💥Join UPSC 2027,2028 Mentorship (June Batch) + XFactor Notes & Microthemes PDF

Type: Explained

  • International Monetary Fund,World Bank,AIIB, ADB and India

    How does the World Bank classify countries by income?

    Why in the News?

    Recently, the World Bank’s 2024 update to its income classification system revealed major shifts, with a sharp decline in low-income populations and a rise in upper-middle-income countries.

    Global Income Classification Trends (2004–2024): Key Shifts in Population Distribution: 

    • Global Shift Upwards: The share of the world population in low-income countries dropped from 37.4% in 2004 to 7.6% in 2024, showing significant poverty reduction.
    • Rise of Upper-Middle Group: The population in upper-middle-income countries rose from 8.9% in 2004 to 34.7% in 2024, indicating broad economic progress in many developing nations.
    • Lower-Middle Income Stability: The lower-middle-income group has remained relatively stable, around 38–40% of global population from 2004 to 2024.
    • High-Income Countries’ Share Fluctuated: The global population in high-income nations peaked at 18.9% in 2014, then slightly declined to 17.4% in 2024.
    • Country Reclassifications: Countries like India and Indonesia moved to higher income groups, while some African countries remained or slipped into low-income status.

    What is the World Bank’s income classification?

    • Four Income Groups: Countries are classified into low, lower-middle, upper-middle, and high-income based on their Gross National Income (GNI) per capita.
    • Annual Update: Classifications are updated yearly, adjusting for global inflation and changes in income.
    • Absolute Thresholds: Groupings are based on fixed income thresholds, not relative comparisons with other countries.
      • Low income: GNI per capita ≤ $1,135
      • Lower-middle income: $1,136 – $4,465
      • Upper-middle income: $4,466 – $13,845
      • High income: ≥ $13,846

    How is GNI per capita used in this system?

    • It measures the average income per person, including income from abroad.
    • GNI figures (reported in local currency) are converted to USD using exchange rates.
    • Countries are placed into groups using predetermined income thresholds.

    Why do countries shift between income groups?

    • Economic Growth or Decline: Strong GDP growth raises GNI per capita, moving countries to higher groups. Eg: India’s GNI per capita rose from $2,250 (2022) to $2,610 (2023), nearing upper-middle-income status.
    • Currency Exchange Fluctuations: A weaker local currency reduces GNI in USD terms. Eg: Egypt’s currency depreciation led its GNI per capita to fall from $3,890 (2022) to $3,240 (2023), reclassifying it from upper-middle to lower-middle-income.
    • Population Growth Rates: Fast population growth reduces GNI per capita even if total income rises. Eg: Nigeria’s large population growth kept its GNI per capita at $2,110 (2023), maintaining its lower-middle-income status.

    What are the challenges for India as a Lower-Middle-Income Country?

    • Limited Fiscal Space: India struggles to allocate sufficient funds for healthcare, education, and infrastructure. Eg: Public health spending remains around 2% of GDP, below the global average of 5–6%.
    • High Income Inequality: Rapid growth hasn’t translated into equitable wealth distribution. Eg: The top 10% in India hold nearly 77% of total national wealth (Oxfam, 2023).
    • Jobless Growth: Economic expansion hasn’t created enough formal sector jobs. Eg: Despite over 6% GDP growth, unemployment among youth remains high at around 45% (CMIE, 2023).

    What are the steps taken by the Indian government?

    • PM Gati Shakti Mission: Enhances infrastructure development for seamless connectivity and job creation.
    • National Education Policy (NEP) 2020: Aims to improve access, equity, and quality in education, especially in rural areas.
    • Ayushman Bharat Scheme: Provides free healthcare to over 50 crore people, addressing public health gaps.
    • Make in India & PLI Schemes: Promote domestic manufacturing and boost employment across key sectors.
    • Digital India & Skill India: Focuses on digital inclusion and vocational training to equip youth with employable skills.

    Way forward: 

    • Accelerate Inclusive Economic Growth: Focus on MSMEs, rural entrepreneurship, and labour-intensive sectors to boost incomes and job creation.
    • Invest in Human Capital: Enhance education quality, healthcare access, and nutritional outcomes, especially for the poor.
    • Strengthen Social Safety Nets: Expand direct benefit transfers (DBTs) and targeted subsidies to reduce vulnerability and inequality.
    • Promote Technological Innovation: Support startups, R&D, and digital infrastructure to drive productivity and global competitiveness.

    Mains PYQ:

    [UPSC 2013] The World Bank and the IMF, collectively known as the Bretton Woods Institutions, are the two inter-governmental pillars supporting the structure of the world’s economic and financial order. Superficially, the World Bank and the IMF exhibit many common characteristics, yet their role, functions and mandate are distinctly different. Elucidate.

    Linkage: This question directly asks about the World Bank’s role, functions, and mandate. A fundamental aspect of the World Bank’s function is its income classification system, which was initially designed to determine eligibility for loans, particularly concessional ones, based on a country’s average income.

  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    Another slip up by India in the trade pact with the U.K.

    Why in the News?

    Concerns have emerged over India’s commitments in the India-UK Comprehensive Economic and Trade Agreement (CETA), particularly Article 13.6 on intellectual property. Critics argue it weakens India’s long-standing stance on compulsory licensing, favouring voluntary mechanisms instead.

    How does Article 13.6 affect medicine access in India?

    • Dilution of Compulsory Licensing Rights: The Article 13.6 of CETA favours voluntary licensing over compulsory licensing, reducing India’s legal room to ensure affordable drug access, especially during public health emergencies.
    • Reduced Policy Space in Patent Law: Provisions like weakening the “working requirement” restrict India’s ability to revoke non-working foreign patents, hampering local production of essential medicines.
    • Dependence on Foreign Patent Holders: Voluntary licensing shifts control to multinational corporations, allowing them to set restrictive terms, often limiting distribution, pricing, and manufacturing flexibility for Indian firms.
    • Loss of Global TRIPS Advocacy Role
      India’s past leadership in pushing for TRIPS flexibilities (Doha Declaration) is undermined, affecting its credibility in representing developing countries’ interests in global forums.
    • Risk to Access and Affordability of Medicines: The FTA could hinder production of low-cost generics, making life-saving drugs less accessible to Indian citizens and low-income countries relying on Indian pharma exports.

    What is Voluntary Licensing?

    Voluntary licensing is when the patent holder (usually a pharmaceutical company) gives permission to another company (often in another country) to produce and sell its patented product, usually generic versions under agreed terms and conditions.

    What is Compulsory Licensing?

    Compulsory licensing is when a government allows someone else to produce a patented product or process without the consent of the patent holder, usually under specific public interest grounds such as health emergencies.

    Which global rules backed India’s earlier patent stand?

    • TRIPS Agreement (WTO):  Allowed for compulsory licensing under public health grounds, helping India prioritize affordable access over strict patent monopolies.
    • Doha Declaration on TRIPS and Public Health (2001): Reaffirmed countries’ right to protect public health and promote access to medicines, supporting India’s flexible patent stance.
    • Paragraph 6 System (WTO, 2003): Enabled countries like India to export generic medicines to nations lacking manufacturing capacity, aligning with its role as the “pharmacy of the world.”
    • Indian Patent Act, 1970 (amended in 2005): Incorporated TRIPS flexibilities such as compulsory licensing and strict patentability criteria (e.g. Section 3(d)) to prevent evergreening.
    • UN High-Level Panel on Access to Medicines (2016): Emphasized that IP rights should not override public health, validating India’s position on balancing innovation and accessibility.

    What should be done? 

    • Reaffirm TRIPS Flexibilities in Trade Negotiations: India must ensure that all future FTAs explicitly protect its right to use compulsory licensing and patent law flexibilitiesunder the TRIPS Agreement.
    • Strengthen Domestic Patent Law: Amend and reinforce provisions like the “working requirement” to protect public health and allow challenges to non-working or unaffordable patents.
    • Enhance Public Health Safeguards in FTAs: Negotiate clear exceptions for essential medicines and green technology, ensuring that IP provisions do not override public interest obligations.
    • Build Strategic Alliances with Global South: Collaborate with developing countries to collectively oppose IP-heavy provisions in trade deals and promote affordable access to medicines globally.
    • Promote Indigenous Innovation and R&D: Invest in public sector research and incentivize Indian pharma and green tech innovation to reduce dependency on foreign patents and strengthen self-reliance.

    Mains PYQ:

    [UPSC 2024] Discuss the implications of 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: This question directly asks about “Intellectual Property rights with respect to life materials” and patents. The article talks about the implications of India’s CETA commitments on its patent regime concerning “patented medicines” and the “patent system”. The “slip up” in the trade pact is precisely about India compromising its traditional stance on IPR, particularly regarding access to medicines, which is a direct implication of intellectual property rights on life materials.

  • Foreign Policy Watch: India-United States

    How much India should trade with Russia must not be guided by Western diktat

    Why in the News?

    Recently, US President Donald Trump has threatened additional penalties on Indian imports, specifically targeting India’s purchase of discounted Russian oil.

    Why is India buying more oil from Russia?

    • Steep Price Discounts: Russian crude is sold at prices significantly below global benchmarks. In FY 2024-25, India imported $56.9 billion worth of mineral fuels from Russia, up from $2.1 billion in 2020-21.
    • Energy Security Priority: Ensuring affordable and reliable energy is vital for India’s economic stability and consumer welfare.
    • No UN Sanctions: India legally continues trade since Russian oil is not under United Nations sanctions, unlike US/EU bans. India cites international legality and moral justification for its purchases.
    • Strategic Pragmatism: India follows a non-aligned, interest-driven foreign policy, prioritizing national needs over bloc politics.

    What are the impacts of the US and NATO warnings on India?

    • Trade Penalty Threats: The US has imposed a 25% tariff on Indian goods and hinted at an additional penalty linked to India’s energy trade with Russia.
    • Secondary Sanctions Warning: NATO has warned that countries continuing business with Russia may face secondary sanctions. NATO Secretary General Mark Rutte issued a caution to India, China, and Brazil for sustaining Russia’s wartime economy.
    • Legislative Pressure in the US: A proposed US Congressional bill seeks a 500% duty on imports from nations trading in Russian-origin petroleum and uranium. If passed, this could impact Indian exports to the US due to its engagement in discounted Russian oil.
    • Strained Strategic Ties: Continued trade with Russia risks diplomatic friction with key Western allies, affecting defence cooperation and technology sharing. India’s balancing strategy between Russia and the West becomes harder as the Western bloc consolidates against Moscow.
    • Push for Energy Diversification: Western pressure is pushing India to rethink its energy security strategy and reduce dependence on Russian crude.

    How can India change its strategy to buy oil from other countries?

    • Diversify Import Sources: India can increase crude purchases from Gulf countries, the US, Latin America, and Africa to reduce dependence on Russia. Eg: India has ramped up imports from Iraq and Saudi Arabia, traditionally among its top suppliers.
    • Sign Long-term Contracts: Establish long-term supply agreements with stable oil-exporting nations to ensure steady and secure inflow. Eg: India signed a long-term deal with Abu Dhabi National Oil Company (ADNOC) for crude supply and storage.
    • Invest in Strategic Partnerships: Strengthen ties through energy diplomacy and joint ventures in oil exploration and production abroad. Eg: Indian PSUs like ONGC Videsh have stakes in oil fields in Vietnam, Venezuela, and Russia.
    • Leverage Spot Market and Strategic Reserves: Use the global spot market for short-term deals and enhance strategic petroleum reserves (SPRs). Eg: India has bought crude from the US and Nigeria on the spot market during price dips.
    • Boost Domestic Refining Flexibility: Upgrade refineries to process diverse crude grades, enabling imports from a wider range of countries. Eg: Reliance and Indian Oil refineries are capable of handling crude from the US, Middle East, and West Africa.

    How can India protect its interests and handle pressure? (Way forward)

    • Prioritize Strategic Autonomy: India should maintain an independent foreign policy, making decisions based on national interest rather than aligning with any geopolitical bloc.
    • Engage in Diplomatic Dialogue: Proactively communicate with Western partners to explain its energy needs and seek carve-outs or exemptions from potential sanctions.
    • Strengthen Domestic Resilience: Increase investments in renewable energy, expand strategic oil reserves, and boost refining capacity to reduce vulnerability to external shocks.
    • Balance Competing Relationships: Carefully navigate ties with both Russia and the West, ensuring that economic cooperation does not compromise strategic partnerships elsewhere.

    Mains PYQ:

    [UPSC 2019] What introduces friction into the ties between India and the United States is that Washington is still unable to find for India a position in its global strategy, which would satisfy India’s National self-esteem and ambitions” Explain with suitable examples.

    Linkage: This question highlights the tension arising when India seeks to act according to its “National self-esteem and ambitions” rather than conforming to a global strategy dictated by another power (the US). This strongly aligns with the idea of India making independent decisions guided by its own interests.

  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    Why the ICJ’s advisory opinion on climate change opens the window for a new, restorative vision of environmental law in India

    Why in the News?

    Recently, the International Court of Justice (ICJ) delivered a landmark advisory opinion on July 23, 2025, clarifying the legal obligations of states regarding climate change.

    Note: The International Court of Justice (ICJ) is the principal judicial organ of the United Nations. While advisory opinions are not formally binding, they hold persuasive (Convince other) legal weight and reflect the Court’s authoritative interpretation of international law.

    What does the ICJ say about saving nature and the climate?

    • Nature is a climate actor, not just a victim: ICJ recognizes ecosystems like forests, oceans, and coral reefs as active parts of the climate system. Eg: Forests absorb CO₂ and regulate rainfall.
    • Protecting nature is a legal climate duty: Countries have a responsibility to safeguard nature as part of their climate obligations. Eg: Wetlands must be preserved to manage floods and store carbon.
    • Ecological literacy is essential: Decision-makers must understand ecosystem roles in climate regulation. Eg: Mangrove destruction worsens storm impact and carbon release.
    • Biodiversity and climate are equal: Climate action must not come at the cost of biodiversity. Eg: Solar parks should not destroy grasslands or wildlife zones.
    • Global justice includes nature’s rights: The ICJ promotes a shift from human-centred to eco-centred justice. Eg: Legal personhood to rivers (like Ganga) aligns with this approach.

    How can India align the ICJ view with Articles 21 and 48A of the Constitution?

    • Recognize environmental rights as part of Right to Life (Article 21): Link clean air, water, and a healthy ecosystem to the fundamental right to life. Eg: Supreme Court’s recognition of the right to a healthy environment in the Subhash Kumar case.
    • Implement Directive Principle on environment (Article 48A): Strengthen policies to protect and improve forests, rivers, and biodiversity. Eg: Initiatives like Namami Gange align with this duty.

    What are the roles of Tribals in India’s climate plans?

    The roles of tribals in India’s climate plans are crucial because they are deeply connected with nature and are key to conservation and climate resilience.

    • Traditional Ecological Knowledge: Tribals have deep understanding of local ecosystems, useful for conservation and climate adaptation. Eg: Bhil tribes, Madhya Pradesh – traditional water harvesting for drought resilience.
    • Forest and Biodiversity Guardianship: Indigenous communities act as forest protectors and biodiversity custodians, aiding carbon sequestration. Eg: Dongria Kondh, Odisha – protect Niyamgiri Hills’ biodiversity.
    • Sustainable Livelihood Practices: Tribes follow low-carbon, eco-friendly practices, supporting climate goals. Eg: Apatani tribe, Arunachal Pradesh – eco-friendly wet rice farming (growing rice in flooded fields).
    • Community-Based Climate Adaptation: Local innovation enables faster climate resilience and resource management. Eg: Women in Kutch, Gujarat – build check dams for water security.
    • Effective Implementation of Climate Schemes: Grassroots involvement improves policy success, ensures inclusive development. Eg: Van Dhan Yojana – empowers tribal collectives for sustainable forest use.

    Which laws should India improve to better protect nature and fight climate change?

    • Strengthen Environmental Impact Assessment (EIA): Make public consultations more transparent and science-based. Eg: Dilution in EIA 2020 draft faced criticism for reducing oversight on polluting projects.
    • Amend Forest Conservation Act (FCA): Ensure tribal rights and ecological value are protected during land diversion. Eg: FCA 2023 allowed exemptions for some forest lands, risking biodiversity loss.
    • Update Air (Prevention and Control of Pollution) Act, 1981: Include stricter penalties and real-time monitoring for industrial emissions. Eg: Delhi’s recurring smog highlights the law’s limited deterrence.

    Way forward:

    • Empower Local Communities: Recognize and support tribal and grassroots climate efforts through legal rights, funding, and capacity building.
    • Mainstream Climate in Policy Planning: Integrate climate adaptation and mitigation into urban planning, agriculture, and infrastructure development.
    • Promote Green Finance and Innovation: Incentivize clean technologies, nature-based solutions, and public-private partnerships for sustainable development.

    Mains PYQ:

    [UPSC 2023] The most significant achievement of modern law in India in the constitutionalization of environmental problems by the Supreme Court. Discuss this statement with the help of relevant case laws.

    Linkage: The article highlights that India’s Supreme Court has interpreted Article 21 (right to life) to include the right to a healthy environment, and the ICJ’s opinion internationalizes this idea, providing a strong basis for India’s legal framework to embrace a restorative vision.

  • Foreign Policy Watch: India-United States

    Soured relations: The higher U.S. tariffs place India at a relative disadvantage

    Why in the News?

    The 25% tariff plus penalty imposed by U.S. President Donald Trump on Indian imports has brought renewed attention to the strain in India-U.S. trade relations.

    Why did the U.S. impose a 25% tariff on Indian imports?

    • High Tariff and Non-Tariff Barriers by India: The U.S. accused India of maintaining high import duties and regulatory restrictions that limited American market access. Eg: Trump repeatedly criticized India’s high tariffs on U.S. goods like motorcycles and dairy products.
    • Geopolitical Frustration Over India-Russia Ties: India’s continued energy and defense cooperation with Russia, despite U.S. pressure, triggered punitive action. Eg: Trump expressed displeasure at India’s oil imports from Russia, linking them to trade penalties.
    • Failure to Reach a Mini-Trade Deal: Repeated delays and stalemates in talks over a limited trade agreement led to frustration in the U.S.

    What stalled the India-U.S. mini-trade deal?

    • India’s Reluctance to Lower Tariffs: India resisted U.S. demands to reduce import duties, especially in agriculture and dairy, to protect domestic interests. Eg: India declined to open its dairy sector to U.S. exporters, citing religious and cultural concerns over feed practices involving animal blood, which conflict with Indian dietary norms.
    • Unclear Negotiation Timelines: The deal lacked a defined timeline, and momentum stalled due to shifting priorities on both sides. Eg: U.S. Trade Representative Jamieson Greer stated the deal needed “some more negotiations,” while India stopped referencing the mini-deal, signaling disengagement.

    How do India’s farm and dairy policies hinder trade talks?

    • Protection of Domestic Farmers: India maintains high tariffs and import restrictions to shield small and marginal farmers from foreign competition. Eg: India imposes import duties of up to 100% on dairy products, making it difficult for U.S. exporters to access the Indian market.
    • Cultural and Religious Sensitivities: Indian regulations emphasise vegetarian feed practices, which clash with Western livestock farming methods. Eg: India rejected U.S. dairy imports because American cows are often fed blood meal, violating Hindu dietary norms.
    • Subsidy and MSP System: India’s Minimum Support Price (MSP) and subsidy policies create a non-level playing field, raising concerns about fairness among trade partners. Eg: The U.S. has objected to India’s public stockholding of food grains, which they claim distorts global agricultural trade.

    How do India-Russia ties affect India-U.S. trade relations?

    • Strategic Autonomy in Foreign Policy: India maintains a non-aligned stance, continuing strong ties with Russia, especially in defence and energy sectors, despite Western pressure. Eg: India’s purchase of the S-400 missile system from Russia triggered U.S. concerns under the CAATSA sanctions regime.
    • Energy Trade with Russia: India increased crude oil imports from Russia due to discounted prices amid the Ukraine conflict, which contradicts U.S.-led sanctions. Eg: In 2023, Russia became one of India’s top oil suppliers, raising questions in Washington about India’s commitment to Western-led efforts.

    How can India balance sovereignty with export interests? (Way forward)

    • Assert Strategic Autonomy while Building Economic Alliances: India must uphold its sovereign right to choose partners (e.g., Russia) while diversifying export markets and enhancing trade ties with nations like the U.S., EU, ASEAN, to reduce dependency and mitigate tariff risks.
    • Pursue Issue-Based Bilateral Negotiations: India can engage in sector-specific negotiations that safeguard sensitive areas (like agriculture) while offering market access in others (like pharmaceuticals or services), thereby balancing domestic priorities with global trade expectations.

    Mains PYQ:

    [UPSC 2018] How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?

    Linkage: The article is directly related to impact of “protectionism” on India’s macroeconomic stability. The “25% tariff ‘plus penalty’ on imports of Indian goods” by the U.S. is a clear example of protectionist measures in world trade. The article explicitly states that these tariffs place India at a “relative disadvantage”, directly relating to the “soured relations” and potential impact on India’s economic stability.

  • Foreign Policy Watch: India-Maldives

    The Maldives: A brief history of the nation and its ties with India

    Why in the News?

    Recently, Prime Minister Narendra Modi’s two-day state visit to the Maldives (July 2025) marked a significant reset in bilateral ties after months of strain following the election of President Mohamed Muizzu, who had earlier run on an ‘India Out’ platform.

    What caused the India-Maldives ties reset under Muizzu?

    • Troop Withdrawal & Civilian Substitution: President Muizzu demanded the removal of Indian military personnel, citing sovereignty. India responded by replacing them with civilian technical staff 
    • High-Level Diplomatic Engagements: Muizzu visited New Delhi in October 2024, signaling openness to dialogue.Indian PM reciprocated with a state visit to Male in July 2025, the first by a foreign Head of State under Muizzu.  
    • Economic Support & Debt Relief: India extended budgetary support and credit lines, easing Maldives’ financial burden. Eg: A ₹4,850 crore Line of Credit and 40% debt repayment reduction in 2025.
    • Softening of Rhetoric & Public Signals: President Muizzu acknowledged historical ties, calling the Indian Ocean a testament to shared heritage. This marked a shift from his earlier India-Out campaign tone.
    • Launch of Institutional Mechanisms: Announcement of India-Maldives Parliamentary Friendship Group and FTA discussions in 2025.

    How has India ensured the Maldives’ security?

    • Military Intervention in Crisis: In 1988, India launched Operation Cactus to foil a coup attempt, securing the capital and leadership.
    • Bilateral Defence Cooperation:  The DOSTI maritime exercise, started in 1991, strengthens Coast Guard coordination.
    • Strategic Presence and Infrastructure Support: India maintained a defensive presence (now civilian) and supported surveillance capabilities like helped set up coastal radar systems.
    • Humanitarian and Disaster Relief Operations: India has provided quick assistance during natural disasters, showcasing readiness and goodwill. India provided critical aid to Maldives after the 2004 Indian Ocean tsunami.
    • Regional Security Engagements: Maldives is a key member of the Colombo Security Conclave, focusing on counter-terrorism and maritime security.

    Why is the Maldives vital for India amid China’s presence?

    • Strategic Location in the Indian Ocean: The Maldives lies along key international shipping lanes, making it critical for India’s maritime security and energy supply routes. Eg: Over 80% of India’s energy imports pass close to the Maldives archipelago, near the Eight Degree Channel.
    • Countering China’s Expanding Influence: China’s increasing investments and debt diplomacy in Maldives threaten to shift the regional balance. Eg: The Sinamale Bridge, built with Chinese funding, raised concerns over strategic dependence.
    • Ensuring Regional Stability and Security Cooperation: Maldives’ support is essential for coordinated patrols, anti-terrorism, and anti-piracy efforts.

    Way forward: 

    • Strengthen People-to-People Ties and Institutional Dialogue: Promote educational, cultural, and tourism exchanges while deepening parliamentary and civil service cooperationto build long-term goodwill and trust.
    • Enhance Transparent and Sustainable Development Partnerships: Focus on jointly planned, community-driven projects with clear benefits to Maldivian citizens, countering external influence through mutual respect and shared values.

    Mains PYQ:

    [UPSC 2024] Discuss the geopolitical and geostrategic importance of Maldives for India with a focus on global trade and energy flows. Further also discuss how this relationship affects India’s maritime security and regional stability amidst international competition?

     

    Linkage: The article talk about the Maldives’ geographical location in the northern Indian Ocean and its historical and ongoing ties with India. It also highlights India’s concerns about “growing Chinese influence in the region”, which directly relates to “international competition” and its impact on “regional stability.” The question also touches upon “global trade and energy flows” and “maritime security,” which are intrinsic to the strategic importance of an island nation like Maldives.

  • Police Reforms – SC directives, NPC, other committees reports

    India’s Police must get out of Dirty Harry’s shadow

    Why in the News?

    Recently, the custodial death of Ajith Kumar in Tamil Nadu has reignited concerns about police torture and custodial violence in India, drawing attention to the ongoing abuse of power, lack of accountability, and systemic failures in law enforcement

    Note: “Dirty Harry’s shadow” is the ethical grey zone that officers may enter when they justify unethical or illegal behavior (e.g., excessive force, illegal search, or planting evidence) on the grounds that it’s necessary to serve a greater good (like convicting a dangerous criminal). 

    What is the status of custodial torture in India?

    • Between 2010 and 2020, NHRC data reports 17,146 custodial deaths (judicial/police), averaging nearly five deaths per day.
    • From 2001 to 2020, only 26 police personnel were convicted out of 1,888 recorded custodial deaths, reflecting a severe lack of accountability in the system.

    Why does custodial torture persist in India despite legal safeguards?

    1. Weak Enforcement of Legal Safeguards: Supreme Court guidelines (e.g., D.K. Basu guidelines) are often ignored, especially by lower-level police.
    The D.K. Basu guidelines are a set of procedural safeguards laid down by the Supreme Court of India in 1996 in the landmark case D.K. Basu vs. State of West Bengal to prevent custodial torture, deaths, and abuse of police power.

    Key Guidelines (To be followed during arrest and detention):

    1. Arrest memo must be prepared, signed by the arrestee and a witness, with time and date.
    2. Inform a relative/friend: The person arrested must be allowed to inform someone about the arrest.
    3. Right to legal counsel: The arrestee has the right to meet their lawyer during interrogation.
    4. Medical examination: Arrestees must be medically examined every 48 hours by a government doctor.
    5. Copy of arrest memo: Sent to the local magistrate for records.
    6. Daily diary entry: Time, place of arrest, and custody details must be recorded in the police diary.
    7. Police identification: Arresting officers must have name tags and their details must be recorded.
    8. Notice board in police station: Display of rights of arrested persons.
    9. Timely production before magistrate: Within 24 hours of arrest, as per Article 22 of the Constitution.
    1. Lack of Accountability: Very few police personnel are punished, creating a culture of impunity.
      3. Societal Indifference and Pressure: Public tolerance for “tough policing” and pressure to solve cases fast encourages use of force to extract confessions.
    2. Legal Gaps That Enable Torture:
    • No Standalone Law: There’s no specific law criminalising custodial torture. The 2010 Prevention of Torture Bill was never passed.
    • Non-Ratification of UNCAT: India signed but hasn’t ratified the UN Convention Against Torture, so it lacks binding obligations to reform.
    • Poor Protection for Victims/Witnesses: Those who report torture often face threats, with little legal protection – delaying or discouraging justice. Eg: The Jayaraj-Bennicks case (2020)

    Should India ratify the UN Convention Against Torture?

    • Enhances Legal Accountability and Human Rights Protections: Ratifying UNCAT would require India to enact a dedicated anti-torture law, ensuring clear definitions, accountability, and punishment for custodial abuse. Eg: In the Jayaraj and Bennicks case (2020), the absence of a strong torture law delayed justice and highlighted the need for international legal standards.
    • Strengthens India’s Global Human Rights Image: As a democracy and UN member, ratification would align India with global norms, reinforcing its commitment to human dignity and justice. India often faces criticism at UN Human Rights Council reviews for non-ratification, which weakens its diplomatic stance on rights issues.

    What reforms are needed? (Way forward)

    • Enact a Dedicated Anti-Torture Law: Clearly define torture, prescribe strict punishment, and ensure victim compensation and rehabilitation.

    • Set Up Independent Oversight Bodies: Create state and district-level police complaints authorities for unbiased investigation.

    • Ensure Custodial Surveillance: Install CCTVs in all custody areas and mandate regular monitoring and audits.

    • Train Police on Human Rights: Conduct regular training programs focused on rights-based policing and legal safeguards.

    Mains PYQ:

    [UPSC 2023] The Constitution of India is a living instrument with capabilities of enormous dynamism. It is a constitution made for a progressive society”. Illustrate with special reference to the expanding horizons of the right to life and personal liberty.

    Linkage: The article explicitly links the Supreme Court’s reaffirmation of “dignity and bodily autonomy as fundamental rights” in the K.S. Puttaswamy case (2017) to the ongoing issue of rampant torture in custody. This question allows for a discussion on how judicial interpretations have broadened the scope of fundamental rights, which are directly challenged by the “Dirty Harry” policing methods that the source criticises. 

  • Arrest and unrest: Communal agenda is behind the arrest of nuns for human trafficking

    Why in the News?

    Recently the arrest of two Catholic nuns in Chhattisgarh on charges of human trafficking and forced religious conversion has sparked widespread political and religious backlash.

    Why are anti-conversion laws controversial in tribal regions?

    • Misuse Against Voluntary Conversions: These laws, intended to curb conversions through force or fraud, are often misused to harass tribal Christians and missionaries involved in voluntary and lawful religious activities. Eg: In Chhattisgarh, two Catholic nuns were arrested for alleged forced conversion, despite the tribal girls and their families confirming it was voluntary.
    • Targeting of Minority Rights: Anti-conversion laws disproportionately affect Christian and Muslim minorities, leading to surveillance, fear, and restricted religious freedom, especially among tribal converts. Eg: Several tribal states like Madhya Pradesh, Jharkhand, and Odisha have used these laws to criminalise conversions, even when done without coercion.
    • Threat of Delisting ST Converts: There is a growing debate on removing Scheduled Tribe status from tribals who convert to Christianity, threatening their constitutional safeguards and entitlements. Eg: In Chhattisgarh, such debates have intensified, questioning the identity and rights of Christian Adivasis.

    What is the Sarna Religious Code?

    The Sarna religious code is a demand by tribal (Adivasi) communities in India to recognize Sarnaism as a distinct religion in official government records, especially in the Census.

    Key Features:

    • Nature Worship Tradition: Sarna followers worship nature — like sacred groves (called Sarnas), hills, rivers, and the Earth. They follow traditional Adivasi customs, not Hindu, Christian, or Muslim practices.
    • Cultural Assertion and Legal Recognition: Recognizing the Sarna code would safeguard tribal culture, language, and identity, and protect their constitutional and land rights from religious assimilation.

    What constitutional rights to religious freedom are being undermined?

    • Right to Freedom of Religion (Article 25): Citizens have the right to freely profess, practice, and propagate any religion. This is undermined when voluntary conversions are falsely labelled as forced or illegal, especially among tribals and minorities.
    • Right to Personal Liberty (Article 21): The right to make autonomous choices—including choosing one’s religion—is a part of personal liberty. Anti-conversion laws infringe on this by criminalizing voluntary decisions, often without evidence of coercion.
    • Equality Before Law (Article 14): These laws are selectively enforced against Christians and Muslims, leading to discriminatory treatment. This violates the principle of equality and non-discrimination, a core part of India’s secular constitutional framework.

    What are the actual conversions happened in India?

    • Mass Dalit Conversions to Buddhism (1956 and after): Led by Dr. B.R. Ambedkar, over 5 lakh Dalits converted to Buddhism in 1956 to escape caste-based oppression and reclaim dignity. Eg: Ambedkar’s historic mass conversion in Nagpur triggered a broader movement of religious shift rooted in social reform.
    • Christian Conversions in Tribal Regions: In states like Jharkhand, Chhattisgarh, and Odisha, many tribal communities have converted to Christianity, often due to access to education, healthcare, and social support from missionaries. Eg: The Kandhamal district in Odisha has seen a significant rise in Christian population over decades, leading to communal tensions.
    • ‘Ghar Wapsi’ or Reconversion to Hinduism: Organised by Hindu groups like the Vishwa Hindu Parishad (VHP), ‘Ghar Wapsi’ aims to reconvert people who earlier embraced other faiths back to Hinduism. Eg: In Uttar Pradesh (2014), VHP claimed hundreds of Muslims and Christians were brought back to Hinduism through Ghar Wapsi drives, raising ethical and legal concerns.

    Do Conversions Impact Indian Society Negatively?

    • Social Polarisation and Communal Tensions: Conversions whether into or out of a religion often become flashpoints for communal conflict, especially when framed as threats to majority identity. This can disrupt social harmony and lead to violence, as seen in Kandhamal (Odisha, 2008) and other conflict-prone areas.
    • Political Exploitation and Fear-Mongering: Conversion is frequently politicised, used to mobilise vote banks or target minority communities, which undermines democratic values and diverts focus from genuine socio-economic development.
    • Distrust and Fragmentation in Local Communities: Conversions may sometimes lead to social alienation or loss of community ties, especially in tightly-knit rural or tribal areas, where religious identity is deeply linked with cultural belonging.

    Way forward: 

    • Strengthen Constitutional Safeguards: Ensure that anti-conversion laws align with Articles 25-28 of the Constitution by protecting voluntary religious choicewhile penalizing only coercive or fraudulent practices.
    • Promote Interfaith Dialogue and Tribal Autonomy: Encourage community-level engagement and interfaith dialogue, and recognize tribal cultural rights including support for demands like the Sarna religious code to prevent polarization and protect indigenous identities.

    Mains PYQ:

    [UPSC 2024] Intercaste marriages between castes which have socio-economic parity have increased, to some extent, but this is less true of interreligious marriages. Discuss.

    Linkage: The arrest of the nuns and the subsequent clarification by the girls’ kin that there was “no forceful conversion” directly touches upon the sensitive issue of interreligious interactions and alleged conversions, which anti-conversion laws are often used to criminalize, especially in the context of interfaith marriages.

  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    Interrupted growth Industrial growth is still tied to government spends on infrastructure 

    Why in the News?

    India’s Index of Industrial Production (IIP) recorded a 10-month low growth of 1.5% in June, primarily due to a sharp decline in mining (–8.7%) and electricity output (–2.6%).

    What caused the IIP slowdown in June?

    • Sharp contraction in mining and electricity output: Mining activity declined by –8.7%, and electricity generation fell by –2.6%, significantly dragging overall growth. These two sectors jointly account for 22.3% of the IIP weightage.
    • Erratic monsoon and waterlogging in key mining belts: Early and uneven southwest monsoon caused flooding in mining areas of Odisha, Jharkhand, and West Bengal, disrupting production and logistics.
    • Damage to infrastructure and supply chain disruptions: Waterlogging led to damage in power distribution infrastructure and interrupted supply chains, resulting in subdued industrial activity and power demand.

    How did climate events contribute?

    • Disruption of mining activities: Heavy rainfall and waterlogging in mineral-rich regions like Jharkhand, Odisha, and West Bengal hindered extraction and transportation of key minerals. Eg: Jharkhand received 504.8 mm rainfall (against a normal of 307 mm), affecting coal and iron ore production.
    • Damage to power infrastructure: Flooding led to breakdowns in electricity distribution systems, especially in rural and semi-industrial belts. Eg: Widespread inundation disrupted power supply, lowering electricity output by –2.6% in June.
    • Supply chain interruptions: Climate irregularities caused logistical delays and increased input costs, hampering industrial flow.

    Why is India reluctant to link climate events with economic data like IIP or GDP?

    • Institutional hesitation and narrative control: Key agencies like the Ministry of Statistics and RBI prefer attributing economic fluctuations to factors like high base effects, global demand shifts, or input cost variations, avoiding politically sensitive climate linkages.
    • Complexity of climate attribution: Linking specific events (like heavy rain or drought) to climate change requires scientific modelling and probabilistic data, which are resource-intensive and not yet integrated into mainstream reporting.
    • Fear of politicisation and accountability: Acknowledging climate-linked economic slowdowns could invite policy criticism and demand for corrective action, making policymakers cautious.

    How do climate disruptions in mining and power affect industrial output?

    • Halted Mining Operations: Extreme rainfall leads to waterlogging and flooding in mining belts, making extraction unsafe and unviable. Eg: In June, mining activity contracted by –8.7% due to excessive rainfall in Odisha, Jharkhand, and West Bengal.
    • Damage to Power Infrastructure: Climate events like floods and storms disrupt power transmission lines and generation facilities, leading to reduced electricity output. Eg: Electricity production shrank by –2.6% in June, which lowered industrial productivity across sectors.
    • Supply Chain Disruptions: Delays in the supply of raw materials (like coal) due to climate-induced transport and logistical breakdowns affect the manufacturing cycle. Eg: Sluggish industrial output growth of 3.9% in June, despite some sectoral growth, was partly due to such disruptions.

    What can India learn from global practices in integrating climate risk into economic reporting?

    • Mainstream Climate Risk in Macroeconomic Analysis: Institutions like the European Central Bank (ECB) and Bank of England incorporate climate risk assessments into their economic forecasts and financial stability reports. Eg: The ECB uses climate stress tests to estimate the impact of extreme weather on GDP and inflation projections, helping shape responsive monetary and fiscal policies.
    • Develop Probabilistic Climate Attribution Models: Global agencies invest in scientific and data-driven models to link specific climate events to broader economic outcomes. Eg: The UK Met Office partners with economic bodies to assess how floods or heatwaves influence sectoral output and employment, ensuring better policy alignment and risk preparedness.

    Why is climate attribution important for informed economic policymaking?

    • Enables Targeted Risk Mitigation and Resource Allocation: Understanding the economic impact of specific climate events helps policymakers design sector-specific interventions, such as improved infrastructure in flood-prone mining regions or energy grid resilience plans.
    • Strengthens Long-term Economic Planning and Resilience: Integrating climate attribution allows for accurate forecasting and budgeting, ensuring that climate-linked disruptions (e.g., to power or mining) are factored into growth strategies, insurance frameworks, and industrial policies.

    Way forward: 

    • Integrate Climate Risk Frameworks into Economic Reporting: Agencies like the Ministry of Statistics and RBI should formally include climate-related variables in metrics like IIP and GDP, using probabilistic models and event attribution tools to capture the economic impact of extreme weather events.
    • Build Institutional Capacity for Climate-Economic Analysis: Establish a dedicated national climate-economic observatory or task force to monitor, assess, and publish regular reports on how climate disruptions affect different sectors, drawing inspiration from institutions like the European Central Bank.

    Mains PYQ:

    [UPSC 2021] Investment in infrastructure is essential for more rapid and inclusive economic growth.”Discuss in the light of India’s experience.

    Linkage: This question is highly relevant as it directly addresses the crucial role of “investment in infrastructure” for “economic growth.” The article explicitly states that “the robust growth in capital (3.5%), intermediate (5.5%) and infrastructure (7.2%) goods output, indicates that much of industrial growth continues to hinge on the government’s infrastructure spends”.

  • Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

    Adopt formalisation to power productivity growth 

    Why in the News?

    India’s manufacturing sector is facing renewed scrutiny due to the rising contractualisation of labour, which has grown from 20% in 1999-2000 to 40.7% in 2022-23, according to the Annual Survey of Industries

    What drives the rise of contract labour in formal manufacturing?

    • Cost Minimization: Employers hire contract workers to reduce wage bills and avoid social security contributions. Eg: In large firms, contract workers often earn up to 31% less than regular employees.
    • Bypassing Labour Laws: Contracting allows firms to circumvent regulations under the Industrial Disputes Act, 1947, such as rules on retrenchment and notice period.  
    • Operational Flexibility: Firms use contract labour to scale up or down quickly with demand without long-term obligations. Eg: Seasonal industries like textiles use short-term contract workers during peak export periods.
    • Third-Party Shielding: Outsourcing through contractors protects the principal employer from legal accountability for employment terms. Eg: Automobile assembly lines often outsource non-core work to manpower agencies.
    • Sector-Wide Trend Across Sizes: The rise in contract labour is not limited to small firms; it extends to large and capital-intensive industries. Eg: Between 2000 and 2022, contract labour share doubled from 20% to 40.7% across all industries.

    Why does contract labour hurt long-term productivity?

    • Low Skill Development: Contract workers are rarely given training or upskilling opportunities, limiting their efficiency and innovation. Eg: In India’s electronics manufacturing sector, companies like Dixon Technologies rely heavily on contract labour, leading to a shortage of skilled technicians for precision assembly.
    • High Attrition and Turnover: Contract workers frequently change jobs due to lack of job security, resulting in loss of institutional knowledge. Eg: In food processing units in Punjab, annual turnover among contract workers exceeds 70%, disrupting workflow continuity.
    • Reduced Worker Motivation: Absence of benefits like promotion, pension, or medical cover leads to low morale and reduced effort. Eg: In government-run power plants, studies have shown that contract workers contribute less to maintenance efficiency than permanent staff, affecting overall plant performance.
    • Weak Industrial Relations: Contract workers are often excluded from grievance redressal mechanisms or unions, increasing workplace tensions and risking disruptions. Eg: Maruti Suzuki’s Manesar plant witnessed violent unrest in 2012, partly attributed to discontent between permanent and contract workers.
    • Quality Compromise and Rework: Contract workers may lack the ownership mindset, resulting in errors and product rework, which lowers productivity. Eg: In garment export hubs like Tiruppur, repeated quality rejections from overseas buyers have been traced to inconsistent output from untrained contract labour.
    • Wage and cost gaps act as a disincentive
      • Unequal pay for equal work: Contract workers often earn much less than permanent workers for doing the same job, violating fairness.
        Eg: In PSUs like ONGC, contract workers earn up to 50% less than permanent employees for the same technical work.
      • Avoidance of social security: Employers save costs by not contributing to Provident Fund, gratuity, or health benefits, increasing worker insecurity.
        Eg: A CAG audit of private thermal power plants found 30–40% labour cost savings due to evasion of statutory benefits.

    What are the existing policy?

    • Contract Labour (Regulation and Abolition) Act, 1970: This law aims to regulate the employment of contract labour in certain establishments and abolish it in specific cases where work is perennial in nature. However, enforcement is weak, and many employers bypass provisions through sub-contracting.
    • Code on Occupational Safety, Health and Working Conditions (OSH Code), 2020: Consolidates 13 labour laws, including those related to health, safety, and working conditions of workers (including contract labour). It mandates registration of establishments and welfare facilities, but monitoring and implementation remain inconsistent.
    • Fixed Term Employment (FTE) provision under the Industrial Relations Code, 2020: Legalises short-term employment contracts with a provision for equal pay for equal work. But in practice, social security benefits and job security are often denied to such workers.

    Way forward: 

    • Ensure Universal Social Protection: Extend mandatory social security coverage (e.g., ESIC, EPF) to all contract and gig workers, with portable benefits and employer accountability, regardless of tenure or contract type.
    • Improve Legal Enforcement and Transparency: Strengthen labour law enforcement through digital compliance portals, randomised inspections, and public disclosure of contract employment data to prevent misuse and promote accountability.

    Mains PYQ:

    [UPSC 2024] Discuss the merits and demerits of the four ‘Labour Codes’ in the context of labour market reforms in India. What has been the progress so far in this regard?

    Linkage: The article talks about the “labour code on industrial relations” introduced in 2020 which is related to the demand of the question. This code, awaiting implementation, aims to provide greater flexibility in hiring and firing by allowing firms to directly hire non-regular workers on fixed-term contracts without third-party contractors. However, it also seeks to curb exploitation by mandating basic statutory employment benefits.