Daily News Capsules
1. PSLV-C62 deviates from flight path after anomaly
ISRO’s PSLV-C62 rocket carrying 16 satellites, including a foreign Earth Observation satellite, “encountered an anomaly”, the space agency said on Monday, signalling the failure of the mission. Disturbances in the rocket and later deviation from flight path was observed when strap-on motors were providing thrust during the flight’s third stage to propel the vehicle to the intended altitude, space agency chairman V Narayanan said, adding a detailed analysis has been initiated to identify the cause. The mission of placing the satellites in the intended orbit could not be achieved and all the 16 satellites were lost. This is the second consecutive mission failure for the PSLV as a similar, previous attempt in May 2025 also did not succeed. As the 22.5-hour countdown concluded, the 44.4 metre tall four-stage rocket lifted off as scheduled at 10.18 am from the spaceport here. The mission was to deploy a primary Earth Observation satellite and multiple co passenger satellites into a 512 km Sun-Synchronous Orbit, after a flight journey of about 17 minutes. The automatic launch sequence commenced following approval from the mission director. ISRO scientists provided real-time updates as the vehicle ascended. The initial phases of the flight proceeded according to plan. However, after the announcement that the “third stage ignited”, an uneasy calm took over the Mission Control Centre. In his address at the centre, Narayanan said, “The PSLV is a four-stage vehicle with two solid stages and two liquid stages. The performance of the vehicle up to the end of the third stage was expected. Close to the end of the third stage we are seeing more disturbance in the vehicle and subsequently, there was a deviation observed in the flight path.”
Possible Question
What is a Sun-Synchronous Orbit (SSO), and why is it preferred for Earth-observation satellites such as those launched by ISRO’s PSLV missions?
2. SC stays reinstatement of MP judge sacked for misbehaviour
The Supreme Court on Monday stayed the reinstatement of a Madhya Pradesh judge who was dismissed from service in 2019 for allegedly misbehaving with a woman co passenger in a train while in an inebriated state, with the top court describing the case as “shocking”, “disgusting” and observing that “nothing less than termination” was warranted in such circumstances. A bench of justices Vikram Nath and Sandeep Mehta admitted an appeal challenging the May 2025 judgment of the Madhya Pradesh high court that quashed the termination of civil judge Navneet Singh Yadav and directed his reinstatement. The bench stayed the operation of the high court’s order. When senior advocate Shailesh Madiyal, appearing for the judge, argued that most witnesses had not supported the prosecution case in the criminal proceedings under the Railway Act and that Yadav had been acquitted, the bench retorted: “You must have used your influence to see to it that all witnesses turn hostile.” The counsel sought to suggest that the case arose out of a dispute with a local MLA, prompting the bench to remark, “That does not mean you will do whatever you want.” Yadav, posted as a civil judge at Shahpur in Dindori district, was travelling from Hoshangabad to Jabalpur on June 16, 2018, when he allegedly misbehaved with a woman co-passenger in the Indore-Jabalpur Overnight Express. He was accused of being intoxicated, creating a nuisance, abusing co passengers and railway staff, and forcing passengers to pull the emergency chain, delaying the train. Following a complaint, a criminal case was registered under the Railway Act, and Yadav was also arrested. He was subsequently placed under suspension, and the MP high court instituted a departmental inquiry. Based on the inquiry report, the administrative committee of the high court recommended his termination, which was endorsed by the full court. Acting on the recommendation, the state government dismissed Yadav from service in September 2019.
Possible Question
Can a judicial officer be dismissed through a departmental inquiry even after acquittal in a criminal case? Explain the constitutional and service-law principles involved.
3. India to be part of key tech supply chain: Gor
US ambassador-designate Sergio Gor struck a conciliatory tone on Monday amid unprecedented strains in bilateral relations by emphasising India’s importance as a partner for the US and said the two sides remain actively engaged for concluding a trade deal, and that India would soon be part of Pax Silica. The US and India are bound by shared interests and a “relationship anchored at the highest levels”, and Washington will invite New Delhi next month to join Pax Silica, the flagship American initiative to build a secure and resilient global supply chain for semiconductors and AI technology, he said in a speech at the US embassy three days after arriving in the country. The remarks by Gor, a close aide of President Donald Trump who earlier served as the head of personnel appointments at the White House, appeared to signal Washington’s desire to reset bilateral ties hit by months of strains and were in marked contrast to critical comments by other senior American officials in recent weeks. Bilateral ties plummeted to an all-time low last year after Trump hit Indian exports with 50% tariffs, including a 25% punitive levy over Russian oil purchases. “No partner is more essential than India. In the months and years ahead, it is my goal as ambassador to pursue a very ambitious agenda. We will do this as true strategic partners, each bringing strength, respect and leadership to the table,” Gor said, speaking from a podium at the entrance of the embassy. “The US and India are bound not just by shared interests, but by a relationship anchored at the highest levels. Real friends can disagree, but always resolve their differences in the end,” he said. Providing an update on the India-US trade deal negotiations, he said: “Both sides continue to actively engage. In fact, the next call on trade will occur tomorrow.”
Possible Question
What is meant by “Pax Silica” in the context of global semiconductor supply chains, and why is India’s participation strategically significant for its technological and economic security?
4. US Fed chief denounces ‘threats’ as probe opens
US prosecutors have opened an inquiry threatening a “criminal indictment” against the Federal Reserve, its chairman Jerome Powell revealed, denouncing new “threats and ongoing pressure” from the administration of President Donald Trump. Powell said in a rare video statement on Sunday that the US central bank received grand jury subpoenas on Friday related to his Senate testimony in June, which concerned in part a major renovation project of Federal Reserve office buildings.
He dismissed the subpoenas as “pretexts” after months of bitter conflict with Trump, who has publicly excoriated the Fed for not cutting interest rates aggressively to bolster economic growth. “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” Powell said. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation,” he said. “If the Fed acts on politics rather than data, foreign investors could pull back on financing the US debt and seek new safe havens,” said Atakan Bakiskan, US economist at the German investment bank Berenberg. Trump said on Sunday that he had no knowledge of the justice department’s investigation into the Federal Reserve. Nonetheless, investors reacted warily as financial markets opened on Monday, with the dollar falling against major currencies along with the 10-year US Treasury bond, while safe-haven assets like gold surged. Senators from both sides of the aisle blasted the investigation.
Possible Question
Why is the independence of a central bank considered essential for macroeconomic stability? Explain with reference to the role of the US Federal Reserve or the Reserve Bank of India.
5. More cos may take a hit as labour codes debut
The corporate landscape may see a surge in expenses in the December quarter, as the impact of India’s historic labour reforms hits home. While the shift is expected to dampen short-term profitability, executives and consultants described it as a short-term adjustment, particularly in the services sector. On Monday, two of India’s largest information technology services companies—Tata Consultancy Services Ltd (TCS) and HCL Technologies Ltd—acknowledged the impact of the new regime. While TCS jotted down costs of ₹2,128 crore, HCLTech set the figure at ₹956 crore. More companies may face additional costs as they rework gratuity and leave encashment costs due to the broader definition of wages, said Alok Agrawal, partner, Deloitte India. “Possibly, these payroll costs may also increase on account of overtime due to the broader definition of “workers”, he said. The new labour codes implemented in November are expected to trigger higher social security contributions by both employers and employees.
Employees may see a slight reduction in take-home pay if the overall cost-to-company remains unchanged, as statutory deductions go up. “This is likely to have the largest impact on the services sector, where the payroll costs are a large proportion of the overall cost base. Particularly, those companies where the basic salary was much lower than 50% are likely to see the largest impact,” Agrawal of Deloitte India said. According to Agrawal, gratuity is generally the largest component of the extra expense, since it applies to past service periods for all existing employees. “The Institute of Chartered Accountants of India had issued guidance recently to clarify the recommended
treatment, based on which the companies have proceeded with the provisions. This is likely to have the largest impact on the services sector, where the payroll costs are a large proportion of the overall cost base,” Agrawal added.
Possible Question
How does the new definition of “wages” under India’s labour codes affect gratuity, provident fund and employer liabilities? Why has it raised compliance costs for companies?
Editorial Snapshots
A. Seeking a slice of government
Tamil Nadu has been an outlier in Indian politics in some ways. Two aspects of state politics that make it unique are particularly significant. One, no national party has formed a government in the state in close to 60 years: The DMK and its rival, the AIADMK, have won all elections since 1967, either on their own or in alliance. Two, despite alliances becoming essential to winning elections in the state, Tamil Nadu has not seen a coalition government, with the Dravidian majors refusing to share office with their allies. Even in 2006, when the DMK emerged as the single largest party in the assembly but failed to garner a simple majority, M Karunanidhi formed a single-party government. Ahead of the assembly elections, due in April, this principle of Dravidian parties has come under challenge from allies — the Congress wants to share power with the DMK and the Bharatiya Janata Party with the AIADMK, should they win office. Both Dravidian parties have refused the demand so far. Neither the Congress nor the BJP has a local leader of stature, but that can be said of the Dravidian parties as well. Tamil politics in the past few decades has been dominated by larger-than-life personalities such as CN Annadurai, M Karunanidhi, MGR, and Jayalalithaa. That has changed since the passing of Jayalalithaa and Karunanidhi in 2016 and 2018, respectively. Meanwhile, the political space in Tamil Nadu has opened up with the weakening of the AIADMK following multiple splits. The BJP has been making inroads, and its political agenda has gained acceptance in the state more than ever. And the OBC consensus around the Dravidian Movement has fragmented with new identity-centric outfits asserting their agency and identity. MK Stalin, chief minister and the heir to Karunanidhi, or Edappadi Palaniswami, former CM and the AIADMK leader, are in no position to set the agenda and sweep elections like some of their predecessors. In any case, the Tamil Nadu electorate has ceased to give sweeping mandates to any party since 2011, and no party’s vote share has crossed 40%. Amidst all this, the entry of actor Vijay has introduced an element of uncertainty into the elections. Will all this be enough to see the first coalition government in the state?
Possible Question
Why has Tamil Nadu historically avoided coalition governments despite having alliances? How does this reflect the nature of Dravidian party politics?
B. Cultivating Europe for Indian exports
The new US ambassador to India Sergio Gor said on Monday that an amicable Indo-US trade deal is very much in the realm of the possible and even the larger Indo-US partnership continues to be robust. These pages have always underlined the importance of patiently pursuing economic and diplomatic dialogue with the US rather than getting distracted by the shrill rhetoric coming from Washington. Such a policy approach, however, will also have to keep in mind the fact that the days of the US being an open export market to even its closest allies are almost over and the quid pro quo element in such a relationship will be bigger than the past. It is in this context that it is extremely important that India cultivates its economic relationship with Europe. It is a large trading block with consumers who have the highest purchasing power anywhere outside the US, is also feeling the pinch of the about turn in US’s policies, and is also invested in looking at India as a stakeholder in maintaining a rules-based democratic framework in the world unlike an increasingly imperialist US or authoritarian China. The more than 14% jump in Indian exports to Europe in the month of November — it increased to almost $8 billion — is a welcome development on this front. To be sure, not much should be read into a month’s trade numbers, and it is worth pointing out that Indian exports to Europe fell by more than a billion dollars on a year-on-year basis in October. However, what makes even a short-term reading of Indo-European trade numbers important is that trade negotiations are still continuing at multiple levels. A successful and mutually beneficial conclusion of a trade agreement can very well set a new benchmark for democracies doing trade well.
Possible Question
Why is the European Union emerging as a critical trade partner for India amid changing US trade policies? Explain the strategic importance of India-EU trade negotiations.
Fact of the day
Modi raises Ariha Shah issue during discussions with Merz: Prime Minister Narendra Modi raised the issue of Ariha Shah, a five-year-old Indian girl placed in the care of German child services following allegations of abuse against her parents, with German Chancellor Friedrich Merz on Monday and sought a speedy resolution of the matter. The Indian side called for Ariha to be better exposed to Indian culture, her mother tongue, and religion while in the care of German child services. The case of the child, who has been in foster care since September 2021, remains a rare irritant in India-Germany relations. Foreign secretary Vikram Misri confirmed at a media briefing that Modi raised the issue with Merz when the two leaders met in Ahmedabad. “At one time, this was a legal issue, now we should approach it as a humanitarian issue. We are aware of the pain and difficulties of the family and we are trying to help them in every way,” Misri said, adding the focus is currently on ensuring that Ariha is raised in an “Indian environment”. This includes allowing her to meet Indian people, participate in Indian festivals in Germany, and making arrangements for her to learn Hindi, he said. “We will continue following up this matter with the German government and will always be with the family. We don’t see it apart from the overall ties with Germany, it gets the same priority as other issues,” he said. The German government has not agreed to several requests from New Delhi for Ariha to be allowed to return to India or to be placed in foster care in the country. The matter has also been raised by external affairs minister S Jaishankar with his German counterparts over the years and Modi had raised it with previous chancellor Olaf Scholz. The Save Ariha Team, a group of social workers campaigning for the repatriation of the girl, has called for Ariha to be taught Hindi or Gujarati and the Jain religion of her parents, Dhara and Bhavesh Shah. The parents are currently allowed to visit her twice a month and Indian officials have been provided consular access to her on five occasions. Germany’s Jugendamt or Youth Welfare Office placed Ariha in foster care at the age of seven months after German authorities levelled serious allegations of abuse against the parents in 2021, but the charges were dropped in February 2022. Ariha’s aunt Kinjal Shah has alleged that the child is being held “against her will”.
