PYQ Relevance:
[UPSC 2020] National Education Policy 2020 is in conformity with the Sustainable Development Goal-4 (2030). It intends to restructure and reorient education system in India. Critically examine the statement.
Linkage: A key focus of the NEP 2020 is the strengthening and formalization of Early Childhood Care and Education (ECCE), recognizing its foundational importance. Therefore, critically examining the NEP 2020 directly relates to the concept of “rewriting the script” for education, including ECE. |
Mentor’s Comment: Lack of proper early childhood care and education (ECE) increases inequality, affecting children’s brain development, learning ability, and future income. Nobel Prize winner James Heckman’s research shows that investing in young children gives the best returns. This highlights the need for urgent systemic changes. Some states like Uttar Pradesh, Odisha, and Madhya Pradesh are already making progress with innovative ECE programmes. These small but focused steps in early childhood can help break the cycle of poverty and help India fully benefit from its young population by 2047.
Today’s editorial will talk about the early childhood care and education (ECE) . This content would help in GS Paper II ( Policy Making & Education).
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Let’s learn!
Why in the News?
India’s silent but urgent employment crisis is rooted not just in the lack of jobs, but in the lottery of birth that disadvantages millions of children from the outset. So, smart spending on early childhood education and involving parents will support young children in learning better.
What is the lottery of birth?
- The “lottery of birth” refers to the idea that a child’s future is largely shaped by the circumstances into which they are born, such as: Family income, Geographic location, Caste, gender, or religion, Access to health, nutrition, and education.
- These are factors beyond the child’s control but can determine their opportunities, development, and life outcomes.
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What is the significance of the “lottery of birth” in shaping a child’s future in India?
- Determines Access to Basic Needs Early On: A child born into poverty often lacks access to adequate nutrition, healthcare, and early learning, which are essential for cognitive and physical development. Eg: A child born in a rural poor household may suffer from malnutrition and poor school readiness, limiting long-term potential.
- Creates Early Learning and Earning Gaps: By age 5, differences in language, numeracy, and motivation are already visible, making it harder for disadvantaged children to catch up in school and later in life. Eg: Only 15% of pre-primary children could match basic objects, and 30% could identify larger and smaller numbers, indicating early learning gaps.
- Perpetuates Intergenerational Poverty: Children born into poverty often remain trapped in low-opportunity environments, repeating the cycle into adulthood due to limited human capital development. Eg: Without quality early education, a poor child is far less likely to complete schooling or access skilled employment, thus continuing the poverty cycle.
Why is early childhood care and education (ECE) considered a high-return investment?
- Highest Returns on Human Capital Investments: The Heckman Curve shows that investments in ECE yield the greatest returns compared to later stages of education or training. Eg: For every $1 spent on ECE, the return ranges between $7 to $12, through better education, health, and reduced crime.
- Long-Term Economic and Social Benefits: Quality ECE leads to higher lifetime earnings, better employment, and improved life outcomes, helping individuals and economies thrive. Eg: Children with access to quality ECE are 4 times more likely to earn higher incomes and 3 times more likely to own a home as adults.
- Bridges Early Learning Gaps and Boosts School Readiness: ECE helps close learning gaps caused by poverty, ensuring children enter school prepared, reducing dropouts and remedial education costs. Eg: States like Odisha are launching Shishu Vatikas to prepare 5–6-year-olds for formal schooling, improving readiness and future learning outcomes.
Who are the key stakeholders responsible for improving ECE outcomes in India?
- Anganwadi workers and government pre-primary school teachers are frontline educators.
- State governments are responsible for hiring dedicated ECE teachers and creating infrastructure.
- Parents and caregivers play a crucial role in reinforcing learning at home.
- Supervisors and training institutions ensure quality and pedagogy through monitoring and capacity building.
- The Government of India provides funding and policy direction, though current spending is limited (₹1,263 per child annually).
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Where are Indian states like Uttar Pradesh and Odisha making notable ECE interventions?
- Uttar Pradesh: Hiring of ECE Educators and Teacher Training: Uttar Pradesh is recruiting nearly 11,000 Early Childhood Care and Education (ECE) educators for Balavatikas across districts. The state also held a six-day residential training for 50 master trainers from 13 districts to improve ECE pedagogy. Eg: These trained master trainers will cascade the training to other educators, ensuring quality instruction in early years.
- Odisha: Launch of Shishu Vatikas and Jaduipedi Kits: Odisha is setting up Shishu Vatikas in all government schools to prepare children aged 5–6 for formal schooling. The state also introduced Jaduipedi Kits — play-based learning materials to enhance school readiness. Eg: These initiatives are aligned with NEP 2020 and help improve early learning outcomes through structured activities.
How can parental involvement improve the effectiveness of early learning initiatives?
- Strengthens Learning Continuity at Home: When parents engage in their child’s early education, it reinforces what is taught at ECE centres, ensuring consistent learning both at home and school. Eg: Providing simple worksheets or storybooks for home use helps children practice and retain concepts better.
- Improves Child Motivation and Confidence: Active parental involvement boosts a child’s sense of security, motivation, and self-esteem, making them more eager to learn. Eg: In Madhya Pradesh, programmes like Bal Choupal involve parents in play-based activities, which positively impact children’s classroom participation.
- Bridges Knowledge Gaps through Technology: Digital tools like WhatsApp groups or EdTech apps help parents access learning tips, track progress, and support their child’s development, especially where formal education resources are limited. Eg: Parents receiving weekly learning activities via smartphones are better equipped to support foundational skills like language and numeracy.
What are the steps taken by the Indian government?
- Integration of ECE in National Education Policy (NEP) 2020: The NEP 2020 recognizes early childhood education as a critical foundation and proposes a new 5+3+3+4 curriculum structure, where the first five years focus on foundational learning (ages 3–8). Eg: Introduction of the “Foundational Literacy and Numeracy” mission (NIPUN Bharat) to ensure basic learning outcomes by Grade 3.
- Expansion and Strengthening of Anganwadi Centres: The government has focused on upgrading 14 lakh Anganwadi centres across India to serve as key delivery points for ECE, nutrition, and health services. Eg: POSHAN Abhiyaan supports capacity-building of Anganwadi workers and provides teaching-learning material to improve preschool education quality.
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Way forward:
- Increase Investment and Improve Infrastructure in ECE: The government should significantly raise funding per child for early childhood education to ensure adequate instructional time, trained teachers, and quality learning materials. Strengthening infrastructure, including more Anganwadi centres and pre-primary schools with dedicated educators, will help bridge existing gaps and improve learning outcomes.
- Enhance Parental Engagement and Community Participation: Empower parents with awareness, guidance, and digital tools to participate in their children’s early learning. Community-based programs like Bal Choupal should be expanded nationwide, and EdTech solutions leveraged to provide continuous support, creating a strong home-school learning ecosystem.
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Why in the News?
The container ship MSC Elsa 3 sank off the coast of Kochi on May 24, triggering a major environmental and maritime safety crisis that could turn into one of India’s worst maritime pollution disasters.
What led to the sinking of MSC Elsa 3?
- Operational Failure at Sea: On May 24, MSC Elsa 3 began tilting off the coast of Kochi due to an unspecified operational problem. Despite attempts by the crew, the ship could not be stabilised.
- Aging Vessel and Abandonment by Crew: Although structurally considered safe, the ship was nearly 30 years old. The crew abandoned it after unsuccessful efforts to right it, leading to its eventual sinking.
- Unfavourable Sea Conditions: Monsoon-related rough weather worsened the situation, with containers dislodging and floating, further destabilising the vessel before it sank to a depth of 50 metres.
Why are the sunken containers considered hazardous?
- Reactive Chemicals: Some containers hold substances that react dangerously with water, posing immediate chemical and fire hazards. Eg: 12 containers had calcium carbide, which reacts with seawater to produce acetylene gas, a highly flammable and explosive compound.
- Toxic Leakage: Leaked substances from damaged containers can pollute seawater and pose health hazards to marine life and humans. Eg: A container with rubber solution leaked and reacted with seawater, leading to the appearance of plastic pellets along the Kerala coast.
- Long-Term Environmental Impact: Chemicals from sunken containers can gradually seep out, causing persistent marine pollution and ecological damage. Eg: If not retrieved, chemicals from these containers may enter the food chain, harming marine biodiversity and impacting fisheries.
Who handles oil spill response in India?
The Indian Coast Guard is the nodal agency under the National Oil Spill Disaster Contingency Plan (NOS-DCP). |
How does this incident test India’s maritime disaster readiness?
- Inter-agency Coordination: Effective disaster response requires smooth coordination between multiple agencies such as the Coast Guard, pollution control boards, and port authorities. Eg: In the 2017 Chennai oil spill, response was delayed due to confusion and poor coordination, leading to severe coastal damage.
- Emergency Response Infrastructure: The ability to quickly deploy salvage teams, pollution control equipment, and monitoring systems is essential. Eg: After MSC Elsa 3 sank, authorities had time to prepare, making it a critical test of India’s readiness to act swiftlybefore oil or chemicals leak.
- Policy Implementation and Preparedness: Real-time implementation of national plans and compliance with international protocols demonstrate operational strength. Eg: The National Oil Spill Disaster Contingency Plan (NOS-DCP) designates the Coast Guard as the nodal agency, and this incident checks how well the plan is executed.
What are the steps taken by the Indian Government?
- Activation of Nodal Agencies: The Indian Coast Guard has been designated as the nodal agency under the National Oil Spill Disaster Contingency Plan (NOS-DCP) to coordinate the response. Eg: In the MSC Elsa 3 case, the Coast Guard is actively engaged in monitoring oil leakage and coordinating salvage efforts.
- Deployment of Salvage Operations: Salvage teams are being engaged following international insurance protocols to prevent further environmental damage. Eg: Authorities have mobilised professional salvers to safely retrieve containers and prevent hazardous leaks from the sunken ship.
- Monitoring and Cleanup Measures: Environmental agencies have been tasked with identifying and addressing the pollution caused, including plastic pellets and chemical residues. Eg: The Kerala government is coordinating with central pollution control authorities to manage the shoreline impactand protect marine life.
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Way forward:
- Strengthen Maritime Hazard Protocols and Container Screening: India must enforce stricter pre-shipment screening of cargo for hazardous materials and mandate real-time tracking of containers carrying reactive or toxic substances.
- Enhance Rapid Response Infrastructure and Inter-agency Coordination: Develop a unified maritime disaster response framework with clearly defined roles for all agencies — Coast Guard, pollution boards, port authorities, and state governments.
Mains PYQ:
[UPSC 2022] Discuss in detail the photochemical smog emphasizing its formation, effects and mitigation. Explain the 1999 Gothenburg Protocol.
Linkage: The MSC Elsa 3 incident directly involves environmental pollution, specifically marine pollution from hazardous cargo and fuel oil, necessitating mitigation efforts. This question reflects the UPSC’s interest in environmental pollution issues.
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Why in the News?
The MoU signed between Pakistan’s newly created Crypto Council and World Liberty Financial Inc. (WLFI)—a company linked to the Trump family—signals a dramatic pivot by Pakistan toward digital assets, despite its economic fragility.
What are the key objectives of the Pakistan-WLFI crypto collaboration?
- Promote Financial Inclusion: Use blockchain technology to increase access to financial services across Pakistan. Eg: The Pakistan Crypto Council aims to leverage blockchain for wider economic participation despite the country’s economic challenges.
- Monetise National Assets: Utilize crypto to unlock value from untapped resources like rare earth minerals. Eg: Plans include using blockchain to help Pakistan capitalise on rare earth deposits for economic growth.
- Establish Pakistan as a Crypto Hub: Position Pakistan as a regional leader in cryptocurrency trade and stablecoin usage for remittances. Eg: The MoU with WLFI includes introducing stablecoins to facilitate trade and remittances, boosting Pakistan’s role in the regional crypto market.
Why is the Trump administration supporting cryptocurrencies in its second term?
- Reposition US as a Global Leader in Digital Assets: Trump aims to make the US a frontrunner in blockchain innovation and cryptocurrency adoption. Eg: Issued executive orders promoting a national blockchain strategy and reducing regulatory hurdles.
- Maintain US Dollar Dominance: By supporting dollar-backed stablecoins and banning central bank digital currencies (CBDCs), Trump seeks to preserve the US dollar’s global supremacy. Eg: The creation of the Strategic Bitcoin Reserve to hold government-seized crypto assets as national reserves, similar to gold.
- Encourage Crypto Industry Growth and Innovation: Trump reversed previous skepticism to foster a pro-crypto environment, appointing industry-friendly figures to key roles. Eg: Inclusion of pro-crypto leaders like Elon Musk and David Sacks and pausing enforcement actions against major exchanges like Coinbase.
How might Pakistan’s crypto ambitions affect India’s economic and security interests?
- Risk of Cross-Border Money Laundering and Terror Funding: Pakistan’s use of decentralized cryptocurrencies may facilitate untraceable financial flows that could fund terrorism and illicit activities affecting India’s security. Eg: Concerns over digital currencies being misused to fund terror networks across borders.
- Strategic Economic Competition in the Crypto Space: Pakistan’s push to become a regional crypto hub could challenge India’s position in the growing digital asset market and impact economic influence in South Asia. Eg: Pakistan’s plans to monetise national assets and promote crypto adoption with support from WLFI.
- Leverage of Diaspora and Technology for Geopolitical Influence: Pakistan is engaging its diaspora and tech entrepreneurs to strengthen ties with the US and advance its crypto ambitions, potentially shifting regional power dynamics. Eg: Appointment of a British Pakistani entrepreneur to lead crypto regulation and influence policy, signaling increased geo-economic influence via digital currencies.
When did the Indian Supreme Court raise concerns about the lack of a crypto regulatory framework?
During the hearing of Shailesh Bhatt’s bail petition in early 2025: The Supreme Court highlighted the absence of a clear regulatory framework governing cryptocurrencies in India. The Court remarked on the paradox of taxing crypto assets without proper regulation. |
Way forward:
- Develop a Comprehensive Crypto Regulatory Framework: India should establish clear, balanced regulations to promote innovation, protect investors, and curb illicit activities in the crypto space.
- Enhance Cross-Border Collaboration and Monitoring: Strengthen international cooperation to monitor and prevent misuse of cryptocurrencies for money laundering and terrorism financing, while fostering responsible crypto adoption.
Mains PYQ:
[UPSC 2021] What is Cryptocurrency? How does it affect global society? Has it been affecting Indian society also?
Linkage: The growing importance of cryptocurrency, its disruptive potential in global finance, and its implications for India, specifically mentioning India’s significant number of crypto users. This PYQ demonstrates the UPSC’s interest in the fundamental understanding and societal effects of this technology.
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Why in the News?
A new plant species named Pedicularis rajeshiana has been discovered in the western Himalayas of India.
About Pedicularis rajeshiana:
- Discovery: It is a newly discovered plant species found at Rohtang Pass, Himachal Pradesh, at an altitude of 4,390 metres.
- Research Publication: The discovery was made by a scientist from the Botanical Survey of India (BSI), Dehradun, and published in the journal Phytotaxa.
- Plant Family: It belongs to the Orobanchaceae family and is part of the Lousewort group of plants.
- Plant Type: It is a hemiparasitic plant, meaning it draws some nutrients from nearby plants but also performs photosynthesis.
- Habitat: Grows on shaded, rocky mountain slopes, making it rare and possibly endangered due to its specific environment.
- Diversity: With this addition, India now has 83 Pedicularis species, including 36 in the western Himalayas.
Key Features of the Plant:
- Unique Floral Structure:
- Flowers have a deeply cut lower lip and stamens at three different levels — a very rare combination.
- Some flowers show a twin galea (double hood), never observed before in this genus, possibly an evolutionary trait to enhance pollination.
- Microscopic Details: Pollen grains have a croton-like texture and a distinct shape, confirmed through microscope studies.
- Distinctiveness: Compared to related species like P. porrecta and P. heydei, this plant is smaller, with fewer flowers and leaflets.
| [UPSC 2018] Why is a plant called Prosopis juliflora often mentioned in news?
Options: (a) Its extract is widely used in cosmetics. (b) It tends to reduce the biodiversity in the area in which it grows. * (c) Its extract is used in the synthesis of pesticides. (d) (None of the above. |
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Why in the News?
OpenAI has announced its readiness for a future Initial Public Offering (IPO).
Laws Governing IPOs in India:
- SEBI Act, 1992: Empowers SEBI to regulate capital markets and IPO processes.
- Companies Act, 2013: Governs company formation, prospectus rules, and disclosure norms.
- SEBI (ICDR) Regulations, 2018: Specifies detailed rules on IPO eligibility, pricing, disclosure, and allotment.
- Securities Contracts (Regulation) Act, 1956: Regulates the listing and trading of securities on stock exchanges.
- SEBI (LODR) Regulations, 2015: Mandates continuous disclosure requirements and corporate governance standards for listed companies.
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What is an IPO?
- Definition: An IPO is when a private company offers its shares to the public for the first time.
- Objective: It marks the company’s move to become a publicly listed company on a stock exchange.
- End Goal: Through an IPO, companies raise money from investors, and the public gets a chance to become shareholders.
How is an IPO Listed in India?
- Regulatory Filing: A company must file an offer document with SEBI (Securities and Exchange Board of India).
- Offer Document Includes:
- Details of the company and promoters.
- Financial history and business goals.
- The reason for raising capital and IPO structure.
- SEBI Approval: After review, SEBI gives permission for the listing process to begin.
IPO Eligibility & Pricing:
- Eligibility Criteria (SEBI Rules):
- Minimum Rs 3 crore in tangible assets in the last 3 years.
- Minimum Rs 1 crore in net worth each year for 3 years.
- Rs 15 crore average pre-tax profit in at least 3 out of the last 5 years.
- Who sets the Price:
- The company and its merchant banker decide the price based on valuation.
- Factors include assets, profits, and future growth.
- SEBI does NOT fix IPO prices.
Who can invest in an IPO?
- Eligibility: Anyone 18 years or older with a brokerage account can apply.
- Investor Categories:
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- Qualified Institutional Buyers (QIBs): Mutual funds, banks, insurance firms, FPIs, etc.
- Retail Investors: Individuals investing up to Rs 2 lakh.
- High Net Worth Individuals (HNIs): Investing more than Rs 2 lakh.
| [UPSC 2025] Consider the following statements:
I. India accounts for a very large portion of all equity option contracts traded globally, thus exhibiting a great boom.
II. India’s stock market has grown rapidly in the recent past, even overtaking Hong Kong’s at some point in time.
III. There is no regulatory body either to warn small investors about the risks of options trading or to act on unregistered financial advisors in this regard.
Which of the statements given above are correct?
Options: (a) I and II only* (b) II and III only (c) I and III only (d) I, II and III |
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Why in the News?
The Union Cabinet has approved the continuation of the Interest Subvention (IS) component under the Modified Interest Subvention Scheme (MISS) for the financial year 2025–26.
About Modified Interest Subvention Scheme (MISS):
- Central Sector Scheme: It helps farmers get low-interest short-term loans through the Kisan Credit Card (KCC).
- Nodal Agencies: The scheme is monitored by RBI and NABARD and implemented through Public Sector Banks, RRBs, Cooperative Banks, and Private Banks.
- Loan Details:
- Borrowing Limit: Farmers can borrow up to ₹3 lakh at 7% interest.
- Interest Support: Banks get 1.5% interest support from the government, helping them offer cheaper loans.
- Extra Discount: Farmers who repay on time get a 3% Prompt Repayment Incentive, reducing their effective interest rate to 4%.
- For Livestock & Fisheries: Loans up to ₹2 lakh also qualify for this benefit.
- Digital Support: The Kisan Rin Portal (KRP), launched in August 2023, improves transparency and tracking of loan disbursal.
Back2Basics: Kisan Credit Card (KCC) Scheme
- Launch: Started in 1998 based on the R.V. Gupta Committee’s recommendation.
- Who implements it: Managed by Commercial Banks, RRBs, Cooperative Banks, and Small Finance Banks.
- Purpose and Uses:
- Gives quick and easy loans for crop expenses, post-harvest needs, and household costs.
- Supports dairy, poultry, fisheries, and other allied activities.
- Offers credit for farming-related business investments.
- Key Features:
- Collateral-free loans up to ₹2 lakh.
- Interest rates as low as 4% with timely repayment (under MISS).
- Loan limit raised to ₹5 lakh in Budget 2025–26.
- Uses a revolving credit system — farmers can borrow and repay as needed.
- Flexible repayment is aligned with crop cycles to reduce stress.
- Additional Benefits:
- Includes crop insurance under PM Fasal Bima Yojana (PMFBY).
- Since 2018–19, also covers farmers in animal husbandry and fisheries.
- Helps farmers avoid moneylenders, promoting financial inclusion.
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| [UPSC 2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini truck
3. Consumption requirements of farm households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:
Options: (a) 1, 2 and 5 only (b) 1, 3 and 4 only* (c) 2, 3, 4 and 5 only (d) 1, 2, 3, 4 and 5 |
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Why in the News?
The Prime Minister paid tributes to Veer Savarkar on his birth anniversary on May 28th.
About Veer Savarkar: Life, Contributions, and Legacy
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Details |
| Who was Veer Savarkar? |
• Born on May 28, 1883, in Bhagur, Maharashtra,
• Founded the Abhinav Bharat Society (1904) with his brother Ganesh Damodar Savarkar for armed resistance.
• Led India House in London (1906) and the Free India Society.
• Arrested in 1910, sentenced to life imprisonment in Cellular Jail (Kala Pani, Andaman & Nicobar Islands).
• Became President of the Hindu Mahasabha (1937-1943).
• Died on February 26, 1966, after fasting till death. |
| His Contributions |
• Advocated armed revolution against British rule.
• Coined Hindutva (1923), defining Indian identity beyond religion.
• Opposed Partition, emphasizing Hindu political unity.
• Championed military nationalism over passive resistance.
• Writings and ideology influenced Indian nationalist movements. |
| Literary Works |
• The First War of Indian Independence (1909): Reinterpreted the 1857 Revolt as a nationalist struggle.
• Hindutva: Who is a Hindu? (1923): Laid the ideological foundation of Hindutva.
• My Transportation for Life (1950): Memoirs of his imprisonment in Cellular Jail.
• Six Glorious Epochs of Indian History: Advocated Hindu resistance against foreign invaders. |
| Controversies |
• Gandhi Assassination Case (1948): Arrested but acquitted due to lack of evidence.
• Mercy Petitions (1911-1924): Wrote clemency petitions for early release from prison, debated as tactical or compromising.
• Opposition to Quit India Movement (1942): Rejected Gandhi’s call, favoured military strength over civil disobedience.
• Hindutva Ideology: Critics claim it fostered religious divisions, while supporters see it as reviving Hindu identity. |
| [UPSC 2008] During the Indian Freedom Struggle, who of the following raised an army called ‘Free Indian Legion’?
Options: (a) Lala Hardayal (b) Rashbehari Bose (c) Subhas Chandra Bose * (d) V.D. Savarkar |
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Why in the News?
The Kerala Cabinet is exploring the legal possibility of introducing a bill to permit scientific and regulated culling of wild animals, particularly feral boars.
What are Vermins?
- Definition: Vermins are animals considered harmful or nuisance-causing because they damage crops, threaten livestock, or pose risks to human life and property.
- Examples: Common vermins include rats, mice, common crows, and fruit bats.
- Legal Effect: When an animal is classified as vermin, it loses legal protection and becomes exempt from conservation safeguards.
Provisions Related to Vermin in Wildlife Protection Act (WPA), 1972:
- Schedule V: Lists animals classified as vermin, which can be hunted freely.
- Section 62: Allows the central government to declare any wild animal (except those in Schedule I and Part II of Schedule II) as vermin for a specified area and time period.
- Protection Status: Once declared vermin, the animal is treated as a Schedule V species, losing protection.
- Exclusions: Animals in Schedules I and II (e.g., tigers, elephants) enjoy the highest protection and cannot be declared vermin.
- Section 11: Chief Wildlife Wardens can allow trapping, capture, or killing of animals like wild boars in cases of public safety or property damage.
- Wildlife Protection (Amendment) Act, 2022:
- Reduction of Schedules: From six to four, with Schedule V has been removed.
- Direct Declaration Power: It allows the Centre to directly declare any species (except those in Schedule I) as vermin, enabling broader culling without the older categorisation system.
How are Vermins Declared?
- State Initiation: The state sends a formal request to the Ministry of Environment, Forest and Climate Change (MoEFCC).
- Declaration: If justified, the Centre issues a notification, declaring the species vermin for a specific region and time frame.
- Temporary Status: This declaration is not permanent and applies only to the area and time mentioned.
- Examples:
- Wild boar in Uttarakhand
- Nilgai (blue bull) in Bihar
- Rhesus monkeys in Himachal Pradesh
| [UPSC 2024] Consider the following statements:
Statement-I: The Indian Flying Fox is placed under the “vermin” category in the Wild Life (Protection) Act, 1972.
Statement-II: The Indian Flying Fox feeds on the blood of other animals. Which one of the following is correct in respect of the above statements?
Options: (a) Both statement I and Statement II are correct and statement II explains statement I (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I (c) Statement- I is correct , but Statement II is incorrect* (d) Statement-I is incorrect, but Statement-II is correct |
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PYQ Relevance:
[UPSC 2013] The product diversification of financial institutions and insurance companies, resulting in overlapping of products and services strengthens the case for the merger of the two regulatory agencies, namely SEBI and IRDA. Justify.
Linkage: The structure and efficiency of financial sector regulation by discussing the potential merger of two key regulatory bodies (SEBI for capital markets and IRDA for insurance). In this article, talks about the reforming India’s Financial Sector” calls for a “coherent, forward-looking strategy that harmonises rules across verticals” and mentions the need for regulatory scrutiny and transparency. |
Mentor’s Comment: India’s financial sector is at a critical turning point. Even after years of policy changes, major problems remain — especially in areas like corporate bond markets, retirement savings, nomination rules across banks and financial services, and the growing risks from unregulated shadow banking. These aren’t just small technical issues; they are deep flaws that hurt investor confidence, customer safety, and the country’s economic strength.
Today’s editorial will talk about the issues related to the Financial sector in India. This content would help in GS Paper III ( Indian Economy).
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Let’s learn!
Why in the News?
There must be consistent rules across all financial sectors, support for a strong corporate bond market, active development of retirement savings options, and better regulation to control shadow banking.
What are the major structural issues plaguing India’s financial sector?
- Fragmented Nomination Rules Across BFSI Sectors: Inconsistent nomination rules in banks, mutual funds, and insurance create confusion and legal disputes. Eg: A person can nominate multiple people for a mutual fund but only one for a bank account, with different legal interpretations of nominee rights—leading to litigation among family members.
- Underdeveloped Corporate Bond Market: The bond market remains shallow, illiquid, and lacks transparency, increasing the cost of capital for businesses. Eg: The RBI once directed the NSE to build a secondary bond market, but the exchange prioritized more profitable equity trading instead.
- Opaque Capital Flows and Weak UBO Disclosures: Lack of transparency in identifying Ultimate Beneficial Owners (UBOs) hinders regulatory oversight. Eg: SEBI struggled to get ownership details from Mauritius-based Elara and Vespera Funds, delaying investigations into their Indian stock market investments.
- Unregulated Shadow Banking Activities: NBFCs and brokers offer bank-like services without full regulatory supervision, exposing the system to financial risks. Eg: Brokers provide margin funding to retail investors at interest rates over 20%, without clear disclosure—mirroring unregulated lending seen before the 2008 global financial crisis.
Why is a harmonised nomination framework across BFSI (Banking, Financial Services, and Insurance) verticals necessary?
- Reduces Legal Ambiguity: Different sectors (banks, mutual funds, insurance) treat nominees differently—causing confusion between nominee rights and legal heirs’ claims. Eg: A nominee in a mutual fund may only act as a trustee, while in a life insurance policy, the nominee may receive full benefits—leading to conflicting court battles.
- Prevents Exploitation of Loopholes: Inconsistent rules create loopholes that can be exploited by unscrupulous actors to divert funds or delay inheritance. Eg: A person can deliberately name different nominees across instruments to cause confusion or suppress rightful heir claims.
- Simplifies Compliance for Citizens: A uniform nomination system makes it easier for ordinary people to understand, update, and track their financial nominations. Eg: A senior citizen managing multiple accounts would benefit from a single, standard process rather than navigating different forms and rules for each institution.
- Reduces Litigation and Administrative Burden: Courts and financial institutions face prolonged legal disputes due to conflicting nominee laws, which could be avoided with uniformity. Eg: Banks and mutual funds spend years contesting claims when legal heirs and nominees disagree—slowing down asset transfer.
- Increases Trust and Transparency: Harmonisation builds trust in the financial system by making processes predictable and fair, thus encouraging formal savings. Eg: When savers know that nomination rules are clear and uniformly applied, they are more likely to invest in insurance or mutual funds without hesitation.
How can a well-developed corporate bond market benefit India’s economy?
- Lowers Cost of Capital for Businesses: A deep bond market enables companies to raise funds at competitive interest rates, reducing their dependence on bank loans. Eg: An efficient bond market could lower borrowing costs by 2–3%, improving viability for sectors like infrastructure and manufacturing.
- Diversifies Sources of Funding: It provides an alternative to bank financing, thereby reducing systemic risks and enhancing financial stability. Eg: Large firms like NTPC or Reliance can raise capital directly from investors through bonds, easing pressure on public sector banks.
- Encourages Long-Term Investment: Corporate bonds are ideal for funding long-gestation projects like highways, power plants, and green energy, attracting pension funds and insurance firms. Eg: The National Investment and Infrastructure Fund (NIIF) can tap bond markets to finance long-term infrastructure.
- Boosts Financial Market Development: A vibrant bond market leads to greater depth, liquidity, and transparency in the financial system. Eg: Countries like South Korea and Malaysia have developed strong bond markets that support efficient capital allocation.
- Enhances Retail Participation and Savings Mobilization: If made accessible and credible, bond markets can attract retail investors, expanding financial inclusion and mobilizing household savings. Eg: Government-backed platforms could offer secure corporate bonds to middle-class savers as an alternative to fixed deposits.
Who is responsible for regulating and curbing the risks of shadow banking in India?
- Reserve Bank of India (RBI): RBI regulates Non-Banking Financial Companies (NBFCs), ensuring they comply with capital adequacy, liquidity norms, and risk management frameworks. Eg: After the IL&FS crisis, RBI tightened norms on NBFCs’ asset-liability management and enhanced their supervision.
- Securities and Exchange Board of India (SEBI): SEBI oversees brokers, margin lenders, and mutual funds that may engage in shadow banking-like activities, ensuring transparency in trading and lending practices. Eg: SEBI took steps to curb margin funding risks offered by brokers to retail investors under complex lending structures.
- Ministry of Finance: The Ministry designs regulatory frameworks and inter-agency coordination, enabling RBI and SEBI to monitor and respond to emerging risks in shadow banking. Eg: The government supported RBI’s proposal to bring large NBFCs under bank-like regulations and backed a risk-based supervision model.
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Way forward:
- Unified and Risk-Based Regulatory Framework: Adopt a harmonised, activity-based regulation where entities performing similar financial functions are subjected to similar oversight, regardless of their institutional form. Eg: Apply the same capital, disclosure, and consumer protection standards to both NBFCs and banks offering credit, ensuring no regulatory arbitrage.
- Enhanced Supervisory Capacity and Real-Time Monitoring: Strengthen inter-agency coordination (RBI, SEBI, Ministry of Finance) and invest in AI-powered data analyticsto track complex transactions and hidden risks. Eg: Use advanced analytics to monitor NBFC balance sheets and digital lending platforms in real time, enabling early warning systems and prompt corrective action.
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Why in the News?
For the first time in India’s parliamentary history, the Deputy Speaker’s position stayed empty for the whole Lok Sabha term from 2019 to 2024, and now there is a chance it won’t be filled in the 18th Lok Sabha either.
Why is the Deputy Speaker’s vacancy a constitutional concern?
- Violation of Constitutional Provisions: Articles 93 and 94 require the Deputy Speaker to be elected “as soon as may be” and to hold office until resignation, removal, or disqualification. The prolonged vacancy violates this mandate, creating a constitutional vacuum. Eg: In the 17th Lok Sabha (2019-24), no Deputy Speaker was appointed despite the constitutional requirement.
- Undermines Parliamentary Democracy and Power Sharing: The Deputy Speaker’s post is traditionally given to an Opposition member to maintain checks and balances. Leaving it vacant concentrates power in the ruling party, weakening democratic resilience and the principle of shared authority. Eg: The refusal of the ruling party to offer the Deputy Speaker position to the Opposition breaks this longstanding convention.
- Risk of Constitutional Crisis and Legislative Disruption: The Deputy Speaker ensures the continuity of parliamentary proceedings if the Speaker resigns or is incapacitated. Without a Deputy Speaker, a constitutional crisis could arise, disrupting governance and legislative business. Eg: If the Speaker’s chair becomes vacant, the Deputy Speaker normally assumes duties; without one, the functioning of Parliament could be paralyzed.
What is the significance of Deputy speaker in Parliament?
- Ensures Continuity of Parliamentary Proceedings: The Deputy Speaker presides over the Lok Sabha when the Speaker is absent, ensuring that legislative businesscontinues smoothly without interruption. Eg: When the Speaker is unavailable due to illness or travel, the Deputy Speaker takes charge of the session.
- Acts as a Neutral and Impartial Arbiter: The Deputy Speaker plays a crucial role in maintaining fairness during debates and sensitive discussions, acting independently of the ruling party’s influence. Eg: The Deputy Speaker oversees debates on private member bills and ensures that all voices, including the Opposition, are heard.
- Maintains Democratic Balance and Power Sharing: By convention, the Deputy Speaker is usually from the Opposition, which helps uphold the spirit of power-sharing and checks and balances essential to parliamentary democracy. Eg: Offering the Deputy Speaker post to an Opposition member fosters cooperation and harmony between the ruling party and Opposition.
What are the key duties of the Deputy Speaker?
- Presides over Lok Sabha sessions in the Speaker’s absence: The Deputy Speaker conducts and manages the proceedings of the House with the same powers as the Speaker during such times. Eg: When the Speaker is unavailable, the Deputy Speaker presides over debates and voting sessions.
- Oversees important parliamentary committees: The Deputy Speaker chairs key committees like the Private Member’s Bill Committee and the House Budget Committee, facilitating legislative scrutiny. Eg: The Deputy Speaker leads discussions on private members’ bills ensuring smooth consideration and debate.
- Maintains impartiality and ensures fair conduct: The Deputy Speaker acts as a neutral arbitrator, ensuring orderly debates and protecting the rights of all members, including the Opposition. Eg: During sensitive or contentious discussions, the Deputy Speaker ensures that rules are followed and all sides get a fair hearing.
When should the Deputy Speaker be elected as per Article 93?
- Article 93 states that the Deputy Speaker must be elected “as soon as may be” after the House of Lok Sabha is constituted.
- The phrase implies a sense of urgency and necessity, not discretionary or indefinite delay. This means the election should happen immediately or without unreasonable delay following the formation of the new Lok Sabha.
- The Deputy Speaker continues in office until resignation, removal, or disqualification as per Article 94, ensuring continuity.
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Way forward:
- Timely Election of Deputy Speaker to Uphold Constitutional Mandate: The government and all parliamentary parties should prioritize the election of the Deputy Speaker “as soon as may be” as mandated by Articles 93 and 94 to avoid constitutional vacuum, ensure smooth functioning of the Lok Sabha, and maintain democratic resilience.
- Respecting the Convention of Power Sharing with the Opposition: To strengthen parliamentary democracy, the ruling party should adhere to the established convention of offering the Deputy Speaker post to an Opposition member. This would foster bipartisan cooperation, reinforce checks and balances, and promote harmonious functioning of the House.
Mains PYQ:
[UPSC 2024] Discuss the role of Presiding Officers of state legislatures in maintaining order and impartiality in conducting legislative work and in facilitating best democratic practices.
Linkage: The role of presiding officers in legislative bodies (at the state level, analogous to the Deputy Speaker in Lok Sabha). This article emphasizes that the Deputy Speaker oversees debates and serves as a neutral arbiter.
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Why in the News?
Recently, the CEO of NITI Aayog announced that India has moved ahead of Japan to become the world’s fourth-largest economy.
What is the key difference between nominal GDP and PPP-based GDP?
- Nominal GDP: Measured using current market exchange rates in US dollars. Eg: If India’s GDP is ₹270 lakh crore and $1 = ₹75, then nominal GDP = ₹270 lakh crore ÷ 75 = $3.6 trillion.
- PPP-Based GDP: Adjusted for differences in the cost of living and price levels between countries. Eg: If goods and services are cheaper in India, PPP adjusts the GDP upward to reflect greater actual consumption — India’s GDP could be $12 trillion in PPP terms, even though nominal GDP is lower.
When did India become the third-largest economy by PPP estimates?
In 2009, India overtook Japan in PPP-based GDP. This milestone occurred during the tenure of the Manmohan Singh-led UPA government. India has retained the 3rd position ever since, behind only China and the United States. The PPP-based ranking reflects India’s large population and lower cost of living, which boosts its effective domestic consumption. |
How do exchange rates affect nominal GDP rankings?
- Conversion Dependency: Nominal GDP is calculated in US dollars, so a country’s GDP in local currency must be converted using the exchange rate. Eg: If India’s GDP is ₹300 lakh crore and $1 = ₹75, its dollar GDP would be $4 trillion; but if $1 = ₹85, the same GDP becomes $3.5 trillion.
- Exchange Rate Fluctuations Can Distort Rankings: A country’s global GDP rank can change without any real economic growth or decline, simply due to currency appreciation or depreciation. Eg: If the Japanese yen strengthens against the dollar, Japan’s nominal GDP in dollars rises—even if its actual output hasn’t changed.
- Unfair Comparison Across Countries: Countries with volatile or weakening currencies may appear smaller in nominal terms than they are in real domestic terms. Eg: India’s GDP may seem lower than the UK’s in nominal terms due to a weaker rupee, even if India produces more goods and services overall.
Why is per capita GDP more reflective of individual prosperity?
- Accounts for Population Size: Per capita GDP divides total GDP by the population, showing the average income per person, unlike aggregate GDP which may hide disparities. Eg: India’s GDP is higher than the UK’s in total, but because India has over 20 times the population, its per capita GDP is much lower.
- Better Indicator of Living Standards: It reflects the average economic well-being and purchasing power of citizens, making it more relevant for assessing prosperity. Eg: A country with $50,000 per capita GDP (like the UK) offers far better public services, infrastructure, and living conditions than one with $2,800 (like India), even if total GDPs are comparable.
- Highlights Income Distribution and Development Needs: Low per capita GDP suggests widespread poverty or unequal wealth distribution, even if overall GDP is growing. Eg: Despite being the world’s 5th largest economy, India’s low per capita GDP shows most individuals have limited incomes and access to economic benefits.
What does India’s per capita GDP reveal compared to the UK’s?
| Aspect |
India |
UK |
Example |
| Per Capita GDP (2025) |
10,020 PPP dollars |
58,140 PPP dollars |
UK’s per capita income is ~6 times higher than India’s. |
| Living Standards & Services |
Lower access to quality services |
Higher standard of living, social welfare |
Indians have limited access to healthcare, education, and housing |
| Economic Inequality & Prosperity |
Aggregate GDP is growing, but benefits are not evenly distributed |
Prosperity is more widely shared |
Despite India’s growth, individual prosperity remains low on average. |
Way forward:
- Invest in Human Capital and Social Infrastructure: India must enhance spending on education, healthcare, and skill development to improve productivity and raise per capita incomes. Improved human capital directly boosts innovation, employability, and long-term economic growth.
- Focus on Inclusive and Equitable Growth: Policies should ensure that economic gains are widely distributed, especially through rural development, MSME support, and targeted welfare schemes. This will reduce income disparities and lift more people into the formal, productive economy, improving per capita prosperity.
Mains PYQ:
[UPSC 2022] Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India.
Linkage: India’s high aggregate economic rank alongside low per capita income, raises questions about how India’s economic growth model is translating into shared prosperity, a central theme of inclusive growth. This question explicitly asks about the possibility and mechanisms (like financial inclusion) of achieving “inclusive growth” within a market economy.
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Why in the News?
The defence minister has cleared the execution model for the Advanced Medium Combat Aircraft (AMCA) project, where Hindustan Aeronautics Limited (HAL) must now compete with private companies for the production contract under a new industry partnership model.
About the AMCA Project:
- Overview: The Advanced Medium Combat Aircraft (AMCA) is India’s fifth-generation stealth fighter being developed by ADA under DRDO.
- Approval: The project received Cabinet Committee on Security (CCS) approval in March 2024, with a budget of ₹15,000 crore.
- Timeline: The first prototype is expected by 2028–29, production by 2032–33, and induction by 2034.
- Key Features:
- Stealth design, internal weapons bay, and diverterless supersonic intake.
- Payload: 1,500 kg internal and 5,500 kg external.
- Fuel: Internal capacity of 6,500 kg.
- Development Phases:
-
- AMCA Mk1 will use the GE F-414 engine.
- AMCA Mk2 will have a co-developed engine with France’s Safran.
- Strategic Importance: AMCA will help India counter threats from regional powers like China, which already deploy J-20 and J-35 fighters.
What are 5th Generation Fighter Aircrafts?
- Definition: Fifth-generation fighters are the most advanced combat aircraft in service today.
- Examples: Include the F-22 and F-35 (USA), Su-57 (Russia), and J-20 (China).
- Core Features:
- Stealth technology to avoid radar detection.
- Beyond-visual-range (BVR) combat capabilities.
- AI-based systems and automated battle management.
- Roles: These jets can perform air combat, surveillance, and ground attacks with precision and multi-role capability.
What does “Generation” mean in Fighter Aircrafts?
- Classification: Fighter jets are grouped by technological advances that can’t be added through upgrades.
- Evolution:
- 1st–3rd Gen: Basic jets with limited speed and weaponry.
- 4th Gen: Improved radar, manoeuvrability, and precision weapons (e.g., Rafale, Su-30MKI).
- 5th Gen: Introduces stealth, super-cruise, sensor fusion, and electronic warfare.
- Comparative Use: While not a perfect measure, “generation” helps compare air force capabilities across countries.
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| [UPSC 2025] With reference to India’s defence, consider the following pairs:
Aircraft type: Description
I. Dornier-228: Maritime patrol aircraft
II. IL-76: Supersonic combat aircraft
III. C-17 Globemaster III: Military transport aircraft
How many of the pairs given above are correctly matched?
Options: (a) Only one (b) Only two* (c) All three (d) None |
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Why in the News?
Sikkim’s CM has asked the Centre to ban climbing on Mt. Khangchendzonga, even from the Nepal side, as the mountain is sacred to the Sikkimese and seen as a guardian deity.
About Mt. Khangchendzonga:
- Location: Mt. Khangchendzonga is the third-highest mountain in the world at 8,586 metres, located on the India-Nepal border in the eastern Himalayas.
- Major Glaciers and Rivers: It is surrounded by Zemu, Talung, Yalung, and Kanchenjunga glaciers and bordered by rivers like Tamur, Lhonak, and Teesta.
- Etymology: Known as the “Five Treasuries of the Great Snow”, due to its five towering peaks, all above 8,000 metres.
- Geological Age: The mountain rocks are between 445 million to 1 billion years old, from the Neoproterozoic to Ordovician periods.
- Ecological Zone: Located within Khangchendzonga National Park, a UNESCO World Heritage Site, rich in altitude diversity and rare species.
- Wildlife and Ecosystems: Home to snow leopards, red pandas, musk deer, and Asiatic black bears, along with over 220 glacial-fed water bodies.
- Hydrological Importance: It is the highest point in the Brahmaputra basin, contributing water to both the Ganges and Kosi River systems.
- Climate: Receives heavy monsoon snowfall and lighter winter snow.
Religious and Cultural Significance:
- Spiritual Status: The mountain is sacred in Sikkim and Nepal, embedded in local mythology and Buddhist traditions.
- Symbolism of the Name: The “5 Treasuries” are believed to hold salt, gold, turquoise, sacred texts, grain, medicine, and other treasures.
- Guardian Deity: It is considered the home of Dzoe-Nga, the chief protector deity of Sikkim, known as Pho-lha.
- Mythological Roots: Local guardian deities were blessed by Guru Padmasambhava, the patron saint of Sikkim.
- Climbing Ban: The Sikkim government banned climbing on the mountain in 1998 and 2001 under the Sacred Places of Worship Act, 1991, to preserve its sanctity.
| [UPSC 2024] Consider the following pairs:
Peak: Mountains
1. Namcha Barwa — Garhwal Himalaya
2. Nanda Devi — Kumaon Himalaya
3. Nokrek — Sikkim Himalaya
Which of the pairs given above is/are correctly matched?
Options: (a) 1 and 2 (b) 2 only* (c) 1 and 3 (d) 3 only |
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Why in the News?
Scientists at Stanford University discovered that TR1 cells play a dominant role in fighting malaria reinfections.
Understanding the Body’s Immune Response:
- What is the Immune System? It’s the body’s defence system that protects us from infections like malaria.
- First Defence: The skin and body surfaces block germs from entering.
- Innate Immunity: If germs get in, the innate immune system reacts fast, like an emergency response team.
- Adaptive Immunity: Then, the adaptive immune system kicks in, targeting germs specifically and remembering them for future protection.
- B-Cells and T-Cells:
- B-cells make antibodies to fight germs.
- T-cells attack infected cells and guide other immune cells.
- Helper T-Cells: A type called CD4+ T-cells helps organise the defence. Earlier, scientists thought TH1 cells were key in malaria, but a new study shows TR1 cells are more important, especially in repeat infections.
What are TR1 Cells?
- Role of TR1 Cells: These are special T-cells that help control the immune system and prevent overreaction.
- Major Response in Malaria: Though small in number, during malaria, TR1 cells become the main helper cells.
- Study in Uganda: In young children with repeated malaria, TR1 cells grew in number and improved the body’s ability to fight malaria without severe illness.
- Memory and Immunity: TR1 cells remember the malaria parasite and return stronger with each infection.
- Types of TR1 Cells:
- Naïve TR1 – not yet active.
- Effector TR1 – fighting infection.
- Memory TR1 – remembering past infections.
- Epigenetic Role: TR1 cells may respond by switching genes on or off, not by changing the genes themselves.
Key Findings of the Study:
- Research Team: Scientists from Stanford University studied people in Uganda over many months and years.
- Tracking Infections: They followed individuals through multiple malaria infections to see how immune cells behaved.
- Gene Scanning: A special technique was used to read the genes of each immune cell — like scanning a barcode.
- Findings: TR1 cells were accurate, long-lasting, and clearly connected to malaria (not other infections).
- Why it matters: This discovery can help in making better malaria vaccines, boosting long-term protection, and even improving treatments for other serious diseases.
| [UPSC 2025] With reference to monoclonal antibodies, consider the following:
I. They are man-made proteins. II. They stimulate the patient’s immune system to fight the specific disease. III. They are produced using animal cells only.
Which of the statements given above are correct?
Options: (a) I and II only (b) II and III only (c) I and III only (d) All the three * |
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Why in the News?
The Cabinet Committee on Economic Affairs chaired by Prime Minister has approved the increase in the Minimum Support Price (MSP) for 14 kharif crops for 2025-26.
What is the Minimum Support Price (MSP)?
- MSP in India originated in response to food shortages in the 1960s, notably during the Bihar famine of 1966–1967.
- Agricultural Price Commission (APC) was established in 1965 to implement price policies like procurement at pre-decided prices and MSP.
- Over time, the APC evolved into the Commission for Agricultural Costs and Prices (CACP) in 1985, with broader terms of reference.
- Announcement: The government bases its announcement on the recommendations given by the Commission for Agricultural Costs & Prices (CACP).
Steps involved in Fixing MSPs:
- CACP sends its recommendations to the Government of India.
- The reports are shared with state governments and concerned central ministries for comments.
- After reviewing all inputs, the Cabinet Committee on Economic Affairs (CCEA) takes the final decision on MSPs.
- Once approved, CACP publishes all its reports online, ensuring transparency and explaining the rationale behind its recommendations.
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How is MSP fixed?
- Formulae for Calculation:
- A2: Costs incurred by the farmer in production of a particular crop. It includes several inputs such as expenditure on seeds, fertilisers, pesticides, leased-in land, hired labour, machinery and fuel
- A2+FL: Costs incurred by the farmer and the value of family labour
- C2: A comprehensive cost, which is A2+FL cost plus imputed rental value of owned land plus interest on fixed capital, rent paid for leased-in land
- National Commission of Farmers also known as the Swaminathan Commission (2004) recommended that the MSP should at least be 50 per cent more than the weighted average Cost of Production (CoP), which it refers to as the C2 cost.
- The government maintains that the MSP was fixed at a level of at least 1.5 times of the all-India weighted average CoP, but it calculates this cost as 1.5 times of A2+FL.
- Crops covered are: CACP currently recommends MSPs for 23 key crops:
-
- 7 Cereals: Paddy, Wheat, Maize, Sorghum (Jowar), Pearl Millet (Bajra), Barley, and Ragi
- 5 Pulses: Gram (Chana), Tur (Arhar), Moong, Urad, and Lentil (Masur)
- 7 Oilseeds: Groundnut, Rapeseed-Mustard, Soybean, Sesame, Sunflower, Safflower, and Nigerseed
- 4 Commercial Crops: Copra, Cotton, Raw Jute and Sugarcane (Fair and Remunerative Price (FRP) is announced by CACP.)
| [UPSC 2020] Consider the following statements:
1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
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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Why in the News?
The Supreme Court Collegium has recommended the transfer of 4 Chief Justices from the High Courts of Madras, Rajasthan, Tripura, and Jharkhand.
About the Collegium System:
- Definition: It is used in India for the appointment and transfer of judges to the Supreme Court and High Courts.
- Non-Constitutional Origin: It is not mentioned in the Constitution or any law passed by Parliament. It developed through Supreme Court judgments to protect judicial independence.
- Judicial Primacy: The system ensures that senior judges, not the government, have the main say in judicial appointments.
- Evolution: It arose in response to executive interference during the 1970s, when the government tried to influence and supersede senior judges:
- First Judges Case (1981) – S.P. Gupta v. Union of India:
- Held that the Chief Justice’s opinion was only consultative.
- Gave the executive primary control over appointments and transfers.
- Second Judges Case (1993) – Advocates-on-Record Association v. Union of India:
- Overruled the First Judges Case.
- Declared that “consultation” with the CJI means “concurrence”, making the CJI’s view binding.
- Introduced the Collegium system, involving the CJI and two senior-most judges.
- Affirmed that judicial independence requires judicial primacy in appointments.
- Third Judges Case (1998) – Re: Presidential Reference:
- Expanded the Collegium to include the CJI and four senior-most Supreme Court judges.
- Emphasised institutional decision-making, not personal preferences of individual judges.
How does the Collegium System works?
- For Supreme Court Judges:
- The Collegium includes the CJI and four senior-most SC judges.
- It recommends names for appointments to the SC and appointments/transfers of High Court judges and Chief Justices.
- The Law Ministry processes these names and sends them to the Prime Minister, who advises the President for final approval.
- For Appointing the Chief Justice of India:
- The sitting CJI recommends the senior-most SC judge.
- This practice has been followed since the 1970s supersession controversy.
- For High Court Judges:
- Recommendations start from the Chief Justice of the High Court, who consults two senior colleagues.
- The proposal goes to the state government, then to the Supreme Court Collegium (CJI and two senior-most SC judges), and finally to the President.
- For Transfers of Judges:
- Article 222 of the Constitution allows transfer of High Court judges.
- The Collegium recommends transfers, often for administrative needs or public interest.
- Consent is not needed, but the CJI must consult the Chief Justice of the concerned High Court and other senior judges.
- No High Court can have an Acting Chief Justice for more than a month, so transfers and new appointments are usually done together.
Tap to know more about the Appointment and Removal of HC Judges.
| [UPSC 2012] What is the provision to safeguard the autonomy of the Supreme Court of India?
1. While appointing the Supreme Court Judges, the President of India has to consult the Chief Justice of India. 2. The Supreme Court Judges can be removed by the Chief Justice of India only. 3. The salaries of the Judges are charged on the Consolidated Fund of India to which the legislature does not have to vote. 4. All appointments of officers and staff of the Supreme Court of India are made by the Government only after consulting the Chief Justice of India. Which of the statements given above is/are correct?
Options: (a) 1 and 3 only * (b) 3 and 4 only (c) 4 only (d) 1, 2, 3 and 4 |
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PYQ Relevance:
[UPSC 2019] The time has come for India and Japan to build a strong contemporary relationship, one involving global and strategic partnership that will have a great significance for Asia and the world as a whole.’ Comment.
Linkage: The term “strategic partnership” in the context of India’s relationship with another major country (Japan). It is directly analogous to the India-Germany strategic partnership and prompts discussion on its global and regional significance, mirroring the description in article. |
Mentor’s Comment: India and Germany have built a strong bilateral relationship based on shared democratic values, economic complementarity, and a common vision for global peace and sustainable development. Germany launched its dedicated ‘Focus on India’ strategy and committed €10 billion under the Indo-German Green and Sustainable Development Partnership (GSDP). Over 2,000 German companies now operate in India, generating 750,000 jobs. With 50,000 Indian students studying in Germany and expanding business integration, both countries have transformed their partnership from a transactional engagement into a strategic, transformational alliance.
Today’s editorial will discuss the relationship between India and Germany. This content would help in GS Paper II ( International Relations).
_
Let’s learn!
Why in the News?
his month marks 25 years of the Indo-German Strategic Partnership, celebrating a key milestone in their growing ties, shared goals, and long-standing cooperation across defence, economy, and sustainability.
What are the Key Pillars of the India-Germany partnership?
- Peace: Both countries share a vision of a peaceful, stable, and rules-based world. Eg: Regular Intergovernmental Government Consultations that strengthen political ties and cooperation.
- Prosperity: Focuses on economic growth, job creation, and improving quality of life. Eg: Around 2,000 German companies operate in India, creating more than 750,000 jobs.
- People-to-People Ties: Cultural and educational exchanges deepen bilateral relations. Eg: Over 50,000 Indian students study in Germany, the largest foreign student group there.
- Future of the Planet (Green Development): Cooperation on climate change, renewable energy, and sustainability projects. Eg: Germany’s €10 billion Indo-German Green and Sustainable Development Partnership supporting solar and wind projects in Gujarat.
- Technology and Innovation Collaboration: Joint scientific research and integration in high-tech industries. Eg: Indian researchers in top German institutions and operation of Delhi-Meerut Rapid Rail by Deutsche Bahn.
How has defence cooperation progressed recently?
- First Joint Exercise: In August 2024, Germany’s Air Force participated in Exercise Tarang Shakti at Sulur, marking the first-ever India-Germany joint military exercise on Indian soil. Eg: The exercise included advanced jets like Germany’s Eurofighter Typhoon, France’s Rafale, and India’s LCA Tejas.
- High-Level Interoperability: Senior military leaders from India, Germany, France, and Spain took part, showcasing enhanced coordination and joint operations. Eg: A joint sortie involved Air Chief Marshal V. R. Chaudhari (India), Lieutenant General Ingo Gerhartz (Germany), General Stéphane Mille (France), and Air General Francisco Braco Carbo (Spain).
- Strategic Defence Ties: The exercise paves the way for deeper defence collaboration and future joint initiativesbetween India and Germany. Eg: Germany’s participation aligns with its strategic interest in the Indo-Pacific region amid shifting global power dynamics.
Why is the Green and Sustainable Development Partnership important?
- Climate Action and Energy Transition: The partnership is vital for accelerating India’s shift towards clean energy and meeting its climate commitments. Eg: Germany pledged €10 billion to support India’s goal of achieving 500 GW of non-fossil fuel capacity by 2030, through initiatives in solar, wind, and green hydrogen sectors.
- Sustainable Urban Development and Mobility: It promotes eco-friendly infrastructure and efficient public transport systems in growing urban centres. Eg: German-backed metro projects and Smart Cities initiatives in Nagpur and Pune have helped advance green mobility and urban resilience.
- Biodiversity Conservation and Climate Resilience: The partnership helps protect ecological zones while enhancing local livelihoods and climate adaptability. Eg: Joint projects in the Western Ghats and Himalayas focus on afforestation, biodiversity conservation, and water resource management.
Where are major Indo-German projects being implemented in India?
- Gujarat – Renewable Energy Projects: Gujarat hosts large-scale solar and wind energy initiatives under the Green and Sustainable Development Partnership (GSDP). Eg: German companies are contributing to the production of wind turbine blades and setting up solar parks in the state.
- Delhi-Meerut – Rapid Rail Project: India’s first Regional Rapid Transit System (RRTS) between Delhi and Meerut is operated in partnership with Deutsche Bahn, Germany’s national railway operator. Eg: The project showcases Indo-German cooperation in high-speed rail and urban mobility.
- Maharashtra – Smart Cities and Urban Infrastructure: German collaboration supports urban planning, sustainable transport, and waste management under the Smart Cities Mission. Eg: Pune and Nagpur are key cities benefiting from German-backed smart infrastructure initiatives.
- Himachal Pradesh & Uttarakhand – Biodiversity and Climate Projects: Joint efforts are underway to protect forests, watersheds, and biodiversity in India’s ecologically sensitive hill states. Eg: Indo-German projects focus on climate-resilient agriculture, forestation, and ecosystem preservation.
- Tamil Nadu – Defence Collaboration and Skill Development: The Tarang Shakti 2024 exercise at Sulur Air Force Station marked a high point in joint military training. Eg: It highlights growing defence cooperation and also supports local capacity-building in the aerospace sector.
Way forward:
- Deepen Strategic and Technological Collaboration: Expand cooperation in defence manufacturing, AI, green hydrogen, and critical technologies to strengthen strategic autonomy and shared innovation goals.
- Enhance Sustainable Development and People-Centric Ties: Accelerate green partnerships, vocational training, and student exchanges to promote inclusive growth, climate resilience, and stronger people-to-people engagement.
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Why in the News?
Under President Trump, the U.S. withdrew from key global commitments like WHO and the Paris Agreement. Meanwhile, China is expanding influence by offering financial aid and increasing global investments.
Why has the U.S. withdrawn from key international bodies like the WHO and the Paris Agreement?
- Perceived Bias and Mismanagement: The U.S. accused the World Health Organization (WHO) of being biased towards China and mismanaging the COVID-19 pandemic response. Eg: President Trump alleged that the WHO failed to hold China accountable during the early stages of the outbreak.
- Disproportionate Financial Burden: The U.S. claimed it was contributing significantly more than other countries, creating an unfair financial burden. Eg: The U.S. contributed around 20% of the WHO’s assessed funding, while China contributed much less until recently.
- Rejection of Global Climate Commitments: The Trump administration viewed international climate agreements like the Paris Agreement as detrimental to American economic interests. Eg: The U.S. withdrew from the Paris Agreement and announced it would cease all financial commitments under the UNFCCC.
What steps has China taken to increase its global influence in response to the U.S.’s retreat?
- Increased Financial Contributions to Global Institutions: China has significantly raised its funding to international bodies like the WHO to fill the vacuum left by the U.S. Eg: After the U.S. announced its withdrawal from the WHO, China pledged an additional $500 million over five years and increased its assessed contribution from 6.5% (2015–16) to 15% (2024–25).
- Expansion of Bilateral Lending and Debt Diplomacy: China has extended massive loans to developing countries, becoming a dominant bilateral creditor globally. Eg: China’s share in global bilateral sovereign debt rose from around 1% in 2003 to 26% in 2023, making it the largest lender worldwide.
- Strategic Soft Power and Infrastructure Investments: China has expanded its Belt and Road Initiative and other overseas investments to enhance influence and dependency. Eg: China’s investments across Asia, Africa, and Latin America have increased, with more than 60% of respondents in a 2024 Pew survey acknowledging China’s economic influence in their countries.
How has China’s financial contribution to the WHO changed after the pandemic?
- Increased Assessed Contributions: China’s assessed contribution to the WHO rose from 6.5% in 2015–16 to 15% in 2024–25. This increase reflects China’s growing economic stature and its commitment to global health initiatives.
- Significant Financial Pledges: In response to the U.S. withdrawal from the WHO, China pledged an additional $500 million over five years to support the organization’s activities. This move positions China as a leading state donor and underscores its intent to enhance its influence in global health governance.
Where does China stand in terms of global bilateral debt holdings compared to the U.S.?
- China as the Leading Bilateral Creditor: As of 2023, China holds approximately 26% of the external bilateral debt of developing countries, making it the largest bilateral creditor globally. Eg: China is the primary bilateral creditor for 53 countries and ranks among the top five creditors in three-quarters of all developing nations.
- Decline in U.S. Bilateral Lending: The U.S.’s share in global bilateral debts has significantly decreased over the decades. Eg: In 1973, the U.S. held 36% of global bilateral debt, but by 2023, this share had dropped to just 4%.
- China’s Influence on Debt Repayments: China’s substantial lending has led to a significant portion of debt repayments from developing countries being directed to it. Eg: In 2025, developing countries are projected to allocate over 30% of their bilateral debt service payments to China, surpassing payments to multilateral lenders and private creditors.
What is the status of India in soft power?
- Strong Cultural Influence Globally: India’s rich culture, including yoga, Bollywood, and its large diaspora, enhances its global soft power. Eg: The International Day of Yoga is celebrated worldwide, promoting Indian culture and wellness.
- Growing Economic and Diplomatic Presence: India is increasing its influence through diplomacy, international aid, and participation in global forums. Eg: India’s development projects and humanitarian aid in Africa and neighboring countries strengthen its soft power.
- Challenges Affecting Soft Power Projection: Internal challenges like social issues and governance impact India’s image abroad. Eg: India’s ranking slipped to 29th in the 2024 Global Soft Power Index, indicating room for improvement.
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Way forward:
- Strengthen Multilateral Engagements and Global Leadership: India should actively enhance its financial and diplomatic contributions to key international bodies like WHO and climate forums to build credibility and influence, positioning itself as a responsible global leader.
- Leverage Cultural Diplomacy While Addressing Domestic Challenges: Amplify India’s soft power by promoting cultural exports and diaspora ties, while simultaneously improving governance and addressing social issues to boost its global image and rankings.
Mains PYQ:
[UPSC 2024] The USA is facing an existential threat in the form of a China, that is much more challenging than the erstwhile Soviet Union.’ Explain
Linkage: The depiction of China advancing its position while the U.S. is perceived as pulling back, creating a dynamic of increased competition and challenge between the two powers. This question presents the U.S. perspective on China as a major challenge.
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Why in the News?
Despite rising power deficits amid urbanisation and climate pressures, India’s UJALA scheme showcases energy efficiency’s impact—saving $10B and 9,500 MW—highlighting efficiency over mere capacity expansion.
What challenges does India face in meeting its peak power demand?
- Rising Peak Demand due to Urbanisation and Climate Change: Rapid urbanisation and increasing use of cooling appliances during hotter summers have significantly increased electricity demand. Eg: In 2023–24, India’s peak power demand reached 250 GW, making it the third-largest power consumer globally.
- Slow Expansion of Power Generation Capacity: Building new power plants, especially coal-based, is capital- and time-intensive, which cannot keep pace with rising demand. Eg: Despite efforts, power deficit widened from 0.69% in FY20 to about 5% in FY24, reflecting supply constraints.
- Integration Challenges with Renewable Energy: While renewables are growing, their intermittent nature and grid integration issues limit their effectiveness in meeting peak demand. Eg: Solar and wind power face supply variability, making it difficult to meet peak-hour requirements consistently.
What is UJALA Scheme?
The UJALA scheme (Unnat Jyoti by Affordable LEDs for All) is a flagship energy efficiency program launched by the Government of India in 2015. It aims to promote energy-saving lighting solutions by distributing LED bulbs, tube lights, and energy-efficient fans at affordable prices
How has the UJALA scheme contributed to energy efficiency and savings?
- Massive Reduction in Power Consumption: The scheme distributed over 37 crore LED bulbs and enabled the sale of 407 crore more, replacing energy-inefficient lighting. Eg: LED bulbs consume half the power of CFLs and 1/9th the power of incandescent bulbs, leading to major power savings in households.
- Reduction in Peak Demand and Generation Needs: By improving lighting efficiency nationwide, UJALA helped reduce peak power demand by over 1,500 MW. Eg: It avoided the need to build 9,500 MW of new power capacity—equivalent to 19 new 500 MW coal-fired plants.
- Lower Costs and Emissions: UJALA reduced the cost of LED bulbs from ₹500 to ₹70, making them accessible and cutting emissions. Eg: The scheme has helped India save over $10 billion and significantly reduced CO₂ emissions.
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Why is enhancing energy efficiency crucial for India’s energy future?
- Bridges the Gap Between Demand and Supply: India faces a widening peak power deficit (from 0.69% in FY20 to ~5% in FY24) despite increased generation. Eg: Energy efficiency helps reduce demand quickly—schemes like UJALA lowered peak demand by 1,500 MW, easing pressure on the grid.
- Delays the Need for New (Often Fossil-Based) Power Plants: Building new fossil-fuel-based power plants is time-consuming and costly. Eg: Efficiency measures like LED lighting under UJALA avoided building 19 new coal plants (9,500 MW)—cutting cost, time, and pollution.
- Supports Climate Goals and Reduces Emissions: India’s energy mix still depends 70% on coal, worsening climate and pollution. Eg: Energy efficiency improvements between 2000–2018 helped avoid 300 Mt of CO₂ emissions, according to the International Energy Agency.
Where can further energy efficiency mandates be applied in India?
- Buildings and Construction Sector: Residential and commercial buildings consume significant energy, especially for cooling and lighting. Eg: Mandating energy-efficient designs and green building codes (like ECBC) in urban housing projects can reduce long-term electricity use.
- Home Appliances: Many households still use inefficient devices that consume more electricity. Eg: Expanding BEE’s star-rating program to cover more appliances like fans, refrigerators, and ACs can push consumers toward efficient options.
- Micro, Small and Medium Enterprises (MSMEs): MSMEs often use outdated machinery that wastes energy. Eg: Energy audits and subsidized upgrades in sectors like textiles or ceramics can reduce energy costs and improve competitiveness.
Way forward:
- Invest in Grid Flexibility and Energy Storage: Promote battery storage, pumped hydro, and smart grid systems to manage peak loads and integrate renewable energy reliably.
- Strengthen Energy Efficiency Mandates: Enforce stricter efficiency norms for buildings, appliances, and MSMEs, backed by incentives, audits, and awareness campaigns.
Mains PYQ:
[UPSC 2016] “Give an account of the current status and the targets to be achieved pertaining to renewable energy sources in the country. Discuss in brief the importance of National Programme on Light Emitting diodes (LEDs).”
Linkage: Despite growth in electricity generation, including recent additions of renewable energy, India has faced peak power demand deficits. While adding new power production capacity takes time, especially for fossil fuels, focusing on energy efficiency is presented as the quickest and least expensive way to address rising power demand and climate change. This question is highly relevant as it specifically asks about renewable energy targets and the importance of the National Programme on LEDs.
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Why in the News?
New Delhi recently faced a severe thunderstorm with winds up to 100 kmph, forming a bow echo — a crescent-shaped pattern seen on weather radar.
About Bow Echo:
- What is it: A bow echo is a storm pattern on radar that looks like a curved bow, similar to an archer’s bow.
- Storm Type: It forms inside a mesoscale convective system (MCS) — a large group of organised thunderstorms.
- Origin of Term: The term was first used by Ted Fujita, who also created the Fujita scale for tornadoes.
- How It Forms:
- Heavy rain causes cool air to sink and spread out near the ground.
- This cool air forms a gust front, which pushes warm, moist air upward, creating new storms.
- A rear inflow jet — strong mid-level winds — pushes the storm forward, bending it into a bow shape.
- Bookend vortices may form at both ends of the bow, and the northern end can sometimes generate tornadoes.
Size, Impact, and Dangers:
- Size and Duration: Bow echoes usually span 20 to 200 km and last 3 to 6 hours.
- Wind Strength: They often produce straight-line winds over 100 km/h, like those seen in Delhi’s recent storm.
- Derechos: In severe cases, bow echoes can grow into derechos, which are long-lasting and widespread windstorms.
- Impacts:
- Damaging Winds: Knock down trees, power lines, and damage buildings.
- Brief Tornadoes: May form at the storm’s edges, especially at the northern end.
- Microbursts and Downbursts: Intense short-lived wind blasts within the storm that cause local destruction.
| [UPSC 2013] During a thunderstorm, the thunder in the skies is produced by the-
1. Meeting of cumulonimbus clouds in the sky 2. Lightning that separates the nimbus clouds 3. Violent upward movement of air and water particles.
Select the correct answer using the codes given below.
Options: (a) 1 only (b) 2 and 3 (c) 1 and 3 (d) None of the above produces the thunder* |
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