Why in the News?
Recently, Prime Minister Narendra Modi’s two-day state visit to the Maldives (July 2025) marked a significant reset in bilateral ties after months of strain following the election of President Mohamed Muizzu, who had earlier run on an ‘India Out’ platform.
What caused the India-Maldives ties reset under Muizzu?
- Troop Withdrawal & Civilian Substitution: President Muizzu demanded the removal of Indian military personnel, citing sovereignty. India responded by replacing them with civilian technical staff.
- High-Level Diplomatic Engagements: Muizzu visited New Delhi in October 2024, signaling openness to dialogue.Indian PM reciprocated with a state visit to Male in July 2025, the first by a foreign Head of State under Muizzu.
- Economic Support & Debt Relief: India extended budgetary support and credit lines, easing Maldives’ financial burden. Eg: A ₹4,850 crore Line of Credit and 40% debt repayment reduction in 2025.
- Softening of Rhetoric & Public Signals: President Muizzu acknowledged historical ties, calling the Indian Ocean a testament to shared heritage. This marked a shift from his earlier India-Out campaign tone.
- Launch of Institutional Mechanisms: Announcement of India-Maldives Parliamentary Friendship Group and FTA discussions in 2025.
How has India ensured the Maldives’ security?
- Military Intervention in Crisis: In 1988, India launched Operation Cactus to foil a coup attempt, securing the capital and leadership.
- Bilateral Defence Cooperation: The DOSTI maritime exercise, started in 1991, strengthens Coast Guard coordination.
- Strategic Presence and Infrastructure Support: India maintained a defensive presence (now civilian) and supported surveillance capabilities like helped set up coastal radar systems.
- Humanitarian and Disaster Relief Operations: India has provided quick assistance during natural disasters, showcasing readiness and goodwill. India provided critical aid to Maldives after the 2004 Indian Ocean tsunami.
- Regional Security Engagements: Maldives is a key member of the Colombo Security Conclave, focusing on counter-terrorism and maritime security.
Why is the Maldives vital for India amid China’s presence?
- Strategic Location in the Indian Ocean: The Maldives lies along key international shipping lanes, making it critical for India’s maritime security and energy supply routes. Eg: Over 80% of India’s energy imports pass close to the Maldives archipelago, near the Eight Degree Channel.
- Countering China’s Expanding Influence: China’s increasing investments and debt diplomacy in Maldives threaten to shift the regional balance. Eg: The Sinamale Bridge, built with Chinese funding, raised concerns over strategic dependence.
- Ensuring Regional Stability and Security Cooperation: Maldives’ support is essential for coordinated patrols, anti-terrorism, and anti-piracy efforts.
Way forward:
- Strengthen People-to-People Ties and Institutional Dialogue: Promote educational, cultural, and tourism exchanges while deepening parliamentary and civil service cooperationto build long-term goodwill and trust.
- Enhance Transparent and Sustainable Development Partnerships: Focus on jointly planned, community-driven projects with clear benefits to Maldivian citizens, countering external influence through mutual respect and shared values.
Mains PYQ:
[UPSC 2024] Discuss the geopolitical and geostrategic importance of Maldives for India with a focus on global trade and energy flows. Further also discuss how this relationship affects India’s maritime security and regional stability amidst international competition?
Linkage: The article talk about the Maldives’ geographical location in the northern Indian Ocean and its historical and ongoing ties with India. It also highlights India’s concerns about “growing Chinese influence in the region”, which directly relates to “international competition” and its impact on “regional stability.” The question also touches upon “global trade and energy flows” and “maritime security,” which are intrinsic to the strategic importance of an island nation like Maldives.
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Why in the News?
The International Monetary Fund (IMF) has released the July 2025 update to its World Economic Outlook (WEO).
About World Economic Outlook (WEO):
- Published By: International Monetary Fund (IMF)
- Frequency: Biannual (April, October) + updates in January and July
- Purpose: Provides global forecasts on GDP, inflation, trade, and policy trends
- Data Sources: IMF consultations with member nations and internal models
- Audience: Governments, institutions, investors, researchers
- July 2025 Update Title: “Global Economy: Tenuous Resilience amid Persistent Uncertainty”
Key Highlights – July 2025 Update:
- Global Growth Projections:
-
- 2025: 3.0% (↑ from 2.8% in April)
- 2026: 3.1% (↑ from 3.0%)
- Despite multiple shocks—COVID-19, the Ukraine war, tariff increases—global growth continues.
However, resilience remains fragile due to:
- US–China tariff tensions and rising protectionism
- Conflicts in Ukraine and the Middle East
- High public debt in advanced economies is raising interest rates
- Country Forecasts for 2025: United States: 1.9%, China: 4.8% (↑ from 4.0%), Euro Area: 1.0%, Germany: 0.1%, United Kingdom: 1.2%, Japan: 0.7%, Russia: 0.9%, Pakistan: 2.7%.
India – The Bright Spot:
- Growth Rate: 2023: 9.2%; 2024: 6.5%; 2025: 6.4% (strongest among major economies).
- Drivers of Growth:
- Robust domestic demand
- Strong services and manufacturing output
- Effective inflation and monetary policy management
- Strategic Position:
- Set to overtake several advanced economies in GDP size
- Viewed globally as a “bright spot” amid persistent uncertainties
| [UPSC 2014] Which of the following organisations brings out the publication known as ‘World Economic Outlook?
Options: (a) The International Monetary Fund * (b)The United Nations Development Programme (c) The World Economic Forum (d) The World Bank |
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Why in the News?
Skill Impact Bonds (SIB) were recently highlighted by the Skill Development Ministry.
About the Skill Impact Bond:
- Launched: November 2021
- Nature: India’s first Development Impact Bond (DIB) focused on employment-linked skill development
- Lead Agency: National Skill Development Corporation (NSDC), under the Ministry of Skill Development and Entrepreneurship
- Collaborators: British Asian Trust, HSBC India, Michael & Susan Dell Foundation
- Target: Train and place 50,000 youth over 4 years, with 62% women participation
-
- Risk Investors: Provide upfront capital to training providers
- Training Providers: Deliver skill training and ensure job placements
- Outcome Funders: Repay investors only if job outcomes are achieved
- Evaluators: Independently assess outcomes via CATI surveys and document verification
Key Features:
- Outcome-Focused Approach: Measures success by certification, placement, and 3-month retention, not just enrolment
- Eligibility Criteria:
- Age: 18–40 years; Education: Undergraduate or below
- Status: Unemployed or earning below ₹15,000/month, or household income below ₹25,000/month
- Sectoral Coverage: Retail, Healthcare, Apparel, Logistics, Information Technology & IT-enabled Services, Banking, Financial Services & Insurance.
- Women-Focused Design: Ensures 62% female participation to bridge the gender employment gap
| [UPSC 2018] With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:
1. It is the flagship scheme of the Ministry of Labour and Employment.
2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.
3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.
Which of the statements given above is/are correct?
Options: (a) 1 and 3 only (b) 2 only (c) 2 and 3 only* (d) 1, 2 and 3 |
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Why in the News?
According to the Reserve Bank of India (RBI), digital payments registered a 12.6% year-on-year rise as of March 31, 2024, as measured by the RBI’s Digital Payments Index (DPI).
About RBI’s Digital Payments Index (DPI):
- Launched by: Reserve Bank of India (RBI) in January 2021
- Purpose: Measures the extent of digital payment adoption across India
- Base Period: March 2018 (Index value = 100)
- Release Frequency: Semi-annually (with a 4-month lag)
- Objective: Track usage, infrastructure, and growth in digital payments
- Key Parameters (with Weightage): These evaluate infrastructure readiness, transaction volume, user adoption, and innovation.
-
- Payment Enablers – 25%
- Payment Infrastructure – Demand Side – 10%
- Payment Infrastructure – Supply Side – 15%
- Payment Performance – 45%
- Consumer Centricity – 5%
Growth Highlight:
- Growth Trends in RBI-DPI: DPI grew nearly 5 times from 100 in March 2018 to 493.22 in March 2025, reflecting India’s rapid digital payment adoption.
- Nearly 5× increase from the base value in 7 years
- Driven by rapid expansion of Unified Payments Interface (UPI), mobile wallets, and QR code infrastructure
| [UPSC 2024] Consider the following countries:
I. United Arab Emirates II. France III. Germany IV. Singapore V. Bangladesh
How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?”
Options: (a) Only two (b) Only three* (c) Only four (d) All the five
Answer: (b) Only three (UAE, France, Singapore) |
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Why in the News?
The National Cooperation Policy (NCP) 2025 recently unveiled by Union Home and Cooperation Minister Amit Shah has drawn criticisms from SKM (Samyukt Kisan Morcha).
Also in news:
- The Union Cabinet has also approved a ₹2,000 crore Central Sector Scheme to aid National Cooperative Development Corporation (NCDC) from 2025–26 to 2028–29.
- NCDC was established in 1963 as a statutory Corporation under Ministry of Agriculture & Farmers Welfare (now functions under the Ministry of Cooperation since 2021).
|
About Cooperatives in India:
- What is it: A cooperative is a voluntary, autonomous association of individuals who unite to meet common economic, social, or cultural needs through a jointly-owned and democratically-controlled enterprise.
- Key Principles:
- One member, one vote: Equal say in governance, regardless of financial contribution.
- Based on collective benefit, democratic control, and mutual aid.
- Historical Evolution:
- 1904 & 1912: Cooperative Acts laid the foundation for the cooperative movement in India.
- Post-independence: Emphasis on rural credit, dairy, and agriculture cooperatives (e.g., Amul).
- Key Institutions: NABARD (National Bank for Agriculture and Rural Development), NCDC (National Cooperative Development Corporation).
- Constitutional & Legal Backing:
- 97th Constitutional Amendment (2011):
- Article 19(1)(c): Right to form cooperative societies.
- Article 43B: Directive Principle promoting cooperative societies.
- Part IXB (Articles 243ZH to 243ZT): Provides governance framework.
- MSCS Act, 2002: Governs multi-state cooperatives (under Central Registrar).
- State List (Entry 32): State legislatures regulate intra-state cooperatives.
- Scale:
- India has over 8.42 lakh cooperatives with 29 crore members (~27% of global total).
- Leading states: Maharashtra, Gujarat, Telangana, MP, Karnataka.
- Notable cooperatives: IFFCO, Amul — ranked among top 300 cooperatives globally.
|
National Cooperation Policy (NCP) 2025:
- Launch: Introduced by Union Minister Amit Shah on July 24, 2025.
- Vision: “Sahakar se Samriddhi” — promoting prosperity through cooperatives.
- Objective:
- Establish a comprehensive national framework for cooperative growth (2025–2045).
- Replace the 2002 policy and drive inclusive development through grassroots cooperatives.
- Key Features:
- 2 lakh new Primary Agricultural Credit Societies (PACS) in 5 years
- Scheme convergence: e.g., PM Matsya Sampada Yojana, NPDD
- Inclusive focus: Women, Dalits, Adivasis, youth
- Sector expansion: Into 25+ areas—dairy, fisheries, exports, technology
- Education: First cooperative university—Tribhuvan Sahkari University
- Export support: Through National Cooperative Exports Limited (NCEL)
- Digital thrust: Emphasis on digitisation and platform integration
Issues with NCP, 2025:
- Federalism Undermined
- Entry 32: Cooperatives are a State Subject
- SC Verdict (2021): Centre cannot regulate intra-state cooperatives
- Criticism: Policy lacks ratification by half the states (Article 368(2))
- Corporate Entry Fears
- Emphasis on digital platforms may enable indirect corporatisation
- Potential marginalisation of small farmers and FPOs
- Weak Social Inclusion
- Lacks focus on Minimum Support Price (MSP), surplus sharing
- No robust support for producer cooperatives or fair wages
- Inclusion of tribals, Dalits, women remains rhetorical
| [UPSC 2021] With reference to ‘Urban Cooperative banks’ in India, consider the following statements:
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.
Which of the statements given above is/are correct?”
Options: (a) 1 only (b) 2 and 3 only* (c) 1 and 3 only (d) 1, 2, and 3 |
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