Why in the News?
The Supreme Court of India’s May 2025 judgment in Re: Right to Privacy of Adolescents has come into the spotlight due to its landmark stance on adolescent sexuality, criminal justice, and the limitations of the Protection of Children from Sexual Offences (POCSO) Act in dealing with consensual relationships involving minors.
What about the POCSO Act?
The Protection of Children from Sexual Offences (POCSO) Act, 2012 is a comprehensive law enacted by the Government of India to protect children (below 18 years) from sexual abuse, sexual harassment, and pornography. It ensures a child-friendly legal process and provides for special courts to conduct speedy trials. |
Why is reforming the age of consent under POCSO being debated?
- Criminalisation of Consensual Adolescent Relationships: The current age of consent (18 years) under the POCSO Act criminalises all sexual activity involving minors, even when it is consensual and non-exploitative. Eg: In the 2025 Supreme Court case from West Bengal, a 14-year-old girl in a consensual relationship faced legal action, despite her opposition to the punishment of her partner.
- Disconnect Between Law and Ground Realities: There is a gap between the legal framework and social realities, as many POCSO cases involve romantic relationships rather than abuse. Eg: An Enfold study (2016–2020) found that 24.3% of POCSO cases in Assam, Maharashtra, and West Bengal involved consensual romantic relationships, with 82% of victims refusing to testify against the accused.
- Need to Recognise Adolescent Agency with Safeguards: Critics argue that adolescents aged 16–18 are capable of giving informed consent under certain conditions, and blanket criminalisation undermines their agency. Eg: The UNCRC’s General Comment No. 20 recommends non-criminalisation of consensual acts between adolescents of similar age and calls for laws that address coercion, not curtail autonomy.
How does the 2025 Supreme Court judgment reflect a rights-based approach?
- Upholding the Right to Dignity and Autonomy (Article 21): The Court acknowledged the woman’s emotional and financial struggles, choosing not to impose a sentence on the accused to protect her well-being and dignity. This affirms the constitutional right to life with dignity and shifts focus from punitive justice to restorative justice.
- Prioritising the Voice of the Affected Individual: By forming an expert committee to assess the now-adult woman’s preferences before sentencing, the Court ensured her voice and agency were central to the legal outcome, a key tenet of rights-based jurisprudence.
- Recognising Systemic Failures and Suggesting Reforms: The Court acknowledged the collective failure of social and legal systems and directed the central government to consider reforms such as comprehensive sexuality education, life-skills training, and rehabilitation support — addressing structural rights violations beyond the courtroom.
Case study:
- Canada – Close-in-Age Exemption: Canada sets the age of consent at 16, but allows consensual sexual activity between adolescents through close-in-age exemptions (e.g., a 14-year-old can engage in consensual activity with someone less than 5 years older).
- South Africa – Teddy Bear Clinic Case (2013): The Constitutional Court ruled that criminalising consensual sex between adolescents aged 12–15 violates their rights to dignity and privacy.
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How can the law better balance adolescent protection with agency? (Way forward)
- Introduce a Close-in-Age Exemption: Laws can decriminalise consensual relationships between adolescents close in age (e.g., 16–18), while still penalising exploitation or coercion. Eg: Several countries (like Canada) apply a “close-in-age” defence to avoid criminalising consensual teenage relationships.
- Differentiate Between Exploitative and Non-Exploitative Acts: Legal provisions should recognise that not all sexual activity involving adolescents is exploitative. The law must distinguish abuse of power from mutual adolescent relationships. Eg: General Comment No. 20 under UNCRC urges states not to criminalise non-exploitative, consensual adolescent activity.
- Incorporate Adolescent Perspectives in Legal Processes
Courts should ensure that adolescents’ voices and choices are considered, especially in determining intent, coercion, and consent. Legal procedures should be sensitive to their evolving capacities. Eg: In Re: Right to Privacy of Adolescents (2025), the Supreme Court consulted the adolescent before deciding sentencing.
Mains PYQ:
[UPSC 2024] Right to privacy is intrinsic to life and personal liberty and is inherently protected under Article 21 of the Constitution. Explain. In this reference discuss the law relating to D.N.A. testing of a child in the womb to establish its paternity.
Linkage: The article talks about the right to privacy of young individuals, particularly in the context of their relationships and the subsequent legal interventions that deeply impact their lives. The Supreme Court’s revisiting of its stance and prioritizing the voice of the young person under Article 142 demonstrates the judiciary’s role in interpreting fundamental rights like privacy in complex social scenarios involving adolescents.
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Why in the News?
The 2025 BRICS Summit highlighted a significant shift in the global order, with the United States under Donald Trump bypassing multilateral institutions like the UN, promoting bilateralism, and weakening the Global South’s collective voice.
What does the decline of multilateralism mean for India?
- Reduced Collective Bargaining Power: With institutions like the United Nations (UN) being marginalised, India can no longer rely on multilateral forums to advocate for Global South interests. Eg: The BRICS 2025 Declaration failed to address the erosion of multilateralism or emphasize South-South cooperation.
- Shift Towards Bilateralism and Strategic Autonomy: India must engage through commerce-driven bilateral deals and assert strategic autonomy between global powers. Eg: India’s loss in the UNESCO Vice-Chair election to Pakistan underlines the need for stronger bilateral influence and independent foreign policy.
- Focus on Self-Reliance and Regional Partnerships: India should now concentrate on its own economic growth and build strong ties with nearby countries to reduce dependence on global powers. Eg: India linking trade deals with the U.S. to agreements with ASEAN nations shows a shift toward regional cooperation.
Why is South-South cooperation crucial for India now?
- Enhances Development Partnerships: South-South cooperation allows India to share low-cost technologies, development models, and capacity-building expertise with other developing countries. Eg: Through the Indian Technical and Economic Cooperation (ITEC) programme, India trains professionals from over 160 countries in fields like IT, agriculture, and governance.
- Secures Access to Critical Resources: Collaboration with Global South nations helps India access vital natural resources and raw materials essential for its manufacturing and energy needs. Eg: India’s investment in lithium and cobalt mines in Africa supports its EV and battery manufacturing push under the Make in India initiative.
- Builds Resilience Against Western Dependency: Strengthening ties within the Global South reduces overreliance on Western economies and institutions, especially in times of geopolitical uncertainty or trade sanctions. Eg: The India-Brazil-South Africa (IBSA) Fund supports poverty alleviation and post-conflict reconstruction, demonstrating a collective southern-led approach.
How can India use its tech and industrial strengths globally?
- Exporting Digital Public Infrastructure (DPI): India can leverage its success in building scalable digital platforms to assist developing countries in digital governance and financial inclusion. Eg: India’s Modular Open-Source Identity Platform (MOSIP), modeled on Aadhaar, has been adopted by Philippines, Morocco, and Sri Lanka to develop their own digital ID systems.
- Promoting Green Industrial Innovation: India’s industrial base is increasingly oriented towards clean energy and sustainable manufacturing, which can be exported as part of global decarbonisation efforts. Eg: Indian companies like ReNew Power and Tata Power Solar are investing in solar and wind energy projects in Africa and Southeast Asia.
- Becoming a Global Hub for Frugal Innovation: India’s expertise in low-cost, high-impact technology (also known as frugal innovation) can benefit developing nations with limited resources. Eg: The Jaipur Foot, a low-cost prosthetic limb developed in India, is being distributed in countries like Rwanda and Honduras through international collaborations.
How can the 2026 BRICS Summit boost India’s leadership?
- Revitalising Global South Unity: India can use the Summit to reposition BRICS as a platform for South-South cooperation, shifting focus from collective bargaining in forums like G-77 to mutual prosperity and strategic autonomy among emerging economies.
- Showcasing Economic and Technological Strength: By highlighting its achievements in infrastructure, green energy, digital economy, and innovation (e.g. GenAI patents), India can project itself as a model for inclusive and sustainable growth, inspiring other developing nations.
- Shaping a Post-Multilateral Global Order: With declining trust in traditional multilateral institutions, India can steer BRICS toward new frameworks of trade, finance, and diplomacy, boosting its global influence and cementing leadership in a multipolar world.
What strategic shifts should guide India’s foreign policy? (Way forward)
- Reinforcing Strategic Autonomy: India must maintain a neutral stance amidst intensifying U.S.-China rivalry by prioritising core national interests over bloc politics. This includes independent voting in global forums and diversifying strategic partnerships beyond traditional allies.
- Pivot to the Global South: India should lead a rejuvenated South-South cooperation framework by promoting trade, technology, and development cooperation with developing countries, positioning itself as a voice and leader of emerging economies.
- Geo-Economic Realignment: Foreign policy should focus on economic diplomacy securing supply chains, signing bilateral trade pacts, and enhancing infrastructure and digital connectivity with the Indo-Pacific and ASEAN to counterbalance Western economic dependence.
Mains PYQ:
[UPSC 2024] The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.’ Explain this statement with examples.
Linkage: The article talks about the U.S. is “engaging countries with strategic commerce-related bilateral deals that fragment the global order” and that its national interest now includes “containment of China’s influence”. This question directly reflects the shift in U.S. (part of “The West”) foreign policy as described in the article.
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Why in the News?
Six out of the 14 Production-Linked Incentive (PLI) schemes, including textiles, solar modules, IT hardware, automobiles, advanced chemical cells (ACC), and speciality steel, are progressing at a relatively slower pace.
What are the primary reasons for the slow implementation of PLI schemes?
- Stringent Eligibility Norms: Many industries have reported that the eligibility criteria for participation in PLI schemes are too stringent, which limits the number of companies that can benefit from the incentives.
- Initial Setup Challenges: Establishing a domestic manufacturing base from scratch is a monumental task. Industries such as solar modules and advanced chemistry cells (ACC) require substantial time—ranging from one-and-a-half to three years—to set up manufacturing operations, delaying employment generation.
- Access to Resources: Companies face difficulties in accessing critical resources, including Chinese machinery and skilled technicians, which can hinder their ability to ramp up production quickly.
- Market Dependency: Some sectors remain heavily reliant on imports and have not yet transitioned to a self-sufficient manufacturing model, impacting their growth under the PLI framework.
- Slow Disbursement of Funds: The initial years of the scheme saw minimal disbursement of funds, with only a small percentage of the total incentive outlay being paid out in the first two years.
Which sectors are experiencing the most significant slowdowns, and why?
- Textiles: This sector is struggling due to high competition and stringent norms that have slowed down participation and growth.
- Solar Modules: Despite being a strategic sector for renewable energy, delays in establishing manufacturing capabilities have led to slow progress.
- As of June 2024, India’s solar module manufacturing capacity reached 77.2 GW, but the solar cell capacity was only 7.6 GW, leading to supply shortages that delayed projects.
- Automobiles: While some companies are making progress, the automobile sector overall is hindered by initial setup challenges and fluctuating market conditions.
- Factors such as rising raw material costs and shifts in consumer preferences towards electric vehicles are creating a complex environment for traditional automakers.
- Advanced Chemical Cells (ACC): Similar to solar modules, this sector faces long commissioning periods that delay employment outcomes. Because of the lengthy development timelines for manufacturing facilities and the need for substantial investment in technology are contributing to slower growth in this strategic area.
- IT Hardware: Although recently upgraded with increased funding, it still lags behind in implementation compared to more successful sectors like mobile manufacturing.
What measures can be taken to enhance the effectiveness of PLI schemes? (Way forward)
- Revising Eligibility Criteria: Simplifying the eligibility requirements could encourage more companies, especially smaller firms, to participate in the schemes and benefit from incentives.
- Increasing Support for Supply Chains: Establishing robust supply chains is crucial. The government could provide additional support to smaller suppliers who are essential for scaling up production across sectors.
- Streamlining Resource Access: Facilitating easier access to necessary machinery and skilled labor can help companies ramp up production more effectively and reduce dependency on imports.
- Regular Reviews and Adjustments: Continuous monitoring and adjustments based on sector performance can help identify bottlenecks early and allow for timely interventions.
- Encouraging Ancillary Industries: Promoting the establishment of ancillary industries around larger beneficiaries could create additional jobs and enhance local manufacturing capabilities.
Mains question for practice:
Q Evaluate the challenges in the implementation of the Production-Linked Incentive (PLI) schemes in India. Highlight the sectors experiencing significant slowdowns and suggest measures to enhance the effectiveness of these schemes. (250 words) 15M
Mains PYQ:
Q Can the strategy of regional-resource based manufacturing help in promoting employment in India?. (UPSC IAS/2019)
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Why in the News?
Despite China’s increasing involvement in financing and infrastructure development, India continues to hold a significant position as one of Nigeria’s key partners in West Africa.
What are the strategic objectives of India in West Africa?
- Strengthening Bilateral Relations: India aims to enhance its strategic partnership with Nigeria, which is pivotal as Nigeria is both the largest economy and democracy in Africa. This partnership is expected to extend beyond Nigeria, influencing broader regional dynamics in West Africa.
- Focus on Security Cooperation: Given the challenges of terrorism, piracy, and drug trafficking in Nigeria, India seeks to bolster security cooperation. This includes defence collaboration and joint efforts in counterterrorism operations against groups like Boko Haram.
- Development Partnerships: India positions itself as a development partner by providing concessional loans and capacity-building programs, demonstrating a commitment to supporting Nigeria’s socio-economic growth.
- Promotion of Global South Aspirations: Both India and Nigeria share common goals as leaders of the Global South, aiming to amplify their voices in international forums like the UN Security Council.
How does India plan to enhance its economic ties with West African countries?
- Diversifying Trade Relations: India plans to revitalize trade with Nigeria, which has seen a decline recently. Efforts include negotiating trade agreements such as the Economic Cooperation Agreement (ECA) and the Bilateral Investment Treaty (BIT) to facilitate investment and trade.
- Sectoral Collaboration: The focus areas for economic collaboration include defense, energy, technology, health, and education. India’s PM discussions with the President of Nigeria emphasized leveraging India’s expertise in these sectors to foster mutual growth.
- Infrastructure Development: India aims to support infrastructure development through concessional loans and technical assistance, building on existing projects that have benefited from Indian investment.
- Cultural and People-to-People Exchanges: Enhancing cultural ties and promoting exchanges between citizens are also part of India’s strategy to strengthen bilateral relations, fostering goodwill and mutual understanding.
What challenges does India face in its engagement with West Africa?
- Geopolitical Competition: India’s engagement is challenged by China’s significant presence in Nigeria, where Chinese companies dominate various sectors including infrastructure and telecommunications. This competition complicates India’s efforts to establish itself as a key partner.
- Economic Fluctuations: The decline in trade between India and Nigeria from $14.95 billion in 2021-22 to $7.89 billion in 2023-24 highlights vulnerabilities due to shifting global oil markets and increasing imports from other countries like Russia.
- Political Instability: The political landscape in Nigeria can be unpredictable, posing risks for long-term investments and cooperation initiatives that require stability for successful implementation.
- Capacity Constraints: While India offers developmental assistance, the effectiveness of these initiatives can be hindered by local capacity constraints in Nigeria, necessitating a tailored approach that considers local needs and capabilities.
Way forward:
- Deepen Strategic Collaboration: Strengthen defence and security partnerships, diversify trade, and enhance collaboration in sectors like energy, technology, and health to counter China’s growing influence and foster mutual growth.
- Focus on Regional Capacity Building: Expand developmental assistance with tailored initiatives addressing local needs, while supporting Nigeria’s stability through diplomatic engagement and joint Global South aspirations in international forums.
Mains question for practice:
Q Discuss the strategic objectives of India in West Africa, with a particular focus on its engagement with Nigeria. Highlight the challenges India faces in strengthening its ties in the region and suggest measures to address these challenges. (250 words) 15M
Mains PYQ:
Q Increasing interest of India in Africa has its pros and cons. Critically Examine. (UPSC IAS/2015)
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Why in the News?
Recently the Environment Ministry of India has recently exempted most coal-fired power plants from installing Flue Gas Desulphurisation (FGD) systems, reversing its 2015 mandate. This move weakens efforts to control sulphur dioxide (SO₂) emissions, a harmful air pollutant.
What is Flue Gas Desulphurisation (FGD) system?
Flue Gas Desulphurisation (FGD) systems are air pollution control technologies used in thermal power plants to remove sulphur dioxide (SO₂) from flue gases (the exhaust emitted when coal or oil is burned). |
Why has FGD installation been exempted for most coal plants?
- Low Sulphur Content in Indian Coal: Indian coal contains naturally low sulphur, reducing the urgency to control SO₂ emissions. Eg: The expert committee stated that SO₂ levels near plants using Indian coal were already below permissible limits.
- High Installation and Operational Costs: Installing FGD systems is capital-intensive and can increase electricity tariffs. Eg: Many private power producers cited cost constraints as a barrier to following the 2015 FGD mandate.
- Limited Vendor Capacity in India: There is a shortage of FGD equipment suppliers, causing delays in implementation. Eg: From 2015–2024, only 8% of 600 units installed FGDs, primarily by NTPC (a public sector company).
- Impact of COVID-19 Pandemic: The pandemic caused supply chain disruptions and delayed project execution timelines. Eg: The Environment Ministry cited COVID-related delays for missing 2024 FGD deadlines.
- Scientific Reassessment of SO₂ Effects: New studies suggest sulphates formed from SO₂ may have a climate-cooling effect, weakening the urgency of emission controls. Eg: The Power Ministry argued that reducing sulphates could actually worsen global warming.
How does SO₂ affect health and air quality?
- Respiratory Health Impacts: Sulphur dioxide (SO₂) irritates the respiratory tract, causing issues such as asthma, bronchitis, and shortness of breath, especially among vulnerable populations like children and the elderly. In Delhi, spikes in SO₂ levels have been linked to increased hospital visits for respiratory ailments during winter months.
- Formation of Particulate Matter (PM2.5): SO₂ reacts in the atmosphere to form sulphate aerosols, a major component of PM2.5, which penetrates deep into lungs and contributes to air pollution. Industrial belts like Singrauli in Madhya Pradesh record high levels of particulate pollution, partly due to emissions from coal-fired plants.
- Reduced Visibility and Environmental Damage: SO₂ contributes to acid rain and haze, damaging crops, soil, and water sources, and reducing visibility. Areas near thermal power plants, such as in Chhattisgarh, have reported acidic soil degradation, affecting agriculture.
What does selective FGD enforcement indicate about regulation?
- Location-Based Policy Inconsistency: The decision to mandate FGD installation only near NCR and urban hotspots suggests that environmental regulations are being applied selectively, not based on uniform scientific standards, but geographical and political considerations.
- Weak Enforcement and Shifting Priorities: Exempting most coal plants despite earlier commitments reflects regulatory dilution, raising concerns about policy backtracking and the government’s willingness to compromise on environmental health in favor of industrial or economic concerns.
- Undermining Scientific Credibility and Public Trust: Ignoring the original mandate without robust public debate weakens trust in evidence-based regulation, indicating that scientific advisories are not consistently followed in policy implementation.
Why is public debate vital before policy shifts on pollution?
- Ensures Transparency and Accountability: Open public debate creates transparency, compelling policymakers to justify decisions and remain accountable to citizens.
- Strengthens Scientific Rigor: Debate enables scientific scrutiny of environmental claims, ensuring that policy changes are based on credible evidenceand expert consultation.
- Safeguards Public Health and Democratic Rights: Inclusive discussions protect public health and uphold democratic values by allowing citizens to voice concerns over pollution-related policies.
Why is public debate vital before policy shifts on pollution?
- Perform, Achieve and Trade (PAT) Scheme: Implemented by the Bureau of Energy Efficiency (BEE), this market-based mechanism promotes energy efficiency in industries, indirectly reducing emissions.
- National Clean Air Programme (NCAP): Launched in 2019, it aims for a 20–30% reduction in PM2.5 and PM10 levels by 2024 (now extended), and addresses urban air pollution through sector-specific mitigation plans.
- Retrofitting of Plants: Plants identified in pollution hotspots, those near NCR or million-plus cities, are required to install FGD by 2028, as per latest Environment Ministry directive.
- Promotion of Renewable Energy and Ujjwala Yojana: Transition towards cleaner energy sources (solar, wind) and LPG distribution under Ujjwala Yojana has reduced reliance on coal and biomass, indirectly curbing SO₂ emissions.
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Way forward:
- Revise FGD Policy Through Transparent Public Consultation: Any change in environmental regulation, especially exemptions, must involve scientific review, public debate, and stakeholder consultations to ensure credibility and protect public health.
- Strengthen Pollution Monitoring and Accountability: Enhance the real-time SO₂ monitoring network, enforce uniform emission standards, and link compliance with financial or operational incentives to promote cleaner technologies across all power plants.
Mains PYQ:
[UPSC 2024] Industrial pollution of river water is a significant environmental issue in India. Discuss the various mitigation measures to deal with this problem and also the government’s initiatives in this regard.
Linkage: The article talks about the Environment Ministry’s decision to exempt most coal-fired plants from mandatory Flue Gas Desulphurisation (FGD) systems, which is a significant government initiative related to an environmental issue (sulphur dioxide emissions) and its mitigation. This is a direct and comprehensive question about environmental issues and the government’s initiatives and mitigation measures.
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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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