Current Affairs 17 October 2025
Content Restoring fiscal space for the States Russia backs AMCA, offers to make Su-57 jets in India Google’s new AI finds promising approach for cancer treatment Sustainable fuel use could quadruple by 2035: IEA 20 years of RTI Act: The slow unravelling of India’s transparency law Restoring fiscal space for the States Why is it in the News? The GST compensation cess has been merged with the regular GST, ending the compensation mechanism for States. This move is expected to pass on over₹2 lakh crore in tax benefits to consumers and potentially boost local demand. Certain States fear revenue losses and erosion of fiscal autonomy, arguing that no proper estimation of losses has been made. The decision reignites discussions on Centre-State fiscal relations, cooperative federalism, and the sharing of tax powers. Relevance GS-3: Indian Economy – Taxation, Centre-State relations, Fiscal Federalism, Public Finance, Revenue Sharing. GST and Fiscal Policy GST Introduction: Launched in July 2017 through the 101st Constitutional Amendment. Replaced multiple indirect taxes with a common destination-based tax, shared between Centre and States. Initial GST compensation mechanism ensured States were not worse off due to revenue loss. Centre-State Fiscal Relations: Articles 246–293 govern taxation powers and transfers. Finance Commission (Article 280) recommends devolution of funds to States. Central transfers still account for 44% of States’ revenue receipts, with Bihar at 72% dependence, Haryana at 20%. Dependence on Central transfers affects liquidity, fiscal autonomy, and political leverage. Revenue Sharing History: Pre-GST (2012-17): Centre collected 67%, States 33%. Post-GST (2018-23): ratio remained similar. Devolution share recommended by Finance Commissions increased from 29.5% (11th FC) → 42% (14th FC), but actual devolution fell short due to cesses and surcharges, which remain non-shareable. Overview Impact of GST Compensation Cess Merger Consumers may benefit from lower prices, boosting demand. States risk revenue loss: compensation previously guaranteed annual shortfalls. Cess and surcharge previously gave the Centre additional leverage, now merged, reducing that buffer. Erosion of Fiscal Autonomy GST centralises tax power in the GST Council, dominated by the Centre. States’ ability to independently raise revenue is limited. Progressive States (e.g., Tamil Nadu, Maharashtra) contribute more to taxes but cannot fully retain the benefits. Structural Issues in State Finances Expenditure responsibilities are higher at State level: health, education, agriculture, local governance. Central transfers and grants (CSS, CFS, Finance Commission) supplement but are performance-based or conditional. Heavy dependence on the Centre creates fiscal vulnerability and political friction, especially in opposition-ruled States. Proposed Solutions for Greater Fiscal Autonomy Sharing personal income tax base with States on a 50:50 basis, similar to GST. Allowing States to top up income tax rates without altering the current levy system. Such reforms would: Reduce dependency on Centre. Improve liquidity and planning. Reward progressive States contributing higher revenue. Comparative Perspective Example of Canada: Federal govt collects 46%, sub-national governments 54%; federal spends 40%, provinces spend 60%. Suggests a model where States have more autonomy in raising resources and spending, improving accountability and service delivery. Takeaway GST restructuring is a double-edged sword: consumer benefit vs. potential revenue loss for States. Centralised tax authority ensures uniformity but reduces State fiscal autonomy. A dynamic approach to tax sharing and grants is critical to maintain cooperative federalism. Fiscal reform may require structural redesign of transfers, tax bases, and conditionalities to empower States. Russia backs AMCA, offers to make Su-57 jets in India Why is it in the News? Russia has expressed readiness to support India’s Advanced Medium Combat Aircraft (AMCA) programme by offering local production of Su-57 fifth-generation fighter jets. The announcement highlights India-Russia defence cooperation amid geopolitical shifts in global energy and defence trade. Both countries are exploring next-generation technologies: anti-drone systems, advanced radars, and precision strike capabilities. Relevance GS-3: Defence and Security – Defence production, Aerospace technology, Strategic partnerships. GS-2: International Relations – India-Russia strategic partnership, Geopolitics, Indo-Pacific security dynamics. India-Russia Defence Ties Historical context India has relied on Russia for over six decades for defence equipment. Nearly 70% of India’s military hardware is of Russian origin. Past collaborations include BrahMos supersonic cruise missile, now being upgraded to a hypersonic version. Strategic significance Russia has been a trusted defence partner, supporting India’s military modernization. Defence cooperation extends beyond purchases to joint development, co-production, and technology sharing. Overview AMCA and Su-57 Collaboration AMCA: India’s indigenous fifth-generation fighter programme, aimed at next-gen combat capabilities. Su-57 : What it is: Russia’s fifth-generation stealth multirole fighter aircraft, designed for air superiority, ground attack, and precision strike missions; comparable to the US F-22 and F-35. Capabilities: Stealth features, supercruise (sustained supersonic speed without afterburners), advanced avionics, AESA radar, integrated electronic warfare systems, and high maneuverability for air-to-air and air-to-ground combat. Weapons & Operational Edge: Equipped with long-range air-to-air missiles, precision-guided munitions, and capable of networked warfare; can operate in contested airspaces with enhanced survivability and situational awareness Russia’s offer of local Su-57 production: Reinforces joint development and technology transfer. May accelerate AMCA programme and reduce import dependence. Strengthens India’s aerospace industrial base. Geopolitical Implications Amid U.S. sanctions and trade pressures, Russia emphasizes alternative logistics and payment mechanisms, ensuring continuity in defence ties. India-Russia partnership remains a counterbalance in Indo-Pacific geopolitics and global arms supply networks. Russia’s energy cooperation remains cost-effective despite U.S. pressure, showing strategic interdependence beyond defence. Technological and Industrial Impact Joint production of Su-57 and AMCA can: Boost R&D and skill development in Indian defence industry. Facilitate indigenous design, assembly, and maintenance capabilities. Expand collaboration in precision strike, radar, and anti-drone technologies, critical for modern warfare. Operational Lessons and Validation Russia highlights effectiveness of its equipment in Operation Sindoor, underlining reliability in real-world operational scenarios. Joint platforms like BrahMos demonstrate success of India-Russia co-production and tech sharing model. Takeaway India-Russia defence ties are moving from buyer-seller to co-development model. Local production of Su-57 aligns with India’s Make in India and defence self-reliance objectives. Strategic, technological, and industrial dimensions of cooperation enhance India’s military modernisation while reducing vulnerability to external pressures. This collaboration may redefine India’s aerospace and fighter jet capabilities, giving it a qualitative edge in air warfare. Google’s new AI finds promising approach for cancer treatment Why is it in the News? Google unveiled AI tools (C2S-Scale 27B) that discovered a novel drug combination for detecting tumors, which was previously unknown to human experts. The AI-predicted drug candidate, silmitasertib, showed effectiveness in laboratory validation, marking a milestone in AI-assisted scientific discovery. The research opens a new approach to cancer detection and therapy development, emphasizing AI’s role in translating biological data into actionable hypotheses. Relevance GS-3: Science & Technology – AI in healthcare, biotechnology, drug discovery, foundation models. AI in Drug Discovery C2S-Scale 27B A 27-billion-parameter foundation model trained to understand the language of individual cells. Designed to simulate tumor-immune interactions and predict drug effects under specific cellular conditions. The Problem Detect emerging tumors before the immune system recognizes them. Tumors often evade immune detection, requiring strategies to trigger antigen presentation and immune response. Traditional Methods vs AI Large Language Models or small AI tools could not capture complex tumor-immune signaling. AI simulated 4000+ drugs in virtual environments mimicking low interferon signaling, a key immune evasion scenario. Overview Novel Approach AI predicted drug candidates that boost immune signals selectively when interferon levels are low. Out of all AI hits: 10–30% matched known literature. Remaining were “surprising hits” with no prior known link to tumor detection, demonstrating AI’s ability to generate novel hypotheses. Scientific Validation AI predictions were experimentally validated in living cells, confirming: Silmitasertib activates immune response only under tumor-like conditions. This suggests a new pathway for early tumor detection and immunotherapy. Technological Significance Shows AI as a collaborator in scientific discovery, not just a data tool. Highlights the value of foundation models trained on cell-level biological language. Bridges computational predictions and experimental biology, accelerating drug development timelines. Medical and Societal Implications Potential to detect tumors earlier, improving cancer prognosis. Reduces reliance on trial-and-error drug testing. Can transform personalized medicine, by tailoring therapies based on cellular immune responses. Challenges & Next Steps Pre-clinical and clinical trials are necessary to confirm efficacy and safety in humans. AI models must be continuously validated and refined with experimental data. Ethical and regulatory frameworks must govern AI-guided drug discovery. Sustainable fuel use could quadruple by 2035: IEA Why is it in the News? The International Energy Agency (IEA) released the report Delivering Sustainable Fuels: Pathways to 2035, projecting that global sustainable fuel use could quadruple by 2035. The report was released ahead of COP30 under Brazil’s UNFCCC presidency, highlighting sustainable fuels’ role in climate mitigation, energy security, and economic development. Focus is on biofuels, biogases, and low-emissions hydrogen as complements to electrification in transport, industry, and power generation. Relevance GS-3: Energy & Environment Renewable energy transition, biofuels, hydrogen economy, energy security. Industrial and transport sector decarbonisation, sustainable development. GS-2: International Relations Multilateral cooperation (IEA, ICAO, IMO) for global climate action. Sustainable Fuels and Global Energy Transition Definition and Types Sustainable fuels: Liquid or gaseous fuels with lower carbon intensity than fossil fuels. Key categories: Biofuels: Ethanol, biodiesel from crops or waste. Biogases: Methane produced from organic matter. Low-emissions hydrogen: Hydrogen produced with minimal greenhouse gas emissions. Current Global Impact Already reduce global oil demand by ~2.5 million barrels per day (2024). Reduce transport fuel import dependence by 5–15 percentage points in importing countries. Liquid biofuels dominate (~4% of global transport energy). Drivers of Sustainable Fuel Adoption Energy security: Reduced dependence on fossil fuel imports. Economic benefits: Rural employment, new income streams, industrial growth. Environmental sustainability: Lower carbon emissions, compliance with GHG performance standards (~80% of biofuel use). Overview Projected Growth to 2035 Fourfold increase in sustainable fuel use if current policies are implemented. Sectoral projections: Road transport: 10% of demand. Aviation: 15% of fuel demand. Shipping: 35% of fuel demand. Industry and power generation uptake expected post-2030, especially low-emissions hydrogen in chemical, steel, and refining sectors. Economic and Investment Implications USD 1.5 trillion cumulative investments by 2035. Creation of ~2 million direct jobs globally. Sustainable fuels can be competitive in some markets (ethanol in Brazil, US) and may slightly increase consumer costs (e.g., 15% aviation fuel blend → 5–7% ticket rise). Technological Innovation Emerging fuel pathways: Alcohol-to-jet fuels Hydrogen-based synthetic fuels Innovation and scale-up expected to reduce costs, making them more competitive with fossil fuels. Policy and Regulatory Actions IEA identifies six priority actions: Region-specific roadmaps aligned with broader energy goals. Predictable demand to attract private investment. Transparent carbon accounting and performance-based incentives. Innovation support to lower costs. Integrated supply chains and infrastructure development. Expanded access to finance, especially in emerging economies. Global Cooperation International collaboration crucial for matching regional strengths with global demand. ICAO and IMO working to promote aviation and maritime sustainable fuel uptake. Aligns with global decarbonisation goals and supports COP30 discussions on climate action. 20 years of RTI Act: The slow unravelling of India’s transparency law Why is it in the News? 20th anniversary: The Right to Information (RTI) Act was enacted on 12 October 2005. Erosion of effectiveness: Activists and Information Commissioners warn that the law has lost its impact due to neglect, bureaucratic apathy, and institutional delays. Rising filings, rising rejections: Record RTI filings (1.75 million in 2023-24) contrast with the highest-ever rejection rates (67,615 applications). Concerns about citizen access: The law, once a symbol of empowerment and accountability, now faces fear and obstacles in implementation. Relevance GS-2: Governance Transparency, accountability, e-governance, citizen empowerment. Institutional challenges in administrative law implementation. GS-3: Social Issues / Public Policy Role of civil society in governance reform. Implementation of rights-based legislation and citizen oversight mechanisms. RTI Act and Its Origins Grassroots beginnings MKSS (Mazdoor Kisan Shakti Sangathan) founded in 1990 by Aruna Roy and colleagues in Rajasthan. Early public hearings (1994–95) exposed corruption in schemes like Jawahar Rozgar Yojana, Apna Gaon Apna Kaam, Indira Awas Yojana. These hearings led to state-level RTI laws in Tamil Nadu (1997), Goa, Rajasthan, Karnataka, Maharashtra, Delhi by 2001. National legislation National Campaign for People’s Right to Information (NCPRI) drafted the national law. Passed by Parliament: 12 May 2005, Presidential assent: 15 June 2005, enforced from 12 October 2005. Constitutional backing Recognised as part of Article 19(1)(a) – freedom of speech and expression. Landmark cases: State of Uttar Pradesh vs Raj Narain – first recognition of citizens’ right to information. SP Gupta vs Union of India – affirmed RTI as integral to free speech. Shri Kulwal vs Jaipur Municipal Corporation – explicitly included under Article 19. Overview Implementation gaps Increasing vacancies in Information Commissions, leading to millions of pending cases. RTI applications often tossed between departments under Section 6(3) without response. Citizens fear police visits or intimidation when filing requests. Erosion of accountability Officials face no consequences for ignoring RTI requests. Public perception: RTI effectiveness has regressed, unlike its early promise of transparency. 3T formula (Timely, Transparent, Trouble-Free) promoted by PM Modi has not materialized in practice. Historical significance vs current reality RTI began as a citizen empowerment tool, exposing scams and corruption effectively until 2014. Activist movements (MKSS, NCPRI) drove major policy and governance reforms, including MGNREGA. Currently, official hostility, procedural hurdles, and lack of political will have hollowed out its power. Impact on civil society Reduced participation by NGOs and social activists in using RTI. Disillusionment among journalists and citizen activists, with many abandoning RTI as a tool. RTI, once a vehicle for accountability, now increasingly symbolizes bureaucratic inertia and citizen frustration.