Authorities have recovered the black box from the crash site of the recent incident in Ahmedabad.
About Black Boxes:
Purpose: Black boxes are essential flight data recording devices used in aircraft to aid in accident investigation and flight safety analysis.
Development: Australian scientist David Warren in 1954, developed the first practical FDR after investigating mid-air explosions.
Color and Visibility: Despite the name, black boxes are painted bright orange with reflective material to make them easily visible after a crash.
Two Main Types: Aircraft typically have two black boxes:
Cockpit Voice Recorder (CVR) and
Digital Flight Data Recorder (DFDR).
Single Unit: Some aircraft integrate both functions into a single combined unit.
How does it work?
Cockpit Voice Recorder (CVR): The CVR records cockpit audio, including pilot conversations, radio transmissions, alarm sounds, and background noises like engine hum or warning tones.
Digital Flight Data Recorder (DFDR): The DFDR logs key flight performance data, including altitude, airspeed, direction, engine parameters, and system operations, capturing thousands of data points per second.
Installation Location: Black boxes are usually installed in the tail section of the aircraft, as this area is statistically more likely to remain intact in a crash.
Recording Capacity: The CVR records the last 2 hours of cockpit audio on a continuous loop, while the DFDR stores up to 25 hours of flight data.
Durability and Protection: Black boxes use solid-state memory chips housed in crash-survivable casings that can endure high-impact forces, extreme temperatures (up to 1,100°C), and deep-sea pressure.
Underwater Locator Beacons (ULBs): Each black box includes a beacon that emits signals for up to 30 days, aiding search teams in locating the devices in the event of a water crash.
Use of Black Boxes in India:
Regulation in India: In India, aircraft crash investigations are conducted by the Aircraft Accident Investigation Bureau (AAIB) under the Ministry of Civil Aviation, using black box data as primary evidence.
Recent Development (April 2025): India established its first dedicated Flight Recorders Laboratory in New Delhi, strengthening the country’s capability to analyze crash data independently and efficiently.
[UPSC 2025] GPS-Aided Geo Augmented Navigation (GAGAN) uses a system of ground stations to provide necessary augmentation. Which of the following statements is/are correct in respect of GAGAN?
I. It is designed to provide additional accuracy and integrity.
II. It will allow more uniform and high-quality air traffic management.
III. It will provide benefits only in aviation but not in other modes of transportation.
Options: (a) I, II and III (b) II and III only (c) I only (d) I and II only*
The Finance Ministry has firmly denied recent online rumours suggesting that the government is planning to impose Merchant Discount Rate (MDR) charges on UPI transactions.
About Merchant Discount Rate (MDR):
Overview: MDR refers to the fee charged to merchants by banks or payment service providers for processing digital payments made via credit cards, debit cards or other digital modes.
Purpose: It serves to compensate multiple stakeholders involved in a digital transaction, including the issuing bank, acquiring bank, payment gateway, and network operator.
Fee Structure: MDR is typically calculated as a percentageof the total transaction amount, usually ranging from 1% to 3%, depending on the transaction and merchant type.
RBI Regulation: The Reserve Bank of India (RBI) regulates MDR, and merchants are NOT permitted to pass this fee onto customers.
Discontinuation: To promote cashless payments, the government waived MDR on UPI and RuPay card transactions in 2020, benefiting small merchants and consumers.
How does it work?
Transaction Flow: When a customer pays digitally, the payment amount is credited to the merchant’s account after deducting the MDR fee.
Example: If a customer pays ₹1,000 and the MDR is 2%, the merchant receives ₹980, while the remaining ₹20 is distributed among the banks and service providers.
Automatic Deduction: The MDR amount is automatically deducted by the settlement system at the time of transaction processing.
Variable Rates: The MDR rate may vary depending on factors such as the type of card used, nature of business, monthly transaction volume, and average transaction value.
Merchant Agreements: Merchants are required to sign MDR agreements with their payment service providers before they begin accepting digital payments.
Operational Cost: MDR is treated as a part of the merchant’s operational costs when offering customers the convenience of digital payment options.
[UPSC 2017] Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?
Options: (a) The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank.
(b) The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services.
(c) The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards. *
(d) The incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards.
The Indian aviation sector became the world’s third-largest domestic aviation market. Big news from the Mains perspective. PYQs analysis gives us 2 possible lines of questioning: upcoming challenges for the sector to maintain the status quo or your comment on the evolution of aviation sector in India.
Avoid writing generic pointers. Standard textbooks won’t help you with notes on the topic of service industry growth story. We have detailed points for each challenge (Operational, financial, administrative, etc.) in the main article. and a snapshot of progress for the aviation sector in the Back2basics to develop your core understanding.
UPSC Microthemes & Mains PYQ:
GS3: Examine the development of Airports in India through joint ventures under Public – Private Partnership (PPP) model. What are the challenges faced by the authorities in this regard? (UPSC 2017)
GS2: The need for cooperation among various service sector has been an inherent component of development discourse. Partnership bridges bring the gap among the sectors. It also sets in motion a culture of ‘Collaboration’ and ‘team spirit’. In the light of statements above examine India’s Development process. (UPSC 2019)
Microthemes: Airports X Infrastructure, PPP X Infrastructure
The Indian aviation industry has emerged as a global powerhouse, becoming the world’s third-largest domestic aviation market. Projected to surpass the United States and China by 2030, India’s aviation sector is poised for immense growth, driven by robust demand, infrastructure expansion, and government support. However, the sector faces significant challenges that must be addressed to unlock its full potential.
Status of the Industry
Key Metric
Data/Statistic
Global Ranking
3rd largest domestic aviation market
Operational Airports
Increased from 74 in 2014 to 148 in 2023
PPP Airports
Expected to increase from 5 in 2014 to 24 by 2024
FDI Investment
Reached $3.73 billion (2000–2022)
The rapid increase in operational airports and public-private partnership (PPP) airports demonstrates India’s commitment to expanding infrastructure. Foreign Direct Investment (FDI) has also surged, reflecting investor confidence in the industry.
Potential of India’s Aviation Sector:
The aviation sector holds immense promise for India’s economic development, including enhanced connectivity, job creation, and regional growth.
Increased Market Share: According to the International Air Transport Association (IATA), India is expected to be the world’s third-largest air passenger market by 2030, overtaking China and the United States.
Balanced Economic Growth: Aviation connectivity promotes economic growth in remote areas, as seen in the North East, where enhanced air connectivity has accelerated development.
Tourism Growth: The aviation sector acts as a growth catalyst for tourism, generating employment in supporting sectors like hospitality, retail, and transportation.
Manufacturing Boost: India’s expanding aviation industry has created demand for maintenance, repair, and overhaul (MRO) facilities, providing job opportunities in aerospace manufacturing and engine maintenance.
FDI in Infrastructure: With around $3 billion in FDI, the sector has seen significant investments in projects such as greenfield airports in Navi Mumbai and Noida (Jewar).
Employment Opportunities: The industry is expected to require 10,900 additional pilots by FY30, along with other skilled personnel, highlighting its role in job creation.
Key Government Initiatives
Policy/Initiative
Description
National Civil Aviation Policy, 2016
Promotes international reach of Indian airlines and mandates domestic deployment for international operations.
UDAN Scheme
Enhances regional connectivity to underserved cities in tier 2 and 3 regions.
Open Sky Policy
Liberalizes aviation, allowing private sector involvement in airport development, with 60% of traffic managed under PPP.
Open Sky Air Service Agreements
Enables unlimited flights between India and signatory countries.
FDI and Tax Incentives
Allows 100% FDI in greenfield projects and 74% in brownfield under automatic route, with tax exemptions for airport projects.
Challenges Facing India’s Aviation Sector
Despite its growth potential, India’s aviation sector faces challenges across Operational, Financial, Infrastructural, Regulatory, and Environmental categories. Here is a breakdown:
Operational Challenges
Grounded Unsafe Aircraft: Financially struggling airlines like SpiceJet and GoAir have grounded a significant portion of their fleets. Over 160 aircraft, or about 25% of the total fleet, are currently grounded, reducing service availability.
Crew Shortage: A shortage of trained pilots, engineers, and cabin crew disrupts operations, leading to increased turnaround times and higher operational costs.
Supply Chain Disruptions: Delays in aircraft and component deliveries from original equipment manufacturers (OEMs) hinder the sector’s ability to meet growing demand.
Financial Challenges
Financial Losses: Indian airlines are projected to lose between $1.6 and $1.8 billion in FY24 due to high operating costs and low profitability, with major losses from carriers like Go First, SpiceJet, and Jet Airways.
High Operational Costs: Rising fuel prices, accounting for 45-50% of airline expenses, further burden financially struggling airlines.
Low Domestic Travel Penetration: India’s per capita air travel rate is 0.13 seats per capita, much lower than countries like China (0.49), indicating untapped market potential.
Infrastructural Challenges
Poor Rural Connectivity: Despite initiatives like UDAN, there is limited air connectivity to tier-2 and tier-3 towns, with major airports controlling air traffic and limited regional service.
Underdeveloped MRO Facilities: The lack of Maintenance, Repair, and Overhaul (MRO) infrastructure forces airlines to rely on foreign services, making maintenance more costly.
Gaps in Airport Infrastructure: India’s airport infrastructure and Air Traffic Control (ATC) are insufficient to handle rapid growth, requiring significant upgrades to support future demand.
Regulatory Challenges
High Fuel Taxes: India imposes one of the highest taxes on Aviation Turbine Fuel (ATF), significantly increasing operating costs for airlines.
Outdated Policies: The Aircraft Act, 1934, and Aircraft Rules, 1937, have not kept pace with modern aerospace technology, creating inefficiencies and limiting growth.
Market Duopoly: IndiGo and Tata group airlines dominate the market, with 60% and 20% market shares, respectively, reducing competition and innovation.
Environmental Challenges
Carbon Emissions Pressure: Under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), Indian airlines face increasing pressure to adopt sustainable practices, adding to operational costs.
Sustainability Concerns: The industry is under growing scrutiny to minimize its environmental impact, which may require additional investments in cleaner technology and fuel-efficient practices.
To unlock its potential, India’s aviation sector requires strategic reforms across these areas, focusing on improving infrastructure, modernizing regulations, and addressing financial sustainability.
Way Forward
Regulatory Reforms
DGCA Reforms: Appointing aviation professionals, rather than bureaucrats, to lead the Directorate General of Civil Aviation (DGCA) can improve regulatory oversight and bring specialized knowledge to the regulatory body.
Modernization of Aircraft Act and Rules: Updating the Aircraft Act, 1934, and Aircraft Rules, 1937, will help align regulations with modern aerospace technology, streamlining operations and enhancing passenger growth.
Financial Reforms
Tax Rationalization: Reducing taxes on aviation turbine fuel (ATF), cargo, and airport operations can help alleviate cost pressures on airlines, making operations more financially sustainable.
Support for Startups: Encouraging entrepreneurship in the Maintenance, Repair, and Overhaul (MRO) sector under the ‘Start-up India’ initiative can promote local industry development and reduce dependence on foreign services.
Infrastructural Development
Enhanced Rural Connectivity: Expanding air connectivity to Tier 2 and Tier 3 cities through initiatives like the UDAN scheme will increase accessibility and help unlock demand in underserved markets.
Environmental Initiatives
Environmental Sustainability: Implementing the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) and investing in sustainable aviation practices will reduce the environmental footprint of the sector, supporting long-term sustainability.
These initiatives can collectively strengthen India’s aviation sector, making it more competitive, sustainable, and accessible.
Conclusion: The Indian aviation sector holds transformative potential for economic growth, connectivity, and job creation. However, realizing this potential requires addressing structural challenges, modernizing regulations, and adopting sustainable practices. With targeted reforms and continued investment, India can become a global leader in aviation and an attractive market for international stakeholders.
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#BACK2BASICS: India’s Aviation Sector: A Snapshot of Progress
India’s Aviation Boom: India has skyrocketed to become the world’s third-largest domestic aviation market, trailing only the USA and China. Once limited, the sector now thrives as a vibrant and competitive industry. Government policies and initiatives have played a significant role in creating an environment ripe for growth and innovation.
Infrastructure Development: India’s airport network has seen incredible expansion, doubling its operational airports from 74 in 2014 to 148 as of April 2023, making air travel accessible to a larger population.
Regional Connectivity Scheme-UDAN: Launched in 2016, UDAN (Ude Desh ka Aam Nagrik) connects under-served and unserved airports, enhancing connectivity and boosting local economies. With 517 routes in operation linking 76 airports, UDAN has made air travel accessible to over 13 million people.
Passenger Growth: The sector is witnessing strong post-COVID growth. From January to September 2023, domestic airlines carried nearly 113 million passengers, a 29% increase over the previous year. International traffic also surged, with 46 million passengers, up by nearly 40% compared to the same period in 2022.
Carbon Neutrality Efforts: The Ministry of Civil Aviation (MoCA) is pushing for carbon-neutral operations, advising airports to map their emissions and work towards net-zero carbon footprints. Newly built airports are also prioritizing green initiatives. Delhi, Mumbai, Hyderabad, and Bengaluru airports have achieved Level 4+ ACI Accreditation for carbon neutrality, and 66 airports in India now operate on 100% green energy.
India’s aviation sector isn’t just growing—it’s setting the stage for sustainable, accessible, and inclusive air travel.
Scoring 108 in GS3 is no accident, it’s the result of a system that works. In his fourth attempt, Shubham Kaurav (AIR 291, UPSC 2024), pulled off a remarkable turnaround. He increased his Mains score by 82 marks and what truly stood out was his score in GS Paper 3: a staggering 108 marks, one of the highest in the country. But he didn’t do this by just reading more books or writing generic answers. He built a smart, repeatable, and feedback-driven approach that worked even under pressure.
In this session, Shubham will walk you through the exact framework that helped him crack GS3. His method was focused on identifying high yield microthemes using the syllabus and PYQs. He didn’t waste time memorising facts blindly. Instead, he made notes around core issues, adding depth through data from the Economic Survey , authentic government reports, and committee recommendations like Urjit Patel and 2nd ARC.
What made his answers different was how visual and structured they were. Maps, flowcharts, structured intros, balanced conclusions , each part served a purpose. His value addition was sharp and relevant, not decorative. And behind all this was consistency: daily answer writing, peer reviewed feedback, and smart use of tools like ChatGPT to streamline preparation.
As Shubham says, “Like bamboo, growth may be invisible for a while, but when it comes, it’s exponential.” His journey is proof that if you write with clarity, structure, and precision, your answers will not just be read, they’ll be rewarded.
If GS3 has been your weakest paper or the one where effort hasn’t translated to marks, this session will help you rewire your approach. Whether you’re targeting 100+ or pushing for 110+, you’ll walk away with a toolkit that works. Join Shubham Kaurav live on 19th June, Monday at 7 PM
It will be a 45 minute webinar, post which we will open up the floor for all kinds of queries which a beginner must have. No questions are taboo and Shubham Sir is known to be patiently solving all your doubts.
Join us for a Zoom session on 19th June at 7 PM. This session is a must-attend for you If you are attempting UPSC for the first time or have attempted earlier and now preparing for next year, then it is going to be a valuable session for you too.
See you in the session”
Register for the session for a complete in-depth UPSC Mains GS -3 Prep
(Don’t wait—the next webinar won’t be until July 25)
These masterclasses are packed with value. They are conducted in private with a closed community. We rarely open these webinars for everyone for free. This time we are keeping it for 300 seats only.
[UPSC 2019] What introduces friction into the ties between India and the United States is that Washington is still unable to find for India a position in its global strategy, which would satisfy India’s National self-esteem and ambitions” Explain with suitable examples.
Linkage: The article points out several trade and economic tensions between the U.S. and India. These include disagreements over the actual size of the U.S. trade deficit with India, the increase of tariffs on steel and aluminium imports from 25% and 10% to 50%, which also affects India, and warnings of possible tariffs on Apple products if they are made in India.
Mentor’s Comment: In a major decision, five small U.S. businesses won a legal case against former President Donald Trump’s wide-ranging tariffs in the U.S. Court of International Trade. On May 28, 2025, the court ruled that the tariffs—ranging from 10% to 135% and affecting over 100 countries—were unconstitutional and illegal. This ruling matters globally, especially for countries like India, now facing increased 50% tariffs on steel and aluminium.
Today’s editorial focuses on the US Courts’ decision on tariffs, a key issue relevant to GS Paper II (International Relations) in the UPSC syllabus.
_
Let’s learn!
Why in the News?
Recently, on May 28, 2025, a U.S. court ruled that the tariffs, ranging from 10% to 135% and applied to over 100 countries, were against the Constitution and not legal.
What was the legal challenge to Trump’s tariffs?
Unlawful Executive Overreach: Five small U.S. businesses challenged Trump’s tariffs at the U.S. Court of International Trade (CIT), arguing that the President exceeded legal authority by imposing tariffs without Congressional approval. Eg: Firms dealing in wines, bicycles, and fishing equipment claimed economic harm.
Violation of Separation of Powers: The lawsuit argued that the President’s sweeping tariffs bypassed legislative and judicial checks, undermining the constitutional framework. Eg: The court noted that trade rules must involve Congress, not unilateral executive orders.
Misuse of National Emergency Powers: The court ruled that invoking a “national emergency” does not justify rewriting international tariff agreements. Eg: The CIT stated that such powers cannot be used to override trade commitments under WTO rules.
Why did the court reject the “national emergency” claim?
Lack of Legal Basis: The court ruled that there was no statutory authority for the President to impose retaliatory global tariffs under a vague “national emergency.” Eg: Tariffs up to 135% were applied without Congressional sanction.
Overreach of Executive Powers: The court stated that invoking national emergency powers cannot allow the President to override trade laws and international commitments. Eg: It held that such use disrupts the constitutional separation of powers.
Absence of Real Emergency: The court found no credible evidence of an immediate or actual threat that would justify emergency trade measures. Eg: The cited trade deficit was not a sudden crisis but a long-standing economic condition.
Distortion of Trade Deficit Data: The administration failed to account for services and arms trade while citing trade deficits as justification. Eg: U.S. cited a $44.4 billion deficit with India, while it actually runs a $35–40 billion surplus when services are included.
Violation of International Obligations: The court emphasized that the tariffs contradicted U.S. commitments under WTO agreements and eroded global trade norms. Eg: The U.S. applied tariffs even to uninhabited territories like the Heard and McDonald Islands, showcasing arbitrariness.
How did the U.S. justify tariffs on India after WTO talks?
National Security Pretext: The U.S. continued to claim national security grounds for the imposition of tariffs, even after WTO rulings against it. Eg: Despite WTO panels rejecting the justification in 2022, the U.S. raised steel and aluminium tariffs to 50% on India.
Strategic Trade Leverage: The U.S. argued that enhanced tariffs served as negotiation tools to pressure trade partners into deals. Eg: The U.S. claimed the tariffs on India helped gain leverage in talks to finalize a bilateral trade agreement.
Mutually Agreed Solution Bypass: Though India and the U.S. reached a “mutually agreed solution” at the WTO in 2023, the U.S. still extended new tariffs on India. Eg: The 50% tariffs imposed in 2025 contradicted the earlier settlement, undermining trust in WTO dispute resolution.
Which issues must India address in a U.S. trade deal?
Removal of Additional Tariffs: India must ensure that the U.S. removes punitive tariffs on Indian exports like steel and aluminium, currently raised to 50%. Eg: The continuation of high tariffs impacts India’s manufacturing sector and export competitiveness.
Digital Services Tax Clarity: India should seek guarantees that its digital services taxes will not face retaliation from the U.S. Eg: U.S. firms operating in India’s tech sector may be affected unless taxation issues are resolved amicably.
Protection from Remittance Tax: India needs to negotiate exemption from the proposed 3.5% tax on remittances under the Trump One Big Beautiful Bill (OBBB). Eg: This would impact millions of Indian diaspora workers sending money back home.
H-1B Visa Concerns: India must address growing restrictions and backlash against H-1B visas, which are vital for its IT and service industry. Eg: Tech companies rely heavily on H-1B visas for skilled Indian professionals working in the U.S.
Cross-Border Services and Data Flows: India must ensure smooth cross-border delivery of services, including clear data flow regulations and digital trade provisions. Eg: This is critical for India’s BPO and fintech industries, which depend on uninterrupted digital transactions.
Way Forward:
Pursue Balanced Trade Negotiations:
India should negotiate a comprehensive trade deal that protects its strategic sectors, ensures reciprocity, and strengthens economic resilience without compromising on national interests.
Strengthen WTO and Multilateral Engagements:
India must continue to uphold and reform the WTO-based trade framework, using it as a platform to address disputes, promote fair trade practices, and build coalitions with like-minded nations.
India’s path to becoming a “Viksit Bharat” by 2047 relies on transforming its urban areas, as over 60% of the population is expected to live in cities by the 2060s.
What are the main challenges India faces in achieving efficient urban mobility?
Insufficient Public Transport Coverage: Only 37% of urban residents have easy access to public transport, compared to over 50% in countries like Brazil and China. Eg: Many Tier-2 cities still lack proper metro or bus services.
Shortage of Urban Buses: India needs about 2,00,000 urban buses, but currently has only 35,000 (including e-buses). Eg: Overcrowded buses in Delhi and Bengaluru during peak hours show the supply-demand gap.
Poor Last-Mile Connectivity: Even when metros are available, the cost and difficulty of reaching homes or offices from stations reduce usage. Eg:Metro commuters in Mumbai often rely on expensive auto-rickshaws for last-mile travel.
High Cost and Low Returns from Metro Projects: Metros are expensive and slow to build, with lower-than-expected ridership, making cost recovery hard. Eg: Many phases of the Jaipur Metro remain underutilized due to low footfall.
Limited Government Subsidies and Private Investment: Unlike developed nations, India cannot afford large recurring subsidies, and private investment is low due to uncertain returns. Eg:E-bus projects in Pune face delays due to funding and maintenance challenges.
Why is the current investment in metro and e-bus infrastructure falling short?
High Cost and Low Ridership: Metro projects involve huge capital and operational costs, but often fail to attract enough passengers to recover expenses. Eg: The Lucknow Metro struggles with low ridership despite high investment.
Fare Sensitivity and Last-Mile Issues: People are price-sensitive, and poor last-mile connectivity discourages use of metros and e-buses. Eg: In Hyderabad, a small hike in metro fares led to a drop in daily commuters.
Unsustainable Operational Models: E-buses have high replacement and maintenance costs, making them financially unviable in the long run. Eg: Many cities like Nagpur face challenges maintaining their e-bus fleets without subsidies.
How do trams compare to e-buses in terms of long-term cost-effectiveness?
Higher Long-Term Profitability: Trams show about 45% profitability over their typical 70-year life cycle, making them more financially sustainable. Eg: European cities like Vienna continue to expand tram networks due to long-term cost benefits.
Lower Operational and Replacement Costs: Trams require less frequent replacements and have lower running costs compared to e-buses, which face high battery and maintenance expenses. Eg:Kolkata’s tram system, though outdated, still operates at a lower cost than many new e-bus services.
Better Scalability and Climate Alignment: Trams are more scalable in dense cities and better aligned with climate goals due to zero tailpipe emissions and use of electricity from clean sources. Eg: The planned Kochi tram project is being promoted as a sustainable alternative to road-based transport.
Which schemes support urban transport in the Budget 2024?
PM e-Bus Sewa – Payment Security Mechanism: Aims to deploy and ensure reliable operations of 10,000 urban buses, including electric ones. Eg: Cities like Ahmedabad are using this to expand their bus fleet and improve service reliability.
PM e-Drive Scheme (PM Electric Drive Revolution in Innovative Vehicle Enhancement): Supports procurement of 14,000 e-buses, 1,10,000 e-rickshaws, as well as e-trucks and e-ambulances. Eg:New Delhi is using funds to order e-ambulances and expand its e-rickshaw fleet under this initiative.
Way forward:
Integrated Multi-Modal Transport Planning: Develop seamless connectivity between metro, buses, e-rickshaws, trams, and non-motorised transport (NMT) to reduce last-mile gaps and improve user convenience.
Prioritise Cost-Effective and Sustainable Modes: Encourage trams and trolleybuses in high-density corridors through life-cycle cost analysis, while ensuring targeted subsidies for low-income commuters and investment in green fuels like bio-CNG and hydrogen.
Mains PYQ:
[UPSC 2019] How is efficient and affordable urban mass transport key to the rapid economic development of India?
Linkage: The article talks about different types of public transport like buses, metros, trams, and trolleybuses, and how important it is to choose options that are affordable and effective. It stresses the need for a strong and efficient public transport system to deal with the growing challenges of travel in cities. As more people move to cities, the article says urban areas will play a key role in driving India’s economic growth, making good public transport even more important.
Bangladesh is seeing major political change as interim leader Dr. Muhammad Yunus delays elections to April 2026 and proposes the “July Proclamation” to reform or replace the 1972 Constitution.
Why is the ‘July Proclamation’ seen as a threat to Bangladesh’s democratic foundations?
Lacks Democratic Legitimacy: It is being pushed by an unelected interim regime without a popular mandate or proper parliamentary debate. Eg: Prof. Yunus’ government is not elected, yet is trying to undertake constitutional reforms meant for a legislature.
Distorts Historical Legacy: The move seeks to marginalize the legacy of Sheikh Mujibur Rahman and diminish the significance of December (Victory Day) and August (Mujib’s assassination), promoting July as a new political start. Eg: The July Proclamation downplays Bangladesh’s founding narrative to suit a new political agenda.
What are the risks of an unelected interim government pursuing constitutional reforms?
Lack of Legitimacy and Public Mandate: An interim government is not elected by the people and lacks the constitutional authority to undertake major reforms meant for a parliament or constituent assembly. Eg: In Bangladesh, Prof. Yunus’ government is implementing reforms without elections, violating democratic norms.
Potential for Power Consolidation: Such reforms can be used to prolong the tenure of the interim regime, sideline opposition, and weaken checks and balances, paving the way for authoritarian rule. Eg: The banning of the Awami League and the extension of election dates to 2026 raise concerns of power entrenchment.
Political Instability and Polarisation: Constitutional changes without bipartisan consensus can lead to unrest, legitimacy crises, and deep political divisions. Eg: The BNP, though opposed to the Awami League, is uncomfortable with the July Proclamation, showing a lack of political unity.
How could the proposed humanitarian corridor affect regional security?
Violation of Sovereignty and Military Tensions: A demilitarised humanitarian corridor, especially if monitored by international forces, may be seen as a breach of national sovereignty by host countries. Eg: The Bangladesh Army chief objected to international enforcement in the Rakhine region, fearing it would undermine Bangladesh’s sovereignty.
Risk of Weapon Smuggling and Armed Group Access: Without effective monitoring mechanisms, such corridors could be exploited by international armed groups to smuggle weapons and infiltrate conflict zones. Eg: Concerns exist that the proposed corridor into Myanmar’s Rakhine province may be misused by armed groups, threatening both Myanmar and Indian border security.
Uncertain Aid Distribution and Escalation of Conflicts: There’s no guarantee that humanitarian aid will reach only the intended civilian population (like Rohingya) and not be diverted to militant factions, escalating regional conflicts. Eg: India fears that lack of clarity over corridor enforcement could worsen militancy in the Northeast and Indo-Myanmar border areas.
Note: The humanitarian corridor to Myanmar’s Rakhine province is a proposed initiative — not yet implemented — and it was publicly supported by Professor Muhammad Yunus, the Chief Adviser to the interim government of Bangladesh, in a speech on June 7, 2025.
Why does the sidelining of major parties like BNP and Awami League raise democratic concerns?
Undermining of Political Representation: Exclusion of major political parties weakens democratic legitimacy and narrows the space for public representation and opposition. Eg: The ban on the Awami League and the marginalisation of the BNP prevents millions of citizens from having their voices heard in the political process.
Emergence of Proxy or Unrepresentative Forces: The vacuum created by sidelining mainstream parties can be filled by unaccountable or extremist groups, increasing political instability. Eg: The rise of the National Citizens Party (NCP), referred to as the ‘King’s Party’ by the BNP, raises fears of state-sponsored political manipulation.
Way forward:
Inclusive Political Dialogue and Election Roadmap: The interim government must initiate an inclusive dialogue involving all major political parties, including the BNP and Awami League, to build consensus on constitutional reforms and ensure free and fair elections.
Limit Powers of the Interim Government: Clearly define and restrict the mandate of the interim government to conduct elections only, avoiding any major constitutional or policy decisions that should be left to an elected Parliament.
Mains PYQ:
[UPSC 2013] Critically examine the compulsions which prompted India to play a decisive roles in the emergence of Bangladesh.
Linkage: Understanding India’s historical role is crucial for comprehending the current political landscape in Bangladesh, especially as the interim government seems to want to ensure “that the legacy of 1971.
This article explains the causes and control of food inflation in India clearly and simply. UPSC often asks questions that require linking causes of inflation with monetary policy measures, as seen in the 2024 question on food inflation and RBI’s policy effectiveness. Aspirants usually falter by not connecting theory with current data or by missing the nuances between supply-side and demand-side factors. They also struggle to analyze the RBI’s role realistically rather than just listing policies. This article helps by breaking down complex themes like “Role played by Food Prices in Reducing Retail Inflation” with up-to-date examples (e.g., vegetable prices fell by 7.04% in March 2025), making it easier to grasp the direct impact on inflation. It also clarifies the RBI’s responses under different scenarios (like rate cuts and liquidity management) and their limitations, helping aspirants think critically rather than memorize. The special feature of this article is its clear linking of macroeconomic terms to real-world numbers and RBI decisions, making abstract concepts practical and exam-relevant. By focusing on specific subheads like “RBI’s policy responses in various scenarios” and “The Link Between Food Prices and Inflation,” it guides aspirants to answer mains questions with structured, evidence-backed arguments, avoiding common pitfalls. Overall, it is a concise yet comprehensive resource that bridges textbook knowledge with current affairs smoothly.
This article explores the causes and control of food inflation in India by linking economic concepts with current trends. UPSC often frames such topics by combining theory with real-world application, as seen in the 2024 question on food inflation and the RBI’s policy effectiveness. Many aspirants struggle to connect supply-side and demand-side factors or evaluate the RBI’s role beyond surface-level policy tools.
The article addresses these challenges using recent data, such as the 7.04 percent drop in vegetable prices in March 2025, to illustrate inflation patterns. It also examines how the RBI responds in different scenarios—through interest rate adjustments or liquidity measures—and where those responses fall short. With focused subheads and grounded analysis, it helps aspirants write structured, evidence-based answers.
PYQ ANCHORING
GS 3: What are the causes of persistent high food inflation in India? Comment on the effectiveness of the monetary policy of the RBI to control this type of inflation. [2024]
MICROTHEME: MONETARY POLICY
India’s retail inflation has been on a steady decline, primarily driven by the sharp drop in food prices, especially vegetables, eggs, and pulses. Following two rate cuts by the Reserve Bank of India (RBI), inflation is expected to stay below 4% in the coming months, with a possible further rate cut of 50 basis points.
India’s Retail Inflation in March 2025
Retail Inflation Rate: In March 2025, India’s retail inflation eased to 3.34%, the lowest since August 2019.
Comparison to Previous Month: This marked a drop from February’s 3.61%, continuing the downward trend in inflation.
Contributors to Decline: The main drivers of this decline were a significant reduction in food prices, particularly vegetables, eggs, and pulses. Vegetable prices, for example, fell by 7.04% year-on-year in March.
Role played by Food Prices in Reducing Retail Inflation
Vegetable Prices: Vegetable prices dropped significantly by 7.04% in March, compared to a small increase of 1.07% in February. This drastic fall helped reduce overall food inflation.
Pulses Prices: Pulses prices also saw a decline of 2.73% in March, after a smaller decrease of 0.35% in February, further contributing to lower food inflation.
Overall Food Inflation: Food inflation dropped to 2.69% in March 2025 from 3.75% in February, marking the lowest since November 2021.
Improved Farm Output: Better farm output, particularly in vegetables and pulses, stabilized food supplies, further easing inflationary pressures.
RBI’s Response to Easing Inflation
Second Rate Cut: On April 9, 2025, the RBI reduced the policy repo rate by 25 basis points to 6.00%, its second consecutive rate cut.
Shift to Accommodative Stance: The RBI moved its monetary policy stance from “neutral” to “accommodative,” signaling a supportive approach to economic growth while keeping inflation in check.
Revised Inflation Forecast: The RBI revised its inflation forecast to 4% for FY 2025-26, down from the earlier 4.2%, reflecting improved inflation dynamics.
Revised GDP Growth Estimate: The RBI lowered its GDP growth estimate to 6.5% for the fiscal year, down from 6.7%, citing global uncertainties and trade tensions.
Risks Highlighted by RBI Affecting Inflation Outlook
Global Market Uncertainties: Ongoing global uncertainties, including trade tensions, could disrupt supply chains and lead to higher import costs. For example, a worsening of U.S.-China trade relations could escalate costs.
Adverse Weather Conditions: Unpredictable weather, such as unseasonal rains or droughts, could affect agricultural supply and push up food prices.
Rising Global Commodity Prices: Fluctuations in global commodity prices, including oil, could drive up domestic prices. For instance, rising crude oil prices could increase fuel and transportation costs.
Supply Chain Disruptions: Geopolitical tensions or supply chain disruptions (e.g., from the COVID-19 pandemic) could lead to higher prices for imported goods, impacting inflation.
Core Inflation Pressures: Core inflation (excluding volatile food and fuel) remained high at 4.1%, signaling persistent inflationary pressures in the economy.
The Link Between Food Prices and Inflation
Food prices play a pivotal role in shaping the inflationary trends in an economy. As essential items for daily consumption, changes in food prices directly influence the cost of living. When food prices rise, inflation tends to increase, and when food prices decline, inflation can ease. Here’s how food prices are intricately linked to inflation:
Factor
Explanation
Example
Direct Contribution to CPI
Food prices are a significant component of the Consumer Price Index (CPI), which is used to measure inflation. A rise in food prices directly increases CPI.
A 10% rise in vegetable prices increases the CPI.
Impact on Household Budgets
Higher food prices lead to higher household spending on basic items, reducing disposable income and contributing to overall inflation.
Increased spending on food reduces the ability to spend on other goods and services.
Food as a Staple
Staple foods (e.g., wheat, rice, vegetables) are essential for survival. A rise in their prices can push up inflation, especially in developing countries.
A price hike in wheat can cause inflationary pressure on food items like bread.
Inflation Expectations
Persistent food price increases can create inflation expectations. When consumers expect higher prices, they may demand higher wages, contributing to further inflation.
If vegetable prices consistently rise, workers may demand higher wages, fueling inflation.
Government Response
Rising food prices often prompt central banks to adjust monetary policies, such as increasing interest rates to control inflation.
RBI may hike interest rates to curb inflation caused by rising food prices.
Supply Chain Disruptions
Disruptions in the supply of food (e.g., due to weather, transportation issues) can cause short-term spikes in food prices, which can drive inflation temporarily.
A poor monsoon leading to a spike in vegetable prices may temporarily raise inflation.
RBI’s policy responses in various scenarios
Broad Theme
RBI’s Monetary Policy Response
Effectiveness
1. Supply-Side Constraints
• Interest Rate Adjustments: To reduce inflationary pressures, the RBI can increase interest rates, which can dampen overall demand, helping to alleviate food price inflation. (Example: Repo Rate Hike)
Moderate: While rate hikes can reduce demand, they do not directly address supply-side constraints like poor weather, crop failures, or logistical issues.
• Liquidity Management: Through tools like Cash Reserve Ratio (CRR), the RBI can control the money supply, limiting excess liquidity that could lead to inflationary pressures. (Example: CRR adjustment)
Moderate: While liquidity management helps control demand, it does not directly resolve supply issues like crop shortages or inefficient agricultural practices.
2. Inefficiencies in the Supply Chain
• Credit Control: The RBI’s policy of providing easy access to credit for agriculture can help farmers and businesses improve infrastructure and reduce supply chain inefficiencies. (Example: Targeted Credit)
Low: Credit control can aid in agricultural growth but does not directly address logistical inefficiencies, poor storage, or high food wastage in the supply chain.
• Priority Sector Lending: By mandating a certain percentage of loans be given to agriculture and rural sectors, the RBI can encourage improvements in rural infrastructure and logistics. (Example: PSL targets)
Moderate: This encourages investment in agriculture but does not solve the systemic issues in the supply chain, such as poor transportation and lack of cold storage.
3. Demand-Supply Imbalances
• Inflation Targeting: The RBI focuses on a specific inflation target (4% +/- 2%) to control both food and general inflation, which can help stabilize prices in times of demand-supply imbalances. (Example: Repo Rate)
Moderate: This helps manage demand-side inflation, but its effectiveness in resolving supply-side imbalances is limited.
• Forward Guidance: By providing signals about future monetary policy, the RBI can manage public expectations and help stabilize food price inflation during periods of imbalance. (Example: Policy Announcements)
Moderate: Forward guidance can help curb inflation expectations, but it doesn’t directly address structural imbalances or fluctuating demand due to changing consumption patterns.
4. Global & External Factors
• Exchange Rate Management: The RBI stabilizes the exchange rate through market interventions, helping to control import-related food price inflation, especially for edible oils and other imports. (Example: Forex reserves)
Moderate: Stabilizing the currency helps mitigate imported food inflation but does not resolve issues like global supply disruptions or rising international food prices.
• Currency Stabilization: The RBI’s efforts to intervene in the forex market to stabilize the rupee also help manage the cost of importing food, reducing the impact of price fluctuations on imported food items. (Example: Currency intervention)
Moderate: While currency stabilization is crucial, it does not prevent external shocks such as natural disasters or geopolitical tensions that influence global food prices.
5. Rising Input Costs
• Monetary Tightening: The RBI increases interest rates to reduce demand for inputs, such as fuel or fertilizers, which can help curb cost-push inflation. (Example: Repo rate hike)
Effective: Monetary tightening can help control inflationary pressures on input costs. However, it doesn’t directly affect global prices for inputs like oil or fertilizers.
• Liquidity Management: RBI uses tools like the CRR to absorb excess liquidity, reducing inflationary pressures on input costs. (Example: CRR changes)
Moderate: Helps control demand but doesn’t directly affect global price increases for raw materials or essential agricultural inputs.
6. Policy-Level Issues
• Inflation Targeting Framework: RBI follows an inflation-targeting framework, aiming to keep inflation in check through policy rate adjustments. (Example: Repo rate hikes)
Moderate: While inflation targeting helps stabilize inflation, it does not directly address policy-level issues like government intervention in food exports or import bans.
• Coordination with Fiscal Authorities: The RBI works with the government to tackle food inflation, though its primary role is monetary policy. (Example: Coordination in 2021 food inflation measures)
Moderate: Coordination between RBI and fiscal authorities is beneficial, but RBI alone cannot solve structural issues in food policy, such as pricing or export restrictions.
Way Forward:
Enhance Agricultural Productivity: Invest in sustainable farming practices, modern irrigation systems, and efficient crop management to ensure consistent food supply and mitigate price volatility.
Improve Supply Chain Infrastructure: Strengthen logistics networks to reduce food wastage, improve distribution efficiency, and minimize the impact of disruptions on food prices.
Promote Price Stability Mechanisms: Implement strategic reserves and price stabilization programs for essential food items, helping to smooth out short-term fluctuations in food prices.
Increase Digital Integration in Agriculture: Use technology to improve market access for farmers, provide real-time price data, and enable better forecasting of food production, allowing better price predictions and planning.
Strengthen Weather Forecasting & Disaster Management: Improve weather forecasting systems and develop contingency plans for adverse weather conditions to safeguard food production and prevent price spikes.
#BACK2BASICS: INFLATION
Inflation refers to the overall increase in the prices of goods and services, which results in a decrease in people’s purchasing power. In simple terms, when inflation rises, without a corresponding increase in income, you are able to buy fewer goods and services for the same amount of money, or you have to pay more for the same items.
A “rising” inflation rate means that the pace at which prices are rising is itself increasing. For example, if inflation was 1% in March, 2% in April, 4% in May, and 7% in June, this shows that the rate of price increases is accelerating over time.
Causes of Inflation
Demand-Pull Inflation: This type of inflation occurs when demand for goods and services exceeds supply. When demand is high, consumers are willing to pay more, leading to an overall increase in prices.
Cost-Push Inflation: Cost-push inflation arises from rising production costs, such as higher wages, increased raw material costs, or disruptions in the supply chain. These higher costs are passed on to consumers in the form of higher prices.
Wage-Price Inflation: This inflation occurs when there is a cycle between wages and prices. Workers demand higher wages, and businesses, in turn, raise prices to cover the increased labor costs. This can create a feedback loop where rising wages lead to rising prices, which in turn lead to further wage demands.
What are the Different Indices Through Which Food Inflation is Measured in India?
Consumer Price Index (CPI): The CPI measures the rate at which the prices of goods and services that consumers buy for personal use increase over time. It includes food, clothing, housing, transportation, medical care, and more. The CPI is categorized into four types:
CPI for Industrial Workers (IW)
CPI for Agricultural Labourers (AL)
CPI for Rural Labourers (RL)
CPI for Urban Non-Manual Employees (UNME)
Consumer Food Price Inflation (CFPI): CFPI is a part of the broader CPI and tracks the price changes of food items commonly consumed by households, including cereals, vegetables, fruits, dairy products, and meat. The Reserve Bank of India uses the CPI-Combined (CPI-C) for monitoring food inflation.
Wholesale Price Index (WPI): WPI tracks the price changes of goods sold in bulk by wholesalers to businesses. It focuses only on goods (not services) and provides insight into the supply and demand dynamics of industries, manufacturing, and construction. The WPI includes:
Primary Articles (22.62% of WPI) such as food items like cereals, pulses, vegetables, fruits, and dairy products.
Non-Food Articles, including items like oil seeds, minerals, and crude petroleum.
What are Various Government Initiatives to Control Food Inflation?
Subsidized Commodities: The government is distributing subsidized vegetables such as onions and tomatoes through its network and releasing stocks of wheat and sugar to stabilize prices.
Reduction in Import Duty: To boost domestic production, the government is encouraging pulse cultivation and reducing import duties on certain pulses to enhance local availability.
Export Bans: To ensure ample domestic supply, the government has imposed bans on wheat exports since May 2022 and on broken rice exports since September 2022, aimed at lowering domestic prices.
Ban on Stockpiling: Regulations have been introduced to limit stockpiling. For example, traders, millers, wholesalers, and retail chains can hold no more than 3,000 tonnes of wheat, while smaller retailers and shops can hold only 10 tonnes to prevent excessive stockpiling and price hikes.
Operation Greens: This initiative focuses on stabilizing the supply of Tomato, Onion, and Potato (TOP) crops year-round across the country to minimize price fluctuations and stabilize food inflation.
Floor Prices: To manage onion prices during supply shortages, the government has set a minimum export price (MEP) of $800 per tonne (₹67 per kg) for onions from October 29 to December 31, 2023, in response to rising prices due to delayed kharif onion arrivals.
MOCK DROP: India’s retail inflation is declining due to falling food prices and RBI’s rate cuts. Critically examine whether rate cuts and reduced food prices can sustainably keep inflation under control. What challenges could affect this trend in the near future?
The Union Ministry of Power is considering a policy to restrict the temperature range of new air conditioners (ACs) in India to between 20°C and 28°C.
Important Facts and Keywords related to ACs:
Efficiency Ratings: ACs have ratings like SEER (Seasonal Energy Efficiency Ratio) or EER (Energy Efficiency Ratio). A higher rating means the AC uses less power to cool the same space.
Inverter Technology: Some ACs use inverter compressors, which adjust speed instead of turning on and off repeatedly. This saves energy and keeps the room temperature more stable.
Humidity Control: ACs also help by removing moisture from the air. This keeps humidity around 40–60%, which feels more comfortable and prevents mold.
Cooling Capacity: ACs are measured in tons. A “ton” of cooling comes from the amount of heat needed to melt 1 ton (~2,000 pounds) of ice in 24 hours.
How do Air Conditioners Work?
Basic Idea: Air conditioners (ACs) work like a heat-moving machine. They take heat from inside your room and push it outside, making the room cooler. They do this using a special fluid called a refrigerant, and a system called the vapour-compression cycle.
Main Parts and What They Do:
Evaporator: This part is inside your room. The refrigerant, which is very cold here, absorbs heat from the indoor air and turns into a gas. It also removes moisture, so your room feels less humid.
Compressor: This is outside the house. It squeezes the refrigerant gas, making it very hot (about 90°C) and high-pressure. This part uses the most electricity in the AC.
Condenser: The hot gas then flows through the condenser coil outside. It releases heat into the outdoor air and turns back into a liquid.
Expansion Valve: This part lowers the pressure of the liquid refrigerant, making it cold again before it goes back to the evaporator to repeat the cycle.
Refrigerant: The refrigerant is a specially designed gas that changes state easily at low temperatures and pressures, making it ideal for absorbing and releasing heat rapidly. Modern refrigerants like R-32 or R-410A are more energy-efficient and environmentally safer than older ones like CFCs and HCFCs.
Why limit AC Temperature settings?
Energy Efficiency Data: According to the Bureau of Energy Efficiency (BEE), setting an AC to 24°C instead of a lower setting can save 6% electricity per 1°C increase.
National Impact: If adopted widely, this temperature setting could help India save 20 billion units of electricity annually.
Health Risks at Low Temperatures: Temperatures below 18°C are linked to hypertension, asthma, and respiratory infections, especially among children, the elderly, and people with weakened thermoregulation.
Evidence from Global Studies: Research in Japan, the UK, and New Zealand shows that slightly warmer indoor settings lead to better respiratory and cardiovascular health.
WHO Recommendation: The World Health Organization advises 18°C as the minimum safe indoor temperature in temperate climates.
Thermal Comfort Standards: Guidelines like ASHRAE-55 and ISO 7730 suggest optimal indoor temperatures between 20°C and 24°C for lightly clothed people, with adjustments based on local climate and culture.
Global Cooling Trends and the Need for Regulation:
Global AC Usage Growth: As of 2022, there were an estimated 2 billion air conditioners in use worldwide, with residential units tripling since 2000, especially in India and China.
Access Gap in Asia-Pacific: Despite this growth, 43% of the Asia-Pacific population still lacks access to adequate cooling solutions.
Environmental Impact: Air conditioning significantly increases electricity use and carbon emissions, especially in countries with fossil fuel-dependent grids.
India’s AC Load Projection: By 2030, India’s total connected AC load is expected to reach 200 gigawatts, requiring urgent demand management strategies.
Consumer Awareness Tools: Initiatives like default settings at 24°C and energy labelling empower consumers to make informed energy-efficient choices.
Benefits of Regulation: A regulated temperature range can help lower energy consumption, reduce peak power demand, and support public health.
[UPSC 2003] Consider the following statements:
1. Steam at 100°C and boiling water at 100°C contain the same amount of heat.
2. Latent heat of fusion of ice is equal to the latent heat of vaporization of water.
3. In an air-conditioner, heat is extracted from the room-air at the evaporator coils and is rejected out at the condenser coils.
Which of these statements is/are correct?
Options: (a) 1 and 2 (b) 2 and 3 (c) Only 2 (d) Only 3*
The Working Group on Avian Checklists has released AviList, the world’s first unified global bird checklist to standardize bird classification and support global research and conservation.
What is AviList?
Overview: AviList is the first unified global checklist of bird species, officially launched on June 12, 2025.
Who developed it: It was developed by the Working Group on Avian Checklists, with representatives from BirdLife International, the Cornell Lab of Ornithology, the International Ornithologists’ Union, the American Ornithologists’ Society, and Avibase.
Purpose: The checklist aims toeliminate confusion caused by conflicting taxonomies and to improve global coordination in bird research and conservation.
Standalone feature: AviList replaces separate resources like the IOC World Bird List and the Clements Checklist with a single, consensus-based taxonomy.
Accessibility: It is freely available at www.avilist.org and will be updated annually to reflect the latest scientific consensus.
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