UPSC Daily Current Affairs - 19th December 2025
Source: THE HINDU
Relevance: GS Paper 3 Science & Tech → Indigenisation of Technology
Important Key Concepts for Prelims and Mains:
For Prelims:
- DHRUV64 Microprocessor, RISC-V Architecture, Microprocessor Development Programme (MDP), C-DAC, India Semiconductor Mission (ISM), DIR-V Programme, System-on-Chip (SoC), THEJAS & SHAKTI Processors
For Mains:
- Technological Self-Reliance, Strategic Digital Infrastructure, Semiconductor Ecosystem, Indigenous Chip Design, Fabless Design Capability, Innovation & R&D Capacity Building, Electronics System Design & Manufacturing (ESDM), National Technology Sovereignty
Why in News?
India has unveiled DHRUV64, the country’s first fully indigenous 1.0 GHz, 64-bit dual-core microprocessor, developed by the Centre for Development of Advanced Computing (C-DAC) under the Microprocessor Development Programme (MDP). The processor marks a major step in India’s semiconductor mission, strengthening domestic capability in advanced chip design and reducing dependence on foreign microprocessors.
About DHRUV64
- DHRUV64 marks a major milestone in India’s semiconductor journey.
- It is India’s fully indigenous microprocessor, developed by the Centre for Development of Advanced Computing (C-DAC).
- The processor has been created under the Microprocessor Development Programme (MDP).
- DHRUV64 provides the country with a reliable, homegrown processor technology.
- It is capable of supporting both strategic and commercial applications.
- Its development represents a significant advancement in India’s efforts to achieve self-reliance in advanced chip design.
- The launch strengthens India’s capability in independent microprocessor design and development.
Key Features of DHRUV64
- DHRUV64 is built with modern architectural features, making it a technologically advanced processor.
- It delivers higher efficiency, ensuring faster and more effective performance.
- Provides enhanced multitasking capability, enabling smooth handling of multiple operations.
- Offers improved reliability, essential for strategic and commercial uses.
- Its advanced design allows seamless integration with a wide range of external hardware systems.
- Uses modern fabrication technologies typically employed in high-performance chips.
- These capabilities make DHRUV64 suitable for multiple sectors, including:
- 5G infrastructure
- Automotive systems
- Consumer electronics
- Industrial automation
- Internet of Things (IoT)
Strategic Significance of DHRUV64 for India
- DHRUV64 marks a major milestone in India’s journey toward a secure and self-reliant semiconductor ecosystem.
- It strengthens India’s indigenous capability in advanced processor development.
- Supports the nation’s critical digital infrastructure, reducing long-term dependence on imported microprocessors.
- India consumes around 20% of all microprocessors manufactured globally; DHRUV64 helps reduce foreign reliance.
- Provides India’s large talent base with a fully modern processor platform to advance the domestic semiconductor ecosystem.
- Before DHRUV64, India had already begun building its indigenous microprocessor ecosystem through key projects such as:
- SHAKTI (2018, IIT Madras) – Designed for strategic, space, and defence applications.
- AJIT (2018, IIT Bombay) – A microprocessor for industrial and robotics use.
- VIKRAM (2025, ISRO–SCL) – Developed for space navigation, guidance, and mission operations; built to withstand extreme space conditions.
- THEJAS64 (2025, C-DAC) – Designed for industrial automation applications.
- The development of indigenous processors such as SHAKTI, AJIT, VIKRAM, THEJAS, and now DHRUV64 is strategically important as they collectively build a robust Indian processor ecosystem.
DHRUV64’s Impact on India’s R&D and Innovation
- DHRUV64 offers a fully homegrown microprocessor technology that enables startups, academia, and industry to build, test, and scale indigenous computing products without relying on foreign processors.
- The processor supports affordable prototype development, allowing the creation of new system architectures at lower cost.
- India already has 20% of the world’s chip design engineers; DHRUV64 strengthens this advantage by helping build a strong pipeline of skilled semiconductor professionals.
- The success of DHRUV64 has accelerated India’s microprocessor roadmap, especially the development of next-generation Dhanush and Dhanush+ processors, which are currently under progress.
DHRUV64 Driving India’s Indigenous Chip Roadmap
- The launch of DHRUV64 marks a crucial step in strengthening India’s self-reliant and indigenous microprocessor ecosystem.
- By using open-source RISC-V architecture, DHRUV64 eliminates licence costs, enabling long-term, scalable deployment across multiple platforms.
- DHRUV64 is the third microprocessor fabricated under the Digital India RISC-V (DIR-V) Programme, which aims to develop future-ready indigenous processors for India.
- Earlier chips under the DIR-V initiative include:
- THEJAS32 – fabricated at the Silterra facility in Malaysia.
- THEJAS64 – manufactured domestically at Semiconductor Laboratory (SCL), Mohali.
- In addition, DHANUSH64 and DHANUSH64+ (SoC variants) are currently under design, implementation, and fabrication.
- The rollout of DHRUV64 demonstrates India’s rapidly growing capability in homegrown microprocessor development.
- The continued advancement of the DIR-V initiative reinforces India’s long-term commitment to building a robust, indigenous, and future-ready microprocessor ecosystem.
Institutional Ecosystem Driving Processor Development
- India’s semiconductor progress is supported by a coordinated institutional framework led by key national agencies that guide policy, funding, and programme implementation.
- These institutions collectively strengthen India’s capability to design and develop indigenous microprocessors.
Ministry of Electronics and Information Technology (MeitY)
- MeitY plays a central leadership role in advancing India’s processor and semiconductor initiatives.
- Provides policy direction, financial support, and long-term planning for national programmes such as:
- Microprocessor Development Programme (MDP)
- Digital India RISC-V (DIR-V) Programme
- Chips to Startup (C2S)
- India Semiconductor Mission (ISM)
- These measures have significantly strengthened India’s design ecosystem and enabled consistent progress in indigenous processor development.
Centre for Development of Advanced Computing (C-DAC)
- C-DAC leads the design and development of India’s indigenous processors.
- Develops:
- Processor Intellectual Properties (IPs)
- System-on-Chips (SoCs)
- Development boards
- Tools supporting domestic processor ecosystems
- Currently advancing the next processors in the RISC-V roadmap, including Dhanush and Dhanush+.
- These upcoming processors will expand India’s homegrown RISC-V ecosystem, enhancing options for strategic and commercial applications.
Key National Programmes Supporting Indigenous Chip Design
- The Government of India has launched several flagship programmes to strengthen domestic chip design capabilities, expand research infrastructure, and promote innovation across academia, startups, and industry.
India Semiconductor Mission (ISM)
- Launched in December 2021 under MeitY to build a sustainable semiconductor and display ecosystem.
- Provides structured support and collaborates with global companies to bring large semiconductor investments into India.
- As of 2025, ISM has approved 10 projects across six States, with total investment commitments of ₹1.60 lakh crore.
- Positions India as a competitive player in the global semiconductor ecosystem.
Digital India RISC-V (DIR-V) Programme
- Launched in April 2022, it plays a central role in advancing indigenous chip design.
- Enables development of advanced RISC-V processors within India.
- Brings together researchers, startups, and industry into a shared design ecosystem, improving collaboration and innovation.
Chips to Startup (C2S) Programme
- Launched in 2022 to build a strong talent pipeline and fabless design ecosystem.
- Implemented across 113 institutions (100 academic & R&D bodies + 13 startups/MSMEs).
- Five-year outlay of ₹250 crore.
- Aims to produce 85,000 industry-ready professionals and promote vibrant chip design activity nationwide.
Design Linked Incentive (DLI) Scheme
- Introduced in 2021 to support semiconductor design startups and companies.
- Provides financial incentives and design infrastructure across the development cycle of:
- Integrated Circuits (ICs)
- Chipsets
- System-on-Chips (SoCs)
- IP Cores and semiconductor-linked designs
- Incentive period covers five years.
Indian Nanoelectronics Users Programme – idea to innovation (INUP-i2i)
- Launched by MeitY to democratize access to India’s national nanofabrication facilities.
- Offers hands-on training in chip and device fabrication to students, researchers, and startups.
- Achievements so far:
- 49 familiarization workshops
- 42 hands-on training workshops
- 36 industry trainings
- 10 hackathons
- 8,000+ skilled manpower trained
- 348 short-term and 220 mid-term R&D projects supported
Conclusion
India’s progress in indigenous processor development reflects strong commitment to Aatmanirbhar Bharat.DHRUV64, supported by DIR-V, C2S, ISM, DLI, and INUP-i2i, demonstrates India’s maturing capability to design and prototype advanced processors.Coordinated efforts across MeitY, C-DAC, academia, and industry are building long-term national strength in semiconductors.The journey from THEJAS32 → DHRUV64 → Dhanush/Dhanush+ indicates a confident move toward technological self-reliance and processor innovation.
UPSC PYQ
Q. Which one of the following laser types is used in a laser printer?
(a) Dye laser
(b) Gas laser
(c) Semiconductor laser
(d) Excimer laser
Answer: (c) Semiconductor laser
Explanation:
Laser printers use semiconductor diode lasers because they are:
Compact and affordable
Energy-efficient
Capable of producing precise, focused beams to form electrostatic images on the drum
CARE MCQ
Q. Choose the Correct Pair — Indigenous Indian Microprocessors
| Sl. No. | Microprocessor | Developer / Purpose |
| 1 | SHAKTI | Designed by IIT Madras for strategic, space & defence applications |
| 2 | AJIT | Designed by IIT Bombay for industrial & robotics applications |
| 3 | VIKRAM | Developed by C-DAC for industrial automation |
| 4 | THEJAS64 | Developed by ISRO–SCL for space navigation & mission operations |
Q: How many of the above pairs are correctly matched?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Correct Answer: (c) Only three
Explanation:
1. SHAKTI → IIT Madras (Correct)
- India’s first open-source RISC-V based microprocessor family.
- Designed for strategic, defence, and space use.
2. AJIT → IIT Bombay (Correct)
- India’s first commercially produced microprocessor developed with SAMEER.
- Targeted for industrial controllers, IoT devices, and robotics.
3. VIKRAM → C-DAC (Incorrect)
- This pair is incorrect because:
- VIKRAM was developed by ISRO–SCL, not C-DAC.
- It is used for space navigation, guidance, and mission operations.
4. THEJAS64 → C-DAC (Correct)
- A 64-bit RISC-V processor designed for industrial automation and embedded systems.
Source: The Indian Express
Relevance:
GS Paper 3 – Indian Economy, Financial Markets, Cryptocurrency Regulation, Emerging Technologies
Important Key Concepts for Prelims and Mains:
For Prelims:
- Bitcoin, Cryptocurrency, Blockchain Technology, Central Bank Digital Currency (CBDC), Satoshi Nakamoto, Bitcoin Halving, Bitcoin ETFs, Digital Gold, Fiat Currency.
For Mains:
- Impact of cryptocurrency on Indian economy, Cryptocurrency market volatility, Impact of monetary policy on digital assets, Risk sentiment in global markets, Safe-haven vs risk asset behaviour.
Why in News?
- Bitcoin has fallen sharply from its record high of $126,000 in October 2025 to below $85,000, wiping out nearly $1 trillion in crypto market value.
- This decline has fuelled concerns of an upcoming “crypto winter” — a prolonged phase of low prices, low trade volumes, and weakened investor confidence.
Basics of Crypto Currency
What is a Cryptocurrency?
- A cryptocurrency is a digital or virtual currency secured through cryptography.
- It operates in a decentralised ecosystem, without control by any state, central bank, or financial institution.
- Popular examples include Bitcoin, Ethereum, Litecoin, Ripple, and Bitcoin Cash.
How Does Cryptocurrency Work?
- All transactions are recorded on a blockchain, a distributed digital ledger maintained by a global network of computers.
- Every new transaction is verified and added to this ledger via cryptographic processes.
- Users transact using a digital wallet, which stores their public and private keys.
- Cryptocurrencies can be mined, where computers solve complex mathematical problems to validate transactions and receive crypto rewards.
What is Blockchain Technology?
- A decentralised, tamper-resistant ledger that maintains records across distributed nodes.
- Each block contains verified transactions, cryptographically linked to previous blocks.
- Ensures transparency, security, and immutability.
- Though foundational to Bitcoin, blockchain has wider applications (supply chain, governance, health records).
Examples of Major Cryptocurrencies
Bitcoin (BTC)
- First decentralised cryptocurrency (2009), created by Satoshi Nakamoto.
- Based on a peer-to-peer network; capped at 21 million coins.
Ethereum (ETH)
- A blockchain supporting smart contracts and decentralised applications (dApps).
- Ether functions as native currency.
Litecoin (LTC)
- Faster block generation time than Bitcoin; suited for small, quick transactions.
Ripple (XRP)
- Designed for fast, low-cost global payments.
- Works on the Ripple Protocol for cross-border transfers.
Bitcoin Cash (BCH)
- Result of a Bitcoin hard fork (2017); larger block size for faster, cheaper transactions.
Legal Status of Cryptocurrency
In India
- 2013–2017: RBI issues repeated warnings; crypto not banned but considered risky.
- 2018: RBI imposes a banking ban—exchanges lose access to banks.
- 2020: Supreme Court lifts RBI ban; crypto trading becomes fully legal again.
- 2022: Govt imposes 30% tax on gains + 1% TDS; crypto formally recognised as Virtual Digital Assets (VDAs), but not legal tender.
- 2022–23: RBI launches Digital Rupee (CBDC) pilots; clear distinction made between CBDC (legal tender) and private crypto (not legal tender).
- 2023: Crypto exchanges brought under FIU-IND, mandatory KYC & AML compliance.
- 2024–25: Crypto fully legal to own, trade, and invest; still treated as digital assets, not currency; payment use limited due to taxes.
- 2025: Crypto is legal in India, heavily regulated, taxed at 30% + 1% TDS, not legal tender, and treated strictly as an investable digital asset, while CBDC is the only authorised digital currency.
Globally
- Legal tender: El Salvador, Central African Republic.
- Regulated acceptance: Japan, South Korea, Germany, Switzerland.
- Restrictions or bans: China, Russia.
India’s CBDC (Digital Rupee)
- Pilot launched by RBI; CBDC is sovereign digital money, equivalent to fiat currency.
- Unlike crypto, CBDC is centrally issued, regulated, and fully backed by RBI.
Digital Rupee (e₹) – India’s Central Bank Digital Currency (CBDC)
The Digital Rupee (e₹) is India’s official Central Bank Digital Currency, issued and regulated by the Reserve Bank of India (RBI). It is the digital form of the Indian Rupee, having the same legal status and value as physical currency.
Key Features
- Issued by RBI: Backed by the sovereign, just like physical cash.
- 1 e₹ = 1 physical ₹.
- Stored in a Digital Wallet: Users keep e₹ in a mobile wallet provided by RBI-authorised banks.
- Cash-like Behaviour:
- Instant settlement
- Finality of payment
- Can be used offline (in pilot phase)
- Use Cases: Person-to-person (P2P), person-to-merchant (P2M) payments, retail purchases, and business transactions.
- The logo and tagline for India’s CBDC is
Challenges Associated with Cryptocurrencies
- High volatility makes them unreliable for payments.
- Regulatory vacuum creates uncertainty for investors.
- Security risks, including exchange hacks and wallet breaches.
- Low global adoption for everyday transactions.
- Scalability constraints affecting transaction volume and speed.
- Huge energy consumption during mining, adding to environmental concerns.
Why Bitcoin Is Falling
1. US Interest Rate Concerns
- On December 10, the US Federal Reserve cut interest rates by 25 basis points.
- Expected to boost risk assets like Bitcoin — but the Fed signalled:
- No further rate cuts for now
- Concern about overstated job growth
- Higher interest rates →
- Higher returns from savings
- Lower appeal for risky, non-yielding assets like crypto
- Dampened consumer sentiment
This uncertainty directly triggered speculative selling.
2. Market Jitters After the 10/10 Bitcoin Crash
• On October 10, former US President Trump threatened 100% tariffs on Chinese goods.
• Result:
✔ Panic among institutional investors
✔ $19 billion in leveraged trades liquidated
✔ $500 billion wiped out within hours
This mass liquidation broke investor confidence and created a self-reinforcing downward trend.
3. Rise in Bearish Sentiment Across Global Markets
• Global tech stocks (50% of market weight) witnessed a sharp decline.
• Fear of a possible AI bubble burst increased overall risk aversion.
• Investors shifted money from risk assets → safe assets (cash, bonds, gold).
Bitcoin, being a high-volatility asset, became an immediate casualty.
4. Bitcoin’s Failure to Behave Like “Digital Gold”
• If Bitcoin were a true safe haven:
– It should behave like gold
– Gold rises in uncertain markets
• But Bitcoin continues to show:
✔ Positive correlation with stock markets
✔ High sensitivity to risk cycles
Thus, Bitcoin remains a speculative asset, not a stable store of value.
5. Long-Term Holders Selling Large Volumes
• 800,000 Bitcoins offloaded within a month after October crash.
• Institutional exit worsened downward pressure.
• Existing traders feared further dip and followed suit → cascading selling.
Why Fears of a Crypto Winter May Be Exaggerated
1. Historical Halving Cycle Supports Recovery
• Bitcoin follows a four-year halving cycle.
• Halving reduces mining rewards by 50% → reduces supply → boosts price.
• Last halving: April 2024.
• Historically:
– Prices peak soon after halving
– Followed by correction
– NOT an immediate crash of 70–80% (not happened yet).
Thus, the present fall is a normal correction.
2. Bitcoin ETFs: Major Stabilising Force
• In January 2024, the US approved Bitcoin Exchange-Traded Funds (ETFs).
• These ETFs now hold 1.4 million Bitcoins — about 6.8% of total supply.
• This does 3 things:
✔ Brings institutional legitimacy
✔ Attracts traditional stock-market investors
✔ Reduces extreme volatility
ETFs are preventing a deep winter-like crash.
3. Pro-Crypto Policy under Current US Government
• Trump’s administration has taken pro-Bitcoin actions:
– Executive order to create a US Bitcoin Reserve (March 2025)
– GENIUS Act (June 2025) regulating stablecoins
This regulatory clarity attracts new investment and reduces panic.
Way Forward
- Clear regulatory frameworks are essential for safe adoption.
- Balanced oversight can prevent fraud while encouraging innovation.
- Lessons from countries recognising crypto can guide India’s approach.
- India can integrate learnings from its CBDC pilot to shape a structured crypto policy.
- Classifying crypto assets clearly (as commodities, assets, or currency) is essential for taxation and regulation.
- Completely banning crypto may curb innovation; a well-regulated ecosystem offers a better pathway.
UPSC PYQ
Q. With reference to “Blockchain Technology”, consider the following statements: (2020)
- It is a public ledger that everyone can inspect, but which no single user controls.
- The structure and design of blockchain is such that all the data in it are about cryptocurrency only.
- Applications that depend on basic features of blockchain can be developed without anybody’s permission.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 only
(d) 1 and 3 only
Ans: (d)
CARE MCQ
Q. Consider the following statements regarding cryptocurrencies:
- They operate in a decentralised ecosystem without control of a central bank.
- All cryptocurrency transactions are recorded on a blockchain.
- Cryptocurrencies can be used only through physical tokens issued by governments.
How many of the above statements are correct?
A. Only one
B. Only two
C. All three
D. None
Answer: B
Explanation:
- Statement 1 – Correct: Cryptocurrencies are decentralised and not controlled by states or central banks.
- Statement 2 – Correct: Transactions are recorded on a blockchain, a distributed digital ledger.
- Statement 3 – Incorrect: Cryptocurrencies are digital/virtual, not physical or government-issued.
