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Current Edge Daily Brief 31st October 2025
Quote of the Day
“The freer the flow of world trade, the stronger the tides for economic progress and peace among nations.” – RONALD REAGAN
What the Others Say
“A $40 bn rescue may have helped Javier Milei scrape through midterms, but it leaves Argentina’s democracy and economy more dependent than ever on Washington.” – THE GUARDIAN
Table of Contents
THE BIG PICTURE
- IE Explained Interview | ASEAN summit concludes: What the group means for India (Yashee)
- IE Explained: Eighth Pay Commission terms of reference approved: What this means, likely impact on salaries, pensions of govt employees (Aanchal Magazine)
- IE Explained: How Odisha become a model state in handling cyclones (Sujit Bisoyi)
NEWS IN SHORT
- India pays homage to Sardar Vallabhbhai Patel on his 150th Jayanti: Prime Minister
- Justice Surya Kant to Become 53rd Chief Justice of India (CJI)
The Big Picture
IE Explained Interview | ASEAN summit concludes: What the group means for India
Syllabus: Pre/Mains – International Relations
Why in News?
→ 47th ASEAN Summit 2025 concluded in Kuala Lumpur (Oct 28) amid escalating US–China trade war; India represented by PM Modi (virtual) & EAM Jaishankar (in person).
ASEAN: Evolution & Significance
- Origin → Est. 1967 (5 nations) → now 11 (incl. Timor Leste, 2025).
- Transformation → From anti-communist bloc → dynamic economic & political platform.
- Economic Weight → Intra-ASEAN trade 25–30% of total; 2nd only to EU.
- Strategic Location → Lies at Indo-Pacific crossroads → key to global trade routes.
- Demographic Edge → Pop. ~670 mn; GDP >$3.7 tn → world’s 5th largest economy.
- Connectivity Role → IMT Highway, Kaladan Project, Sittwe Port → link India’s NE to SE Asia.
- Cultural Ties → Deep civilisational & Buddhist linkages; revived via Look East (1992) → Act East (2014).
- Collective Voice → Consensus-based diplomacy → increasing influence in global forums.
Challenges before ASEAN
- Myanmar Crisis → Democratic backslide post-2021 coup; ASEAN divided on response.
- China’s Assertiveness → Expansionist “Nine-Dash Line” in SCS → tension with Vietnam, Philippines.
- Security Paralysis → No unified military/security mechanism → limited deterrence vs China.
- External Dependence → Trade heavily tied to China → vulnerability amid US–China tariff war.
- Internal Disparities → Economic & political gaps among members (e.g. Singapore vs Laos).
ASEAN and India – Positives & Negatives
✦ Positives
- Trade Hub → ~50% of India’s global trade passes through ASEAN waters.
- Strategic Balancing → Shared interest in free & open Indo-Pacific (Quad synergy).
- Economic Links → FTA in Goods (2009) → trade ↑ to ~$131 bn (2022–23).
- Connectivity Projects → IMT Highway, Kaladan route, maritime & tourism MoUs.
- Diplomatic Convergence → India part of East Asia Summit, ASEAN Defence Ministers+ forums.
✦ Negatives
- FTA Imbalance → India’s trade deficit >$40 bn; ASEAN’s tariff gains > India’s.
- Chinese Entry Route → FTA used to channel Chinese goods into India.
- RCEP Withdrawal → India opted out (2019) citing unfair access & China factor.
- Slow AITIGA Review → Started 2022 → incomplete; Malaysia hopes by 2025-end.
- Limited Leverage → India’s market share in ASEAN trade ↓ vs China, Japan, US.
Way Forward
- Accelerate AITIGA Review → Balance trade; curb third-country routing.
- Deepen Connectivity → Fast-track IMT Highway, Kaladan, port linkages.
- Enhance Strategic Presence → Naval cooperation, joint patrols, Indo-Pacific synergy.
- Economic Diversification → Invest in supply chains, digital trade, fintech, startups.
- Engage Consistently → Focus on ASEAN, BIMSTEC, BBIN → avoid Pakistan/China bottlenecks.
- Soft Power Leverage → Use civilisational, educational, & cultural diplomacy to deepen bonds.
Test Your Knowledge 01
Q. Which of the following joined ASEAN as its 11th member recently (2025)?
(a) Papua New Guinea
(b) Timor Leste
(c) Sri Lanka
(d) Bangladesh
Hint: Timor Leste (East Timor) added as ASEAN’s 11th member in 2025.
IE Explained: Eighth Pay Commission terms of reference approved: What this means, likely impact on salaries, pensions of govt employees
Syllabus: Pre/Mains – Economy
Why in News?
→ GoI approved Terms of Reference (ToR) for the 8th Central Pay Commission (CPC); pay & pension revision for ~50L employees & ~69L pensioners effective 1 Jan 2026.
Composition & Timeline
- Headed by → Justice Ranjana Prakash Desai (ex-SC judge)
- Members → Pulak Ghosh (IIM-B), Pankaj Jain (Petroleum Secy)
- Submission → within 18 months → likely Apr 2027
- Implementation → retrospectively from Jan 2026 → arrears payable
- Pattern → ~10-year cycle; 7th CPC implemented 2016 (↑6 months delay)
Mandate & Scope
- Core focus → Salary, pension, allowance revision
- Economic lens → Fiscal prudence + developmental expenditure balance
- Inter-govt impact → States’ finances as they usually adopt CPC outcomes
- Benchmarking → vs CPSU & private sector pay structures
- New clause (✦) → Evaluate unfunded cost of non-contributory pensions (OPS) → crucial amid OPS vs NPS debate
Pension Landscape
- OPS (Old Pension Scheme) → Defined benefit → 50% of last pay; unfunded
- NPS (Post-2004) → Defined contribution → market-linked returns
- Unified Pension Scheme (2024) → Hybrid → assured pension (₹10k min), full payout after 25 yrs service, family pension provision
- 8th CPC → May assess fiscal risk of OPS restoration demand
Fiscal Implications
- Current outgo (FY26) → ₹7 lakh cr (≈18% of rev. exp.) on pay+pension+allowances
- 7th CPC impact → ↑23.55% overall → +₹1.02 lakh cr annual burden
- Likely 8th CPC effect → Minimum pay may ↑ from ₹18k → ~₹46k (projected)
- Fiscal concern → Higher wage bill → limits capex room, ↑pressure on state finances
Broader Significance
- Economic impact → ↑consumption demand → short-term GDP boost
- Inflationary risk → Possible spike post-implementation
- Equity concern → Wider gap between govt & private pay scales
- Policy signal → Balancing fiscal discipline with employee welfare.
Test Your Knowledge 02
Q. Which of the following is newly included in the Terms of Reference (ToR) of the 8th Pay Commission (not present in 7th CPC)?
(a) Benchmarking with private sector pay
(b) Review of pay structure of PSUs
(c) Assessment of unfunded cost of non-contributory pension schemes
(d) Revision of DA formula.
Hint: New clause added to evaluate financial sustainability of Old Pension Scheme (OPS).
IE Explained: How Odisha become a model state in handling cyclones
Syllabus: Pre/Mains – Disaster Management
Why in News?
Cyclone Montha → Odisha reactivates its robust disaster management system aiming for ‘zero casualty’.
Odisha’s Cyclone Preparedness
- High Vulnerability → 480 km coastline; 110 cyclones (1891–2020); Bay of Bengal = warm + funnel-shaped → frequent storm surges.
- Focus Districts (2025) → Malkangiri, Koraput, Nabarangpur, Rayagada, Gajapati, Ganjam, Kandhamal, Kalahandi.
- Proactive Actions → 32,000 evacuees → safe shelters; 2,600 pregnant women → hospitals; 160 teams (NDRF + ODRAF + Fire).
- Preventive Measures → Schools closed; Govt. leave cancelled; tourist movement restricted.
- Target → “Zero casualty” benchmark from past cyclones.
Institutional Evolution Post-1999 Super Cyclone
- 1999 Super Cyclone Impact → >10,000 deaths; poor forecasting & no mitigation infra.
- Systemic Reforms → Creation of Odisha State Disaster Management Authority (OSDMA) (2000).
- Infrastructure → >1,000 multipurpose cyclone shelters; ODRAF formed (India’s 1st state disaster response force).
- Tech & Equipments → Modern early warning systems, rescue gear, satellite-based alerts.
- Community Decentralisation → PRI members, volunteers, SHGs, youth → evacuation & relief core teams.
Proven Results from Past Cyclones
- Phailin (2013) → 1 million evacuated in record time → “Zero casualty” success; UN praise.
- Fani (2019) → Category V equivalent cyclone → extensive infra loss but minimal deaths.
- Frequent Drills → Mock exercises, local training → ↑ readiness.
- Restoration Efficiency → Roads, power, water restored within hours post-cyclone.
Odisha: A Model for Disaster Governance
- Integrated Approach → Early warning + mass evacuation + community participation.
- Policy Continuity → Lessons institutionalised since 1999 → constant improvement.
- Outcome → Human casualty ↓ drastically despite ↑ cyclone frequency.
- Recognition → UN & NDMA hailed Odisha’s “zero-death” cyclone management model.
News in Short
India pays homage to Sardar Vallabhbhai Patel on his 150th Jayanti: Prime Minister
Why in News?
→ India pays homage to Sardar Vallabhbhai Patel on his 150th Jayanti: PM
About Sardar Vallabhbhai Patel
- Born 31 Oct 1875 in Nadiad, Gujarat.
- Known as the “Iron Man of India” for his role in integrating the princely states.
- Held offices: first Deputy Prime Minister and Home Minister of India (1947-50).
- Legacy includes national unity, public administration reform, and cooperative movement.
Significance of 150th Jayanti & National Unity Day
- 31 October observed annually as Rashtriya Ekta Diwas (National Unity Day) in India, marking Patel’s birth anniversary.
- 2025 marks his 150th birth anniversary → a major milestone celebrated nationally.
- Celebrations emphasize: unity, integrity, self-reliance.
Justice Surya Kant to Become 53rd Chief Justice of India (CJI)
Why in News?
→ Justice Surya Kant appointed as 53rd CJI; to assume office on Nov 24, 2025, succeed Justice Bhushan R. Gavai.
Appointment of Chief Justice of India (CJI)
- Constitutional Basis → Art. 124(2) → No specific procedure for appointing CJI — only says “President shall appoint.”
- Appointing Authority → President of India
- Process → By convention → seniority principle (senior-most SC judge appointed)
- Consultation → With outgoing CJI & other senior judges (Collegium norm)
- Tenure → Till age of 65 yrs
- Removal → By President → after impeachment by Parliament (Art. 124(4))
- Oath → Administered by President under Third Schedule
- Functions → Head of judiciary & SC; advises President; chairs collegium & NALSA
