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  • Centre set to expand mechanised sanitation scheme to rural India

    Why in the News

    The Social Justice Ministry has moved a proposal to extend the National Action for Mechanised Sanitation Ecosystem scheme from towns and cities to rural parts of the country. The scheme profiles sewer and septic tank workers as the route to its benefits, and coverage is being widened ahead of a delivery channel that approves capital subsidy for a small fraction of those profiled.

    Components of NAMASTE

    1. Profiling and identification: Sanitation workers are enumerated at camps run by urban local bodies, and that profile is the entry point to every other component of the scheme.
    2. Occupational safety: Profiled workers are given safety training and personal protective equipment for the work they already perform.
    3. Capital subsidy for self employment: A profiled worker or a Private Sanitation Service Organisation may apply for a capital subsidy to buy mechanised equipment and set up a sanitation enterprise.
    4. Emergency Response Sanitation Units: Urban local bodies are supported to set up standing units equipped with suction and jetting machines, so that a sewer or septic tank is cleaned by machine instead of by human entry.

    What is manual scavenging?

    1. Manual scavenging: Manual scavenging is the manual handling, carrying or disposing of human excreta from an insanitary latrine, an open drain, a pit or a railway track. The Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013 prohibits both the practice and the employment of any person for it.

    Who is a sewer and septic tank worker (SSW)?

    1. Sewer and septic tank worker: A sewer and septic tank worker (SSW) is a person engaged in cleaning sewer lines, manholes and septic tanks, whether employed directly or engaged through a contractor. The category is distinct from manual scavenging in law, since the work is lawful when performed with mechanised equipment and prescribed safety gear.

    What is a Private Sanitation Service Organisation (PSSO)?

    1. Private Sanitation Service Organisation: A Private Sanitation Service Organisation (PSSO) is a private entity providing mechanised sanitation services that can propose projects for capital subsidy under the scheme. It is one of two proposal routes, the other being an application by an individual worker.

    What is the Safai Udyami Yojana?

    1. Safai Udyami Yojana: The Safai Udyami Yojana is the self employment component under which sewer and septic tank workers receive capital subsidy to set up their own sanitation enterprise. It is one of the two self employment routes in which the National Commission for Scheduled Castes has flagged rejections.

    What does the proposed expansion change?

    1. Geographic extension: The proposal takes the scheme’s scope from towns and cities to rural parts of the country for the first time.
    2. New worker categories: Coverage will be widened to include drain cleaners, and workers in sewage treatment plants and faecal sludge treatment plants.
    3. Outlay and horizon: The Ministry has proposed around ₹498.73 crore for the expanded scheme, to be spent from this fiscal year to 2030-31.
    4. Second widening of scope: The scheme initially covered only sewer and septic tank workers and was first expanded to include waste pickers, so the rural extension is the second enlargement.
    5. Original aim retained: The scheme was started in 2023-24 with the aim of eradicating sewer and septic tank deaths, and the expansion does not alter that objective.

    Why has the scheme’s delivery record become the central concern?

    1. Profiling against approval: 90,915 sewer and septic tank workers have been profiled across the country, and only 810 have been approved for capital subsidies.
    2. Approval against disbursal: Of the 810 approved, 147 had actually received their funds as on 31 March 2026.
    3. Subsidy covers only part of the cost: The capital subsidy meets up to 50 per cent of total project cost, so an approved worker still has to raise the balance before the enterprise can start.
    4. Manual scavengers identified: Only 2,652 projects have been approved against the 58,000 manual scavengers identified under the scheme.
    5. Both routes inside the count: The 2,652 approvals include projects proposed by Private Sanitation Service Organisations as well as by individuals, so the figure is not a count of individual entrepreneurs alone.
    6. Waste picker coverage: 1.3 lakh waste pickers have been profiled alongside the sewer and septic tank workers, per the Ministry’s annual report for 2025-26.

    What has the National Commission for Scheduled Castes flagged?

    1. Repeated correspondence: The Commission has written repeatedly to the Social Justice Ministry since last year on the continued rejection of applications under the self employment and capital subsidy components.
    2. Rejections identified as the cause: It has held that one reason for the low number of approved projects is the high rate of rejections.
    3. Rejections across every part: It has noted rejections under each part of the capital subsidy component, and asked that these be examined.
    4. The August 2025 letter: That letter flagged rejections in the self employment components, both in the Safai Udyami Yojana and in the component for Private Sanitation Service Organisations.
    5. Source of the mandate: The Commission acts under Article 338, which empowers it to investigate and monitor safeguards for the Scheduled Castes and to inquire into specific complaints.

    Why do sewer and septic tank deaths persist under a statutory prohibition?

    1. Deaths on record: 498 people died across the country while engaged in the hazardous cleaning of sewers and septic tanks from 2019 to June 2026, per the Social Justice Ministry’s reply to Parliament in August 2026.
    2. Enforcement rests with the employer: The Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013 bars hazardous cleaning without protective gear, and the duty to enforce falls on local authorities who are frequently the employers themselves.
    3. Contracting layer: Sewer cleaning is routinely outsourced, which separates the municipal principal from the worker who enters the tank.
    4. Rehabilitation lag: A worker whose capital subsidy application is rejected returns to the same work, so profiling without disbursal leaves the occupational risk untouched.
    5. Rural gap unmeasured: Rural areas have been outside the scheme until this proposal, so deaths in village septic tanks have had no dedicated scheme response.

    Challenges to NAMASTE

    1. Rejection concentrated in the subsidy pipeline: The bottleneck sits between profiling and approval rather than between approval and identification. Eg. The National Commission for Scheduled Castes has recorded rejections under every part of the capital subsidy component and has asked the Ministry to explain them.
    2. Balance financing after subsidy: The worker must raise the uncovered share of project cost as a loan against negligible collateral. Eg. National Safai Karamcharis Finance and Development Corporation term loans routed through State channelising agencies have carried low utilisation and weak recovery.
    3. Urban local body capacity: Emergency Response Sanitation Units need trained crews and maintained machines, which small municipalities cannot sustain. Eg. The Safaimitra Suraksha Challenge launched in 2020 enrolled 246 cities to become sewer death free, and participation was concentrated in large municipal corporations rather than small towns.
    4. Contractor liability gap: Outsourcing lets the principal employer distance itself from a death inside a manhole. Eg. In Delhi Jal Board v National Campaign for Dignity and Rights of Sewerage and Allied Workers (2011), the Supreme Court held that the principal employer cannot escape liability by engaging contractors for sewer cleaning.
    5. No rural delivery cadre: Rural sanitation is administered by gram panchayats, which have no wing equivalent to an urban local body’s sanitation department. Eg. Faecal sludge emptying in villages is done by informal private operators outside any municipal register, which leaves no employer to profile a worker against.
    6. Monitoring by profiling count: Progress is reported as workers profiled rather than as workers rehabilitated, so the headline number rises without entitlement delivery following it. Eg. The Ministry’s annual report for 2025-26 leads with profiling totals for sewer and septic tank workers and waste pickers, and not with the count of workers placed in an alternative livelihood.

    Conclusion

    The Social Justice Ministry has proposed extending the National Action for Mechanised Sanitation Ecosystem scheme to rural India, to drain cleaners and to treatment plant workers. The proposal is at the stage of a Ministry submission and has not yet been notified, and the next milestone is approval of the expanded scheme and its outlay. The delivery record it inherits is a profiling count far ahead of the number of capital subsidy cases funded, alongside 498 sewer and septic tank deaths between 2019 and June 2026.

    “[2016] ‘Rashtriya Garima Abhiyaan’ is a national campaign to

    (a) rehabilitate the homeless and destitute persons and provide them with suitable sources of livelihood

    (b) release the sex workers from their practice and provide them with alternative sources of livelihood

    (c) eradicate the practice of manual scavenging and rehabilitate the manual scavengers

    (d) release the bonded labourers from their bondage and rehabilitate them

  • Climate resilience starts with the health workforce

    Why in the News

    Floods in Kerala and Assam have exposed the challenge of protecting lives during climate-related disasters, with attention going to rescue, relief camps and rebuilding. Analysis of climate-health governance across South and Southeast Asia shows that the workforce which prevents a disaster from becoming a prolonged public-health crisis is trained through fragmented, donor-supported projects rather than through the health system's own institutions.

    What is a climate-resilient health system?

    1. About: A climate-resilient health system is one able to anticipate, respond to, cope with and recover from climate-related shocks without interrupting routine health services.
    2. What it rests on: Its resilience ultimately depends on the workforce that delivers adaptation, since surveillance, emergency response and community outreach are performed by people rather than by plans.
    3. What changes under climate stress: Many of the foundational competencies required for climate adaptation already exist within health systems, and what changes is the context in which they must operate.
    4. The design principle: Climate change requires reorienting existing competencies through a climate lens and introducing new competencies where needed, rather than replacing what already exists.

    What is a heat action plan?

    1. About: A heat action plan is a city or region specific preparedness protocol that sets temperature thresholds, colour-coded warnings, and assigned responsibilities for health facilities, municipal bodies and emergency services during a heatwave.
    2. Why it is health-led: It converts a meteorological forecast into concrete health system action, covering hospital surge beds, oral rehydration supply, cooling spaces and outreach to outdoor workers and the elderly.

    What does the health workforce actually do during a climate disaster?

    1. Hospital preparedness: Hospitals prepare for medical emergencies, which is the visible clinical face of the response.
    2. Disease surveillance: Surveillance teams monitor disease outbreaks, since displacement and standing water raise the risk of communicable disease after a flood.
    3. Water quality testing: Laboratories test water quality, which determines whether relief camps and returning households face contamination risk.
    4. Community outreach: Community health workers reach vulnerable households, carrying care to those who cannot reach a facility.
    5. Cross-department coordination: Public health officials coordinate responses across departments, since the response involves disaster management, water supply, municipal services and health together.
    6. The net effect: It is the health workforce that prevents a natural disaster from becoming a prolonged public-health crisis, which is the least visible part of the response.

    What have states already put in place?

    1. Surveillance: States have begun to strengthen surveillance systems, which is the first line of detection for post-disaster outbreaks.
    2. Heat action plans: States have developed region-specific and city-specific heat action plans.
    3. Emergency preparedness: States have improved emergency preparedness arrangements within the health system.
    4. Programme integration: States have begun integrating climate considerations into several public-health programmes rather than treating climate as a separate vertical.
    5. The illustrative case: Kerala's response to the floods illustrates how health departments are increasingly incorporating public-health measures into disaster response.

    What does the South and Southeast Asia evidence show?

    1. The regional scope: The analysis covers climate-health governance across South and Southeast Asia, so the finding is regional rather than confined to one country.
    2. The central finding: Workforce development across the region remains fragmented, with no common architecture linking training to the health system's own institutions.
    3. The funding pattern: Climate-health training is largely confined to donor-supported or project-supported initiatives.
    4. What that implies: Capability rises and falls with the funding cycle of individual projects rather than accumulating within the system.
    5. Why the region matters for India: India's own state-level heat action plans and surveillance strengthening sit inside this regional pattern, so the fragmentation finding applies directly to Indian districts.

    Why does workforce capacity remain a surge response rather than a standing capability?

    1. The three questions the record raises: Whether these capacities can be sustained across all states, districts and levels of the health system; how surge capacities can be developed given the severe shortage of health workers across India; and whether capacities are being embedded across the workforce or continue to depend on individual relief-specific programmes and emergency mobilisation.
    2. The competency position: The competencies needed are largely present already, so the deficit is not one of knowledge.
    3. The institutional position: Those competencies sit in isolated training programmes rather than in the systems that produce, supervise and evaluate health workers.
    4. The consequence: Capacity is activated only during emergencies rather than translated into routine practice.
    5. The shortage constraint: The severe shortage of health workers across India limits how much surge capacity can be raised from an already stretched base.

    What would institutionalising climate-health competencies require?

    1. Beyond isolated training: Building climate-resilient health systems requires moving beyond isolated training programmes towards institutionalising climate-health competencies.
    2. The five integration points: These competencies should be integrated into pre-service education, professional development, supportive supervision, planning, and performance management.
    3. Pre-service education first: Placing climate-health content in pre-service education means every entrant carries the competency, rather than only those a project reaches.
    4. Supervision and performance: Embedding competencies in supportive supervision and performance management is what converts a completed training into observed practice.
    5. The three enablers: The integration must be supported by sustained governance, financing and institutional mechanisms.

    Challenges to Building a Climate-Resilient Health Workforce

    1. Absolute workforce shortage: Surge capacity cannot be drawn from a base that is already below norm, since redeploying staff for a flood response leaves routine services uncovered. Eg. Rural health facilities across India carry large shortfalls of specialists against Indian Public Health Standards, and community health centres report specialist vacancies in the range of two-thirds of sanctioned posts.
    2. Donor-cycle training: Competencies built through project funding disappear when the project closes, so the same district is trained repeatedly. Eg. Climate-health training across South and Southeast Asia remains largely confined to donor-supported or project-supported initiatives.
    3. Absence from pre-service curricula: Medical, nursing and allied health curricula do not carry climate-health competencies, so every entrant needs retrofitting. Eg. Heat illness protocols and post-flood outbreak management reach practitioners through workshops rather than through undergraduate training.
    4. Frontline worker load: Community health workers already carry multiple programme responsibilities, so a climate role is added without relief elsewhere. Eg. Accredited Social Health Activists deliver maternal health, immunisation, non-communicable disease screening and survey duties on an incentive-based payment structure.
    5. Data and early warning gaps: Health surveillance and meteorological forecasting run on separate systems, so an alert does not automatically reach a health facility. Eg. Heat action plans depend on India Meteorological Department warnings reaching district health officers in time for hospital preparation.
    6. Financing for adaptation: Adaptation finance for health competes with mitigation and infrastructure, so recurring workforce costs go unfunded. Eg. Global adaptation finance fell from 28 billion dollars to 26 billion dollars between 2022 and 2023, against a commitment to double it to 40 billion dollars by 2025.
    7. Attrition and contractual staffing: Much of the trained emergency workforce is on contract, so trained staff leave and the competency leaves with them. Eg. National Health Mission staff are engaged on contract across most States, with recurring demands for regularisation.

    Conclusion

    The health workforce is what prevents a climate disaster from becoming a prolonged public-health crisis, and its competencies are already largely present within health systems. The deficit is institutional, since climate-health training across South and Southeast Asia sits in donor-funded and project-funded initiatives rather than in pre-service education, professional development, supportive supervision, planning and performance management. Embedding those five points, supported by sustained governance, financing and institutional mechanisms, is what converts emergency mobilisation into routine practice. Until that happens, every flood and heatwave will draw on a surge capacity that has to be assembled afresh.

    Climate Change and Health in India

    1. The exposure: India faces heatwaves, floods, cyclones, droughts and air pollution simultaneously, so climate acts on health through multiple pathways rather than one.
    2. Heat: Rising heat exposure raises heat stroke, cardiovascular and renal illness, and reduces outdoor labour productivity, with outdoor workers, the elderly and pregnant women most exposed.
    3. Vector-borne disease: Warming and altered rainfall shift the range and season of malaria, dengue, chikungunya and Japanese encephalitis, moving transmission into districts and altitudes previously unaffected.
    4. Water-borne disease: Floods and cyclones contaminate drinking water and trigger diarrhoeal disease, cholera and leptospirosis outbreaks in the weeks after the event.
    5. Air quality: Ambient and household air pollution contribute to a very large share of India's non-communicable disease burden, with respiratory and cardiac mortality concentrated in the Indo-Gangetic Plain during winter.
    6. Nutrition: Crop yield loss and price shocks from extreme weather transmit into dietary quality, which shows up as child undernutrition rather than as a disaster statistic.
    7. The institutional response: The National Programme on Climate Change and Human Health, launched in 2019 under the National Health Mission, is the nodal programme, with State and district climate-health cells and nodal officers.
    8. The global frame: The Global Goal on Adaptation under the Paris Agreement now carries the 59 Belem Adaptation Indicators, the first global indicators for adaptation, spanning water, food, health, ecosystems, infrastructure and livelihoods.

    Government Initiatives

    1. National Action Plan on Climate Change: The 2008 framework of national missions, whose State Action Plans on Climate Change carry the health adaptation components at State level.
    2. National Action Plan for Heat Related Illnesses: Issued by the health ministry, it prescribes surveillance of heat-related illness and death, hospital preparedness, and health advisories during the heat season.
    3. National Disaster Management Authority heat guidelines: Guidelines for preparation of heat action plans, first issued in 2016 and revised subsequently, which States and cities use to build local plans.
    4. Ayushman Arogya Mandirs: Health and wellness centres delivering comprehensive primary health care, which are the delivery point for climate-sensitive surveillance and outreach at the community level.
    5. Integrated Disease Surveillance Programme and Integrated Health Information Platform: The national outbreak detection system, which is the mechanism through which post-flood and post-cyclone outbreaks are identified.
    6. Mission LiFE: A behavioural initiative on sustainable consumption, positioned as the demand-side counterpart to institutional climate action.

    Key Facts about Climate and Health Governance

    1. World Health Day: Observed on 7 April, marking the founding of the World Health Organization in 1948.
    2. National Doctors' Day: Observed on 1 July in India.
    3. Declaration on Climate and Health: COP28 at Dubai in 2023 was the first Conference of the Parties to formally address the health impacts of climate change, with a Declaration on Climate and Health endorsed by more than 140 nations, calling for climate-resilient health systems, extreme heat protocols and health co-benefits of mitigation. India did not sign it.
    4. Health Day at COP: COP28 also hosted the first dedicated Health Day on the official Conference of the Parties agenda, convened by the Presidency and the World Health Organization.
    5. Belem Adaptation Indicators: The 59 Belem Adaptation Indicators adopted at COP30 are the first global indicators for the Global Goal on Adaptation, and health is one of the domains they cover.
    6. Baku Adaptation Road Map: A two-year structured agenda running from 2026 to 2028 under the global goal on adaptation work programme, guiding progress on the Belem indicators and adaptation finance tracking.
    7. Adaptation finance goal: COP30 signalled a tripling of adaptation funding to 120 billion dollars a year by 2035 within the wider 1.3 trillion dollar pact, as a political signal rather than a binding commitment.

    Challenges in Climate and Health Governance

    1. Split institutional mandates: Climate policy sits with the environment ministry, disaster response with disaster management authorities and delivery with health departments, so no single authority owns climate-health outcomes. Eg. Heat action plans are issued under disaster management guidelines, and heat illness surveillance runs through the health ministry.
    2. Plans without financing: State and city plans are prepared without a dedicated budget line, so implementation depends on reallocating funds from other heads. Eg. Reviews of Indian heat action plans have found most lack identified funding sources and legal backing.
    3. Weak local vulnerability data: Plans use uniform thresholds rather than locally derived ones, so warnings misfire in humid or high-altitude districts. Eg. Heat thresholds calibrated for dry inland cities do not capture the combined temperature and humidity stress in coastal districts.
    4. Under-recording of climate-attributable deaths: Heat and flood-related mortality is recorded under proximate clinical causes, which understates the burden used to justify funding. Eg. Heat stroke deaths are frequently certified as cardiac or renal failure without the heat exposure being recorded.
    5. Primary care infrastructure gaps: Facilities lack cooling, uninterrupted power and water security, which are prerequisites for functioning during a heatwave or a flood. Eg. Many primary health centres operate without assured power backup for cold chain and emergency care.
    6. Fragmented surveillance integration: Meteorological, water quality and disease surveillance systems do not exchange data automatically, so early warning does not translate into facility-level preparation. Eg. Outbreak detection after floods relies on manual reporting through the Integrated Disease Surveillance Programme.
    7. International finance shortfall: Adaptation finance for the health sector remains a small fraction of climate finance, which pushes workforce costs back onto domestic budgets. Eg. Adaptation finance globally fell from 28 billion dollars to 26 billion dollars between 2022 and 2023.

    Way Forward

    1. Put climate-health in pre-service curricula: Introduce climate-health competencies into medical, nursing, allied health and public health curricula, so every new entrant carries them without retrofitting.
    2. Embed competencies in supervision and appraisal: Add climate-health tasks to supportive supervision checklists and to the annual performance appraisal of district health officers and facility staff.
    3. Fund workforce costs from domestic budgets: Provide a recurring National Health Mission budget line for climate-health cells, district nodal officers and refresher training, so capability does not lapse with donor projects.
    4. Localise heat and flood thresholds: Derive district-specific temperature, humidity and rainfall thresholds from local mortality and morbidity data, rather than applying uniform national cut-offs.
    5. Integrate the data systems: Link India Meteorological Department warnings, water quality testing and the Integrated Disease Surveillance Programme, so an alert automatically triggers facility-level preparation.
    6. Improve cause-of-death recording: Add climate exposure fields to death certification for heat, flood and cyclone events, so the burden is measured and can be budgeted against.
    7. Climate-proof health facilities: Provide assured power backup, cooling, water security and structural resilience at primary health centres and community health centres in high-exposure districts.
    8. Regularise the emergency workforce: Convert contract emergency and surveillance staff into regular cadres, so trained capacity remains in the system rather than leaving with the contract.

    Matching Previous Year Question

    “[2024, GS2, 15] In a crucial domain like the public healthcare system, the Indian State should play a vital role to contain the adverse impact of marketisation of the system. Suggest some measures through which the State can enhance the reach of public healthcare at the grassroots level.”

  • Export payments in rupees get trade policy benefits

    Why in the News

    Two paragraphs of the Foreign Trade Policy 2023 were amended on 20 August 2026 so that exporters invoicing overseas sales in Indian rupees receive the same trade policy benefits as those realising payment in foreign currency. Rupee invoicing has been permitted for years without carrying equal benefit, and removing that mismatch shifts the constraint from India's own rulebook to whether foreign buyers will hold and pay in rupees.

    What is the Foreign Trade Policy 2023?

    1. About: The Foreign Trade Policy is the framework issued by the Directorate General of Foreign Trade setting out the rules, entitlements and obligations governing India's exports and imports.
    2. What its benefits are: Policy benefits include duty remission and duty exemption entitlements that lower the cost of inputs used in exported goods, claimed against realised export proceeds.
    3. Export obligation: Several of these entitlements are conditional on the exporter fulfilling a stated export obligation, measured against the value of realised proceeds.
    4. The 2023 version: The current policy has no end date and is amended continuously by notification rather than being replaced every five years.

    What is the Asian Clearing Union?

    1. About: The Asian Clearing Union is a regional payment arrangement established in 1974 to facilitate trade settlements and reduce repeated transfers of foreign exchange by periodically settling the net obligations of its members.
    2. Membership: It has nine members, Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka, represented by their central banks or monetary authorities.

    What is a Special Rupee Vostro Account?

    1. About: A Special Rupee Vostro Account is a rupee account opened in an Indian bank by a correspondent bank of a partner country, through which international trade is invoiced, paid for and settled in rupees.
    2. Its purpose: The framework was implemented in view of the evolving dynamics of India's international trade, and it lets a foreign buyer pay in rupees without either side converting through a third currency.

    What exactly has changed in the Foreign Trade Policy?

    1. The stated purpose of the amendment: Two paragraphs of the Foreign Trade Policy 2023 were amended to align the provisions on denomination of export contracts and eligibility for policy benefits in respect of export realisation in Indian rupees with the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023.
    2. Denomination freed outside the Asian Clearing Union: For countries outside the Asian Clearing Union, export contracts and invoices may now be denominated in any foreign currency or in Indian rupees.
    3. Coverage: The amendments cover exports to all countries, with the applicable rules varying by destination.
    4. Two countries excepted: Eligible rupee payments for exports to any country other than Nepal and Bhutan will now qualify for trade policy benefits and count towards fulfilment of export obligations.
    5. Parity with foreign currency realisation: Rupee earnings received through approved banking channels are to be treated on par with export payments received in foreign currency.
    6. Lines of credit included: Exports financed through the Export-Import Bank of India or through Government of India lines of credit may also be invoiced in Indian rupees.

    Why were rupee realisations treated differently until now?

    1. Two rulebooks had drifted apart: The exchange control regulations permitted receipt in rupees while the trade policy did not extend the same benefit eligibility to those receipts, so the exporter chose the currency and lost the entitlement.
    2. The export obligation problem: An exporter claiming a duty exemption against an export obligation needed the realisation to count, and a rupee realisation that did not count left the obligation unfulfilled on paper.
    3. The Asian Clearing Union carve-out: Settlement among the nine members runs through the Union's own netting mechanism, which is why denomination rules for those destinations differ from the rest.
    4. The effect on behaviour: Faced with the risk of losing entitlements, exporters defaulted to dollar invoicing even where the counterparty was willing to pay in rupees.

    What does rupee invoicing do for India's external position?

    1. Reduces demand for foreign exchange in settlement: Every transaction invoiced in rupees is one that does not require the exporter or the buyer to source dollars, easing pressure on reserves.
    2. Removes a layer of conversion cost: Trade settled directly between two currencies avoids the spread paid twice when a third currency intermediates.
    3. Insulates counterparties under sanctions pressure: Rupee settlement lets trade continue with partners whose access to dollar clearing is restricted, which is why several Asian Clearing Union members matter here.
    4. Supports lines of credit as an export instrument: Invoicing Export-Import Bank of India and Government of India credit lines in rupees keeps both the financing and the payment inside one currency.
    5. Builds a rupee balance abroad: Settlement in rupees creates rupee holdings with foreign banks, which is the first condition for the currency being used beyond bilateral trade.

    Why does a rulebook change not by itself internationalise the rupee?

    1. Willingness sits with the counterparty: India can permit rupee invoicing and cannot make a foreign buyer accept payment in a currency it has no independent use for.
    2. A trade deficit limits the mechanism: Rupee settlement works most easily where flows are balanced, and India's persistent goods trade deficit means partners accumulate rupees faster than they can spend them.
    3. Idle balances need an investment outlet: A rupee balance held abroad is only attractive if it can be deployed in Indian government securities or corporate paper at a return the holder accepts.
    4. Currency weakness discourages holding: A depreciating currency is a poor store of value between invoice and use. Eg. The rupee was quoted at 95.71 to the dollar on the day the notification was issued.
    5. Convertibility remains partial: The rupee is convertible on the current account and only partially on the capital account, which limits what a foreign holder can do with a rupee balance.

    What challenges does rupee-denominated trade settlement face?

    1. Accumulated balances with no deployment route: Partners that sell more to India than they buy build rupee balances they cannot spend. Eg. Rupee balances held under vostro arrangements with Russia accumulated well beyond what Russian buyers could absorb in Indian goods.
    2. Exchange rate risk shifts to the foreign counterparty: A buyer paying in rupees carries the depreciation risk that the exporter previously bore. Eg. The rupee has weakened steadily against the dollar, having breached the 91 mark during 2025-26 and traded near 95.7 in August 2026.
    3. Thin rupee hedging markets offshore: A foreign counterparty cannot cheaply hedge a rupee exposure in the way it hedges a dollar one. Eg. Offshore non-deliverable forward markets in the rupee developed precisely because onshore hedging access is restricted for non-residents.
    4. Correspondent banking and compliance frictions: Opening and operating vostro accounts requires approvals and sanctions screening that smaller banks avoid. Eg. Trade with Asian Clearing Union member Iran has repeatedly stalled on the willingness of banks to handle the settlement leg.
    5. Interest rate and return disadvantage: Rupee balances earn less than the holder can obtain in reserve currency instruments unless a specific investment window is opened. Eg. Permission to invest surplus vostro balances in Indian government securities was extended precisely to address this gap.
    6. Documentation mismatch across regulations: Exporters must satisfy both exchange control and trade policy requirements, and any divergence between them creates a compliance risk. Eg. The present amendment exists only because eligibility rules under the Foreign Trade Policy had drifted from the Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023.
    7. Uneven customer experience at the bank counter: Documentation demands and delays at authorised dealer banks slow cross-border remittances regardless of the currency chosen. Eg. A supervisory review found multiple documentation requirements and cases of delay in executing cross-border remittances, and banks were advised to publish a clear policy on documentation, charges, timelines and grievance redress.

    Conclusion

    The amendment removes an internal inconsistency rather than creating a new entitlement, since it makes a rupee realisation earn the same trade policy benefit and count towards the same export obligation as a dollar realisation. That closes the reason exporters had for avoiding rupee invoicing even where the buyer was willing. The notification has been issued by the Directorate General of Foreign Trade and is in effect, and the measure that follows is whether the Special Rupee Vostro Account framework generates enough deployable rupee balances abroad for foreign buyers to choose rupee settlement on their own account.

    India's External Sector

    1. What it covers: The external sector comprises merchandise and services trade, investment flows in both directions, external borrowing, remittances, foreign exchange reserves and the exchange rate that links them.
    2. Two accounts: The current account records trade in goods and services, primary income and transfers. The capital and financial account records investment and borrowing flows.
    3. Direct investment position: India held fifth position globally in foreign direct investment inflows with $28 billion in 2024, fourth position in announced greenfield projects, and fifth position in international project finance deals.
    4. Recent direction of flows: Net foreign direct investment turned negative for three consecutive months during 2025, with gross inflows staying strong while outward investment and repatriation rose.
    5. Currency pressure: The rupee breached the 91 mark against the dollar during 2025-26 and emerged as Asia's worst performing currency amid trade uncertainty.
    6. Energy in the import bill: India depends on imports for over 88% of its crude oil requirement and about half of its natural gas consumption, so the trade balance moves with global energy prices.
    7. Global backdrop: Global foreign direct investment fell 11% in 2024, and the share of foreign direct investment in global Gross Domestic Product fell from 5% in 2007 to under 1% in 2023-24.

    Laws and Rules Governing Foreign Trade and Payments in India

    1. Foreign Trade (Development and Regulation) Act, 1992: Provides for the development and regulation of foreign trade and is the statute under which the Foreign Trade Policy and the office of the Director General of Foreign Trade exist.
    2. Empowers the Central government to formulate and announce the export and import policy and to amend it by notification.
    3. Foreign Exchange Management Act, 1999: Governs all foreign exchange transactions, replacing a control-based regime with a management-based one and treating contraventions as civil rather than criminal.
    4. Foreign Exchange Management (Manner of Receipt and Payment) Regulations, 2023 prescribe the currencies and channels through which export proceeds may be received, the regulations the present amendment aligns the trade policy to.
    5. Customs Act, 1962: Governs the levy of customs duty, valuation, clearance of goods and the operation of duty exemption and remission schemes at the border.
    6. Customs Tariff Act, 1975: Prescribes the rates of import and export duty and provides for anti-dumping and countervailing measures.
    7. Special Economic Zones Act, 2005: Governs the establishment and operation of zones treated as outside the customs territory for duty purposes.
    8. Reserve Bank of India Master Directions on Export of Goods and Services: Prescribe realisation and repatriation periods, documentation and the role of authorised dealer banks in export transactions.

    Government Initiatives for Export Promotion

    1. Remission of Duties and Taxes on Exported Products: Refunds embedded central, state and local duties and taxes that are not otherwise rebated, at notified rates by tariff line.
    2. Rebate of State and Central Taxes and Levies: Provides rebate of embedded taxes specifically for exports of garments and made-ups.
    3. Advance Authorisation and Duty Free Import Authorisation: Allow duty free import of inputs physically incorporated in an export product, against a stated export obligation.
    4. Export Promotion Capital Goods scheme: Permits import of capital goods at zero duty against an export obligation linked to the duty saved.
    5. Interest Equalisation Scheme: Provided interest subvention on pre-shipment and post-shipment rupee export credit, particularly for micro, small and medium enterprises and for identified sectors.
    6. Districts as Export Hubs: Identifies products with export potential in each district and builds district-level export action plans and institutional support.
    7. Market Access Initiative: Funds participation in international trade fairs, buyer-seller meets and market studies to open new destinations.
    8. Trade Connect e-Platform: Brings exporters, Indian missions abroad, export promotion councils and banks onto a single digital interface for market and regulatory information.

    Back2Basics: Directorate General of Foreign Trade (DGFT)

    1. What it is: The agency responsible for formulating, implementing and amending India's Foreign Trade Policy.
    2. Parent ministry: It functions under the Department of Commerce in the Ministry of Commerce and Industry.
    3. Statutory basis: It operates under the Foreign Trade (Development and Regulation) Act, 1992.
    4. Core function: It issues the Importer Exporter Code, without which no person may import or export except as exempted.
    5. Entitlement administration: It grants authorisations and scrips under the duty exemption and duty remission schemes and monitors fulfilment of export obligations.
    6. Instrument of change: It amends the Foreign Trade Policy and the Handbook of Procedures through notifications, public notices and circulars.
    7. Trade facilitation role: It runs the online platform through which authorisations are applied for and issued, and it handles quality complaints and trade disputes involving Indian exporters and importers.

    Challenges in India's External Sector

    1. Structural merchandise trade deficit: Import demand for energy, electronics and gold consistently exceeds export earnings, which keeps the current account in deficit. Eg. Net oil and gas imports rose 43.4% in value to $57.8 billion in April to July of 2026-27 from $40.3 billion a year earlier.
    2. Concentration of imports in a few commodities: A price shock in one commodity transmits directly to the trade balance. Eg. Every one dollar per barrel increase in oil prices raises India's annual oil import bill by up to $2 billion, on annual imports of 1.8 to 2 billion barrels.
    3. Protectionism and tariff shocks in destination markets: Export access can be withdrawn by unilateral action outside any trade agreement. Eg. Tariffs on key goods surged to 50% in August 2025, disrupting exporter planning.
    4. Competition from alternative manufacturing destinations: Rivals offer faster approvals and wider free trade agreement networks to firms relocating supply chains. Eg. Vietnam, Indonesia and Mexico compete directly for near-shoring investment that India seeks.
    5. Volatility of portfolio capital: Portfolio flows reverse quickly and transmit directly to the exchange rate. Eg. Foreign portfolio investors recorded an outflow of Rs 1.66 lakh crore, equivalent to $18.9 billion, in 2025, the largest since such investment began.
    6. Rising outward investment and repatriation: Indian firms investing abroad and foreign firms repatriating profits both reduce net inflows even when gross inflows hold up. Eg. Foreign companies operating in India repatriated about $5 billion in October 2025, of which $3.3 billion followed a single initial public offering.
    7. Round-tripping and financialisation of investment flows: A large share of inflows originates from a few jurisdictions and increasingly arrives through funds rather than as direct industrial equity. Eg. Inflows routed through Mauritius and Singapore reflect tax arbitrage rather than fresh industrial capital.
    8. Exchange rate depreciation raising the external debt burden: A weaker rupee raises the rupee cost of servicing external liabilities without any new borrowing. Eg. The rupee emerged as Asia's worst performing currency during 2025-26 amid trade uncertainty.

    Way Forward

    1. Open deployment routes for accumulated rupee balances: Allowing surplus vostro balances into Indian government securities, corporate bonds and project financing gives foreign holders a reason to accept rupees.
    2. Expand bilateral local currency settlement arrangements: Agreements with major trading partners, negotiated alongside the vostro framework, are what convert a permission into actual volumes.
    3. Deepen onshore rupee hedging access for non-residents: A foreign buyer that can hedge a rupee payable onshore no longer needs a dollar invoice to manage currency risk.
    4. Keep the trade policy and exchange control rulebooks synchronised: A standing reconciliation between the Foreign Trade Policy and the exchange management regulations would prevent the mismatch this amendment had to correct.
    5. Fix the customer experience at authorised dealer banks: Publishing documentation requirements, charges, timelines and escalation routes on bank websites and at branches removes a practical barrier that no notification reaches.
    6. Diversify the export basket and destinations: Reducing dependence on a small number of markets and product lines is the durable answer to unilateral tariff action.
    7. Reduce the energy component of the import bill: Faster domestic oil and gas output, refining efficiency and electrification of transport address the largest single driver of the trade deficit.

    Matching Previous Year Question

    “No direct PYQ traced in the provided files (closest microtheme: Foreign Exchange,Currency Devaluation)”

  • The Vanashakti verdict is balanced and pragmatic

    Why in the News

    The Supreme Court of India delivered its judgment in Vanashakti vs Union of India on 29 July 2026, on the fate of projects that began construction or operation without obtaining prior Environmental Clearance (EC). The ruling shuts the executive routes to regularisation while holding that the statutory power to create a fresh one survives, which moves the question of legacy violations from administrative discretion to statutory law making.

    What is prior Environmental Clearance under the Environment Impact Assessment Notification, 2006?

    1. The requirement: Prior Environmental Clearance is the approval a project proponent must obtain before commencing construction or operation of a listed project, based on an assessment of the project's likely environmental consequences.
    2. The legal source: It is mandated by the Environment Impact Assessment Notification, 2006. That notification is issued under Section 3 of the Environment (Protection) Act, 1986, the provision empowering the central government to take measures to protect and improve environmental quality.
    3. Coverage: It applies to listed sectors including mining, thermal power, infrastructure, construction and building projects above notified thresholds, and to real estate developments above specified built up area.
    4. Why the word prior matters: The clearance is a precondition for starting work, so an approval granted after work has begun cannot perform the function the law assigns it, which is to shape the project before its impact occurs.

    What is an ex post facto environmental clearance?

    1. Definition: An ex post facto environmental clearance is an approval granted to a project that has already commenced construction or operation without clearance, regularising the completed activity after the fact.

    What is an Office Memorandum in environmental regulation?

    1. Definition: An Office Memorandum is an internal executive communication issued by a ministry to set out an administrative procedure, and it carries no independent statutory force of its own.
    2. Its limit: It cannot create an exception to a requirement imposed by a statutory notification, since an administrative instrument cannot override the instrument that ranks above it.

    What did the Supreme Court hold on the 2017 Notification and the 2021 Standard Operating Procedure?

    1. Prior clearance reaffirmed as mandatory: The Court firmly reiterated that obtaining prior Environmental Clearance is a mandatory legal requirement under the Environment Impact Assessment Notification, 2006.
    2. The 2017 window is closed: Project proponents who commenced construction or operations without prior clearance and did not apply under the earlier violation mechanisms cannot now seek regularisation under the 2017 Notification.
    3. The 2021 Standard Operating Procedure struck down: The 2021 Standard Operating Procedure, issued as an Office Memorandum, was held legally unsustainable because an administrative memorandum cannot override the requirement of prior clearance.
    4. No fresh applications: Both mechanisms are no longer available for fresh cases, so the immediate operative message to project developers, industries and infrastructure agencies is that no fresh application can be made under them.
    5. What survives: The central government retains its Section 3 power to frame a fresh statutory mechanism for violation cases, if it considers this necessary in the larger public interest.

    Why did so many projects proceed without prior environmental clearance?

    1. Regulatory uncertainty: Some projects proceeded because the applicable regime was unsettled at the time work began, and the proponent could not identify with certainty which approval its category required.
    2. Incorrect interpretation of the law: Others proceeded on a mistaken reading of the requirement, treating a clearance as inapplicable to their category or their scale of activity.
    3. Failure to obtain approvals: A third set simply failed to obtain the necessary approvals before commencement, without any question of ambiguity in the law.

    Why does the distinction between an administrative memorandum and a statutory notification decide the outcome?

    1. Source of authority: A statutory notification draws its force directly from Section 3. An Office Memorandum draws only on the executive's power to instruct its own officials.
    2. Capacity to modify a legal requirement: Only an instrument of equal statutory standing can qualify a requirement imposed by the Environment Impact Assessment Notification, 2006, which is why the 2021 memorandum failed and a fresh notification would not.
    3. Procedural discipline: A statutory notification must be published, is open to legislative and judicial scrutiny in the form it takes, and cannot be varied by an internal circular.
    4. The practical consequence: The Court has not foreclosed relief for legacy violations, it has relocated the power to grant that relief from the ministry's administrative desk to a formal statutory instrument.
    5. A limit on the executive's own convenience: The distinction removes the option of granting case by case relief through evolving internal procedure, which is the mechanism through which the earlier windows expanded.

    Does barring post facto regularisation protect the environment or only strand completed projects?

    1. The deterrence claim: Environmental law cannot encourage deliberate violations by allowing routine post facto approvals, since a proponent who knows regularisation is available has no reason to wait for clearance.
    2. The proportionality claim: Indiscriminate closure or demolition of every violation project does not necessarily serve environmental protection or the larger public interest, particularly where the project is otherwise environmentally acceptable.
    3. The sunk investment problem: Numerous industrial units, commercial developments, infrastructure projects and public utility projects across India are in violation, and substantial investments have already been made in them.
    4. The pathway vacuum: Many such projects never applied under the earlier violation windows, so the closure of the 2017 scheme and the striking down of the 2021 memorandum leaves them with no legal pathway at all.
    5. How the judgment resolves the tension: It preserves the mandatory character of prior clearance while acknowledging the practical reality, refusing to convert the acknowledgement into a direction that the government must act.

    What safeguards must any future one time regularisation scheme carry?

    1. No permanent amnesty: Any future scheme cannot become a permanent violate first and regularise later mechanism, which is the specific design failure the Court guarded against.
    2. Strictly one time: The opportunity must be one time and confined to specified categories of violation projects, rather than a standing window that renews itself.
    3. Statutory authority: It must be issued as a notification under Section 3 and not as an administrative memorandum.
    4. Environmental damage assessment: The scheme must require an assessment of the environmental damage that the unauthorised commencement has already caused.
    5. Remediation and compensation: It must attach remediation measures and environmental compensation to the assessed damage, so that regularisation carries a cost proportionate to the harm.
    6. Strict compliance conditions: It must impose strict compliance conditions on the regularised project going forward, and be carefully designed within the framework of environmental law.
    7. No judicial direction to create it: The Court did not direct the central government to introduce such a scheme, it clarified that the government may do so if it considers it necessary in the larger public interest.

    Challenges to implementing the Vanashakti verdict

    1. Projects left without any pathway: Legacy violators outside the earlier windows now have no forum to approach until the government chooses to act, and inaction is a permissible outcome under the judgment. Eg. Real estate developments that exceeded their approved built up area before the 2017 window opened have no application route once the 2021 memorandum stands struck down.
    2. Capacity to assess environmental damage: Damage assessment for an already operating project requires baseline data that was never collected, because the baseline study is precisely what a prior clearance would have produced. Eg. State Pollution Control Boards in several States function with vacant technical posts and rely on proponent submitted monitoring data.
    3. Defining specified categories: Any future notification must draw a line between the proponent who acted in genuine regulatory uncertainty and the one who simply avoided approval, and the source material offers no test for that line. Eg. The 2017 Notification's six month window was criticised for treating a small unit's procedural lapse and a large mining expansion on identical terms.
    4. Fresh litigation risk: A one time notification will itself be challenged, so relief through this route is not quick relief. Eg. The 2021 Standard Operating Procedure survived for close to five years before it was set aside in the present judgment.
    5. Lender and contractual exposure: Projects with no clearance pathway carry impaired security for the banks that financed them, and the exposure does not sit with the proponent alone. Eg. Infrastructure projects halted for want of clearance have previously moved into stressed asset classification with their lending consortia.
    6. Enforcement against operating violators: Closure of the regularisation route does not by itself produce enforcement action, and the Court has not directed any. Eg. Show cause proceedings against units operating without clearance have historically ended in continued operation under interim orders.

    Conclusion

    The judgment settles that ex post facto regularisation cannot be granted by administrative memorandum while holding that Section 3 still permits a carefully framed statutory route. What it changes is the instrument, not the availability of relief, and it attaches damage assessment, remediation and compensation as the price of any such relief. What remains unresolved is whether the central government will exercise that power at all, since the Court has left the decision entirely to it. Until it does, thousands of legacy violation projects sit outside any legal pathway.

    Environmental Impact Assessment in India

    1. What it is: Environmental Impact Assessment is the process of predicting, evaluating and mitigating the environmental consequences of a proposed project before a decision on approval is taken.
    2. When it became mandatory: It was made legally mandatory in India by the Environment Impact Assessment Notification of 27 January 1994, which was superseded by the Environment Impact Assessment Notification, 2006.
    3. Project categorisation: Category A projects are appraised at the central level by the Union Ministry of Environment, Forest and Climate Change on the recommendation of an Expert Appraisal Committee, while Category B projects are appraised by the State Environment Impact Assessment Authority.
    4. The B1 and B2 split: Category B projects are further divided into B1, which require a full impact assessment report, and B2, which are exempted from that requirement.
    5. The four stages: The process runs through screening, scoping, public consultation and appraisal, with public consultation comprising a public hearing at the site and written responses from concerned persons.
    6. The 2020 draft: A draft Environment Impact Assessment Notification was published in 2020 for public comment and was never notified.

    Constitutional Framework Governing Environmental Protection

    1. Article 21: Guarantees the right to life, judicially read to include the right to a clean and healthy environment.
    2. Article 48A: Directs the State to protect and improve the environment and to safeguard the forests and wildlife of the country.
    3. Article 51A(g): Places a fundamental duty on every citizen to protect and improve the natural environment including forests, lakes, rivers and wildlife.
    4. Article 253: Empowers Parliament to legislate for the whole or part of India to implement international agreements, the provision under which the Environment (Protection) Act, 1986 was enacted.
    5. Seventh Schedule, Concurrent List Entry 17A: Places forests in the Concurrent List, moved there from the State List by the Forty second Constitutional Amendment.
    6. Seventh Schedule, Concurrent List Entry 17B: Places protection of wild animals and birds in the Concurrent List.

    Laws and Rules Governing Environmental Clearance

    1. Water (Prevention and Control of Pollution) Act, 1974: Establishes the Central and State Pollution Control Boards and requires consent to establish and consent to operate for discharging effluent.
    2. Amended by the Water (Prevention and Control of Pollution) Amendment Act, 2024, which replaced imprisonment with monetary penalties for several contraventions.
    3. Air (Prevention and Control of Pollution) Act, 1981: Empowers the Boards to declare air pollution control areas and to regulate emissions from industrial plants.
    4. Environment (Protection) Act, 1986: The umbrella statute empowering the central government to take all measures necessary to protect and improve the quality of the environment.
    5. Section 5 empowers the central government to issue directions including closure, prohibition or regulation of any industry.
    6. Environment (Protection) Rules, 1986: Prescribe emission and effluent standards and the procedure for issuing directions under the parent Act.
    7. Environment Impact Assessment Notification, 2006: Lists the projects requiring prior clearance and fixes the appraisal procedure and the authorities at each level.
    8. Forest (Conservation) Act, 1980: Requires prior approval of the central government for diversion of forest land to non forest use.
    9. Renamed the Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980 by the amendment of 2023, which introduced exemptions for specified categories of land.
    10. Coastal Regulation Zone Notification, 2019: Regulates construction and industrial activity in the coastal stretches and the intertidal zone.
    11. National Green Tribunal Act, 2010: Constitutes a specialised tribunal for effective and expeditious disposal of cases relating to environmental protection and enforcement of legal rights relating to environment.
    12. Public Liability Insurance Act, 1991: Requires owners handling hazardous substances to hold insurance for immediate relief to persons affected by accidents.

    Government Initiatives for Environmental Regulation

    1. PARIVESH portal: A single window online hub for submission, monitoring and management of environment, forest, wildlife and coastal regulation zone clearance proposals, upgraded to its second version in 2023.
    2. National Clean Air Programme: A time bound national framework launched in 2019 to reduce particulate matter concentrations in identified non attainment cities.
    3. Extended Producer Responsibility portals: Digital registration and credit trading platforms for plastic, battery, tyre and electronic waste producers under the respective waste management rules.
    4. Green Credit Programme: A market mechanism notified in 2023 that awards tradable credits for voluntary environmental actions such as plantation and water conservation.
    5. Mission LiFE: A behaviour focused initiative launched in 2022 to shift individual and community consumption patterns towards sustainable practice.
    6. National Adaptation Fund for Climate Change: A central fund supporting State level adaptation projects in vulnerable sectors and regions.

    Key Facts about Environmental Regulation in India

    1. World Environment Day: Observed on 5 June, marking the opening of the 1972 United Nations Conference on the Human Environment at Stockholm.
    2. National Pollution Control Day: Observed on 2 December in memory of those who died in the 1984 Bhopal gas disaster.
    3. A dedicated environment court: The establishment of the National Green Tribunal in 2010 made India the third country in the world, after Australia and New Zealand, to set up a specialised environmental court.
    4. Public hearing notice: The Environment Impact Assessment Notification, 2006 requires a minimum notice period of 30 days for the public hearing stage.
    5. Consultant accreditation: Impact assessment consultants are accredited through the National Accreditation Board for Education and Training under the Quality Council of India.
    6. Central Pollution Control Board: Constituted in 1974 under the Water Act, it functions as the technical apex body for pollution monitoring and standards.

    Challenges in Environmental Impact Assessment in India

    1. Proponent funded assessment: The impact assessment report is commissioned and paid for by the project proponent, which places the assessor in a client relationship with the party being assessed. Eg. Accreditation of consultants through the National Accreditation Board for Education and Training was introduced after assessment reports were found to carry copied ecological baseline chapters.
    2. Weak public consultation: Hearings are held at short notice, in venues distant from affected habitations and in a language the affected population does not read the documents in. Eg. Public hearings for coal block expansions in central India have been challenged before the National Green Tribunal on grounds of inadequate local language disclosure.
    3. Expanding exemption categories: Successive amendments have moved project categories out of the assessment requirement or into the B2 exempt class, shrinking the regime's coverage. Eg. Building and construction projects above notified built up area thresholds have repeatedly been shifted between assessment categories through amendment notifications.
    4. Absence of cumulative impact assessment: Each project is appraised in isolation, so the combined load of several projects on the same river basin or airshed is never assessed. Eg. Hydropower projects in the Himalayan river basins have been cleared individually without an assessment of the cumulative effect on downstream flow.
    5. Post clearance compliance monitoring: Half yearly compliance reports are self submitted by proponents and rarely verified through independent field inspection. Eg. Regional offices of the Union environment ministry cover several States each with a small inspection staff, which makes physical verification of every cleared project impossible.
    6. State appraisal authority capacity: State Environment Impact Assessment Authorities carry the bulk of the caseload with limited technical staff and periodic vacancies in their expert committees. Eg. Clearances issued by State authorities during periods when their expert appraisal committees stood unconstituted have been set aside by the National Green Tribunal.

    Back2Basics: Environment (Protection) Act, 1986

    1. Enactment context: It was enacted in the aftermath of the Bhopal gas disaster of December 1984, which exposed the absence of a general statute covering all forms of environmental harm.
    2. Constitutional basis: It was enacted under Article 253 to implement the decisions taken at the 1972 United Nations Conference on the Human Environment at Stockholm.
    3. Character: It is umbrella legislation, giving the central government general powers over environmental quality rather than regulating a single medium such as air or water.
    4. Commencement: It came into force on 19 November 1986.
    5. Definition of environment: The Act defines environment to include water, air and land and the interrelationship existing among and between them and human beings, other living creatures, plants, micro organisms and property.
    6. Penalty regime: Section 15 provided for imprisonment and fine for contravention, and was amended by the Jan Vishwas (Amendment of Provisions) Act, 2023 to substitute monetary penalties adjudicated by an appointed authority for several offences.
    7. Administering ministry: It is administered by the Ministry of Environment, Forest and Climate Change.

    Way Forward

    1. Frame the statutory notification with a hard sunset: Issue any one time mechanism as a notification under the parent Act with a fixed closing date written into the instrument itself, so it cannot be extended by circular.
    2. Define eligible categories by test, not by sector: Set an objective test distinguishing genuine regulatory uncertainty from avoidance, so that the scheme does not become a general amnesty by default.
    3. Make damage assessment independent: Require the environmental damage assessment for each applicant to be conducted by an accredited third party appointed by the regulator, not commissioned by the proponent.
    4. Link compensation to assessed harm: Calibrate environmental compensation to the damage assessed and the period of unauthorised operation, rather than to a flat percentage of project cost.
    5. Fund and staff the State authorities: Fill technical vacancies in State Environment Impact Assessment Authorities and Pollution Control Boards before loading them with damage assessment for legacy cases.
    6. Digitise post clearance compliance: Route compliance reporting through the PARIVESH platform with automated flagging and mandatory random field verification of a fixed share of cleared projects.
    7. Publish the pending violation inventory: Compile and publish a sector wise and State wise inventory of projects operating without clearance, so that any future scheme is designed against a known caseload.

    Matching Previous Year Question

    “[2020, GS3, 10] How does the draft Environment Impact Assessment (EIA) Notification, 2020 differ from the existing EIA Notification, 2006?”

  • Kerala having fewer kids – that’s bad news for teachers

    Why in the News

    Kerala's Public Service Commission recruited 6,114 people as teachers in government lower primary schools, and only 239 have been appointed so far. The shortfall traces to falling enrolment at the lower primary level, which is tied to the state's declining birth rate, so a completed demographic transition is now closing public teaching posts.

    What is staff fixation?

    1. About: Staff fixation is the exercise the Kerala Education Department conducts at the start of each academic year in June, in all government and aided schools, to fix the number of sanctioned teaching posts.
    2. Basis of the calculation: Posts are fixed on the number of students actually enrolled, and in the lower primary segment the teacher-student ratio applied is 1:30.
    3. Effect on vacancies: When a teacher retires, that vacancy can be filled only if that particular school continues to have the required number of students.
    4. Effect on serving teachers: Where a school falls below the required strength, the junior-most teacher can be removed from the post.

    What is the crude birth rate?

    1. About: The crude birth rate is the number of live births occurring in a year for every 1,000 people in the population, so it measures how fast a population is adding members without adjusting for its age structure.
    2. Why it is crude: It counts all persons in the denominator rather than only women of reproductive age, so a population with fewer young adults records a lower rate even at unchanged fertility per woman.

    What is a Public Service Commission rank list?

    1. About: A rank list is the ordered list of candidates who clear a Public Service Commission recruitment process, from which appointments are made in rank order as vacancies are reported by departments.
    2. Validity: A Kerala rank list is valid for a maximum period of three years, after which it lapses and candidates must compete afresh.

    Why are the recruited teachers not getting appointed?

    1. The recruitment figure: The Public Service Commission recruited 6,114 people as teachers in government lower primary schools for a period of three years starting June 2025.
    2. The appointment figure: Only 239 candidates have been appointed so far out of that list.
    3. The clock: The existing rank list expires in May 2028, and each such list runs for a maximum of three years.
    4. The protest: Rank holders have been on an indefinite agitation in front of the state secretariat, which has run for 41 days.
    5. The age barrier: Forty years is the upper age limit to apply for a government job in Kerala, so a candidate who ages out of the list has no second attempt.
    6. The stated cause: Stakeholders identify one key reason posts are not being filled, which is the fall in student enrolment at the lower primary level linked to declining birth rates.

    Who is waiting on the list?

    1. A candidate aged 40: One rank holder passed the teachers' training course 16 years ago in 2010, worked in government schools on daily wages for a few years, and is a single parent of two children.
    2. A candidate aged 27: Another completed the teachers' training course in 2017 at the age of 18, worked in various schools on a daily-wage basis, and figured in the 2019 supplementary rank list without securing a job because no appointments were made at the time.
    3. The aided school route: Aided school managements are demanding sums ranging from Rs 30 lakh to Rs 40 lakh for a post, which candidates from low-income households cannot pay.
    4. A returning migrant: A third candidate aged 36 worked as a salesman in the United Arab Emirates for 14 years before returning to Kerala and clearing the recruitment process.
    5. The protection cut-off: Teachers who joined schools up to 2022 are protected and can be redeployed if needed, and those appointed after 2022 are at risk of job loss and must wait for a new vacancy that rarely emerges.

    What does Kerala's enrolment data show?

    1. Four-year loss: Kerala's government and aided schools lost 3.33 lakh students between 2021-22 and 2025-26.
    2. The absolute numbers: Enrolment dipped from 38.68 lakh to 35.35 lakh over that period.
    3. First standard this year: Data presented in the Assembly shows 2,06,706 students enrolled in the first standard in government and aided schools following the state board syllabus this year.
    4. First standard last year: The corresponding figure in the last academic year was 2,34,476, a drop of 27,770 in a single year.
    5. The second cause: Apart from the declining birth rate, many parents are opting to send their children to private schools following the Central Board of Secondary Education syllabus.
    6. Consequence for posts: Scores of teaching jobs in the government sector have disappeared over the years for want of students.

    What does Kerala's birth rate trajectory show?

    1. The 1992 baseline: Kerala's crude birth rate was 17.67 in 1992 and stayed around that level for several years.
    2. The 2006 and 2010 readings: It slipped to 16.63 by 2006 and to 15.75 by 2010.
    3. Crossing below 15: The rate fell below 15 for the first time in 2016, at 14.48.
    4. The 2019 reading: It dropped again to 13.79 in 2019.
    5. The pandemic-period fall: It then declined by 1.02 between 2019 and 2020, and by a further 0.83 between 2020 and 2021, the sharpest consecutive falls in the series.

    Why is a demographic success now producing an employment problem?

    1. The achievement: A falling birth rate in Kerala is the outcome of high female literacy, near-universal schooling and low infant mortality, and it is treated as a development success.
    2. The mechanism that converts it into a loss: Staff fixation ties every teaching post to enrolment, so a smaller cohort of children mechanically reduces sanctioned posts.
    3. The lag between the two: Teacher training capacity and recruitment lists were built for an earlier cohort size, so supply of trained teachers continues even as demand contracts.
    4. The compounding factor: Migration of students to private schools following the Central Board of Secondary Education syllabus removes children from the government and aided system without reducing the total child population.
    5. The trap for candidates: A rank holder cannot be appointed against a post that no longer exists. The rank list lapses and the upper age limit closes the route to reapplying.

    Challenges to Teacher Recruitment in a Shrinking Cohort

    1. Posts tied to enrolment: Sanctioned posts fall automatically with enrolment, so recruitment cannot be planned independently of demographic trend. Eg. Kerala's government and aided schools lost 3.33 lakh students between 2021-22 and 2025-26.
    2. Rank lists that lapse unused: A three-year validity period runs out before the vacancies needed for appointment arise. Eg. The 2025 lower primary rank list carrying 6,114 names expires in May 2028 with 239 appointments made so far.
    3. Age limits that close the second attempt: Candidates who age out during the wait cannot reapply, which converts a delay into permanent exclusion. Eg. Forty years is the upper age limit for a government job in Kerala, and a rank holder aged 40 has no further attempt.
    4. Capitation in the aided sector: Aided school posts are effectively sold, which prices out candidates from low-income households. Eg. The Kerala Education Act, 1958 leaves appointment in an aided school with the private manager while the State pays the appointee's salary.
    5. Oversupply of trained teachers: Teacher training institutions continue to produce graduates against contracted demand. Eg. Candidates who completed the teachers' training course in 2010 and 2017 have spent years on daily-wage work without a regular post.
    6. Uneven protection across cohorts: Protection rules split serving teachers into secure and insecure groups by date of joining. Eg. Teachers who joined up to 2022 can be redeployed, and those appointed after 2022 face job loss when a school falls below strength.
    7. School viability at small sizes: Falling enrolment turns single-teacher and low-strength schools into candidates for closure or merger, which removes local access rather than only posts. Eg. Kerala has repeatedly had to designate uneconomic schools and protect them through special provisions.

    Conclusion

    Kerala's crude birth rate has fallen from 17.67 in 1992 to below 14 by 2019, with the steepest consecutive falls recorded in 2020 and 2021. Enrolment-linked staff fixation has translated that decline directly into sanctioned posts, so 6,114 recruited teachers have yielded 239 appointments and the rank list expires in May 2028. The state faces a planning problem rather than a recruitment problem, since teacher supply, school size norms and the pupil-teacher ratio were all set for a larger cohort. Resolving it requires revising the ratio, consolidating or repurposing low-strength schools, and aligning teacher training capacity with the demographic trend.

    What is Demographic Transition?

    1. About: Demographic transition is the shift a population makes from high birth and death rates to low birth and death rates as it develops economically and socially.
    2. Rationale: The model explains why population growth accelerates and then slows without any change in policy, since mortality falls before fertility does and the gap between the two produces the growth phase.
    3. Stage 1, high stationary: Both birth and death rates are high and fluctuate, so population size stays broadly stable with low growth.
    4. Stage 2, early expanding: Death rates fall sharply with better nutrition, sanitation and disease control, and birth rates stay high, which produces rapid population growth.
    5. Stage 3, late expanding: Birth rates begin to fall as education, urbanisation, female workforce participation and contraception spread, so growth slows.
    6. Stage 4, low stationary: Both rates are low, population growth approaches zero and the age structure ages, which is where Kerala now sits.
    7. Stage 5, declining: Birth rates fall below death rates and the population contracts absolutely, with a rising dependency burden of elderly persons.

    Key Concerns Regarding Demographic Transition

    1. Irreversibility: Once fertility falls well below replacement level, pronatalist policy has rarely restored it, so the smaller cohort persists for decades. Eg. South Korea's total fertility rate fell to about 0.7 despite years of cash incentives and parental leave expansion.
    2. A time-bound dividend: The working-age bulge that follows the fertility decline lasts only until that cohort ages, so the window for converting it into growth is finite. Eg. India's working-age share is projected to peak around the early 2040s, after which the dependency ratio begins to rise.
    3. Divergence within a federation: States complete the transition at different times, which creates simultaneous ageing in some States and youth pressure in others under one fiscal and political system. Eg. Bihar recorded a total fertility rate close to 3.0 in the fifth National Family Health Survey, the highest among the States.
    4. Ageing before affluence: Where the transition completes before per capita income rises, the state must fund pensions and elderly health care from a narrower base. Eg. China's population began ageing rapidly at a per capita income far below the level Japan had reached at the same age structure.
    5. Political representation: Population-based allocation of seats and fiscal transfers penalises the States that reduced fertility fastest, which links a public health achievement to a loss of political weight. Eg. Southern States objected to the Fifteenth Finance Commission's use of 2011 Census population, which reduced the weight given to their earlier fertility decline.

    Laws and Rules Governing School Education

    1. Right of Children to Free and Compulsory Education Act, 2009: Guarantees free and compulsory elementary education for children aged 6 to 14 and prescribes norms for schools.
    2. It prescribes a pupil-teacher ratio of 30:1 at the primary stage and 35:1 at the upper primary stage, and bars deployment of teachers for non-educational work other than census, disaster relief and election duty.
    3. Kerala Education Act, 1958 and the Kerala Education Rules, 1959: Govern government and aided schools in the State, including staff fixation, protection of teachers, and management obligations in aided schools.
    4. National Council for Teacher Education Act, 1993: Establishes the statutory body that regulates teacher education institutions and prescribes minimum qualifications for teachers.
    5. Right of Children to Free and Compulsory Education (Amendment) Act, 2019: Extended the deadline for serving teachers to acquire the prescribed minimum qualifications.
    6. National Education Policy, 2020: Sets the policy framework for school complexes, rationalisation of small schools, foundational literacy and numeracy, and a shift in the school structure to the 5+3+3+4 design.
    7. Kerala Public Service Commission rules: Govern rank list preparation, validity of three years, advice for appointment in rank order and the upper age limit for entry into government service.

    Government Initiatives

    1. Samagra Shiksha: The integrated centrally sponsored scheme for school education from pre-school to Class 12, covering teacher salaries, infrastructure, inclusive education and quality interventions.
    2. NIPUN Bharat Mission: Targets universal foundational literacy and numeracy by the end of Grade 3, with State-level implementation through Samagra Shiksha.
    3. PM SHRI Schools: Upgrades selected existing schools into model schools demonstrating the National Education Policy, 2020 in practice.
    4. PM POSHAN: Provides a hot cooked meal to children in government and government-aided schools from pre-primary to Class 8, which also supports attendance.
    5. Vidyanjali: A school volunteer initiative connecting alumni, professionals and community members to schools for teaching support and asset contribution.
    6. ULLAS Nav Bharat Saaksharta Karyakram: The adult education programme covering foundational literacy, critical life skills and vocational skills for non-literate adults aged 15 and above.
    7. National Programme for Elderly Care: The National Programme for the Health Care of the Elderly and the Atal Vayo Abhyuday Yojana provide geriatric health services and old age support, which are the counterpart of a completed demographic transition.

    Key Facts about Kerala's Demographic Profile

    1. Fertility position: Kerala's total fertility rate is around 1.5, well below the replacement level of 2.1, and among the lowest in the country.
    2. Literacy: Kerala recorded a literacy rate of about 94 per cent in the 2011 Census, the highest among the major States, and was declared India's first fully literate State in 1991.
    3. Sex ratio: Kerala has the highest sex ratio among the major States at 1,084 females per 1,000 males in the 2011 Census.
    4. Ageing: Kerala has the highest share of elderly persons among the major States, with those aged 60 and above forming a substantially larger share than the national average.
    5. Life expectancy: Kerala records the highest life expectancy at birth among Indian States, above 75 years.
    6. Infant mortality: Kerala reports the lowest infant mortality rate in the country, in the mid-single digits per 1,000 live births.
    7. World Population Day: Observed on 11 July each year.
    8. Multidimensional poverty: Kerala records the lowest multidimensional poverty headcount ratio in the country, at around 0.55 per cent.

    Back2Basics: Total Fertility Rate and Replacement Level Fertility

    1. Total fertility rate: The total fertility rate is the average number of children a woman would bear over her lifetime if she experienced the age-specific fertility rates observed in a given year.
    2. Why it differs from the birth rate: Unlike the crude birth rate, the total fertility rate is independent of the population's age structure, so it compares fertility behaviour across populations directly.
    3. Replacement level: Replacement level fertility is the level at which each generation exactly replaces itself, which is why the threshold sits at 2.1 rather than at 2.0.
    4. Why the threshold exceeds two: The additional 0.1 accounts for girls who do not survive to the end of their reproductive years and for the slight excess of male births over female births.
    5. India's position: The National Family Health Survey placed India's total fertility rate at 2.0, below replacement level for the first time.
    6. Data sources: The Sample Registration System of the Registrar General of India and the National Family Health Survey are the two principal sources of fertility estimates for India.
    7. State variation: Southern States and several smaller States record fertility well below replacement level, and a few large northern States remain above it. That gap is the source of interstate demographic divergence.
    8. Momentum: Population continues to grow for decades after fertility falls below replacement, because a large cohort of women is still passing through reproductive age.

    Challenges in Managing a Completed Demographic Transition

    1. Elderly care infrastructure: A rising share of elderly persons needs geriatric health, palliative care and long-term support that the health system was not built for. Eg. Kerala has the highest share of elderly persons among major States and runs one of the country's largest palliative care networks to cope.
    2. Pension and social security coverage: Most workers are outside contributory pension systems, so old age income support falls on State budgets. Eg. State social security pensions are among the largest recurring items in Kerala's revenue expenditure.
    3. Shrinking working-age base: A smaller entering cohort narrows the tax base, and commitments to the elderly rise at the same time. Eg. Kerala's first standard enrolment fell from 2,34,476 to 2,06,706 in a single year.
    4. Labour shortage and in-migration: Sectors dependent on manual labour recruit from other States, which brings its own housing, health and language integration questions. Eg. Kerala hosts a very large interstate migrant workforce in construction, hospitality and fisheries.
    5. Public asset underuse: Schools, anganwadis and child health facilities built for a larger cohort operate below capacity and become fiscally inefficient. Eg. Scores of government teaching posts in Kerala have lapsed for want of students.
    6. Delimitation and representation: Seat allocation based on population penalises States that completed the transition earliest. Eg. Lok Sabha seats have been frozen at 543 on 1971 Census figures, and southern States stand to lose seats in a population-based redistribution.
    7. Out-migration of the young: Educated young people migrate for work, which accelerates ageing at home and makes local recruitment queues longer for those who stay. Eg. Candidates on the Kerala teachers' rank list include one who worked in the United Arab Emirates for 14 years before returning.

    Way Forward

    1. Revise the pupil-teacher ratio: Lower the lower primary ratio from 1:30 so smaller classes are funded rather than left to shed posts, in line with the quality objectives of the National Education Policy, 2020.
    2. Consolidate through school complexes: Group low-strength schools into school complexes sharing teachers and specialist subjects, so access is retained without maintaining unviable standalone posts.
    3. Extend rank list validity where the state causes the delay: Provide statutory extension of a rank list, and relaxation of the upper age limit, where non-appointment results from a failure to report vacancies.
    4. Align teacher training capacity: Regulate intake into teacher training courses against projected cohort size, so training output does not exceed sanctioned posts by an order of magnitude.
    5. Enforce prohibition of capitation in aided schools: Prosecute the sale of aided school teaching posts, since Rs 30 lakh to Rs 40 lakh demands convert a public post into a purchased one.
    6. Redeploy surplus teachers to new roles: Absorb protected and surplus teachers into pre-primary education, special education, remedial instruction and adult literacy under ULLAS, rather than treating them as excess.
    7. Plan for ageing alongside schooling: Convert underused school and anganwadi infrastructure into day care and geriatric service centres, matching the asset base to the new age structure.

    Matching Previous Year Question

    “[2024, GS1, 10] What is the concept of a 'demographic winter'? Is the world moving towards such a situation? Elaborate.”

  • UGC equity rules being reconsidered: Centre to SC

    Why in the News

    The Centre told the Supreme Court on 20 August 2026 that it is reconsidering the University Grants Commission regulations framed to prevent caste discrimination in higher education institutions. The regulations name the Scheduled Castes, the Scheduled Tribes and the Other Backward Classes as the protected groups, and that naming is what general category petitioners have challenged as exclusion.

    What are the UGC (Promotion of Equity in Higher Education Institutions) Regulations, 2026?

    1. What they do: The University Grants Commission (UGC) (Promotion of Equity in Higher Education Institutions) Regulations, 2026 impose a compliance framework on higher education institutions to prevent and redress discrimination against students and faculty.
    2. Notification and stay: They were notified on 13 January 2026 and stayed by the Supreme Court on 29 January 2026, which revived the 2012 framework until further orders.
    3. Two definitions inside them: Regulation 3(1)(c) defines caste based discrimination as discrimination on the basis of caste or tribe against members of the Scheduled Castes, Scheduled Tribes and Other Backward Classes. Clause 3(e) defines discrimination more broadly, covering unfair or differential treatment on the ground of caste against any stakeholder.
    4. Present position: The Centre has told the Court that the regulations are being reconsidered, so they stand stayed and unenforced.

    What is a "separate yet equal" classification?

    1. Separate yet equal: A "separate yet equal" classification permits separate facilities for different groups on the argument that the facilities provided are of equal quality. Constitutional courts treat the act of separation as the injury, since equality of facilities does not cure the stigma of being set apart.

    How far are students currently protected against caste discrimination on campus?

    1. Governing regulations restored: The UGC (Promotion of Equity in Higher Educational Institutions) Regulations, 2012 are back in force, requiring institutions to constitute an Equal Opportunity Cell and to publish an anti discrimination policy.
    2. Criminal protection: The Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989 covers caste based insult, intimidation and social boycott, including inside educational institutions, and is tried by Special Courts. Its 2015 Amendment added new offences and mandated Exclusive Special Courts and time bound trial.
    3. Separate ragging machinery: The UGC (Curbing the Menace of Ragging in Higher Educational Institutions) Regulations, 2009 mandate an Anti Ragging Committee and an Anti Ragging Squad in every institution, alongside an anti ragging affidavit from every student and parent.
    4. Reservation in admission: The Central Educational Institutions (Reservation in Admission) Act, 2006 reserves 15 per cent of seats for the Scheduled Castes, 7.5 per cent for the Scheduled Tribes and 27 per cent for the Other Backward Classes, alongside 10 per cent for the Economically Weaker Sections.
    5. Reservation in teaching posts: The Central Educational Institutions (Reservation in Teachers' Cadre) Act, 2019 restored the institution rather than the department as the unit for computing reservation in faculty recruitment.
    6. No standalone statute: India has no dedicated anti discrimination Act for education, so protection is assembled from regulations, criminal law and reservation statutes.

    Constitutional Provisions Related to Equality and Non-Discrimination

    1. Preamble: Declares equality of status and of opportunity, and fraternity assuring the dignity of the individual.
    2. Article 14: Guarantees equality before the law and the equal protection of the laws to every person.
    3. Article 15(1): Prohibits the State from discriminating against any citizen on grounds of religion, race, caste, sex or place of birth.
    4. Article 15(4): Enables special provisions for socially and educationally backward classes and for the Scheduled Castes and Scheduled Tribes.
    5. Article 15(5): Enables reservation in admission to educational institutions, including private unaided institutions, other than minority institutions.
    6. Article 15(6): Enables reservation of up to 10 per cent of seats for the Economically Weaker Sections.
    7. Article 16(4): Enables reservation in public employment for any backward class not adequately represented in State services.
    8. Article 17: Abolishes untouchability and forbids its practice in any form.
    9. Article 21: Guarantees the right to life and personal liberty, read to include the right to live with dignity.
    10. Article 29(2): Bars denial of admission to a State maintained or State aided educational institution on grounds of religion, race, caste or language.
    11. Article 46: Directs the State to promote the educational and economic interests of the weaker sections, particularly the Scheduled Castes and Scheduled Tribes.
    12. Article 338 and Article 338A: Establish the National Commission for Scheduled Castes and the National Commission for Scheduled Tribes to investigate and monitor constitutional safeguards.

    Why were the 2026 Regulations framed?

    1. Origin in litigation: The regulations stem from a 2019 petition filed in the Supreme Court by the mothers of Payal Tadvi and Rohith Vemula.
    2. The two deaths: Payal Tadvi and Rohith Vemula died by suicide over alleged caste based discrimination in 2019 and 2016 respectively.
    3. Relief sought: The petition asked for enforcement of robust anti discrimination mechanisms across higher education institutions.
    4. Gap in the earlier framework: The 2012 regulations relied on Equal Opportunity Cells without naming caste based discrimination as a distinct wrong.
    5. Regulatory answer: The 2026 regulations responded by carving out caste based discrimination as a separate defined category rather than leaving it inside general discrimination.

    Why did the Supreme Court stay the regulations rather than let them operate?

    1. Sweeping consequences: The bench said the issue raised important questions that, if left unexamined, could have very sweeping consequences and could divide society.
    2. Prima facie ambiguity: The order recorded that on a prima facie consideration some provisions of the impugned regulations suffer from certain ambiguities, and that the possibility of their misuse cannot be ruled out.
    3. Status quo preserved: The Court directed that the 2012 Regulations will continue in force till further orders, so institutions were not left without an equity framework.
    4. Notices issued: Notices were issued to the Centre and to the University Grants Commission, so the challenge proceeds on merits rather than by administrative withdrawal.
    5. Narrow target of challenge: The petitions, filed by Mritunjay Tiwari, Vineet Jindal and Rahul Dewan, primarily challenge Regulation 3(1)(c) and not the regulations as a whole.

    Why has an anti-discrimination rule drawn objections from protected and general categories alike?

    1. General category objection: Naming the Scheduled Castes, Scheduled Tribes and Other Backward Classes in Regulation 3(1)(c) is read as excluding general category students and faculty from specific protection against caste based discrimination.
    2. The broader clause cuts against the narrower: Clause 3(e) already covers unfair or differential treatment on the ground of caste against any stakeholder, so the narrower clause adds a group specific label without adding a group specific remedy.
    3. Dalit and Other Backward Class objection: Sections of Dalit and Other Backward Class opinion oppose the stay and any rollback, since deleting the named categories would dissolve the recognition the regulation created.
    4. Division within the protected groups: Some Dalit opinion opposes bringing the Other Backward Classes under the same protective umbrella, treating caste discrimination against the Scheduled Castes as a distinct harm.
    5. Absent machinery: The regulations create a named category of caste based discrimination without prescribing a distinct complaint, inquiry or penalty procedure for it.

    What questions has the Supreme Court framed for examination?

    1. Nexus of Regulation 3(1)(c): Whether Clause 3(1)(c) bears a reasonable and rational nexus to subserve the object and purpose of the 2026 Regulations, particularly since no distinct or special procedural mechanism has been prescribed to address caste based discrimination as against the exhaustive and inclusive definition of discrimination in Clause 3(e).
    2. Effect on sub classification: Whether introducing the term caste based discrimination has any bearing on the existing constitutional and statutory sub classification of the Most Backward Castes within the Scheduled Castes, Scheduled Tribes and Other Backward Classes, and whether the new rules provide adequate and effective safeguards to such Extremely Backward Castes against discrimination and structural disadvantage.
    3. Segregation and the equality guarantees: Whether including the expression segregation in the context of allocation of hostels, classrooms, mentorship groups or similar academic or residential arrangements, albeit on transparent and non discriminatory criteria, would amount to a separate yet equal classification infringing the guarantees of equality and fraternity under Articles 14 and 15 and the Preamble.
    4. Omission of ragging: Whether omitting the term ragging as a specific form of discrimination is a regressive and exclusionary legislative omission, and whether that omission creates an asymmetry in access to justice for victims of discrimination and so falls foul of Articles 14 and 21.

    Why has the issue become an electoral question in Uttar Pradesh and Bihar?

    1. Upper caste protest: The rules triggered protests among sections of the upper castes, who argued that the explicit reference to the Scheduled Castes, Scheduled Tribes and Other Backward Classes amounted to exclusion of general category students.
    2. Dalit disquiet over rollback: There is concern within the ruling party that the stay and any rollback may cause disquiet among Dalit communities.
    3. Election calendar: Uttar Pradesh Assembly elections are due next year, which places the dispute inside an active campaign in the largest State.
    4. Bypoll reading: One reason attributed within the ruling party for its defeat in the recent Bankipur Assembly bypoll in Bihar was upper caste dissatisfaction over the University Grants Commission issue.
    5. Cost in both directions: Retaining the clause loses general category support and withdrawing it loses Dalit and Other Backward Class support, which is why reconsideration rather than defence is the chosen route.

    Major debates surrounding caste discrimination in higher education

    1. Group specific against universal protection: Whether an anti discrimination rule should name the historically excluded groups, or state a caste neutral prohibition that any student can invoke, is the live legal fault line.
    2. Sub classification within the Scheduled Castes: The Supreme Court's 2024 ruling in State of Punjab v Davinder Singh permitted States to sub classify the Scheduled Castes for reservation, and the debate now extends to whether protection against discrimination can be similarly graded.
    3. Creamy layer for the Scheduled Castes: Judicial opinion is divided on extending the creamy layer exclusion, applied to the Other Backward Classes since Indra Sawhney (1992), to the Scheduled Castes and Scheduled Tribes.
    4. Merit against representation: The framing of open competition as merit and reservation as compensation is contested by the argument that access to coaching, language and schooling already prices the entry test.
    5. Institutional autonomy against central regulation: Whether a central regulator can prescribe internal grievance machinery binding on State and private universities is disputed by State governments.
    6. Empirical gap: Caste wise data on discrimination complaints and on student suicides in higher education institutions is not published in consolidated form, so the scale the dispute turns on is itself contested.

    Challenges to enforcing the UGC Equity Regulations

    1. Grievance machinery controlled by the respondent: Equal Opportunity Cells are constituted by the same administration that a complaint is frequently directed against. Eg. In the Rohith Vemula case, the suspension from the hostel that preceded his death in January 2016 came from the University of Hyderabad's own disciplinary machinery.
    2. Retaliation risk suppresses reporting: A complaint against senior faculty or residents is made inside a hierarchy that controls the complainant's evaluation. Eg. Payal Tadvi's complaint at BYL Nair Hospital in Mumbai in 2019 named senior residents in her own department.
    3. Regulatory reach ends at grant conditionality: University Grants Commission regulations bind institutions that seek its recognition and grants, and enforcement over State universities is weak. Eg. The 2012 regulations required every institution to publish an anti discrimination policy, and publication was never made a condition for release of grants.
    4. A stayed regulation does not operate: A judicial stay leaves the earlier and weaker framework in charge for the entire period of litigation. Eg. The 2026 regulations have been suspended since 29 January 2026, so the 2012 framework they were written to replace still governs every campus.
    5. Faculty representation shortfall: A grievance system staffed almost entirely by unreserved category faculty carries limited confidence among complainants. Eg. Central universities have reported persistent backlogs of unfilled reserved category professor and associate professor posts in successive parliamentary replies.
    6. Definitional contest displaces the remedy: Litigation on who is covered has consumed the entire period in which the compliance machinery was to be built. Eg. Seven months after notification the regulations have produced no Equal Opportunity Cell restructuring, no complaint procedure and no penalty.

    Conclusion

    A regulation written to give caste discrimination a name has become unworkable because targeted protection and formally neutral protection are being demanded of the same clause. The Centre has told the Supreme Court that the University Grants Commission (Promotion of Equity in Higher Education Institutions) Regulations, 2026 are being reconsidered, so the measure stands stayed and the 2012 framework continues in force until further orders. What remains unresolved is the defect the Court itself identified, that the regulations create a distinct category of caste based discrimination without prescribing any distinct procedure to act on it.

    What is Substantive Equality?

    1. About: Substantive equality treats equality as an outcome the law must produce, so it permits differential treatment where identical treatment would preserve entrenched disadvantage.
    2. Rationale: Formal equality applies the same rule to unequally placed persons, which reproduces the existing distribution of advantage; substantive equality asks what the rule does to those on whom the disadvantage already falls.
    3. Redressing disadvantage: The first dimension asks whether a measure removes the material and social disadvantage a group carries, rather than whether it treats everyone alike.
    4. Countering stigma, prejudice and violence: The second dimension asks whether a measure reduces the humiliation, stereotype and hostility attached to group membership.
    5. Enhancing voice and participation: The third dimension asks whether the affected group has a say in the institutions that decide for it, since exclusion from decision making sustains the disadvantage.
    6. Accommodating difference through structural change: The fourth dimension asks whether the institution itself is altered to fit the group, rather than requiring the group to conform to an existing design.

    Key Concerns Regarding Substantive Equality

    1. Ceiling on affirmative action: The 50 per cent limit set in Indra Sawhney (1992) restricts how far redistribution can go, and the 10 per cent Economically Weaker Sections quota upheld in Janhit Abhiyan (2022) breached it for a non caste category.
    2. Benefit capture within the beneficiary group: Reservation gains concentrate among the better placed sections of a reserved category, which is the argument behind creamy layer and sub classification demands.
    3. Absence of enumeration: Caste wise socio economic data has not been published since 1931 in a full Census, so the extent of disadvantage the doctrine seeks to redress is inferred rather than measured.
    4. Reach limited to the public sector: Reservation binds the State and State aided institutions, and the bulk of new employment and higher education capacity has grown in the private sector.
    5. Conflict with efficiency claims: Article 335 requires that claims of the Scheduled Castes and Scheduled Tribes be considered consistently with the maintenance of efficiency of administration, which is repeatedly invoked against extending measures.
    6. Enforcement gap in horizontal relations: Constitutional equality guarantees bind the State, and discrimination between private individuals on a campus or in housing has no general statutory remedy.

    Laws and Rules Governing Anti-Discrimination in Higher Education

    1. University Grants Commission Act, 1956: Establishes the Commission and empowers it to coordinate and determine standards in universities.
    2. Section 26 gives the Commission power to make regulations, which is the source of both the 2012 and the 2026 equity regulations.
    3. Protection of Civil Rights Act, 1955: Penalises the enforcement of any disability arising out of untouchability, including in educational institutions.
    4. Rights of Persons with Disabilities Act, 2016: Section 16 requires educational institutions to provide inclusive education and reasonable accommodation.

    Government Initiatives for Equity in Higher Education

    1. Post Matric Scholarship for Scheduled Caste students: Meets tuition and maintenance costs of Scheduled Caste students pursuing post matriculation courses, targeted at students below a stated family income ceiling.
    2. National Fellowship for Scheduled Caste and Scheduled Tribe students: Funds Master of Philosophy and Doctor of Philosophy research by students of these categories in recognised universities.
    3. PM Young Achievers Scholarship Award Scheme for Vibrant India (PM YASASVI): Supports school and higher secondary education of Other Backward Class, Economically Backward Class and De notified Tribe students, feeding the higher education pipeline.
    4. National Overseas Scholarship: Funds postgraduate and doctoral study abroad for Scheduled Caste, De notified Tribe, landless agricultural labourer and traditional artisan category students.
    5. Dr Ambedkar Centres of Excellence: Provide free civil services examination coaching to Scheduled Caste students in selected universities.
    6. Remedial Coaching and Equal Opportunity Cells: University Grants Commission supported cells run bridge and remedial courses for students from reserved categories in colleges and universities.

    Challenges in Ensuring Equity in Higher Education

    1. Enrolment gap by category: Gross Enrolment Ratio in higher education remains below the national average for the Scheduled Tribes and Scheduled Castes. Eg. The All India Survey on Higher Education for 2021-22 recorded an overall Gross Enrolment Ratio of 28.4 per cent, against 25.9 per cent for the Scheduled Castes and 21.2 per cent for the Scheduled Tribes.
    2. Language of instruction: Professional and postgraduate programmes are taught almost entirely in English, which disadvantages students from State board schooling in regional languages. Eg. Engineering and medical curricula translated into Indian languages under the National Education Policy, 2020 cover a small share of programmes and enrolment.
    3. Financial barriers and delayed disbursal: Scholarship money arrives after fees fall due, forcing students into private borrowing. Eg. Post Matric Scholarship disbursal depends on release of the State share, and delays in that release have stalled payments across academic years.
    4. Residential segregation on campus: Hostel allotment and mess arrangements reproduce caste separation informally even where no rule prescribes it. Eg. The Supreme Court has framed the allocation of hostels, classrooms and mentorship groups as a separate yet equal question in the present case.
    5. Mental health and support systems: Counselling capacity in most institutions is not staffed to the size of the student body, and first generation learners carry the heaviest adjustment burden. Eg. Successive parliamentary replies have recorded student suicides in central institutions, with a disproportionate share from reserved categories.
    6. Growth outside the reservation perimeter: Capacity expansion has been largest in private unaided institutions, where implementation of Article 15(5) reservation is uneven. Eg. The provision was upheld for private unaided institutions in Ashoka Kumar Thakur (2008) and again in Pramati Educational Trust (2014), and compliance is not centrally monitored.

    Back2Basics: University Grants Commission (UGC)

    1. Formation: Set up in 1953 and given statutory status by the University Grants Commission Act, 1956, which came into force on 3 November 1956.
    2. Parent ministry: Functions under the Ministry of Education, with its headquarters in New Delhi and six regional offices.
    3. Constitutional basis: Draws from Article 246 read with Entry 66 of the Union List, which covers coordination and determination of standards in institutions for higher education.
    4. Composition: Consists of a Chairman, a Vice Chairman and ten members appointed by the Central Government.
    5. Mandate: Coordinates and determines standards in universities, disburses grants, frames regulations and advises the Union and State governments on higher education.
    6. Recognition function: Recognises institutions under Sections 2(f) and 12(B) of the Act, which determines their eligibility for central grants.
    7. Proposed replacement: A Higher Education Commission of India has been proposed to subsume its regulatory functions, with grant disbursal moved to a separate body.

    Way Forward

    1. Prescribe a distinct procedure: Attach a dedicated complaint, inquiry and penalty procedure to caste based discrimination, since the absence of one is the core defect the Court has framed.
    2. Independent grievance forum: Place the inquiry authority outside the institution's own administration, with an external member drawn from a Scheduled Caste or Scheduled Tribe commission panel.
    3. Keep the broad clause as the residual protection: Retain the wide definition in Clause 3(e) as the universal guarantee, so no category of student is left without a remedy. The group specific recognition created by Regulation 3(1)(c) is retained alongside it.
    4. Make compliance a grant condition: Tie release of central grants and continuation of Section 12(B) status to the constitution and reporting of a functioning equity mechanism.
    5. Publish disaggregated data: Require every institution to report complaints, outcomes, dropouts and student deaths by category in an annual public return.
    6. Fill reserved faculty posts in mission mode: Run a time bound special recruitment drive for the backlog of reserved category teaching posts, since representation among decision makers is what makes a grievance forum credible.

    Matching Previous Year Question

    “[2018, GS2, 10] Whether National Commission for Scheduled Castes (NCSC) can enforce the implementation of constitutional reservation for the Scheduled Castes in the religious minority institutions? Examine.”

  • Centre’s fiscal outlook faces geopolitical, revenue risks

    Question (2025, GS2): “Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?”
    Linkage: The Centre’s reliance on new cesses and duties to meet its budget goals, rather than expanding the core tax base itself, directly impacts fiscal federalism. Cesses and surcharges do not go into the divisible pool shared with states, altering Centre-State financial dynamics.

    Mentor comment

    Controller General of Accounts data show the Centre’s gross tax revenues growing only 3.7% in the first quarter of 2026-27, with Goods and Services Tax collections contracting and Union excise duties falling more than a fifth. The fiscal arithmetic is being held near its budgeted position by a larger nominal Gross Domestic Product denominator, by non-tax receipts led by the Reserve Bank of India dividend, and by new cesses and duties, rather than by the tax base itself.

    What is the divisible pool of central taxes?

    1. About: The divisible pool is that part of the Centre’s gross tax revenue which is shared with the States, arrived at after deducting collection costs, cesses and surcharges.
    2. The States’ share: The Sixteenth Finance Commission retained the share of States in the divisible pool of central taxes at 41%.
    3. From gross to net: The Centre’s net tax revenue is what remains after devolution, and a factor of 65% of gross tax revenue reflects the ratio of net to gross tax revenues in 2025-26 and in the 2026-27 Budget Estimates.
    4. Why cesses matter to it: A cess levied for a specified purpose sits outside the divisible pool, so the same rupee raised through a cess rather than a tax does not reach the States as devolution.

    What is tax buoyancy?

    1. About: Tax buoyancy measures how far tax revenue grows for each unit of growth in nominal Gross Domestic Product, capturing both the natural response of the tax base and the effect of policy changes.
    2. What zero buoyancy means: Personal income tax revenue growth in 2025-26 was only 0.037%, which implies a buoyancy of zero, so the tax raised nothing extra despite the economy expanding.

    What is the Implicit Price Deflator?

    1. About: The Implicit Price Deflator is the ratio of nominal to real Gross Domestic Product, and it captures the average price change across everything the economy produces rather than a fixed consumption basket.
    2. How it is used here: An Implicit Price Deflator based inflation of 5% to 5.5% is what converts an expected real growth of about 7% into nominal Gross Domestic Product growth of 12.5% to 13% in 2026-27.

    What is a cess?

    1. About: A cess is a levy imposed for a specified purpose, collected over and above the base tax, and its proceeds are meant to be applied only to that stated purpose.
    2. Its fiscal effect: Cess proceeds are not shareable with the States, so a shift from taxes to cesses reduces the shareable pool while leaving gross collections unchanged.

    Why did the Centre’s gross tax revenues grow only 3.7%?

    1. Two large taxes were rationalised: Personal income tax and Goods and Services Tax were both subjected to substantive modifications in 2025-26, with extensive rate rationalisation in both cases and a substantive rate reduction in the case of the Goods and Services Tax.
    2. The stated expectation: Those reforms were expected to entail an initial revenue sacrifice, with subsequent expansion of the tax base offsetting the loss over time.
    3. The carry-forward into this year: Personal income tax showed growth of 6.8% in the first quarter of 2026-27, and Goods and Services Tax revenues contracted 11%.
    4. The 2025-26 baseline: Goods and Services Tax revenue growth for the second half of 2025-26 was 4.67%, and personal income tax growth over the same year was effectively nil.
    5. The excise duty cut: As retail fuel prices rose on the West Asian crisis, the government reduced excise duties to ease the burden on consumers, and revenue from Union excise duties contracted 22.4% in the first quarter of 2026-27.

    What three remedial measures has the government taken?

    1. A new cess replacing a discontinued one: A Health Security and National Security Cess was introduced with effect from 1 February 2026, even as the Goods and Services Tax Compensation Cess was discontinued.
    2. A higher windfall tax on fuel exports: The windfall tax on exports of diesel, petrol and aviation turbine fuel was increased with effect from 3 August 2026.
    3. Higher import duties on precious metals: Import duty rates were raised on gold and silver bullion and on other specific precious metal articles, sweepings and clad metals.

    How does a higher nominal GDP change the fiscal picture?

    1. The budgeted assumption is being exceeded: The Budget assumed nominal Gross Domestic Product growth of 10.04%, well short of the growth now expected for the year.
    2. The consistency check: That deflator range is consistent with Consumer Price Index inflation at 3.9% and Wholesale Price Index inflation at 9.3% in the first quarter of 2026-27.
    3. The level, not the growth rate, is lower: On the 2022-23 base series, nominal Gross Domestic Product is estimated at Rs 391 lakh crore, below the budgeted level of Rs 393 lakh crore.
    4. The net effect on revenue: Taken together, estimated gross tax revenue would be realised or fall short by a small margin.

    What has happened to transfers to the States?

    1. A sharp contraction in the first quarter: Tax devolution to the States contracted 19.5% in the first quarter of 2026-27, with an expectation of higher assignment of central tax revenues in subsequent months.
    2. The shareable pool narrows at the margin: The introduction of the non-shareable Health Security and National Security Cess produces a marginal reduction in the shareable pool, though some part of its revenues may reach the States as grants outside the Finance Commission route.
    3. Finance Commission grants are budgeted lower: Based on the Sixteenth Finance Commission’s recommendation, Finance Commission grants for the States are budgeted to contract by Rs 23,556 crore in 2026-27.
    4. The devolution share itself is unchanged: The contraction is in the amounts flowing, not in the entitlement, since the States’ share in the divisible pool stays at 41%.

    What is holding the revenue account together?

    1. The central bank dividend: The Reserve Bank of India transferred dividends to the Centre in May 2026, so 77% of the budgeted dividends and profits for the full year were already covered in the first three months.
    2. Weight of non-tax revenue: The Centre’s non-tax revenues contributed 37% of its net revenue receipts in the first quarter of 2026-27.
    3. Other receipts on track: The budgeted amounts for non-tax and non-debt capital receipts are expected to be realised.
    4. Subsidy pressure on the other side: Major subsidies had to be increased 37.4% in the quarter because of the unexpected rise in global crude oil prices.
    5. Revenue expenditure held down: Growth in revenue expenditure was contained at 7.4% over the same quarter.
    6. Capital expenditure front-loaded: Capital expenditure grew 23.7% in the first quarter of 2026-27, against a contraction of 23.3% in the fourth quarter of 2025-26.
    7. The full-year subsidy overshoot: Extrapolating first-quarter subsidies to the year, realised subsidies are expected to exceed the budgeted amount by about Rs 50,000 crore.

    Where do the deficit numbers stand, and what could push them off track?

    1. First-quarter deficit position: The fiscal deficit accounted for 18.2% of the annual budgeted magnitude in the first quarter, and the corresponding share of the revenue deficit was 0.4%.
    2. Why the revenue account looks strong: The revenue account balance is held up mainly by the contribution of non-debt receipts, not by tax collections.
    3. The full-year estimates: Fiscal deficit calculated as the increment in debt is estimated at Rs 18.16 lakh crore, giving a fiscal deficit-to-Gross Domestic Product ratio of 4.6% on the new series, with the debt-to-Gross Domestic Product ratio at 55.8%.
    4. Three named slippage risks: A shortfall in tax revenues, an unbudgeted increase in revenue expenditure arising from additional subsidies, and a slightly higher external debt amid sustained pressure on the Indian rupee.
    5. The overriding risk: An escalation of the war in West Asia would deliver a major jolt to the economy and to central finances.
    6. The unwound measure: The reduction in excise duty on fuel must be restored at some suitable time, since it is a temporary relief carried at a permanent revenue cost.

    What challenges does the Centre’s fiscal consolidation path face?

    1. Rate rationalisation without base expansion: A tax cut delivers the revenue sacrifice immediately and the base expansion only over an uncertain horizon. Eg. Personal income tax delivered a buoyancy of zero in 2025-26, the year its rationalisation took effect.
    2. Subsidy exposure to imported energy prices: Subsidy outgo is set by global crude prices rather than by a domestic policy decision. Eg. Major subsidies rose 37.4% in the first quarter of 2026-27, putting the full year on course to overshoot its budgeted provision.
    3. Reliance on a single large non-tax transfer: A dividend from the central bank is a discretionary, year-specific receipt that cannot be assumed to repeat. Eg. 77% of the full year’s budgeted dividends and profits were covered in the first three months of 2026-27.
    4. Revenue relief that is politically hard to withdraw: An excise duty cut given when fuel prices rise is difficult to reverse when they fall. Eg. Union excise duties contracted 22.4% in the first quarter of 2026-27 following the cut.
    5. Deficit ratios improved by a denominator effect: A higher nominal Gross Domestic Product lowers the deficit ratio without any change in borrowing. Eg. Nominal growth running ahead of the budgeted 10.04% flatters the 4.6% fiscal deficit ratio.
    6. Interest burden crowding out capital spending: A debt-to-Gross Domestic Product ratio near 56% commits a large share of revenue receipts to interest before any programme is funded. Eg. Capital expenditure was front-loaded 23.7% in the first quarter after contracting 23.3% in the preceding quarter, a pattern that shifts rather than raises the annual total.
    7. Exchange rate pressure raising external liabilities: A weaker rupee raises the rupee cost of external debt service without any new borrowing. Eg. Sustained pressure on the rupee is named as one of the three sources of possible slippage from budgeted outcomes.

    Conclusion

    The Centre’s 2026-27 outcomes are likely to stay close to budgeted levels, and the reasons are a larger nominal Gross Domestic Product, front-loaded non-tax receipts and three new revenue measures, not a tax base that is delivering. Gross tax revenue growing at barely a third of the pace of nominal output is the number that has to change, since the rate rationalisations of 2025-26 were justified on the promise of base expansion that has not yet appeared. The immediate unresolved decisions are when the excise duty cut on fuel is restored and how far an escalation in West Asia pushes subsidies beyond the overshoot already projected.

    What is Fiscal Federalism?

    1. About: Fiscal federalism is the division of taxation powers, expenditure responsibilities and transfer arrangements between the Union and the States in a federal system.
    2. Rationale: Revenue-raising powers concentrate at the Centre because major tax bases are mobile, while expenditure responsibilities concentrate at the States because services are delivered locally. Transfers exist to close that gap.
    3. Vertical fiscal imbalance: The mismatch between the Union’s revenue capacity and the States’ expenditure responsibilities, addressed through devolution of a share of central taxes.
    4. Horizontal fiscal imbalance: The mismatch across States in revenue capacity and expenditure need, addressed through the Finance Commission’s distribution formula among States.
    5. Third tier imbalance: The mismatch between the functions devolved to panchayats and municipalities and the revenue sources available to them, addressed through State Finance Commissions and grants.
    6. The transfer instruments: Tax devolution from the divisible pool, Finance Commission grants, and centrally sponsored schemes with a matching State contribution.

    Key Concerns Regarding Fiscal Federalism

    1. Shrinking divisible pool through cesses and surcharges: Levies outside the divisible pool raise Union revenue without expanding what is shared, so the effective transfer falls below the headline share.
    2. Erosion of State taxation autonomy under the Goods and Services Tax: States surrendered independent rate-setting on most indirect taxes, and rate decisions now require a collective decision in a council.
    3. Weak third tier finances: Local bodies depend on transfers rather than own revenue, and State Finance Commissions are constituted irregularly in several States.
    4. Contested horizontal distribution criteria: Weighting population, income distance and demographic performance sets States that have controlled population growth against those with larger populations.
    5. Conditionality attached to central transfers: Centrally sponsored schemes tie State spending to Union priorities, reducing the discretion that devolution is meant to confer.
    6. Off-budget and contingent liabilities: Borrowing routed through State-owned entities and guarantees sits outside the headline deficit at both levels, obscuring the true fiscal position.

    Constitutional Framework Governing Union Finances

    1. Article 265: No tax shall be levied or collected except by authority of law.
    2. Article 266: Establishes the Consolidated Fund and the Public Account of India and of each State.
    3. Article 267: Provides for the Contingency Fund of India, placed at the disposal of the President for unforeseen expenditure.
    4. Article 112: Requires the annual financial statement of estimated receipts and expenditure to be laid before Parliament.
    5. Article 246 and the Seventh Schedule: Distribute legislative and taxation powers between the Union and the States through the Union, State and Concurrent Lists.
    6. Article 246A: Confers concurrent power on Parliament and State legislatures to make laws on the Goods and Services Tax.
    7. Article 269A: Provides for the levy and collection of the Goods and Services Tax on inter-State supply and its apportionment between the Union and the States.
    8. Article 270: Provides for the distribution of taxes levied and collected by the Union between the Union and the States, and excludes cesses and surcharges from that distribution.
    9. Article 271: Empowers Parliament to levy a surcharge on specified taxes for the purposes of the Union, the proceeds of which accrue wholly to the Union.
    10. Article 275: Provides for grants-in-aid from the Union to States in need of assistance.
    11. Article 279A: Provides for the constitution of the Goods and Services Tax Council.
    12. Article 280: Provides for the constitution of a Finance Commission every fifth year to recommend the distribution of taxes and the principles governing grants-in-aid.
    13. Article 282: Permits the Union or a State to make any grant for any public purpose, the provision under which centrally sponsored schemes are funded.
    14. Article 292 and Article 293: Govern borrowing by the Union and by the States, with State borrowing subject to Union consent where the State is indebted to the Union.
    15. Article 360: Provides for a proclamation of financial emergency.

    Laws Governing Government Budgeting in India

    1. Fiscal Responsibility and Budget Management Act, 2003: Requires the Centre to limit the fiscal deficit and to lay medium-term fiscal policy statements before Parliament.
    2. Amended in 2018 to shift the primary anchor from the revenue deficit to a debt-to-Gross Domestic Product target, with an escape clause for specified circumstances.
    3. Fiscal Responsibility and Budget Management Rules, 2004: Prescribe the form of the disclosure statements and the quarterly review requirement.
    4. Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971: Provides the basis for audit of Union and State accounts and for the reports laid before the legislatures.
    5. State fiscal responsibility legislation: Every State has enacted its own fiscal responsibility law setting deficit and debt limits, complementing the Union statute.
    6. Appropriation and Finance Acts: The Appropriation Act authorises withdrawal from the Consolidated Fund, and the Finance Act gives effect to the taxation proposals for the year.

    Government Initiatives in Public Financial Management

    1. Public Financial Management System: An end-to-end platform tracking fund release and utilisation from the Union to the last implementing agency, reducing float in the system.
    2. Direct Benefit Transfer: Routes subsidy and benefit payments to bank accounts directly, cutting duplication and leakage in the transfer chain.
    3. Single Nodal Agency mechanism: Requires each centrally sponsored scheme in a State to operate through one designated account, so unspent balances are visible.
    4. Special Assistance to States for Capital Investment: Provides fifty-year interest free loans to States tied to capital expenditure and to specified reforms.
    5. National Monetisation Pipeline: Raises resources by leasing operating public assets while retaining ownership, supplementing tax revenue for capital spending.
    6. Goods and Services Tax Network: The common technology platform for registration, return filing and invoice matching that generates the data underlying indirect tax collections.

    Back2Basics: Sixteenth Finance Commission

    1. What it is: A constitutional body constituted under Article 280 to recommend the distribution of net tax proceeds between the Union and the States, the allocation among States, and the principles governing grants-in-aid.
    2. Constitution: Constituted in December 2023, chaired by a former Vice Chairman of NITI Aayog.
    3. Award period: Its recommendations cover the five years beginning 2026-27.
    4. Advisory Council: The Commission is assisted by an Advisory Council of economists and public finance specialists.
    5. Status of recommendations: Its report is laid before Parliament along with an explanatory memorandum on the action taken, and the recommendations are advisory rather than binding.
    6. Additional terms of reference: Beyond devolution, the Commission examines disaster management financing and the review of State fiscal positions.

    Challenges in India’s Public Finances

    1. A low tax-to-Gross Domestic Product ratio: India’s combined tax collection relative to output remains below that of comparable middle-income economies, which caps what can be spent without borrowing. Eg. Gross tax revenue in the first quarter of 2026-27 grew at less than a third of the nominal output growth expected for the year.
    2. Narrow direct tax base: A small share of the population files and pays income tax, so any rate change transmits through a thin base. Eg. Personal income tax raised no more in 2025-26 than in the year before, despite nominal output expanding through that year.
    3. Rigidity of committed expenditure: Interest, salaries, pensions and statutory transfers consume most revenue receipts before discretionary spending begins. Eg. The debt-to-Gross Domestic Product ratio is estimated at 55.8% for 2026-27.
    4. Exposure to imported commodity prices: Fuel and fertiliser subsidies move with global prices rather than with domestic policy. Eg. Major subsidies rose 37.4% in the first quarter of 2026-27 on the unexpected rise in global crude oil prices.
    5. Volatility of non-tax receipts: Dividends, disinvestment proceeds and spectrum receipts are lumpy and cannot be relied on across years. Eg. Non-tax revenues contributed 37% of net revenue receipts in the first quarter of 2026-27.
    6. State-level fiscal stress and guarantees: Contingent liabilities from State-owned distribution companies and guaranteed borrowings sit outside headline deficits. Eg. Tax devolution to the States contracted 19.5% in the first quarter, tightening State cash positions in the same period.
    7. Weak link between capital spending and outcomes: Front-loading capital expenditure raises the quarterly number without ensuring project completion. Eg. Capital expenditure grew 23.7% in the first quarter of 2026-27 after contracting 23.3% in the preceding quarter.

    Way Forward

    1. Restore the excise duty on fuel on a stated schedule: Announcing the timing in advance converts a politically difficult reversal into a pre-committed step, as the analysis itself recommends.
    2. Publish base expansion metrics alongside rate rationalisation: Reporting the change in the number of filers and in registered taxpayers would test the premise on which the 2025-26 rationalisation was justified.
    3. Cap the share of revenue raised through cesses and surcharges: A ceiling would stop the divisible pool narrowing through instruments that bypass Article 270.
    4. Insulate subsidy budgeting from a single price assumption: Building a price band and a contingency provision into the subsidy estimate would prevent an overshoot of this size appearing mid-year.
    5. Treat central bank dividends as a windfall, not a base receipt: Directing above-trend transfers to debt reduction rather than to recurring expenditure would stop a one-off receipt becoming a structural assumption.
    6. Smooth capital expenditure across quarters: Front-loading followed by contraction disrupts contractor payment cycles and project execution, so a steady release profile serves outcomes better than a strong first quarter.
    7. Bring off-budget and guaranteed borrowing into the disclosure statements: Consolidated reporting at both Union and State levels is the precondition for the debt path to mean what it states.

    “[2019, GS3, 10] The public expenditure management is a challenge to the Government of India in context of budget making during the post liberalization period. Clarify it.”

  • CRPF forms core group to review self-harm cases after a spate of suicides

    Why in the News

    The Central Reserve Police Force (CRPF) has constituted a high level core group to conduct monthly reviews of self harm cases among its personnel. Deaths by suicide in the force touched a five year high of 59 in 2025, which moves the response from unit level handling of individual incidents to a standing headquarters mechanism.

    What is the Central Reserve Police Force?

    1. Mandate: The Central Reserve Police Force is the Union’s principal internal security force, deployed on requisition to States for counter insurgency, anti Left Wing Extremism operations, law and order duty and election security.
    2. Command: It functions under the Ministry of Home Affairs and is headed by a Director General, with operations organised through executive battalions and specialised wings.
    3. Scale: It is the largest of the Central Armed Police Forces, with a sanctioned strength above three lakh personnel spread across every State and Union Territory.

    What do the suicide figures in the force since 2021 show?

    1. Five year peak in 2025: Fifty nine CRPF personnel died by suicide in 2025, the highest figure in the five year series and the trigger for the present review mechanism.
    2. The full series: The force recorded 57 such deaths in 2021, 43 in 2022, 57 in 2023, 46 in 2024 and 59 in 2025.
    3. The current year: Nineteen such deaths were reported till 30 May 2026.
    4. No downward trend: The numbers oscillate within a narrow band rather than falling, which indicates that existing unit level welfare measures have not shifted the underlying pattern.
    5. Deaths on duty: The figures from 2021 to May 2026 show that several of these deaths took place while the personnel were on duty, not while on leave or at home.

    Why has a headquarters level core group been created rather than leaving reviews to individual units?

    1. A structured mechanism: Senior officers at a meeting in the CRPF headquarters earlier this month identified the absence of a structured mechanism to examine such incidents as the gap to be closed.
    2. Recurring risk factors: A unit examining a single death cannot detect a factor that repeats across battalions, so pattern identification requires a body sitting above the unit.
    3. Command level ownership: The core group is headed by the Director General of the force, which places accountability for prevention at the apex of the command chain rather than with the battalion commandant.
    4. Fixed periodicity: The group is to meet every month, converting review from an event triggered by a death into a standing calendar obligation.
    5. Four review heads: Each monthly meeting is to cover the self harm incidents reported, the causes and circumstances behind them, the availability and use of welfare or psychological support, and the preventive steps taken by the unit concerned.

    What drives self harm among central armed police force personnel?

    1. Prolonged separation from family: Personnel serve long tenures in field formations away from their home States, with leave frequently curtailed during active operations.
    2. Operational stress in insurgency theatres: Extended deployment in Left Wing Extremism affected districts and in Jammu and Kashmir combines physical risk with an absence of privacy and rest.
    3. Domestic and financial distress: Land disputes, family illness and debt at the home station cannot be attended to from a field posting, and the inability to act is itself a stressor.
    4. Grievance and leave denial: Perceived unfairness in leave sanction, posting and promotion converts an administrative decision into a personal grievance with no accessible appeal.
    5. Stigma around psychological help: Seeking counselling is read within the force as an admission of unfitness for armed duty, which suppresses the demand for the support that does exist.

    What does the National Human Rights Commission’s intervention add to the response?

    1. External scrutiny: The National Human Rights Commission took note of the rising figures last week and sought reports from the Ministry of Home Affairs and the Director General of the force.
    2. Reframing the issue as a rights question: The Commission’s entry treats deaths in service as a question of the State’s obligation to its own personnel rather than as an internal personnel matter.
    3. A reporting obligation: A requisition from the Commission compels a written response from both the administrative ministry and the force, creating a record that survives changes in command.
    4. Timing: The core group’s formation and the Commission’s notice fall in the same month, so the force’s internal mechanism now operates under an external deadline.

    Challenges to the CRPF’s self harm prevention mechanism

    1. A review body without a treatment capacity: A monthly review can classify causes but cannot supply the clinical care the classification points to, and psychiatrist and counsellor strength in the central armed police forces remains far below the deployed strength. Eg. Composite hospitals of the central armed police forces routinely operate with a single mental health specialist serving several battalions spread across districts.
    2. Under reporting of distress: Personnel avoid recording psychological symptoms because a medical entry can affect weapon issue, posting and promotion prospects. Eg. Screening drives in armed forces and central police organisations consistently record self reported distress far below the levels found in anonymous surveys of the same units.
    3. Housing and family accommodation deficit: Family accommodation available to central armed police force personnel falls well short of the authorised requirement, which keeps families separated even at peace stations. Eg. The Parliamentary Standing Committee on Home Affairs has repeatedly recorded a housing satisfaction ratio below half the sanctioned entitlement across the central armed police forces.
    4. Leave and rotation practice: Announced entitlements are overridden by operational exigency in the very theatres where the stress is highest. Eg. The force’s initiative to give personnel around 100 days with their families each year has proved hardest to implement in the Left Wing Extremism theatre where deployment density is greatest.
    5. Weapon access at the point of crisis: Personnel on duty carry service weapons continuously, which removes the interval between intent and act that prevention depends on. Eg. Several of the deaths recorded between 2021 and May 2026 occurred while the personnel were on duty, when the service weapon was in hand.
    6. Fratricide and grievance escalation: Unresolved interpersonal grievance within a small deployed unit escalates into violence against colleagues as well as self harm. Eg. Fratricide incidents in central armed police force camps have prompted the Bureau of Police Research and Development to study stress and grievance handling in deployed units.

    Conclusion

    The Central Reserve Police Force has moved suicide prevention from ad hoc unit level handling to a monthly review chaired by its Director General, after 2025 recorded the highest figure in five years. The immediate status is that the core group stands constituted and the National Human Rights Commission has sought reports from the Ministry of Home Affairs and the force. The next expected step is the submission of those reports and the first monthly review sitting of the core group.

  • Union Cabinet clears HC bench for Ladakh

    Why in the News

    The Union Cabinet has decided to establish a bench of the Jammu and Kashmir High Court in Ladakh, aimed at improving access to justice in the Union Territory. The decision answers a long-standing demand on judicial access at a point when the agitation in Ladakh is pressing a different set of demands on statehood, Sixth Schedule protection and an empowered legislature.

    What is a High Court bench?

    1. About: A High Court bench is a permanent sitting of a High Court at a place other than its principal seat, where judges hear cases arising from a defined territory.
    2. Purpose: A bench reduces the distance and cost of approaching the higher judiciary for litigants living far from the principal seat, without creating a separate High Court.
    3. How it is established: The place of the principal seat and of any other place of sitting is fixed by the President by notification, and the establishment of a bench ordinarily follows a proposal from the State or Union Territory government with the concurrence of the High Court’s Chief Justice and the Union Law Ministry.
    4. The court concerned: The Jammu and Kashmir High Court, renamed the High Court of Jammu and Kashmir and Ladakh, is the common High Court for the Union Territory of Jammu and Kashmir and the Union Territory of Ladakh under the Jammu and Kashmir Reorganisation Act, 2019.

    What is the Leh Apex Body?

    1. About: The Leh Apex Body is the umbrella platform of political, religious and social organisations from Leh district, formed to press Ladakh’s demands for constitutional safeguards.
    2. Role: It leads the Ladakh agitation jointly with the Kargil Democratic Alliance and negotiates with the Ministry of Home Affairs.

    What is the Kargil Democratic Alliance?

    1. About: The Kargil Democratic Alliance is the corresponding umbrella platform of political, religious and social organisations from Kargil district.
    2. Role: It negotiates alongside the Leh Apex Body, so the two districts present a single set of demands to the Centre.

    What does the decision do?

    1. The decision: The Union Cabinet decided to establish a bench of the Jammu and Kashmir High Court in Ladakh, announced by the Union Home Minister on 20 August 2026.
    2. Stated effect: The bench will enhance access to justice for citizens living in remote areas of Ladakh by reducing the time required to avail the legal services they are entitled to.
    3. Framing by the Centre: The announcement reaffirmed the Centre’s commitment to ensuring constitutional safeguards and the all-round development of the region.
    4. Response from the Union Territory: The Lieutenant Governor of Ladakh welcomed it as a historic decision and said it would ensure speedy justice and reaffirm commitment to the region’s development.
    5. The demand it answers: Officials said the bench is expected to address a long-standing demand for easier and faster access to the higher judiciary for people in Ladakh.

    Does a High Court bench answer what the Ladakh agitation is asking for?

    1. What the agitation seeks: Local stakeholders are seeking stronger safeguards in four areas: land, employment, culture and political representation.
    2. The non-negotiable demands: The Leh Apex Body and the Kargil Democratic Alliance submitted a memorandum listing three non-negotiable demands: financial powers for the proposed elected Ladakh Legislative Assembly, a separate Public Service Commission for jobs in the Union Territory, and unconditional withdrawal of all cases against those affected by the violence of 24 September last year.
    3. The gap: A judicial bench addresses the distance to the higher judiciary and does not touch legislative powers, recruitment autonomy or constitutional protection of land and culture.
    4. Why the timing matters: The announcement comes against the backdrop of continuing discussions over the political, administrative and constitutional future of Ladakh.
    5. What the Centre is offering instead: The Centre is exploring a Union Territory level legislative body under certain provisions of Article 371, rather than the Sixth Schedule extension the agitation has demanded.

    What happened in Leh on 24 September last year and what has followed?

    1. The incident: Four persons were killed and at least 50 injured in Leh when a protest demanding statehood and extension of Sixth Schedule protections turned violent and police opened fire on protesters.
    2. Cases registered: About 87 people were booked following the violence, of whom about nine were chargesheeted.
    3. Withdrawal of cases: The Ladakh administration announced that cases against 25 people will be withdrawn, with closure reports to be filed in court in due course.
    4. Further review: The Chief Secretary said the Director General of Police has been directed to review the cases of the remaining persons still under investigation, to identify others who did not have an active role.
    5. Official characterisation: The Chief Secretary termed the incident a blot on the pages of India’s history.
    6. Detention of the activist: Climate activist Sonam Wangchuk, who was on a hunger strike for nearly 35 days in support of Ladakh’s demands, called off his fast, and was booked under the National Security Act, 1980 and lodged in Jodhpur jail for six months.

    What is the Article 371 route being explored?

    1. The proposal: A Union Territory level legislative body is being envisaged for Ladakh under certain provisions of Article 371.
    2. Work in progress: The Ministry of Home Affairs is working with the Law Ministry to prepare a framework for the arrangement.
    3. Questions the framework must settle: The framework has to decide how the body will be elected, what powers it will hold and the shape of the executive.
    4. Next step: The discussions will be taken further in a formal structured meeting of the sub-committee, expected in the first week of September.
    5. The stated horizon: The Chief Secretary said these things will not happen overnight and that a new model will be established for Ladakh.

    Challenges to Ladakh’s Demand for Constitutional Safeguards

    1. Sixth Schedule applicability: The Sixth Schedule as it stands applies to tribal areas in Assam, Meghalaya, Tripura and Mizoram, so extending it to a Union Territory requires a constitutional amendment. Eg. The National Commission for Scheduled Tribes recommended Sixth Schedule inclusion for Ladakh in 2019, and the recommendation has not been acted upon.
    2. Union Territory without a legislature: Ladakh was constituted as a Union Territory without a legislature on 31 October 2019, so all law-making for it rests with Parliament and the administrator. Eg. The Jammu and Kashmir Reorganisation Act, 2019 gave a legislature to the Union Territory of Jammu and Kashmir and none to Ladakh.
    3. Employment and recruitment: Without a separate Public Service Commission, recruitment for Ladakh runs through arrangements that local stakeholders say do not reserve posts for residents. Eg. The demand for a dedicated Ladakh Public Service Commission is one of the three non-negotiable demands submitted to the Chief Secretary.
    4. Land and demographic protection: Absence of domicile-linked land restrictions is the core anxiety behind the safeguards demand. Eg. Leh and Kargil bodies have sought protection of land and culture alongside political representation in every round of talks.
    5. Trust deficit after the firing: Criminal proceedings against protesters continue during the talks, which constrains negotiation. Eg. Of about 87 people booked after the 24 September violence, cases against 25 are being withdrawn and the rest remain under review.
    6. Ecological limits on development: Ladakh is a cold desert with acute water stress, so development promises collide with carrying capacity. Eg. Leh town’s groundwater and spring-fed supply has come under strain from tourism growth and construction.
    7. Continuity of dialogue: Negotiations depend on periodic meetings without a statutory framework or timeline. Eg. The next round of talks with the Ministry of Home Affairs team is scheduled for the following month, with a sub-committee meeting expected in the first week of September.

    Conclusion

    The Union Cabinet has cleared a bench of the Jammu and Kashmir High Court for Ladakh, and the Lieutenant Governor has welcomed it as answering a long-standing demand on judicial access. The demands driving the agitation, statehood, Sixth Schedule protection, financial powers for an elected assembly and a separate Public Service Commission, remain unresolved. The Centre is preparing a framework for a Union Territory level legislative body under provisions of Article 371, with the Ministry of Home Affairs and the Law Ministry deciding its election method, powers and executive structure. The next milestone is a formal structured sub-committee meeting expected in the first week of September, ahead of the next round of talks with the Ministry of Home Affairs team.

    “[2025, GS2, 10] Discuss the nature of Jammu and Kashmir Legislative Assembly after the Jammu and Kashmir Reorganization Act, 2019. Briefly describe the powers and functions of the Assembly of the Union Territory of Jammu and Kashmir.”

  • J&K Census enumerators raise tech concerns

    Why in the News

    A readiness review for the Population Enumeration phase in Doda district recorded that Census enumerators and supervisors in the snow bound areas of Jammu and Kashmir (J&K) hold mobile devices below the configuration the Census application requires. Census 2027 is India’s first digital headcount, and it runs on personal phones owned by school teachers and government employees rather than on equipment the state issues.

    What is the Digital Census 2027?

    1. First digital enumeration: Census 2027 is the first Census in India to be conducted digitally, with field data captured through a mobile application instead of printed schedules.
    2. Field workforce: Enumerators and supervisors are drawn mostly from school teachers and government employees, who record entries on their own handsets.
    3. Device specification: The application requires a minimum of 8 GB of RAM and Android 13 or above on the device used for Population Enumeration.
    4. Phased design: A self enumeration portal opens before field work, after which enumerators conduct door to door visits within a fixed window.

    What is self enumeration?

    1. Self enumeration: Self enumeration lets a household fill its own Census entries on an online portal instead of waiting for an enumerator to visit. The entry is verified later by the field functionary during the enumeration window.

    Why has device configuration become an enumeration problem?

    1. Hardware shifted to the enumerator: The Census application runs on the enumerator’s personal phone, so the capacity to count depends on assets the state neither owns nor issues.
    2. Specification threshold breached: Functionaries in the snow bound areas of Jammu and Kashmir were found holding phones below the 8 GB RAM and Android 13 requirement.
    3. Cost borne privately: The field workforce is composed of school teachers and government employees, so meeting the specification is a private expense rather than a budgeted input.
    4. Terrain compounds the gap: The affected districts are enumerated ahead of the rest of the country, which leaves the least time to replace or upgrade equipment.
    5. Resolution left open: The review recorded the shortfall for appropriate resolution without naming a procurement or substitution route.

    Why are Ladakh and the snow bound areas enumerated ahead of the rest of the country?

    1. Second phase advanced: The second phase of the Census in Ladakh and the snow bound areas of Jammu and Kashmir, Uttarakhand and Himachal Pradesh is being conducted ahead of the rest of the country.
    2. Weather window: Snowfall closes road access to these habitations, so the field round has to be completed before winter sets in.
    3. Self enumeration first: The self enumeration portal for these regions remains available from 17 August to 31 August.
    4. Field window: Door to door enumeration starts on 1 September and concludes by 30 September 2026.
    5. District level review: Doda district’s readiness for that window was reviewed at the Deputy Commissioner’s Office Complex under the Chief Principal Census Officer.

    How is the exercise being prepared for hard to count populations?

    1. Migratory populations: Special attention was directed to the enumeration of migratory populations, whose movement across the enumeration window produces both omission and double counting.
    2. Tribal communities: Tribal communities were named as a category requiring focused enumeration effort.
    3. Remote forest residents: Residents of remote forest areas were named alongside them, since habitations there fall outside routine administrative contact.
    4. Verification discipline: Enumerators and supervisors were directed to ensure that all entries are properly recorded, verified and cross checked.
    5. Field inspection: Charge officers and supervisors were instructed to conduct regular field inspections and quality checks.
    6. Awareness campaigns: District authorities were asked to intensify awareness campaigns through newspapers, pamphlets, social media and local outreach programmes ahead of enumeration.

    Why is the postponement of the Census in Manipur being demanded?

    1. Deferral sought: The principal Opposition party has sought postponement of the Census exercise in Manipur, citing continuing violence and the displacement of thousands of people.
    2. Displacement scale: Nearly 60,000 people have remained homeless since violence in the State began on 3 May 2023, with many still living in relief camps.
    3. Housing stock destroyed: Over 10,000 houses have been destroyed in the State.
    4. House listing defeated: Accurate house listing of thousands of homeless people living in relief camps is not practicable, so the record would capture a household structure that no longer exists.
    5. Postponement, not cancellation: The demand is for deferral until conditions become conducive, and not for cancellation of the exercise in the State.
    6. Raised in Parliament: The Inner Manipur Lok Sabha member said he had raised the matter in Parliament.

    Does a digital Census widen or narrow the count?

    1. Speed against reach: Digital capture shortens the gap between field entry and tabulation, and it makes the count conditional on device capability in the districts hardest to reach.
    2. Uniform standard on an uneven base: A single minimum specification treats a school teacher in Doda and one in a metropolitan district as equally equipped.
    3. Self enumeration favours the connected: An online portal transfers effort to the household, which advantages literate and connected households and leaves the rest dependent on a field visit.
    4. Displacement defeats the frame: A Census counts people at a usual place of residence, and conflict displacement breaks that anchor before any technology is applied.
    5. Errors travel further: A digital schedule locks an entry into a database at the point of capture, so an unverified record propagates instead of being caught at manual tabulation.

    “[2009] Consider the following statements:

    1. Between Census 1951 and Census 2001, the density of the population of India has increased more than three times.

    2. Between Census 1951 and Census 2001, the annual growth rate (exponential) of the population of India has doubled.

    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

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