Mains General Studies Paper III

US President Donald Trump has hinted at sending long-range Tomahawk cruise missiles to Ukraine as a way to pressure Russia into ending the war, stating that if the conflict does not settle soon, the US might provide these offensive weapons capable of reaching deep into Russian territory, including Moscow, from Ukrainian positions. This comes amid ongoing Russian attacks on Ukraine's energy infrastructure and discussions between Trump and Ukrainian President Volodymyr Zelenskyy, with Russia warning that such a move would escalate the conflict significantly.

The Centre is pushing for the Reserve Bank of India (RBI) to oversee two key state-owned institutions—the Employees' Provident Fund Organisation (EPFO) and the Post Office Savings Bank (POSB)—following a Rs 96 crore fraud in POSB and growing concerns over the management of massive social security funds. This move aims to strengthen regulatory controls and improve governance in these critical entities handling trillions in public savings.

Google has announced a landmark $15 billion investment over five years to establish its first AI-powered data center hub in Visakhapatnam, Andhra Pradesh, marking its largest such commitment outside the United States. This initiative, formalized through an MoU with the Andhra Pradesh government, involves partnerships with AdaniConneX and Bharti Airtel, and is expected to generate 1.38 lakh jobs while democratizing AI technology across sectors like healthcare, education, and agriculture.

The International Monetary Fund (IMF) has issued a caution in its latest World Economic Outlook update, drawing similarities between the current boom in Artificial Intelligence (AI) investments and the dot-com bubble of the late 1990s, warning that unmet expectations could lead to sharp market corrections. This comes as global tech giants like Google announce massive AI investments, including a $15 billion commitment to build an AI data centre in India's Andhra Pradesh, underscoring the rapid influx of capital into AI and its potential implications for economic stability worldwide, including in emerging markets like India.

The Employees' Provident Fund Organisation (EPFO) has introduced significant reforms to make partial withdrawals easier for its over 30 crore members, as approved in the 238th meeting of the Central Board of Trustees on October 13, 2025. These changes merge complex rules into three simple categories, allow up to 100% withdrawal of eligible balance while requiring a 25% minimum contribution balance, and reduce minimum service periods, aiming to enhance financial flexibility without compromising long-term retirement security.

US President Donald Trump recently moderated his threats of imposing 100% tariffs on Chinese goods after a sharp drop in American stock markets, while China firmly stated it would not back down and would fight to protect its interests. This development, following China's new controls on rare earth exports, exposes the limits of using tariffs to fix trade imbalances and provides important hints for India, which is dealing with US tariffs up to 50% on its goods and additional penalties for importing Russian oil, pushing New Delhi toward reforms and stronger ties with Asian economies.

The Royal Swedish Academy of Sciences has awarded the 2025 Nobel Prize in Economic Sciences to Joel Mokyr, Philippe Aghion, and Peter Howitt for their pioneering research that explains how innovation and the process of creative destruction have transformed economic stagnation into sustained growth over the past two centuries. Announced on October 13, 2025, this recognition highlights the shift from historical economic flatlines to ongoing progress, offering insights into managing technological changes amid global challenges like AI advancements and trade barriers, which are crucial for countries like India aiming for self-reliant development.

India and Canada have taken significant steps to restore their strained bilateral relations through high-level talks between External Affairs Minister S Jaishankar and Canadian Foreign Minister Anita Anand in New Delhi. The discussions resulted in a joint statement outlining measures to enhance cooperation in trade, energy, AI, and critical minerals, signaling a reset after tensions over the 2023 killing of Khalistani separatist Hardeep Singh Nijjar and subsequent diplomatic expulsions. This move comes amid global economic uncertainty and aims to rebuild trust for mutual benefit.

Indian scientists at the Raman Research Institute in Bengaluru have made a major advance in quantum technology by developing methods to generate and certify truly random numbers using a general-purpose quantum computer. This achievement, led by physicist Urbasi Sinha, is the first of its kind ready for real-world use and could lead to unbreakable digital security systems, especially as quantum computers threaten current encryption methods.

Prime Minister Narendra Modi announced at the India Mobile Congress 2025 that India's indigenous 4G technology stack is now ready for export, showcasing the country's telecom self-reliance. This move aims to provide an alternative to China's Digital Silk Road expansion in developing nations, where India has joined the elite group of five countries (Denmark, Sweden, South Korea, China, and India) that have developed their own 4G stack.

Youth-led protests, often called Gen Z movements, have recently erupted in Morocco and Madagascar, joining a global wave seen in countries like Nepal, the Philippines, Indonesia, Bangladesh, and Kenya. In Morocco, demonstrations started in late September 2025 over inadequate public services like healthcare, contrasting with heavy government spending on the 2030 FIFA World Cup infrastructure. In Madagascar, protests began in September 2025 due to frequent power and water shortages, escalating into demands for President Andry Rajoelina's resignation after violent crackdowns. These events highlight young people's growing frustration with economic inequality, joblessness, and elite dominance, amplified by social media, in middle-income countries facing slow growth and unfulfilled promises.

India's ethanol blending program, aimed at reducing oil imports and supporting farmers, has seen a major shift where grains like maize and rice now contribute more to ethanol production than sugarcane-based sources. This transition, highlighted in recent data for the 2024-25 supply year, is driven by favorable pricing policies and poor sugarcane harvests due to droughts, raising concerns about sustainability, food security, and the sugar industry's future amid the push for 20% blending by 2025-26.