 km are under construction across 37 NH projects.
Network Target: India aims to develop an aggregate road tunnel network of 331 km by 2026-27.
Construction Methods: Over 80% of Himalayan tunnels use NATM (New Austrian Tunnelling Method), while urban coastal projects rely mainly on TBMs (Tunnel Boring Machines).

Important Road Tunnels in India

Dr. Syama Prasad Mookerjee Tunnel: India’s longest operational road tunnel (9.28 km) on NH-44 between Chenani and Nashri in Jammu and Kashmir.
Atal Tunnel: World’s longest (9.02 km) highway tunnel above 10,000 ft beneath Rohtang Pass at the Eastern Pir Panjal range in Himachal Pradesh.
Sela Tunnel: World’s longest (2.5 km) twin-lane tunnel above 13,000 ft, connecting Tezpur in Assam with Tawang in Arunachal Pradesh below Sela Pass.

Under-Construction Important Road Tunnels

Zojila Tunnel: Asia’s longest (13.1 km) bi-directional road tunnel will connect Sonamarg in Jammu and Kashmir with Drass in Ladakh.
Shinku La Tunnel: World’s highest tunnel (4.1 km) at 15,800 ft between Lahaul in Himachal Pradesh and Zanskar in Ladakh.
Brahmaputra Underwater Tunnel: India’s first proposed road-cum-rail underwater tunnel, 32 m below the Brahmaputra riverbed in Assam.

{GS3 – IS} Unrest in Assam’s Karbi Anglong

Context (IE | TH): The Karbi Anglong and West Karbi Anglong districts of Assam witnessed escalating civil unrest, causing civilian deaths and internet shutdowns.

Current instability began with a hunger strike by indigenous tribal activists demanding eviction of long-settled non-tribal communities.
Protesters argue the Sixth Schedule vests land rights with indigenous tribes, barring non-tribal settlement in protected grazing lands.

About Karbi Anglong

Karbi Anglong is the largest district of Assam, forming part of the Karbi Plateau, an extension of the Indian Peninsular Block.
It is divided into East Karbi Anglong (headquartered in Diphu) and West Karbi Anglong (headquartered in Hamren); the Kopili River and parts of Nagaon district separate the two districts.
The region is governed by the Karbi Anglong Autonomous Council (KAAC) under the Sixth Schedule.
Tribal Composition: Karbis, historically called Mikirs, form the largest indigenous community; other STs include Dimasas, Bodos, Kukis, Hmars, Tiwas, Garos, Tai groups, and Rengma Nagas.
Non-Tribal Groups: Include Gorkhas, Bengalis, and Hindi-speaking communities.
Peace Accord: Karbi Anglong Peace Accord, 2021, a tripartite agreement between the Centre, Assam Government, and five insurgent groups, was signed to end decades of insurgency.
- It promised enhanced legislative, executive, and administrative powers to the KAAC while keeping it within the framework of the Sixth Schedule.
Major Demand: There has been a long-standing demand to implement Article 244(A), which allows for the creation of an “Autonomous State” within Assam for certain tribal areas.

Read More > North East Insurgency in India

{GS3 – S&T} Digital Residue Reshaping Policing in India **

Context (IE): Indian policing is increasingly relying on digital residue, shifting from traditional investigative methods based on physical evidence.

Digital Residue is the electronic trail generated by everyday actions such as online payments, authentication systems, and digital platform use.

Digital Residue as Evidence

Device Attribution: One-time passwords (OTPs) and shopping logs link transactions to verified mobile numbers and specific device identifiers.
Spatial Reconstruction: FASTag toll alerts combined with delivery logs reconstruct inter-state movement despite discarded primary phones.
Intent Proof: Search histories, AI chatbot queries, and deleted cloud backups can reveal premeditation.
Temporal Proof: In bank or Tax fraud, OTP timestamps establish device activity at a specific time.

Legal Basis and Frameworks in India

BSA, 2023: Bharatiya Sakshya Adhiniyam recognises electronic records as primary evidence, enabling server logs and location data in trials.
BHARATPOL: Launched in early 2025, this centralised digital intelligence system by the CBI uses Big Data Analytics and AI for real-time threat analysis and fugitive tracking.
TIUE Norms: Apps using mobile numbers for account creation are classified as Telecommunication Identifier User Entities, mandating strict SIM-user binding.
Procedural Safeguards: Bharatiya Nagrik Suraksha Sanhita (BNSS) and Digital Personal Data Protection (DPDP) Rules, 2025, balance data privacy with lawful access to digital evidence.

Read More > Police Reforms in India

{Prelims – A&C} Thanjavur Paintings *

Context (PIB): A priceless Thanjavur-style painting (Tanjore) of Shri Ram was transported from Bengaluru to the Ram Mandir, Ayodhya.
The art form originated in the 16^th century under the Nayakas of Thanjavur, who were the feudatories of the Vijayanagara rulers.
It reached its zenith in the 18^th century under Maratha rulers, especially Raja Serfoji II.
Thanjavur painting received the Geographical Indication (GI) tag in 2007–08.
Key Features: The paintings are executed on solid wooden planks called Palagai Padam; they use genuine 22-karat gold foil, and semi-precious stone inlay and provide a 3D effect.
Themes: The paintings mainly depict Hindu deities, especially Bala Krishna, Shri Ram, and Puranic scenes.

{Prelims – A&C} National Maritime Heritage Complex

Context (PIB): On 20 Dec 2025, India and the Netherlands signed a Memorandum of Understanding (MoU) to collaborate on the National Maritime Heritage Complex (NMHC) at Lothal, Gujarat.

Key Features of the MoU Signed

Design Exchange: Collaboration on museum design and conservation to meet global-quality standards.
Joint Exhibitions: Possibility of co-curated exhibitions to widen international reach.
Research Link: Joint research projects on maritime history, collections and public history outputs.
Outreach Push: Focus on better visitor experience, education tools and public outreach methods.

About National Maritime Heritage Complex (NMHC)

Objective: To use the latest technology to showcase India’s maritime heritage from ancient to modern times through an edutainment approach.
Implementing Agency: It will be developed by the Ministry of Ports, Shipping, and Waterways under the Sagarmala Programme.
Global Significance: Set to become the world’s largest maritime museum complex and a leading international tourist destination.
Funding: Developed with contributions from public and Corporate Social Responsibility (CSR) initiatives.
Key Features: The complex will include a recreation of Lothal’s historic township and a Lighthouse Museum, which is set to be the tallest in the world.

Lothal is the world’s oldest known artificial dock and a Harappan port city located along the Bhogava River, a tributary of the Sabarmati.

{Prelims – Geo} Subansiri Lower Hydroelectric Project (SLHEP)

Context (DH): The first unit of India’s largest hydropower project, the Subansiri Lower Hydroelectric Project (SLHEP), has become operational.

The project faced prolonged delays due to its location in Seismic Zone V and sustained public protests over environmental safety concerns.

About Subansiri Lower Hydroelectric Project

The project is built on the Subansiri River and is located at Gerukamukh on the border of Arunachal Pradesh and Assam.
It is being developed by the National Hydroelectric Power Corporation (NHPC) Limited.
It has a total capacity of 2,000 MW, comprising eight units of 250 MW each.
SLEP is a concrete gravity dam, rising 116 metres above the riverbed.
Key Feature: It is a run-of-the-river project with limited pondage, generating electricity using natural river flow and elevation drop without large water storage.
Benefits: Besides power generation, the project provides a flood cushion that helps reduce recurrent flash floods in the downstream Assam plains.
Significance: It strengthens the national power grid, supporting India’s Net Zero 2070 goal, and boosts energy development in the Northeast

Subansiri is a trans-Himalayan, antecedent river originating in Tibet as Chayul Chu; it is the largest right-bank tributary of the Brahmaputra.

{Prelims – IR} Rapid Financing Instrument *

Context (TI): Recently, the IMF approved USD 206 million under the Rapid Financing Instrument (RFI) to support Sri Lanka’s immediate balance-of-payments and humanitarian needs.

About International Monetary Fund (IMF)

The IMF was established in July 1944 by 44 countries at the Bretton Woods Conference in the USA.
It came into formal existence in December 1945, when its first 29 member countries signed its Articles of Agreement. India is a founder member of the IMF.
It is a United Nations specialised agency with headquarters in Washington, D.C

About Rapid Financing Instrument (RFI)

Nature: IMF emergency window providing quick-disbursing, low-conditionality support to members facing urgent balance-of-payments needs.
Use Cases: Natural disasters, pandemics and post-conflict situations requiring immediate liquidity.
Feature: Funds are released without a full programme review, unlike standard IMF facilities.

About Extended Fund Facility (EFF)

Nature: IMF facility providing medium- to long-term financing to countries facing deep-rooted structural balance-of-payments problems.
Use Cases: Used when imbalances arise from structural weaknesses, prolonged economic stress, or major reform needs rather than short-term shocks.
Feature: Support is phased over 3–4 years and linked to comprehensive structural reforms.

Other Important IMF Facilities

Stand-By Arrangement (SBA): Provides short-term stabilisation finance for temporary BoP stress, usually 12–24 months, with disbursements tied to macroeconomic adjustment measures.
Extended Credit Facility (ECF): Long-term concessional financing for low-income countries with persistent BoP issues, combining structural reforms with low interest rates and long repayment periods.
Standby Credit Facility (SCF): Short-term or precautionary concessional support for low-income countries, similar to SBA but tailored to temporary shocks and financing gaps.
Rapid Credit Facility (RCF): Provides quick, concessional emergency finance to low-income countries hit by disasters or shocks, with minimal conditionality and fast disbursement.

{Prelims – IR} Russia Plans Nuclear Power Plant on the Moon *

Context (DDN): Russia and China have formalised a plan to build an automated nuclear power plant on the Moon by 2035-2036.

ILRS Framework: The project is part of the International Lunar Research Station (ILRS), comprising an orbital station and surface base near the lunar south pole.
Energy Constraint: A nuclear reactor is required because solar panels cannot generate power during the Moon’s 14-day lunar night.
US Programme: The United States is advancing the Fission Surface Power Project, aiming to deploy a lunar reactor by 2030.
Legal Status: The Outer Space Treaty bans nuclear weapons in space but permits peaceful nuclear energy use for exploration.

Read More> Nuclear Power in Space

{Prelims – Defence} ICG Ship Samudra Pratap

Context (PIB): Indian Coast Guard (ICG) inducted its first indigenous Pollution Control Vessel (PCV), Samudra Pratap, built under the 02 PCV Project.

It is equipped with specially designed radar systems for oil spills detection, side sweeping arms for oil spill containment while in motion and high-capacity storage for recovered oil.
With a 72% indigenous content, this marks the first time a PCV is designed and built indigenously in India. Samudra Pratap has a sister ship called Samudra Prachet (launched in July 2025).

Read More > ICG Ship Samudra Paheredar

{Prelims – Defence} Akash-NG Missile System *

Context (ET): Defence Research and Development Organisation (DRDO) successfully completed the user trials of the Akash Next Generation (Akash-NG) missile system.

About Akash-NG

It is a surface-to-air missile (SAM) defence system developed by DRDO as a successor to the Akash missile system operated by the Indian Air Force (since 2014) and the Indian Army (since 2015).
The NG variant is lighter (≈350kg), has better range (30km) and better altitude (≈20km) compared to the original Akash missile system. It comes in mobile and fixed configurations.
It features a dual-pulse solid rocket motor (better speed and manoeuvrability), indigenous active radar seeker and low Radar Cross-Section (RCS) engagement.
The improved features enable it to engage multiple targets (up to 10) simultaneously, including high speed, low altitude and long-range high-altitude targets with extreme precision.

Read More > S-400 Missile System

{Prelims – In News} Birth Anniversaries of Atal Bihari Vajpayee and Pandit Madan Mohan Malaviya

Context (PIB | PIB): PM Narendra Modi paid tributes to Atal Bihari Vajpayee and Madan Mohan Malaviya on their birth anniversaries.

December 25 is observed as Good Governance Day to honour the contributions of Atal Bihari Vajpayee .

About Atal Bihari Vajpayee

Atal Bihari Vajpayee was born on December 25, 1924, in Gwalior, Madhya Pradesh.
He joined the Rashtriya Swayamsevak Sangh (RSS) in 1939 and was elected general secretary of the Arya Kumar Sabha in Gwalior (Arya Samaj’s youth branch).
He served as Prime Minister three times—briefly in 1996, again during 1998–1999, and a full term from 1999 to 2004; he became the first non-Congress PM to complete a full term.
He authorised the 1998 Pokhran-II nuclear tests, launched Sarva Shiksha Abhiyan in 2001, and initiated the Golden Quadrilateral highway project.
Honours: He received the Padma Vibhushan in 1992 and the Bharat Ratna posthumously in 2015.
Memorial: His samadhi, ‘Sadaiv Atal’, is located at Rashtriya Smriti Sthal near Raj Ghat, New Delhi.

Read More > Atal Bihari Vajpayee

About Pandit Madan Mohan Malaviya

Madan Mohan Malaviya was born on December 25, 1861, in Allahabad (Prayagraj), Uttar Pradesh.
He was given the title “Mahamana” by Mahatma Gandhi and “Karmayogi” by Dr S. Radhakrishnan.
He founded Banaras Hindu University (BHU) in 1916 and the Akhil Bharat Hindu Mahasabha in 1915.
He served as the President of the Indian National Congress four times (1909, 1918, 1932, and 1933).
He founded and edited the English daily ‘The Leader’ (1909) and the Hindi weekly ‘Abhyudaya’ (1907).
Honour: He was posthumously conferred the Bharat Ratna in 2014.