Daily Current Affairs (DCA) 26 November, 2025

Daily Current Affairs Quiz
26 November, 2025

International Affairs

1. Hayli Gubbi Volcano Eruption, Ethiopia

Source: IE

Event Overview

• Volcano: Hayli Gubbi, Afar region, northeastern Ethiopia
• Location: Afar Triangle, part of the East African Rift System, a tectonically active zone
• Eruption Date: 23 November 2025 (first eruption in 12,000+ years)
• Impact:
  • Massive ash cloud travelled across the Red Sea and South Asia
  • Several flights in India were diverted or delayed due to ash plume
  • No reported casualties; high-altitude ash had minimal ground-level air impact

Reason for the Eruption

• Occurs due to magma rising from the asthenosphere, a weaker zone in the mantle beneath the Earth’s crust
• Gas pressure buildup in magma (mainly nitrogen and sulphur compounds) forces molten rock upward through cracks or fissures
• Hayli Gubbi’s eruption is linked to the tectonic activity of the East African Rift, where the African Plate is slowly splitting

About Volcanic Eruptions

• Definition: Expulsion of gases, rock fragments, and molten lava from inside the Earth through vents or fissures
• Magma Source: Originates in the asthenosphere, a weaker zone of the Earth’s mantle beneath the crust
• Trigger: Dissolved gases in magma expand, increasing pressure and forcing magma upward

Key Eruption Materials

• Lava: Molten rock that reaches the surface
• Pyroclastic debris: Fragmented volcanic rock
• Volcanic bombs: Large rocks ejected from the volcano
• Ash and dust: Fine particles carried by wind
• Gases: Nitrogen and sulphur compounds

Recent Global Eruption Examples

• Sabancaya, Peru (2025)
• Ruang, Indonesia (2025)
• Kilauea, USA (2024)
• Etna, Italy (2025)

Major Consequences of Volcanic Eruptions

Positive Impacts

• Provides direct insights into Earth’s interior
• Source of geothermal energy
• Temporary atmospheric cooling due to aerosols

Negative Impacts

• Air pollution and acid rain
• Seismic disturbances leading to earthquakes
• Loss of life and property in nearby areas

National Affairs

1. The State of the World’s Children (SWOC) 2025

Source: TH

Context:

The State of the World’s Children (SWOC) 2025 report by UNICEF highlights persistent child deprivation in India despite global improvements in child welfare. India carries one of the largest burdens of multidimensionally deprived children, with gaps in education, health, nutrition, sanitation, housing, and water access.

Key Highlights of the Report:

Key Global Findings

• Approximately 417 million children (1 in 5) are severely deprived in at least two critical areas.
• 118 million children face three or more deprivations, and 17 million endure four or more.
• Most common deprivation: lack of adequate sanitation, affecting 65% of children in low-income countries.
• Progress has slowed: the share of children with at least one severe deprivation fell from 51% in 2013 to 41% in 2023, but gains are uneven.
• Vulnerable groups (very young, disabled, conflict- or climate-affected) face disproportionate deprivation.

Regional & Country-Level Insights

• Sub-Saharan Africa and South Asia account for the highest concentrations of multi-dimensional child poverty.
• In many countries, deprivation is structural, reflecting gaps in access to services and basic infrastructure rather than only low income.

Scale of Child Deprivation in India

• 206 million Indian children face at least one deprivation.
• 62 million children experience two or more deprivations, indicating deep structural inequities.
• Vulnerabilities are compounded by climate change, conflict, and potential development-aid cuts, which could result in:
  • 4.5 million additional under-five deaths by 2030
  • 6 million children pushed out of school by next year

Budgetary Allocation vs. Implementation Gaps

• Union Budget 2025–26 allocated ₹26,890 crore to the Ministry of Women & Child Development, including:
  • ₹21,960 crore for Saksham Anganwadi & POSHAN 2.0
  • ₹1,500 crore for Mission Vatsalya
• Ministry’s share in central expenditure fell from 0.96% in 2015–16 to 0.5% in 2025–26, showing limited prioritisation of child welfare.
• Implementation challenges:
  • Delays in upgrading anganwadi infrastructure
  • Shortages of trained frontline staff

Structural Inequities and Vulnerabilities

• Digital exclusion limits access to online learning and skill-building.
• Urban slums face malnutrition, unsafe housing, pollution, and disrupted schooling.
• Climate change disproportionately affects the poorest, disrupting services and displacing families.

Role of States: Kerala as a Model

• Kerala leverages panchayati raj institutions and community-based organisations (CBOs) at anganwadi level.
• CBOs actively engage local communities and ward members, improving child welfare outcomes.
• Demonstrates how community-owned initiatives can strengthen child rights and service delivery.

Recommendations for India (Aligned with UNICEF’s Five-Point Framework)

• National Mission on Child Poverty: Treat child welfare as a priority.
• Universal digital access for learning and information.
• Stronger social protection and public services to reach the last mile.
• Enhance frontline workforce: Timely fund disbursement, fully functional anganwadis, and on-the-spot inspections.
• Technology-driven interventions for real-time monitoring and accountability.
• Cross-ministry and state coordination to maximize impact.

Implications

• India’s demographic dividend depends on children being healthy, educated, and safe.
• Without systemic reforms, millions will remain unserved, unseen, and unheard, limiting the country’s long-term progress.
• Stronger systems at both central and state levels are essential to translate policies into tangible outcomes.

Banking/Finance

1. Indian Rupee Becomes Asia’s Worst‑Performing Currency in 2025

Source: TH

Context:

• The Indian Rupee (INR) has depreciated by ~4.3% against the US Dollar in 2025, emerging as the worst-performing major Asian currency this year.
• On 21 November 2025, INR touched a record low of ₹89.48 per USD, breaching levels previously defended by the Reserve Bank of India (RBI).
• Analysts warn the rupee could slide further to ₹90 per USD if global and domestic pressures persist.

Causes of Rupee Depreciation

Global Dollar Strength

• Strong US dollar amid rising US interest rates has reduced demand for emerging-market currencies.
• Safe-haven flows towards the USD have increased, weakening INR relative to other Asian currencies.

Trade & Current Account Pressures

• Export challenges due to high US tariffs and global trade uncertainties.
• Heavy import demand for oil, gold, and commodities increases the foreign exchange outflow, straining INR.

Capital Outflows

• Foreign Portfolio Investors (FPIs) have withdrawn funds due to global risk aversion.
• India’s external investment position and lower foreign reserves compared to some Asian peers reduce buffers against depreciation.

Comparative Underperformance

• While other Asian currencies held steady or appreciated, INR lagged behind due to trade deficits and structural vulnerabilities.

RBI’s Measures & Market Intervention

• RBI intervened in spot and NDF markets to stabilize the rupee, helping it recover to ≈ ₹89.2–89.3/USD temporarily.
• Interventions aim to arrest sharp depreciation while maintaining market confidence.
• Future interventions will depend on capital inflows, global dollar strength, and trade balances.

Implications of Depreciation

Risks

• Imported Inflation: Higher costs for oil, fuel, and raw materials.
• Interest Rate Pressure: Inflationary impact limits RBI’s flexibility on policy rates.
• External Debt Burden: Dollar-denominated debt repayments become costlier.
• Investor Confidence: Persistent depreciation may deter foreign investment.

Opportunities

• Export Competitiveness: Cheaper Indian goods for foreign buyers could boost sectors like IT services, manufacturing, and labor-intensive exports.
• Policy Incentives: Opportunity to implement export-supportive measures, diversify trade partners, and attract capital inflows.

Factors to Watch for Future Rupee Movement

• Global Dollar Trajectory: US Fed’s interest rate policy and dollar strength.
• External Trade Balance: Exports, imports, and trade agreements with major partners.
• Capital Flows: FPI/FDI inflows and outflows.
• RBI Policy & Reserves: Intervention strategies and reserve adequacy.
• Domestic Macroeconomic Fundamentals: Inflation, fiscal discipline, and growth outlook.

2. India Records Negative Net FDI in September 2025

Source: TH

Context:

• India recorded negative net Foreign Direct Investment (FDI) for the second consecutive month in September 2025.
• According to RBI data, net FDI stood at –$2.4 billion, indicating that more capital left India than flowed in.
• This trend signals a reversal in long-term capital flows and potential caution among foreign investors.

About Foreign Direct Investment (FDI)

• FDI refers to cross-border investments made by a resident in one country into a business in another country, with the goal of establishing a lasting interest (typically ≥10% equity stake).

Forms of FDI

• Greenfield Investment: Establishing new operations or facilities.
• Mergers & Acquisitions (M&A): Buying stakes in existing companies.
• Reinvested Earnings: Profits earned by foreign investors that are reinvested locally.
• Intra-Company Loans: Loans from parent companies to subsidiaries.

Importance of FDI

• Provides long-term capital inflow and supports economic growth.
• Facilitates technology transfer and managerial expertise.
• Creates employment opportunities and boosts exports.
• Strengthens domestic industries through enhanced competition and innovation.

Causes of Negative FDI in September 2025

• Global Risk Aversion: Investors pulling back due to geopolitical tensions or global market volatility.
• Rising US Dollar & Interest Rates: Stronger dollar and attractive returns abroad prompted capital outflows.
• Domestic Policy or Regulatory Concerns: Certain sectors may have seen divestment due to regulatory uncertainties.
• Profit Repatriation: Multinational companies transferring profits back to their home countries.

Implications of Negative FDI

• Capital Outflow Pressure: May affect foreign exchange reserves and the rupee.
• Investment Confidence: Signals caution among foreign investors regarding long-term growth prospects.
• Economic Growth: Reduced inflows could impact infrastructure projects and sectoral expansion.
• Policy Response: Government may consider incentives or reforms to attract and retain FDI.

FDI vs. FPI: Clarification

The figures relate to:

• Foreign Direct Investment (FDI): Long-term investment into assets, operations, factories, or significant stakes
  Not:
• Foreign Portfolio Investment (FPI): Trading in equity or debt securities

FDI is considered more stable, so negative net FDI is a cause for concern.

3. RBI Confirms Inflation Forecasts Are Unbiased Amid Critiques

Source: BS

Context:

RBI Deputy Governor Poonam Gupta clarified that the Reserve Bank of India’s (RBI) inflation forecasts, used in the Monetary Policy Committee (MPC) resolutions, are unbiased. She emphasized that forecast errors are natural, but there is no systematic directional bias in predicting inflation or GDP growth.

Inflation Forecasting Framework

• MPC provides forward-looking forecasts of inflation and GDP up to four quarters ahead
• Forecasting considers:
  • Current conditions
  • Near-term economic trajectory
  • Policy transmission lags
• Forecast errors are common globally and unavoidable
• India faces unique challenges:
  • High weight of food in CPI basket
  • Volatile food prices affecting short-term inflation

Multifaceted Approach to Forecasting

RBI uses a suite of models and approaches:

• Structural and time-series models
• Benchmark indicator and dynamic factor models
• Historical data analysis to capture momentum and base effects
• High-frequency indicators and surveys for real-time demand-supply dynamics
• Expert consultation to assess turning points, structural breaks, and emerging risks
• Continuous improvement through state-of-the-art modeling and stakeholder feedback

Growth Projections

• RBI employs a balanced synthesis of:
  • Econometric analysis
  • Contemporary economic conditions
  • Forward-looking sectoral perspectives
• Projections are derived from multiple models, avoiding reliance on a single approach

Balance of Payments (BoP) Data Updates

• RBI plans to release monthly BoP statistics, currently quarterly
• Purpose: track external position, inflows, and outflows of foreign currency
• Implementation measures:
  • Streamlined reporting from entities
  • Reduced quarterly release lag: 90 days → 60 days starting Q1 FY26
• Monthly BoP expected ~40 days lag, at slightly aggregated level

4. SEBI Eases Qualification Norms for Investment Advisors and Research Analysts

Source: ET

Context:

The Securities and Exchange Board of India (SEBI) has relaxed educational requirements for Investment Advisors (IAs) and Research Analysts (RAs). This move aims to broaden the talent pool while maintaining professional standards in the capital markets.

Investment Advisors vs Research Analysts

Feature	Investment Advisor (IA)	Research Analyst (RA)
Primary Role	Provides personalized investment advice to clients based on their financial goals, risk profile, and market conditions.	Conducts research and analysis of securities, industries, and markets to publish reports and recommendations.
Client Interaction	Directly interacts with individual or institutional clients to guide investment decisions.	Typically interacts with brokers, fund managers, or the public through published research; limited direct client advisory.
Regulatory Registration	Registered with SEBI as an Investment Advisor under SEBI (Investment Advisers) Regulations, 2013.	Registered with SEBI as a Research Analyst under SEBI (Research Analysts) Regulations, 2014.
Services Offered	Personalized portfolio planning, asset allocation, investment recommendations, risk management.	Investment reports, security ratings, target prices, sectoral/stock analysis, market outlook.
Fee/Compensation	May charge advisory fees, subscription fees, or a percentage of assets under advice; cannot earn brokerage or commissions.	Earns salary, consultancy, or commission from publishing reports; cannot give personalized advice to individual clients.
Scope of Advice	Holistic financial guidance covering multiple asset classes (equities, debt, mutual funds, insurance, etc.).	Focused on specific securities or market sectors; does not provide end-to-end financial planning.
Accountability	Liable for client losses if advice violates SEBI regulations or suitability norms.	Liable for accuracy and integrity of research reports; must avoid conflict of interest.

Educational Qualification Relaxed

• Graduates from any discipline can now apply for registration as:
  • Investment Advisors (IAs)
  • Research Analysts (RAs)
• Earlier, only candidates with specific finance, economics, or related educational backgrounds were eligible.

Mandatory Certification Remains

• Despite the relaxation, candidates must still pass the NISM certification exam.
• Ensures that all IAs and RAs have the necessary domain knowledge and professional preparedness.

Objective of the Change

• Encourage more participation in capital market advisory and research roles.
• Balance inclusivity and competence: While educational barriers are lowered, knowledge standards are upheld through mandatory certification.

5. SEBI Proposes Simplified Process for Duplicate Securities Certificates

Source: BL

Context:

SEBI aims to overhaul the procedure for issuing duplicate securities certificates to reduce paperwork, standardise documentation, and ease investor compliance. Duplicate Securities Certificates are copies of original physical certificates of financial instruments such as shares, bonds, or mutual fund units that an investor may lose, damage, or have stolen.

Current Procedure

• Governed under SEBI Master Circular (June 23, 2025).
• Investors must:
  1. File an FIR/police complaint.
  2. Publish a newspaper advertisement.
  3. Submit separate affidavit and indemnity bond on non-judicial stamp paper.
• Simplified process available only for holdings ≤ ₹5 lakh.
• Inconsistent practices across companies and registrars cause delays and higher costs.

Proposed Changes

1. Higher Threshold

• Increase the simplified documentation limit from ₹5 lakh → ₹10 lakh.
• For holdings ≤ ₹10 lakh:
  • Only one affidavit-cum-indemnity bond required.
  • Reduces procedural burden and stamp duty costs.
• Holdings > ₹10 lakh:
  • FIR or equivalent document containing folio & certificate numbers still required.

2. Unified Documentation

• Replace separate affidavit and indemnity bond with single, standardised document.
• Stamp duty applied as per claimant’s state of residence.
• Standardisation ensures consistency across registrars and companies.

3. Newspaper Advertisement

• Listed companies may issue the mandatory advertisement on behalf of investors.
• Removes the need for investors to handle this themselves.

4. Dematerialisation

• All duplicate certificates to be issued in demat form only, supporting higher demat adoption.

Agriculture

1. Draft Seeds Bill: Key Features, Reforms, Penalties, and Farmer Concerns

Source: TH

Context:

The Union Agriculture Ministry released the Draft Seeds Bill (2024) on November 12, inviting public comments until December 11. The Bill seeks to modernise India’s seed regulatory framework, replacing outdated provisions under the Seeds Act, 1966 and the Seeds (Control) Order, 1983.

The government claims the Bill will ensure quality seeds, promote ease of doing business, and retain stringent penalties for serious violations.

Historical Background

Seed Demand and Surplus

• Seed requirement (2023–24): 462.31 lakh quintals
• Seed availability: 508.60 lakh quintals
• Surplus: 46.29 lakh quintals

Why Reform the 1966 Act?

The seed industry argues the 1966 law is outdated because:

• Major technological advancements have transformed seed development.
• Global and domestic seed trade has evolved significantly.
• New tools like value-for-cultivation trials, genetic purity standards, and biotech traits require updated regulations.

Industry sees this Bill as long overdue modernization, while farmer groups fear corporate capture and loss of seed sovereignty.

Key Provisions of the Draft Seeds Bill

1. Farmers’ Rights Retained

Farmers can:

• Grow
• Sow
• Re-sow
• Save
• Exchange
• Share
• Sell farm-saved seeds

Restriction:
They cannot sell farm seeds under a brand name without meeting regulatory requirements.

2. Clear Definitions

The Bill separately defines:

• Farmer
• Dealer
• Distributor
• Producer
  This creates clarity in responsibilities across the seed supply chain.

3. Central and State Seed Committees

Central Seed Committee (27 members)

Functions:

• Recommend minimum standards for:
  • Germination
  • Genetic purity
  • Physical purity
  • Trait expression
  • Seed health
• Maintain standards for imported and domestic seeds.
• Oversee the National Register of Seed Varieties.

State Seed Committee (15 members)

Functions:

• Advise State governments on:
  • Registration of seed producers
  • Seed processing units
  • Dealers and distributors
  • Plant nurseries
• Execute seed laws at the State level.

4. Mandatory Registration

• All seed processing units must be registered with the State Government.
• A Central Accreditation System may be created for companies operating in multiple States to simplify compliance.

5. National Register of Seed Varieties

A new Registrar will:

• Maintain a National Register of seed varieties.
• Oversee Value for Cultivation and Use (VCU) trials to assess performance.

6. Seed Testing Framework

The Bill proposes:

• Central Seed Testing Laboratories
• State Seed Testing Laboratories
  These will test seeds for quality parameters as prescribed.

7. Strong Enforcement Mechanism

Seed Inspectors will have powers under the Bharatiya Nagarik Suraksha Sanhita (BNSS) to:

• Search
• Seize
• Investigate offences related to seed quality

8. Penalties and Punishments

The Bill categorizes offences as:

• Trivial
• Minor
• Major

Punishments include:

• Fines ranging from ₹50,000 to ₹30 lakh
• Imprisonment up to 3 years

This is significantly stricter than the 2019 draft, which had:

• Fines between ₹25,000 and ₹5 lakh
• Jail term up to 1 year

How the 2024 Draft Differs from 2019 Draft

1. Higher penalties for seed violations
2. Tighter quality norms
3. Closer alignment with PPV&FRA (2001)
4. More liberalised approach to seed imports
5. Stronger central oversight through committees

Concerns of Farmers’ Groups

1. Higher Cost of Cultivation

Groups like the All India Kisan Sabha argue:

• Greater corporate presence will increase seed prices.
• Farmers may become dependent on private companies.

2. Threat to Seed Sovereignty

They fear:

• Corporate monopolies may dominate seed markets.
• Traditional seed-sharing systems could weaken.
• India’s biodiversity conservation framework may be undermined.

3. Over-Centralisation

The Bill introduces:

• A more centralised regulatory structure, which farmer groups believe:
  • Reduces State autonomy
  • Weakens farmer-centric protections

4. Potential Conflict with Existing Laws

Farmer groups argue the Bill must align with:

• Protection of Plant Varieties and Farmers’ Rights Act (PPV&FRA), 2001
• Convention on Biological Diversity (CBD)
• International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA)

They fear the new Bill dilutes these safeguards.

Facts To Remember

1. GRAP Stage-3 revoked in Delhi-NCR amid AQI improvement

The Commission for Air Quality Management (CAQM) on Wednesday revoked theStage-3 restrictions under the Graded Response Action Plan (GRAP) in Delhi-NCR, after the air quality showed improvement in the last three days.

2. Assam Anti-Polygamy Bill 2025

Assam government introduced the Assam Prohibition of Polygamy Bill, 2025 to criminalise polygamous marriages and promote gender justice.

Aim: Ensure monogamy as the legal norm, protect women’s rights, and provide compensation to affected spouses.

Exclusions: Scheduled Tribes and Sixth Schedule areas (autonomous hill districts and Bodoland Territorial Region) remain outside the law.

3. PM Modi inaugurates Safran Aircraft Engine Services India facility in Hyderabad

  Prime Minister Narendra Modi today virtually inaugurated the Safran Aircraft Engine Services India-SAESI facility in Hyderabad, Telangana.