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Foreign Policy Watch: India-Pakistan

[31st May 2025] The Hindu Op-ed: Pakistan’s India war 

PYQ Relevance:

[UPSC 2016] Increasing cross-border terrorist attacks in India and growing interference in the internal affairs of several member-states by Pakistan are not conducive for the future of SAARC (South Asian Association for Regional Cooperation). Explain with suitable examples.

Linkage: Pakistan is “continually finding ways and means every few years to provoke a conflict” and seeks to “bleed India by a thousand cuts”. These actions are often manifested as cross-border attacks and interference, making this question highly relevant to the conflict dynamic described in the article. This question directly addresses “cross-border terrorist attacks in India” and “interference in the internal affairs… by Pakistan”.

 

Mentor’s Comment:  India’s recent clash with Pakistan highlights a troubling and ongoing pattern — Pakistan’s military-led and radicalised government keeps trying to destabilise India. Even though India has a clear advantage in technology and strategy, the risk of future conflict remains high. This is due to Pakistan’s lowering nuclear threshold, rising religious nationalism, and growing ties with powerful allies. The clash also showed how modern warfare now relies heavily on technology like drones, radar, and advanced missiles. It exposed India’s weak spots, especially in space-based defence — a major concern if India faces a two-front war with both China and Pakistan.

Today’s editorial will talk about the ongoing pattern — Pakistan’s military-led and radicalised government keeps trying to destabilise India. This content would help in GS Paper II ( IR) and GS Paper III (Defence).

_

Let’s learn!

Why in the News?

The recent conflict shows that Pakistan’s military-led leadership keeps trying to find ways to disrupt or hold back India’s progress.

What drives Pakistan to provoke India repeatedly?

  • Military Mindset Seeking to Undermine India’s Progress: Pakistan’s military-dominated leadership aims to weaken India continuously despite past defeats, pursuing a strategy to “bleed India by a thousand cuts.” Eg: Recurrent cross-border skirmishes and proxy insurgencies in Kashmir.
  • Ideological and Religious Nationalism: Pakistan’s identity is deeply rooted in religious nationalism, seeing India’s secular democracy as its ideological enemy. Kashmir is viewed as a “jugular vein” essential to Pakistan’s national ambition. Eg: Statements by Pakistan’s army chief emphasizing Pakistan as a religious state based on the ‘Kalima’.
  • Political Instability and Military Control: The military controls Pakistan’s politics, using conflict with India to legitimize its authority and distract from internal issues. Eg: Military interference in elections and sidelining of civilian leaders like Imran Khan.

Why is Pakistan’s military leadership crucial to regional peace?

  • Military Dominance Over Political Power: Pakistan’s military controls key decisions, often overriding civilian government, making it the primary actor in India-Pakistan relations. Eg: The military’s role in disqualifying Imran Khan from elections and influencing the civilian leadership.
  • Driver of Conflict and Peace Prospects: The military’s stance determines whether Pakistan pursues conflict or peace with India, as it often promotes hostility to maintain its influence. Eg: Recent provocations and cross-border attacks orchestrated under military leadership despite diplomatic efforts.
  • Influence on Regional Stability: As a nuclear-armed force, the military’s policies significantly impact regional security and peace, especially given Pakistan’s alliance with China and involvement in proxy wars. Eg: Pakistan’s military endorsement of religious nationalism and hardline Kashmir policies increases tensions in South Asia.

How did the conflict show the role of drones and tech in warfare?

  • Rise of Drone Warfare: The conflict highlighted the increased use of drones for reconnaissance and strikes, making warfare more precise and cost-effective. Eg: Pakistan deployed Turkish Songer drones, while India used Kamikaze drones for targeted responses.
  • Airborne Systems & Escalation Dominance: Advanced airborne early warning systems and electronic warfare tools played a key role in gaining escalation dominance quickly. Eg: India’s use of Rafale jets supported by multi-layered air defence systems like Aakash, S-400, and Barak ensured superior aerial control.
  • Integration of Tech in Modern Combat: The conflict revealed the importance of system integration, electronic countermeasures, and kill chain efficiency in tech-driven warfare. Eg: Speculation on whether a Chinese J-10C could use Pakistani radar guidance underscored interest in interoperability and tech collaboration in proxy conflicts.

Who controls Pakistan’s key decisions today?

  • Pakistan’s military, specifically the Chief of Army Staff (now Field Marshal) Asim Munir, controls the country. The civilian government, led by Shehbaz Sharif, is a puppet government subordinate to the military.
  • The military interferes with elections, denies political rights (e.g., to Imran Khan), and shapes Pakistan’s strategic outlook.

Where are the gaps in India’s defence readiness?

  • Lack of Space-Based Surveillance: India lacks a dedicated satellite system for real-time surveillance, early warning, and secure communication, which is critical for modern warfare. Eg:  India must improve its satellite-based reconnaissance to prepare for a two-front warscenario involving Pakistan and China.
  • Limited Preparedness for Two-Front War: While India’s strength is sufficient against Pakistan alone, a simultaneous conflict with China would strain resources and expose strategic vulnerabilities. Eg: The need to balance the combined capabilities of both adversaries highlights the absence of a cohesive dual-front strategy.

Way forward: 

  • Boost Indigenous Space and Surveillance Capabilities: India must rapidly invest in and deploy a dedicated constellation of military satellites for real-time reconnaissance, early warning, and secure communication to ensure situational awareness across borders. Eg: Collaboration between ISRO, DRDO, and private players can fast-track satellite-based surveillance systemsto monitor threats from both Pakistan and China.
  • Formulate a Coherent Two-Front War Doctrine: India should develop a comprehensive dual-front military strategy, including integrated theatre commands, logistics readiness, and joint force training, to ensure faster, coordinated responses. Eg: Establishing Integrated Battle Groups (IBGs) and enhancing border infrastructure can increase India’s mobility and readiness for high-intensity, multi-front warfare.

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Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Steep decline: On the Index of Industrial Production

Why in the News?

India’s industrial output grew by only 2.7% in April 2025, the slowest pace in 8 months, showing a clear slowdown at the start of the new financial year (FY26).

What are the key reasons behind the slowdown in India’s factory output and IIP growth in April 2026?

  • Weak Performance of Core Sectors: The eight core industries, which have a 40% weight in the IIP, grew by just 0.5% in April 2026, the lowest in eight months. Eg: Refinery products, steel, and cement showed subdued output, dragging overall industrial growth.
  • Contraction in Mining Activity: Mining output shrank by 0.2%, marking its first contraction since August 2024, adversely affecting raw material availability for other industries. Eg: Reduced coal and mineral extraction hit electricity generation and steel production.
  • Slowdown in Manufacturing and Electricity Generation: Manufacturing grew only by 3.4% (down from 4.2%) and power generation by 1.1% (down from 10.2%). Eg: Weak electricity demand and reduced industrial usage reflected sluggish overall economic activity.
  • Trade and Tariff-Related Uncertainties: Global trade volatility, tariffs, and supply chain disruptions have reduced demand for export-oriented goods. Eg: Decline in orders from U.S. and EU markets affected electronics and textile manufacturing.
  • Persistently Low Rural Demand: Consumer non-durables contracted for the third consecutive month, indicating weak rural consumption despite low inflation. Eg: Low sales of food and hygiene products in rural markets signal demand compression in the FMCG sector.

Why is the contraction in consumer non-durables output a concern for rural consumption trends?

  • Indicates Weak Rural Demand: Consumer non-durables, such as food and hygiene products, form a major part of rural consumption. A contraction suggests low purchasing power and reduced rural spending. Eg: Declining sales of items like cooking oil, soap, and packaged food in rural areas reflect demand stagnation.
  • Signals Broader Economic Distress in Agriculture-Dependent Households: Despite low inflation, rural incomes haven’t risen due to falling crop prices and below-MSP realizations. This affects demand for basic goods. Eg: Farmers selling wheat and pulses below MSP in mandis earn less, reducing their ability to buy essential goods.
  • Affects Industrial and FMCG Sector Recovery: Sustained low rural consumption weakens demand for consumer non-durables, impacting production and profits in the FMCG and small-scale industries. Eg: Companies like Hindustan Unilever or Dabur see lower rural sales, leading to reduced factory output and job cuts.

How can implementing MSPs more systematically help boost rural incomes and demand?

  • Ensures Price Stability and Income Security for Farmers: A guaranteed MSP reduces the risk of distress sales and provides a stable income floor for farmers, encouraging spending. Eg: If paddy is procured at the MSP instead of below-market rates, farmers are assured of fair returns, enabling them to spend on consumption and inputs.
  • Enhances Rural Purchasing Power and Consumption Demand: Higher farm incomes lead to greater spending on goods and services, especially consumer non-durables, which form a bulk of rural consumption. Eg: A farmer earning better returns on wheat is more likely to purchase goods like clothing, packaged food, and household items.
  • Stimulates Local Economies and Industrial Output: With higher rural demand, local businesses and FMCG industries see increased sales, encouraging higher production and employment. Eg: Higher MSP-based procurement leads to better incomes in Punjab, increasing demand for tractors, fertilizers, and daily-use goods, boosting factory output.

Who should drive capital expenditure to revive demand?

  • Private Sector as the Primary Driver: The private sector must lead CapEx to create productive assets, jobs, and income, especially in manufacturing and infrastructure. Eg: Large firms investing in semiconductor plants or logistics hubs generate employment and boost demand for allied sectors.
  • Government as a Catalyst through Public Investment: The government should maintain strong capital spending on infrastructure, rural development, and connectivity to crowd in private investment. Eg: Projects like Bharatmala or PM Gati Shakti improve transport networks, encouraging private factories and warehousing units to set up nearby.
  • Public-Private Partnerships (PPPs) to Leverage Resources and Efficiency: PPPs can combine government support with private expertise and funding, especially in sectors like renewable energy, urban transport, and health. Eg: Hybrid Annuity Model (HAM) in road construction allows private players to build highways with shared investment risk, boosting economic activity.

Way forward: 

  • Boost Rural Demand through Targeted MSP Implementation and Welfare Schemes: Ensure systematic MSP procurement and expand rural employment and income support to revive consumption of consumer non-durables and support FMCG growth.
  • Accelerate CapEx through Private Investment and Strategic Public Spending: Encourage private sector-led capital expenditure in manufacturing and infrastructure, complemented by government investments in connectivity and logistics to stimulate industrial output and job creation.

Mains PYQ:

[UPSC 2016] The nature of economic growth in India in recent times is often described as a jobless growth. Do you agree with this view? Give arguments in favour of your answer.

Linkage: The concept of “jobless growth” is highly relevant in a scenario where economic expansion, or lack thereof, is debated in relation to employment generation. A slowdown in industrial output could exacerbate concerns about job creation.

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Global Geological And Climatic Events

600-million-year-old stromatolites in the Himalayas tell the story of an ocean lost and Earth’s first breath

Why in the News?

A huge 600-million-year-old group of stromatolites was found in Chambaghat, Himachal Pradesh, sparking new interest in India’s ancient rocks and the early history of life on Earth.

What are stromatolites?

Stromatolites are layered, reef-like structures formed by ancient blue-green algae called cyanobacteria. These tiny microbes trapped and bound sediments in shallow seas, creating mineral mounds over millions of years. They are some of the oldest evidence of life on Earth.

How do they contribute to understanding Earth’s early history?

  • Earliest Evidence of Life: Stromatolites, built by cyanobacteria over 3.5 billion years ago, are among the oldest records of life on Earth. Eg: Stromatolites in Australia date back to 3.6 billion years, showing microbial activity long before complex life existed.
  • Oxygen Production and Atmospheric Change: Cyanobacteria in stromatolites performed photosynthesis, releasing oxygen and leading to the Great Oxidation Event(~2.4 billion years ago). Eg: This oxygenation made the atmosphere suitable for the evolution of multicellular organisms.
  • Tectonic and Environmental Insights: Their presence in now-mountainous regions like Chambaghat in Himachal Pradesh, originally shallow seas, reveals tectonic shifts and lost oceans. Eg: The Chambaghat stromatolites formed in the Tethys Sea, later uplifted to the Himalayas by the collision of the Indian and Eurasian plates.

Where was the recent significant stromatolite outcrop discovered? 

A large outcrop was discovered in Chambaghat, Solan district, Himachal Pradesh. It is located in the pine-clad ridges at around 5,000–6,000 feet above sea level. It belongs to the Krol Group, sedimentary rocks formed in the ancient Tethys Sea.

Why is it unique?

  • Large and Well-Preserved Outcrop: The Chambaghat site features an extensive hill covered with stromatolites, not just a few isolated samples. Eg: Unlike other Indian sites where stromatolites are scattered or small, Chambaghat has a whole hill full of these structures, making it exceptional in scale and preservation.
  • Relatively Young Stromatolites in a High-Altitude Location: These stromatolites date back about 600 million years and are found at an altitude of 5,000–6,000 feet above sea level. Eg: Their presence so high in the Himalayas tells a story of tectonic uplift, where ancient shallow marine depositswere pushed up from the Tethys Sea due to India’s collision with Eurasia.
  • Accessible and Visible Geological Heritage: The site is easily accessible and visible to researchers, locals, and tourists, making it a prime candidate for preservationand education. Eg: Many stromatolite sites in India are obscure or hard to reach, but Chambaghat offers a natural exhibit that could help raise public awareness about Earth’s early history.

Why is there scientific disagreement about the importance of the Chambaghat stromatolites?

  • Not True Fossils but Biosedimentary Structures: Some scientists argue that stromatolites are organo-sedimentary structures, formed by trapped sediments and calcium carbonate, rather than preserved fossils of organisms. Eg: fossils are inaccurate because the original organisms are not preserved, only the structures formed by cyanobacteria.
  • Common and Widespread Geological Features: Stromatolites are found all over India and globally, so some experts feel the Chambaghat stromatolites are not a rare or unique discovery. Eg: The oldest stromatolites in India, like those in Dharwad, Karnataka (2,500 million years old), and worldwide (3.6 billion years old in Australia) are much older and more significant.
  • Not the Oldest or Most Unique Evidence of Life: While Chambaghat stromatolites are impressive, they are relatively young compared to other sites and not the earliest proof of life. Eg: Dr Arun Deep Ahluwalia notes that stromatolites in the Krol Belt are the youngest stromatolites, making them less important for studying the very earliest life forms.

What is the significance of preserving stromatolite sites like Chambaghat? 

  • Educational and Scientific Value: Preserving stromatolite sites helps in studying Earth’s early life and geological history, providing valuable insights into how oxygenation of the atmosphere led to complex life. Eg: Chambaghat’s stromatolites can be used as an exhibit for students and researchers to understand the origin of life and ancient marine environments.
  • Cultural and Geoheritage Importance: Protecting these sites promotes public awareness and tourism, fostering a sense of pride and responsibility towards India’s unique geological heritage. Eg: Creating a Geoheritage Park at Chambaghat can engage locals, tourists, and schools, preserving the site while boosting local economy and education.

Way forward: 

  • Formal Protection and Geoheritage Park Development: Declare Chambaghat stromatolite site a protected geological monument and develop it into a Geoheritage Park to ensure conservation, promote scientific research, and boost geo-tourism.
  • Public Awareness and Educational Outreach: Launch educational programs and community engagement initiatives involving schools, researchers, and local stakeholders to increase awareness about the site’s scientific and cultural significance.

Mains PYQ:

[UPSC 2021] What is Cryptocurrency? How does it affect global society? Has it been affecting Indian society also?

Linkage: The growing importance of cryptocurrency, its disruptive potential in global finance, and its implications for India, specifically mentioning India’s significant number of crypto users. This PYQ demonstrates the UPSC’s interest in the fundamental understanding and societal effects of this technology.

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Festivals, Dances, Theatre, Literature, Art in News

300th Birth Anniversary of Lokmata Ahilyabai Holkar 

Why in the News?

Prime Minister paid tributes to Lokmata Ahilyabai Holkar on her 300th birth anniversary.

About Ahilyabai Holkar:

  • Early Life: Born on May 31, 1725, in Chondi village, (in erstwhile Ahilyanagar District) Maharashtra, Ahilyabai belonged to the Shephard community. Her father, a village head, taught her to read and write—rare for girls then.
  • Marriage and Loss: Married to Khande Rao Holkar in 1733, she was widowed in 1754. Her father-in-law, Malhar Rao Holkar, saw her potential and stopped her from committing sati.
  • Rise to power: After the deaths of her husband, father-in-law, and son, she became ruler of Malwa in 1765 with support from the Peshwa and her army.
  • Capital and Leadership: She moved the capital to Maheshwar, making it a centre of culture, governance, and trade.
  • Military and Administration: Ahilyabai personally led armies and appointed Tukoji Rao Holkar as military commander. She promoted justice, welfare, and agricultural growth.

Legacy and Contributions:

  • Temple Restoration: Rebuilt presend-day Kashi Vishwanath Temple in 1780 and renovated shrines across India, including in Somnath, Haridwar, Pushkar, and Rameswaram.
  • Pilgrim Support: Built rest houses, pilgrim shelters, and ghats to support religious travellers.
  • Maheshwari Sari and Weavers: Promoted the handloom industry, empowering local weavers and women economically.
  • Social Reforms: Protected widows’ rights, supported tribal communities, and ran a secular and inclusive administration.
  • Cultural Patronage: Her court welcomed poets and scholars, including Moropant and Khushali Ram, making Maheshwar an intellectual hub.
  • Peaceful Rule: Her 30-year reign was free from war, making Malwa a rare place of peace and prosperity in a chaotic era.
  • Recognition: Jawaharlal Nehru called her an able ruler; British historian John Keay called her “The Philosopher Queen”.
  • Ongoing Honour: A proposal exists to rename Ahmednagar in Maharashtra as Punyashlok Ahilyadevi Nagar in her memory.
[UPSC 2009] With reference to Stree Shakti Puraskar, for which of the following is ‘Devi Ahilya Bai Holkar Award’ given?

Options: (a) Administrative skills (b) Achievements in Scientific Research (c) Achievements in Sports and Games (d) Courage and valour*

 

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Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

JNCASR develops Fast-Charging Sodium-Ion Battery

Why in the News?

Scientists at Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), Bengaluru have developed a super-fast charging Sodium-ion battery.

About Sodium-Ion Battery and Its Working:

  • What it is: Sodium-ion batteries are rechargeable batteries that use sodium (Na) ions to carry electric charge, instead of lithium.
  • How it works: During charging and discharging, sodium ions move between the anode (negative) and cathode (positive) — similar to how lithium-ion batteries function.
  • Innovation: A sodium-ion battery developed by JNCASR uses NASICON-type chemistry, a special material structure that ensures fast ion movement and stability.
  • Performance Boost: The team used nano-particles, added a carbon coating, and used aluminium doping to improve charging speed and battery life.
  • Fast Charging & Long Life: The battery can charge up to 80% in 6 minutes and last over 3,000 charge-discharge cycles.
  • Tested for Safety: The battery passed tests using electrochemical cycling and quantum simulations, proving it is safe and durable.

Advantages over Lithium-Ion Batteries:

  • Sodium is abundant and cheaper than lithium, and it can be extracted from seawater.
  • Sodium-ion batteries are safer, as they can be transported at zero voltage and used in high temperatures without risk of fire.
  • They are more eco-friendly, with less environmental damage during extraction compared to lithium.
  • Material costs are lower because they use aluminium instead of copper.
  • India can reduce its dependence on China, which controls much of the lithium battery supply chain.
  • These batteries are ideal for renewable energy applications, such as solar grids, electric vehicles, drones, and rural electrification in extreme climates.
[UPSC 2025] In the context of electric vehicles, consider the following elements:

I. Cobalt II. Graphite III. Lithium IV. Nickel

How many of the above usually make up battery cathodes?

(a) Only one (b) Only two (c) Only three * (d) All the four

 

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Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

Quality Council of India (QCI)

Why in the News?

The Minister of State for Commerce and Industry inaugurated the new unified headquarters of the Quality Council of India (QCI) at the World Trade Centre in New Delhi.

About Quality Council of India (QCI):

  • Establishment: QCI was set up in 1997 as an autonomous, non-profit body through a public-private partnership between the GoI and industry associations ASSOCHAM, CII, and FICCI.
  • Legal Status: It is registered under the Societies Registration Act, 1860.
  • Leadership: Ratan Tata was QCI’s first Chairman; the current chairman is appointed by Prime Minister.
  • Parent Department: QCI works under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
  • Role: Acts as India’s national accreditation body, offering independent assessments of products, services, and processes.
  • Mission: To improve quality standards in key areas like education, healthcare, environment, governance, and infrastructure.
  • Financial Model: It is a self-sustaining organisation, generating its own revenue without regular government funding.

Structure, Divisions, and Key Functions:

  • Governing Council: A 38-member council with equal representation from government, industry, and stakeholders oversees QCI.
  • Key Divisions: QCI operates through 5 major boards, each focusing on a different sector:
    1. National Accreditation Board for Testing and Calibration Laboratories
    2. National Accreditation Board for Hospitals and Healthcare Providers
    3. National Accreditation Board for Education and Training
    4. National Accreditation Board for Certification Bodies
    5. National Board for Quality Promotion
  • Core Activities:
    • Develops accreditation systems and quality frameworks.
    • Conducts third-party audits for schemes like Swachh Bharat Abhiyan and Pradhan Mantri Kaushal Vikas Yojana.
    • Runs the National Quality Campaign to build a culture of quality across sectors.
    • Helps boost India’s global competitiveness through quality certification and awareness initiatives.
[UPSC 2017] With reference to Quality Council of India (QCI), consider the following statements:

1. QCI was set up jointly by the Government of India and the Indian Industry.

2. Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government.

Which of the above statements is/are correct?

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

 

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Indian Army Updates

17th Edition of Exercise Nomadic Elephant

Why in the News?

The 17th edition of the India–Mongolia Joint Military Exercise NOMADIC ELEPHANT is being held in Ulaanbaatar, Mongolia from May 31 to June 13, 2025.

About Exercise NOMADIC ELEPHANT:

  • About: It is a bilateral military exercise between the Indian Army and the Mongolian Armed Forces.
  • Launch Year: It was first conducted in 2004 in Mongolia, followed by the second edition in 2005 in Vairengte, Mizoram.
  • Frequency and Hosting: The exercise is held annually, with India and Mongolia alternating as hosts.
  • Recent Editions: The 15th edition was conducted in Ulaanbaatar in July 2023, and the 16th edition was held at Umroi, Meghalaya in July 2024.

Objectives and Focus:

  • Interoperability: The main goal is to improve joint operational coordination between the two-armed forces.
  • Terrain Focus: It trains troops for task force operations in semi-urban and mountainous regions under a UN peacekeeping mandate.
  • Counter-Terrorism Training: The exercise enhances capabilities in counter-terrorism and counter-insurgency operations.
  • Regional Cooperation: It helps build mutual trust, encourages regional peace, and supports strategic cooperation.
[UPSC 2008] ‘Hand-in-Hand 2007’, a joint anti-terrorism military training was held by the officers of the Indian Army and officers of the Army of which one of the following countries?

Options: (a) China (b) Japan (c) Russia (d) USA*

 

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Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

Govt. releases Provisional GDP Estimates

Why in the News?

The Ministry of Statistics and Programme Implementation (MoSPI) released two important data sets on May 30, 2025 — one for India’s GDP growth in Q4 (January–March) FY25, and another for the provisional estimates for the entire FY25 (2024–25).

How is Economic Growth measured?

  • Gross Domestic Product (GDP) measures economic growth by adding all expenditures in the economy — including private, government, and business spending. It shows demand-side performance.
  • Gross Value Added (GVA) measures the supply-side. It calculates how much value is added by each sector of the economy.
  • GDP and GVA are related:
    GDP = GVA + (Taxes) – (Subsidies)
  • MoSPI reports both in:
    • Nominal terms: Includes current prices.
    • Real terms: Adjusted for inflation to reflect true growth.

Why are these Estimates called “Provisional”?

  • GDP estimates are revised in stages:
    • January: First Advance Estimates (FAE)
    • February: Second Advance Estimates (SAE)
    • May: Provisional Estimates (PE)
  • Final figures come later:
    • First Revised Estimate: After 1 year
    • Final Estimate: After 2 years
  • FY25’s final numbers will come in 2026 and 2027.

Key Takeaways from FY25 Data

  • India’s Economy Size:
    • India’s economy is now worth ₹330.7 lakh crore or $3.87 trillion.
    • GDP grew by 9.8%, which is slower than in previous years.
  • Real GDP Growth:
    • After removing inflation, real GDP grew by 6.5%.
    • This is slower than the 9.2% growth seen last year (as mentioned in the Provisional Estimates). (Disputed: India’s real GDP growth rate was 8.2% in FY 2023-24 as per Economic Survey.)
  • Sector Performance:
    • Agriculture grew well at 4.6%.
    • Manufacturing grew only 4.5%, which is a concern.
    • Construction was strong with 9.4% growth.
    • Services grew by 7.2%.
  • Manufacturing Worry:
    • Manufacturing is growing slower than agriculture.
    • This is affecting urban jobs, especially for youth.
  • Best Growth in Jan–Mar 2025 (Q4):
    • GDP growth was 7.4% in Q4 — the highest for the year.
    • Construction grew fastest at 10.8%.
    • Agriculture and Services also did well.
  • Spending Trends:
    • People spent more — household spending rose 7.2%.
    • Investment in assets grew 7.1%, slower than last year.

 

[UPSC 2015] With reference to Indian economy, consider the following statements:

(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?

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

 

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