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The Analyst Handout 8th March 2026
Current Affairs

Article
08 Mar 2026

Strategic Importance of Strait of Hormuz

Why in the News?

  • Rising tensions in West Asia and the Israel-Iran conflict have led to a sharp disruption of shipping traffic through the Strait of Hormuz, raising concerns about global energy supply and oil prices.

What’s in Today’s Article?

  • Strait of Hormuz (Location, Strategic Importance, Major Chokepoints, Current Situation, Legal Status, Impact, Govt Response, etc.)

Strait of Hormuz: Location and Strategic Importance

                               Image Caption: Strait of Hormuz

  • The Strait of Hormuz is one of the most strategically important maritime chokepoints in the world.
  • It lies between Iran to the north and Oman and the United Arab Emirates (UAE) to the south, connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea.
  • At its narrowest point, the strait is about 33 kilometres wide, making it a relatively narrow passage for global shipping traffic. Despite its small size, the strait plays a disproportionately large role in global energy trade.
  • A significant share of global oil and gas shipments move through this route. According to estimates, more than 20% of the world’s oil and gas supplies are transported through the Strait of Hormuz, making it one of the most critical energy transit routes in the world.
  • Several major oil-producing countries in the Persian Gulf rely on the strait to export their energy resources to global markets. These include Saudi Arabia, Iran, Iraq, Kuwait and Qatar
  • Because of this, the strait has become a critical component of global trade and geopolitical strategy.

Major Global Maritime Chokepoints

  • The Strait of Hormuz is part of a network of important maritime chokepoints that regulate global trade flows.
  • Some other major chokepoints include:
    • Strait of Malacca - vital for trade between East Asia and Europe.
    • Bab-el-Mandab Strait - located at the entrance to the Red Sea.
    • Suez Canal - connects the Mediterranean Sea with the Red Sea.
    • Panama Canal - connects the Atlantic and Pacific Oceans.
    • Bosphorus and Dardanelles Straits - link the Mediterranean and Black Seas.
  • These chokepoints play a crucial role in determining the efficiency and security of global shipping routes.

Current Situation in the Strait of Hormuz

  • Recent geopolitical tensions in West Asia have severely disrupted commercial traffic through the Strait.
  • Following military attacks involving the United States, Israel, and Iran, ship traffic through the Strait of Hormuz has reportedly fallen by nearly 95%.
  • According to maritime intelligence estimates, around 600 ships are currently stranded in the region.
  • Several vessels have also faced attacks in or near the strait, increasing the risk perception among shipping companies.

Legal Status of Maritime Routes

  • International maritime law generally treats seas and major straits as part of the global commons, meaning that they are open for navigation by ships from all countries.
  • While coastal states control their territorial waters and exclusive economic zones (EEZs), they cannot unilaterally block international shipping lanes such as the Strait of Hormuz.
  • However, security threats and military conflicts can make navigation extremely risky. In such situations, shipping companies may avoid the route due to fears of damage, loss of cargo, or loss of life.
  • As a result, insurance premiums for ships transiting the strait have increased dramatically, rising nearly 10-15 times the normal cost in the current crisis.

Strategic Leverage of the Strait for Iran

  • Iran has historically viewed the Strait of Hormuz as a strategic leverage point in geopolitical conflicts.
  • Although Iranian officials have given mixed signals about whether they intend to close the strait, some Iranian agencies have threatened attacks on ships passing through the route.
  • By threatening to disrupt the strait, Iran seeks to increase global pressure on the United States and Israel to end hostilities.
  • This tactic has been used before. During the Iran-Iraq War in the 1980s, the strait witnessed attacks on commercial shipping vessels.

Impact on India’s Energy Security

  • India is particularly vulnerable to disruptions in the Strait of Hormuz because of its heavy dependence on energy imports.
  • Key concerns include:
    • Oil imports: About 40% of India’s crude oil supplies pass through the strait, meaning disruptions could affect fuel availability and prices.
    • Liquefied Natural Gas (LNG): Qatar supplies around half of India’s LNG imports, which in turn provide about half of India’s natural gas consumption.
  • Natural gas is crucial for Fertiliser production, Power generation, City gas distribution and Industrial energy use.
  • Any interruption could therefore affect multiple sectors of the Indian economy.
    • Cooking gas supply: India imports nearly 60% of its liquefied petroleum gas (LPG), much of which originates from the Gulf region upstream of the strait.
    • A shortage of LPG would have serious implications for household cooking fuel availability.

Government Response and Mitigation Measures

  • Diversifying energy imports: India is exploring alternative LNG and crude oil sources such as the United States, Russia, and Australia.
  • Increasing domestic refining adjustments: Refineries are being encouraged to produce more propane and butane, which are key components of LPG.
  • Diplomatic coordination: India is in discussions with the United States to secure maritime insurance support for ships transiting the region.
  • These measures aim to ensure continuity in energy supplies even if the crisis continues.

Impact on Global Oil Prices

  • Disruptions in the Strait of Hormuz can significantly affect global energy markets.
  • Because a large share of the world’s oil flows through the strait, any conflict or shipping disruption can trigger price spikes.
  • Historically, geopolitical crises in the region have caused dramatic increases in oil prices. For example, during the Russia–Ukraine war, oil prices rose above $125 per barrel.
  • Currently, global oil prices remain below $90 per barrel, but prolonged disruption could lead to higher prices and inflation worldwide.
International Relations

Article
08 Mar 2026

Regulating Social Media Use by Children - India’s Proposed Graded Approach

Why in News?

  • The Union Government is considering a separate legislation to regulate social media usage among children under 18 years, adopting a graded, age-based restriction framework rather than a blanket ban.
  • The proposed law may be introduced during the Monsoon Session of Parliament after stakeholder consultations.
  • The move reflects rising concerns globally about digital addiction, harmful online content, and mental health impacts on children, while also balancing digital rights and access to information.

What’s in Today’s Article?

  • Government’s Proposed Approach
  • Global Context - Rising Regulation of Children’s Social Media Use
  • Policy Support
  • Rationale Behind Regulation
  • Concerns and Challenges
  • Way Forward
  • Conclusion

Government’s Proposed Approach:

  • Graded age-based restrictions:
    • The government is examining a tiered regulatory structure for different age groups -
      • 8–12 years: Strictest restrictions with parental supervision and limited usage.
      • 12–16 years: Moderate restrictions with controlled access.
      • 16–18 years: Relatively relaxed restrictions but still monitored.
    • The aim is to balance child safety with digital exposure, acknowledging that today’s children are more digitally aware than earlier generations.
  • Possible regulatory measures:
    • Several mechanisms are being discussed. For example,
      • Time-based restrictions: Limiting daily usage hours.
      • Login restrictions: Preventing social media access during evening or night hours.
      • Parental consent: For creating accounts.
      • Platform accountability: Social media companies may need to implement safeguards for minors.
    • These proposals draw inspiration from global models such as China’s one-hour-per-day limit for online gaming for minors.

Global Context - Rising Regulation of Children’s Social Media Use:

  • Concerns regarding children’s online safety have triggered regulatory initiatives worldwide. For instance,
    • Australia: Introduced landmark legislation restricting children’s social media use.
    • Indonesia: Plans to ban Instagram and other “high-risk” platforms for users under 16.
    • France: President Emmanuel Macron proposed banning social media for children below 15.
    • European countries: Spain and others are considering similar restrictions.
  • These initiatives highlight growing concerns about AI-driven harmful content, cyberbullying, and digital addiction.

Policy Support:

  • The Economic Survey 2025–26 recommended -
    • Age-based limits on social media use for children.
    • Restrictions on targeted digital advertisements for minors.
    • Promotion of simpler devices such as basic phones, and education-focused tablets.
  • The Survey also suggested content filters and usage limits to protect children from violent, sexual, gambling-related, or addictive online content.

Rationale Behind Regulation:

  • Mental health concerns: Excessive social media use can lead to digital addiction, anxiety and depression, sleep disruption, and cyberbullying exposure.
  • Exposure to harmful content: Algorithms and AI-generated content have increased the circulation of violent material, sexual content, gambling promotions, and misinformation.
  • Child safety as a policy priority: Government sources emphasise that “citizen safety” will be the guiding principle in designing the law.

Concerns and Challenges:

  • Operational challenges:
    • Tech companies warn about difficulties in implementing restrictions.
    • For example, geo-restrictions at the state level are difficult due to nationwide connectivity.
    • Different state-level rules (e.g., Karnataka vs Andhra Pradesh) may create compliance challenges.
  • Definitional issues: States may define “child” differently. For example, Andhra Pradesh ban for children below 13, Karnataka ban for those under 16. Such inconsistencies could create regulatory fragmentation.
  • Risk of circumvention: Industry representatives warn that bans may push teenagers to unregulated platforms, and logged-out browsing, bypassing safety protections.
  • Digital rights and freedom of expression: Digital rights groups argue that blanket bans may violate children’s rights to information, expression, and participation in digital spaces.
  • Digital gender divide: The Internet Freedom Foundation (IFF) cautions that restrictions framed as “protection” may reinforce patriarchal control over girls’ internet access, widening the digital gender divide, particularly in rural areas.

Way Forward:

  • Balanced regulatory framework: Instead of outright bans, India could adopt proportionate regulations combining age verification systems, content moderation requirements, and platform accountability.
  • Strengthening digital literacy: Education systems should integrate digital safety education, awareness about misinformation, cyberbullying, and online risks.
  • Parental and institutional involvement: Policies should emphasise parental supervision, and School-level digital awareness programs.
  • Platform design reforms: Regulators could mandate child-safe algorithms, reduced addictive design features, stronger privacy and data protection mechanisms.
  • Uniform national framework: A central law would ensure consistency across states and reduce compliance complexities.

Conclusion:

  • India is moving toward a nuanced regulatory framework for children’s social media usage, prioritising safety while preserving digital access and freedoms.
  • A graded, age-based system combined with digital literacy, platform accountability, and parental oversight may provide a balanced solution.
  • Such an approach could help mitigate risks like digital addiction, harmful content exposure, and mental health issues, while ensuring that children remain empowered participants in the digital ecosystem.
Polity & Governance

Article
08 Mar 2026

EPFO Allows Auto-Settlement of Small Inoperative PF Accounts

Why in news?

The Employees’ Provident Fund Organisation (EPFO) has about 31.83 lakh inoperative accounts, many of which have remained inactive for years. Around 41% have been inactive for 5–10 years, while 22% have been idle for more than 20 years.

To address this issue, the EPFO Central Board of Trustees, in its 239th meeting, approved auto-settlement of inoperative accounts with unclaimed balances of ₹1,000 or less, transferring the amount directly to the members’ registered bank accounts.

What’s in Today’s Article?

  • EPF and EPFO: Meaning and Functions
  • Inoperative EPF Accounts: Meaning and Status
  • Auto-Settlement for Inoperative Accounts
  • Status of Inoperative EPF Accounts in India
  • Pilot Studies and Future Scope

EPF and EPFO: Meaning and Functions

  • The Employees’ Provident Fund (EPF) is a government-backed retirement savings scheme.
  • In this scheme, both the employer and the employee contribute a fixed percentage of the employee’s basic salary to the EPF account.
  • The contributions earn interest over time, helping employees build a retirement corpus.
  • The accumulated amount, including both contributions and interest, can be withdrawn at retirement or under specific conditions.
  • Employees’ Provident Fund Organisation (EPFO)
    • EPFO is a statutory body established by the Government of India to administer provident fund schemes. It is managed by the Central Board of Trustees (CBT).
    • The CBT administers three main schemes:
      • Employees’ Provident Fund Scheme, 1952
      • Employees’ Pension Scheme (EPS), 1995
      • Employees’ Deposit Linked Insurance (EDLI) Scheme, 1976
    • EPFO supports the board’s functions through a network of 147 offices across India.

Inoperative EPF Accounts: Meaning and Status

  • Inoperative EPF accounts are those provident fund accounts in which no interest is credited after a specified period. These typically belong to members who have retired after the age of 55.
  • An EPF account becomes inoperative if no contribution is received for three consecutive years after the member turns 55 or retires, whichever is later.
  • However, if the member is below 55 years and no contribution is made, the account continues to earn interest until the age of 58.
  • As of March 31, 2025, there were 31.83 lakh inoperative accounts with deposits of about ₹10,181 crore, excluding accounts of international workers.

Auto-Settlement for Inoperative Accounts

  • The EPFO Central Board of Trustees approved a pilot project for auto-settlement of inoperative EPF accounts with unclaimed balances of ₹1,000 or less.
  • In the first phase, over 1.33 lakh accounts holding about ₹5.68 crore will be covered.
  • Under this pilot, the money will be directly credited to members’ Aadhaar-seeded and EPFO-linked bank accounts, without requiring fresh claims or documents.
  • If successful, the scheme may later be extended to accounts with balances above ₹1,000.

Status of Inoperative EPF Accounts in India

  • The EPFO covers 27.05 lakh establishments and 34.63 crore members. Out of these, 7.98 lakh establishments actively contribute, covering 7.83 crore contributing members. EPFO manages a total corpus of over ₹28.34 lakh crore.
  • Distribution of Inoperative Accounts by Duration
    • EPFO has 31.83 lakh inoperative EPF accounts.
      • 12.90 lakh accounts (40.52%) have been inactive for 5–10 years, holding about ₹3,402.25 crore.
      • 6.93 lakh accounts (21.75%) have been idle for over 20 years, with ₹1,018.20 crore.
      • 4.42 lakh accounts (18.12%) have been inactive for 3–5 years, containing ₹2,336.32 crore.
  • Distribution by Account Balance
    • Most inoperative accounts have small balances.
      • 294.3 lakh accounts with balances up to ₹50,000 together hold ₹2,121 crore.
      • However, only 13,000 accounts with balances above ₹10 lakh contain ₹4,553.57 crore, indicating significant funds locked in a small number of accounts.
  • KYC Verification and Auto-Settlement Eligibility
    • EPFO conducted KYC analysis to identify accounts eligible for auto-settlement, which will initially apply to Aadhaar-seeded accounts.
      • 1.33 lakh Aadhaar-verified accounts with balances up to ₹1,000 hold about ₹5.68 crore.
      • 0.23 lakh Aadhaar and bank-verified accounts hold around ₹1.09 crore.

Pilot Studies and Future Scope

  • A pilot validation study is being conducted in 10 regional offices, focusing on accounts with balances up to ₹50,000.
  • For accounts with balances above ₹1,001, there are:
    • 6.8 lakh Aadhaar-verified accounts holding ₹5,212.42 crore, and
    • 2.31 lakh Aadhaar and bank-verified accounts with ₹3,275.35 crore.
  • These accounts may be considered for future phases of the auto-settlement initiative.
Economics

Article
08 Mar 2026

State of India’s Environment: Key Trends and Concerns

Why in news?

The Centre for Science and Environment (CSE) released the ‘State of India’s Environment 2026’ report. Published annually since 1982, the report provides an overview of major environmental challenges in India, including floods, extreme weather events, wildlife behaviour changes, and air pollution.

It also examines global climate change trends and their impact on India. CSE experts warned that the global temperature rise may exceed the 1.5°C threshold, indicating that the world is nearing a critical climate tipping point.

What’s in Today’s Article?

  • Rising Extreme Weather Events in India
  • Increasing Flood Risks in a Warming Climate
  • Changing Behaviour of Tigers in India
  • Air Pollution Monitoring in India: Gaps and Concerns

Rising Extreme Weather Events in India

  • The report highlights that 2025 saw the highest frequency and impact of extreme weather events in India in the past four years.
  • These events included heatwaves, cold waves, heavy rainfall, and floods.
  • Data from January 1 to November 30, 2025 shows that extreme weather events occurred on 99% of the days.
  • These events resulted in 4,419 deaths and affected 17.41 million hectares of crop area.
  • Comparison with Previous Years
    • The frequency and impact of extreme weather events have increased steadily:
      • 2024: Events on 88% of days, causing 3,393 deaths and damaging 3.61 million hectares of crops.
      • 2023: Events on 89% of days, causing 3,208 deaths and affecting 2.09 million hectares of crops.
  • States Most Affected
    • Some states experienced a particularly high number of extreme weather days:
      • Himachal Pradesh: 267 days
      • Kerala: 173 days
      • Madhya Pradesh: 162 days
  • Need for Climate Action
    • The report warns that these trends indicate growing ecological stress and climate risks.
    • It stresses the need for strong climate action, better planning, and resilient development strategies to prevent such disasters from becoming the norm.

Increasing Flood Risks in a Warming Climate

  • The report states that climate change is increasing the likelihood of widespread and intense floods in India.
  • A warming climate is already influencing river systems, urban infrastructure, and human settlements.
  • It stresses that India should shift its approach from post-disaster relief to pre-disaster resilience.
  • Integrating climate science into planning and infrastructure design, such as culverts and land use near rivers, is essential for reducing flood risks.
  • Role of Nature-Based Solutions
    • The report highlights the importance of nature-based solutions to manage floods, including:
      • Restoration of wetlands
      • Reconnecting rivers with floodplains
      • Groundwater recharge and rainwater harvesting
      • Restoration and construction of lakes
    • These measures can improve natural water management and climate resilience.

Changing Behaviour of Tigers in India

  • The report highlights an increase in tiger attacks on humans.
  • Between January and June 2025, at least 43 people were killed near tiger reserves, with some cases involving tigers consuming parts of their victims.
    • In the same period in 2024, 44 people were killed in tiger attacks.
  • Reasons Behind Tiger Attacks - Tigers rarely become habitual man-eaters. However, attacks on humans may increase when tigers grow old, suffer injuries, or face a decline in natural prey, making it difficult for them to hunt in the wild.
  • Human–Tiger Proximity - Experts suggest that the growing interaction between humans and tiger habitats is a major factor behind the rising attacks. Increasing human settlements near forests are bringing people closer to tiger territories.
  • Habitat Pressure and Population Growth
    • The tiger population in India is increasing, while many reserves have reached saturation levels.
    • Around 40% of tiger territory in 20 states overlaps with areas inhabited by nearly 60 million people.
    • As a result, tigers are moving outside protected areas, and factors such as habitat loss, overcrowding, and human activities near forests are contributing to behavioural changes in tigers.

Air Pollution Monitoring in India: Gaps and Concerns

  • According to the report, only about 15% of India’s population (around 200 million people) live within 10 km of a continuous air quality monitoring station.
  • The remaining 85% of the population—over 1.2 billion people—live outside the measurable monitoring range.
  • Concentration of Monitoring in Major Cities
    • Air quality monitoring is largely concentrated in major cities, state capitals, and metropolitan regions.
    • As a result, many districts, industrial belts, and rapidly growing peri-urban areas remain outside the monitoring network, creating an incomplete picture of air pollution.
  • Environmental Governance and Inequality
    • The report highlights that the lack of monitoring is not merely a data gap but reflects structural inequality in environmental governance.
    • Many smaller towns with significant pollution from industries and transport lack real-time air quality data, leaving large regions without proper pollution assessment.
Environment & Ecology

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08 Mar 2026

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08 Mar 2026

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GS Test - 8 (V7708)

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