Period Covered: December 1, 2025 – December 31, 2025
Report Focus: Rural Governance Overhaul, Monetary Easing, and Indigenous Defence Capabilities.
Target Audience: UPSC CSE (Mains 2026), RBI Grade B, NABARD, SSC CGL, and Defence Aspirants.
EXECUTIVE SUMMARY: THE DECEMBER TRANSFORMATION
December 2025 marked the culmination of a transformative year for India, defined by the historic legislative shift from MGNREGA to the Viksit Bharat – G RAM G Act, reshaping the rural employment landscape. Economically, the Reserve Bank of India (RBI) delivered a decisive pivot, cutting the Repo Rate to 5.25% to fuel growth as inflation stabilized. Strategically, India demonstrated formidable indigenous capability with the successful testing of the Pinaka Long Range Guided Rocket (120 km) and the launch of the DHRUV64 Microprocessor. On the global cultural stage, Deepavali was immortalized in the UNESCO Intangible Cultural Heritage list, symbolizing India’s soft power resonance.
SECTION 1: POLITY, LEGISLATION & GOVERNANCE
Domain: Legislative Reforms | Relevance: GS-II (Polity), RBI Grade B, NABARD
1.1 The G RAM G Act, 2025: A Paradigm Shift
Legislative Milestone: On December 18, 2025, the Parliament passed the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill (VB-G RAM G), which received Presidential assent shortly thereafter.
| Feature | MGNREGA (Old) | G RAM G Act (New 2025) |
|---|---|---|
| Guaranteed Days | 100 Days | 125 Days |
| Focus Area | Wage Employment / Relief | Asset Creation & Climate Resilience |
| Funding Pattern | 90:10 (Centre:State) | 60:40 (Shift towards federal contribution) |
| New Provision | None | “No-Work Window” introduced to align with agricultural harvest seasons. |
Strategic Analysis:
- Objective: To transition from “relief-based” employment to “development-based” livelihoods, focusing on durable assets like water conservation structures.
- Impact: Addressing the “dependency syndrome” while ensuring higher income security through increased mandays.
1.2 The SHANTI Bill, 2025
Full Form: Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India.
- Key Provision: Grants statutory status to the Atomic Energy Regulatory Board (AERB), enhancing its autonomy.
- Liability Reform: Introduces graded liability caps to facilitate private sector participation in the nuclear energy sector, specifically for Small Modular Reactors (SMRs).
SECTION 2: ECONOMY, BANKING & FINANCE
Domain: Monetary Policy | Relevance: GS-III, RBI Grade B, SBI PO
2.1 RBI Monetary Policy (December 2025)
Event: The Monetary Policy Committee (MPC) met from December 3-5, 2025.
- Policy Rate Cut: Repo Rate reduced by 25 basis points (bps).
- Current Rate: 5.25% (Lowest since July 2022).
- GDP Forecast (FY26): Revised upwards to 7.3% (from 6.8%).
- Inflation Forecast: Revised downwards to 2.0% (from 2.6%), signaling a victory over inflationary pressures.
- Stance: Shifted to explicitly “Accommodative” to support credit offtake in the industrial sector.
2.2 Banking Sector Developments
- RRB IPO Blueprint: The Finance Ministry directed three Regional Rural Banks (RRBs) to submit their Initial Public Offering (IPO) blueprints by March 2026, marking a major shift towards market-driven capital raising for rural banks.
- Federal Bank Rebrand: Launched its new brand identity ‘The Fortuna Wave’ in Mumbai.
SECTION 3: DEFENCE & SECURITY
Domain: Strategic Assets | Relevance: GS-III (Security), CDS, NDA
3.1 Pinaka Long Range Guided Rocket (LRGR) Success
Event: On December 29, 2025, DRDO successfully conducted the maiden flight test of the Pinaka LRGR at the Integrated Test Range (ITR), Chandipur.
- Range: 120 km (Significant enhancement from earlier versions).
- Precision: Impacted the target with textbook precision, validating in-flight maneuverability.
- Significance: Boosts the Indian Army’s artillery capability for deep strikes without crossing the border.
3.2 Major Defence Acquisitions
DAC Approval: The Defence Acquisition Council (DAC) cleared proposals worth ₹79,000 Crore on December 29.
- Key Items: Loiter Munitions, Pinaka Rocket Systems, and upgrades for BMP-2 infantry combat vehicles.
3.3 Strategic Infrastructure
World’s Highest Motorable Road: Constructed by the Border Roads Organisation (BRO) at Mig La Pass in Ladakh.
- Altitude: 19,400 feet.
- Strategic Value: Enhances troop mobility near the LAC in Eastern Ladakh.
SECTION 4: SCIENCE, TECHNOLOGY & ENVIRONMENT
Domain: Innovation | Relevance: GS-III (S&T)
4.1 DHRUV64 Microprocessor
Launch: India unveiled its first fully indigenous 1.0 GHz, 64-bit Dual-Core Microprocessor named “DHRUV64”.
- Developer: C-DAC (Centre for Development of Advanced Computing).
- Application: Critical for secure computing, defence systems, and reducing import dependency on silicon chips.
4.2 Samudrayaan Mission Progress
Update: The human submersible MATSYA 6000 successfully cleared stability tests.
- Achievement: Unmanned deep-sea test conducted at a depth of 5,270 meters, paving the way for the manned mission in 2026.
4.3 Kisan Kavach
Unveiled By: Dr. Jitendra Singh.
What is it? India’s first anti-pesticide bodysuit designed to protect farmers from the harmful neurotoxic effects of pesticide spraying.
SECTION 5: INTERNATIONAL AFFAIRS & DIPLOMACY
Domain: Geopolitics | Relevance: GS-II
5.1 UNESCO Recognition for Deepavali
Event: Deepavali, the festival of lights, was officially inscribed on the UNESCO Representative List of the Intangible Cultural Heritage of Humanity in December 2025.
- Significance: Acknowledges the festival’s global cultural resonance and promotes India’s soft power.
- Other Inclusions: Traditional Tangail saree weaving (Bangladesh) was also added.
5.2 Prime Minister’s Three-Nation Tour
Dates: December 15–18, 2025.
Countries Visited:
- Jordan: Signed MoUs on renewable energy and water management.
- Ethiopia: PM Modi received the “Great Honour Nishan of Ethiopia” (highest civilian award).
- Oman: Signed a Comprehensive Economic Partnership Agreement (CEPA).
5.3 FIFA Peace Prize
Recipient: Donald Trump (President of the USA).
Context: Awarded the first-ever FIFA Peace Prize for “Football Unites the World” initiatives (likely related to 2026 World Cup diplomacy).
SECTION 6: SPORTS CURRENT AFFAIRS
Domain: Sports | Relevance: SSC, Railways
| Event | Winner / Key Fact | Host / Venue |
|---|---|---|
| WSF Squash World Cup 2025 | India (First Time) | Chennai, India |
| Men’s FIH Junior Hockey WC | Germany | (Global Venue) |
| Women’s Kabaddi World Cup | India (2nd Edition) | (Hosted Earlier in Year) |
| Turner Prize 2024 | Jasleen Kaur (Indian-Origin) | (Arts – Sculpture) |
6.1 Upcoming Hosting Rights
- Women’s T20 World Cup for the Blind 2025: India selected as the host nation.
- Women’s Kabaddi World Cup 2025: Bihar (Rajgir Sports Academy) confirmed as host for March 2025.
SECTION 7: APPOINTMENTS & OBITUARIES
Domain: Persons in News | Relevance: All Exams
7.1 Key Appointments (December 2025)
| Person | Designation | Significance |
|---|---|---|
| Raj Kumar Goyal | Chief Information Commissioner (CIC) | Assumed charge on Dec 15. |
| B. Sairam | CMD, Coal India Limited (CIL) | Appointed Dec 17. |
| Shashwat Sharma | MD & CEO, Airtel | Appointment effective Jan 1, 2026. |
| Preeti Lobana | Country Manager, Google India | New leadership for Google in India. |
| Harmanpreet Kaur | Brand Ambassador, PNB | First female brand ambassador for Punjab National Bank. |
SECTION 8: IMPORTANT DAYS & THEMES
Domain: General Awareness
- December 4: Indian Navy Day. Theme: “Combat Ready, Cohesive, Self-Reliant”.
- December 9: International Anti-Corruption Day. Theme: “Uniting with Youth Against Corruption”.
- December 25: Good Governance Day. (Birth Anniversary of Atal Bihari Vajpayee).
QUICK REVISION CAPSULE: DECEMBER 2025
- Repo Rate: Cut to 5.25%.
- Major Act: G RAM G Act replaced MGNREGA (125 Days Guaranteed).
- Heritage: Deepavali added to UNESCO Intangible Heritage List.
- Defence: Pinaka LRGR tested (Range: 120 km).
- Tech: DHRUV64 Microprocessor launched by C-DAC.
- Diplomacy: PM Modi received Great Honour Nishan of Ethiopia.
- Infrastructure: World’s highest motorable road at Mig La Pass (19,400 ft).
- Sports: India won WSF Squash World Cup 2025.
RAPID FIRE EXAM QUIZ (DECEMBER 2025)
Q1. Which legislation replaced MGNREGA in December 2025 to increase guaranteed employment days to 125?
A. PM-Kisan Act
B. Viksit Bharat G RAM G Act
C. Rural Livelihood Guarantee Act
D. Atmanirbhar Gramin Act
Answer: (B) Viksit Bharat G RAM G Act
Q2. Who was appointed as the Chief Information Commissioner of India on December 15, 2025?
A. Heeralal Samariya
B. Raj Kumar Goyal
C. Yashvardhan Kumar Sinha
D. Satyananda Mishra
Answer: (B) Raj Kumar Goyal
Q3. The DHRUV64 microprocessor, India’s first indigenous 64-bit dual-core processor, was developed by which organization?
A. ISRO
B. IIT Madras
C. C-DAC
D. DRDO
Answer: (C) C-DAC
Q4. Which Indian festival was inscribed on the UNESCO Representative List of the Intangible Cultural Heritage of Humanity in December 2025?
A. Holi
B. Navratri
C. Deepavali
D. Onam
Answer: (C) Deepavali
Q5. The Reserve Bank of India reduced the Repo Rate in December 2025 to what percentage?
A. 5.50%
B. 5.25%
C. 5.00%
D. 5.75%
Answer: (B) 5.25%
