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17 December 2025

Trump,Nss Europe's Crisis | Three Revolutions Reshaping Us Power | Stepping Stone | India And U.S: 2005 v/s 2025 | Lok Sabha: 100% FDI in Insurance | Rupee Hits 91, Asia’s Weakest | Students Wait, Teacher on Duty | Heed AQI Despair Growing Loud

TRUMP, NSS EUROPE’S CRISIS

KEY HIGHLIGHTS

Context of the News

  • The U.S. released a new National Security Strategy (NSS) reflecting a strong America- First, mercantilist orientation.
  • Europe is portrayed as a strategic problem, not a natural ally, with focus on cultural decline rather than security threats.
  • The document questions NATO’s expansion and signals reduced U.S. willingness to underwrite European security.
  • Indicates weakening of the post-1945 rules- based international order.

Key Points

  • Priority to the Western Hemisphere; limited strategic attention to other regions.
  • NATO described as not indefinitely expandable, indirectly affecting Ukraine’s prospects.
  • Europe urged to assume primary responsibility for its defence.
  • Criticism of EU migration policies, free speech norms, and supranational institutions.
  • Shift from global leadership to transactional engagement.

Static Linkages

  • National security doctrines as strategic guidance documents
  • Collective security vs balance of power
  • Alliance burden-sharing debates
  • Liberal international order after World War II
  • Sovereignty versus supranational governance

Critical Analysis

  • Positives
  • Forces Europe to pursue strategic autonomy  
  • Addresses defence burden imbalance Negatives
  • Weakens NATO’s deterrence credibility  
  • Creates geopolitical power vacuums
  • Undermines multilateral institutions
  • Encourages identity-based geopolitics

Way Forward

  • Develop credible European defence integration
  • Reform multilateral institutions for legitimacy  
  • Diversify strategic partnerships
  • Strengthen rule-based coalitions by middle powers

THREE REVOLUTIONS RESHAPING US POWER

KEY HIGHLIGHTS

Context of the News

  • The U.S. proposed restructuring the G20 into a smaller elite grouping, indicating dilution of inclusive global governance.
  • This coincided with the release of the 2025 U.S. National Security Strategy and a policy blueprint by a major conservative think tank.
  • Together, they reflect a deeper ideological shift in U.S. domestic governance, foreign policy, and global economic engagement.

Key Points

  • Domestic governance is being securitised through emphasis on ideological conformity and cultural cohesion.
  • Independent institutions and civic space are increasingly viewed as obstacles to political will.
  • Foreign policy is shifting from stable alliances to conditional, transactional partnerships.
  • Multilateral institutions are framed as constraints on sovereignty.
  • Global economic governance is moving toward a tiered system dominated by powerful states.
  • Economic adjustment costs are expected to be borne disproportionately by weaker economies.

Static Linkages

  • Rule-based international order vs power-based order
  •  Multilateralism and collective decision-making
  • Sovereignty and hierarchy in global systems  
  • Ethics of state responsibility and distributive justice
  • Protectionism, reshoring, and deglobalisation

Critical Analysis

  • Advantages
  • Enhances strategic autonomy  
  • Reduces external obligations
  • Aligns foreign policy with domestic priorities Concerns
  • Marginalises emerging economies  
  • Weakens trust in alliances
  • Undermines multilateral rule-making
  • Normalises unequal distribution of economic pain
  • Risks fragmentation of global order

Way Forward

  • Strengthen inclusive multilateral forums   
  • Promote reforms instead of exclusionary alternatives
  • Diversify economic and strategic partnerships  
  • Enhance South–South cooperation
  • Reaffirm ethical burden-sharing in global governance

STEPPING STONE

KEY HIGHLIGHTS
Context of the News
  • Nuclear power contributes ~3% of India’s electricity (2024–25).
  • Target: 100 GW nuclear capacity by 2047; ≥5 indigenous SMRs by 2033.
  • SHANTI Bill, 2025 introduced to replace Atomic Energy Act, 1962 and CLND Act, 2010.
  • Aim: enable domestic private participation while retaining state control over sensitive domains.

Key Points

  • Licences for nuclear activities can be granted to:
    • Government entities
    • Joint ventures
    • Other companies (conditional)
  • Ends NPCIL monopoly over plant operation.
  • State retains control over:
    • Fuel cycle
  • Proliferation-sensitive activities
  • Single statute for safety, licensing,enforcement, dispute resolution.
  • Operator liability capped at ₹3,000 crore.
  • Centre bears liability beyond cap; may assume full liability in public interest.
  • Mandatory insurance for operators; Centre’s installations exempt.
  • Supplier liability only via contract or intentional damage.
  • Regulator given statutory backing; appointments influenced by Centre/AEC.

Static Linkages

  • Union control over atomic energy.  Strategic sector liberalisation.
  • Absolute vs capped liability in hazardous industries.
  • Environmental protection and intergenerational equity.
  • Role of independent regulators.
  • Energy security and low-carbon transition.

Critical Analysis

  • Positives
    • Mobilises private domestic capital.
    • Shares construction and financial risk.
    • Reduces legal ambiguity and transaction costs.  
    • Faster approvals and commissioning.
    • Supports climate and energy security goals.
  • Concerns
    • Liability cap may be inadequate for large accidents.
    • Public exchequer bears residual risk.
    • Insurance exemption for Centre needs strong transparency.
    • Supplier accountability uneven across projects.
    • Regulator’s limited independence may affect trust and safety perception.

Way Forward

  • Periodic review of liability caps.
  • Stronger pooled insurance mechanisms.
  • Enhance regulator’s functional independence.  
  • Standardise supplier liability clauses.
  • Transparent safety audits and disclosures.
  • Clear SMR deployment roadmap with domestic manufacturing.
INDIA AND U.S: 2005 V/S 2025 
KEY HIGHLIGHTS
Context of the News
  • The 2025 U.S. National Security Strategy signals a shift from global leadership to burden reduction.
  • Earlier U.S. policy (2005) supported India’s rise as a strategic objective.
  • The new strategy adopts a transactional, interest-driven approach.
  • India is viewed mainly through Indo-Pacific and China-balancing priorities.
  • U.S. global engagement is increasingly selective and conditional.

Key Points

  • Shift from partnership to burden-sharing.
  • Global leadership seen as a cost, not responsibility.
  • India treated as a strategic means, not an end.  
  • Emphasis on minilateral platforms like the Quad.
  • Partners expected to manage regional security.
  • Strong inward-looking and domestic reassurance tone.

Static Linkages

  • Strategic autonomy in foreign policy.  
  • Balance of power theory.
  • Multipolar world order.
  • Regional security complexes.
  • Evolution of U.S. hemispheric doctrines.

Critical Analysis

  • Pros
    • Reinforces India’s strategic autonomy.
    • Expands diplomatic space for India.
    • Reduces reliance on external powers.
  • Cons
    • Instrumentalisation of India in China strategy.
    • Higher regional security burden on India.
    • Uncertainty in U.S. commitment credibility.

Way Forward

  • Strengthen internal economic and military capacity.
  • Pursue interest-based partnerships.  
  • Diversify strategic engagements.
  • Exercise regional leadership responsibly.
  • Preserve decision-making autonomy.

LOK SABHA: 100% FDI IN INSURANCE

KEY HIGHLIGHTS

Context of the News

  • Lok Sabha passed a Bill raising FDI in insurance from 74% to 100%.
  • Amends Insurance Act, 1938; LIC Act, 1956; IRDAI Act, 1999.
  • Objective: deepen insurance penetration, attract capital and technology.
  • Government assured full applicability of Indian laws and regulation by IRDAI.

Key Points

  • 100% FDI permitted without mandatory Indian joint venture.
  • Expected benefits: capital infusion, better products, global best practices.
  • Net Owned Fund for Foreign Reinsurance Branches cut from ₹5,000 cr to ₹1,000 cr.
  • Aim: expand domestic reinsurance capacity and level playing field.
  • IRDAI empowered to disgorge wrongful gains.
  • Penalty cap for intermediaries raised from ₹1 cr to ₹10 cr.
  • Govt infused ₹17,450 cr into PSU general insurers.
  • Listing of LIC, GIC Re, New India Assurance to improve governance and transparency.

Static Linkages

  • Insurance as a risk-management and long-term savings instrument.
  • Role of regulation in financial stability and consumer protection.
  • Liberalisation as part of post-1991 economic reforms.
  • Reinsurance for risk diversification and solvency support.

Critical Analysis

  • Advantages
    • Boosts capital availability in a capital-intensive sector.
    • Improves insurance penetration and product innovation
    • Enhances domestic risk-bearing capacity via reinsurance.
    • Stronger deterrence improves policyholder protection.
  • Concerns
    • Risk of foreign dominance in a social security sector.
    • Competitive pressure on PSU insurers.
    • Need for robust oversight to prevent mis- selling and profit repatriation risks.

Way Forward

  • Strengthen IRDAI’s supervisory and enforcement capacity.
  • Safeguard policyholder funds through strict solvency norms.
  • Improve PSU insurer efficiency and governance.
  • Align reforms with Insurance for All @2047.
RUPEE HITS 91, ASIA’S WEAKEST

KEY HIGHLIGHTS

Context of the News

  • Rupee breached ₹91/$, touching 91.14, its lifetime low in intraday trade.
  • Closed at 90.93, depreciating 16 paise from previous close.
  • Became the weakest Asian currency in 2025.
  • Fall driven by FPI outflows, global risk aversion, and India–US trade uncertainty.
  • RBI allowed controlled flexibility with limited intervention.

Key Points

  • FPIs withdrew $2.7 billion in early December, among the highest monthly outflows in 2025.
  • Rising US bond yields strengthened the dollar.
  • Expected Bank of Japan rate hike led to unwinding of yen carry trade.
  • Risk-off sentiment hit EM currencies, equities, and commodities.
  • Trade friction over agriculture market access added pressure.

Static Linkages

  • Managed floating exchange rate system in India.
  • Capital account volatility and exchange rate movements.
  • Interest rate differentials and capital flows.
  • Trade competitiveness and elasticity approach.
  • Forex reserves and RBI intervention tools.  
  • Macroeconomic trilemma.

Critical Analysis

  • Pros
    • Boosts export competitiveness.
    • Helps current account adjustment.  
    • Preserves forex reserves.
    • Improves market-based price discovery.
  • Cons
    • Raises imported inflation, especially crude oil.  
    • Increases external debt servicing burden.
    • May worsen volatility if global risks persist.

Way Forward

  • Continue calibrated intervention to curb excess volatility.
  • Promote currency hedging by corporates.
  • Reduce import dependence via export diversification.
  • Strengthen domestic financial markets.
  • Balance trade talks while protecting farm interests.

TEA GARDEN WORKERS NEED LAND

KEY HIGHLIGHTS

Context of the News

  • Assam Assembly passed the Assam Fixation of Ceiling on Land Holdings (Amendment) Act, 2025 on November 28.
  • Introduces Section 7A to enable settlement of land under tea garden labour lines in favour of resident workers.
  • Addresses long-pending demand for pattas for tea plantation workers, historically landless.
  • Tea plantations in Assam reflect intergenerational labour dependence and socio-economic marginalisation.

Key Points

  • Government empowered to acquire labour-line land and settle it with tea workers.
  • Section 17A allows government notifications to decide:
    • Conditions of land use and disposal.
    • Extent of land per worker family (not specified in Act).
  • 20-year lock-in on resale; transfer allowed only within same tea estate.
  • Aims to prevent commercial diversion of plantation land.
  • No clarity on:
    • Individual vs joint ownership.
    • Women’s land rights despite their workforce majority.
  • Absence of land survey or social mapping raises equity concerns.
  • RBI moving away from prolonged implicit peg around ₹83/$.
  • Strong growth and moderate inflation give policy space for depreciation.

Static Linkages

  • Right to property as a legal right under Article 300A.
  • Land reforms as tools for reducing structural inequality.
  • Asset ownership linked to social justice and empowerment.
  • Plantation labour shaped by colonial economic structures.
  • Gender-neutral laws may perpetuate inequality without safeguards.

Critical Analysis

  • Strengths
    • Improves housing security for tea workers.
    • Symbolic correction of plantation-era exclusion.
    • Resale restrictions protect against land alienation.
  • Limitations
    • Excessive reliance on executive discretion.
    • Risk of discrimination due to internal community hierarchies.
    • Lack of gender-specific safeguards.
    • Small plot sizes may reinforce labour dependence.

Way Forward

  • Conduct land surveys and social mapping before settlement.
  • Mandate joint or women-centric pattas.
  • Fix minimum land size enabling livelihood diversification.
  • Link land settlement with skill and livelihood programmes.
  • Ensure transparent grievance-redress mechanisms.

STUDENTS WAIT, TEACHER ON DUTY

KEY HIGHLIGHTS
Context of the News
  • Government school teachers are widely deployed as Booth Level Officers (BLOs) for electoral roll revision and verification.
  • Duties involve strict timelines, accuracy, and digital compliance, unrelated to teaching.
  • Teacher deployment coincides with academic sessions, disrupting classroom instruction.
  • Stress, health risks, and reported fatalities among teachers have raised concerns.
  • The practice reflects a long-standing view of teachers as general government staff.

Key Points

  • BLO work includes door-to-door verification and voter list updates.
  • Government school students disproportionately lose instructional time.
  • Private school teachers are largely exempt from such duties.
  • Teacher shortages amplify learning gaps in public schools.
  • Teaching is subordinated to administrative compliance.

Static Linkages

  • Constitutional mandate of free and fair elections
  • Legal framework on compulsory education  
  • Administrative use of local-level state functionaries
  • Child rights and continuity of learning
  • Classification of government employees

Critical Analysis

  • Merits:
    • Provides a literate, dependable workforce for elections.
    • Supports electoral integrity at the grassroots.
  • Concerns:
    • Disrupts education in government schools only.
    • Undermines professional status of teachers.
    • Creates unequal learning outcomes between public and private schools.
    • Long-term learning losses at foundational stages.

Way Forward

  • Restrict non-teaching duties to minimal, exceptional cases.
  • Develop a dedicated electoral support cadre.
  • Use technology and temporary trained staff for verification.
  • Mandate remedial teaching for academic loss.
  • Address teacher shortages and reinforce teaching as a profession.
HEED AQI DESPAIR GROWING LOUD

KEY HIGHLIGHTS

Context of the News

  • Delhi entered a “severe” air pollution phase with AQI > 400, without typical triggers like stubble burning.
  • Main cause: unfavourable meteorology (low wind speed, shallow mixing layer) trapping local emissions.
  • Visible citizen protest highlighted clean air as a democratic and health right.
  • Political response marked by short-term measures and debate over WHO air quality norms.
  • Call for parliamentary debate reflects the need for coordinated national action.

Key Points

  • Average annual AQI (2015–2025): ~235, far above safe limits.
  • Health burden: ~1.72 million pollution-related deaths in India (2022).
  • Major Delhi sources: Vehicles, construction dust, industry, road dust.
  • Institutional mechanisms: NCAP, GRAP, CAQM (for NCR).
  • Core issue: Local emissions + weak structural reforms, not just seasonal factors.

Static Linkages

  • Article 21: Right to life includes a clean environment.
  • Article 48A & 51A(g): State and citizen duty to protect environment.
  • Environmental principles: Precautionary principle, polluter pays, sustainable development.
  • Urbanisation: Transport growth, land-use change, negative externalities.

Critical Analysis

  • Positives
    • Institutional framework exists (CAQM, GRAP).
    • Rising public awareness and accountability pressure.
  • Concerns
    • Reactive, seasonal approach dominates policy.  
    • Weak Centre–State–local coordination.
    • Inadequate focus on transport reforms and urban planning.
    • Political deflection undermines evidence- based action.

Way Forward

  •  Move from emergency response to year-round mitigation.
  • Curb vehicular emissions; promote clean public transport.
  • Integrate scientific, real-time data into policy.  
  • Align urban growth with sustainable mobility.
  • Treat clean air as a public health and rights issue.