Why in News?

A new study by researchers at Nomura suggests that India should reform its Corporate Average Fuel Efficiency (CAFE) norms to align with global best practices by including protection measures for small cars.

What’s in Today’s Article?

• India’s CAFE Norms
• Call to Reform India’s Emission Norms for Small Cars
• Global Practices: Relaxed Emission Norms for Small Cars

India’s CAFE Norms

• Corporate Average Fuel Efficiency (CAFE) norms are government-mandated standards that require auto manufacturers to meet a fleet-wide average fuel economy target.
• India’s CAFE norms, introduced by the Bureau of Energy Efficiency (BEE) in 2017, aim to regulate fuel consumption and CO₂ emissions from passenger vehicles under 3,500 kg.
  • In India, CAFE norms were introduced in two phases, with the first stage effective from 2017-18 and the second from 2022-23. 
• These norms apply to vehicles powered by petrol, diesel, LPG, CNG, hybrids, and electric power.
• Objective: Lower Emissions and Oil Dependence
  • CAFE norms were designed to:
    • Reduce oil imports
    • Cut air pollution
    • Promote cleaner vehicles like EVs, CNG cars, and hybrids
  • Tighter norms were enforced in 2022–23, with penalties for non-compliance. Manufacturers were required to achieve:
    • Fuel consumption ≤ 4.78 litres/100 km
    • CO₂ emissions ≤ 113 g/km
• Heavier Cars Get Relaxed Targets
  • Under India’s CAFE system, heavier vehicles are allowed higher absolute CO₂ emissions, making it easier for large SUVs and premium cars to comply.
  • Meanwhile, smaller, lighter cars face stricter targets, even if their emissions are already low.

Call to Reform India’s Emission Norms for Small Cars

• A recent study by Nomura researchers has urged India to reform its CAFE framework to align with global best practices.
• The study recommends incorporating protection mechanisms for small, lightweight cars, similar to what is done in major automobile markets like the US, EU, China, Japan, and Korea.
• Current Linear Weight-Based Approach Flawed
  • India’s current CAFE norms follow a linear weight-based system, where lighter vehicles are subject to more stringent CO₂ targets.
  • The study highlights a contradiction: a heavy SUV emitting 130g/km CO₂ (Model A) is compliant, while a small car emitting just 100g/km (Model B) is non-compliant. 
  • This creates a structural bias—penalising small cars with lower emissions, while allowing heavier, more polluting vehicles to meet norms more easily.
• Impact on Small Car Market and Decarbonisation
  • Manufacturers try to reduce emissions by lightweighting, but the CAFE framework assigns even stricter targets to lighter vehicles.
  • Thus, entry-level small cars—already efficient—struggle to meet their moving goalposts, discouraging further innovation in this segment.
  • The lack of regulatory protection has discouraged lightweighting, a critical strategy for decarbonisation.
  • Manufacturers like Maruti Suzuki have been lobbying for a relaxation in norms for this category.

Global Practices: Relaxed Emission Norms for Small Cars

• Researchers highlight how major auto markets adopt flexible emissions frameworks to protect small, fuel-efficient vehicles, unlike India’s linear approach.
• United States: Fixed Targets for Smaller Cars
  • The US uses a piecewise linear approach based on vehicle footprint.
  • For cars below a specific size, fuel economy targets remain fixed.
  • This prevents disproportionately stricter norms as cars get smaller.
• China: Constant Targets Below Weight Threshold
  • China follows a similar strategy:
    • For cars below a certain curb weight, fuel consumption targets become constant.
  • This avoids punishing lighter cars with tighter norms.
• South Korea: Constant Targets and Bonus Credits
  • For small cars under a defined curb weight, targets stay constant.
  • Manufacturers also receive a 5–7g/km bonus on CAFE scores based on small car sales share.
• Japan: Non-Linear Norms to Protect Small Cars
  • Japan adopts a non-linear emissions approach by ensuring light cars aren’t disproportionately penalised, encouraging efficient, small vehicle production.
• European Union: Inverted Slope Benefits Small Cars
  • Europe has a negative slope (-0.0144) in its CAFE framework.
  • Larger cars face tighter CO₂ limits, while smaller cars enjoy relaxed targets, promoting their use.

Why in News?

Facing backlash over the fuel ban for old vehicles, the Delhi Government announced that end-of-life vehicles will not be impounded. Environment Minister of Delhi said a new system for handling old vehicles is being planned.

The Commission for Air Quality Management (CAQM) directive to remove end-of-life vehicles from roads is based on long-standing court orders and serious environmental concerns.

What’s in Today’s Article?

• Delhi’s Fuel Ban for Old Vehicles
• Delhi Government Flags Premature Implementation
• Why Older Vehicles Are a Concern
• NGT’s 2015 Ban on Old Vehicles
• Effectiveness of Such Measures in Dealing with Delhi’s Bad Air Problem

Delhi’s Fuel Ban for Old Vehicles

• Starting July 1, diesel vehicles over 10 years old and petrol vehicles over 15 years old are denied fuel at Delhi’s fuel stations under the CAQM directive.
  • In April 2025, the CAQM directed a phased denial of fuel to ELVs at fuel stations in the NCR:
    • in Delhi from July 1,
    • in high-density NCR districts from November 1, and
    • in the rest of the NCR from April 1, 2026.
• Real-Time Enforcement with ANPR Technology
• 498 fuel stations and 3 ISBTs now have Automatic Number Plate Recognition (ANPR) cameras.
• These scan vehicle plates and cross-check with the VAHAN database.
• If identified as an End-of-Life Vehicle (ELV), an audio alert is triggered, and fuel is denied.
• Enforcement and Penalties
  • ELVs may be impounded and scrapped unless valid exemptions or documents are shown.
  • Enforcement teams include the Transport Department, Traffic Police, and civic bodies.

Delhi Government Flags Premature Implementation

• Delhi Environment Minister, in a letter to CAQM, called the immediate enforcement of the fuel ban “premature and potentially counterproductive”.
• The Automatic Number Plate Recognition (ANPR) system is facing multiple issues:
  • Camera misplacement
  • Non-functional sensors and speakers
  • Inability to detect ELVs due to HSRP-related issues
• The system lacks integration with vehicle databases of adjoining NCR districts, making it easy for vehicle owners to bypass the ban by refueling in nearby areas.
• Due to these technological and operational issues, the public is facing inconvenience, leading to widespread discontent and backlash.

Why Older Vehicles Are a Concern

• Authorities say pre-BS-VI vehicles significantly contribute to air pollution, even if maintained well.
  • BS-IV vehicles emit 4.5 to 5.5 times more particulate matter than BS-VI vehicles.
  • BS-VI norms became mandatory from April 1, 2020, setting stricter emission standards.
• Transport sector accounts for: 28% of PM2.5; 41% of SO₂; 78% of NOx emissions. CAQM highlights transport as a key driver of Delhi’s air pollution.
• While legal mandates for banning overage vehicles existed since 2015, lack of technology delayed enforcement.

NGT’s 2015 Ban on Old Vehicles

• In 2015, the National Green Tribunal (NGT) banned - Diesel vehicles older than 10 years; Petrol vehicles older than 15 years - from operating or being registered in Delhi-NCR.
• In 2018, the Supreme Court upheld the NGT’s directive and ordered that violating vehicles must be impounded.
• New Scrapping Rules Reinforce Mandate
  • In 2023, Delhi framed guidelines under the Motor Vehicles Act and Registered Vehicle Scrapping Facility (RVSF) Rules.
  • The Environment Protection (End-of-Life Vehicles) Rules, 2025, effective April 1, mandate scrapping within 180 days of a vehicle’s registration expiry.
• Legal Basis Under Motor Vehicles Act
  • Motor Vehicles Act, 1988: Registration for non-transport vehicles valid for 15 years, renewable thereafter.
  • Central Motor Vehicles Rules, 1999: After expiry, a vehicle is no longer considered validly registered.

Effectiveness of Such Measures in Dealing with Delhi’s Bad Air Problem

• Experts agree that no single measure, including the fuel ban for old vehicles, can fully resolve Delhi’s severe air quality crisis.
• The Centre for Science and Environment (CSE) cautions that age caps aren’t scalable nationwide and older vehicles aren’t the only polluters.
• Poor maintenance can make even newer vehicles highly polluting.
• Multi-Pronged Approach Needed
  • CSE advocates a comprehensive strategy, including:
    • Upgrading fuel and emission standards
    • Strict Pollution-Under-Control (PUC) enforcement
    • Major expansion of public transport

Why in the News?

The United States has enacted a 1% tax on certain outbound remittances under the One Big Beautiful Bill Act, raising concerns about its impact on India’s remittance inflows.

What’s in Today’s Article?

• US Remittance Tax (Introduction, Key Features, Exemptions, Implications, Broader Trends, etc.)

Introduction to the New US Remittance Tax

• A newly passed US legislation, the One Big Beautiful Bill Act (OBBBA), has introduced a 1% tax on certain outbound remittances, sparking concern among countries that rely heavily on money sent back by expatriates.
• The tax, effective from January 1, 2026, is expected to marginally affect India, the world’s largest recipient of remittances, primarily through higher costs rather than a significant decline in remittance volumes.

Key Features and Exemptions

• Originally proposed as a 5% tax, the remittance levy was later reduced to 1% after bipartisan negotiations. However, key exemptions in the Senate-passed version limit its reach:

• Applies only to physical modes of transfer like cash, money orders, and cashier’s checks.
• Bank account transfers or payments through US-issued debit/credit cards are exempt.
• Transfers under $15 are not taxed.
• US citizens sending remittances are not subject to the tax.

• These exclusions will mitigate the adverse impact for a large portion of Indian-origin remitters using digital channels.

Implications for India’s Remittance Economy

• According to the Centre for Global Development, India may lose just under $500 million in formal remittance inflows, second only to Mexico, which could lose over $1.5 billion.
• Although this is a small portion of the $124.3 billion India received in net remittances during 2024-25, the tax is a symbolic reminder of increasing policy barriers to international money flows.
• Moreover, remittances from the US account for nearly 27.7% of India’s total, approximately $32 billion in 2023-24.
• While the proportion of cash-based transfers is low, even a slight disruption can impact rural households relying on such inflows.
• Distributional and Timing Effects
  • According to economists, the impact will be frontloaded into the first three quarters of FY2025-26, as senders might advance transfers to avoid the tax.
  • However, the lower-than-expected rate (1%) means that the overall long-term impact will remain limited and primarily felt in transaction costs rather than volume reductions.

Broader Trends in Remittance Flows

• India’s remittance receipts have been growing steadily:

• Net remittances in FY2024-25: $124.31 billion (up 16%)
• Gross inflows: $132.07 billion (up 14%)
• US share of remittances: Grew from 22.9% in 2016-17 to 27.7% in 2023-24

• Notably, in FY2024-25, net remittances not only covered India’s entire trade deficit of $98.39 billion but also left a $26 billion surplus, underlining their macroeconomic significance.

Growing Costs of Cross-Border Transfers

• Even before this new tax, sending money to India has involved significant transaction costs. As per World Bank data, the average cost of sending $200 to India in Q4 2024 was 5.3%, compared to the global average of 6.6%.
• The tax could push these costs further up, particularly in channels involving multiple intermediaries or non-bank methods.
• Moreover, delays and fees from correspondent banking chains are an ongoing concern, making remittance infrastructure innovation all the more essential.

India’s Payment Infrastructure as a Cushion

• India has proactively worked on reducing frictions in cross-border payments:

• UPI-PayNow Link: Seamless money transfer between India and Singapore
• RBI participation in Project Nexus (by BIS): Aims to enable “cheaper, faster, more transparent” global transfers

• Such efforts will be critical in mitigating the impact of policy changes abroad and improving the ease of formal remittance channels for the Indian diaspora.

Context:

• As India aspires to become an over $30 trillion economy by 2047, its urban centres must drive innovation, job creation, and economic growth.
• However, the country’s top 15 cities face systemic issues — pollution, poor planning, weak governance, and infrastructure deficits.
• This article discusses key reforms to unlock their full potential in the coming “urban decade.”

The Engine of India's Future Growth:

• 15 cities — including Mumbai, Delhi, Bengaluru, Chennai, and Hyderabad — contribute 30% of India’s GDP.
• These cities can add 1.5% additional annual GDP growth and play a key role in achieving India’s long-term economic vision.
• Despite their importance, they remain plagued by pollution, traffic, slums, water stress, and inadequate digital infrastructure.

Environmental and Health Challenges in Urban Spaces:

• Air pollution crisis:
  • India hosts 42 of the world’s 50 most polluted
  • Key pollutants are vehicular emissions, construction dust, and biomass burning.
  • Solutions proposed includes -
    • Electrify public transport.
    • Strict enforcement of construction dust norms.
    • The Union Budget 2025-26 announced the ₹1 lakh crore Urban Challenge Fund to rank cities and disburse financial incentives based on performance.
• Solid waste management - A missed opportunity:
  • According to the Ministry of Housing and Urban Affairs (MoHUA), Indian cities generate 1.5 lakh tonnes of solid waste per day, but only 25% is processed.
  • At the national level, India is estimated to generate about 62 million tonnes of municipal solid waste yearly, of which only 30% is processed.
  • Reform steps:
    • Municipalities must procure equipment and train sanitation staff.
    • Encourage performance-based accountability and regulations.
    • Transition to a circular waste economy could unlock $73.5 trillion by 2030.
    • Best practice: Indore's bio-CNG and segregated waste model.

Urban Water Crisis and Solutions:

• Rising water stress:
  • As water stress is an urgent challenge, nearly half of our rivers are polluted.
  • In 2018, NITI Aayog predicted that 40% of India’s population would face water scarcity by 2030.
  • Cities lose 40-50% of piped water due to leakages.
• Water-sensitive urban planning - Indore’s innovations:
  • Sewage leakages into water bodies were plugged, leveraging GIS technology.
  • Rainwater harvesting and reuse of treated water have turned Indore into India’s first water-plus city.

Housing Deficit and Informal Settlements:

• Affordable housing gap:
  • Estimated shortfall: 10 million homes now, 31 million by 2030 (CII).
  • Rise of informal settlements and illegal colonies lacking sanitation and infrastructure.
• Vertical expansion and policy tools:
  • Increasing floor space index (FSI) and floor area ratio (FAR) growth will promote vertical growth.
  • As the G20 India and OECD report on "Financing Cities of Tomorrow" points out, density-related incentives are another possible remedy.

Urban Mobility and Congestion:

• Congestion crisis:
  • The average urban commuter loses 1.5–2 hours daily in traffic.
  • This is mainly due to overpopulation, weak public transport, poor enforcement.
• Smart urban mobility solutions:
  • Prioritise investment in public transport.
  • Use AI and IoT for real-time traffic management.
  • Introduce congestion pricing models.
  • Encourage citizen discipline and smart driving habits.

Digital Infrastructure Gaps:

• Slow internet speed:
  • Average speed: ~100 Mbps in India vs more than 1 Gbps in Seoul, Singapore.
  • To attract top MNCs, and for setting up innovation centres, global capability centres (GCCs), and R&D hubs, India needs to dramatically upgrade its digital infrastructure.
• Strengthening digital connectivity:
  • India needs to expand high-speed broadband, 4G and 5G across cities and rural areas.
  • This requires cutting spectrum prices to attract investment, building extensive fibre-optic networks, and deploying 5G nationally.

Governance and Financing Reforms:

• Weak urban planning capacity: India has 1 planner per 1,00,000 people, as against the global norm of 1 per 5,000–10,000. Most cities lack robust master plans.
• Strengthening decentralised governance:
  • Full implementation of the 74th Constitutional Amendment.
  • Increasing property tax collection, which is currently less than 0.2% of GDP.
  • Use digitised land records, land value capture (LVC), and municipal bonds post governance reform.

Reimagining Cities as Cultural-Economic Hubs:

• Promote walkable heritage zones and integrated urban experiences.
• Partnership between government (policy/infrastructure) and private sector (innovation/delivery).
• Cities must evolve into global magnets for business and culture, like Dubai or Singapore.

Conclusion - India’s Decade of Urban Transformation:

• India's top 15 cities must be empowered to lead the country's economic, cultural, and technological transformation by 2047.
• With focused investments in infrastructure, governance, environment, and digital access, these urban centres can spearhead India's journey toward becoming a $30 trillion economy and global powerhouse.

Context

• On July 4, Americans commemorate their nation's declaration of independence, a revolution sparked by a defiant belief in government by laws, not monarchs.
• Yet this celebration masks a deeper truth: the ideals of 1776 are not self-sustaining. As Judge J. Michael Luttig warns, democracy does not survive by virtue of its founding documents alone.
• It must be renewed daily, by vigilance, courage, and a refusal to surrender to authoritarian impulses and this message is not mere rhetoric.

The American Warning: Tyranny from Within

• Judge Luttig, a conservative legal figure, offers a sobering reflection: tyranny is no longer an external threat but an internal one.
• His 27 truths emphasise that the constitutional order is not upheld merely by words written on parchment but by people’s willingness to act when it is threatened.
• His concern is rooted in the rise of figures who seek personal power rather than public service, leaders who claim to act within the Constitution while undermining its core principles.
• The spectre of a self-crowned leader haunts the American political landscape, where President Donald Trump’s actions reflect a disdain for the very accountability that defines a republic.
• With control over the legislature and a sympathetic judiciary, his power goes largely unchecked, echoing not the aspirations of the Founders, but the habits of monarchs.

A Historical Mirror

• India’s Emergency
  • If Americans seek a cautionary tale, they need only look to India’s Emergency of 1975.
  • When Prime Minister Indira Gandhi faced political vulnerability after being convicted of electoral fraud, she invoked constitutional mechanisms to declare an internal disturbance under Article 352.
  • This legal veneer masked a de facto dictatorship: civil liberties were suspended, the press muzzled, and over 100,000 citizens imprisoned.
  • Parliament and the judiciary were reduced to rubber stamps.
• Mechanics of Authoritarianism
  • As historian Gyan Prakash reveals in Emergency Chronicles, India’s descent into authoritarianism happened with chilling ease.
  • There were no tanks on the streets and there was no dramatic overthrow. Instead, the judiciary surrendered, journalists complied, and civil servants bowed.
  • Only Justice H.R. Khanna stood firm, and he was punished for his integrity.
  • H.V. Kamath, a member of the Constituent Assembly, had foreseen this danger in 1949, comparing India’s constitutional framework to that of Weimar Germany.
  • His warnings were ignored and when the Emergency finally arrived, it followed the very path he feared.

The Dangerous Legality of Authoritarianism

• The Indian Emergency reveals a key insight: tyranny often wears legal clothes.
• Every brutal action, preventive detentions, censorship, sterilisation drives, and slum demolitions, was technically legal.
• But legality is not the same as justice and democracies can implode not only through violence but through compliance, through the slow, legal erosion of institutional checks.
• The tragedy of the Emergency was not merely what Indira Gandhi did, but how easily others allowed her to do it.
• This dynamic is echoed in contemporary America. President Trump has not declared an Emergency, but he has deployed many tools of autocracy: targeting opponents through legal institutions, undermining public trust in elections, and threatening constitutional norms.

History’s Cycles and the Call to Vigilance

• Echoes and Ironies: History’s Cycles
  • There is profound historical irony in the present moment.
  • The Leader of Opposition, the grandson of Indira Gandhi, now champions the Constitution his grandmother once twisted.
  • He invokes Ambedkar’s legacy, brandishing the same document used decades ago to silence dissent.
  • This inversion illustrates that the Constitution is not a fixed relic, but a battlefield, one that each generation must fight to reclaim.
  • The stories of both nations underline a universal truth: democratic decay is not inevitable, but it is always possible.
• The Call to Vigilance
  • Fireworks and flags cannot preserve a republic. Only daily acts of vigilance can. Democracy is not just a system of laws and procedures; it is a culture, one that values restraint, humility, and accountability.
  • The Founders of the United States declared that the law must be king but that ideal only lives if citizens demand it.
  • Constitutions do not protect liberty on their own and they must be guarded by people with the courage to say no.
  • If courts yield to political pressure, if legislatures serve partisanship over principle, if media becomes a mouthpiece, and if law enforcement protects the powerful over the public, then the Constitution becomes a hollow symbol.

Conclusion

• In 1975, India failed the test of democratic resilience but the people eventually reclaimed their rights and in 2024 and beyond, both India and the United States stand at a similar crossroads.
• Their futures hinge not on the strength of their constitutions, but on the courage of their citizens. History does not repeat, but it does echo.
• The Emergency was not an anomaly; it was a warning and it warns us still: that tyranny, when it comes, will seem familiar and it will be legal.

Context

• On the eve of the 75th anniversary of the Indian Constitution, the Supreme Court of India reaffirmed a critical element of the country’s democratic framework by upholding the inclusion of the words secular and socialist in the Constitution’s Preamble.
• These terms, introduced during the Emergency through the 42nd Amendment in 1976, have faced persistent political and legal challenge.
• The Court’s decision, however, underscored a foundational truth: the essence of India’s constitutional vision transcends the circumstances of its wording.
• Even if the original Preamble of 1949 did not include these specific terms, the principles they represent were already embedded in the spirit and structure of the Constitution.

Supreme Court’s Ruling on Words Secular and Socialism: A Reaffirmation Amidst a Rising Offensive

• While the judiciary’s ruling offered a vital legal defence of secularism and socialism, it also prompted a renewed ideological offensive stance.
• Some prominent right-wing organisations publicly demanded the removal of secular and socialist from the Preamble, calling them alien to Dr. B.R. Ambedkar’s vision.
• Further amplifying this sentiment, the Vice President of India, Jagdeep Dhankhar, termed their insertion a sacrilege to the spirit of Sanatan.
• These statements emanating not from fringe actors but from the apex of national authority.

The Historical Consensus on Secularism and Socialism

• Historical Consensus on Secularism
  • The idea of India as a secular nation was not a post-independence innovation but an integral part of its foundational consensus.
  • The Constituent Assembly debates leave no ambiguity on this matter and there was unanimous agreement that India should be a secular state.
  • No member advocated a theocratic state. Leaders such as Govind Ballabh Pant posed fundamental questions about the dangers of a religious state.
  • Jaspat Roy Kapoor cited Mahatma Gandhi’s assertion that religion should be a private affair. Begum Aizaz Rasul described secularism as the most outstanding feature of the Constitution.
  • Sardar Patel, in a moment of profound reassurance, vowed that the new Constitution would not be disfigured by any provision on a communal basis.
  • These voices collectively charted a vision of a modern, pluralistic India, one that would reject colonial tactics of division and ensure dignity and equality for all citizens.
• The Socialism in the Constitution: A Vision for Justice
  • The campaign to erase the word socialist from the Preamble is similarly aimed at dismantling the Constitution’s egalitarian framework.
  • Socialism, as envisioned in the Indian context, is not a foreign doctrine but a moral and political commitment to social and economic justice.
  • Ambedkar himself emphasised that the Directive Principles of State Policy reflected these socialist ideals.
  • They aimed to create a welfare state committed to eradicating inequality, ending caste-based exploitation, and ensuring land reform and labour rights.
  • The Supreme Court, in its latest ruling, echoed this interpretation by equating socialist with the vision of a welfare state, a state that exists not for the market or the majority alone, but for all its citizens.

The Way Forward: The Responsibility of Resistance

• The Constitution is more than a legal document it is a moral covenant forged in the crucible of India’s long and diverse freedom struggle.
• It represents the dreams of millions who fought not just for independence from colonial rule, but for justice, equality, and freedom at home.
• Defending the secular and socialist character of the Constitution is synonymous with defending the very idea of India, a democracy in which every citizen, regardless of religion, caste, class, or gender, has the right to live with dignity and freedom.
• This defence must be multifaceted: through public education, legal challenges, political mobilisation, and sustained democratic struggle.
• It must involve not just lawyers and politicians, but students, workers, thinkers, and every citizen who believes in the idea of a modern, plural, and just republic.

Conclusion

• As India marks the 75th year of its Constitution, the battle to preserve its soul has never been more urgent.
• The words secular and socialist are not accidental insertions or ideological imports and they are deeply rooted in the Indian experience of colonialism, communal violence, and social inequality.
• To erase them is to erase the legacy of Gandhi, Ambedkar, Patel, and countless others who dreamed of a free and fair India.
• The challenge today is clear: either we uphold and strengthen the democratic edifice built over decades, or we allow it to be dismantled in favour of a narrower, more exclusionary order.

Why in news?

The Quad nations—India, Australia, Japan, and the US—have launched a joint initiative to secure critical mineral supply chains amid growing concerns over China’s dominance and potential disruptions.

What’s in Today’s Article?

• Quad Foreign Ministers Meet in Washington, DC
• Quad Critical Minerals Initiative
• China’s Dominance in Critical Minerals
• India’s EV Industry Hit by Chinese Export Curbs
• G7 Action Plan Laid the Groundwork for Quad Critical Minerals Push

Quad Foreign Ministers Meet in Washington, DC

• The second Quad foreign ministers’ meeting took place in Washington, DC.
• During the meeting, members reaffirmed its commitment to four key areas: maritime and transnational security, economic prosperity and security, critical and emerging technologies, and humanitarian assistance.
• The ministers strongly condemned the Pahalgam terror attack, urging that the perpetrators, organisers, and financiers be brought to justice promptly.
• Launch of Quad Critical Minerals Initiative
  • The ministers launched the Quad Critical Minerals Initiative to secure supply chains and reduce dependency on China for essential resources.
• Focus on Maritime and Logistics Cooperation
  • The participating ministers also announced:
    • The first Quad Indo-Pacific Logistics Network field training exercise to be held this year.
    • The launch of the Quad Ports of the Future Partnership in Mumbai later this year.

Quad Critical Minerals Initiative

• India, Australia, Japan, and the United States have jointly launched the Quad Critical Minerals Initiative to build resilient and diversified supply chains for critical minerals vital to modern technologies.
• The initiative will enhance cooperation on securing and diversifying supply chains, recovering critical minerals from e-waste, and boosting private sector investment to strengthen supply chain resilience.
• Quad members expressed serious concerns about the growing dependency on China for processing and refining critical minerals, warning of risks like economic coercion, price manipulation, and supply disruptions.

China’s Dominance in Critical Minerals

• Critical minerals, including rare earth elements (REEs), are essential for advanced technologies like semiconductors, EVs, and jet fighters.
• China dominates the production of neodymium-iron-boron (NdFeB) magnets, which are vital for EV motors, power steering, braking, and more.
• Though rare earth metals are globally available, China leads in efficient processing—a position once held by the US and Japan.
• Japan has revived part of its mineral processing industry through policy measures, while the US and India remain largely dependent on Chinese exports.
• Supply Chain Barriers Amid Geopolitical Tensions
  • In response to US tariffs under President Trump, China imposed bureaucratic barriers and later restricted exports of key critical minerals.
  • China has also restricted the export of several heavy rare earth elements and high-tech materials with potential military uses, intensifying supply chain concerns globally.

India’s EV Industry Hit by Chinese Export Curbs

• India’s emerging electric vehicle sector is facing production setbacks due to China’s restrictions on exporting rare earth magnets crucial for EV motors.
• Despite multiple requests, China has not approved any applications from Indian carmakers to source critical minerals, raising serious supply concerns.
• China mandates end-user licences and local government endorsements ensuring minerals won’t be used for military purposes—a major hurdle for Indian firms.
• Beijing is now urging foreign carmakers to purchase entire electric motor assemblies from Chinese suppliers, rather than just magnets.
• China has granted export permits to magnet producers serving companies like Volkswagen, reportedly after intense lobbying—something Indian firms have struggled to match.

G7 Action Plan Laid the Groundwork for Quad Critical Minerals Push

• The Quad Critical Minerals Initiative builds on the G7 Critical Minerals Action Plan announced in Canada, which India also endorsed.
• The G7 plan commits to partnering with emerging markets and developing countries to diversify supply chains and promote local value addition.
• G7 finance ministers pledged support for the World Bank-led Resilient and Inclusive Supply Chain Enhancement (RISE) initiative.
• India’s National Critical Mineral Mission
  • India’s Mines Ministry proposed external funding via RISE for its ₹16,300 crore National Critical Mineral Mission, which aims to strengthen exploration, overseas acquisition, R&D, and recycling.
  • India joined the US-led Minerals Security Partnership (MSP) in June 2023.
    • The MSP was formed in June 2022 with all G7 countries and a few others like Australia, South Korea, Finland, and Sweden. 
  • During PM Modi’s visit to Washington in February 2025, India and the U.S. signed the Transforming Relationship Utilizing Strategic Technology (TRUST) initiative to collaborate on mineral extraction and processing technologies.
    • The TRUST agreement targets key minerals like lithium and rare earth elements, aiming to co-develop extraction and processing capabilities.

Why in News?

NITI Aayog has proposed measures to nearly double India’s $44 billion chemical exports by 2030.

Key recommendations include developing production clusters for scale, upgrading port infrastructure for improved logistics and storage, and introducing a sales-linked incentive scheme to localise production and enhance exports of critical chemicals.

The initiative addresses limited domestic demand as a major growth constraint.

What’s in Today’s Article?

• India’s Chemical Industry
• Government Support to Chemical Industry
• NITI Aayog Charts Roadmap to Boost Chemical Exports

India’s Chemical Industry

• India is the 6th largest chemical producer globally and 3rd in Asia, contributing 7% to the national GDP. It ranks 14th in global chemical exports (excluding pharma).
• In FY23, exports of major chemicals and petrochemical products stood at US$ 23.8 billion.
• It had a $31 billion trade deficit in chemicals in 2023 and held a 3.5% share in global value chains, compared to China’s 23%.
• India’s chemical market was valued at $220 billion in 2023, with ambitions to reach $1 trillion by 2040.
  • Experts emphasized the need to prioritize exports, noting that domestic demand alone cannot drive the sector to a $1 trillion valuation by 2040.
• Regional Manufacturing Hubs
  • Chemical manufacturing is concentrated in Maharashtra and Gujarat, with West Bengal and Tamil Nadu also being major contributors.
  • India’s chemical industry produces over 80,000 commercial products and is classified into bulk chemicals, agrochemicals, specialty chemicals, polymers, petrochemicals, and fertilizers.
• Global Leadership in Niche Segments
  • 4th largest agrochemical producer
  • 3rd largest polymer consumer
  • Major exporter of dyes and colourants, contributing 16–18% to global dyestuff production and holding a ~15% market share in colourants

Government Support to Chemical Industry

• India has de-licensed the sector (except hazardous chemicals) and is promoting PCPIRs and plastic parks to provide modern infrastructure, increase output, and generate employment.
• PCPIR Policy 2020–2035: Driving Massive Investment and Job Creation
  • The revised Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) Policy targets:
    • US$ 142 billion investment by 2025
    • US$ 213 billion by 2030
    • US$ 284 billion by 2035
• Chemical Promotion and Development Scheme (CPDS)
  • CPDS supports the growth of the chemical and petrochemical industry through:
    • Creation of knowledge products
    • Knowledge dissemination via surveys and studies
    • Excellence awards for research and innovation in the sector

NITI Aayog Charts Roadmap to Boost Chemical Exports

• NITI Aayog aims to nearly double India’s annual chemical exports from $44 billion by 2030, citing limited domestic demand as a major constraint.
• Proposed measures include:
  • Developing new and existing production clusters
  • Upgrading port infrastructure for improved logistics and storage
  • Launching a sales-linked incentive scheme to promote local production and exports of critical chemicals
• Shift to Specialty Chemicals to Raise Global Value Chain (GVC) Share
  • The report suggests India can double its share in global value chains to 5–6% by 2030 by moving from bulk to high-demand specialty chemicals and increasing exports by $35–40 billion with the right policy support.
• Proposed Sales-Linked Incentive as Opex Subsidy
  • A sales-linked incentive scheme, structured as an operational expenditure (opex) subsidy, is proposed to:
    • Reduce dependence on specific countries for imports
    • Expand capacity in targeted sectors like agrochemical and pharma intermediates, battery chemicals, dyes, pigments, and petrochemicals
• Identifying Supply Chain Choke Points
• The report stressed the importance of identifying potential choke points in India’s chemical supply chain—mirroring China’s approach in 2018—to guide the strategic allocation of subsidies.
• Revamping PCPIRs and Revitalizing Hubs
  • The report called for revitalizing existing Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs) in Dahej, Paradeep, and Vizag, which face infrastructure, financing, and regulatory challenges.
• Port-Centric Cluster Development and Infrastructure Gaps
  • It recommended forming a Chemical Committee to address port infrastructure bottlenecks and proposed the development of eight high-potential chemical clusters linked to 14 major and 12 minor ports across the country.

Why in the News?

The Supreme Court recently held that the passing of an Act by the State of Chhattisgarh, subsequent to its order, cannot be said to be an act of contempt of the order passed by the Court.

What’s in Today’s Article?

• Chhattisgarh Case (Background, Legislative Response, Supreme Court’s Ruling, Implications, Significance, etc.)

Introduction

• The Supreme Court of India recently concluded a writ and contempt petition in the landmark case of Nandini Sundar and Others vs State of Chhattisgarh.
• The Court clarified that the passing of a new State law, even when related to a matter previously ruled upon, cannot be equated with contempt unless it contradicts constitutional norms.
• This judgment highlights the boundaries of judicial review in legislative affairs and reaffirms the doctrine of separation of powers in Indian democracy.

Background to the Case

• In July 2011, the Supreme Court issued a significant order prohibiting the use of Special Police Officers (SPOs) by the Chhattisgarh government for anti-Maoist operations.
• The Court had ruled that recruiting inadequately trained and poorly paid SPOs for counter-insurgency was violative of Articles 14 and 21 of the Constitution, which safeguard the right to equality and right to life, respectively.
• It also directed the withdrawal of all arms issued to SPOs and ordered the Union Government to cease funding their recruitment.

Legislative Response by Chhattisgarh

• Subsequent to the Court’s 2011 order, the Chhattisgarh government enacted the Chhattisgarh Auxiliary Armed Police Forces Act, 2011.
• This law authorised the creation of an auxiliary force to support regular security forces in controlling insurgencies, with specific provisions to address the Court’s earlier concerns:

• Section 4(1) authorised auxiliary forces for non-frontline assistance.
• Section 5(2) ensured such personnel would not be deployed in direct combat.
• Mandatory training of six months and strict eligibility screening were introduced.

• This legislative move was challenged as being in violation of the 2011 judgment, leading to the contempt petition.

Supreme Court’s Ruling on Contempt

• The Supreme Court dismissed the contempt allegations on the following grounds:

• Compliance with Prior Orders:
• The Court noted that all directions issued in 2011 were duly complied with by the Chhattisgarh government, including reports submitted to that effect.
• Legislative Competence and Validity:
• The Court held that legislatures, whether State or Parliament, possess plenary powers to enact laws as long as those laws are within their legislative competence and conform to constitutional mandates.
• A newly enacted law, by itself, cannot be deemed as contempt of Court unless it is shown to contradict the Constitution.
• Separation of Powers Doctrine:
• Citing precedents such as Indian Aluminium Co. vs State of Kerala (1996), the Court emphasised that judicial, legislative, and executive branches must maintain their functional boundaries.
• The Court reaffirmed that judicial review can only test a law's constitutionality, not the mere fact of its enactment.

Implications for Judicial Oversight and State Legislation

• This ruling reinforces the principle that courts cannot obstruct legislatures from enacting laws unless such laws are proven unconstitutional.
• It acknowledges a legislature's right to respond to judicial pronouncements by drafting fresh laws that address previously flagged concerns.
• Furthermore, it also underscores how constitutional courts cannot act as supervisory bodies over the legislative process unless the outcome is ultra vires to the Constitution or lacks legislative competence.

Broader Significance

• Preserving Democratic Balance
• The judgment affirms that the Indian judiciary, while empowered to interpret laws and protect fundamental rights, must not undermine the legislative domain unless constitutional limits are breached.
• Legal Clarity for Contempt Cases
• It sets a precedent that enacting new legislation post-judicial pronouncement does not automatically amount to contempt, thereby offering clarity to both lawmakers and petitioners.
• Guidance for Future Law-making
• State governments can now confidently legislate on sensitive issues provided they incorporate judicial concerns and adhere to constitutional boundaries.

Why in News?

In response to surging pulse imports and rising domestic demand, the Department of Consumer Affairs, under the Ministry of Consumer Affairs, Food and Public Distribution, has initiated a targeted programme.

This programme aims to promote arhar (tur) and urad cultivation across several Indian states during the Kharif season 2025.  This is part of a broader food security and import reduction strategy.

What’s in Today’s Article?

• Key Highlights and Government Initiatives
• Pulse Production and Trade Trends
• Policy Support for Pulse Cultivation

Key Highlights and Government Initiatives:

• Launch of pulse cultivation campaign:
  • Aim: The Department of Consumer Affairs will promote arhar and urad cultivation through seed distribution campaigns.
  • Implementation: By the National Cooperative Consumer’s Federation of India Ltd. (NCCF).
  • Extent: The campaign is extended from a successful pilot in two Jharkhand districts to 12 districts across seven states -
    • Jharkhand: Palamu, Latehar, Garhwa
    • Uttar Pradesh: Mirzapur, Lalitpur
    • Bihar: Gaya, Jehanabad
    • Karnataka: Vijaypura
    • Others: Manipur and Tripura (districts not specified)
• Criteria for district selection: Rainfed areas, presence of Aspirational Blocks as identified by NITI Aayog.
• Financial and procurement support:
  • ₹1 crore allocated for seed distribution.
  • 100% procurement guarantee at Minimum Support Price (MSP) if market price falls.
  • MSP for Kharif Marketing Season 2025-26 -
    • Arhar: ₹8,000/quintal
    • Urad: ₹7,800/quintal

Pulse Production and Trade Trends:

• Overview:
  • Pulses are rich in protein (20–25% by weight); crucial for a carbohydrate-rich Indian diet.
  • India is the largest producer of pulses globally.
  • Major pulses produced in India are Arhar (Tur), Urad, Moong, Masur, Gram, etc.
• Domestic production trends:
  • Increased from 163.23 lakh tonnes in 2015–16 to 244.93 lakh tonnes in 2023–24.
  • Key producing states: MP, Maharashtra, Rajasthan, UP, Karnataka, Tamil Nadu, Kerala, West Bengal, etc.
  • Import-export data (in lakh tonnes):
    • In 2021-22, imports are 26.99 and exports are 3.87.
    • In 2022-23, imports are 24.96 and exports are 7.62.
    • In 2023-24, imports are 47.38 (~$5 billion) and exports are 5.94 ($ 686.9 million) Imports doubled in 2023–24 compared to previous year, highlighting dependency risks.
• Major export destinations: Bangladesh, China, UAE, USA, Sri Lanka.
• India's major destinations for pulse imports: Canada, Australia, Myanmar, Mozambique, and Tanzania.

Policy Support for Pulse Cultivation:

• Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA): Under the Price Support Scheme (PSS), the government procures pulses at MSP. Procurement limit of 25% lifted for Tur, Masoor, and Urad during 2023–24 and 2024–25.
• National Food Security Mission (NFSM): Implemented in 28 States and 2 UTs (J&K and Ladakh), it aims to enhance foodgrain production including pulses.
• Crop Diversification Programme (CDP): Implemented in Green Revolution States - Haryana, Punjab, Western UP, it encourages shift from water-intensive paddy to pulses and oilseeds.
• Rashtriya Krishi Vikas Yojana (RKVY): It offers states flexibility to address regional agricultural needs, including pulse promotion.

Context

• India's Parliament, envisioned as a crucible for debate, deliberation, and democratic decision-making, has increasingly been overshadowed by disruptions and political theatrics.
• In this shifting landscape, it becomes easy to forget that Parliament is not merely a stage for political performance but a vital institution for shaping policy and holding the government accountable.
• At the heart of effective legislating lies access to rigorous research and informed analysis, a domain where India's parliamentary infrastructure still has significant room for growth.

The Role of Research in Parliamentary Functioning

• Legislating on complex issues such as climate change, economic reforms, national security, and emerging technologies demands more than ideological commitment or political rhetoric, it demands knowledge, data, and analytical insight.
• While the Indian Parliament houses one of the country's most comprehensive libraries, it remains underutilised by Members of Parliament (MPs).
• The Library and the Reference, Research, Documentation and Information Service (LARRDIS) do provide reliable, digitised information, yet the institution is hampered by its reactive nature and limited scope.
• Despite LARRDIS's commendable archival efforts and prompt response times, its structural limitations hinder its potential.
• As one MP rightly noted, LARRDIS is not a research organisation or an academic institution.
• It primarily caters to specific queries rather than proactively anticipating the research needs of MPs, especially in an era when policy challenges are increasingly multifaceted and fast-evolving.

PRS and the LAMP Fellowship and The Case for Reforming LARRDIS

• PRS and the LAMP Fellowship
  • Notably, PRS Legislative Research, through its Legislative Assistants to Members of Parliament (LAMP) Fellowship, provides critical policy support to select MPs.
  • Although widely acknowledged for its value addition, the reach of LAMP remains limited.
  • With fewer than 50 fellows supporting over 800 MPs, the program is not scalable enough to meet broader institutional needs.
  • Consequently, MPs often rely on partisan aides or politically motivated talking points, leading to debates that lack rigour and nonpartisan insight.
• The Case for Reforming LARRDIS
  • The answer lies not in dismantling existing institutions but in reforming and revitalising them.
  • LARRDIS must evolve from a passive information repository to a dynamic, anticipatory, and inclusive research centre.
  • Despite a significant rise in information requests, from just 150 in 1950 to over 8,000 in 2019, LARRDIS continues to operate in a silo, lacking strategic partnerships with universities, think tanks, and civil society.
  • A restructured LARRDIS could function as a bridge between academic knowledge and legislative needs, harnessing India's vibrant intellectual ecosystem.
  • By collaborating with premier academic institutions, think tanks, and international bodies, LARRDIS can provide forward-looking, evidence-based insights on pressing national and global issues.

The Way Forward

• Learning from Global Best Practices
  • The European Parliamentary Research Service (EPRS), for example, combines accessibility with in-depth policy analysis, tracking global trends and providing detailed evaluations of legislative proposals.
  • Similarly, Argentina’s OCAL links parliamentarians with experts, organises citizen-scientist dialogues, and conducts policy-relevant research.
  • In Sweden, the Association of MPs and Researchers (RIFO) creates regular interaction between lawmakers and scientific communities.
  • India can draw inspiration from these examples by encouraging partnerships that expand its knowledge base, while also retaining the core principles of neutrality, confidentiality, and institutional memory.
• A Strategic Investment in Democratic Governance
  • Transforming LARRDIS into a world-class research hub is not a mere administrative upgrade; it is a strategic investment in the future of Indian democracy.
  • Such reform would reduce the information asymmetry between the legislature and executive, improve the quality of parliamentary debates, and promote evidence-informed policymaking.
  • The stakes are high: in a country as large and diverse as India, the consequences of poorly informed legislation can be profound and far-reaching.
  • The reform must be phased, consultative, and grounded in clear guidelines, including eligibility, turnaround times, and confidentiality norms.
  • Drawing talent from think tanks, international organisations such as the World Bank or the OECD, and academic institutions would ensure a steady supply of high-quality research.
  • Moreover, extending access to such services beyond MPs, to citizens and scholars, can develop greater transparency and participatory democracy.

Conclusion

• If Parliament is the soul of Indian democracy, then research is its conscience.
• A robust, well-resourced, and visionary research apparatus is essential for Parliament to reclaim its centrality in shaping the nation's destiny.
• Revamping LARRDIS, expanding fellowships, and building bridges with India’s academic and research communities can ensure that legislative processes are guided not by political expediency, but by knowledge, analysis, and foresight.
• In a time when trust in democratic institutions is both vital and vulnerable, such a transformation could well be the anchor that India’s democracy needs.

Context

• The Constitution of India is a living testament to the ideals, struggles, and aspirations of a nation born out of an anti-colonial movement rooted in justice, equality, and dignity.
• Among its most enduring and fundamental values are socialism and secularism, not incidental additions to the Preamble, but principles deeply woven into the Constitution's very fabric.
• The recent demand to remove these terms from the Preamble is not simply a semantic or symbolic gesture.
• It is, in essence, a direct attack on the moral and ideological foundations of the Indian Republic.

Historical Context and Motivations

• The call to excise the words socialist and secular from the Preamble under the guise of revisiting the events of the Emergency (1975–77) is both opportunistic and misleading.
• These terms were indeed added during the 42nd Constitutional Amendment in 1976, a period marked by democratic repression, but the attempt to link the origins of these principles solely to that political context is historically dishonest.
• It deliberately ignores the fact that these values were already deeply embedded in the Constitution’s ethos, even before their explicit inclusion.
• To now use that period to delegitimise foundational values is not only opportunistic but undermines the moral authority of the Indian freedom struggle.

The Significance of the Words ‘Socialist’ and ‘Secular’

• Socialism in the Constitution: More Than a Word
  • Socialism in the Indian context is not a rigid ideological commitment to state ownership, but a moral and constitutional promise of social and economic justice.
  • The Constitution aims to eradicate inequality and establish a welfare-oriented state.
  • The Preamble itself speaks of Justice, social, economic, and political” and pledges Equality of status and of opportunity, thereby reaffirming a socialist orientation.
  • This commitment is echoed throughout the Fundamental Rights and Directive Principles of State Policy. Articles 14, 15, and 16 ensure equality before the law, prohibit discrimination, and guarantee equal opportunities in employment.
• Secularism: The Bedrock of Unity in Diversity
  • India’s secularism is unique, it does not mandate a wall of separation between religion and state as in the West, but affirms equal respect for all religions and the right of every citizen to freely profess and practice their faith.
  • Far from being a post-1976 innovation, this spirit is evident in the original Constitution.
  • The Preamble, even before the 42nd Amendment, guaranteed Liberty of thought, expression, belief, faith and worship and Fraternity assuring the dignity of the individual.
  • Significantly, the Supreme Court, in multiple landmark rulings, has upheld secularism as part of the basic structure of the Constitution, a concept first articulated in the historic Kesavananda Bharati case (1973).
• Ingrained Ideals, Not Imposed Additions
  • To portray socialism and secularism as artificial insertions imposed during a time of political turmoil is to fundamentally misunderstand and misrepresent constitutional history.
  • The Objective Resolution moved by Jawaharlal Nehru in the Constituent Assembly, as well as the debates that followed, reflect a conscious commitment to social justice and religious pluralism.
  • These were not alien imports, but the distilled wisdom of a nation that had witnessed the horrors of colonialism, communalism, and inequality.
  • Even Dr. B.R. Ambedkar, in his final address to the Constituent Assembly on November 25, 1949, emphasised equality as the moral bedrock of the Republic.

The Real Agenda Behind the Demand

• The demand to remove socialism and secularism is not an isolated or innocent revisionist suggestion.
• It is part of a larger ideological agenda to subvert the inclusive and democratic character of the Indian Constitution and replace it with a vision rooted in majoritarianism.
• The effort to delegitimise socialism and secularism is a covert attempt to rewrite history, weaken minority protections, dismantle social welfare frameworks, and erode the constitutional vision of India as a sovereign, socialist, secular, democratic republic.

Conclusion

• The Constitution of India is not just a legal instrument; it is a moral compass that guides the Republic toward justice, liberty, equality, and fraternity.
• Socialism and secularism are not ornamental additions; they are foundational pillars that uphold the spirit of India’s democracy.
• Any attempt to undermine them must be seen as an attack on the soul of the nation itself.

Why in News?

In a landmark judgment with deep constitutional implications, the Madras High Court quashed a 2011 phone-tapping order issued by the Union Ministry of Home Affairs (MHA).

The Court held that such surveillance, absent the conditions of "public emergency" or "public safety," violated the fundamental right to privacy under Article 21 of the Constitution.

The judgment reinforces jurisprudence established in the PUCL (1997) and Puttaswamy (2017) cases.

What’s in Today’s Article?

• Key Highlights of the Judgment
• Legal Framework and Judicial Interpretation
• CBI’s Contention and Court’s Rebuttal
• Broader Constitutional Implications
• Conclusion

Key Highlights of the Judgment:

• Violation of Article 21 – Right to Privacy:
  • The Court ruled that phone tapping constitutes a breach of privacy unless it adheres to the procedure established by law.
  • The Court observed that covert surveillance for crime detection does not qualify under exceptions like public emergency or public safety.
  • It cited the K.S. Puttaswamy v. Union of India (2017) decision, which elevated the right to privacy to a fundamental right.
• Key observation by the Madras HC: “The impugned order does not meet the thresholds of 'public emergency' or 'public safety'... It is a secretive operation which falls outside the legal framework laid down by the Supreme Court.”
• Case background:
  • Surveillance was authorised in 2011 under [Section 5(2)] of the Indian Telegraph Act, 1885 and (Rule 419-A) of the Indian Telegraph Rules, 1951, on the allegation of a bribe of ₹50 lakh to an Income Tax officer.
  • CBI argued interception was necessary to detect and prevent corruption.
  • A writ petition (under Article 226 of the Constitution) was filed in 2018 against the surveillance order.

Legal Framework and Judicial Interpretation:

• Indian Telegraph Act and Rules:
  • Section 5(2) allows interception only in case of a public emergency or in the interest of public safety.
  • Rule 419-A mandates the interception to be reviewed by a Review Committee, which was not done in this case.
• Supreme Court precedents:
  • PUCL v. Union of India (1997): Established that phone tapping is permissible only under stringent conditions.
  • K.S. Puttaswamy (2017): Recognised privacy as a fundamental right under Article 21.
  • Maneka Gandhi v. Union of India (1978): Any law or procedure impacting fundamental rights must be just, fair, and reasonable.

CBI’s Contention and Court’s Rebuttal:

• CBI's arguments:
  • Claimed tapping was necessary to uncover a bribe.
  • Emphasized public interest in preventing corruption.
  • Claimed Rs 50 lakh cash was recovered from a car associated with the first accused (tax officer).
• Court’s response:
  • The petitioner was not present at the scene of seizure.
  • Scope of Section 5(2) cannot be expanded to accommodate secret crime detection.

Broader Constitutional Implications:

• Evolution of the Right to Privacy: The court order detailed the evolution of the right to privacy,
  • Tracing its journey from early British common law to landmark US Supreme Court cases like Katz v. United States, and
  • Culminating in the Indian apex court’s interpretation in Puttaswamy.
• Emphasis: Executive overreach without legal sanction threatens democratic values.
• Reaffirmation: Procedure affecting fundamental rights must follow due process, aligning with natural justice and civilised norms.

Conclusion:

This verdict is a milestone in upholding individual liberties against unlawful state surveillance.  It clarifies the constitutional limitations on executive powers, particularly in the context of modern surveillance technologies, and reinforces the judiciary's role in safeguarding democratic freedoms in India.

Why in the News?

India’s key labour survey, the PLFS, has come under scrutiny for failing to adequately capture the growing gig and platform workforce despite policy-level recognition and welfare initiatives.

What’s in Today’s Article?

• Gig Workforce (Background, Legal Definitions, Policy Intentions, Limitations of PLFS, Current Measures, Way Forward)

Recognising the Growing Gig Workforce

• India’s workforce has undergone a structural transformation in recent years with the rise of gig and platform-based employment.
• From food delivery and ride-hailing to digital freelancing and home services, a new generation of workers is operating outside traditional employment frameworks.
• According to a 2022 NITI Aayog report, India’s gig workforce is projected to grow to 23.5 million by 2029-30.
• Recognising this shift, the 2025 Union Budget extended key social protection measures to gig workers.
• However, the country’s primary labour statistics source, the Periodic Labour Force Survey (PLFS), still fails to appropriately reflect this emerging segment.

Legal Definitions and Policy Intentions

• The legal groundwork for recognising gig and platform workers was laid through the Code on Social Security, 2020.
• It defines gig workers as those engaged in income-generating work outside a traditional employer-employee relationship. Platform work, specifically, involves using digital platforms to access clients or services in exchange for payment.
• Chapter I, Section 2(35) of the Code offers this broad definition but does not sufficiently distinguish gig workers from categories like the self-employed or casual labourers.
• Clause 141 of the same Code mandates the creation of a Social Security Fund for gig and unorganised workers.
• The National Social Security Board, under Section 6, is entrusted with designing and monitoring welfare schemes.
• However, for these welfare mechanisms to function effectively, they rely on robust labour statistics, which are currently lacking in granularity for gig roles.

Limitations of the Periodic Labour Force Survey (PLFS)

• Inclusion Without Visibility
  • The Ministry of Statistics and Programme Implementation recently clarified in Parliament that while all economic activities, defined as activities performed for pay or profit, are included in PLFS, no specific changes have been made to identify gig workers separately.
  • This means that gig workers are captured under broad and vague classifications like ‘self-employed’, ‘own-account workers’, or ‘casual labour’.
  • As a result, key aspects of gig work, such as multiple app-based employment, dependence on platform algorithms, income volatility, and absence of employment contracts, remain unreported.
  • This “statistical invisibility” not only underrepresents the scale of gig work but also hinders equitable access to welfare and social protection.
• Misclassification and Misrepresentation
  • The existing PLFS design does not differentiate between a traditional shopkeeper and a food delivery worker operating across multiple platforms like Zomato or Swiggy.
  • Both may be classified under the “self-employed” category, even though their work conditions, income sources, and risk exposures vary significantly.
  • Gig work often involves:

• Lack of written job contracts
• No employer-provided safety nets
• Dependency on digital platforms and customer ratings
• Flexible but precarious task-based arrangements
• These nuances go unnoticed in PLFS coding, undermining the precision of labour data used in policymaking.

Current Measures: Recognition Without Representation

• In recent years, government initiatives such as e-Shram registration, digital ID issuance, and inclusion under Ayushman Bharat PM-JAY have aimed to bring gig workers into the formal safety net.
• However, without parallel updates in labour statistics, it becomes difficult to measure the impact, monitor delivery, or identify excluded beneficiaries.
• The 2025 PLFS revision introduced some improvements, like a larger sample size, monthly estimates, and expanded rural coverage.
• But it still fails to address the core issue, the lack of a dedicated category for gig and platform-based work.

Towards Inclusive Labour Statistics

• India's labour statistics framework must evolve to support the realities of a changing workforce. This means:

• Updating PLFS classification codes to identify gig and platform workers distinctly.
• Introducing special survey modules or time-use surveys to capture task-based work.
• Leveraging digital trace data (e.g., from platforms like Uber, Urban Company) to supplement official statistics.
• Ensuring that beneficiary data from welfare schemes feeds into national employment databases.

• Inclusive labour data is not just about representation; it is crucial for delivering effective and equitable welfare.

Context

• In India, millions of individuals endure unnecessary physical and emotional suffering, often in the final stages of life, due to limited access to palliative care.
• Despite its essential role in alleviating pain and enhancing the quality of life for patients with terminal or chronic conditions, palliative care remains critically underfunded and underutilised.
• As India’s burden of non-communicable diseases rises and health-care systems are increasingly strained, integrating palliative care into mainstream health policy and practice has become not only necessary but urgent.

The Significance of Palliative Care

• Palliative care is a specialised medical approach that addresses the physical, emotional, social, and spiritual needs of individuals facing serious illnesses.
• Unlike curative treatments that aim to eradicate disease, palliative care focuses on improving patient comfort, reducing suffering, and ensuring dignity at every stage of illness, including at the end of life.
• According to the World Health Organization (WHO), around 40 million people worldwide require palliative care annually, with 78% residing in low- and middle-income countries.
• However, only 14% of those in need receive such support.
• In India, where between seven to ten million people require palliative care each year, only 1%–2% actually have access to it, a stark indicator of the system’s limitations.

Systemic Challenges in India

• Implementation Challenges
  • The growing incidence of non-communicable diseases such as cancer, diabetes, and chronic respiratory conditions further accentuates the demand for palliative care.
  • However, India’s health-care infrastructure faces multiple challenges in meeting this need.
  • While the National Health Policy of 2017 acknowledged the importance of palliative care, actual implementation has remained patchy and uneven, especially in rural and economically disadvantaged regions.
• Lack of Trained Professionals.
  • Though India boasts a doctor-population ratio of 1:834, better than the WHO norm of 1:1000, the number of medical professionals trained specifically in palliative care is disproportionately low.
  • Most medical practitioners receive minimal training in pain management or end-of-life care, resulting in inconsistent service delivery.
• Funding Constraints
  • Furthermore, inadequate funding and infrastructural gaps impede the expansion of palliative care services.
  • While palliative care has found limited inclusion in primary health care, it remains largely absent from tertiary care systems.
• Public Awareness: Misconceptions persist, and many patients seek palliative care only in the terminal stages of illness, by which time meaningful intervention is often no longer possible.

The Way Forward to Overcome These Challenges

• Enhancing the Role of Medical Education and Allied Health Workers
  • To bridge these systemic gaps, a foundational shift in medical education is needed.
  • Integrating palliative care into the MBBS curriculum would equip future doctors with both the clinical skills and the compassionate mindset necessary for delivering high-quality end-of-life care.
  • Institutions such as the Indian Council of Medical Research and the All-India Institute of Medical Sciences have initiated projects aimed at promoting pain and palliative care, indicating slow but steady progress in this direction.
  • Additionally, task-shifting, the delegation of certain responsibilities to trained non-physician health workers, offers a viable solution to India’s shortage of palliative care specialists.
  • With a sizable workforce comprising over 34 lakh registered nurses and 13 lakh allied health professionals, India has the human resource potential to significantly expand access to palliative services.
  • Targeted training and empowerment of this workforce can play a crucial role in delivering holistic, community-based care.
• Policy Reforms and Financial Accessibility
  • For sustainable impact, policymakers must prioritise long-term investments in palliative care infrastructure and training.
  • Insurance schemes like Ayushman Bharat should expand their coverage to include palliative services, making them more financially accessible.
  • Dedicated funding for public and private facilities to build palliative care units is equally important.
  • Partnerships with non-governmental organisations and private institutions can accelerate the reach and quality of care.
  • Learning from global best practices, such as the United States' well-funded and insurance-backed hospice care system, India can design cost-effective models that ensure both dignity and efficiency, tailored to its socio-economic context.
• The Need for Public Awareness
  • Many people remain unaware that palliative care is not limited to end-of-life scenarios but includes pain relief, psychological support, and enhanced quality of life at all stages of a serious illness.
  • Public education campaigns can help dispel myths, encourage early intervention, and foster community support for patients and caregivers.

Conclusion

• The integration of palliative care into India’s health-care framework is no longer optional, it is a moral, medical, and social imperative.
• A multi-pronged approach involving policy reforms, curriculum redesign, task-shifting, infrastructure investment, and public education is essential to ensuring equitable access to palliative care for all.
• Such efforts will not only improve patient outcomes but also reduce the broader economic and emotional burdens on families and the health-care system.

Context

• India’s engagement with the Global South has witnessed a dynamic transformation over the past decade.
• The country has not only increased its financial commitment but has also diversified its modalities of development cooperation.
• However, the changing contours of global finance, worsened by a mounting debt crisis in the Global South and shrinking traditional aid flows, necessitate a strategic recalibration.
• Within this evolving framework, Triangular Cooperation (TrC) has emerged as a potent mechanism to augment and redefine India’s development outreach.

Rising Trends of India’s Development Cooperation and Shifting Financial Realities

• Rising Trends in Development Cooperation
  • India's development partnership with the Global South has grown both in scope and volume.
  • Between 2010-11 and 2023-24, India nearly doubled its development outflows from $3 billion to $7 billion.
  • These flows have been channelled through a variety of modalities, including capacity building programmes, technology transfer, and duty-free access to Indian markets.
  • However, the cornerstone of this engagement has been the Lines of Credit (LoCs) extended under the Indian Development and Economic Assistance Scheme (IDEAS).
  • LoCs have allowed India to support infrastructure and development projects in partner countries at concessional rates.
  • India borrowed from international capital markets and lent to partner nations at softer terms, absorbing the difference through state subsidies.
  • While effective in the past, this model is facing headwinds in the current global context of fiscal uncertainty and rising debt burdens.
• Shifting Financial Realities and the Debt Conundrum
  • The budgetary provisions for 2025-26 hint at a significant rethink.
  • The Finance Ministry has raised concerns about the continued viability of LoCs.
  • At multilateral forums such as the G-20, India has voiced apprehension over the ballooning sovereign debt across the Global South, signalling a cautious turn in its financial strategy.
  • This prudence is justified. The global financial environment has become increasingly volatile, making capital market borrowing less predictable and raising the risk of default among recipient countries.
  • Furthermore, traditional sources of development finance, especially Official Development Assistance (ODA), are witnessing a dramatic decline.
  • The total ODA is projected to fall from $214 billion in 2023 to $97 billion, a staggering 45% reduction.

India’s Proposal Towards a Balanced Modality Framework and Emergence of Triangular Cooperation

• India’s Proposal Towards a Balanced Modality Framework
  • In response, India is advocating for a more balanced and nuanced engagement
  • During the third Voice of Global South Summit (VoGS) in 2024, Prime Minister Narendra Modi proposed a Global Development Compact (GDC).
  • GDC is an integrated framework that harmonises five key modalities: capacity building, technology transfer, market access, grants, and concessional finance.
  • This reflects a strategic shift from over-reliance on LoCs toward a diversified model rooted in long-term sustainability, mutual growth, and risk-sharing.
  • To strengthen this approach, India is also focusing on forming wider and deeper partnerships, particularly those that can operate effectively in third countries.
• The Emergence of Triangular Cooperation (TrC)
  • One of the most promising frameworks in this new paradigm is Triangular Cooperation (TrC).
  • This model brings together a traditional donor from the Global North, a pivotal partner from the Global South (like India), and a recipient developing country.
  • The purpose is to co-create development solutions that are context-specific, cost-effective, and mutually beneficial.
  • TrC offers a distinct advantage by pooling resources, expertise, and best practices. While comprehensive data is still emerging, preliminary estimates suggest TrC projects are valued between $670 million and $1.1 billion.
  • Countries like Brazil, Indonesia, Japan, and Germany have already built a portfolio of successful TrC engagements, working collaboratively in regions such as Southeast Asia, Africa, and Latin America.

India’s Strategic Use of TrC

• India has actively embraced TrC as a vehicle for expanding its development diplomacy.
• A landmark moment came in 2022 with the signing of a Joint Declaration of Intent with Germany, aiming to implement TrC projects across Africa, Asia, and Latin America.
• Projects are now underway in countries such as Cameroon, Ghana, Malawi, and Peru, focusing on sectors like energy, education, and healthcare.
• These initiatives showcase how infrastructure investment can create ripple effects on social outcomes.
• Improved energy grids, for instance, boost digital connectivity and access to online education and health services.

Conclusion

• While LoCs have historically underpinned its engagement, changing financial realities, sovereign debt pressures, and a shifting aid landscape necessitate a strategic reset.
• The Global Development Compact and the embrace of Triangular Cooperation represent forward-looking solutions.
• By leveraging its diplomatic capital, technical know-how, and a collaborative ethos, India is well positioned to co-create a resilient and equitable development architecture, one that balances ambition with realism, and partnership with pragmatism.

Why in news?

PM Modi began a five-nation tour from July 2 to 9, 2025, covering Ghana, Trinidad & Tobago, Argentina, Brazil, and Namibia.

What’s in Today’s Article?

• Ghana Visit
• Trinidad & Tobago Visit
• Argentina visit
• Brazil Visit
• Namibia Visit
• India’s Global South Outreach: Challenges
• Conclusion

Ghana Visit

• Prime Minister Narendra Modi's visit marks the first bilateral trip by an Indian PM to Ghana in three decades. It is also his first visit to the country.
• India is the largest destination for Ghanaian exports, with gold making up over 70% of India’s imports from Ghana.
• A proposal for a vaccine manufacturing hub and digital initiatives highlights India’s COVID-era goodwill, but the presence of China and the EU makes execution competitive and difficult.

Trinidad & Tobago (T&T) Visit

• PM Modi’s visit marks his first to Trinidad & Tobago and the first bilateral visit by an Indian PM in over two decades.
• Around 40–45% of the Indian diaspora in the Caribbean resides in T&T.
  • Both PM Kamla Persad-Bissessar and President Christine Carla Kangaloo are of Indian origin.
• The visit also commemorates 180 years since the arrival of Indian immigrants in T&T.
• India-T&T bilateral trade reached $341.61 million in FY 2024–25, indicating steady economic growth and deepening commercial relations.
• This is PM Modi’s second visit to the Caribbean in eight months, following his trip to Guyana in November 2024, reflecting India’s strategic focus on the region.
• Despite this, critics argue that diaspora engagement has yet to translate into meaningful economic or tech collaboration.

Argentina visit

• PM Modi’s visit is the first bilateral trip by an Indian PM to Argentina in 57 years.
• He will hold talks with President Javier Milei, following their earlier meeting at the G20 Summit in 2024.
• India-Argentina ties have grown notably in the mineral resources sector, especially lithium—crucial for India’s green energy goals. Argentina also supplies soybean and sunflower oil to India.
• India ranked as Argentina’s fifth-largest trading partner and export destination in 2024, underscoring the growing economic significance of the partnership.
• However, political instability under President Javier Milei raises concerns about long-term consistency.

Brazil Visit

• PM Modi will attend the BRICS Leaders’ Summit, where he will meet President Luiz Inacio Lula da Silva.
• Following the summit, PM Modi will undertake a State Visit to Brasilia. He will hold detailed talks with President Lula to deepen the India-Brazil Strategic Partnership.
• Brazil remains India’s largest trading partner in South America, underscoring the importance of the relationship.
• Still, internal power imbalances—especially China’s assertiveness—pose limitations.

Namibia Visit

• PM Modi’s trip marks his first visit to Namibia and only the third by an Indian Prime Minister.
• Bilateral trade has surged from under $3 million in 2000 to nearly $600 million in 2025. Indian investments span mining, manufacturing, diamond processing, and services.
• The visit recalls the historic 2022 translocation of eight Namibian cheetahs to India’s Kuno National Park—marking the world’s first intercontinental relocation of a major carnivore species.
• The visit combines digital diplomacy (launching UPI) and environmental soft power (conservation discussions post-cheetah translocation).
• However, India enters a digital investment space already crowded by other global powers.

India’s Global South Outreach: Challenges

• PM Modi has embarked on an eight-day, five-nation tour covering three continents.
• This visit aims to strengthen India’s diplomatic and economic engagement with the Global South, reflecting India’s aspiration to lead among postcolonial, developing nations.
• Championing the Global South: Aspirations vs. Execution
  • India has long positioned itself as a voice for the Global South, notably through the 2023 Voice of the Global South Summit.
  • However, turning aspirational leadership into actionable, sustainable outcomes remains a significant challenge.
• Modest Scale and Follow-Through Deficit
  • India’s developmental outreach, while ambitious, often lacks the institutional scale and execution strength seen in China’s Belt and Road Initiative (BRI).
  • Initiatives announced frequently suffer from poor follow-through in infrastructure and trade facilitation.
• Overreliance on Soft Power
  • Cultural and diaspora diplomacy are important tools but risk becoming hollow without accompanying economic programs.

Conclusion

• This tour lays the foundation for new partnerships in critical minerals, digital public goods, climate action, and vaccine production.
• It may also signal the emergence of “Modi Doctrine 3.0” – a foreign policy approach centered on Global South solidarity, technology-led diplomacy, and institutional reform.

Why in News?

Recently, in two significant rulings, US courts sided with tech companies developing generative AI, addressing for the first time whether training AI models on copyrighted content constitutes “theft.”

Generative AI tools like ChatGPT and Gemini rely on massive datasets—including books, articles, and internet content—for training. While various lawsuits have been filed accusing tech firms of copyright infringement, the companies argue their use of content is “transformative” and qualifies as “fair use.”

Though the two court decisions arrived via different legal paths, both support the tech companies’ stance, potentially setting an important precedent for future cases.

These rulings highlight the growing legal acceptance of using copyrighted material in AI training under fair use—provided the output serves a transformative, public-interest purpose.

What’s in Today’s Article?

• Case 1: Writers vs Anthropic – Court Rules in Favour of AI Developer
• Case 2: Writers vs Meta – Court Sides with Meta, But Flags Compensation Concerns
• Ongoing and Escalating Legal Battles
• Significance of the Rulings: A Win, But Not the Final Word

Case 1: Writers vs Anthropic – Court Rules in Favour of AI Developer

• In August 2024, writers Andrea Bartz, Charles Graeber, and Kirk Wallace Johnson filed a class action lawsuit against Anthropic, creator of the Claude LLMs.
• They alleged that Anthropic used pirated versions of their books without compensation, harming their livelihoods by enabling free or cheap content generation.
• Court's Decision: Fair Use Applies
  • Judge of the Northern District of California ruled in favour of Anthropic, stating that the AI's training use was “fair use.”
    • The doctrine of fair use in copyright law allows limited use of copyrighted material without permission from the copyright holder.
    • It allows use for purposes such as criticism, comment, news reporting, teaching, scholarship, or research.
  • He emphasized the transformative nature of the process, noting that the AI did not replicate or replace the original works but created something fundamentally new.
  • Key Quote - The judge wrote: “Like any reader aspiring to be a writer, Anthropic’s LLMs trained upon works… to create something different.”

Case 2: Writers vs Meta – Court Sides with Meta, But Flags Compensation Concerns

• Thirteen authors filed a class action lawsuit against Meta, seeking damages and restitution for allegedly using their copyrighted works to train its LLaMA language models.
• The plaintiffs argued Meta copied large portions of their texts, with the AI generating content derived directly from their work.
• Court’s Decision: No Proven Market Harm
  • The Judge ruled in Meta’s favour, stating the plaintiffs failed to show that LLaMA’s use of their works harmed the market for original biographies or similar content.
  • While affirming the transformative potential of AI, the Judge noted that companies profiting from the AI boom should find ways to compensate original content creators, even if current use qualifies as fair use.

Ongoing and Escalating Legal Battles

• Anthropic faces a separate lawsuit from music publishers over copyrighted song lyrics.
• Meta and other tech companies remain entangled in numerous other copyright disputes.
• Twelve copyright lawsuits—including one from The New York Times—have been consolidated into a single case against OpenAI and Microsoft.
  • Publishing giant Ziff Davis is also suing OpenAI separately.
• Visual creators have sued platforms like Stability AI, Runway AI, Deviant Art, and Midjourney for unauthorized use of their work. Getty Images is suing Stability AI for copying over 12 million images.
• Indian Media’s Legal Challenge
  • 
  • In 2024, ANI filed a case against OpenAI for misusing Indian copyrighted content.
  • Major Indian media houses like The Indian Express, Hindustan Times, and NDTV have joined through the Digital News Publishers Association (DNPA), hinting at rising domestic litigation.

Significance of the Rulings: A Win, But Not the Final Word

• The court rulings favour Anthropic and Meta by upholding their use of copyrighted material under the “fair use” doctrine.
• However, both companies still face unresolved legal challenges—particularly for sourcing training data from pirated databases like Books3.
• While courts may allow AI’s current training practices, unresolved concerns remain: How will creators be protected? What happens to livelihoods and creativity as AI output grows?

Conclusion

These rulings mark a significant moment in the evolving legal landscape of AI, but they don’t resolve the fundamental copyright and ethical dilemmas surrounding AI-generated content.

Context:

India is shifting toward outcome-driven monitoring to enhance governance effectiveness, with several states piloting innovative data use frameworks to improve public service delivery.

Introduction: Shaping Viksit Bharat through Better Data Use

• In the journey toward a "Viksit Bharat" (Developed India), public service delivery must transcend traditional bureaucratic frameworks to become outcome-oriented, citizen-centric, and transparent.
• This transformation hinges on the effective use of data, not as a tool for inspection, but as a catalyst for improvement.
• While India generates extensive data across sectors, nutrition, education, health, and livelihoods, the current system often focuses on inputs rather than results.
• The call is clear: move from data fatigue to meaningful, informed action that supports better decision-making, empowers frontline workers, and addresses local needs dynamically.

India’s Expansive but Fragmented Data Ecosystem

• India’s governance ecosystem is replete with data sources:

• Unified District Information System for Education (UDISE+)
• Health Management Information System (HMIS)
• National Family Health Survey (NFHS)
• National Sample Survey (NSS)

• Despite these efforts, the emphasis largely remains on input tracking, school enrolments, food distribution, or health supplies, while outcome measures (like literacy, nutrition, or treatment success) receive less attention.
• Furthermore, national surveys are often too broad, infrequent, and disconnected from local programs.
• This results in frontline workers feeding data upwards without clarity on its practical relevance.

The 4As Framework: Making Data Actionable

• To reimagine monitoring, a 4As framework is proposed:

• Ascertain - Identify the few critical outcomes that matter most.
• Assess - Embed regular, low-burden assessments to track progress.
• Assist - Support field workers through mentoring, training, and feedback.
• Adapt - Modify strategies based on real-time feedback and citizen needs.

• This shift reorients monitoring from quantity to quality, creating feedback loops that not only track progress but also drive it.

Learning from State-Level Innovations

• States like Uttar Pradesh, Andhra Pradesh, Telangana, and Odisha are already experimenting with outcome-oriented data systems.

• Uttar Pradesh launched the NIPUN Bharat Mission, starting with the fundamental question, “What should a child learn by the end of each grade?”
• Weekly learning goals, termed Lakshyas, were integrated into teacher training and review meetings. No new structures were created, existing ones were streamlined to work in coherence.
• Andhra Pradesh, under a pilot programme, integrated real-time dashboards with mentoring and field visits. This approach led to a 20% improvement in foundational learning in just one year.
• Telangana uses its Human Development and Livelihood Survey (HDLS) to track annual citizen outcomes. This has enabled dynamic resource allocation and rapid course correction.
• Similarly, self-reporting, managerial oversight, and citizen feedback in the rural development department have built a culture of accountability without blame.
• Odisha’s schools now conduct quarterly block-level teacher meetings, not just for data reporting but for collaborative problem-solving based on that data.

Embedding Analytics for Institutional Capacity

• To move from episodic to systemic improvements, the authors propose setting up Data Analytics Units (DAUs) within planning departments.
• These units can synthesise data from multiple sources, routine programme records, citizen feedback, and real-time surveys, to offer integrated insights that inform policy.
• This shift enables departments to not only measure impact but also evolve based on what the data reveals. Rather than being passive collectors, these DAUs can become active agents in improving governance outcomes.

Why in the News?

The Union Cabinet has approved an Employment-Linked Incentive (ELI) scheme with an allocation of Rs. 99,446 crore to support employment generation.

What’s in Today’s Article?

• ELI Scheme (Objectives, Scope, Components, Implementation, Mechanism, etc.)

India Launches ELI Scheme to Boost Job Creation and Formal Workforce

• The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the landmark Employment Linked Incentive (ELI) Scheme with a financial outlay of Rs. 99,446 crore.
• The scheme is part of the government’s larger vision to generate over 3.5 crore jobs over two years, with special emphasis on integrating first-time employees and promoting employment in the manufacturing sector.
• This ambitious scheme was announced in the Union Budget 2024-25 as part of a Rs 2 lakh crore employment and skilling package aimed at supporting 4.1 crore youth through a combination of direct incentives, skilling initiatives, and social security expansion.

Objectives and Scope of the ELI Scheme

• The Employment Linked Incentive (ELI) Scheme aims to tackle key challenges in India’s labour market, namely low formalisation, slow job growth in manufacturing, and limited incentives for youth entering the workforce.
• The dual focus of the scheme, supporting first-time employees and incentivising employers, is structured to make hiring both appealing and sustainable.
• The scheme is applicable to jobs created between August 1, 2025, and July 31, 2027. It has two core components:
• Part A: Incentives for First-Time Employees
  • Part A of the scheme is designed for first-time employees registering with the Employees’ Provident Fund Organisation (EPFO).
  • Under this component:
    • Employees with monthly salaries up to Rs 1 lakh will be eligible.
    • Each eligible employee will receive one month’s EPF wage (up to Rs. 15,000) in two instalments:
      • The first instalment will be disbursed after six months of continuous service.
      • The second instalment will be released after 12 months and the completion of a mandatory financial literacy programme.
    • A portion of the incentive will be held in a savings instrument or deposit account to encourage long-term financial planning.
  • This part of the scheme is expected to benefit 1.92 crore first-time workers, helping them integrate into the formal economy while providing a safety net through social security.
• Part B: Incentives for Employers to Generate Jobs
  • The second component of the scheme targets employers to boost job creation across sectors, with a significant thrust on manufacturing.
  • Incentives will be disbursed to employers who create additional employment and retain those employees for at least six months.
  • Key highlights include:
    • Employers will receive monthly incentives for every new employee hired:
      • 1,000 for salaries up to Rs. 10,000
      • 2,000 for salaries between Rs. 10,001 and Rs. 20,000
      • 3,000 for salaries above Rs. 20,000 (up to Rs. 1 lakh)
    • To qualify, employers must add:
      • At least 2 new employees (if total staff <50)
      • At least 5 new employees (if total staff ≥50)
  • Incentives will be provided for 2 years across all sectors, and up to 4 years for the manufacturing sector.
  • This part is projected to support the creation of around 2.60 crore new jobs.

Implementation and Payment Mechanism

• All disbursements under the ELI Scheme will follow a Direct Benefit Transfer (DBT) model for transparency and efficiency:

• Payments to employees (Part A) will be routed through the Aadhaar Bridge Payment System (ABPS).
• Employer incentives (Part B) will be credited directly into PAN-linked accounts.

• The incentive-linked model encourages sustained employment and minimises misuse, as both employer and employee benefits are tied to continuity and compliance.

Broader Implications for Labour and Industry

• The scheme is not just a wage-support mechanism but also a labour formalisation and skill-building initiative.
• By mandating EPFO registration and financial literacy, the ELI scheme aims to bring informal workers into the social security net and empower them for long-term financial inclusion.
• Industry bodies have largely welcomed the initiative. Experts from EY India noted that the ELI scheme represents a “milestone” in fostering an inclusive labour market.
• However, some trade unions like the Centre of Indian Trade Unions (CITU) have criticised the scheme, alleging it diverts public funds to the employer class without sufficient accountability mechanisms.
• Despite divergent opinions, the scheme’s design indicates a move toward a more structured, incentive-driven employment landscape, especially in a post-pandemic economy that demands resilience and adaptability in labour markets.

Why in News?

New data from the Ministry of Statistics and Programme Implementation (MoSPI) reveals shifting food habits and consumption patterns, as farmers adapt by producing more high-value crops.

Over the past decade, the Gross Value of Output (GVO) has seen the highest rise in fruits like strawberries and pomegranates, and vegetables like parwal (pointed gourd) and mushrooms.

Gross Value of Output, or GVO, is a measure of production that refers to the total value of the items produced before subtracting the value of inputs used in production.

What’s in Today’s Article?

• Agriculture Output Report
• Key Highlights of the Agriculture Output Report
• Agriculture Output Report - Analysis

Agriculture Output Report

• The National Statistics Office (NSO), under the Ministry of Statistics and Programme Implementation (MoSPI), has released the annual “Statistical Report on Value of Output from Agriculture and Allied Sectors (2011-12 to 2023-24)”.
• The report provides comprehensive data on the value of output from crops, livestock, forestry & logging, and fishing & aquaculture, at both current and constant (2011–12) prices.

Key Highlights of the Agriculture Output Report

• Reflecting evolving food habits, farmers are increasingly shifting from traditional staples to high-value crops.
• New data highlights a significant transformation in agricultural output trends over the past decade.
• Robust Growth in Agriculture GVA at Current Prices
  • The Gross Value Added (GVA) of agriculture and allied sectors at current prices grew by ~225%, rising from ₹1,502 thousand crore in 2011–12 to ₹4,878 thousand crore in 2023–24.
• Steady Rise in GVO at Constant Prices
  • The GVO at constant (2011–12) prices increased by about 54.6%, from ₹1,908 thousand crore in 2011–12 to ₹2,949 thousand crore in 2023–24, indicating consistent real growth in the sector.
• Sharp Rise in High-Value Fruits and Vegetables
  • Between 2011–12 and 2023–24, the Gross Value of Output (GVO) of certain fruits and vegetables surged dramatically:
    • Strawberries: GVO rose over 40 times to ₹55.4 crore (constant prices), and nearly 80 times to ₹103.27 crore (current prices).
    • Parmal (Parwal): Increased 17-fold to ₹789 crore.
    • Pumpkin: Rose nearly 10 times to ₹2,449 crore.
    • Pomegranate: Grew over 4 times to ₹9,231 crore.
    • Mushrooms: Jumped 3.5 times to ₹1,704 crore.
• Meat Gains, Cereals Lose Share in Agri Output
• Meat: Its share in the GVO of agriculture and allied sectors rose from 5% in 2011–12 to 7.5% in 2023–24.
• Cereals: Declined from 17.6% to 14.5% over the same period, indicating a diversification away from staple grains.
• Spices Also on the Rise
  • Improved processing and growing demand boosted the GVO of spices, especially dry ginger, which surged by 285% to ₹11,004 crore.
• Rising Incomes Drive Shift Toward Animal and Fruit-Based Diets
  • As incomes increased, the share of meat in agriculture GVO rose from 5% to 7.5% between 2011–12 and 2023–24.
  • However, the 131% growth in meat GVO was still lower than that of strawberries and other high-value crops.
• Modest Rise in Fruit Consumption Despite Output Growth
  • Despite production growth, fruit consumption as a share of Monthly Per Capita Consumption Expenditure (MPCE) remained low:
    • Rural MPCE: Rose from 2.25% to 2.66%
    • Urban MPCE: Slight dip from 2.64% to 2.61%
  • Yet, more rural households are now consuming fruits: From 63.8% in 2011–12 to 90.3% in 2022–23, especially among the bottom 20% income group.
• Cereals See Decline in Consumption and Output Share
  • Reflecting changing dietary patterns:
    • Urban MPCE on cereals fell from 6.61% to 3.74%
    • Rural MPCE on cereals fell from 10.69% to 4.97%
    • GVO share of cereals dropped from 17.6% to 14.5%

Agriculture Output Report - Analysis

• Structural Shift in Agriculture
  • MoSPI data indicates a shift from cereals to fruits, vegetables, spices, and meat, driven by:
    • Technological advancements
    • Changing consumer preferences
    • Policy focus on nutrition and exports
    • Expanding market opportunities
• Engel’s Law in Action
  • Engel's Law states that as a household's income increases, the proportion of income spent on food decreases, while the proportion spent on other goods and services, like luxury items, increases. 
  • Consistent with Engel’s Law, food’s share in MPCE declined as incomes rose:
    • Rural areas: From 52.90% (2011–12) to 47.04% (2023–24)
    • Urban areas: From 42.62% to 39.68%

Why in News?

The southwest monsoon covered the entire country by June 29, nine days earlier than its usual date of July 8. This is only the tenth time since 1960 that the monsoon achieved nationwide coverage in June.

What’s in Today’s Article?

• Early Onset in Kerala Set the Pace
• Key Drivers of the Monsoon’s Rapid Advance
• Conclusion

Early Onset in Kerala Set the Pace

• The monsoon arrived in Kerala on May 24, eight days earlier than usual, driven by an active Madden-Julian Oscillation (MJO) phase in mid-May.
• This early onset laid the foundation for the monsoon’s rapid progress.
• Monsoon Progress: Mostly Ahead of Schedule
  • South, East, and Northeast India saw early arrival.
  • Northwest India was near normal.
  • Central India witnessed slight delays.

Key Drivers of the Monsoon’s Rapid Advance

• The southwest monsoon covered the entire country by June 29, nine days ahead of its normal schedule of July 8.
• This marks only the tenth instance since 1960 that nationwide monsoon coverage occurred in June.
• Low Pressure Systems
  • India experienced five low-pressure systems in June.
  • These act as moisture magnets, drawing in rain-bearing winds and accelerating monsoon movement inland.
• Active Madden-Julian Oscillation (MJO)
  • MJO is a moving system of clouds, rainfall, winds, and pressure near the equator that travels eastward.
  • When active near India, it enhances monsoon by increasing cloud cover and moisture, leading to stronger rainfall.
  • An active MJO phase significantly boosts monsoon onset and progression.
  • June continued to see an active MJO, enhancing cloud formation and pushing rainfall northwards, aiding monsoon spread.
• Favourable Monsoon Trough Position
  • The monsoon trough is an elongated low-pressure area extending from northwest India to the Bay of Bengal.
  • It plays a key role in determining rainfall distribution during the monsoon.
  • A favourable monsoon trough position, especially when it shifts south of its normal, helps draw in moisture-laden winds from the oceans, intensifying rainfall over central and northern India.
  • Its position influences the strength, spread, and duration of monsoon rains.
  • The monsoon trough remained south of its normal position, facilitating increased moisture inflow and early rainfall across regions.
• Neutral ENSO (El Niño-Southern Oscillation) Condition
  • ENSO is a climate pattern involving temperature fluctuations in the central and eastern tropical Pacific Ocean, with three phases: El Niño, La Niña, and Neutral.
  • A neutral ENSO phase means sea surface temperatures are close to average.
  • This phase neither suppresses nor excessively enhances rainfall, allowing the Indian monsoon to progress normally, supporting stable and widespread rainfall patterns.
  • ENSO was in a neutral phase, supporting normal monsoon rainfall.
• Neutral IOD (Indian Ocean Dipole) Conditions
  • An is a climate phenomenon marked by differences in sea surface temperatures between the western and eastern Indian Ocean.
  • It has positive, negative, and neutral phases.
  • A neutral IOD phase means there is little to no temperature difference between the two regions, resulting in minimal influence on the Indian monsoon.
  • This allows monsoon rainfall to be primarily driven by other favorable factors like MJO and ENSO.
  • This year, IOD also remained neutral, having minimal impact—neither enhancing nor suppressing rains.

Conclusion

This year’s monsoon has been marked by early onset, rapid progression, sudden pauses, and localised weather disasters. With much of the season still ahead, it remains uncertain whether the pattern will stabilise or intensify further.

Context

• India’s constitutional commitment to social justice is more than a moral or ideological framework, it is a legal and ethical obligation aimed at correcting deep-rooted historical injustices.
• With quotas of 15%, 7.5%, 27%, and 10% respectively, these policies are particularly critical in higher education, where representation shapes not just access, but also the production and dissemination of knowledge.
• However, a persistent and troubling trend has emerged: premier institutions consistently fail to fill reserved faculty positions.
• This shortfall raises urgent questions about the systemic barriers thwarting India’s social justice agenda.

A Persistent Gap in Representation

• Despite the clear constitutional mandate, the data reveals an alarming shortfall.
• According to figures presented by Union Education Minister in April 2021, out of 45 central universities, there were 2,389 vacant SC faculty positions, 1,199 for STs, and 4,251 for OBCs.
• While targeted recruitment drives at institutions like Jawaharlal Nehru University (JNU) and the University of Delhi have made marginal progress, the broader picture remains bleak.
• The 2023 University Grants Commission (UGC) report confirmed that nearly 30% of reserved teaching posts remain unfilled, particularly at senior levels such as associate professor and professor.
• This deficit contrasts sharply with other public sectors, such as railways and banking, where reserved posts in lower-level jobs (Groups C and D) are routinely filled.

Systemic Barriers to Inclusion

• Institutional Autonomy and Accountability Gaps
  • Central universities and institutes of national importance operate with significant autonomy.
  • While the UGC mandates reservation compliance, enforcement is weak and inconsistent.
  • Selection committees and Vice-Chancellors, often composed of members from dominant social groups, exhibit insufficient urgency in advancing social justice goals.
  • The lack of oversight mechanisms allows these institutions to circumvent constitutional obligations with impunity.
• The 13-Point Roster System
  • The 2018 introduction of the 13-point roster system marked a significant regression.
  • Unlike the previous 200-point system that calculated reservations across the entire institution, the new system considers departments as individual units.
  • This change disproportionately affects smaller departments, which often do not reach the critical threshold for mandatory reserved posts, especially for STs and SCs.
  • Legal challenges and nationwide protests reflect the backlash this system has generated for undermining representation.
• Discretionary Rejection and Institutional Bias
  • A less visible but equally damaging barrier is the prevalence of discretionary rejections.
  • Candidates from SC, ST, and OBC backgrounds, even when qualified, are often denied positions on ambiguous grounds such as not found suitable.
  • According to a 2022 study by the Ambedkar University Faculty Association, over 60% of vacancies in reserved categories were attributed to such arbitrary assessments.
  • These practices develop a culture of exclusion and disillusionment, discouraging potential candidates from pursuing academic careers.

Recommendation of Policy and Practice Toward a More Inclusive Academia

• Strengthen Enforcement Mechanisms
  • UGC guidelines on reservation must be stringently enforced through regular audits and publicly accessible compliance reports.
  • Institutions should be held accountable for lapses in fulfilling reservation quotas, with penalties for non-compliance.
• Reform the Roster System
  • The 13-point roster must be revisited and restructured to align with the spirit of constitutional equality.
  • The Supreme Court’s ongoing hearings may offer legal clarity, but proactive legislative or regulatory amendments can pre-empt further delays and disruptions.
• Institutionalise Fair and Transparent Recruitment
  • Diversity in selection committees and clearly defined evaluation criteria can reduce subjective biases.
  • Moreover, training programmes for academic administrators on social justice principles can shift institutional culture toward greater inclusivity.
• Political Will and Ethical Commitment
  • Ultimately, bridging this gap requires genuine political commitment.
  • Social justice must move beyond rhetoric and be embedded as a core value in policy implementation.
  • The ruling establishment that often frames itself as a proponent of inclusive nationalism, must demonstrate through action its commitment to pluralism and equity in higher education.

Conclusion

• The chronic underrepresentation of marginalised communities in university faculties is not just a policy failure, it is a moral and democratic crisis.
• Universities are not mere centres of professional training but are spaces of social transformation.
• They must reflect the diversity of the society they serve, and their governance must be informed by the principles of justice, equity, and inclusion.
• Only through decisive reform, greater institutional accountability, and visionary leadership can India hope to realise its foundational promise of social justice and build a truly inclusive knowledge society.

Context

• In the intricate matrix of South Asian geopolitics, the triangular relationship between the United States, India, and Pakistan presents a complex narrative, one shaped by strategic necessity, ideological contests, national interests, and deep-rooted historical legacies.
• Recent developments, particularly during Donald Trump’s return to power, have cast new light on longstanding alliances, emerging fractures, and evolving national doctrines.
• Against this volatile backdrop, each actor navigates the treacherous waters of diplomacy, security, and influence, recalibrating old partnerships while striving to redefine their place in a rapidly changing world order.

The Triangular Dynamic in South Asian Geopolitics

• The U.S. Pivot
  • The Trump administration’s foreign policy approach represents a stark departure from traditional diplomacy.
  • Eschewing long-term doctrines in favour of short-term strategic gains, Trump's transactional style has developed a renewed engagement with Pakistan.
  • His overtures, notably a symbolic lunch with Pakistan’s Army Chief Field Marshal Asim Munir and his repeated claims of brokering peace between India and Pakistan, have evoked memories of Cold War-era realpolitik.
  • These gestures underscore an American willingness to employ shortcut diplomacy, even at the cost of previous strategic alignments.
• Revival of US Pakistan Relations
  • The revival of U.S.-Pakistan ties under Trump’s second term, particularly the authorisation of $397 million to sustain Islamabad’s F-16 fleet and public commendation of Pakistan as a phenomenal partner, signals a notable recalibration.
  • Pakistan’s military, portrayed as a knowledgeable interlocutor on Iran, is being positioned as a potential regional asset, especially amid tensions involving Iran and Israel.
  • This strategic shift threatens to erode decades of U.S.-India cooperation built on shared counterterrorism interests and converging concerns about China's regional ambitions.
• India’s Disillusionment and Doctrinal Shift
  • India’s initial synergy with Trump, rooted in a shared condemnation of Pakistan's double-dealing on terrorism, has begun to fray in light of Washington’s overtures toward Islamabad.
  • India’s security doctrine has evolved in response. The devastating terror attack in Pahalgam catalysed Operation Sindoor, an assertive military response that marked a clear break from India’s traditional policy of strategic restraint.
  • India’s declaration of a new normal exemplifies a doctrinal shift: one that combines hard military retaliation with global diplomatic campaigns aimed at isolating Pakistan.
  • This assertiveness coincides with growing fears of a two-front conflict, given Pakistan’s deepening ties with Beijing, whose adversarial posture towards New Delhi adds a dangerous layer of complexity to the region’s security calculus.

Pakistan’s Strategic Recalibration and Diplomatic Offensives

• Amidst internal political turmoil and external pressures, Pakistan is pursuing a multi-pronged strategy that blends military strength with diplomatic manoeuvring.
• The promotion of Asim Munir to field marshal signifies the formal consolidation of military dominance in Pakistan’s national security framework.
• This entrenchment of a hard state approach, resistant to civilian oversight, reflects Rawalpindi’s determination to assert control at home and abroad.
• Simultaneously, Pakistan is leveraging its geographical centrality, straddling South Asia, West Asia, and Central Asia, to position itself as indispensable to U.S. strategic interests.
• Economic negotiations, rare earth mineral deals, and personal diplomacy have become tools in a charm offensive designed to restore Pakistan’s relevance and gain economic lifelines.
• While Pakistan lacks the economic and demographic heft of India, it compensates through its geographic utility and agility in diplomatic corridors. 

America’s Balancing Act and Pakistan’s Enduring Relevance

• America’s Balancing Act and Strategic Ambivalence
  • The United States now finds itself in a position of strategic ambivalence. On one hand, India’s role in the Indo-Pacific and its participation in frameworks like the Quad should anchor it firmly within American strategic priorities.
  • Yet, Trump’s America appears increasingly preoccupied with trade deals and personal diplomacy, often at the expense of broader ideological or institutional commitments.
  • Any American move to equate the two rivals, the so-called hyphenation, undermines India’s global aspirations and risks alienating one of its most natural democratic partners in the region.
• Pakistan’s Enduring Relevance
  • Pakistan’s continued relevance in American foreign policy rests not only on its location but also on the military’s sophisticated use of personal diplomacy.
  • Proximity to flashpoints like Iran, Afghanistan, and China makes Pakistan a geographically strategic player.
  • This, combined with its intelligence and logistical capabilities, ensures that some factions in Washington view Pakistan as a vital cog in their regional machinery.
  • This perception fuels Pakistan’s confidence in counterbalancing India, even as the latter boasts superior economic and demographic indicators.

Conclusion

• The triangular dynamic among the United States, India, and Pakistan is marked by shifting allegiances, strategic opportunism, and competing visions for regional order.
• For the U.S., the challenge lies in balancing short-term strategic imperatives with long-term values and partnerships.
• For India, it means navigating a recalibrated regional order without compromising its sovereign stance or strategic autonomy.

Why in the News?

The Union government has ordered the fast-tracking of the launch of 52 dedicated surveillance satellites, enhancing round-the-clock monitoring of the coastline and land borders.

What’s in Today’s Article?

• New Military Satellites (Introduction, Need, About the Programme, Key Features, Strategic Significance, etc.)

India Accelerates Defence Surveillance with 52 New Military Satellites

• India is taking a significant leap in its space-based military capabilities with the fast-tracking of 52 surveillance satellites.
• Following the learnings from Operation Sindoor, which showcased the strategic value of satellite-based intelligence, the government has moved swiftly to enhance round-the-clock surveillance over its land borders and coastline.
• This decision marks a pivotal shift in India’s national security framework by integrating space technology more deeply into defence operations.

Operation Sindoor: A Trigger for Strategic Space Expansion

• The impetus for this initiative stems from Operation Sindoor, where satellite imagery played a vital role in enabling swift military responses.
• Satellite data provided Indian defence forces with real-time intelligence on the movement and trajectory of drones and missiles, helping avert substantial damage to military assets.
• It was during this operation that India reportedly faced satellite-assisted activities from adversaries, with claims that China extended space-based support to Pakistan.
• In this context, enhancing indigenous surveillance capacity has become a top priority for national security.

SBS-III Programme: India’s New Space Security Vision

• To execute this strategic expansion, the Cabinet Committee, led by Prime Minister Narendra Modi, approved a $3.2 billion budget in October 2024 for the SBS-III programme.
• This programme is aimed at developing a new generation of military satellites over the next decade.
• Key features of the SBS-III programme include:

• 52 satellites to be launched in total.
• ISRO to design and launch the first 21 satellites.
• Private space sector companies will develop and launch the remaining 31 satellites.
• The Defence Space Agency (DSA) will be responsible for managing the satellite constellation’s operational command.

Enhanced Capabilities with Next-Gen Surveillance Tech

• The new surveillance satellites will feature next-generation radar imaging systems, capable of providing all-weather, day-and-night coverage.
• According to defence officials, these satellites are expected to drastically improve intelligence gathering, especially in remote or high-risk border zones.
• Artificial Intelligence (AI) will play a significant role in the functionality of these satellites. AI integration will:

• Enable automated threat detection.
• Enhance data processing speed and accuracy.
• Provide predictive intelligence through machine learning algorithms.

• These advancements are expected to support India’s ability to monitor adversarial activities with greater precision and real-time responsiveness.

Strategic Coverage Areas: Focus on China, Pakistan, and the Indian Ocean

• The satellite network will prioritise three critical theatres:

• India-China border, particularly in Ladakh and Arunachal Pradesh.
• India-Pakistan border, including monitoring infiltration routes and missile deployments.
• Indian Ocean Region (IOR), to track naval movements and maritime threats.

• The deployment is aimed at reducing India’s dependence on foreign satellite intelligence and enabling self-reliance in space-based defence infrastructure.

ISRO and Private Sector Collaboration

• This initiative highlights India’s evolving approach to defence-sector partnerships, especially the growing role of private players in space technology.
• The government’s call for early deployment has been positively received by private aerospace companies, indicating a new chapter in public-private collaboration.
• By 2026, the first set of satellites is expected to be launched, establishing a secure, scalable surveillance grid capable of serving India's strategic needs for years to come.

Why in the News?

Recently, an Italian luxury brand Prada unveiled footwear inspired by India’s Geographical Indication (GI)-tagged Kolhapuri chappals.

What’s in Today’s Article?

• Geographical Indications (Introduction, Legal Framework, Past Experiences, Safeguards, Conclusion)

India’s Geographical Indications and the Threat of Cultural Appropriation

• In June 2025, Italian fashion house Prada showcased a footwear line inspired by India’s iconic GI-tagged Kolhapuri chappals at its Spring/Summer 2026 menswear show in Milan.
• The move triggered sharp criticism in India, reigniting debates over cultural appropriation and the effectiveness of Geographical Indications (GI) in safeguarding traditional knowledge and craftsmanship.
• The incident is part of a broader pattern where Indian cultural and artisanal products are used, often without acknowledgement or benefit-sharing, by global corporations.
• As the conversation around cultural appropriation intensifies, GI tags emerge as a legal and policy mechanism to both protect and promote India’s cultural heritage.

Understanding Geographical Indications (GI)

• A Geographical Indication is a form of intellectual property right that identifies goods as originating from a particular geographical region, where specific qualities, reputation, or characteristics of the product are essentially attributable to its place of origin.
• India currently has 658 registered GI-tagged products, spanning diverse categories such as textiles (e.g., Kancheepuram silk), agriculture (e.g., Basmati rice), handicrafts (e.g., Madhubani paintings), and food (e.g., Darjeeling tea).
• What sets GIs apart from trademarks is their collective ownership. Unlike a trademark owned by a single entity, a GI belongs to a community of producers, artisans, or cultivators, and it cannot be sold, assigned, or transferred.

Legal Framework in India and Globally

• India, as a signatory to the TRIPS Agreement under the WTO framework, enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999, which came into effect in 2003. This law provides:

• Registration of GI goods
• Legal protection against unauthorised usage
• Penalties for infringement
• Legal standing for authorised users to initiate action against misuse

• Internationally, GI protection stems from agreements like the Paris Convention for the Protection of Industrial Property (1883) and more clearly from the TRIPS Agreement (1995).
• However, GI rights are territorial; there is no globally recognised GI tag. This means that even if Kolhapuri chappals are GI-protected in India, that protection doesn’t extend automatically to countries like Italy or the U.S.

India’s Experience with Cultural and Biological Appropriation

• India’s struggle against cultural misappropriation is not new. Some notable past instances include:

• Basmati Rice Patent (1997): Ricetec Inc., a U.S.-based company, was granted a patent for novel lines and grains of Basmati rice. After legal intervention by Indian authorities, the patent was eventually nullified.
• Turmeric Patent (1995): The University of Mississippi was granted a patent for turmeric’s wound-healing properties, a use deeply embedded in Indian Ayurveda. India successfully challenged and revoked the patent.
• Neem Patent (2000): A neem-based antifungal patent granted to a U.S. agency and a multinational firm was revoked by the European Patent Office after evidence of traditional Indian knowledge was submitted.

• These cases exemplify the vulnerability of traditional Indian knowledge and the need for pre-emptive protection mechanisms.

Towards Stronger Cultural Safeguards

• While GI tags offer domestic legal protection, they fall short when it comes to transnational enforcement. There are some pathways to international GI protection, such as:

• Seeking bilateral or multilateral recognition.
• Registering GIs in foreign jurisdictions.
• Using trade negotiations to include GI protections in Free Trade Agreements.

• Furthermore, experts advocate for the expansion of the Traditional Knowledge Digital Library (TKDL), a government-run initiative that documents traditional medicinal knowledge.
• The proposal is to widen its scope to include cultural artefacts, arts, crafts, and grassroots expressions, and to make it a searchable database. This could aid brands and foreign agencies in conducting due diligence before launching culturally inspired products.

Conclusion

The Prada-Kolhapuri incident highlights the urgency for robust international frameworks and enhanced domestic capabilities to prevent cultural misappropriation. While GI tags serve as effective tools for domestic enforcement, their scope must be broadened through diplomacy, global advocacy, and digital documentation of traditional knowledge.

India must continue to build institutional capacity, strengthen cross-border GI enforcement mechanisms, and raise awareness globally about the significance and sanctity of its cultural and artisanal heritage.

Why in News?

Vice President Jagdeep Dhankhar has criticized the Emergency-era inclusion of the words “socialist” and “secular” in the Constitution’s Preamble, calling it a "sacrilege to the spirit of Sanatan".

These terms were added via the 42nd Constitutional Amendment, which made sweeping changes to the Constitution during the Emergency. Although many of those changes were reversed by the 44th Amendment in 1978, the additions to the Preamble remain intact.

What’s in Today’s Article?

• Preamble: The Vision of the Constitution
• Changes Introduced by the 42nd Amendment (1976)
• Reasons Behind the Changes Introduced by the 42^nd Amendment
• Why “Socialist” Was Added
• Why “Secular” Was Added
• Why “Integrity” Was Included
• Significance of These Changes
• Conclusion

Preamble: The Vision of the Constitution

• Described by the Supreme Court in In Re: The Berubari Union (1961) as “a key to open the mind of the makers”.
• Serves as the vision statement of the Constitution, outlining its core values and purpose.
• Original Preamble (1950)
  • Described India as a “Sovereign Democratic Republic”.
  • Guaranteed Justice, Equality, Liberty, and Fraternity to all citizens.

Changes Introduced by the 42nd Amendment (1976)

• Inserted the words: “Socialist” and “Secular”, making India a “Sovereign Socialist Secular Democratic Republic”.
• Added the word “integrity” to the phrase on fraternity, which now reads: “assuring the dignity of the individual and the unity and integrity of the Nation”
• Other Key Provisions of the 42nd Amendment
  • Introduced a new chapter on Fundamental Duties of citizens.
  • Added several new Directive Principles of State Policy.
  • Diluted judicial review by curbing the powers of the courts.
  • Froze delimitation of constituencies, affecting electoral boundaries.

Reasons Behind the Changes Introduced by the 42^nd Amendment

• Political Context: The Emergency Rule
  • The 42nd Amendment was enacted during the Emergency (1975–77) when Prime Minister Indira Gandhi ruled by decree.
  • Experts feel she wanted to reshape the Constitution to align with her ideological and political agenda.
• Parliament vs Judiciary: The Land Reform Debate
  • Since the 1950s, a conflict between Parliament and the judiciary centered on land reform and the right to property.
  • Courts often upheld fundamental rights over collective socioeconomic goals, which frustrated the political class.

Why “Socialist” Was Added?

• The then PM Indira Gandhi had taken a clear leftward shift with moves like:
  • Bank nationalization (1969)
  • Abolition of privy purses (1971)
  • Campaigning with "Garibi Hatao" (End Poverty)
• Adding “socialist” to the Preamble signaled alignment with her economic vision.
• The Statement of Objects and Reasons for the amendment said this addition was meant to prioritize Directive Principles over Fundamental Rights, which were seen as hindrances to socioeconomic reform.

Why “Secular” Was Added?

• The move wasn’t directly explained, but analysts feel it occurred due to political rise of Bhartiya Jan Sangh.
• Indira Gandhi defended the addition by claiming the founding fathers intended India to be secular and socialist, and the amendment merely made it explicit.

Why “Integrity” Was Included?

• Indira Gandhi’s Emergency-era rhetoric focused on national unity and the threat of divisive forces.
• The word “integrity” was added to reinforce the idea of an indivisible nation.
• Then Law Minister H. R. Gokhale emphasized that integrity meant maintaining the territorial and social indivisibility of the country.

Significance of These Changes

• The addition of "socialist" and "secular" to the Preamble through the 42nd Amendment was largely symbolic.
• As per the Supreme Court’s Berubari Union (1960) ruling, the Preamble is not a source of substantive power and not considered part of the Constitution’s enforceable text.
• Secularism Already Ingrained in the Constitution
  • Secularism is embedded in key constitutional provisions:
    • Article 14 – Right to equality before the law.
    • Article 15 – Prohibition of discrimination based on religion, caste, sex, etc.
    • Article 16 – Equality of opportunity in public employment.
  • These articles reflect the inherent secular nature of the Constitution even before 1976.
• Judicial Endorsement of Secularism
  • In Kesavananda Bharati (1973), a 13-judge bench held that secularism is a basic feature of the Constitution and cannot be removed or diluted.
  • In S.R. Bommai (1994), the Supreme Court reaffirmed secularism as a cornerstone of Centre-State relations and constitutional governance.
• Socialism and Directive Principles
  • In Minerva Mills v Union of India (1980), the SC upheld that socialism is a constitutional ideal, rooted in Part IV: Directive Principles of State Policy.
  • The Court noted that framing a Socialist State aimed to ensure social, economic, and political justice.
• Recent Judicial Endorsement (2024)
  • In November 2024, a two-judge Bench led by then CJI Sanjiv Khanna dismissed petitions challenging the inclusion of “secular” and “socialist” in the Preamble.
  • The Court ruled that:
    • These additions did not restrict legislation or governance.
    • They did not infringe on fundamental rights or alter the basic structure of the Constitution.

Conclusion

While added during the Emergency, the terms “secular” and “socialist” reflect values already embedded in the Constitution. The Supreme Court has consistently upheld these principles as basic features, immune to dilution or removal.

Why in News?

Despite global economic uncertainty, the Indian economy continues to drive global growth, supported by strong fundamentals and prudent policies, according to RBI's latest Financial Stability Report.

What’s in Today’s Article?

• Financial Stability Report (FSR)
• Key Highlights of the June 2025 Financial Stability Report (FSR)

Financial Stability Report (FSR)

• FSR is a biannual publication released by the Reserve Bank of India (RBI).
• It provides a comprehensive assessment of the health, resilience, and risks facing the Indian financial system.
• Purpose
  • To ensure transparency, promote public confidence, and guide policy actions aimed at preserving financial stability in India.
• Key Features
  • Published Twice a Year
    • Released in June and December to give regular updates.
  • Covers Entire Financial System
    • Includes banks, non-banking financial companies (NBFCs), cooperative banks, and other financial intermediaries.
  • Assesses Systemic Risks
    • Evaluates both domestic and global risks that may affect India’s financial stability.
  • Stress Tests
    • Conducts stress testing on banks to gauge their ability to withstand adverse economic conditions (like high NPAs, credit shocks, etc.).
  • Policy Guidance
    • Offers insights for regulators and policymakers on maintaining stability and resilience.

Key Highlights of the June 2025 Financial Stability Report (FSR)

• India Remains a Key Global Growth Driver
  • Despite a challenging global environment, India continues to contribute significantly to global growth.
  • Growth is supported by strong domestic demand, sound macroeconomic fundamentals, and prudent policymaking.
• GDP Growth Outlook for FY26
  • Real GDP growth projected at 6.5% for FY2026.
  • Growth remains below RBI's aspirations, constrained by global uncertainty, trade disruptions, and elevated geopolitical tensions.
• Risks to Growth: External and Climate-Linked
  • External spillovers (e.g., US tariffs, global trade fragmentation) and weather-related events (e.g., climate shocks) may impact India’s growth.
  • Geopolitical risks and policy unpredictability have raised global economic uncertainty.
• Inflation Under Control
  • Inflation outlook is benign, with CPI aligning with RBI’s target of 4% ± 2% band.
  • May 2025 CPI at 2.8%, the lowest since February 2019.
  • RBI expresses greater confidence in durable price stability under the Flexible Inflation Targeting (FIT) framework.
• Financial Stability and Sectoral Resilience
  • Indian financial system shows improving resilience, with:
    • Strong capital buffers
    • Low non-performing assets (NPAs)
    • Healthy profitability
• Stress Tests Confirm Systemic Strength
  • Stress tests show that:
    • Banks and NBFCs maintain adequate capital even under adverse scenarios.
    • Mutual funds and clearing corporations show strong resilience.
    • Insurance sector maintains a solvency ratio well above minimum thresholds.
• Scheduled Commercial Banks (SCBs) in Strong Health
• SCBs benefit from:
  • Multi-decadal low NPAs
  • Robust capital and earnings
• Macro stress tests validate that most SCBs are adequately capitalized.
• NBFCs and Corporate Sector Remain Robust
  • NBFCs exhibit:
    • Sizable capital buffers
    • Improving asset quality
    • Strong profitability
  • Corporate balance sheets continue to support macroeconomic stability.
• Financial Conditions Remain Supportive
  • Financial conditions have eased due to:
    • Accommodative monetary policy
    • Low market volatility
• Global Financial System: Elevated Risks
• Near-term global financial stability risks have increased.
• April 2025’s market turbulence exposed vulnerabilities and high asset price sensitivity.
• Risks from high public debt, tech disruptions, climate change, and prolonged conflicts remain significant.
• Systemic Risk Perception: Medium but Stable
  • Systemic Risk Survey (SRS) in May 2025:
    • All major risk categories rated as ‘medium risk’
    • 92% respondents are confident in the soundness of the Indian financial system.
• Need for Policy Vigilance
  • The report emphasizes the need for vigilance, agility, and prudence among central banks and regulators.
  • The global economic landscape is becoming harder to forecast due to structural shifts and shocks.

Context

• As India commemorates the eighth anniversary of the Goods and Services Tax (GST) on July 1, 2025, it is timely to evaluate this transformative tax reform.
• Launched in 2017 under the banner of ‘One Nation, One Tax,’ the GST replaced a complex web of indirect taxes, establishing a unified national market and harmonising tax structures across states.
• While its economic and administrative efficiencies are undeniable, its shortcomings, especially in tobacco taxation, reveal a critical blind spot that calls for urgent corrective measures.

Goods and Services Tax (GST): A Landmark in Tax Reform

• By replacing multiple indirect taxes such as VAT, service tax, and excise duties, GST streamlined tax collection and reduced the compliance burden for businesses.
• The creation of a common national market significantly improved the ease of doing business and enabled more seamless inter-state trade.
• Notably, the digitisation of processes, through instruments like the e-way bill, enhanced transparency and curtailed tax evasion.
• These measures collectively contributed to improved logistics efficiency, cutting transportation time by up to 20% and lowering associated costs.
• The gross GST collections for 2024–25 soared to an unprecedented ₹22.08 lakh crore, registering a year-on-year growth of 9.4%. This consistent revenue generation underscores GST’s role as a cornerstone of India’s fiscal architecture.

The Fault Lines in GST’s Structure

• Tobacco Taxation and Public Health
  • Tobacco usage in India remains a catastrophic public health concern, accounting for over 3,500 deaths daily and imposing an annual economic burden of ₹2,340 billion, equivalent to 1.4% of GDP in 2017.
  • However, the GST regime has failed to meaningfully escalate taxation on tobacco products, a proven strategy for reducing consumption.
  • Pre-GST (2009–2017), regular hikes in excise duties and VAT contributed to a 17% decline in tobacco use.
  • In contrast, post-GST stagnation in tax hikes has made tobacco increasingly affordable.
  • Average GST revenues from tobacco over the last five years stood at ₹551 billion, substantially lower than the associated health and economic costs.
  • The overall tax burden on tobacco products remains below the World Health Organisation (WHO) recommended threshold of 75% of retail prices: just 22% for bidis, 54% for cigarettes, and 65% for smokeless tobacco.
• Structural Flaws: The Ad Valorem Trap
  • The structural design of GST heavily relies on ad valorem taxation, levies based on product value, which, while integral to GST, is poorly suited for curbing harmful product consumption.
  • Fixed specific excise taxes, levied per unit of product, are internationally acknowledged as more effective in reducing tobacco use because they resist industry manipulation of retail prices.
  • Since GST's inception, the share of specific central excise duties in tobacco taxation has plummeted: from 54% to 8% for cigarettes, 17% to 1% for bidis, and 59% to 11% for smokeless tobacco.
  • This decline is compounded by glaring inconsistencies.
  • Although bidis are the most widely consumed smoked tobacco product in India and equally harmful as cigarettes, they are under-taxed and exempt from the GST compensation cess.
  • This omission disproportionately benefits low-cost tobacco products consumed by the economically disadvantaged, amplifying both health inequity and fiscal inefficiency.

The Way Forward

• Dual Strategy for Reform
  • Addressing the deficiencies in tobacco taxation requires a recalibrated strategy that integrates public health priorities with fiscal policy.
  • Raising GST rates on tobacco to the statutory maximum of 40%, as permitted under current law, coupled with a substantial increase in specific excise duties, represents a powerful dual-pronged approach.
  • Such a mixed tax structure, combining ad valorem and specific components, has demonstrated greater effectiveness globally, both in reducing consumption and bolstering revenues.
• Debunking the Illicit Trade Argument
  • A recurring counterargument by the tobacco industry is that higher taxes fuel illicit trade.
  • However, empirical studies refute these claims. Independent estimates suggest that illicit cigarettes account for merely 2.7% to 6.6% of India’s market, far below the industry’s inflated claim of 25%.
  • Factors like regulatory enforcement and border control play a far greater role in curbing illicit trade than pricing alone.
  • India, having ratified the WHO Protocol to Eliminate Illicit Trade in Tobacco Products, must now focus on its rigorous implementation.

Conclusion

• As the GST Council considers rationalisation and structural reform, public health must be brought to the forefront.
• The 139th Parliamentary Standing Committee Report (September 2022) emphasised that India’s tobacco products remain among the most affordable globally and urged higher taxation as a corrective measure.
• The eighth anniversary of GST offers more than a moment of celebration, it provides a critical opportunity to reinforce the GST regime as a dynamic instrument not just of economic efficiency, but also of social responsibility.

Context

• India’s foreign policy, once celebrated for its strategic balance and nuanced diplomacy, is now confronting a profound existential crisis.
• From the intensifying China-Pakistan nexus to the escalating Israel-Iran conflict, the assumptions that underpinned India’s foreign policy for decades are now being severely tested.
• Therefore, it is important to examine the multiple dimensions of the current crisis, critique India's recent foreign policy choices, and propose key recalibrations to secure its strategic future.

Multiple Dimensions of the Current Crisis in India’s Foreign Policy

• The Breakdown of Strategic Equilibrium
  • India's foreign policy was traditionally designed to balance relationships across ideological and strategic divides.
  • However, recent events have disrupted this delicate equilibrium. The re-election of Donald Trump and his Make America Great Again doctrine, previously perceived as a boon for Indo-U.S. relations, has taken an unpredictable turn.
  • Trump’s claim to have mediated a ceasefire between India and Pakistan, endorsed publicly by Pakistan’s military leadership but denied by India, has placed New Delhi on a potential collision course with Washington.
• Strategic Ambiguity in West Asia: A Failing Doctrine
  • India's policy of equidistance between Israel and Iran is another pillar now crumbling under the weight of international realignments.
  • The recent Israel-Iran conflict, which escalated dramatically following Israel’s targeted attacks on Iranian nuclear sites with American support, represents a significant shift in the global security landscape.
  • The use of the GBU-57 bunker-buster bombs by the U.S. marks a dangerous normalisation of the nuclear discourse in international politics.
  • India’s non-committal stance, issuing vague calls for restraint, has rendered it largely irrelevant in the debate.
  • Worse, it risks alienating both Israel and Iran, undermining years of diplomatic effort aimed at preserving strategic autonomy in West Asia.
• Neutrality: A Strategic Liability
  • In the present geopolitical climate, India’s long-standing posture of neutrality is increasingly being viewed as indecision or even weakness.
  • With mounting threats on its borders and little global support during the India, Pakistan conflict, New Delhi is discovering the limitations of non-alignment in a world leaning heavily toward hard power.
  • Despite its aspirations to lead the Global South, India has found few allies when needed most.

The China Factor

• China-Pakistan Nexus: A Growing Threat
  • Perhaps the most pressing threat to India's national security comes from the deepening military and strategic ties between China and Pakistan.
  • The India-Pakistan conflict in May should not be viewed as an isolated incident but as a harbinger of deeper, more sustained pressure.
  • China's infusion of advanced military technologies, such as the J-10C and JF-17 fighters into Pakistan’s arsenal, and its integration into Pakistan’s defence planning systems, presents a complex and evolving challenge.
  • This partnership is not merely transactional but strategically symbiotic, aiming to encircle and constrain India’s regional influence.
• China's Strategic Vision: Reading Between the Lines
  • China recently released white paper on National Security in the New Era which offers revealing insights into its strategic worldview.
  • By framing development and security as two wings of a single bird, China articulates a doctrine that places technological and supply chain security at the heart of its national strategy.
  • India would do well to study these documents with the same seriousness it reserves for overt military threats.

The Way Forward

• Lessons from Global Military Strategy
  • India must urgently assess its own preparedness for protracted and technologically complex conflicts.
  • Drawing lessons from the Russia-Ukraine war and the UK’s defence capability audit, India needs a comprehensive reassessment of its defence posture.
  • This includes evaluating its ammunition reserves, modernising its cyber and electromagnetic warfare infrastructure, and prioritizing artificial intelligence, drone countermeasures, and loitering munitions.
  • A piecemeal or reactive approach will no longer suffice in an era of hybrid warfare and high-speed escalations.
• Recalibrating India’s Foreign Policy: A Strategic Imperative
  • To navigate this uncertain terrain, India must abandon outdated doctrines and adopt a more pragmatic, assertive, and strategically consistent foreign policy.
  • First, it needs to move beyond moralistic calls for restraint and actively engage in shaping regional security narratives.
  • Second, New Delhi must forge deeper security partnerships, not only with Western powers but also with key Asian and African states, based on mutual defence, intelligence sharing, and technological cooperation.
  • Third, India must invest in credible hard power capabilities while enhancing its diplomatic visibility in crisis zones like West Asia and the Indo-Pacific.

Conclusion

• The continued reliance on non-alignment and neutrality has rendered India vulnerable and strategically sidelined.
• In the face of an aggressive China-Pakistan alliance, a transactional and unpredictable United States, and rapidly shifting regional fault lines, India must evolve its foreign policy from one rooted in moral posturing to one grounded in strategic realism.
• A clear-eyed recognition of global power dynamics and a recalibration of its defence and diplomatic strategies are not just advisable, they are essential for safeguarding India’s sovereignty and global standing in the years to come.