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Current Edge Daily Brief 17th October 2025
Quote of the Day
“The chief product of an automated society is a widespread and deepening sense of boredom.” – C NORTHCOTE PARKINSON
What the Others Say
“Achieving the just peace that the two-state solution could guarantee requires the commitment and consistency of all parties. That remains a very distant prospect.” – LE MONDE, FRANCE
Table of Contents
TH HUMERES: ✅ Why Gold & Silver Prices Rising?
THE BIG PICTURE
- IE Explained: Why rare earths are at the heart of a renewed China-US trade slugfest (Anil Sasi)
- IE Explained: Pakistan-Afghanistan ties: Long history of differences, from Durand Line to the India angle (Vivek Katju)
- TH Text & Context: Restoring fiscal space for the States (K. Shanmugam)
- IE Explained: What the delayed elephant census says about India’s 22,446 jumbos and their future (Nikhil Ghanekar)
NEWS IN SHORT
- India-Brazil Joint Declaration for Deepening of MERCOSUR-India Trade Agreement
- Forest Declaration Assessment 2025 Report
- Google’s new AI finds promising approach for cancer treatment
TH HUMERES
Why Gold & Silver Prices Rising?
- Safe-haven demand ↑ → Ongoing global tensions (Ukraine, Middle East, South China Sea) → investors shift from equities → 🪙 Gold @ ~$2,720/oz (record high, Oct 2025).
- 💰 Rate-cut expectations (Fed & ECB) → Lower yields = ↑ appeal for non-interest assets → COMEX gold futures +15% YTD.
- 💵 US $ weakens (DXY < 100) → Dollar-priced metals cheaper for other currencies → global buying ↑.
- 🏦 Central bank buying boom → China, India, Turkey, Poland etc. added > 1,000 tonnes in 2024-25 (WGC data) → demand ↑.
- ⚙️ Industrial push in silver → EVs + solar PV = ~55% of total silver use (2025 Silver Institute report).
- 📉 Silver supply deficit → 4th straight year (≈ 200 million oz shortfall) → spot > $38/oz.
- 🇮🇳 India factor → Pre-festive jewelry demand ↑ + rupee weak → import cost ↑ → domestic gold > ₹72,000/10 g.
- 📊 ETF inflows ↑ → SPDR Gold Shares (GOLD) holdings +10% in Q3 2025 → reflects investor confidence.
- 🌍 Monetary uncertainty → Rising US & global debt → hedging against fiat risk → metals gain.
The Big Picture
IE Explained: Why rare earths are at the heart of a renewed China-US trade slugfest
Syllabus: Pre/Mains – International Relations
Why in News?
China expanded export curbs on 5 more rare earths & refining tech (↑ total to 12), triggering fresh US tariff threats (↑ 100%) amid trade war escalation.
Rare Earths: Basics
- 17 metallic elements (Lanthanides + Sc, Y) → High density, melting pt, conductivity.
- Found across crust → Not geologically rare but economically hard to extract.
- Key users → EVs, wind turbines, defence, electronics, medical, optics.
- ✦ Eg: Nd, Dy, Tb → high-strength magnets; Ce, La → glass polish, catalysts.
China’s Dominance
- Mining share → 60% global; Processing → >90%.
- Control built since 1987 (Deng era) → “Oil of the 21st century.”
- Heavy REEs (Dy, Tb) more scarce → tightly controlled.
- Policy → Use REEs as strategic “trade weapon” vs US, others.
Latest Curbs (Oct 2025)
- New additions → Ho, Er, Tm, Eu, Yb + magnets/materials.
- Export license mandatory → tech transfer restrictions widened.
- Effective Nov 8 → right before 90-day US-China truce expiry.
- Aim → ↑ leverage before Xi–Trump APEC meet, ↓ US tech resilience.
US Response & Global Fallout
- Trump → threatened 100% tariffs; possible meet cancellation.
- Wall St ↓ on escalation fears.
- US plan → deep-sea mining & stockpiling; diversify via allies.
- Japan → model for re-entering REE chain post-2010 China ban.
Strategic & Economic Importance
- REEs indispensable → strong magnets, advanced alloys, green tech.
- Defence → missiles, radar, aircraft, drones.
- Green transition → EVs, turbines, batteries.
- ✦ Nd-Fe-B magnets → backbone of EV motors, wind generators.
India’s Exposure & Plans
- Imports FY24 → 2,270 t (↑23% since FY20); 65% from China.
- Sectors hit → EVs, electronics.
- Domestic production modest → IREL (10k t/y) vs China (200k t +).
- Expansion plans → seabed mining (Andaman, 7 blocks), REE parks (Vizag, Bhopal).
- Goal → ↓ import dependence, ↑ value chain participation.
Global REE Landscape
- Major reserves → China, Brazil, Australia, India, USA.
- Issues → economic viability, pollution, tech gap.
- Trend → Countries building alt. supply chains (Quad, EU alliances).
Conclusion
Rare earths = small elements, huge leverage. China’s monopoly turns them into a strategic tool, reshaping trade, tech, & geopolitics in the new resource race.
Test Your Knowledge 01
Q. With reference to Rare Earth Elements (REEs), consider the following statements:
- They are chemically similar transition metals primarily located in the middle of the periodic table.
- Promethium is the only radioactive rare earth element.
- The term “rare” refers to their limited crustal abundance globally.
Which of the above statements is/are correct?
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Hint: REEs are lanthanides + Sc, Y (not transition metals); Promethium is radioactive; “Rare” → economic extraction difficulty, not crustal scarcity.
Q. Which of the following pairs are correctly matched?
Rare Earth Element → Key Application
- Neodymium → Permanent magnets in EVs & wind turbines
- Cerium → Glass polishing & automotive catalysts
- Lanthanum → Fuel cells & battery alloys
- Gadolinium → Superconducting wires & MRI contrast agents
(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 1, 2, 3 and 4
(d) 2, 3 and 4 only
Hint: All except gadolinium (used in MRI contrast, but not superconducting wires).
| Rare Earth Elements | Key Applications |
| Scandium (Sc 21) | Al–Sc alloys (aerospace, sports goods) ✦ solid oxide fuel cells ✦ lighting systems |
| Yttrium (Y 39) | Phosphors (TVs, LEDs) ✦ Y-stabilized zirconia ceramics ✦ superconductors ✦ laser crystal |
| Lanthanum (La 57) | NiMH batteries (hybrid cars) ✦ camera lenses ✦ catalysts ✦ X-ray screens |
| Cerium (Ce 58) | Glass polishing ✦ catalytic converters ✦ fuel additives ✦ self-cleaning ovens |
| Praseodymium (Pr 59) | Aircraft engines ✦ Nd–Fe–B magnets (with Nd) ✦ green glass tinting ✦ carbon arc lights |
| Neodymium (Nd 60) | Strong permanent magnets (EVs, turbines) ✦ lasers ✦ microphones ✦ HDDs |
| Promethium (Pm 61) | Radioisotope thermoelectric generators ✦ luminous paints ✦ limited due to radioactivity |
| Samarium (Sm) | Sm–Co magnets (high-temp) ✦ nuclear control rods ✦ lasers ✦ precision motors |
| Europium (Eu 63) | Red/blue phosphors in TV, LEDs ✦ anti-counterfeiting (Euro notes) ✦ lasers |
| Gadolinium (Gd 64) | MRI contrast agents ✦ neutron shielding ✦ data storage media ✦ magnet alloys |
| Terbium (Tb 65) | Green phosphors ✦ solid-state devices ✦ magneto-optical storage ✦ fuel cells |
| Dysprosium (Dy 66) | High-temp magnets (EVs, turbines) ✦ nuclear control rods ✦ lasers |
| Holmium (Ho 67) | Strongest magnetic moment → used in magnets ✦ lasers ✦ nuclear control rods |
| Erbium (Er 68) | Fiber optic amplifiers ✦ lasers ✦ pink glass coloring ✦ medical/dental lasers |
| Thulium (Tm 69) | Portable X-ray units ✦ lasers ✦ high-efficiency luminescent materials |
| Ytterbium (Yb 70) | Fiber lasers ✦ stress gauges ✦ stainless steel alloys ✦ optical materials |
| Lutetium (Lu 71) | PET scan detectors ✦ catalyst in refining ✦ LED phosphors ✦ high-refractive lenses |
Grouped Insight
Light REEs (LREEs) → La → Sm → Catalysts, glass, polishing, magnets
Heavy REEs (HREEs) → Eu → Lu + Y → High-temp magnets, lasers, phosphors, optics
Sectoral Summary
- Energy Transition → Nd, Dy, Tb, Pr, Sm (EV motors, wind turbines)
- Defence & Aerospace → Sm, Dy, Ho, Gd (guidance, sensors, magnets)
- Healthcare → Gd, Lu, Tm (MRI, PET, radiation therapy)
- Electronics/Optics → Eu, Tb, Er, Y (phosphors, displays, fiber optics)
- Catalysts/Industrial → Ce, La, Pr (petroleum refining, emission control)
IE Explained: Pakistan-Afghanistan ties: Long history of differences, from Durand Line to the India angle
Syllabus: Pre/Mains – International Relations
Why in News?
✦ Recent border clashes at Torkham underline persistent distrust & recurring hostility in Pakistan–Afghanistan ties.
Historical Roots → Durand Line Dispute
- 1893: Sir Mortimer Durand drew 2,640 km line → split Pashtun tribes.
- Afghanistan view → not permanent border; Pakistan → inherited boundary (1947).
- 1947: Afghanistan only country opposing Pakistan’s UN entry.
- 1950s–70s: Daud Khan’s “Pashtunistan” idea → clashes, border closures (1961).
- 2018: Afghan protest after Pakistan merged Tribal Agencies → continuity of non-recognition.
Political Regime Shifts & External Interventions
- 1973: Monarchy ends → Republic → Communist rule (1978–89).
- Pakistan backed Mujahideen against USSR (1979–89).
- Taliban rise (1994–96) → Pakistan support key to takeover.
- Post-9/11: Taliban ousted → US-backed Republic (2001–21).
- 2021: US exit → Taliban return with Pakistan aid, but ties soon sour.
Trade, Transit & Connectivity
- Afghanistan land-locked → reliant on Pakistan routes (Karachi, Torkham).
- Pakistan blocks India-Afghan land trade via Wagah → Afghan resentment.
- Periodic border/port closures → coercive economic tool.
- Iran & CARs used as alternate routes → strategic diversification.
Ethnic Divide → Pashtun vs Punjabi Factor
- Pashtun cultural identity ≠ Punjabi-dominated Pakistan state.
- Abolition of Tribal Agencies (2018) → seen as insult to Pashtun autonomy.
- TTP (Tehreek-e-Taliban Pakistan) seen as kin by Afghan Pashtuns → cross-border sympathy.
- Pashtun nationalism resurfaces → undermines Pakistan’s internal cohesion.
“Gratitude” Narrative
- Pakistan claim → hosted 3–4 mn Afghan refugees + backed Mujahideen & Taliban.
- Afghan view → Pakistan acted for own geopolitical gain.
- Refugee mistreatment & border restrictions → deepen resentment.
- Pakistan labels Afghans ahsanfaramosh (ungrateful).
The India Angle
- Pakistan fear: “Two-front squeeze” (India east, Afghanistan west).
- Pressure on Kabul → curb ties with New Delhi.
- Afghan stance → sovereign foreign policy; refuses Pakistan diktat.
- Current Taliban outreach to India → seen by Islamabad as betrayal.
Conclusion
✦ Pakistan-Afghanistan ties shaped by unresolved borders, ethnic divides, coercive trade, contested gratitude, and India factor → cycle of mistrust & volatility persists.
Test Your Knowledge 02
Q. The Durand Line, often a source of friction between Pakistan and Afghanistan, was originally drawn to:
(a) Mark the international boundary between British India and Afghanistan permanently.
(b) Define spheres of influence between British India and Afghanistan temporarily.
(c) Divide tribal territories for administrative convenience under Pakistan.
(d) Formalize Afghanistan’s western boundary with Persia.
Hint: Drawn in 1893 by Sir Mortimer Durand → intended as a temporary demarcation of influence, not a permanent border.
TH Text & Context: Restoring fiscal space for the States
Syllabus: Pre/Mains – Economy
Why in News?
End of GST compensation cess & restructuring of slabs → revived debate on States’ fiscal autonomy & Centre–State tax sharing.
GST & Fiscal Centralisation
GST & Fiscal Centralisation- GST reform (2017) → shifted tax power from States → GST Council (Centre-dominant).
- Destination-based tax → erosion of origin-based States’ revenue.
- End of compensation cess (₹2 lakh cr relief to consumers) → ↑ revenue uncertainty for States.
- Cess/surcharge → non-shareable → Centre’s fiscal leverage ↑, States’ devolution ↓.
Fiscal Federal Design & Imbalances
Fiscal Federal Design & Imbalances- Constitutional basis → Art. 246A (GST), 268–293 (Centre–State finance).
- Power centralised; expenditure decentralised → vertical imbalance.
- Pre-GST: Centre collected 67%, States 33% → Post-GST same ratio → autonomy ↓.
- States’ expenditure ↑ (law & order, health, edu, agri, local govts).
- Heavy dependence on Central transfers → 44% avg; Bihar 72%, Haryana 20%.
Finance Commission & Transfers
Finance Commission & Transfers- FC (Art. 280) → recommends devolution + grants.
- Criticism → criteria penalise progressive States, inconsistent weights.
- 14th FC: 42% share → ↓ to 41% post J&K bifurcation.
- Actual devolution < recommendation due to ↑ cesses/surcharges (₹4.23 lakh cr BE 2025–26).
- CSS & Central Sector schemes → Centre’s indirect control ↑ post-Planning Commission abolition.
Fiscal Stress on States
Fiscal Stress on States- Rising aspirations + service delivery gaps → ↑ revenue pressure.
- Heavy reliance on Central funds → liquidity & autonomy issues.
- Political friction → Oppn-ruled States allege fiscal discrimination.
- Progressive States (TN, KA, MH, GJ) → want flexibility to raise own revenue.
Reform Proposals → Toward Fiscal Autonomy
Reform Proposals → Toward Fiscal Autonomy- Share personal IT base → 50:50 Centre–State split → ↓ dependence.
- Allow State IT “top-up” → States add marginal tax over Central IT.
- Merge cess/surcharge with shareable pool → fairer vertical devolution.
- Redesign CSS → align with State priorities.
- Canadian model reference → sub-nationals collect 54%, spend 60% → ↑ autonomy.
Way Forward
Way Forward- Revisit fiscal sharing → uphold cooperative federalism.
- Dynamic re-adjustment of resource assignment → match expenditure responsibilities.
- Empower States fiscally → strengthen accountability, efficiency, and growth outcomes.
Test Your Knowledge 03
Q. Which of the following correctly identifies the relationship among the following constitutional provisions?
- Article 270 – Distribution of taxes between Union and States.
- Article 275 – Grants-in-aid to States.
- Article 282 – Discretionary grants for public purposes.
(a) All three are mechanisms of compulsory transfers.
(b) Articles 270 & 275 are compulsory; 282 is discretionary.
(c) Only Article 282 is binding on the Union government.
(d) All three are decided by the Finance Commission.
Hint: 270 & 275 statutory (Finance Commission linked); 282 → discretionary (CSS, Central Schemes).
IE Explained: What the delayed elephant census says about India’s 22,446 jumbos and their future
Syllabus: Pre/Mains – Environment
Why in News?
Results of delayed Synchronous All India Elephant Estimation (SAIEE) 2021–25 released → India’s wild elephant popn. = 22,446 (↓ vs 2017, but new baseline due to new methodology).
India’s Elephant Population – Key Distribution
India’s Elephant Population – Key Distribution- Total (2021–25) → 22,446 elephants
- Major Landscapes →
- Western Ghats → 11,934 (54%)
- NE Hills & Brahmaputra Floodplains → 6,559
- Shivalik Hills & Gangetic Plains → 2,062
- Central India & Eastern Ghats → 1,891
- Top States →
- Karnataka → 6,013
- Assam → 4,159
- Tamil Nadu → 3,136
- Kerala → 2,785
- Uttarakhand → 1,792
- Odisha → 912
- Habitat Continuity → Brahmagiri–Nilgiri–Eastern Ghats block = largest sub-population (Mysuru–Nilgiri–Wayanad–Coimbatore Reserves).
Methodology Shift & Data Implications
Methodology Shift & Data Implications- New protocol → Tiger estimation methodology (camera traps, DNA, landscape sampling).
- Old vs new → Not directly comparable → treated as “new baseline.”
- Delay → Due to expanded sampling esp. in NE region.
- India hosts >60% of global Asian elephant (Elephas maximus) popn. → IUCN: Endangered (since 1986).
Conservation Challenges
Conservation Challenges- Habitat Loss/Degradation → Mining, linear infra (roads, rail, canals, power lines).
- Fragmentation → ↓ connectivity → ↑ human-elephant conflict (HEC).
- Regional Declines (vs 2017) →
- Jharkhand ↓68%
- Odisha ↓54%
- NE & Central India major dips.
- Migration Trend → Elephants shifting from Jharkhand–Odisha → Chhattisgarh–MP–Maharashtra (Gadchiroli).
- Chhattisgarh ↑82.6% (influx-driven, not natural growth).
- New habitats → Sanjay Dubri, Bandhavgarh, Kanha TRs, Vidarbha.
- Conflict Hotspots →
- Central India (<10% elephants) → causes ~45% of human deaths.
- Assam: Forest clearance in Sonitpur, Golaghat → ↑ fragmentation, HEC.
Way Forward
Way Forward- Strengthen corridor protection & habitat restoration.
- Integrate HEC mitigation → fencing, crop compensation, early-warning systems.
- Sustainable mining & infra planning → wildlife-friendly clearances.
- Regular, standardized pan-India synchronised counts → trend reliability.
Test Your Knowledge 04
Q. With reference to the Synchronous All India Elephant Estimation (SAIEE) 2021–25, consider the following statements:
- It was the first time that the elephant estimation was conducted concurrently with the tiger census using a harmonized methodology.
- The population estimate obtained is comparable with the 2017 elephant census as both used the same sampling and statistical models.
- The 2025 estimation exercise recorded the highest elephant density in the North Eastern Hills and Brahmaputra Floodplains.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Hint: Statement 1 is correct — SAIEE 2021–25 was synchronized with the tiger count.
Statement 2 is incorrect — different methodology; new baseline.
Statement 3 is incorrect — Western Ghats, not NE region, had the highest density.
News in Short
India-Brazil Joint Declaration for Deepening of MERCOSUR-India Trade Agreement
Why in news?
On 16 October 2025, India & Brazil issued a joint declaration to deepen and expand the existing Preferential Trade Agreement (PTA) between India and MERCOSUR, targeting conclusion of expanded deal within 1 year.
Key Facts & Features
- Existing Trade Framework: India and MERCOSUR signed a Framework Agreement 17 June
- PTA In Force Since June 2009
- Proposed Expansion
- Increase share of bilateral trade under tariff preferences
- Address both tariff & non-tariff issues
- Activate technical dialogue via Joint Administration Committee (Article 23) to define scope
- Conclude expanded agreement within 1 year of launch
About MERCOSUR
- Establishment: 1991 → Treaty of Asunción (Paraguay)
- Members (Founding): 🇧🇷 Brazil, 🇦🇷 Argentina, 🇵🇾 Paraguay, 🇺🇾 Uruguay
- Associate Members: 🇧🇴 Bolivia (accession process ongoing), 🇨🇱 Chile, 🇵🇪 Peru, 🇨🇴 Colombia, 🇪🇨 Ecuador, 🇬🇾 Guyana, 🇸🇷 Suriname
- Observers: 🇲🇽 Mexico, 🇳🇿 New Zealand
- Suspended Member: 🇻🇪 Venezuela (joined 2012 → suspended 2016 for violating democratic clause)
- Nature: Regional Trade Bloc → Customs Union + Common Market (free movement of goods, services, factors of production; common external tariff)
- Combined GDP ≈ US $ 3 trillion (2024 est.); Population ≈ 295 million
- Common External Tariff (CET) applied on imports from non-members.
Google’s AI Model for Cancer Drug Discovery
Why in news?
Google unveiled Cell2Sentence-Scale 27B (C2S-Scale) — AI model that discovered a new drug pathway for cancer detection.
Key Facts:
- Developer: Google DeepMind + Google Research
- Model Type: 27-billion parameter foundation model → understands “language of individual cells”
- Platform: Research paper published on bioRxiv (pre-print server)
Objective:
- Detect emerging tumours before immune system response
- Force tumours to display antigen presentation → triggers immune detection
Mechanism:
- Model trained on:
- Real-world patient tumour-immune interaction data
- Cell-line data (no immune context)
- Task: find drug boosting immune signals only when interferon (IFN) levels are low
Why Interferon (IFN) important?
- IFNs = body’s frontline defence proteins against infection & tumours
- Low IFN → tumours evade detection → early cancer stage
Findings:
- Simulated >4,000 drugs
- Discovered: Silmitasertib → boosts immune response only under low-IFN condition
- ~10–30% drugs = known hits; remainder = novel predictions
Forest Declaration Assessment 2025 Report
Why in News?
Forest Declaration Assessment 2025 report warns → world far from COP26 (Glasgow) pledge to halt deforestation by 2030
# Report is an independent, multi-stakeholder initiative tracking COP26 / NYDF goals on forest protection and restoration.
1️⃣ Key Findings – Global Deforestation
- 🌍 Global forest loss (2024): 8.1 million ha (~area of Austria)
- 🌴 Tropical forests worst hit → 6.73 million ha lost (2024)
- 🚜 Permanent agriculture = ~86% of global deforestation (past decade)
- ⏱️ Progress towards “zero deforestation by 2030” → 63% off-track
2️⃣ Restoration Targets
- COP26 pledge: Restore 30% degraded ecosystems
- Actual: 10.6 million ha under active restoration
- Only 5.4% of reforestation potential
- 3% of total biophysical forest restoration potential
3️⃣ Finance Imbalance
- 🌲 Intl. public finance for forests ↑ → $1.7 bn (2018-20) → $5.7 bn (2022-24)
- 🚜 Agricultural subsidies = $409 bn/year (→ main deforestation driver)
- 💰 Needed to meet 2030 goal → $117–299 bn
- 🏦 Only 40% of financial institutions exposed to forest-risk → have policies to address it
4️⃣ Governance & Rights Issues
- ⚖️ Weak enforcement + insecure land rights → poor conservation outcomes
- 👩🌾 Limited participation of Indigenous Peoples, women, civil societies
- 📉 Industry dominance > political will → favors deforestation
- 🇮🇳 India context: Finalised rules under amended Forest (Conservation) Act, 2023 → reduced protection for several forest areas → undermined forest-dependent communities’ rights
