Why in the News?
The Indian government recently set greenhouse gas (GHG) emissions intensity targets for key industrial sectors under its Carbon Credit Trading Scheme (CCTS). These targets apply to eight major industries, including steel, cement, aluminium, and textiles, and aim to reduce emissions per unit of production.
What is CCTS?
The Carbon Credit Trading Scheme (CCTS) allows entities—such as factories, refineries, or power plants—that emit less than their permitted carbon limits to earn carbon credits. These credits can then be traded with other entities that have exceeded their emission limits. |
What is the importance of assessing carbon targets at the economy-wide level?
- Reflects true environmental impact: Evaluating targets at the economy-wide level ensures we understand the overall reduction in greenhouse gas emissions, which is the ultimate goal of climate action.
- Enables flexible compliance: It allows efficient entities to overachieve and trade credits with less efficient ones, reducing total emissions cost-effectively. Eg: In India’s PAT scheme, cement plants exceeding targets sold energy-saving certificates to aluminium units lagging behind.
- Aligns with national commitments: It supports the evaluation of whether India is on track to meet its Nationally Determined Contributions (NDCs) and net-zero targets, beyond fragmented sectoral views. Eg: India aims to reduce emissions intensity of GDP by 45% by 2030 – a goal only visible through economy-wide analysis.
What is the PAT Scheme?
The PAT Scheme sets energy efficiency targets for large, energy-intensive industries. Companies that exceed their targets earn Energy Saving Certificates (ESCerts), which they can trade with other companies that fail to meet their targets. |
How has the PAT scheme proven effective in reducing energy intensity?
- Encouraged market-based efficiency: The Perform, Achieve and Trade (PAT) scheme allowed industries to meet energy targets using tradable efficiency certificates, creating a cost-effective compliance mechanism.
- Achieved aggregate reduction: Despite mixed results at the entity or sector level, overall energy intensity in India declined across PAT cycles, proving its system-wide impact. Eg: Between 2012–14, even as chlor-alkali sector’s intensity rose, combined data showed less energy used per unit of output.
- Enabled flexible transition: PAT helped industries adopt incremental improvements or buy credits instead of making costly in-house upgrades, ensuring participation without economic strain. Eg: Aluminium units improved production processes, while others chose certificate trading to meet targets.
Why are entity-level targets insufficient to assess emission reduction?
- Limited Scope of Impact: Targets at the entity level show progress in isolation and may miss the broader picture. For instance, even if some paper or chlor-alkali plants increase their energy use per unit of output, overall national emissions may still fall due to reductions in other sectors.
- Focus on Transactions, Not Outcomes: These targets often guide financial trades between companies rather than ensuring actual emissions reduction. A steel plant may meet its target not by cutting emissions but by buying efficiency certificates from another unit.
- Inconsistency Across Sectors: Emission reductions may vary widely across sectors. While cement and aluminium sectors may improve efficiency, others may lag. Solely relying on entity targets could misrepresent the real national decarbonisation progress.
What limits the comparison of CCTS targets with past and future benchmarks?
- Mismatch in Scope: The CCTS targets apply only to a part of India’s industrial base, making it difficult to compare them with economy-wide goals like the Nationally Determined Contributions (NDCs). Eg. CCTS covers only 8 industrial sectors, while NDCs span all sectors including agriculture and transport.
- Changing Baselines and Ambition Levels: Past schemes like PAT Cycle I had relatively modest targets. Comparing them with current CCTS goals may underestimate the urgency for stronger action aligned with net-zero by 2070. Eg. A sector that achieved 1% reduction earlier may now require over 2.5% annual reduction to stay on track.
- Different Indicators Used: Past targets often focused on energy intensity, while future goals (like NDCs) emphasise emissions intensity per GDP or value added, making direct comparison methodologically inconsistent. Eg. Comparing energy saved per unit of production vs emissions per unit of GDP distorts true climate ambition.
How do CCTS targets align with India’s NDC and net-zero goals?
- Partial Alignment with Emission Intensity Reduction: The CCTS targets aim to reduce emissions intensity in key industrial sectors, contributing to India’s NDC goal of reducing emissions intensity of GDP by 45% by 2030 (compared to 2005 levels). However, the annual reduction rateof ~1.68% in CCTS sectors is lower than the required pace for full alignment.
- Lag Behind Power Sector Decarbonisation: Compared to the power sector, which has low-cost mitigation options and a projected 3.44% annual decline in emissions intensity, the industrial sector’s slower pace (~2.53%) under CCTS may hinder the broader net-zero pathway.
- Need for Greater Sectoral Ambition: The current CCTS trajectory appears less aggressive than necessary for the 2070 net-zero target. Without scaling upambition across more sectors and tightening targets, CCTS alone cannot ensure full alignment with India’s long-term climate goals.
Way forward:
- Enhance Sectoral Ambition with Dynamic Targeting: Revise CCTS targets periodically based on economy-wide modelling aligned with India’s NDC and net-zero goals, ensuring progressively stringent emission intensity reductions across all major industrial sectors.
- Integrate Technology and Incentives: Promote adoption of clean technologies through financial incentives, carbon pricing, and capacity-building support to enable industries to decarbonize efficiently without compromising growth.
Mains PYQ:
[UPSC 2014] Should the pursuit of carbon credit and clean development mechanism set up under UNFCCC be maintained even through there has been a massive slide in the value of carbon credit? Discuss with respect to India’s energy needs for economic growth.
Linkage: The article talks about the concept of “carbon credit,” which is a fundamental component of carbon trading schemes, including India’s Carbon Credit Trading Scheme (CCTS) which is related to the demand of the question.
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| PYQ Relevance:
[UPSC 2023] Why did human development fail to keep pace with economic development in India?
Linkage: The report says that India’s low scores in areas like women’s jobs and health show a deep problem that is slowing down the country’s progress. Even though the economy is growing, women are still left behind in key areas. That’s why the report’s low ranking is a strong warning. |
Mentor’s Comment: The World Economic Forum’s Global Gender Gap Report 2025 has brought renewed attention to India’s poor performance in gender equality, ranking it 131 out of 148 countries. Despite being a global economic and digital power, the report highlights serious structural deficits in India, especially in women’s health, economic participation, and decision-making roles.
Today’s editorial analyses the World Economic Forum’s Global Gender Gap Report 2025 for India. This topic is important for GS Paper II (Social Justice) in the UPSC mains exam.
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Let’s learn!
Why in the News?
Recently, India was ranked very low in the World Economic Forum’s Global Gender Gap Report 2025, showing that there are serious and long-standing inequalities between men and women, especially in jobs and economic roles.
Why is India’s low gender gap ranking seen as a structural failure?
- Low Global Ranking in Gender Gap: According to the Global Gender Gap Report 2025, India ranks 131 out of 148 countries, reflecting persistent inequality in key areas such as economic participation and health. This ranking indicates a structural issue beyond isolated policy failures.
- Poor Female Labour Force Participation: India ranks 143rd in economic participation and opportunity, with women earning less than one-third of what men do. Female labour force participation remains below 25%, revealing systemic barriers to employment despite rising educational levels.
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What health barriers limit women’s economic participation in India?
- High Anaemia Prevalence: Nearly 57% of women aged 15–49 suffer from anaemia (NFHS-5), which weakens physical capacity, affects cognitive ability, and reduces safe maternal outcomes, ultimately restricting their ability to work or study.
- Gendered Gaps in Healthcare Access: Women, especially in rural and low-income groups, face inadequate access to reproductive health, preventive care, and nutrition, leading to poor health outcomes and lower life expectancy than men.
- Neglect of Women’s Health in Policy: Public health systems often fail to prioritise women’s specific needs, with underfunded primary care, weak maternal services, and poor sanitation, resulting in chronic health issues that hinder long-term workforce participation.
How does unpaid care work hinder gender equality and growth?
- Limits Women’s Workforce Participation: Indian women perform nearly seven times more unpaid domestic work than men (Time Use Survey), leaving little time for formal employment or skill development.
For instance, many women drop out of jobs after childbirth due to lack of childcare support.
- Undervalued in National Economy: Despite its economic value, unpaid care work is invisible in GDP calculations and often excluded from policy priorities. Countries like Uruguay have tried to measure and integrate care work into development plans to promote inclusive growth.
- Worsens Gender Inequality in Decision-Making: The burden of care responsibilities keeps women out of leadership roles and policy spaces, reinforcing their marginalisation in public and private institutions. Low representation of women in budget committees leads to underfunding of women-centric welfare schemes.
| Note: The Time Use Survey, conducted by the National Statistical Office (NSO) in India (latest available: 2019), provides valuable data on how individuals allocate time to various activities over a 24-hour period. |
Which global models can India adopt for care economy reforms?
- Uruguay’s Approach: The National Integrated Care System ensures universal access to services like childcare, eldercare, and disability assistance, aiming to reduce the unpaid care burden and promote professionalisation of care work.
- South Korea’s Model: Through expansive public investment in care services, including care vouchers and subsidised facilities, South Korea has enhanced female workforce participation and addressed the care gap in ageing and young populations.
- Nordic Countries’ Example: Nations like Sweden and Norway offer state-supported childcare, generous parental leave, and policies that promote shared caregiving roles, fostering strong welfare systems and improving gender equity.
What are the demographic risks of excluding women from the workforce?
- Rising Dependency Ratio: When women are excluded, fewer people contribute economically while more depend on them, especially as India’s population ages. Eg: By 2050, nearly 20% of Indians will be senior citizens, increasing the burden on a shrinking working population.
- Shrinking Labour Force: Low female participation limits the potential of India’s large youth base, reducing the nation’s demographic dividend. Eg: India’s female labour force participation was just 24% in 2023, compared to over 60% in many developing nations.
- Stagnant Economic Growth: Without women’s inclusion, GDP growth slows, and the country may miss massive income gains. Eg: McKinsey Global Institute estimated India could add $770 billion to its GDP by 2025 by closing gender gaps.
What are the demographic risks of excluding women from the workforce?
- Beti Bachao Beti Padhao (BBBP): Launched in 2015, this scheme aims to improve the child sex ratio, ensure education for girls, and raise awareness against gender discrimination.
- Pradhan Mantri Matru Vandana Yojana (PMMVY): This maternity benefit scheme provides financial support to pregnant and lactating women for their first childbirth, promoting nutrition and health.
- Mahila Shakti Kendra (MSK): MSKs offer support services at the grassroots level, including skill training, employment guidance, legal aid, and digital literacy to empower rural women.
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Way forward:
- Invest in Women-Centric Infrastructure: Enhance public spending on healthcare, childcare, and eldercare services, especially at the primary level, to support women’s well-being and free up time for economic participation.
- Institutionalize Gender-Responsive Policies: Implement gender budgeting, time-use surveys, and inclusive labour reforms to recognize unpaid care work and promote women’s entry into the formal workforce.
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Why in the News?
Recent U.S. domestic policies on universities, companies, and immigration are causing short-term economic pain for India. However, they also offer long-term strategic opportunities. These changes may indicate the end of Pax Americana.
Why do U.S. policy shifts offer both risks and opportunities for India?
Opportunities for India:
- Manufacturing Opportunity: As U.S.–China tensions disrupt global supply chains, India can attract companies looking to diversify production. Eg: Apple shifting iPhone assembly to India reflects the country’s growing role as a China+1 manufacturing hub.
- Chance to Implement Bold Domestic Reforms: With reduced global dependence, India can focus on strengthening its internal systems through deregulation, decentralisation, and investment in human capital. Eg: A proposed 180-day plan calls for cutting compliance burdens, empowering state governments, and granting autonomy to top institutions like IITs and IIMs.
- Higher Education and Innovation Ecosystem: As American universities face political and financial pressure, India can position its institutions as global research and innovation leaders. Eg: Granting “poorna swaraj” (full autonomy) to institutions like IISc, Ashoka, and IITs can help them climb global university rankings and drive home-grown R&D.
Risks for India:
- Decline in Remittances and Student Enrolment: Stricter U.S. immigration and visa policies can reduce the flow of Indian students and workers, affecting remittances and global exposure. Eg: H-1B visa tightening under Trump led to fewer Indian tech workers entering the U.S., impacting remittancesand brain circulation.
- Disruption to Exports and Supply Chains: Protectionist trade measures and tariffs can disrupt India’s export-dependent sectors like software, pharmaceuticals, and electronics.
What impact has U.S. research and immigration had on India’s growth?
- Skilled Immigration: Indian immigrants in the U.S. contribute significantly to tech and scientific advancement, creating reverse knowledge flow to India. Over 70% of H-1B visas (2022) were granted to Indians, many of whom later founded companies or returned with expertise. Eg: Infosys, Wipro, and TCS have benefited from U.S.-trained professionals in leadership and innovation roles.
- High Remittances Fueling Economic Stability: Indian diaspora in the U.S. contributes a major share of remittance inflows, supporting India’s foreign exchange reservesand rural economy. According to the World Bank (2023), the U.S. contributed over $23 billion in remittances to India, nearly 25% of India’s total remittance receipts.
- Advancing Indian R&D and Education: U.S. federal funding has indirectly boosted India’s scientific growth through collaborations and return migration. The National Institutes of Health (NIH) funded research contributed to 99% of new drugs approved between 2010–2019. Eg: Indian researchers trained in U.S. labs or funded via U.S.-India Science and Technology Forum (USISTEF)have driven innovation in biotech, vaccines, and AI in India.
What does a weakening Pax Americana mean for India’s strategy?
Pax Americana refers to the period of relative global peace and stability under the dominance of the United States, particularly after World War II.
- Push for Strategic Autonomy and Multipolar Engagement: As U.S. dominance declines, India must strengthen ties with multiple global powers while maintaining independence in foreign policy. India’s active role in BRICS, QUAD, and IMEC reflects efforts to diversify strategic partnerships and avoid overdependence on any one nation.
- Accelerated Domestic Reforms for Economic Resilience: With global uncertainty, India needs internal strength through deregulation, decentralisation, and investment in infrastructure and skills. PLI schemes, Digital Public Infrastructure, Make in India, and self-reliance efforts show a move toward economic resilience.
- Enhanced Role in Global Governance and Norm Setting: A weakening U.S. opens space for India to shape the global agenda in climate change, digital governance, and international trade. India’s G20 presidency and promotion of Digital Public Infrastructure as a global good underline its leadership in global norm-setting.
What are the key reforms that can boost India’s global economic standing? (Way forward)
- Simplification: Simplifying regulations for employers by reducing compliance burdens, redundant filings, and removing criminal penalties in business laws can foster a more business-friendly environment. A focused 180-day plan to cut red tape would significantly improve ease of doing business and attract global investors.
- Decentralisation: Decentralising power to States and cities by transferring funds, functions, and personnel empowers local governments to drive regional economic development. This enhances capacity for targeted innovation and creates globally competitive manufacturing ecosystems.
- Autonomy: Empowering higher education and research institutions like IITs, IISc, and IIMs through full autonomy allows them to innovate, form global collaborations, and improve their position in international rankings.
Mains PYQ:
[UPSC 2018] How would the recent phenomena of protectionism and currency manipulations in world trade affect the macroeconomic stability of India?
Linkage: The rise of protectionism, which can be associated with policies like “Make America Great Again” mentioned in the article, signifies a shift in global trade dynamics. This question asks about the impact of such phenomena on India’s macroeconomic stability, underscoring the need for India to adapt and strengthen its economy in response to these global changes.
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Why in the News?
The Indian government recently claimed that India is among the world’s most equal societies, citing a Gini Index of 25.5 from the World Bank’s Poverty and Equity Brief, which would place India as the fourth most equal country globally. However, this claim has sparked debate and criticism from economists and inequality researchers.
What is the Gini Index?
The Gini Index (or Gini coefficient) is a statistical measure of inequality within a population. It is commonly used to measure income or wealth inequality, but can also be applied to consumption inequality. |
What are the flaws in using consumption-based Gini to measure inequality?
- Underestimates Real Inequality: Consumption is usually smoother than income because high earners tend to save more rather than spend proportionately. This leads to an underestimation of inequality. Eg: A billionaire may consume modestly while saving most income, appearing similar to a middle-class consumer in surveys, but with vastly different wealth.
- Poor Cross-Country Comparability: India uses consumption-based data while most other countries use income-based Gini, making international comparisons misleading. Eg: India’s Gini of 25.5 (consumption-based) appears more equal than OECD countries, but income-based Gini (62) shows much higher inequality.
- Low survey participation: Surveys often miss the richest due to non-response or sampling issues, failing to reflect the real inequality they contribute to. Eg: The richest 1% earn disproportionately more, but their low survey participation leads to underreported inequality.
Why is the World Inequality Database seen as more reliable?
- Uses Income and Wealth Tax Data: Unlike consumption surveys, WID incorporates income tax and wealth tax data, which captures the top 1% of earners often missed in surveys. Eg: WID shows India’s income Gini Index rose from 52 in 2004 to 62 in 2023, revealing growing inequality missed by consumption-based metrics.
- Captures Extreme Disparities: WID focuses on distributional national accounts, helping identify disparities between the top 10% and bottom 50%, which Gini often misses. Eg: In 2023-24, the top 10% in India earned 13 times more than the bottom 10%, a gap accurately captured by WID.
- Global Comparability and Peer Review: WID data is transparent, methodologically standardised, and peer-reviewed by global economists, making it a trusted source for cross-country comparison. Eg: Countries like France and the US use WID for policy framing on progressive taxation and redistribution.
What are the alternatives to the Gini Index that better reflect extreme disparities?
- Palma Ratio: The Palma Ratio compares the income share of the top 10% to that of the bottom 40%, focusing directly on income inequality between the rich and poor. Eg: In countries like South Africa, the Palma Ratio highlights stark disparities that are often missed by the Gini Index.
- Theil Index (Generalized Entropy Measures): The Theil Index allows for decomposition of inequality within and between population groups like rural vs urban. Eg: In Brazil, it has been used to analyze racial and regional disparities more precisely than the Gini Index.
What are the policy risks of underestimating inequality?
- Misguided Policy Design: When inequality is underestimated, governments may prioritize growth-focused policies without ensuring inclusive development. This can lead to insufficient investment in social protection, health, and education for marginalized groups.
- Widening Socioeconomic Gaps: Underestimating inequality allows elite capture of resources and opportunities, worsening wealth concentration. This can deepen inter-generational poverty, especially for rural, low-caste, and female-led households.
- Social and Political Instability: Failure to address real inequality can fuel public discontent, protests, and even extremism. It undermines trust in institutions and weakens democratic legitimacy over time.
What are the policy risks of underestimating inequality?
- Misguided Policy Priorities: Underestimating inequality leads to policies focused only on aggregate growth, neglecting equity. Eg: India’s high GDP growth often overshadowed poor social investment in rural health and education, worsening human development gaps.
- Weak Targeting of Welfare Schemes: If inequality is not accurately measured, social protection may miss the truly needy. Eg: Exclusion errors in schemes like PDS or PM-KISAN arise because top income groups are not properly excluded due to lack of granular data.
- Rising Social Unrest and Distrust: Ignoring inequality can result in resentment, protests, and political instability. Eg: Farmer protests in India reflected deeper rural-urban income divides and perceived neglect of smallholder concerns.
Way forward:
- Improve Data Collection Methods: Strengthen surveys by combining consumption data with income tax records, and ensure better representation of top income groups to capture true inequality.
- Adopt Comprehensive Inequality Metrics: Use alternative indicators like the Palma Ratio or income shares of top 10% vs bottom 50%, alongside the Gini Index, for a more accurate assessment.
- Design Inclusive Policy Frameworks: Align fiscal policies, welfare schemes, and tax reforms with accurate inequality data to target marginalized groups effectively and reduce social and regional disparities.
Mains PYQ:
[UPSC 2024] Despite comprehensive policies for equity and social justice, underprivileged sections are not yet getting the full benefits of affirmative action envisaged by the Constitution. Comment.
Linkage: This question critically examines the effectiveness of current policies intended to reduce inequality and promote social justice. It suggests that, despite official claims or stated objectives, the intended benefits are not effectively reaching the marginalised groups, thereby raising doubts about the actual progress in reducing inequality. It reflects the broader issue of implementation challenges in governance.
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Why in the News?
Recently, a span of a 40-year-old bridge collapsed in Vadodara, Gujarat, on July 9, sending multiple vehicles into the Mahisagar river and resulting in the death of 18 people.
What causes recurring public infrastructure failures in India?
- Ageing and outdated infrastructure: Many structures like the Morbi suspension bridge (2022) in Gujarat had exceeded their intended lifespan, yet continued to be in use without adequate upgrades.
- Overuse and overload beyond design capacity: Bridges and roads originally designed for lower traffic volumes now face high urban and industrial load, as seen in the Indrayani pedestrian bridge collapse in Pune (2024) due to overloading.
- Neglect and poor maintenance: Lack of routine inspections and maintenance led to incidents like the Vadodara bridge collapse (2024), where locals had raised concerns that were ignored by authorities.
- Institutional inefficiency and under-resourcing: Municipal and local bodies often remain understaffed and underfunded, unable to monitor and maintain growing infrastructure needs, especially in peri-urban areas.
- Lack of accountability and transparency: Even after fatal accidents like the Mizoram railway bridge girder collapse (2023), failure analysis reports are rarely made public, limiting systemic learning and corrective action.
What is Peri-urban infrastructure?
Peri-urban infrastructure refers to the basic facilities and services (like roads, bridges, water supply, drainage, electricity, etc.) found in the transitional zones between urban and rural areas. |
Why is peri-urban infrastructure more prone to collapse?
- Unregulated and informal urban expansion: Peri-urban areas often develop without proper zoning laws, building codes, or infrastructure planning. This results in substandard construction, making infrastructure vulnerable to collapse. In many Indian outskirts, flyovers and water systems are built around unplanned colonies, lacking load assessment.
- Jurisdictional ambiguity and poor coordination: Peri-urban regions often fall between urban and rural governance structures, leading to confusion in responsibility for maintenance and oversight. In Delhi NCR’s fringes, conflicts between municipal bodies and panchayats delay repair and auditing of key infrastructure.
- Low visibility and weak political prioritization: These areas lack media attention and political pressure seen in core urban centres, resulting in deferred maintenance. In Hyderabad’s outer zones, repeated complaints about weakening culverts were ignored until seasonal floodingcaused failure.
How can AMRUT and UIDF improve asset upkeep?
- Focused maintenance and retrofitting: AMRUT 2.0 prioritizes the retrofitting of old urban infrastructure such as pipelines, water supply, and sewerage systems. Eg: In cities like Agra and Pune, AMRUT funding has helped upgrade outdated drainage systems to prevent floodingand infrastructure degradation.
- Targeted financial support for smaller cities: UIDF provides low-cost loans to Tier-2 and Tier-3 cities that often lack budgetary resources for upkeep. Eg: In peri-urban areas of Madhya Pradesh, UIDF enabled the repair of worn-out roads and bridges strained by rapid population growth.
- Promotion of digital monitoring and audits: Both schemes encourage the use of geo-tagging and digital tracking tools to monitor asset health and schedule timely repairs. Eg: Cities like Bhubaneswar and Surat use AMRUT-linked dashboards to track infrastructure health and flag issues before failures occur.
What gaps delay audits and accountability post-collapse?
- Jurisdictional overlap between agencies: Multiple departments—urban development, public works, and local bodies—often share responsibility for infrastructure. This leads to confusion over which authority must initiate audits after a collapse. Eg: After a flyover collapse in Hyderabad, delays occurred as both the GHMC and state PWD passed the responsibility to each other.
- Political interference and blame-shifting: In high-profile accidents, inquiries are sometimes delayed or diluted due to political pressures or attempts to shield influential contractors. Eg: In the Kolkata Vivekananda flyover collapse (2016), early accusations were politicized, stalling a clear and prompt audit process.
Way forward:
- Establish a unified statutory audit authority: Create a dedicated, independent body responsible for conducting post-collapse audits across all public infrastructure, ensuring timely investigations, clear jurisdiction, and mandatory public disclosure of findings.
- Implement real-time digital monitoring systems: Use GIS mapping, IoT sensors, and AI-based predictive maintenance tools to track structural health and alert authorities proactively, minimizing risks and improving accountability.
Mains PYQ:
[UPSC 2014] Explain how Private Public Partnership arrangements, in long gestation infrastructure projects, can transfer unsustainable liabilities to the future. What arrangements need to be put in place to ensure that successive generations’capacities are not compromised?
Linkage: The article highlights several incidents of catastrophic public infrastructure failures in India, such as a 40-year-old bridge collapse in Vadodara, a pedestrian bridge collapse in Pune, and a metro pillar collapse in Bengaluru. This PYQ is highly relevant as it directly addresses the critical themes of long-term infrastructure management, potential liabilities, and ensuring future capacity.
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Why in the News?
Recently, the Supreme Court of India has intervened in the ongoing Special Intensive Revision (SIR) of electoral rolls in Bihar, urging the Election Commission (EC) to consider documents like Aadhaar, EPIC, and ration cards as valid identity proof.
Why did the SC question Aadhaar’s exclusion from voter ID documents?
- Widespread Use for Identity Verification: The Court noted that Aadhaar is one of the most widely used and accepted documents for establishing identity in India. It questioned why Aadhaar, considered essential for obtaining various official documents, was excluded while documents like caste certificates were included.
- Relevance to Identity, Not Citizenship: The Court emphasized that the Special Intensive Revision (SIR) process is about verifying identity, not citizenship. Since Aadhaar serves that purpose effectively, its exclusion lacked justification.
- Non-Exclusivity of Document List: The Court highlighted that the Election Commission’s list of 11 acceptable documents was not exhaustive, and in the interest of justice, Aadhaar, EPIC, and ration cards should also be considered valid for voter registration.
What issues surround the timing and conduct of the SIR in Bihar?
- Short and Rigid Timelines: The Supreme Court noted that the 30-day deadlines for citizens to verify and submit documents were too short, raising concerns about procedural fairness.
- Unclear Classification of SIR: The Court observed that the Bihar SIR was neither “summary” nor “special” as defined under Section 21 of the Representation of the People Act, 1950, making the exercise appear legally ambiguous.
Why is Aadhaar controversial in proving voter citizenship?
- Not a Proof of Citizenship: The Aadhaar Act clearly states that Aadhaar is meant for identity verification, not citizenship confirmation. It can be issued to non-citizens who are residents, which makes it unreliable as evidence for voting eligibility.
- Risk of Inclusion Errors: Using Aadhaar may result in non-citizens being wrongly enrolled as voters due to data inaccuracies or misuse, thereby compromising the integrity of the electoral rolls.
- High Dependence Among Marginalised Groups: In regions like Bihar, 87% of people have Aadhaar, but few possess documents like passports or matriculation certificates. If Aadhaar is excluded, vulnerable citizens risk disenfranchisement, raising concerns about equity and access.
What are the issues related to the Adhaar Card and NPR in India?
- Overlap of Purpose and Confusion on Citizenship: While Aadhaar is officially a tool for identity verification and welfare delivery, and NPR is for creating a register of residents, their perceived linkage with citizenship screening (especially post-CAA debate) has led to widespread fear and confusion. Eg: During the 2020 NPR update, several states (e.g., West Bengal, Kerala) halted implementation, citing concerns over its potential use for citizenship determination.
- Privacy and Data Security Concerns: Both Aadhaar and NPR involve massive collection of personal data, but the legal and technological safeguards for privacy and misuse remain inadequate. Aadhaar has faced leaks, while NPR has been criticised for seeking sensitive demographic data without clear purpose. Eg: In 2018, UIDAI acknowledged multiple cases where Aadhaar data was accessible through public domains or appswithout authorisation.
- Exclusion due to Documentation Gaps: Aadhaar and NPR can inadvertently exclude individuals lacking proper documentation—especially the poor, migrants, or marginalised groups—from public services or the voter list. Eg: Reports from Jharkhand revealed cases where lack of Aadhaar linkage led to denial of PDS rations, contributing to hunger-related deaths.
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Way forward:
- Strengthen Legal Safeguards and Clarity: Enact clear legislative guidelines to distinguish the roles of Aadhaar, NPR, and citizenship documentation, ensuring they are not misused for exclusionary practices. A robust data protection law must accompany these measures.
- Promote Inclusion and Transparency: Ensure all government identity and registration drives are conducted with public awareness, grievance redressal mechanisms, and opt-out provisions for vulnerable groups, to prevent exclusion and build trust in institutions.
Mains PYQ:
[UPSC 2014] Two parallel run schemes of the Government viz. the Adhaar Card and NPR, one as voluntary and the other as compulsory, have led to debates at national levels and also litigations. On merits, discuss whether or not both schemes need run concurrently. Analyse the potential of the schemes to achieve developmental benefits and equitable growth.
Linkage: This PYQ directly relates to the essence of the statement “Consider Aadhaar, EPIC, ration card as proof” by focusing on the Aadhaar Card and the debates and implications surrounding its use as a governmental tool.
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Why in the News?
Recently, three schoolchildren lost their lives on Tuesday (July 8, 2025) when a fast-moving passenger train hit their school van at a manned railway crossing in Semmankuppam, Cuddalore district, Tamil Nadu, and dragged it for about 50 metres. The Railways should make sure that all manned level crossings have interlocked gates for better safety.
What makes non-interlocked crossings more dangerous than interlocked ones?
- Non-interlocked crossings rely solely on the gatekeeper’s alertness and manual judgment.
- Interlocked gates are linked to train signals, which only turn green if the gate is securely closed, ensuring safety.
- Human error is more likely at non-interlocked gates, leading to higher risk of accidents.
Why are non-interlocked gates still in use despite safety concerns?
- Delayed Infrastructure Projects: Projects to replace non-interlocked gates with overbridges or interlocked systems often face delays due to land acquisition and administrative hurdles. Eg: In Cuddalore, an underpass project funded by Indian Railways remained pending for over a year due to lack of clearance by local authorities.
- Resource and Budget Constraints: The cost of upgrading thousands of level crossings requires significant investment, which may be postponed due to competing budgetary priorities.
- Dependence on Manual Operation: Gatekeepers often face pressure from impatient motorists to open gates quickly, leading to protocol violations. Without automation, safety depends solely on their discretion and alertness.
How do delays in land acquisition hinder safety infrastructure projects?
- Stalls Construction of Critical Structures: Projects like railway overbridges (ROBs) and underpasses cannot begin without legal possession of land, leading to prolonged delays. Eg: In Bihar, the construction of a railway overbridge in Araria district was delayed by over 3 years due to disputes over land ownership and compensation, leaving an accident-prone level crossing operational.
- Escalates Project Costs Over Time: Delays increase material and labour costs, making projects financially unviable or deprioritised later. ROBs planned years earlier often need revised budgets due to inflation and changing land prices.
- Keeps High-Risk Crossings Operational: Until new infrastructure is built, dangerous level crossings remain in use, putting lives at risk. Eg: Many non-interlocked gates in Southern Railway zone remain active due to delayed land acquisition for safer alternatives.
What are the steps taken by the Indian Government to improve railway crossing safety?
- Phasing Out Unmanned Level Crossings (UMLCs): The Indian Railways eliminated all UMLCs on broad gauge lines by January 2020 to reduce accidents. Eg: Over 5,900 UMLCs were removed between 2014 and 2020 across Indian Railways.
- Construction of Road Overbridges (ROBs) and Underpasses: Railway and State Governments jointly fund ROBs and underpasses to eliminate level crossings altogether. Eg: The Setu Bharatam Project aims to build 208 ROBs across India to improve safety.
- Awareness and Training Programmes: Regular safety awareness drives and training for gatekeepers and the public are being undertaken. Eg: Campaigns like “Mission Zero Accident” educate local communities and railway staff about level crossing safety protocols.
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Why must Indian Railways urgently upgrade level crossings?
- Prevent Fatal Accidents Due to Human Error: Non-interlocked crossings rely on manual judgment, making them prone to errors and tragic mishaps.
- Enhance Operational Efficiency and Safety: Interlocked and automated systems ensure smoother train operations and reduce delays caused by manual gate coordination. Eg: Northern Railway’s use of interlocked gates near busy junctions like Ghaziabad has improved train punctuality and road traffic flow.
- Reduce Pressure and Risk on Gatekeepers: Manual crossings burden gatekeepers with high responsibility and risk of protocol violations under pressure from motorists.
Way forward:
- Accelerate Conversion to Interlocked Crossings: Prioritise high-risk and high-traffic areas for upgrading non-interlocked gates to fully interlocked systems with automated signalling to eliminate human error.
- Fast-Track Land Acquisition for Infrastructure Projects: Implement time-bound clearances and simplified procedures for land acquisition to ensure timely construction of overbridges and underpasses, replacing hazardous level crossings.
Mains PYQ:
[UPSC 2024] What is the technology being employed for electronic toll collection on highways? What are its advantages and limitations? What are the proposed changes that will make this process seamless? Would this transition carry any potential hazards?
Linkage: The PYQ asks about technology making a process “seamless”. The article explicitly states that interlocked gates, unlike non-interlocked systems, ensure that “train signals turn green only when gates are securely locked”. This technology-driven interlocking mechanism is presented as a “foolproof solution to prevent such fatal incidents”, as it removes the sole reliance on a gatekeeper’s alertness.
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Why in the News?
Recently the Prime Minister highlighted that India supported Namibia’s freedom not just through words, but by taking real action.
How has India’s support for Namibia’s independence shaped their present bilateral relationship?
- Early International Advocacy (1946): India was one of the first countries to raise the issue of Namibia’s independence at the United Nations in 1946. This early support positioned India as a committed ally in Namibia’s anti-colonial struggle.
- Support to SWAPO Liberation Movement: India supported the South West Africa People’s Organisation (SWAPO) by providing material and diplomatic backing. Eg: India hosted SWAPO’s first diplomatic mission, helping it gain global recognition and legitimacy.
- Solidarity through Non-Aligned Movement (NAM): India used platforms like the Non-Aligned Movement to advocate for Namibia’s decolonisation and anti-apartheid goals.
- Diplomatic Engagement Post-Independence (1986 onwards): India established formal diplomatic ties with Namibia soon after its independence. Eg: Recently PM of India recalled Dr. Sam Nujoma (Namibia’s founding father) as a “great friend of India”, indicating deep post-independence relations.
- Contemporary Strategic and Development Partnership: The historical goodwill has translated into strong current ties, such as MoUs on health, entrepreneurship, and digital payments (UPI). Eg: In 2024, Namibia signed agreements to adopt India’s UPI system and joined India-led initiatives like the Global Biofuel Alliance and CDRI.
Why is India promoting UPI and digital infrastructure in Africa?
- Strengthening Digital Public Goods Diplomacy: India aims to share its low-cost, inclusive digital platforms like UPI to empower developing nations. Eg: A technology licensing agreement was signed to enable the launch of UPI in an African country later this year.
- Enhancing South-South Cooperation and Soft Power: Promoting digital tools fosters mutual growth, strengthens India-Africa ties, and showcases India’s leadership in the Global South. Eg: India emphasized the approach to “build together, not compete” with African nations through technology collaboration.
- Creating New Economic and Strategic Opportunities: Digital infrastructure export opens markets for Indian fintech companies and strengthens strategic presence in Africa. Eg: Collaboration with a central bank in Africa boosts financial inclusion and deepens bilateral economic ties.
How is India’s Africa policy distinct from that of other global powers?
| Dimension |
India’s Africa Policy |
Other Global Powers |
Eg |
| Focus on Partnership, Not Extraction |
Emphasises co-development and local capacity building |
Often focus on resource extractionor project-linked conditionalities |
India–Ethiopia: Helped set up sugar factories and agricultural training centers. China–DR Congo: Heavy investment in mining (cobalt and copper) with limited local value addition. |
| Non-interference and Historic Ties |
Respects sovereignty; supported liberation movements historically |
Some powers have intervened for strategic interests |
India–Namibia: Supported SWAPO during its liberation struggle.
France–Mali: Military interventions in Sahel region. |
| Technology and Human Development |
Exports digital tools, education, and healthcare tech to promote self-reliance |
Focus often on physical infrastructure with tied loans or conditions |
India–Namibia: UPI digital payment rollout and MoUs in health. China–Kenya: Built railways under debt-based model. |
What is the importance of Namibia joining India-led global initiatives?
- Strengthening South-South Cooperation: Namibia’s participation enhances solidarity among developing nations and reflects mutual trust in India’s leadership on global platforms. Eg: By joining the Global Biofuel Alliance, Namibia aligns with India’s push for sustainable and clean energy transitions in the Global South.
- Boosting Regional Resilience and Climate Preparedness: Joining initiatives like the Coalition for Disaster Resilient Infrastructure (CDRI) helps Namibia build climate-resilient infrastructure and better manage disaster risks.
Why does India emphasise cooperation over competition in the Global South?
- Fostering Equal Partnerships for Sustainable Development: India builds development-focused partnerships without imposing conditions, supporting capacity building in fellow Global South nations. Eg: In 2024, India partnered with Tanzania to set up an IT Centre of Excellence and offer scholarships under the Indian Technical and Economic Cooperation (ITEC) programme, focusing on local skill development.
- Promoting Inclusive Digital Public Infrastructure: India shares its digital platforms to empower nations with affordable, scalable technology solutions. Eg: India signed an MoU with Mauritius to extend Unified Payment Interface (UPI) services, enabling secure and inclusive digital transactions to support financial inclusion.
Mains PYQ:
[UPSC 2015] Increasing interest of India in Africa has its pros and cons. Critically examine.
Linkage: This question provides a broad framework to discuss India’s engagement with Africa, allowing for an analysis of both the benefits of cooperation (as highlighted in the Namibia article) and any potential challenges or implications of India’s growing interest in the continent.
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Why in the News?
The Union Cabinet has recently approved a ₹1-lakh crore Research Development and Innovation (RDI) scheme to encourage private companies to invest more in basic scientific research.
What are the aims and design of the ₹1-lakh crore RDI scheme?
- Promote Private Investment in Basic Research: The scheme aims to shift the R&D funding balance by incentivising the private sector to invest in foundational scientific research, reversing the current trend where the government contributes around 70% of total R&D spending.
- Special Purpose Fund under ANRF: A dedicated fund will be set up within the Anusandhan National Research Foundation (ANRF), which will act as a custodian of ₹1-lakh crore and offer low-interest loans to eligible research projects.
- Single-Window Clearance Mechanism: ANRF is designed as an independent institutional body with oversight from the Ministry of Science, providing a streamlined funding mechanism for universities and research institutions.
- Targeting Mid-Stage Innovations (TRL-4 and Above): The scheme prioritises projects at Technology Readiness Level 4 or above, focusing on research that has demonstrated lab-scale feasibility and market potential, rather than early-stage, high-risk science.
Why is ANRF’s role in research funding considered innovative?
- Single-Window Clearance for R&D Funding: The Anusandhan National Research Foundation (ANRF) offers a unified platform to fund research across academic and industrial institutions, reducing bureaucratic delays. Eg: Instead of applying to multiple agencies like DST, DBT, and CSIR, universities can now approach ANRF for consolidated support.
- Private Sector Integration in Basic Research: ANRF aims to source 70% of its budget from private players, incentivising corporate investment in long-term, foundational science rather than only market-ready products. Eg: Tech companies can fund AI or clean energy research at IITs through ANRF, blending commercial interest with academic innovation.
- Bridging Academic-Industry Gaps: By acting as a funding bridge between universities, startups, and industries, ANRF fosters collaboration that accelerates the conversion of research into scalable solutions. Eg: A university developing a green hydrogen prototype can partner with a renewable energy firm under ANRFguidance and funding.
How does the TRL-4 condition affect R&D inclusivity?
- Excludes Early-Stage Fundamental Research: The requirement of Technology Readiness Level-4 (TRL-4) support means only projects with demonstrated application potential are eligible. This excludes TRL-1 to TRL-3 projects, which involve basic, foundational research. Eg: A university lab studying the quantum behaviour of materials may be denied funding despite its long-term potential.
- Narrows Innovation Pipeline: Focusing only on mid-to-late stage research limits the scope for high-risk, high-reward innovation, which often begins at lower TRLs. This curbs diverse and disruptive innovations from entering the ecosystem. Eg: Internet and GPS started as risky low-TRL military projects—India might miss such breakthroughs by ignoring early research.
What global lessons can India adopt to boost core innovation?
- Invest in Early-Stage Research through Public Funding: Countries like the United States and Germany fund basic science heavily through institutions like the NSF and Max Planck Society, recognising that core innovation often starts at low Technology Readiness Levels (TRLs). Eg: The U.S. government’s early funding of ARPANET (precursor to the Internet) shows how foundational research can lead to transformative technologies.
- Link Academia, Industry, and Government: Nations such as South Korea and Israel foster strong collaboration between universities, industries, and the state to accelerate innovation from lab to market. Eg: South Korea’s “Innovation Clusters” connect academic research with industrial application, leading to global tech giants like Samsung.
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Why does brain drain persist despite new research schemes?
- Limited Research Infrastructure and Bureaucracy: Many Indian institutions lack state-of-the-art labs, smooth funding access, and administrative efficiency, discouraging cutting-edge work. Eg: A 2023 study by IISc found that over 40% of PhD graduates in STEM preferred postdoctoral positions abroad due to better facilities and research environments.
- Lack of Competitive Salaries and Academic Freedom: Indian researchers often face lower salaries, rigid hierarchies, and limited autonomy compared to global peers. Eg: According to a DST report, Indian scientists earn 3–4 times less than those in OECD nations, prompting talent to settle in countries like the US and Germany.
- Weak Industry-Academia Collaboration: Private sector investment in R&D is low, leading to few applied research opportunities or innovation ecosystems. Eg: In South Korea, over 75% of R&D is industry-funded, whereas India’s share is just around 37%, limiting prospects for applied researchers.
Way forward:
- Strengthen Research Ecosystems and Autonomy: Invest in world-class infrastructure, streamline funding mechanisms, and provide greater academic freedom to scientists and institutions to pursue innovative research without bureaucratic hurdles.
- Enhance Industry Collaboration and Incentives: Foster stronger industry-academia linkages by offering tax benefits, matching grants, and innovation clusters to attract private R&D investment and create lucrative opportunities for researchers in India.
Mains PYQ:
[UPSC 2024] What are the intellectual property rights with respect to life materials? Although, India is second in the world to file patents, still only a few have been commercialized. Explain the reasons behind this less commercialization.
Linkage: The article discusses the Union Cabinet’s approval of a ₹1-lakh crore Research Development and Innovation (RDI) scheme aimed at incentivizing the private sector to invest in basic research. This PYQ directly addresses the challenge of commercialization of patents in India, a critical bottleneck in the country’s innovation ecosystem that the implicitly highlights by article.
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Why in the News?
Recently, for the first time ever, the Supreme Court of India has introduced a reservation policy for Scheduled Castes (SCs) and Scheduled Tribes (STs) in hiring and promoting its non-judicial staff, such as assistants and attendants.
What is the importance of the Supreme Court’s internal reservation policy?
- Bridges the Gap Between Principle and Practice: For decades, the Court had delivered landmark judgments on affirmative action, but hadn’t applied those standards to its own staff. Eg: Judgments like Indra Sawhney and M. Nagaraj shaped national reservation policy, but internal implementation lagged until the 2025 reform.
- Promotes Social Inclusion Within the Judiciary: By providing 15% reservation for SCs and 7.5% for STs in administrative posts, the Court ensures better representation of marginalised communities within its own ecosystem. Eg: Of the 1,280 reserved posts, the majority are for junior assistants and attendants, opening real job opportunities for disadvantaged groups.
Why was the Court late in applying affirmative action to its staff?
- Lack of Leadership Will: The implementation was delayed due to the absence of decisive leadership within the Court to prioritise internal reforms. Eg: It took Chief Justice B.R. Gavai, the second Dalit CJI in the Court’s history, to initiate the reform in 2025, showing how transformational leadership can overcome systemic inertia.
- Contradiction Between Principle and Practice: Despite supporting reservations through judgments like Indra Sawhney and M. Nagaraj, the Court did not extend similar benefits to its own non-judicial staff until now.
- Institutional Inertia and Exceptionalism: For nearly three decades since R.K. Sabharwal v State of Punjab (1995), the Court’s inaction on internal reservations reflected a reluctance to challenge status quo. Eg: While government departments and many High Courts had implemented SC/ST quotas, the Supreme Court remained an exception, showcasing negative exceptionalism despite advocating for equality externally.
How have previous rulings influenced India’s reservation system?
- R.K. Sabharwal (1995): Shifted the system from vacancy-based to post-based rosters to prevent exceeding the 50% quota cap.
- M. Nagaraj (2006): Upheld reservation in promotions but required data on backwardness and administrative efficiency.
- Jarnail Singh (2018): Removed the need to prove backwardness again for SCs/STs already listed.
- Davinder Singh (2024): Allowed sub-classification within SCs/STs, affirming substantive equality over formal equality.
Who led the push for reservation reform in the Supreme Court?
- Chief Justice B.R. Gavai: Only the second Dalit CJI in history, he recognized the disconnect between the Court’s rulings and its internal practices and acted to correct it. Gavai also reportedly supports extending reservations to OBCs and other marginalized groups in the future.
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What challenges lie ahead in expanding the reservation to other groups?
- Legal Ambiguity: Extension of reservations to OBCs, PwDs, and others lacks clear policy frameworks and quota specifications. Eg: The July 2025 Gazette mentions new categories but no defined implementation.
- Institutional Inertia: Bureaucratic delays and reluctance to change slow down the adoption of new reservation measures. Eg: It took decades after R.K. Sabharwal (1995) to implement SC/ST reservations.
- Balancing Equity and Efficiency: Concerns over merit and administrative efficiency may resist expansion of affirmative action. Eg: M. Nagaraj (2006) required data on backwardness and efficiency, which may be hard to apply internally.
Way forward:
- Institutionalise Inclusive Policies: Finalise and implement a comprehensive reservation framework within the Supreme Court, ensuring clarity, transparency, and consistency with government norms for SCs, STs, OBCs, PwDs, and other eligible groups.
- Strengthen Monitoring and Accountability: Establish a diversity oversight mechanism within the judiciary to track representation, address grievances, and ensure timely implementation of reservation provisions.
Mains PYQ:
[UPSC 2024] Despite comprehensive policies for equity and social justice, underprivileged sections are not yet getting the full benefits of affirmative action envisaged by the Constitution. Comment.
Linkage: The concept of “affirmative action,” which is the foundation for reservation policies in India. The Supreme Court has been instrumental in shaping the contours of affirmative action through its landmark judgments over the years.
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Why in the News?
India is seeing a worrying rise in people being forced to leave their homes due to climate change along its coasts, revealing serious gaps in how the country manages the environment and supports affected communities.
What are the socio-economic impacts of coastal climate change?
- Displacement of Coastal Communities: Rising sea levels, saltwater intrusion, and erosion force people from traditional coastal villages to resettlement colonies. Eg: In Satabhaya, Odisha, entire villages have been submerged, displacing residents with little access to sustainable livelihoods.
- Loss of Traditional Livelihoods: Coastal degradation affects fishing and agriculture, disrupting long-standing economic systems. Eg: In Honnavar, Karnataka, fishing communities face livelihood loss due to mangrove destruction and tourism development.
- Forced Migration to Urban Informal Sectors: Displaced people migrate to cities and enter unprotected labour markets, often in exploitative conditions. Eg: Many end up as construction or brick kiln workers in cities like Mumbai or Chennai, without labour rights.
- Labour Exploitation and Gender Vulnerability: Migrants, especially women, face debt bondage, abuse, and trafficking due to informal employment and lack of legal safeguards. Eg: Displaced women entering domestic work are underpaid and vulnerable to exploitation.
- Social Inequality and Lack of Legal Protection: The absence of targeted legal frameworks leads to exclusion from welfare schemes and labour protections, worsening socio-economic inequality. Eg: Existing laws like the BOCW Act, 1996, do not cover climate migrants, leaving them unprotected.
How does climate-induced displacement test India’s democratic values?
- Right to Life and Dignity (Article 21): Climate displacement challenges the constitutional guarantee of life with dignity, as displaced communities often lack shelter, healthcare, and livelihood.
- Denial of Free, Prior, and Informed Consent (Article 19(1)(a)): Many infrastructure and tourism projects along the coast proceed without consulting local communities, violating their freedom of expression and participation in governance.
- Suppression of Protest and Association (Article 19(1)(b) and 19(1)(c)): Environmental defenders and activists resisting unjust displacement face police action, surveillance, and criminalisation, undermining their freedom to protest and form associations.
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Why is a legal framework for climate migrants essential?
- To Recognise and Protect the Rights of the Displaced: Climate migrants often lose access to housing, work, and basic services. A legal framework ensures their right to life and dignity is upheld under Article 21 of the Constitution. Eg: Villagers displaced from Satabhaya, Odisha, lack legal recognition as climate migrants, preventing access to structured rehabilitation.
- To Fill Gaps in Existing Laws and Policies: Current laws like the Disaster Management Act, 2005 and CRZ Notification, 2019 focus on emergency response or environmental regulation, not long-term rehabilitation or labour rights. Eg: The NAPCC identifies vulnerability but has no mechanism to integrate displaced people into labour or housing policies.
- To Prevent Labour Exploitation and Ensure Social Justice: Without legal safeguards, climate migrants, especially in urban informal sectors, face wage theft, abuse, and gendered violence. Eg: Migrants working in brick kilns or as domestic workers in cities remain outside labour codes, exposing them to exploitation.
What is the role of local movements in protecting coastal communities?
- Grassroots Resistance Against Destructive Projects: Local movements mobilize communities to protest against unsustainable infrastructure and industrial projects that threaten coastal ecosystems. Eg: The Save Satabhaya campaign in Odisha resisted sea-erosion-driven displacement and demanded proper rehabilitation.
- Advocacy for Environmental Justice and Rights: These movements highlight environmental injustices, defend the livelihoods of traditional communities, and demand informed consent and legal protection. Eg: Pattuvam Mangrove Protection Movement.
- Challenging Development Narratives and Policy Gaps: Local struggles question top-down development policies, push for sustainable alternatives, and expose policy loopholes that ignore climate and social impacts. Eg: Protests against the Adani port expansion at Ennore Creek, Tamil Nadu.
Which reforms can ensure rights-based climate migration policies? (Way forward)
- Legal Recognition of Climate Migrants: Integrate climate-induced displacement into national migration and disaster policies to ensure affected individuals are officially recognized and protected under law.
- Labour Code Reforms for Informal Workers: Amend existing labour laws to include climate migrants, especially those in vulnerable sectors like construction and domestic work, ensuring fair wages, social security, and workplace protections.
- Participatory Coastal Zone Management: Redesign Coastal Regulation Zone (CRZ) rules to prioritize ecological sustainability and the rights of local communities, with mandatory community consent before approving commercial projects.
Mains PYQ:
[UPSC 2024] What is sea surface temperature rise? How does it affect the formation of tropical cyclones?
Linkage: The article highlights “rising seas, saltwater intrusion” and “coastal degradation” as impacts of climate change. This question directly relates to a key oceanic phenomenon influenced by climate change and its effect on extreme weather events like cyclones.
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Why in the News?
Women-led MSMEs are a key part of India’s economic growth, but they still remain underserved. Even though they make up 20% of all registered MSMEs, they contribute only 10% of the total income and receive disproportionate credit and lack of support.
Why do women-led MSMEs face persistent credit gaps?
- Discriminatory Credit Disbursement: Women face a higher credit gap (35%) compared to men (20%), as per SIDBI reports. Eg: Despite applying for ₹10 lakhs in business loans, many women entrepreneurs receive only ₹6.5 lakhs, limiting their operational expansion.
- Lack of Collateral and Property Ownership: Many women lack land or asset ownership, making it difficult to meet banks’ collateral requirements. Eg: A rural woman running a tailoring unit may not own property, so her loan request is denied despite good business potential.
- Lower Financial Literacy: Many first-generation women entrepreneurs, especially in rural areas, lack awareness of financial schemes and documentation processes. Eg: Women in small towns often don’t know how to access PMMY or Stand-Up India loans, resulting in underutilisation of available credit.
- Gender Bias in Credit Risk Assessment: Financial institutions often perceive women as risky borrowers, especially if they operate in informal sectors.
- Overdependence on Informal Credit Sources: Due to a lack of formal access, many women rely on moneylenders, who charge high interest rates and offer no legal protection. Eg: In the absence of bank loans, women-led microenterprises may borrow from informal lenders at 24% interest, leading to debt traps.
What limits the effectiveness of schemes like PMMY?
- Low Sanction-to-Application Ratio: While a high number of women open loan accounts, the actual sanctioned amount is disproportionately lower. Eg: In 2024, women held 64% of PMMY accounts, but received only 41% of the total disbursed amount, reflecting a gap in meaningful financial access.
- Administrative Inefficiencies: Delays and inconsistencies in processing applications, verification, and disbursal reduce scheme impact.
- Lack of Awareness: Many potential beneficiaries, especially in rural or semi-urban areas, are unaware of PMMY’s features or how to apply. Eg: Women entrepreneurs with informal businesses often fail to access collateral-free loans due to absence of facilitation from banks or local agencies.
How does low financial literacy hinder women entrepreneurs?
- Inability to Navigate Formal Banking Systems: Lack of knowledge in budgeting, credit scores, or interest rates discourages women from applying for loans. Eg: First-generation entrepreneurs in rural areas avoid formal credit channels and depend on informal moneylenders with high-interest rates.
- Limited Confidence in Business Decision-Making: Low financial skills reduce confidence in investment planning, profit calculation, and risk management, hampering business growth. Women running micro-enterprises often hesitate to expand operations or apply for working capital loans, fearing repayment complexities.
What is the role of the Udyam Assist Portal in women’s empowerment?
- Formal Recognition of Informal Enterprises: The portal helps register Informal Micro Enterprises (IMEs), especially women-led ones, bringing them into the formal financial ecosystem. Eg: In 2024, 70.5% of IMEs registered on the portal were women-owned, enabling access to priority sector lending.
- Improved Access to Formal Credit: By assigning a Udyam Registration Number, it enables collateral-free loans and better eligibility under various government credit schemes. Eg: Registered women entrepreneurs can now avail benefits under schemes like PMMY and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
- Boost to Employment and Income Generation: The portal supports women in starting and scaling up their enterprises, thus enhancing livelihood security and job creation. Eg: Women-led IMEs contributed over 70.8% to employment generation in the informal micro-business segment.
Which reforms can improve credit access for women-led IMEs? (Way forward)
- Expand Collateral-Free Credit Schemes: Widen the reach of schemes like PMMY and CGTMSE with targeted provisions for first-generation women entrepreneurs and flexible documentation norms. Eg: Lower the threshold for loan amounts and simplify eligibility for Udyam-registered IMEs.
- Strengthen Financial Literacy and Credit Counselling: Launch grassroots training programmes in regional languages to raise awareness about credit products, budgeting, and digital banking. Eg: Tie-up with SHGs and local NGOs to educate women in rural and semi-urban areas.
- Mandate Gender-Sensitive Banking Practices: Instruct public and private banks to set quotas for women-led MSME lending, and monitor disbursal with gender-segregated data. Eg: Introduce incentive-based targets for bank branches lending to women-run enterprises.
Mains PYQ:
[UPSC 2021] Can the vicious cycle of gender inequality, poverty and malnutrition be broken through microfinancing of women SHGs? Explain with examples.
Linkage: The article explicitly highlight the how government schemes like the Pradhan Mantri MUDRA Yojana (PMMY) aim to support self-employment and financial independence for women, which aligns with microfinancing efforts. This question is highly relevant as it directly addresses the effectiveness of “microfinancing of women” as a tool for empowerment and breaking negative societal cycles.
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Why in the News?
India’s household savings rate fell to 29.7% of GDP in 2022–23, the lowest level in 40 years, down from 34.6% in 2011–12.
What led to the decline in household financial savings in India?
- Rise in Consumption Expenditure: After the COVID-19 pandemic, households increased spending on consumer durables, travel, and lifestyle, reducing the capacity to save.
- High Inflation: Persistent rise in prices of essentials like food, fuel, and healthcare eroded disposable income and limited savings.
- Shift Towards Riskier Financial Assets: Investments in mutual funds and equities increased, with SIP contributions rising significantly, while traditional savings like fixed deposits declined.
- Slow Income Growth and High Interest Rates (Fisher Effect): Stagnant wages and low nominal income growth, coupled with high interest rates and loan EMIs, reduced household savings potential.
- Rising Household Debt: Household liabilities reached 6.4% of GDP in FY24, due to more borrowing for housing, education, and personal loans.
- Reversal of COVID-Era Forced Savings: Savings spiked during lockdowns but dropped sharply as economic activity resumed and pent-up demand surged.
Why is the shift to financial assets important for capital formation?
- Improves Resource Mobilisation: Financial assets like deposits, mutual funds, and pension funds channel household savings into productive sectors, supporting investment and infrastructure growth.
- Enhances Financial Intermediation and Efficiency: Financial institutions act as intermediaries, allocating savings to sectors with higher returns and productivity, ensuring efficient capital use. Eg: Banks mobilise savings into loans for MSMEs, which contribute significantly to employment and GDP.
- Reduces Idle Capital and Boosts Formal Economy: Unlike physical assets (like gold and real estate), financial assets contribute to the formal economy, increasing credit availability and financial inclusion. Eg: Shift from gold to digital savings accounts increases liquidity and boosts credit growth in the economy.
How has rising household debt impacted financial stability?
- Increased Vulnerability to Economic Shocks: High debt levels reduce households’ ability to absorb income shocks (like job loss or medical emergencies), leading to loan defaults and stress on financial institutions. Eg: During the COVID-19 pandemic, many households defaulted on EMIs due to income loss, affecting NBFCs and banks.
- Reduced Net Financial Savings: Growing liabilities shrink the net financial savings rate, limiting the funds available for productive investments and weakening domestic capital formation. Eg: In FY24, household liabilities rose to 6.4% of GDP while financial savings fell to 5.1%, a four-decade low.
- Pressure on Banking and Credit Systems: High levels of unsecured loans (like personal and gold loans) increase credit risk, prompting regulatory tightening and affecting credit flow to the economy. Eg: RBI imposed stricter norms on personal loans in FY25 to prevent systemic risk from unsecured lending growth.
What steps can improve savings among rural and low-income groups?
- Promote Micro-Savings Products: Introduce low-ticket savings schemes tailored for daily or weekly contributions. Eg: The PM Jan Dhan Yojana encourages basic savings with zero-balance accounts.
- Provide Government-Backed Guarantees and Incentives: Offer interest subsidies, insurance cover, or guaranteed returns to build trust among low-income savers. Eg: The Kisan Vikas Patra and Public Provident Fund (PPF) offer guaranteed returns with sovereign backing.
- Expand Financial Literacy Campaigns: Run focused awareness drives on budgeting, saving, and investment options in local languages. Eg: RBI’s Financial Literacy Week and SEBI’s village workshops educate people on safe saving practices.
- Leverage Digital and Fintech Solutions: Use mobile wallets, micro-investing apps, and digital payment systems to make saving more accessible. Eg: Platforms like Paytm Payments Bank and Airtel Payments Bank offer micro-savings and insurance.
- Revamp and Strengthen Post Office Schemes: Modernise postal savings with better accessibility, digital interface, and doorstep banking. Eg: Rural Post Offices now offer core banking services, enabling safer and formal saving options.
- Introduce Default Saving Options (Behavioral Nudges): Implement opt-out pension schemes or auto-enrollment in saving plans for informal workers. Eg: The Atal Pension Yojana encourages informal sector workers to save for retirement through auto-debits.
Way forward:
- Develop a National Household Savings Strategy: Create a coordinated policy framework across ministries with clear targets, integrating financial literacy, product innovation, and social security measures for underserved populations.
- Encourage Inclusive Fintech Innovations: Promote user-friendly micro-investing platforms, AI-driven financial guidance, and blockchain-based savings tools to enable secure, transparent, and accessible savings for rural and low-income households.
Mains PYQ:
[UPSC 2017] Among several factors for India’s potential growth, savings rate is the most effective one. Do you agree? What are the other factors available for growth potential?
Linkage: The artilce explicitly state that India’s gross domestic savings rate fell to its lowest in four decades (29.7% of GDP in 2022-23). This question directly related to the importance of the savings rate for India’s growth, which aligns with the concern over falling household savings.
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Why in the News?
Prime Minister Narendra Modi’s multi-country diplomatic tour Ghana, Trinidad and Tobago, Argentina, and onward to Brazil and Namibia signals a strategic shift in India’s foreign policy toward deepening its engagement with the Global South.
What were the key outcomes of recent bilateral visits to Global South nations?
- Upgraded Strategic Partnerships: India and Ghana elevated their ties to a Comprehensive Partnership, focusing on making Ghana a “vaccine hub”for West Africa.
- Pharmaceutical Cooperation: In Trinidad and Tobago, India signed an MoU on Indian Pharmacopeia to improve access to quality and affordable generic medicines.
- Energy and Mineral Collaboration: In Argentina, India expanded cooperation on critical minerals and tapped into Argentina’s vast reserves of shale gas and oil.
Why is there a renewed focus on ties with the Global South?
- To Build an Alternative to the Global North-Dominated Order: India aims to create a more balanced and representative global system by deepening ties with developing countries. Engagements with Argentina, Ghana, and Trinidad & Tobago highlight efforts to diversify partnerships beyond traditional Western powers.
- Shared Historical and Political Bonds: Many Global South nations, like India, experienced colonial rule and have supported platforms like the Non-Aligned Movement. Eg: India and Brazil co-founded the IBSA and BRICS groupings to promote Global South interests.
What role do India-led initiatives play in global development efforts?
- Providing Affordable Healthcare and Pharmaceuticals: India supports access to low-cost generic medicines and vaccine equity. Eg: India’s pharma diplomacy during COVID-19 (under Vaccine Maitri) supplied vaccines to over 70 countries, strengthening health security.
- Promoting Clean and Renewable Energy Access: India provides leadership in expanding clean energy adoption among developing countries. Eg: The International Solar Alliance (ISA) supports solar projects in sunshine-rich yet energy-poor nations across Africa and Asia.
- Driving Digital Transformation in Governance: India shares its experience in digital identity, payment systems, and public service delivery to empower other nations. Eg: India’s Digital Public Infrastructure (DPI), including Aadhaar, UPI, and DigiLocker, is being adopted in countries like Sri Lanka and Kenya.
- Solutions to Global Challenges: India offers digital public infrastructure, affordable pharmaceuticals, and disaster resilience frameworks tailored for developing nations. Eg: The Coalition for Disaster Resilient Infrastructure (CDRI) is being promoted as an India-led solution.
How is the diaspora being used to strengthen international relations?
- Acting as Cultural and Political Bridges: The diaspora helps promote India’s soft power by strengthening cultural, linguistic, and historical ties with host countries. Eg: In Trinidad & Tobago, India acknowledged the Indian-origin ancestry of its leaders to deepen people-to-people diplomacy.
- Boosting Economic and Technological Collaboration: Diaspora members often hold key positions in business, academia, and innovation, facilitating trade, investment, and knowledge exchange. Eg: Indian tech professionals in the U.S. and UK have helped foster technology partnerships and startup ecosystems.
- Mobilising Political Support for India’s Strategic Interests: A well-integrated diaspora can influence foreign policy and legislative advocacy in favour of India. Eg: Indian-American lawmakers have supported stronger India-U.S. defense and trade ties in the U.S. Congress.
Way forward:
- Institutionalise Diaspora Engagement through Dedicated Platforms: Strengthen initiatives like Pravasi Bharatiya Divas, Overseas Indian Facilitation Centre (OIFC), and Global Pravasi Rishta Portal to maintain structured dialogue and collaboration with the diaspora.
- Leverage Diaspora for Strategic Economic and Diplomatic Outreach: Encourage diaspora-led investments in priority sectors (like healthcare, education, digital tech) and empower diaspora communities to act as cultural ambassadors and policy influencers in multilateral forums.
Mains PYQ:
[UPSC 2019] The long-sustained image of India as a leader of the oppressed and marginalised Nations has disappeared on account of its new found role in the emerging global order”. Elaborate.
Linkage: This question directly related to India’s historical and contemporary role as a leader among “oppressed and marginalised Nations,” which is synonymous with the “Global South” or “developing world” that the five-nation tour focuses.
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Why in the News?
On July 1, 2025, India marked eight years since the launch of the Goods and Services Tax (GST), but the occasion came with worrying signs for the economy. GST collections in June dropped to ₹1.85 lakh crore, the lowest in four months, and grew by just 6.2% year-on-year, the slowest growth in four years.
What do low GST collections reveal about the economy and system efficiency?
- Sluggish Economic Activity: As GST is a consumption-based tax, low collections indicate reduced demand and consumption, reflecting a slowdown in economic growth.
- Tax System Inefficiencies: The marginal growth in net collections (just 3.3% after refunds) points to loopholes in compliance, delayed refunds, and inefficiencies in enforcement and administration.
- Weak Revenue Buoyancy: Revenue from domestic transactions rose only 4.6%, barely outpacing inflation, showing limited buoyancy in the tax system despite a stable tax base.
Why is the exclusion of fuel from GST debated?
- Revenue Autonomy for States: Fuel taxes are a major independent revenue source for State governments. Including fuel under GST would shift this revenue to the GST pool, which is shared with the Centre, reducing the States’ financial autonomy.
- Undermines ‘One Nation, One Tax’ Goal: Excluding key commodities like petrol and diesel creates fragmentation in the GST system, violating the principle of tax uniformity. Eg: A truck transporting goods across states pays different fuel taxes, adding to logistics costs and compliance burden.
- Public Demand for Price Rationalisation: Including fuel under GST could reduce retail prices, as GST rates are lower than the combined excise + VAT. This is especially crucial during inflationary periods. Eg: If petrol (currently taxed ~100%) comes under the 28% GST slab, it could make fuel significantly cheaper for consumers.
What does “fewer GST slabs” mean?
- It means merging some of these tax rates to move toward a simpler, more uniform GST system, such as: Possibly combining 12% and 18% into a single standard rate.
- Current GST Structure: India has multiple GST slabs: 5%, 12%, 18%, 28%. Plus 0% (exempt) and special rates on certain goods/services.
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How will fewer GST slabs improve tax efficiency?
- Simplifies Compliance for Businesses: Fewer slabs reduce confusion, errors in tax calculation, classification, and filing, especially for small businesses. Eg: A product like packaged snacks currently attracts different GST rates depending on branding, merging slabs avoids such disputes.
- Reduces Tax Evasion and Litigation: Multiple slabs create room for misclassification and disputes over applicable rates. Fewer rates lead to clearer guidelines and fewer loopholes. Eg: Footwear priced above ₹1,000 is taxed at 18%, while below ₹1,000 it’s 5%—leading to price manipulation.
- Boosts Consumption and Revenue Predictability: A simplified rate structure improves consumer confidence, reduces cascading effects, and encourages spending, improving overall collections. Eg: Countries like Singapore (7%) or New Zealand (15%) with uniform GST systems report higher compliance and stable revenue.
What is the future of the GST Compensation Cess?
- Originally meant to compensate States for GST losses for 5 years, extended till March 2026 to repay COVID-related borrowings. With its purpose served, it should be phased out rather than absorbed into GST rates.
- Removing the cess will restore trust, reduce tax burden, and may stimulate urban consumption.
Why is fiscal responsibility crucial for GST reforms?
- Ensuring fiscal sustainability: Sustainable subsidies and managing the compensation burden are essential for maintaining healthy public finances. Eg: During COVID-19, the Centre had to borrow extensively to compensate States, leading to a rise in debt levels.
- Strengthening Centre–State trust: Responsible fiscal conduct by both the Centre and States builds trust, which is critical for cooperative federalism. The GST Council functions best when transparency is ensured and non-shareable cesses are minimized to allow a higher share of central taxes to States.
- Enabling long-term tax reforms: Fiscal prudence enables the government to invest in long-term reforms such as rationalising GST slabs, strengthening IT infrastructure, and introducing compliance incentives. These efforts can improve tax buoyancy and offset short-term revenue losses.
How can the Centre–State balance be ensured? (Way forward)
- Enhancing States’ Share in Central Taxes: The Centre should increase devolved funds under the Finance Commission framework to compensate for GST-linked revenue losses, especially if fuel and alcohol are brought under GST. Eg: Raising the tax devolution share beyond the current 41% can empower States financially.
- Strengthening GST Council’s Cooperative Mechanism: Regular, consensus-based decision-making in the GST Council can improve Centre-State trust and ensure shared ownership of reforms. Eg: Joint committees for rate rationalisation or revenue monitoring can enhance transparency and equity.
Mains PYQ:
[UPSC 2020] Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions?
Linkage: The article explicitly states that the GST Compensation Cess was extended until March 2026 to repay loans taken by the Centre to compensate States, specifically due to COVID-19 having disrupted revenues. The question directly delves into the compensation mechanism, its impact due to the pandemic, and the resulting “federal tensions”, which aligns perfectly with the source’s discussion on the Centre-State fiscal relationship regarding GST.
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Why in the News?
The Iran-Israel conflict has drawn global attention for its impact on oil prices, but a less visible and equally serious issue is emerging in fertiliser supply, which poses a significant risk to farming and food security in India.
What are the fertiliser security risks for India amid geopolitical conflicts?
- Disruption of Import Routes: India relies heavily on fertiliser imports from Gulf countries like Qatar, Saudi Arabia, and Oman. These imports pass through the Strait of Hormuz, a key shipping route vulnerable to blockades during conflicts like the Iran-Israel standoff. Eg: A naval blockade in the Strait could delay shipments of urea and DAP, affecting timely supply during sowing seasons.
- Volatile Global Prices: Geopolitical tensions raise the prices of natural gas (used to produce urea) and finished fertilisers. Eg: A conflict-induced surge in natural gas prices increases the cost of domestic urea production, straining India’s fertiliser subsidy bill.
- Dependence on Conflict Zones: India imports 100% of MOP (Muriate of Potash), including from Belarus and Israel, both affected by global instability. Eg: Escalation in the Iran-Israel conflict can disrupt MOP imports, impacting crops like sugarcane and cotton that need potash-based fertilisers.
What lessons from the Russia-Ukraine crisis remain unaddressed?
- Lack of Strategic Buffer Stocks: Despite 2022 supply disruptions, India still lacks a fertiliser buffer stock policy or minimum stocking norms for critical imports like DAP and MOP. Eg: During peak sowing seasons (like Kharif), 30–45 days of operational stock is inadequate to absorb external shocks.
- Failure to Diversify Import Sources Meaningfully: While India talks of diversification, it continues to rely heavily on Gulf countries and politically unstable regions. Eg: After disruptions in nitrogen and potash from Russia and Belarus, the current dependence on Israel and Jordan for DAP remains high, risking repetition.
- Reactive Rather than Proactive Policymaking: The policy response has focused more on short-term procurement than long-term resilience building through joint ventures, domestic innovation, or alternative fertilisers. Eg: No significant scaling of nano, bio or organic fertilisers occurred post-2022, leaving India stuck with high subsidy bills for synthetic inputs.
Why should fertilisers be part of India’s national security planning?
- Critical for Food Security: Fertilisers are essential for sustaining agricultural output in an input-intensive farming system. Eg: Disruptions in urea or DAP supply during sowing seasons can directly impact crop yields and food availability.
- Vulnerability to Geopolitical Shocks: Heavy reliance on imports from unstable regions exposes India to external risks.
- Impact on Economic and Rural Stability: Fertiliser shortages or price hikes raise subsidy burdens and can lead to rural distress.
What are the steps taken by the Indian government?
- Boosting Domestic Production: Reviving closed urea plants (e.g., Gorakhpur, Sindri, Talcher) to achieve 90% urea self-sufficiency by 2025. Focus on reducing import dependency for nitrogen-based fertilisers.
- Diversifying Import Sources: Forming long-term agreements and joint ventures with countries like Morocco (for phosphates) and Canada (for potash) to ensure a stable supply. Exploring partnerships beyond the Middle East to reduce geopolitical risk.
- Subsidy and Distribution Reforms: Implementing the Direct Benefit Transfer (DBT) system for fertiliser subsidies to ensure transparency. Promoting alternative fertilisers like Nano Urea and encouraging balanced nutrient usage.
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How can India build resilience in fertiliser supply chains? (Way forward)
- Develop Strategic Fertiliser Reserves: Establish buffer stocks of key fertilisers like urea, DAP, and MOP, especially for critical sowing seasons (e.g., Kharif and Rabi) to cushion against global disruptions.
- Expand and Diversify Import Partnerships: Forge long-term agreements and joint ventures with stable countries (e.g., Morocco, Canada, Jordan) and explore alternative shipping routes to reduce overdependence on the Middle East and de-risk supply chains.
Mains PYQ:
[UPSC 2017] The question of India’s Energy Security constitutes the most important part of India’s economic progress. Analyze India’s energy policy cooperation with West Asian Countries.
Linkage: The article explicitly states that India relies heavily on Gulf countries for “natural gas — the key raw material used to produce” urea, a vital fertilizer. The ongoing conflict threatens “ammonia, urea, DAP, and liquified natural gas (LNG) — all vital for agriculture”. This PYQ precisely captures the energy dimension of India’s dependency on the Middle East, which is a critical underlying factor contributing to the fertilizer crisis.
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Why in the News?
The Election Commission of India (ECI) is currently carrying out a Special Intensive Revision (SIR) of the voter list in Bihar. This has caused political and social concerns because the ECI is focusing only on verifying “ordinary residents” and has given a very short deadline ending on July 31 for this process.
Why is the ECI’s voter roll revision in Bihar being criticised?
- Short timeframe: The ECI allocated just one month, till July 31, for the entire revision process, which is inadequate for comprehensive voter verification in a state like Bihar.
- Strict criteria: The emphasis on “ordinary residents” could ignore the legal protection for temporary absentees as outlined in the Representation of the People Act, 1950.
- Risk of wrongful deletions: Migrant workers might not be present for verification, leading to lakhs of wrongful deletions from electoral rolls.
What hurdles do migrant voters face in verification?
- Inaccessibility During Verification Window: Many migrant voters are unable to be physically present at their home constituencies during the short verification period, making it difficult to confirm their status. Eg: An estimated 20% of Bihar’s electorate is migrant; many may miss the July 31 deadline, risking exclusion.
- Lack of Clarity for Long-Term Migrants: There is ambiguity in addressing voters who have moved long-term but haven’t updated their registration to their new place of work.
How does the law define ‘ordinary residence’ for voters?
The Representation of the People Act, 1950 defines ‘ordinary residence’ as the place where a person normally lives and has the intention to return, even if they are temporarily absent.
Key Legal Provisions:
- Section 19 of the Act: A person shall be registered in the electoral roll of the constituency of their ordinary residence. Temporary absence does not disqualify a person from being considered ordinarily resident.
- Electoral Roll Manual Guidelines: Migrants temporarily away (for work, studies, etc.) are still eligible if they have the ability and intention to return. Removal from the roll requires proof of permanent relocation.
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What does Bihar’s gender turnout reveal about migration?
- Higher Female Voter Turnout: In the 2024 general election, more women voted than men in absolute numbers in Bihar. This indicates a gender skew in voter participation likely linked to male absenteeism due to migration.
- Male Migrant Absenteeism: Despite having more registered male voters, the male turnout was lower, suggesting many men were away for work and could not vote. It reflects the scale of male labour migration out of Bihar.
Do the same issues occur in other states?
- Jharkhand – Migration-linked Voter Drop: Like Bihar, Jharkhand has seen low male voter turnout due to seasonal and long-term migration for labour work.
- Uttar Pradesh – Exclusion Risk in Urban Centres: In urban areas of Uttar Pradesh, slum and migrant populations often lack proper identity or address documents, making voter verification difficult during intensive revision drives. This causes large-scale exclusions, especially among economically vulnerable groups.
What are the issues related to NRIs at the all-India level?
- Lack of Remote Voting Mechanism: Non-Resident Indians (NRIs) often face difficulty in exercising their voting rights due to the requirement of physical presence at their home constituency in India. Eg: An NRI working in the UAE must travel to India to vote, leading to low voter turnout among overseas citizens.
- Legal and Procedural Constraints: Though the Representation of the People (Amendment) Act, 2010 allowed NRIs to register, postal or online voting is still not widely available.
Eg: The Electronically Transmitted Postal Ballot System (ETPBS) has not yet been fully extended to overseas voters, limiting participation.
What are the case studies in the world?
- Mexico – Voting Rights for Migrants Abroad: Mexico allows its citizens living abroad to vote in national elections via postal ballots and electronic voting. This ensures inclusivity for a large number of migrant workers living in the United States and other countries.
- Philippines – Overseas Absentee Voting Act (2003): The Philippines enacted a law enabling overseas Filipinos to vote in presidential, senatorial, and party-list elections. It recognizes the political rights of migrant workers, encouraging participation despite physical absence.
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How can migrants get better electoral representation? (Way forward)
- Enable Registration at Place of Work: Long-term migrants should be allowed and encouraged to register as voters at their current place of residence. This ensures their political voice aligns with the region where they live and work, making representation more meaningful.
- Extend Verification and Enrollment Timelines: The Election Commission should provide a longer and flexible verification window, especially in high-migration states. This prevents wrongful exclusion and ensures migrants’ voting rights are protected even during temporary absence.
Mains PYQ:
[UPSC 2024] Examine the need for electoral reforms as suggested by various committees with particular reference to “one nation-one election” principle.
Linkage: The article focuses on the “Special Intensive Revision (SIR) of electoral rolls” conducted by the Election Commission of India (ECI) in Bihar, highlighting criticisms due to the enormity of the task, short duration, and strict verification criteria that could result in the “wrongful exclusion of lakhs of voters”
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Why in the News?
The U.S. recently carried out unprovoked attacks on three Iranian nuclear sites during a 12-day war with Iran. These actions, especially under a renewed Trump administration, have restarted discussions about U.S. imperialism and how it affects the global balance of power.
| Note: Imperialism is a policy or ideology by which a powerful country extends its control over weaker territories politically, economically, or militarily, often for strategic or resource-driven gains. |
Is U.S. imperialism a threat to the world?
U.S. imperialism is often viewed as a threat to global stability for the following reasons:
- Violation of International Law: The U.S. has engaged in unilateral military interventions without UN approval, undermining global legal norms. Eg: The 2003 invasion of Iraq was based on unverified claims of weapons of mass destruction and violated the UN Charter.
- Destabilization of Regions: U.S. actions often leave countries in prolonged conflict, weakening state institutions and increasing terrorism or refugee crises. Eg: U.S. interventions in Afghanistan and Libya led to power vacuums and regional instability.
- Erosion of Multilateralism: By acting outside global institutions, the U.S. encourages disregard for international cooperation, weakening collective decision-making. Eg: Withdrawal from the Paris Agreement (2017) under the Trump administration weakened global climate unity.
Why does the U.S. view China’s rise as a threat?
- Economic Rivalry: China’s rapid growth and its emergence as the world’s second-largest economy ($20 trillion GDP) challenge U.S. dominance in trade, infrastructure (e.g. Belt and Road Initiative), and manufacturing.
- Technological Competition: China’s progress in semiconductors, AI, and green technologies (e.g. leading in renewables and EVs) threatens U.S. supremacy in global innovation and strategic industries.
- Geopolitical Influence: China’s expanding presence in global institutions and alliances like BRICS and SCO counters U.S.-led systems. Its assertiveness in the South China Sea and strategic investments in Africa and Latin America reflect an alternative world order.
What challenges does bipolarity pose for rising powers like India?
- Reduced Strategic Autonomy: In a U.S.-China bipolar world, India may face pressure to align with one power bloc, limiting its independent foreign policy. Eg: India’s participation in Quad may strain ties with China-dominated SCO and BRICS.
- Limited Global Influence: Bipolarity can marginalize middle powers in global decision-making, making consensus harder. Eg: India’s efforts in climate negotiations may be overshadowed by U.S.-China disagreements.
- Geopolitical Vulnerability: Tensions between major powers can destabilize regional security, impacting India directly. Eg: Escalation in the Indo-Pacific due to U.S.-China rivalry increases India’s strategic risks.
Why is the Global South crucial amid failing multilateralism?
- Collective Voice Against Hegemony: As traditional multilateral institutions like the UN or WTO lose credibility, the Global South offers a platform for developing nations to assert their interests. Eg: BRICS expansion allows emerging economies to challenge Western dominance in global financial systems.
- Alternative Frameworks for Cooperation: The Global South promotes minilateralism and regional alliances to address shared challenges like debt, climate change, and trade inequities. Eg: India’s role in the International Solar Alliance (ISA) reflects South-South cooperation in climate governance.
- Safeguarding Sovereignty and Development Needs: It helps countries resist coercive trade or security alignments and focus on inclusive development models. Eg: G77 bloc resists WTO reforms that could harm public procurement protections vital to developing economies.
How can India balance strategic ties and Global South leadership? (Way forward)
- Pursue Strategic Autonomy: India must maintain an independent foreign policy despite partnerships like Quad. Eg: It joined the BRICS Bank while deepening ties with the U.S., showcasing multi-alignment.
- Take Principled Stands in Global Forums: India should speak out against violations of international law even by allies. Eg: India’s silence on U.S. strikes in Iran undermines its credibility as a Global South leader.
- Champion Collective South-South Agendas: India can lead in climate justice, debt relief, and trade equity for developing countries. Eg: Through initiatives like the International Solar Alliance and Voice of Global South Summit.
Mains PYQ:
[UPSC 2023] The expansion and strengthening of NATO and a stronger US-Europe strategic partnership works well in India.’ What is your opinion about this statement? Give reasons and examples to support your answer.
Linkage: The expansion of NATO and strengthening of the US-Europe strategic partnership represent key elements of U.S.-led alliances and its approach to global security. This directly relates to the U.S. acting as the “world’s sole superpower” engaged in “aggressive military behaviour” and violating the international order.
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PYQ Relevance:
[UPSC 2014] Some of the International funding agencies have special terms for economic participation stipulating a substantial component of the aid to be used for sourcing equipment from the leading countries. Discuss on merits of such terms and if, there exists a strong case not to accept such conditions in the Indian context.
Linkage: This question directly addresses the modalities and conditionalities of “international funding agencies” which are a core aspect of global development finance. This article highlights that the “rephasing global development finance” is necessary due to several factors, including the “shrinking ODA and debt crisis”, the profound decline in the “flow of global development finance”. |
Mentor’s Comment: India’s development cooperation with the Global South is undergoing a significant reorientation. After years of steadily expanding economic assistance, rising from $3 billion in 2010–11 to $7 billion in 2023–24, the government is signaling a major policy shift. The Finance Ministry has red-flagged the continued use of Lines of Credit (LoCs), which have historically been a key engagement tool under the Indian Development and Economic Assistance Scheme (IDEAS). With the global liquidity crisis, rising debt distress in developing nations, and a sharp decline in traditional Official Development Assistance (ODA) from major donors like the U.S. and U.K., India is now pushing for a more diversified model.
Today’s editorial analyses India’s development cooperation with the Global South. This topic is important for GS Paper II (International Relations) in the UPSC mains exam.
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Let’s learn!
Why in the News?
India’s development cooperation with the Global South has been steadily increasing over the years.
What are India’s modes of cooperation with the Global South?
- Capacity Building: Focuses on training, education, and skill development of human resources in partner countries. Eg: The Indian Technical and Economic Cooperation (ITEC) programme provides training to officials from over 160 countries in various sectors like IT, agriculture, and governance.
- Technology Transfer: Sharing India’s innovations, expertise, and cost-effective solutions with Global South nations. Eg: India has shared digital public infrastructure models like Aadhaar and UPI with countries in Africa and Southeast Asia.
- Market Access: Providing duty-free and preferential access to Indian markets for exports from developing nations. Eg: Under the Duty-Free Tariff Preference (DFTP) scheme, least developed countries (LDCs) benefit from reduced tariffs when exporting to India.
- Grants: Non-repayable financial assistance offered for key infrastructure or social sector projects. Eg: India provided grants for building parliament buildings in countries like Afghanistan and Mali.
- Concessional Finance (Lines of Credit – LoCs): India extends low-interest loans to partner countries for development projects under the IDEAS (Indian Development and Economic Assistance Scheme). Eg: India extended LoCs for railway projects in Africa (like in Mozambique and Senegal) and for solar energy projects under the International Solar Alliance (ISA).
| Note: IDEAS is a flagship initiative of the Government of India designed to promote development cooperation with partner countries, especially in the Global South, by extending Lines of Credit (LoCs) on concessional terms. |
Why is the relevance of Lines of Credit (LoCs) under IDEAS being reconsidered?
- Rising Sovereign Debt and Repayment Challenges: Many partner countries in the Global South are facing sovereign debt crises, reducing their capacity to repay concessional loans. Eg: During the G-20 summit, India raised concerns over the unsustainable debt levels in Africa and small island nations, signalling caution in issuing new LoCs.
- Strain on Indian Public Finances: India borrows from global capital markets and extends credit at concessional rates under IDEAS, absorbing the interest differential. With global liquidity tightening, this model has become fiscally burdensome. Eg: The Finance Ministry flagged the increasing fiscal burden of absorbing interest costs in the 2025–26 budget, suggesting a shift away from LoCs.
- Unpredictability in Global Capital Markets: Fluctuations in global interest rates and capital availability have made it difficult to maintain concessional lending under predictable terms. Eg: Due to the rising cost of borrowing post-COVID, India finds it less viable to sustain concessional credit lines compared to more flexible grant-based or Triangular Cooperation (TrC) models.
How has the decline in Official Development Assistance (ODA) impacted global development finance?
- Reduction in Available Funding for Development Projects: ODA has dropped significantly from $214 billion in 2023 to an expected $97 billion, a ~45% decline, leading to fewer resources for critical development programmes, especially in least developed countries (LDCs).
- Setback to Sustainable Development Goals (SDGs): The financing gap for SDGs has widened, rising from $2.5 trillion in 2015 to over $4 trillion in 2024. With limited ODA, progress toward achieving the 2030 Agenda remains off track, especially after COVID-19 and global shocks.
- Increased Vulnerability of Debt-Stressed Nations: The shrinking flow of concessional finance has made it harder for debt-ridden nations to access affordable funding, jeopardizing development progress and worsening existing economic vulnerabilities.
What is Triangular Cooperation (TrC)?
Triangular Cooperation (TrC) is a development model that brings together three key actors:
- A traditional donor from the Global North (e.g., Germany, Japan, USA)
- A pivotal country from the Global South with development experience (e.g., India, Brazil, Indonesia)
- A partner country, usually another developing or least developed country, which receives the support
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What is the role of Triangular Cooperation (TrC)?
- Bridges Global North and South: Triangular Cooperation brings together a traditional donor from the Global North, a pivotal country from the Global South (like India), and a partner country (often another developing nation). It creates inclusive platforms for shared learning, mutual respect, and context-specific solutions.
- Promotes Cost-Effective and Impactful Development: TrC enables the co-creation of development solutions that are tailored to local needs while combining technical expertise, financial resources, and implementation experience from all three partners. This leads to cost-effective and sustainable outcomes. Eg: India and Germany have implemented TrC projects in countries like Cameroon, Ghana, Malawi, and Peru.
- Expands India’s Development Diplomacy: TrC allows India to leverage partnerships with countries such as Germany, UK, EU, and Japan to implement projects in third countries, enhancing India’s role as a global development partner. It aligns with India’s vision of a Global Development Compact and was promoted during its G-20 presidency.
How can India leverage partnerships through TrC to enhance its development diplomacy? (Way forward)
- Strengthening Strategic Alliances and Global Presence: India can collaborate with traditional donors like Germany, Japan, the UK, and the EU to implement development projects in third countries, enhancing its image as a reliable global development partner and expanding its geopolitical influence.
- Promoting Scalable, Cost-Effective Solutions in the Global South: By combining India’s technical expertise with Northern financial resources, TrC enables context-specific, demand-driven projects in areas like energy, health, and education, aligning with India’s vision of a Global Development Compact.
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Why in the News?
A tragic pattern keeps repeating in Tamil Nadu’s firecracker industry, especially in Virudhunagar district, where frequent explosions continue to injure and kill workers. In the first half of 2025 alone, eight accidents have taken 26 lives—adding to a steady trend of 52 deaths in 2024 and 79 in 2023.
What causes repeated accidents in Tamil Nadu’s fireworks industry?
- Unsafe Handling of Chemicals: Accidents often result from friction during the mixing or filling of explosive chemicals, which easily ignite. Eg: In the 2025 Sattur explosion, preliminary reports blamed friction during chemical filling for the blast.
- Improper Storage of Inflammable Materials: Fireworks units store chemicals in unsafe conditions, often exposed to direct sunlight and heat, violating safety norms. Eg: Explosives Rules, 2008 prohibit storage under excessive heat, but violations continue in units across Virudhunagar.
- High Ambient Temperatures: The hot and dry climate of Virudhunagar, especially during summer, increases the likelihood of spontaneous ignition.
- Negligence by Manufacturers: Many factory owners ignore safety protocols to save time and cost, compromising worker safety.
- Inadequate Regulatory Oversight: Despite being licensed by PESO, regulatory inspections are infrequent or ineffective, allowing unsafe practices to persist.
What are the safety regulations in India?
- Explosives Rules, 2008 (under Explosives Act, 1884): Regulates licensing, safe storage, handling, and transport of explosives.
- Factories Act, 1948: Ensures worker safety through ventilation, PPE (Personal Protective Equipment), safety training, and health monitoring.
- Environment (Protection) Act, 1986: Mandates pollution control, hazardous waste management, and environmental safeguards.
- Disaster Management Act, 2005: Requires emergency response plans, mock drills, and local authority coordination.
- PESO Guidelines: Enforces safety standards in explosives units and conducts inspections for compliance.
- National Building Code (NBC), 2016: Prescribes fire safety, exits, alarms, and structural norms for industrial buildings.
- Indian Boilers Act, 1923: Ensures safe operation and periodic inspection of industrial boilers.
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Why is safety regulation ineffective despite existing laws?
- Weak Enforcement of Existing Laws: The Explosives Rules, 2008 mandate strict precautions, such as protecting explosives from sunlight and heat, but enforcement is lax. Eg: Despite clear rules, multiple units in Virudhunagar continue to store chemicals in open areas, leading to repeat accidents.
- Lack of Regular and Stringent Inspections: Regulatory bodies like PESO (Petroleum and Explosives Safety Organization) often fail to conduct timely and thorough inspections, enabling rule violations.
- Absence of Accountability and Deterrence: Post-accident investigations rarely result in penal action, and most factories resume operations without meaningful changes. Eg: After the Sattur explosion in 2025, investigations began, but no immediate enforcement action was reported to prevent recurrence.
How does worker vulnerability worsen firecracker factory risks?
- Social and Economic Marginalisation: Workers are often from poor, rural, and socially disadvantaged backgrounds, making them desperate for employment, even in unsafe conditions. Eg: In Virudhunagar, many labourers accept jobs in hazardous fireworks units despite known safety risks due to lack of alternative livelihood options.
- Lack of Awareness and Training: Vulnerable workers often have low literacy levels and receive little or no safety training, increasing the chance of mishandling chemicals or violating protocols. Eg: Many accidents occur during the manual mixing or filling of chemicals, which is often done by untrained workers.
- Weak Bargaining Power and Job Insecurity: These workers usually work in informal or unregistered setups, where they cannot demand better safety gear, facilities, or rights.
What role should the state play in enforcing safety norms? (Way forward)
- Strict Enforcement of Regulations: Ensure regular inspections and penalties for violations under laws like the Explosives Rules, 2008 and Factories Act, 1948.
- Collaboration with Industry for Safer Practices: Work with manufacturers to develop a culture of safety, just as cooperation helped eliminate child labourin the past.
- Support for Worker Protection and Welfare: Ensure social security, compensation, and rehabilitation for injured workers. Promote formal employment practices.
Mains PYQ:
[UPSC 2015] For achieving the desired objectives, it is necessary to ensure that the regulatory institutions remain independent and autonomous. Discuss in the light of the experiences in recent past.
Linkage: This question directly addresses the effectiveness of “regulatory institutions” and their ability to achieve their “desired objectives”. The article explicitly state that the fireworks industry in Tamil Nadu, particularly in Virudhunagar, experiences numerous fatal accidents annually, despite being governed by the Explosives Rules, 2008, and requiring licenses from the Petroleum and Explosives Safety Organization.
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