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Day: October 31, 2025

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Artificial Intelligence (AI) Breakthrough

[31st October 2025] The Hindu Op-ed: AI’s rewriting the rule of education

op-ed snap | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

PYQ Relevance

[UPSC 2023] Introduce the concept of Artificial Intelligence (AI). How does AI help clinical diagnosis? Do you perceive any threat to privacy of the individual in the use of AI in the healthcare?

Linkage: The PYQ highlights AI’s role in improving efficiency while raising privacy concerns. This theme directly relates to ethical and responsible use of AI in education.

Mentor’s Comment

India’s education system is witnessing a paradigm shift. The government’s decision to integrate Artificial Intelligence (AI) into school curricula from as early as Class 3 (2026-27) marks a decisive break from conventional learning. It signals not just a content shift, but a pedagogical revolution, from rote learning to personalised, data-driven education. The move holds immense promise but also raises profound questions on inclusivity, teacher readiness, and ethical adaptation.

Introduction

India’s AI-enabled education initiative, aligned with the National Education Policy (NEP) 2020, seeks to embed AI learning across the entire K-12 spectrum. The objective is to build a tech-savvy, future-ready workforce capable of thriving in a knowledge-driven global economy. However, as India gears up for this transformation, the focus extends beyond hardware and software, it includes teacher capacity-building, curriculum redesign, and equitable access to technology.

Why in the News

India will become one of the first major education systems globally to introduce AI at the school level. This move marks a sharp contrast to traditional “one-size-fits-all” models, where uniform pedagogy dominated classrooms.

The Ministry of Education’s pilot programs have already trained over 10,000 teachers since 2019, in collaboration with Intel, IBM, and premier national institutes. Yet, the scale of reform, covering over 9 million educators, poses a massive challenge. AI’s integration represents not only an educational reform but also a socio-economic turning point, redefining teacher roles, learning processes, and workforce readiness.

How is AI Transforming Teaching and Learning?

  1. Personalised Learning: AI-powered platforms analyse student behaviour, learning speed, and comprehension to design custom lessons, ensuring each learner’s unique needs are addressed.
  2. Enhanced Engagement: Adaptive systems use gamified interfaces and feedback loops to sustain learner attention and motivation.
  3. Human-AI Synergy: AI acts as an assistant, not a replacement, to educators, allowing teachers to focus on empathy, creativity, and conceptual depth.
  4. Real-Time Feedback: Automated assessment tools provide instant analytics on student performance, aiding teachers in timely interventions.

How Are Teachers Being Equipped for AI Education?

  1. Teacher Upskilling: Over 10,000 educators trained under pilot projects since 2019 by MoE in collaboration with Intel and IBM.
  2. Curriculum Integration: AI modules embedded within existing NEP frameworks from kindergarten to Class 12.
  3. Pedagogical Shift: Teachers transition from content delivery to concept facilitation, focusing on AI-driven planning, analytics, and adaptive mentoring.
  4. Challenge of Scale: India’s 9 million teachers require reskilling; success depends on effective outreach and digital readiness.

What Are the Opportunities and Disruptions Ahead?

  1. Employment Generation: AI adoption projected to create four million new jobs by 2030, with rising demand for digital adaptability.
  2. Skill Realignment: Emphasis on critical thinking, empathy, and creativity, complementing AI’s automation capabilities.
  3. Workforce Transition: AI-enabled education aims to prepare students for jobs that do not yet exist, requiring continuous learning.
  4. Economic Implication: According to NITI Aayog, AI could add up to two million jobs in India’s tech sector in the next decade

Does AI Ensure Inclusivity and Accessibility

  1. Breaking Barriers: AI tools help overcome language, disability, and learning challenges, enabling wider access.
  2. Customised Content: AI-powered language processing supports non-native speakers and visually impaired learners.
  3. Digital Divide Concern: Equal access to AI resources remains uneven, demanding policy interventions for infrastructure parity.
  4. Diversity Support: In a multilingual India, AI can act as a bridge between learners of different socio-linguistic backgrounds.

Could AI Become the Great Equaliser in Education?

  1. Equitable Opportunities: AI democratises learning by offering universal access to quality resources.
  2. Smart Governance: Data-driven insights help design evidence-based educational policies.
  3. Social Equity Impact: Reduces dependence on geography or school infrastructure, aligning with SDG 4 (Quality Education).
  4. Ethical Imperatives: Algorithmic fairness, data protection, and bias elimination remain essential for sustainable AI deployment.

Conclusion

AI’s integration into education represents a transformative leap rather than a linear reform. The focus must remain on teacher empowerment, inclusive infrastructure, and ethical governance to ensure the AI revolution benefits all. India’s model, if executed successfully, could emerge as a global benchmark for equitable, adaptive learning in the 21st century.

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Foreign Policy Watch: India-ASEAN

After ASEAN Summit: Group’s importance for India, amid US-China tussle

Explained | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

Introduction

ASEAN, established in 1967, comprises 11 countries, forming one of the world’s most successful regional organizations. With over 40-50% of global trade transiting through the region, ASEAN represents both an economic hub and a strategic pivot in the Indo-Pacific. The 2025 Summit reinforced ASEAN’s centrality amid a shifting balance of power between the US and China, while India emphasized trade cooperation and connectivity.

ASEAN’s Strategic Importance for India

  1. Geopolitical Significance: ASEAN lies at the heart of the Indo-Pacific, acting as a bridge between the Indian and Pacific Oceans.
  2. Economic Weight: ASEAN is India’s fourth-largest trading partner after the EU, US, and China.
  3. Strategic Leverage: Provides India a platform to balance China’s regional assertiveness and engage in multilateral security frameworks.
  4. Connectivity Corridor: India’s projects such as the India-Myanmar-Thailand Trilateral Highway and Kaladan Multimodal Project enhance physical and economic connectivity.
  5. Regional Integration: Strengthens India’s participation in regional supply chains, energy cooperation, and maritime trade.

How the US-China Rivalry Shapes ASEAN’s Role

  1. Regional Polarization: ASEAN faces pressure between the US-led security framework and China’s economic dominance.
  2. Maritime Disputes: The South China Sea remains a flashpoint due to overlapping territorial claims, especially involving the Philippines, Vietnam, and China.
  3. Security Realignment: The Philippines has taken an increasingly muscular stand, rejecting China’s claims under the 2016 Hague ruling.
  4. Economic Competition: While China drives trade and infrastructure investment, the US advances Indo-Pacific partnerships emphasizing rule-based order and open seas.
  5. Strategic Autonomy: ASEAN states attempt to maintain neutrality and avoid direct alignment with either power bloc.

India’s Engagement in the ASEAN Framework

  1. Act East Policy: Deepens trade, connectivity, and strategic cooperation in Southeast Asia.
  2. Trade Liberalization: India signed the India-ASEAN FTA in 2009, expanding goods trade and tariff concessions.
  3. Economic Challenges: India exited the RCEP (Regional Comprehensive Economic Partnership) over market access concerns but remains committed to ASEAN-based trade.
  4. High-Level Diplomacy: Prime Minister Narendra Modi reaffirmed ASEAN centrality in the Indo-Pacific vision and proposed renewed cooperation on connectivity and digital economy.
  5. Institutional Dialogue: India participates in ASEAN-led forums like EAS, ARF, and ADMM+, ensuring consistent engagement.

Lessons from ASEAN for Other Regional Grouping

  1. Institutional Continuity: ASEAN demonstrates sustained dialogue and incremental cooperation since 1967.
  2. Economic Integration: The ASEAN Free Trade Area (AFTA) and upcoming ASEAN-Australia-New Zealand FTA reflect progressive liberalization.
  3. Replicable Model: Regional blocs like SAARC, BIMSTEC, and BBIN can emulate ASEAN’s approach to consensus-building and functional cooperation.
  4. ASEAN Centrality Principle: Encourages issue-based cooperation despite internal diversity, offering lessons for South Asian regionalism.
  5. Leadership in Transition: Malaysia and Thailand’s evolving chairmanship roles underscore ASEAN’s adaptability in managing complex geopolitics.

Trade and Connectivity Imperative

  1. Physical Infrastructure: Projects such as Kaladan and Trilateral Highway facilitate India’s access to Southeast Asian markets.
  2. Digital and Maritime Corridors: Enhance India’s trade routes and logistical resilience against Chinese dominance.
  3. Supply Chain Diversification: Reduces dependence on China while integrating India with East Asian production networks.
  4. Economic Opportunities: ASEAN’s collective GDP of over $3 trillion presents scope for India’s pharmaceutical, IT, and engineering exports.
  5. Strategic Balancing: Economic linkages act as a counterweight to China’s Belt and Road Initiative (BRI).

Conclusion

ASEAN remains a cornerstone of India’s Indo-Pacific engagement, offering both strategic depth and economic opportunity. As the US-China competition intensifies, India’s sustained engagement, anchored in connectivity, trade, and institutional cooperation, can ensure regional stability, multipolar balance, and long-term strategic autonomy.

PYQ Relevance

[UPSC 2024] The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.

Linkage: The article aligns with this PYQ as it highlights ASEAN’s centrality in India’s Indo-Pacific outreach, where Delhi’s engagement acts as a counterbalance to China’s dominance. It reinforces the West’s strategy of integrating India within regional supply chains and strategic coalitions to diversify away from Chinese dependence.

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Modern Indian History-Events and Personalities

The debt we owe Sardar Patel

Explained | History | Mains Paper 1: Modern Indian History

Introduction

Sardar Vallabhbhai Patel, revered as the “Iron Man of India,” was the chief architect of India’s political integration post-Independence. Through his pragmatic diplomacy, courage, and commitment to national unity, he merged 565 princely states into the Indian Union. His ideals of discipline, inclusivity, and moral integrity remain vital for guiding modern India’s governance in the Amrit Kaal era.

Why in the News

Sardar Patel’s 150th birth anniversary reaffirms his unmatched contribution to the unification of India and democratic consolidation. As India enters Amrit Kaal, the period leading up to its centenary of independence, Patel’s legacy of decisive leadership and nation-first philosophy assumes renewed importance. The Statue of Unity, the world’s tallest statue, symbolically embodies his central role in India’s unity and governance ethos.

The Architect of India’s Political Integration

  1. Unification of Princely States: Integrated 565 princely states into the Indian Union post-1947 through negotiation, persuasion, and firm resolve.
  2. Operation Polo (1948): Directed the liberation of Hyderabad from the Nizam’s rule, ensuring integration without prolonged conflict.
  3. Diplomatic and Administrative Skill: Balanced firmness with negotiation, earning the title “Sardar” during the Kheda and Bardoli Satyagrahas.
  4. Vision of National Cohesion: Promoted unity through shared governance, nationalism, and the constitutional integration of diverse territories.

Leadership and Statesmanship Rooted in Inclusivity

  1. Gandhian Influence: Deeply aligned with Gandhi’s ideals of service and integrity, yet maintained independence in judgment.
  2. Integrity in Politics: Declined to contest for the Prime Minister’s post in 1946, respecting Gandhi’s preference for Nehru, a testament to selflessness and discipline.
  3. Ethical Governance: Emphasized humility and restraint as hallmarks of political leadership.
  4. Moral Foundation of Statecraft: Advocated that governance must be rooted in moral strength and national interest rather than personal ambition.

Builder of Administrative and Institutional India

  1. Institutional Foundation: Strengthened civil services, describing the IAS as India’s “steel frame.”
  2. Administrative Vision: Advocated efficiency, accountability, and discipline in the bureaucracy.
  3. Law and Order Consolidation: Ensured stability and continuity during India’s transition from colonial rule to independence.
  4. Economic Realism: Supported pragmatic economic planning rooted in agricultural and industrial development.

Patel’s Relevance in Amrit Kaal

  1. Unity in Diversity: His inclusive nationalism aligns with current goals of cooperative federalism and social harmony.
  2. Decisive Governance: Embodies the need for strong yet empathetic leadership amid complex socio-political challenges.
  3. Internal Security and Integration: Symbolic for managing contemporary issues in Kashmir, Northeast, and border regions.
  4. Vision for Developmental Democracy: His emphasis on grassroots governance resonates with present Panchayati Raj and Digital India initiatives.

Enduring Legacy and National Reverence

  1. Statue of Unity: The 182-metre statue at Kevadia, Gujarat, commemorates his role in shaping independent India.
  2. National Recognition: October 31 is celebrated as “Rashtriya Ekta Diwas” to honour his vision of unity.
  3. Guiding Spirit for Youth: Inspires leadership anchored in discipline, patriotism, and service over power.

Conclusion

Sardar Patel’s leadership exemplified firmness with fairness, strength with compassion, and vision with humility. As India advances through Amrit Kaal, his model of inclusive nationalism, institutional integrity, and unwavering unity must serve as the nation’s guiding ethos.

PYQ Relevance

[UPSC 2022] The political and administrative reorganization of states and territories has been a continuous ongoing process since the mid-nineteenth century. Discuss with examples.

Linkage: This theme echoes Sardar Patel’s foundational role in integrating 565 princely states and shaping India’s federal structure post-1947. His efforts mark the starting point of India’s political reorganization, continued through later phases of state formation and administrative realignment.

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Wildlife Conservation Efforts

Nauradehi WLS to become 3rd home for Cheetahs in Madhya Pradesh

Places in news | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

Why in the News?

Madhya Pradesh CM has announced that Nauradehi Wildlife Sanctuary will soon become the third home for cheetahs in the State, after Kuno National Park and Gandhi Sagar Sanctuary.

About Nauradehi Wildlife Sanctuary:

  • Overview: Largest wildlife sanctuary in Madhya Pradesh, covering 1,197 sq km across Sagar, Damoh, and Narsinghpur districts; located between the Narmada and Ganga river basins, forming a key ecological transition zone.
  • Establishment: Declared in 1975 to conserve the Indian wolf (Canis lupus pallipes), the flagship species. Habitat includes dry deciduous forests, scrublands, and grasslands supporting leopard, sloth bear, blackbuck, nilgai, chital, and hyena populations.
  • Upgradation (2024): Elevated to a Tiger Reserve to strengthen protection and become eligible for Project Cheetah under the National Tiger Conservation Authority (NTCA).
  • Connectivity: Linked with Panna Tiger Reserve and Satpura Tiger Reserve through the Nauradehi–Panna corridor, ensuring gene flow across Central India’s forest landscapes.
  • Habitat Characteristics: Open woodlands, scrub forests, and wide grass patches with undulating terrain ideal for high-speed pursuit predators like cheetahs.
  • Prey Base: Rich in blackbuck (Antilope cervicapra), chital (Axis axis), nilgai (Boselaphus tragocamelus), and wild boar.
  • Environmental Setting: Moderate rainfall, tributaries of the Narmada River, and dry tropical climate create a balanced hydrological regime.
  • Scientific Endorsement: Recognised by Wildlife Institute of India (WII) and NTCA as among India’s most feasible future cheetah habitats.

Nauradehi WLS to become 3rd home for Cheetahs in Madhya Pradesh

Cheetahs and their Reintroduction in India:

  • Overview: The cheetah (Acinonyx jubatus) is the world’s fastest land mammal (80–128 km/h). Two subspecies: African cheetah (A.j. jubatus) across Africa and Asiatic cheetah (A.j. venaticus) confined to Iran (< 30 individuals).
  • Conservation Status: Asiatic subspecies Critically Endangered by the IUCN; global population ≈ 6,500 mature individuals.
  • Extinction in India: Last recorded in Koriya (Chhattisgarh) in 1947; officially declared extinct in 1952 due to hunting and grassland degradation.
  • Project Cheetah (2022): Implemented by Ministry of Environment, Forest and Climate Change (MoEFCC) and NTCA with WII support; aims to restore cheetahs in India’s grasslands and revive lost ecological roles.
  • Translocation Phases: Eight cheetahs from Namibia (Sept 2022) and twelve from South Africa (Feb 2023) released at Kuno National Park (Madhya Pradesh).
  • Meta-Population Plan: To establish a connected population across Kuno, Gandhi Sagar, Nauradehi, and Mukundra Hills (Rajasthan) ensuring genetic diversity and landscape-level connectivity.
  • Long-Term Goal: Create a self-sustaining population of 35–40 individuals within 15 years through science-based, landscape-driven restoration.
  • Current Phase: Majority under semi-captive adaptation at Kuno; expansion to Nauradehi and Gandhi Sagar Tiger Reserves planned to reduce crowding and enhance resilience.

 

[UPSC 2012] Consider the following:
1. Black-necked crane 2. Cheetah 3. Flying squirrel 4. Snow leopardWhich of the above are naturally found in India?(a) 1, 2 and 3 only

(b) 1, 3 and 4 only*

(c) 2 and 4 only

(d) 1, 2, 3 and 4

 

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

[pib] Integrated Cold Chain and Value Addition Infrastructure (ICCVAI)

Schemes | Agriculture | Mains Paper 3: Agriculture and related issues

Why in the News?

The Union Cabinet has approved an enhanced outlay of ₹6,520 crore for the Pradhan Mantri Kisan Sampada Yojana (PMKSY), including ₹1,000 crore earmarked for 50 irradiation units under the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) Scheme.

About the Integrated Cold Chain and Value Addition Infrastructure (ICCVAI) Scheme:

  • Objective: To build an end-to-end cold chain and value addition system from farm gate to consumer, ensuring unbroken preservation, reduced losses, and fair returns to farmers.
  • Overview: A Central Sector Scheme under the Ministry of Food Processing Industries (MoFPI), implemented as a component of the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
  • Coverage: Focuses on non-horticultural produce, dairy, meat, poultry, and marine fish, while fruits, vegetables, and shrimp fall under Operation Greens.
  • Goal: Minimise post-harvest wastage, promote value addition, and provide year-round food availability through modern cold chain infrastructure.
  • Participation: Open to farmers, FPOs/FPCs, cooperatives, SHGs, NGOs, companies, and PSUs on a demand-driven basis.

Details of the ICCVAI Scheme:

  • Objectives: Develop pre-cooling, cold storage, processing, and refrigerated transport; strengthen farmer–market linkages; promote modern technologies like irradiation and renewable energy; and enhance food safety and shelf life.
  • Infrastructure Components:
    • Farm-Level Infrastructure (FLI): Pre-cooling, grading, packaging near production zones.
    • Processing Centres: Multi-product processing and testing units.
    • Distribution Hubs: Multi-temperature storage for aggregation and retail dispatch.
    • Refrigerated Transport: Reefer vans and mobile tankers for seamless cold logistics.
    • Irradiation Units: For sterilisation and shelf-life extension via ionising radiation.
  • Financial Assistance:
    • 35% of project cost in general areas; 50% in difficult areas (NE, hill states, islands, ITDP regions) or for SC/ST/FPO/SHG entities.
    • Grant cap: ₹ 10 crore per project, released in three instalments.
    • 2025 Update: Union Cabinet raised PMKSY’s total outlay to ₹6,520 crore, with ₹1,000 crore for 50 irradiation units under ICCVAI.
  • Eligibility Conditions: Applicants must have net worth ≥ 1.5× the grant (general areas) or equal to the grant (special areas). Each project must integrate Farm-Level Infrastructure with a Distribution Hub and/or refrigerated transport.
  • Implementation Progress:
    • 395 projects approved, 291 operational.
    • Created 25.52 LMT preservation capacity and 114.66 LMT processing capacity.
    • Generated 1.74 lakh jobs nationwide.

Complementary Government Initiatives:

  • Mission for Integrated Development of Horticulture (MIDH): Credit-linked subsidy for cold storages up to 5,000 MT.
  • National Horticulture Board (NHB): Promotes Controlled Atmosphere (CA) storages for horticulture.
  • Operation Greens (PMKSY):  Stabilises supply chains for fruits, vegetables, and shrimp.
  • Agriculture Infrastructure Fund (AIF): 3% interest subvention on loans up to ₹2 crore for cold chain and processing units.
  • National Centre for Cold-chain Development (NCCD): Think tank for standards, training, and best practices in cold logistics.
[UPSC 2024] With reference to the sectors of the Indian economy, consider the following pairs: Economic activity Sector

1. Storage of agricultural produce Secondary

2. Dairy farm Primary

3. Mineral exploration Tertiary

4. Weaving cloth Secondary

How many of the pairs given above are correctly matched?

Options: (a) Only one pair (b) Only two pairs* (c) Only three (d) All four

 

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Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

Kunming Biodiversity Fund (KBF)

Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

Why in the News?

In October 2025, seven countries, Cook Islands, Madagascar, Mexico, Nepal, Sri Lanka, Turkey, and Uganda, secured $5.8 million in grants from the Kunming Biodiversity Fund (KBF) to promote nature-friendly agriculture.

What is Kunming Biodiversity Fund (KBF)?

  • Objective: To assist developing nations in implementing the Kunming–Montreal Global Biodiversity Framework (KMGBF), aimed at halting biodiversity loss by 2030 and restoring ecosystems by 2050.
  • Overview: Established in 2021 during Part 1 of COP-15 at Kunming, China, under China’s presidency of the UN Convention on Biological Diversity (CBD).
  • Initial Contribution: China pledged 1.5 billion yuan (~USD 200 million) as seed funding.
  • Administration: Managed by China’s Ministry of Ecology & Environment, UN Environment Programme (UNEP), and the CBD Secretariat; functions as a Multi-Partner Trust Fund with UNDP and others.
  • Focus Areas:
    • Support for National Biodiversity Strategies and Action Plans (NBSAPs).
    • Ecosystem restoration, invasive-species control, and sustainable agriculture.
    • Empowerment of Indigenous Peoples and local communities in conservation.
  • 2025 Allocation: Released USD 5.8 million via FAO to Cook Islands, Madagascar, Mexico, Nepal, Sri Lanka, Türkiye, and Uganda for biodiversity-linked agriculture and resilience projects.
  • Alignment: Advances KMGBF Target 19 (mobilising USD 200 billion per year by 2030) and helps bridge the USD 700 billion annual global biodiversity finance gap.
  • Global Significance: Serves as a cornerstone of biodiversity finance, complementing the GEF, Green Climate Fund, and Cali Fund (2025) to mobilise global conservation resources.

India and the KBF:

  • Funding Status: As of 2025, India has not yet received direct KBF funding but remains eligible as a biodiversity-rich developing country and active CBD Party.
  • National Alignment: India’s National Biodiversity Action Plan (NBAP), National Biodiversity Mission, and Green India Mission align with KBF priorities, especially ecosystem restoration, biodiversity mainstreaming, and community participation.
[UPSC 2023] Consider the following statements:

1. In India, the Biodiversity Management Committees are key to the realization of the objectives of the Nagoya Protocol.

2. The Biodiversity Management Committees have important functions in determining acces and benefit sharing, including the power to levy collection fees on the access of biological resources within its jurisdiction.

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

Revisions in the Consumer Price Index (CPI)

Prelims Only | Economics | Mains Paper 3: Inclusive Growth & Issues

Why in the News?

The Ministry of Statistics and Programme Implementation (MoSPI) has proposed major revisions in the Consumer Price Index (CPI) methodology, to be implemented in the new retail inflation series from February 2026.

About the Consumer Price Index (CPI):

  • Overview: The CPI measures the average change over time in the prices paid by consumers for a fixed basket of goods and services typically consumed by households.
  • Purpose: It tracks retail inflation showing how the purchasing power of money changes due to price variations, and how living costs evolve across different population groups.
  • Components:
    • Food and Beverages: Cereals, pulses, vegetables, milk, meat, fish, sugar, and beverages.
    • Housing: Rent paid for rented houses and imputed rent for self-occupied dwellings.
    • Clothing and Footwear: Garments, textiles, footwear, and related goods.
    • Fuel and Light: LPG, kerosene, electricity, firewood, and other fuels.
    • Miscellaneous: Transport, communication, education, health, recreation, personal care, and other services.
  • Publishing Authority: The CPI is compiled and released by the Ministry of Statistics and Programme Implementation (MoSPI) through the National Statistical Office (NSO) every month.
  • Current Base Year: 2012, which is being revised to 2024 to reflect more recent household consumption patterns captured in the Household Consumption Expenditure Survey (HCES) 2023–24.
  • Coverage: Separate indices are compiled for Rural, Urban, and Combined (Rural + Urban) sectors to reflect diverse consumption and price patterns.
  • Types of CPI in India:
    1. CPI for Industrial Workers (CPI-IW): Base year 2016; tracks inflation for organized industrial workers; used for Dearness Allowance (DA) revisions.
    2. CPI for Agricultural Labourers (CPI-AL): Base year 1986–87; measures price changes faced by agricultural labourers.
    3. CPI for Rural Labourers (CPI-RL): Base year 1986–87; monitors inflation for rural households dependent on wage labour.
    4. CPI (Urban), CPI (Rural), and CPI (Combined): Base year 2012; represents national-level retail inflation and is the official measure of inflation in India.
  • Weightage: The relative importance (weight) of each component reflects its share in total household expenditure, for instance, food and beverages hold over 45%, while housing has 21.67% in urban CPI and 10.07% in all-India CPI.
  • Use and Importance:
    • Inflation Targeting: The Reserve Bank of India (RBI) uses CPI as the anchor for its Monetary Policy Framework, aiming for 4% ± 2% inflation.
    • Wage & Pension Adjustments: CPI is used to revise wages, pensions, and dearness allowances in both government and industrial sectors.
    • Policy Planning: It provides essential inputs for economic policy, poverty analysis, and fiscal decisions.
    • Economic Indicator: Serves as the primary indicator of cost of living, influencing interest rate decisions, tax indexation, and social welfare adjustments.

Revisions in the Consumer Price Index (CPI)

Revisions in the CPI:

  • Monthly Rent Data: Collection every month for both rural & urban areas, replacing earlier six-monthly urban series.
  • Inclusion of Rural Housing: Covers imputed rents for owner-occupied rural dwellings.
  • Exclusion of Employer Housing: Removes HRA-based distortions from government/PSU quarters.
  • Expanded Sampling & IMF Alignment: Broader coverage, discontinuation of panel imputation, adoption of IMF-recommended rent index computation.
  • Weight Revision: Recalibrates housing share (currently 21.67 % urban; 10.07 % all-India) using new expenditure data.
  • Transparency: MoSPI discussion papers (2024-25) invite feedback on PDS treatment, housing index, and base methodology.

Rationale & Impact:

  • Captures Post-Pandemic Rent Surge overlooked by the 2012 base.
  • Addresses Rural Under-coverage for two-thirds of India’s population.
  • Enhances RBI’s Inflation Targeting through more accurate rent data.
  • Aligns with Global Standards, strengthening CPI’s credibility as a comprehensive welfare and policy indicator.
[UPSC 2020] Consider the following statements:
1. The weightage of food in Consumer Price Index (CPI) is higher than that Wholesale Price Index (WPI).
2. The WPI does not capture changes in the prices of services, which CPI does.
3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates.
Which of the statements given above is/are correct?
Options: (a) 1 and 2 only* (b) 2 only (c) 3 only (d) 1, 2 and 3

 

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GI(Geographical Indicator) Tags

[pib] GI Tagged Indi and Puliyankudi Limes 

Prelims Only | Economics | Mains Paper 3: Intellectual Property Rights

Why in the News?

The Agricultural and Processed Food Products Export Development Authority (APEDA), under the Ministry of Commerce and Industry, has facilitated India’s first air export of GI-tagged Indi Lime and Puliyankudi Lime to the UK.

[pib] GI Tagged Indi and Puliyankudi Limes 

About Indi Lime:

  • Origin: Cultivated predominantly in Vijayapura district, Karnataka.
  • GI Tag: Granted in 2023, becoming India’s second lime variety to obtain a GI certification after the Assam Lemon.
  • Characteristics:
    • Renowned for its zesty aroma, balanced acidity, high juice yield, and thin rind.
    • Possesses a distinctive tangy-sweet flavor and rich oil content that enhances its culinary and medicinal appeal.
  • Cultivation Conditions:
    • Thrives in semi-arid climates and black cotton soils of northern Karnataka.
    • Largely cultivated using traditional, organic farming practices.
  • Economic Importance:
    • Vijayapura district contributes around 58% of Karnataka’s total lime production.
    • Widely used in food, traditional medicine, and cultural practices, reflecting the region’s agricultural heritage.

About Puliyankudi Lime:

  • Origin: Cultivated in Puliyankudi (Tenkasi district), Tamil Nadu, often termed the “Lemon City of Tamil Nadu.”
  • GI Tag: Officially registered in April 2025.
  • Characteristics:
    • The Kadayam variety is noted for its thin peel, strong acidity, high juice content (~55%), and ascorbic acid levels (34.3 mg/100g).
    • Exhibits an intense aroma and distinct tanginess, making it highly prized in both domestic and international markets.
  • Cultivation Conditions:
    • Grown in red loamy soils under tropical climatic conditions, maintaining traditional horticultural methods.
  • Significance: A rich source of vitamin C and antioxidants, supporting immunity, digestion, and metabolic health.
[UPSC 2015] Which of the following has/have been accorded ‘Geographical Indication’ status?

1. Banaras Brocades and Sarees 2. Rajasthani Daal-Bati-Churma 3. Tirupathi Laddu

Select the correct answer using the code given below.

Options: (a) 1 only (b) 2 and 3 only (c) 1 and 3 only* (d) 1, 2 and 3

 

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