Daily Current Affairs for UPSC 29th Oct 2025

  1. The Central Thesis: Growth as a Social Technology

• Mokyr’s argument, rooted in his earlier works such as The Enlightened Economy and A Culture of Growth, views technological progress as a collective social phenomenon, not merely the outcome of isolated inventions.
• The Industrial Enlightenment fostered a culture of shared learning, guild-based skill networks, and open knowledge diffusion — much like today’s innovation clusters or start-up ecosystems.
• In this framework, innovation is cumulative and civic, driven by institutions that reward learning, collaboration, and dissent — not merely by markets or profit motives.

• Mokyr’s quip that “economic historians don’t win Nobel Prizes” reflects a disciplinary bias — modern economics tends to privilege regression-based models over archival, interpretive evidence.
• Yet, historical economics offers crucial insights:
• How technological systems evolve through trial and error.
• How societal structures like guilds, apprenticeships, and public institutions shaped innovation.
• Why past economic shocks (wars, pandemics, depressions) inform today’s policy choices.

• The world stands at a new inflection point — AI replacing cognitive labor parallels the Industrial Revolution’s replacement of manual labor.
• The Aghion-Howitt “Schumpeterian” growth framework—emphasizing creative destruction—is evolving again, this time around algorithmic innovation and digital labor displacement.
• Mokyr’s framework helps analyze these transitions beyond the hype of disruption, focusing on how societies adapt, retrain, and reallocate resources in response to technological shocks.

• Historical economic study reveals how technological diffusion and access determine inequality more than innovation itself.
• Just as the printing press, coffee houses, and pamphleteering once democratized knowledge, today’s digital technologies face “access barriers” and algorithmic monopolies that reinforce privilege.
• The lesson: Technology’s promise is social, but its ownership and governance shape outcomes.
• Mokyr’s work thus warns against narrow techno-optimism, arguing for public investment in education, open science, and digital commons.

• Mokyr’s Nobel brings economic history back to the center of economic thought — a reminder that:
• Policy needs perspective: Inflation, productivity, or labor reform debates require long-run framing.
• Data needs context: Numbers without narratives risk misreading structural change.
• Economics needs humility: Progress depends as much on social learning as on market efficiency.

  UPSC Mains Q. “Economic history is not merely a record of the past, but a lens to understand technological and institutional evolution.”

IIP growth dips to three-month low of 4% in Sept. 

• The Index of Industrial Production (IIP) is a composite indicator that measures the short-term changes in the volume of production in a country’s industrial sector.
• It is a key economic indicator reflecting the level of industrial activity and the health of the manufacturing sector, which contributes about 17–18% of India’s GDP.

1. Primary Goods
2. Capital Goods (investment indicator)
3. Intermediate Goods
4. Infrastructure/Construction Goods
5. Consumer Durables
6. Consumer Non-Durables

• Overall IIP Growth: 4% (lowest in 3 months)
• April–September 2025 Growth: 3% — slowest in at least 5 years

• Manufacturing, which forms over three-fourths of the IIP, remains subdued due to weak consumer demand, higher borrowing costs, and global trade uncertainties.
• Sectors like textiles, metals, and chemicals showed contraction, while automobiles and electronics provided limited positive momentum.

• The capital goods index, often viewed as a proxy for private investment, has stagnated — indicating weak capacity expansion by industries.
• This signals cautious investor sentiment despite government emphasis on ‘Make in India’ and ‘PLI schemes’.

• Mining activity was dampened by monsoon-related disruptions, while electricity output remained stable but did not expand enough to offset declines in manufacturing.

• Consumer durables (like electronics, white goods) saw weak demand, reflecting cautious household spending amid inflation and high EMIs.
• Consumer non-durables, like FMCG products, grew moderately — suggesting rural consumption remains tepid.

1. It is released monthly by the Reserve Bank of India.
2. Manufacturing has the highest weight in the IIP.
3. The base year for calculating IIP is 2011–12.

 Answer: (b) 2 and 3 only

Centre approves terms of 8th Central Pay Commission 

  Syllabus Mapping: GS2 – Governance (Government Policies and Interventions)

  What is the Central Pay Commission? 

 The Central Pay Commission (CPC) is an extra constitutional body (set up by the Union Government through executive resolution, not under the Constitution) that reviews and recommends changes to the salary structure of Central government employees, including:

• Civil servants
• Defence personnel
• Employees of Central Public Sector Undertakings (CPSUs)
• Pensioners

  Composition:

• Chairperson: Justice Ranjana Prakash Desai (Retd.)
• Member (Part-time): Prof. Pulak Ghosh, IIM Bangalore
• Member-Secretary: Pankaj Jain, IAS (Secretary, Department of Expenditure)

1. Review and recommend changes in pay structure, allowances, and pension benefits.
2. Examine economic and fiscal conditions to ensure financial prudence.
3. Suggest reforms in non-contributory pension schemes.
4. Assess impact on State finances, and propose coordination between Centre and States.
5. Ensure that pay parity and welfare measures are in line with employee productivity and public service standards.

  1. Administrative Significance:

• The CPC ensures periodic review of pay structures, preventing stagnation in government service.
• It helps maintain morale, efficiency, and retention within public administration, particularly among defence and technical cadres.

• Positive:
• Boosts domestic consumption and demand, especially in middle-income households.
• Indirectly contributes to GDP growth via increased spending.
• Concerns:
• The 7th CPC (2016) increased salaries by ~23.5%, contributing to fiscal stress.
• The 8th CPC must balance between employee welfare and macroeconomic stability, especially amid fiscal deficit concerns.
• Large pay hikes may crowd out spending on developmental and capital expenditure.

• The Commission must ensure that wage revisions do not destabilize the Fiscal Responsibility and Budget Management (FRBM) targets.
• It must align pay hikes with inflation, productivity, and resource availability.
• The inclusion of non-contributory pension liabilities further adds to fiscal strain.

• Regular pay revisions improve governance efficiency and accountability, ensuring that employees remain motivated.
• However, frequent pay hikes without productivity assessment risk creating a costly bureaucracy with limited efficiency gains.

1. The Central Pay Commission is a constitutional body established under Article 309 of the Constitution.
2. Its recommendations are binding on the Union Government.
3. The 8th Central Pay Commission will make its recommendations within 18 months of its constitution.

 Answer: (c) 3 only

Cloud-seeding trials held to check drop in air quality

  Context

• With Delhi’s air quality worsening amid surging pollution levels, the Delhi government, in collaboration with the Indian Institute of Technology (IIT) Kanpur, has begun cloud-seeding trials to induce artificial rainfall.
• Two cloud-seeding operations were conducted recently (on October 23 and 28, 2025), but no significant rainfall was observed due to low moisture content in clouds. Despite these initial setbacks, officials plan 9–10 more trials in the coming days, hoping for improved results as atmospheric conditions change.
• The aim is to artificially trigger rainfall that can help wash away pollutants, reduce Particulate Matter (PM2.5 and PM10) concentrations, and temporarily improve Delhi’s Air Quality Index (AQI).

Cloud Seeding is a form of weather modification technology designed to enhance precipitation (rain or snow) by dispersing certain substances into the atmosphere that encourage cloud condensation and droplet formation. 

  Common Chemicals Used:

1. Silver Iodide (AgI)
2. Potassium Iodide (KI)
3. Sodium Chloride (NaCl – common salt)
4. Dry Ice (Solid CO₂)

1. Identification of Suitable Clouds:
   Meteorologists identify clouds with sufficient moisture and updraft potential.
2. Aerial or Ground-Based Seeding:
   Aircraft or rockets disperse the seeding agents into the clouds.
3. Microphysical Reaction:
   Particles catalyze the formation of larger droplets.
4. Precipitation:
   When droplets reach a critical size and weight, they fall as rain.

  1. Purpose of the Current Operation

• Delhi’s air quality has plunged to the ‘severe’ category, mainly due to stubble burning, vehicle emissions, and winter inversion that traps pollutants near the surface.
• Artificial rain through cloud seeding is being attempted as an emergency measure to temporarily reduce pollution levels by settling dust and particles.
• The initiative is part of a ₹3.2 crore MoU between IIT Kanpur and the Delhi Government signed on September 25, 2025.

• Low moisture content in clouds over Delhi and adjoining areas hindered rainfall formation.
• Humidity levels were between 15–20%, well below the ideal threshold of 40–50% needed for effective cloud seeding.
• IIT Kanpur’s Director Manindra Agrawal stated that while the trials generated valuable data, rainfall cannot be guaranteed even under controlled conditions.

• Pollution Mitigation: Artificial rain helps remove particulate matter from the air, improving visibility and health outcomes.
• Water Resource Management: Can be used to enhance rainfall in drought-prone or arid regions.
• Agricultural Benefits: Helps maintain soil moisture and crop yields during dry spells.

• Reducing vehicular emissions,
• Controlling industrial discharge, and
• Managing stubble burning effectively.

  UPSC Prelims Q. With reference to Cloud Seeding, consider the following statements:

1. Cloud seeding involves dispersing substances like silver iodide or sodium chloride into clouds to induce rainfall.
2. Cloud seeding can create clouds in completely dry conditions.
3. India has conducted cloud seeding trials in cities like Delhi and Pune.

 Answer: (a) 1 and 3 only

Union Cabinet decides to raise fertilizer subsidy for winter crops to ₹37,952 crore

• GS Paper 3 – Agriculture: Subsidies, Pricing and Food Security
• GS Paper 2 – Governance: Government Policies and Interventions

  What is a Fertilizer Subsidy?

A fertilizer subsidy is the financial support provided by the government to fertilizer manufacturers or importers so that fertilizers can be sold to farmers at a price lower than the market rate. This ensures that farmers can afford essential plant nutrients and maintain agricultural productivity. 

  Objective:

• To make fertilizers affordable for farmers.
• To encourage balanced use of nutrients (N, P, K, S).
• To protect farmers from global price volatility in fertilizer markets.
• To support food security by sustaining crop yields.

• Total allocation: ₹37,952 crore
• Increase: ₹14,000 crore more than the last Rabi season.
• Period: October 1, 2025 – March 31, 2026
• Subsidy increase:
• Phosphate (P): ₹47.96/kg (up from ₹43.60/kg)
• Sulphur (S): ₹2.87/kg (up from ₹1.77/kg)
• Nitrogen (N): ₹43.02/kg (unchanged)
• Potash (K): ₹2.38/kg (unchanged)

• The increase in subsidy will shield farmers from rising global fertilizer prices and ensure affordable access to key inputs during the crucial Rabi season.
• It supports production of key winter crops like wheat, mustard, and pulses, which are essential for India’s food security.

• Fertilizer subsidy forms one of the largest components of India’s subsidy bill, alongside food and fuel.
• The allocation for FY 2025–26 is expected to push the total fertilizer subsidy expenditure beyond ₹2 lakh crore, exerting pressure on fiscal deficit targets.

• India imports over 80% of its phosphatic and potassic fertilizers.
• The Russia–Ukraine war, energy price hikes, and disrupted global supply chains have increased fertilizer import costs significantly.

• Excessive use of urea (nitrogen-based fertilizer) due to its low price has led to soil nutrient imbalance.
• The government is trying to promote balanced fertilization through the Nutrient-Based Subsidy Scheme and the introduction of Nano Urea.

• Subsidy rationalization and balanced nutrient use are key for improving soil health and reducing greenhouse gas emissions from overuse of nitrogen fertilizers.

1. Under the Nutrient-Based Subsidy (NBS) Scheme, the subsidy is provided directly to farmers through the DBT system.
2. The price of urea in India is statutorily controlled, and the government bears the difference between the cost of production and sale price.
3. The 2025 Rabi season fertilizer subsidy covers nutrients like Nitrogen, Phosphorous, Potash, and Sulphur.

 Answer: (b) 2 and 3 only

How Amazon’s cloud outage affected services and apps globally 

• Data storage (S3, DynamoDB),
• Computing power (EC2),
• Content delivery, and
• Software hosting for individuals, corporations, and governments.

  What is a Cloud Outage? A cloud outage occurs when a cloud service provider’s servers or data centers face technical failure, network breakdown, or software malfunction, leading to temporary disruption of hosted services. In this case, the issue stemmed from a Domain Name System (DNS) failure at AWS’s Northern Virginia data center.

• DNS acts like the “phonebook” of the internet, translating website names (like chat.openai.com) into numerical IP addresses.
• When DNS fails, devices can’t locate or access servers — even if those servers are functioning.

  Analysis 1. Scale of the Disruption

• The outage disrupted over 2,000 companies, including global giants across multiple sectors — e-commerce, finance, gaming, social media, and AI.
• Even ChatGPT and Perplexity AI experienced temporary service delays, showing how AI systems depend on centralized cloud architecture.

• The fault was traced to a DNS configuration failure at AWS’s US-East-1 region.
• AWS’s DynamoDB (database service) and Elastic Load Balancing (traffic management) systems were heavily affected.
• AWS engineers restored full functionality by 6:53 PM ET, after roughly 15 hours of disruption.

• Each hour of downtime for AWS reportedly costs up to $150 million globally due to halted transactions, ad revenue loss, and interrupted customer services.
• Major e-commerce firms like Amazon.com and Coinbase saw temporary transaction failures, while businesses using AWS-hosted apps faced workflow paralysis.

• Similar large-scale outages occurred in September 2021 and December 2021, both traced to the same US-East-1 region.
• These repeated failures raise concerns about over-centralization — when a few data centers control critical internet infrastructure for the entire world.

• AWS powers a third of the global internet backbone. When it fails, ripple effects are seen from Silicon Valley to Singapore.
• Dependence on a few hyperscalers (AWS, Microsoft Azure, Google Cloud) creates a “single point of failure” risk for global digital ecosystems.
• This outage shows how AI platforms, fintech apps, and even healthcare systems—all now cloud-reliant—can become digitally paralyzed during such disruptions.

• Overdependence on single cloud providers increases systemic risk.
• Enterprises should diversify through multi-cloud strategies—using more than one provider to avoid total shutdowns.
• As AI and IoT adoption surges, data load and latency management will become more complex, demanding stronger cloud governance and cybersecurity mechanisms.

1. Cloud computing allows users to store and process data on remote servers accessed via the Internet.
2. Amazon Web Services (AWS), Google Cloud, and Microsoft Azure are major providers of global cloud infrastructure.
3. A Domain Name System (DNS) failure can disrupt access to cloud-based applications even if servers remain operational.

 Answer: (d) 1, 2 and 3

Jiyo Parsi Scheme

• Launched in 2013-14 as a Central Sector Scheme by the Ministry of Minority Affairs.
  
  
• Objective: Reverse the declining Parsi population using scientific protocols and community support.
  
  
• Three major components:
  
  
• Medical Assistance – Financial aid for infertility treatment and other medical procedures.
  
  
• Health of Community – Support for child-care and assistance for dependent elderly members.
  
  
• Advocacy – Awareness programmes, counselling and outreach to encourage population growth.
  
  
• Focus on improving fertility rates, reducing socio-economic barriers, and enhancing community participation.
  
  
• Scheme has contributed to increasing Parsi births and improving healthcare access within the community.
  
  
  

  Syllabus: GS Paper-III – Indian Economy: Money Laundering, Regulatory Framework 

  Context: Enforcement Directorate (ED) has significantly intensified investigations and prosecution actions under the PMLA since 2014, indicating India’s stronger approach toward combating economic offences. 

  Key Points

• PMLA enacted in 2002 and came into force in 2005 to curb money laundering and confiscate proceeds of crime.
  
  
• Section 3 defines money laundering as concealment or projection of tainted proceeds as untainted assets.
  
  
• Objectives:
  
  
• To prevent and control money laundering.
  
  
• To attach and confiscate assets derived from criminal activities.
  
  
• To deal with economic offences linked to scheduled crimes.
  
  
• Major amendments in 2009 and 2012 widened the scope and enforcement provisions.
  
  
• As of 2024-25, the ED has initiated 775 new investigations and filed 333 prosecution complaints under PMLA.
  
  
• ED is the nodal enforcement agency, empowered to investigate, attach properties and file cases before Special Courts.
  
  
• Mandatory record-keeping and client verification by banks, financial institutions and intermediaries.
  
  
• Institutional mechanisms include:
  
  
• Adjudicating Authority – confirms attachment of assets,
  
  
• Appellate Tribunal,
  
  
• Special Courts for speedy trials under PMLA.
  
  
• Allows international cooperation for tracing and recovering foreign-based assets.
  
  
• Priority Enforcement Areas (2025):
  
  
• Stronger action under FEMA cases.
  
  
• Under Fugitive Economic Offenders Act, 2018: 24 applications filed and 14 declared fugitives; ₹900 crore+ worth assets confiscated so far.
  
  
  

Global Gender Gap Report 2024” 

  Syllabus: GS Paper-II – Social Justice & International Reports 

Context: The World Economic Forum released the Global Gender Gap Report 2024, measuring gender-based disparities across four key areas and assessing progress toward worldwide gender parity. 

Key Points

• Annual gender equality index published by the World Economic Forum (WEF).
  
  
• Tracks gaps in Economic Participation & Opportunity, Educational Attainment, Health & Survival, and Political Empowerment.
  
  
• Introduced in 2006; longest-standing index monitoring gender gap trends globally.
  
  

• Global gender gap score: 68.5% closed (0.1% improvement over 2023).
  
  
• At current rate, 134 years required to achieve full gender parity.
  
  
• India ranked 129th out of 146 countries; Iceland topped for 15th consecutive year.
  
  
• Other top performers: Finland, Norway, New Zealand, Sweden, Nicaragua, Germany, Namibia, Ireland, Spain.
  
  
• India has closed 64.1% of its overall gender gap.
  
  
• In South Asia, India ranks 5th after Bangladesh, Nepal, Sri Lanka & Bhutan; Pakistan last.
  
  
• Sudan ranked last globally; Pakistan 145th.
  
  
• India remains among nations with lowest economic parity (<30% parity in estimated earned income).
  
  
• Strength areas:
  
  
• Secondary education enrolment parity – among the best performers
  
  
• Political empowerment – India ranks 65th globally
  
  
• Women Heads of State indicator (last 50 years) – India ranks 10th
  
  
  

  Syllabus: GS Paper III – Environment and Ecology (Wetlands; Freshwater Ecosystems)

• Located in the state of Manipur, Loktak Lake is the largest freshwater lake in Northeast India, famed for its floating phumdis and the world-unique Keibul Lamjao National Park.
  
  
• The lake is fed by rivers including the Khuga, Western, Nambul, Imphal, Kongba, Iril, Thoubal, Heirok and Sekmai.
  
  
• It was designated a Wetland of International Importance under the Ramsar Convention in 1990, and placed on the Montreux Record in 1993.
  
  
• The study found that changes in land-use – especially conversion for agriculture, settlements and shifting cultivation – in the catchment are degrading water quality in rivers that drain into the lake.