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RBI Notifications

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

op-ed snap | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth,Indian Economy
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.

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G20 : Economic Cooperation ahead

Return of the G2: Trump, China and the mirage of a bipolar world

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

INTRODUCTION

The reference to a “G2” resurfaced when US President Trump publicly announced that “The G2 will be convening shortly,” signalling a possible US-China duopoly in global decision-making. The Trump-Xi Busan meeting revived an older idea first articulated by economist C. Fred Bergsten in 2005. However, despite dramatic optics, the summit lacked institutional depth and showcased a transactional, spectacle-driven diplomatic approach. The renewed G2 talk generated global unease, especially among allies and emerging economies, given the risks of marginalisation and disruption of regional balances in the Indo-Pacific.

WHY IN THE NEWS 

Trump’s declaration that the US and China would meet as a “G2” revived the idea of a US-China duopoly at a moment of systemic geopolitical flux. The Busan meeting created significant global debate because, despite high-profile optics and selective trade concessions (soybean purchases, tariff relief, fentanyl cooperation), there were no structural commitments or conflict-management mechanisms. The sudden bypassing of broader multilateral processes unsettled allies and intensified concerns of shrinking strategic space for countries like India, especially amid shifting economic projections that show a long-term move toward a tripolar world rather than a bipolar G2.

G2 Revival: What Does the Busan Moment Signify?

  1. Performative Diplomacy: Trump framed the meeting as a G2 encounter, signalling a claim to architect a new global order driven by bilateral spectacle rather than institutional negotiations.
  2. Transactional Bargains: China resumed US soybean imports; the US eased select tariffs and technology restrictions; cooperation was pledged on fentanyl precursors and rare-earth supply chains.
  3. Absence of Structure: No new institutions, principles, or crisis-management mechanisms were created, making the meeting high on optics but low on structural impact.

China’s Strategic Calculus Behind the G2 Optics

  1. Symbolic Parity: Great-power parity aligns with China’s long-term ambition for equal status with the US, enhancing its global narrative.
  2. Economic Off-ramp: Tariff relief and tech flexibility help stabilise China’s domestic economy amid headwinds such as overcapacity and slowing productivity.
  3. Controlled Ambiguity: China avoided endorsing a formal duopoly, using strategic ambiguity to retain flexibility while cultivating Global South networks.

Structural Fragility of a US-China Duopoly

  1. Deep Bilateral Contradictions: Taiwan, technology dependence, and military rivalry create structural barriers to stable cooperation.
  2. Lack of Institutional Grounding: No formal mechanisms exist to manage disputes or align long-term strategic objectives.
  3. Risk to Alliances: The G2 idea signals that alliances are expendable, undermining confidence among US partners in Asia and Europe.

Global Implications of the G2 Notion

  1. Destabilising for Allies: Japan, South Korea, Australia fear erosion of regional balance if the US deprioritises alliances.
  2. Institutional Marginalisation: G2 bypasses multilateral institutions, weakening global governance frameworks.
  3. Supply-Chain Reconfiguration: A US-China bilateral alignment could redirect global supply chains, adversely affecting Indo-Pacific economies.

Why the G2 Idea Alarms India

  1. Risk of Strategic Sidelining: A bilateral shortcut between the US and China may marginalise India despite its rising economic weight.
  2. Supply Chain Dependence: India’s dependence on Chinese imports (electronics, APIs, critical minerals) becomes more vulnerable.
  3. Quad Uncertainty: A possible thaw between the US and China creates ambiguity around the Indo-Pacific strategy and Quad commitments.
  4. Manufacturing Disadvantage: Reduced US pressure on China undercuts India’s ambition to position itself as a credible alternative manufacturing hub.

Long-term Trend: A Tripolar, Not Bipolar, World

  1. Economic Projections: PwC and Goldman Sachs project by 2050 a tripolar structure: China (1st), India (2nd), US (3rd) in PPP terms.
  2. Limits on China’s Rise: Demographic contraction and industrial overcapacity constrain China’s long-term dominance.
  3. India’s Structural Advantages: Young workforce, expanding market, tech ambitions support India’s rise as a major economic pole.
  4. US Position: Innovation strength persists, but political polarisation and ageing demographics slow future growth.

CONCLUSION

Trump’s revival of the G2 is more spectacle than substance, reflecting a transitional phase rather than a durable geopolitical redesign. Structural contradictions, alliance concerns, and global economic shifts limit the feasibility of a US-China duopoly. The long-term trajectory points to broader multipolarity, with India emerging as a critical pole in global politics. The Busan moment thus underscores the instability of great-power bargains that bypass wider global participation and institutional frameworks.

PYQ Relevance

[UPSC 2021] “The USA is facing an existential threat in the form of China, that is much more challenging than the erstwhile Soviet Union.” Explain.

Linkage: The PYQ statement directly connects to intensifying US-China strategic rivalry, which shapes the global balance of power, technology races, and Indo-Pacific security dynamics. It is highly relevant for GS-II (IR) as it influences India’s strategic space, Quad calculus, supply-chain realignments, and the emerging multipolar world order.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

How Delhi’s air quality monitors work and why their readings can falter

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

INTRODUCTION

Delhi operates a dense network of 40 Continuous Ambient Air Quality Monitoring Stations (CAAQMS) that serve as automated laboratories tracking eight key pollutants. These stations guide the daily AQI, enable pollution-control measures and emergency responses, and form the backbone of environmental governance. However, recent judicial scrutiny and scientific studies highlight significant gaps in equipment suitability, calibration, meteorological sensitivity, and data reliability, creating a critical governance challenge.

WHY IN THE NEWS 

The Supreme Court recently demanded clarity on whether Delhi’s air-quality monitoring equipment is suited to city-specific pollution and meteorological conditions. This scrutiny is significant because Delhi heavily depends on AQI data for health advisories and regulatory actions, yet multiple stations fail to generate adequate, validated data on many days. A CAG report and recent scientific studies show systematic errors, including 30-40% overestimation of PM2.5 under high humidity, raising concerns about the credibility of pollution data itself.

How Delhi’s Air Quality Monitoring System Functions

  1. CAAQMS Network: Operates 40 automated, temperature-controlled stations functioning as compact laboratories across different city zones.
  2. Regulatory Basis: Functions under CPCB’s 2012 guidelines, which define calibration steps, quality-control procedures, and uniform monitoring standards.
  3. Pollutant Coverage: Tracks eight pollutants, PM2.5, PM10, NO₂, SO₂, CO, O₃, NH₃, Pb, ensuring representative citywide measurement.
  4. Instrumentation Setup: Stations contain racks of analysers, pumps, and data loggers, with sampling inlets mounted on masts above the roof to capture ambient air.

How Pollutants Are Measured Inside the Stations

  1. Beta Attenuation Monitors (BAM): Use beta ray attenuation to measure particulate concentration by assessing signal weakening through collected particulate mass.
  2. Gaseous Pollutant Monitors: Use optical and chemiluminescent methods, depending on pollutant type, to detect gas behaviour under specific wavelengths.
  3. National Standards: Measurements follow NAAQS procedures, including “gravimetric, wet-chemical and automatic instrument-based techniques” ensuring comparable data across India.

Factors That Distort or Corrupt Monitoring Readings

  1. Equipment Performance: AQI depends on validated data; CPCB requires 16 hours of reliable data per day for at least three pollutants, including PM2.5 or PM10.
  2. System Failures: Calibration lapses, power outages, and extreme weather cause routine station downtime.
  3. CAG Findings: A report tabled in Parliament revealed several stations failed to generate adequate, valid, real-time data, especially for pollutants like lead, Ammonia, etc.
  4. Location-Based Distortions: Stations placed near buildings, trees, or exhaust vents risk skewed results due to poor dispersion.
  5. Meteorological Disruptions: Severe weather disrupts data transmission, reducing continuity in real-time updates.

What Scientific Studies Reveal About Measurement Accuracy

  1. Variability with Humidity: CSIR–NPL’s 2021 analysis showed PM2.5 measurements vary with RH, particle mass loading, boundary layer height, and ventilation effects.
  2. Overestimation Threshold: When RH > 60%, BAM monitors exhibited 30-40% overestimation of PM2.5 because water absorption artificially increases mass signal attenuation.
  3. High-Pollution Episodes: Dust-heavy conditions can cause a factor up to 5 underestimation, as heavy loading disturbs air beam pathways.
  4. USEPA Insights: Notes that “high filter loading can lead to flow perturbations,” and “excessive particulate accumulation” disrupts instrument stability.
  5. Recommended Corrections: Scientists recommend site-specific correction factors, which were shown to reduce overestimation errors from 46% to under 2%.

Why This Issue Matters for Governance and Public Health

  1. Policy Dependence on Data: Emergency actions (GRAP stages, school closures, construction bans) rely on AQI accuracy.
  2. Public Health Impact: Misreporting distorts exposure assessments, health risk communication, and hospital preparedness.
  3. Environmental Justice: Vulnerable groups (elderly, children, labourers) depend on reliable alerts for safe mobility.
  4. Accountability: Data reliability determines CPCB, DPCC and state-level regulatory performance.

CONCLUSION

Delhi’s air pollution management depends critically on trustworthy, scientifically robust, and well-maintained monitoring infrastructure. While the city has one of India’s largest automatic monitoring networks, recent judicial scrutiny and scientific findings reveal persistent calibration errors, equipment inconsistencies, and meteorological vulnerabilities. Ensuring accuracy requires standardised maintenance, site-specific correction factors, stronger institutional oversight, and resilient instrumentation capable of performing reliably under Delhi’s complex pollution environment.

PYQ Relevance

[UPSC 2021] Describe the key points of the revised Global Air Quality Guidelines (AQGs) released by WHO (2021). How are these different from the 2005 update? What changes in India’s National Clean Air Programme are required to achieve these standards?

Linkage: The question links directly to GS-III themes of environmental pollution, health-based standards, and regulatory capacity. It is highly relevant as India’s NCAP, NAAQS and AQI-based governance must realign with WHO’s stricter 2021 guidelines to ensure credible monitoring, policy effectiveness, and public health protection.

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Bastar Olympics

Prelims Only | Trivia | Mains Paper 3: External State & Non-State Actors: Challenges To Internal Security.

Why in the news? 

  • The Bastar Olympics is a government-led sporting initiative in Chhattisgarh’s Bastar region, an area historically affected by Left-Wing Extremism (LWE).
  • It has become a symbol of normalisation, trust-building, and socio-cultural revival as Maoist influence recedes.

What are the Bastar Olympics?

  • A regional multi-sport event launched by the Chhattisgarh government.
  • Conducted across all 7 districts of the Bastar region:
    • Bastar, Dantewada, Kanker, Kondagaon, Narayanpur, Sukma, Bijapur.
  • Includes 11 sports:
     Archery, Kabaddi, Athletics, Badminton, Football, Hockey, Karate, Weightlifting, Kho-Kho, Volleyball, Tug-of-war.
Prelims-Relevant Themes Emerging

  • Internal Security: Platform for reducing alienation in LWE regions.
  • Social Issues: Women’s participation & empowerment.
  • Tribal Affairs: Inclusion of PVTGs, revival of cultural identity.
  • Governance: Last-mile delivery and state presence in remote areas.
  • Sports & Youth: Identification of rural sporting talent.
Consider the following statements about Particularly Vulnerable Tribal Groups (PVTGs) in India: 

1. PVTGs reside in 18 States and one Union Territory. 

2. A stagnant or declining population is one of the criteria for determining PVTG status. 

3. There are 95 PVTGs officially notified in the country so far. 

4. Irular and Konda Reddi tribes are included in the list of PVTGs. 

Which of the statements given above are correct? 

(a) 1, 2 and 3 

(b) 2, 3 and 4 

(c) 1, 2 and 4 

(d) 1, 3 and 4

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

Ningaloo Reef Mass Coral Mortality 

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

Why in the News?

A new survey in 2025 shows that nearly 70% of corals in Australia’s UNESCO World Heritage–listed Ningaloo Reef have died due to the most intense and prolonged marine heatwave on record.

About Ningaloo Reef  

  • Located in Western Australia.
  • A UNESCO World Heritage Site.
  • One of the largest fringing reefs in the world (~260 km long).
  • Important for marine biodiversity, supporting whale sharks, turtles, reef sharks, and diverse coral species.

Extent of Coral Mortality

  • ~70% mortality recorded in latest survey.
  • In eight northern lagoon sites (Osprey → Tantabiddi Sanctuary Zones), mortality >60%.
  • Of 1,600+ corals assessed in March, only ~600 survived by October.

Species Impact

  • Highly Affected (Dominant Species Lost)

      • Staghorn corals: Acropora tenuis, Acropora millepora and Acropora spicifera
      • Thin birdsnest coral (Seriatopora hystrix).

  • Relatively Resilient

    • Veron’s tube coral (Echinopora ashmorensis)
    • Lesser knob coral (Cyphastrea microphthalma)
  • Structural decline:
    • Dead corals now overgrown by sponges, turf algae, reducing reef stability & biodiversity.

Broader Ecological Significance

  • Coral reefs support ~1/3 of global marine species.
  • Mass mortality compromises: Fish breeding grounds, Shelter for marine organisms, Coastal protection and Tourism & local economies.

Widespread Global Coral Stress

According to the United States National Oceanic and Atmospheric Administration (NOAA):

  • 84.4% of the world’s reef areas experienced bleaching-level heat stress (Jan 2023–Sept 2025).
  • Mass bleaching in 83+ countries.
  • Marine heatwaves in 2023 lasted 4× longer than the long-term average and affected 96% of the world’s oceans.
The scientific view is that the increase in global temperature should not exceed 2 ∘ C above pre-industrial level. If the global temperature increases beyond 3 ∘ C above the pre-industrial level, what can be its possible impact/impacts on the world? 

1. Terrestrial biosphere tends toward a net carbon source. 

2. Widespread coral mortality will occur. 

3. All the global wetlands will permanently disappear. 

4. Cultivation of cereals will not be possible anywhere in the world. 

Select the correct answer using the code given below: 

(a) 1 only (b) 1 and 2 only (c) 2, 3 and 4 only (d) 1, 2, 3 and 4 only

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Operation Pawan  

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

Why in the News?

  • For the first time, the Chief of Army Staff (COAS) General Upendra Dwivedi paid homage at the National War Memorial to soldiers who died during Operation Pawan (1987–1990).
  • Event held on 25 November 2025.

What was Operation Pawan?

  • A major military operation launched by the Indian Peace Keeping Force (IPKF) in Sri Lanka.
  • Objective: Disarm the LTTE under the Indo–Sri Lanka Accord (1987).
  • Duration: October 1987 – 1990.

Background

  • Under the Indo–Sri Lanka Peace Accord (July 1987):
    • India agreed to deploy IPKF to enforce peace in Northern & Eastern Sri Lanka.
    • The LTTE initially agreed to surrender weapons but soon reneged.

Casualties in Operation

  • Hundreds of Indian soldiers killed, and over 1,000 injured.
  • One of India’s largest overseas military operations.

National War Memorial

  • Location: New Delhi, near India Gate.
  • Dedicated to soldiers of post-Independence operations including:
    • 1947–48, 1962, 1965, 1971 wars
    • Kargil 1999
    • IPKF operations, and counter-insurgency missions.

Importance of the IPKF Mission 

  • First large-scale out-of-country deployment of Indian forces.
  • Political and military complexities:
    • Fighting LTTE, once seen sympathetically by India.
    • Hostile terrain and guerrilla warfare challenges.
Operations undertaken by the Army towards upliftment of the local population in remote areas to include addressing of their basic needs is called:  (2024)

(a) Operation Sankalp 

(b) Operation Maitri 

(c) Operation Sadbhavana 

(d) Operation Madad

This question is highly relevant as it tests the specific format of knowledge required for Operation Pawan (the name and mission of a defence action).

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Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

Sleep Apnea & Parkinson’s Disease 

Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

Why in the News?

  • A new study published in JAMA Neurology (Nov 24, 2025) found that untreated Obstructive Sleep Apnea (OSA) can nearly double the risk of developing Parkinson’s disease.
  • The study analysed 11 million+ U.S. military veterans’ medical records (1999–2022).
  • Use of CPAP (Continuous Positive Airway Pressure) significantly reduces the elevated risk, making sleep quality a potential neuroprotective factor.

Key Findings

  • Untreated OSA → ~2× higher likelihood of developing Parkinson’s.
  • CPAP therapy helps maintain oxygen levels → reduces neurodegeneration risk.
  • Repeated oxygen drops during sleep may lead to long-term neuronal stress.
  • Parkinson’s disease risk increases naturally with age, especially >60 years, but untreated OSA further elevates vulnerability.

About Parkinson’s Disease 

  • A progressive neurodegenerative disorder affecting movement.
  • Caused by loss of dopaminergic neurons in the substantia nigra.
  • Symptoms: tremors, rigidity, bradykinesia, cognitive decline (late stages).
  • No cure; treatments focus on symptom management.

Prelims Pointers

  • New association identified: OSA ↔ Parkinson’s disease risk.
  • Published in JAMA Neurology.
  • Largest dataset used for this linkage: 11 million veterans.
  • CPAP is not just a sleep device—it may offer neuroprotection.
  • Chronic intermittent hypoxia implicated in neurodegeneration.
Excessive release of the pollutant carbon monoxide (CO) into the air may produce a condition in which oxygen supply in the human body decreases. What causes this condition? (2010)

(a) When inhaled into the human body CO is converted into CO2 

(b) The inhaled CO has much higher affinity for haemoglobin as compared to oxygen 

(c) The inhaled CO destroys the chemical structure of haemoglobin 

(d) The inhaled CO adversely affects the respiratory centre in the brain

This PYQ is chosen because the core pathological connection linking Sleep Apnea and Parkinson’s disease is the concept of chronic oxygen deprivation (Hypoxia) and its neurodegenerative impact.

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Forest Conservation Efforts – NFP, Western Ghats, etc.

Aravalli Hills: 90% Lose Protection, FSI Red-Flag Ignored

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

Why in the News?

  • On 20 Nov 2025, the Supreme Court approved the government’s definition of Aravalli Hills as any hill 100 m or higher above local ground.
  • Problem: This definition excludes 90% of Aravalli hills, making them open for mining and construction.

Background

  • The Aravalli Range runs from Delhi to Gujarat through Haryana and Rajasthan.
  • It is oldest fold mountains in India and plays a key role in ecology, dust control, groundwater, and wildlife corridors.
  • In 2024, the SC asked the government to create a uniform Aravalli definition.

FSI’s Warning

  • Lower hills (20–100 m) act as natural windbreaks, blocking sand and dust from Thar desert.
  • Removing protection risks:

    • Higher air pollution in NCR
    • Loss of wildlife corridors
    • Impact on agriculture and farmer livelihoods
If there were no Himalayan ranges, what would have been the most likely geographical impact on India? (2010)

1. Much of the country would experience the cold waves from Siberia. 

2. Indo-gangetic plain would be devoid of such extensive alluvial soils. 

3. The pattern of monsoon would be different from what it is at present. 

Which of the statements given above is/are correct? 

(a) 1 only 

(b) 1 and 3 only 

(c) 2 and 3 only 

(d) 1, 2 and 3

The profound geographical and ecological functions of a major mountain range, which directly parallels the catastrophic risks associated with losing the Aravallis.

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