Daily Current Affairs - 30th December 2025
- TPP
- Dec 30, 2025
- 12 min read
Comprehensive UPSC Current Affairs Summary | 3 Years of India–Australia ECTA, RBI Review of NBFC Scale-Based Regulation, IIP at 25-Month High, INSV Kaundinya Voyage, Groundwater Assessment 2025, JIVA Program, FIDE Rapid Chess Championship 2025 and more.
If you missed Monthly Current Affairs Pointers (CAP) | Sept - Oct 2025, read it here.
Table of Content
INTERNATIONAL
3 Years of India–Australia Economic Cooperation and Trade Agreement (ECTA)
The India–Australia Economic Cooperation and Trade Agreement (INDAUS ECTA) is a landmark bilateral trade pact.
It was signed in 2022 to strengthen economic ties between India and Australia.
The agreement aims to double bilateral trade within five years of its implementation.
INDAUS ECTA is India’s first trade agreement with a developed country in over a decade.
Key Features of India–Australia ECTA
Trade in Goods: Australia provides 100% duty-free market access for Indian exports.
Major beneficiary sectors include textiles, leather, and jewellery.
Trade in Services and Professional Mobility: Indian students are granted extended post-study work visas.
The duration of post-study work visas ranges from 2 to 4 years, depending on qualifications.
A dedicated quota has been introduced for “Work and Holiday” visas, enabling youth mobility.
Safeguards and Regulatory Cooperation: The agreement incorporates robust Rules of Origin.
Rules of Origin prevent third-party re-routing, meaning goods from non-member countries cannot misuse benefits.
The agreement includes fast-track pharmaceutical approvals, easing market entry for Indian pharma companies.
Other Provisions: INDAUS ECTA eliminates double taxation on Indian IT offshore income.
India–Australia Economic Relations
In FY25, India was Australia’s 8th largest trading partner.
In the same year, Australia was India’s 14th largest trading partner.
Total bilateral trade between the two countries in FY25 stood at US$ 24.1 billion.
Key Indian exports include petroleum products, engineering goods, and drugs and pharmaceuticals.
Key Indian imports from Australia include coal and gold.
Significance of India–Australia Relationship
Strategic and Geopolitical Significance: India and Australia share a common vision for a free, open, and inclusive Indo-Pacific.
Indo-Pacific Convergence: Both countries collaborate under the Australia–India Indo-Pacific Oceans Initiative Partnership (AIIPOIP).
QUAD Pillar: India and Australia are key members of the Quadrilateral Security Dialogue (QUAD), along with the United States and Japan.
Defence Cooperation: The two countries have signed the Mutual Logistics Support Agreement (MLSA).
They conduct high-level military exercises such as Exercise Malabar and AUSINDEX.
Multilateral Alignment: India and Australia cooperate in forums like the G20, East Asia Summit (EAS), and Indian Ocean Rim Association (IORA).
Supply Chain Resilience: Both nations are partners in the Supply Chain Resilience Initiative (SCRI).
SCRI aims to reduce dependence on single-source supply chains.
Critical Minerals Partnership: Australia is a major supplier of critical minerals such as lithium and cobalt.
These minerals are essential for India’s Electric Vehicle (EV) mission and clean energy transition.
RBI Review of Scale-Based Regulation (SBR) for NBFCs
The Reserve Bank of India (RBI) has initiated a review of the Scale-Based Regulation (SBR) framework for Non-Banking Financial Companies (NBFCs).
The review comes amid the growing role of NBFCs in lending, which now accounts for around 15% of India’s GDP.
Concerns prompting the review include NBFC–bank interconnectedness, rising unsecured loans, and potential systemic risks.
About the SBR Framework for NBFCs
The Scale-Based Regulation (SBR) framework was implemented by the RBI in 2022.
The framework classifies NBFCs into four regulatory layers.
The classification is based on systemic importance, size, and perceived risk levels.
Base Layer (NBFC–BL)
The Base Layer consists of non-deposit taking NBFCs with assets below ₹1,000 crore.
It includes Peer-to-Peer (P2P) lending platforms, which directly connect borrowers and lenders.
It also includes Account Aggregators (AAs), which enable consent-based sharing of financial data.
The layer includes Non-Operative Financial Holding Companies (NOFHCs), which hold bank shares without operational roles.
NBFC–BL accounts for 5.2% of total NBFC assets.
Middle Layer (NBFC–ML)
The Middle Layer includes all deposit-taking NBFCs (NBFC-D), irrespective of asset size.
It also includes non-deposit taking NBFCs with assets of ₹1,000 crore and above.
NBFC–ML accounts for the largest share of NBFC assets at 64.6%.
Upper Layer (NBFC–UL)
The Upper Layer comprises NBFCs specifically identified by the RBI for enhanced regulation.
Identification is based on a set of parameters and a scoring methodology assessing systemic risk.
NBFC–UL accounts for 30.2% of total NBFC assets.
Top Layer
The Top Layer includes NBFCs assessed as having extreme supervisory risk perception.
These NBFCs are subject to enhanced and intensive supervisory engagement by the RBI.
Ideally, the Top Layer is expected to remain empty.
About Non-Banking Financial Companies (NBFCs)
An NBFC is a company registered under the Companies Act, 1956 or the Companies Act, 2013.
NBFCs are primarily engaged in lending, investment in securities, and leasing or hire-purchase activities.
Key Differences Between NBFCs and Banks
NBFCs cannot accept demand deposits, such as savings or current account deposits.
NBFCs do not form part of the payment and settlement system.
NBFCs cannot issue cheques drawn on themselves.
Depositors of deposit-taking NBFCs do not receive deposit insurance from the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Index of Industrial Production (IIP)
India’s industrial production growth, as measured by the Index of Industrial Production (IIP), surged to a 25-month high of 6.7% in November 2025.
This rise indicates a recovery in industrial activity across key sectors of the economy.
About the Index of Industrial Production (IIP)
The Index of Industrial Production (IIP) is a key macroeconomic indicator.
It measures short-term changes in the volume of industrial production in the economy.
IIP data is published monthly by the Ministry of Statistics and Programme Implementation (MoSPI).
Sectoral Coverage under IIP
IIP covers three broad industrial sectors.
The Manufacturing sector has the highest weight of 77.6%, reflecting its dominance in industrial output.
The Mining sector carries a weight of 14.4%.
The Electricity sector has a weight of 8%.
Base Year
The base year for calculating the IIP is 2011–12, which serves as the reference period for comparison.
National Technology Readiness Assessment Framework (NTRAF)
The Principal Scientific Adviser (PSA) to the Government of India has unveiled the Draft National Technology Readiness Assessment Framework (NTRAF).
The framework aims to standardise innovation assessment across India’s research and development ecosystem.
About NTRAF
NTRAF is designed to serve as the operational backbone for multiple R&D funding mechanisms.
These funding mechanisms are launched under various National Missions.
The framework enables funding agencies to allocate resources with greater precision.
It helps de-risk early-stage technologies, making them more attractive for private investment.
Technology Readiness Assessment Methodology
NTRAF provides a robust and standardised methodology for technology evaluation.
It assesses projects starting from “Proof of Concept”, classified as Technology Readiness Levels (TRL) 1–3.
It evaluates “Prototype Development”, classified as TRL 4–6, where technologies are tested in relevant environments.
It measures “Market or Operational Readiness”, classified as TRL 7–9, where technologies are ready for deployment.
Key Features of NTRAF
The framework replaces qualitative estimation with a structured and evidence-based checklist.
This checklist is applied at every stage of technology development.
NTRAF empowers Project Investigators, who are principal researchers leading projects.
It enables them to realistically assess their current readiness level.
It helps them identify technical gaps before applying for funding.
Defence Ministry Clears Weapons Purchases Worth ₹79,000 Crore
The Defence Acquisition Council (DAC) has approved the purchase of military hardware worth ₹79,000 crore.
The approvals aim to promote indigenous manufacturing of defence products.
The decisions are expected to boost the combat readiness of the Indian Armed Forces.
Key Highlights of Approved Proposals
Astra Mk-II Air-to-Air Missile: This missile will enhance the precision strike capability of the Indian Air Force (IAF).
Astra Mk-II is an indigenous Beyond Visual Range Air-to-Air Missile (BVRAAM).
It has a range beyond 100 km, enabling long-distance aerial engagements.
The missile has been developed by the Defence Research and Development Organisation (DRDO).
Long-Range Guided Rocket Ammunition: This has been approved for the Indian Army’s Pinaka Multiple Launch Rocket System (MLRS).
Pinaka MLRS enhances the Army’s long-range artillery firepower.
Integrated Drone Detection and Interdiction System (IDD&IS) Mk-II: This system offers an enhanced detection range.
It has improved interdiction capability to neutralise hostile drones.
The system will be deployed to protect vital military and civilian assets.
SPICE-1000 Long-Range Guidance System: This is an Israeli-designed precision-guided munition.
It is manufactured by Rafael Advanced Defense Systems.
The system enables precise air-to-ground strikes.
It allows long-distance cross-border targeting with high accuracy.
High Altitude Long Range (HALE) Remotely Piloted Aircraft System (RPAS): This system ensures continuous Intelligence, Surveillance, and Reconnaissance (ISR).
It provides credible Maritime Domain Awareness over the Indian Ocean Region (IOR).
Indigenous Loitering Munitions for the Army: These weapons are also known as kamikaze drones or suicide drones.
Unlike traditional Unmanned Aerial Vehicles (UAVs) used for surveillance, loitering munitions are designed to directly attack targets.
About the Defence Acquisition Council (DAC)
The Defence Acquisition Council (DAC) was established in 2001.
It is chaired by the Union Minister of Defence.
DAC functions as the apex body for strategic defence acquisition planning and oversight.
It ensures coordinated decision-making across India’s defence establishment.
Functions of DAC
DAC provides ‘in-principle’ approval for capital acquisitions under the Long Term Perspective Plan (LTPP).
It monitors the progress of major defence acquisition projects.
It grants Acceptance of Necessity (AoN) for defence procurement proposals.
INSV Kaundinya Begins Maiden Overseas Voyage to Oman
INSV Kaundinya has begun its maiden overseas voyage to Oman.
The vessel is a stitched sailing ship built using traditional Indian shipbuilding techniques.
The construction method used is the Tankai method, which is believed to date back to the 5th century CE.
The voyage highlights India’s ancient maritime heritage and seafaring traditions.
Naming Significance
The ship is named after Kaundinya, a legendary Indian mariner.
Kaundinya is historically associated with maritime voyages from India to Southeast Asia.
Design and Inspiration
INSV Kaundinya is modeled on ships depicted in the Ajanta Cave Paintings.
The reference artwork comes specifically from Ajanta Cave No. 17.
These paintings were used because no original blueprints of such ancient vessels survive.
Construction and Collaboration
The ship was built under a tripartite agreement signed in 2023.
The agreement involves the Ministry of Culture, the Indian Navy, and Hodi Innovations.
The project was funded by the Ministry of Culture.
Technical Features of the Vessel
INSV Kaundinya does not have an engine, unlike modern naval vessels.
The ship relies entirely on wind power through sails for propulsion.
Nature and Purpose of the Ship
INSV Kaundinya is owned and operated by the Indian Navy.
Despite naval ownership, it is not a combat vessel.
The ship serves cultural, historical, and maritime heritage purposes.
Tankai Method of Shipbuilding
The Tankai method is a traditional Indian shipbuilding technique.
It involves no use of metal components.
Wooden planks are stitched together instead of being nailed.
Coir rope, derived from coconut fibre, is used for stitching.
Natural resin is used as a fastening and sealing material.
In this method, the hull is stitched first.
Internal ribs are added later to strengthen the structure.
This design provides high structural flexibility.
The flexibility allows the ship to absorb powerful ocean waves instead of cracking under pressure.
Cultural Symbols on INSV Kaundinya
Gandabherunda is depicted on the vessel.
Gandabherunda is a two-headed eagle associated with the Kadamba dynasty.
It symbolizes power and protection.
Sun motifs on the sails are prominently featured.
These motifs represent vitality, divinity, navigation, and auspicious beginnings.
A Simha Yali is placed on the bow of the ship.
Simha Yali is a mythical lion-like creature symbolizing strength and guardianship.
A Harappan-style stone anchor is placed on the deck.
The anchor pays tribute to the Indus Valley maritime trade networks.
It also reflects early anchoring technology used in ancient India.
Pinaka Weapon System
DRDO has successfully conducted the maiden flight test of the Pinaka Long Range Guided Rocket (LRGR).
The test validated the rocket’s maximum strike range of 120 km.
About Pinaka Weapon System
Pinaka is a Multi Barrel Rocket Launcher (MBRL) system.
An MBRL is an artillery platform capable of firing multiple rockets in quick succession.
The system is used for long-range artillery bombardment.
It is also used for softening enemy positions before close combat, meaning weakening defences prior to ground operations.
Design and Development
Pinaka has been designed by the Armament Research and Development Establishment (ARDE).
ARDE functions under the Defence Research and Development Organisation (DRDO).
The design effort was carried out in association with the High Energy Materials Research Laboratory (HEMRL).
HEMRL specializes in the development of energetic materials such as propellants and explosives.
The project received additional support from the Defence Research and Development Laboratory (DRDL).
It was also supported by the Research Centre Imarat (RCI), which focuses on missile and guidance technologies.
MahaCrimeOS AI
MahaCrimeOS AI is a predictive artificial intelligence tool assisting the Maharashtra Police in criminal investigations.
The platform has been developed with support from Microsoft.
Technological Architecture
MahaCrimeOS AI is built on the Microsoft Azure OpenAI Service.
Azure OpenAI Service provides secure cloud-based access to advanced AI models.
The system also uses Microsoft Foundry, which enables AI assistants, automated workflows, and scalable cloud infrastructure.
Legal and Intelligence Integration
The platform has built-in access to India’s criminal laws.
This access is enabled through AI RAG (Retrieval-Augmented Generation).
RAG is a technique where AI retrieves verified external data before generating responses, improving accuracy and reliability.
The system also integrates open-source intelligence (OSINT), which refers to publicly available information used for security analysis.
Operational Capabilities
MahaCrimeOS AI helps investigators link related cases across datasets.
It supports analysis of digital evidence, including structured and unstructured data.
The platform enables faster and more effective threat response during investigations.
It is capable of real-time suspect profiling, meaning dynamic assessment of suspect behavior and patterns as new data emerges.
Dynamic Groundwater Resource Assessment Report 2025
The Ministry of Jal Shakti has released the Dynamic Groundwater Resource Assessment Report 2025.
The assessment was conducted jointly by the Central Ground Water Board (CGWB) and States/Union Territories.
Key National-Level Findings
Annual Groundwater Recharge has increased marginally to 448.52 Billion Cubic Metres (BCM) in 2025.
The recharge in 2024 was 446.9 BCM, indicating a slight year-on-year improvement.
Annual Extractable Groundwater Resources have risen to 407.75 BCM in 2025.
The extractable resources in 2024 stood at 406.19 BCM.
Total Annual Groundwater Extraction for all uses in 2025 has been assessed at 247.22 BCM.
Stage of Groundwater Extraction (SoE)
Stage of Groundwater Extraction (SoE) measures the ratio of annual groundwater extraction to annual extractable groundwater resources.
The national SoE has been calculated at 60.63%.
Assessment Units Coverage
The assessment covers 6,746 units, which include Blocks, Mandals, and Talukas.
Categorisation of Assessment Units
73.4% of assessment units are categorised as ‘Safe’.
Safe units are those where groundwater extraction is less than 70% of annual extractable resources.
10.5% of assessment units are categorised as ‘Semi-critical’.
Semi-critical units have groundwater extraction between 70% and 90% of annual extractable resources.
3.05% of assessment units are categorised as ‘Critical’.
Critical units have groundwater extraction between 90% and 100% of annual extractable resources.
11.1% of assessment units are categorised as ‘Over-exploited’.
Over-exploited units are those where groundwater extraction exceeds annually replenishable recharge.
1.8% of assessment units are categorised as ‘Saline’, indicating poor water quality due to salinity.
Regional Concentration of Over-Exploited Units
North-West India shows high concentration in Punjab, Haryana, Delhi, and Western Uttar Pradesh.
Western India has significant over-exploitation in Rajasthan and Gujarat.
Southern India shows concentration in Karnataka, Tamil Nadu, Telangana, and Andhra Pradesh.
Alternate Wetting and Drying (AWD) in Rice Cultivation
Alternate Wetting and Drying (AWD) is a water management technique for irrigated lowland rice cultivation.
Studies show that AWD enhances water productivity, maintains high yields, and reduces methane emissions in rice production.
Mechanism of AWD
Instead of keeping paddy fields continuously flooded, the fields are periodically dried before re-flooding.
This method allows farmers to use much less water while sustaining crop growth.
Impact on Greenhouse Gas (GHG) Emissions
Methane (CH₄) in flooded rice soils is produced through anaerobic decomposition of organic material under waterlogged conditions.
By periodically draining the field, the waterlogged anaerobic environment is temporarily removed, which halts methane production.
JIVA Program – Joint Initiative for Village Advancement
In Betul district, Madhya Pradesh, farmer-led natural farming under the JIVA program is reversing crop loss, soil degradation, and distress migration.
JIVA stands for Joint Initiative for Village Advancement and is a farmer-centric natural farming program.
Launch and Implementing Agency
The program was launched in 2022 by the National Bank for Agriculture and Rural Development (NABARD).
It operates under NABARD’s existing watershed and wadi programmes, integrating natural resource management with rural development.
Objectives and Approach
JIVA aims to promote agroecology principles, ensuring long-term sustainability of farming practices.
The program seeks to transform pre-existing social and natural capital while nudging the farming community towards natural farming methods.
FIDE World Rapid Chess Championship 2025
The Prime Minister congratulated Indian Grandmasters Koneru Humpy and Arjun Erigaisi for winning bronze medals at the 2025 FIDE Rapid Chess Championship held in Doha.
FIDE (Fédération Internationale des Échecs) is the International Chess Federation, the governing body of chess, headquartered in Lausanne, Switzerland.
Key Highlights
Grandmaster Arjun Erigaisi secured his maiden bronze medal at the championship.
He became only the second Indian male player, after legendary Grandmaster Viswanathan Anand, to achieve a podium finish in a FIDE World Rapid event.
Read More | Erigaisi Creates History, Humpy Adds Another World Medal
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