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  • Food Safety Standards – FSSAI, food fortification, etc.

    Maintaining India’s progress in food safety standards

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

    Why in the News?

    World Food Safety Day 2025 is observed with the theme “Food Safety: Science in Action.” It highlights India’s progress in food safety, though there are still some gaps to address.

    What is the theme of World Food Safety Day 2025?

    Theme: “Food Safety: Science in Action”. It emphasizes the importance of applying science to ensure food safety.

    How does it reflect India’s evolving approach to food safety?

    • Shift from Adulteration to Risk-Based Framework: Earlier, the Prevention of Food Adulteration (PFA) Act, 1954 focused on whether food was adulterated or not. The Food Safety and Standards Act, 2006 introduced a scientific, risk-based approach through the creation of FSSAI.
    • Adoption of International Scientific Standards: India aligned its food regulations with global norms like those of the Codex Alimentarius Commission. Eg: Standards for Maximum Residue Limits (MRLs) and Acceptable Daily Intake (ADI) values are now scientifically defined.
    • Efforts to Strengthen Scientific Capacity: India is focusing on generating its own toxicological data and conducting Total Diet Studies (TDS) to suit local needs. Eg: Indian-specific dietary patterns and environmental factors are being considered to improve food safety regulations.

    What are Toxicology Studies?

    These are scientific assessments that evaluate the harmful effects of chemicals or substances (like pesticides, additives, contaminants) on living organisms, especially humans.

    Why are India-specific toxicology studies important for food safety?

    • Reflect Local Dietary Habits: International toxicology data may not match Indian dietary patterns and consumption levels. Eg: An average Indian may consume more rice or spices than Western populations, affecting exposure to contaminants.
    • Consider Unique Agricultural Practices: India’s crop varieties, pesticide usage, and farming methods differ from global practices. Eg: Pesticide residues on Indian-grown vegetables may vary significantly compared to Europe, requiring tailored safety limits.
    • Account for Environmental and Genetic Differences: Climate, water quality, and genetic factors influence how toxins impact health in India. Eg: Heavy metal contamination in groundwater in Indian regions could cause higher cumulative exposure, not captured by foreign studies.

    What is monosodium glutamate (MSG)? 

    MSG is a flavour enhancer commonly added to food to intensify the umami taste (a savoury flavour). It is the sodium salt of glutamic acid, a naturally occurring amino acid found in many foods.

    How has the regulation of monosodium glutamate (MSG) in India differed from global practices?

    • Continued Use of Outdated Warning Labels: While global authorities like JECFA (Joint Expert Committee on Food Additives) have declared MSG safe since 1971, India still mandates a warning label stating it is unsafe for infants. Eg: Most countries have removed such warnings, but India continues them despite scientific consensus.
    • Misleading Public Perception: The mandatory label in India has led to consumer fear and confusion, with many believing MSG is inherently harmful. Eg: This is misleading, as natural glutamates (chemically identical to MSG) are found in tomato, mushroom, garlic, and even breast milk.
    • Lag in Regulatory Modernisation: India has been slow to align its food safety regulations with global scientific evidence. Eg: Despite MSG receiving an “ADI not specified” status globally (indicating high safety), India still treats it with caution due to legacy regulations.

    What can improve food safety risk communication in India?

    • Simplify Scientific Language: Communicate complex terms like MRLs (Maximum Residue Limits) and ADIs (Acceptable Daily Intake) in easy-to-understand formats for the public. Eg: Instead of stating “0.1 mg/kg,” explain it as a level safe for lifelong consumption in common quantities of food.
    • Replace Misleading Labels with Evidence-Based Information: Outdated or alarming labels should be updated to reflect current scientific understanding. Eg: The MSG warning label in India should be replaced with factual information about its safety, as done in other countries.
    • Enhance Public Engagement and Transparency: Build public trust through open communication with consumers, industry, and media to explain regulatory changes and safety updates. Eg: When MRL limits for pesticides were revised, clearer messaging could have prevented public fear and misunderstanding.

    Way forward: 

    • Invest in India-Specific Scientific Research: Conduct localized toxicological studies and Total Diet Studies (TDS) to ensure food safety standards reflect Indian dietary habits, agricultural practices, and environmental conditions.
    • Strengthen Risk Communication and Public Awareness: Simplify scientific terms for the public, revise outdated labels, and build transparent engagement with stakeholders to promote informed consumer choices and trust in regulatory decisions.

    Mains PYQ:

    [UPSC 2022] Briefly discuss the status and significance of the food processing industry in India.

    Linkage: The “status and significance of the food processing industry” in India is directly and fundamentally linked to the country’s food safety standards. For this industry to achieve and maintain a significant status, it must adhere to and uphold rigorous food safety standards. The perception and reality of food safety directly influence consumer trust, market access (both domestic and international), and overall economic contribution of the sector.

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  • Foreign Policy Watch: India-Pakistan

    Assam CM on Pakistan ‘scare narrative’: Could Chinese dams affect Brahmaputra flow in India?

    Explained | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Why in the News?

    India has rejected the “scare stories” spread by Pakistan and others about China building dams upstream on the Brahmaputra River, especially the big 60,000 MW Medog Hydropower Project in Tibet.

    What is the significance of the Brahmaputra’s flow originating mostly in India?

    • Major Contribution to River Flow: Although India has only about 34.2% of the Brahmaputra basin area, it contributes over 80% of the river’s total water flow due to higher rainfall and tributary inflows. Eg: The Indian basin receives an average annual rainfall of 2,371 mm, much higher than Tibet’s 300 mm.
    • Flood Management Potential: Control over a major share of the river’s flow gives India better scope to design flood control infrastructure and storage systems to reduce monsoon-related disasters. Eg: Assam CM stated that reduced flow from China could help mitigate annual floods in Assam.
    • Strengthened Riparian Rights and Development Planning: India’s dominant share in flow enhances its claim as a principal riparian state, empowering it to undertake hydropower and irrigation projects without heavy external dependency. Eg: India is developing hydropower projects like Dibang and Subansiri in Arunachal Pradesh based on its flow share.
    Note: A “riparian state” refers to a state or country that shares a river or stream border with another state or country.

     

    What about the Medog Hydropower Project?

    The Medog Hydropower Project is an ambitious and controversial initiative by China to construct the world’s largest hydropower dam on the Yarlung Tsangpo River in Tibet. With a planned capacity of 60,000 megawatts (MW) and an estimated cost of $137 billion, the project has significant environmental, geopolitical, and social implications for the region

    Why is China’s proposed Medog hydropower project raising concerns for India?

    • Strategic Control Over Water Flow: China’s 60,000 MW Medog dam could allow manipulation of the Brahmaputra’s flow, risking reduced water in dry seasons or artificial floods during monsoons. Eg: Sudden releases from Chinese dams have previously caused flash floods in Arunachal Pradesh and Assam.
    • Environmental and Seismic Hazards: The dam’s location in a seismic zone threatens biodiversity, increases landslide risks, and may disrupt sediment flow critical for downstream agriculture. Eg: Trapped sediments can reduce soil fertility, impacting farming in India and Bangladesh.
    • Absence of Water-Sharing Agreements: China’s unilateral actions without consultation violate equitable sharing norms, worsening trust deficits. Eg: Unlike the Indus Treaty with Pakistan, no formal pact exists between India and China on the Brahmaputra.

    What steps has India taken or proposed to utilise the Brahmaputra’s water potential?

    • Development of Hydropower Projects: India is actively constructing and planning large hydropower projects in Arunachal Pradesh to harness the Brahmaputra’s energy potential and establish water-use rights. Eg: Projects like the Dibang Multipurpose Project (2880 MW) and Subansiri Lower Hydroelectric Project (2000 MW) are designed to generate clean energy and regulate river flow.
    • Construction of Multipurpose Storage Reservoirs: India is focusing on creating dams and storage facilities to control floods, store monsoon water, and ensure water availability in dry seasons. Eg: The proposed Upper Siang project aims to store floodwaters and generate electricity while supporting irrigation and drinking water needs in the region.
    • Promotion of Inland Waterways and River Navigation: The Brahmaputra is being developed as a key navigable waterway under India’s Act East Policy to boost trade and regional connectivity. Eg: The National Waterway-2 (NW-2) on the Brahmaputra facilitates cargo movement between Assam and Bangladesh, promoting economic use of the river.

    Way forward: 

    • Bilateral Water-Sharing Framework: India and China should initiate dialogue to establish a formal transboundary water-sharing agreement, ensuring data transparency, flow regulation, and emergency notification mechanisms—similar to the Indus Waters Treaty.
    • Regional Environmental Assessment Mechanism: Promote a joint environmental impact assessment (EIA) involving India, China, and Bangladesh under a multilateral platform like the UN or SAARC, to ensure sustainable and equitable river basin management.

    Mains PYQ:

    [UPSC 2013} What do you understand by run of the river hydroelectricity project? How is it different from any other hydroelectricity project?

    Linkage: The articles talks about the Chinese infrastructure interventions on the Brahmaputra are “hydropower projects with minimal storage”. It also mentions the massive planned Medog project as the world’s largest hydropower facility, and India’s own Upper Siang Project which will generate power and serve as a buffer against flow variations. This question directly relates to a type of hydropower project pertinent to river development and control.

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  • Railway Reforms

    PM inaugurates Chenab Railway Bridge

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

    Why in the News?

    Prime Minister inaugurated the world’s highest railway bridge over the Chenab River in Jammu and Kashmir.

    About the Chenab Rail Bridge:

    • Location: The Chenab Rail Bridge is the world’s highest railway bridge, situated over the Chenab River in Reasi district, Jammu and Kashmir. It is part of the Udhampur–Srinagar–Baramulla Rail Link (USBRL).
    • Height: The bridge rises to a height of 359 metres, which is 35 metres taller than the Eiffel Tower.
    • Structure and Length: It has a total length of 1,315 metres, comprising a 530-metre approach bridge and a 785-metre steel arch bridge.
    • Project Execution: Constructed by Konkan Railway Corporation, with contributions from Afcons Infrastructure, Ultra Construction & Engineering (South Korea), and VSL India.
    • Design and Engineering:
      • IISc Bengaluru designed the foundation.
      • IIT Delhi and IIT Roorkee conducted seismic analysis.
      • DRDO ensured it is blast-proof.
    • Durability and Safety: The bridge can withstand magnitude 8 earthquakes, blasts up to 40 tonnes of TNT, temperatures as low as -20°C, and wind speeds of 266 km/h.
    • Speed and Lifespan: It supports train speeds up to 100 km/h and has a lifespan of 120 years.
    • Key Milestones: The arch closure was completed in April 2021, and the Golden Joint Ceremony was held on August 13, 2022.

    PM also inaugurated Anji Bridge:

    • About: The Anji Bridge is India’s first cable-stayed railway bridge, built over the Anji River, a tributary of the Chenab.
    • Ranking: It is the second-highest railway bridge in India, after the Chenab Bridge.
    • Design: Originally planned as an arch bridge, the design was changed to cable-stayed due to geological challenges.
    • Structure Details: The total length is 725 metres, comprising an ancillary viaduct, approach bridge, and central embankment.
    • Features: It is supported by 96 cables ranging from 82 to 295 metres, with a deck width of 15 metres.
    • Resilience: The bridge is engineered to withstand seismic activity, unstable terrain, strong winds, heavy storms, and explosions.

     

    [UPSC 2025] Consider the following statements:

    I. Indian Railways have prepared a National Rail Plan (NRP) to create a future ready railway system by 2028. II. ‘Kavach’ is an Automatic Train Protection system developed in collaboration with Germany. III. ‘Kavach’ system consists of RFID tags fitted on track in station section.

    Which of the statements given above are not 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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  • RBI Notifications

    RBI’s Monetary Policy Committee (MPC) Decisions

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    Why in the News?

    The RBI, in its Monetary Policy Committee (MPC) meeting, cut the Cash Reserve Ratio (CRR) by 1% to release ₹2.5 lakh crore into the banking system by November 2025.

    Key Changes Announced:

    • Cash Reserve Ratio (CRR) reduced by 1% in four tranches, bringing it down to 3% by November 29, 2025.
    • This CRR cut will release ₹2.5 lakh crore liquidity into the banking system by December 2025.
    • Statutory Liquidity Ratio (SLR) remains unchanged at 18% of Net Demand and Time Liabilities (NDTL).

    Key terms related to the MPC instruments:

    Explanation
    Cash Reserve Ratio (CRR)
    • CRR is the percentage of a bank’s total deposits that must be maintained as liquid cash with the RBI.
    • Banks cannot use this amount for lending or investment. No interest is earned on CRR.
    • It is used to control liquidity and inflation in the economy.
    • Increasing CRR reduces bank lending capacity; decreasing it increases liquidity.
    • Current CRR is 4.5% of Net Demand and Time Liabilities (NDTL).
    Statutory Liquidity Ratio (SLR)
    • SLR is the minimum percentage of NDTL that banks must maintain in liquid form.
    • It includes cash, gold, or approved government securities, kept with the bank itself.
    • It helps ensure bank solvency and restricts excessive credit growth.
    • Raising SLR reduces funds available for lending; lowering it boosts credit and growth.
    • It also helps the government ensure demand for its securities.
    Net Demand and Time Liabilities (NDTL)
    • It includes public deposits and balances held with other banks.
    • It excludes deposits the bank itself has with other banks.
    • Demand liabilities include current accounts and demand drafts.
    • Time liabilities include fixed deposits and recurring deposits.
    • CRR and SLR are calculated as a percentage of NDTL.
    Repo Rate
    • The repo rate is the rate at which the RBI lends short-term funds to commercial banks against government securities.
    • Banks sell securities to RBI with an agreement to repurchase them later.
    • Lower repo rate makes borrowing cheaper and boosts liquidity.
    • Higher repo rate makes borrowing costlier, reducing liquidity.
    • It is a key monetary policy tool to regulate inflation and money supply.
    Variable Rate Repo (VRR) Auction
    • VRR auction is a method where RBI conducts repo operations at variable interest rates.
    • Interest rate is determined through competitive bidding by banks.
    • It reflects real-time demand and supply of liquidity.
    • Enables more flexible and efficient liquidity management by RBI.
    Standing Deposit Facility (SDF)
    • SDF allows banks to deposit surplus funds with the RBI without providing any collateral.
    • Banks earn interest at a rate set by the RBI.
    • It is used to absorb excess liquidity from the system.
    • Part of RBI’s liquidity management framework.
    Weighted Average Call Rate (WACR)
    • WACR is the weighted average interest rate at which banks borrow and lend overnight funds in the interbank call money market.
    • It is an important indicator of short-term liquidity conditions.
    • RBI monitors WACR to guide monetary policy decisions.

     

    [UPSC 2020] If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do?

    1. Cut and optimise the Statutory Liquidity Ratio.

    2. Increase the Marginal Standing Facility Rate.

    3. Cut the Bank Rate and Repo Rate.

    Select the correct answer using the code given below:

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

     

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  • Foreign Policy Watch: United Nations

    India elected to UN’s Economic and Social Council (ECOSOC)  

    IOCR | International Relations | Mains Paper 2: Important International Institutions

    Why in the News?

    India has been elected to the United Nations Economic and Social Council (ECOSOC) for the term 2026–2028.

    About the UN’s Economic and Social Council (ECOSOC):

    • Establishment: It is one of the 6 principal UN organs, created in 1945 under the UN Charter.
    • Mandate: It coordinates the UN’s economic, social, humanitarian, and cultural work.
    • Role: ECOSOC serves as the central platform for global policy dialogue, review, and development recommendations.
    • Composition: ECOSOC has 54 member states, elected by the UN General Assembly for three-year terms.
    • Decision-Making: Decisions are made by simple majority; no permanent members; presidency rotates annually.
    • Functions and Powers:
      • Coordination: Oversees 15 specialized agencies (e.g., WHO, ILO), 8 functional commissions, and 5 regional commissions.
      • Promotion Areas: Focuses on living standards, employment, human rights, education, healthcare, and environmental protection.
      • Engagement with NGOs: Grants consultative status to over 1,600 NGOs and organizes global conferences.
      • UN Oversight: Supervises agencies such as UNICEF, UNDP, and UNHCR.
    • Sessions and Meetings:
      • Main Sessions: Held each July, along with an organizational session.
      • Finance Dialogues: Hosts April meetings with finance ministers from the IMF and World Bank.
      • SDG Monitoring: Organizes the High-Level Political Forum (HLPF) to track progress on the Sustainable Development Goals (SDGs).
    • Legal and Institutional Details:
      • UN Charter Basis: Defined under Chapter X (Articles 61–72) of the Charter.
      • Headquarters: Located in New York.
      • Scope: ECOSOC is the largest and most complex UN body, shaping global development policy.

    India and ECOSOC:

    • Membership: India is serving its 18th term as a member, elected for the 2026–28 period.
    • Subsidiary Roles: India has held positions in bodies like the UN Statistical Commission, Commission on Narcotic Drugs, and UNAIDS Board.
    • Recent Milestone: India recently joined the UN Committee of Experts on Big Data and Data Science for Official Statistics (UN-CEBD), highlighting its data expertise.
    • Policy Priorities: India supports inclusive growth, SDG progress, and south-south cooperation through evidence-based multilateral leadership.
    [UPSC 2009] With reference to the United Nations, consider the following statements:

    1. The Economic and Social Council (ECOSOC) of UN consists of 24 member States.

    2. It is elected by a 2/3 majority of The General Assembly for a 3-year term.

    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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  • Land Reforms

    UMEED Portal for Waqf Properties

    Prelims Only | Governance | Mains Paper 2: E-Governance

    Why in the News?

    Union Minister for Minority Affairs has launched the Unified Waqf Management, Empowerment, Efficiency and Development (UMEED) portal—a centralised digital platform to manage Waqf properties across India.

    Tap to read more about the Waqf and the Waqf (Amendment) Act, 2025.

    About the UMEED Portal

    • Launch: It was launched by the Ministry of Minority Affairs on June 6, 2025.
    • Core Purpose: It ensures real-time registration, verification, and monitoring of Waqf properties across India.
    • Legal Alignment: The portal is aligned with the Waqf (Amendment) Act, 2025, which received presidential assent in April 2025.
    • Governance Shift: UMEED aims to promote transparency, accountability, and public participation by making Waqf data digitally traceable.

    Key Features:

    • Centralized Registration: All Waqf properties must be registered on a single digital platform.
    • Documentation: Each property receives a 17-digit ID and must include ownership papers, exact measurements, and geotagged location data.
    • User-Friendly Design: Features include dropdown-based input, GIS mapping, and a grievance redressal system.
    • 3-Tier Verification:
      • Maker: Mutawalli enters the property data.
      • Checker: District official verifies the entry.
      • Approver: CEO or authorised Waqf Board officer grants approval.
    • Transparency and Privacy: Public access to basic property details is allowed, while data privacy is ensured.
    • Eligibility Rule: Properties registered in women’s names are not eligible as Waqf properties, though women and vulnerable groups remain priority beneficiaries.
    • Support System: A toll-free helpline is available for technical assistance.

    Registration Process:

    • Responsible Authority: State Waqf Boards are in charge of registering properties.
    • Deadline: All registrations must be completed within 6 months of the portal’s launch.
    • Required Data: Includes property size, ownership documents, geotagging, and whether the land is government-owned.
    • Extension Policy: A 1–2 month extension may be granted upon valid request.
    • Non-Compliance: Unregistered properties will be marked as “disputed” and referred to the Waqf Tribunal.
    • Missing Documents: In such cases, the mutawalli must approach the Tribunal for validation.

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  • Insolvency and Bankruptcy Code

    [6th June 2025] The Hindu Op-ed: Is IBC an effective resolution tool? | Explained

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

    PYQ Relevance:

    [UPSC 2018] How far do you agree with the view that tribunals curtail the jurisdiction of ordinary courts? In view of the above, discuss the constitutional validity and competency of the tribunals in India.

    Linkage: The Insolvency and Bankruptcy Code (IBC), India’s first comprehensive bankruptcy law enacted in 2016, fundamentally relies on a specialized tribunal system for its implementation. This system includes the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT). The effectiveness of the IBC as a resolution tool is intrinsically linked to the efficiency, competency, and operational challenges faced by these tribunals.

     

    Mentor’s Comment:  India’s Insolvency and Bankruptcy Code (IBC), started in 2016, has been running for over eight years now. It has helped recover ₹3.89 lakh crore with a recovery rate of 32.8%, changing how companies deal with unpaid debts. But delays in courts, problems after settlements, and a recent Supreme Court decision on Bhushan Steel have created new worries.

    Today’s editorial will talk about the effectiveness of the Insolvency and Bankruptcy Code (IBC) in India. It will help with GS Paper II (Policy Making) and GS Paper III (Banking).

    _

    Let’s learn!

    Why in the News?

    As India works towards becoming a $5 trillion economy, there is growing discussion about whether the IBC is ready for the future, whether its decisions are respected, and how efficient the courts are in handling cases.

    Why was the Insolvency and Bankruptcy Code (IBC) enacted in India in 2016?

    • To Establish a Time-bound Resolution Mechanism: The IBC aimed to replace India’s slow and fragmented insolvency system with a fast-track process for resolving distressed assets within a maximum of 330 days. Eg: Earlier, recovery through legal channels often took years; under IBC, cases like Essar Steel were resolved with clear timelines.
    • To Shift Control from Debtors to Creditors: It empowered creditors by giving them control over the insolvency process and discouraging willful default. Eg: In the case of Bhushan Steel, creditors approved Tata Steel’s resolution plan, overriding promoter control.
    • To Improve Recovery Rates and Credit Culture: IBC sought to improve debt recovery rates and create a culture of responsible borrowing and repayment. Eg: As per IBBI data, creditors have recovered over ₹3.89 lakh crore with an average recovery rate of 32.8%, much higher than earlier systems.

    What makes IBC the preferred route for debt recovery according to the RBI and IBBI data?

    • Highest Share in Total Recoveries: According to the RBI’s 2024 report, the IBC accounted for 48% of all recoveries made by banks in FY 2023-24, making it the dominant recovery mechanism. Eg: Compared to other channels like DRTs and SARFAESI, IBC recovered nearly half of total dues in just one financial year.
    • Better Realisation Than Liquidation: As per IBBI, resolution plans under IBC are yielding 93.41% of the fair value and 170.1% of liquidation value, showing greater efficiency. Eg: In the case of Electrosteel Steels, creditors recovered more than they would have in a liquidation scenario.
    • Timely Resolution and Settlement: The IBC’s time-bound process has led to early settlements, with 30,310 cases settled before admission, involving defaults worth ₹13.78 lakh crore. Eg: Companies facing insolvency threats often clear dues or settle quickly, improving the overall credit discipline.

    How has the IBC impacted the credit culture and corporate governance in India?

    • Improved Credit Discipline: The IBC has fostered a repayment-oriented credit culture by creating a credible threat of insolvency, discouraging willful defaults. Eg: The Supreme Court observed that “the defaulter’s paradise is lost,” reflecting a clear shift in borrower behavior post-IBC.
    • Reduction in NPAs: The IBC has contributed to a sharp fall in Gross Non-Performing Assets (NPAs), which declined from 11.2% in 2018 to 2.8% in 2024 for scheduled commercial banks. Eg: Many firms have restructured or repaid loans early to avoid IBC proceedings, improving asset quality in the banking sector.
    • Boosted Corporate Governance Standards: Firms resolved under IBC show better board practices, including a rise in the number of independent directors, enhancing transparency and accountability. Eg: A study by IIM Bangalore showed firms post-resolution had more professionalised management and stronger compliance norms.

    What are the key challenges currently affecting the effectiveness of the IBC framework?

    • Judicial Delays and Backlogs: Delays in approvals by the National Company Law Tribunal (NCLT) and prolonged litigation undermine the IBC’s goal of time-bound resolution. Eg: Even after creditor approval, resolution plans like that of Jaypee Infratech have been stuck for years due to legal battles, leading to erosion in asset value.
    • Post-resolution Uncertainty: Lack of legal finality and frequent challenges after plan approval create investor hesitation and risk derailment of settled cases. Eg: In the Bhushan Power and Steel case, a previously approved resolution plan was reopened, shaking confidence in the system.
    • Inadequate Framework for Emerging Assets: The IBC lacks clear mechanisms to deal with issues like intellectual property valuation, employee dues, and tech continuity, making it unfit for resolving non-traditional businesses. Eg: Tech start-ups and IP-heavy firms may not be efficiently resolved under current provisions, leading to value destruction.

    Why is the Bhushan verdict seen as a setback?

    • Erodes Commercial Certainty: The verdict questioned a resolution plan that had already been approved and operational for years, undermining the finality of the IBC process. Eg: The reopening of the Bhushan Power and Steel Ltd. case raised fears that even completed transactions are not immune from future legal scrutiny.
    • Deters Investor Confidence: If resolution applicants fear judicial reversal after making large investments, they may hesitate to participate, weakening the IBC’s appeal. Eg: A successful bidder may now think twice before committing to a resolution plan if legal sanctity isn’t guaranteed.
    • Delays in Execution and Recovery: Continuous litigation post-approval increases the risk of liquidation for otherwise viable firms due to delayed implementation. Eg: In the Bhushan case, years of uncertainty stalled asset utilisation, resulting in a loss of economic value.

    Way forward: 

    • Strengthen Tribunal Infrastructure and Capacity: Expand the capacity of NCLT and NCLAT by appointing more judges, improving case management systems, and digitising proceedings to reduce delays and ensure time-bound resolutions.
    • Ensure Legal Finality and Commercial Certainty: Introduce clear jurisprudential safeguards to prevent post-resolution litigations and uphold the sanctity of approved resolution plans, thereby boosting investor confidence and preserving the IBC’s credibility

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  • Foreign Policy Watch: India – EU

    A Eurocentric reset, a gateway for India

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

    Why in the News?

    Recently, U.K. Prime Minister Keir Starmer’s move to renew relations with the European Union is an important change in post-Brexit policy that has big effects around the world, especially for India.

    What is the significance of the new U.K.-EU agreement for India?

    • Simplifies Trade and Regulatory Compliance: The agreement harmonizes food standards, fishing rights, and customs coordination between the U.K. and EU, making it easier for Indian exporters to comply with a single set of rules instead of two separate regimes. Eg: Indian pharmaceutical companies supplying over 25% of the U.K.’s generic medicines could benefit from faster unified approvals, reducing costs and delays.
    • Strengthens Strategic Diplomatic Relations: Renewed U.K.-EU cooperation offers India a chance to enhance multilateral ties and align foreign policies with key Western partners on issues like defence and Indo-Pacific security. Eg: India’s existing partnerships with France, Germany, and the U.K. on defence modernization could deepen with a coordinated U.K.-EU approach.
    • Boosts Talent Mobility and Diaspora Engagement: The agreement’s border and migration cooperation may ease movement for Indian students and professionals across the U.K. and EU, expanding educational and employment opportunities. Eg: In 2024, the U.K. issued over 110,000 student visas to Indian nationals, a number likely to grow with improved mobility frameworks.

    How could the U.K.-EU reset impact Indian exports?

    • Simplified Compliance and Reduced Costs: A harmonised U.K.-EU regulatory framework will help Indian exporters by simplifying compliance, reducing redundant paperwork, and lowering operational costs across key sectors like pharmaceuticals, textiles, seafood, and agro-products. Eg: Indian seafood exports worth around ₹60,523 crore ($7.38 billion) in FY2024 could face fewer trade barriers due to aligned food standards and fishing policies.
    • Challenges for Small and Medium Enterprises (SMEs): While unified standards ease trade, tighter common regulations might pose challenges for Indian SMEs that lack capital and technical expertise, requiring enhanced support from government schemes. Eg: To stay competitive, SMEs must leverage initiatives like the RoDTEP and Production-Linked Incentive (PLI)schemes to upgrade their export capabilities.

    Why does the renewed U.K.-EU cooperation matter for India’s global diplomacy?

    • Enhanced Multilateral Coordination: A more aligned U.K.-EU foreign policy enables India to strengthen multilateral ties and gain cohesive support on global platforms like the United Nations, G-20, and WTO. Eg: India can push its agenda more effectively in climate finance and digital infrastructure reforms with a united Western bloc.
    • Boost to Defence and Security Partnerships: Coordinated defence policies between the U.K. and EU deepen India’s strategic collaborations in defence modernization, technology transfer, and Indo-Pacific security. Eg: Landmark defence deals with Germany and the U.K. on joint development and technology transfer gain momentum through U.K.-EU alignment.
    • Stronger Collective Response to Shared Geopolitical Challenges: The reset facilitates trilateral or multilateral engagements addressing shared concerns like China’s assertiveness in the Indo-Pacific region. Eg: India’s partnerships with the U.K., France, and Germany could lead to coordinated strategies to ensure regional stability.

    What opportunities does the U.K.-EU alignment offer for Indian migration and talent mobility?

    • Improved Mobility for Students and Professionals: The renewed U.K.-EU cooperation on border checks and migration policies could partially restore the movement of Indian students and professionals across both regions. Eg: In 2024, the U.K. issued over 110,000 student visas to Indian nationals, indicating strong educational ties likely to expand.
    • Creation of Semi-Integrated Talent Corridors: The alignment may enable semi-integrated talent corridors that facilitate easier access to job markets in the U.K. and EU for skilled Indian workers. Eg: Indian professionals may benefit from more streamlined work permits and mobility agreements within the new U.K.-EU framework.
    • Strengthening Migration Pacts with Key EU Countries: India’s existing migration agreements with countries like Germany, France, and Portugal could be embedded within the broader U.K.-EU framework, enhancing their effectiveness. Eg: This could lead to expanded opportunities for Indian workers under more coordinated and stable migration policies.

    How should India respond to maximise gains from this U.K.-EU reset?

    • Accelerate Reforms and Modernize Export InfrastructureIndia needs to upgrade its export ecosystem by adopting unified standards, improving logistics, and strengthening support schemes like RoDTEP and PLI to enhance competitiveness and meet new regulatory demands. Eg: Indian exporters in sectors like pharmaceuticals and seafood can reduce costs and clearances by aligning with the harmonized U.K.-EU framework.
    • Assert Strategic Engagement in Global Governance and Diplomacy: India should deepen its diplomatic ties with the U.K., EU, and key European partners to leverage coordinated foreign policy and defence collaborations, boosting its influence in forums like the UN, G20, and WTO. Eg: India’s strengthened partnerships on climate finance and Indo-Pacific security will enhance its global leadership role.

    Way forward: 

    • Strengthen Export Competitiveness: Invest in upgrading export infrastructure, enhance quality standards, and expand government incentive schemes like RoDTEP and PLI to help Indian exporters meet unified U.K.-EU regulations and remain competitive globally.
    • Deepen Strategic and Diplomatic Engagement: Proactively engage with the U.K., EU, and key European nations to build stronger defence, trade, and migrationpartnerships, leveraging the reset to boost India’s global influence and economic opportunities.

    Mains PYQ:

    [UPSC 2023] The expansion and strengthening of NATO and a stronger US-Europe strategic partnership works well in India.’ What is your opinion about this statement? Give reasons and examples to support your answer.

    Linkage: In this article talks about the renewed ties between the UK and the EU — called a “Eurocentric reset” — could open new doors for India. A more united UK-EU foreign policy, especially in areas like defence and the Indo-Pacific, gives India a chance to work more closely with the EU on global matters. This also fits well with the growing strategic partnership between the US and Europe, which benefits India’s position in international affairs.

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  • Nuclear Energy

    Should India amend its nuclear energy laws?

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

    Why in the News?

    India is thinking about changing the Civil Liability for Nuclear Damages Act, 2010, and the Atomic Energy Act, 1962. These changes would let private companies build and run nuclear power plants.

    Why is there a proposal to amend India’s nuclear energy laws?

    • To Attract Private and Foreign Participation: Current laws like the Civil Liability for Nuclear Damage Act (CLNDA), 2010, deter foreign companies due to strict liability provisions. Amending them would enable global firms like Westinghouse (U.S.) and Électricité de France (EDF) to invest and supply nuclear technology.
    • To Meet India’s Clean Energy Targets: India aims to scale up nuclear capacity from 8 GW to 100 GW by 2047 as part of its low-carbon energy transition. Legal reforms are essential to unlock the necessary investments and partnerships to achieve this scale.

    What are the concerns about foreign investment and liability?

    • Foreign Companies Fear Being Blamed After Accidents: They worry they’ll be held legally responsible if something goes wrong, which could cost them a lot of money. Eg: U.S. company Westinghouse and French company Areva stayed away from India’s nuclear sector due to strict liability laws.
    • Indian Law Puts All Blame on the Operator: India’s current law makes the plant operator fully responsible, even if the equipment from foreign suppliers fails. Eg: If a part made by a foreign company causes a problem, only NPCIL (Indian operator) is blamed and has to pay.
    • Old Accidents Still Raise Worries: Events like the Bhopal Gas Tragedy make people cautious about giving foreign companies a free pass on liability. Eg: In 2012, the NDA opposed changes in law that would reduce foreign companies’ responsibility, citing past disasters.

    How will the amendments help achieve 100 GW capacity?

    • Enabling Foreign Participation: Amendments will remove liability-related hurdles, allowing global firms to invest and supply technology. Eg: Westinghouse (U.S.) and EDF (France) may enter Indian projects if liability norms align with international standards.
    • Boosting Domestic-Private Sector Involvement: Changes in laws like the Atomic Energy Act could allow Indian private companies to build and operate reactors. Eg: Companies like L&T and BHEL may contribute to infrastructure and component manufacturing at scale.
    • Attracting Investment in Advanced Reactors (SMRs): Legal clarity could attract funds and partnerships in Small Modular Reactors, helping scale capacity rapidly. Eg: New-age firms working on SMRs may partner with India if assured of returns and limited liability.

    What are Small Modular Reactors (SMRs)? 

    • Small Modular Reactors (SMRs) are compact nuclear power plants that produce up to 300 MW of electricity and are built in factories for easy transport and quicker installation.
    • They use advanced, safer designs with features like passive cooling and are ideal for remote areas, industrial use, and integration with renewable energy sources.

    What challenges exist in small modular reactor (SMR) technology transfer?

    • Profit-Driven Technology Sharing: Private foreign firms transfer technology only if it’s commercially viable, not for strategic or public interest reasons. Eg: U.S. companies will share SMR tech only if returns outweigh security or IP risks.
    • Restrictions by National Governments: Export controls and national security concerns limit what tech can be transferred internationally. Eg: The U.S. government regulates tech transfers; past transfers to China (like AP1000) led to cloning and IP misuse.
    • Partial Transfers and Proprietary Control: Even friendly countries often retain core tech and allow only partial local production. Eg: Russia’s Rosatom allowed India to build sub-components of VVER reactors but kept control over critical hot sections.

    What is the Convention on Supplementary Compensation (CSC)? 

    • The Convention on Supplementary Compensation (CSC) is an international treaty that establishes a global fund to provide prompt compensation to victims of nuclear accidents.
    • It assigns primary liability to nuclear plant operators while limiting supplier liability, ensuring faster financial support and shared responsibility among participating countries.

    Why is the Convention on Supplementary Compensation (CSC) important for nuclear compensation?

    • Ensures Quick Compensation Without Legal Delays: CSC focuses on giving fast financial help to victims of nuclear accidents without long court cases. Eg: After a nuclear incident, funds can be released immediately to affected people, unlike long litigation seen in Bhopal.
    • Fixes Responsibility on the Operator Only: CSC channels all liability to the nuclear plant operator, protecting suppliers unless there’s proven misconduct. Eg: If NPCIL runs the plant, it bears full responsibility, not companies like Westinghouse or Rosatom.
    • Creates an International Compensation Fund: It sets up a multi-tiered fund (including global contributions) to support countries during large-scale accidents. Eg: A country can access a global pool of money through CSC if the cost of a disaster exceeds national capacity.

    Way forward: 

    • Strengthen Legal Framework to Balance Liability and Investment: Amend India’s nuclear laws to align liability rules with international standards like the CSC, ensuring fair responsibility for operators while providing enough protection to attract foreign and private investments.
    • Promote Technology Transfer and Domestic Capacity Building: Create transparent policies and incentives that encourage foreign companies to share advanced nuclear technologies such as Small Modular Reactors (SMRs) with Indian firms, while simultaneously building India’s own manufacturing and operational capabilities to achieve energy targets sustainably.

    Mains PYQ:

    [UPSC 2018] With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy.

    Linkage: The article  indicate that discussions are ongoing in India to amend its nuclear liability framework (specifically, the Civil Liability for Nuclear Damages Act (CLNDA), 2010, and the Atomic Energy Act (AEA), 1962). The primary reason for these proposed amendments is to allow private companies to build and operate nuclear energy-generation facilities and to expand India’s nuclear energy capacity from 8 GW to 100 GW by 2047, aligning with the country’s clean energy goals.

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

    Global Energy Investment Report, 2025

    IOCRPrelims Only | Enviro & Biodiversity | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Why in the News?

    China will lead global energy investments in 2025, making up over a quarter of total spending, says the International Energy Agency’s (IEA) 10th edition Global Energy Investment Report, 2025.

    Back2Basics: International Energy Agency (IEA)

    • Establishment: The IEA was formed in 1974 under the Organization for Economic Cooperation and Development (OECD) in response to the 1973 oil crisis, with headquarters in Paris, France.
    • Membership: It has 31 member countries (e.g., US, UK, France, Japan) and 11 association countries like India, China, and Brazil.
    • India’s Role: India joined as an Association Country in 2017, gaining access to data-sharing, policy support, and technical cooperation.
    • Expanded Mission: The IEA now supports energy security, clean energy transitions, emissions tracking, and policy development.
    • Global Influence: Its major reports—World Energy Outlook, Net Zero by 2050, and Energy Technology Perspectives—guide governments and investors worldwide.

    About the Global Energy Investment Report:

    • Origin and Purpose: Officially titled World Energy Investment Report, is the IEA’s flagship annual publication.
    • Published since 2016: To assess investment flows across the global energy system.
    • Scope of Coverage: It tracks investments in fossil fuels, renewables, electricity supply, critical minerals, energy efficiency, R&D, and innovation financing.
    • Strategic Value: The report helps determine if current investments support climate goals and universal energy access.

    Global Energy Investment Report, 2025

    Key Highlights from the 2025 Report:

    • China’s Role: China will account for over 25% of global energy investment, with over $625 billion in clean energy, though it also approved 100 GW of new coal plants in 2024.
    • Global Trends: Clean energy investment will hit $2.2 trillion, over twice the amount spent on fossil fuels, yet still falls short of COP28 targets.
    • Africa’s Investment Gap: Africa’s fossil fuel investment dropped from $125 billion to $54 billion, and it still receives only 2% of global clean energy funds, mainly due to debt burdens.
    • India’s Position: India’s renewables investment rose from $13 billion (2015) to $37 billion (2025), while fossil fuel investment also increased. However, grid and storage spending declined to $25 billion.
    • Financing Barriers: India’s high cost of capital—80% above advanced economies—limits clean energy growth. The “Baku to Belem Roadmap” seeks to mobilize $1.3 trillion by 2035 for such regions.
    • Global Mismatch: While $1 trillion is spent annually on power generation, only $400 billion goes to grid infrastructure, affecting distribution capacity.
    [UPSC 2022] Consider the following statements:

    1. The Climate Group” is an international non-profit organisation that drives climate action by building large networks and runs them.

    2. The International Energy Agency in partnership with The Climate Group launched a global initiative “EP100”.

    3. EP100 brings together leading companies committed to driving innovation in energy efficiency and increasing competitiveness while delivering on emission reduction goals.

    4.Some Indian companies are members of EP100.

    5. The International Energy Agency is the Secretariat to the “Under2 Coalition”.

    Which of the statements given above are correct?

    Options: (a) 1,2,4 and 5 (b) 1,3 and 4 only* (c) 2,3 and 5 only (d) 1,2,3,4 and 5

     

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