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  • Finance Commission – Issues related to devolution of resources

    Restoring fiscal space for the states

    Explained | Polity | Mains Paper 2: Federalism

    Introduction

    India’s fiscal federalism has long been guided by the principle of cooperative balance, where both the Centre and States share resources, responsibilities, and accountability. However, the post-GST era has altered this equilibrium. The recent merger of the GST compensation cess with regular tax marks a watershed moment, ending an era of fiscal cushioning for States and raising pressing questions about States’ financial independence.

    With rising public aspirations, widening service delivery gaps, and increased welfare commitments, States are grappling with constrained fiscal space. The centralisation of taxation powers, growing dependence on Central transfers, and the limited flexibility to raise revenue are redefining India’s fiscal federalism.

    Why in the News?

    The abolition of the GST compensation cess, after five years of implementation, marks a turning point in India’s fiscal framework. For the first time since GST’s rollout in 2017, the compensation mechanism, which assured States 14% annual revenue growth, has ended.

    This is significant because:

    • The cess previously cushioned States from revenue shortfalls during GST transition.
    • Its removal exposes the true fiscal capacity of States, revealing wide disparities in revenue generation.
    • The Centre’s growing use of cesses and surcharges, which are not shareable with States, has further squeezed State finances.
    • The resulting imbalance has rekindled the debate on “fiscal autonomy versus fiscal efficiency.”

    Evolving Fiscal Architecture

    How has GST altered India’s tax landscape?

    1. Shift from origin-based to destination-based taxation: GST replaced multiple State taxes with a unified structure, eroding the States’ control over indirect taxes.
    2. Shared tax base: Both Centre and States levy GST, but decision-making lies with the GST Council, where the Centre has a dominant role.
    3. Erosion of fiscal autonomy: States lost independent authority to adjust tax rates or design fiscal responses tailored to their economies.
    4. Cess and surcharge dominance: These have become a parallel fiscal instrument for the Centre, bypassing the divisible tax pool.

    Changing Centre–State Financial Relations

    How have constitutional mechanisms evolved over time?

    1. Articles 268–293 define the fiscal relationship between Centre and States.
    2. The Finance Commission (Article 280) determines devolution, but several States allege that the criteria penalise progressive, industrial States.
    3. With the abolition of the Planning Commission in 2014, only two main transfer channels remain, Finance Commission grants and Centrally Sponsored Schemes (CSS).
    4. Article 282 allows discretionary Central grants, often perceived as politically influenced, affecting opposition-ruled States disproportionately.

    Declining Devolution and Fiscal Dependence

    How serious is the resource imbalance between Centre and States?

    1. Despite recommendations of 42% devolution (14th Finance Commission), actual transfers as a share of gross tax revenue have declined.
    2. Cesses and surcharges, which are non-shareable, reached ₹3.86 lakh crore (RE 2024–25) and are projected at ₹4.23 lakh crore (BE 2025–26).
    3. Central transfers still account for 44% of States’ revenue receipts, ranging from 72% for Bihar to 20% for Haryana, highlighting the uneven dependency landscape.
    4. The Centre collects 67% of total tax revenue, while States handle over 52% of total expenditure, particularly in health, education, and agriculture.
    5. This structural mismatch constrains States’ fiscal flexibility and deepens intergovernmental friction.

    Emerging Demands for Fiscal Reforms

    What are States and experts proposing for fiscal autonomy?

    1. Restructuring tax-sharing principles: Revisiting Finance Commission formulas to reflect true expenditure needs and reward performance equitably.
    2. Personal Income Tax sharing: Proposal to share or allow States to “top up” the personal income tax base to reduce fiscal dependence.
    3. Learning from Canada: Canadian provinces collect 54% of taxes and spend 60%, offering a model of greater subnational flexibility.
    4. Transparent devolution: Merging cesses and surcharges into the divisible pool could enhance transparency and equity.
    5. Independent fiscal oversight: Establishing a permanent intergovernmental fiscal council for mediation and coordination.

    The Way Forward: Towards Cooperative Fiscal Federalism

    How can fiscal space be restored to States?

    1. Revisit GST architecture: Grant States limited powers to vary tax rates within a band for specific commodities or services.
    2. Rationalise CSS schemes: Allow greater flexibility for States to design locally suited welfare interventions.
    3. Enhance fiscal responsibility: Encourage States to improve tax compliance, widen base, and adopt technology-driven revenue administration.
    4. Periodic fiscal reviews: Institutionalise data-based monitoring to balance efficiency with equity.
    5. Political cooperation: Encourage a non-partisan GST Council model where fiscal debates remain guided by economic logic, not politics.

    Conclusion

    India’s growth story is fundamentally federal. The vitality of its States determines the resilience of its economy. As the GST compensation era ends and States’ expenditure responsibilities rise, restoring their fiscal autonomy is essential for sustainable growth. True cooperative federalism demands not just consultation but real power-sharing in fiscal decision-making. Empowering States fiscally is not a concession — it is a constitutional necessity for a balanced and vibrant India.

    PYQ Relevance

    [UPSC 2024] What changes has the Union Government recently introduced in the domain of Centre-State relations? Suggest measures to be adopted to build the trust between the Centre and the States and for strengthening federalism.

    Linkage: The phasing out of the GST compensation cess and rising use of non-shareable cesses and surcharges reflect the Centre’s growing fiscal dominance, compelling States to seek reforms in tax devolution to rebuild trust and uphold true cooperative federalism.

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  • Empower ASI to do its job

    Explained | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Introduction 

    The government’s move to allow private oversight of protected monuments is a watershed moment. For decades, ASI has been the statutory guardian of India’s tangible past, born in the colonial era and burdened by bureaucracy, underfunding and a shrinking sense of mission. Simultaneously, private actors and civic organisations have shown how resources, managerial skill and community energy can revive museums and sites. The question is not whether to choose one side; it is how to combine ASI’s technical authority with the creativity, funds and operational capability that partnerships bring, without commodifying culture.

    The Human Cost of Institutional Drift

    The shrinking imagination of public stewardship

    1. Institutional fatigue: ASI carries a legacy of scholarship but suffers from low morale and an inward-looking culture that treats conservation as paperwork rather than cultural care.
    2. Loss of interpretive vision: When custodians stop telling stories, monuments become inert props rather than living places of memory and identity.
    3. Urban neglect: Historic neighbourhoods, bazaars and ritual spaces around monuments decay when site management ignores everyday people.

    The emotional stakes for communities

    1. Cultural dislocation: For villagers, priests and artisans, monuments are part of life, losing access or ritual meaning severs social ties.
    2. Livelihoods at risk: When heritage is mismanaged, local guides, craftspeople and small vendors lose incomes tied to respectful tourism.

    The Promise of Partnerships and PPPs

    Partnerships as custodianship boosters

    1. Financial rescue: PPPs can create endowments and recurring funding streams for long-term maintenance, freeing conservation from short political cycles.
    2. Example: Museum restorations in Mumbai combined corporate funding, municipal support and conservation expertise to revive institutions.
    3. Operational professionalism: Private sector expertise in project management, visitor services and marketing improves site upkeep and interpretive programming.
    4. New experiences, same respect: Thoughtful PPPs design museum displays, lighting, interpretation centres and guided routes that invite learning, not spectacle.

    PPPs and local empowerment

    1. Livelihood integration: PPP projects that hire local artisans and vendors create shared incentives for conservation.
    2. Example: Community-run craft stalls and guided-walk programs increase earnings and local ownership.
    3. Skill-building: Partnerships can fund training for conservators, guides, and site managers, expanding the conservation workforce.

    When PPPs get it right: conditions of success

    1. ASI oversight: Technical conservation plans must be approved and monitored by ASI or accredited conservation experts.
    2. Community clauses: Contracts should guarantee access, rituals and a share of revenue for local stakeholders.
    3. Transparent accountability: Public dashboards, audited accounts and sunset clauses prevent permanent privatization.

    The Risks of Commercialisation and How to Guard Against Them

    Commodification and loss of sacredness

    1. Over-entertainment danger: Turning a temple or tomb into a stage for events can strip its sanctity and alienate devotees.
    2. Tourist-first trap: If revenue becomes the sole metric, conservation values degrade.
    3. Equity and access concerns
    4. Paywall problem: Higher fees and exclusive events can exclude local communities; safeguards must keep access affordable and meaningful.

    Technical and ethical lapses

    1. Skill imbalance: Corporates without heritage expertise may favour cosmetic changes over reversible, scientifically sound conservation.
    2. Short-termism: Event-driven models can fund repairs but not create long-term technical capacity for conservation.

    A Practical, Human-Centred Roadmap

    Reinventing ASI as knowledge steward and regulator

    1. Autonomy with accountability: Grant ASI managerial freedom and stable budgets while insisting on transparency and citizen oversight.
    2. Specialist cadres: Create conservation architect and urban heritage cadres, fellowships and cross-disciplinary teams (historians, anthropologists, conservators).

    Designing PPPs for people and preservation

    1. Model MoU essentials: ASI-approved conservation plan, community benefit clause, revenue-sharing mechanism, independent monitoring, exit/sunset clause.
    2. Performance metrics: Conservation integrity, community welfare indicators, visitor-impact thresholds, financial sustainability.
    3. Phased pilots: Start with clearly defined pilot projects (museums, small sites) before scaling to larger or sacred monuments.

    Community as co-custodians

    1. Local governance: Empower panchayats, municipal trusts and temple committees in day-to-day stewardship with technical backup from ASI.
    2. Benefit linking: Ensure training, employment and revenue-sharing for local craftspeople and service providers.

    Modern tools for timeless care

    1. Digital records: 3D scans, GIS mapping and condition-monitoring dashboards to track deterioration and plan interventions.
    2. Public access to data: Open reports and accessible interpretive material strengthen democratic stewardship.

    Conclusion — A human promise, not a transaction

    Heritage is ethical work: it asks us to keep memory alive while serving the living. The ASI must be renewed into a vibrant, expert body that sets standards and guarantees access. PPPs — when framed by clear agreements, community rights and technical oversight — can supply funds, skills and fresh ideas. The aim is not to monetise memory but to steward it: to ensure that stones continue to tell stories, and that those stories remain deeply, unmistakably, Indian.

    PYQ Relevance

    [UPSC 2024] Public charitable trusts have the potential to make India’s development more inclusive as they relate to certain vital public issues. Comment.

    Linkage: This PYQ highlights how non-state actors and philanthropic trusts can complement government efforts in addressing public issues. It is linked to the article as PPPs and heritage trusts similarly expand conservation beyond ASI’s limited capacity, ensuring inclusive and sustainable preservation of cultural assets.

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  • Air Pollution

    Carbon Di-oxide Levels in 2024 set new records: WMO

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

    Why in the News?

    The World Meteorological Organization (WMO) reported that carbon dioxide (CO₂) concentrations reached a record 423.9 ppm in 2024, marking the highest annual increase (3.5 ppm) since global measurements began in 1957.

    About WMO Report 2025:

    • Publisher: Issued by the World Meteorological Organization (WMO), the UN specialised agency for weather, climate, and water systems.
    • Document: The 2025 Greenhouse Gas Bulletin presents global atmospheric data for carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O).
    • Global Record: Confirms 2024 as the warmest year ever, with average temperatures 1.55 °C above pre-industrial (1850–1900) levels.
    • Context & Timing: Released ahead of COP30 (Belém, Brazil) to guide mitigation policies and national climate commitments.
    • Key Warning: Notes a record surge in CO₂ and the weakening of natural carbon sinks such as oceans and forests.

    Key Highlights about Greenhouse Gases:

    • Carbon Dioxide (CO₂): Global mean reached 423.9 ppm in 2024, up 3.5 ppm from 2023, the largest annual rise since 1957. Concentrations are 152 % above pre-industrial (278.3 ppm); land and ocean sinks are declining in efficiency.
    • Methane (CH₄): Climbed to 1,942 ppb, 166 % above pre-industrial levels; ~60 % of emissions stem from livestock, fossil fuels, and rice cultivation.
    • Nitrous Oxide (N₂O): Reached 338 ppb, 25 % higher than pre-industrial; emitted mainly from fertiliser use, biomass burning, and industry; the third major long-lived GHG.
    • Drivers of Increase: Human emissions, El Niño-linked droughts and wildfires, and reduced oceanic absorption, especially from the Amazon and southern Africa in 2024.

    Implications and Risks:

    • Warming Acceleration: CO₂ causes ~66 % of total warming and 79 % over the last decade; persistent buildup locks in long-term temperature rise.
    • Weakening Carbon Sinks: Warmer seas and drought-stricken lands absorb less CO₂, reinforcing a feedback loop of accumulation.
    • Extreme Events: Intensified heatwaves, floods, droughts, and wildfires signal proximity to irreversible tipping points like ice-sheet loss and coral die-off.
    [UPSC 2012] The increasing amount of carbon dioxide in the air is slowly raising the temperature of the atmosphere, because it absorbs

    Options: (a) the water vapour of the air and retains its heat.

    (b) the UV part of the solar radiation.

    (c) all the solar radiations.

    (d) the infrared part of the solar radiation. *

     

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  • Non-Aligned Movement (NAM)

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

    Why in the News?

    The 19th Non-Aligned Movement (NAM) Mid-Term Ministerial Meeting was recently held in Kampala, Uganda.

    About the Non-Aligned Movement (NAM)

    • Overview: A grouping of states not formally aligned with or against any major power bloc, established to uphold sovereignty, independence, and neutrality during the Cold War.
    • Formation: Founded in 1961 at Belgrade, Yugoslavia, emerging from the 1955 Bandung Conference (Indonesia) which laid down the Ten Principles of Bandung as its ideological foundation.
    • Founding Leaders:
      1. Jawaharlal Nehru (India)
      2. Gamal Abdel Nasser (Egypt)
      3. Josip Broz Tito (Yugoslavia)
      4. Ahmed Sukarno (Indonesia)
      5. Kwame Nkrumah (Ghana)
    • Membership:
      • 120 countries: 53 from Africa, 39 from Asia, 26 from Latin America & the Caribbean, and 2 from Europe.
      • Includes Palestine as a member and 17 observer nations with 10 observer organisations.
      • Represents nearly 60% of UN membership, making it the second-largest intergovernmental bloc after the UN.
    • Structure: NAM functions without a permanent secretariat, charter, or budget, relying on rotational leadership and consensus-driven decision-making.

    Non-Aligned Movement (NAM)

    India’s Contemporary Role in NAM:

    • India advocates for reinvigorating NAM as a platform for South-South cooperation in technology, trade, and climate resilience.
    • It seeks to make NAM relevant in a multipolar world, focusing on digital equity, global governance reforms, and sustainable development.
    • India views NAM not as an anti-West bloc but as a forum of balanced autonomy, promoting strategic non-alignment and global partnership in the 21st century.
    [UPSC 2009] Among the following Presidents of India, who was also the Secretary General of Non-Aligned Movement for some period ?

    Options: (a) Dr. Sarvepalli Radhakrishnan (b) Varahairi Venkatagiri (c) Giani Zail Singh * (d) Dr. Shanker Dayal Sharma

     

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  • Forest Conservation Efforts – NFP, Western Ghats, etc.

    CG HC upholds cancellation of Forest Rights of Villagers

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

    Why in the News?

    The Chhattisgarh High Court has dismissed a petition challenging the cancellation of Community Forest Rights (CFRs) granted to villagers of Ghatbarra in the Hasdeo Arand forest, an area where Adani Enterprises–linked coal mines operate.

    Background of the Case:

    • Dispute Origin: The District-Level Committee (DLC) revoked CFR titles in 2016, citing that the area had already been diverted for mining in 2012 with MoEF clearance.
    • Petitioners’ Claim: The Hasdeo Arand Bachao Sangharsh Samiti argued that the Forest Rights Act (FRA), 2006 provides no revocation clause and that villagers were not given a fair hearing before cancellation.
    • Court’s View: The High Court upheld the State’s decision, calling the 2013 CFR grant a “mistake” void ab initio, and legally cancellable.

    Key Judicial Findings:

    • Legality of Revocation: FRA lacks explicit revocation provision, but erroneous grants may be rectified; hence cancellation was valid.
    • Prior Approvals Prevail: 2012 MoEFCC mining clearance overrode subsequent CFR grants.
    • State Mineral Ownership: FRA does not affect the State’s control over minerals beneath forest land.
    • Locus Standi: Petitioners lacked standing after the Forest Rights Committee withdrew; no authorised village representation remained.
    • Suppression of Facts: Petitioners had earlier challenged land acquisition (case dismissed in 2022) but failed to disclose it.

    Significance:

    This ruling marks the first judicial interpretation of whether forest rights granted under the Forest Rights Act, 2006 (FRA) can be revoked or cancelled, despite the Act containing no explicit provision for cancellation.

    About the Forest Rights Act (FRA), 2006:

    • Overview: The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, commonly called the Forest Rights Act (FRA).
    • Purpose: Enacted to correct historical injustices faced by forest-dwelling communities deprived of traditional land and resource rights during colonial rule.
    • Core Objective: Ensures tenurial security, livelihood protection, and ecological stewardship of forest-dependent populations.
    • Beneficiaries: Covers Scheduled Tribes (STs) and Other Traditional Forest Dwellers (OTFDs) who have lived in and depended on forests for generations.
    • Scope: Recognises both individual and collective rights over forest land and produce, extending to cultivation, habitation, and minor forest produce use.
    • Governance Principle: Empowers Gram Sabhas as the central authority for recognising and managing forest rights, reinforcing local autonomy.
    • Integration Goal: Aligns forest governance with tribal self-rule, complementing the Panchayats (Extension to Scheduled Areas) Act, 1996 (PESA).

    Key Features of the FRA:

    • Individual & Community Rights: Legal recognition for occupation, cultivation, residence, and use/sale of minor forest produce.
    • Community Forest Resource (CFR) Rights: Grants Gram Sabhas control to protect, regenerate, and manage community forests.
    • Habitat Rights: Protects Particularly Vulnerable Tribal Groups (PVTGs) and pre-agricultural forest communities.
    • Governance Structure: Multi-level verification, Gram Sabha → Sub-Divisional Committee → District-Level Committee, for rights adjudication.
    • Development Provisions: Allows limited diversion of forest land for public utilities with Gram Sabha consent.
    • Eviction Safeguard: No eviction until claims are fully processed and rights recognised.
    • Decentralised Oversight: Empowers Gram Sabha as the final decision-making authority on forest rights and management.
    • Legal Integration: Reinforces PESA’s participatory governance and community-led conservation in Scheduled Areas.
    [UPSC 2021] At the national level, which ministry is the nodal agency to ensure effective implementation of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006?

    Options: (a) Ministry of Environment, Forest and Climate Change
    (b) Ministry of Panchayati Raj
    (c) Ministry of Rural Development
    (d) Ministry of Tribal Affairs*

     

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  • Wetland Conservation

    Sustainable Aquaculture in Mangrove Ecosystems (SAIME) Initiative

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

    Why in the News?

    The SAIME Initiative, developed by the Nature Environment and Wildlife Society (NEWS) in the Sundarbans of West Bengal, has been conferred Global Technical Recognition by the Food and Agriculture Organization (FAO) of the United Nations.

    What is SAIME Initiative?

    • Concept: A multi-stakeholder partnership model integrating shrimp aquaculture with mangrove restoration in the Sundarbans.
    • Implementing Agencies: Developed by the Nature Environment and Wildlife Society (NEWS) with support from the Global Nature Fund (Germany), Naturland, and Bangladesh Environment & Development Society (BEDS).
    • Purpose: Promotes climate-adaptive, conservation-linked livelihoods balancing ecological health with local economic growth.
    • Implementation: Covers 29.84 hectares with 42 fish farmers, achieving 100% rise in net profits through low-input, eco-friendly methods.
    • Target Group: Focuses on climate-vulnerable coastal communities, encouraging chemical-free shrimp farming to build coastal resilience.

    Core Features and Approach:

    • Ecosystem Integration: Maintains 5–30% mangrove cover within aquaculture ponds, directly linking productivity with ecosystem restoration.
    • Community Participation: Adopts a bottom-up co-management model, involving local farmers in planning, monitoring, and benefit-sharing.
    • Sustainable Practices: Utilises mangrove litter as shrimp feed, cutting chemical dependence and improving natural nutrient cycles.
    • Climate Resilience: Mitigates cyclones, salinity intrusion, and erosion, functioning as a nature-based adaptation system.
    • Economic Efficiency: Promotes low-input, high-yield aquaculture, enhancing smallholder profitability and resource efficiency.
    • Environmental Benefits: Supports carbon sequestration, biodiversity conservation, and blue carbon economy objectives.
    • Global Alignment: Advances SDG-13 (Climate Action), SDG-14 (Life Below Water), and SDG-15 (Life on Land) through integrated coastal sustainability.

    About the Sundarbans:

    Sustainable Aquaculture in Mangrove Ecosystems (SAIME) Initiative

    • Location: Situated in the South and North 24-Parganas districts of West Bengal, at the southern tip of the Gangetic Delta, where the Ganga, Brahmaputra, and Meghna rivers meet the Bay of Bengal.
    • Area: Currently spans 2,585.89 sq km, with an expansion proposal to 3,629.57 sq km, making it the largest mangrove forest in the world.
    • Status: Designated as a Tiger Reserve, National Park, Biosphere Reserve, and a UNESCO World Heritage Site (since 1987).
    • Topography: Characterised by a dense network of tidal creeks, estuaries, and 105 mangrove-covered islands, influenced by daily tidal inundation.
    • Flora and Fauna:
      • Flora: Dominated by Avicennia, Rhizophora, Sonneratia, and Heritiera species.
      • Fauna: Includes Royal Bengal Tiger, Fishing Cat, Estuarine Crocodile, Irrawaddy Dolphin, King Cobra, and several endangered bird species.
    • Boundaries:
      • East: Bangladesh border (Raimangal & Harinbhanga rivers)
      • South: Bay of Bengal
      • North/West: Matla, Bidya, and Gomdi rivers
    • Ecological Importance: Acts as a natural shield against cyclones and tsunamis, a carbon-rich ecosystem, and a vital nursery ground for fisheries — forming the ecological heart of India’s blue economy and coastal resilience framework.

     

    [UPSC 2023] Which one of the following is the best example of repeated falls in sea level, giving rise to present-day extensive marshland?

    Options: (a) Bhitarkanika Mangroves

    (b) Marakkanam Salt Pans

    (c) Naupada Swamp

    (d) Rann of Kutch*

     

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  • Indian Missile Program Updates

    Akash Missile System 

    Prelims Only | Science Tech | Mains Paper 3: S&T – Applications In Everyday Life

    Why in the News?

    India has pitched for the supply of the Akash missile system to Brazil.

    akash

    About Akash Missile System:

    • Overview: Developed by the Defence Research and Development Organisation (DRDO) and manufactured by Bharat Dynamics Ltd (BDL).
    • Type: A short-range Surface-to-Air Missile (SAM) designed to defend against aircraft, UAVs, and helicopters.
    • Operational Users: Inducted by both the Indian Army and the Indian Air Force, forming part of India’s layered air defence grid.
    • Purpose: Protects vital assets from aerial threats within the short to medium range segment.
    • Deployment Mode: Mounted on mobile launchers for rapid positioning, flexibility, and operational agility.
    • Comparison: Functionally comparable to Israel’s Iron Dome, though Akash focuses on intercepting larger aerial targets rather than small projectiles.

    Key Features:

    • Range & Altitude: Effective range 4.5–25 km; altitude coverage 100 m–20 km.
    • Engagement Capacity: A single firing unit can engage four targets simultaneously in both autonomous and group modes.
    • Speed & Accuracy: Capable of high-speed interceptions with radar-guided precision.
    • Propulsion & Dimensions: Length 5.87 m, diameter 350 mm, weight 710 kg; powered by solid-fuel propulsion.
    • Automation: Fully automated system ensuring rapid reaction time from detection to neutralization.
    • ECCM Capability: Built-in Electronic Counter-Counter Measures (ECCM) to resist enemy jamming
    [UPSC 2023] Consider the following statements:

    1. Ballistic missiles are jet-propelled at subsonic speeds throughout their fights, while cruise missiles are rocket-powered only in the initial phase of flight.

    2. Agni-V is a medium-range supersonic cruise missile, while BrahMos is a solid-fuelled intercontinental ballistic missile.

    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

    [16th October 2025 ] The Hindu Op-ed: Navigating the global economic transformation

    op-ed snap | Economics | Mains Paper 3: Indian Economy

    PYQ Relevance

    [UPSC 2019] The long-sustained image of India as a leader of the oppressed and marginalised nations has disappeared on account of its new found role in the emerging global order.

    Linkage: The question reflects India’s shift from moral leadership to strategic pragmatism in global affairs. The article builds on this, urging India to reclaim that leadership by shaping a fair, inclusive global economic order for the Global South.

    Mentor’s Comment

    The tectonic shifts in the world economy today echo the reshaping of global power equations. Salman Khurshid’s article presents a comprehensive analysis of how populist politics, state capitalism, and digital colonialism are reshaping the global economic order. This piece unpacks those arguments and situates them in a UPSC-relevant analytical frame, connecting them to India’s strategic choices and the future of the Global South.

    Introduction: Why in the News

    The world economy is undergoing a seismic transformation, marked by the U.S.–China great-power rivalry, reshaped trade flows, and the rise of state-driven capitalism. This shift is more than cyclical; it is structural, redefining the principles of globalisation itself. For the first time in decades, both economic and political systems are converging towards protectionism and state control, breaking away from the neoliberal consensus that defined the post–Cold War era. The article underscores how these disruptions open a rare opportunity for India and the Global South to shape a fairer and more inclusive global economic order.

    Understanding the New Economic Paradigms

    How are populist autocrats reshaping capitalism?

    1. State–capital fusion: Populist autocrats have created a “state-capital Gordian knot”, replacing laissez-faire capitalism with systems that serve oligopolies in exchange for political loyalty.
    2. Corporate dominance: Crony-capitalists now influence state policies, prioritising corporate gains over citizen welfare — mortgaging public assets and weakening the social contract.
    3. Socio-political consequences: This model centralises power, marginalises public accountability, and distorts market competitiveness — leading to plutocracies, not democracies.

    Why are traditional power politics resurfacing in the economic sphere?

    1. Resurgent statecraft: America’s recalibration to “Make America Great Again” marks a return of economic nationalism.
    2. Strategic control: U.S. actions — shifting Taiwan’s chip manufacturing, securing Panama routes, weaponising rare earths, and asserting dominance in the Arctic — reflect geo-economic containment of China.
    3. Ecological imperialism: By controlling supply chains and energy corridors, global powers are expanding influence under the guise of “strategic autonomy.”
    4. Global instability: These assertive spheres of influence have led to conflicts and genocides, reigniting the dangers of zero-sum geopolitics.

    How is digital colonialism reshaping global economies?

    1. Big Tech dominance: Cloud capitalists have captured value chains and data flows, influencing politics and governance.
    2. Digital imperialism: Initiatives like the AI Action Plan, Cloud Act, and SWIFT weaponisation allow powerful states to dominate financial and cyber infrastructure.
    3. Erosion of sovereignty: Over 100 central banks are piloting state-backed digital currencies, which could ease transactions but risk undermining national autonomy.
    4. Political risks: Digital finance systems complicate political funding, giving populist regimes more tools for manipulation.

    How have aid withdrawals widened global inequalities?

    1. Funding collapse: G-7 nations’ $44 billion cuts in developmental aid could push 5.7 million Africans into poverty by 2026.
    2. Ripple effects: In Nepal, reduced grants for small enterprises led to eight lakh migrations, intensifying domestic dissatisfaction.
    3. Humanitarian fallout: 16.7 million people lost access to the World Food Programme in 2023, sparking recruitment into militias across the Sahel region.
    4. Moral crisis: Retrenchment of aid reflects a shift from shared prosperity to self-preservation, amplifying instability in the Global South.

    What challenges and opportunities emerge for India and the Global South?

    1. Debt and inequality: Neoliberal globalisation fostered sovereign debt traps and extreme wealth concentration in the Global North.
    2. Poverty crisis: The World Bank’s 2022 Poverty and Shared Prosperity Report notes 47% of humanity lives below the $6.85 poverty line, while 735 million suffer hunger.
    3. Collaborative alternatives: India and the Global South can construct a New Economic Deal through debt-relief frameworks, institutional reforms, and South–South cooperation.
    4. Strategic vision: Building bipartisan international ties and fair trade alliances through BRICS and regional groupings will ensure resilience against Western hegemony.

    How must India recalibrate its domestic policies to lead globally?

    1. State leadership: The government must play a commanding role in strategic sectors — energy, data, infrastructure, healthcare, and agriculture — as done by East Asian economies.
    2. Anti-monopoly mechanisms: Creating sovereign wealth funds (like Norway) and enforcing anti-trust norms can prevent oligarchic dominance.
    3. Reimagining PSUs: Instead of privatisation, redeploying PSUs like China’s state-owned enterprises can serve national and geopolitical goals.
    4. Knowledge economy: Heavy investment in research, education, and innovation will secure India’s place as a globally competitive power.
    5. True non-alignment: India’s foreign policy must remain substantive, not performative — driven by consensus and independence rather than partisan interests.

    Conclusion

    The global economic transformation is not merely about trade or finance; it is about who controls the architecture of global interdependence. As old hierarchies fracture and new alignments emerge, India stands at a crossroads, between aligning with entrenched powers or leading a new era of equitable globalization. The coming decade will test whether the Global South can collectively author a future defined by justice, sustainability, and shared prosperity. The moment is precarious, but also profoundly promising.

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  • The Crisis In The Middle East

    The future of the IMEC

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

    Introduction

    In an era where connectivity defines power, the India–Middle East–Europe Economic Corridor (IMEC) emerged as a visionary project connecting India’s western ports with Europe via the Arabian Peninsula. Envisaged as a multi-modal corridor encompassing maritime, rail, energy, and digital infrastructure, IMEC sought to integrate economies across continents while promoting peace and prosperity in a historically volatile region.

    However, the optimism that surrounded IMEC’s launch quickly met the harsh reality of geopolitics. The October 7 Hamas attacks and subsequent Israel–Gaza war exposed the fragility of West Asian stability, placing IMEC’s implementation in question. Yet, beyond the uncertainty lies an opportunity for India to reshape its connectivity vision, adapting routes and partnerships to new global dynamics.

    Why in the News

    The IMEC has resurfaced in policy discussions as its viability faces uncertainty amid the deteriorating West Asian security environment. The October 7 Hamas–Israel conflict disrupted regional optimism nurtured by the Abraham Accords and slowed progress on IMEC’s proposed transnational links. At the same time, climate-driven Arctic trade routes and Red Sea disruptions by the Houthis are redrawing global shipping patterns, forcing India and its partners to reconsider IMEC’s configuration. The issue is critical as the corridor represents both an economic and strategic counterweight to China’s Belt and Road Initiative (BRI).

    The Strategic Vision Behind IMEC:

    1. Comprehensive Connectivity: IMEC aims to upgrade maritime routes between India and the Arabian Peninsula and establish high-speed rail links from UAE ports to Haifa, Israel, via Saudi Arabia and Jordan.
    2. Integration with Europe: From Haifa, goods would be shipped to Europe’s Mediterranean ports, ensuring faster, secure, and sustainable trade connectivity.
    3. Beyond Transport: The corridor also includes plans for a clean hydrogen pipeline, electricity cable, and high-speed undersea digital cable, linking energy and digital ecosystems across three continents.
    4. Strategic Objective: IMEC provides a non-Chinese, rules-based alternative to the Belt and Road Initiative (BRI), enhancing India’s strategic outreach and economic influence.

    The Geopolitical Context of 2023:

    1. Favourable Climate: The Abraham Accords (2020) created optimism for regional peace, bringing Israel and several Arab states closer. This atmosphere facilitated multilateral cooperation frameworks such as I2U2 (India, Israel, UAE, U.S.), paving the way for IMEC.
    2. India’s Upward Trajectory: India’s improving ties with Saudi Arabia and the UAE, coupled with strong U.S. relations, allowed it to play a central role in IMEC’s conception.
    3. Global Endorsement: The corridor was launched at the G-20 Summit in Delhi, with support from the EU, France, Germany, Italy, and Saudi Arabia, underscoring India’s emergence as a trusted global partner.

    The Security Setback and Regional Volatility

    1. Conflict Shock: Within weeks of IMEC’s announcement, the Hamas–Israel conflict erupted, reversing the post-Abraham optimism.
    2. Regional Fallout: Israel’s military operations strained ties with Arab countries, undermining cross-border infrastructure cooperation.
    3. Red Sea Disruptions: The Houthi attacks on cargo ships forced rerouting via the Cape of Good Hope, increasing transit time and cost.
    4. Lesson: The events underscore that geopolitical stability remains the cornerstone of connectivity, and corridors like IMEC must remain adaptable to shifting realities.

    Europe’s Changing Maritime Interests

    1. Arctic Openings: Climate change has opened new northern sea routes, shortening Asia–Europe shipping times. Beneficiaries include Russia, the U.S., China, and northern European nations.
    2. Mediterranean Anxiety: Countries like Italy, dependent solely on the Mediterranean, fear economic marginalisation if Arctic routes dominate trade.
    3. Strategic Importance of IMEC: Hence, Mediterranean states see IMEC as a means to sustain their maritime relevance and diversify trade partnerships.
    4. India’s Role: For India, the Mediterranean remains vital, as Arctic routes offer no immediate logistical advantage.

    Why IMEC Still Matters for India

    1. Economic Scale: With $136 billion in annual trade, the EU remains India’s largest trading partner, highlighting the need for resilient connectivity.
    2. Supply Chain Resilience: IMEC offers a secure, shorter route connecting India to Europe while reducing dependence on the Red Sea–Suez chokepoint.
    3. Strategic Leverage: Enhanced engagement with Arab economies can dilute Pakistan’s influence and integrate India deeper into West Asia’s economic architecture.
    4. Innovation Space: As a multi-member initiative, IMEC allows India to propose new routes via Saudi Arabia and Egypt, adapting to political flux.

    Challenges and the Way Forward

    1. Security Dependencies: Ongoing instability in Gaza and Israel poses a persistent threat.
    2. Financial and Political Coordination: Multi-country infrastructure projects face coordination delays, regulatory inconsistencies, and funding constraints.
    3. Need for Parallel Efforts: India must also upgrade domestic ports and logistics infrastructure, including Sagarmala and Dedicated Freight Corridors, to complement IMEC.
    4. Diplomatic Continuity: Sustaining dialogue through I2U2 and G-20 cooperation can help preserve IMEC’s spirit even if its routes evolve.

    Conclusion

    The IMEC’s future will depend not merely on the pacification of West Asia but on the political agility and diplomatic imagination of its members. While the corridor’s physical routes may shift, its strategic essence remains intact, to build resilient, diversified, and sustainable connectivity between India and Europe. For India, IMEC is more than an infrastructure project; it is a statement of intent, to be at the centre of global supply chains and a stabilising power in a fractured world.

    PYQ Relevance

    [UPSC 2018] The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same.

    Linkage: While China’s CPEC runs through disputed territory, making India wary, the IMEC shows how India is building its own clean, safe, and cooperative route to connect with Europe. It’s India’s way of staying in the global connectivity game—on its own terms.

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  • Renewable Energy – Wind, Tidal, Geothermal, etc.

    The critical factor in India’s clean energy ambition

    Explained | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Introduction

    India’s ambition to achieve 500 GW of renewable energy by 2030 and net zero emissions by 2070 depends not just on sunlight and wind but on minerals buried beneath the earth’s surface. Lithium, cobalt, and REEs form the backbone of technologies driving the clean energy revolution. However, India imports almost all of these minerals, exposing its renewable future to external shocks. The article explores how India is gearing up to build a resilient supply chain, promote domestic mining, and move toward a circular economy, turning its green dreams into a self-reliant reality.

    India’s Clean Energy Journey and the Mineral Imperative

    1. Critical minerals as enablers: They power EV batteries, solar panels, and wind turbines, the pillars of the green transition.
    2. Explosive market growth: India’s EV market is projected to grow at a 49% CAGR from 2023 to 2030, driven by the Electric Mobility Promotion Scheme (EMPS) 2024.
    3. Battery boom: The battery storage market, valued at $2.8 billion in 2023, is set to surge with renewable energy integration.
    4. Import dependency: India currently imports nearly 100% of lithium, cobalt, and nickel, and over 90% of REEs, creating severe strategic vulnerabilities.

    Why Dependence is Dangerous: Global Supply Chain Vulnerabilities

    1. China’s dominance: Controls 60% of global REE production and 85% of processing capacity, giving it massive leverage.
    2. Geopolitical risks: Trade restrictions, conflicts, and supply disruptions can derail India’s energy transition plans.
    3. National security angle: Critical minerals are not just about clean energy,  they are strategic assets influencing defence, technology, and economic sovereignty.

    India’s Domestic Potential: A Hidden Treasure Beneath the Soil

    1. New discoveries: The Geological Survey of India (GSI) identified 5.9 million tonnes of inferred lithium in Jammu & Kashmir in 2023, a major breakthrough.
    2. Policy push: The National Mineral Exploration Policy (NMEP), 2016, and amendments to the Mines and Minerals (Development and Regulation) Act, 2021, opened up exploration to private players.
    3. Auctions driving interest: In 2023 alone, 20 critical mineral blocks (lithium, graphite, REEs) were auctioned, attracting domestic and multinational bidders.
    4. Potential-rich states: Jammu & Kashmir, Rajasthan (lithium), Odisha, and Andhra Pradesh (REEs) have emerged as mineral hotspots.

    From Discovery to Refinement: The Missing Link

    1. Production bottleneck: India contributes less than 1% of global REE production due to weak refining and processing infrastructure.
    2. Need for partnerships: Public-private collaborations can bring in advanced processing technologies and recycling systems.
    3. Government incentives: Subsidies, tax breaks, and R&D grants are critical to scale domestic lithium and cobalt pilot projects.

    Investment and Policy Momentum: Building the Foundation

    1. Regulatory reforms: The Mines and Minerals (Amendment) Act, 2023 allows private exploration but the sector faces high costs and environmental concerns.
    2. Economic potential: Mining contributes only 2.5% to India’s GDP, compared to 13.6% in Australia — signalling untapped opportunity.
    3. National Critical Mineral Mission (NCMM): With an outlay of ₹34,300 crore, it aims to strengthen the value chain — from exploration to recycling.

    Institutional efforts:

    1. NMDC diversifying through its Australian arm.
    2. IREL (India) Ltd. extracting REEs like neodymium, praseodymium, and dysprosium.
    3. KABIL (Khanij Bidesh India Ltd.), formed in 2019, tasked with overseas acquisitions of mineral assets.

    Moving Towards a Circular Economy

    1. E-waste as opportunity: India produces 4 million metric tonnes of e-waste annually, yet only 10% is formally recycled.
    2. Recycling policies: The Battery Waste Management Rules (2022) and E-Waste Management Rules (2022) aim to improve recovery of critical minerals.
    3. Challenges: Weak enforcement, poor infrastructure, and lack of awareness hinder progress.
    4. Way forward: Public-private recycling hubs can boost technology access, cut costs, and reduce environmental footprint, paving the way for a circular economy.

    Conclusion

    Critical minerals are the backbone of India’s clean energy transformation. Securing them is not just about green growth, but about economic independence and strategic security. India’s policy thrust through the National Critical Mineral Mission, domestic auctions, and recycling reforms signal intent, but execution remains key. A coherent strategy involving private investment, state backing, and global partnerships can ensure India does not just consume green technology, it creates it. The success of this mission will determine whether India emerges as a leader in the global clean energy race or remains dependent on others for its green dreams.

    PYQ Relevance

    [UPSC 2022] Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective?

    Linkage: India’s ability to meet 50% of its energy needs from renewables by 2030 hinges on securing critical minerals like lithium and REEs that power solar, wind, and EV technologies. A shift of subsidies from fossil fuels to renewables will accelerate domestic mining, recycling, and innovation—building the self-reliant green infrastructure essential for achieving this target.

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