1. 8th Central Pay Commission Constituted
SUBJECT: POLITY
- The Union Cabinet approved the formation of the 8th Central Pay Commission (CPC) to revise pay, pensions, and allowances for over 48 lakh central government employees and 65 lakh pensioners, effective from January 1, 2026.
- Chaired by former Finance Secretary Ram Mohan, the commission includes members from NITI Aayog and the Department of Expenditure, with a mandate to submit recommendations within 18 months.
- It addresses disparities in Dearness Allowance and pension structures, focusing on fiscal sustainability amid inflation pressures.
- The move follows the 7th CPC’s implementation in 2016, aiming to boost employee morale and align with Viksit Bharat goals.
- Coverage extends to defence personnel, All India Services, and Union Territory staff, marking a step towards equitable remuneration.
- Concepts: Article 309 empowers Parliament to regulate civil service conditions, ensuring fair pay as a constitutional imperative.
- Doctrine of Legitimate Expectation: Guarantees periodic revisions to uphold administrative efficiency and social equity.
2. Lokpal Scrutiny Over Corruption Probes and Lavish Spending
SUBJECT: NATIONAL ISSUES
- The Lokpal of India faces backlash for a 90% drop in complaints (from 2,469 in 2022-23 to 233 in 2025) and a controversial tender for seven BMW cars worth ₹10 crore.
- Delays in high-profile probes against ministers highlight autonomy concerns, with critics demanding faster adjudication under the Lokpal Act, 2013.
- Chairperson Justice A.M. Khanwilkar defended the procurement as essential for official duties, but opposition parties label it a misuse of public funds.
- The anti-corruption ombudsman, established in 2019, has investigated 150+ cases but convicted only 12, prompting calls for structural reforms.
- This comes amid broader governance debates, including Centre-state fund disputes over MGNREGA in West Bengal.
- Concepts: Article 21 ensures speedy justice; Lokpal embodies constitutional morality in anti-corruption architecture.
- Federalism Tensions: Balances institutional independence with accountability, invoking principles from the Prevention of Corruption Act.
3. India-EU Trade Negotiations Advance
SUBJECT: INTERNATIONAL
- Commerce Minister Piyush Goyal announced significant progress in India-EU free trade talks after three days in Brussels, narrowing gaps on tariffs and investment.
- A five-pillar strategic agenda emphasizes technology, security, and connectivity, including joint cybersecurity pacts and IMEC corridor enhancements.
- Discussions addressed EU’s Carbon Border Adjustment Mechanism (CBAM) concerns, aiming for a deal by early 2026 to boost bilateral trade to $200 billion.
- Cyprus Foreign Minister’s visit to India advanced maritime and defence ties, focusing on Indo-Pacific stability.
- PM Modi hailed the India-ASEAN Comprehensive Strategic Partnership as a pillar of Act East Policy during a virtual summit.
- Concepts: Article 51 promotes international peace and cooperation; aligns with WTO commitments for equitable trade.
- Soft Power Diplomacy: Leverages diaspora and cultural exchanges, countering geopolitical shifts like US tariffs.
4. Industrial Growth Rebound Expected in H2FY26
SUBJECT: ECONOMY
- Bank of Baroda forecasts India’s industrial output to accelerate in H2FY26, driven by GST rationalization, festive demand, and easing inflation.
- September 2025 data showed 5.2% IIP growth, with infrastructure and consumer durables outperforming amid global uncertainties.
- NITI Aayog’s report highlights services sector’s 55% GVA contribution, pushing for innovation hubs to achieve Viksit Bharat @2047.
- CEA V. Anantha Nageswaran stated GDP growth could exceed 6.7% in FY26, supported by fiscal discipline and domestic resilience.
- EPFO data indicates rising withdrawals as economic stress signals, urging financial literacy reforms for informal workers.
- Concepts: Article 39(b) directs economic justice; links to SDG 8 for decent work and growth.
- Fiscal Federalism: Urban reforms under 74th Amendment address ₹1 lakh crore infrastructure gaps.
5. HAL-Russia MoU for SJ-100 Aircraft Production
SUBJECT: DEFENCE
- Hindustan Aeronautics Limited (HAL) signed an MoU with Russia’s United Aircraft Corporation to co-produce the SJ-100 regional jet in India, targeting domestic and export markets.
- The agreement, inked in Moscow on October 27, 2025, boosts civil aviation self-reliance with potential for 100+ aircraft annually by 2028.
- Indian Army awarded Neeraj Chopra honorary Lieutenant Colonel rank, integrating sports excellence with defence motivation.
- Border Roads Organisation advances Project Arunank, upgrading 200 km of strategic roads near LAC in Arunachal for faster troop mobility.
- INS Sahyadri joins Japan for JAIMEX-25, enhancing anti-submarine interoperability in the Indo-Pacific.
- Concepts: Article 355 ensures state defence; aligns with DAP 2020 for indigenous procurement.
- Strategic Autonomy: Strengthens Quad ties, deterring regional threats through joint exercises.
