20 Dec 2025 | Daily Current Affairs

MPC flags risks of very low inflation | UPSC Economy

Context
Minutes of the Monetary Policy Committee highlight concern that inflation has fallen too low, breaching the lower bound of the inflation target and signalling weak demand conditions in the economy.

Summary
• Data: Headline inflation declined to 0.3% (Oct 2025), mainly due to falling food prices; expected to remain below target for months.
• Why concern: Persistently low inflation reflects a demand deficit, not economic strength.

Impact
• Profit squeeze: Firms cannot raise prices while costs remain sticky, compressing margins.
• Higher real debt: Low inflation increases the real value of repayments, making borrowing costlier.
• Lower investment: Reduced profits and higher real debt discourage private investment, especially MSMEs with thin margins.

Outlook
• Average inflation projected at ~2% in 2025–26.

very low inflation
very low inflation

Supreme Court ruling on Great Indian Bustard protection | UPSC

Context
The Supreme Court of India ruled that corporates have a fundamental duty to protect the ecosystem, holding that Corporate Social Responsibility must include environmental responsibility, especially for protecting endangered species. The judgment arose from petitions concerning threats to the Great Indian Bustard due to infrastructure and power projects.

Great Indian Bustard
• Scientific name: Ardeotis nigriceps.
• IUCN status: Critically Endangered.
• Habitat: Arid and semi-arid grasslands.
• Major States: Rajasthan (largest population), Gujarat, small numbers in Maharashtra, Karnataka.
• Threats: Power transmission lines, habitat loss, renewable and non-renewable energy projects, mining.
• Importance: Flagship species of Indian grasslands; among the heaviest flying birds.
• Legal/Policy support: Protected under Wildlife (Protection) Act, 1972; court invoked Article 51A(g) (duty to protect environment).
• Key conservation point: Corporates must bear costs under polluter pays principle for species recovery.

Great Indian Bustard protection
Great Indian Bustard protection

Supreme Court on child trafficking testimony | UPSC Current Affairs

Context
The Supreme Court of India delivered an important judgment on child trafficking, underlining judicial sensitivity while appreciating evidence of trafficked minors and strengthening victim-centric justice.

Summary
Child trafficking and commercial sexual exploitation are a “deeply disturbing reality” despite existing laws.
• Sole testimony of a trafficked child can be sufficient for conviction if it is credible and convincing.
• Courts must not reject testimony due to minor inconsistencies or delayed resistance by the victim.
• A trafficked child should be treated as an injured witness, not as an accomplice.
• Judicial approach must recognise the socio-economic and cultural vulnerability of minors, especially from marginalised backgrounds.
• Emphasis on avoiding secondary victimisation and ensuring sensitivity and realism in trials.

child trafficking testimony
child trafficking testimony

IN-SPACe space labs proposal initiative | UPSC Current Affairs

Context
IN-SPACe has invited proposals to set up Antariksh Prayogshala (space labs) in select academic institutions to strengthen India’s space research ecosystem, promote hands-on training, and build future-ready space talent.

Summary
• What: Request for Proposals to establish space labs in academic institutions.
• Why: Improve practical exposure, applied research, and early-stage innovation in space technology.
• Coverage: 7 institutions, one per zone, selected in a phased manner.
• Funding: Up to 75% of project cost, capped at ₹5 crore per institution.
• Access: Shared facilities for students, researchers, startups, and industry.

About IN-SPACe
• Full form: Indian National Space Promotion and Authorisation Centre.
• Status: Autonomous body under the Department of Space.
• Role: Regulates, promotes, and authorises private sector participation in India’s space activities; acts as a single-window interface between industry and ISRO.

IN-SPACe space labs
IN-SPACe space labs

Parliament productivity in Winter Session | UPSC Current Affairs

Context
The Winter Session of Parliament of India ended with very high productivity, highlighted by fast-tracked legislative business amid brief Opposition disruptions.

Summary
• Productivity: Lok Sabha 111% (15 sittings); Rajya Sabha 121%.
• Bills: Lok Sabha passed 8 Bills, introduced 10; Rajya Sabha passed 8 Bills and adopted a Statutory Resolution on the Water (Prevention and Control of Pollution) Amendment Act, 2024.
• Key Policy Moves: Replacement of MGNREGA framework; opening civil nuclear sector to private players; 100% foreign direct investment in insurance.
• Debates: 150 years of Vande Mataram; electoral reforms with wide Member of Parliament participation.
• Concern: Disruptions by Opposition; Chair urged adherence to parliamentary decorum.

Parliament productivity
Parliament productivity

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