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  • Bihar decides to drop ‘fail’ from Class 10, 12 marksheets

    Why in the News

    Bihar’s Education Department has decided that Class 10 and 12 marksheets issued by the Bihar School Examination Board will no longer carry the word “fail,” replacing it with “Kaushal ke liye patra” (eligible for skills). The state’s Education Minister announced the change at a review meeting, saying the Board would amend its rules and issue instructions, and that a student’s inability to secure expected marks should not be treated as a reflection of talent. The change follows other recent moves in Bihar’s school system aimed at reducing conventional classroom pressure, including a shorter “no bag day” on Saturdays, and comes as the department also plans special preparatory classes for students appearing for supplementary examinations.

    What is changing on Bihar’s Class 10 and 12 marksheets, and why now?

    1. A terminology change, not a grading change: The word “fail” will be replaced with “Kaushal ke liye patra (eligible for skills)” on marksheets, while the underlying pass criteria and examination structure are unchanged.
    2. Mental health is the stated rationale: The Education Minister said the change is meant to protect student morale, framing a failing mark as a gap in results rather than a judgment on a student’s ability.
    3. Supplementary examination support is being added alongside: The department will run special preparatory classes for a month for students appearing in the Matric supplementary examination, aimed at improving their chances of clearing it.
    4. The change follows a wider set of reforms: Bihar has also introduced a shorter “no bag day” on Saturdays, from 9:30 am to 1 pm instead of 9:30 am to 4 pm, to expose students to theatre, music and other creative activities.

    What does Bihar’s own recent school reform pattern reveal?

    1. Reduced classroom time is a recurring theme: The Saturday “no bag day” order, issued under the Chief Minister’s announcement, cuts formal instruction time in favour of non-academic activity, mirroring the marksheet change’s emphasis on reducing pressure over reducing rigour.
    2. Teacher workload is being reallocated, not reduced: Teachers are now required to spend an additional hour after classroom duties on lesson planning, laboratory management and remedial classes, shifting effort toward preparation and remediation.
    3. The announcement doubled as a Teachers’ Day preview: The same review meeting discussed the September 5 Teachers’ Day function, where one teacher per district will receive a state award, tying the marksheet change to a broader push to recognise and support the teaching workforce.

    Challenges to a terminology-only fix for exam-related student distress

    1. Renaming does not remove the underlying selection pressure: A student who does not clear the exam still cannot progress to the next stage or apply for further study, so the anxiety around the outcome persists even if the label softens. Eg. Kerala and several other states have separately debated “no detention” policies without resolving the same underlying pressure around board exam outcomes. Fix. Pair the marksheet change with post-result counselling support and multiple re-attempt windows so students have a genuine path forward, not only a softer label.
    2. Selective terminology change can obscure rather than address failure rates: Removing the word “fail” without addressing why students underperform risks treating the symptom, language, rather than the cause, such as teaching quality or foundational learning gaps. Eg. Bihar has run remedial classes only for the supplementary examination cohort, not as a standing intervention through the academic year. Fix. Extend structured remedial teaching to the full academic year rather than limiting it to a pre-supplementary exam crash course.

    Conclusion

    Bihar’s decision replaces the word “fail” with a skills-oriented label on its board marksheets, framed as a mental health measure, while leaving the underlying pass-fail structure and supplementary examination process intact. Whether the change eases student distress or merely renames it will depend on whether the state follows through with sustained academic support rather than a one-time terminology.

  • Braving the odds — parents of differently abled children in Kerala

    Why in the News

    A decade after Parliament passed the Rights of Persons with Disabilities Act, 2016, parents of differently abled children in Kerala continue to carry a caregiving burden the law has not eased, according to accounts gathered from families, care home organisers and rehabilitation professionals in Kozhikode. The article documents parents facing career loss, mental health strain, social stigma and, in extreme cases, deaths linked to caregiving despair, alongside gaps between the schemes that exist on paper and their reach on the ground. Officials and caregivers agree institutions and laws exist in adequate number, but say implementation and follow-up are what fail the families the law was meant to protect.

    What burden do parents of differently abled children carry, and how does it change over a lifetime?

    1. Grief is staged, not a single event: A rehabilitation expert identifies denial, anger, an attempt to escape the situation, depression and eventual acceptance as the stages every such parent passes through.
    2. The burden intensifies as the child becomes an adult: Once a child clears Class XII with assistance, parents shift to worrying about adult life, and over 20 cases of parents attempting to kill their adult children or end their own lives were recorded in Kerala in the past year alone.
    3. Mothers carry a disproportionate share: Around 34 percent of parents of girls worry specifically about their daughters’ safety in their absence, and menstrual hygiene management adds to caregiver fatigue and sleeplessness.
    4. Careers and social lives are given up: A survey of 200 parents by a private care home found at least four PhD holders and 30 postgraduates among them unable to pursue careers, most also avoiding social events.

    Why do government schemes for the differently abled fail to reach their intended beneficiaries?

    1. Reach, not availability, is the gap: A care home organiser says India has enough institutions and laws for the differently abled, but existing schemes, such as the pension for differently abled persons, are not tracked for how many eligible people actually receive them.
    2. New schemes launch without evaluating old ones: Projects are announced without follow-up or evaluation of whether earlier schemes worked, according to a care home convener who argues empowering existing schemes matters more than launching new ones.
    3. Departments work in silos: A convener calls for convergence between the Departments of Education, Health and Social Justice, starting with including the real-life problems of the differently abled in the school curriculum rather than only success stories.
    4. A parent-centric policy design has its limits: A Social Justice department official concedes the existing policy framework itself is built around parents, leaving less structured support for the child’s independent adult life.

    What alternatives are families and the government building to reduce dependence on parents?

    1. A parent collective is building independent housing: A group of parents pooled funds to build 25 houses of 800 sq. ft. each at Keezhariyur in Kozhikode, along with vocational training centres, therapy units and a health centre, so children with intellectual disabilities can live even without their parents.
    2. Respite care has been introduced in response to caregiver strain: The Kerala Social Justice department launched three ‘Anpu’ homes in August, letting differently abled persons and their parents stay up to seven days, twice in six months, so caregivers can attend to emergencies or travel.
    3. Existing government facilities remain concentrated in a few centres: Northern Kerala’s government facilities include a Regional Intervention Centre and Autism Centre at Government Medical College Hospital, Kozhikode, and a District Early Intervention Centre at Government General Hospital, Kozhikode, but officials admit other districts lack comparable facilities.
    4. Vocational reskilling is proposed for adult independence: A former Samagra Shiksha Keralam official suggests deploying persons with intellectual disabilities in mechanical jobs after proper training, converting disability into an employable skill rather than treating it only as a welfare category.

    Challenges to disability welfare delivery in Kerala

    1. Care-giving burden has no institutional substitute: Families rely almost entirely on parents, especially mothers, for lifelong care, with no state mechanism assuming that role once parents age or die. Eg. Parents in Kerala report at least 20 cases in a year of attempting to end their own or their child’s life over anxiety about the child’s future without them. Fix. Expand community living models like the Keezhariyur collective through state co-funding, so independent living is not dependent on a single family’s ability to pool resources.
    2. Social stigma persists despite legal protection: Differently abled children are still kept away from social events such as weddings, undermining the dignity and inclusion the 2016 Act guarantees on paper. Eg. Caregivers report attempts to exclude differently abled children from family weddings in Kerala. Fix. Link disability welfare scheme disbursement to periodic community sensitisation drives conducted by the Social Justice department.
    3. Exploitative “magical cure” claims target desperate families: Parents seeking a cure for their child’s condition fall prey to unproven treatments and sell property in the process, delaying appropriate care. Eg. A rehabilitation professor in Thiruvananthapuram reports parents selling property believing false claims of a cure. Fix. Empower District Early Intervention Centres to issue verified treatment pathway certificates that families can use to screen out unproven providers.

    Conclusion

    A decade of the Rights of Persons with Disabilities Act has not closed the gap between the schemes that exist and the support caregivers actually receive, leaving Kerala’s parents of differently abled children to build their own alternatives, from community housing to informal support networks, while government follow-up on existing entitlements remains the piece still missing.

    Back2Basics

    1. Rights of Persons with Disabilities Act, 2016: An Act of Parliament that replaced the earlier 1995 law, recognising 21 categories of disability and mandating equal opportunity, non-discrimination and full participation for persons with disabilities.
    2. Administering ministry: The Act is implemented by the Department of Empowerment of Persons with Disabilities under the Union Ministry of Social Justice and Empowerment.
    3. Core entitlements: It guarantees reservation in government jobs and higher education, free education for children with benchmark disabilities, and accessibility in the built environment, transport and information.
    4. National Trust: A statutory body under the Act’s parent ministry, chaired by the District Collector at the local level, mandated to support persons with autism, cerebral palsy, intellectual disability and multiple disabilities.

    [2026] Which of the following statements with regard to the persons with disabilities in India is/are correct?

    1. The Rights of Persons with Disabilities Act, an Act passed by the Parliament of India in 2018, mandates reservation in education and employment, places a legal duty on Governments to ensure accessibility and non-discrimination.

    2. The Sugamya Bharat Abhiyan focuses on achieving universal accessibility for Persons with Disabilities across three key domains – built infrastructure, transport systems and information and communication technology.

    3. The National Divyangjan Finance and Development Corporation (NDFDC) is a public sector organization set up by the Ministry of Corporate Affairs as a not-for-profit company to promote entrepreneurship among Persons with Disabilities (PwDs).

    Select the answer using the code given below:

    [A] 1 and 2

    [B] 2 only

    [C] 1 and 3

    [D] 1 only

  • Gen Z Adivasis ask for more

    Why in the News

    Tribal students at the Manjari Scheduled Tribes (ST) hostel near Pune have been on a hunger strike for over two weeks, part of protests at 25 locations across Maharashtra since August 12, demanding that the state act on 14 charges, chief among them a Supreme Court-mandated 2017 order to fill 12,500 government job positions reserved for tribals. The immediate trigger was an August 5 state order capping the age limit for staying in tribal hostels at 26 years, which the government raised to 30 on August 14 after protests began. The agitation gained force after three tribal schoolgirls died of snakebite at a Gadchiroli ashram school that had no beds. The state has held four rounds of talks and withdrawn the age cap, but has given the protesters no timeline on the pending job vacancies, and students say the same demands recur every year.

    What are the students protesting, and what triggered this round?

    1. Fourteen charges, only one conceded early: The students placed 14 demands before the government, of which it first agreed only to scrap the hostel age limit for admission.
    2. A punitive age cap sparked the protest: The August 5 order capping hostel stay at 26 years threatened students who use the hostel to prepare for competitive exams and city jobs, and was raised to 30 only after protests spread.
    3. Snakebite deaths widened the demands: Three tribal schoolgirls died of snakebite at an ashram school in Gadchiroli that had no beds, after which protesters added a demand for 1 crore compensation and health insurance for the families.
    4. Invasive hostel practices are also contested: The students want Government Resolutions restricting assembly, protests and union participation withdrawn, and an end to compulsory practices such as pregnancy tests in female hostels.

    Why has the 2017 Supreme Court-mandated job quota gone unfilled for nine years?

    1. A binding order without a deadline mechanism: The Supreme Court directed in 2017 that 12,500 government job positions be filled for tribals, but nine years on the vacancies remain open with no fixed completion date.
    2. The state cites inter-departmental delay: A government official said filling the vacancies “cannot be done overnight” because multiple departments are involved, without naming a target date.
    3. Hostel capacity has not kept pace with demand: The state runs 490 tribal hostels housing 59,020 students, and students say the government has not expanded this capacity for several years even as demand for seats in city hostels has grown.

    What does the state’s handling of the protest reveal about tribal welfare governance?

    1. Concessions follow political pressure, not review: The age cap was withdrawn only after Congress leader Rahul Gandhi gave the protesters a platform at a Pune rally and wrote to the Chief Minister, not through an internal policy review.
    2. Design choices override student preference: The state defends centrally cooked meals for hostels as easier to monitor, while students say food travelling up to 100 km from central kitchens often spoils by the time it reaches them.
    3. The protest is a recurring one: Students say they have held similar protests for four consecutive years over the same unmet demands, including hostel safety and hygiene.
    4. The hunger strike has produced a medical emergency: Two of the six students on hunger strike, weak after 14 days without food, needed to be moved for hospital treatment as their blood pressure and blood sugar dropped.

    Challenges to filling the Scheduled Tribes job quota

    1. No enforcement timeline attached to the court order: A Supreme Court direction to fill a quota carries no built-in penalty for delay, so the executive can let vacancies persist for years without consequence. Eg. The 2017 order remains unimplemented nine years later even as the state government publicly reaffirms it will comply. Fix. Require the state to file a compliance affidavit before the Court every six months, naming the number of posts filled and the department responsible for the remainder.
    2. Fragmented departmental ownership slows recruitment: Filling a quota spread across “many departments” leaves no single authority accountable for the shortfall. Eg. A state official cited inter-departmental coordination as the reason recruitment “cannot be done overnight.” Fix. Designate one nodal department to consolidate vacancy data and recruitment timelines across departments and report progress publicly.

    Conclusion

    The Manjari hunger strike has forced the Maharashtra government to withdraw one contested order and promise action on the rest, but the core grievance, a Supreme Court-mandated tribal job quota unfilled nine years on, remains unresolved without a stated timeline. Whether this round of protest produces a written, binding commitment or another round of verbal assurance will determine if the annual cycle of protest continues.

  • [29th August 2026] The Hindu OpED: Unkind cuts: On the Telangana and Karnataka electoral rolls

    [29th August 2026] The Hindu OpED: Unkind cuts: On the Telangana and Karnataka electoral rolls

    Question (2018, GS2): “In the light of recent controversy regarding the use of Electronic Voting Machines (EVM), what are the challenges before the Election Commission of India to ensure the trustworthiness of elections in India?
    Linkage: The core of the current news is the concern over potential wrongful disenfranchisement vs. genuine roll clean-up. When the ECI implements large-scale deletions (up to 50% in some urban constituencies) without releasing verifiable metrics like the elector-to-population ratio, it creates a transparency deficit. This directly mirrors the challenge of maintaining public trust in the electoral process, similar to the EVM debate.

    Mentor Comment:

    The Election Commission of India’s Special Intensive Revision (SIR) has struck off nearly a fifth of the electoral rolls in Telangana and Karnataka, about 22 per cent and 19.5 per cent respectively, with some Bengaluru and Hyderabad constituencies losing more than 40 to 50 per cent of their electors. The revision has proceeded after the Supreme Court of India permitted the SIR process to continue, and follows the Bihar SIR, where the Court had questioned why political parties filed so few objections to wrongful deletions. The Commission has not published the elector-to-population ratio, the only test of under-enrolment, for any state during the revision, making it impossible to verify whether the deletions reflect genuine bloat or wrongful disenfranchisement.

    What is the Special Intensive Revision (SIR)?

    1. What it is: The SIR is an intensive revision of electoral rolls conducted by the Election Commission of India, distinct from its routine summary revision process.
    2. How it works: It places the onus on electors and political parties to file objections against wrongful deletions.
    3. Its template: The Bihar SIR set the process the Commission has since extended to other states, including Telangana and Karnataka.

    What does the scale of deletions in Telangana and Karnataka show?

    1. High deletion rates: Telangana lost about 22 per cent and Karnataka about 19.5 per cent of electoral roll names, among the highest deletion rates in the country.
    2. Sharpest cuts in capital cities: Five Bengaluru constituencies lost more than half their electors, and nine of Hyderabad’s 15 constituencies saw deletions of more than 40 per cent.
    3. Implausible as genuine bloat: Both states have high net in-migration from the rest of India, and a deletion is justified only if the elector left the state altogether, since a move within the state would only relocate a name on the same roll rather than remove it.

    Why is the Commission’s justification hard to verify?

    1. Mandatory ratio withheld: The Commission has not published the elector-to-population ratio for any state during the revision, though doing so is mandatory and is the only test of under-enrolment.
    2. Opaque data release: Karnataka’s Chief Electoral Officer has not released a gender-wise breakdown of deletions and has scattered lists across Google Drive links without the old booth numbers, making verification difficult.
    3. A precedent of wrongful exclusion: A similar “logical discrepancy” process in West Bengal disenfranchised lakhs of electors; a Right to Information request found barely 82,000 of nearly 38 lakh appeals before 19 tribunals had been decided months after the state’s elections, with more than 90 per cent of decided appeals restoring the elector.

    Challenges to the SIR process

    1. Onus on electors invites under-objection: Requiring electors and parties to actively contest wrongful deletions means low awareness and the infrequent use of a voter identity card lead to few objections being filed. Eg. During the Bihar SIR, the Supreme Court itself asked why political parties had filed so few objections. Fix. Shift the burden to the Commission by requiring it to proactively verify a deletion against updated residence or migration data before finalising it.
    2. Opacity defeats verification: Withholding the elector-to-population ratio and publishing deletion lists without booth numbers or gender breakdowns prevents independent scrutiny of whether cuts are justified. Eg. The Karnataka Chief Electoral Officer scattered deletion lists across Google Drive links without old booth numbers. Fix. Mandate publication of the elector-to-population ratio and a standardised, booth-wise deletion list for every state before a revision is finalised.

    Conclusion

    Unless the Commission publishes the verification data it is required to release, the scale of the Telangana and Karnataka deletions will remain unexplained, and the West Bengal experience suggests a substantial share of those struck off may eventually prove to have been wrongly excluded.

  • OBC creamy layer income test issue stuck between Ministries, says House panel chief

    Why in the News

    The chairperson of the House Committee on the welfare of Other Backward Classes (OBCs) has said the OBC creamy layer income test issue is stuck between the Department of Personnel and Training (DoPT) and the Ministry of Social Justice and Empowerment, with the Social Justice Ministry yet to formulate the policy needed to place the matter before the Cabinet. The issue follows a Supreme Court judgment in March that found the DoPT was practising “hostile discrimination” by applying the income test differently to OBC candidates whose parents worked in posts without an established equivalence to government service, and directed the government to exclude salaries from the test for that category and create supernumerary posts for wrongly denied candidates. The government had six months to implement the directions but has instead approached the Supreme Court arguing retrospective implementation is “extremely difficult.” Nearly six months on, the two Ministries continue to pass responsibility for the equivalence-of-posts policy to each other, leaving the Court’s directions unimplemented.

    What is the OBC creamy layer income test?

    1. What it does: The creamy layer income test excludes wealthier or higher-status members of Other Backward Classes from non-creamy-layer OBC reservation benefits, based on parental income and the equivalence of a parent’s post with government service.
    2. Where the dispute lies: The test has been applied differently depending on whether a parent’s post has an established equivalence with a government post.
    3. Its legal basis: The equivalence determination has rested on the DoPT’s interpretation of a 2004 letter.

    What did the Supreme Court’s ruling require?

    1. Finding of hostile discrimination: The Court held that the DoPT was practising hostile discrimination by applying the income test differently based on equivalence status.
    2. Salary exclusion direction: The Court directed the exclusion of salary income from the test for candidates whose parent’s post had no established equivalence with government service.
    3. Supernumerary posts direction: The Court directed the creation of supernumerary posts for OBC candidates wrongly denied non-creamy-layer status.

    Why has implementation stalled between the two Ministries?

    1. Policy not yet formulated: The Social Justice Ministry has not formulated the equivalence-of-posts policy needed before the matter can go to the Cabinet.
    2. Government contests retrospective application: The government told the Supreme Court that retrospective implementation is “extremely difficult” and argued that some cases must still count salary income.
    3. Responsibility passed back and forth: In 2025 committee hearings, the DoPT told the House panel the equivalence responsibility lay with the Social Justice Ministry, which has yet to respond to the committee on the issue.

    Conclusion

    The dispute is procedural rather than substantive, over which Ministry must act first, and until the Social Justice Ministry frames the equivalence policy, the Supreme Court’s correction to the OBC income test remains unimplemented well past its six-month deadline.

    Matching Previous Year Question

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  • 57 lakh active workers await e-KYC under new job scheme

    Why in the News

    The e-KYC verification rate of active rural employment guarantee workers stands at 94.88 per cent, two months after the launch of the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission, Gramin (VB-G RAM G), leaving 57 lakh active workers unverified. The Union Rural Development Minister had assured, ahead of the scheme’s rollout, that existing e-KYC verified job cards under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) would remain valid until new Gramin Rozgar Guarantee Cards are issued, and states had been asked to complete verification of all remaining active workers by the end of February, a deadline that was missed. e-KYC verification has now been made a condition for availing work under the new scheme, raising questions about whether unverified workers can access employment despite the Ministry’s assurance that no eligible worker will be left behind.

    What is the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission, Gramin (VB-G RAM G)?

    1. What it replaces: VB-G RAM G is the new rural employment guarantee scheme that has replaced MGNREGS.
    2. Access condition: e-KYC verification of job cards is a condition for availing work under the new scheme.
    3. Transition safeguard: The Ministry has allowed exceptions in a few cases and assured that existing verified job cards remain valid until new cards are issued.

    What does the data show about the verification gap?

    1. Overall registration lags active workers: The e-KYC rate is 71 per cent among all registered workers against 94.88 per cent among active workers, those who availed work at least once in the last three years, leaving 57 lakh active workers unverified.
    2. Employment generation has fallen sharply: Person-days generated under VB-G RAM G in July, 7.67 crore, were 49.94 per cent lower than the 15.33 crore person-days generated under MGNREGS in July of the previous year.
    3. Wide state variation: Tamil Nadu has the highest e-KYC rates among large states, 99.32 per cent for active workers and 84.89 per cent overall, followed by Rajasthan at 95.66 per cent and 69.45 per cent, Uttar Pradesh at 94.21 per cent and 58.89 per cent, and Andhra Pradesh at 90.4 per cent and 82.32 per cent, while Bihar’s overall rate of 58.05 per cent is among the lowest for large states.

    Why did States miss the e-KYC deadlines?

    1. First deadline missed: The Rural Development Ministry asked States on 30 January to complete e-KYC verification of all remaining active workers within a week, as revealed by a Right to Information application filed by the National Campaign for People’s Right to Information.
    2. Second deadline also missed: States were again asked on 12 February to complete verification by the end of February, and nearly seven months later the target remains unmet.

    Challenges to VB-G RAM G’s rollout

    1. Verification bottleneck denying access: Making e-KYC mandatory before the backlog is cleared risks excluding otherwise eligible workers from guaranteed work. Eg. 57 lakh active workers remain unverified two months into the rollout. Fix. Extend the grace period for unverified active workers until states clear the backlog, rather than making verification a hard gate from the outset.
    2. State capacity variation: The wide gap between states, Bihar’s 58.05 per cent overall rate against Tamil Nadu’s 84.89 per cent, points to weak last-mile administrative capacity in some states. Eg. Bihar remains among the lowest performing large states despite repeated Ministry deadlines. Fix. Direct targeted central enumerator support to the lowest-performing states rather than applying a uniform national deadline.

    Conclusion

    The transition to VB-G RAM G is proceeding despite an unresolved verification backlog. The Ministry’s next milestone is closing the gap for the 57 lakh unverified active workers before its assurance of uninterrupted access is tested against actual demand for work.

    Matching Previous Year Question

    “Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? … (d) Adult members of any household” Answer: (d) — “MGNREGA benefits any adult member of a rural household, regardless of caste or economic status, providing 100 days of guaranteed work annually.” (2011, Microtheme: SchemeXRural/Agri, Subject: Governance)

  • Govt. track record on free coaching plan is poor: Congress

    Why in the News

    The Congress has questioned the Centre’s decision to launch free online coaching for students, citing the government’s poor implementation record under an existing coaching scheme. The criticism follows a Parliamentary Standing Committee on Social Justice and Empowerment report, tabled on 10 August, showing the Ministry of Social Justice and Empowerment enrolled only 2,790 of a targeted 10,500 candidates, about 26 per cent, under its existing free coaching scheme over three years, with the scheme’s allocation declining every year. It also follows the Leader of the Opposition’s remarks at a Kota event on 17 June that Indian families spend 2.5 times more on coaching centres than the Union government invests in education. The Congress has termed the free online coaching announcement an “accountability-evading gimmick,” questioning the government’s capacity to deliver at scale.

    What is the Social Justice Ministry’s free coaching scheme?

    1. Administering ministry: The scheme is run by the Ministry of Social Justice and Empowerment for candidates from Scheduled Castes, Scheduled Tribes, Other Backward Classes and other disadvantaged groups.
    2. Enrollment target: It had set a target of enrolling 10,500 candidates over three years.
    3. Funding trend: Its budgetary allocation has declined each year since.

    What does the committee’s report reveal about the scheme’s implementation?

    1. Sharp enrollment shortfall: Only 2,790 of the targeted 10,500 candidates, about 26 per cent, were enrolled over three years.
    2. Declining allocation: Funding for the scheme fell each year even as the shortfall persisted.
    3. Political context of the new announcement: The Congress says the Prime Minister’s Independence Day announcement of free online coaching followed public pressure after the Opposition Leader’s remarks on coaching dependence at Kota.

    Conclusion

    The dispute centres on whether the Centre can execute a new free online coaching commitment given its own record on the existing scheme. The government has not yet released implementation details for the new initiative, and the enrollment and funding data for the existing scheme remain the yardstick against which its rollout will be judged.

    Matching Previous Year Question

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  • Economy weathered West Asia shock. Now, reform for sustained growth (Op-ed by Sajjid Chinoy)

    Why in the News

    India’s gross domestic product (GDP) growth for the last quarter is expected to print close to 8 per cent, defying fears that the West Asia conflict had dented the economy. This follows a joint fiscal, monetary and regulatory stimulus through 2025, direct tax cuts, a Goods and Services Tax (GST) rationalisation, and an effective 150 basis point policy rate cut, combined with a swift diversification of energy imports during the conflict. The pickup is largely cyclical, and the investment rate, corporate capital expenditure (capex) and structural export and employment growth remain too weak to sustain the expansion once the stimulus fades.

    What explains India’s growth resilience through the West Asia conflict?

    1. A joint stimulus in 2025: Direct taxes were cut in February, GST was rationalised in September, and policy rates were cut by an effective 150 basis points along with regulatory easing in the financial sector.
    2. Non-oil export acceleration: Exports have picked up on the back of a near 15 per cent depreciation of the real effective exchange rate (REER), the trade weighted, inflation adjusted value of the rupee against a basket of currencies, since 2025, a reduction in United States tariffs, and resilient global growth.
    3. Swift energy diversification: India sourced crude from Russia and liquefied natural gas from the United States and Oman to prevent shortages, importing 17 per cent more energy than normal last quarter, while the government absorbed the bulk of the oil price shock through the fisc to insulate the private sector.

    Why does India’s investment rate remain a structural concern?

    1. Fixed investment stagnant: Fixed investment remains near its decadal average of 32 per cent of GDP and has not lifted despite rising public investment and real estate capex.
    2. Corporate capex has not picked up: Corporate capex continues to languish around 10 to 11 per cent of GDP, and balance sheets of the top 1,000 listed companies show no discernible pickup in 2025-26.
    3. Central capex is slowing: Central capex grew 30 per cent between 2020 and 2023, then slowed to 11 per cent in 2024 and just 1.6 per cent in 2025, as tax cuts absorbed fiscal space.
    4. State capex under pressure: Cash transfers on demand are pushing state capex growth below nominal GDP growth.
    5. Weak demand visibility: Capacity utilisation has stayed in the 75 to 76 per cent range for a decade, and rising Chinese overcapacity is discouraging corporate investment.

    Why are consumption and export growth not yet structural?

    1. Weaker growth than the earlier export led cycle: Post-pandemic private consumption and exports grew at about 5 per cent, against the 16 per cent export growth between 2003 and 2012 that had crowded in private capex.
    2. Service export growth has halved: Service export growth in nominal dollars has fallen to 8 per cent over the last year from 16 per cent over the previous four years, and employment across major IT firms has stayed flat.
    3. Employment mix is shifting toward self-employment: The Periodic Labour Force Survey shows India’s employment rate rising, but a significant share of new jobs are self-employed rather than salaried, even as the mix improved in 2025.
    4. Consumption is credit fuelled: Non-Banking Financial Company lending to households is growing at 20 per cent and unsecured personal lending momentum has risen to 25 per cent, on the back of rising household leverage.

    What must change for the growth cycle to become structural?

    1. Labour must become more competitive against capital: India’s capital-labour ratio has risen for over two decades, and reversing this needs education, skilling and health investment, alongside rationalising labour laws that raise the cost of labour.
    2. Exports need structural competitiveness: Goods exports have fallen from 17 per cent of GDP a decade ago to 11 per cent, and further gains need tariffs and non-tariff barriers rationalised and overregulation reduced.
    3. Private capex is the real crowding-in mechanism: Structurally higher consumption and exports are what would draw in a sustained private capex cycle, which in turn would crowd in foreign direct investment and stabilise the balance of payments.

    Conclusion

    The current cyclical strength, backed by clean corporate and financial balance sheets and a sustained agricultural surplus, is a bridge over the West Asia shock, not a destination. Unless investment, exports and employment turn structural, the growth cycle will not sustain once the fiscal and monetary stimulus fades, and the piece warns there is little time left to act given global automation, trade fragmentation and a fraying international order.

    Matching Previous Year Question

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  • FCNR(B) deposits push forex reserves to all-time high of $729 bn in August

    Why in the News

    The Reserve Bank of India’s concessional swap window for Foreign Currency Non-Resident (Bank), or FCNR(B), deposits has propelled India’s foreign exchange reserves to a record $729.33 billion as of 21 August, surpassing the previous all-time high of $728.49 billion recorded on 27 February, just a day before the United States and Israel struck Iran and touched off the West Asia conflict that drove global energy prices sharply higher. Reserves rose by $12.42 billion in the week ended 21 August alone, with FCNR(B) inflows of $65.4 billion accounting for most of the $72.85 billion that has entered India since three concessional swap windows opened on 8 June.

    What is driving reserves to a record, and what does the FCNR(B) window actually do?

    1. Scale of inflows: FCNR(B) deposits outstanding rose from $34.04 billion at the end of May to $65.4 billion by 21 August, since the window opened on 8 June, and reserves themselves jumped $12.42 billion in the week ended 21 August.
    2. Mechanism: Under the FCNR(B) scheme the central bank bears the full exchange rate risk on these non-resident deposits, since the money is held in foreign currency rather than converted into rupees, which let banks offer interest rates as high as 7.4 percent.
    3. Leveraged NRI participation: Non-resident Indians have also borrowed at lower interest rates abroad to deposit the proceeds into FCNR(B) accounts, earning returns of as much as 15 percent on the resulting spread.

    Why did reserves need rebuilding in the first place?

    1. The rupee was already under stress before the record: The rupee came under intense pressure from large foreign portfolio outflows, with $19 billion leaving Indian markets in 2025 and a further $24 billion in the first five months of 2026, pushing the currency to near 97 per dollar in mid-May.
    2. The West Asia conflict added an oil import shock: Since roughly 85 percent of India’s crude oil needs are met through imports, the conflict’s closure-driven spike in global energy prices raised the country’s import bill and added further pressure on the rupee just as reserves were near their earlier February high.
    3. The rupee remains down year-on-year despite the record reserves: The rupee closed at 95.39 per dollar on Friday, little changed from its 95.79 level on 4 June and still 8.1 percent weaker than a year earlier, showing the reserve build has stabilised rather than reversed the currency’s decline.

    What other measures accompanied the FCNR(B) window?

    1. Two additional swap windows: Announced alongside FCNR(B) on 5 June, swap facilities for Overseas Foreign Currency Borrowings and External Commercial Borrowings have together brought in $4.86 billion and $2.59 billion respectively since 8 June.
    2. Tax relief for foreign portfolio investors: The government removed capital gains and withholding taxes on foreign portfolio investment in government securities as part of the same package meant to pull in capital and support the rupee.
    3. An accelerated closure timeline: Because inflows arrived faster than expected, the RBI moved the FCNR(B) window’s closing date to 31 August, a month earlier than the originally announced 30 September deadline.

    Challenges to relying on FCNR(B)-driven reserve accumulation

    1. Weak currency response relative to precedent: The rupee has barely moved during this swap window, compared with the 2013 episode when the rupee rose 10.3 percent, from 67.6 to 61.3 per dollar, in the first 40 days after the RBI’s then-Governor introduced a similar FCNR(B) swap facility. Eg. The rupee moved from 95.79 to 95.39 per dollar between 4 June and 29 August this year, a fraction of the 2013 currency response to a comparable scheme. Fix. Pair reserve accumulation with structural measures that improve the current account, such as diversifying energy import sources, rather than treating swap-driven capital inflows alone as sufficient to support the currency.
    2. Reversal risk from leveraged hot money: A meaningful share of FCNR(B) inflows has been driven by non-resident Indians borrowing cheaply abroad to arbitrage into high-yield deposits, a flow that can reverse quickly once interest rate differentials narrow or the window closes. Eg. The window’s early closure on 31 August, a month ahead of schedule, was itself driven by inflows arriving faster than expected, which cuts both ways once the scheme ends and deposits mature. Fix. Stagger FCNR(B) maturities and monitor the redemption schedule closely to avoid a sudden reserve drawdown when large deposit tranches come due.

    Conclusion

    The FCNR(B) swap window has pushed India’s foreign exchange reserves past their previous February high to a record $729.33 billion, giving the Reserve Bank of India greater capacity to defend the rupee after a period of heavy foreign portfolio outflows and an oil price shock from the West Asia conflict. The rupee’s limited appreciation despite the record inflow, unlike the sharper rupee gains seen after the comparable 2013 swap window, signals the current build is cushioning rather than reversing currency pressure.

    Back2Basics: What are FCNR(B) deposits?

    1. FCNR(B) deposits are foreign currency accounts that non-resident Indians can hold with Indian banks, where the deposit and its returns stay denominated in the foreign currency rather than in rupees.
    2. The scheme shifts exchange rate risk onto the Reserve Bank of India rather than the depositor or the bank, which lets banks offer higher interest rates to attract inflows during periods of currency pressure.
    3. India last used a similar concessional FCNR(B) swap window in 2013, under then RBI Governor Raghuram Rajan, to stabilise the rupee following a sharp depreciation.

    Matching Previous Year Question

    No direct PYQ traced in the provided files (Pass 1: FCNR(B), forex reserves record — no match; Pass 2: balance of payments, current account — matches found were conceptually unrelated to a record reserves event).

  • Govt. eases norms for defence exports, licences

    Why in the News

    The Defence Ministry has simplified its Defence Export Standard Operating Procedure (SOP) and overhauled the Open General Export Licence (OGEL) framework to help Indian defence manufacturers access global markets faster. Stakeholder consultation with concerned ministries and government agencies has been dispensed with for exports of non-lethal defence items to most destinations, though safeguards continue for sensitive countries, and the same consultation requirement has been removed altogether for exports linked to international tenders and exhibitions.

    What has changed under the revised Export SOP?

    1. Reduced consultation for non-lethal exports: Stakeholder consultation with concerned ministries and agencies is no longer required for exporting non-lethal defence items to most destinations, though safeguards remain in force for sensitive countries.
    2. No consultation for tenders and exhibitions: The same consultation requirement has been dropped for exports of all items meant for international tenders and exhibitions, letting Indian companies pursue overseas opportunities faster.

    How has the OGEL framework been restructured?

    1. Consolidated procedures: Three separate OGEL SOPs, covering major platforms and equipment, parts and components, and intra-company technology transfer, have been merged into a single framework.
    2. Longer validity and wider country coverage: OGEL validity has been extended from two years to three, and its country coverage expanded from 41 countries to all countries except those designated negative or sensitive.
    3. A new licence category for long-term contracts: Indian companies with long-term contracts or agreements with foreign original equipment manufacturers can now obtain an OGEL for eligible items tied to that specific manufacturer, with validity aligned to the underlying contract.
    4. Expanded item coverage: OGEL eligibility now extends to civil-end-use exports of specified small-calibre arms components and protective equipment.

    Challenges to the liberalised export and licensing regime

    1. Diversion risk from wider country coverage: Extending OGEL coverage to all countries except a negative list raises the risk that dual-use or sensitive items reach unintended end users through re-export or transhipment. Eg. Widened general licensing regimes elsewhere have previously required retrofitted end-use verification systems after initial liberalisation exposed gaps, as seen in tightened United States Commerce Control List enforcement following early Export Administration Regulations liberalisation. Fix. Pair the wider OGEL coverage with mandatory post-export end-use certification audits for a sample of shipments to non-treaty destinations.
    2. Consultation removal versus oversight continuity: Dispensing with stakeholder consultation for non-lethal exports speeds approvals but removes a cross-ministry check that previously caught destination-specific concerns before shipment. Eg. Non-lethal classification itself can be contested, since components with civil and military dual use, such as certain protective equipment, may be misclassified at the exporter’s discretion. Fix. Retain a post-facto sampling audit by the Department of Defence Production even where pre-export consultation is waived.

    Conclusion

    The Defence Ministry’s overhaul of the Export SOP and the OGEL framework liberalises licensing timelines, validity and country coverage for Indian defence exporters while explicitly retaining safeguards for sensitive countries and technologies. The stated intent is to let Indian manufacturers respond faster to international tenders and deepen co-production ties with foreign original equipment manufacturers.

    Back2Basics: What is an Open General Export Licence (OGEL)?

    1. An OGEL is a standing, one-time authorisation that lets an eligible exporter self-generate export authorisations for multiple consignments of specified defence items without seeking a separate approval for every individual shipment.
    2. It is administered by the Defence Ministry’s Department of Defence Production and covers major platforms and equipment, parts and components, and intra-company technology transfers.
    3. Its use remains subject to end-destination safeguards, so items bound for negative or sensitive countries continue to require case-by-case authorisation outside the OGEL route.

    Matching Previous Year Question

    No direct PYQ traced in the provided files.

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