1. India-UK Free Trade Agreement (FTA): The “Diwali” Deal Realized

Syllabus: GS II (International Relations – Bilateral Agreements); GS III (Economy – External Trade)

Context

On December 17, 2025, India and the United Kingdom formally signed the historic India-UK Free Trade Agreement (FTA) in London. This concludes nearly four years of negotiations that began in January 2022. The deal aims to double bilateral trade to $100 billion by 2030.

Detailed Multi-Dimensional Analysis

1. The Economic Dimension: Tariff Elimination & Market Access

• Goods Trade: The agreement eliminates tariffs on 98% of traded goods. For India, this is a massive win for labor-intensive sectors. Indian Textiles and Apparels (currently facing 9-12% duty) and Leather/Footwear will now enter the UK duty-free, leveling the playing field with competitors like Bangladesh (which enjoys LDC status).
• The “Whisky” Compromise: A major sticking point—UK Scotch Whisky—was resolved. India agreed to slash import duties from 150% to 75% immediately, with a glide path to 30% over 10 years. In return, the UK has granted India greater access for its Marine Products and Generic Pharmaceuticals, bypassing complex regulatory hurdles that previously acted as non-tariff barriers.
• Automobiles: The deal allows limited import of luxury UK cars (e.g., Jaguar Land Rover) at reduced tariffs, but protects India’s mass-market auto industry through strict Rules of Origin (RoO), ensuring that third-party goods (like Chinese parts assembled in the UK) do not flood India.

2. The Services Dimension: Mode 4 and “Innovation Bridge”

• Mobility of Professionals: Unlike the restrictive stance in the past, the UK has agreed to a “Young Professionals Scheme” expansion, allowing 5,000 Indian IT and healthcare professionals (nurses/doctors) annually to work in the UK for up to three years. This falls under Mode 4 of GATS (Movement of Natural Persons).
• Social Security Agreement: A critical breakthrough is the Totalization Agreement. Previously, Indian professionals in the UK paid social security taxes but couldn’t avail benefits if they returned before 10 years. Now, these contributions will be either refunded or merged with the Indian EPF system, saving Indian companies millions.

3. Strategic & Geopolitical Dimension

• Post-Brexit Realignment: For the UK, this is the biggest trade deal since leaving the EU (“Global Britain” strategy). For India, it reduces reliance on the US/EU markets and serves as a template for the ongoing India-EU FTA negotiations.
• Data Sovereignty: The deal includes a chapter on “Digital Trade” but explicitly respects India’s upcoming Digital India Act, ensuring that data localization norms for financial data remain non-negotiable.

Positives, Negatives, and Government Schemes

Dimension	Positives	Negatives/Challenges
Trade Balance	Boosts exports in textile, leather, and gems & jewellery sectors.	Potential surge in imports of high-end UK manufactured goods could widen the trade deficit initially.
Agriculture	Protection of sensitive sectors (dairy/wheat) maintained.	UK sanitary and phytosanitary (SPS) norms remain strict, potentially barring Indian agri-exports.
IPR	Strengthening of IPR regimes to attract UK tech investment.	Fear of “Evergreening” of patents by UK pharma giants, which could delay generic medicine entry in India.

• Related Schemes: RoDTEP (Remission of Duties and Taxes on Exported Products), PLI Scheme for Textiles.

Example/Case Study

• The “Tiruppur Model”: The textile cluster in Tiruppur (Tamil Nadu) is expected to see a 20% surge in orders within the first year of the FTA, as UK retailers shift sourcing from China to India due to the zero-duty advantage.

Way Forward

The immediate focus must be on Utilization Rates. historically, Indian exporters have underutilized FTAs (like with ASEAN) due to complex compliance norms. The Ministry of Commerce must launch “Export Helpdesks” to educate MSMEs on the new Rules of Origin.

Conclusion

The India-UK FTA is not just a trade deal; it is a “Living Bridge” that connects the Indian skilled workforce with British capital. It signifies India’s confidence in opening its markets, moving away from the protectionism of the past.

Mains Practice Question:

“The India-UK FTA represents a paradigm shift from ‘Protectionism’ to ‘Strategic Globalization’. Analyze the impact of this agreement on India’s labour-intensive sectors and the challenges regarding Intellectual Property Rights.”

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2. One Nation, One Election (ONOE) Bill: The Federalism Debate

Syllabus: GS II (Indian Constitution, Federalism, Elections)

Context

On December 17, 2025, the Union Law Minister introduced the Constitution (One Hundred and Ninth Amendment) Bill, 2025, popularly known as the “One Nation, One Election” Bill. The Bill seeks to synchronize elections for the Lok Sabha and all State Legislative Assemblies.

Detailed Multi-Dimensional Analysis

1. The Constitutional Overhaul (The “15 Amendments”)

• The Bill is based on the Ram Nath Kovind Panel Report and proposes amendments to Article 83 (Duration of Houses), Article 85 (Dissolution of Lok Sabha), and Article 172 (Duration of State Legislatures).
• The Transition Clause: The most controversial provision is the “Appointed Date.” The Bill proposes that all state assemblies elected after the “Appointed Date” (likely 2029) will have a truncated term to align with the next Lok Sabha cycle. This means a state government elected in 2027 might only serve for 2 years.

2. Economic vs. Democratic Cost

• Fiscal Prudence: The Election Commission estimates that simultaneous elections will save the exchequer ₹10,000 crore every five years. It also reduces the “Model Code of Conduct (MCC) Paralysis,” where development projects are stalled for months due to frequent state elections.
• The “Voter Judgement” Dilemma: Critics, citing the IDFC Institute Study, argue that when elections are held simultaneously, there is a 77% chance that a voter will choose the same party for both State and Centre. This undermines the federal structure, as national “waves” or “personality cults” could overshadow local issues (like water, sanitation, or regional identity).

3. Logistical Nightmares & Solutions

• EVM/VVPAT Shortage: The ECI requires 3x the current number of EVMs (approx. 30 lakh units) to hold simultaneous polls. The Bill allocates a ₹15,000 crore special fund for this procurement.
• Central Forces Deployment: Moving Central Armed Police Forces (CAPF) across the entire subcontinent simultaneously is a security nightmare. The Bill proposes a “Phased Synchronization”—holding elections in 3 large phases over 4 months, rather than a single day.

Positives, Negatives, and Government Schemes

Dimension	Positives	Negatives/Challenges
Governance	Continuity in policy implementation; no MCC disruptions.	Reduced accountability; governments might “sleep” for 4 years and work only in the 5th year.
Federalism	Promotes a unified national outlook.	Dilutes regional parties; State issues might get drowned in national rhetoric.
Legal	Reduces litigation regarding election timings.	Requires ratification by 50% of States (under Article 368), which is politically difficult.

• Related Constitutional Provisions: Article 324 (Superintendence of Elections), Article 356 (President’s Rule).

Example/Case Study

• Odisha (2019): Odisha held simultaneous Assembly and Lok Sabha elections. Interestingly, voters engaged in “Split Voting”—choosing BJD for the State and BJP for the Centre. This example is often cited by the government to counter the argument that ONOE kills voter discernment.

Way Forward

Instead of a rigid “One Cycle,” India could explore the Law Commission’s suggestion (2018) of a “Two-Cycle System”—one cycle coinciding with Lok Sabha and another mid-term cycle (2.5 years later) for the remaining states. This balances administrative efficiency with federal flexibility.

Conclusion

“One Nation, One Election” is administratively efficient but constitutionally disruptive. The challenge lies in ensuring that the “efficiency of the process” does not compromise the “accountability of the representative.”

Mains Practice Question:

” ‘One Nation, One Election’ is a double-edged sword that promises administrative efficiency at the potential cost of federal diversity. Critically examine the constitutional and political challenges in implementing this reform.”

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3. Gaganyaan G-1 Success: The Final Step to Human Spaceflight

Syllabus: GS III (Science & Technology – Space Awareness)

Context

On the morning of December 17, 2025, ISRO successfully recovered the Crew Module (CM) of the Gaganyaan G-1 Mission from the Arabian Sea. This was the first “Full-Up” uncrewed test flight, validating the human-rating of the launch vehicle and the life support systems.

Detailed Multi-Dimensional Analysis

1. Technological Mastery: The Human-Rated LVM3 (HLVM3)

• The mission used the HLVM3, a modified version of the GSLV Mk-III. The critical success was the performance of the CE-20 Cryogenic Engine, which had been re-engineered for “Human Rating” (higher safety margins and redundancy).
• Orbital Module performance: The spacecraft orbited Earth for 24 hours at an altitude of 400 km. The Environmental Control and Life Support System (ECLSS) successfully maintained a “shirt-sleeve environment” (25°C, oxygenated) inside the cabin, proving it can sustain human life.

2. The “Vyommitra” Role

• The humanoid robot Vyommitra was onboard. Unlike a passive dummy, she performed tasks like flipping switches, reading monitor panels, and simulating human metabolic heat. Her data logs (heart rate simulation, radiation exposure) confirmed that the cabin environment is safe for the actual astronauts (Gaganauts) scheduled to fly in 2026.

3. Strategic Implications: The Space Station Goal

• This success is the foundational stone for the Bharatiya Antariksha Station (BAS) planned for 2035. Mastering “Re-entry and Recovery” technology is essential for any nation aspiring to have a permanent presence in space.
• Space Diplomacy: With this, India joins the elite club (USA, Russia, China) capable of independent human transport. This reduces reliance on foreign agencies (like NASA/Roscosmos) for training and opens doors for India to launch astronauts from “Global South” nations in the future.

Positives, Negatives, and Government Schemes

Dimension	Positives	Negatives/Challenges
Technology	Mastery of Re-entry thermal protection (ablative tiles withstood 2000°C).	High cost; some critics argue funds could be better used for satellite constellations (agriculture/disaster).
Economy	Boosts the private space sector (IN-SPACe); 70% of components were sourced from Indian MSMEs.	Risk of delays; any failure in G-1 would have pushed the manned mission back by years.
Soft Power	Positions ISRO as a low-cost, high-reliability provider for human spaceflight.	Space debris management remains a concern for Low Earth Orbit (LEO) missions.

• Related Schemes: Indian Space Policy 2023, IN-SPACe initiatives.

Example/Case Study

• The Crew Escape System (CES): During the ascent phase, ISRO simulated a “abort scenario” electronically. The system’s response time was less than 500 milliseconds, proving that if the rocket fails, the astronauts can be ejected to safety instantly.

Way Forward

With G-1 successful, ISRO must now focus on G-2 (carrying a pressurized crew) and the docking technologies required for the future space station. Private sector participation must be scaled up to handle routine manufacturing so ISRO can focus on R&D.

Conclusion

Gaganyaan G-1 is not just a test flight; it is India’s declaration that it is no longer just a “satellite launcher” but a “Space Power” capable of expanding the human footprint in the cosmos.

Mains Practice Question:

“The success of the Gaganyaan G-1 mission marks a shift from ‘robotic’ to ‘human’ space exploration for India. Discuss the technological challenges of Human Rated Launch Vehicles and the strategic significance of this mission for the Bharatiya Antariksha Station.”

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4. Supreme Court’s Historic Ruling: AI as “Tool,” Not “Creator”

Syllabus:

• GS Paper III: Awareness in fields of IT, Computers, Robotics; Issues relating to Intellectual Property Rights (IPR).
• GS Paper II: Structure, organization and functioning of the Judiciary; Government policies for development in various sectors.

Context

On December 17, 2025, a Constitution Bench of the Supreme Court delivered a landmark judgment in the case Creative India Union vs. Generative AI Association. The Court ruled that “Copyright can only subsist in works created by a human being,” effectively denying copyright protection to works generated autonomously by Artificial Intelligence. However, it allowed for a “Hybrid Model” where human-aided AI works can be protected if there is significant human input.

Main Body: Multi-Dimensional Analysis

1. The Jurisprudential Core: “Modicum of Creativity”

• The Doctrine of Authorship: The Court relied heavily on the interpretation of Section 2(d) of the Copyright Act, 1957. It reiterated the principle from the Eastern Book Company vs. D.B. Modak (2008) case, stating that copyright requires a “minimal degree of creativity” derived from human intellect.
• The “Sweat of the Brow” Rejection: The Bench clarified that mere “prompt engineering”—typing a text instruction into an AI model—does not constitute enough “labour and skill” to claim authorship. The AI is the “brush,” not the “painter.” Unless the human user demonstrates “Significant Creative Intervention” (e.g., editing, refining, or using the AI output as a base for a larger collage), the raw output is Public Domain.
• Legal Personality of AI: The judgment definitively settled the debate on whether an AI can be a “legal person.” The Court ruled that AI lacks “Intent” and “Consciousness,” which are prerequisites for holding rights and duties under Indian law. Therefore, an AI cannot be named as an “Author.”

2. Economic Impact on the Creative Economy

• Protection for Artists: This is a massive victory for the Creative India Union (representing graphic designers, writers, and musicians). By denying copyright to purely AI-generated content, the Court has devalued mass-produced AI content. Corporations can no longer churn out thousands of AI posters and sue people for copying them. This preserves the Premium Value of human-created art.
• The “Training Data” Liability: In a separate but related observation, the Court directed the government to frame rules regarding the “Fair Use” of copyrighted material used to train these AI models. The Court hinted that scraping Indian copyrighted data (e.g., Bollywood music or Dalit literature) without royalty payments violates the “Moral Rights” of authors under Section 57.

3. Global Comparative Analysis

• India vs. USA: This ruling aligns India with the US Copyright Office, which famously rejected copyright for the AI-generated comic Zarya of the Dawn.
• India vs. EU: While the EU AI Act focuses on “Risk Classification” (high risk vs. low risk), the Indian judgment focuses on “Ownership.” The Indian approach is seen as more Pro-Human Labour, crucial for a country with a massive workforce in the creative and IT services sector.

4. Technological Nuance: The “Black Box” Problem

• The judgment acknowledged the difficulty in distinguishing between “AI-assisted” and “AI-generated” work. It mandated that the Copyright Office must now introduce a “Disclosure Norm”. Applicants must declare if AI was used and provide a “step-by-step log” of human intervention to claim copyright.

Positives, Negatives, and Government Schemes

Dimension	Positives	Negatives/Challenges
Legal	Clarity on ownership; prevents legal clutter where machines sue humans.	Burden of proof lies on the creator to prove “human input,” which is subjective and hard to quantify.
Economic	Protects the livelihoods of human artists from being undercut by cheap, automated content.	May discourage investment in Indian “Generative AI” startups who wanted to monetize their automated outputs.
Ethical	Upholds the sanctity of human creativity and the “soul” of art.	Does not solve the issue of “Deepfakes” or ethical usage, only ownership.

• Related Schemes/Laws: National Strategy for AI (NITI Aayog), The Digital India Act (upcoming).

Examples

• The “Bollywood Music” Scenario: Under this ruling, if a music company uses an AI to generate a remix of an old song without human composition, they cannot stop a rival company from copying that remix. However, if a human composer uses AI to generate a drum beat but composes the melody herself, the song is copyrightable.

Way Forward

The Department for Promotion of Industry and Internal Trade (DPIIT) must now upgrade the Copyright Rules to include “AI Disclaimers.” Furthermore, a “Data Royalty Mechanism” needs to be established so that when AI companies scrape Indian data to build their models, the original human creators get a share of the revenue (similar to the Getty Images model).

Conclusion

The Supreme Court has drawn a “Lakshman Rekha” between Computation and Creativity. By ruling that the “machine is the tool, not the talent,” India has taken a humanist stance in the age of automation, ensuring that the fruits of intellectual property remain with the intellect—the human mind.

Practice Mains Question:

” ‘The machine may be the brush, but it is not the painter.’ In light of the recent Supreme Court judgment, discuss the challenges in determining authorship in the age of Generative AI. How does this impact the Indian creative economy?”

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5. Launch of the Indian Carbon Market (ICM): “Cap and Trade” Goes Live

Syllabus:

• GS Paper III: Conservation, Environmental Pollution and Degradation; Indian Economy (Green Economy).
• GS Paper II: Government policies and interventions for development in various sectors.

Context

On December 17, 2025, the Bureau of Energy Efficiency (BEE) formally operationalized the Carbon Credit Trading Scheme (CCTS), creating India’s first domestic “Compliance Carbon Market.” This integrates the earlier “PAT Scheme” (Perform, Achieve, Trade) and “REC” (Renewable Energy Certificates) into a single, unified carbon marketplace.

Main Body: Multi-Dimensional Analysis

1. Mechanism: From “Energy Efficiency” to “Carbon Intensity”

• The Transition: Previously, under the PAT scheme, industries traded “Escerts” based on energy savings. Now, they will trade “Carbon Credit Certificates” (CCCs). One CCC represents 1 tonne of CO2 equivalent reduced or avoided.
• The “Cap and Trade” Model: The Ministry of Environment, Forest and Climate Change (MoEFCC) has set specific Emission Intensity Caps for 13 energy-intensive sectors (including Steel, Cement, Thermal Power, and Fertilizers).
  • Over-achievers: Companies that emit less than their cap earn CCCs.
  • Under-achievers: Companies that emit more than their cap must buy CCCs from the market to offset their excess.
• Exchange-Based Trading: These certificates will be traded on the Indian Energy Exchange (IEX) and Power Exchange of India (PXIL), providing real-time price discovery for carbon.

2. The “EU-CBAM” Shield

• Strategic Defense: A primary driver for the ICM is the European Union’s Carbon Border Adjustment Mechanism (CBAM), which imposes a “Carbon Tax” on imports from countries without a carbon price.
• Price Parity: By establishing a domestic price for carbon, Indian exporters (like Tata Steel or JSW) can claim a rebate on the EU tax. They can argue, “We have already paid for our carbon in India.” This prevents the flight of capital from India to the EU treasury.

3. The Voluntary Market Integration

• Unlike the compliance market (mandatory for big industry), the ICM also opens a window for “Voluntary Buyers”—like IT companies (Infosys/Wipro) or airlines—who want to claim “Net Zero” status. They can buy surplus credits from the designated sectors or from “Green Projects” (e.g., afforestation or biogas projects) verified under the scheme.

Positives, Negatives, and Government Schemes

Dimension	Positives	Negatives/Challenges
Economic	Incentivizes low-carbon technology; turns “Decarbonization” into a revenue stream.	High compliance cost for MSMEs (who are currently exempt but may be included later).
Environmental	Helps India meet its NDC target (45% reduction in emission intensity by 2030).	Risk of “Greenwashing”—if the “Cap” is set too high (loose), the market price of carbon will crash, making it cheaper to pollute than to clean up.
Administrative	Creates a transparent, digital ledger of emissions.	Institutional capacity of BEE to verify emissions of thousands of factories is currently low.

• Related Schemes: National Mission for Enhanced Energy Efficiency (NMEEE), Green Credit Programme (GCP).

Example/Case Study

• The Cement Sector: Indian cement companies are among the most energy-efficient globally. Under the CCTS, a company like UltraTech (which uses waste heat recovery) is expected to be a “Net Seller” of credits, generating millions in revenue, while older, coal-dependent cement plants will be “Net Buyers.” This creates a financial Darwinism favoring green tech.

Way Forward

• Floor and Ceiling Price: To prevent market volatility, the Central Electricity Regulatory Commission (CERC) must set a minimum (floor) and maximum (ceiling) price for carbon credits.
• Inter-operability: In the long run (post-2030), India should aim to link the ICM with other global markets (like the EU ETS or Singapore’s market) to allow cross-border trading of credits.

Conclusion

The operationalization of the ICM implies that pollution now has a Price Tag. It shifts the climate discourse in corporate India from “Corporate Social Responsibility (CSR)” to “Balance Sheet Liability.”

Practice Mains Question:

“The Indian Carbon Market (ICM) aims to harmonize economic growth with climate goals. Explain the ‘Cap and Trade’ mechanism and discuss how the ICM serves as a strategic tool against global protectionist measures like the EU-CBAM.”

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6. PM-KISAN 2.0: Including the “Invisible” Tenant Farmer

Syllabus:

• GS Paper III: Agriculture – Issues related to Direct Benefit Transfer; Land Reforms; Inclusive Growth.
• GS Paper II: Welfare schemes for vulnerable sections of the population.

Context

On December 17, 2025, the Union Cabinet approved a major expansion of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). For the first time since its inception in 2019, the scheme will now extend its ₹6,000 annual benefit to Tenant Farmers and Sharecroppers (Batadars), who were previously excluded because they did not own land titles.

Main Body: Multi-Dimensional Analysis

1. The “Ownership vs. Cultivator” Dilemma

• The Historical Gap: The original PM-KISAN was linked to land records (RoR). This meant that the landowner (often an absentee landlord living in the city) received the cash support, while the actual cultivator (the tenant who bore the input costs of seeds/fertilizers) got nothing.
• Scale of Exclusion: According to the NSSO Situation Assessment Survey, nearly 17-20% of operational holdings in India are cultivated by tenant farmers. In states like Andhra Pradesh and Bihar, this number is closer to 30%. Their exclusion was a major criticism of the scheme’s equity.

2. The New Mechanism: “Digital Verification”

• Self-Declaration + Panchayat Validation: Since tenant farmers lack formal leases (most tenancy is oral to avoid legal complications), the new guidelines propose a “Jan-Dhan-Aadhaar-Panchayat (JAP)” model.
  • The tenant submits a self-declaration on the PM-KISAN Portal.
  • This is counter-verified by the Gram Sabha/Panchayat or through a “Cultivator Certificate” issued by the state revenue department (similar to the Loan Eligibility Cards in Andhra Pradesh).
• Geo-Referencing: The AgriStack database will be used to map the farmer to the plot they are cultivating using GPS coordinates, ensuring that two people (owner and tenant) do not claim benefits for the same input cost, or creating a separate “Tenant Support Component.”

3. Fiscal and Political Implications

• Fiscal Burden: Adding an estimated 2 crore tenant farmers will increase the subsidy bill by approx ₹12,000 crore annually. However, economists argue this has a higher “Multiplier Effect” because tenant farmers have a higher marginal propensity to consume—they will spend this money immediately on farming inputs, boosting the rural economy.
• Political Economy: This move is seen as a counter to state-level schemes like Odisha’s KALIA and Telangana’s Rythu Bandhu, which faced similar debates. By capturing the tenant base, the Centre strengthens its direct connect with the most marginalized agrarian class.

Positives, Negatives, and Government Schemes

Dimension	Positives	Negatives/Challenges
Equity	Directs public money to the actual producer, not the rent-seeker.	Landlord Resistance: Landowners fear that registering tenants might lead to them claiming permanent occupancy rights (adverse possession).
Productivity	Provides working capital to tenants who usually rely on high-interest loans (30-40%) from moneylenders.	Identification Errors: High risk of “Ghost Beneficiaries” without formal land titles as proof.
Data	Creates the first comprehensive database of “Real Cultivators” in India.	Friction between State Revenue Depts and Centre over verifying oral tenancy.

• Related Schemes: AgriStack, Digital Agriculture Mission, Model Agricultural Land Leasing Act, 2016.

Example/Case Study

• The “KALIA” Precedent: Odisha’s KALIA scheme was the pioneer in including landless households. The Centre’s move is effectively “Nationalizing the KALIA model,” acknowledging that land ownership is a poor proxy for agricultural distress.

Way Forward

To make this work, the Centre must incentivize states to implement the Model Agricultural Land Leasing Act, 2016. This Act legalizes land leasing, protecting the owner’s title while giving the tenant formal status to access credit and subsidies. Without legalizing tenancy, the “fear of losing land” will make landlords block their tenants from registering.

Conclusion

PM-KISAN 2.0 shifts the focus from “Landed Gentry” to “Landless Peasantry.” It is a tacit admission that Indian agriculture is run by tenants, and supporting them is crucial for food security.

Practice Mains Question:

“Linking welfare benefits solely to land titles ignores the reality of Indian agriculture, where tenancy is widespread yet informal. Discuss the challenges and significance of extending PM-KISAN benefits to tenant farmers.”