Daily Current Affairs- 31st December 2025

Daily Current Affairs- 31st December 2025

8th Pay Commission Effective Jan 01, 2026: Will Central Govt Employees' Salary Really Increase?

In the News: The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the formation of the 8th Central Pay Commission in January 2025, with recommendations expected to take effect from January 1, 2026. The commission will review and revise pay, pension, and service conditions for approximately 50 lakh (4.8-5 million) central government employees and 65-68 lakh pensioners, keeping fiscal prudence and economic conditions in view. The commission, comprising a Chairperson, one part-time member, and a Member-Secretary, has 18 months to submit its report after being formally constituted.

Key Points:

• Cabinet Approval and Formation: The Union Cabinet approved the Terms of Reference (ToR) for the 8th Central Pay Commission in January 2025, with official notifications released around November 2025. Information and Broadcasting Minister Ashwini Vaishnaw confirmed that the government would soon appoint a chairperson and two members to the panel. The commission will be constituted as a temporary body to review and recommend comprehensive revisions in the pay structure, pensions, and service conditions of central government employees.
• Official Effective Date vs Actual Implementation: While January 1, 2026 is the official effective date, there is a critical distinction between when the commission "takes effect" and when employees actually receive revised salaries. The 7th Pay Commission is scheduled to conclude on December 31, 2025, making January 1, 2026 the natural start date for the 8th Pay Commission. However, the commission needs 18 months from its formal constitution to submit its report, followed by government review, Cabinet approval, and implementation.
• Beneficiaries - Scale and Scope: The 8th Pay Commission will benefit approximately 48.62 to 50 lakh central government employees, including defence personnel, and around 65 to 67.85 lakh pensioners, including those from defence services. This totals over 1 crore (10 million+) individuals whose financial lives will be directly impacted. The employee base includes all categories: Group D (entry-level staff), Group C (staff up to ministerial level), Group B (section officers to under secretaries), and Group A officers (deputy secretaries to cabinet secretary).
• Pay Matrix and Level Structure - 18 Levels: Central government employees are classified into 18 pay levels, which form the foundation of the pay matrix: Level 1: Entry-level or Group D staff (current minimum Rs. 18,000). Levels 2-9: Group C employees (staff to ministerial positions). Levels 10-12: Group B officers (section officers to under secretaries). Levels 13-18: Group A officers (deputy secretaries to cabinet secretary at Level 18). Each level has multiple stages representing incremental progression over years of service. The 8th Pay Commission will revise the pay matrix for all 18 levels, with the quantum of increase varying by level. Historically, lower levels receive proportionally higher increases to address income disparity, while higher levels receive larger absolute increases but lower percentage gains. The complete revised pay matrix will be announced only after the commission submits its report and the government approves recommendations.
• Comparison with Previous Pay Commissions: 7th Pay Commission (2016): Fitment factor 2.57, minimum salary Rs. 18,000, implemented after ~18 months, 10-year cycle. 6th Pay Commission (2006): Fitment factor 1.86, 10-year cycle. Historical Pattern: Each commission typically increases the fitment factor, reflecting cumulative inflation and economic growth over the decade. The 10-year cycle is well-established, with 1996, 2006, 2016, and now 2026 following this pattern. The 8th Pay Commission is expected to continue this tradition, though fiscal pressures may result in moderation compared to 7th CPC's generous 2.57 factor. The government's approach balances maintaining parity with inflation and purchasing power while ensuring long-term fiscal sustainability.

Suspension of Sentence in Child Protection Cases

In the News: The Supreme Court of India stayed the Delhi High Court's December 23, 2025 order that had suspended the life sentence of former BJP MLA Kuldeep Singh Sengar in the 2017 Unnao rape case involving a minor. A three-judge vacation bench led by Chief Justice of India Surya Kant, along with Justices J.K. Maheshwari and Augustine George Masih, found that the matter raised substantial questions of law regarding sentencing under the Indian Penal Code and the Protection of Children from Sexual Offences (POCSO) Act, 2012.

Key Points:

• Background of Unnao Rape Case (2017): In June 2017, a minor girl (aged 15 years and 10 months) from Unnao, Uttar Pradesh, was allegedly kidnapped and raped by Kuldeep Singh Sengar, then a sitting four-time MLA from the Bharatiya Janata Party. The victim's family faced severe intimidation, including the custodial death of her father in 2018. The case gained national attention only after sustained public protests by the victim, including an attempted self-immolation outside the Chief Minister's residence. The Allahabad High Court observed in 2018 that "the law and order machinery and government officials were directly in league and under the influence of Kuldeep Singh."
• Delhi High Court's December 23, 2025 Decision: A Division Bench of Justices Subramonium Prasad and Harish Vaidyanathan Shankar suspended Sengar's life sentence and granted him conditional bail. The High Court held that the POCSO Act does not define "public servant" and that Section 2(2) of the Act expressly imports definitions from the Indian Penal Code. Since Section 21 of the IPC does not include a Member of the Legislative Assembly within the definition of "public servant," the court ruled that aggravated offence provisions under Section 5(c) of POCSO and Section 376(2) of IPC were not applicable.
• High Court's Reasoning on Sentence Duration: The Delhi High Court noted that Sengar had already undergone 7 years and 5 months of incarceration as of November 30, 2025. Applying the law as it stood before the 2019 amendment to POCSO (which introduced a minimum sentence of 20 years), the court held that the minimum punishment under Section 4 of POCSO was 7 years, which Sengar had already served. The court stated it would not examine the merits of whether Sengar could be held guilty under Section 3 of POCSO (simple penetrative sexual assault) at the interim stage.
• Strict Bail Conditions Imposed by High Court: The Delhi High Court ordered Sengar's release on bail subject to strict conditions including: furnishing a personal bond of ₹15 lakh with three sureties, staying at least five kilometers away from the survivor's residence in Delhi, refraining from threatening the survivor or her mother, and weekly reporting requirements. The court warned that any violation would result in cancellation of bail.
• Section 42A of POCSO Act - Overriding Effect: Solicitor General Mehta drew attention to Section 42A of the POCSO Act, which states that provisions of the Act shall have overriding effect over other laws in case of any inconsistency. He argued that the Delhi High Court did not deal with this provision at all, which was a critical oversight in interpreting the application of "public servant" definition.
• Section 5(c) of POCSO Act - Aggravated Offences: Section 5 of the POCSO Act lists circumstances under which penetrative sexual assault of a child becomes aggravated penetrative sexual assault, including when committed by: a public servant, police officer, member of armed forces or security forces, management or staff of hospital, jail staff, or any person in a position of trust or authority. Aggravated penetrative sexual assault under Section 6 attracts a minimum punishment of 20 years in jail (after 2019 amendment) and can extend to life imprisonment or death penalty.
• Jamanlal v. State of Rajasthan (2025) Precedent: In a recent 2025 judgment, the Supreme Court held that "a few lacunae or loopholes here or there in the case of the prosecution cannot be a ground to suspend the sentence, and that the Court has to arrive at a prima facie satisfaction that the conviction may not be sustainable." This principle was violated by the Delhi High Court which granted suspension based solely on the non-applicability of Section 5(c) without examining the sustainability of conviction under Section 3/4 POCSO.
• Section 376(2)(i) IPC - Rape by Person in Position of Authority: The Supreme Court questioned whether the Delhi High Court had adequately examined Sengar's conviction under Section 376(2)(i) of the IPC, which relates to rape by a person in a position of authority. This provision, separate from the "public servant" category, also carries enhanced punishment and may apply to legislators exercising dominance over constituents.

Rakesh Aggarwal Gets Additional Charge as NIA Chief

In the News: The Union Ministry of Home Affairs (MHA) assigned the additional charge of Director General of the National Investigation Agency (NIA) to senior IPS officer Rakesh Aggarwal following the premature repatriation of the incumbent DG, Sadanand Vasant Date, to his parent Maharashtra cadre. As per an Office Memorandum (OM) issued by the MHA on Monday, Aggarwal, a 1994-batch Indian Police Service officer of Himachal Pradesh cadre currently serving as Special Director General of the NIA, will hold the additional charge of NIA chief until the appointment of a regular incumbent or until further orders, whichever is earlier.

Key Points:

• Additional Charge Assignment - December 30, 2025: The Union Ministry of Home Affairs issued an Office Memorandum (OM) on Monday, December 30, 2025, assigning the additional charge of the National Investigation Agency Director General to Rakesh Aggarwal, IPS (HP:1994), Special Director General, NIA.
• Appointment as Special Director General - September 29, 2025: Rakesh Aggarwal was appointed as the Special Director General of the NIA on September 29, 2025, on an in-situ basis. An in-situ appointment means that his existing position as Additional Director General (ADG) was temporarily upgraded to the Special Director General rank without requiring him to move to a different post. The in-situ promotion recognized Aggarwal's contributions and capabilities while providing the NIA with additional leadership capacity at the senior management level.
• Experience in High-Profile Cases: During his tenure at the NIA, Rakesh Aggarwal has been associated with several high-profile cases involving terror financing, radicalization networks, and cross-border linkages. His work has encompassed investigations into cases related to Islamic State (ISIS) recruitment modules, Lashkar-e-Taiba (LeT) networks, Jaish-e-Mohammed (JeM) operations, and other terrorist organizations operating in and around India. He has expertise in tracking terror funding channels, including hawala networks and cryptocurrency-based financing.
• About the National Investigation Agency (NIA): The National Investigation Agency is India's premier counter-terrorism investigation agency, established under the National Investigation Agency Act, 2008, in response to the 26/11 Mumbai terrorist attacks. The agency was constituted to combat terrorism and other national security threats in a coordinated and effective manner. NIA has jurisdiction across India and can investigate terrorism-related offenses, including those committed outside India (subject to international treaties and agreements). The agency's headquarters is located in New Delhi, with regional offices in major cities including Mumbai, Kolkata, Guwahati, Kochi, Hyderabad, Jammu, Lucknow, and Raipur. NIA investigates cases related to: terrorism, bomb blasts, terror financing, radicalization and recruitment by terrorist organizations, cross-border terrorism, narco-terrorism, fake currency circulation, cyber terrorism, and offenses under the Unlawful Activities (Prevention) Act (UAPA).

India Becomes the World’s 4th Largest Economy, Surpasses Japan

In the News: The Indian government officially announced in its year-end economic review that India has surpassed Japan to become the world's fourth-largest economy with a nominal GDP of $4.18 trillion in calendar year 2025. This historic milestone, confirmed by NITI Aayog CEO B.V.R. Subrahmanyam citing International Monetary Fund data, marks a significant shift in the global economic order, with India now trailing only the United States, China, and Germany. The achievement represents India doubling its GDP from $2 trillion in 2014 to over $4 trillion in 2025, positioning the nation as the fastest-growing major economy globally with real GDP growth of 8.2% in Q2 FY 2025-26.

Key Points:

• Official Announcement and GDP Figures: The Indian government released its year-end economic review on December 30, 2025, confirming India's GDP reached approximately $4.18-4.19 trillion in 2025, marginally ahead of Japan's $4.18 trillion. The IMF's April 2025 World Economic Outlook projected India's nominal GDP at $4.187 trillion for 2025, surpassing Japan's $4.186 trillion. Official confirmation will depend on final annual GDP figures released in 2026, though IMF projections suggest the crossover occurred in 2025.
• Exceptional GDP Growth Performance: India's real GDP grew 8.2% in Q2 FY 2025-26 (July-September 2025), up from 7.8% in Q1 and 7.4% in the last quarter of the previous fiscal year, marking a six-quarter high. For the first half of FY 2025-26 (April-September 2025), India recorded 8.0% year-on-year growth, significantly improving from 6.1% in the corresponding period of the previous year. The Reserve Bank of India revised its GDP growth forecast for FY 2025-26 upward to 7.3% from the earlier estimate of 6.8%.
• Regulatory and Business Environment Improvements: The government removed over 47,000 outdated compliances, significantly easing the cost of doing business. The Export Promotion Mission was approved with an outlay of ₹25,060 crore for FY 2025-26 to FY 2030-31 to boost trade competitiveness. The India-UK Free Trade Agreement concluded in July 2025 provides duty-free access on 99% of Indian exports. Government e-Marketplace (GeM) achieved over ₹15 lakh crore in transparent public procurement orders.
• International Institutional Endorsements: The World Bank projects 6.5% growth for India in 2026, while Moody's highlights India as the fastest-growing G20 economy with growth of 6.4% in 2026 and 6.5% in 2027. The IMF raised its projections to 6.6% for 2025 and 6.2% for 2026. The OECD forecasts 6.7% growth in 2025 and 6.2% in 2026. S&P expects 6.5% growth in FY 2025 and 6.7% in FY 2026. The Asian Development Bank lifted its 2025 forecast to 7.2%, while Fitch raised its FY26 projection to 7.4%, citing strong consumer demand.
• Employment and Skill Development: The PM Viksit Bharat Rozgar Yojana targets employment for 3.5 crore youth by incentivizing new employment between 2025 and 2027. Skill India Mission has trained over 6 crore citizens through PMKVY, JSS, and apprenticeship schemes. Unemployment is falling with improved job creation across sectors. The labor force participation rate needs to increase from current 56.4% to above 65% to sustain long-term growth.

ISRO Tests Upgraded SSLV Third Stage Successfully

In the News: The Indian Space Research Organisation (ISRO) successfully conducted a static test of an improved version of the third stage (SS3) of the Small Satellite Launch Vehicle (SSLV) at the Solid Motor Static Test Facility of Satish Dhawan Space Centre, Sriharikota, Andhra Pradesh. The upgraded third stage features a carbon-epoxy motor case that has significantly reduced the stage's mass, thereby improving the payload performance of SSLV by 90 kg. The test, which lasted 108 seconds, validated all parameters as matching predictions, qualifying the improved SS3 motor for induction in flight operations. This achievement marks a significant milestone in India's push toward faster and more efficient small satellite launches with quick turnaround capabilities.

Key Points:

• Successful Static Test - December 30, 2025: ISRO carried out a successful static test of an improved version of the third stage (SS3) of the Small Satellite Launch Vehicle (SSLV) on December 30, 2025, at the Solid Motor Static Test Facility at Satish Dhawan Space Centre (SDSC), Sriharikota, Andhra Pradesh. The static test is a ground-based trial where the solid rocket motor is fired while restrained on a test stand to evaluate its performance under controlled conditions.
• About SSLV - Launch-on-Demand Vehicle: The Small Satellite Launch Vehicle (SSLV) is a three-stage all-solid launch vehicle developed by ISRO, designed to be amenable to industrial production and capable of meeting launch-on-demand requirements with quick turnaround time between launches. Unlike larger launch vehicles, SSLV is specifically optimized for deploying small satellites (up to 500 kg) into low Earth orbit.
• Third Stage Critical Role: The upper stage or third stage solid motor of SSLV delivers as high as 4 km/s (approximately 14,400 km/h) velocity to the launch vehicle, providing the final acceleration needed to place satellites into their designated orbits. The third stage employs a monolithic composite motor case and a free-standing nozzle divergent specifically designed to limit the stage inert mass (the non-propellant weight). Minimizing inert mass is critical because every kilogram saved in structural weight can be converted into additional payload capacity.
• 2025 Capacity Enhancement Initiatives: According to ISRO, multiple facilities have been commissioned in 2025 to enhance the capacity of realizing (producing) solid motors for India's space programme, supporting increased launch frequency and industrial participation. In July 2025, Solid Motor production facilities were commissioned at Sriharikota specifically to augment production capacity for vehicles like SSLV and larger launch vehicles. These new facilities enable parallel production of multiple motors, reducing manufacturing time and supporting higher launch rates. The expansion reflects India's growing space ambitions, including plans for commercial satellite launches, future human spaceflight missions, and interplanetary exploration that all require robust solid motor production capabilities.
• World's Largest Solid Propellant Mixer: An indigenous 10-tonne vertical mixer for the solid motor production line was commissioned in 2025 at SDSC, which is the world's largest solid propellant mixing equipment. Solid propellant mixing is a critical and delicate process where oxidizer particles (Ammonium Perchlorate), metal fuel (typically aluminum powder), and polymer binder are combined in precise proportions and mixed thoroughly to ensure uniform composition. The 10-tonne capacity refers to the batch size that can be mixed in a single operation. Larger mixers enable more efficient production of motors for heavy-lift launch vehicles and reduce the number of mixing batches required for large motors, improving consistency and reducing production time. The vertical design offers better mixing efficiency and safety compared to horizontal mixers.
• Contribution to Atmanirbhar Bharat (Self-Reliant India): The indigenous development of advanced carbon-composite motor cases, high-capacity propellant mixers, and expanded production facilities aligns with India's Atmanirbhar Bharat (self-reliant India) initiative in critical technologies. By developing these capabilities domestically rather than importing components or technology, India strengthens its strategic autonomy in space access, which has both civilian and security implications.

Why silver surfed a 160% wave in 2025

In the News: In 2025, silver experienced its most spectacular price surge in over four decades, soaring by approximately 160% to reach a historic peak of $80 per troy ounce in late December. The precious metal started the year at around $30 per ounce and climbed to record highs, outperforming even gold's impressive 65-70% rally. This unprecedented rise was driven by a perfect storm of factors including Trump administration's trade policies, severe supply constraints, explosive industrial demand, China's upcoming export restrictions, and heightened geopolitical uncertainty.

Key Points:

• Record Price Performance: Silver prices surged from approximately $30 per ounce in January 2025 to a historic high of $80 per troy ounce on December 30, 2025, representing an increase of 160-166% year-to-date. This marks silver's best annual performance since 1979 when it rose 434.8%. The London silver bullion fixed at around $72 per ounce on December 31, 2025, recording a 144.4% gain for the year.
• Trump Administration and Economic Uncertainty: The rally accelerated sharply in late April 2025 following President Donald Trump's volatile tariff rollout on "Liberation Day," creating widespread economic uncertainty. Concerns over chaotic trade policies, potential dollar weakening, and global economic instability drove investors toward precious metals as safe-haven assets. The U.S. dollar declined more than 9% in 2025 against a basket of major currencies, making silver more attractive to foreign buyers.
• China's Export Restrictions (January 1, 2026): China announced stringent silver export controls effective January 1, 2026, requiring government-issued licenses for all silver exports. Only large state-certified companies with annual production capacity of at least 80 tons will qualify for export permits. This policy affects 60-70% of global silver supply, as China controls the majority of global silver refining infrastructure. Tesla CEO Elon Musk publicly warned on December 26, 2025, that "this is not good" as silver is critical for industrial processes.
• Industrial Demand Explosion: Silver's industrial applications now account for over 50% of global demand, driven by rapid growth in renewable energy, electric vehicles, and technology sectors. Solar photovoltaic (PV) manufacturing consumed over 25% of annual global silver supply in 2024-2025, with demand continuing to surge as global solar capacity expands. A standard electric vehicle contains 25-50 grams of silver in components. AI data centers, semiconductors, and 5G infrastructure also require significant silver quantities.
• Record October Exports from China: In October 2025, China recorded record exports of over 660 tons of silver, much of which went to Western warehouses in London and New York. These shipments represented "front-loading" as Chinese exporters rushed to deliver goods ahead of anticipated U.S. tariffs and the January 1, 2026, export restrictions. This flow is expected to cease abruptly with the new licensing requirements.
• December 2025 Volatility: Silver experienced extreme volatility in late December 2025. On December 30, it hit a record $80 per ounce overnight but then suffered its largest single-day drop since February 2021, falling 8.7% in one session. The Chicago Mercantile Exchange (CME) raised margin requirements for silver futures on December 27, requiring traders to post more cash to hold positions, which temporarily dampened prices. Silver rebounded 10.59% the following day to close at $77.92.

Deepti Sharma Sets New Wicket Record in Women’s T20 Cricket

In the News: India's star all-rounder Deepti Sharma etched her name in cricket history by becoming the highest wicket-taker in Women's T20 Internationals, surpassing Australia's Megan Schutt with her 152nd scalp. The milestone came during the fifth and final T20I against Sri Lanka at the Greenfield International Stadium in Thiruvananthapuram, where Deepti dismissed Nilakshika Silva with a sharp, skidding delivery that beat the inside edge to claim an LBW. India successfully defended 175 to win the match by 15 runs and complete a dominant 5-0 series sweep, capping off what Deepti described as a "transformative year" that included India's maiden ICC Women's World Cup triumph and her recognition as Player of the Tournament.

Key Points:

• Historic Record Achievement - December 30, 2025: Deepti Sharma became the highest wicket-taker in Women's T20 Internationals with 152 wickets, surpassing Australia's Megan Schutt who held the previous record of 151 wickets. The record-breaking moment arrived in the 14th over of Sri Lanka's innings when Deepti trapped middle-order batter Nilakshika Silva leg before wicket with a sharp, skidding delivery. The umpire's finger went up, marking wicket No. 152 in her T20I career — one more than Schutt's tally. Deepti had equalled Schutt's record of 151 wickets in the third T20I earlier in the series and had a chance to break it in the fourth T20I but went wicketless, meaning the wait continued into the final match.

• First Player with 1000 Runs and 150 Wickets in T20Is: Earlier in the same series against Sri Lanka (during the third T20I), Deepti Sharma became the first-ever cricketer across both men's and women's cricket to record the double milestone of 1,000 runs and 150 wickets in T20 Internationals. This unprecedented all-round achievement highlights her status as a complete cricketer in the format. Deepti has scored more than 1,100 runs in T20I cricket with an average of 23.40 and a strike rate of 104.26, including two half-centuries.
• First Indian to 150 T20I Wickets: Deepti Sharma became the first Indian cricketer, male or female, to reach 150 wickets in T20 Internationals. This milestone underscores her dominance and longevity in the format representing India. The second-best Indian bowler in Women's T20Is is spinner Radha Yadav with 103 wickets in 86 matches. Deepti and Radha are the only two Indian bowlers with more than 100 T20I wickets on the women's list. In men's cricket, no Indian bowler has yet reached the 150-wicket mark in T20Is, making Deepti's achievement even more remarkable. Pakistan's Nida Dar is the third-highest wicket-taker in Women's T20I cricket with 144 wickets in 152 matches, significantly behind Deepti's 152.

• 2025 ICC Women's World Cup Player of the Tournament: Deepti Sharma was named Player of the Tournament at the 2025 ICC Women's World Cup held on home soil, where India lifted their maiden title. She delivered a rare tournament double, scoring over 215 runs (some sources cite 200+) and claiming 22 wickets (some sources cite 20+) in 9 matches during the competition

• Major Career Achievements: Deepti Sharma was part of the Indian team that won the 2025 Women's Cricket World Cup (India's first), the 2022 Women's Asia Cup, and the gold medal at the 2022 Asian Games. She was part of the team that reached the final of the 2017 Women's Cricket World Cup where India lost to England by nine runs. In that tournament, she scored 216 runs from 8 matches at an average of 30.86 and picked up 12 wickets with best bowling figures of 3/59 against Australia. In June 2018, she was awarded the Jagmohan Dalmiya Trophy for Best Domestic Senior Women's Cricketer by the Board of Control for Cricket in India (BCCI). She has also played in international T20