Daily Insights December 2, 2025

1. SC Tasks CBI with Pan-India Probe into Digital Arrest Scams

Key Points:

• SC ordered CBI to investigate digital arrest scams across India with sweeping powers and coordination with state police

• Digital arrest fraud has defrauded victims of over ₹3,000 crore, predominantly affecting senior citizens

• Fraudsters pose as law enforcement/judicial officials via audio-video calls to intimidate and extort money

• CBI directed to investigate complicit bank staff colluding with cyber criminals in mule account operations

• SC asked RBI to explain why AI/machine learning tools cannot be deployed to identify and freeze suspicious bank accounts

• IT intermediaries mandated to provide complete data assistance to CBI for digital arrest case investigations

• Department of Telecom instructed to prevent issuance of multiple SIM cards to single entities/individuals to curb misuse

• CBI authorized to coordinate with Interpol for targeting cyber-crime hubs operating from offshore jurisdictions

• All states and UTs directed to establish and operationalize Cyber-Crime Coordination Centres linked to I4C (MHA)

• SC adjourned hearings for two weeks to enable CBI selection of specialized investigation teams

• Court expressed shock at scale of digital arrest cases, warning of iron-hand approach

• GS Papers 2 (Polity – Judicial Intervention), 3 (Cybersecurity – Crime Prevention)

2. Industrial Growth Slips to 14-Month Low of 0.4% in October

Key Points:

• Index of Industrial Production (IIP) growth contracted to 0.4% in October 2025, down from 4.6% in September

• Decline marks 14-month low, last recorded in August 2024 when industrial output stalled completely

• Manufacturing output rose modestly at 1.8%, while mining sector contracted by 1.8% year-on-year

• Electricity generation plummeted 6.9% due to extended rainfall and comfortable temperatures reducing demand

• Festive season holidays (Dussehra, Diwali, Chhath) resulted in reduced factory activity and fewer working days

• Nine of 23 industry groups recorded positive growth; largest contributions from basic metals and petroleum products

• Infrastructure and construction goods emerged strongest segment with 7.1% growth

• Capital goods increased 2.4%, intermediate goods grew 0.9%

• Consumer durables fell 0.5%, consumer non-durables contracted sharply at 4.4%

• Primary goods declined 0.6% as mining weakness persisted

• Ministry expects next IIP data for November to release on December 29, 2025

• GS Papers 3 (Economy – Industrial Production Indicators), Current Affairs for Policy Analysis

3. Centre Moves Bills to Raise Pan Masala Cess, Increase Tobacco Excise Duties

Key Points:

• Finance Minister introduced Central Excise (Amendment) Bill 2025 replacing GST compensation cess on tobacco products

• Health Security and National Security Cess Bill 2025 seeks new cess on pan masala manufacturing

• GST compensation cess ending in December 2025 after loan repayment completion; replaced with permanent excise duty

• Proposed excise duty on cigarettes: ₹5,000-₹11,000 per 1,000 sticks depending on length

• 60-70% excise duty on unmanufactured tobacco; 100% on nicotine and inhalation products

• Overall tax incidence on tobacco and pan masala remains unchanged post-cess expiration at 40% GST + excise

• New cess on pan masala aims to generate revenue for public health and national security funding

• Government retains fiscal space to increase excise rates while maintaining revenue stability

• Bills replace temporary COVID-era compensation mechanism with permanent taxation framework for “sin goods”

• TMC member opposed bills citing lack of explicit health warnings in tobacco regulation

• No revenue sharing with states from new cess, raising federalism concerns

• GS Papers 2 (Governance – Fiscal Policy), 3 (Economics – Taxation)

4. Bioterrorism a Serious Threat, World Not Ready: Jaishankar

Key Points:

• EAM S. Jaishankar warned bioterrorism threat is no longer theoretical but an urgent global concern

• Biological weapons misuse by non-state actors and terrorist groups represents serious escalating risk

• Biological Weapons Convention (BWC), established 50 years ago, lacks modern compliance mechanisms and oversight

• BWC missing critical infrastructure: no permanent technical body, no real-time surveillance capabilities, no compliance system

• CRISPR and genetic engineering advances enable creation of engineered pathogens more transmissible and treatment-resistant

• Potential bio-weapons could target specific populations, making them cheaper and easier to produce

• Diseases can cross international borders within hours, making biosecurity a collective global responsibility

• Global South faces particular vulnerability due to weak healthcare systems and limited laboratory infrastructure

• Jaishankar called for modernized BWC with structured review processes for scientific/technological developments

• India proposed comprehensive framework including high-risk agent identification, dual-use research oversight, incident management

• Assistance during biological emergencies must be fast, practical, and purely humanitarian

• GS Papers 2 (International Relations – Global Security), 3 (Disaster Management – Biosecurity)

5. National Action Plan on AMR Needs Stronger Implementation: WHO Report

Key Points:

• National Action Plan on Antimicrobial Resistance (NAP-AMR 2.0) launched for 2025-29 addressing critical gaps

• WHO GLASS 2025 report shows one in six laboratory-confirmed bacterial infections resistant to antibiotic treatment

• E. coli displays over 60% resistance to ciprofloxacin and 40% to third-generation cephalosporins globally

• S. pneumoniae shows 20% resistance to last-resort antibiotics (carbapenems)

• S. aureus exhibits 20% methicillin resistance (MRSA) rate indicating serious concern

• AMR associated with 4.95 million deaths annually; directly attributed to 1.27 million deaths

• India faces higher AMR prevalence than global average, described as “serious and escalating threat”

• NAP 2.0 builds on gaps from first plan (2017-2021), includes specific action plans with timelines and budgets

• Key strategies: increasing stakeholder ownership, inter-sectoral coordination, enhancing lab capacity, infection control

• Private sector engagement strengthened for better AMR surveillance and stewardship programs

• Hub-and-Spoke diagnostic model proposed for rural India to tackle blind prescription epidemic

• GS Papers 3 (Healthcare – Public Health Crisis), 2 (Governance – Policy Implementation)

6. Cautious Optimism: India’s Challenge to Maintain Growth Momentum

Key Points:

• India’s 8.2% growth in Q2 FY2025-26 impressive on standalone basis but faces headwinds maintaining momentum

• Foreign institutional investors showing selling pressure amid macro uncertainties and crude oil price increases

• Rupee depreciation pressure continues despite positive GDP expectations and strong purchasing activity

• FMCG sector gained 0.23%, Healthcare 0.36%, Auto 0.55% showing consumer resilience

• Oil & Gas sector declined 0.97%, Telecom 0.91%, Energy 0.64% reflecting sector-specific challenges

• Sensex ended marginally down by 13.71 points (0.02%), Nifty down 12.60 points (0.05%)

• BSE Mid Cap declined 0.04%, Small Cap 0.13% indicating broader market weakness

• Market sentiment slightly pessimistic with 2,128 declining stocks vs. 2,019 advancing stocks

• Asia-wide inflation concerns noted with Japan’s core CPI at 2.8% as companies transfer rising costs

• Economic growth sustainability requires managing FII flows and currency stability alongside strong fundamentals

• Private consumption and GST-driven tax buoyancy remain positive indicators supporting medium-term outlook

• GS Papers 3 (Economics – Market Performance & Macro Indicators), Current Affairs – Policy Analysis

7. The Need for Heart-Resilient Urban Planning in India’s Cities

Key Points:

• India requires shift from rigid top-down urban planning to flexible human-centered, climate-resilient design thinking

• All 100 Smart Cities now have operational Integrated Command Control Centres (ICCCs) using AI and IoT technology

• Pradhan Mantri Awas Yojana (PMAY-U) sanctioned 1.18 crore houses integrating sustainability and climate resilience features

• Smart Cities Mission pioneering data-driven urban governance transforming service delivery and citizen engagement

• Blue-green infrastructure must be embedded directly into master plans rather than treated as add-ons

• Urban wetlands, green corridors, permeable surfaces enable climate-resilient drainage and heat mitigation

• 15-minute access model for inclusive social infrastructure including health, education, care facilities

• Community-centric service hubs reduce mobility burdens and enhance social equity in urban planning

• India’s rapid urbanization unfolding without coherent design systems, causing unplanned sprawl and environmental stress

• Unlike legacy-burdened nations, India can build “first-version” systems for 2050 with climate resilience from outset

• ULBs require stronger autonomy and coordination mechanisms for integrated planning and effective service delivery

• GS Papers 2 (Governance – Urban Administration), 3 (Environment – Sustainable Urban Development)

8. Capturing Urban Dynamism in the 2027 Census: Redefining Urban India

Key Points:

• Registrar General of India retaining 2011 Census urban area definition in 2027 Census for data comparability

• Urban definition includes Statutory Towns (officially notified) and Census Towns (5,000+ population criteria)

• Census Town criteria: minimum 5,000 population, 400+ persons per sq. km density, 75%+ male workers in non-agriculture

• Current binary classification fails to capture complex urbanization spectrum and semi-urban transitions

• India’s urbanization rate uncertain, estimates ranging 30-70% depending on definitions, hampering targeted urban planning

• Rapid urbanization creates census towns lacking urban governance structures, functioning under outdated rural models

• Internal migration data outdated from 2011 Census; actual migration patterns may differ significantly

• Most migration intra-district (62%) or inter-district (26%); rural-to-rural largest category (48%), urban-to-urban fastest growing

• Cities contribute 60% of India’s GDP while covering only 3% of land, requiring better urbanization understanding

• Boundary freeze date set as January 1, 2026; Houselisting in April 2026, Population Enumeration February 2027

• First-time caste enumeration approved (April 2024) alongside revised worker classification methodology

• GS Papers 1 (Geography – Urbanization), 2 (Governance – Census & Planning), Current Affairs

9. Why Does India Need Bioremediation? Environmental Solutions for Contaminated Sites

Key Points:

• Bioremediation uses microbial consortia and biological processes to treat contaminated soil and wastewater sustainably

• Industrial effluent contamination, microplastic pollution, and chemical waste require integrated biological treatment approaches

• Biofilters with microbial species enable plastic extraction and degradation, offering alternative to traditional disposal

• Microbial-based Fenton photosynthetic fuel cells generate bioelectricity while remediating phthalates from wastewater

• Polypropylene microplastic biodegradation achieved through natural consortia combining bacteria and microalgae

• Hub-and-Spoke diagnostic model for wastewater treatment integrates hub facilities with spoke-connected primary centers

• Biochar-based catalyst systems simultaneously treat wastewater and enable resource recovery in microbial desalination cells

• Hydrocarbon-degrading bacteria consortia developed for process-based remediation of contaminated sites

• Biodegradation of 2,4-dichlorophenol using novel bacterial strains demonstrates emerging contaminant treatment capabilities

• Bioaugmentation technologies repair materials combined with electrochemical processes offer comprehensive environmental cleanup

• Green biorefinery approaches utilizing enzyme hydrolysis produce nanocellulose from agricultural waste

• GS Papers 3 (Environment – Bioremediation & Sustainability), Science & Technology

10. Can India Become Self-Reliant in Rare Earth Element Production? ₹7,280 Crore Scheme

Key Points:

• Union Cabinet approved ₹7,280 crore scheme to develop 6,000 MTPA integrated rare earth permanent magnet (REPM) capacity

• Scheme aims to challenge China’s 85-90% global dominance in sintered NdFeB magnet production

• India currently produces zero meaningful volumes of sintered magnets despite holding 6.27% of global rare earth reserves

• REPM demand projected to double by 2030 driven by EV two-wheelers boom and energy-transition technologies

• Scheme includes ₹6,450 crore sales-linked incentives for five years and ₹750 crore capital subsidy

• Seven-year validity from award date includes two-year gestation period and five-year incentive disbursal period

• Five beneficiaries selected via global competitive bidding, each eligible for up to 1,200 MTPA capacity

• Full value chain integration required: rare earth oxides to metals to alloys to finished REPMs

• India imported 53,000+ metric tonnes of rare earth magnets in FY2024-25, indicating massive import dependence

• China banned export of seven critical rare earth elements (April 2025): samarium, gadolinium, terbium, dysprosium, lutetium, scandium, yttrium

• National Critical Mineral Mission launched: Geological Survey undertaking 1,200 exploration projects between FY25-FY31

• GS Papers 3 (Economy – Manufacturing & Self-Reliance), 2 (International Relations – Resource Security)

11. China’s Slow-Motion Stock Market Rally Starting to Attract Foreign Investors

Key Points:

• China’s CSI300 blue-chip index up 16% year-to-date, matching S&P 500 performance despite trade friction

• Hong Kong’s Hang Seng risen 30%, setting course for biggest annual gain since 2017

• Fund managers holding volatile tech stocks and picking industrial stocks, betting on resilience of two-year rally

• Foreign investors beginning gradual return to China after viewing 2025 market results and stabilizing valuations

• Record HK$1.38 trillion (₹177 billion equivalent) poured into Hong Kong capital markets recently

• Chinese stock recovery defied Sino-American trade tensions through state support and improved corporate governance

• AI-linked stocks surged following DeepSeek chatbot’s impressive release boosting market confidence

• Foreign holdings in China reached 3.5 trillion Yuan by end September 2025, still below 3.9 trillion Yuan peak (2021)

• Morgan Stanley strategist predicts foreign investor return only at “beginning stages of gradual process”

• Shanghai Stock Exchange opened stock option market to foreign investors for hedging purposes

• Distinction emerging between “old China” (exporters/developers facing headwinds) and “new China” (AI/Biotech growth sectors)

• GS Papers 3 (International Economics – Global Markets), Current Affairs – Trade & FDI

12. Yemen’s Worsening Food Security Crisis: Decade-Long Humanitarian Catastrophe

Key Points:

• Yemen facing its worst food security crisis after a decade of severe multifaceted humanitarian emergency

• Record-level hunger experienced as economic collapse, widespread violence, and service breakdown intensify

• Humanitarian agencies increasingly challenged providing lifesaving care amid escalating displacement and suffering

• Widespread civilian displacement resulted from violence involving various Middle Eastern state and non-state actors

• Essential services collapsed including healthcare, water systems, sanitation infrastructure vital for survival

• Economic decline forced increased reliance on remittances as self-sufficiency completely slipped from reach

• Conflict between Saudi-led coalition and Houthis created protracted displacement crisis affecting millions

• Healthcare system degradation worsens disease transmission risks amid food insecurity complications

• Water system failures creating public health emergency compounding hunger and malnutrition crises

• Humanitarian access restrictions limiting aid delivery to affected populations

• International attention inadequate relative to scale and severity of unfolding humanitarian catastrophe

• GS Papers 2 (International Relations – Geopolitics), 3 (Disaster Management – Humanitarian Crisis)

PIB

The Hindu

Daily Insights