💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF
Talk to Mentor

Civilsdaily

Login

Search results for: “”

  • Warning signals for India from NATO’s Ankara Summit

    PYQ Relevance
    [UPSC 2023] The expansion and strengthening of NATO and a stronger US-Europe strategic partnership works well in India.” What is your opinion about this statement? Give reasons and examples to support your answer.
    Linkage: Examines the strategic implications of NATO’s evolving role and the US-Europe security partnership for India’s foreign and security policy. The article analyses the Ankara Summit’s defence commitments, Europe’s defence-industrial constraints, and how NATO’s expansion and military spending directly affect India’s defence preparedness and strategic autonomy.

    Mentor’s Comment

    The 32 heads of state or government of the North Atlantic Treaty Organization (NATO) met at the Ankara Summit on July 7-8, 2026, to review progress since the 2025 Hague Summit and set out a roadmap for implementation. The summit locked in a fivefold rise in the defence-spending pledge and a commitment to build a Europe-wide Defence Industrial Base (DIB), even as Europe’s existing industry struggles to meet current demand.

    What four commitments came out of the Ankara Summit?

    1. Collective defence reaffirmed: All 32 allies affirmed an “ironclad commitment” to collective defence under Article 5 of the Washington Treaty and to the transatlantic bond.
    2. Five per cent spending pledge: Allies unanimously endorsed “The Hague defence commitment,” under which every NATO member undertook to allocate at least five per cent of GDP to defence by 2035, up from the earlier two per cent pledge.
    3. Support for Ukraine: NATO declared “unwavering support” for Ukraine’s freedom, sovereignty and territorial integrity.
    4. European defence industrial base: Members committed to building a high-technology, high-capacity, Europe-wide Defence Industrial Base (DIB), the network of firms, factories, laboratories and skilled workers needed to build and sustain military power.
    5. Focus on implementation: Discussions at Ankara centred on converting these political commitments into military capability through investment, industrial capacity and innovation.

    Can Europe’s defence industry deliver on the pledge?

    1. Pre-existing shortages: European defence giants MBDA and Rheinmetall had warned of ammunition production shortages even before The Hague’s five per cent pledge.
    2. Evidence from the Iran campaign: Operation Epic Fury, the U.S.-Israel bombing campaign against Iran, saw the U.S. fire more than 850 Tomahawk cruise missiles; at the current production rate of 85 a year, replacing them would take a decade.
    3. Coordination gap: Many NATO members have capable Defence Industrial Bases (DIBs) individually, but there is little coordination of alliance-wide priorities.
    4. Concentrated mismatch: The resulting strategic mismatch found during the Ukraine war has clustered in air defence missiles and interceptors, precision-guided munitions, and artillery rockets.
    5. Deepening dependency, not reducing it: The U.S. supplied half of Europe’s defence spending between 2022-2024, up from 28% in 2019-2021, and without a major revitalisation of Europe’s own industry, the five per cent pledge will only deepen dependence on the U.S.
    6. Rising U.S. sales to Europe: Foreign Military Sales (FMS) notifications to the U.S. Congress for European customers have quadrupled since 2008, to $76 billion in 2024.

    How does NATO’s spending surge affect global arms buyers like India?

    1. Buyer’s market turning seller’s market: As NATO spends more, the international arms market is shifting from a buyers’ market to a sellers’ market for the world’s big arms buyers, including India.
    2. First warning sign: U.S. firm General Electric Aerospace has delayed supplying F-404 fighter jet engines, critically needed for the Indian Air Force’s (IAF) Tejas Light Combat Aircraft (LCA) programme.
    3. Competing demand: Asian allies’ rising demand for U.S. weaponry is competing directly with ongoing European needs for the same suppliers.

    What must India do in response?

    1. Growing reliance on new-age technology: India’s defence increasingly depends on drones, artificial intelligence (AI), cyber warfare, electronic warfare, and resilient networks.
    2. Self-reliance as the necessary response: India’s defence industry must achieve self-reliance in these technology areas rather than depend on suppliers who are themselves overstretched fighting their own battles.
    3. Mitigating Supply Chain Vulnerabilities: Avoid over-reliance on single-source western suppliers like General Electric who face competing allied demands. Push local aerospace and defense firms (such as HAL and private sector partners) to prioritize delayed components like fighter jet engines.
    4. Giving a big push to the private sector: Funding and orders should be increased for domestic defense startups working in the fields of drones, artificial intelligence (AI), and cybersecurity.
    5. Further expansion of the ‘Negative Import List’: The scope of the existing ‘Positive Indigenisation List‘ should be further expanded. There should be further expansion of the ‘Negative Import List‘. India’s Positive Indigenisation Lists (PIL) ban military imports, forcing procurement strictly from domestic makers. Managed via the Srijan Portal, key tracks include the Department of Military Affairs (DMA) lists for major platforms and the Department of Defence Production (DDP) lists for components.

    Conclusion

    NATO’s Ankara Summit converted last year’s spending pledge into a five per cent-of-GDP commitment and a mandate to build a European Defence Industrial Base (DIB), but ammunition and missile shortages already visible in the Ukraine war show capacity, not political will, is now the binding constraint. Because higher NATO spending is shifting the global arms market from a buyers’ to a sellers’ market, without a rapid European industrial build-out the pledge will deepen dependence on the U.S. rather than reduce it, and it is squeezing supply for outside buyers like India, making self-reliance in new-age defence technologies the necessary Indian response.

  • The right to protest and the limits of police power

    Why in the News

    The Cockroach Janta Party’s (CJP) “Chalo Sansad” march at Jantar Mantar on July 20, demanding reforms in the National Testing Agency (NTA) and the Union Education Minister’s resignation, ended in tear gas and lathi charges after protesters attempted to march towards Parliament. The clashes reopened the question of how a democracy polices protest, testing where a constitutionally protected right to assemble ends and lawful police power to disperse begins.

    Is the right to protest absolute?

    1. Constitutional guarantee: Article 19(1)(b) of the Indian Constitution guarantees all citizens the Fundamental Right to assemble peaceably and without arms. This includes the right to hold public meetings, demonstrations, and take out processions, forming the constitutional basis for peaceful protests.
    2. Reasonable restrictions permitted: Article 19(3) allows reasonable restrictions on this right in the interests of public order and the sovereignty and integrity of India.
    3. Restrictions implemented through statute: These restrictions operate through laws governing public order and policing rather than through Article 19 directly.
    4. No single governing law: The legal authority to regulate protests is drawn from a range of statutes, not one dedicated law.

    Was the CJP march unlawful?

    1. Bharatiya Nyaya Sanhita (BNS) test for unlawful assembly: Under the Section 189 of the Bharatiya Nyaya Sanhita (BNS), 2023, an assembly of five or more persons becomes unlawful only if its common object involves using criminal force, resisting the execution of law, committing an offence, or compelling a person by force or threat.
    2. Lawful assemblies can turn unlawful: A gathering that begins lawfully can become unlawful if its conduct changes during the event.
    3. No permission sought: Delhi Police said the CJP had not sought permission for a procession to Parliament.
    4. Prohibitory order in force: Section 163 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) barred protests, marches and demonstrations in the New Delhi district, except at the designated Jantar Mantar site with prior permission.
    5. Judicial scrutiny followed: The Delhi High Court has sought responses from the Centre and Delhi Police on petitions alleging police brutality and excessive force.

    What standards and limits govern police use of force?

    1. Democratic policing standard: The National Human Rights Commission (NHRC) Manual on Human Rights for Police Officers states that democratic policing treats police as protectors of citizens’ rights and the rule of law, while ensuring safety and security equally for all.
    2. Cost of violations: The manual notes that human rights violations by police erode public confidence, bring institutions into disrepute, and can escalate civil unrest.
    3. Global standard on force: These principles align with the United Nations (UN) Basic Principles on the Use of Force and Firearms, which require force to be lawful, necessary and proportionate.
    4. Statutory dispersal power: Under the BNSS, an Executive Magistrate or an authorised police officer may order an unlawful assembly, or one likely to disturb public peace, to disperse, and may use force if it does not comply.
    5. Minimum force standard: The Code of Conduct for the Police in India requires persuasion, advice and warning first, and only the irreducible minimum force once force becomes inevitable.
    6. Identification gap: The BNSS requires an arresting officer to bear accurate, visible identification but imposes no corresponding requirement on officers engaged in crowd control or dispersal, even as videos from the march showed personnel without name tags or with faces covered.

    How has the judiciary drawn the line, then and now?

    1. Anita Thakur v. State of Jammu & Kashmir (2016): The Supreme Court held that excessive force violates Fundamental Rights and awarded compensation to injured protesters, holding that police action must remain reasonable and accountable.
    2. Mazdoor Kisan Shakti Sangathan v. Union of India (2018): The Court held that authorities may regulate demonstrations to maintain public order but cannot extinguish the right to protest altogether.
    3. Amit Sahni v. Commissioner of Police (2020): Arising from the Shaheen Bagh protests, the Court affirmed that dissent is a constitutional right but cannot justify the indefinite occupation of public spaces.
    4. Present reluctance: Chief Justice of India Surya Kant orally declined a plea for suo motu cognisance of the alleged police excesses, saying the Court was “not interested in videos” and should not have its time wasted.

    Conclusion

    The right to assemble under Article 19(1)(b) is not absolute, and police may lawfully disperse an assembly that turns unlawful or defies a prohibitory order, but the force used must remain the minimum necessary and be accountable. The CJP crackdown exposed a specific accountability gap: the BNSS requires arresting officers to display identification but imposes no such requirement on personnel engaged in crowd control, a gap the courts’ existing case law on excessive force does not close, even as the Supreme Court itself declined to examine video evidence of the incident.

    PYQ Relevance

    [UPSC 2022] Right of movement and residence throughout the territory of India are freely available to the Indian citizens, but these rights are not absolute. Comment.

    Linkage: The PYQ highlights that Fundamental Rights are subject to reasonable restrictions. This is conceptually very close because the article explains that the right to assemble peacefully is also not absolute and may be reasonably restricted under Article 19(3) for public order.

  • How should cities reclaim footpaths?

    Why in the News?

    Following the Supreme Court’s recognition of the right to walk on safe, obstruction-free footpaths as a Fundamental Right, Bengaluru Development Minister directed a 10-day “Safe Footpath” drive across the five corporations under the Greater Bengaluru Authority, removing thousands of street vendors from pavements. The drive enforced the pedestrian right the court recognised but bypassed the process the Street Vendors Act, 2014 requires before vendors can be removed, exposing a gap between enforcing one right and protecting another.

    Why was the Street Vendors Act, 2014 enacted?

    1. Vending recognised as legitimate occupation: The Supreme Court has repeatedly held that street vending is a legitimate occupation protected under Article 19 of the Constitution, regulable in the public interest but not prohibitable outright.
    2. Response to arbitrary evictions: Municipal bodies and police had a recurring pattern of evicting vendors without notice, reducing years of livelihood to rubble overnight, which the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Act, 2014 was enacted to end.
    3. Not an anti-encroachment law: The Act does not give vendors an unrestricted right over public space, nor does it function as an anti-encroachment statute.
    4. Balancing two rights: It balances the public’s right to safe, obstruction-free footpaths against a vendor’s right to livelihood, laying down who can vend, where they can vend, and when they can be removed or relocated.

    What process must cities follow before removing vendors?

    1. Town Vending Committee (TVC): Every city must constitute a TVC comprising officials, police, planning authorities, resident representatives and street vendors, who must hold at least 40% of the seats, with representation for women and other marginalised communities.
    2. Survey requirement: Once constituted, the TVC must survey all existing vendors before authorities decide who can continue vending and under what conditions.
    3. Protection during the process: No vendor can be evicted or relocated until the survey is completed and Certificates of Vending are issued.
    4. Certificate of Vending: The certificate gives official permission to vend at a specified location under specified conditions and confers no ownership over public land.
    5. Removal remains conditional, not barred: The Act does not prohibit the removal of vendors; it only requires that removal follow this sequence.

    Why has Bengaluru’s drive come under scrutiny?

    1. No Town Vending Committee in place: Bengaluru’s corporations began removing vendors before constituting a TVC, the body the Act requires to identify vending and no-vending zones.
    2. Relocation promised only after the fact: Karnataka Chief Minister promised relocation only after the drive had already removed vendors.
    3. Sequence reversed: The government acted on the Supreme Court’s recognition of the pedestrian’s right to walk without first completing the survey and certification process the Street Vendors Act requires.
    4. Foundation of the law is balance: The Act’s foundation is the balance between the two rights, not the primacy of one over the other.

    Conclusion

    The Street Vendors Act, 2014, requires cities to constitute a Town Vending Committee, survey existing vendors and issue Certificates of Vending before removal or relocation, precisely to prevent the arbitrary evictions that predate the law. Bengaluru’s drive enforced the Supreme Court’s recognition of the pedestrian’s right to walk without first completing this sequence, showing that reclaiming footpaths lawfully requires following the Act’s process rather than invoking one right to bypass the other.

    PYQ Relevance

    [UPSC 2023] “The states in India seem reluctant to empower urban local bodies both functionally as well as financially.” Comment.

    Linkage: The PYQ examines the effectiveness of Urban Local Bodies (ULBs) in urban governance, particularly their institutional capacity, devolution of powers, and ability to manage public spaces and civic services. The article highlights that effective implementation of the Street Vendors Act, 2014 depends on empowered municipal institutions such as Town Vending Committees (TVCs). Bengaluru’s failure to constitute a TVC before undertaking evictions reflects the governance and institutional weaknesses of ULBs

  • In Assam, floods shift course. State response is static.

    Why in the News

    Flooding is a chronic feature of Assam’s monsoon, but this year, Upper Assam districts far from the Brahmaputra’s main channel and without a history of severe floods, Sivasagar, Charaideo, Jorhat and Golaghat, have borne the brunt. More than 20 people died within 24 hours on Monday after a wall of water from Nagaland’s Mon district spilled into Assam over open terrain, and the State Government called the devastation unforeseeable.

    What made this year’s floods different from Assam’s usual monsoon pattern?

    1. Districts without flood history hit hardest: The state government has called the scale of devastation in Sivasagar, Charaideo, Jorhat and Golaghat “unprecedented.“
    2. Casualty toll: More than 20 people died within 24 hours on Monday after a wall of water from Nagaland’s Mon district spilled into Assam and surged over embankments.
    3. An unusual drainage path: The floodwater is draining into the Brahmaputra over open terrain rather than through the tributaries as usual.
    4. The government’s stated position: The Assam government told the state assembly that “no one could have been prepared” for the calamity.

    Why is the “unforeseeable calamity” explanation unconvincing?

    1. A known river behaviour: The floods’ trajectory is a fallout of Assam’s topography and the Brahmaputra’s well-documented tendency to shift course.
    2. Sediment deposition raises the riverbed: After entering the Assam valley near Pasighat in Arunachal Pradesh’s East Siang district, the sharp reduction in gradient slows the river and causes it to deposit sediment, raising the riverbed and reducing the channel’s flood capacity.
    3. Channel abandonment: The Brahmaputra periodically abandons old channels and carves new ones, making it impossible to confine the river within embankments permanently.
    4. A static strategy for a shifting river: Assam’s flood management strategy continues to rely primarily on embankments despite this known channel-shifting behaviour.

    What triggered the immediate disaster in Nagaland and Assam?

    1. Extreme localised rainfall: Mon district received more than one-third of its average July rainfall in about eight hours on Sunday.
    2. Saturated slopes: Hills in the region were already saturated from heavy rain earlier in the month.
    3. Landslides in Nagaland: The saturated slopes collapsed, triggering landslides that killed nine people in Nagaland.
    4. Resulting surge into Assam: The destruction that followed in Assam was a direct consequence of this upstream rainfall and landslide event.

    What institutional response does this demand?

    1. A shared-system approach needed: The situation underscores the need for an institutional mechanism that treats rivers as shared ecological systems across states, with timely warning and coordinated action.
    2. The Brahmaputra Board’s capacity gap: The Brahmaputra Board has long been hampered by staff shortages and inadequate technical capacity. (Brahmaputra Board is a statutory body set up under the Brahmaputra Board Act, 1980 under the Ministry of Jal Shakti, Department of Water Resources, River Development & Ganga Rejuvenation. The jurisdiction of the Brahmaputra Board includes both the Brahmaputra and Barak Valley and covers all the States of the North Eastern Region, including Sikkim and part of West Bengal, which fall under the Brahmaputra basin.)
    3. A call to reinvigorate the agency: With extreme weather becoming more frequent, the Centre and State Governments need to reinvigorate the Brahmaputra Board.

    Conclusion

    The Brahmaputra’s documented tendency to deposit sediment, raise its bed and shift channels, not an unforeseeable event, pushed this year’s floods into Upper Assam districts with no history of severe flooding. Assam’s embankment-only strategy cannot contain a river that periodically abandons its channels, and the underlying institutional gap, an understaffed, under-resourced Brahmaputra Board, must be addressed before climate change intensifies these ruptures further.

    PYQ Relevance

    [UPSC 2020] Account for the huge flooding of million cities in India including the smart ones like Hyderabad and Pune. Suggest lasting remedial measures.

    Linkage: The PYQ tests the geographical and anthropogenic causes of floods and the need for long-term flood management strategies. The Brahmaputra floods article extends this theme to riverine flooding. It shows that how geomorphological processes such as sediment deposition and channel migration, combined with extreme rainfall, demand basin-wide management rather than an embankment-centric approach.

  • Fast-track courts: When they can be established, where they lag

    Why in the News

    Indian Prime Minister assured to set up fast-track courts (FTCs) to try exam paper-leak cases, announced after protests by the Cockroach Janta Party (CJP) at Jantar Mantar. A draft Bill on paper leaks was taken to Cabinet on Friday, but existing fast-track courts show that speed depends on constitutional limits, infrastructure and investigation quality.

    What are fast-track courts, and what legal basis funds them?

    1. No single governing law: There is no central legislation that governs fast-track courts as a category.
    2. 14th Finance Commission origin: The 14th Finance Commission (2015-2020) recommended FTCs to expedite trials of heinous crimes such as murder, kidnapping and property disputes pending over five years, and for cases involving vulnerable groups such as women and children.
    3. 2019 fast-track special courts (FTSCs) scheme: In 2019, following a Criminal Law (Amendment) Act, 2018 and a Supreme Court directive, the Union Government launched a centrally sponsored scheme for fast-track special courts (FTSCs), funded partly by the Nirbhaya Fund, exclusively for rape cases and offences under the Protection of Children from Sexual Offences (POCSO) Act, 2012. (Nirbhaya Fund: Following the Nirbhaya case of 16th December, 2012, the Government has set up a dedicated fund , Nirbhaya Fund, which can be utilized for projects specifically designed to improve the safety and security of women. It is a non-lapsable corpus fund, being administered by Department of Economic Affairs, Ministry of Finance. The Ministry of Women and Child Development (M/o WCD) is the nodal Ministry to appraise/recommend proposals and Schemes to be funded under Nirbhaya Fund.)

    Can a Special Court be created for a single case?

    1. Article 14: Creation of special courts must satisfy the Right to Equality under Article 14.
    2. Anwar Ali Sarkar precedent: In State of West Bengal vs Anwar Ali Sarkar (1952), the Supreme Court struck down a law letting the government arbitrarily pick cases for special courts for the “object of speedier trial” alone, calling “speed” too vague a criterion.
    3. Reasonable Classification: Cases assigned to special courts must be based on an objective and rational classification, such as the nature of the offence or vulnerability of victims.
    4. A precedent for public-demand cases: The Supreme Court directed the Centre to establish a special court for the 2G case to ensure a day-to-day trial, even amid public demand.
    5. NEET’s uncertain path: It remains to be seen whether the NEET case, being heard in a Delhi court, will be sent to a special court by the government or through a court order.

    How quickly are Fast-Track Courts expected to dispose of cases?

    1. No statutory deadline: There is no fixed legal time limit for completing trials.
    2. Bharatiya Nagrik Suraksha Sanhita (BNSS) recommended timelines: Recommends completing criminal trials within two years and sexual offence trials within two months.
    3. FTSC Performance Target: Each Fast-Track Special Court (FTSC) is expected to dispose of 41-42 cases per quarter or at least 165 cases annually.
    4. No judicially prescribed outer limit: In P. Rama Chandra Rao vs State of Karnataka (2002), a seven-judge Constitution Bench ruled it is “neither advisable or feasible, nor judicially permissible” to prescribe an outer limit for concluding all criminal proceedings.

    What do current Fast-Track Court statistics show?

    1. Current strength: As of January, 862 regular FTCs were functioning across 21 states and Union Territories, alongside 774 FTSCs, including 398 exclusive POCSO courts, across 29 states and UTs.
    2. Disposal rates: The disposal rate for special courts stands around 96%, with an FTSC disposing of about 9.5 cases a month compared with 3.3 cases by a regular trial court of similar jurisdiction.
    3. Persistent pendency: More than 2.4 lakh cases remained pending in FTSCs by the end of 2023.
    4. Government’s own explanation: A 2026 Lok Sabha reply from the Ministry of Law and Justice attributed disposal delays to factors including physical infrastructure availability, quality of investigation, and cooperation of the bar, investigation agencies and forensic support.

    Will Fast-Track Courts solve the paper leak problem?

    1. Poor Conviction Record: Out of 45 major exam paper leaks (2002-2025) involving at least one lakh candidates, only two cases resulted in convictions.
    2. Investigation is the Real Bottleneck: Weak investigations and the absence of stringent bail provisions remain the major challenges.
    3. Limited Impact: Experts argue that FTCs alone cannot solve issues such as judicial vacancies, heavy case pendency, and procedural delays.
    4. Mixed Performance: FTSCs have shown limited success in POCSO and Indian Penal Code (IPC) cases because of heavy caseloads, while performing relatively better in cases under the Prevention of Corruption Act, 1988.

    Conclusion

    Fast-track courts can expedite trials only within the constitutional limits set in Anwar Ali Sarkar case(1952) and cases must rest on a rational classification, not speed or public demand alone. Even then, the FTSC record shows disposal depends on infrastructure and investigative quality that a court’s “fast-track” label does not create. With 2.4 lakh cases still pending in FTSCs and only two convictions among 45 major exam leaks since 2002, the paper-leak Bill will resolve little unless it also addresses investigation quality and bail conditions.

    PYQ Relevance

    [UPSC 2024] What are the aims and objects of the recently passed and enforced, The Public Examination (Prevention of Unfair Means) Act, 2024? Whether University/State Education Board examinations, too, are covered under the Act?

    Linkage: The PYQ examines the legal and institutional framework for ensuring the integrity of public examinations. The article builds directly on this theme by evaluating whether fast-track courts can effectively enforce accountability under the proposed paper-leak framework.

  • Is corruption the biggest threat to India’s future?

    Why in the News?

    Thousands of students have been protesting since the National Eligibility cum Entrance Test (NEET) paper leak earlier this year, reviving memories of the India Against Corruption (IAC) movement. The question arises whether the Right to Information (RTI) Act, 2005 has delivered on its promise of accountability or whether institutions meant to enforce it have been weakened.

    Has digitalisation reduced petty corruption?

    1. No reduction on the ground: Digitalisation has been pushed as a “magic wand” but has not prevented corruption; bribery remains an “open secret” in government offices.
    2. A new barrier for the marginalised: Digitalisation has added a layer excluding the poor, the marginalised, and the unlettered, who cannot fill forms online and must pay private cafes “obnoxious amounts” for government services.
    3. No grievance redressal law: Parliament discussed a grievance redressal law in detail in 2014, but it has still not been enacted.

    How has the Digital Personal Data Protection (DPDP) Act, 2023 weakened the RTI Act?

    1. Original balance in the RTI Act: The Act’s original 87-word definition of personal information allowed such information to be denied to citizens, but not to Parliament or state legislatures.
    2. Judicial reinterpretation: The Girish Ramchandra Deshpande Supreme Court judgment was misread to mean all personal information could be exempted from disclosure.
    3. Privacy without balance: The K.S. Puttaswamy judgment recognised a fundamental right to privacy without a balancing test against the right to information.
    4. Section 17A of the Prevention of Corruption Act, 1988: The Prevention of Corruption Act’s Section 19, which required sanction for prosecution, was joined in 2018 by Section 17A, which requires government permission even to investigate corruption charges against a public servant. (Section 17A bars police from conducting any inquiry or investigation into corruption allegations against a public servant without prior government approval. This applies specifically to decisions or recommendations made in their official capacity)

    Why does corruption remain low-risk despite these laws?

    1. Historical conviction data: A 2008 study of the CBI’s anti-corruption branch performance from 1980 to 1984 found 280 people accused in courts, of whom 144 were convicted, with investigations averaging 13.4 months but the first trial averaging 88 months.
    2. Near-zero incarceration: The same 2008 study found only four people had been in prison for more than 20 days.
    3. Heavy Right To Information (RTI) use, weak enforcement: About six million RTI requests are filed annually in India, the highest of any country, and the Act has played a role in exposing the Vyapam scam, the Adarsh Housing Society scam and the electoral bond scheme.
    4. Captured agencies: Certain analysts distate that the CBI, the Enforcement Directorate (ED) and the Lokpal have been “compromised” and are not tackling big-ticket corruption cases.
    5. Lokpal’s cost without output: Public evaluations point out that while the anti-corruption body has historically consumed ₹50-60 crore annually (with a revised budget allocation of ₹30 crore for the fiscal year 2026-27), it has struggled to deliver major, high-profile convictions.

    Is institutional weakness a cause or consequence of corruption?

    1. Vacant appointments: The government delayed filling key posts, leaving the transparency watchdog short-staffed or non-functional for long periods.
    2. Non-transparent appointments even after court orders: Courts repeatedly directed the administration to make timely appointments to prevent the Right to Information (RTI) framework from becoming ineffective. Post-intervention selections often proceeded without fully disclosing applicant vetting details or selection criteria to the public.
    3. India’s rule of law ranking: India’s 79th rank in the World Justice Project Rule of Law Index highlights foundational weaknesses in fundamental rights, civil justice, and institutional checks on executive power. ( According to the World Justice Project (WJP) Rule of Law Index 2025 report,India has slipped to 86th position out of 143 countries globally. India has slipped six places compared to last year (79th rank).)

    Conclusion

    Corruption remains India’s biggest governance risk not for lack of transparency law. But this is because the institutions meant to enforce it, Information Commissions, the Lokpal, the CBI and the ED, have been weakened through non-transparent appointments, the DPDP Act’s rollback of RTI disclosures, and Section 17A’s added layer of protection for public servants. The remedy lies in enforcement: judicial delays cut to under a year, transparent Information Commissioner appointments, and withdrawal of the DPDP Act’s amendments to the RTI Act, 2005.

    PYQ Relevance

    [UPSC 2020] Recent amendments to the Right to Information Act will have profound impact on the autonomy and independence of the Information Commission”. Discuss.

    Linkage: Examines the impact of legal and institutional changes on the effectiveness of the RTI framework and transparency in governance. The article directly analyses how the DPDP Act, 2023 has diluted the RTI Act, weakened Information Commissions, and reduced transparency, thereby increasing the accountability deficit in combating corruption.

  • Is FCNR(B) a litmus test for diaspora deposits?

    Why in the News?

    The Reserve Bank of India (RBI) has revived the Foreign Currency Non-Resident (Bank) [FCNR(B)] concessional swap window, last used when Raghuram Rajan was Governor, to defend a rupee that has depreciated 12% year-on-year against the U.S. dollar. The move comes as Foreign Portfolio Investors (FPIs) withdrew ₹2.87 lakh crore from Indian equities between January and the first week of June 2026, already surpassing the ₹1.66 lakh crore pulled out in all of 2025.

    What is Foreign Currency Non-Resident (Bank) [FCNR(B)] account and its concessional swap window?

    1. Definition: It is a fixed-term deposit account for Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) that keeps funds in foreign currencies like USD, GBP, EUR, JPY, AUD, or CAD with tax-free interest and full repatriation.
    2. No Exchange Risk: Funds stay in the original foreign currency from deposit to maturity, protecting from rupee value changes.
    3. The FCNR(B) concessional swap window: It is a special Reserve Bank of India (RBI) facility that allows Indian banks to swap long-term foreign currency NRI deposits at a heavily discounted hedging cost, helping boost India’s foreign exchange inflows.

    What has the RBI designed to attract diaspora capital, and how has the market responded?

    1. Concessional swap facility: The RBI is offering banks a swap facility for FCNR(B) deposits with maturities of three to five years, cutting the cost of hedging foreign currency exposure by around 3% against prevailing FX swap rates of 2.8%-3.3% for that tenor.
    2. Deposit window: The scheme covers fresh FCNR(B) deposits mobilised until September 30, 2026, and targets $50-70 billion in inflows.
    3. Higher returns for depositors: Most large banks are offering around 6%, and some smaller or private banks up to 7.1%, under the swap window, compared with 4%-4.4% on U.S. Treasuries.
    4. Response so far: Total foreign currency mobilisation under the scheme has reached $20.72 billion, of which $17.4 billion (84%) has come through FCNR(B) deposits alone.
    5. Currencies covered: Deposits are maintained in the U.S. Dollar, Pound Sterling, Euro, Japanese Yen, Australian Dollar, and Canadian Dollar, with both principal and interest denominated in foreign currency.

    Why has this window become necessary now?

    1. Rupee under pressure: The rupee has depreciated 12% year-on-year against the U.S. dollar as of July 22, reflecting elevated geopolitical risk, a stronger dollar, higher import dependence and recently negative Foreign Direct Investment (FDI).
    2. FCNR(B) inflows had collapsed: Net FCNR(B) inflows fell to $946 million in FY26 from $7.1 billion in FY25, a decline of nearly 86%, before the swap window revived them.
    3. FPI outflows outpacing prior years: Foreign Portfolio Investors (FPIs) withdrew ₹2.87 lakh crore from Indian equities between January and the first week of June 2026, already exceeding the entire ₹1.66 lakh crore withdrawn in 2025.
    4. Unwinding forward positions: Reuters reported on July 22 that the RBI has likely used part of the initial inflows to unwind a portion of its forex forward book. (A forex forward book is the total record of all outstanding forward foreign exchange contracts held by an institution, such as the Reserve Bank of India on Reuters or a commercial bank, representing future agreements to buy or sell currencies at preset rates. It shows whether the entity holds more commitments to buy (long) or sell (short) a specific foreign currency like the U.S. dollar)

    Does this mark a return to crisis-driven fundraising, or a shift to strength-based buffer-building?

    1. Earlier crisis episodes: Resurgent India Bonds (1998) followed the Pokhran-II sanctions, India Millennium Deposits (2000) followed the post-Pokhran sanctions and the dotcom bust, and the first FCNR(B) drive (2013) raised about $34 billion from the diaspora during the “taper tantrum.”
    2. Current fundamentals differ: India’s forex reserves exceed $650 billion, there is no Balance of Payments (BoP) crisis, and the country retains investment-grade macroeconomic fundamentals.
    3. Stated aim now is buffer-building: The RBI’s objective is to build additional buffers against geopolitical uncertainty and volatile capital flows, not resolve an emergency.
    4. Liability trade-off remains: FCNR(B) deposits still add to India’s external liabilities even though they carry no exchange-rate risk for depositors.

    What precondition could undermine the scheme’s sustainability?

    1. Dependence on West Asia: West Asia accounts for nearly 50% of India’s inward remittances, which totalled about $129 billion in 2024, the world’s largest, according to the World Bank.
    2. Remittance growth moderating: Growth from Gulf countries has moderated as governments pursue labour nationalisation policies, oil-price volatility affects fiscal spending, and hiring of expatriate workers slows in some sectors.
    3. Competing Gulf deposit rates: Banks in Gulf countries are offering competitive dollar deposit rates amid war risk and digital-rival competition, making it harder for Indian lenders to compete.
    4. Crowding-out concerns: The RBI and the UAE Central Bank have reportedly held talks on concerns that Indian banks’ dollar deposit drive is crowding out UAE banks.
    5. Access gap for smaller banks: Small and mid-sized private banks without overseas branches or a GIFT City presence are exploring tie-ups with larger Indian banks that have a GIFT City presence.

    Conclusion

    The FCNR(B) revival shows India can mobilise diaspora capital from a position of macroeconomic strength, with forex reserves above $650 billion and no Balance of Payments (BoP) crisis, unlike the crisis-driven 1998 and 2013 fundraising drives. Its success is conditional on a precondition now under strain: continued remittance growth from a West Asia destabilised by war, oil-price volatility and labour nationalisation, even as the deposits themselves add to India’s external liabilities.

    PYQ Relevance

    [UPSC 2016] Justify the need for FDI for the development of the Indian economy. Why is there a gap between MOUs signed and actual FDIs? Suggest remedial steps to increase actual FDI in India.

    Linkage: The PYQ examines India’s external capital mobilisation strategy and the role of foreign capital in sustaining macroeconomic stability and economic growth. The FCNR(B) article extends this theme from equity capital (FDI/FPI) to diaspora debt capital. It analyses how the RBI uses FCNR(B) deposits to cushion FPI outflows, stabilise the rupee, augment forex reserves and strengthen external-sector resilience, while highlighting the trade-off of rising external liabilities.

  • Core upgrade: On the Index of Core Industries

    Why in the News?

    The Index of Core Industries (ICI) has been rebased and restructured, joining the Consumer Price Index (CPI), Wholesale Price Index (WPI), Index of Industrial Production (IIP) and national accounts in India’s overdue statistical modernisation cycle. The revised series adds a ninth sector, sharply changes sector weights, and reports a five-month-high growth rate for June 2026. The update, however, exposes a real production shortfall that better statistics cannot fix, and leaves an institutional anomaly in the compilation of core economic indices unresolved.

    What is the Index of Core Industries (ICI)?

    1. Definition: The Index of Core Industries (ICI) is a monthly production volume index released by the Office of Economic Adviser on the DPIIT Portal that measures the output of key foundational infrastructure sectors in India
    2. Predictor of industrial performance: It acts as an early predictor of overall industrial performance well ahead of the broader Index of Industrial Production (IIP) release.
    3. Revised base year: The base year has shifted from 2011-12 to 2022-23 to reflect current economic realities.

    What does the revised Index of Core Industries change, and why now?

    1. New base year and coverage: The ICI has been rebased (2022-23) and now covers nine sectors instead of eight, with iron ore added as the ninth sector.
    2. Correction of double-counting: The measurement of the steel and coal sectors has been revised to remove double-counting present in the earlier series. Only Raw Coal has been retained in the new series of ICI, by excluding Coal Middling and Washed Coal in order to remove double counting, since Coal Middling and Washed Coal are made from Raw Coal.
    3. Reweighting toward electricity: The electricity sector’s weight has risen to more than 30% of the index from less than 20% in the previous series.
    4. Reweighting away from fossil fuels: The coal and natural gas sectors have had their weights nearly halved, to about 5.6% and 3.8% respectively.
    5. Delayed catch-up/Alignment with other Index: The revision aligns the ICI with recent updates to the CPI, WPI, IIP, and National Accounts. Following the earlier practice, the weights of the ICI (2022-23) series have been derived from the weights of the corresponding items of IIP (2022-23) series, which have been pro-rata distributed to 100.

    Does the headline growth number reflect genuine industrial strength or a statistical mirage?

    1. Five-month-high growth: The new series recorded ICI growth of 5% in June 2026.
    2. Base-effect distortion: Iron ore output grew 43.9% and electricity output grew 9.8% in June 2026, but both figures reflect a statistical base effect, since both sectors had contracted in June 2025.
    3. Uncertain durability: It remains unclear whether current growth rates will hold once the base effect wears off in coming months.
    4. Persistent contraction underneath: The crude oil sector has contracted continuously for 18 months and the natural gas sector for 24 months, a real supply-side weakness the new series does not resolve.
    5. The deeper shortcoming: This is a serious shortcoming if India possesses these resources but cannot extract them economically, rather than a case of resource absence.

    Should ICI and WPI be compiled by MoSPI?

    1. The Ministry of Statistics and Programme Implementation (MoSPI) already compiles the Consumer Price Index (CPI) and the Index of Industrial Production (IIP).
    2. However, the Index of Core Industries (ICI) and the Wholesale Price Index (WPI) continue to be compiled by the Ministry of Commerce and Industry.
    3. Methodological Harmonization: ICI weights are derived directly from the IIP basket managed by MoSPI. Unifying them under one roof prevents administrative friction during base-year overhauls and weight redistributions.
    4. Streamlined Deflators: WPI and output-based producer price metrics are heavily relied upon to deflate nominal macroeconomic numbers like Gross Domestic Product (GDP) and IIP. Moving price and production tracking to the nodal statistical ministry improves synchronization.
    5. Institutional Credibility: Centralizing macro data collection reduces inter-ministerial silos, creating a single unified command for official national statistics.
    6. Domain Expertise: The Ministry of Commerce and Industry works closely with industrial stakeholders, trade bodies, and sector-specific experts (like DPIIT), which helps in real-time ground tracking of wholesale prices and core output.

    Conclusion

    The revised Index of Core Industries brings India’s oldest industrial data series current, with a new base year, a ninth sector and reweighted components. But June 2026’s five-month-high growth figure is partly a statistical base effect masking continuous contraction in crude oil and natural gas output. What remains unresolved is not measurement but extraction capability, along with an institutional anomaly by which the WPI and the ICI still sit outside MoSPI, unlike the CPI and the IIP.

  • FDI Allowed in Inventory-Based E-commerce Model for Exports

    Why in News?

    The Department for Promotion of Industry and Internal Trade (DPIIT) has allowed Foreign Direct Investment (FDI) in the inventory-based model of e-commerce for the export of goods manufactured in India, marking the first major relaxation in India’s e-commerce FDI policy.

    What is the New Policy?

    • 100% FDI is now permitted in the inventory-based e-commerce model, only for exports of goods manufactured in India.
    • The relaxation is under the Foreign Trade Policy (FTP), 2023 and related regulations.
    • It does not apply to domestic e-commerce sales.

    Marketplace vs Inventory Model

    • Marketplace Model: The e-commerce platform acts as an intermediary connecting buyers and sellers without owning inventory. 100% FDI under the automatic route is already permitted.
    • Inventory Model: The e-commerce entity owns the inventory and sells directly to consumers. FDI was previously prohibited but is now allowed only for export operations.

    Why is this Significant?

    • Aims to boost India’s e-commerce exports, currently around US$5 billion, compared to China’s US$300 billion.
    • Encourages exports by Micro, Small and Medium Enterprises (MSMEs), artisans, and startups.
    • Supports exports of handicrafts, garments, books, gems and jewellery, and other Made in India products.

    Concerns

    • Monitoring separate inventories for domestic and export sales may be difficult.
    • Experts believe this could become a stepping stone towards permitting FDI in inventory-based domestic e-commerce.

    About DPIIT

    • Full Form: Department for Promotion of Industry and Internal Trade.
    • Ministry: Ministry of Commerce and Industry.
    • Functions:
      • Formulates and administers India’s FDI Policy.
      • Promotes industrial development and ease of doing business.
      • Oversees startup and industrial promotion initiatives.

    [2022] With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct?
    1. They can sell their own goods in addition to offering their platforms as market-places.
    2. The degree to which they can own big sellers on their platforms is limited.
    Select the correct answer using the code given below:

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

  • Gati Shakti Cargo Terminals (GCTs)

    Why in News?

    The Government informed Parliament that 142 Gati Shakti Cargo Terminals (GCTs) have been commissioned under the Gati Shakti Multi-Modal Cargo Terminal (GCT) Policy, with approvals granted for 310 additional terminals to strengthen rail-based logistics.

    What is the Gati Shakti Cargo Terminal (GCT) Policy?

    • Launched to promote private investment in rail-linked cargo terminals.
    • Supports the PM Gati Shakti National Master Plan by improving multimodal logistics.
    • GCT locations are selected based on: Industrial demand, Freight potential, Availability of railway infrastructure, and Logistics potential of the region

    Key Highlights

    • 142 GCTs commissioned across India.
    • 310 additional terminals approved.
    • Freight handling capacity: 224 Million Tonnes Per Annum (MTPA).
    • ₹10,000 crore private investment mobilised.
    • Freight handled in 2025-26: 146 Million Tonnes (MT).

    Benefits

    • Reduces first-mile and last-mile logistics costs.
    • Promotes modal shift from road to rail, lowering logistics costs and emissions.
    • Improves wagon turnaround and freight efficiency.
    • Supports sectors such as: Cement, Steel, Power, Mining, Agriculture, Manufacturing, and Automobiles

    Infrastructure Created

    • GCTs provide modern logistics facilities such as: Warehouses, Silos, Cold storage, and Rail-linked cargo handling facilities
    • These improve market access for industries and farmers while generating employment.

    Prelims Value Added

    • PM Gati Shakti National Master Plan was launched in 2021 as a GIS-based digital platform for integrated infrastructure planning.
    • It aims to improve multimodal connectivity by integrating roads, railways, ports, airports, waterways, and logistics infrastructure.
    • MTPA = Million Tonnes Per Annum.

More posts