06 December 2025

• Russian President Vladimir Putin visited India; held bilateral talks with PM Modi at Hyderabad House.
• PM Modi praised Russia for taking ties to “new heights” and called the partnership a “dhruva tara” (pole star) — symbolizing stability.
• Visit took place after U.S. imposed tariffs on India for purchasing Russian energy.
• Sixteen MoUs signed covering worker mobility, fertilizers, media, and academic collaboration.
• India reiterated support for dialogue and diplomacy on the Ukraine conflict.

Key Points

• India–Russia partnership reaffirmed with a vision extending to 2030.
• Energy security highlighted as a major pillar; cooperation to expand in oil, gas, refining, petrochemicals.
• Russia offered collaboration on Small Modular Nuclear Reactors (SMRs); Kudankulam recognised as India’s largest nuclear plant.
• Both nations emphasized independent foreign policy and commitment to a multipolar world order.
• Russia criticised Western media for attempting to influence Ukraine-related negotiations.

Static Linkages

• India–Russia Special & Privileged Strategic Partnership (2000).
• Indo-Soviet Treaty (1971) laid historical foundations of trust.
• Nuclear cooperation under: Civil Liability for Nuclear Damage Act, 2010  2008 Nuclear Power Cooperation Agreement
• SMRs align with India’s Net Zero 2070 goals.
• Russia remains India’s key defence supplier (SIPRI trends).
• Foreign policy continuity based on strategic autonomy, Panchsheel, and NAM principles.

Critical Analysis

• Pros
  • Enhances energy diversification and long-term supply stability.
  • Advances clean energy via SMRs and nuclear cooperation.
  • Reinforces India’s strategic autonomy amid geopolitical contestation.
  • Supports connectivity and economic diplomacy.
• Challenges
  • Sanctions complicate payments and logistics.  
  • Balancing ties with both U.S. (Indo-Pacific) and Russia (Eurasia).
  • Possible delays in defence and nuclear supply chains.
  • Ukraine conflict poses diplomatic sensitivities.
• Stakeholder View
  • India: Stability + energy + defence reliability.  
  • Russia: Strategic pivot towards Asia.
  • West: Concern over India–Russia alignment.
  • Global South: India seen as a mediating power.

Way Forward

• Develop alternative payment systems (e.g., rupee-based trade).
• Fast-track joint projects in oil, LNG, nuclear energy.
• Expand cooperation in Arctic exploration, pharma, digital tech.
• Strengthen domestic defence manufacturing while maintaining strategic ties.
• Support peaceful negotiations on Ukraine through diplomacy.

REPO CUT MAY LOWER LOAN COSTS

KEY HIGHLIGHTS

• RBI’s MPC cut the repo rate by 25 bps to 5.25%, citing rapid disinflation.
• Headline inflation averaged 1.7% in Q2, below the 2% tolerance band.
• GDP growth rose to 8.2%, supported by festive spending and GST rationalisation.
• Under Governor Sanjay Malhotra, total cuts = 125 bps since Dec 2024.
• MPC maintained a neutral stance.

Key Points

• Repo Rate: Reduced from 5.5% to 5.25%.
• Standing Deposit Facility (SDF): Adjusted to 5.0%.
• Marginal Standing Facility (MSF) & Bank Rate: Adjusted to 5.5%.
• Reason for Rate Cut:
  • Inflation easing due to benign food prices.  
  • Underlying inflation pressures remain low; rise in precious metals inflation contributes ~50 bps.
  • Scope to support growth as inflation well below target.
• “Goldilocks Period”:
  • Inflation: 2.2% in H1 2025–26  Growth: 8% in H1
  • A rare combination of high growth + low inflation.
  • Policy Implications: Lower lending rates, cheaper credit, reduced deposit returns.

Static Linkages

• Inflation Targeting: India uses a Flexible Inflation Targeting (FIT) framework under the RBI Act, 1934 (amended in 2016); target = 4% ± 2%.
• MPC Composition: 6 members — 3 from RBI, 3 nominated by the Government; decisions by majority vote.
• Repo Rate Transmission: Integral to Liquidity Adjustment Facility (LAF) under RBI’s monetary operations.
• Phillips Curve: Short-term trade-off between inflation and unemployment/growth.
• Monetary Policy Tools: Quantitative (CRR, SLR, OMOs) & qualitative (moral suasion, credit rationing).
• Real vs Nominal Rates: Real interest = nominal rate − inflation; low inflation → higher real rates unless policy adjusts.

Critical Analysis

• Pros
  • Boosts credit flow, investment, and consumption.  
  • Supports growth amid global uncertainties.
  • Low inflation provides safe policy space.
• Cons
  • Falls in deposit rates hit household savers.
  • Inflation could rebound due to volatile food prices.
  • Inefficient transmission may dilute impact.
  • Risk of asset bubbles if liquidity rises too fast.
• Stakeholders
  • Consumers: Cheaper loans, lower deposit returns.  
  • Banks: Higher credit demand but margin pressure.  
  • Government: Reduced borrowing costs.

Way Forward

• Strengthen monetary transmission.  
• Build resilient food supply chains.
• Maintain data-driven policy stance.
• Align fiscal–monetary actions for stable growth.
• Push productivity reforms to sustain low-inflation growth.

INDIA-RUSSIA PLAN LOCAL-CURRENCY TRADE

• During President Putin’s visit for the 23rd Annual Summit, India and Russia agreed to expand national currency settlements (rupee– ruble).
• Aim to remove tariff, non-tariff, logistics and payment barriers to push bilateral trade beyond $100 billion before 2030.
• Current trade: $68.7 billion (2024–25).
• Focus on interoperable payment systems, CBDCs, and resolving energy-sector investment issues.

Key Points

• Joint commitment to rupee–ruble trade mechanisms to reduce dollar dependence.
• Agreement on CBDC platform interoperability and smoother financial messaging.
• Stress on a rules-based WTO-based trade order.
• Recognition of hurdles: logistics, insurance, market access, payment delays.
• Growing bottom-up private-sector interest in bilateral trade.
• Energy cooperation remains a strategic pillar.

Static Linkages

• Linked to BoP management, exchange rate regimes, Foreign Trade Policy, WTO principles (MFN, National Treatment).
• Digital settlement linked with PSA 2007 and RBI’s CBDC framework.
• India–Russia ties embedded in Strategic Partnership (2010) and long-standing defence- energy cooperation.

Critical Analysis

• Pros
  • Enhances strategic autonomy via de- dollarization.
  • May help reduce India’s trade deficit with Russia.
  • Strengthens digital financial cooperation.
  • Improves business confidence and market access.
• Cons / Challenges
  • Rupee–ruble imbalance persists due to import- heavy structure.
  • Sanctions complicate banks, insurance, logistics.
  • Rupee’s limited convertibility restricts wider adoption.
  • Slow removal of NTBs affects exporters.

Way Forward

• Accelerate rupee–ruble settlement infrastructure.
• Diversify India’s exports to Russia.
• Advance CBDC interoperability protocols.  
• Streamline logistics and insurance norms.
• Promote sectoral cooperation: pharma, IT, agriculture, energy.

• Govt withdrew the mandate requiring all mobile manufacturers to pre-install Sanchar Saathi from 2026.
• Rollback came within 48 hours after concerns over privacy, consent, surveillance, and unlimited data retention.
• Reuters broke the story; Apple refused implementation.
• Govt cited cybercrime rise (15.9L → 20.4L cases) as justification.
• Triggered wider debate on digital constitutionalism—protecting rights in digital governance.

KEY POINTS

• Digital constitutionalism = applying liberty, dignity, equality, privacy, accountability to digital systems.
• Governance now relies on biometrics, AI, algorithms, behavioural profiling with limited transparency.
• Surveillance has shifted to metadata, location tracking, biometrics, FRT.
• DPDP Act, 2023 criticised for broad govt exemptions and weak oversight.
• Algorithmic decisions affecting welfare, policing, loans remain opaque, with no appeal.
• India lacks a comprehensive surveillance law or mandatory audits.

STATIC LINKAGES

• Puttaswamy (2017): Privacy = Fundamental Right, subject to legality, necessity, proportionality.
• Articles 14, 19, 21 ensure equality, non-arbitrariness, dignity, and freedom from excessive state intrusion.
• Natural justice: right to explanation & appeal.
• Rule of Law: constrained state power + transparency

CRITICAL ANALYSIS

• Pros
  • Helps combat rising cybercrime.
  • Supports device tracking & public safety.
• Concerns
  • Mandate violated consent and created risk of surveillance overreach.
  • DPDP Act’s exemptions weaken protections.
  • Algorithmic systems amplify bias, violate natural justice.
  • No independent oversight or transparency mechanism.
• Constitutional View
  • Must satisfy proportionality, avoid chilling effect on expression.
  • Excessive surveillance breaches Articles 14, 19, 21.

WAY FORWARD

• Establish Digital Rights Commission for audits & grievances.
• Enact a comprehensive surveillance law with judicial warrants.
• Mandate algorithmic transparency, bias audits, explainability.
• Strengthen consent frameworks + reduce govt exemptions.
• Publish transparency reports; enhance digital literacy.
• Enforce strict purpose limitation and data minimisation.

CHILE’S COAL LESSON FOR INDIA

Context of the News

• India slipped 13 spots to 23rd in the CCPI 2025 at COP30, Brazil, due to slow coal phaseout despite rapid renewable expansion.
• Highlights the challenge of balancing energy security, jobs, and climate goals.
• Chile’s success offers comparative insights.

Key Points

• Coal provides 50%+ of India’s energy and 75% of electricity (2024); renewables form 50% of installed capacity but only 20% of actual generation.
• India doubled clean energy capacity (2021–25) yet continues to raise coal output.
• Chile cut coal power share from 43.6% → 17.5% (2016–24).
• Chile’s key actions:
  • Carbon tax ($5/tonne, 2014)
  • Emission norms raising plant costs by 30%  
  • Competitive renewable auctions
  • Large-scale storage systems
  • Coal phaseout by 2040
• Chile had fewer coal plants/workers and stronger market reforms, easing transition.
• India’s coal belts (Jharkhand, Chhattisgarh, Odisha, West Bengal) face high social risk.
• Climate impacts: 3–10% GDP loss by 2100; 14% higher infant mortality per 1 GW added coal capacity.
• TERI: Complete coal phaseout by 2050 needed for India’s Net Zero 2070.

Static Linkages

• Paris Agreement NDCs: emission intensity reduction, non-fossil energy expansion.
• Polluter Pays Principle under Indian environmental law.
• DMF under MMDR Act for local welfare and diversification.
• Directive Principles: worker welfare + environmental protection.

Critical Analysis

• Pros
  • Cuts emissions and pollution- related health costs
  • Creates new green industries and jobs
  • Strengthens long-term energy security
• Cons
  • Displacement of workers in coal regions
  • Grid stability challenges due to renewable intermittency
  • Loss of State revenues from coal
  • High upfront investment for storage & transmission
• Stakeholders
  • Centre: balancing coal dependence vs climate goals
  • States: revenue & job concerns  Industry: compliance costs
  • Communities: demand social protection
  • Global actors: push for faster decarbonisation + finance

Way Forward

• Time-bound coal phaseout roadmap and cancellation of new projects
• Retire oldest plants; improve efficiency
• Boost renewables + firm storage and upgrade transmission
• Introduce carbon pricing, clean dispatch rules, remove coal subsidies
• Establish Just Transition Fund; scale reskilling programmes
• Use DMF for diversification and local entrepreneurship
• Mobilise blended public–private finance.

MARKED FOR LIFE

Context of the News

• SC expressed shock that survivor Shaheen Malik has not received justice 16 years after her 2009 attack.
• CJI Surya Kant termed the delay a “mockery of the system”, urging a strong institutional response.
• Court asked Centre to consider an ordinance and sought data on all pending acid attack trials.
• Suggestion to set up special courts for day-to- day hearings.
• Malik’s PIL seeks recognition of survivors as persons with specified disabilities under the RPwD Act, 2016.
• NCRB 2023: 207 cases; West Bengal (57) highest, followed by UP (31).
• Despite BNS Section 124, conviction rates remain low.

Key Points

• Trial stagnated for years; transferred to Delhi only in 2013; final arguments ongoing.
• SG Mehta supported the plea, stressing equal ruthlessness in punishment.
• SC recalled the Laxmi vs Union of India directives on regulating acid sale and ensuring rehabilitation.
• BNS Section 124: 10 years–life imprisonment + fine for acid attacks/attempt.
• Survivors continue to face gaps in medical, legal, and rehabilitation support.

Static Linkages

• Article 21: Right to life, dignity, bodily integrity.  Article 39A: Free legal aid; equal justice.
• Speedy trial jurisprudence (Hussainara Khatoon).
• Disability rights framework under RPwD Act.  Ordinance-making power under Article 123.  
• Policing as State subject; criminal law in Concurrent List → coordination needed.

Critical Analysis

• Strengths:
  • SC push may accelerate reforms and improve trial timelines.
  • Special courts can reduce pendency and improve conviction quality.
  • Ordinance route can quickly plug regulatory gaps.
• Concerns:
  • Weak investigation and poor evidence collection prolong trials.
  • Acid sale restrictions poorly enforced.
  • Inconsistent compensation and medical support across states.
  • Lack of disability recognition excludes survivors from schemes.
  • High stigma, low reintegration opportunities.

Way Forward

• Constitute fast-track special courts with strict timelines.
• Real-time monitoring of acid sale licences.
• Uniform medical, surgical, and mental health coverage.
• Formal disability recognition for survivors.
• Strengthen forensic systems and witness protection.
• National survivor registry and standardized compensation norms.