APPSC Daily Current Affairs - 16th December 2025
Source: Deccan Chronicle
Relevance:
GS Paper 1: Modern Indian History – Linguistic reorganisation of states
GS Paper 2:GS Paper 2: Governance, federalism, political leadership
GS Paper 4: Ethics – sacrifice, public service, legacy of freedom fighters
Important Key Concepts for Prelims and Mains:
For Prelims:
- Potti Sriramulu, Andhra State (1953), Linguistic States, Kurnool Capital, Andhra Pradesh (1956), Amarajeevi, Atmarpana Day
For Mains:
- Linguistic reorganisation of states, Role of mass sacrifice in nation-building, Federalism and regional identity, Political memorialisation of freedom fighters
Why in News?
Andhra Pradesh Chief Minister N. Chandrababu Naidu announced that December 15 will be observed annually as the “Day of Sacrifice” to honour Amarajeevi Potti Sriramulu, who fasted unto death demanding a separate state for Telugu-speaking people.
Background: Potti Sriramulu and Andhra State Formation
- Potti Sriramulu undertook a 58-day fast unto death demanding a separate Telugu state.
- His sacrifice led to the formation of Andhra State on October 1, 1953, with Kurnool as its capital.
- On November 1, 1956, Andhra Pradesh was formed as the first linguistic state for Telugus.
Announcement of “Day of Sacrifice”
- December 15 will henceforth be officially observed as Day of Sacrifice in Andhra Pradesh.
- The announcement was made during Potti Sriramulu’s Atmarpana Day programme in Vijayawada.
Key Historical Clarifications by the CM
- The CM sought to dispel controversies over dates related to Andhra’s formation.
- He accused certain sections of politicising historical sacrifices.
- Highlighted that the sacrifice was solely for Telugu self-respect and statehood.
Memorial and Commemorative Initiatives
- Smruthi Vanam to be constructed in Amaravati.
- The building in Chennai where Sriramulu fasted till death to be developed as a memorial.
- His residence in Nellore to be converted into a memorial.
- A “Statue of Sacrifice” to be erected in Amaravati.
- The statue will be 58 feet high, symbolising the days of fasting.
Centenary Celebrations (2025–26)
- Official centenary celebrations will continue till March 16, 2026.
- Programmes planned across Andhra Pradesh to educate future generations.
Political and Developmental Context
- CM criticised the previous YSRC regime for:
- Promoting the three-capital model.
- Politicising government medical colleges under PPP mode.
- Reiterated commitment to Amaravati as the capital, while pursuing decentralised development.
- Highlighted achievements:
- Andhra Pradesh ranked first in aquaculture (RBI report).
- ₹21 lakh crore investments attracted in 18 months.
Significance of the Decision
- Reinforces the importance of sacrifice in India’s federal evolution.
- Revives public memory of the linguistic reorganisation movement.
- Strengthens regional identity within the constitutional framework.
- Acts as a tool for civic education and ethical inspiration.
Conclusion
Declaring December 15 as the “Day of Sacrifice” institutionalises the legacy of Potti Sriramulu, whose selfless act reshaped India’s federal map. Beyond symbolism, the move reconnects governance with historical ethics, reminding citizens that democratic rights and statehood were earned through extraordinary personal sacrifice.
CARE MCQ
The declaration of December 15 as the “Day of Sacrifice” in Andhra Pradesh is directly linked to which historical outcome?
(a) Formation of Andhra Pradesh in 1956
(b) Creation of Andhra State in 1953 after a prolonged fast
(c) Adoption of linguistic reorganisation by the Constituent Assembly
(d) Merger of Andhra State with Telangana
Answer: (b)
Explanation:
- December 15 marks the death of Potti Sriramulu after a 58-day fast, which directly led to the formation of Andhra State in 1953.
- Andhra Pradesh was formed later in 1956, after linguistic reorganisation.Top of FormBottom of Form
Source: PIB
Relevance:
GS Paper 2: Government policies, institutional mechanisms
GS Paper 3: Energy conservation, climate change, sustainable development
Important Key Concepts for Prelims and Mains:
For Prelims:
- National Energy Conservation Awards (NECA), Bureau of Energy Efficiency (BEE), Energy Conservation Act, 2001, National Energy Conservation Day (14 December), Carbon Credit Trading Scheme (CCTS), 2023, Perform, Achieve and Trade (PAT) Scheme, Standards & Labeling (S&L) Programme, Pradhan Mantri Surya Ghar Muft Bijli Yojana, National Green Hydrogen Mission, Lifestyle for Environment (LiFE)
For Mains:
- Role of behavioural change in energy efficiency, Institutional mechanisms for energy conservation in India, Energy conservation as a climate mitigation strategy, Energy efficiency and inclusive development, Demand-side interventions in India’s energy transition, Contribution of energy efficiency to SDGs and low-carbon growth
Why in News?
On National Energy Conservation Day, 14 December 2025, the President of India, Smt. Droupadi Murmu, presented the National Energy Conservation Awards (NECA) 2025 and National Painting Competition on Energy Conservation prizes in New Delhi.
National Energy Conservation Awards (NECA)
About
- Instituted in 1991
- An initiative of the Bureau of Energy Efficiency (BEE)
- Recognises excellence in reducing energy consumption while maintaining or improving productivity
Sectors Covered
- Industrial sector
- Commercial buildings
- Transport sector
- Institutions
- Energy-efficient appliances
Core Objective
- Promote efficient, responsible and sustainable use of energy
- Encourage replication of best practices across sectors
Bureau of Energy Efficiency (BEE)
- Statutory body
- Established on 1 March 2002
- Under the Energy Conservation Act, 2001
Major Initiatives
- Standards & Labeling (S&L) Programme
- Demand Side Management (DSM) programmes
- Perform, Achieve and Trade (PAT) → replaced by Carbon Credit Trading Scheme (CCTS), 2023
- Nationwide awareness and capacity-building campaigns
Key Highlights of the President’s Address
Energy Conservation as the Cleanest Energy
- Energy conservation is the most environmentally friendly and reliable source of energy
- It is not optional, but a crucial necessity
Meaning of Energy Conservation
- Not merely “using less energy”
- Using energy wisely, responsibly, and efficiently
Practical Actions Highlighted
- Avoid unnecessary use of electrical appliances
- Adopt energy-efficient devices
- Utilise natural light and ventilation
- Embrace solar and renewable energy options
Environmental & Social Significance
- Reduces carbon emissions
- Helps maintain clean air and safe water
- Protects ecosystems
- Every unit of energy saved reflects:
- Responsibility towards nature
- Sensitivity towards future generations
Role of Youth and Behavioural Change
- Awareness among children and youth is critical
- Behavioural change is central to energy efficiency
- Participation of every citizen and sector is essential for India’s energy transition
Energy Conservation and Inclusive Development
- Access to affordable and clean energy:
- Empowers communities
- Stimulates local economies
- Creates new growth opportunities
- Green energy is not limited to electricity generation
- It is a tool for empowerment and inclusive development
Government Initiatives Highlighted
- Pradhan Mantri Surya Ghar Muft Bijli Yojana
- National Green Hydrogen Mission
- Renewable Consumption Obligation (RCO)
- Production Linked Incentive (PLI) schemes
Pradhan Mantri Surya Ghar Muft Bijli Yojana
This is a central government scheme, launched in February 2024, designed to provide free or highly subsidised electricity to one crore Indian households through the installation of rooftop solar panels.
- Objective: To enable households to become self-reliant in energy, reduce electricity bills (offering up to 300 units of free electricity monthly), and promote renewable energy use.
- Key Benefit: The government provides a direct subsidy to cover a significant portion of the installation cost:
- ₹30,000 for 1 kW systems.
- ₹60,000 for 2 kW systems.
- ₹78,000 for systems larger than 3 kW.
- Application: Eligible Indian citizens with a valid electricity connection can apply through the official PM Surya Ghar portal.
National Green Hydrogen Mission (NGHM)
Approved in January 2023 with an initial outlay of ₹19,744 crore, the NGHM aims to establish India as a global hub for the production, usage, and export of green hydrogen.
- Objective: Decarbonisation of major sectors like industry, mobility, and energy; reducing dependence on imported fossil fuels; and developing indigenous manufacturing capabilities.
- Target: To develop a green hydrogen production capacity of at least 5 Million Metric Tonnes (MMT) per annum by 2030, which is expected to attract over ₹8 lakh crore in investments and avert nearly 50 MMT of annual greenhouse gas emissions.
- Key Components: The Mission includes schemes for incentives (Strategic Interventions for Green Hydrogen Transition – SIGHT), pilot projects, R&D activities, and developing supply chain infrastructure.
Renewable Consumption Obligation (RCO)
The RCO is a regulatory mechanism that mandates specific electricity consumers to source a certain percentage of their total power consumption from renewable energy sources. Formerly known as the Renewable Purchase Obligation (RPO), it was recently revised and notified under the Energy Conservation (Amendment) Act, 2022.
- Obligated Entities: Distribution licensees (DISCOMs), open access consumers, and captive power plant users.
- Targets: The mandatory percentage is set to progressively increase from 29.91% in FY 2024-25 to 43.33% by FY 2029-30.
- Compliance: Entities can meet their obligation through direct consumption of renewable energy, purchasing Renewable Energy Certificates (RECs), or paying a “buyout” penalty price.
Production Linked Incentive (PLI) Schemes
The PLI scheme is a flagship initiative by the Government of India offering performance-based financial incentives to encourage domestic manufacturing, attract large investments, and boost exports across various strategic sectors.
- Mechanism: Incentives (usually a percentage of incremental sales/production) are provided to companies for a period of 4-6 years on products manufactured in India.
- Sectors Covered: The scheme has been rolled out across 14 key sectors, including large-scale electronics manufacturing (e.g., mobile phones), IT hardware, solar PV modules, pharmaceuticals, automobiles, textiles, telecom products, and white goods.
- Impact: The schemes have already realised significant investments and increased domestic production in sectors like mobile phone manufacturing. The Ministry of New & Renewable Energy (MNRE) also implements a specific PLI scheme for high-efficiency solar PV modules to build GW-scale capacity domestically.
Achievements (2023–24)
- Energy savings: 53.60 million tonnes of oil equivalent (Mtoe)
- Significant economic savings
- Substantial CO₂ emission reduction
LiFE Movement (Lifestyle for Environment)
- Rooted in India’s cultural tradition of living in harmony with nature
- Behavioural consciousness forms the basis of:
“Lifestyle for Environment – LiFE” - India’s message to the world on sustainable living
Significance for India
- Strengthens India’s energy security
- Reduces dependence on fossil fuels
- Accelerates low-carbon transition
- Supports SDGs, climate commitments, and green growth
Conclusion
The National Energy Conservation Awards 2025 reaffirm that energy efficiency is as much about human behaviour as it is about technology. Through strong institutional frameworks (BEE), visionary leadership, public participation, and initiatives aligned with LiFE, India is positioning itself as a global leader in energy conservation, climate responsibility, and sustainable development.
UPSC PYQ
Q. On which of the following can you find the Bureau of Energy Efficiency Star Label? (2016)
- Ceiling fans
- Electric geysers
- Tubular fluorescent lamps
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Ans: (d)
CARE MCQ
Q. The National Green Hydrogen Mission targets the production of how much green hydrogen annually by 2030?
(a) 2 Million Metric Tonnes
(b) 3 Million Metric Tonnes
(c) 5 Million Metric Tonnes
(d) 10 Million Metric Tonnes
Answer: (c)
Explanation:
- Approved in January 2023 with an outlay of ₹19,744 crore, the mission aims to make India a global green hydrogen hub.
- The target of 5 MMT per annum is expected to attract ₹8 lakh crore investment and reduce 50 MMT of GHG emissions annually.
Source: The Hindu
Relevance:
GS Paper III – Capital Markets, Growth & Development, Financial Stability
Important Key Concepts for Prelims and Mains:
For Prelims:
- Capital Markets, Foreign Portfolio Investment (FPI), Mutual Funds, Retail Investors, Initial Public Offerings (IPOs)
For Mains:
- Financial Deepening, Market Stability, Investor Protection, Unequal Participation, Monetary Autonomy
Why in News?
India’s capital markets are undergoing a structural transformation where domestic household savings are increasingly replacing foreign portfolio investment (FPI) as the primary source of liquidity.
While this enhances market independence and reduces exposure to volatile global capital, it raises concerns regarding investor preparedness, unequal market participation, and financial safety nets, especially as India progresses toward Viksit Bharat 2047.
How Is Domestic Money Transforming Indian Capital Markets?
1. Shift in Market Ownership and Influence
FPI holdings in Indian equities have fallen to a 15-month low of 16.9%, and to 24.1% in NIFTY 50 companies.
In contrast, domestic mutual funds continue to set new ownership records, supported by consistent and rising SIP inflows.
Retail investors—through direct equity participation and mutual fund investments—now command around 19% of market ownership, the highest in more than 20 years.
Implication:
Market power is steadily shifting away from globally mobile foreign capital to stable domestic savers, reducing the susceptibility of Indian equities to external volatility.
2. Surge in Primary Markets and Capital Formation
The year 2025 has seen exceptional domestic confidence reflected in the primary markets.
- 71 mainboard IPOs have collectively raised over ₹1 lakh crore so far.
- Corporate investment announcements for FY25 have grown 39% year-on-year, with nearly 70% coming from the private sector.
Implication:
Stronger domestic risk appetite is driving capital mobilisation and strengthening the investment cycle.
3. Improved Market Stability
Domestic savings now serve as a long-term stabilising force in the capital markets.
These inflows help soften the volatility created by abrupt FPI movements.
For instance, during the October 2025 NIFTY 50 rally, domestic investor activity created a crucial “flight-to-stability” cushion even as global uncertainty intensified.
4. Greater Monetary Policy Autonomy for the RBI
Lower dependence on foreign portfolio flows provides the Reserve Bank of India (RBI) with enhanced freedom to:
- Support bank credit growth
- Manage the trade-off between inflation and economic expansion
- Avoid excessive interventions to stabilise the rupee during capital flight episodes
However, this expanded policy space is not permanent. It relies heavily on continued household confidence in financial markets, and could narrow quickly if markets undergo sharp corrections.
What Are the Key Challenges Emerging from India’s Domestic-led Capital Market Shift?
1. Limited Investor Preparedness and Financial Literacy
A rapid influx of new retail investors—many unfamiliar with concepts such as risk assessment, market cycles, and valuation metrics—creates significant vulnerabilities.
During market downturns, these investors are more likely to incur steep losses, potentially eroding long-term confidence in equity markets and hindering sustained retail participation.
2. Overvaluation Risks in IPOs and New-age Companies
Several newly listed firms, especially in the technology and digital economy space, are being valued far above their earnings and fundamentals.
If sentiment weakens, these inflated valuations can correct sharply, disproportionately harming small and first-time investors who often enter at peak prices.
3. Low Returns for Small Investors
Despite their widespread popularity, most active mutual funds struggle to consistently beat benchmark indices once risk and fees are accounted for.
Meanwhile, low-cost passive investment options, which offer better long-term outcomes, remain underutilised.This diminishes the potential wealth creation for small investors who rely heavily on mutual funds.
4. Uneven Market Participation
Equity and mutual fund participation remains heavily concentrated among urban, high-income households with better access to financial services.
This uneven distribution of market ownership results in unequal sharing of market gains, limiting the broader role of capital markets in promoting inclusive economic development.
5. Corporate Governance Vulnerabilities
Falling promoter shareholding in several companies raises concerns regarding long-term promoter commitment and the possibility of opportunistic exits.
To protect domestic savers—who now form the backbone of India’s capital markets—stronger governance standards, enhanced transparency, and stricter oversight mechanisms are essential.
What Measures Are Needed to Strengthen India’s Capital Markets?
1. Address Access and Information Asymmetries
SEBI’s investor protection framework must evolve beyond the current disclosure-based approach under the SEBI (LODR) Regulations, 2015.
There is a need for:
- Suitability-based selling, where products match an investor’s risk profile
- Simplified investment products to reduce complexity
- Stricter oversight of intermediaries and distributors, especially those engaging with first-time investors
This will help ensure that new entrants are not misled by aggressive marketing or complex financial jargon.
2. Promote Low-cost Passive Investment Options
To improve investor outcomes, India should encourage wider adoption of index funds and ETFs by:
- Reducing expense ratios
- Strengthening investor awareness through initiatives like the Mutual Fund Sahi Hai campaign
This can counter the consistently low post-fee returns of active funds and help small investors achieve better long-term gains.
3. Enhance Financial Literacy and Build Trust
Financial literacy must be scaled up under the National Strategy for Financial Education (NSFE), with special focus on:
- Small and new retail investors
- Women investors
- First-time market participants in semi-urban and rural areas
Better financial awareness will strengthen investor resilience and improve the quality of participation.
4. Strengthen Corporate Governance Standards
Robust governance is essential to protect domestic savers who now form the core of market ownership.
This requires:
- Effective implementation of the Companies Act, 2013
- Strict adherence to SEBI’s LODR norms
- Stronger independent boards
- Enhanced disclosures and greater transparency
These measures will ensure that declining promoter stakes represent genuine capital formation rather than short-term value extraction.
5. Adopt Data-driven Inclusion Strategies
Policymakers should leverage digital infrastructure and institutional databases—such as those of RBI, SEBI, and NPCI—and align them with JAM (Jan Dhan–Aadhaar–Mobile) and Digital India to:
- Identify underserved regions and investor segments
- Design targeted interventions
- Improve inclusion without increasing risk
Such evidence-based policymaking can broaden the investor base in a sustainable manner.
Conclusion
India’s growing reliance on domestic savings has enhanced market stability and reduced vulnerability to external financial shocks. However, this resilience will remain fragile unless it is supported by broader investor inclusion, stronger financial literacy, and robust protection mechanisms. Strengthening governance standards and improving long-term investor outcomes are critical for sustaining confidence in capital markets and ensuring that this transition contributes meaningfully to India’s journey toward Viksit Bharat 2047.
UPSC PYQ
Convertibility of rupee implies (2015)
(a) being able to convert rupee notes into gold
(b) allowing the value of rupee to be fixed by market forces
(c) freely permitting the conversion of rupee to other currencies and vice versa
(d) developing an international market for currencies in India
Correct Answer: (c) freely permitting the conversion of rupee to other currencies and vice versa
- Convertibility of rupee refers to the freedom to convert Indian currency into foreign currency and foreign currency into rupees without needing prior approval from authorities.
- Earlier, the RBI controlled foreign exchange, and citizens had to seek permission to buy foreign currency.
- All foreign exchange earned had to be sold to authorized dealers, as part of India’s controlled forex regime.
- The purpose of controls was to conserve scarce foreign exchange and allocate it as per government priorities.
- As India’s economy opened up and grew rapidly, restrictions on current account convertibility were eased.
- Today, India has full current account convertibility, but capital account convertibility is still limited.
- Full convertibility on capital account remains a long-term goal due to financial stability considerations.
- Convertibility of currency means the currency can be exchanged freely into foreign currency at market-determined exchange rates.
- Exchange rates are determined by demand and supply in the forex market.
- With convertibility, anyone holding foreign exchange (e.g., USD, Pounds) can convert it into rupees and vice versa without major restrictions.
- India’s rupee is convertible on both current account and partially on capital account, not fully on capital account.
CARE MCQ
Q. Consider the following statements regarding financial markets in India:
- The money market deals with short-term financial instruments having a maturity period of less than one year.
- The capital market includes only the secondary market where existing securities are traded.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (a) 1 only
Explanation:
- Statement 1 is correct:
- The money market deals with short-term instruments (maturity less than one year) such as Treasury Bills, Commercial Paper, Certificates of Deposit, etc.
- It facilitates short-term borrowing and lending among banks and financial institutions.
- Statement 2 is not correct:
- The capital market includes both:
- Primary market → where new securities are issued
- Secondary market → where existing securities are traded
- Hence, it is incorrect to say it only includes the secondary market.
- The capital market includes both:
Additional Information:
- Foreign Exchange Market: Enables the buying and selling of currencies; crucial for cross-border trade.
- Derivatives Market: Trades futures, options, swaps—whose value is derived from underlying assets like stocks, commodities, or currencies.
- Financial markets improve capital formation, liquidity, risk management, and economic growth.
