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Archives: News

  • Citizenship and Related Issues

    The legal systems under which citizenship is acquired

    Why in the News?

    Recently, U.S. President Donald Trump issued an order stating that, in the future, only children whose parents are U.S. citizens or green card holders will be eligible for U.S. citizenship.

    What are the two different principles which govern citizenship laws in various countries? 

    • Jus Soli (Right of Soil): This principle grants citizenship based on the place of birth. A child born within the territory of a country automatically acquires citizenship, regardless of the nationality of their parents.
        • Countries such as the United States, Canada, and many Latin American nations follow this principle, allowing for what is often referred to as birthright citizenship.
    • Jus Sanguinis (Right of Blood): Under this principle, citizenship is determined by the nationality or citizenship of one or both parents. A child inherits citizenship from their parents, irrespective of where they are born.
      • Many countries in Europe, Africa, and Asia, including Germany, India, and Egypt, adopt this principle, meaning that a child’s citizenship is based on their parents’ nationality rather than their birthplace.

    What was the system in the U.S.? 

    • Historically, the United States has operated under the jus soli principle, as established by the 14th Amendment to the Constitution in 1868. This amendment states that “all persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States”. The U.S. Supreme Court reaffirmed this interpretation in 1898, confirming that all children born on U.S. soil are entitled to citizenship regardless of their parents’ immigration status.
    • However, President Trump’s recent executive order seeks to alter this long-standing practice by restricting citizenship to children born in the U.S. only if at least one parent is a U.S. citizen or lawful permanent resident (green card holder).
      • This order has faced legal challenges, with critics arguing it contradicts constitutional protections established over a century ago.

    How are India’s citizenship laws different?

    Aspect U.S. Citizenship Indian Citizenship
    Principle Jus Soli (by birth) Jus Sanguinis (by descent) since 1987
    Law 14th Amendment (1868) Citizenship Act, 1955 (Amended in 1987, 2004, and 2019)
    Recent Changes Attempt to limit birthright citizenship (stayed by court) Citizenship Amendment Act (CAA), 2019 grants selective citizenship
    Religious Criteria No religious discrimination CAA 2019 excludes Muslims from fast-track citizenship

    What would be the impact on India? 

    • The executive order creates uncertainty for many families within the Indian-American community, especially those on temporary visas such as H-1B. Children born in the U.S. to these parents have traditionally been granted citizenship automatically.
      • This change could potentially affect thousands of Indian families who may now face challenges regarding their children’s citizenship status if they are born in the U.S.

    What are the challenges for the executive order of the president? 

    • Legal Challenges: A coalition of four states—Washington, Arizona, Illinois, and Oregon—has filed a lawsuit seeking to temporarily suspend the executive order while the court examines its legality.
      • This request is part of a broader legal challenge involving 18 Democratic-led states and various civil rights organizations, including the ACLU, which argue that the order violates the 14th Amendment of the U.S. Constitution that guarantees citizenship to anyone born on U.S. soil.
    • Judicial Response: A federal judge in Seattle has already issued a temporary restraining order against Trump’s executive order, labelling it “blatantly unconstitutional.”

    Way forward: 

    • Judicial Review & Constitutional Adherence: The U.S. judiciary should ensure that any changes to citizenship laws align with the 14th Amendment and established Supreme Court precedents, preventing unconstitutional restrictions on birthright citizenship.
    • Policy Reforms & Legislative Clarity: Instead of executive orders, any significant change to citizenship laws should go through Congress with bipartisan consultation, ensuring legal stability and safeguarding the rights of affected families.

    PYQ:

    [2021] With reference to India, consider the following statements :​

    1. There is only one citizenship and one domicile.​
    2. A citizen by birth only can become the Head of State.​
    3. A foreigner once granted the citizenship cannot be deprived of it under any circumstances.​

    Which of the statements given above is/are correct?​

    (a) 1 only ​

    (b) 2 only​

    (c) 1 and 3 ​ only

    (d) 2 and 3 only

  • Government Budgets

    Agriculture is fiscally neglected in the Budget

    Why in the News?

    A budget reflects how a government addresses the challenges in the economy. The Economic Survey 2024-25 tried to present a positive view of Indian agriculture’s situation.

    What are the specific budget allocations for agriculture?

    • Total Allocation: The Union Budget for 2025-26 has allocated ₹1.71 lakh crore for agriculture and allied activities, an increase from ₹1.51 lakh crore in the previous fiscal year.
    • Prime Minister Dhan-Dhaanya Krishi Yojana: This new initiative aims to enhance agricultural productivity in 100 districts with low productivity, targeting 1.7 crore farmers through sustainable practices and improved irrigation facilities.
    • Kisan Credit Card (KCC) Expansion: The loan limit under the Modified Interest Subvention Scheme for KCCs will be raised from ₹3 lakh to ₹5 lakh, facilitating better access to credit for farmers.
    • PM-Kisan Scheme: The allocation for the PM-Kisan scheme remains at ₹63,500 crore, consistent with the revised estimates from the previous year, aimed at providing direct income support to farmers.
      • The PM-Kisan scheme provides annual income support of ₹6,000 to eligible farmers, distributed in three instalments, which is crucial for enhancing their financial stability.
    • Pradhan Mantri Fasal Bima Yojana: This crop insurance scheme has seen a significant reduction in funding, with allocations decreasing from ₹14,600 crore in previous estimates to ₹12,242.27 crore for 2025-26.
    • Makhana Board: A new Makhana Board in Bihar has been allocated ₹100 crore, while other missions include ₹100 crore for hybrid seeds and ₹500 crore for cotton technology.
    • National Mission on Natural Farming: The mission received a significant allocation of ₹516 crore, emphasizing sustainable agricultural practices and increasing the adoption of natural farming methods.
    • Support for Pulses and Oilseeds: The government is launching a six-year mission focused on self-sufficiency in pulses and edible oils, with procurement support from agencies like NAFED and NCCF, aiming to enhance domestic production.

    What measures are being proposed to support farmers and enhance agricultural productivity?

    • Prime Minister Dhan-Dhaanya Krishi Yojana: This new scheme aims to target 100 districts with low productivity, focusing on improving crop intensity and credit parameters. However, concerns exist regarding its centralized governance approach.
    • Investment in Sustainable Practices: The government emphasizes sustainable agriculture practices through initiatives like the Pradhan Mantri Krishi Sinchayi Yojana (PMKSY) aimed at enhancing irrigation efficiency.
    • Post-Harvest Infrastructure Investment: The Agriculture Infrastructure Fund (AIF) is highlighted as a mechanism to improve post-harvest infrastructure, although specific allocations remain unclear.

    Does the budget reflect the broader economic context and challenges?

    • Addressing Farmer Distress: The budget reflects the urgent need to address farmer distress by extending support measures such as lower loan interest rates and increased PM-KISAN assistance.
    • Investment in Sustainable Practices: The budget emphasizes the importance of sustainable agriculture, with recommendations for increased investment in climate-resilient seeds and agricultural research.
    • Post-Harvest Management Improvements: Recognizing significant post-harvest losses, the budget allocates funds to improve cold storage and processing facilities. This investment is crucial for reducing waste and enhancing the value chain, which is vital for improving farmers’ profitability and food security.
    • Focus on Technological Adoption: There is a push for greater adoption of agri-tech solutions to tackle issues like low mechanization and inadequate access to quality seeds. This reflects an understanding that modernizing agriculture is essential for boosting productivity and competitiveness in a challenging economic environment.
    • Long-Term Structural Reforms: The budget indicates a need for transformational changes rather than incremental adjustments, advocating for a shift from subsidy-heavy approaches to investment-driven growth.
      • This strategic direction aims to make Indian agriculture more resilient and globally competitive by 2047.

    Way forward: 

    • Increased Investment in Agricultural R&D and Infrastructure – The government should prioritize higher allocations for agricultural research, modern irrigation techniques, and post-harvest infrastructure to enhance productivity and climate resilience.
    • Targeted Financial Support and Market Reforms – Strengthening direct income support, improving crop insurance schemes, and ensuring better price realization through MSP reforms and enhanced market linkages will help stabilize farmers’ incomes and boost rural demand.

    Mains PYQ:

    Q Explain various types of revolutions, took place in Agriculture after Independence in India. How these revolutions have helped in poverty alleviation and food security in India? (UPSC IAS/2017)

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

    Inland Mangrove of Guneri

    Why in the News?

    The Gujarat government has declared the Guneri Inland Mangrove in Kutch as the state’s first Biodiversity Heritage Site (BHS) under The Biological Diversity Act, 2002.

    Inland Mangrove of Guneri

    Quick Facts about Mangroves in India:

    • “Red List of Mangrove Ecosystems” report released on May 22 (International Day for Biodiversity), 2024.
    • India holds 3% of South Asia’s total mangrove cover.
    • Mangrove cover increased by 54 sq km (1.10%), reaching 4,975 sq km (0.15% of India’s total area).
    • West Bengal leads (42.45%), followed by Gujarat (23.66%) and Andaman & Nicobar Islands (12.39%).
    • South 24 Parganas, West Bengal, alone contributes 41.85% of India’s mangrove cover, including Sundarbans National Park.
    • Gujarat recorded the highest increase, adding 37 sq km of mangrove cover.

    About Guneri Inland Mangroves:

    • Guneri Inland Mangroves (32.78 hectares) are a rare and unique mangrove ecosystem located in Kutch district, Gujarat.
    • It is India’s last remaining inland mangrove site and one of only eight such sites globally.
    • Unlike coastal mangroves, which thrive in tidal zones, Guneri mangroves exist inland without direct seawater contact.
    • These mangroves have historical and ecological significance, possibly originating after the Miocene marine transgression or forming along the banks of the ancient Saraswati River in the Great Rann of Kutch.

    Geographical Features:

    • It is located about 45 km from the Arabian Sea and 4 km from Kori Creek.
    • Terrain:
      • Flat land, unlike coastal mangroves that grow in muddy, tidal zones.
      • Devoid of sludge, making it resemble a forest rather than a typical mangrove swamp.
    • Water Source:
      • Thrives on limestone deposits, which help retain groundwater to sustain the mangroves.
      • No direct tidal water influx, relying entirely on underground water connectivity.
    • Biodiversity:
      • Home to 20 migratory bird species and 25 resident migratory avifaunal species.
      • Functions as a vital habitat for local and seasonal wildlife.

    PYQ:

    [2015] Which one of the following regions of India has a combination of mangrove forest, evergreen forest and deciduous forest?

    (a) North Coastal Andhra Pradesh

    (b) South-West Bengal

    (c) Southern Saurashtra

    (d) Andaman and Nicobar Islands

  • Make in India: Challenges & Prospects

    [pib] National Manufacturing Mission (NMM)

    Why in the News?

    The Union Finance Minister, while presenting the Union Budget 2025-26, announced the launch of the National Manufacturing Mission (NMM) to boost India’s manufacturing sector under the Make in India initiative.

    What is the National Manufacturing Mission?

    • The NMM was announced in Union Budget 2025-26 to boost India’s manufacturing sector under the Make in India initiative.
    • It covers small, medium, and large industries and aims to strengthen domestic production capabilities, enhance competitiveness, and create jobs.
    • The mission provides policy support, execution roadmaps, and governance frameworks for both central ministries and state governments.
    • It promotes Clean Tech manufacturing and focuses on developing an ecosystem for critical industrial components such as solar PV cells, EV batteries, wind turbines, and high-voltage transmission equipment.
    • Aims and Objectives:
      • Boost domestic production to reduce import dependence.
      • Enhance MSME sector growth with credit expansion (₹10 crore from ₹5 crore).

    Key Features & Significance:

    • Infrastructure & Industrial Clusters to strengthen supply chains.
    • National Action Plan for Toys to make India a global toy hub.
    • New footwear & leather industry scheme to create 22 lakh jobs and boost exports.
    • National Institute of Food Technology in Bihar to increase farmer incomes through food processing.

    Back2Basics: National Manufacturing Policy (NMP)

    • Launched in 2011 to boost India’s manufacturing sector.
    • Aims to increase GDP share to 25% and create 100 million jobs in a decade.
    • Focuses on National Investment and Manufacturing Zones (NIMZs) to attract investment and enhance productivity.
    • Promotes technology advancement, skill development, and sustainable growth with fiscal & infrastructure incentives.
    • Key areas: Ease of doing business, labor law reforms, export growth, and global competitiveness.

     

    PYQ:

    [2012] What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?

    1. Setting up of National Investment and Manufacturing Zones

    2. Providing the benefit of ‘single window clearance’

    3. Establishing the Technology Acquisition and Development Fund

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

  • Primary and Secondary Education – RTE, Education Policy, SEQI, RMSA, Committee Reports, etc.

    Bharatiya Bhasha Pustak Scheme

    Why in the News?

    In the Union Budget 2025-26, Finance Minister, has introduced the Bharatiya Bhasha Pustak Scheme to provide digital textbooks in Indian languages.

    What is Bharatiya Bhasha Pustak Scheme?

    • Aims and Objectives:
      • It will provide digital textbooks and study resources for students at the school and university levels, promoting regional languages in the education system.
      • The scheme aims to bridge the language gap by providing digital textbooks and study materials in multiple Indian languages.
      • It ensures that students from diverse linguistic backgrounds can study subjects in their mother tongue, improving comprehension and retention.
    • It aligns with the NEP 2020 vision to promote multilingualism in education.
    • It complements the ASMITA (Augmenting Study Materials in Indian Languages through Translation and Academic Writing) initiative.
      • 22,000 books in Indian languages will be developed in the next five years under ASMITA.

    Criteria and Provisions:

    • The scheme will be implemented in schools, colleges, and universities across India.
    • Institutions affiliated with UGC, AICTE, and other regulatory bodies will be part of the initiative.
    • The scheme will focus on STEM (Science, Technology, Engineering, and Mathematics), Social Sciences, Commerce, and Humanities.
    • Special emphasis on technical education in Indian languages.
    • The digital books will be available on government-supported e-learning platforms like DIKSHA, e-PG Pathshala, and National Digital Library of India.
    • AI-based tools will be used to facilitate translations, voice-assisted learning, and personalized study materials.

    PYQ:

    [2016] ‘SWAYAM’, an initiative of the Government of India, aims at:

    (a) Promoting the Self Help Groups in rural areas

    (b) Providing financial and technical assistance to young start-up entrepreneurs

    (c) Promoting the education and health of adolescent girls

    (d) Providing affordable and quality education to the citizens for free

  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    [pib] What is Geo-Economic Fragmentation?

    Why in the News?

    The Economic Survey 2024-25 highlights the shift from globalization to geo-economic fragmentation (GEF). Countries are now forming economic blocs, with concepts like “friend-shoring” gaining prominence.

    What is Geo-Economic Fragmentation (GEF)?

    • GEF refers to the breakdown of global economic integration, caused by strategic national policies.
    • It involves disruptions in trade, capital flows, foreign direct investment (FDI), and migration.
    • The shift resembles the Cold War era, with countries aligning into economic blocs.
    • Western nations’ imposition of uniform environmental, labor, and social standards has fueled economic divisions.
    • The World Trade Organization (WTO) Trade Monitoring Report (October 2024) recorded:
      • 169 new trade-restrictive measures, affecting $887.7 billion worth of trade.
      • A sharp rise from $337.1 billion in 2023, reflecting escalating protectionism.
    • The IMF notes that trade fragmentation today is costlier than during the Cold War, when global trade was just 16% of GDP.
      • Today, it is 45%, making economic isolation riskier.

    Significance and Impacts of GEF:

    • Decline of Global Trade: WTO reported 169 new trade restrictions covering $887.7 billion in 2023-24, making trade costlier.
    • FDI Relocation: Friend-shoring is concentrating FDI among geopolitically aligned nations, reducing capital for emerging economies.
    • China’s Economic Dominance: Controls 80% of solar panels, 80% of batteries, and 60% of wind energy, reshaping supply chains.
    • Supply Chain Disruptions: Firms are shifting from China to India, Vietnam, and Mexico to diversify risks.
    • Emerging Market Challenges: Increased trade barriers, inflation, and tech restrictions slow down growth.
    • Rise in Economic Nationalism: Nations are prioritizing domestic industries, energy security, and localized production over global collaboration.

    PYQ:

    [2022] Elucidate the relationship between globalization and new technology in a world of scarce resources, with special reference to India.

    [2017] Which of the following has/have occurred in India after its liberalization of economic policies in 1991?

    1. Share of agriculture in GDP increased enormously.

    2. Share of India’s exports in world trade increased.

    3. FDI inflows increased.

    4. India’s foreign exchange reserves increased enormously.

    Select the correct answer using the codes given below:

    (a) 1 and 4 only

    (b) 2, 3 and 4 only

    (c) 2 and 3 only

    (d) 1, 2, 3 and 4

  • Foreign Policy Watch: India-Myanmar

    [1st February 2025] The Hindu Op-ed: Four years on, Myanmar and its continuing nightmare

    PYQ Relevance:

    Q) Analyze internal security threats and transborder crimes along Myanmar, Bangladesh and Pakistan borders including Line of Control (LoC). Also discuss the role played by various security forces in this regard. (UPSC CSE 2020)

    Q) ‘India is an age-old friend of Sri Lanka.’ Discuss India’s role in the recent crisis in Sri Lanka in the light of the preceding statement. (UPSC CSE 2022)

     

    Mentor’s Comment: UPSC mains have always focused on Crossborder insurgency (2019), and Role of India in Southeast Asia (2017).

    The ongoing violence in Myanmar, human rights abuses, and political repression have left millions in dire conditions, with over 6,000 civilians killed and 3.5 million displaced. According to the World Bank, by 2025, around 19.9 million people—one-third of the population—are expected to require humanitarian aid, including 6.3 million children in Myanmar.

     

    As Myanmar marks four years since the military coup, today’s editorial highlights the urgent need for global attention and action. The international community’s response has been inadequate, failing to effectively challenge the junta’s grip on power. This content can be used to present Neighbourhood Policy or South Asian Democratic Crises in your Mains Answers.

    _

    Let’s learn!

    Why in the News?

    There are several significant developments surrounding the ongoing crisis in Myanmar as it marks the fourth anniversary of the military coup.

    [1st February 2025] The Hindu Op-ed: Four years on, Myanmar and its continuing nightmare

    What has been the impact of the military coup on Myanmar’s political landscape?

    The military coup in Myanmar on February 1, 2021, has drastically altered the political landscape, leading to instability and conflict. 

    • Return to Military Rule: The coup reversed a decade-long democratic transition by overthrowing the elected government of Aung San Suu Kyi’s National League for Democracy (NLD), resulting in widespread protests and civil unrest against the junta.
    • Rise in Civil Unrest and Resistance: The coup sparked massive protests and a civil disobedience movement, leading to the formation of a shadow government, the National Unity Government (NUG), by ousted lawmakers.
      • This has resulted in armed conflict with various ethnic groups and newly formed resistance forces, creating a state of civil war.
    • Human Rights Violations and Humanitarian Crisis: The military’s brutal crackdowns have led to widespread human rights abuses, including killings and arbitrary detentions. Millions have been displaced, exacerbating existing ethnic conflicts, particularly affecting the Rohingya population. The international response has largely failed to hold the military accountable.

    What are the prospects for Myanmar’s economy in 2025 considering the current socio political turmoil?

    • The World Bank forecasts a 1% contraction in Myanmar’s GDP for the fiscal year ending in March 2025, marking a significant downgrade from earlier growth expectations.
      • By 2025, around 19.9 million people—one-third of the population—are expected to require humanitarian aid, including 6.3 million children.
    • Since the military coup in February 2021, armed conflicts and natural disasters have disrupted production across sectors like agriculture and manufacturing. Recent floods have further damaged infrastructure.
    • About 25% of the population faces acute food insecurity, driven by high inflation rates projected at 26% annually. Many households struggle to afford basic necessities due to rising food prices.
    • The long-term economic outlook remains grim, with subdued growth expected even if conflict levels stabilize. Further violence or natural disasters could worsen economic conditions.

    How has the role of ASEAN evolved in addressing the Myanmar crisis?

    • Five-Point Consensus: In April 2021, ASEAN introduced a Five-Point Consensus calling for an end to violence, dialogue, humanitarian aid, and a special envoy to mediate. However, its effectiveness has been limited due to lack of inclusivity and pressure on the military junta.
    • Trioka Mechanism: ASEAN created the Trioka Mechanism to monitor the implementation of the Five-Point Consensus. This group includes Indonesia, Laos, and Malaysia but faces concerns about its ability to address Myanmar’s complex issues.
    • Humanitarian Response: ASEAN has held meetings to improve humanitarian aid delivery but struggles with implementation challenges.
    • International Engagement: External influences, like those from the EU and UN, have shaped ASEAN’s approach. Critics argue that ASEAN’s preference for dialogue over sanctions has not produced significant results.

    Way Forward:

    • The UN and ASEAN have struggled to resolve the Myanmar crisis, prompting experts to call on neighboring countries—China, India, Thailand, Bangladesh, and Laos—to take action, as the situation threatens their interests.
      • However, challenges persist: borders with India and Bangladesh are controlled by ethnic armed organizations (EAOs), trust issues exist between India and China, and India-Bangladesh relations are strained.
      • This makes it difficult for these nations to reach a consensus on how to encourage peace.
    • Thailand, as a significant ASEAN member, could play a crucial role but faces its own limitations.
      • Meanwhile, China’s influence has grown since the coup, and experts suggest that Myanmar’s people should not rely on external help; instead, their leaders must prioritize dialogue over violence to avoid further suffering.
  • Economic Indicators and Various Reports On It- GDP, FD, EODB, WIR etc

    A pragmatic picture: Economic Survey

    Why in the News?

    The Budget session of Parliament has started at a time when India’s economic situation is shifting. After four years of strong growth following the pandemic, the economy is slowing down.

    What are the key projections for India’s economic growth in FY 2024-25?

    • Projected GDP Growth: The National Statistical Office (NSO) has estimated that India’s GDP will grow by 6.4% in FY 2024-25. This figure marks a decline from the 8.2% growth recorded in FY 2023-24 and is lower than earlier forecasts which ranged from 6.5% to 7%.
    • Sectoral Performance: The slowdown is attributed to weaker performance in sectors such as manufacturing and services. The first half of FY 2024-25 is expected to see a growth rate of around 6%, necessitating a stronger performance of 6.8% in the second half to meet the annual target.
    • Comparative Estimates: While the NSO’s estimate stands at 6.4%, other organizations like the International Monetary Fund (IMF) have projected a slightly higher growth rate of 7%, reflecting differing outlooks on economic recovery and consumer demand.

    How does the Economic Survey address challenges such as inflation and global uncertainties?

    • Food Inflation Concerns: Despite the overall decline in inflation, food inflation remains a challenge, rising from 7.5% in FY24 to 8.4% in the same period due to supply chain disruptions and adverse weather conditions. 
      • The survey emphasizes the need for improved agricultural practices and climate-resilient crops to manage these risks effectively.
    • Inflation Trends: The survey reports a reduction in retail inflation from 5.4% in FY24 to 4.9% during April-December 2024, indicating a positive trend towards achieving the RBI’s target of around 4% by FY26, contingent on stable global commodity prices and favorable domestic agricultural output.
    • Global Economic Uncertainties: The survey highlights that ongoing geopolitical tensions and global trade risks pose significant challenges to inflation management, necessitating careful policy interventions to mitigate potential impacts on the domestic economy.
    • Policy Recommendations: To address these challenges, the Economic Survey advocates for strategic policy measures, including enhancing supply chain resilience, improving data collection for better price monitoring, and fostering an environment conducive to investment and growth.

    What structural reforms are recommended to enhance long-term economic stability?

    • Deregulation and Ease of Doing Business: The Economic Survey advocates for significant deregulation to foster a more conducive business environment. It stresses that the government should “get out of the way” of businesses by minimizing micro-management and enhancing accountability among regulators.
    • Empowering Small Firms: Recommendations include empowering small enterprises, enhancing economic freedom, and ensuring a level playing field across sectors to stimulate growth and investment.
    • Focus on Domestic Demand: The budget is expected to prioritize boosting domestic demand through increased government spending, particularly in infrastructure and capital projects, as a countermeasure against global uncertainties and inflationary pressures.

    Way forward: 

    • Strengthen Domestic Resilience – Focus on boosting domestic consumption and investment through targeted fiscal measures, infrastructure expansion, and support for MSMEs to counter global uncertainties.
    • Enhance Inflation Management – Implement climate-resilient agricultural policies, improve supply chain efficiency, and strengthen monetary-fiscal coordination to maintain stable inflation and ensure sustainable growth.

    Mains PYQ:

    Q Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India.(UPSC IAS/2022)

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

    India is heading into a middle income trap

    Why in the News?

    Ahead of the Union Budget, the Congress released a report on January 30, 2025, saying that India is at risk of getting stuck in the middle-income trap.  

    What is the classification of Countries given by the World Bank?

    The World Bank classifies countries into four income groups based on their Gross National Income (GNI) per capita.  

    • Low-Income Countries: These are nations with a GNI per capita of $1,145 or less. This group typically includes countries facing significant economic challenges and lower levels of development.
    • Lower-Middle-Income Countries: Countries in this category have a GNI per capita ranging from $1,146 to $4,515. This group often includes emerging economies that are in the process of development but still face various socio-economic issues.
    • Upper-Middle-Income Countries: This classification includes countries with a GNI per capita between $4,516 and $14,005. These nations generally have more developed economies and better infrastructure compared to lower-middle-income countries.
    • High-Income Countries: These are countries with a GNI per capita exceeding $14,005. This group includes the most developed economies with high standards of living and advanced infrastructure.

    What factors contribute to India being at risk of falling into a middle-income trap?

    • Low GDP Growth: India’s projected GDP growth rate for 2024-25 is around 6.4%, significantly lower than the 8% needed to leverage its demographic dividend effectively, indicating a slowdown in economic momentum.
    • Food Inflation Concerns: Despite the overall decline in inflation, food inflation remains a challenge, rising from 7.5% in FY24 to 8.4% in the same period due to supply chain disruptions and adverse weather conditions. 
    • Private Sector Investment: Despite corporate tax cuts, private sector investment has not significantly increased. The Economic Survey 2024-25 indicates that Gross Fixed Capital Formation (GFCF), a crucial indicator of investment activity, slowed to 5.4% in the recent quarter, reflecting a decline in private capital expenditure.
    • Government Capital Expenditure: The survey notes that government capital expenditure utilization was only 37.3% in the first half of FY25, down from 49% the previous year, which has contributed to the overall slowdown in investments.
    • Low Incomes: A significant portion of India’s population lives on extremely low incomes, with estimates suggesting that about 50% of the population earns between ₹100 and ₹150 per day. This level of income severely limits consumer spending capacity and economic growth potential.

    How does the current economic policy framework address the challenges? (Way forward)

    • Next-Generation Reforms: The Union Budget 2024-25 emphasizes “Next Generation Reforms” aimed at enhancing productivity and market efficiency across various sectors. 
      • This includes a comprehensive Economic Policy Framework that focuses on improving factors of production land, labour, capital, and entrepreneurship while leveraging technology to reduce inequality and boost economic growth.
    • Deregulation and Economic Freedom: The Economic Survey highlights the need for deregulation and grassroots reforms to enhance the competitiveness of the economy. It advocates for greater economic freedom, allowing individuals and organizations to pursue legitimate economic activities without excessive regulatory burdens.  
    • Public-Private Partnerships and Infrastructure Investment: The framework encourages public-private partnerships (PPPs) in infrastructure projects, facilitating greater collaboration between the government and private sector. 
      • By removing policy hurdles and providing upfront support for long-term projects, the government aims to attract patient capital necessary for sustainable development, which is critical for addressing current economic challenges

    Mains PYQ:

    Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (UPSC IAS/2019)

  • Waste Management – SWM Rules, EWM Rules, etc

    Supreme Court (SC) bans Manual Scavenging in 6 cities in a writ petition

    Why in the News?

    Recently, the Supreme Court ordered a complete ban on manual scavenging and unsafe cleaning of sewers and septic tanks in major cities across India.

    What measures will be implemented to ensure compliance with the ban?

    • Affidavit Submission: The court has directed the Chief Executive Officers (CEOs) of the six metropolitan cities—Delhi, Mumbai, Chennai, Kolkata, Bengaluru, and Hyderabad to file detailed affidavits by February 13, 2025. 
      • These affidavits must outline how and when manual scavenging and sewer cleaning will cease in their respective cities.
    • Monitoring Progress: The court is actively monitoring compliance with its previous judgments, particularly the one from October 2023, which mandated actions to eliminate manual scavenging practices.
    • Implementation of Technology: The court noted that modern machinery and technology are available for sewer cleaning, suggesting that human involvement should no longer be necessary.

    Why is Manual scavenging banned in India? 

    • Severe Health Risks: Manual scavengers are exposed to hazardous conditions that pose significant health risks, including exposure to harmful pathogens and toxic gases. This can lead to a range of serious health issues, such as respiratory problems, gastrointestinal diseases, and skin infections.  
    • Social Stigma and Discrimination: Individuals engaged in manual scavenging often face severe social stigma and discrimination due to the nature of their work, which is viewed as “unclean” and tied to lower castes in the Indian caste system. 
      • This stigma affects not only the workers but also their families, perpetuating cycles of poverty and limiting access to education and better employment opportunities for their children.

    What consequences will officials face for failing to comply with the court’s order?

    • Judicial Displeasure: The court expressed frustration over past non-compliance with its orders, indicating that failure to adhere to this latest directive could lead to serious repercussions. The justices stated, “Either do it or face consequences,” emphasizing their determination to enforce compliance.
    • Potential Legal Action: While specific penalties were not outlined in this order, the strong language used by the court suggests that further legal action could be pursued against officials who fail to comply with the ban on manual scavenging and sewer cleaning.

    What are the significance of this action?

    • Human Rights Protection: This ruling is a critical step towards protecting the rights and dignity of marginalized communities who have historically been forced into manual scavenging. The court’s actions highlight the ongoing struggle against inhumane labour practices that violate basic human rights.
    • Public Health Improvement: By banning hazardous practices such as manual sewer cleaning, the court aims to reduce health risks associated with exposure to toxic gases and pathogens that affect workers in this field.
    • Legal Enforcement of Existing Laws: This action reinforces existing legislation aimed at prohibiting manual scavenging, including the Prohibition of Employment as Manual Scavengers and the Rehabilitation Act of 2013. It underscores the need for effective implementation of laws designed to protect vulnerable populations.

    Way forward: 

    • Strict Law Enforcement & Accountability: The government must establish a robust monitoring mechanism with regular audits, strict penalties for violations, and legal action against officials failing to comply with the Supreme Court’s order.
    • Technological Adoption & Worker Rehabilitation: Municipal bodies should prioritize mechanized cleaning solutions while ensuring alternative employment, skill training, and financial support for former manual scavengers to facilitate their reintegration into society.

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