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  • Air Quality Commission Bill, 2021

    The Lok Sabha has passed the Bill to formalize the Commission for Air Quality Management For National Capital Region and Adjoining Areas.

    Highlights of the AQC Bill

    • The AQC would be a ‘permanent’ body to address pollution in the National Capital Region Delhi and address sources of pollution in Delhi, Punjab, Rajasthan, Haryana and Uttar Pradesh.
    • The all-powerful body assumed several powers to coordinate action among States, levy fines — ranging up to ₹1 crore or five years of prison — to address air pollution.

    Key features

    • Over-riding powers: While the Central Pollution Control Board (CPCB) and its state branches have the powers to implement provisions of the Environment Protection Act for air, water and land pollution.
    • In case of dispute or a clash of jurisdictions, the AQC’s writ would prevail specific to matters concerning air pollution.
    • Chair: The body has a full-time chairperson and a range of members consisting of both representatives from several Ministries as well as independent experts and will have the final say on evolving policy and issuing directions.
    • Curb on stubble burning: the Commission may impose and collect environment compensation causing pollution by stubble burning.
    • No penalties to farmers: The Centre, facing flak earlier this year from farmers protesting the farm laws, had committed to removing a clause in the Air Commission Bill that would penalize farmers for burning stubble, an important contributor to noxious air quality.
  • Indigenous Aircraft Carrier 1 (INS Vikrant)

    The much-awaited sea trials of India’s maiden indigenous aircraft carrier (IAC-1), built by the public sector Cochin Shipyard Ltd (CSL) have begun.

    Indigenous Aircraft Carrier 1

    • IAC is the first aircraft carrier designed and built in India.
    • It has been designed by the Indian Navy’s Directorate of Naval Design (DND), and is being built at Cochin Shipyard Limited (CSL), a public sector shipyard under the Ministry of Shipping.
    • The IAC-1, the biggest warship made indigenously, has an overall length of 263 m and a breadth of 63 m.
    • It is capable of carrying 30 assorted aircraft including combat jets and helicopters.
    • Propelled by four gas turbines, it can attain a top speed of 30 knots (about 55 kmph).
    • The vessel will have a complement of 1,500 personnel.

    Significance of IAC 1

    • An aircraft carrier is one of the most potent marine assets for a nation, which enhances a Navy’s capability to travel far from its home shores to carry out air domination operations.
    • Many experts consider having an aircraft carrier as essential to be considered a ‘blue water’ navy — one that has the capacity to project a nation’s strength and power across the high seas.
    • An aircraft carrier generally leads as the capital ship of a carrier strike/battle group.
    • As the carrier is a valuable and sometimes vulnerable target, it is usually escorted in the group by destroyers, missile cruisers, frigates, submarines, and supply ships.

    Why does it matter that this is a Made-in-India warship?

    • Only five or six nations currently have the capability of manufacturing an aircraft carrier — India joins this elite club now.
    • According to the Navy, over 76 per cent of the material and equipment on board IAC-1 is indigenous.
    • India’s earlier aircraft carriers were either built by the British or the Russians.
    • The INS Vikramaditya, currently the Navy’s only aircraft carrier that was commissioned in 2013, started out as the Soviet-Russian Admiral Gorshkov.
    • The country’s two earlier carriers, INS Vikrant and INS Viraat, were originally the British-built HMS Hercules and HMS Hermes before being commissioned into the Navy in 1961 and 1987 respectively.

    Why will this warship be named INS Vikrant?

    • INS Vikrant, a Majestic-class 19,500-tonne warship, was the name of India’s much-loved first aircraft carrier, a source of immense national pride over several decades of service before it was decommissioned in 1997.
    • India acquired the Vikrant from the United Kingdom in 1961, and the carrier played a stellar role in the 1971 war with Pakistan that led to the birth of Bangladesh.

    Now that India has the capability, will it build more carriers?

    • Since 2015, the Navy has been seeking approval to build a third aircraft carrier for the country, which, if approved, will become India’s second Indigenous Aircraft Carrier (IAC-2).
    • This proposed carrier, to be named INS Vishal, is intended to be a giant 65,000-tonne vessel, much bigger than IAC-1 and the INS Vikramaditya.
    • The Navy has been trying to convince the government of the “operational necessity” of having a third carrier.
  • [pib] Fast Track Special Courts

    The Union Cabinet has approved the continuation of 1023 Fast Track Special Court (FTSCs) including 389 exclusive POCSO Courts for two more years.

    Fast Track Special Courts

    • Fast Track Special Courts are dedicated courts expected to ensure swift dispensation of justice.
    • They have a better clearance rate as compared to the regular courts and hold speedy trials.
    • Besides providing quick justice to the hapless victims, it strengthens the deterrence framework for sexual offenders.
    • Central Share is to be funded from Nirbhaya Fund. The Scheme was launched on 02.10.2019.
    • To bring more stringent provisions and expeditious trial and disposal of such cases, the Central Government enacted “The Criminal Law (Amendment) Act, 2018”.
    • It made provision of stringent punishment including the death penalty for perpetrators of rape.
    • This led to the establishment of the Fast Track Special Courts (FTSCs).

     Note: Article 247 gives power to Parliament to establish certain additional courts for the better administration of laws made by it or of any existing laws with respect to a matter enumerated in the Union List.

    Benefits offered by fast track courts

    • Further the commitment of the Nation to champion the cause of safety and security of women and girl child.
    • Reduce the number of pending cases of Rape & POCSO Act.
    • Provide speedy access to justice to the victims of sexual crimes and act as a deterrent for sexual offenders.
    • Fastracking of these cases will declog the judicial system of the burden of case pendency.
  • Power Politics Is India: Using Energy Ties to Redraw Its Global Role ?

    Power Politics Is India: Using Energy Ties to Redraw Its Global Role ?

    N4S: UPSC often frames questions on India’s bilateral relations through a current affairs lens and asks aspirants to connect them with broader themes like regional stability or strategic autonomy (as seen in 2020’s Indo-US vs Indo-Russia defence question or the 2024 Maldives question on maritime security). Aspirants usually falter in one key area—they either focus too much on generic facts or fail to weave in current, evolving trends like the energy-defence convergence or how diplomacy has become issue-specific. This article helps bridge that gap. It takes two concrete anchors—energy cooperation (like green hydrogen collaborations and clean tech tie-ups) and defence collaboration (like GE-HAL engine co-development, foundational pacts like LEMOA)—and explains how these are not isolated moves but part of a deeper strategic shift. It also brings a fresh structure by showing how India’s diplomacy has been “re-engineered”—no longer driven by ideology, but by sectors like health (Vaccine Maitri), technology (iCET for semiconductors), or digital diplomacy (exporting UPI). The real win for students is the “table of transformation” that compares India’s diplomacy then and now. This gives a ready-made, analytical framework to tackle any mains question—not just about the U.S., but about how India is positioning itself globally. 

    PYQ ANCHORING

    GS2 :  What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region. [2020]

    GS 2:  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? [2024]

    MICROTHEMES:  Bilateral Relations

    In a significant signal of strengthening strategic ties, U.S. Vice-President J.D. Vance recently affirmed that the United States is prepared to deepen its partnership with India, with a particular focus on energy cooperation and defense collaboration. This statement reflects not just shared geopolitical interests but also a recognition of India’s growing role as a key player in global stability and technology-driven development. As both nations navigate an increasingly complex Indo-Pacific and energy landscape, what could closer cooperation look like—and what opportunities and challenges lie ahead? And is the emerging energy-defense axis the foundation of a new India–U.S. era?

    The Emerging India–U.S. Energy-Defense Axis: A Strategic Convergence

    As geopolitical uncertainties mount and global power dynamics shift, the India–U.S. relationship is entering a new phase marked by deepening ties in two high-stakes sectors: energy and defense. This evolving “energy-defense axis” is not merely transactional—it’s strategic, with long-term implications for regional security, technological collaboration, and the global energy transition.

    1. Energy Cooperation: Securing Futures, Greening Growth

    1. Oil and Gas Trade Expansion
      – The U.S. has become one of India’s top suppliers of crude oil and LNG, helping India diversify away from Middle East dependence.
    2. Clean Energy Partnerships
      – Joint initiatives like the U.S.-India Strategic Clean Energy Partnership (SCEP) and India–U.S. Climate and Clean Energy Agenda 2030 aim to promote cleaner fuels and technologies.
    3. Green Hydrogen Collaboration
      – Both countries are cooperating on R&D and infrastructure for green hydrogen, a key future fuel for decarbonisation.
    4. Solar and Battery Supply Chain Integration
      – The U.S. is helping India reduce dependence on Chinese solar imports by boosting domestic solar and battery ecosystems.
    5. Carbon Capture and Climate Finance
      – Pilot projects and policy dialogues focus on carbon capture and climate-resilient infrastructure, especially in high-emission sectors like cement and steel.
    6. Strategic Energy Dialogue Platforms
      – Institutional mechanisms like the India–U.S. Energy Dialogue ensure regular government-to-government coordination on energy policy, technology transfer, and financing.

    2. Defense Cooperation: From Buyer–Seller to Strategic Partners

    1. Major Defense Partner Status
      – India was granted “Major Defense Partner” status in 2016, unlocking access to advanced U.S. defense technology and systems.
    2. Foundational Defense Agreements
      – India has signed LEMOA, COMCASA, BECA, and GSOMIA, which enable logistics sharing, encrypted communications, and geospatial intelligence exchange.
    3. Bilateral and Multilateral Military Exercises
      – Regular joint exercises like Yudh Abhyas (Army), Malabar (Navy), and Cope India (Air Force) improve interoperability and combat coordination.
    4. Defense Co-Development Initiatives
      – Projects like the GE-HAL jet engine deal and potential drone manufacturing partnerships indicate a shift from arms buyer to co-producer.
    5. Technology Transfer & Industrial Tie-ups
      – U.S. companies are entering joint ventures with Indian firms to manufacture defense equipment locally under Make in India.
    6. Indo-Pacific Security Convergence
      – Shared concerns over China’s assertiveness in the Indo-Pacific have brought India and the U.S. closer in maritime surveillance and strategic planning.

    Re-engineering of India’s Diplomacy over the years


    Indian diplomacy no longer pivots on a single axis. In the age of climate risk, digital public goods, contested supply chains and a revisionist China, New Delhi has morphed from the champion of non-alignment into a hyper-pragmatic power that builds different coalitions for different problems. Whether it is shipping vaccines to 70-plus countries, co-developing jet engines with the United States or pitching India’s UPI stack in Africa, the Ministry of External Affairs now treats every sector—energy, technology, defence, health—as a separate theatre of influence. The table below captures this subject-wise evolution at a glance.

    Subject AreaPrimary Focus (1950s – 1990s)Current Focus (2000s – 2020s)Flagship Examples & Platforms
    Political & Security DiplomacyDecolonisation, non-alignment, UN peace speechesIndo-Pacific strategy, Quad, foundational defence pacts, counter-terror outreachLEMOA / COMCASA / BECA with the U.S.; Quad Leaders’ Summits; BIMSTEC security dialogue
    Economic DiplomacyImport substitution, aid seeking, rupee tradeFTAs, supply-chain resilience, investment pitching, PLI incentivesIndia-UAE CEPA; Australia-India ECTA; Indo-Pacific Economic Framework (observer)
    Energy DiplomacySecure Gulf oil, Soviet assistance for refineriesGreen hydrogen, LNG from U.S., nuclear deals, solar alliancesInternational Solar Alliance; U.S.–India Strategic Clean Energy Partnership; Kudankulam & Kovvada nuclear projects
    Technology & Development DiplomacyTechnical training for neighbours, limited IT exportsExport of digital public goods, space launches, chip-research tie-upsVaccine Maitri; deployment of UPI in Nepal, France & UAE; iCET semiconductor cooperation with the U.S.
    Diaspora & Cultural DiplomacyProtect Indian workers abroad, cultural troupesDiaspora as economic & political lobby; Yoga Day; OCI card reformsLarge-scale diaspora events in Madison Square Garden, Sydney, Abu Dhabi; Pravasi Bharatiya Divas
    Climate & Global GovernanceLow-profile participant in climate talksLead voice of Global South on equity & finance, host of G20, CDRI championG20 Delhi Declaration 2023; Coalition for Disaster Resilient Infrastructure; “LiFE” initiative
    Health & Humanitarian DiplomacyLimited medical aid, WHO cooperationPharmacy of the World, vaccine exports, traditional medicine hubSupply of generic ARV drugs to Africa; WHO Global Centre for Traditional Medicine in Gujarat
    Space & Cyber DiplomacyScientific launches, INSAT for telecomCommercial launches, space situational norms, cyber norms advocacyContract launches for OneWeb; Artemis Accords sign-on; India-France space-security dialogue


    India’s external relations are no longer a single narrative of East-West balancing; they are a portfolio of mini-strategies tailored to energy security, digital supremacy, climate leadership and strategic deterrence—each with its own partners, platforms and playbook.

    Assessment of India’s policies

    India’s diplomacy has grown bolder, broader, and more issue-driven in the 21st century. It has made significant strategic gains, but challenges persist in converting ambitions into sustained outcomes. Below is a structured analysis of both successes and challenges in this evolving journey.


    Major Diplomatic Successes

    AreaSuccesses
    Global Leadership RecognitionHosted a landmark G20 Summit in 2023, positioning India as a voice of the Global South and a key player in global governance.
    Strategic PartnershipsSigned foundational defence agreements with the U.S., deepened defence ties with France, and balanced ties with Russia amid shifting power equations.
    Technology DiplomacyPioneered digital public infrastructure diplomacy (e.g. UPI, Aadhaar), earning praise from nations across Africa, Southeast Asia, and Latin America.
    Energy & ClimateChampioned the International Solar Alliance and Mission LiFE, securing credibility as a green energy partner while balancing fossil fuel needs.
    Health DiplomacyExecuted Vaccine Maitri, supplying over 250 million COVID-19 vaccine doses to 100+ countries—soft power at its peak.
    Diaspora & Soft PowerTransformed the diaspora into a diplomatic asset through emotional connect, political lobbying, and economic investment channels.

    Key Diplomatic Challenges

    AreaChallenges
    Strategic BalancingManaging contradictions between deepening ties with the U.S. and continuing defence cooperation with Russia, especially post-Ukraine war.
    Neighbourhood First PolicyStressed ties with Maldives, Nepal, and Sri Lanka at various points due to internal politics, Chinese influence, and delivery gaps.
    Trade Negotiation CapacityIndia walked out of RCEP, and several FTA negotiations (e.g., with EU) have faced delays or limited ambition.
    Institutional CapacityIndia’s diplomatic machinery (limited number of IFS officers, under-resourced embassies) often struggles to match global ambitions.
    China ChallengeDespite growing global influence, India faces an aggressive China on its borders and in strategic regions like the Indian Ocean and South Asia.
    Climate & Energy DilemmaBalancing between green transition commitments and domestic energy security remains tricky, especially with rising power demand.

    India has successfully redefined its diplomacy from being merely reactive and moralistic to becoming assertive, agenda-setting, and diversified. But to become a true global power, India will need to:

    • Build institutional depth in foreign policy,
    • Manage great power tensions deftly,
    • Deliver on-the-ground impact in its neighbourhood,
    • And maintain credibility as a reliable, rule-based partner in an increasingly turbulent world.

    Way Forward for India’s Evolving Diplomacy

    1. Strengthen Institutional Capacity: Expand the Indian Foreign Service (IFS) cadre, improve training in tech, trade, and crisis diplomacy, and empower missions abroad with better resources and coordination.
    2. Bridge Strategy with Delivery in the Neighbourhood: Ensure faster implementation of infrastructure, energy, and connectivity projects in South Asia to counter Chinese influence and restore trust in India’s leadership.
    3. Diversify Strategic Autonomy Playbook: While deepening ties with the U.S., India must maintain a pragmatic balance with Russia, Middle Eastern powers, ASEAN, and Africa to preserve diplomatic flexibility.
    4. Leverage Diaspora as Economic Connectors: Move beyond cultural events—use diaspora networks to channel investments, startup capital, and tech partnerships into Indian innovation ecosystems.
    5. Lead on Global South Issues: Champion fair climate finance, equitable digital infrastructure, and food-energy security for the Global South to build long-term strategic goodwill.
    6. Invest in Issue-Specific Diplomacy Cells: Set up dedicated units within MEA and other ministries for climate, cyber, maritime, and space diplomacy to respond rapidly to emerging global issues.

    BACK2BASICS: IMPORTANCE OF INDIA’S ENERGY DIPLOMACY

    As the world’s third-largest energy consumer and a rapidly growing economy, India’s energy needs are massive and urgent. From securing oil in the Gulf to leading the green energy transition, India’s energy diplomacy has evolved into a strategic pillar of its foreign policy. It now cuts across geopolitics, climate goals, and technological cooperation, reflecting the country’s twin priorities: energy security and energy transition.

    Key Pillars of India’s Energy Diplomacy

    1. Oil and Gas Diplomacy

    • Objective: Ensure uninterrupted supply of crude oil and LNG to power India’s economy.
    • Engagements:
      • Long-term contracts with Gulf countries like Saudi Arabia, UAE, Iraq.
      • Strategic investments in Russian and African oil blocks.
      • Sourcing LNG from Qatar, Australia, and the U.S..
    • Institutions: Indian Strategic Petroleum Reserve (ISPR), OVL (ONGC Videsh Ltd), GAIL.

    2. Energy Security through Strategic Partnerships

    • With the U.S.: India–U.S. Strategic Energy Partnership (SEP) focuses on oil, gas, clean energy, and innovation.
    • With Russia: Cooperation on nuclear energy, oil & gas investments (e.g., Sakhalin-I).
    • With IEA: India is an Associate Member, giving access to global energy data and best practices.

    3. Nuclear Energy Cooperation

    • Civil nuclear deals with the U.S., France, and Russia post-2008 Nuclear Suppliers Group (NSG) waiver.
    • Kudankulam (Russia) and Jaitapur (France) nuclear power projects.
    • India now promotes nuclear energy as a clean base-load source for energy transition.

    4. Renewable Energy and Climate Diplomacy

    • India is a major global player in solar and wind energy:
      • International Solar Alliance (ISA) founded by India to unite tropical countries around solar.
      • Global leader in pushing green hydrogen, offshore wind, and battery storage.
    • Partnering with Germany, Denmark, Japan, and UAE for clean tech.

    5. Green Hydrogen & Future Tech Diplomacy

    • India’s National Green Hydrogen Mission has international tie-ups with EU, Australia, and Japan.
    • Aim: Become a hub for low-cost, exportable green hydrogen by 2030.

    6. Multilateral Energy Engagements

    • Active in IEA, OPEC+ dialogues, G20 energy track, and BRICS energy platforms.
    • Pushes for “just energy transitions” in the Global South, linking development with clean growth.

    Challenges

    • Over-dependence on fossil fuel imports (85% of oil is imported).
    • Vulnerability to geopolitical shocks (e.g., Russia-Ukraine war, West Asia tensions).
    • Technology gap in clean energy manufacturing (e.g., solar modules, batteries).
    • Financing issues in scaling renewable infrastructure and transmission.

    Successes

    • Diversification of suppliers and fuel types.
    • Global leadership in solar diplomacy and green transition.
    • Smart use of energy diplomacy in strengthening bilateral ties (e.g., with UAE, U.S., Saudi Arabia).
    • Progress in building strategic petroleum reserves.

    Conclusion:

    India’s energy diplomacy today is no longer just about importing oil—it is about shaping global energy trends. From influencing climate finance conversations to pioneering solar coalitions, India is positioning itself not just as a consumer—but a leader of energy transition for the developing world.

    SMASH MAINS MOCK DROP

    India’s evolving partnership with the United States, driven by energy and defence convergence, marks a shift from ideological diplomacy to sectoral strategic alignment. Critically analyse this transformation in the context of India’s broader foreign policy objectives.

  • Vaccination and normalising of monetary policy hold key to economic rebound

    Context

    Increasing pace of vaccination and normalising of monetary policy hold key to economic rebound.

    K-shaped recovery and its impact

    • Growth indicators so far suggest resilience in the short term — a shallow dent in May’s economic activity followed by a recovery in June, back to April’s levels.
    • K-shaped recovery: The external, investment and industrial sectors have been relatively resilient, with consumption and services bearing the brunt.
    • Notwithstanding signs of some fatigue in ultra-high frequency indicators in July, damage from the second wave seems largely limited to April-June 2021.
    • However, K-shaped recovery means light cracks on the top conceal much larger structural faultlines below.
    • Rising poverty: The Pew Research Centre estimates that the pandemic has led to India’s poor rising by 75 million while the middle and upper-middle class has shrunk by 39 million.
    • MSMEs and informal workforce worst hit: A recent survey by the ILO finds that the worst-hit — MSMEs and their informal workforce — have struggled to access the government’s pandemic support programmes.
    • These more structural scars may become blurred in the GDP data in coming quarters but will almost certainly affect the medium-term growth story.

    Way forward in the near term

    1) Policy

    • Achieving two objectives: When inflation is under control, then flush liquidity and ultra-accommodative monetary policy will help achieve two objectives—
    • 1) Ensuring easy financial conditions.
    • 2) Help control borrowing costs of the government’s expansive borrowing programme.
    • Inflation risk: The above strategy is not costless, it effectively uses the central bank’s credibility in controlling inflation as “collateral”.
    • So when inflation flares up and remains sticky, this arithmetic becomes increasingly complicated.
    • The RBI’s consistent message recently has been to view the current inflation surge as a “temporary hump”.
    • Much as the current monetary policy stance maintains that the economy is ill-equipped to handle policy normalisation, it is a matter of when rather than if.
    • As growth strengthens and the RBI’s inflation-targeting credibility comes under greater scrutiny, a policy pivot would become increasingly likely.

    2) Vaccination

    • The “ultimate unlocking” of the economy remains contingent on a critical mass getting vaccinated, which on materialising should trigger a revival in consumer and business sentiment.
    • The uptick in the pace of vaccination over the last few days and higher seroprevalence reported in some states are welcome news.

    Conclusion

    Even with widespread vaccinations, future pandemic waves may well be unavoidable. Fiscal, monetary and administrative policies cannot remain in a suspended emergency.


    Back2Basics: K-shaped recovery

    • A K-shaped recovery occurs when, following a recession, different parts of the economy recover at different rates, times, or magnitudes.
    • This is in contrast to an even, uniform recovery across sectors, industries, or groups of people.
    • A K-shaped recovery leads to changes in the structure of the economy or the broader society as economic outcomes and relations are fundamentally changed before and after the recession.
    • This type of recovery is called K-shaped because the path of different parts of the economy when charted together may diverge, resembling the two arms of the Roman letter “K.”
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  • The goal of making the rupee a global reserve currency

    Context

    India will celebrate 100 years of Independence in 2047.  This article makes the case that prosperity is possible and best accomplished by the goal of making the rupee a global reserve currency by India@100.

    What is the purpose of having forex reserves?

    • Official foreign exchange reserves of about $12 trillion across 150 countries are currently stored in eight currencies: 55 per cent in US dollars, 30 per cent in euros, and 15 per cent in six other currencies.
    • Protection in case of volatility: This concentration is inevitable given exploding trade, rising capital flows, and the less acknowledged motivation of protecting your reserves from your currency’s volatility.
    •  A reserve currency has to serve as a medium of exchange, a store of value, and a unit of account. 

    Steps India would require to take

    • Full capital account convertibility: To fulfil the ambition of becoming the reserve currency, the first step is full capital account convertibility, as suggested by the Tarapore Committee in 1997. 
    • Advocate rupee invoicing: Dollar investors in the last decade not experiencing the usual big bite out of rupee returns is useful for advocating trading partners to start rupee invoicing.
    • Offshore corporate rupee borrowing: Raising corporate rupee borrowing offshore and onshore will also help.
    • Digital currency: We need to accelerate our CBDC (central bank digital bank currency) plans.
    • Take payment networks to a global level: We need to take our UPI payment technology to the world, the dollar gets heft from global networks like Visa, MasterCard and Swift.
    • Raise tax to GDP ratio: Fiscal policy must raise our tax to GDP ratio, raise the share of direct taxes in total taxes, and keep our public debt to GDP ratio under 100 per cent.
    • Monetary policy: Monetary policy must control inflation while moderating central bank balance sheet size.
    • Economic policy: Economic policy must raise the productivity to reach goals in formalisation, urbanisation, financialisation (100 per cent credit to GDP ratio), industrialisation (less than 15 per cent farm employment), internationalisation (higher share of global trade) and skilling.
    • Institutional reforms: These goals must be complemented by reinforcing institutions that signal rule of law; cooperative federalism, press freedom, civil service effectiveness, and judicial independence.

    How it will help India?

    • Becoming a global reserve currency is helpful because it indirectly aligns fiscal, monetary, and economic policy.
    • Low-interest rate: The main advantage is the “exorbitant privilege” of lower real interest rates.
    • Edge over China: The 2 per cent renminbi share in global reserves — despite a 25 per cent increase last year — doesn’t reflect their status as the world’s second-largest economy and biggest trading nation.
    • China’s astounding economic success seems to be making China overconfident.
    • Chinese overconfidence creates an opportunity for India. 

    Conclusion

    Prosperity for all Indians by India at100 — a precondition for a country where the mind is without fear and the head is held high — needs bold reforms in the next 25 years. These reforms are best measured by the wholesome and achievable goal of the rupee becoming a global reserve currency by 2047. The journey is the reward.

  • Important Rebellions and Peasant Movements

    04th Aug, 2021

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