Explore the Daily Current Affairs 11 November 2025, relevant for UPSC exam. Download quick REVISION NOTES from our telegram channel – https://t.me/CivilMentorIAS.
India – Bhutan relations
GS Paper 2 – International Relations
Context: Prime Minister Narendra Modi visited to Bhutan for the celebration of 70th birthday of Bhutan’s former King Jigme Singye Wangchuck (K4) on November 11, 2025, highlighting his immense contribution to Bhutan’s modernization and his pivotal role in strengthening India-Bhutan relations.
Value added points for Mains:
- Bhutan is central to India’s “Neighbourhood First” and “Act East” policies.
- India is Bhutan’s largest trading partner. India’s trade with Bhutan has more than tripled from $484 million in 2014-15 to $1,615 million in 2022-23, accounting for about 80% of Bhutan’s overall trade.
- Hydropower is the backbone of Bhutan’s economy and a key pillar of India-Bhutan relations. India helps in financing, constructing, and operating hydropower projects. Bhutan exports electricity to India, generating revenue and reducing carbon emissions. For example – Punatsangchhu-II hydropower project.
- In 2024–25, India sent the Sacred Piprahwa Relics of Lord Buddha (believed to be part of the mortal remains of Gautama Buddha) to Bhutan for exposition during the Global Peace Prayer Festival. Thus, symbolizing a moment of shared spiritual heritage and cultural diplomacy.
Mains practice Question:
Q1. India–Bhutan relations are often described as a model of good-neighbourly ties in South Asia. Discuss the key features that make this relationship unique and examine the emerging challenges in the changing regional context. (250 words)
Widening Wealth Gap
Context: Global Inequality Report shows that 83% of countries, representing 90% of the world’s population, experience high income inequality, defined by a Gini coefficient above 0.4.
Key Concepts:
- Gini Coefficient: It is a statistical measure of income or wealth inequality within a nation or a group. It shows how equally or unequally income is distributed among a population. Gini Coefficient:
- 0 = perfect equality;
- 1 = perfect inequality.
2. Lorenz Curve: It is a graphical representation that shows the distribution of income or wealth among individuals or households in an economy. It compares actual income distribution with perfect equality.
Key facts highlighted:
- 85% of the world’s population earns no capital income. In India, 97% of people live in households with less than $100 in annual capital income per person. Capital (wealth) is thus concentrated in the hands of a small elite, reinforcing structural inequality.
- Labour Income Inequality: Between 2019 and 2024: Average CEO pay increased by 50%. Average worker pay rose by less than 1%. The widening wage gap reflects growing corporate concentration and weak labour bargaining power.
Mains practice Question:
Q1. The Global Inequality Report reveals that economic growth in recent decades has been accompanied by rising income and wealth inequality across the world. Discuss the causes and consequences of this trend, and suggest measures to promote inclusive and equitable growth. (250 words)
8th Central Pay Commission
Context: The Central Government has recently constituted the 8th Central Pay Commission (CPC) chaired by Justice Ranjana Prakash Desai.
What is a Pay Commission?
A Pay Commission is an advisory body constituted by the Government of India (by executive order) to review and recommend revisions in salary, allowances, and pension structures for Central Government employees, including defence personnel. The First Pay Commission was set up in 1946. CPC recommendations are not binding, but the government usually accepts them fully or partially.
Major concerns:
- Public vs. Private Pay Structure: Entry-level salaries in government are often higher than private sector equivalents, but Senior and specialist roles, pay much less. The compression ratio (lowest to highest salary) in the 7th CPC was 1:12.5. This rigid structure may deter talented professionals in specialised domains (IT, health, finance).
- Reform Needed: Introduce flexibility and performance-linked pay for specialist posts.
- Intangible Factors Ignored in TOR: Non-monetary aspects such as training, learning, work-life balance, flexible working, and wellness are not part of the TOR.
- These should be considered to improve employee motivation and productivity.
- Fiscal Prudence & Pension Liabilities: The pension bill for 2025–26 is projected at ₹2.76 lakh crore (≈7% of total revenue expenditure). Non-contributory pensions (Old Pension Scheme) impose a large unfunded liability.
- Balancing fiscal responsibility with employee welfare is crucial.
- Broader Representation: CPCs are typically composed of judicial, academic, and bureaucratic members.
- Inclusion of finance, HR, and labour economics experts to bring in diverse and data-driven perspectives.
Mains practice Question:
Q1. “Pay Commissions in India serve not only to revise salaries and pensions but also to enhance efficiency, equity, and administrative reforms in the public sector.” Critically examine this statement in the context of the 8th Central Pay Commission, highlighting the challenges of balancing fiscal prudence, talent retention, and employee welfare. (250 words)