Why in news?

India has a long-standing problem with its current account deficit (CAD) — the part of the balance of payments that tracks what the country earns from the world versus what it pays out.

In the last 25+ years, India has recorded a current account surplus only four times: 2001–02; 2002–03; 2003–04; 2020–21. Every other year, India imported more goods and services than it exported, leading to a deficit.

The CAD hit record highs of $78.2 billion in 2011–12 and $88.2 billion in 2012–13. In most years since then, it stayed below $50 billion, except in 2018–19 ($57.3 billion) and 2022–23 ($67.1 billion), when it rose again.

What’s in Today’s Article?

• India’s Current Account: The Role of the Invisible Hand
• CAD Is Not the Problem — Capital Flows Are

India’s Current Account: The Role of the Invisible Hand

• The current account in the BOP has two subcomponents. The first is merchandise trade — exports and imports of physical goods.
• The second one is called invisibles subcomponent. The “invisibles” trade has to do with the global flows of services, people, data and ideas, as opposed to the movement of tangible stuff (“visible”) across national borders through sea and by air.
• Merchandise Trade Deficit Keeps Widening
  • India has always imported more physical goods than it exports, leading to a persistent merchandise trade deficit.
  • Key trends:
    • $91.5 billion deficit in 2007–08
    • Peaked at $195.7 billion in 2012–13
    • Narrowed to $102.2 billion in 2020–21
    • Jumped to $286.9 billion in 2024–25
  • At the current pace, the 2025–26 deficit may cross $300 billion.
• Invisibles: The Surplus That Saves India’s Current Account
  • India consistently earns large surpluses here due to:
    • High private remittances
    • Strong IT and business service exports
    • Skilled professional services (finance, design, consulting, medicine, etc.)
  • These surpluses offset India’s payments for:
    • Interest and dividends to foreign investors
    • Royalty payments
    • Education of Indians abroad
• Invisibles Surplus Has Grown Dramatically
• India’s invisibles surplus has risen strongly:
  • $75.7 billion in 2007–08
  • $150.7 billion in 2021–22
  • $263.9 billion in 2024–25
• This year, it is likely to exceed $280 billion — a new record.
• Why India’s CAD Doesn’t Blow Up?
  • Even though India’s merchandise trade deficit is massive, the invisibles surplus almost balances it out, preventing the current account deficit (CAD) from becoming unsustainable.
  • This explains why India’s CAD has often remained manageable despite weak goods exports.
• India as the “Office of the World”
  • India’s rising invisibles surplus reflects its global economic role:
    • Just as China is the “factory of the world”,
    • India has become the “office of the world”, exporting white-collar skills — software engineers, accountants, doctors, designers, auditors, and other professionals.
  • These service exports act as an economic stabiliser, cushioning the impact of India’s large goods imports.

CAD Is Not the Problem — Capital Flows Are

• India’s current account deficit (CAD) has actually declined, falling from $25.3 billion (Apr–Sep 2024) to $15.1 billion (Apr–Sep 2025).
• Despite this improvement, the rupee has weakened sharply against major currencies.
• The real culprit is not the CAD but the capital account, where inflows have dried up.
• Rupee’s Slide Driven by Weak Capital Inflows
  • Over the past year, the rupee has depreciated significantly against the:
    • US dollar (84.73 → 89.92)
    • Euro (89.20 → 104.82)
    • British pound (107.76 → 120)
    • Yen (0.5658 → 0.5815)
    • Chinese yuan (11.66 → 12.72)
  • This fall is linked to shrinking foreign investments, not excessive import bills.
  • Foreign capital inflows hit a record $107.9 billion in 2007–08, consistently exceeding the CAD and boosting forex reserves for many years.
  • But now:
    • 2024–25: Net capital inflows crashed to $18 billion, lower than the CAD
    • 2025–26 (Apr–Sep): Only $8.6 billion of inflows, again below the CAD
  • This mismatch is directly pressuring the rupee.
• Sharp Decline in Foreign Investment
  • Direct and Portfolio Investment Have Both Weakened.
    • Foreign investment (overall): $80.1 bn (2020–21); $21.8 bn (2021–22); $22.8 bn (2022–23); $54.2 bn (2023–24); $4.5 bn (2024–25); $3.6 bn (Apr–Sep 2025).
    • Foreign Direct Investment (FDI): $44 bn (2020–21); $38.6 bn (2021–22); $28 bn (2022–23); $10.2 bn (2023–24); Collapsed to $959 million (2024–25); Slight recovery in 2025–26 (Apr–Sep): $7.7 bn.
    • Foreign Portfolio Investment (FPI): From 2021–22 onward, only one year (2023–24) saw net inflows.
    • Most years recorded massive outflows: –$18.5 bn (2021–22); –$5.1 bn (2022–23); –$14.6 bn (2024–25); –$4.3 bn so far in 2025–26.
• Why This Is Surprising Given India’s Growth?
• India’s economy has been growing at 8.2% annually (2021–22 to 2024–25) and 8% in the first half of 2025–26 — a level of growth that should normally attract significant foreign capital.
• Yet, paradoxically, foreign investors have pulled back, leaving India with a capital account deficit.
• Capital Dry-Up Is the Main Driver of Rupee Weakness
  • The rupee’s current slump is not due to rising imports or CAD pressure.
  • Rather, it is caused by the sharp fall in foreign capital inflows, which reduces dollar availability and weakens the currency.
  • The capital account, not the current account, is where India’s external vulnerability now lies.

Why in news?

The Karnataka Hate Speech and Hate Crimes (Prevention) Bill, 2025 proposes 2–10 years’ imprisonment for offenders and introduces collective liability for organisations involved in hate-related offences.

The Karnataka govt argued that the Bill is required because no existing Indian law explicitly defines or addresses hate speech, exposing a long-standing gap in the country’s criminal framework despite frequent public debates on the issue.

What’s in Today’s Article?

• How Hate Speech Is Currently Regulated in India?
• Supreme Court’s Evolving Stance on Hate Speech Enforcement
• Past Efforts to Formally Define Hate Speech in India
• Karnataka’s Proposed Hate Speech Bill

How Hate Speech Is Currently Regulated in India

• India lacks a standalone statute defining or penalising hate speech.
• Instead, police rely on scattered provisions of the Bharatiya Nyaya Sanhita (BNS), which are designed mainly to preserve public order, not address hate speech as a distinct offence.
• Section 196 BNS: The Most Commonly Invoked Provision
  • A successor to IPC Section 153A, Section 196 penalises:
    • Promoting enmity between groups
    • Acts prejudicial to harmony
  • Although arrests under this section are frequent, convictions remain rare — barely 20.2% in 2020, as per NCRB data.
• Section 299 BNS: Protecting Religious Feelings
  • This provision (equivalent to IPC Section 295A) punishes deliberate and malicious acts intended to outrage religious sentiments.
  • It is often invoked in cases involving religious insult or provocation.
• Section 353 BNS: Incitement Creating Public Disorder
  • Section 353 criminalises:
    • Statements or misinformation that incite offences
    • Material disturbing public order or targeting communities
  • All these offences are cognisable, allowing police to arrest without a warrant, and carry penalties of up to three years.
• Online Hate Speech and the Fall of Section 66A IT Act
  • For years, Section 66A of the IT Act was used to prosecute online hate speech.
  • In 2015, the Supreme Court struck it down for being vague and unconstitutional, leaving a gap in digital regulation.

Supreme Court’s Evolving Stance on Hate Speech Enforcement

• The Supreme Court has adopted a proactive yet shifting approach to combating hate speech in recent years.
• In October 2022, the apex court stated that a “climate of hate prevails in the country” and directed police chiefs in Delhi, Uttar Pradesh, and Uttarakhand to take suo motu action against hate speech without waiting for complaints — warning that inaction would amount to contempt.
  • The directive was extended to all states and union territories in April 2023. However, implementation challenges soon became evident.
• In August 2023, SC Judges acknowledged that defining hate speech is inherently complex and that enforcement failures, not legal gaps, were the main obstacle.
• More recently, in November 2025, a SC bench held that the apex Court was “not inclined to monitor every incident of hate speech”, pointing out that police and High Courts are competent to act.
• The bench referred to the 2018 Tehseen Poonawalla judgment, which requires nodal officers to prevent mob violence and lynching, reaffirming that the existing framework must be followed.

Past Efforts to Formally Define Hate Speech in India

• Efforts to create a clear legal definition of hate speech have been ongoing for years.
• In 2017, the Law Commission’s 267th Report recommended adding Sections 153C and 505A to the IPC to criminalise incitement to hatred and provocation of violence, offering a more precise framework than existing public-order provisions.
• In 2022, a Private Member’s Bill titled The Hate Speech and Hate Crimes (Prevention) Bill was introduced in the Rajya Sabha.
• However, the Bill was never passed, and India still lacks a statutory definition of hate speech.

Karnataka’s Proposed Hate Speech Bill

• Karnataka has become the first state in India to introduce legislation specifically targeting hate speech.
• It draws inspiration from the Law Commission’s recommendations and the 2022 Private Member’s Bill.
• Key Features of The Karnataka Hate Speech and Hate Crimes (Prevention) Bill, 2025
  • The Bill defines hate speech as any expression that causes injury or disharmony against individuals or groups based on religion, race, caste, gender, sexual orientation, place of birth, or disability.
  • Notably, it expands protected categories to include gender and sexual orientation, going beyond what the IPC and BNS currently safeguard.
  • A defining element is the introduction of “collective liability” — if hate speech is committed through an organisation, individuals holding positions of responsibility in that organisation may also be held guilty.
  • Additionally, the Bill authorises the state government to block or remove online content deemed hateful, giving it regulatory power over digital speech in a way not explicitly provided under national law.
  • The Bill prescribes strict penalties:
    • 1 to 7 years imprisonment and a ₹50,000 fine for first offences
    • 2 to 10 years imprisonment and a ₹1 lakh fine for repeat offences
  • Offences are cognisable, non-bailable, and triable by a Judicial Magistrate First Class.
  • The Bill mandates adequate compensation for victims. It also exempts material (books, pamphlets, artworks, etc.) proven to be published in the interest of public good.

About Border Roads Organisation (BRO):

• It is a road construction executive force in India that provides support to the Indian Armed Forces.
• BRO was entirely brought under the Ministry of Defence in 2015.
• Establishment: It was formed on 7 May 1960 to secure India’s borders and develop infrastructure in remote areas of the north and northeastern states of the country.
• It develops and maintains road networks in India’s border areas and friendly neighboring countries.
  • This includes infrastructure operations in 19 states and three union territories (including Andaman and Nicobar Islands) and neighboring countries such as Afghanistan, Bhutan, Myanmar, Tajikistan and Sri Lanka.
  • BRO specialises in constructing and maintaining Roads, Bridges, Tunnels, Airfields and Marine Works across some of the world’s most challenging terrains.
• The BRO also has an operational role during national emergencies and the outbreak of hostilities, when it provides direct support to the Army in the maintenance of roads in the forward zones and executes other functions specified by the government.
• It also provides the workforce for the rehabilitation of certain forward airfields of the Indian Air Force during operations.
• BRO is also included in the Order of Battle of the Armed Forces, ensuring their support at any time.
• In order to ensure coordination and expeditious execution of projects, the Government of India set up the Border Roads Development Board (BRDB) with the Prime Minister as Chairman of the Board and the Defence Minister as Deputy Chairman.
• The executive head of the BRO is the Director General of Border Roads (DGBR), who holds the rank of Lieutenant General.
• Officers and personnel from the General Reserve Engineer Force (GREF) form the parent cadre of the BRO.
• It is also staffed by officers and troops drawn from the Indian Army’s Corps of Engineers on extra-regimental employment (on deputation).
• Motto: Shramena Sarvam Sadhyam (everything is achievable through hard work).

About Benin:

• It is a country in West Africa.
• Four countries border Benin:
  • Niger, Nigeria, Togo and Burkina Faso.
  • To the south, Benin has a small stretch of coastline on the Bight of Benin, which is part of the Gulf of Guinea in the Atlantic Ocean.
• Drainage: Apart from the Niger River, which, with its tributaries the Mékrou, Alibori, and Sota, drains the northeastern part of the country, the three principal rivers in Benin are the Mono, the Couffo, and the Ouémé.
• The official capital is Porto-Novo, but Cotonou is Benin’s largest city, its chief port, and its de facto administrative capital.
• Language:
  • The official language of Benin is French.
  • However, indigenous languages such as Fon and Yoruba are commonly spoken.
• Currency: Communaute Financiere Africaine francs (XOF)
• Benin was a French colony from the late 19th century until 1960.
• Type of Government:
  • It is a Presidential Republic.
    It follows a multi-party democratic system.

About Kīlauea Volcano:

• It is one of the world’s most active volcanoes.
• It is a shield-type volcano located in the southeastern part of the island of Hawaii, Hawaii State, United States.
  • Hawaii is the southernmost and largest of the island chain, which owes its existence to the very active Hawaiian hot spot.
• Kilauea’s slopes merge with those of the nearby volcano Mauna Loa on the west and north.
• Kilauea has been erupting on a continuous basis since 1983.
• Kilauea’s frequent eruptions are usually non-explosive.

About Measles

• Measles is a highly contagious, serious airborne disease caused by a virus.
• It is caused by a virus in the paramyxovirus family.
• Transmission:
  • It is one of the world’s most contagious diseases, spread by contact with infected nasal or throat secretions (coughing or sneezing) or breathing the air that was breathed by someone with measles.
  • The virus remains active and contagious in the air or on infected surfaces for up to two hours.
  • For this reason, it is very infectious.
  • The virus infects the respiratory tract, then spreads throughout the body, causing severe disease, complications, and even death.
• Symptoms:
  • The first sign of measles is usually high fever, beginning about 10 to 14 days after exposure to the virus and lasting four to seven days.
  • A runny nose, cough, red and watery eyes, and small white spots inside the cheeks can develop in the initial stage.
  • A rash erupts after several days, usually on the face and upper neck. The rash spreads over about three days, eventually reaching the hands and feet, and lasts five to six days before fading.
• Who is at risk?
  • Any non-immune person (not vaccinated or vaccinated but did not develop immunity) can become infected.
  • Unvaccinated young children and pregnant persons are at the highest risk of severe measles complications.
  • Measles is still common, particularly in parts of Africa, the Middle East, and Asia.
• Treatment:
  • No specific antiviral treatment exists for measles.
  • It can be prevented with a safe and effective measles-rubella (MR) vaccine that gives long-term immunity.
  • The Government of India (GoI) introduced the measles vaccine in its Universal Immunization Programme in 1985.

Context:

• The government’s response to IndiGo’s flight cancellations has raised serious aviation safety concerns.
• After Indigo’s large-scale disruptions, the Civil Aviation Minister announced that DGCA’s new Flight Duty Time Limitation (FDTL) rules were being put under abeyance, prioritising operational stability and passenger relief.
• Earlier, the DGCA had appealed to pilots and associations to cooperate and subtly signalled a dilution of FDTL norms—despite these rules being mandated under a High Court order to address crew fatigue.
• Critics argue that these actions undermine flight safety, suggesting that India has compromised regulatory integrity to accommodate IndiGo’s commercial interests.
• This article highlights how India’s aviation safety framework has come under severe strain following IndiGo’s mass flight cancellations, exposing long-standing regulatory weaknesses, chronic understaffing, dilution of safety norms.

A Pattern of Diluting Safety Measures

• The DGCA had introduced a strong Civil Aviation Requirement (CAR) in 2007 to address crew fatigue and ensure adequate rest.
• However, airline owners objected, and the Civil Aviation Ministry ordered the DGCA to keep the CAR in abeyance. In May 2008, the DGCA formally suspended the regulation.
• This set a long-standing pattern: commercial interests consistently outweighing crew fatigue and aviation safety.
• Judicial Intervention and Reversal
  • Pilot unions challenged the 2008 order in the Bombay High Court.
  • The Court initially granted interim relief and criticised the Ministry and DGCA for:
    • Endangering pilot and passenger safety
    • Arbitrarily increasing pilot duty hours
    • Prioritising airline profits over safety
  • The Court said airlines should reduce flights if pilot shortages existed.
  • Yet, in a surprising turn, the same High Court later reversed its stance and upheld the Ministry’s decision.

IndiGo and DGCA Ignored a Long-Known Deadline

• The new FDTL rules were known more than a year in advance, with a clear implementation date of November 1, 2025.
• Despite this, both IndiGo and the DGCA failed to prepare, resulting in nationwide chaos and thousands of stranded passengers.
• Refunds may be issued, but passengers’ losses from hotels, transport, and missed commitments remain uncompensated.

Underlying Structural Problem: Chronic Understaffing

• The root of the crisis links back to DGCA’s own requirement (CAR Series C, Part II, Section 3) issued in April 2022, which mandates:
  • At least three sets of crew per aircraft
  • All crew holding valid DGCA licences and endorsements
• The regulation exists on paper, but enforcement has been lax.
• Airlines—including IndiGo—operate with lean staffing models, making them vulnerable to even small regulatory changes and exposing deeper systemic weaknesses.
  • Even under the older and already inadequate FDTL rules, airlines were required to maintain at least six pilot sets per domestic aircraft and twelve for long-haul widebody aircraft.
  • However, airlines — particularly IndiGo — appear to have understaffed intentionally, exploiting gaps in the Civil Aviation Requirements (CAR).

ICAO’s Long-Standing Warning on India’s Aviation Oversight

• The International Civil Aviation Organization (ICAO) warned in 2006 that India needed an independent aviation authority, not one controlled by the government.
• Eighteen years later, the prediction appears validated: DGCA’s oversight has weakened, and airlines operate with the confidence that violations will be overlooked.

December 2025: A Clear Example of Collapsed Oversight

• Recently, in December 2025, two contradictory actions exposed the regulatory breakdown:
  • DGCA appealed to pilots to cooperate with the existing FDTL rules (mandated by the High Court).
  • Hours later, the Ministry suspended those very rules, enabling IndiGo to continue operating without meeting safety-critical crew requirements.
• This amounted to government-sanctioned dilution of safety norms, unprecedented even in developing aviation systems.
• IndiGo has failed to comply with earlier CAR requirements for more than a year, yet the Ministry’s latest order gives the airline until February 10, 2026 to fall in line.
• Given past behaviour, it is unrealistic to expect compliance within two months.
• Further extensions are likely, compromising passenger safety and perpetuating a system where airlines face no meaningful accountability.

Aviation Safety Still Ignored Despite Past Crashes

• India has witnessed three major aviation disasters since 2010 — in Mangaluru, Kozhikode, and Ahmedabad — yet meaningful lessons have not been learned.
• The Air India AI 171 crash report remains inexplicably delayed by the Ministry.
• Even as IndiGo assures that operations will stabilise in 10–15 days, safety has sunk to its lowest point, with flying in India reduced to being “on a wing and a prayer.”
• Despite constant official claims that “safety is paramount,” the decisions taken on December 5, 2025, particularly the dilution of FDTL rules, demonstrate that aviation safety in India remains more myth than reality.

About Intergovernmental Committee for Safeguarding of the Intangible Cultural Heritage:

• Intangible Cultural Heritage (ICH), as UNESCO defines it, includes the practices, knowledge, expressions, objects, and spaces that communities see as part of their cultural identity.
• For the Safeguarding of ICH, UNESCO adopted the 2003 Convention on 17th October 2003 during its 32nd General Conference in Paris.
• The Convention formally established mechanisms for international cooperation, support, and recognition, laying the foundation for UNESCO’s ICH lists and the subsequent work of the Intergovernmental Committee.
• The purposes of this Convention are
  • To safeguard the ICH;
  • To ensure respect for the ICH of the communities, groups, and individuals concerned;
  • To raise awareness at the local, national, and international levels of the importance of the ICH, and ensure mutual appreciation thereof;
  • To provide for global cooperation and assistance.
• The Intergovernmental Committee for Safeguarding of the ICH advances the objectives of the 2003 Convention and ensures their effective implementation across Member States.
• In fulfilling this mandate, the committee:
  • Promotes and monitors the objectives and implementation of the 2003 Convention.
  • Provides guidance on best practices and recommends measures for safeguarding ICH.
  • Prepares and submits to the General Assembly the draft plan for the use of the Intangible Cultural Heritage Fund.
  • Mobilises additional resources for the Fund in accordance with the Convention’s provisions.
  • Drafts and proposes operational directives for the implementation of the Convention.
  • Examines periodic reports submitted by States Parties and compiles summaries for the General Assembly.
  • Evaluates requests from States Parties and makes decisions regarding:
  • Inscription of elements on UNESCO’s ICH Lists (as per Articles 16, 17, and 18).
  • Granting of international assistance.
• Membership:
  • It has 24 members who are elected for a term of four years.
  • The election of new members takes place every two years during the ordinary session of the General Assembly of States Parties.
  • India is currently a member of the committee (2022-2026).

About National Intelligence Grid:

• It is a platform for the police and investigating agencies to securely access government and private databases in real time.
• It is conceptualised as a seamless and secure database for information on terrorists, economic crimes and similar incidents to help bolster India’s capabilities.
• Background: 
  • The project was started in 2009 in the aftermath of the 26/11 Mumbai terror attacks.
  • NATGRID was set up as an attached Office of the Ministry of Home Affairs with effect from December 1, 2010.
  • It started its operations on December 31, 2020.
• NATGRID database is available to;
  • Intelligence Bureau (IB), the Research and Analysis Wing (R&AW), the National Investigation Agency (NIA), the Enforcement Directorate (ED), the Financial Intelligence Unit (FIU), the Narcotics Control Bureau (NCB) and the Directorate of Revenue Intelligence (DRI).
  • Superintendent of Police (SP) rank officers.
• Operation:
  • It has been mandated to maintain a repository of intelligence databases.
  • It works as an integrated intelligence grid that connects databases of core security agencies of the government of India.
  • It will have data related to all immigration entry and exit, banking and financial transactions, credit card purchases, telecom, individual taxpayers, air flyers, train travellers besides others to generate intelligence inputs.
  • It utilises Big Data and Analytics to study huge amounts of data generated to analyse events in order to get a better picture as well as to trail suspects.