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GS Paper: GS3

  • India’s Q2 FY26 GDP Growth  

    Why in the News?

    India’s GDP grew 8.2% in Q2 of FY 2025-26 (July–September), marking a six-quarter high, supported mainly by manufacturing and services.
     However, economists flagged concerns over low nominal GDP growth (8.7%), which signals subdued economic activity and potential stress on fiscal targets.

    Key Data

    • Real GDP growth (Q2 FY26): 8.2%
    • Real GDP growth (Q1 FY26): 7.8%
    • Growth in H1 FY26: 8%
    • Nominal GDP growth: 8.7% (vs Budget assumption of 10.1%)
    • Last higher GDP growth: Q4 FY24
    • Government revised full-year growth forecast: “7% or higher”

    Why High Real but Low Nominal Growth?

    • Nominal GDP = Real GDP + Inflation (GDP deflator)
    • A very low deflator (~0.5%) boosted real growth artificially
    • Indicates inflation in tradable/manufactured goods is low, not necessarily high economic momentum
    • Low nominal growth → Lower tax revenues, harder to meet fiscal deficit target of 4.4%

    Sector-wise Performance

    1. Manufacturing

    • Growth: 9.1% (six-quarter high)
    • Reasons:
      • Corporate earnings showed strong growth
      • Low base effect (growth was only 2.1% last year)

    2. Services

    • Growth: 9.2%
    • Within services:
      • Financial, real estate, professional services: 10.2% (nine-quarter high)
      • Public admin, defence & other services: 9.7%

    3. Agriculture

    • 3.5% (lower than 4.1% last year)
    • Slight moderation due to uneven monsoon patterns

    Fiscal Concerns

    • Nominal GDP shortfall may:
      • Reduce tax buoyancy
      • Pressure fiscal deficit (target: 4.4%)
      • Lower denominator for deficit calculation
    • Lower capital expenditure visible (“no upswing in GFCF”)

    Opposition Criticism

    • IMF recently rated India’s national accounts ‘C’, the second-lowest grade
      • Claims real GDP inflated using unrealistically low deflator
      • Points to weak private investment and thin capital formation

    With reference to Indian economy, consider the following statements : (2015)

    (1) The rate of growth of Real Gross Domestic product has steadily increased in the last decade. 

    (2) The Gross Domestic product at market prices (in rupees) has steadily increased in the last decade. 

    Which of the statements given above is/ are correct? 

    (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 

  • Tex-RAMPS Scheme

    Why in the News?

    The Government of India approved a new scheme called Tex-RAMPS to strengthen research, data systems, innovation, and competitiveness in India’s textiles sector.
     The scheme aligns with India’s push to make its textiles ecosystem future-ready, technologically advanced, and globally competitive.

    What is Tex-RAMPS?

    Tex-RAMPS = Textiles Focused Research, Assessment, Monitoring, Planning and Start-up Scheme. It is a Central Sector Scheme, fully funded by the Ministry of Textiles.

    Outlay & Duration

    • Total Outlay: ₹305 crore
    • Period: FY 2025-26 to FY 2030-31
    • Co-terminus with the upcoming Finance Commission cycle

    Objectives

    To future-proof India’s textiles & apparel (T&A) ecosystem by:

    • Strengthening research and innovation
    • Building robust data systems
    • Enhancing global competitiveness
    • Supporting start-ups
    • Improving capacity development across the sector
    Atal Innovation Mission is set up under the (2019)

    (a) Department of Science and Technology 

    (b) Ministry of Employment 

    (c) NITI Aayog 

    (d) Ministry of Skill Development and Entrepreneurship

  • Grey Seal Milk Complexity  

    Why in the News?

    A study published in Nature (Nov 2025) found that grey seal milk contains 332 different oligosaccharides—33% more than human breast milk, previously considered the most complex.

    Key Findings

    Highest Oligosaccharide Diversity

    • Grey seal milk contains 332 oligosaccharides
       (Human milk: ~100).
    • This is the largest number ever recorded in any mammal’s milk.

    Functions of Oligosaccharides

    • Boost immunity (protect against bacteria & viruses).
    • Support gut microbiome formation.
    • Aid digestive tract development.
    • Provide energy and growth support for pups.

    Why Grey Seal Milk is So Complex?

    • Grey seals:
      • Live in harsh, high-risk environments.
      • Mothers fast for ~18 days while feeding pups.
      • Pups grow extremely rapidly during this period.
    • Complex sugars help pups survive extreme conditions and develop strong immunity quickly.

    Study Details

    • Conducted by the University of Gothenburg (Sweden).
    • Samples collected from Atlantic grey seals on a small Scottish island.
    • Analytical method used: Deep mass spectrometry.
      • A very advanced method of mass spectrometry that can detect hundreds to thousands of molecules in a sample with very high accuracy.
    Consider the following: 

    1. Bats 

    2. Bears 

    3. Rodents 

    The phenomenon of hibernation can be observed in which of the above kinds of animals? 

    (a) 1 and 2 only 

    (b) 2 only 

    (c) 1, 2 and 3 only 

    (d) Hibernation cannot be observed in any of the above

    This PYQ is chosen because it directly addresses the peculiar biological feature (hibernation) that allows mammals to survive challenging environmental conditions, which conceptually mirrors the adaptive features of the grey seal

  • Aloe vera Compounds as Potential Alzheimer’s Inhibitors  

    Why in the news?

    A new study (Current Pharmaceutical Analysis, 2025) suggests that common plant molecules from Aloe vera—especially Beta sitosterol—may inhibit key enzymes associated with Alzheimer’s disease (AD). Findings are based entirely on in silico (computer simulation) techniques.

    What is Computer Simulation (In Silico Research)?

    • Computer simulation, often called in silico research, refers to the use of computational tools and algorithms to model biological, chemical, or physical processes.
    • It allows scientists to predict molecular interactions, drug behavior, and biological outcomes without physical experiments.

    Alzheimer’s Disease (AD) 

    • Most common form of dementia.
    • Characterised by:
      • Memory loss
      • Cognitive decline
      • Accumulation of beta-amyloid plaques and tau tangles
      • Loss of acetylcholine, a neurotransmitter linked to learning and memory.
    • Enzymes involved in acetylcholine breakdown:
      • Acetylcholinesterase (AChE)
      • Butyrylcholinesterase (BChE)
    • Current drugs (e.g., donepezil, rivastigmine) work by inhibiting these enzymes but do not stop disease progression.

    Why Aloe vera?

    • Used for 3000+ years in traditional medicine.
    • Contains bioactive compounds such as Beta sitosterol, Succinic acid, polysaccharides, and phenolics.

    Major Findings

    • Beta sitosterol showed strong binding affinity to both enzymes:
      • AChE: −8.6 kcal/mol
      • BChE: −8.7 kcal/mol
    • The binding strength is higher than that of other screened compounds like Succinic acid.
    • ADMET results suggest:
      • Good absorption
      • Low toxicity
      • Favourable pharmacokinetic profile
    Which one of the following is the context in which the term “qubit” is mentioned? (2022)

    (a) Cloud Services 

    (b) Quantum Computing 

    (c) Visible Light Communication Technologies 

    (d) Wireless Communication Technologies

    This PYQ is chosen because it tests a fundamental concept related to the cutting edge of computational power and modelling, which is the operational domain of computer simulation.

  • Vitamin B12 Deficiency & Skin Manifestations 

    Why in the news?

    According to a study published in Canad­ian Family Physician, Vitamin B12 deficiency often shows early dermatological symptoms—such as pigmentation, dryness, and inflammation—before neurological or hematological complications appear.

    What is Vitamin B12?

    • Water-soluble vitamins are essential for: Red blood cell formation, Nerve function, DNA synthesis and Cell growth and repair

    Why Skin Shows Early Signs?

    • B12 deficiency → reduced RBC production → low oxygen delivery to skin → visible skin changes.
    • Weak immunity and impaired nerve function further worsen dermatological issues.
    High-Risk Groups

    More prone to Vitamin B12 deficiency:

    • Vegetarians/vegans
    • Adults > 50 years
    • Individuals with:
      • Gastritis, Crohn’s disease, celiac disease
    • Those taking:
      • Antacids (PPIs/H2 blockers)
      • Metformin
    • People with poor nutrient absorption
    Consider the following pairs: Vitamin : Deficiency disease (2014)

    1. Vitamin C : Scurvy 

    2. Vitamin D : Rickets 

    3. Vitamin E : Night Blindness 

    Which of the pairs given above is/are correctly matched? 

    (a) 1 and 2 only (b) 3 only (c) 1, 2 and 3 only (d) None

  • [28th November 2025] Hindu OpED Are the labour codes labour friendly

    PYQ Relevance

    [UPSC 2024] Discuss the merits and demerits of the four ‘Labour Codes’ in the context of labour market reforms in India. What has been the progress so far in this regard?

    Linkage: The article’s debate on worker protection vs. industry flexibility directly reflects the merits and demerits raised in this PYQ. It also covers the slow implementation and stakeholder resistance, matching the question’s focus on progress.

    Mentor’s Comment

    The introduction of India’s four consolidated labour codes has triggered a high-stakes national debate on whether they truly modernise labour regulation or dilute long-standing protections. This article dissects the core arguments expanding them into a UPSC-focused analytical framework. The aim is to help aspirants understand the political economy of labour reforms, their implications for workers and industry, and their place in India’s growth policy discourse.

    WHY IN THE NEWS?

    India’s four consolidated labour codes, wage, social security, industrial relations, and occupational safety, have reignited debate as trade unions accuse the government of diluting protections while industries argue they streamline a fragmented regulatory environment. The issue is significant because India has not attempted such a comprehensive codification since Independence, and the codes come at a time when informal workers form 93% of the workforce but only 7% receive social security. The codes also affect hiring, firing, job security, and collective bargaining, core issues shaping labour productivity and industrial peace.

    INTRODUCTION

    India’s labour market operates at the intersection of rapid economic modernization and persistent structural informality. The four new labour codes aim to consolidate 29 existing laws, reduce compliance rigidity, support ease of doing business, and expand social security. However, the reforms have triggered disagreements between trade unions, who fear erosion of worker rights, and industries, who seek flexibility to improve competitiveness. This article examines the institutional debates and policy implications emerging from the new codes.

    The Historical Context of Labour Law Reform

    1. Fragmented Legislation: Consolidated 29 separate laws, many framed in the 1940s-50s, marked by overlapping definitions, multiple inspections, and differing interpretations across states.
    2. Changing Labour Landscape: Witnessed rapid industrial growth, gig work, platforms, logistics, contract labour, and digital-era employment, demanding updated regulatory structures.
    3. Productivity Imperatives: Industries argue workers must be protected and empowered but rigidities must reduce to strengthen India’s global competitiveness.

    What Necessitated the Labour Codes?

    1. Regulatory Overlap: Multiple laws with inconsistent provisions complicated compliance and enforcement.
    2. Economic Modernisation Need: Traditional industry structure gave way to gig work, platform work, logistics, e-commerce and new forms of employment, requiring modern regulation.
    3. Social Protection Gap: Only 7% of workers covered by social security; informal economy workers remain largely unprotected.
    4. Investment Climate Concerns: Procedural delays in hiring/firing, disputes, and closures deterred global investment.

    Do the Labour Codes Promote or Restrict Worker Rights?

    1. Trade Union Concern-Reduced Security: Fears that fixed-term contracts, easier retrenchment thresholds, and union restrictions weaken bargaining power.
    2. Collective Bargaining Apprehension: Codes allow only a single negotiating union, potentially marginalising smaller unions.
    3. Industry Perspective-Greater Formalisation: Codification ensures predictable rules, reduces litigation, and encourages job creation.
    4. Worker Protection Measures: Codes extend minimum wage applicability, mandate formalised contracts, introduce new safety norms, and expand the definition of employees.

    How Will the Codes Impact Social Security and Gig Workers?

    1. Social Security Expansion: Gig and platform workers added under social security, but benefits remain contingent upon schemes and government implementation.
    2. Funding Challenges: Industry argues government and employees must co-contribute; trade unions insist government should shoulder primary responsibility.
    3. Small Share of Gig Workers: Currently form a small slice of the informal sector but rapidly growing; require future-ready welfare structures.

    Do the Codes Improve Industrial Relations and Productivity?

    1. Industry View: Ensures Stability
      • Predictability and ease of compliance strengthen investment climate and reduce industrial disputes.
    2. Trade Union View: Risk of Industrial Unrest
      • Dissatisfaction due to inadequate representation and perceived dilution of rights may trigger strikes.
    3. Flexibility vs. Protection Debate: Government seeks a balance between global competitiveness and worker protection.

    Will the Codes Expand Organised Employment?

    1. Industry Assertion: Broader wage definitions, coverage of establishments, and social security norms bring more workers under formal sector protections.
    2. Union Counterpoint: Without job stability, contract labour proliferation may worsen precarity.

    CONCLUSION

    India’s labour codes represent an ambitious attempt to modernise outdated labour laws, enhance productivity, and integrate India into global manufacturing networks. However, the success of these reforms will depend on transparent implementation, a balanced approach to worker protection, and sustained dialogue with trade unions. A labour ecosystem that provides both flexibility and security is essential for equitable and sustainable growth.

  • International Astronomical Union (IAU) 

    Why in the news?

    • A 3.5-billion-year-old Martian crater has been named after Indian geologist M.S. Krishnan. The naming was approved by the International Astronomical Union (IAU).
    • Several other names proposed by Kerala scientists for Martian landforms were also approved.

    About the Martian Crater

    • Estimated to be 3.5 billion years old, dating back to Mars’ early geological history.
    • Located in a region studied for traces of ancient water and habitability.

    Who Was M.S. Krishnan?

    • Full name: Maharajapuram Seetharaman Krishnan
    • One of India’s most influential geologists, known as a foundational figure in modern Indian geological studies.
    • Served as Director, Geological Survey of India (GSI) (1950–1956).

    Major Contributions

    • Mapped India’s geological structures, including:
      • Indian stratigraphy
      • Peninsular shield
      • Himalayan formations
    • Played a leading role in mineral exploration and petroleum geology in India.
    • Contributed to studies on:
      • Gondwana formations
      • Economic geology
      • Earth resources of India

    Famous Work

    • Author of the landmark textbook “Geology of India and Burma”, a globally referenced work in earth sciences.

    About the International Astronomical Union (IAU)

    • Founded: 1919
    • A senior international body that governs professional astronomical activities worldwide.
    • Mission: Promote and safeguard astronomy through research, communication, education, development, and international cooperation.
    • Headquarters: Paris, France
    • India is a member of it 
    What is the purpose of ‘evolved Laser Interferometer Space Antenna (ELISA)’ project? (2017)

    (a) To detect neutrinos 

    (b) To detect gravitational waves 

    (c) To detect the effectiveness of missile defence system 

    (d) To study the effect of solar flares on our communication systems

    This PYQ is selected because it directly tests knowledge of a major international scientific venture in the field of astronomy/cosmology, which is conceptually linked to the mandate of the IAU

  • Entrepreneur-in-Residence (EIR) Programme & BRIC  

    Why in the news? 

    At the 3rd Annual General Meeting of the Biotechnology Research and Innovation Council (BRIC), Union Minister Dr. Jitendra Singh highlighted the growing importance of the Entrepreneur-in-Residence (EIR) Programme and India’s rising biotech innovation ecosystem.

    Entrepreneur-in-Residence (EIR) Programme

    • It is one of the programmes launched under the National Initiative for Developing and Harnessing Innovations (NIDHI).
    • A Government of India initiative to bridge the gap between research and enterprise.
    • Encourages young scientists, innovators, and researchers to become scientist-entrepreneurs.
    • Helps convert lab research → market-ready innovations.

    About BRIC

    • Established: 2023
    • Type: Pan-India umbrella network of biotechnology research institutions.
    • First major experiment in merging multiple institutes under one collaborative body.
    • Ranked as India’s top organization in biological sciences research (Nature Index India 2025).
    Which of the following statements is/are correct regarding National Innovation Foundation India (NIF)? (2015)

    (1) NIF is an autonomous body of the Department of Science and Technology under the Central Government. 

    (2) NIF is an initiative to strengthen the highly advanced scientific research in India’s premier scientific institution in collaboration with highly advanced foreign scientific institution. 

    Select the correct answer using the code given below. 

    (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

  • Hawfinch Sighting in Jim Corbett National Park  

    Why in the news?

    • A Hawfinch (Coccothraustes coccothraustes), a bird species native to Europe, North Africa, and temperate Asia, was recorded on 23 November in the Dhela zone of Jim Corbett National Park, Uttarakhand. This is considered a vagrant bird sighting.

    About Hawfinch (Coccothraustes coccothraustes)

    • Family: Fringillidae (Finches)
    • Size: ~18 cm
    • Wingspan: 29–33 cm
    • Distinctive Feature: Very powerful, heavy bill capable of cracking extremely hard seeds/nuts.
    • Plumage: Males and females similar; males slightly darker.

    Native Range

    • Europe and North Africa
    • Temperate Asia, including:
      • Mongolia and Kazakhstan
    • Not native to India.

    Status in India

    • Sighting classified as a vagrant record—bird appears outside its usual distribution range.
    • Only two previous records in the Indian subcontinent:
      • Muzaffarabad (1908) – PoK
      • Aliabad (2017) – PoK
    • This is one of the very few confirmed sightings.
    Why is a plant called Prosopis juliflora often mentioned in the news? (2018) 

    (a) Its extract is widely used in cosmetics. 

    (b) It tends to reduce the biodiversity in the area in which it grows

    (c) Its extract is used in the synthesis of pesticides

    (d) None of the above

    This question tests the critical concept of non-native or exotic species impacting biodiversity, which is the implicit environmental concern raised by the Hawfinch sighting.

  • [27th November 2025] Hindu OpED Limited room: On the Indian rupee

    PYQ Relevance

    [UPSC 2018] How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?

    Linkage: Protectionism and currency pressures weaken the rupee, widen the CAD, and raise imported inflation. This directly affects India’s macroeconomic stability, as seen in the article’s emphasis on dollar strength and RBI’s limited room.

    Mentor’s Comment

    India’s recent 7% rupee depreciation has revived an uncomfortable truth, monetary tools alone cannot stabilise the currency when structural vulnerabilities remain unaddressed. The article examined today highlights India’s long-standing dependence on oil imports, the RBI’s limited manoeuvring room, and why external pressures have outweighed domestic macro stability. For UPSC aspirants, this topic offers rich intersections across macroeconomics, external sector management, energy security, inflation dynamics, trade policy, and structural reforms.

    Introduction

    India’s rupee has depreciated about 7% between late November 2024 and now, sliding from ₹83.4/$ to nearly ₹89.2/$. Despite large-scale RBI intervention, including selling nearly $50 billion in forex, the currency continues to weaken amid external pressures. The episode mirrors the 2018 phase of global dollar strength and U.S. interest rate hikes, exposing India’s long-standing vulnerability: heavy dependence on expensive crude oil imports. With crude forming more than one-fifth of total imports, and India transitioning away from Russian supplies, monetary stabilisation alone is insufficient.

    Why in the News 

    The rupee has dropped nearly 7% to ₹89.2 per dollar, even after the RBI sold $50 billion to stabilise it. This mirrors the 2018 downturn when global dollar strength and U.S. rate hikes triggered similar pressure. What makes this episode striking is the contradiction: inflation is low (0.25% in Oct 2025), forex reserves remain comfortable at $693 billion, yet the rupee continues to slide. The rapid fall highlights India’s structural weakness, oil import dependence, which raises the current-account deficit and inflation risks despite favourable domestic conditions.

    What Explains the Recent Rupee Depreciation?

    1. Global Dollar Strength: Mirrors 2018 trends where strong U.S. interest rates and trade tensions pressured emerging market currencies.
    2. Widening Current Account Deficit: Rising bullion imports as a hedge in uncertain times widened the CAD.
    3. Exporter Competitiveness Issues: Exporters struggled to maintain margins due to high U.S. tariffs, increasing pressure on the INR.

    Why Are RBI Tools Proving Insufficient?

    1. Floating-but-Managed Regime: RBI can only “smoothen volatility”, not fix the rate.
    2. Forex Market Intervention: RBI sold nearly $50 billion, yet depreciation continued, signalling strong external headwinds.
    3. Liquidity Supports via Swaps:
      1. 2018: First longer-term currency swap as a systemic liquidity check.
      2. 2019: Completed a $5 billion three-year swap.
      3. Feb 2025: Conducted a $10 billion buy-sell auction to infuse long-term rupee liquidity.

    Why Is This Rupee Slide Concerning Despite Low Inflation?

    1. Exceptionally Low CPI Inflation: Headline CPI at 0.25% (Oct 2025), well below RBI’s 2-6% band, should normally support the rupee.
    2. Transition-Induced Cost Pressures: Shift from cheaper Russian crude toward costlier U.S. imports exerts upward pressure.
    3. Risk of Imported Inflation: Higher oil prices raise logistics, manufacturing, and CPI components.

    Why Must India Reduce Dependence on Oil Imports?

    1. Over One-Fifth of FY25 Imports Are Crude: A single commodity dominates the import basket, creating vulnerability.
    2. Rupee-Oil Linkage: Any crude price rise automatically weakens the rupee by widening CAD.
    3. Limited Monetary Space: Rupee stabilisation cannot rely solely on forex intervention or interest rate changes.

    What Structural Reforms Are Needed?

    1. Faster Transport Electrification: Must be treated as a strategic imperative, not a long-term aspiration.
    2. Holistic Trade Policy: India’s bilateral deals (Japan, UAE, ASEAN) have tilted the trade balance against it, offering limited diversification of energy trade routes.
    3. Reduced Oil Intensity in GDP: Accelerating renewable capacity, green hydrogen, and domestic energy alternatives.

    Conclusion

    The current rupee slide highlights a deeper structural flaw: India’s dependence on oil imports exposes it to global price volatility and external shocks. With RBI intervention offering only temporary relief, sustainable currency stability requires reducing crude dependence, reforming trade strategy, and accelerating energy transition. Unless structural measures address the root vulnerability, India cannot insulate the rupee from future external pressures.