¯

Oct. 31, 2025

Mains Article
31 Oct 2025

Strengthening India’s Statistical Ecosystem

Why in the News?

  • The Ministry of Statistics and Programme Implementation (MoSPI) has announced plans to use data from the Annual Survey of Unincorporated Sector Enterprises and the Periodic Labour Force Survey to develop a District Domestic Product (DDP) framework for more accurate, district-level economic estimation.

What’s in Today’s Article?

  • Statistical Ecosystem (ASUSE & PLFS Surveys, Purpose & Methodology for DDP, Significance of DDP, Challenges & Way Forward)

MoSPI to Use ASUSE and PLFS Surveys for Accurate District Domestic Product Estimation

  • The MoSPI  has announced a significant step toward improving India’s statistical architecture by integrating two major datasets to calculate the District Domestic Product:
    • The Annual Survey of Unincorporated Sector Enterprises (ASUSE) and
    • The Periodic Labour Force Survey (PLFS)
  • This initiative aims to provide more accurate, district-level economic data and empower states to make evidence-based policy decisions.

Context: Strengthening India’s Statistical Ecosystem

  • At present, India’s national and state-level GDP data often fail to capture regional variations within districts.
  • Most District Domestic Product (DDP) estimates rely on top-down allocation methods, proportionately distributing state GDP based on outdated demographic indicators like population.
  • This approach has long been criticised by experts who highlighted that the current method results in “near-identical growth rates for districts,” thus masking true inter-district disparities.
  • Recognising this data gap, MoSPI announced that beginning January 2025, the ministry will work with state governments to introduce a bottom-up estimation model using detailed datasets from ASUSE and PLFS.

About ASUSE and PLFS

  • Annual Survey of Unincorporated Sector Enterprises (ASUSE)
    • ASUSE captures detailed data on India’s vast unincorporated non-agricultural sector, covering manufacturing, trade, and services enterprises, including households, micro, and small units.
    • This survey provides insights into the economic and operational characteristics of establishments that often remain outside the formal sector’s purview.
    • Earlier released annually, ASUSE now provides quarterly data for enhanced frequency and granularity. It serves as a critical input for understanding local enterprise activity, investment, and value addition patterns.
  • Periodic Labour Force Survey (PLFS)
    • PLFS is conducted by the National Statistical Office (NSO) to measure employment, unemployment, and labor market participation across rural and urban areas.
    • The survey is now conducted monthly, capturing dynamic trends in workforce participation, earnings, and occupational structures.
    • By combining ASUSE (enterprise data) and PLFS (labour data), the government aims to create a comprehensive database of district-level economic activities, bridging the enterprise and employment dimensions of local economies.

Purpose and Methodology for Estimating DDP

  • The integration of ASUSE and PLFS will allow policymakers to capture real economic activity at the district level rather than relying on extrapolated state averages.
  • Key features of the initiative include:
    • Bottom-up estimation: District-level data will be aggregated upward to form state and national accounts, reversing the current top-down allocation model.
    • Dual-sector coverage: The approach accounts for both enterprise activity (ASUSE) and labour participation (PLFS), ensuring holistic measurement of economic output.
    • Policy collaboration: MoSPI is working closely with state governments to align data collection frameworks with local administrative and planning needs.
    • Inclusion of informal sector: Since unincorporated enterprises and household-level activities form a large share of India’s economy, the new methodology ensures that informal sector output is adequately represented.

Complementary Statistical Initiatives

  • The effort to refine DDP estimation is part of MoSPI’s broader agenda to modernise India’s statistical system. Several related initiatives are underway:
    • Annual Survey of Service Sector Enterprises (ASSSE): To be launched in January 2026, this will capture the dynamics of incorporated services such as IT, financial services, and logistics.
    • National Household Income Survey (NHIS): Scheduled for February 2026, it aims to measure income distribution, wealth, and inequality, complementing consumption and employment data.
    • Expanded data accessibility: MoSPI has identified over 250 datasets for improved public access, including data from GST, E-Vahan, and trade statistics, to enrich national accounts and research capacity.

Significance of District Domestic Product (DDP)

  • The DDP represents the gross value added (GVA) within a district’s geographical boundaries.
  • It serves as a microeconomic counterpart to the state’s Gross State Domestic Product (GSDP).
  • An accurate DDP framework can enable:
    • Targeted policy interventions by identifying lagging districts.
    • Evidence-based fiscal planning at local levels.
    • Better assessment of regional inequality and employment trends.
    • Alignment with decentralised planning under India’s federal structure.
  • The move also aligns with the government’s vision of Viksit Bharat @2047, where data-driven governance is seen as central to inclusive development.

Challenges and the Way Forward

  • While the initiative is promising, implementing district-level GDP estimation faces several challenges:
    • Data reliability: Unincorporated sector data can be difficult to capture consistently.
    • Coordination with states: States vary in statistical capacity and infrastructure.
    • Avoiding double-counting: Integrating enterprise and labour datasets requires precise harmonisation.
  • Nonetheless, experts consider this reform a crucial step toward improving the granularity, reliability, and timeliness of economic data in India.
  • With states like Maharashtra, Tamil Nadu, and Karnataka already experimenting with DDP frameworks, MoSPI’s bottom-up model may soon standardise district-level measurement across the country.

 

Economics

Mains Article
31 Oct 2025

MoSPI Proposes Overhaul in CPI Housing Index

Why in News?

  • The Ministry of Statistics and Programme Implementation (MoSPI) has proposed key methodological reforms in the Consumer Price Index (CPI), specifically in the compilation of the housing index.
  • These reforms aim to make inflation measurement more accurate, representative, and transparent, reflecting post-pandemic changes in rental markets and including rural housing data for the first time.

What’s in Today’s Article?

  • Background - CPI and Housing Index
  • Proposed Methodological Changes
  • Inclusion of Rural Sector through HCES 2023-24
  • Transparency and Consultation Process
  • Way Forward
  • Conclusion

Background - CPI and Housing Index:

  • The Consumer Price Index (CPI) is India’s main measure of retail inflation.
  • The MoSPI is revising the CPI base year to 2024 from 2012, with item weights based on the 2023-24 Household Consumption Expenditure Survey (HCES).
  • Currently, housing data is collected biannually and only for urban areas.
  • The weight of housing in the CPI basket is 21.67% for urban areas and 10.07% at the all-India level.
  • According to data released last month, housing inflation accelerated to 3.98% in September from 3.09% in August. Overall, India's retail inflation eased to 1.5% from 2.1% over the same period.
  • Economists have long criticized the inclusion of employer-provided dwellings and use of House Rent Allowance (HRA) as a rent proxy.

Proposed Methodological Changes:

  • Monthly rent data collection:
    • Rent data will be collected monthly instead of every six months.
    • Coverage expanded to both rural and urban areas, marking a major shift.
    • The dwelling type weight will be based on Census 2011.
  • Exclusion of employer-provided housing: Government and employer-provided accommodations will be excluded to avoid distortions since they don’t reflect market transactions.
  • Expanded sample and IMF guidance:
    • Rent data to be collected from all selected dwellings every month (earlier one-sixth sample).
    • International Monetary Fund (IMF) technical experts recommended refining India’s panel approach to improve representativeness.
    • The revised formula ensures “like-for-like” comparison and avoids downward bias in rent index computation.

Inclusion of Rural Sector through HCES 2023-24:

  • The HCES 2023-24 has, for the first time, captured rural house rent and imputed rent for owner-occupied dwellings.
  • This enables compilation of a rural housing index, absent in the HCES 2011-12 series.
  • The new series will therefore represent comprehensive national housing dynamics.

Transparency and Consultation Process:

  • MoSPI released the third discussion paper as part of its base revision exercise of the CPI. Previous papers focused on ‘Treatment of Free Public Distribution System (PDS) Items in CPI Compilation’.
  • The Ministry plans to hold data conferences and stakeholder consultations to enhance transparency and inclusiveness.
  • Feedback on the housing index changes has been invited till November 20, 2025.

Way Forward:

  • The proposed CPI revision will align India’s methodology with global statistical best practices.
  • Continuous data collection from rural and urban areas will improve the robustness of inflation measurement.
  • Exclusion of non-market housing will enhance accuracy in assessing true inflationary pressures.
  • The exercise will also help policy-makers, RBI, and households better understand the impact of housing costs on inflation and real income.

Conclusion:

  • The overhaul of the housing index methodology marks a significant reform in India’s CPI framework.
  • By integrating monthly, all-India rent data and removing distortionary elements, MoSPI aims to create a more representative and credible inflation index.
  • This reform is crucial in the context of post-pandemic rental surges, rural-urban housing disparity, and the need for data-driven economic policymaking in a rapidly evolving economy.
Economics

Mains Article
31 Oct 2025

AI’s Rewriting of the Rules of Education

Context

  • India stands on the threshold of a paradigm shift in education, poised to introduce Artificial Intelligence (AI) into classrooms as early as Class 3 starting in 2026–27.
  • This transformative move, aligned with the National Education Policy 2020, reflects a bold ambition: to prepare future generations for an AI-powered global economy.
  • Also, it is important to ensure the nation remains competitive in an era defined by automation and digital innovation.

AI as a Catalyst for Educational Reform

  • The integration of AI into the K-12 system is not merely a technological upgrade, it represents a reimagining of how learning occurs.
  • AI-driven platforms offer personalised learning pathways, adjusting instruction based on a student’s pace, strengths, and struggles.
  • Such adaptive systems can democratise education by supporting learners with diverse needs, addressing regional language barriers, and creating more inclusive environments, a particularly critical objective in India’s vast socio-educational landscape.

Teachers at the Core of Transformation

  • However, technology alone cannot revolutionise education. With over one crore teachers nationwide, the success of this initiative hinges on capacity-building and continuous professional development.
  • Pilot programmes have already trained thousands of educators, equipping them with AI tools for lesson planning and resource design.
  • Yet, the magnitude of upskilling required raises crucial questions: Are teachers adequately prepared to transition from traditional instructors to AI-guided mentors?
  • The answer will determine the pace and depth of this reform. 

Balancing Technology with Human Insight

  • Despite the power of AI, human educators remain irreplaceable.
  • AI can automate administrative tasks like grading and attendance, offering teachers more time for creative instruction, emotional support, and personalised interaction, areas where machines cannot replicate human empathy and intuition.
  • In this hybrid model, teachers evolve into facilitators of higher-order thinking, supported rather than overshadowed by technology.

The Future Workforce: Promise and Challenge

  • The integration of AI into education also reflects broader shifts in labour markets.
  • While projections suggest millions of jobs may be disrupted, AI could generate even more employment opportunities by 2030.
  • Equipping students with AI literacy from early grades ensures they are prepared not only to navigate but to thrive in a rapidly evolving digital economy.
  • Yet, this requires not only technical skills but resilience, creativity, and ethical awareness.

Bridging the Inequality Gap

  • One of the most compelling promises of AI in education is its potential to expand access and equity.
  • From generative AI tutors to multilingual learning tools, technology could help close achievement gaps and extend quality education beyond urban hubs.
  • However, this promise is contingent upon addressing digital infrastructure disparities and ensuring affordability, without which the AI revolution risks widening existing inequalities instead of reducing them.

Conclusion

  • India’s initiative to embed AI into school education marks a watershed moment for its learning ecosystem.
  • It embodies aspiration, innovation, and foresight, yet also raises critical questions about readiness, inclusivity, and ethical implementation.
  • The future of India’s education system will depend on thoughtful policy, teacher empowerment, and equitable access.
  • As the nation navigates this transformation, one truth stands clear: AI is not merely a tool but a catalyst, reshaping the very contours of learning and unlocking possibilities for a generation preparing to shape the AI-driven world.
Editorial Analysis

Mains Article
31 Oct 2025

Takeaways From Xi-Trump Meeting

Why in news?

At the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, US President Donald Trump and Chinese President Xi Jinping met for the first time since Trump’s return to office.

Trump announced that China agreed to maintain global exports of rare earth minerals under a one-year deal, calling it a “worldwide solution.” He said this would remove supply worries for industries dependent on these materials.

Additionally, the US will reduce tariffs on China—cutting the penalty on fentanyl-related trade from 20% to 10%, bringing the overall tariff rate down from 57% to 47%.

What’s in Today’s Article?

  • Key Highlights of the Xi-Trump Meeting
  • Implication for India in the G-2 world

Key Highlights of the Xi-Trump Meeting

  • The meeting was its carefully managed optics. Unlike his usual confrontational style, President Trump adopted a polite and diplomatic tone, showing awareness of China’s global influence.
  • Interestingly, China did not immediately release an official account of the meeting, highlighting its cautious approach.
  • Trump’s Recognition of China’s Power
    • Trump referred to the meeting as “G-2”, equating the US–China relationship to elite global groupings like the G-7 and G-20.
    • This was seen as a symbolic recognition of China’s global power, something no previous US president had done publicly — a clear diplomatic win for Beijing.
  • Controlled Diplomacy Over Confrontation
    • Both leaders showed mutual deference and restraint, a departure from Trump’s usual brashness.
    • Their conduct reflected a shared understanding of the delicate balance between the world’s two largest economies and the global impact of their relationship.
  • Deal on Rare Earth Exports
    • The key takeaway from the Trump–Xi meeting was about rare earth exports.
    • President Trump announced that China had agreed to continue exporting rare earth minerals for one year — a relief for global industries that depend on them.
    • In return for China’s cooperation, Trump cut tariffs on Chinese goods by 10%, lowering total US tariffs from 57% to 47%.
    • This move was meant to ease pressure on Chinese businesses and encourage Beijing to compromise.
    • While the agreement eased tensions, it only postponed the core issue — China still dominates the rare earth supply chain.
    • The deal gives the US and its allies more time to diversify sources and reduce dependency on China.

Implication for India in the G-2 world

  • In his first term (2017), Trump took a hard stance on China, calling it a strategic rival, strengthening alliances, and supporting frameworks like the Quad and Indo-Pacific strategy, where India played a central role.
  • Now, in his second term, Trump’s approach is commercial, focusing on trade deals and domestic investments, even pressuring allies like Japan and South Korea to invest heavily in the US.
  • After the meeting, US President left behind a sense of uncertainty about America’s future with China — the world’s two largest powers.
  • Calling his meeting with Xi Jinping a “G-2” summit, Trump sparked concern among allies that the US is leaning toward a China-first, business-focused policy.
  • Implications for India and the Region
    • For India, the message was clear: the US focus remains on managing China.
    • The question now is whether Trump prefers working with allies like India, Japan, and Australia (under the Quad) or handling China alone.
    • For India and other Asian nations, this marks a new phase in US–China relations — a mix of competition and cooperation.
  • Trade Disadvantage for India
    • After Trump reduced tariffs on China to 47%, India now has the highest tariff rate at 50%, putting it at a trade disadvantage.
    • This makes a US–India trade deal more urgent.
    • Until then, a US rival (China) enjoys better trade terms than a US partner (India).
  • India’s Strategic Path Forward
    • As Trump’s trade-driven strategy reshapes the region, India must rethink its assumptions about both American intent and Chinese ambition, while identifying space for its own strategic autonomy.
    • For India, the challenge is to navigate this shifting US–China balance with agility.
    • Delhi must:
      • Engage the US where interests align,
      • Explore economic opportunities with China where possible, and
      • Deepen partnerships with Asia and Europe to strengthen its independent position.
International Relations

Mains Article
31 Oct 2025

How US Secondary Sanctions Could Push Indian Refiners Away from Russian Oil?

Why in news?

India has consistently opposed unilateral economic sanctions, but has often complied with US-imposed restrictions to avoid fallout.

In the past, Indian refiners stopped importing oil from Iran and Venezuela after the US sanctioned those countries. Now, with new US sanctions on Russian oil giants Rosneft and Lukoil, a similar situation looms.

India avoids dealing with sanctioned entities mainly due to the risk of US secondary sanctions, which could penalize third-party countries or companies doing business with the targeted nations.

What’s in Today’s Article?

  • Understanding Secondary Sanctions
  • Why Countries Fear US Secondary Sanctions
  • Why US Sanctions Matter for India

Understanding Secondary Sanctions

  • Secondary sanctions extend beyond the direct targets of US restrictions.
  • Primary sanctions stop American citizens and companies from dealing with blacklisted entities (like Rosneft and Lukoil).
  • On the other hand, secondary sanctions aim to discourage foreign countries and companies — over whom the US has no legal authority — from engaging with them.
  • These measures act as “anti-circumvention tools”, forcing other nations to comply indirectly by threatening penalties.
  • Because they apply outside US borders, secondary sanctions are often seen as extraterritorial and questionable under international law.

Why Countries Fear US Secondary Sanctions?

  • The US dollar’s dominance in global trade and the central role of the American financial system make US sanctions highly influential worldwide.
  • Any company or country engaged in international trade needs access to US markets and banks — losing that access can cripple business.
  • Secondary sanctions don’t always impose fines; instead, they block foreign entities from the US financial system if they act against Washington’s foreign policy interests.
  • Because of this, India’s refiners and banks are expected to cut back on Russian oil imports, fearing penalties.
  • The US Treasury’s warning that secondary sanctions could hit buyers of Russian crude has already had an impact — experts predict an immediate drop in India’s Russian oil imports, which currently account for over 35% of total imports.

Why US Sanctions Matter for India?

  • US sanctions carry real weight because they make banks, insurers, and investors cautious, cutting off access to funding and financial systems.
  • Most Indian refiners — including Reliance Industries (RIL) and public sector companies — rely heavily on the US market, banking network, and technology partners. Losing that access would seriously impact their global operations.
  • India’s Heavy Exposure to the US
    • RIL, which buys nearly half of India’s Russian oil, has subsidiaries, partnerships, and investments in the US with firms like Google, Meta, and Intel.
    • Public sector refiners also depend on dollar-based payments and the American banking system to buy crude oil, pay shippers, and insurers.
    • Any disruption in US dollar transactions could severely hurt India’s refining sector.
  • Impact on Russian Oil Imports
    • To avoid secondary sanctions, Indian refiners and banks are expected to act with extreme caution, likely leading to a sharp drop in Russian oil imports.
    • Government-owned refiners are already reviewing compliance risks, and RIL has said it will fully follow government guidance.
    • Some refiners may try to buy Russian oil through third-party traders not directly targeted by sanctions.
    • However, experts warn this loophole may not last, as the US could extend sanctions to these intermediaries if it wants to curb Russian oil flows more effectively.
  • India’s Official Stand
    • The Indian government has reiterated that it will buy oil from wherever it gets the best price, as long as the oil itself is not under sanctions.
    • However, the new US restrictions on Rosneft and Lukoil — which supply over two-thirds of India’s Russian oil — could seriously limit India’s access to cheap Russian crude in the near term.
International Relations

Oct. 30, 2025

Mains Article
30 Oct 2025

Global Investors Reimagine India’s Financial Sector

Why in News?

  • India’s financial landscape is undergoing a major transformation as global giants — from Emirates NBD, Blackstone, Zurich Insurance, SMBC, Abu Dhabi’s IHC to Bain Capital — are acquiring significant stakes in Indian banks, insurers, and NBFCs.
  • This marks a new phase of foreign capital infusion into a sector once considered over-regulated and closed, highlighting a strategic shift amid capital liberalisation.

What’s in Today’s Article?

  • Evolution of India’s Financial Sector
  • Recent Big-Ticket Investments
  • Why Global Giants Are Investing
  • Regulatory Approach and Market Valuation
  • Post-Crisis Sector Cleanup
  • Opportunities and Strategic Advantages
  • Risks and Concerns
  • Way Forward
  • Conclusion

Evolution of India’s Financial Sector:

  • From protectionism to liberalisation:
    • Historically, India’s financial sector was tightly regulated with limited foreign participation.
    • Gradual policy reforms by the RBI and the government have allowed greater foreign ownership -
      • Up to 100% in insurance companies.
      • Up to 74% in private banks (with approval).
  • Examples:
    • Fairfax (Canada) was given special approval to hold a majority stake in CSB Bank for five years — a deviation from the 40% foreign cap, considering it a strategic revival investment.
    • Foreign portfolio investors (FPIs) hold 48.39% stake in HDFC Bank, the second largest bank in the country.

Recent Big-Ticket Investments:

  • Blackstone Inc, the world’s largest alternative asset manager, has acquired a minority stake of 9.99% in Federal Bank Ltd for Rs 6,196 crore.
  • Bain Capital will be investing Rs 4,385 crore to acquire an 18.0% stake on a fully diluted basis via preferential allotment of equity and warrants in Manappuram Finance.
  • Dubai-based Emirates NBD announced a $3 billion acquisition of a 60% stake in RBL Bank, making it one of the largest foreign takeovers in India’s financial sector.
  • Japan’s SMBC acquired about 25% in Yes Bank, investing over $1.6 billion.
  • Zurich Insurance bought a 70% majority stake in Kotak General Insurance for $670 million.
  • Abu Dhabi’s International Holding Company also entered the fray with a nearly $1 billion investment in Sammaan Capital (formerly Indiabulls Housing), an NBFC.
  • These deals mark the largest wave of foreign takeovers in India’s financial history.

Why Global Giants Are Investing?

  • Robust growth fundamentals:
    • India’s economy is growing at 6.8% (RBI estimate).
    • The banking sector generated $46 billion net income (2024) with 31% YoY growth — higher than global average (McKinsey report).
    • Credit growth is driven by small businesses, retail and housing sectors.
  • Structural strengths:
    • Low corporate leverage and focus on secured retail lending.
    • India presents a vast, untapped and rapidly expanding financial market with over 400 million underbanked population, and a vast informal credit system.
    • Digital infrastructure (UPI, Aadhaar, Jan Dhan) enables penetration and cost-efficient service delivery.
  • Global context:
    • Stagnation in developed markets (US, Europe).
    • China’s tightening regulations and geopolitical risks have diverted capital toward India.
    • India offers scale, political stability, demographic advantage, and credible regulation.

Regulatory Approach and Market Valuation:

  • The RBI maintains a “positive but cautious” stance, ensuring fit-and-proper ownership and domestic control.
  • Despite high performance, Indian banks remain undervalued — indicating market scepticism about long-term sustainability.
  • The measured liberalisation of ownership ensures capital inflow while keeping regulatory sovereignty intact.

Post-Crisis Sector Cleanup:

  • Past decade challenges: IL&FS and DHFL collapse, Yes Bank rescue, and NBFC liquidity crisis.
  • Reforms implemented:
    • Insolvency and Bankruptcy Code (IBC) for resolution.
    • RBI’s supervisory tightening and bad-loan cleanup.
  • Result: Mid-sized banks and NBFCs have become stable and attractive acquisition targets.

Opportunities and Strategic Advantages:

  • Global investors gain immediate access to licenses, branch networks, and customer bases — saving years of setup.
  • For India, it brings foreign capital, innovation, and best practices in risk management and governance.
  • Aids India’s march toward becoming a $7 trillion economy by early 2030.

Risks and Concerns:

  • Financial sovereignty: Majority foreign ownership could shift strategic control offshore. Policy alignment during crises may not match domestic priorities.
  • Exposure to global shocks:
    • Rising global interest rates or liquidity tightening could lead to capital withdrawal, straining domestic credit flows.
    • Lehman Brothers collapse (2008) serves as a reminder of global contagion risk.
  • Competitive distortions: Foreign-owned entities may access cheaper global capital, disadvantaging domestic banks under tighter norms.
  • Need for regulatory clarity: Larger and complex deals call for clearer frameworks on foreign control thresholds and compliance protocols.

Way Forward:

  • Maintain calibrated liberalisation — attract capital while preserving regulatory autonomy.
  • Develop a comprehensive framework for foreign ownership limits and voting rights.
  • Strengthen macroprudential oversight to insulate from global volatility.
  • Encourage domestic capital formation through sovereign and retail participation.
  • Promote financial inclusion to reduce reliance on foreign investors in credit delivery.

Conclusion:

  • India’s financial sector stands at a turning point — transitioning from protectionism to global integration.
  • The surge in foreign investments underscores international confidence in India’s macroeconomic fundamentals, digital infrastructure, and regulatory credibility.
  • However, balancing openness with sovereignty will define India’s success in becoming a $7-trillion, financially independent economy.
  • The challenge for policymakers lies in ensuring that this capital inflow strengthens, rather than compromises, India’s financial stability and autonomy.
Economics

Mains Article
30 Oct 2025

China’s WTO Complaint Against India’s PLI Scheme

Why in the News?

  • China has filed a formal complaint against India at the World Trade Organisation (WTO), alleging that India’s Production-Linked Incentive (PLI) schemes for batteries, automobiles, and electric vehicles violate global trade rules by favouring domestic products.

What’s in Today’s Article?

  • India’s PLI Scheme (Background, Understanding PLI Scheme, China’s Allegations, WTO Rules on Subsidies, India’s Defence, Broader Implications, etc.)

China’s WTO Complaint Against India’s PLI Scheme

  • China has formally filed a complaint with the World Trade Organisation (WTO) against India, alleging that several of India’s Production-Linked Incentive (PLI) schemes violate global trade rules.
  • Beijing claims that these schemes, aimed at promoting the manufacturing of advanced chemistry cell (ACC) batteries, automobiles, and electric vehicles (EVs), provide subsidies contingent on the use of domestic goods, thereby discriminating against imported products, including those from China.
  • This dispute marks one of the most significant trade confrontations between India and China within the WTO framework in recent years, highlighting the broader tension between industrial policy ambitions and international trade rules.

Understanding the PLI Scheme

  • Launched in 2020, India’s PLI scheme is a flagship initiative designed to strengthen domestic manufacturing, attract global investment, and integrate India into global value chains (GVCs).
  • The scheme provides financial incentives to companies based on incremental sales of goods manufactured in India, aiming to make domestic industries globally competitive while fostering innovation and employment generation.
  • The three PLI schemes challenged by China are:
    • PLI for Advanced Chemistry Cell (ACC) Batteries: Encourages giga-scale battery manufacturing for EVs and energy storage systems.
    • PLI for the Automobile and Auto Components Sector: Promotes the development of Advanced Automotive Technology (AAT) products, including EV components.
    • PLI for the Electric Vehicle (EV) Ecosystem: Aims to attract major global EV manufacturers and reduce import dependence.

China’s Allegations Against India

  • China’s central argument rests on the claim that these PLIs amount to prohibited subsidies under the WTO’s Subsidies and Countervailing Measures (SCM) Agreement.
  • Beijing contends that:
    • The PLI schemes are “Import Substitution (IS) subsidies”, as they encourage companies to use domestically produced goods over imported ones.
    • For example, the PLI for the auto sector mandates a 50% Domestic Value Addition (DVA) requirement, while the ACC battery scheme stipulates a 25% DVA threshold for eligibility.
    • These conditions, China argues, discriminate against foreign inputs and are inconsistent with WTO rules that prohibit subsidies contingent upon the use of domestic over imported goods.
  • China maintains that such subsidies distort market competition and hinder its exports to India, particularly in sectors like EV batteries and automotive components, where Chinese manufacturers are global leaders.

WTO Rules on Subsidies and Trade Measures

  • Under WTO law, countries have the sovereign right to provide subsidies for industrial development. However, the SCM Agreement ensures that such subsidies do not cause unfair trade distortions.
  • Classification of Subsidies under WTO Law
    • Prohibited Subsidies: Those contingent upon export performance or on the use of domestic goods over imported goods.
    • Actionable Subsidies: Permitted subsidies that may still be challenged if they cause adverse effects on other WTO members.
    • Non-Actionable Subsidies: Subsidies for legitimate public objectives such as R&D or environmental protection (currently lapsed).
  • Import substitution (IS) subsidies fall under the prohibited category, as outlined in Article 3.1(b) of the SCM Agreement.
  • Additionally, India’s PLI schemes may also be examined under:
    • Article III.4 of GATT (National Treatment Principle): Prohibits countries from treating imported goods less favourably than domestic goods.
    • Article 2.1 of the Trade-Related Investment Measures (TRIMs) Agreement: Prohibits investment measures that are inconsistent with national treatment obligations, such as local content requirements.
  • However, experts point out that India’s PLI schemes link incentives to value addition, not necessarily to the use of domestic goods.
  • Value addition can occur through innovation, local assembly, or supply chain integration, making China’s claims legally complex and open to interpretation.

India’s Likely Defence

  • Non-Contingency on Local Content: The Domestic Value Addition (DVA) benchmarks do not explicitly mandate the use of Indian goods; instead, they assess value creation within India, which can include imported components that undergo processing or transformation.
  • Developmental Objective: The schemes are part of India’s broader industrial and climate strategy, promoting green mobility, battery storage, and self-reliance — areas considered essential for sustainable growth.
  • Compliance with WTO Principles: India may argue that the subsidies are non-actionable, as they promote innovation, environmental sustainability, and technology diffusion — consistent with the WTO’s broader developmental objectives.

The WTO Dispute Process and Next Steps

  • Under WTO rules, the first step in dispute resolution is consultations between the parties. India and China will attempt to resolve the issue through diplomatic discussions.
  • If these consultations fail, the case will proceed to a WTO dispute panel for adjudication.
  • However, the WTO’s Appellate Body, the final authority for appeals, has been non-functional since 2019 due to a U.S. veto on judge appointments.
  • This means that even if the WTO panel issues a ruling against India and India appeals, the case will remain in legal limbo, allowing India to maintain its PLI policies until the appellate system is restored.

Broader Implications for India’s Industrial Policy

  • The dispute highlights a broader tension between industrial policy and global trade rules.
  • As countries increasingly adopt state-led incentives to promote manufacturing, especially in sectors like semiconductors, EVs, and clean energy, disputes of this nature are likely to rise.
  • India’s PLIs are central to its “Make in India” and “Atmanirbhar Bharat” initiatives, aimed at reducing import dependence and building competitive domestic capabilities.
  • Similar subsidy-driven strategies are being used by other economies, including the U.S. (CHIPS and Science Act) and the EU Green Industrial Plan.
  • Therefore, this WTO case will test how global trade rules adapt to the new age of industrial competitiveness and green technology promotion.

 

International Relations

Mains Article
30 Oct 2025

A Decade After Paris Accord, An Unstoppable Transition

Context

  • Ten years after the adoption of the Paris Agreement at COP21, the world faces a defining moment in its struggle against climate change.
  • Despite the global pledge to keep warming well below 2°C and strive for 1.5°C, emissions and temperatures continue to rise at alarming rates.
  • Floods, droughts, and heatwaves strike with increasing intensity, from Uttarakhand to Punjab and Jammu and Kashmir, reminding humanity that the climate crisis is no longer a distant threat but a lived reality.
  • Yet, amid these challenges, the Paris framework has changed the world’s trajectory, demonstrating that collective determination and multilateral cooperation can alter the course of history.

From a 5°C Future to a 2°C Pathway

  • Before 2015, the planet was heading toward a catastrophic 4°C–5°C of warming by the century’s end.
  • Through global commitment and cooperation, that curve has been bent downward toward 2°C–3°C.
  • This remains far from the safe zone identified by the Intergovernmental Panel on Climate Change (IPCC), yet it represents undeniable progress.
  • The shift proves that collective action works, and that multilateralism, though imperfect, remains essential.
  • The Paris Agreement’s success lies in its fairness, flexibility, and solidarity, enabling countries with different capabilities to contribute according to their national circumstances while sharing responsibility for the global good.

A Decade After Paris Accord: Transforming the Global Economy

  • The past decade has witnessed a turning point in global energy and economic systems. Ten years ago, fossil fuels were the cheapest and most competitive energy source.
  • Today, renewables such as solar, wind, and hydroelectric power are leading new waves of growth and employment.
  • This transformation marks a breakthrough for energy security, economic sovereignty, and environmental resilience.
  • Equally remarkable is the rise of electric mobility. What once seemed an elusive dream has become a worldwide phenomenon.
  • With electric vehicles accounting for nearly 20% of global new car sales, the transportation sector stands at the brink of a historic shift away from fossil fuels.

The Power of Partnership: The International Solar Alliance (ISA)

  • Among the most inspiring achievements of the Paris decade stands the ISA, conceived at COP21 through the collaboration of India and France.
  • What began as a visionary idea has evolved into a global coalition of over 120 countries, dedicated to making solar energy accessible to all.
  • The ISA demonstrates how multilateralism can translate vision into action, fostering capacity building, financing mechanisms, and technological exchange.
  • India’s leadership within this alliance reflects its growing stature in the global green transition.
  • By securing 50% of its installed electricity capacity from non-fossil sources five years ahead of schedule, India shows that development and decarbonisation can advance together.

Priorities for the Next Decade

  • First, global ambition must rise sharply. Despite improvements, current pledges remain insufficient.
    • Nations must act decisively to reduce carbon emissions and preserve a liveable planet.
  • Second, the global transition must be just and inclusive, protecting the most vulnerable communities.
    • Investments in adaptation and resilience, through mechanisms such as the Green Climate Fund, the Loss and Damage Fund, and initiatives like CREWS—are vital to ensure that no nation or community is left behind.
  • Third, the protection of natural carbon sinks, forests, mangroves, and oceans, must become a universal priority.
    • These ecosystems, from the Amazon to the Sundarbans, are the planet’s best allies in absorbing carbon and safeguarding biodiversity.
  • Fourth, non-state actors must be empowered. Local governments, scientists, businesses, and citizens play decisive roles in translating ambition into tangible outcomes.
    • Their engagement transforms global commitments into visible, community-level results.
  • Fifth, science must guide the transition. In an era clouded by misinformation, defending the integrity of the IPCC and promoting climate education are essential to ensure that facts, not fear, shape global decisions.

Conclusion

  • A decade after Paris, the world’s climate journey stands at a crossroads between progress and peril.
  • The achievements of the past ten years reveal a powerful truth: when nations unite under shared purpose, transformation follows.
  • The Paris Agreement has redefined the global climate order, proving that multilateralism can deliver measurable change, that renewable energy can drive prosperity, and that adaptation and equity can coexist with ambition.
  • The future remains uncertain, but the direction is clear. The world has chosen a path toward sustainability, and that path, however demanding, is unstoppable.
Editorial Analysis

Mains Article
30 Oct 2025

An Amended Constitution Bill, Its Contentious Issues

Context

  • The Constitution (One Hundred and Thirtieth Amendment) Bill marks a pivotal step in India’s effort to strengthen constitutional morality and political accountability.
  • The Bill seeks to amend Articles 75, 164, and 239AA to mandate the removal of Ministers, including the Prime Minister and Chief Ministers, if they remain in custody for thirty consecutive days for an offence punishable with five years or more of imprisonment.
  • While the proposal aims to uphold the integrity of public office, it has provoked widespread debate.

The Provisions of the Bill

  • Under the Bill, a Minister’s arrest and detention for thirty consecutive days would compel the President or Governor to remove them from office on the advice of the Prime Minister or Chief Minister.
  • If the Prime Minister or Chief Minister themselves are detained, they must resign or automatically cease to hold office.
  • The measure seeks to prevent accused Ministers from retaining power, thus reinforcing public trust in governance.
  • Yet, its reliance on arrest and custody duration as criteria for disqualification raises serious constitutional and procedural concerns, given the potential for abuse of discretionary powers by enforcement agencies.

The Discretionary Power of Arrest

  • The power to arrest, under Section 41 of the Code of Criminal Procedure (CrPC) and its counterpart Section 35 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), is discretionary, not mandatory.
  • Courts have consistently reaffirmed this position:
    • In Joginder Kumar v. State of U.P. (1994), the Supreme Court held that no arrest should be made merely because it is lawful; it must be necessary and justified.
    • In Deenan v. Jayalalitha (1989) and Amarawati and Anr. v. State of U.P. (2004), courts clarified that the term may arrest empowers but does not oblige the police to arrest, depending on the nature and context of the offence.

The Contentious Provisions:  Detention, Bail, and the Problem of Thirty Days

  • The Bail Dilemma
    • The requirement that a Minister detained for thirty consecutive days must vacate office links political tenure to judicial timelines.
    • Though the Supreme Court has repeatedly held that bail is the rule, jail is the exception, in practice, bail decisions are influenced by factors like the gravity of the offence and the judge’s stance on liberty under Article 21.
    • This means a Minister could lose office before any judicial determination of guilt, contradicting the presumption of innocence. The thirty-day threshold therefore risks turning temporary detention into permanent political damage.
  • Default Bail and Procedural Inconsistency
    • The amendment also ignores default bail under Section 167(2) CrPC (or Section 187 BNSS), which grants bail if the investigation is not completed within 60 or 90 days.
    • Since the thirty-day limit falls well within this period, a Minister might be removed from office before acquiring the right to bail, rendering the provision procedurally inconsistent and arbitrary.
  • Special Statutes and Twin Conditions of Bail
    • The Bill’s scope covers offences under any law in force, extending to stringent statutes such as the PMLA (Prevention of Money Laundering Act), NDPS Act, and UAPA (Unlawful Activities (Prevention) Act).
    • These impose twin conditions for bail, the accused must prove they are not guilty and unlikely to reoffend.
    • Such provisions reverse the burden of proof, making bail within thirty days nearly impossible.
    • The Manish Sisodia case, where bail was granted only after 17 months under the PMLA, exemplifies this difficulty.
    • Consequently, the thirty-day benchmark could cause premature disqualification even before due judicial process concludes.

Political Implications and the Risk of Misuse

  • Arrest as a Political Tool
    • By linking ministerial survival to arrest and custody, the Bill risks converting the criminal process into a political instrument.
    • In a context where investigative agencies are often accused of bias, such provisions may facilitate targeted arrests against political rivals.
    • This undermines the principle of separation of powers and constitutional morality, replacing accountability with political expediency.
    • What is designed to enhance integrity could instead erode democratic fairness.
  • The Minister’s Dilemma
    • The Bill also places Ministers in a Hobson’s choice:
      • Either resign to secure bail, thereby surrendering office pre-emptively, or
      • Stay in custody and face automatic removal.
    • This dilemma creates administrative instability and penalises mere accusation, rather than proven guilt.
    • It risks reducing executive authority to the outcome of legal tactics, not democratic mandate.

Conclusion

  • The Constitution (One Hundred and Thirtieth Amendment) Bill reflects a well-meaning yet flawed attempt to promote ethical governance.
  • Ultimately, true ministerial accountability cannot depend solely on legal triggers. It must arise from political ethics, transparent governance, and a citizenry committed to democratic values.
  • The Bill, in its current form, risks conflating political morality with punitive legality, thereby unsettling the delicate equilibrium between justice and politics in India’s constitutional framework.
Editorial Analysis

Mains Article
30 Oct 2025

PM Modi Addresses Maritime Leaders Conclave at India Maritime Week 2025

Why in news?

PM Modi addressed the Maritime Leaders Conclave and chaired the Global Maritime CEO Forum at India Maritime Week 2025 in Mumbai. He welcomed participants from over 85 countries, noting the event’s evolution from a national forum in 2016 to a global summit.

What’s in Today’s Article?

  • India’s Maritime Strength and Economic Potential
  • India Maritime Week 2025 – A Global Maritime Showcase
  • PM Modi’s Address at India Maritime Week 2025: Key Highlights

India’s Maritime Strength and Economic Potential

  • India’s 11,000 km-long coastline and 13 coastal states and Union Territories contribute nearly 60% of the national GDP.
  • The nation’s 23.7 lakh sq km Exclusive Economic Zone (EEZ) attracts global investors, supporting 800 million residents in maritime regions.
  • The 38 countries of the Indian Ocean Region (IOR) account for about 12% of global exports.

India Maritime Week 2025 – A Global Maritime Showcase

  • India Maritime Week (IMW) 2025, held recently in Mumbai, is India’s premier global maritime event under the theme “Uniting Oceans, One Maritime Vision.”
  • The event aims to showcase India’s roadmap to becoming a global maritime hub and a leader in the Blue Economy.
  • This was the fourth edition of the summit. In 2016, the maiden India Maritime Week was held in Mumbai itself. Now, it has become a global summit. 
  • It served as a global convergence point for shipping, ports, shipbuilding, cruise tourism, and blue economy finance, driving collaboration for a sustainable maritime future.

PM Modi’s Address at India Maritime Week 2025: Key Highlights

  • PM Modi addressed the Maritime Leaders Conclave and chaired the Global Maritime CEO Forum at India Maritime Week 2025 in Mumbai.
  • During his address he highlighted India’s maritime transformation, global partnerships, and future ambitions for the blue economy.
  • Several MoUs worth lakhs of crores were signed, reflecting global confidence in India’s maritime capabilities.
  • India’s Vision for its Maritime Transformation
    • India is committed to transform its maritime sector through the Maritime Amrit Kaal Vision 2047.
    • This long-term vision rests on four strategic pillars:
      • Port-led development
      • Shipping and shipbuilding
      • Seamless logistics
      • Maritime skill-building
    • The goal is to position India as a leading global maritime power.
  • Major Achievements in India’s Maritime Sector (2024–25)
    • Vizhinjam Port, India’s first deep-water international trans-shipment hub, became operational, hosting the world’s largest container vessel.
    • Kandla Port launched India’s first megawatt-scale indigenous green hydrogen facility.
    • JNPT doubled its capacity with the start of Phase 2 of the Bharat Mumbai Container Terminal, marking the largest FDI in India’s port infrastructure.
    • India’s major ports handled record cargo volumes, showcasing unprecedented efficiency.
  • Next-Generation Reforms in Maritime Governance
    • Outdated colonial-era shipping laws replaced with modern legislation empowering State Maritime Boards, promoting digitization, and enhancing safety and sustainability.
    • The new Merchant Shipping Act aligns Indian regulations with global conventions, improving trust, ease of business, and investment climate.
    • The Coastal Shipping Act simplifies trade, ensures supply chain security, and promotes balanced coastal development.
    • Introduction of One Nation, One Port Process to standardize port procedures and reduce documentation.
  • Decade of Transformation under Maritime India Vision
    • Over 150 new initiatives launched under the Maritime India Vision.
    • Major ports’ capacity doubled, turnaround time reduced, and cruise tourism expanded.
    • Inland waterway cargo movement rose by 700%, and operational waterways increased from 3 to 32.
    • The net annual surplus of ports grew ninefold in ten years.
  • Efficiency and Global Recognition
    • Indian ports now rank among the most efficient in the developing world, outperforming many in the developed world.
    • Container dwell time reduced to under 3 days, and vessel turnaround time cut from 96 to 48 hours.
    • India improved its position in the World Bank’s Logistics Performance Index.
    • The number of Indian seafarers increased from 1.25 lakh to over 3 lakh, making India one of the top three seafaring nations globally.
  • Focus on Blue Economy and Green Growth
    • Emphasis on Blue Economy, sustainable coastal development, green logistics, and coastal industrial clusters.
    • Government prioritizing shipbuilding as a national growth driver, with a ₹70,000 crore investment to boost shipyard capacity, greenfield/brownfield projects, and maritime employment.
    • Large ships have been granted infrastructure asset status, enabling easier financing and reduced interest costs.
  • Visionary Maritime Heritage and New Port Projects
    • PM Modi recalled Chhatrapati Shivaji Maharaj’s maritime legacy, emphasizing that seas should be seen as gateways to opportunity.
    • Announced construction of a new mega port at Vadhavan, Maharashtra, part of India’s effort to quadruple port capacity and increase containerized cargo share.
  • Global Cooperation and Strategic Role of India
    • India aims to strengthen global supply chain resilience and become a “steady lighthouse” amid global uncertainty.
    • Highlighted India–Middle East–Europe Economic Corridor as a project redefining trade routes and promoting clean energy logistics.
    • Reaffirmed India’s commitment to empowering Small Island Developing States and Least Developed Countries through technology, training, and infrastructure.
Economics

Mains Article
30 Oct 2025

Property Rights of Minors in India

Why in news?

Recently, the Supreme Court ruled that a person can reject a property sale made by their guardian after turning 18 if it was done without court approval.

The court said this can be done either by filing a case or through actions—for example, reselling the property—within the legal time limit.

The bench of Justices Pankaj Mithal and Prasanna B. Varale clarified that a formal lawsuit is not always necessary, reaffirming that a minor’s property rights can be protected by their clear conduct showing refusal of the sale.

What’s in Today’s Article?

  • Laws Governing Property of Minors
  • Background of the Case
  • Supreme Court on How Minors Can Reject Property Sales

Laws Governing Property Rights of Minors

  • Property transactions involving minors are regulated by three key laws:
    • The Indian Contract Act, 1872
    • The Hindu Minority and Guardianship Act, 1956
    • The Guardians and Wards Act, 1890
  • Minors Cannot Enter into Contracts
    • Under Section 11 of the Indian Contract Act, only adults of sound mind can enter into valid contracts.
    • Any contract made by a minor is void from the beginning (void ab initio). This means it cannot be enforced by or against the minor.
    • Exceptions:
      • If the contract benefits the minor or provides necessities like food or education, the cost may be recovered from the minor’s property.
      • A guardian can enter into a contract only if it benefits the minor.
      • A minor cannot be a business partner but may receive profit shares under a valid agreement.
  • Restrictions on Guardian’s Power to Sell Property
    • Under Section 8 of the Hindu Minority and Guardianship Act, 1956, a natural guardian can manage a minor’s property only for their benefit.
      • The guardian cannot sell, mortgage, gift, or lease immovable property without court approval.
      • If such a sale happens, Section 8(3) makes it “voidable at the instance of the minor”, meaning the minor can cancel it after turning 18.
    • Similarly, Section 29 of the Guardians and Wards Act, 1890 also says a guardian needs court permission to dispose of a ward’s property.
  • How a Minor Can Challenge the Sale After Majority?
    • When a guardian sells property without permission, the law allows the now-adult person to challenge it.
    • Traditionally, courts held that a formal case must be filed to cancel such a sale.
    • However, in Abdul Rahman v. Sukhdayal Singh (1905), the court ruled that filing a suit is not always necessary — a clear act of repudiation, like reselling the property, is enough to show rejection.
  • Time Limit for Challenging Such Sales
    • According to the Limitation Act, 1963, the person has three years after turning 18 to challenge or reject a property sale made by their guardian without court approval.

Background of the Case

  • The dispute involved two small plots (No. 56 and 57) in Davanagere, Karnataka, bought in 1971 by a father in the names of his three minor sons.
  • Acting as their natural guardian, he later sold both plots without obtaining mandatory court approval.
  • After turning 18, the sons resold both plots to another person, leading to two separate ownership disputes.
  • What Happened in the Lower Courts?
    • In the Plot 56 case, the High Court (2003) ruled that the sons’ resale amounted to a valid rejection of their father’s earlier sale. The ruling became final as it was not challenged.
    • In the Plot 57 case, the buyer filed a case in 1997 claiming ownership.
    • The trial court dismissed the suit, holding that the father’s sale was voidable and had been repudiated when the sons sold it after reaching adulthood.
  • Appeals and High Court Ruling
    • The first appellate court and the High Court later reversed the trial court’s decision, saying the sons’ later sale was invalid because they had not filed a formal case to cancel their father’s sale.
    • The High Court declared the buyer as the rightful owner of Plot 57.
  • Supreme Court Appeal
    • This decision was challenged before the Supreme Court, which was asked to decide whether a person who was a minor at the time of sale must file a formal case to cancel the sale or can reject it by conduct after attaining majority.

Supreme Court on How Minors Can Reject Property Sales

  • The Supreme Court clarified how a person can repudiate (reject) a property sale made by their guardian without court approval once they become an adult.
  • The Court ruled that a minor, after turning 18, can reject such a sale in two ways:
    • By filing a formal case (suit) to cancel the sale deed, or
    • By clear conduct that shows they do not accept the earlier sale — for example, reselling the property or taking actions inconsistent with the guardian’s sale.
  • The Court said that once the person rejects the sale, it becomes void from the beginning, and the buyer gains no rights over the property.
  • Application in This Case
    • The Court observed that the sons, after becoming adults, sold the same property within three years — the period allowed under law.
    • Their names still appeared in the revenue records, and the earlier buyers had never taken possession.
    • This conduct was enough to prove that the sons had repudiated their father’s sale, so no separate case was needed.
Polity & Governance

Oct. 29, 2025

Mains Article
29 Oct 2025

India’s Diaspora Diplomacy: Balancing Pride and Restraint Abroad

Why in news?

In recent weeks, the Indian diaspora has drawn global attention for religious and cultural displays that, in some cases, have crossed local norms in developed countries.

Incidents such as Ganapati idol immersion in public water bodies and Deepavali fireworks in residential areas have sparked controversy. In Edmonton, Canada, fireworks set two houses on fire, leading police to warn, “Light up your home, not your neighbour’s roof.”

Meanwhile, in Australia, anti-immigrant protesters have targeted Indians, while in the U.S. and Canada, nationalist groups have increasingly focused on the Indian community, reflecting a rising tension between cultural expression and local sensitivities abroad.

What’s in Today’s Article?

  • Diaspora Diplomacy and Soft Power
  • Cultural Assertion and the Evolution of India’s Diaspora Policy
  • India’s Approach to Overseas Citizenship

Diaspora Diplomacy and Soft Power

  • India has become the world’s fourth-largest economy with a GDP of USD 4.19 trillion, supported significantly by its 35 million–strong diaspora.
  • Comprising NRIs and OCIs, the diaspora contributes through remittances exceeding USD 100 billion annually, investments, and social initiatives like village development.
  • From ancient traders and indentured labourers to today’s skilled professionals, Indian migration has evolved over centuries.
  • Once criticized as a brain drain, it is now viewed as “brain gain,” symbolizing India’s global strength.
  • India’s diaspora enhances soft power through culture, technology, and advocacy, influencing major outcomes like the U.S.–India nuclear deal.
  • However, lobbying successes vary with host-country politics and diaspora unity.

Cultural Assertion and the Evolution of India’s Diaspora Policy

  • A growing section of the Indian diaspora is displaying assertive cultural nationalism, promoting practices like Deepavali firecrackers abroad as symbols of community pride and identity.
  • Simultaneously, some groups are urging the diaspora to advocate India’s political positions, especially in the United States.
  • Historically, however, Jawaharlal Nehru maintained a clear distinction between India and its overseas communities.
  • While the freedom movement had global links, Nehru insisted that post-Independence India stay out of PIO politics.
  • He urged persons of Indian origin (PIOs) to remain loyal to their adopted countries, avoiding any perception of Indian interference in foreign domestic affairs.
  • From Territorial to Cultural Nationalism
    • In the early decades after Independence, India’s foreign policy and diaspora engagement were guided by territorial nationalism, not cultural identity.
    • Issues like discrimination and racism were framed as universal human rights concerns, reflecting India’s commitment to global justice rather than ethnic solidarity.
  • Rise of Global Cultural Nationalism
    • From the 1990s onward, the increasing Indian migration created a global network of cultural nationalists.
    • This trend gained strong momentum after Narendra Modi became Prime Minister in 2014, marked by large-scale diaspora rallies abroad, particularly in the United States.
  • Growing Western Sensitivity to Foreign Influence
    • At the same time, Western nations — notably the U.S., Canada, Australia, and parts of Europe — became increasingly wary of foreign interference in domestic politics.
    • Allegations of Chinese and Russian influence sharpened this sensitivity, even as Israel’s lobbying began facing bipartisan criticism in the U.S.
    • Although foreign influence operations are legal in the U.S. if transparently registered, the state-backed mobilisation of the Indian diaspora has drawn quiet scrutiny.
  • India’s Position in the Changing Landscape
    • Historically seen as a benign and diverse immigrant community, Indian Americans now face growing attention as India’s outreach to its diaspora becomes more overtly strategic.
    • While India has avoided the hostility directed at Russia or China, there are increasing signs of Western unease over efforts to align diaspora networks with New Delhi’s political and cultural agenda.

India’s Approach to Overseas Citizenship

  • India does not permit dual citizenship, but in 2003, it introduced Overseas Citizenship of India (OCI) status through amendments to the Citizenship Act, 1955.
  • This provided Persons of Indian Origin (PIOs) with lifetime visa-free entry, exemption from police registration, and rights similar to NRIs in education, property, and business.
  • In 2015, the government merged the PIO and OCI categories, describing the arrangement as “dual citizenship in spirit, but not in law.
  • In contrast, the United States allows dual citizenship, but growing concerns about foreign political influence have prompted calls for stricter scrutiny.
  • Analysts have voiced concerns about divided loyalties and potential foreign interference.

Navigating Nationalist Tensions Abroad

  • As Western nations experience heightened nationalism, diaspora communities face pressure to demonstrate loyalty to host countries.
  • For Indians abroad, expectations to promote India’s interests must be balanced with these realities.
  • In an era of rising protectionism and political suspicion, “multi-alignment” diplomacy — being loyal to both India and the host nation — is increasingly difficult.
  • Ultimately, nationalist fervour is not unique to India, and diaspora members must operate within the nationalist sensitivities of their adopted countries.
International Relations

Mains Article
29 Oct 2025

Delhi Conducts Cloud-Seeding Trials to Tackle Toxic Air

Why in news?

Amid worsening air quality, the Delhi government, in collaboration with IIT-Kanpur, conducted two cloud-seeding trials to induce artificial rain, though only negligible rainfall was recorded — 0.1 mm in Noida and 0.2 mm in Greater Noida.

According to experts, the weak results were due to low cloud moisture (15–20% humidity), but more sorties are planned as better moisture conditions are expected in coming days.

What’s in Today’s Article?

  • Cloud Seeding
  • Why Cloud-Seeding Trials in Delhi Failed to Induce Rain?
  • How Cloud Seeding Helped Reduce Pollution?
  • Conclusion

Cloud Seeding

  • It is a weather modification technique used to enhance rainfall by introducing “seed” particles into suitable clouds.
    • The method was first tested globally in the 1940s.
  • The process involves dispersing cloud condensation nuclei (CCN) — particles that attract water vapour — or ice nuclei particles, which promote ice crystal formation.
  • In natural conditions, water vapour condenses around airborne particles to form droplets that grow, collide, and eventually fall as rain.
  • In cloud seeding, artificial nuclei such as silver iodide or salt particles are added to accelerate this process.
  • Ice crystals grow faster, combine, and become heavy enough to precipitate, increasing the likelihood of rainfall.
  • Process of Cloud Seeding
    • To artificially induce rain, salts such as silver iodide, potassium iodide, or sodium chloride are used as “seeds” to create additional nuclei for cloud droplet formation.
    • These particles are dispersed into clouds using aircraft, ground-based generators, rockets, drones, or flares.
      • The method chosen depends on cloud type and conditions.
  • Conditions Needed for Successful Cloud Seeding
    • Cloud seeding can only be done when suitable clouds with adequate depth and moisture are present.
      • As per the experts, cloud seeding needs humidity above 50%, cool temperatures, and existing cloud formation.
    • The process requires a sufficient number of droplets inside clouds to enlarge through condensation and eventually fall as rain. It cannot be done under clear skies.
    • In Delhi’s winters, cloud formation depends on western disturbances — weather systems originating from the Caspian or Mediterranean Sea that bring non-monsoonal rain to northwest India.
    • However, these clouds often lack the required depth and liquid water content for effective seeding.
    • Experts emphasize that before any attempt, it’s essential to assess cloud height, moisture levels, and liquid water content using specialized monitoring tools to determine if conditions are right for seeding.
  • Environmental concerns
    • Silver iodide (AgI), used in seeding, is insoluble but toxic in large quantities.
    • Even small amounts (0.2 micrograms) can harm fish and microorganisms, though iodine in AgI is not considered toxic.

Why Cloud-Seeding Trials in Delhi Failed to Induce Rain?

  • A Delhi government report cited low atmospheric moisture (10–15%), as predicted by the India Meteorological Department (IMD), as the main reason the cloud-seeding trials did not produce significant rainfall.
  • Experts explained that although there was good cloud cover, moisture levels were too low to trigger rain.
  • They added that the team gained technical experience from the trials and would conduct a third round once weather conditions improve.
  • Limited Rainfall and Technical Challenges
    • Experts noted that while Delhi plans more trials, cloud seeding in convective, low-level clouds remains highly uncertain.
    • Success depends on timing, cloud type, altitude, and adequate moisture, conditions that are rarely met over the plains.
      • Cloud bases were around 10,000 feet, which meteorologists said was too high for effective seeding.
      • If clouds descend below 5,000 feet, chances of rainfall improve.
    • The World Meteorological Organization (WMO) notes that the biggest challenge is quantifying seeding’s actual impact on precipitation.

How Cloud Seeding Helped Reduce Pollution?

  • Despite limited rainfall — 0.1 mm in Noida and 0.2 mm in Greater Noida — the trials had a measurable impact on air quality.
  • According to the Delhi government’s report, levels of particulate matter (PM2.5 and PM10) dropped after cloud seeding:
    • PM2.5 fell from 221–230 to 203–207 across Mayur Vihar, Karol Bagh, and Burari.
    • PM10 reduced from 206–209 to 163–177 in the same areas.
  • The report concluded that while rainfall was minimal, pollution reduction was evident, offering valuable insights for future cloud-seeding efforts.
  • Air Quality and Broader Solutions
    • Air quality analysts cautioned that cloud seeding does not address emissions at their source.
    • Experts point out that such measures — like smog towers or anti-smog guns — offer only short-term benefits.
    • Sustainable improvement requires coordinated action across states, targeting emissions from transport, power plants, and construction, under an airshed-based approach.

Conclusion

Delhi’s cloud-seeding trials provided valuable learning but limited rain, highlighting the complex science, environmental risks, and logistical constraints of such interventions.

Experts agree that while cloud seeding can supplement pollution control efforts, lasting air quality improvement demands systemic emission reductions and regional cooperation.

Geography

Mains Article
29 Oct 2025

NITI Aayog Report Highlights Rising Role of India’s Service Sector

Why in the News?

  • India’s services sector is in the news after NITI Aayog released two comprehensive reports highlighting that the sector now contributes 55% to India’s GVA and nearly 30% to total employment.

What’s in Today’s Article?

  • India’s Service Sector (Background, Statistics, etc.)
  • NITI Aayog Report on Service Sector (Key Highlights, Policy Priorities, etc.)

India’s Service Sector: Driving Jobs and Growth in a Transforming Economy

  • India’s service sector has emerged as the core pillar of its economic transformation, shaping the country’s journey from an agrarian economy to a knowledge and innovation-driven one.
  • Encompassing a wide range of industries, including information technology, financial services, communications, education, healthcare, transport, tourism, and retail, the sector not only drives GDP but also represents India’s global competitiveness.
  • The sector’s contribution to India’s Gross Value Added (GVA) has steadily risen over the years, while its employment potential has expanded across both traditional and modern sub-sectors.
  • India is today the 7th largest exporter of services in the world, with a share of over 4% in global services exports.

Key Highlights and Insights from the NITI Aayog Reports

  • Employment Growth and Rising Share in Workforce
    • According to the latest twin reports released by NITI Aayog, “India’s Services Sector: Insights from Employment Trends and State-Level Dynamics” and “India’s Services Sector: Insights from GVA Trends and State-Level Dynamics”, between 2017-18 and 2023-24, India’s service sector added nearly 40 million new jobs, raising its employment share from 26.9% in 2011-12 to 29.7% in 2023–24.
    • This means almost one in three Indian workers is now engaged in the services economy.
    • The report also notes an improvement in employment elasticity, which rose from 0.35 pre-pandemic to 0.63 post-pandemic, indicating that job creation is increasingly responding to output growth.
    • The sector’s ability to absorb labour displaced from agriculture and low-productivity industry makes it a crucial driver of inclusive growth.
  • Contribution to GDP and Economic Stability
    • The services sector’s contribution to India’s Gross Value Added (GVA) increased from 49% in 2011-12 to 55% in 2023-24, outpacing the secondary and primary sectors.
    • It also recorded a Compound Annual Growth Rate (CAGR) of about 7%, showing consistent resilience even during economic downturns.
    • Sub-sectors such as Information Technology (IT), financial and professional services, communication, and logistics have been the key growth engines.
    • For instance, Computer and Information Services GVA increased nearly fourfold, from Rs. 2.4 trillion in 2011–12 to 10.8 trillion in 2023–24, highlighting India’s digital dominance and the rapid expansion of knowledge-based services.
  • Traditional vs Modern Services
    • While traditional services such as trade, repair, and transport continue to employ a large section of the population, modern services like IT, finance, R&D, and consulting have seen faster growth and higher productivity levels.
    • The Professional, Scientific, and Business Services segment alone contributes about 20% of total services output, underlining the importance of high-skilled and innovation-driven activities.
    • Conversely, postal, courier, and insurance services remain underperforming and require modernisation and digital transformation.
  • Regional Trends and State-Level Dynamics
    • The NITI Aayog’s state-level analysis reveals significant disparities in the development and composition of the services sector across India.
    • Leaders: Karnataka, Maharashtra, Telangana, Tamil Nadu, Delhi, and Kerala dominate the modern service economy, driven by IT, finance, and professional consulting. Together, they account for 40% of total services output.
    • Lagging States: Bihar, Uttar Pradesh, Jharkhand, and Odisha remain concentrated in low-value traditional services, with limited participation in high-value segments.
    • Emerging Catch-Up: Encouragingly, lower-income states are showing “beta convergence”, meaning they are growing faster in services GVA, narrowing the regional gap over time.
  • NITI Aayog recommends a “Build–Embed–Scale” framework to strengthen state-specific service ecosystems:
    • Build - Invest in physical and digital infrastructure.
    • Embed - Link services with industrial and skill ecosystems.
    • Scale - Promote innovation and decentralised service delivery.
  • Linkages with Income, Exports, and Digitalisation
    • The correlation between a state’s service sector strength and its per capita income is strong; states with higher service contributions, like Karnataka and Telangana, record higher incomes.
    • At the macro level, India’s services sector has become the largest recipient of FDI and a key contributor to foreign exchange earnings.
    • India’s digitally deliverable services exports, such as software and IT-enabled services, have surged, supported by Global Capability Centres (GCCs) that employ over 1.6 million professionals.
    • The report also highlights the growing importance of Digital Public Infrastructure (DPI), including UPI, DigiLocker, and e-governance systems, in enabling service delivery and financial inclusion across Tier-2 and Tier-3 cities.

Policy Priorities for the Road Ahead

  • NITI Aayog stresses that service-led growth must be inclusive, sustainable, and regionally balanced.
  • Key policy priorities include:
    • Expanding digital and physical infrastructure across smaller cities.
    • Establishing skill hubs for emerging areas such as fintech, AI, and healthcare.
    • Promoting MSME integration into service supply chains.
    • Strengthening data and institutional capacity for evidence-based policymaking.
    • Encouraging green and sustainable services to align with India’s climate goals.
Economics

Mains Article
29 Oct 2025

Reimagining Indian Cities as Economic Growth Hubs for a Viksit Bharat

Context:

  • India’s goal of becoming a $30 trillion economy by 2047 and achieving net zero by 2070 places cities at the center of its development trajectory.
  • Urban areas must evolve not just as centers of habitation but as engines of economic growth, sustainability, and resilience.

Urbanisation and the Developmental Imperative:

  • Cities as growth engines: Most job creation and industrial expansion will occur in cities, and they are crucial for harnessing India’s demographic dividend.
  • Climate commitments: Cities contribute significantly to GHG emissions and thus must lead in achieving net-zero and low-emission development.
  • Vulnerability and resilience: High population densities make cities especially prone to disasters and pandemics, necessitating enhanced urban resilience.

Legacy of Urban Planning in India:

  • Historical roots: India’s planning systems originated in the mid-1800s, primarily as a public health response to the plague.
  • Current limitations:
    • Focused narrowly on land-use planning rather than economic vision.
    • Master Plans lack integration with long-term economic, climate, and resource goals.
    • Growth projections are based on past population trends, not future job potential or economic expansion.

Need for an Economic Vision in Urban Planning:

  • Economic vision first: Urban planning should begin with identifying key economic drivers for the next 20–50 years.
  • Integrated framework:
    • Assessments of population growth based on the number of jobs that are likely to be created.
    • This will provide a basis for determining the infrastructure needs and land requirements for different purposes.
    • In the absence of such an exercise, land-use plans lack a credible basis.
  • Outcome: Transition from passive population-based planning to dynamic growth-based planning.

Natural Resource and Environmental Planning:

  • Resource budgeting: Cities must conduct natural resource budgeting to assess carrying capacity and manage water, land, and energy sustainably.
  • Demand management: Emphasis on efficient resource use and limiting urban expansion within ecological boundaries.
  • Climate action plans: Every city should adopt a climate action roadmap for low-emission growth and resilience to extreme weather events.

Tackling Urban Pollution and Mobility Challenges:

  • Air pollution crisis: Plans must include environmental management, especially for air quality improvement.
  • Transport reforms: Development of Comprehensive Mobility Plans (CMPs) promoting -
    • Public transport systems
    • Non-motorised transport (NMT) like cycling and walking
    • Reduced dependence on private vehicles

Regional and Tier-II City Integration:

  • Beyond municipal boundaries: Urban economic planning should encompass peri-urban and regional linkages.
  • Rural-urban synergy: Recognize economic interdependence between cities and surrounding rural areas.
  • Smaller cities’ role: Affordable land and emerging industries make Tier-II and Tier-III cities vital for manufacturing and inclusive urbanisation.

Institutional and Educational Reforms Needed:

  • Planning laws: Amend outdated urban planning regulations to integrate economic, environmental, and regional perspectives.
  • Urban education: Reform urban planning curricula to build professionals skilled in economic geography, climate adaptation, and sustainability.

Way Forward:

  • Reorient urban planning from land-use centric to economy-driven, sustainable frameworks.
  • Develop city-specific climate and resource management plans.
  • Foster regional planning that includes smaller cities and their linkages.
  • Align urban policy with Viksit Bharat 2047 goals and net-zero commitments.
  • Invest in capacity building and institutional reforms for adaptive urban governance.

Conclusion:

  • India’s current urban planning paradigm—rooted in colonial-era sanitation concerns—must evolve to meet 21st-century challenges.
  • The future demands cities that are economically vibrant, resource-efficient, and climate-resilient.
  • Transforming cities into “economic growth hubs” is not just a planning reform; it is an essential pillar for realizing the vision of a Viksit Bharat.
Editorial Analysis

Mains Article
29 Oct 2025

Math is Not a Tool for Cultural Nationalism

Context

  • The controversy surrounding the University Grants Commission’s (UGC) draft undergraduate mathematics curriculum under the National Education Policy (NEP) has ignited a crucial debate about the intersection of education, nationalism, and scientific inquiry.
  • While the proposal aims to integrate traditional Indian mathematical knowledge into the modern curriculum, it has faced strong opposition from over 900 Indian mathematicians, who argue that it is pedagogically flawed and ideologically driven.
  • At the heart of the issue lies a vital question: can a discipline grounded in universal truths, like mathematics, be reshaped through cultural or nationalist lenses without distorting its essence?

The Core of the Controversy

  • The draft curriculum has been criticised for its limited coverage of core subjects, neglect of applied mathematics, and poorly designed electives.
  • More significantly, the inclusion of subjects such as Kala Ganpana (traditional Indian time calculation), Bharatiya Bijganit (Indian algebra), and Shulba Sutra (ancient altar geometry) has raised fears that the curriculum prioritises symbolic cultural revival over academic rigour.
  • Opponents believe such content undermines the universal and scientific nature of mathematics, transforming it into a tool of ideological assertion rather than intellectual development.

The Debate on Cultural Pride vs. Intellectual Integrity

  • Supporters of the NEP, notably Manjul Bhargava, the 2014 Fields Medal winner, argue that India’s mathematical heritage deserves rightful recognition.
  • Bhargava maintains that acknowledging ancient contributions does not equate to glorifying one civilisation over another, but rather to restoring balance to a Eurocentric narrative.
  • This effort to reclaim cultural pride is understandable and historically justified.
  • Yet, an overemphasis on nationalism in mathematics risks replicating the very colonial mindset it seeks to resist.
  • To portray mathematics as an exclusively Indic creation is to commit the same error of cultural monopolisation once made by colonial scholars.
  • Mathematical truths transcend geography and culture, the proposition that 2 + 2 = 4 is neither Western nor Indian; it is simply true. When nationalism infiltrates a discipline built on logic and universality, it dilutes both its objectivity and global relevance.

The Universal Character of Mathematics

  • Mathematics draws strength from its universality and cumulative evolution.
  • From Babylonian number systems to Greek geometry, from Indian algebra to Arabic numerals, its history is a story of cross-cultural collaboration rather than isolated civilisational achievements.
  • To confine its teaching within a Vedic or Indic framework is both historically inaccurate and pedagogically unsound.
  • Moreover, most mathematics instructors lack formal training in Indology and may struggle to interpret ancient texts by Aryabhata, Brahmagupta, or Bhaskara with academic neutrality.
  • Without such preparation, there is a risk of ideological bias, where students absorb mythologised history instead of scientific reasoning.
  • A modern curriculum must therefore balance cultural appreciation with analytical depth, ensuring that historical context complements, not replaces, technical competence.

The Broader Implications for Education and Democracy

  • The debate extends beyond curriculum design into the philosophical purpose of education and the defence of rational inquiry in a democracy.
  • When knowledge becomes a vehicle for nationalism, education ceases to serve truth and begins to serve ideology.
  • The danger lies in replacing scientific evidence with cultural rhetoric, as seen in the increasing frequency of pseudoscientific claims made by public figures, such as assertions that mythological deities were the first space travellers.
  • In a world defined by artificial intelligence, data science, and global collaboration, India’s academic strength depends on rigorous, evidence-based education, not revivalist sentiment.
  • Scientific reasoning must remain the cornerstone of democratic progress, ensuring that national pride complements, rather than compromises, intellectual honesty.

Conclusion

  • The debate over the UGC’s mathematics curriculum reveals a fundamental tension between cultural recognition and intellectual integrity.
  • Acknowledging India’s mathematical heritage is essential, but embedding it within a nationalist framework threatens to undermine the universal, collaborative nature of knowledge. Mathematics belongs to humanity, not to any single civilisation.
  • Education should empower students to think critically and globally, nurturing pride in heritage without sacrificing scientific objectivity.
  • Only through such balance can India’s educational reforms truly strengthen both national identity and intellectual freedom.
Editorial Analysis

Mains Article
29 Oct 2025

A Quip That Stings but Also Inspires

Context

  • The 2025 Nobel Prize in Economics, awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt, marks a turning point in the understanding of innovation, growth, and history.
  • At its heart lies a quiet irony: while modern economics celebrates data and precision, the enduring foundations of progress are built through historical understanding and institutional learning.
  • Mokyr’s quip that economic historians don’t win the prize exposes a deeper truth, prosperity depends less on mathematical models than on the social machinery that carries knowledge, develops experimentation, and restrains privilege.
  • Growth, in this view, is a social technology before it is a mechanical one.

The Social Foundations of Growth

  • Modern prosperity emerged not from a single invention or genius, but from civic institutions that enabled useful knowledge to travel.
  • Coffeehouses, printing presses, guilds, dissenting congregations, and learned societies formed the networks through which ideas circulated and recombined.
  • Apprenticeships, shop-floor heuristics, and rule-of-thumb engineering created a shared code of practical know-how.
  • Where markets were contestable and cities porous, these networks incubated capability. Where institutions ossified, they blocked entry and throttled innovation.
  • Schumpeter’s creative destruction operates only when this social infrastructure allows new ideas to challenge entrenched power.
  • Economic growth, therefore, depends as much on the openness of civic life as on the brilliance of invention.

Dynamic Innovation and Institutional Design

  • The work of Aghion and Howitt gives formal shape to this historical reality.
  • Their Schumpeterian growth framework shows how innovation rents attract entrepreneurs, how incumbents defend their positions through lobbying or litigation, and how policy choices decide whether competition fuels progress or stifles it.
  • Innovation thrives when experimentation is cheap and entry easy, and it falters when institutions harden into monopolies.
  • Together, Mokyr, Aghion, and Howitt reveal that innovation is sustained not by privilege but by process.
  • The vitality of an economy lies in protecting the engine of experimentation, not the owners of the last engine.

Economic History as a Living Laboratory

  • Economic history offers the long view needed to understand how societies learn, adapt, and institutionalize progress.
  • Its archives reveal incentives and behaviours that cannot be captured by regressions or identification strategies alone.
  • Douglass North and Robert Fogel demonstrated that institutions and counterfactual reasoning belong at the core of economics.
  • Claudia Goldin’s work traced how historical patterns of women’s labour participation shaped modern markets. Simon Kuznets’ national accounts were inseparable from the historical measurement of economies.
  • Economic history, far from being a sideshow, is the laboratory where culture, rules, and technology interact. It illuminates how societies build the frameworks that turn invention into sustained prosperity.

Modern Challenges Through a Historical Lens

  • AI and jobs
    • Technology shocks do not simply destroy employment; they reprice skills and reorganize tasks.
    • The critical issue is transition management, determining who bears the cost of adaptation.
    • Policies that ensure portable benefits, skills bridges, interoperable systems, and data portability protect workers and entry, not incumbents.
  • Public debt
    • The Dutch and British states achieved credibility not through austerity but through institutional capacity, reliable taxation, representative government, and enforceable contracts.
    • Fiscal sustainability is institutional, not arithmetic.
  • Inequality
    • History exposes how guilds defended privilege under the guise of quality control. True reform lies in contestability, lowering barriers so that capability, not pedigree, determines success.
    • In the digital age, open standards, pro-competitive procurement, and limits on self-preferencing echo the role once played by coffeehouses and cheap pamphlets in spreading opportunity.

Technology, Time, and the Caution of History

  • Nick Crafts’ reinterpretation of the British Industrial Revolution shows that general-purpose technologies, steam, ICT, AI, appear late in productivity data because they demand complementary investments and institutional adaptation.
  • Jared Diamond’s broader lens reminds us that technology unfolds within geographical and ecological constraints.
  • Economic history tempers euphoria with realism and despair with patience, revealing that progress is cumulative, uneven, and deeply embedded in its social context.

Conclusion

  • Recognition often arrives late, both for prizes and productivity, yet what endures is not acclaim but the machinery of openness that keeps innovation alive.
  • Prosperity is the exception, not the norm. It survives only where societies argue productively, adapt institutionally, and defend contestability against the drift of privilege.
  • The true legacy of Mokyr’s insight is not a celebration of the past, but a warning for the present: the wealth of nations depends on how fiercely they protect the process of discovery and diffusion.
  • History’s verdict is clear, progress must be argued for, institutionally and incessantly.
Editorial Analysis

Oct. 28, 2025

Mains Article
28 Oct 2025

PM-SHRI Schools Row: Understanding the Scheme and Kerala’s Opposition

Why in news?

The PM-SHRI schools scheme has sparked a fresh political controversy in Kerala, as the CPI(M)-led LDF government reversed its earlier stance and agreed to implement the scheme by signing an MoU with the Centre.

The move has faced criticism from both the opposition and within the LDF itself, with the CPI objecting that it was not consulted and reminding that the Left had previously opposed the National Education Policy (NEP) 2020, under which the scheme operates.

What’s in Today’s Article?

  • PM-SHRI Schools: Model Institutions for Implementing NEP 2020
  • States Implementing the PM-SHRI Scheme
  • Conditions for Implementing the PM-SHRI Scheme

PM-SHRI Schools: Model Institutions for Implementing NEP 2020

  • Approved in 2022, the PM Schools for Rising India (PM-SHRI) scheme aims to develop 14,500 schools across the country as model institutions showcasing the core principles of the National Education Policy (NEP) 2020.
    • So far, 13,070 schools have been selected, including 1,533 Kendriya Vidyalayas and Navodaya Vidyalayas.
  • The scheme covers existing government and local body schools at the elementary, secondary, and senior secondary levels.
  • These schools are expected to adopt innovative learning methods such as art-based and toy-based learning, introduce vocational education, and establish skill labs.
  • They must ensure foundational literacy and numeracy, zero dropouts, and improved learning outcomes.
  • Curriculum will follow either the National Curriculum Framework (NCF) or the State Curriculum Framework (SCF) aligned with NEP 2020.
  • Schools will be assessed through a School Quality Assessment Framework, with funding linked to their performance.
  • The scheme follows a 60:40 funding ratio between the Centre and states, aiming to transform schools into exemplars of modern, inclusive, and competency-based education.

States Implementing the PM-SHRI Scheme

  • With Kerala now agreeing to join, most Indian states have come on board with the PM Schools for Rising India (PM-SHRI) scheme.
  • Congress-ruled states such as Karnataka, Telangana, and Himachal Pradesh have implemented the scheme, along with AAP-ruled Punjab and Delhi, which had earlier relented after the Education Ministry stopped Samagra Shiksha funds.
  • States Opposing the Scheme
    • Only Tamil Nadu and West Bengal continue to hold out.
    • West Bengal objects to prefixing “PM-SHRI” to school names despite sharing project costs.
    • Tamil Nadu opposes the scheme because it implies adopting the National Education Policy (NEP) 2020 “in entirety.”

Conditions for Implementing the PM-SHRI Scheme

  • The implementation of the PM-SHRI scheme is closely linked to the Centre’s Samagra Shiksha programme, which shares the same 60:40 funding ratio between the Centre and states.
  • Link Between PM-SHRI and Samagra Shiksha Funding
    • The Centre has made PM-SHRI participation a condition for the release of Samagra Shiksha funds, which support key education initiatives such as:
      • Implementation of the Right to Education Act (RTE),
      • Provision of uniforms and textbooks for government school students,
      • Support for children with disabilities, and
      • Reimbursements to private schools for EWS admissions.
    • States that refused to implement PM-SHRI — including Kerala, Tamil Nadu, and West Bengal — did not receive Samagra Shiksha funds.
  • Kerala’s Funding Shortfall
    • Kerala has received no central funds for Samagra Shiksha in 2024-25 and 2025-26, and only a partial allocation in 2023-24, amounting to about ₹1,150 crore.
    • The state has used its own share of funds to cover essential expenses like RTE entitlements, textbooks, and salaries, but scholarships, uniforms, and school grants remain pending.
  • Signing the MoU and NEP Clause
    • To access funds, Kerala recently signed an MoU with the Centre, which requires states to implement the NEP 2020 in entirety.
    • However, Kerala’s General Education Minister clarified that the state will adopt only selective provisions of NEP, retaining control over its curriculum and textbooks while complying with central funding norms.
Social Issues

Mains Article
28 Oct 2025

India’s Pulses Push: Driving Aatmanirbharta in Food Security

Why in news?

The Ministry of Agriculture has issued operational guidelines to launch the Mission for Aatmanirbharta in Pulses from the current rabi season, aiming to boost domestic pulses production and reduce import dependence.

What’s in Today’s Article?

  • Mission for Aatmanirbharta in Pulses: India’s 6-Year Plan for Self-Reliance
  • Current Status of Pulses Cultivation and Production in India
  • Significance of the Mission for Aatmanirbharta in Pulses
  • Focus on Tur, Urad, and Masoor in the Pulses Mission
  • How the New Pulses Mission Differs from the Earlier NFSNM Scheme?
  • Implementation Strategy of the Pulses Mission

Mission for Aatmanirbharta in Pulses: India’s 6-Year Plan for Self-Reliance

  • Launched by PM Modi on October 11, and first announced by Finance Minister Nirmala Sitharaman in the Union Budget 2025-26, the Mission for Aatmanirbharta in Pulses aims to make India self-sufficient in pulse production.
  • The six-year mission (2025-26 to 2030-31) has a total outlay of ₹11,440 crore. Its key focus areas include:
    • Developing and promoting climate-resilient, high-protein pulse varieties,
    • Enhancing productivity and expanding the area under pulses,
    • Improving post-harvest storage and management, and
    • Ensuring fair and remunerative prices for farmers.
  • By 2030-31, the mission targets:
    • a 45% rise in production — from 242 lakh metric tonnes in 2023-24 to 350 lakh metric tonnes;
    • a 13% expansion in area (from 275 to 310 lakh hectares) and
    • a 28% boost in yield (from 881 kg/ha to 1,130 kg/ha).

Current Status of Pulses Cultivation and Production in India

  • During 2023-24, pulses were cultivated over 275 lakh hectares across India.
  • Rajasthan had the largest share with 54.67 lakh hectares, followed by Madhya Pradesh (51 lakh ha), Maharashtra (44 lakh ha), and Uttar Pradesh (30 lakh ha).
  • In terms of production, Madhya Pradesh led with 59.74 lakh metric tonnes, followed by Maharashtra (40 lakh MT), Rajasthan (33 lakh MT), and Uttar Pradesh (31 lakh MT), together contributing a major share of the total 242 lakh metric tonnes produced nationwide.
  • Nearly half of the total cultivated area and over 60% of production occur during the rabi season.
  • Among crops, gram (chana) dominates both in area and output, mainly grown in Maharashtra, Madhya Pradesh, Rajasthan, and Uttar Pradesh.
  • Moong ranks second, largely cultivated in Rajasthan and Madhya Pradesh, followed by tur (arhar) grown in Karnataka, Maharashtra, and Uttar Pradesh.
  • Urad is mainly produced in Madhya Pradesh, Uttar Pradesh, Tamil Nadu, and Maharashtra, while masoor (lentil) is concentrated in Madhya Pradesh and Uttar Pradesh.

Significance of the Mission for Aatmanirbharta in Pulses

  • India is both the world’s largest producer and consumer of pulses, yet domestic output falls short of demand.
  • Therefore, India is forced to rely on imports from Myanmar, Mozambique, Tanzania, Australia, and Canada — a trend that has grown in recent years.
  • According to NITI Aayog’s report, India’s pulses demand is projected to reach 268 lakh metric tonnes by 2030 and 293 lakh metric tonnes by 2047. To bridge this gap, boosting domestic production is essential.
  • Currently, India’s average yield (881 kg/hectare) lags far behind Canada (2,200 kg/ha) and China (1,815 kg/ha).
  • The mission, therefore, seeks to raise productivity to 1,130 kg/hectare, making India self-reliant in pulses and reducing import dependence.

Focus on Tur, Urad, and Masoor in the Pulses Mission

  • The Mission for Aatmanirbharta in Pulses prioritises tur (arhar), urad, and masoor (lentil) as these three crops together account for about 34% of India’s total pulses area and make a major contribution to national production.
  • However, a large yield gap persists in these crops, which the mission aims to close through targeted interventions.
  • Out of the proposed 35 lakh hectare expansion, about 9 lakh hectares will be added for tur, mainly in Karnataka, Maharashtra, Uttar Pradesh, Gujarat, and Jharkhand, along with new cultivation in the Northeast.
  • Urad cultivation will expand by using rice fallow lands in Uttar Pradesh, Andhra Pradesh, and Maharashtra, while masoor will be promoted in rice fallows of West Bengal, Bihar, and Chhattisgarh.

How the New Pulses Mission Differs from the Earlier NFSNM Scheme?

  • The Mission for Aatmanirbharta in Pulses replaces and expands upon the pulses component of the National Food Security and Nutrition Mission (NFSNM), introducing broader interventions and stronger farmer support.
  • Under the new framework, assistance for Front Line Demonstrations (FLDs) has been increased to ₹10,000 per hectare, up from ₹9,000 earlier, to promote advanced agricultural technologies.
  • A key change is the provision for 100% procurement of tur, urad, and masoor by NAFED and NCCF under the Price Support Scheme (PSS) of PM-AASHA for the next four years.
    • PM-AASHA, which stands for Pradhan Mantri Annadata Aay Sanrakshan Abhiyan, is an integrated scheme by the Indian government to ensure farmers receive remunerative prices for their produce and to make essential commodities affordable for consumers.
  • Procurement will be done directly from registered farmers through formal agreements, verified using Aadhaar-based biometric or facial authentication. Procurement of other pulses will continue as per regular PSS norms.

Implementation Strategy of the Pulses Mission

  • The Mission for Aatmanirbharta in Pulses will adopt a cluster-based approach to strengthen the entire agriculture value chain — from inputs to markets.
  • Each cluster will cover a minimum of 10 hectares (or 2 hectares in hilly and northeastern regions).
  • These clusters and districts will be chosen from potential pulses-growing areas across India.
  • Selection will follow NITI Aayog’s classification of districts —
    • High Area–High Yield (HA–HY)
    • High Area–Low Yield (HA–LY)
    • Low Area–High Yield (LA–HY)
    • Low Area–Low Yield (LA–LY)
  • Priority will also be given to:
    • Rice fallow, rainfed, and watershed areas,
    • Districts under PM Dhan-Dhaanya Krishi Yojana,
    • Aspirational, border, and Left Wing Extremism (LWE)-affected districts,
    • Areas under Adarsh Gram Yojana,
    • Regions in the Northeast, Himalayan states, islands, and other backward areas,
    • And any other region approved by the State Steering Committee or notified by the Centre.
Economics

Mains Article
28 Oct 2025

Need for Preserving Dogri Language

Why in the News?

  • A recent study has highlighted the sharp decline in the use and literacy of the Dogri language in Jammu and Kashmir, raising concerns over the erosion of regional linguistic heritage despite its official recognition.

What’s in Today’s Article?

  • Dogri Language (Background, Cultural & Linguistic Significance, Causes Behind Decline, Revival Strategy, etc.)

Preserving Dogri Language: Reviving India’s Endangered Linguistic Heritage

  • The Dogri language, once a vibrant symbol of Jammu’s cultural identity, is now at a critical juncture.
  • Despite being recognised as one of the 22 official languages of India and one of the five official languages of Jammu and Kashmir, the language is experiencing a gradual erosion from public life, particularly among the younger generation and urban populations.
  • According to a recent study, the decline of Dogri reflects a broader global trend of linguistic homogenisation, where smaller regional and indigenous languages are disappearing under the dominance of global and national tongues.
  • India, as per UNESCO’s report, leads the world in the number of dialects at risk of extinction, having lost over 220 languages in the past five decades.

The Cultural and Linguistic Significance of Dogri

  • Dogri belongs to the Indo-Aryan branch of the Indo-European language family and is mainly spoken in the Jammu region of Jammu and Kashmir, parts of Himachal Pradesh, and by diaspora communities across North India.
  • It is written in both Devanagari and Takri scripts, and is deeply embedded in the Dogra culture, expressed through its literature, folklore, crafts, and oral traditions.
  • The inclusion of Dogri in the Eighth Schedule of the Constitution in 2003 and its recognition under the Jammu and Kashmir Official Languages Act, 2020, marked significant milestones in its journey.
  • However, linguistic recognition on paper has not translated into functional visibility. Dogri remains largely absent from school curricula, administrative communication, and media content.

Causes Behind the Decline

  • The decline of Dogri in Jammu and surrounding regions can be understood through three interlinked factors: policy neglect, generational disconnect, and urban influence.
  • Policy Gaps and Limited Institutional Support
    • Dogri received formal recognition much later than other regional languages such as Urdu and Hindi.
    • This delay resulted in a lack of infrastructure for linguistic promotion, from teacher training to the development of textbooks and cultural programming.
    • A survey conducted across 20 locations in the Jammu region revealed that 48% of respondents believed the government had failed to provide adequate support for Dogri’s inclusion in education and public discourse.
    • 43% said the language offered little economic relevance, which disincentivised younger generations from learning it.
  • Generational Disconnect
    • Dogri’s decline is particularly visible across generations. Respondents above 60 years of age showed full proficiency in speaking and moderate reading and writing skills, while the 21-40 age group showed near-zero literacy in Dogri.
    • Among those under 20 years of age, no proficiency in reading or writing Dogri was recorded, signalling a complete breakdown in intergenerational transmission.
  • The Rural-Urban Divide
    • The linguistic divide between rural and urban populations further compounds the issue.
    • While 56% of rural respondents said they actively speak Dogri, only 45% of urban respondents reported the same.
    • Writing proficiency was even lower, 15% in rural areas and merely 4% in urban settings.

Broader Linguistic Context in India

  • Dogri’s decline is part of a wider linguistic crisis in India.
  • The People’s Linguistic Survey of India (PLSI) estimates that nearly half of India’s 780 languages could vanish in the next 50 years if current trends persist.
  • Factors such as migration, economic aspirations, and cultural homogenisation have weakened local linguistic ecosystems.
  • Experts argue that the hegemony of English as the academic and aspirational language has pushed regional languages to the periphery.
  • This has created a cultural paradox where multilingualism thrives superficially, but linguistic diversity weakens structurally.

Revival Strategies and the Way Forward

  • Reviving Dogri requires a multi-pronged cultural and policy approach that focuses on education, awareness, and community engagement.
  • Integration into Education
    • Dogri must be introduced at the primary and secondary education levels, ensuring that children develop early familiarity with the language.
    • The National Education Policy (NEP) 2020 already advocates the use of mother tongues as mediums of instruction, a provision that could benefit Dogri if implemented effectively in Jammu’s schools.
  • Digital and Media Promotion
    • Dogri’s visibility can be enhanced through digital archives, online courses, and media content in Dogri, including films, radio shows, and social media platforms.
    • The Dogri Sanstha and the Sahitya Akademi have made notable contributions, but a sustained state-backed effort is necessary to expand their reach.
  • Cultural Incentives and Employment Opportunities
    • Language preservation efforts must tie linguistic skills to economic and cultural incentives.
    • Government jobs, tourism initiatives, and creative industries could reward bilingualism in Dogri and Hindi, reinforcing the idea that preserving one’s language can have practical advantages.
  • Census and Linguistic Data Updates
    • The absence of updated linguistic data due to the delay in the 2021 Census has hindered precise policy formulation.
    • Reviving census-based linguistic mapping is essential to identify endangered dialects and allocate funding accordingly.
History & Culture

Mains Article
28 Oct 2025

Special Intensive Revision (SIR) - Election Commission Launches SIR of Electoral Rolls in 12 States and UTs

Why in News?

  • The Election Commission of India (ECI) has initiated a Special Intensive Revision (SIR) of electoral rolls in 12 states and Union Territories, covering 51 crore electors, to ensure the purity and accuracy of electoral rolls.
  • This is the first nationwide SIR since 2002–2005, aimed at eliminating duplicate, migrated, or ineligible entries and verifying voter eligibility.

What’s in Today’s Article?

  • Background and Significance
  • Coverage and Implementation
  • Operational Details
  • Special Cases and Administrative Coordination
  • Challenges and Controversies
  • Way Forward
  • Conclusion

Background and Significance:

  • Evolution of SIR:
    • The ECI’s order (June 2025) mandated all registered electors to fill new enumeration forms, while those added after the last intensive revision (2002–2005) must submit eligibility and citizenship-related documents.
    • The first phase began in Bihar, where Assembly elections are due, serving as a pilot model for future nationwide implementation.
  • Constitutional and legal basis:
    • The ECI cites Article 326 of the Constitution — which restricts voting rights to Indian citizens aged 18 and above — to justify verifying eligibility (not citizenship cancellation).
    • The process is governed by the Representation of the People Act, 1950.
    • This ensures free and fair elections, one of the basic features of the Constitution.
  • Need for SIR:
    • Political parties have repeatedly complained about the “impurity” in electoral rolls due to -
      • Migration and multiple registrations.
      • Non-removal of deceased voters.
      • Wrongful inclusion of non-citizens.
    • The SIR had been conducted 8 times since 1951 and the last intensive revision was conducted between 2002–2005, followed by only summary revisions.

Coverage and Implementation:

  • States and UTs involved: The SIR will be conducted in A&N Islands, Chhattisgarh, Goa, Gujarat, Kerala, Lakshadweep, MP, Puducherry, Rajasthan, Tamil Nadu, UP, and West Bengal.
  • Key dates:
    • Enumeration period: Begins November 4, 2025.
    • Draft roll publication: December 9, 2025.
    • Final roll publication: February 7, 2026.
  • Excluded state: Assam is excluded due to ongoing NRC process and distinct Citizenship Act provisions.

Operational Details:

  • Enumeration process:
    • 5.33 lakh Booth Level Officers (BLOs) to conduct house-to-house verification.
    • All electors must submit enumeration forms by December 4 to remain on the draft roll.
    • Eligibility proof required for those not traceable to 2002–2005 SIR rolls.
  • Documents accepted:
    • 13 types of documents, including Aadhaar and extracts from Bihar’s SIR roll.
    • Aadhaar to be used only for identity verification, not citizenship proof.
    • Electors born after July 1, 1987 must submit proof of parents’ eligibility.

Special Cases and Administrative Coordination:

  • Bihar’s experience:
    • Bihar’s SIR concluded on September 30, 2025, with electors reducing by 6% (to 7.42 crore).
    • No appeals were filed against Electoral Registration Officers’ (ERO) decisions.
    • This model will guide the second phase of SIR.
  • State-specific considerations:
    • Urban areas like Delhi and Chandigarh have low linkage with old rolls due to migration.
    • Weather conditions and local body elections have also influenced state selection and timelines.

Challenges and Controversies:

  • Legal challenge: The Supreme Court is hearing petitions questioning -
    • ECI’s authority to verify citizenship of registered voters.
    • The procedure adopted in Bihar’s SIR.
  • Political opposition:
    • West Bengal CM termed it an “NRC through the backdoor”.
    • However, ECI maintains that constitutional bodies will carry out their respective roles independently.
  • Administrative: Tight timelines and document verification may burden BLOs and EROs.
  • Social: Risk of disenfranchisement if citizens lack documentary proof.

Way Forward:

  • Transparency and technology: Use of the Voter Portal to help citizens trace old roll entries.
  • Electoral integrity: Purified rolls could reduce bogus voting and increase public trust.
  • Awareness campaigns: To ensure mass participation and timely documentation.
  • Data synchronization: Integration of digital databases to prevent duplication.
  • Periodic SIRs: Institutionalizing regular intensive revisions to maintain credibility.
  • Stakeholder engagement: Institutionalised consultations with political parties, civil society, and local administration before rollout.
  • Legal clarity: Seek SC guidance to define ECI’s powers under Article 326 and the RPA, 1950.
  • Document access facilitation: Simplify and digitise the process of submitting eligibility proofs, especially in rural and migrant-heavy areas.
  • Phased implementation: Adopt Bihar’s learnings for gradual state-by-state rollout instead of a single nationwide push.

Conclusion:

  • The SIR of electoral rolls marks a major administrative reform to restore public trust in the electoral process.
  • By verifying eligibility and updating voter lists, the EC aims to strengthen democratic legitimacy.
  • However, political concerns and legal scrutiny highlight the delicate balance between ensuring voter purity and protecting voter rights.
Polity & Governance

Mains Article
28 Oct 2025

A Start for North-South Carbon Market Cooperation

Context

  • The European Union (EU) and India’s New Strategic EU–India Agenda, announced on September 17, 2025, marks a significant milestone in their evolving partnership.
  • Structured around five key pillars; prosperity and sustainability, technology and innovation, security and defence, connectivity and global issues, and cross-cutting enablers, the agenda seeks to deepen collaboration across economic and geopolitical domains.
  • Among its most consequential features lies a seemingly technical but transformative proposal: linking India’s Carbon Market (ICM) with the EU’s Carbon Border Adjustment Mechanism (CBAM).

The Promise of the Linkage and the Structural Weakness of India’s Carbon Market

  • The Promise of the Linkage
    • At its core, the proposed linkage between the Indian Carbon Market and CBAM offers a pragmatic solution to a pressing challenge: the risk of double carbon penalties for Indian exporters.
    • Under CBAM, the EU imposes a carbon levy on imports based on the embedded emissions in goods, ensuring a level playing field with domestic producers who already pay carbon prices under the EU Emissions Trading System (ETS).
    • By allowing carbon costs paid within India to be deducted from CBAM charges at the EU border, exporters would be spared the unfair burden of dual payments.
    • This arrangement could incentivise early decarbonisation, align domestic emissions reductions with global trade competitiveness, and reflect a rare case of climate justice in practice, recognising rather than penalising developing country efforts in carbon pricing.
  • The Structural Weakness of India’s Carbon Market
    • Yet this vision rests on a shaky institutional foundation. India’s Carbon Credit Trading Scheme (CCTS), commonly called the Indian Carbon Market (ICM), remains underdeveloped compared to the EU’s mature ETS.
    • While the EU ETS has a two-decade track record of auction mechanisms, strict emission caps, and independent verification, India’s system is fragmented and experimental.
    • Its current credits often rely on project-based offsets or efficiency improvements rather than binding absolute emission caps.
    • For CBAM’s tonne-for-tonne accounting to work credibly, the EU must trust that India’s carbon credits represent verifiable emission reductions.
    • However, the absence of strong regulators, transparent registries, and compliance enforcement undermines that trust.
    • Unless India upgrades its carbon market to a compliance-grade mechanism with legal enforceability, the EU is unlikely to accept Indian carbon prices as valid deductions.

The Carbon Price Gap and Political Economy Risks

  • Even if institutional reforms succeed, a major price disparity The EU ETS carbon price fluctuates between €60 and €80 per tonne, while India’s nascent market trades at €5 to €10 per tonne.
  • Without price parity or alignment, EU regulators will deduct only minimal amounts, undermining the intended relief for exporters.
  • This creates serious political and industrial risks in India. Exporters could face double burdens, paying both the domestic compliance cost and the full CBAM levy, leading to industrial resistance and pressure to dilute carbon rules.
  • The resulting political economy tension, between industrial competitiveness and environmental ambition, is a central obstacle.
  • Possible solutions such as sectoral carbon contracts or a negotiated carbon price floor are technically feasible but politically delicate, requiring long-term coordination between New Delhi and Brussels.

The Geopolitical Contradictions of CBAM and the Way Forward

  • The Geopolitical Contradictions of CBAM
    • Beyond economics, the CBAM–ICM linkage raises geopolitical and sovereignty concerns.
    • India, along with other developing nations, has opposed CBAM at the World Trade Organization (WTO) and in international climate dialogues, labelling it unilateral and protectionist.
    • By agreeing to integrate its carbon market with CBAM, India risks legitimising a mechanism it has formally resisted.
    • This contradiction could trigger future disputes: if the EU deems India’s carbon prices insufficient, exporters may face partial or full CBAM penalties, prompting political escalation or legal challenge.
  • The Way Forward: Toward a Cooperative Future
    • Despite its challenges, the CBAM–ICM linkage holds transformative potential.
    • If implemented successfully, it could become a global model for North–South carbon market cooperation.
    • It would protect Indian exporters, accelerate industrial decarbonisation, and strengthen EU–India climate diplomacy.
    • Achieving this outcome requires a phased and transparent approach, where India strengthens its market integrity and the EU provides technical and policy support.
    • Only through collaborative design, clear equivalence criteria, and joint monitoring mechanisms can the two sides translate ambition into action.

Conclusion

  • The proposed linkage between India’s carbon market and the EU’s CBAM represents both a visionary step toward global carbon fairness and a minefield of practical and political challenges.
  • Its success depends on reconciling divergent regulatory standards, closing price gaps, and navigating geopolitical sensitivities.
  • Without careful coordination, this breakthrough risks remaining a symbolic gesture, a promising clause buried in diplomacy.
  • But if India and the EU commit to mutual trust, transparency, and shared responsibility, this initiative could redefine global climate cooperation and set a precedent for equitable transitions in the 21st century.
Editorial Analysis

Mains Article
28 Oct 2025

Big Tech’s Contempt for Indian Public Health

Context

  • Drug advertising has been a matter of public concern in India since 1927, when Sir Haroon Jaffer raised the issue of control of the craze for medicinal drugs in the Council of State.
  • The concern eventually led to the Drugs and Magic Remedies (Objectionable Advertisements) Act (DMRA), 1954, which prohibits advertisements for drugs claiming to cure or prevent a list of 54 diseases and medical conditions.
  • The purpose of this law was to protect citizens from misleading claims and pseudo-medical treatments.
  • However, the digital age has transformed the advertising landscape. The rise of social media, search engines, and online marketplaces has created an environment where the spirit of the DMRA is routinely violated.

The Evolution of Drug Advertising: From Legislative Vigilance to Digital Evasion

  • The DMRA was crafted at a time when government oversight could effectively target print and broadcast media.
  • In the digital era, this model no longer holds. Online advertising operates across borders, managed by algorithms and corporations based outside India.
  • As a result, unverified medical advertisements, especially those promoting “ayurvedic, homeopathic, or miracle” cures, have multiplied on the Internet.
  • Searches for products such as ayurveda blood pressure tablets or homeopathy diabetes cures routinely display paid promotions under sponsored tags.
  • Many of these advertisements claim to treat serious conditions like diabetes and cancer, violating the DMRA’s explicit prohibitions.
  • The situation is made worse by promotional videos featuring spiritual figures who claim to cure all diseases using traditional medicine.
  • Such practices have turned online platforms into powerful vehicles for misinformation that can endanger public health.

Double Standards in Global Corporate Behaviour and Legal Evasion

  • Double Standards in Global Corporate Behaviour
    • A striking contrast exists between the conduct of technology companies in India and their behaviour in the United States. In the U.S., health-related advertisements are tightly controlled.
    • Platforms employ pre-screening systems and adhere to detailed content guidelines to ensure compliance with laws enforced by agencies such as the Food and Drug Administration (FDA).
    • False or unapproved therapeutic claims are swiftly removed, and violations invite criminal prosecution.
    • In India, the same companies apply no such rigour. Their advertising policies make no mention of the DMRA or its prohibitions, enabling advertisers to promote unverified medical products.
    • This double standard exposes a clear hierarchy in corporate compliance. Companies obey strong regulations in Western nations but neglect similar responsibilities in developing ones.
  • Legal Evasion and Institutional Weakness
    • Technology companies often justify their inaction by claiming intermediary status under Indian law, a designation that shields them from liability for user-generated content.
    • Yet this argument collapses in the context of paid advertising.
    • Advertisements are not user-generated; they are actively solicited, approved, and monetised by the platforms themselves. Contracts are signed, payments are accepted, and advertising slots are deliberately allocated.
    • These are the actions of publishers, not passive intermediaries.
    • Regulatory weakness compounds the problem. The Public Interest Litigation (PIL) filed in 2008 over violations of the Pre-Conception and Pre-Natal Diagnostic Techniques (Prohibition of Sex Selection) Act, 1994 (PNDT) offers a telling example.
    • Accountability is further weakened by the legal separation between Indian subsidiaries and their U.S.-based parent companies.

The Way Forward: Reclaiming Sovereignty through Reform

  • Addressing these failures requires firm regulatory and legal reform.
  • Criminal proceedings against responsible managerial personnel would mark a decisive step toward enforcement.
  • Mandating that key decision-makers for advertising and content operations in India be citizens based in India would ensure accountability to domestic courts and laws.
  • Such measures would align India’s digital governance with its sovereign right to protect public health.
  • Another necessary reform is the conditional revocation of intermediary immunity.
  • Platforms that disregard laws like the DMRA should not benefit from the protections granted to neutral intermediaries.
  • Immunity must be contingent on compliance with Indian law. Without this condition, the privilege becomes an instrument of impunity rather than innovation.

Conclusion

  • The history of India’s struggle against misleading medical advertisements, beginning in 1927 and codified in 1954, reveals a continuous tension between public welfare and commercial exploitation.
  • The digital era has intensified this conflict, as foreign corporations exploit legal loopholes and weak enforcement to profit from misinformation.
  • The unchecked spread of unverified health claims not only undermines the DMRA but also endangers millions who rely on such remedies in good faith.
  • Restoring accountability demands a reassertion of legal authority, the creation of transparent enforcement mechanisms, and the political will to treat violations as serious crimes rather than administrative oversights.
Editorial Analysis

Oct. 27, 2025

Mains Article
27 Oct 2025

Western Ghats Under Threat: Why IUCN Has Raised the Red Flag

Why in news?

The IUCN has classified India’s Western Ghats, along with Manas National Park (Assam) and Sundarbans National Park (West Bengal), as sites of “significant concern” in its World Heritage Outlook 4 report.

What’s in Today’s Article?

  • IUCN World Heritage Outlook
  • IUCN’s Global Conservation Assessment
  • India’s Conservation Outlook: Mixed Picture for World Heritage Sites
  • Why the Western Ghats Are Becoming Increasingly Fragile?
  • A Glimmer of Hope for Global Biodiversity Conservation

IUCN World Heritage Outlook

  • The IUCN World Heritage Outlook is the only global assessment that evaluates all natural and mixed World Heritage sites every 3–5 years.
  • It tracks their conservation status, identifies threats, and highlights best management practices to enhance long-term preservation.
  • Implemented by the IUCN World Heritage Team and World Commission on Protected Areas (WCPA), it provides reliable, transparent, and independent data about the state and prospects of these globally significant natural sites.
  • This initiative supports stakeholders in aligning conservation strategies with the Kunming-Montreal Global Biodiversity Framework (KM-GBF) goals for 2030.

IUCN’s Global Conservation Assessment

  • The IUCN’s World Heritage Outlook 4 report identifies climate change, tourism, invasive species, and road development as the four major threats to biodiversity loss in South Asia.
  • It categorises sites as “good,” “good with some concerns,” “significant concern,” and “critical,” reflecting their conservation status and urgency of action.
  • Based on four assessment cycles since 2014, the report finds that 40% of World Heritage sites face conservation concerns, with climate change emerging as the most pervasive threat and a decline in the number of sites showing positive conservation outlooks for the first time.

India’s Conservation Outlook: Mixed Picture for World Heritage Sites

  • The IUCN World Heritage Outlook 4 (2025) shows a decline in global conservation health — only 57% of 228 sites assessed now have a positive outlook, down from 63% in 2014, 2017, and 2020.
  • In Asia, climate change has replaced hunting as the most serious threat, followed by tourism, invasive species, and, for the first time, roads and railways, which are now among the top five dangers to natural heritage.
    • Other growing threats include forest fires, encroachment, illegal logging, waste disposal, and road construction.
  • In India, four sites are rated “good with some concerns” — The Great Himalayan National Park, Kaziranga, Keoladeo, and Nanda Devi–Valley of Flowers — while Khangchendzonga National Park (Sikkim) remains the only site rated “
  • The Western Ghats, though globally renowned for their ancient ecosystems and 325 threatened species, including the Nilgiri tahr, are now listed under “significant concern”.
  • This highlights urgent conservation needs for one of the world’s richest biodiversity hotspots.

Why the Western Ghats Are Becoming Increasingly Fragile?

  • The Western Ghats, one of the world’s richest biodiversity hotspots, face escalating threats from hydropower projects, tourism, plantations, and climate change.
  • Projects like the Sillahalla Pumped Storage Hydroelectric Project in the Nilgiris involve dam construction across the Sillahalla and Kundah rivers, endangering forest ecosystems and river habitats.
  • Unregulated tourism has led to garbage accumulation, often eaten by wildlife such as elephants, aggravating human-animal conflict.
  • Commercial plantations are replacing natural forests, while invasive species like eucalyptus and acacia—introduced during colonial times—are spreading rapidly.
  • Climate change is driving species like the Nilgiri flycatcher and black-and-orange flycatcher to shift to higher altitudes due to rising temperatures.
  • Elsewhere, in the Sundarbans, salinity, pollution, over-extraction of resources, and sea level rise are eroding mangrove biodiversity and threatening iconic species like the swimming tigers.

A Glimmer of Hope for Global Biodiversity Conservation

  • Despite alarming trends, the IUCN report highlights positive examples of effective conservation and collaboration worldwide.
  • Global Conservation Successes
    • Seven sites in China, including the Badain Jaran Desert, Chengjiang Fossil Site, and Mount Huangshan, are recognised as “best protected and managed” areas.
    • Such examples show that focused policies and community involvement can reverse ecological decline.
  • A Call to Action
    • Though Natural World Heritage sites cover less than 1% of Earth’s surface, they nurture over 20% of global species richness, hosting 75,000 plant species and 30,000 animal species — making them vital for ecological stability.
    • The report aligns with the Kunming-Montreal Global Biodiversity Framework, urging nations to halt biodiversity loss through better integration of nature and culture in conservation.
    • Hope lies in local participation and youth engagement, as seen in Mount Wuyi (China) and Sinharaja Forest Reserve (Sri Lanka), where community-driven stewardship has improved protection and awareness.

Conclusion

Described as a “guide for action”, the IUCN’s 10-year analysis serves as a litmus test for conservation efforts — reminding nations that coordinated global action can still secure the planet’s most precious ecosystems.

Environment & Ecology

Mains Article
27 Oct 2025

Foreign Universities in India: Why and What’s Next

Why in news?

UK Prime Minister Keir Starmer’s recent visit to India underscored the growing international interest in India’s higher education sector. His 125-member delegation included 14 university vice-chancellors, highlighting education as a key area of cooperation.

The initiative stems from India’s National Education Policy (NEP) 2020, which allows top 100 global universities to set up campuses in India to promote the internationalisation of education.

In 2023, the University Grants Commission (UGC) issued detailed regulations for foreign universities to operate in India. Earlier, under the International Financial Services Centres Authority (IFSCA) regulations of 2022, foreign universities were allowed to open campuses in Gujarat’s GIFT City.

So far, 17 foreign universities have received approval to establish campuses in India, including three already operational in Mumbai, the NCR (Gurgaon, Noida, Greater Noida), Chennai, and Bengaluru.

The move is part of India’s effort to raise global academic standards, retain students who go abroad for higher studies, and position India as an international education hub.

What’s in Today’s Article?

  • Foreign Universities Setting Up Campuses in India
  • Courses and Offerings by UK Universities in India
  • Why UK Universities Are Expanding to India?
  • What UK Campuses in India Mean for Indian Students?

Foreign Universities Setting Up Campuses in India

  • Under the UGC’s 2023 regulations, foreign universities ranked within the top 500 globally can apply to establish campuses in India.
  • A total of 17 foreign universities have announced plans to set up campuses across India, most from the United Kingdom, with QS World University Rankings 2026 positions ranging from 51 to 558.
    • Many of these UK universities already operate international branch campuses in Malaysia, China, Qatar, and Greece, but for some, such as Bristol, the India campus will be their first abroad.
  • Six Australian universities have announced India plans. Among them:
    • Deakin University and University of Wollongong have already begun operations in GIFT City.
    • Italy’s Istituto Europeo di Design, a renowned fashion school, will set up in Mumbai.
  • From the United States, Illinois Tech will be the first to establish a campus in Mumbai, while globally, US universities lead with 84 overseas campuses, followed by UK institutions with 46.

Courses and Offerings by UK Universities in India

  • Most UK universities setting up campuses in India will offer:
    • Three-year undergraduate (UG) courses and one-year master’s (PG) programmes.
    • Popular disciplines include Business Management, Computer Science, Accounting and Finance, Economics, Data Science, and Artificial Intelligence (AI).
  • As per UGC regulations, these universities must ensure identical curriculum, academic quality, and assessment standards as their home campuses.
  • They can hire faculty from both India and abroad.
  • Campus Capacity and Expansion Plans
    • University of Bristol (Mumbai): To start with 250 students in the first year, growing to 2,500. Faculty will be a mix of Indian and Bristol-based staff.
    • University of Liverpool (Bengaluru): Capacity for 2,500 students by 2030.
    • University of Southampton (Gurgaon): Began in 2025 with 140 students, aiming to grow to 5,500 in the coming years.
    • Tuition fees are significantly lower than studying in the UK — roughly half the cost.
  • The new UK campuses in India aim to offer world-class, globally recognised degrees at more affordable costs, making international-quality education accessible to Indian students without the burden of overseas expenses.

Why UK Universities Are Expanding to India?

  • During UK PM Keir Starmer’s visit, a joint statement highlighted the “explosion in demand for higher education in India”, creating a major opportunity for UK universities seeking new funding streams.
  • India’s growing youth population and the government’s push to internationalise education under the NEP 2020 have made it a prime destination for global universities.
  • Financial Pressures in the UK
    • UK universities are facing a deep financial crisis:
      • Tuition fee freeze for domestic students (for several years) and rising inflation have squeezed budgets.
      • Institutions became dependent on international students, who pay higher fees.
      • But with falling international enrolments, revenue has declined sharply.
  • Search for New Revenue Sources
    • The UK higher education sector is in a volatile environment and must “find new sources of revenue” while maintaining quality.
    • Establishing Indian campuses provides a sustainable model for income generation, job protection, and research expansion.
  • Strategic Partnerships with India
    • UK universities view India not just as a market but as a strategic partner for long-term collaboration.
    • Partnerships with Indian institutions can help them:
      • Diversify student bases.
      • Strengthen global research collaborations.
      • Support India’s rise as an international education hub.

What UK Campuses in India Mean for Indian Students?

  • The UGC regulations enabling foreign campuses in India come amid a sharp drop in Indian students going overseas post-Covid due to stricter immigration policies in destination countries.
    • The UK issued 1.39 lakh study visas to Indian students in 2022, but this dropped to 88,732 in 2024.
  • The UK now restricts foreign students from bringing dependents and plans to reduce graduate visa duration from two years to 18 months.
  • Similar immigration curbs in Canada and the US have led to fewer Indian students pursuing higher education there.
  • Access to Global Education at Home
    • With these restrictions, the arrival of foreign universities in India offers a viable alternative. Students can:
      • Access the same curriculum, degree, and pedagogy as their parent campuses.
      • Potentially study a semester or year abroad through exchange programs.
      • Avoid the high cost of living and tuition overseas.
    • However, experts caution that studying at an India campus won’t automatically guarantee international job opportunities or post-study work visas, which require physical presence abroad.
International Relations

Mains Article
27 Oct 2025

National Household Income Survey

Why in the News?

  • The Ministry of Statistics and Programme Implementation (MoSPI) is set to launch India’s first-ever National Household Income Survey to collect reliable data on household income distribution across the country.

What’s in Today’s Article?

  • NHIS (Introduction, Background & Need, Challenges, Strategy, Framework, Significance, etc.)

First National Household Income Survey

  • MoSPI is preparing to launch the country’s first-ever National Household Income Survey (NHIS) in February 2026, a landmark initiative to gather comprehensive income data from Indian households.
  • The survey aims to fill a critical information gap in India’s economic landscape by providing a reliable estimate of income distribution, data that has long been missing from the country’s statistical system.
  • According to MoSPI, the NHIS will be one of the “toughest” surveys ever conducted by the ministry due to the sensitive nature of the data being collected.
  • The results of the survey are expected to be available by mid-2027.

Background and Need for the Survey

  • While India regularly conducts large-scale surveys on consumption, employment, and household expenditure, there has never been a successful nationwide effort to measure household income.
  • Earlier attempts, dating back to the 1950s, failed because the income data collected were often inconsistent, in many cases showing household income to be lower than the sum of consumption and savings.
  • The absence of reliable income data has long hindered evidence-based policymaking.
  • Policymakers have had to rely on consumption data as a proxy for income distribution, which often masks the true extent of income inequality, underemployment, and informal sector earnings.
  • Recognising this gap, MoSPI had earlier announced that the income survey was “vital” to understanding structural changes in India’s economy over the past 75 years, particularly the shifts from agriculture to services and the rise of informal work.

Challenges in Conducting Income Surveys

  • Income surveys are considered among the most complex and sensitive statistical exercises worldwide, owing to respondents’ reluctance to disclose accurate information about their earnings.
  • According to MoSPI’s pre-survey testing conducted in August 2025, 95% of respondents found income-related questions “sensitive” and were uncomfortable disclosing income details from different sources.
  • Most also refused to answer questions related to taxes paid.
  • This hesitation stems from cultural and psychological barriers, concerns about privacy, and fear of disclosure to tax authorities.
  • To address this, MoSPI has emphasised public awareness, transparency, and anonymity assurances as critical factors for the survey’s success.

Pre-Survey Findings and Strategy

  • The pre-survey testing of the NHIS questionnaire revealed that:
    • 73% of respondents found the questionnaire relevant.
    • 84% had a partial-to-good understanding of the survey’s purpose.
    • 95% considered income-related data “sensitive” and required assurance of confidentiality.
  • To overcome these challenges, MoSPI will conduct an extensive communication campaign to inform households about the survey’s objectives and the strict anonymity protocols.
  • Field staff will be trained to build rapport with households, clarify misconceptions, and assure respondents that the data will be used solely for statistical purposes.
  • At the operational level, MoSPI will develop a Standard Operating Procedure (SOP) for surveyors to ensure uniformity, accuracy, and privacy protection during data collection.

Institutional Framework and Expert Oversight

  • The ministry has established a Technical Expert Group (TEG) chaired by Surjit S. Bhalla, former Executive Director of India at the International Monetary Fund (IMF).
  • The TEG will guide the survey’s methodology, oversee implementation, and provide recommendations on the presentation and release of results.
  • The MoSPI would take a decision on the final release of results only after the expert group’s review to ensure data credibility.
  • This cautious approach follows the controversy surrounding the non-release of the 2017-18 Consumer Expenditure Survey, which was withheld due to data quality concerns.

Significance of the Survey

  • The NHIS will provide critical insights into income inequality, taxation patterns, and the structure of household earnings across urban and rural India. The data will help policymakers design more effective welfare schemes, social security programmes, and fiscal redistribution policies.
  • It will also support India’s efforts to align with global statistical standards such as those set by the United Nations System of National Accounts (SNA) and the OECD’s Guidelines for Income and Wealth Distribution.
  • By capturing detailed information on sources of income, including wages, self-employment, agriculture, remittances, and government transfers, the NHIS will enable a more accurate mapping of India’s economic reality, particularly for informal sector workers who make up nearly 80% of the workforce.
Economics

Mains Article
27 Oct 2025

Turning Urban Challenges into Opportunity - India’s Path to Global Talent Retention and Economic Growth

Context:

  • The recent decision by US President Donald Trump to impose a $1,00,000 fee on H-1B visa applicants risks discouraging global talent and innovation.
  • This protectionist stance opens a strategic window for India to attract skilled professionals, innovators, and entrepreneurs back home — but only if Indian cities can offer world-class living and working conditions.
  • The article underlines how urban transformation is essential for India’s aspiration to become a $30 trillion economy by 2047 and a global innovation hub.

US Policy and Its Global Implications:

  • Trump’s H-1B visa fee: The $1,00,000 levy raises costs for US companies, limiting access to global talent and slowing innovation.
  • Brain drain risk: US labs and startups may lose key international talent.
  • Shift in global leadership: As the Global South (especially Asia) is projected to drive two-thirds of future global growth, restrictive US policies may erode America’s technological edge.

India’s Opportunity in Global Talent Realignment:

  • India can attract returning professionals — scientists, clinicians, entrepreneurs — if it develops livable, well-governed cities.
  • Focus areas:
    • Quality healthcare
    • Clean air and water
    • Efficient public transport
    • Affordable housing
    • Predictable regulation and strong research institutions

Urban India’s Growth Potential and Challenges:

  • As of now, just 15 Indian cities contribute 30% of India’s GDP. Their ability to drive an extra 1.5% of growth will determine India’s ambition to become a $30 trillion-plus economy by 2047.
  • Challenges:
    • Air pollution
    • Water scarcity
    • Urban flooding
    • Solid waste mismanagement
    • Poor municipal governance

Addressing Urban Environmental Crises:

  • Air pollution: With India home to approximately 42 of the 50 most polluted cities, vehicular emissions must be curtailed immediately.
  • Required actions:
    • Rapid electrification of public transport
    • Enforcing construction dust norms
    • Utilizing the ₹1 lakh crore Urban Challenge Fund for performance-based incentives
  • Waste management:
    • The failure of municipal governance: It is evident in the fact that only a quarter of the 1,50,000 tonnes of solid waste generated daily is processed scientifically.
    • Solutions: Infrastructure for collection and segregation, skilled municipal workforce, accountability-based policies, etc.
  • Water scarcity:
    • Addressing acute water shortage, which threatens 30 Indian cities, is critical.
    • Steps required: Large-scale reuse and recycling of water, reduce 40–50% pipeline losses, introduce “pay-as-you-use” pricing with subsidies for the poor, etc.

Rethinking Urban Planning and Housing:

  • Revising Floor Space Index (FSI) policies:
    • Restricting the FSI to artificially low levels drives urban sprawl and increases commuting distances.
    • Indian planners must shift away from creating urban sprawls by allowing higher FSI and changing archaic regulations that limit optimal land usage.
    • Lessons from Singapore: Dense vertical growth can ensure both livability and sustainability.
  • Affordable housing:
    • The shortfall of affordable homes, projected to triple to 31 million by 2030, must be addressed.
    • Measures:
      • Promote higher FSI/FAR.
      • Offer density-based incentives (as in Tokyo, São Paulo) for developers supporting social housing or transit systems.

Transport and Mobility:

  • Urban congestion reduces productivity. For example, congestion costs the average city dweller up to two hours daily.
  • Solution:
    • Invest in metro systems and electrified last-mile connectivity.
    • Implement Transit Oriented Development (TOD) — focusing planning around rapid transit networks to foster compact, vertical growth, reduce car usage, and enhance productivity through agglomeration.

Strengthening Urban Governance and Finance:

  • India currently lacks sufficient urban planning capacity, with Niti Aayog reporting fewer than one planner per city.
  • Steps needed:
    • Build a professional cadre of urban managers
    • Grant financial and administrative autonomy to cities
    • Improve property tax collection and digitise land records
    • Explore Land Value Capture (LVC) for municipal revenue (as in Hong Kong)

The Indore Model - A Template for Urban Success:

  • Solid waste management: Segregated door-to-door collection, bio-CNG generation.
  • Water management: India’s first “Water Plus” city using GIS-based sewage monitoring and treated water reuse.
  • Replicability: Indore demonstrates that efficiency, innovation, and accountability can coexist in municipal systems.

Sustainable Urbanisation - The Next Growth Driver:

  • Sustainable urbanisation will define India’s prosperity.
  • India already operates the world’s 2nd-largest urban system, exceeding the combined urban populations of the US, UK, Germany, and Japan.
  • In the last decade alone, India has added 91 million people (a 32% increase) to its urban population.
  • By 2030, approximately 350 million people will move to cities with urban growth contributing 73% of the total population increase by 2036.
  • As urbanisation has historically lifted nations out of poverty, it will be the biggest agent of growth. Hence, India must embrace it strategically, not reluctantly.

Way Forward:

  • Urban reforms: Focus on decentralised governance, digital transparency, and performance-based incentives.
  • Sustainability first: Electrify transport, recycle water, manage waste scientifically.
  • Inclusive planning: Ensure equitable access to housing, mobility, and a clean environment.
  • Talent retention strategy: Create cities that attract and retain skilled professionals.

Conclusion:

  • America’s restrictive immigration policies are a wake-up call and an opportunity for India.
  • If India can transform its cities into world-class, sustainable, and inclusive ecosystems, it can not only retain but also attract global talent.
  • Urban transformation will be the defining pillar of India’s journey toward a $30 trillion economy and a global innovation powerhouse by 2047.
Editorial Analysis

Mains Article
27 Oct 2025

Winding Up the Clock of India-Nepal Economic Ties

Context

  • On October 1, 2025, Reserve Bank of India (RBI) Governor Sanjay Malhotra announced a set of measures aimed at internationalising the Indian rupee (INR).
  • While these initiatives have broad regional implications, they hold special promise for strengthening the economic relationship between India and Nepal.
  • The new RBI policies, allowing authorised dealer (AD) banks to lend rupees to non-residents, permitting Special Rupee Vostro Accounts (SRVAs) to invest in corporate instruments, and establishing transparent reference rates for major currencies, signal a deepening of financial and trade cooperation.
  • For Nepal, these developments could mean easier access to credit, stronger trade integration, and a potential transformation in its macroeconomic resilience.

The RBI’s Measures: Pathways to Integration

  • The first measure allows AD banks in India to extend rupee-denominated loans to non-residents from Nepal, Bhutan, and Sri Lanka for cross-border trade.
  • This reform addresses a long-standing gap in institutional credit, particularly for industries engaged in India–Nepal trade.
  • The second measure expands the scope of Special Rupee Vostro Accounts to include investments in corporate bonds and commercial papers, thus enhancing cross-border capital flows.
  • The third initiative, establishing a transparent reference rate for major currencies, introduces predictability and reduces exchange rate volatility, making INR-based transactions more efficient and reliable.
  • Collectively, these steps not only promote the rupee’s international role but also facilitate smoother trade settlements and stronger financial cooperation between India and its neighbours, particularly Nepal.

Nepal’s Domestic Constraints and the Credit Challenge

  • Despite steady remittance inflows, Nepal continues to face structural weaknesses in its economy.
  • After a partial recovery from the COVID-19 pandemic, its industrial performance remained stagnant due to a lack of business confidence and restricted access to credit.
  • Nepalese banks, often controlled by large industrial houses, have been conservative in lending to small and medium enterprises (SMEs).
  • This has resulted in credit bottlenecks, weak supply chains, and limited employment opportunities, fuelling economic instability and political unrest.
  • By allowing Indian banks to lend directly in INR, the RBI’s policy provides alternative credit channels for Nepalese enterprises.
  • Access to competitively priced loans could encourage industrial expansion, improve liquidity, and boost participation in cross-border trade, thus offsetting Nepal’s domestic financial rigidity.

The Dynamics of India–Nepal Trade

  • The India–Nepal economic relationship is defined by deep interdependence. India accounts for nearly 65% of Nepal’s international trade, with exports from India exceeding $8 billion and imports from Nepal around $1 billion.
  • Indian firms remain major investors in Nepal, contributing 33% of total FDI worth approximately $670 million.
  • Despite the asymmetry, the partnership serves as a vital economic lifeline for Nepal, offering market access, investment capital, and technological linkages.
  • The exchange rate peg of 1.6 Nepalese rupees (NPR) to 1 Indian rupee has provided monetary stability and shielded Nepal from sharp currency depreciations.
  • Maintaining this peg, while enabling new credit and investment avenues, reinforces macroeconomic confidence and trade-led growth.
  • Thus, the RBI’s measures can deepen financial interlinkages without disturbing the existing monetary equilibrium.

Strategic and Economic Multiplier Effects

  • Beyond trade, the RBI’s measures have strategic implications. Increasing the use of INR in Nepal’s transactions will reduce dependency on the U.S. dollar and mitigate exposure to global currency volatility.
  • This can ease pressure on foreign exchange reserves, narrow the Current Account Deficit (CAD), and enhance financial stability.
  • A robust INR–NPR financial ecosystem may also promote joint ventures, industrial clustering, and value-added processing for export-oriented growth.
  • From India’s standpoint, these steps align with its ambition to make the rupee a regional trade currency, thereby strengthening India’s financial influence and economic diplomacy amid a changing global monetary landscape.

The Way Forward: Implementation and Institutional Coordination

  • The success of these policies depends on institutional cooperation.
  • The Nepal Rastra Bank (NRB) must interpret, adapt, and implement the RBI’s framework while safeguarding Nepal’s monetary interests.
  • Developing compliance mechanisms, risk assessment protocols, and prudential norms will be essential for effective adoption.
  • Collaboration on sovereign guarantees, Letters of Credit, and country risk ratings will help institutionalise bilateral trust.
  • The RBI’s reputation for prudence, combined with the NRB’s reciprocation and adaptability, could lay the groundwork for a sustainable financial partnership that enhances regional monetary stability and trade competitiveness. 

Conclusion

  • The RBI’s October 2025 announcements mark a turning point in India–Nepal economic relations.
  • By promoting the internationalisation of the rupee in a regionally inclusive manner, these reforms offer Nepal an opportunity to overcome its credit constraints and enhance its trade competitiveness.
  • At the same time, India consolidates its position as a regional financial anchor and a driver of South Asian integration.
  • The ultimate success of these initiatives will depend on regulatory synchronisation, institutional readiness, and a shared economic vision.
Editorial Analysis

Mains Article
27 Oct 2025

The Contours of Constitutional Morality

Context

  • The relationship between law and morality has long occupied jurists, philosophers, and lawmakers alike.
  • It is an enduring question: should the law enforce moral standards, or should it remain neutral, detached from ethical imperatives?
  • From the ancient notion of dharma to the modern constitutional framework, India’s legal evolution reflects this tension between moral values and legal obligations.
  • The dialogue between morality and law, far from being a relic of philosophical discourse, remains crucial to the vitality of modern constitutional democracy.

Law and Morality: A Historical Context

  • The debate over the intersection of law and morality reached its zenith during the Hart–Devlin debate (1960s).
  • Lord Devlin argued that law must enforce moral standards to preserve societal cohesion, while H.L.A. Hart warned against conflating moral disapproval with legal prohibition.
  • This theoretical divide found reflection in Shaw v. DPP (1962 AC 220), where the House of Lords affirmed a residual power to conserve not only the safety and order but also the moral welfare of the State.
  • The Indian judiciary has also recognised this relationship. In Rathinam v. Union of India (1994), the Supreme Court quoted Justice Frankfurter’s observation in Solesbee v. Balkcom (1949) that the law embodies a system of rights based on moral principles … which comports with the deepest notions of what is fair and right and just.
  • This understanding resonates with India’s civilisational ethos, the ancient concept of dharma, which unified legal duty and moral virtue.
  • The Tirukkural, for instance, emphasised Aram (virtue) as the foundation of righteous living, demonstrating that law and morality were once inseparable in Indian thought.

Dynamic Interaction Between Law and Morality

  • The interplay between law and morality is neither static nor one-dimensional. Sometimes, law leads morality, as seen in the abolition of untouchability, which preceded full social acceptance.
  • At other times, law follows morality, as in the gradual recognition of gender equality shaped by evolving public consciousness.
  • This dynamic underscores the law’s dual function: to reflect society’s ethical standards and to guide them toward higher ideals.
  • Yet, this also presents a challenge: laws must embody fundamental ethical imperatives, not merely majoritarian opinions or transient sentiments.
  • For a diverse and pluralistic democracy like India, such balance is essential to ensure justice, inclusivity, and legitimacy.

Constitutional Morality: The Indian Perspective

  • The Supreme Court of India has deepened this moral discourse through the doctrine of constitutional morality.
  • In State (NCT of Delhi) v. Union of India, the Court held that constitutional morality is more than mere allegiance to constitutional text.
  • It includes liberal values, participatory governance, and ethical conduct by constitutional functionaries.
  • Similarly, in Justice K.S. Puttaswamy (Retd.) v. Union of India, the Court affirmed that constitutional morality requires the state to act within the bounds of the rule of law and to respect judicial orders.
  • These judgments collectively affirm that constitutional morality serves as a normative compass, ensuring that power is exercised with fairness, accountability, and restraint.
  • Thus, morality in governance is not optional, it is a constitutional obligation.

Beyond the Courts: Accountability and Democratic Ethics

  • Breaches of constitutional morality may not always be legally punishable.
  • They can manifest as violations of constitutional conventions or democratic principles, which are best remedied through political and civic accountability, in Parliament, the media, or by the electorate.
  • This broader understanding reminds us that courts are not the sole guardians of constitutional ethics.
  • The preservation of constitutional morality is a shared responsibility, among citizens, lawmakers, and public institutions.

The Road Ahead: Nurturing Constitutional Morality

  • The future of India’s democracy depends on the cultivation of constitutional morality among lawmakers, judges, and citizens alike.
  • As Dr. B.R. Ambedkar wisely cautioned, constitutional morality is not a natural sentiment, it has to be cultivated.
  • When nurtured, it transforms the Constitution from a legal document into a living moral charter, one that guarantees justice, equality, and inclusion.
  • In an era of rapid change, constitutional morality provides the ethical foundation necessary to uphold human dignity and democratic stability.

Conclusion

  • The relationship between law and morality is both timeless and evolving.
  • From the ancient principle of dharma to modern constitutional jurisprudence, morality has remained the soul of justice.
  • To ensure that democracy is not a mere top dressing on Indian soil but its vital ingredient, India must continue to nurture constitutional morality.
  • It is this moral consciousness that will determine whether the Constitution remains a document of ideals or becomes a vibrant, equitable reality, the living embodiment of justice in action.
Editorial Analysis
Load More...

Enquire Now