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16 December 2025

Daily current affairs: 16 December 2025

1

New Rural Jobs Bill to Replace MGNREGA Framework

Short Description : The government has introduced a new rural employment framework that shifts MGNREGA’s demand-driven model towards a more supply-driven, infrastructure-focused scheme, with a higher employment guarantee and reworked Centre–State funding norms.

Long Description : The proposed Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 aims to overhaul the Mahatma Gandhi National Rural Employment Guarantee Act by reorienting the scheme towards planned rural infrastructure creation instead of fragmented, small works. It envisages a standard cost-sharing formula between Centre and States and increases the statutory guarantee from 100 to 125 days of work per rural household, backed by a higher overall allocation. States may notify limited “no‑work” windows during peak agricultural seasons, but will be legally bound to provide unemployment allowance when work is not given in eligible periods, raising important questions on federalism, social security, and rural labour markets for exams.
2

SHANTI Bill Opens Nuclear Power to Private Sector

Short Description : The Union Cabinet has cleared the Atomic Energy Bill, 2025 (SHANTI), enabling up to 49% private and foreign investment in nuclear power projects under a unified legal and safety framework.

Long Description : The SHANTI (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) Bill represents the first major structural reform of India’s nuclear sector in decades. It proposes to amend existing atomic energy and nuclear liability laws to allow private companies and joint ventures to build, own, operate and decommission nuclear power plants, with equity participation capped at 49% under government oversight. The Bill envisages a streamlined licensing and regulatory architecture, including an independent nuclear safety mechanism and a dedicated disputes tribunal, while clarifying liability norms for operators and suppliers. The reform is projected to support India’s long‑term goals of expanding low‑carbon baseload capacity and attracting advanced technologies like small modular reactors, a high‑value topic for prelims and mains.
3

India to Reach Rare Milestone in Parallel Human Spaceflight

Short Description : The government has highlighted plans for India to achieve a rare global milestone by developing parallel human spaceflight capabilities, underlining the “Virasat se Vikas” vision for inclusive, technology‑driven growth.

Long Description : In an address reported by PIB, Minister of State Dr. Jitendra Singh stated that India is progressing towards a “rare global milestone” involving parallel human spaceflight capability, positioning the country among a small group with advanced crewed space missions. Linking the programme to the broader “Virasat se Vikas” vision, he emphasised that space infrastructure and applications are being leveraged for sectors such as agriculture, disaster management, climate services and digital connectivity, thereby making high technology a tool for inclusive growth. The statement comes as ISRO prepares follow‑on Gaganyaan missions, expands commercial launches, and deepens international space cooperation, giving aspirants a key reference point for questions on space, innovation policy and Atmanirbhar Bharat.
4

164 Vande Bharat Train Services Now Operational

Short Description : The Railways Ministry has announced that 164 Vande Bharat train services are operational, connecting 274 districts and aiming to boost regional connectivity, tourism and passenger comfort.

Long Description : A PIB release notes that 164 Vande Bharat services are running across the country, significantly expanding the semi‑high‑speed rail network and bringing improved connectivity to 274 districts. The trains, designed and manufactured under the Make in India initiative, offer faster inter‑city travel with better energy efficiency, passenger amenities and safety systems compared with conventional express services. The ministry underlines that these services are calibrated to support tourism circuits, pilgrimage routes and major economic corridors, thereby aiding local economies while decongesting existing routes. For examinations, this development links directly with themes of infrastructure push, indigenous manufacturing, regional development and green mobility in transport policy.
5

MSP and Procurement Measures to Strengthen Farmer Incomes

Short Description : The Centre has reiterated its strategy of supporting farmers’ incomes through regular MSP increases and expanded procurement operations, framing these as part of a broader rural welfare and food security policy.

Long Description : In a recent statement, the government detailed how it fixes Minimum Support Prices annually on the Commission for Agricultural Costs and Prices’ recommendations and seeks to ensure remunerative returns to farmers. The note emphasises that MSP hikes, coupled with extensive procurement for key crops, underpin income security for cultivators and stabilise domestic food supplies. The government also pointed to parallel investments in storage, logistics and digital platforms for procurement to reduce leakages and improve transparency. For competitive exams, this update is relevant to debates on MSP as a price‑support vs income‑support instrument, WTO implications, and the role of public procurement in managing inflation and rural distress.
6

Rabi Oilseed Sowing Crosses 89 Lakh Hectares

Short Description : The Agriculture Ministry reported that oilseed sowing in the current rabi season has crossed 89 lakh hectares, reflecting policy focus on edible‑oil self‑reliance and crop diversification.

Long Description : According to an update by the Department of Agriculture & Farmers’ Welfare, rabi oilseeds have been sown over more than 89 lakh hectares, indicating a notable area expansion compared with recent years. This is aligned with government initiatives such as the National Mission on Edible Oils, MSP support and targeted advisories promoting mustard and other oilseeds in suitable agro‑climatic zones. Higher oilseed acreage is expected to reduce import dependence, support farmer incomes and contribute to a better cropping balance away from water‑intensive cereals in some regions. For examinations, candidates can connect these figures to topics like import bills for edible oils, agri‑marketing reforms and sustainable cropping patterns.
7

Gen Z–Themed Post Office at IIT Bombay

Short Description : India Post is set to inaugurate Mumbai’s first Gen Z–themed post office at the IIT Bombay campus, aimed at modernising postal services and engaging youth through a tech‑forward, experiential design.

Long Description : A PIB Mumbai release states that India Post will open a Gen Z–oriented post office at IIT Bombay on 18 December 2025, following similar initiatives in Delhi, Kerala, Gujarat, Bihar and Andhra Pradesh. The concept seeks to rebrand post offices as digitally‑enabled spaces offering app‑based services, e‑commerce facilitation, financial products and philately in formats attractive to students and young professionals. The move aligns with the Department of Posts’ broader modernisation plan that includes core banking integration, parcel logistics and digital payments. For exams, this illustrates how traditional public sector institutions adapt to demographic and technological shifts while supporting financial inclusion and last‑mile delivery.
8

President Inaugurates “Param Vir Dirgha” at Rashtrapati Bhavan

Short Description : President Droupadi Murmu has inaugurated “Param Vir Dirgha” at Rashtrapati Bhavan, a dedicated space honouring Param Vir Chakra awardees and India’s highest traditions of military valour.

Long Description : The Rashtrapati Bhavan event, reported by PIB, marks the inauguration of “Param Vir Dirgha”, a gallery or memorial space that commemorates recipients of the Param Vir Chakra, India’s highest wartime gallantry award. The initiative is designed to educate visitors about the stories, battles and sacrifices associated with these awardees and to inspire a sense of patriotism and duty among citizens, especially youth. It also fits into Rashtrapati Bhavan’s evolving role as a public heritage and knowledge space rather than an exclusive official residence. For exams, the development can be linked to questions on national symbols, defence honours and efforts to preserve military history.
9

President Opens 1066th Jayanthi Celebrations of Adi Jagadguru Sri Shankaracharya

Short Description : President Murmu inaugurated the 1066th Jayanthi celebrations of Adi Jagadguru Sri Shankaracharya, underlining the government’s emphasis on India’s spiritual heritage and cultural continuity.

Long Description : In a cultural‑religious function covered by PIB, the President attended and inaugurated the 1066th Jayanthi celebrations of Adi Jagadguru Sri Shankaracharya. Her address highlighted Shankaracharya’s role in consolidating Advaita Vedanta, promoting philosophical synthesis and strengthening social cohesion across regions centuries ago. Such events are framed as part of a broader effort to showcase India’s “civilisational heritage” while promoting values of harmony and dialogue rooted in classical thought. For aspirants, the news is relevant to art and culture, Indian philosophy, and questions on how contemporary state institutions engage with religious and cultural traditions.
10

India–Jordan Business Forum

Short Description : India and Jordan held a high‑level Business Forum on 16 December 2025, reaffirming strong trade ties and agreeing to diversify the trade basket and convene a joint economic committee in 2026.

Long Description : A joint communiqué noted that India is now Jordan’s third‑largest trading partner, with bilateral trade around USD 2.3 billion in 2024, driven largely by fertilisers, chemicals and other commodities. During a high‑level visit, both sides welcomed the Jordan–India Business Forum on 16 December 2025, which brought together business delegations to explore cooperation in sectors such as fertilisers, pharmaceuticals, IT and tourism. The leaders also agreed to convene the 11th Trade and Economic Joint Committee in the first half of 2026 and to deepen customs cooperation under an existing mutual assistance agreement. This has direct relevance for topics like West Asia policy, energy and food security, and South–South economic partnerships.
11

Rupee Liquidity Boost after December Repo Rate Cut

Short Description : Following a 25 bps cut in the repo rate to 5.25%, RBI plans to inject around ₹1.5 lakh crore liquidity in December through bond purchases and a USD/INR swap, to ease funding costs without tightening currency‑market interventions.

Long Description : The Indian Express reports that RBI Governor Sanjay Malhotra announced measures to support system liquidity after the Monetary Policy Committee reduced the policy repo rate to 5.25%, the lowest in over three years. The package includes open‑market purchases of government securities worth ₹1 lakh crore and a three‑year USD/INR buy‑sell swap of about USD 5 billion, estimated to release an additional ₹45,000 crore into the banking system. The move is intended to offset liquidity drained by earlier forex interventions to stabilise the rupee, which has been among Asia’s weakest currencies in 2025. For exams, the news links repo policy, OMOs, swaps, liquidity management and external sector dynamics.
12

New GDP Series to Remove “Discrepancies” Component

Short Description : The statistics ministry is working on a revised GDP series that will eliminate the “discrepancies” component and provide a full back series by 2027, aiming for greater transparency and coherence in national accounts.

Long Description : According to a report in The Indian Express, the Ministry of Statistics and Programme Implementation (MoSPI) plans to roll out a new GDP series that does away with the residual “discrepancies” item, which currently reconciles divergence between production‑side and expenditure‑side estimates. The revised methodology will re‑allocate such gaps to specific components, making the structure of GDP more interpretable for policymakers and analysts. Officials also indicated that a comprehensive back series up to earlier years will be released by February 2027, allowing meaningful comparison over time. For aspirants, this is crucial for questions on GDP calculation, base‑year revisions and data quality debates in India.
13

Rupee’s “Capital Account Problem” in Focus

Short Description : Commentary has highlighted that India’s rupee faces a structural “capital account problem”, with volatile foreign portfolio flows aggravating a persistent current account deficit and putting pressure on the currency.

Long Description : An analysis in The Indian Express explains that India’s external vulnerability is driven less by day‑to‑day trade and more by how capital flows—especially foreign portfolio investments—interact with a structural current account deficit. In 2025, significant equity outflows and uncertainty over trade agreements have intensified rupee depreciation, despite reasonable foreign direct investment. The article argues that deepening domestic bond markets, encouraging stable long‑term capital and maintaining credible macroeconomic policy are critical for reducing the rupee’s sensitivity to sentiment‑driven capital swings. This discussion is highly exam‑relevant for understanding the balance of payments, exchange‑rate management and capital account openness.
14

New Rural Jobs Bill Sparks Federalism and Rights Debate

Short Description : Editorial analysis notes that the proposed rural jobs law, which replaces MGNREGA, shifts power upwards to the Union government and away from demand‑driven rights, raising concerns over federal balance and social protection.

Long Description : A current affairs handout based on major newspapers points out that the draft Viksit Bharat–Guarantee for Rozgar and Aajeevika Mission Bill empowers the Union government to notify rural areas in a state where the scheme will apply, centralising control over implementation geography. The move away from an open‑ended, demand‑based entitlement towards an allocation‑driven framework is seen as converting a rights‑based scheme into a more discretionary programme, particularly impacting high‑demand states. Critics argue this could undermine decentralised planning and reduce the automatic stabiliser role MGNREGA plays during local distress, while supporters emphasise asset quality and fiscal discipline. For mains, this offers a rich case study on rights vs schemes, cooperative federalism and rural welfare design.
15

India, Mexico Discuss Tariff‑Hike Impact

Short Description : India and Mexico are in talks to mitigate the impact of recent tariff hikes, seeking to preserve market access and investment flows amid global trade frictions.

Long Description : A UPSC‑oriented analysis of The Hindu notes that India and Mexico have initiated discussions after tariff increases affected key export sectors, potentially including automobiles, auto components and agri‑products. Officials are reported to be exploring options such as product‑specific concessions, re‑routing of supply chains and use of bilateral mechanisms to soften the blow on businesses. The issue is set against the backdrop of shifting global value chains and India’s broader strategy to secure resilient trade partnerships beyond its immediate neighbourhood. For exams, the episode illuminates how tariff policy, WTO disciplines and regional trade strategies interact.
16

IndiGo Operational Disruptions Raise Aviation Governance Questions

Short Description : Recent large‑scale disruptions in IndiGo’s operations, including flight cancellations and delays, have highlighted regulatory, labour and contingency‑planning issues in India’s civil aviation sector.

Long Description : The Hindu’s coverage, summarised in exam‑focused analysis, describes how IndiGo faced major operational disruptions, leading to a significant number of passengers being stranded or delayed. Factors reportedly include crew‑scheduling bottlenecks, industrial relations and the cascading impact of network‑wide rescheduling. The Directorate General of Civil Aviation’s role in monitoring airlines’ preparedness, compensation norms, and passenger‑rights frameworks has come under renewed scrutiny. For competitive exams, this development can be linked to questions on infrastructure stress, consumer protection, the economics of low‑cost carriers and regulatory capacity in high‑growth sectors.