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Archives: News

  • Defence Sector – DPP, Missions, Schemes, Security Forces, etc.

    DAC Grants AoN Worth ₹3.6 Lakh Crore for Rafale, P-8I and Major Defence Modernisation Push

    Why in the News?

    The Defence Acquisition Council chaired by Rajnath Singh has granted Acceptance of Necessity for defence procurement proposals worth about ₹3.6 lakh crore, including 114 Rafale fighter jets and six P-8I aircraft.

    About Defence Acquisition Council

    • Apex decision making body for capital procurement in the Ministry of Defence after the Kargil War of 1999.
    • Headed by the Defence Minister
    • Grants Acceptance of Necessity, which is the first formal step in defence procurement
    • Functions under the framework of the Defence Acquisition Procedure 2020

    Composition 

    • The council is chaired by the Defence Minister (Raksha Mantri). Key members include the Chief of Defence Staff, the three Service Chiefs (Army, Navy, Air Force), and the Defence Secretary, with the Deputy Chief of Defence Staff (Planning & Procurement) as Member Secretary.

    Key Points: Recent procurement proposals: 

    • Acceptance of Necessity (AoN): First stage of capital procurement approval under Defence Acquisition Procedure 2020.
    • Indian Air Force: 114 Rafale Multi Role Fighter Aircraft, combat missiles, and High Altitude Pseudo Satellite for ISR and ELINT roles.
    • Indian Navy: Six P-8I long range maritime reconnaissance aircraft for anti submarine warfare and maritime strike capability.
    • Indian Army: Procurement of Vibhav anti tank mines and overhaul of T-72, BMP II and armoured recovery vehicles.
    [2024] Consider the following aircraft: 

    1. Rafael 

    2. MiG-29 

    3. Tejas MK-1 

    How many of the above are considered fifth generation fighter aircraft? 

    (a) Only one (b) Only two (c) All three (d) None

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

    New CPI Inflation Series (Base Year 2024): Food Weight Reduced to 37%

    Why in the news?

    India’s new Consumer Price Index (CPI) series with base year 2024 will reduce the weight of food and beverages from 45.86% to 36.75%, aligning the inflation basket with updated household consumption patterns from the 2023–24 Household Consumption Expenditure Survey (HCES).

    What is CPI?

    The Consumer Price Index (CPI) measures retail inflation by tracking changes in prices of goods and services consumed by households.

    It is:

    • The headline inflation measure in India
    • Used by the Reserve Bank of India for monetary policy
    • Based on periodic base year revision to reflect current consumption patterns

    Key Changes in the New CPI Series

    • Food Weight Reduced
      • From 45.86% → 36.75%
      • Reflects decline in food expenditure share
      • Based on Engel’s Law: As income rises, share of food expenditure falls
    • HCES Findings:
      • Rural food share: 52.9% (2011–12) → 47.04% (2023–24)
      • Urban food share: 42.62% → 39.68%
    • Housing Weight Increased
      • From 10.07% → 17.66%
      • Now includes: Water, Electricity, Gas and Other fuels
      • Methodological change: Employer provided accommodation excluded
      • This may exert upward pressure on inflation.
    • Basket Expansion
      • Items increased from 299 → 358
      • Reclassification of categories
      • Linking factor to be released for back series comparison

    Why Was High Food Weight a Concern?

    • Food inflation is often supply driven.
    • Monetary policy cannot control vegetable or cereal supply in short run.
    • High food weight caused:
      • Excess volatility in headline inflation
      • Constraints on repo rate decisions

    Example:

    • October 2025 CPI: 0.25%
    • Food inflation: (-)5.02%
    • Food price fall dragged headline inflation sharply lower

    Implications for RBI

    • The RBI follows Flexible Inflation Targeting (FIT):
      • Target: 4%
      • Tolerance band: 2–6%
      • Mandated under RBI Act amendment (2016)
    • Lower food weight may:
      • Reduce volatility
      • Give clearer signal of core inflation
      • Improve monetary policy transmission
      • However, higher housing weight may increase measured inflation.
    [2020] Consider the following statements: 

    1. The weightage of food in Consumer Price Index (CPI) is higher than that of Wholesale Price Index (WPI). 

    2. The WPI does not capture changes in the prices of services, which CPI does. 

    3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. 

    Which of the statements given above is/are correct? 

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

  • Foreign Policy Watch: India-Pakistan

    Pakistan Raises Indus Waters Issue over Sawalkot Dam

    Why in the News?

    Pakistan’s Foreign Office has stated that it has formally sought details from India regarding the Sawalkot Dam project, asserting that there will be no compromise on Pakistan’s water rights under the Indus Waters Treaty (IWT).

    Indus Waters Treaty (1960)

    Key Features

    • Signed in 1960 between:
      • India
      • Pakistan
      • Brokered by the World Bank

    River Allocation

    • Eastern Rivers (Exclusive use to India): Ravi, Beas and Sutlej
    • Western Rivers (Primarily for Pakistan, limited use to India): Indus, Jhelum and Chenab
    • India can build:
      • Run of the river hydroelectric projects
      • Non consumptive use projects
        But must share technical details with Pakistan.

    Sawalkot Dam Issue

    • Proposed on the Chenab River in Jammu and Kashmir.
    • Pakistan’s Indus Water Commissioner has written to India seeking:
      • Complete technical details
      • Design specifications
      • Compliance verification under IWT
    [2009] Consider the following statements: 

    1. The Baglihar Power Project had been constructed within the parameters of the Indus Water Treaty. 

    2. The project was completely built by the Union Government with loans from Japan and the World Bank. 

    Which of the statements given above is/are correct? 

    (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

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

    Supreme Court Stays Haryana’s Aravalli Zoo Safari Project

    Why in the news?

    • The Supreme Court of India has refused to allow the Haryana government to proceed with its proposed Aravalli Zoo Safari Project until the definition of the “Aravalli Range” is scientifically clarified by experts.
    • The Court observed that no one will be allowed to “touch the Aravallis” until the matter is conclusively settled.

    About the Aravalli Range

    • One of the oldest fold mountain ranges in the world
    • Extends across Gujarat, Rajasthan, Haryana and Delhi
    • Acts as:
      • Natural barrier against desertification from the Thar Desert
      • Groundwater recharge zone
      • Biodiversity hotspot
      • Climate regulator for North India

    What is the Zoo Safari Project?

    • Proposed by Haryana Government
    • Initially planned over 10,000 acres, later reduced to 3,300 acres
    • Envisioned as the world’s largest zoo safari
    • Includes:
      • Big cat zones
      • Enclosures for birds, reptiles and butterflies
    • Located in Gurgaon and Nuh districts
    • Petitioners, including retired Indian Forest Service officers and NGO “People for Aravallis”, argued that the project could further degrade the ecologically fragile region.
    [2012] When you travel in Himalayas, you will see the following: 

    1. Deep gorges 

    2. U-turn river courses 

    3. Parallel mountain ranges 

    4. Steep gradients causing land sliding 

    Which of the above can be said to be the evidence for Himalayas being young fold mountains? 

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

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

    [12th Februrary 2026] The Hindu OpED: The CPI base revision exercise measures a slice of life

    PYQ Relevance[UPSC 2023] Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. Linkage: Unemployment and inflation are core GS-3 macro indicators influencing growth and monetary policy. Just as CPI base revision affects inflation measurement, unemployment estimates depend on survey methodology (PLFS), shaping policy credibility and reform design.

    Why in the News?

    The Ministry of Statistics and Programme Implementation (MoSPI) has decided a comprehensive exercise for revision of the base year of Gross Domestic Product (GDP), Index of Industrial Production (IIP) and Consumer Price Index (CPI) to enhance their relevance, accuracy and international comparability. The proposed new base year for the GDP and IIP is 2022-23, and for CPI the proposed base year is 2024. The revision of CPI will be done using findings from the latest Household Consumption Expenditure Survey (HCES). The revision recalibrates expenditure weights to reflect structural shifts in consumption patterns over the past decade. Since CPI is the anchor for inflation targeting and monetary policy, changes in its composition directly influence measured inflation and policy response. The exercise also gains significance after gaps in consumption data, making representativeness and credibility central concerns.

    What is CPI and Why is it Important?

    Consumer Price Index (CPI) measures the average change over time in the retail prices of a fixed basket of goods and services consumed by households. It reflects retail inflation and serves as the nominal anchor under India’s inflation targeting framework.

    1. Retail Inflation Measure: Tracks price changes at the consumer level across goods and services.
    2. Inflation Target Anchor: Forms the basis of RBI’s flexible inflation targeting framework.
    3. Cost-of-Living Indicator: Reflects purchasing power of households.
    4. Policy Benchmark: Guides interest rate decisions, wage revisions and welfare indexation.
    5. Macroeconomic Signal: Influences investor expectations and economic outlook.

    Why Was Base Year Revision Necessary?

    1. Outdated Consumption Weights: 2012 basket no longer reflects current spending behaviour.
    2. Structural Economic Shift: Expansion of services sector and urbanisation since 2012.
    3. Consumption Diversification: Rising share of telecom, transport and service expenditures.
    4. Reduced Food Share: Relative decline in food and clothing weight in total expenditure.
    5. Data Discontinuity Concern: Delay in updated consumption data affected representativeness.

    How Does the CPI Basket Reflect Structural Changes in Society?

    1. Shift from Goods to Services: Higher expenditure on communication, transport and service-based consumption.
    2. Urbanisation Impact: Changing food habits, mobility patterns and housing expenditure.
    3. Changing Aspirations: Rising discretionary spending relative to subsistence consumption.
    4. Technology Integration: Inclusion of modern consumption categories such as telecom services.
    5. Rural-Urban Convergence: Updated survey captures evolving rural consumption patterns.
    6. Declining Engel Ratio: Reduced proportional spending on food indicates income progression.

    What Are the Macroeconomic Implications of CPI Base Year Revision?

    1. Inflation Recalibration: Weight changes can alter headline and core inflation trends.
    2. Monetary Policy Adjustment: RBI policy stance depends on CPI trajectory.
    3. Real Interest Rate Impact: Changes in measured inflation affect real returns.
    4. Fiscal Planning Effect: Influences subsidy indexation and welfare transfers.
    5. Market Signalling: Alters inflation expectations in financial markets.
    6. Credibility Enhancement: Strengthens confidence in official inflation statistics.

    Conclusion

    CPI base revision updates inflation measurement to reflect contemporary consumption patterns. It strengthens accuracy, improves macroeconomic signalling and supports effective monetary policy.

  • Tax Reforms

    Taxpayer base more than doubled in the last decade

    Why in the News?

    India’s direct tax system has recorded sustained expansion in both individual and non-individual taxpayers. India’s taxpayer base has more than doubled over the last decade, with individual taxpayers rising from 3.26 crore in AY2013-14 to nearly 7.26 crore in AY2024-25, while the total base expanded to about 4.8 crore. Simultaneously, the cost of collecting direct taxes declined to 0.41% in FY2024-25 (provisional), the lowest in available data.The increase reflects administrative reforms, digitalisation of filing systems, and structural strengthening of compliance mechanisms.

    What is the scale of expansion in the taxpayer base?

    1. Individual taxpayers: Increased from 3.26 crore (AY2013-14) to nearly 7.26 crore (AY2024-25), more than doubling in a decade.
    2. Total taxpayer base: Expanded from about 2.9 crore in AY2013-14 to nearly 4.8 crore in AY2024-25.
    3. Growth rate: Registered a CAGR of approximately 5% over the period.
    4. Peak annual growth: 7.89% CAGR observed during the period.
    5. Pandemic disruption: Growth slowed sharply in FY2020-21 due to COVID-19-related economic disruption.
    6. Recovery phase: Growth rebounded in subsequent years, indicating durability of expansion.

    How has the composition of taxpayers evolved?

    1. Dominance of individuals: Individual taxpayers continue to dominate the system.
    2. Non-individual taxpayers: Includes firms, companies, LLPs, Association of Persons (AOPs), Body of Individuals (BOIs), local authorities, and artificial juridical persons.
    3. Steady growth in non-individuals: Growth remained more stable compared to individuals, without major pandemic volatility.
    4. Broader base expansion: Evidence suggests increasing formalisation across business entities.

    What institutional changes supported this expansion?

    1. Digital filing systems: Increased reliance on online return filing.
    2. Pre-filled returns: Reduced compliance burden and errors.
    3. Expanded third-party reporting: Strengthened information matching.
    4. Reduced face-to-face interactions: Enhanced transparency and minimised discretion.
    5. Compliance friction reduction: Enabled smoother onboarding of taxpayers.
    6. Administrative strengthening: Indicated by consistent year-on-year improvements.

    What does the cost of collection indicate?

    1. Declining cost of collection: Reduced from 0.61% of gross direct tax collections (FY2000-01) to 0.41% (FY2024-25 provisional).
    2. Lowest in available data series: Reflects sustained administrative efficiency.
    3. Pandemic spike: Temporary rise in FY2020-21 due to disruptions.
    4. Post-pandemic correction: Returned to declining trajectory.
    5. Efficiency gain: Indicates improved revenue mobilisation per rupee spent.

    What does this imply for fiscal capacity and governance?

    1. Structural strengthening: Evidence suggests durable expansion, not a one-time compliance surge.
    2. Formalisation of economy: Broader cross-section of taxpayers entering formal net.
    3. Revenue resilience: Supports fiscal planning and long-term budgeting.
    4. Administrative modernisation: Reflects digital governance success.
    5. Compliance culture: Indicates deeper tax participation.

    Conclusion

    The sustained expansion of the taxpayer base alongside declining cost of collection signals structural strengthening of India’s direct tax system. The evidence suggests institutional reform, digitalisation, and broader formalisation have enhanced fiscal resilience and administrative efficiency.

    PYQ Relevance

    [UPSC 2019] Enumerate the indirect taxes which have been subsumed in the goods and services tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017.

    Linkage: This question tests understanding of how tax reforms expand the revenue base and strengthen fiscal capacity, a core GS3 theme. The article shows how widening the taxpayer base and improving compliance are part of the same structural shift that GST triggered in India’s tax ecosystem.

  • Finance Commission – Issues related to devolution of resources

    Have States gained from the 16th FC

    Why in the news?

    The 16th Finance Commission (FC) submitted its report for 2026-31, reopening debates on fiscal federalism. The 14th FC had raised vertical devolution from 32% to 42%, marking a structural shift. The 15th FC reduced it to 41% due to the reorganisation of Jammu and Kashmir into two Union Territories. Industrialised States demanded an increase to 50%, while several States sought restoration to 45-48%. The divisible pool has shrunk due to rising cesses and surcharges, which formed around 19% of gross tax revenue in 2015-16, leaving only 81% for distribution. The issue highlights tensions between equity-based redistribution and efficiency-based reward mechanisms.

    Introduction

    The 16th Finance Commission  chaired by Dr. Arvind Panagariya, submitted its final report to the President of India on November 17, 2025. Its recommendations, which cover the five-year period from April 1, 2026, to March 31, 2031, were accepted by the Union Government and tabled in Parliament on February 1, 2026

    What is the constitutional and institutional framework governing tax devolution?

    1. Article 270: Provides for distribution of net tax proceeds between Centre and States.
    2. Article 280: Mandates constitution of Finance Commission to recommend devolution formula.
    3. Divisible Pool: Includes corporation tax, personal income tax, Central Goods and Services Tax (CGST), and Centre’s share of Integrated GST.
    4. Exclusion of Cesses and Surcharges: These are not part of the divisible pool. In 2015-16, divisible pool constituted about 81% of gross tax revenue due to this exclusion.

    How has vertical devolution evolved over time?

    1. 13th FC (2010-15): Provided 32% share to States. Maintained specific transfers for Centrally Sponsored Schemes (CSS) with conditionalities.
    2. 14th FC (2015-20): Increased States’ share to 42%. Discontinued specific CSS transfers. Marked significant fiscal decentralisation.
    3. 15th FC (2020-26): Reduced share to 41% due to reorganisation of Jammu and Kashmir into Union Territories.
    4. 16th FC (2026-31): Retained 41% vertical devolution.

    What criteria guide horizontal devolution among States?

    13th FC Criteria:

    1. Income Distance (47.5%): Favoured poorer States to reduce fiscal disparities.
    2. Population (1971) (25%): Reflected demographic basis.
    3. Area (10%): Addressed administrative cost variations.
    4. Fiscal Discipline (17.5%): Incentivised prudent financial management.

    14th FC Criteria:

    1. Income Distance (50%): Increased equity emphasis.
    2. Population (1971) (17.5%) & Population (2011) (10%): Incorporated updated demographic data.
    3. Area (15%): Continued geographic consideration.
    4. Forest Cover (7.5%): Recognised ecological services.

    15th FC Criteria:

    1. Income Distance (45%): Slight reduction in redistributive weight.
    2. Population (2011) (15%): Sole population criterion.
    3. Area (15%) & Forest (10%): Maintained ecological compensation.
    4. Demographic Performance (12.5%): Incentivised population control.
    5. Tax Effort (2.5%): Rewarded revenue mobilisation.
    6. State’s Contribution to GDP (10%): Recognised growth contribution.

    What were the demands of States before the 16th FC

    1. Higher Vertical Share: Industrialised States such as Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Telangana demanded an increase from 41% to 50%.
    2. Restoration Demand: Several States sought to increase to 45-48%.
    3. Inclusion of Cesses and Surcharges: States demanded their inclusion in the divisible pool.
    4. Cap on Cesses: Sought ceiling on Centre’s ability to levy cesses and surcharges.
    5. GDP Contribution Criterion: Industrialised States advocated inclusion of States’ contribution to GDP in horizontal devolution formula.

    What did the 16th FC recommend?

    1. Vertical Devolution: The share of states in the divisible pool of central taxes has been retained at 41%, the same level as the 15th Finance Commission
    2. Horizontal Devolution Formula: A new formula was introduced to determine how the 41% is divided among individual states. Horizontal Devolution Approach: is guided by two principles: Equity Consideration: Recognises need to address inter-State income disparities. And Efficiency Recognition: Gives due weight to States’ contributions to growth and fiscal performance. Notable changes include:
      1. Contribution to GDP: A new criterion with a 10% weight to reward states’ economic performance
      2. Income Distance: Weight reduced to 42.5% (from 45%).
      3. Population: Based on the 2011 Census, with a weight of 17.5%
      4. Forest & Ecology: Weight maintained at 10%, but now includes “open forests” and rewards increases in forest cover.
    3. Grants-in-Aid: Recommended total grants of ₹9.47 lakh crore over five years.
      1. Discontinued Grants: The Commission has stopped Revenue Deficit Grants (RDG), sector-specific grants, and state-specific grants
      2. Local Body Grants: ₹8 lakh crore allocated, split 60:40 between rural (₹4.4 lakh crore) and urban (₹3.6 lakh crore) bodies.
    4. Fiscal Roadmap:
      1. Centre’s Fiscal Deficit: Target to reduce to 3.5% of GDP by 2030-31.
      2. States’ Fiscal Deficit: Capped at 3% of GSDP.
      3. Off-Budget Borrowings: Recommended a strict end to off-budget borrowings for both Centre and States. 

    What are the broader fiscal implications?

    1. Redistribution vs Incentives: Higher income distance weight benefits poorer States; GDP contribution and tax effort reward growth-oriented States.
    2. Shrinking Divisible Pool: Rising cesses reduce effective devolution.
    3. Union Fiscal Needs: Increased defence and infrastructure expenditure cited as constraints.
    4. State-Level Reforms: Recommends subsidy targeting, power sector reforms, and fiscal deficit control.

    Conclusion

    The 16th Finance Commission retains the 41% vertical devolution, maintaining continuity with the 15th FC despite demands for expansion. It upholds constitutional limits on cesses and surcharges while balancing equity through income distance and efficiency through recognition of States’ GDP contribution and fiscal performance. The recommendations reflect calibrated fiscal federalism, where redistribution, growth incentives, and Union fiscal requirements coexist within constitutional boundaries.

    PYQ Relevance

    [UPSC 2020] Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions?

    Linkage: The question directly connects to the debate on shrinking divisible pool, rising cesses and surcharges, and the resulting Centre-State fiscal tensions that frame the discussion on vertical devolution and fiscal federalism.

  • Festivals, Dances, Theatre, Literature, Art in News

    National Song Guidelines Issued by Government of India

    Why in the News

    The Ministry of Home Affairs has reiterated guidelines regarding the playing and singing of the National Song, including procedural aspects such as drum roll before band performance and mass singing protocols.

    What are the Special Orders

    • The Government of India, through the Ministry of Home Affairs, has issued executive instructions regulating the manner in which the National Song Vande Mataram may be played and sung on official and significant occasions.
    • These are executive guidelines issued under Article 73 of the Constitution, not under any specific Act of Parliament.

    Key Provisions

    • Playing by Band: When played by a band, the National Song should be preceded by a roll of drums to alert the audience, unless another clear indication is given.
    • Official Version: Only the official version should be used. It should be accompanied by mass singing on occasions such as
      • Unfurling of the National Flag
      • Cultural or ceremonial functions other than parades
      • A trained choir may be arranged to coordinate with the band. Adequate public address systems should be ensured. Printed lyrics may be circulated where required.
    • Other Significant Occasions: It may be sung on occasions invested with significance due to the presence of Ministers or dignitaries. There is no exhaustive list of such occasions. Respect and proper decorum must always be maintained.
    • In Schools: The day may begin with community singing of the National Song. School authorities should promote respect for
      • National Song
      • National Anthem
      • National Flag

    Constitutional and Legal Position

    • The National Song is not mentioned in the Constitution of India.
    • There is no law mandating compulsory singing.
    • It does not have statutory protection similar to the National Anthem under the Prevention of Insults to National Honour Act, 1971.
    [2023] Consider the following statements in respect of the National Flag of India according to the Flag Code of India, 2002: 

    Statement-I: One of the standard sizes of the National Flag of India is 600 mm × 400 mm. 

    Statement-II: The ratio of the length to the height (width) of the Flag shall be 3 : 2. 

    Which one of the following is correct in respect of the above statements? 

    (a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I 

    (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I 

    (c) Statement-I is correct but Statement-II is incorrect 

    (d) Statement-I is incorrect but Statement-II is correct

  • Modern Indian History-Events and Personalities

    Deendayal Upadhyaya  

    Why in the News

    The Vice-President of India paid tributes to Deendayal Upadhyaya on his death anniversary, recalling his philosophy of Integral Humanism and his vision of Antyodaya.

    Key Facts

    • Born: 1916
    • Died: 11 February 1968
    • President of Bharatiya Jana Sangh
    • Political philosopher and organiser

    Major Contributions

    • Philosophy of Integral Humanism

        • Propounded in 1965.
        • Advocated holistic development of body, mind, intellect and soul.
        • Emphasised harmony between individual, society and nature.
        • Rejected both extreme capitalism and state socialism.
    • Concept of Antyodaya

        • Welfare of the last person in the social order.
        • Inspired several later welfare schemes and inclusive development models.
    • Political Organisation

        • Strengthened and expanded the Bharatiya Jana Sangh.
        • Contributed to ideological consolidation of nationalist politics in post independence India.
    • Economic Thought

      • Promoted self reliance and decentralised economy.
      • Emphasised indigenous models of development rooted in Indian culture.
    [2018] Who among the following were the founders of the “Hind Mazdoor Sabha” established in 1948? 

    (a) B. Krishna Pillai, E.M.S. Namboodiripad and K.C. George 

    (b) Jayaprakash Narayan, Deendayal Upadhyaya and M.N. Roy (Option provided) 

    (c) C.P. Ramaswamy Iyer, K. Kamaraj and Veeresalingam Pantulu 

    (d) Ashok Mehta, T.S. Ramanujam and G.G. Mehta

  • Steel Industry – Current challenges, National Steel Policy 2017, etc

    Carbon Capture to Drive India’s Green Steel Transition

    Why in the News

    The Prime Minister shared an article highlighting the role of Carbon Capture, Utilisation and Storage in decarbonising India’s steel sector, aligning with India’s Net Zero 2070 commitment.

    India’s Steel Sector at a Glance

    • India is the world’s second largest crude steel producer.
    • Production: Around 152 million tonnes in FY 2024-25.
    • Target under National Steel Policy 2017:
      • 300 million tonnes by 2030-31
      • 500 million tonnes by 2047

    Note: Steel production contributes nearly 10 to 12 percent of India’s total greenhouse gas emissions due to coal based blast furnace and direct reduced iron routes.

    What is CCUS

    Carbon Capture, Utilisation and Storage involves:

    • Capturing carbon dioxide from industrial processes
    • Utilising it for industrial applications or
    • Storing it underground to prevent atmospheric release

    It helps address process emissions that cannot be eliminated through energy efficiency or renewable power alone.

    Government Measures

    • Green Steel Taxonomy:Defines emission intensity benchmark: Less than 2.2 tonnes of CO2 equivalent per tonne of finished steel
      • Introduces star rating framework
    • National Green Hydrogen Mission: ₹455 crore allocated for pilot projects in steel sector
    • Union Budget Allocation: ₹20,000 crore for piloting CCUS across five sectors including steel

    Significance

    • Helps decarbonise existing steel plants without immediate asset replacement
    • Enhances global competitiveness amid carbon border measures
    • Supports Net Zero 2070 target
    • Encourages industrial ecosystems around carbon transport and storage
    [2023] Consider the following heavy industries: 

    1. Fertilizer plants 

    2. Oil refineries 

    3. Steel plants 

    Green hydrogen is expected to play a significant role in decarbonizing how many of the above industries? 

    (a) Only one (b) Only two (c) All three (d) None

  • Festivals, Dances, Theatre, Literature, Art in News

    Indian Inscriptions Found in Egypt’s Valley of the Kings

    Why in the News

    Researchers have identified nearly 30 Indian inscriptions in the Valley of the Kings in Egypt, shedding new light on trade and cultural links between ancient Tamilagam, other parts of India and the Roman Empire during the 1st to 3rd centuries CE.

    Key Findings

    • Tamil Majority Presence

      • Most inscriptions belong to individuals from southern India, especially ancient Tamilagam, though some were from north-western and western India.
    • Repeated Name: Cikai Koṟṟaṉ

      • Appears eight times across five tombs.
      • Found near entrances and high interior walls.
      • The term Koṟṟaṉ has Tamil roots associated with victory and warfare.
      • Related to the Chera warrior goddess Koṟṟavai and the word koṟṟavaṉ meaning king.
    • The name also appears in:
      • Sangam literature such as Purananooru
      • Inscriptions from Pugalur, linked to the Chera dynasty
      • A pottery sherd found at Berenike in Egypt
    • Other Tamil Names

      • Kopāṉ varata kantan meaning Kopāṉ came and saw
      • Cātaṉ
      • Kiraṉ

    The name Kopāṉ has also been found at Ammankovilpatti in Tamil Nadu.

    Historical Significance

    • Confirms movement of Indian traders or visitors beyond Red Sea ports into the Nile valley.
    • Strengthens evidence of Indo Roman trade links.
    • Earlier excavations at Berenike had already shown Indian trade presence.
    • This discovery shifts focus from coastal trade points to inland Egyptian sites.
    [2023] With reference to ancient South India, Korkai, Poompuhar and Muchiri were well known as: 

    (a) capital cities 

    (b) ports 

    (c) centres of iron and steel making 

    (d) shrines of Jain Tirthankaras

  • Artificial Intelligence (AI) Breakthrough

    [11th February 2026] The Hindu OpED: The approaching AI surge, its global consequences

    PYQ Relevance

    [UPSC 2023] Introduce the concept of Artificial Intelligence (AI). How does Al help clinical diagnosis? Do you perceive any threat to privacy of the individual in the use of Al in healthcare?

    Linkage: It falls under GS III-Awareness in the fields of IT, testing conceptual clarity, application of emerging technologies, and governance implications. The article’s focus on AI-driven decision-making and reduced human oversight directly parallels concerns over clinical autonomy and patient data privacy in AI-based healthcare.

    Mentor’s Comment

    Artificial Intelligence is no longer confined to laboratories, it is entering courtrooms, government systems, and battlefields. This topic is crucial because it shows how technology is reshaping institutions, decision-making structures, and even global power equations. Understanding these wider implications makes it highly relevant for GS III.

    Why in the News?

    Artificial Intelligence has reached a structural inflection point comparable to the Industrial Revolution. Large Language Models now process and generate language at speeds exceeding human capacity. Rivalry between the United States and China has intensified in AI development. AI has begun transforming military systems, governance processes, and economic sectors.

    The World Economic Forum (Davos) identified AI as a force multiplier in an ongoing global rupture. Unlike earlier technological shifts, AI directly affects decision-making systems, judicial reasoning, battlefield operations, and autonomous weapons deployment. The scale extends beyond economic disruption to structural transformation of global power equations.

    WHAT MAKES AI DIFFERENT FROM EARLIER TECHNOLOGIES?

    1. Cognitive Automation:
      1. Replaces or supplements human reasoning in speech, language, vision, and analysis.
      2. Extends beyond mechanization into decision-making systems.
    2. Cross-sector Penetration:
      1. Impacts communication, judicial systems, military operations, and industrial production.
      2. Integrates into existing civilizational networks rather than remaining sector-specific.
    3. Speed and Scale:
      1. Enables instantaneous data processing and predictive analysis.
      2. Operates across global networks simultaneously.

    How is AI affecting governance and judicial systems?

    1. Judicial Reliance Risks:
      1. Increases dependence on AI in courtrooms.
      2. Raises risks of hallucinations, fabricated judgments, and improper citations.
    2. Predictive Justice Tools:
      1. AI-based risk assessment systems like the U.S. COMPAS algorithm influences bail and sentencing decisions.
      2. Criticised for racial bias and opaque decision-making
    3. E-Courts & Case Management Automation:
      1. India’s SUPACE (Supreme Court Portal for Assistance in Court’s Efficiency) assists judges in legal research.
      2. Improves efficiency but does not replace judicial discretion.
    4. Administrative Automation:
      1. Enhances policy modelling and governance analytics.
      2. Expands state surveillance and algorithmic control mechanisms.
    5. Algorithmic Public Service Delivery:
      1. AI used in welfare fraud detection systems such as the Netherlands’ SyRI system.
      2. Struck down by a Dutch court (2020) for violating privacy and human rights.
    6. Facial Recognition in Policing:
      1. Delhi Police used facial recognition during protests (2019-20).
      2. Raised concerns over mass surveillance and lack of statutory safeguards.

    How is AI transforming warfare?

    1. Autonomous Weapon Systems:
      1. Enables unmanned aerial vehicles capable of autonomous targeting.
      2. Reduces requirement of direct human intervention.
    2. Battlefield Transformation:
      1. Shifts from traditional warfare to AI-enabled, data-driven operations.
      2. Integrates night vision systems, AI-capable surveillance, and automated targeting.
    3. Drone Warfare Escalation:
      1. Facilitates swarm drones conducting coordinated attacks.
      2. Expands risk from state actors to terror and non-state actors.
    4. Decision Autonomy:
      1. Develops self-sustaining weapon systems capable of independent action.
      2. Reduces human oversight in lethal operations.

    What are the strategic and geo-political implications?

    1. US-China Rivalry: Intensifies technological competition and reconfigures global power hierarchies.
    2. Military Asymmetry: Provides disproportionate advantage to technologically advanced states. It reshapes deterrence dynamics and strategic stability.
    3. Global Order Disruption: It challenges existing balance-of-power structures. It signals transition toward algorithm-driven strategic competition.

    What are the systemic risks identified?

    1. Loss of Human Control: 
      1. Risks displacement of human judgment in governance and conflict. 
      2. Enables autonomous systems beyond human override.
    2. Escalation Risk: Increases probability of accidental conflicts due to automated decision chains.
    3. Ethical Vacuum: Lacks universally accepted regulatory framework. It creates an imbalance between technological capability and normative governance.

    What type of oversight is required?

    1. Institutional Balances: 
      1. Ensures human oversight in high-risk applications.
      2. Establishes accountability mechanisms in judicial and military AI use.
    2. Global Governance Framework:
      1. Facilitates multilateral dialogue on AI regulation.
      2. Prevents arms race in autonomous weapons systems.
    3. Ethical Safeguards:
      1. Incorporates human control principles in lethal technologies.
      2. Strengthens transparency in algorithmic systems.

    Conclusion

    Artificial Intelligence is no longer a peripheral technological development but a foundational force influencing governance systems, military doctrines, and global power hierarchies. Its integration into judicial processes, administrative structures, and autonomous weapon systems signals a transition toward algorithm-driven decision architectures. The challenge before states is not whether to adopt AI, but how to ensure human oversight, ethical accountability, and strategic stability in its deployment. The future of global order will depend not merely on technological superiority, but on the ability to embed AI within robust institutional and normative frameworks.

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

    Global warming and pollution are stripping vibrant colors from nature

    Why in the news?

    A 2024 study in Ecology and Evolution reports that insects such as ladybirds and dragonflies in temperate regions are turning lighter due to frequent heatwaves. Over half of the world’s oceans have become greener in the last two decades. Forests are turning browner. Coral reefs, including those in Gulf of Mannar and Lakshadweep, are facing repeated bleaching. These visible colour changes reflect large-scale climate stress on ecosystems.

    What is Ecological discolouration?

    Ecological discolouration refers to measurable changes in the natural colour patterns of ecosystems caused by environmental stress. It can be caused by:

    1. Pigment Alteration: Changes in the concentration or type of biological pigments like chlorophyll (green in plants/algae), melanin (darker tones in animals), and carotenoids (yellow/orange) often due to UV exposure or nutrient shifts.
    2. Symbiotic Loss: The most prominent example is coral bleaching, where corals expel their colorful symbiotic algae (zooxanthellae) due to thermal stress, leaving behind a white skeleton.
    3. Species Composition Shifts: The replacement of native species with others such as invasive toxic dinoflagellates or algae blooms can physically change the color of water bodies or forests.
    4. Biogeochemical Disruptions: Alterations in cycles (like nitrogen or carbon) can lead to soil or water changes, such as the formation of dark terra preta soils or anaerobic “black spots” in marine sediments.

    Functions in Ecology

    1. Early-Warning Indicator: Visible fading or darkening provides an immediate signal of ecosystem instability.
    2. Stress Proxy: It serves as a measurable metric for temperature stress, chemical pollution, and habitat degradation.
    3. Biodiversity Marker: Mapping color variations across a landscape helps scientists track the loss or gain of biodiversity in real-time

    How is climate change altering ocean colour?

    1. Ocean Greening: Over 50% of global oceans have become greener in the last two decades.
    2. Algal Proliferation: Greener waters indicate increased algal presence.
    3. Sunlight Blockage: Algae reduce water clarity and limit sunlight penetration.
    4. Oxygen Depletion: Decomposition of algal blooms lowers oxygen levels, harming marine organisms.

    What is Coral bleaching?

    It is when corals expel the colorful, nutrient-providing algae (zooxanthellae) living in their tissues due to stress, turning them white, but they aren’t dead yet. Prolonged stress from rising ocean temperatures (climate change) or other factors like pollution causes them to starve and potentially die, leading to reef ecosystem collapse.

    What happens during bleaching?

    1. Stress triggers expulsion: Corals are stressed by changes in water temperature (usually warming), light, salinity, or nutrients.
    2. Algae leave: Stressed corals expel the symbiotic algae (zooxanthellae) that live within them and provide food and color.
    3. Coral turns white: Without the algae, the coral’s transparent tissue reveals its white skeleton, making it appear “bleached”.

    How does coral bleaching reflect marine ecosystem stress?

    1. Indian Reef Impact: Bleaching reported in Gulf of Mannar, Palk Bay, Lakshadweep, Andaman & Nicobar Islands.
    2. Thermal Stress Mechanism: Corals expel symbiotic algae under heat stress, turning white.
    3. Mortality Risk: Repeated bleaching increases coral death probability.
    4. Ecosystem Disruption: Coral reefs support marine biodiversity and fisheries.

    What does forest browning indicate?

    1. Vegetation Stress: Forests are turning browner due to climate stress and habitat degradation.
    2. Pigment Reduction: Chlorophyll loss reflects reduced photosynthetic efficiency.
    3. Habitat Instability: Browning signals declining ecosystem resilience.

    How are insects adapting through pigmentation change?

    1. 2024 Study Finding: Ladybirds and dragonflies in temperate northern regions are becoming lighter.
    2. Heatwave Response: Lighter pigmentation reflects sunlight and prevents overheating.
    3. Melanin Composition:
      1. Eumelanin: Produces brown/black shades; absorbs more heat.
      2. Pheomelanin: Produces yellow/red tones.
    4. Reproductive Impact: Pigmentation shifts may affect mating patterns and reproductive timing.

    What historical example shows climate-driven colour adaptation?

    Climate-driven colour adaptation refers to the process where, in response to changing environmental conditions (temperature, humidity, UV radiation) caused by climate change, species evolve or plastically alter their body or flower pigmentation to improve survival, thermoregulation, or reproduction.

    1. Industrial Revolution Case: Soot darkened tree bark.
    2. Peppered Moth Shift: Dark variants survived due to improved camouflage; light variants declined.
    3. Adaptive Principle: Species become darker in colder climates and lighter in warmer conditions. 
    4. Butterflies (Colias meadii): A long-term study (1953-2012) showed that wing melanization in these butterflies decreased with increasing temperature, but this pattern varied by region, showing higher melanism in the hotter southern USA.

    How does deforestation affect species colour diversity?

    1. Amazon Study (Biodiversity and Conservation): Deforestation reduces bright colour displays in butterflies.
    2. Habitat Disturbance Effect: Disturbed forests show less diverse butterfly palettes.
    3. Regeneration Signal: Naturally regenerated Amazon forests show improvement in colour diversity.

    What are the ecological implications?

    1. Camouflage Disruption: Alters predator-prey balance.
    2. Thermoregulation Shift: Pigmentation change modifies heat absorption.
    3. Biodiversity Indicator: Colour variation reflects ecosystem health.
    4. Systemic Climate Signal: Large-scale discolouration indicates long-term environmental stress.

    Conclusion

    Ecological discolouration represents a visible manifestation of climate-induced ecosystem stress. Ocean greening, forest browning, coral bleaching, and pigmentation shifts in species indicate disruption in biological processes and habitat stability. These changes signal declining ecosystem resilience and rising vulnerability to extreme climatic events. Monitoring such colour shifts can function as an early warning tool for biodiversity loss and guide targeted climate adaptation and conservation strategies.

    PYQ Relevance

    [UPSC 2017] ‘Climate Change’ is a global problem. How India will be affected by climate change? How Himalayan and coastal states of India will be affected by climate change?

    Linkage: Climate change impact is a recurring GS-3 theme linking environment, disaster vulnerability, and sustainable development. Coral bleaching, ocean warming, and marine ecosystem stress are important for coastal impact analysis, while Himalayan glacier melt, altered monsoons, and extreme events are crucial dimensions when examining climate change effects in India.

  • Civil Aviation Sector – CA Policy 2016, UDAN, Open Skies, etc.

    A reckoning for India’s aviation sector

    Why in the News?

    India’s aviation sector is under scrutiny following operational failures, rising safety incidents, and declining passenger confidence. This sector is the world’s third-largest domestic aviation market carrying over 350 million passengers annually. The December crisis marked the first large-scale disruption for IndiGo, exposing systemic stress in the country’s largest airline, which controls nearly 60% of the domestic market. Simultaneously, pilot shortages, FDVT violations, high ATF volatility, and congestion at 85+ airports operating beyond capacity have intensified vulnerabilities. The sector faces a structural reckoning as new regional carriers enter an already overstretched ecosystem.

    What is the growth and economic significance of India’s Aviation Sector?

    1. Market Size Expansion: India is the world’s third-largest domestic aviation market, with airports increasing from 74 (2014) to 163 (2025).
    2. Economic Multiplier Effect: Aviation generates over three times economic activity for every rupee invested and supports more than six times employment in allied sectors.
    3. Employment Contribution: The sector supports over 7.7 million jobs, including 369,000 direct jobs.
    4. Traffic Growth: Domestic passenger traffic has grown at an annual rate of 10-12% over the past decade.
    5. Global Integration: India has over 116 bilateral Air Service Agreements, strengthening international connectivity.
    6. Industrial Linkages: Aviation drives FDI inflows, technology transfer, and growth in aircraft manufacturing, MRO, and ground handling services under Make in India.

    Why is India’s aviation sector facing operational stress?

    1. Scale without proportional capacity: Carries 350+ million passengers annually with over 840 aircraft, but expansion has outpaced structural preparedness.
    2. December disruption as stress test: First large-scale disruption affecting IndiGo exposed systemic fragility.
    3. Airport congestion: 85 airports operating beyond capacity; 102 new routes planned under UDAN 2025-26.
    4. Network dependency risk: High route concentration increases vulnerability to cascading delays and cancellations.

    What explains the pilot shortage and regulatory strain?

    1. Pilot-to-aircraft imbalance: India’s ratio remains below global benchmark of 18-20 pilots per aircraft; IndiGo at 14, Air India at 36 (group level including subsidiaries), Air India Express at 15.
    2. FDVT violations: DGCA issued 19 safety violation notices in 2025 citing breaches of flight duty time limitations, lapses in quality assurance, and expired emergency equipment use.
    3. Training pipeline constraints: CPL issuance inconsistent with estimated annual requirement of 7,000 pilots; issuance around 5,700 between 2020-24.
    4. Operational fatigue risks: Regulatory exemptions for scheduling rather than structural hiring reforms.

    How does market concentration amplify systemic risk?

    1. Duopoly structure: IndiGo (63-65%) and Air India group (27%+) together control nearly 90% of the domestic market.
    2. Route concentration: IndiGo dominant on 600 monopoly routes and 200 duopoly routes.
    3. Financial vulnerability: Past airline failures-Jet Airways (2019), Kingfisher Airlines (2012), Air Deccan collapse, Go First (2023-24), demonstrate systemic contagion risk.
    4. Passenger dependency: 60.4% of domestic capacity concentrated under a single carrier.

    How do infrastructure and fuel volatility impact viability?

    1. ATF volatility: Aviation Turbine Fuel priced in U.S. dollars; exposes airlines to exchange rate fluctuations.
    2. High cost structure: ATF remains one of the largest operational expenditures.
    3. Infrastructure bottlenecks: Congested metro airports; Tier-2 and Tier-3 airports underdeveloped despite UDAN push.
    4. Limited hedging mechanisms: Absence of systematic fuel hedging increases cost unpredictability.

    What role do new regional entrants play?

    1. New NOCs (December 2025): Shankh Air, Al Hind Air, and Fly91 approved.
    2. Regional connectivity expansion: Planned routes include Noida International Airport linkages and underserved regions such as Kochi and Shankh Air’s Uttar Pradesh focus.
    3. Deconcentration potential: Entry could reduce excessive dependence on major carriers.
    4. Structural risk persists: New entrants operate in an already capacity-stressed environment.

    Conclusion

    India’s aviation sector has evolved into a strategic growth engine, combining infrastructure expansion, employment generation, and global integration. Sustained capacity augmentation, regulatory strengthening, and balanced regional connectivity will determine whether the sector can translate its rapid growth into long-term economic resilience and inclusive development.

    PYQ Relevance

    [UPSC 2024] What is the need for expanding the regional air connectivity in India? In this context, discuss the government’s UDAN Scheme and its achievements.

    Linkage: It falls under GS Paper III-Infrastructure (Airports), Regional Connectivity, Inclusive Growth and Balanced Regional Development. Airport congestion and traffic concentration make regional connectivity expansion essential for decongestion and balanced growth.

  • Parliament – Sessions, Procedures, Motions, Committees etc

    Motion to Remove Lok Sabha Speaker: Constitutional & Procedural Aspects

    Why in the News?

    • Om Birla has decided not to preside over proceedings of the Lok Sabha until the Opposition’s notice seeking his removal is processed. The notice alleges partisan conduct during House proceedings.
    • Meanwhile, Parliamentary Affairs Minister Kiren Rijiju released footage alleging disorderly conduct by Opposition MPs near the Prime Minister’s seat.

    Constitutional Provisions

    • Article 93: Provides for election of the Speaker and Deputy Speaker of the Lok Sabha.
    • Under Article 94 of the Constitution of India, a Speaker of the Lok Sabha can be removed by a resolution passed by a majority of all the then members of the House (effective majority).
    • Article 95: When the office of the Speaker is vacant or the Speaker is absent, the Deputy Speaker performs the duties.

    Notice Requirement

    • A minimum of 14 days’ notice must be given.
    • The notice must be signed by at least 50 Members of Parliament.
      • This requirement comes from the Rules of Procedure and Conduct of Business in Lok Sabha, not directly from the Constitution.

    Procedure for Removal

    1. Written notice signed by required number of MPs.
    2. Secretary General examines admissibility.
    3. After 14 days, motion may be taken up.
    4. Speaker does not preside during discussion of the motion.
    5. Requires effective majority of the House.
    [2024] With reference to the Speaker of the Lok Sabha, consider the following statements: 

    While any resolution for the removal of the Speaker of the Lok Sabha is under consideration: 

    1. He/She shall not preside. 

    2. He/She shall not have the right to speak. 

    3. He/She shall not be entitled to vote on the resolution in the first instance. 

    Which of the statements given above is/are correct? 

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

  • Foreign Policy Watch: India-Bangladesh

    Bangladesh–U.S. Trade Deal: Shift from Indian to U.S. Cotton

    Why in the News?

    Bangladesh has announced that it will replace Indian cotton with U.S. cotton following a new trade deal with the United States. The agreement is expected to boost Bangladesh’s access to the U.S. textile market but may impact cotton trade with India.

    Key Features of the Deal

    1. Tariff Concession

    • Standard tariff fixed at 19 percent, lower than rivals like Cambodia and Indonesia.
    • Zero tariff access if Bangladesh’s textile producers use U.S. cotton or manmade fibre.
    • Strong incentive to shift sourcing away from India and Central Asia.

    2. Strategic Significance

    • U.S. is the largest textile export market for Bangladesh. The deal strengthens Bangladesh’s export competitiveness. Bangladesh does not produce significant cotton domestically, giving it flexibility in sourcing decisions.

    India–Bangladesh Cotton Trade Context

    • Bangladesh is one of the largest importers of Indian cotton and yarn.
    • India exported:
      • $1.6 billion worth cotton yarn (2024)
      • $85 million manmade fibre yarn

    Tit-for-Tat Trade Restrictions (2025)

    • Bangladesh restricted yarn imports from India through land ports (April 2025).
    • India imposed curbs on Bangladeshi readymade garment imports (May 2025).
    • Trade tensions followed a broader diplomatic strain in 2024.

    Impact on India

    • Possible decline in cotton and yarn exports to Bangladesh.
    • Impact on Indian textile supply chains, especially land port trade.
    • Strategic trade competition in South Asia.
    [2020] Consider the following statements: 

    1. The value of Indo-Sri Lanka trade has consistently increased in the last decade. 

    2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh. 

    3. In the last five years, Nepal has been the largest trading partner of India in South Asia. 

    Which of the statements given above is/are correct? 

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

  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    Why Manufacturing Growth Has Not Led to Broad Employment

    Why in the News?

    Union Budget 2026 reinforces the existing manufacturing strategy, especially through Production Linked Incentive schemes and customs duty rationalisation. However, analysts note that manufacturing growth has not translated into large scale job creation.

    Core Issue: Growth Without Jobs

    1. Stagnant Share in GDP

    • Manufacturing share remains 14 to 17 percent for decades.
    • Successful industrialisers in East Asia reached 25 to 30 percent before stabilising.
    • Indicates incomplete structural transformation.

    2. Jobs Growth Disconnect

    • Organised manufacturing employs about 1.96 crore workers.
    • Only about 57 lakh jobs added in the last decade.
    • Total manufacturing employment around 5.44 crore, with two thirds in informal units.

    Note: Organised factories are productive but create few jobs. Unorganised units absorb labour but remain low productivity and low wage.

    3. Capital Intensive Expansion

    • Firms rely on automation and capital deepening.
    • Output rises faster than employment.
    • Job elasticity of growth remains low.

    4. Skills Mismatch

    • Firms struggle to find job ready workers.
    • Weak firm level training and apprenticeship ecosystem.
    • Skill programmes poorly linked to industry demand.

    5. MSME Constraints

    • MSMEs contribute 35 percent of manufacturing output and about half of exports.
    • Credit expansion improves liquidity but not productivity.
    • Weak technology adoption, poor supply chain integration, limited scaling.
    [2020] With reference to the Indian economy after the 1991 economic liberalization, consider the following statements: 

    1. Worker productivity (Rupee per worker at 2004-05 prices) increased in urban areas while it decreased in rural areas. 

    2. The percentage share of rural areas in the workforce steadily increased. 

    3. In rural areas, the growth in non-farm economy increased. 

    4. The growth rate in rural employment decreased. 

    Which of the statements given above is/are correct? 

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

  • Artificial Intelligence (AI) Breakthrough

    IT Rules 2026 Amendment on AI Content

    Why in the News?

    The Union Government has amended the IT Rules to mandate prominent labelling of AI generated photorealistic content and sharply reduce takedown timelines for unlawful material. The rules take effect from February 20, 2026.

    Key Highlights

    • Definition of Synthetic Content: AI generated audio, visual or audiovisual content that appears real and indistinguishable from natural persons or real events.
    • Mandatory Labelling: Platforms must seek disclosure if content is AI generated. 
      • If no disclosure, platforms must label it prominently. 
      • Non consensual deepfakes must be removed.
    • Reduced Takedown Timeline: Court or government declared illegal content: within 3 hours. 
      • Non consensual nudity and deepfakes: within 2 hours. Earlier limit was 24 to 36 hours
    • Safe Harbour Impact: Under the Information Technology Act, 2000, intermediaries enjoy safe harbour under Section 79. 
      • Failure to exercise due diligence may lead to loss of immunity.
    • States’ Power: States can now notify more than one officer to issue takedown orders.
    [2020] With the present state of development, Artificial Intelligence can effectively do which of the following? 

    1. Bring down electricity consumption in industrial units 

    2. Create meaningful short stories and songs 

    3. Disease diagnosis 

    4. Text-to-Speech Conversion 

    5. Wireless transmission of electrical energy 

    Select the correct answer using the code given below: 

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

  • Foreign Policy Watch: India-ASEAN

    [10th February 2026] The Hindu OpED: Back on track: On Malaysia India ties

    PYQ Relevance

    [UPSC 2024] Discuss the geopolitical and geostrategic importance of Maldives for India with a focus on global trade and energy flows. Further also discuss how this relationship affects India’s maritime security and regional stability amidst international competition?

    Linkage: UPSC often asks such questions to assess India’s strategic engagement with key maritime neighbours in the context of sea lanes of communication, energy security, and great-power competition in the Indian Ocean Region.

    Mentor’s Comment

    India–Malaysia relations witnessed strain over terrorism discourse and multilateral positioning. The recent high-level visit marks a strategic recalibration with implications for ASEAN engagement, trade negotiations, and counter-terror diplomacy.

    Why in the News?

    After a year of visible strain, ties between India and Malaysia are being recalibrated through Prime Minister Narendra Modi’s 24-hour visit to Kuala Lumpur. The visit is significant because it marks his first overseas destination of the new year and comes after diplomatic discomfort over Malaysia’s remarks on the Pahalgam terror attacks and its outreach to Pakistan.

    What led to the strain in India-Malaysia ties?

    1. Pahalgam Remarks: Malaysian Prime Minister Anwar Ibrahim called for a “full and thorough enquiry” and “de-escalation and meaningful dialogue” between India and Pakistan, which drew unease in New Delhi.
    2. Mediation Offer: Ibrahim offered to mediate if required, signalling an interventionist posture.
    3. Pakistan Outreach: Hosting Pakistani PM Shabaz Sharif in October 2025 intensified diplomatic sensitivities.
    4. Contentious Issues: Continued stay of preacher Zakir Naik, wanted in India under UAPA, remained unresolved but deliberately not discussed publicly.

    How did the visit signal diplomatic repair?

    1. First Overseas Visit: Modi chose Malaysia as his first foreign destination of the year, signalling priority.
    2. Joint Condemnation: Both countries unequivocally condemned terrorism, including “cross-border terrorism.”
    3. Counter-terror Cooperation: Strengthened intelligence sharing and coordination at the UN and FATF.
    4. MoUs Signed: Agreements signed to deepen ties, including in semiconductors.

    What major agreements were signed?

    1. Audio-visual co-production agreement: Promotes joint film and media production to enhance cultural and creative industry collaboration
    2. Disaster management cooperation: Strengthens coordination in disaster response, preparedness and institutional capacity-building
    3. Combating and preventing corruption: Facilitates cooperation in anti-corruption measures, including information-sharing and best practices
    4. UN peacekeeping cooperation: Extends collaboration in United Nations peacekeeping operations through exchange of letters.
    5. Semiconductor cooperation: Establishes a framework to advance collaboration in the semiconductor sector as a strategic priority
    6. International Big Cats Alliance framework agreement: Marks Malaysia’s participation in India’s IBCA initiative to enhance wildlife conservation cooperation
    7. Social security cooperation (ESIC-PERKESO): Enables coordination of social security benefits for Indian citizens working in Malaysia
    8. Vocational education and training (TVET): Enhances collaboration in skills development and technical training through exchange of notes
    9. Security cooperation between National Security Councils: Formalises closer engagement on national security matters.
    10. Health and medicine cooperation: Deepens collaboration in healthcare, medical research and public health systems.
    11. 10th Malaysia-India CEO Forum report: Presents joint recommendations to strengthen bilateral trade and investment ties.

    What economic and technological outcomes emerged?

    1. Semiconductor Cooperation: MoU builds on cooperation between IIT Madras Global and the Advanced Semiconductor Academy of Malaysia.
    2. Trade and AITIGA Review: Visit may revive negotiations on reviewing the ASEAN-India Trade in Goods Agreement (AITIGA), previously impacted by India skipping the ASEAN summit.
    3. Sectoral Expansion: Emphasis on trade, defence, energy, and digital technologies.

    What were the multilateral implications?

    1. ASEAN Engagement: Repair of ties follows India’s absence from the ASEAN summit despite accepting the invitation.
    2. Trade Frictions: Commerce Minister Piyush Goyal’s criticism of FTAs as “badly negotiated” and remarks referring to ASEAN countries as “B-teams” to China had caused unease.
    3. BRICS Coordination: India will chair the BRICS summit; Malaysia’s aspiration for membership was “noted.”
    4. Indonesia’s Entry: Indonesia has already become a BRICS partner country.

    Why is this reset strategically significant?

    1. Geographic Proximity: India-Malaysia cooperation influences broader ASEAN dynamics.
    2. Balancing China Factor: Trade sensitivities and FTA negotiations occur in a context of China’s influence.
    3. Regional Stability: Stronger coordination enhances counter-terror diplomacy and multilateral positioning.

    Conclusion

    The visit reflects calibrated diplomacy: contentious bilateral issues were set aside, counter-terror cooperation reaffirmed, economic engagement deepened, and multilateral coordination restored. The reset positions India and Malaysia for closer engagement within ASEAN and BRICS frameworks amid evolving global alignments.

  • Banking Sector Reforms

    SC tells RBI to bring in stricter checks to stop online frauds

    Why in the News? 

    A Bench led by the Chief Justice of India directed the Reserve Bank of India (RBI) and the Union Government to strengthen safeguards against online financial frauds. The Supreme Court has flagged the siphoning of over ₹52,000 crore between April 2021 and November 2025 through online frauds such as “digital arrests,” calling it nothing short of “absolute robbery or dacoity.” In a sharp judicial intervention, the Court questioned why no alarm is triggered when unusually large sums like ₹50 lakh are withdrawn from a retiree’s account. It has directed the RBI and the Home Ministry to tighten suspicious transaction norms and formally implement Standard Operating Procedures for cyber fraud coordination. The scale of fraud and the Court’s direct push for systemic banking reforms make this a significant moment in India’s cyber-financial governance framework.

    What Triggered the Supreme Court’s Concern?

    1. ₹52,969 crore siphoned (April 2021-November 2025): The Court noted large-scale cyber-enabled frauds, including “digital arrests.”
    2. Characterisation as ‘absolute robbery or dacoity’: The Bench emphasized the severity and scale of financial losses.
    3. Pattern of large withdrawals: The Court questioned why no alert is triggered when ₹50 lakh is withdrawn from a retiree’s account, especially when monthly withdrawals are typically ₹10,000.
    4. Judicial scrutiny of RBI: The Court stated it was time for the central banker to ensure stronger protective mechanisms for depositors.

    Why Did the Court Question Suspicious Transaction Monitoring?

    1. Definition expansion required: The Court stated that the definition of “suspicious transaction” must be broadened.
    2. Banking business model shift: Justice Bagchi noted banks are largely in “business mode,” facilitating swift and seamless transfers.
    3. Digital efficiency aiding crime: Faster transactions enable quick movement of stolen money.
    4. Accountability query: The Bench sought explanation on misappropriation based on official reporting.

    What Directions Were Issued to the Government?

    1. Formal SOP implementation: Directed the Home Ministry to adopt and implement nationwide the SOP issued on January 2.
    2. Inter-agency coordination: Ensures structured coordination in cyber-enabled fraud cases.
    3. Victim identification mechanism: Mandates identification of defrauded parties.
    4. Notification of implementation rules: Ordered formal notification of required regulatory framework.

    What Institutional Mechanisms Are Being Strengthened?

    1. Memorandum of Understanding (MoU): Government finalising MoU for suspect registry sharing.
    2. Data sharing architecture: Facilitates exchange of suspect registry data.
    3. Mule account detection tools: Strengthens identification of accounts used for fraudulent transfers.
    4. Preventive and responsive tools: Supports blocking of fraudulent transactions.

    How Big is the Problem?

    1. Scale of fraud: ₹52,969 crore misappropriated in less than five years.
    2. Targeted vulnerability: Retirees and ordinary account holders vulnerable.
    3. Systemic gaps: Absence of automatic red-flag triggers for abnormal withdrawals.
    4. Judicial intervention: Indicates inadequacy of existing regulatory safeguards.

    Conclusion

    The Supreme Court’s intervention underscores the systemic risks posed by cyber-enabled financial frauds in an increasingly digital banking ecosystem. The scale of misappropriation and the absence of robust red-flag mechanisms reveal gaps in regulatory vigilance and inter-agency coordination. Strengthening suspicious transaction definitions, enhancing data-sharing frameworks, and ensuring proactive oversight by the RBI and enforcement agencies are essential to safeguard depositor trust and preserve financial stability.

    Value Addition

    What is a digital arrest?

    • It is a sophisticated cyber scam where fraudsters impersonate law enforcement (police, CBI, etc.) or government officials to instill fear and extort money or data from victims.
    • It makes the victims believe they are under arrest for serious crimes like money laundering or drug trafficking, often using fake documents, video calls with fake police station backgrounds, and high-pressure tactics to force compliance. 
    • It’s a form of online fraud, not a real legal process, designed to manipulate victims into paying fines or revealing personal information to avoid (fake) arrest, leading to financial loss or identity theft.

    PYQ Relevance

    [UPSC 2020] Discuss different types of cyber crimes and measures required to be taken to fight the menace.

    Linkage: The question addresses the rising threat of cyber crimes in India and the need for institutional, regulatory, and technological measures to combat them under GS-3 (Internal Security and Cyber Security).

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