Daily Current Affairs (DCA) 30&31 December, 2025

Daily Current Affairs Quiz
30 & 31 December, 2025

International Affairs

1. India–New Zealand Free Trade Agreement (FTA)

Source: TH

The India–New Zealand Free Trade Agreement (FTA), concluded in December 2025 and announced after negotiations that began in March 2025, marks a major step in India’s strategy of trade diversification and deeper economic integration with high-income economies.

The agreement was finalised under the leadership of Narendra Modi and Christopher Luxon, and is being described as one of India’s fastest-concluded FTAs (nine months).

What is the India–New Zealand FTA?

It is a comprehensive trade and investment agreement covering:

• Goods
• Services
• Investment
• Skilled labour mobility
• MSME cooperation
• Traditional knowledge and wellness services

The FTA is designed not merely as a tariff-cutting pact, but as a long-term framework for economic cooperation and access to the Oceania–Pacific region.

What zero-duty access will India get?

• 100% of India’s exports to New Zealand will face zero customs duty
• This provides full market access for Indian goods

In return:

• India will reduce or eliminate tariffs on 95% of New Zealand’s exports
• 57% of these products become duty-free from day one

How much FDI is New Zealand committing?

• $20 billion in Foreign Direct Investment (FDI) by 2030
• Spread across 118 sectors
• Focus areas:
  • Services
  • Skill mobility
  • Employment generation
  • Education, healthcare, construction, IT

Notably, the agreement includes binding timelines and clawback provisions if investment commitments are not met — a first in India’s FTAs.

Key New Elements in the Agreement

• Facilitation of Ayurveda, yoga and traditional medicine services (first such commitment by New Zealand)
• Easier movement of Indian professionals, including:
  • IT professionals
  • Engineers
  • Healthcare workers
  • Yoga instructors
  • Chefs and music teachers
• Student-friendly provisions:
  • Work permits up to 20 hours/week
  • Extended post-study work visas

Why is India accelerating FTAs?

India’s rapid push for FTAs reflects strategic, economic and geopolitical compulsions:

• Trade diversification
  • Reduce dependence on the U.S., EU and China
  • India–U.S. trade ($132 bn) exposed India to tariff shocks
• WTO-plus commitments
  • Services, digital trade, investment rules go beyond WTO norms
• Geopolitical alignment
  • FTAs as tools of strategic partnerships (Oceania, West Asia, Africa)
• Domestic policy alignment
  • Support Make in India, PLI schemes, and global value chain integration
• Response to U.S. tariff pressures
  • Sharp fall in India’s exports to the U.S. in late 2025
  • Indo-U.S. FTA negotiations stalled, especially over agriculture

This is India’s third FTA in 2025, after agreements with the UK and Oman.

National Affairs

1. INSV Kaundinya

Context:

Prime Minister Narendra Modi extended New Year greetings to the crew of INSV Kaundinya, who are currently on a maritime voyage, praising their enthusiasm and dedication as India prepares to welcome 2026.

About Kaundinya

INSV Kaundinya is a historic stitched sailing vessel of the Indian Navy, reconstructed to revive and showcase India’s ancient maritime traditions and long-distance seafaring heritage.

Key Highlights:

• Type: Stitched wooden sailing ship (plank-and-cord construction)
• Inspired by: 5th-century CE Ajanta cave paintings depicting Indian ocean-going vessels
• Construction method: Planks stitched together using coir rope, without nails or metal fasteners
• Material: Teak wood and traditional natural fibres
• Name origin: Named after Kaundinya, an ancient Indian mariner associated with early maritime links between India and Southeast Asia

Development & Launch

• Built by: Traditional shipwrights from Kerala using age-old methods
• Commissioned by: Indian Navy in collaboration with cultural and archaeological experts
• Launched at: Goa (Indian Navy)

2. Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)

Context:

Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) is India’s flagship health assurance scheme that provides up to ₹5 lakh per family per year for secondary and tertiary care hospitalization in empaneled public and private hospitals. In 2025, the scheme was expanded significantly when Odisha and Delhi formally joined AB-PMJAY.

Key Features

• Launched: 2018
• Nodal agency: National Health Authority (NHA)
• Coverage: Up to ₹5 lakh per family per year
• Care included: Secondary and tertiary hospitalisation
• Mode: Cashless and paperless treatment
• Hospitals: Empanelled public and private hospitals across India
• Beneficiaries: Poor and vulnerable families identified from SECC 2011 and updated databases

3. Parvati-Arga Bird Sanctuary Declared Eco-Sensitive Zone

Source: News on Air

Context:

The Parvati–Arga Bird Sanctuary in Uttar Pradesh has been notified as an Eco-Sensitive Zone (ESZ) by the Ministry of Environment, Forest and Climate Change (MoEFCC) to strengthen ecological protection around the sanctuary.

Key Facts

• Location: Gonda district, Uttar Pradesh
• Ecosystem: Freshwater wetlands, lakes, marshes
• Importance: Critical habitat for resident and migratory water birds
• Ramsar Status: Recognised as a Ramsar Wetland of International Importance

About the Eco-Sensitive Zone (ESZ)

• ESZs are notified under the Environment (Protection) Act, 1986
• Act as a buffer zone around protected areas like national parks and sanctuaries
• Aim to regulate human activities rather than completely prohibit them

Activities under ESZ

• Prohibited: Polluting industries, mining, major hydropower projects
• Regulated: Construction, tourism, groundwater extraction
• Permitted: Traditional agriculture, eco-friendly livelihoods, conservation-based tourism

4. India Ranks 3rd in Global Rare Earth Reserves

Source: ET

Context:

India has emerged as the world’s third-largest holder of rare earth reserves, underscoring its growing strategic importance in critical minerals essential for modern technologies and clean energy transitions.

Key Highlights:

• Global Rank India: 3rd in rare earth reserves
• Estimated Reserves: ~6.9 million tonnes (REO)
• Share of Global Reserves: Around 6–7%

Rankings (REO Reserves):

1. China – 44 MT
2. Brazil – ~21 MT
3. India – 6.9 MT (6–7% of global)

About Rare Earth Elements (REEs)

• A group of 17 elements including lanthanides, scandium, and yttrium
• Despite the name, they are not truly rare, but are difficult to extract and process economically
• Crucial for:
  • Electric vehicles & wind turbines (permanent magnets)
  • Smartphones & electronics
  • Defence, space & aerospace systems
  • Green hydrogen & advanced batteries

India’s Resource Base

• Major deposits found in beach sand minerals containing monazite
• Concentrated along coastal regions of:
  • Odisha
  • Andhra Pradesh
  • Tamil Nadu
  • Kerala
• Managed primarily by Indian Rare Earths Limited (IREL)

5. Amit Shah Inaugurates Redeveloped Batadrava Than, Assam

Source: PIB

Context:

Amit Shah, Union Home Minister of India, inaugurated the redeveloped Batadrava Than in Assam, marking a significant step towards preserving Assam’s spiritual, cultural, and Vaishnavite heritage.

About Batadrava Than

• Batadrava Than is one of the most sacred Vaishnavite monasteries (Sattras) in Assam
• Location: Nagaon district, Assam
• Founded by: Srimanta Sankardev, the 15th–16th century saint, reformer, and social philosopher
• Considered the birthplace of the Neo-Vaishnavite movement (Ekasarana Dharma) in Assam

Key Features of the Redevelopment

• Restoration of heritage architecture while maintaining traditional Sattra aesthetics
• Improved pilgrim amenities including pathways, lighting, and visitor facilities
• Cultural spaces for showcasing Ankiya Naat, Sattriya traditions, and Vaishnavite literature
• Environment-friendly infrastructure aligned with heritage conservation norms

6. Pinaka Long Range Guided Rocket (LRGR-120)

Source: PIB

Context:

The Defence Research and Development Organisation (DRDO) has successfully conducted the maiden flight test of the Pinaka Long Range Guided Rocket (LRGR-120) from the Integrated Test Range (ITR), Chandipur, marking a major milestone in India’s indigenous rocket artillery capabilities.

About Pinaka Long Range Guided Rocket (LRGR-120)

The Pinaka LRGR-120 is an indigenously developed, precision-guided rocket variant of the Pinaka Multi‑Barrel Rocket System, designed for long-range, high-accuracy battlefield strikes.

Developed by

• Armament Research and Development Establishment (ARDE)
• In association with High Energy Materials Research Laboratory (HEMRL)
• Under the aegis of DRDO

Aim of the System

• Extend the strike range of the Pinaka rocket family
• Deliver precision-guided firepower with reduced collateral damage
• Enhance operational flexibility using existing Pinaka launch infrastructure

7. PM Highlights Narsapuram Lace Craft in Man Ki Baat

Context:

The Prime Minister, in Man Ki Baat, highlighted the Narsapuram Lace Craft as a model of women-led economic empowerment, cultural continuity, and sustainable livelihoods. The recent conferment of the Geographical Indication (GI) tag has brought renewed national focus to this centuries-old craft of the Godavari region.

About Narsapuram Lace Craft

Narsapuram Lace Craft is a handmade crochet lace tradition, where artisans use a single crochet hook and fine cotton threads to create intricate lace patterns. The craft is known for its precision, patience, and high skill, resulting in products such as lace trims, table linens, garments, and decorative items.

Region

• State: Andhra Pradesh
• Districts: West Godavari and Dr. B.R. Ambedkar Konaseema
• Key Centres: Narsapur, Palacole, Razole, Amalapuram

Historical Background

• Origins: Introduced in 1844, when European missionaries trained local women in lace-making techniques
• Resilience: The craft survived famines, colonial-era economic disruptions, and market fluctuations, remaining a dependable source of income for women
• Evolution: Over time, Narsapuram lace gained global recognition as a distinctive hand-crafted textile tradition

Banking/Finance

1. India Becomes the World’s 4th Largest Economy

Source: ET

Context:

India has officially emerged as the world’s fourth-largest economy, overtaking Japan, marking a major milestone in its economic journey and reinforcing its position as the fastest-growing major economy globally.

Key Highlights

• Global Rank: 4th largest economy
• GDP Size: ~USD 4.18 trillion
• Surpassed: Japan
• Ahead of: United Kingdom
• Next Target: Germany (projected by 2030)

Global Ranking Snapshot

1. United States
2. China
3. Germany
4. India
5. Japan

Growth Drivers

• Robust private consumption, supported by rising incomes and urban demand
• Public capital expenditure on infrastructure (roads, railways, digital public goods)
• Strong performance in services, especially IT, finance, and business services
• Expansion of manufacturing under Make in India and PLI schemes
• Macro-economic stability with controlled fiscal and external sector risks

Recent Growth Performance

• India recorded 8%+ real GDP growth in recent quarters
• Continues to outpace other major economies amid global slowdown concerns
• Recognised as the fastest-growing large economy by international institutions

2. RBI Releases “Report on Trend and Progress of Banking in India 2024–25”

Source: TH

Context:

The Reserve Bank of India (RBI) has released its statutory annual publication, the “Report on Trend and Progress of Banking in India 2024–25”, in accordance with Section 36(2) of the Banking Regulation Act, 1949. The report provides a comprehensive assessment of the health, performance, and evolving risks of India’s banking system.

Purpose of the Report

• To present an annual review of the functioning of the banking sector
• To assess financial stability, resilience, and regulatory outcomes
• To inform the Government of India and Parliament on banking sector developments

Key Findings of the Report

1. Bank Frauds: Fewer Cases, Higher Amounts

• Number of frauds declined to 23,879 cases (2024–25) from 36,052 cases (2023–24)
• Amount involved increased sharply to ₹34,771 crore from ₹11,261 crore in the previous year

Reason for spike in value:

• Re-examination of 122 large fraud cases involving ₹18,336 crore, following a landmark Supreme Court judgment (27 March 2023)

Legal context:

• In SBI v. Rajesh Agarwal, the Supreme Court ruled that borrowers must be given an opportunity to be heard before accounts are classified as ‘fraud’, reinforcing the principles of natural justice.

2. Fraud Profile: Type-wise Trends

• Card / Internet frauds
  • 66.8% of total cases (highest by number)
• Advances-related frauds
  • 33.1% of total amount involved (highest by value)

3. Bank-wise Contribution to Frauds

• Private Sector Banks (PVBs)
  • 59.3% of total cases
  • Largest share by number: Card/Internet frauds
  • Largest share by value: Advances-related frauds
• Public Sector Banks (PSBs)
  • 70.7% of the total amount involved
  • Advances-related frauds dominate both by number and value

4. Trend Across Bank Groups

• Card/Internet frauds
  • Declined across all bank groups (both in number and amount)
• Advances-related frauds
  • Increased across all bank groups in number
  • Increased in amount across all banks except PSBs

5. Resilience & Growth of Scheduled Commercial Banks (SCBs)

• Double-digit growth in deposits and credit, though moderated compared to last year
• Consolidated SCB balance sheet growth: 11.2% (vs 15.5% in 2023–24)
• Assets side
  • Bank credit: +11.5%
  • Investments: +9.2%
• Liabilities side
  • Deposits: +11.1%

(Often described as the “resilient 11-11-11” growth pattern)

6. Profitability

• Net profits of SCBs increased, but at a slower pace
• Moderation partly due to slower growth in Net Interest Income (NII)

7. Capital Adequacy & Leverage

• CRAR of SCBs
  • 17.4% at end-March 2025
  • 17.2% at end-September 2025
• Leverage ratio remained well above regulatory minimums, indicating strong buffers

8. Asset Quality

• Asset quality strengthened further
• GNPA ratio
  • 2.2% at end-March 2025
  • 2.1% at end-September 2025
• These levels represent a multi-decadal low, reflecting improved credit discipline and recoveries

9. Urban Co-operative Banks (UCBs)

• Recorded higher balance sheet growth compared to the previous year
• Asset quality improved for the fourth consecutive year
• Strengthening observed in capital buffers and profitability

10. Non-Banking Financial Companies (NBFCs)

• Continued double-digit credit growth
• Maintained robust capital buffers
• Asset quality improved during the year, despite pockets of stress in specific segments

3. SEBI Surplus Transfer Proposal

Source: BS

Context:

During the Winter Session of Parliament, the government introduced the Securities Markets Code, 2025 Bill, which seeks to consolidate securities market laws. A key concern arises from Clause 124, which proposes the transfer of the annual surplus of the market regulator to the Consolidated Fund of India (CFI).

What Does Clause 124 Propose?

• 25% of SEBI’s annual surplus to be credited to a Reserve Fund, capped at two years’ preceding expenditure.
• Remaining surplus to be transferred annually to the CFI.
• This effectively hard-codes a ceiling on the regulator’s expenditure and mandates surplus transfer to the government.

How SEBI’s General Fund Works (Current System)

• Inflows: Fees and charges levied on market infrastructure institutions, regulated entities, and market participants.
• Outflows: Revenue and capital expenditure of Securities and Exchange Board of India (SEBI).
• Autonomy: SEBI’s budget is approved by its own Board—core to its financial independence under the SEBI Act, 1992.

4. Govt Plans to Amend SARFAESI Act to Include Special Situation Funds (SSFs)

Source: Business Standard

Context:

The Union government is considering amending the SARFAESI Act, 2002 to expand the definition of “financial institution” to include Special Situation Funds (SSFs), with the aim of speeding up recovery of stressed assets and NPAs.

About SARFAESI Act, 2002

• Full form: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
• Enables banks and financial institutions to recover dues above ₹1 lakh by enforcing security interests without court or tribunal intervention.
• Key provision: Section 13 (enforcement of security interest).

What are Special Situation Funds (SSFs)?

• Defined and regulated by Securities and Exchange Board of India (SEBI).
• Classified as Category I Alternative Investment Funds (AIFs).
• Focus on:
  • Distressed assets
  • Stressed loans
  • Corporate restructuring, insolvency, mergers
• Play an active role in turnaround and revival of stressed companies.

Proposed Amendments

1. Inclusion of SSFs under SARFAESI
   • SSFs to be added under Section 2(1)(m) (definition of financial institution).
   • Will allow SSFs to directly invoke SARFAESI provisions for recovery.
2. Time Limit for Borrower Representations
   • Amendment to Section 13(3A).
   • Borrowers must submit objections to a demand notice (Section 13(2)) within 30 days of receipt.
   • Currently, no statutory timeline, leading to delays.

5. Research, Development and Innovation Fund (RDIF)

Context:

The Government of India has created the Research, Development and Innovation Fund (RDIF) with a corpus of ₹1 lakh crore (≈ $11 billion) to transform India’s R&D and deep-tech innovation ecosystem by providing long-term, risk-tolerant capital.

Research, Development and Innovation Fund (RDIF)

The Research, Development and Innovation Fund (RDIF) is a ₹1 lakh crore (~$11 billion) government initiative aimed at financing high-risk, high-impact research and deep-tech innovation in India through long-term risk capital, rather than conventional grants.

Key Features

• Nature: Sovereign risk-capital fund (not a grant or subsidy scheme).
• Objective: Bridge the “valley of death” between lab research and commercialisation.
• Time Horizon: Designed for patient capital with a long-term (up to 50 years) outlook.
• Focus: Deep-tech and strategic sectors where private funding is limited due to high risk.

Institutional Framework

• Anchored under the Anusandhan National Research Foundation (ANRF).
• Operates through a two-tier structure:
  • Special Purpose Fund (SPF): Holds government capital.
  • Professional fund managers (AIFs, NBFCs, public financial institutions) deploy funds into startups and ventures.

Priority Sectors

• Artificial Intelligence & semiconductors
• Biotechnology & life sciences
• Quantum technologies
• Clean energy & climate tech
• Space, defence, and advanced materials

6. Funds Raised by Banks Hit 3-Year Low: RBI

Source: Mint

Context:

The Reserve Bank of India (RBI) has reported that fundraising by banks through capital market routes—private placements, qualified institutional placements (QIPs), and preferential allotments—has fallen to its lowest level in the last three financial years.

Contrasting Trend

• RBI noted that fundraising increased during FY25, mainly driven by PSBs, which recorded 36.6% growth in funds raised—largely through debt instruments.
• The current slowdown marks a reversal of the rising trend seen between FY23 and FY25.

Reasons for Decline

• Ample deposit mobilisation at select banks.
• Higher bond yields, reducing appetite for long-term debt issuance.
• Tighter liquidity conditions and uncertainty over the interest rate cycle.
• Banks reassessing funding mix after heavy reliance on private placements in recent years to meet capital and regulatory needs.

Why it Matters

• Indicates a shift in bank funding strategies.
• Reflects sensitivity of bank capital raising to interest rates and liquidity conditions.
• Important for understanding capital adequacy, credit growth, and financial stability.

Agriculture

1. IS 19262:2025 for Electric Agricultural Tractors

Source: PIB

Context:

Pralhad Joshi, Union Minister for Consumer Affairs, Food and Public Distribution, released IS 19262:2025, India’s first dedicated quality and safety standard for Electric Agricultural Tractors, marking a major step towards clean, safe, and sustainable farm mechanisation.

About IS 19262:2025

IS 19262:2025 is a national standard that lays down technical, safety, and performance requirements for electric agricultural tractors, ensuring their reliability, safety, and suitability for Indian farming conditions.

Objectives

• Ensure operator and electrical safety
• Promote standardisation of electric farm machinery
• Support the transition towards clean energy in agriculture
• Build consumer confidence in electric tractors

Facts To Remember

1. BJP Ministers inaugurate library built in memory of Vajpayee twice in one day

Union Minister of State for Cooperation Krishan Pal Gurjar and Haryana Local Bodies Minister Vipul Goel inaugurated a library building in Faridabad

2. Share of Banks in SCBs’ Balance Sheet (FY25): Key Takeaways

According to the latest ‘Report on Trend and Progress of Banking in India’ published by the Reserve Bank of India on December 30, 2025, the structure of India’s banking system witnessed marginal but notable shifts during FY25, reflecting changing competitive dynamics and funding patterns.

3. Bracewell announces retirement

Former New Zealand all-rounder Doug Bracewell announced his retirement from all forms of cricket.

4. Deepti Sharma becomes top wicket-taker in women’s T20Is

Deepti Sharma became the top wicket-taker in women’s T20Is.

5.Banks Report 30% Jump in Fraud Amount in April–September 2025: RBI

According to the Reserve Bank of India (RBI)’s Trend and Progress of Banking in India report, the amount involved in banking frauds jumped sharply in the first half of FY26 (April–September 2025), even though the number of reported cases fell.

5. DAC Approves Defence Proposals Worth ₹79,000 Crore

In December 2025, the Defence Acquisition Council (DAC), chaired by Rajnath Singh, approved defence procurement proposals worth ₹79,000 crore.

6. FITT & IDFC First Bank Launch New IGNITE Cohort

On Dec 29, 2025, Foundation for Innovation and Technology Transfer (FITT) partnered with IDFC First Bank.

Program:

• IGNITE (Innovation Growth & Nurturing Initiative for Technology Entrepreneurs)

Objective:

• Support deep-tech startups
• Bridge academia–industry gap

7. DoT Releases National Frequency Allocation Plan-2025

In December 2025, Department of Telecommunications (DoT) released NFAP-2025, effective 30 December 2025.

Purpose:

• Management & allocation of radio frequency spectrum
• Supports 5G, satellite communication, defence & aviation needs

8. India–Australia Trade: Zero Duty on All Tariff Lines

Key Decision:

• 100% Australian tariff lines → Zero duty
• Effective from 1 January 2026

9. HAL’s Dhruv-NG Helicopter Inaugurated

In December 2025, Ram Mohan Naidu inaugurated Dhruv-NG at Hindustan Aeronautics Limited, Bengaluru.

10. Former Bangladesh PM Khaleda Zia Passes Away

On Dec 30, 2025, former Bangladesh PM Begum Khaleda Zia passed away at age 80.

Key Facts:

• Chairperson: Bangladesh Nationalist Party (BNP)
• Born: 15 August 1945, Jalpaiguri (now WB)

11. Jayshree Ullal Tops Hurun India Rich List 2025 (Indian-Origin Executives)

Jayshree Ullal, CEO of Arista Networks, ranked 1st among Indian-origin professional executives.

Key Facts:

• Net worth: USD 5.7 billion (~₹50,170 crore)
• Category: Professional managers/executives (not founders)

12. Russia Launches Soyuz-2.1b Rocket with 52 Satellites

On Dec 28, 2025, Russia launched Soyuz-2.1b rocket from Vostochny Cosmodrome.

13. Jharkhand School Survey Adds ‘Other’ Religion Category

The Jharkhand government has decided to add an ‘Other’ religion category in its ongoing school survey after objections from tribal groups over the exclusion of indigenous faiths.

About the Survey:

• Conducted under DAHAR 2.0 (Digital Habitation Mapping and Real-time Monitoring).
• Implemented by the Jharkhand Education Project Council under Samagra Shiksha.
• Covers children aged 3–18 years to track enrolment, dropouts, and educational planning.

14. Rediff.com India Secures TPAP Licence from NPCI

Rediff.com India Limited, a subsidiary of Infibeam Avenues Limited, received final approval from National Payments Corporation of India (NPCI) to operate as a Third-Party Application Provider (TPAP).

• Platform: RediffPay
• Stage: Closed User Group (CUG) testing
• PSP Bank: Axis Bank

15. IDFC First Bank Launches ‘Gaj’ Metal Credit Card

IDFC First Bank launched ‘Gaj’, an invitation-only premium metal credit card for HNIs.

• Top tier in Ashva–Mayura–Gaj card series
• Joining & annual fee: ₹12,500 + GST
• Annual fee waived on ₹10 lakh annual spend

16. Syria Unveils New Currency Series

Syria unveiled a new series of banknotes, to be circulated from January 1, 2026.

17. India Allows Export of Organic Sugar with Annual Cap

India has partially relaxed export restrictions on organic sugar by permitting limited overseas shipments, while continuing to tightly manage domestic sugar supplies.

18. Arjun Erigaisi finishes Day 1 as table-topper at FIDE World Blitz Championships

In Chess, India’s Arjun Erigaisi finished Day 1 of the 2025 FIDE World Blitz Chess Championships in Doha, Qatar as table-topper. With 10 points in the 13 rounds played, Arjun is currently leading the Open section with Maxime Vachier-Lagrave and Fabiano Caruana.