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  • Nuclear Energy

    [13th February 2025] The Hindu Op-ed: Nuclear energy — dangerous concessions on liability

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Disaster Management

    PYQ Relevance:

    Q) Give an account of the growth and development of nuclear science and technology in India. What is the advantage of a fast breeder reactor programme in India? (UPSC CSE 2017)

     

    Mentor’s Comment: UPSC mains have always focused on nuclear science and technology (2017), and atomic energy (2013).

    In the Union Budget speech on February 1, Finance Minister Nirmala Sitharaman announced plans to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage (CLND) Act. This move is likely to be welcomed by the U.S., where past governments have opposed India’s law because it holds nuclear manufacturers partly responsible for accidents. However, in India, removing supplier liability could be a major concern, as it might weaken nuclear safety measures.

     

    Today’s editorial talks about the Atomic Energy Act and the Civil Liability for Nuclear Damage (CLND) Act. This content will help in GS papers 2 and 3 in mains answer writing.

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    Let’s learn!

    Why in the News?

    The mention of plans to amend the Civil Liability for Nuclear Damage Act in the Union Budget is a serious issue that needs attention.

    What is the Atomic Energy Act?

    • The Atomic Energy Act, 1962 is an Indian law that regulates the development, production, and use of nuclear energy for peaceful purposes while ensuring national security. It gives the government exclusive control over nuclear materials, plants, and research and allows the establishment of nuclear power projects. The Act also covers radiation safety, uranium mining, reactor operations, and waste disposal to prevent misuse and ensure public safety.

    What is the Civil Liability for Nuclear Damage Act? 

    • The Civil Liability for Nuclear Damage (CLND) Act, 2010 is an Indian law that defines liability in case of a nuclear accident. It ensures compensation for victims while holding nuclear plant operators accountable.

    Key Features:

    • Operator Liability: The primary financial responsibility for any nuclear accident rests with the plant operator (NPCIL in India), not the supplier.
    • Right of Recourse: Unlike many other countries, India allows operators to seek compensation from suppliers if defective equipment or services cause an accident (Section 17).
    • Liability Cap: Operator liability is capped at ₹1,500 crore (~$180 million), with the government covering additional costs if needed.
    • Exclusion from Global Regimes: India has not joined international nuclear liability agreements like the Convention on Supplementary Compensation (CSC), meaning financial responsibility remains domestic.

    What are the safety and liability concerns related to nuclear energy?

    • Risk of Catastrophic Accidents: Nuclear plant failures can lead to massive radiation leaks, environmental destruction, and long-term health impacts.Example: The Fukushima Daiichi disaster (2011, Japan) resulted from a tsunami, causing multiple reactor meltdowns and widespread radioactive contamination.
    • Design Flaws and Negligence: Suppliers may overlook or downplay safety risks in reactor designs, leading to vulnerabilities. Example: The Three Mile Island accident (1979, USA) occurred due to a known reactor design flaw that the supplier failed to address.
    • Limited Liability for Suppliers: In many countries, nuclear suppliers are indemnified, placing financial liability entirely on plant operators and governments.Example: General Electric (GE), which designed the Fukushima reactors, faced no financial consequences due to Japan’s liability laws.
    • Insufficient Compensation for Victims: Liability caps limit compensation for victims, despite the high costs of nuclear disasters. Example: India’s Civil Liability for Nuclear Damage (CLND) Act caps liability at ₹1,500 crore, whereas Fukushima’s cleanup costs are estimated at ₹20-46 lakh crore.
    • Radioactive Waste and Long-Term Risks: Safe disposal of nuclear waste remains a major challenge, with risks of leaks and contamination lasting thousands of years.Example: The Chernobyl disaster (1986, USSR) left a radioactive exclusion zone that remains uninhabitable nearly 40 years later.

    How does India’s approach to nuclear liability differ from global standards?

    • Operator Liability with Limited Supplier Responsibility: India’s Civil Liability for Nuclear Damage (CLND) Act, 2010, places primary liability on the operator (NPCIL), but allows it to seek compensation from suppliers in case of defective equipment or services (Right of Recourse, Section 17).
      • Global Standard: Most countries fully indemnify suppliers, meaning they bear no financial responsibility after supplying reactors.
      • Example: In Japan, General Electric (GE) faced no liability for the Fukushima disaster (2011), while in India, foreign suppliers fear financial risks if an accident occurs.
    • Liability Cap vs. Unlimited Liability in Some Countries: India caps operator liability at ₹1,500 crore (~$180 million), with additional compensation coming from the government if needed.
      • Global Standard: Some countries, like Germany, impose unlimited liability on operators to ensure full compensation. The U.S. Price-Anderson Act establishes a large industry-backed fund for damages beyond a certain limit.
      • Example: After the Chernobyl disaster (1986, USSR), the Soviet government bore the entire cost (~$235 billion), whereas an Indian accident beyond ₹1,500 crore would shift the financial burden to taxpayers.
    • India is Not Part of Global Nuclear Liability Regimes: India has not signed the Convention on Supplementary Compensation for Nuclear Damage (CSC), which standardizes liability norms and creates an international compensation pool.
      • Global Standard: Most nuclear-powered nations, including the U.S. and Japan, are CSC members, ensuring global financial support for nuclear accidents.
      • Example: If a nuclear accident occurs in France, CSC members contribute to compensation, but in India, all financial burdens remain domestic.

    What are the reasons behind the government’s plan to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage (CLND) Act?

    • Attracting Foreign Investment and Suppliers – The existing CLND Act allows India’s nuclear operator (NPCIL) to seek compensation from foreign suppliers in case of faulty equipment, discouraging companies from supplying reactors. Amendments could limit supplier liability, making India a more attractive market for nuclear investments from countries like the U.S., France, and Russia.
    • Expanding Nuclear Energy Capacity – India aims to increase its nuclear power generation to meet rising energy demands and climate goals. Simplifying liability laws could accelerate agreements with international partners and facilitate the construction of new nuclear plants under deals such as the India-U.S. Civil Nuclear Agreement.

    What are the other implications of increasing nuclear energy reliance?

    • High Economic Costs and Project Delays: Nuclear power plants require massive upfront investments, long construction periods, and frequent cost overruns.
      • Example: The AP1000 reactors in Georgia, USA, were initially estimated at $14 billion but were completed at $36.8 billion—a 250% cost overrun. Similarly, India’s Kudankulam Nuclear Power Plant faced significant delays and cost escalations.
    • Nuclear Waste Management and Environmental Risks: Nuclear energy produces radioactive waste that remains hazardous for thousands of years, requiring secure disposal and long-term monitoring.
      • Example: The Fukushima disaster (2011) led to the release of radioactive material, contaminating land and water, with cleanup costs estimated between ¥35-80 trillion (~₹20-46 lakh crore). India lacks permanent storage facilities for high-level nuclear waste.
    • Geopolitical and Security Concerns: Expanding nuclear energy means higher dependence on foreign suppliers, leading to strategic vulnerabilities and potential external influence.
      • Example: India’s civil nuclear deal with the U.S. (2008) opened doors for technology transfer, but suppliers now demand liability protection before delivering reactors, creating diplomatic pressure.

    Way forward:

    • Strengthen Liability and Safety Frameworks: The government should Amend the Civil Liability for Nuclear Damage (CLND) Act to ensure fair risk-sharing between operators and suppliers.
      • Need to invest in advanced reactor safety technologies (e.g., Small Modular Reactors – SMRs) and strengthen independent regulatory oversight.
    • Develop Robust Waste Management and Indigenous Capabilities: The government should establish permanent disposal sites for high-level nuclear waste with stringent monitoring.
      • Need to enhance domestic nuclear technology (e.g., Thorium-based reactors) to reduce reliance on foreign suppliers and improve energy security.

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

    [12th February 2025] The Hindu Op-ed: A role for India in South-South climate cooperation

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    PYQ Relevance:

    Q) Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (UPSC CSE 2018)

     

    Mentor’s Comment: UPSC mains have always focused on Climate Change (2017), and COP 26 (2021).

    In the Climate Change Performance Index (CCPI) 2025, India ranks among the top 10 climate performers globally, underscoring its commitment to climate action. India has been recognized for its significant role in South-South climate cooperation, reflecting its leadership in fostering collaboration among developing nations to address climate change. 

     

    Today’s editorial highlights how South-South cooperation can help achieve climate goals, promote sustainable development, and empower developing countries to meet their climate targets, drawing attention to India’s strategic opportunities and responsibilities in this area. This content would help in substantiation of answers in Mains GS Paper III (Environment and Biodiversity).

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    Let’s learn!

    Why in the News?

    India’s potential role in fostering climate cooperation between developing nations through South-South cooperation in the context of the Paris Agreement is needed for the  global solutions to tackle climate change.

    How does Article 6 of the Paris Agreement benefit India in achieving its climate goals?

    • Carbon Markets: Under Article 6.2, countries can trade carbon credits to meet their emissions reduction targets. India can participate in these carbon markets, generating revenue by selling surplus carbon credits earned through emission reductions in sectors like renewable energy, energy efficiency, and afforestation.
        • By engaging in carbon trading, India can attract foreign investments from companies in developed countries looking to offset their emissions. This can provide funding for clean energy projects, supporting India’s transition to a low-carbon economy.
    • Cooperative Approaches: Article 6.4 establishes a global carbon market mechanism, similar to the Clean Development Mechanism (CDM) under the Kyoto Protocol, but with improvements. India could utilize this mechanism to undertake joint projects with other countries that help reduce emissions while fostering sustainable development.
      • Through cooperative approaches, India can access advanced technologies, practices, and expertise from other countries, enabling its industries to adopt cleaner technologies and improve energy efficiency, contributing to its climate and development goals.
    • Non-Market Approaches:
      • Article 6.8 promotes non-market mechanisms, which focus on facilitating actions like capacity-building, finance, and knowledge sharing to address climate change. This can help India strengthen its national capabilities to implement climate policies and adapt to the impacts of climate change, particularly in vulnerable regions.
      • India, being highly vulnerable to the effects of climate change, can benefit from non-market approaches to enhance its adaptive capacities and resilience, addressing critical sectors like agriculture, water resources, and infrastructure.
    • Flexibility in Meeting Targets:
      • The flexibility provided by Article 6 allows India to find the most cost-effective solutions for emission reductions, especially in sectors where technology deployment is expensive or challenging. It provides an opportunity to meet its Nationally Determined Contributions (NDCs) in a way that balances economic growth with environmental sustainability.

    What are the potential challenges India faces in utilizing ITMOs and engaging in international climate finance?

    • Monitoring, Reporting, and Verification (MRV) Systems: India’s current MRV systems for tracking emissions reductions may not meet the rigorous standards required for ITMOs, which are crucial for ensuring transparency and accountability in carbon markets.
      • Inadequate MRV mechanisms could hinder India’s ability to accurately quantify and report emission reductions, limiting its participation in carbon trading and climate finance.
    • Accessing Climate Finance: Despite being a major developing country, India faces challenges in accessing sufficient and predictable climate finance from international sources, as the global financing mechanisms often favor smaller or more vulnerable nations.
      • Limited access to finance can slow down India’s ability to implement large-scale climate projects, especially in sectors like renewable energy, adaptation, and infrastructure development.
    • Ensuring Environmental Integrity: While ITMOs enable carbon trading, there’s a risk of “low-quality” credits or “double counting” (where emissions reductions are claimed by multiple parties), which could undermine the credibility and environmental integrity of the system.
      • If India is not careful in ensuring robust methodologies for generating and trading ITMOs, it might face challenges in maintaining the credibility of its climate commitments, affecting its international reputation.
    • Domestic Policy and Institutional Coordination: India’s domestic policies on climate change may not be fully aligned with the requirements of international climate finance mechanisms or ITMO systems. There is also a need for better coordination among various ministries and stakeholders to implement and track climate action effectively.
      • Misalignment between international climate goals and domestic policies could result in inefficiencies and missed opportunities to access ITMOs and climate finance.

    What are the opportunities for India under South-South cooperation via Article 6.2?

    • Carbon Trading with Fellow Developing Countries: India can collaborate with neighbouring countries like Sri Lanka, Bangladesh, and others in the South Asian region to work together to reduce emissions through renewable energy, afforestation, or energy efficiency programs.
      • India could sell any surplus carbon credits generated through its own emission reduction efforts to other developing countries that need help meeting their own NDCs (Nationally Determined Contributions). This allows India to both achieve its climate goals and potentially generate revenue.
    • Technology and Knowledge Transfer: India has already made significant progress in solar energy and can offer valuable lessons and technologies to fellow developing countries.
      • India can also help other countries develop adaptation strategies for climate change impacts, such as water management techniques, disaster preparedness, and climate-resilient infrastructure.
      • In return, India could receive new technologies, methods, and knowledge to enhance its own climate resilience.
    • Joint Ventures for Clean Energy Projects: India can partner with other developing countries to co-develop large-scale renewable energy projects, such as solar, wind, or hydropower. Joint initiatives could be supported by carbon markets, with emission reductions which could attract investments, expertise, and improve access to clean energy technologies.
      • By collaborating with other developing countries, India can contribute to the development of affordable, scalable solutions that are tailored to the specific needs of developing nations.
      • These solutions could be implemented locally, reducing emissions and improving energy access.
    • Strengthening Capacity and Institutional Frameworks: South-South cooperation can help India and other developing countries to assist in establishing frameworks for monitoring, reporting, and verifying (MRV) emissions reductions, benefiting both India and its partner countries.
      • India can help south countries in refining its strategies and implementing the best practices that suit their own development contexts.
    • Leveraging Climate Finance: India, by engaging in South-South cooperation, could also have access to international financial instruments that make climate action more affordable.
      • This would be particularly beneficial in sectors where India faces challenges in scaling up clean technologies, like electric vehicles, or in regions like rural areas that require adaptation interventions.

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  • The Crisis In The Middle East

    [11th February 2025] The Hindu Op-ed: Gaza and Trump’s ‘expanding the canvas’ strategy

    op-ed snap | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    PYQ Relevance:

    Q) “India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss. (UPSC CSE 2018)

    Q) Consider the following statements: (2023)

    Statement I: Israel has established diplomatic relations with some Arab States.

    Statement-II: The ‘Arab Peace Initiative’ mediated by Saudi Arabia was signed by Israel and Arab League.

    Which one of the following is correct in respect of the above statements?

    (a) Both Statement-I and Statement-II are correct and Statement II is the correct explanation for Statement I

    (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

    (c) Statement I is correct but Statement II is incorrect

    (d) Statement I is incorrect but Statement II is correct

     

    Mentor’s Comment: UPSC mains have always focused on India’s relations with Israel (2018), and the Arab Peace Initiative for Israel and Palestine ( 2023).

    On February 4, 2025, Donald Trump proposed relocating Gaza’s 2.3 million residents to Egypt and Jordan, turning the area into a global resort under U.S. control. He hinted at a West Bank plan soon. Alongside Netanyahu, he praised Saudi Crown Prince Mb Salman, who reaffirmed that Saudi-Israel ties depend on a Palestinian state’s creation.

     

    Today’s editorial talks about issues in the Middle East which is always in the news because of the Israel and Palestine conflict. This topic is also the favourite of UPSC in GS Paper2 mains and prelims related to International relations above mentioned in the box (PYQ Relevance). This content would help in substantiation of answers in Mains GS Paper 2.

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    Let’s learn!

    Why in the News?

    Donald Trump recently proposed an audacious plan to relocate 2.3 million residents of the Gaza Strip to Egypt and Jordan, turning Gaza into a global resort, which has stirred geopolitical tension.

    • This suggestion, along with his praise for Saudi Crown Prince Mohammed bin Salman (MbS), hints at possible changes in the West Asia region, especially concerning the Israel-Palestine issue and Saudi Arabia’s potential involvement in the Abraham Accords.

    What is meant by Trump’s ‘expanding the canvas’ strategy?

    • Trump’s “expanding the canvas” strategy refers to his approach of broadening the scope of a negotiation or conflict resolution by introducing bold, often extreme proposals to provoke reaction and stimulate further discussions.
    • By presenting an audacious or exaggerated idea, he aims to shift the focus and push opposing parties to consider more realistic and agreeable counter-offers. The idea is that this “shock tactic” can help break a stalemate and create space for new solutions.
    • In the context of the Gaza proposal, Trump’s suggestion to depopulate Gaza and turn it into a global resort serves as an example of this strategy—pushing the boundaries of negotiation to force other stakeholders to come up with a more balanced, practical solution.

    What are the implications of the proposed strategy for the Gaza conflict, and how might it reshape the geopolitical landscape in West Asia?

    • Geopolitical Tensions and Pushback: This proposal would likely anger Palestinians and Arab nations, as it bypasses the core issue of Palestinian statehood and self-determination. It could worsen tensions between Israel, Palestinians, and neighboring Arab countries.
      • The suggestion might also be viewed as a land grab or colonial move, particularly because it disregards the established claim of Palestinians to their land, creating significant backlash in the region and beyond.
    • Impact on Palestinian Statehood: Trump’s plan shifts focus away from the two-state solution (Israel and Palestine coexisting as separate states), which many international actors, including the U.S. and the UN, support.
      • The proposal undermines the push for Palestinian independence and could derail efforts to achieve a lasting peace settlement.
    • Saudi Arabia and Other Arab Nations’ Involvement: Trump’s proposal could alter the balance in Arab-Israeli relations. Saudi Arabia, which is being courted for inclusion in the Abraham Accords, might find it difficult to reconcile such a plan with its own stance on Palestinian rights, especially since Saudi Crown Prince Mohammed bin Salman has linked normalization with Israel to the creation of a Palestinian state.
      • It could either push Saudi Arabia and other Arab states further toward Israel or create more division, depending on how the proposal is received by the region’s leaders.
    • Shifting Regional Alliances: If Saudi Arabia were to move toward accepting the proposal, it could signal a significant shift in Middle Eastern alliances, possibly leading to greater cooperation between Arab states and Israel, while sidelining Palestinian aspirations for statehood.
      • On the other hand, if the plan fails, it could deepen regional divisions, particularly between Israel and the Arab world, and intensify the existing geopolitical instability in the region.

    How are the ongoing conflicts and economic challenges in West Asia affecting the region’s future?

    Political Impact of Conflicts: The wars and conflicts in places like Gaza, Syria, Yemen, and Lebanon have created deep divisions and instability. The region has been repolarized, leading to less cooperation and more distrust between nations.

    • Issues such as the Israeli-Palestinian conflict, Iran’s nuclear ambitions, and Kurdish national aspirations remain unresolved, keeping tensions high and preventing lasting peace.

    Economic Challenges: The conflicts have caused massive destruction, with the rebuilding costs in places like Gaza, Lebanon, and Syria. However, economic recovery is impossible without resolving the political issues first.

    • The region’s economy is also heavily dependent on oil, which is a vulnerable resource. The global push to move away from fossil fuels and the volatility of oil prices make the region’s future uncertain.
    • Countries like Saudi Arabia are aware of this and are trying to diversify their economies, but this process is slow.

    What are the Abraham Accords?

    The Abraham Accords refer to a series of normalization agreements between Israel and several Arab countries, aimed at establishing diplomatic, economic, and cultural relations. These agreements were brokered by the USA, and they marked a significant shift in Middle Eastern geopolitics.

    Here are the four major features of the Abraham Accords:

    • Normalization of Relations: Israel established diplomatic ties with Arab countries like UAE, Bahrain, Sudan, and Morocco.
    • Economic Collaboration: The signatories are working together to enhance trade relations, investment opportunities, and economic partnerships. Israel’s advanced technology sector, including cybersecurity and innovation, is seen as a valuable area for collaboration with the Arab countries.
    • Security Cooperation: Enhances defense and intelligence sharing, especially to address regional threats like Iran. As part of the normalization, the Accords encourage cultural exchange programs, tourism, and people-to-people connections.
    • Exclusion of the Palestinian Issue: One of the most notable features—and points of controversy—of the Abraham Accords is that the agreements were made without resolving the Israeli-Palestinian conflict.
      • While Palestinian leaders and many in the Arab world have opposed the Accords, claiming they betray the Palestinian cause, the agreements were framed as separate tracks that do not require the resolution of Palestinian statehood for Arab-Israeli relations to normalize.

    Saudi Arabia’s Role in Shaping Stability:

    • Economic Influence: Saudi Arabia, as the largest economy in the region, plays a major role in the economic stability of West Asia. It has massive reserves of wealth, particularly from its oil exports, and is using this to invest in rebuilding and diversifying the region’s economy. The Saudi Public Investment Fund, for example, is helping to fuel new development projects.
    • Diplomatic Influence: Saudi Arabia’s political influence is also crucial. Under Crown Prince Mohammed bin Salman (MbS), the country has made efforts to mediate regional conflicts, like the war in Yemen and tensions with Iran. It has also sought to balance relationships with global powers, including the U.S., China, and Russia, while maintaining its leadership role in the Arab and Islamic world.
    • Potential to Guide Regional Stability: Despite the conflicts around it, Saudi Arabia has largely avoided direct involvement in the region’s major wars. It can use its wealth and diplomatic leverage to fund reconstruction efforts and push for more peaceful, negotiated solutions to ongoing conflicts. It also holds significant sway over organizations like OPEC, which can affect the global oil market and, by extension, the region’s economy.

    What are the challenges the US faces in advancing the Abraham Accords, and how does it  complicate vision for broader Arab-Israeli normalization?

    • Palestinian Statehood and the Core Issue of the Conflict: The Palestinian issue is a major barrier to Arab-Israeli normalization, with many Arab nations, including Saudi Arabia, insisting on a Palestinian state as a prerequisite.
      • Trump’s focus on individual peace deals with Arab states bypasses this issue, making it difficult for countries like Saudi Arabia to fully normalize relations with Israel.
    • Opposition from Palestinian Leaders and Supporters: The Palestinian leadership has consistently rejected the Abraham Accords, seeing them as a betrayal of their cause. They argue that normalizing relations with Israel without addressing Palestinian rights and the establishment of a Palestinian state undermines their struggle for sovereignty and independence.
      • This complicates the situation. As long as Palestinians feel excluded from peace processes or see no meaningful progress toward a state of their own, it will be difficult to secure broad Arab-Israeli normalization.
    • Resistance from Ultra-Religious Israeli Groups: Within Israel, the growing influence of ultra-religious Jewish groups also complicates Trump’s plans. These groups often oppose any peace deal and their influence makes it harder for the Israeli government to adopt policies that could lead to broader peace agreements, even with Arab states.
    • Competing Interests Among Arab States: While some Arab states like the UAE and Bahrain have embraced the Abraham Accords, others, particularly in the Gulf, have been more cautious.
      • Saudi Arabia, for example, has signaled interest in normalizing relations with Israel, but only on the condition that Palestinian statehood is part of the deal.
      • This puts Trump in a difficult position, as he must balance the desire to expand the Accords with the realities of Arab and Palestinian demands.

    Way Forward: 

    • Need for Revised Diplomacy: A lasting solution must address Palestinian statehood, with a two-state solution being central to gaining support from Arab nations and Palestinian leaders. Direct negotiations, backed by international mediators, are crucial.
      • Arab states, Israel, and global powers must work together through multilateral platforms, with Saudi Arabia playing a key role in fostering peace and stability in the region.
    • Humanitarian Focus: Immediate efforts are needed to address the humanitarian crisis in Gaza and surrounding areas, with international aid supporting reconstruction and stability.
    • Economic Diversification: The region must move beyond oil dependency by investing in other industries, with collaboration between the U.S. and Gulf states to promote long-term economic stability.

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  • Terrorism and Challenges Related To It

    [10th February 2025] The Hindu Op-ed: Keeping a watch on the growing arc of violence

    op-ed snap | International Relations | Mains Paper 2: Important International Institutions

    PYQ Relevance:

    Q. The scourge of terrorism is a grave challenge to national security. What solutions do you suggest to curb this growing menace? What are the major sources of terrorist funding? (2017)

    Q. Discuss the impediments India is facing in its pursuit of a permanent seat in the UN Security Council. (2015)

    Mentor’s Comment:   UPSC mains have always focused on grave challenge to national security (2017), and ‘pursuit of a permanent seat in the UN Security Council ’ (2015)

    Wars are raging, global institutions are failing, and terrorism is evolving in new, digital, and decentralized forms. While conflicts like the Ukraine war and Gaza crisis dominate headlines, subterranean threats such as radicalization and lone-wolf terrorism are quietly reshaping global security risks.

    Today’s editorial highlights why the world is in a volatile state, how extremist groups are adapting, and why counterterrorism efforts must evolve to meet these new challenges. This content will help in GS paper 2 (Security issues).

    Why in the News?

    The world is going through an unpredictable phase, with wars, conflicts, and terrorism on the rise. The post-1945 global order has collapsed, and international institutions like the United Nations Security Council (UNSC) and the International Court of Justice (ICJ) are failing to prevent violence. At the same time, terrorism is evolving, using digital tools and decentralized networks to survive and grow.

    Why is the Present Period Unpredictable?

    • Wars in Europe and West Asia:
      • The Ukraine war continues with no clear end in sight.
      • The Gaza conflict and tensions in Lebanon have led to large-scale civilian casualties.
    • Failure of Global Institutions:
      • The UNSC and ICJ have become powerless observers, unable to stop wars.
      • The principles of international law are now ignored by major powers.
    • Moral and Political Decline:
      • Nations are acting in self-interest, with no common moral framework.
      • Peace efforts are temporary and do not address the root causes of conflicts.

    What are the Recent Subterranean Activities?

    • False Sense of Stability in West Asia:
      • Some believe that Israeli military actions have weakened Iran’s regional influence.
      • However, underground resistance movements are growing, keeping tensions high.
    • Resurgence of Islamist Extremism:
      • Jihadist groups are reorganizing, using online radicalization.
      • “Lone wolf” attacks are increasing, making them harder to predict.
    • Digital Radicalization:
      • Terrorist groups are recruiting and training people online.
      • Social media and encrypted messaging apps are used to spread extremist ideologies.

    How Terrorism is Witnessing a Revival?

    • Terrorism is Adapting:
      • Since 1979, terrorist networks have evolved.
      • Al-Qaeda and ISIS have used both military and digital strategies to stay active.
      • Now, terrorism is shifting towards smaller, more frequent attacks.
    • Al-Qaeda and ISIS Regrouping:
      • Al-Qaeda is training militants in Afghanistan, under Taliban rule.
      • ISIS-Khorasan (ISKP) is expanding its operations beyond Afghanistan and Pakistan.
      • Attacks have been reported in Moscow, Türkiye, and Iran.
    • More Small-Scale Attacks:
      • Instead of large bombings, modern terrorism relies on:
        • Lone-wolf attacks (one person acting alone).
        • Vehicle attacks, knives, or simple explosives.
        • AI-driven propaganda to recruit supporters.
    • Recent Terror Attacks in the U.S.:
      • Las Vegas Cyber Truck Explosion: A Tesla exploded outside a hotel where President-elect Donald Trump was staying.
      • New Orleans Vehicle Attack: A former soldier drove a truck into a crowd, killing 14 people while displaying an ISIS flag.
      • Virginia Terror Plot: Authorities foiled a planned attack in early 2025.
    • Warnings for the Future:
      • Experts warn of a new wave of terror attacks using digital tools.
      • Security agencies worldwide are on high alert to prevent further incidents.

    Conclusion

    A technology-driven and cooperative global approach is essential to counter rising conflicts and terrorism. Nations must strengthen international institutions, use AI for surveillance, and enforce stricter digital regulations to prevent online radicalization. Community engagement and de-radicalization programs can help address extremism at its roots. Stronger border security, cyber-tracking, and intelligence-sharing will be key to preventing future attacks. As threats become more decentralized and digital, proactive measures and global collaboration are the only paths to lasting peace.

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  • Primary and Secondary Education – RTE, Education Policy, SEQI, RMSA, Committee Reports, etc.

    [8th February 2025] The Hindu Op-ed: Technology and the challenge of equitable education

    op-ed snap | Indian Society | Mains Paper 2: Health & Education

    PYQ Relevance:

    Q) How have digital initiatives in India contributed to the functioning of the education system in the country? Elaborate your answer (UPSC CSE 2020)

    Q) Despite the consistent experience of high growth, India still goes with the lowest indicators of human development. Examine the issues that make balanced and inclusive development elusive.  (UPSC CSE 2019)

     

    Mentor’s Comment: UPSC mains have always focused on National Education Policy (2020), and Significance of Primary Education (2016 and 2022).

    Did you know that, the Budget Allocation for the FY 2024-25 of ₹ 73,498 cr is the highest ever for the Department of School Education & Literacy. On the other hand, while science and technology have integrated countries, education can generate the need for profit and can widespread use of innovations.

    Today’s editorial discusses the major observations from the ASER 2024 Report. This content can be used in Mains answer to present the Digital divide in Rural and Urban Area. Further this content also tells you the Potential of Digital infrastructure and Implementation that India needs to build. 

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    Let’s learn!

    Why in the News?

    According to the recent ACER Survey 2024, India lacks a road map in the field of education that allows the promise of technology to be harnessed for those who need it the most.

    What are the Key Highlights given by ASER 2024?

    The Annual Status of Education Report (ASER) is a citizen-led survey that provides estimates of schooling and learning levels in rural India. Published by the NGO Pratham, ASER has been conducted since 2005. After 2016, the survey transitioned to an alternate-year model, with the “basic” ASER conducted in all rural districts every other year. In the intervening years, a smaller survey focuses on specific age groups and domains. The “basic” ASER tracks enrollment for children aged 3-16 and assesses the reading and arithmetic skills of children aged 5-16 through household surveys.
    • Academic Observations and Reporting: Since 2006, private school enrollment in rural India has been increasing, plateauing at 30.8% in 2014 and remaining there in 2018.
      • Basic arithmetic abilities in Class 3 have risen to 33.7% in 2024, exceeding both 2022 and 2018 rates. Class 5 reading levels are also up, nearly matching 2018 figures, although private schools have not yet reached their pre-pandemic reading levels.
      • Attendance for both teachers and students in government elementary schools has improved. Several states have pre-primary enrollment rates above 90%.
    • Focus on Foundational Literacy and Numeracy: The big push for foundational literacy and numeracy (FLN) under NEP 2020 and the NIPUN Bharat Mission has helped to improve foundational learning through better resources, learning materials, and teacher training which appears to be a major contributor to the improvements noted in the ASER 2024 report.
    • Emphasis on Early Childhood Education: NEP 2020’s emphasis on early childhood education is expected to further improve access, as ASER 2024 reported increased enrollment in early childhood education, with almost 80% of children aged 3 to 6 years enrolled in some form of pre-primary education.
    • Improved Accessibility and Potential: In 2018, approximately 90% of rural households possessed basic mobile phones, while 36% owned smartphones. By 2022, smartphone ownership in these households increased to over 74%, and further to 84% in 2024, but educational use is limited to 57%.
      • Among children aged 14-16, smartphone ownership rose from 19% to about 31% within a year.
      • Smartphones were mainly used to send texts, worksheets, and videos during the pandemic as a substitute for textbooks. Digital skills from the pandemic remained relevant, and artificial intelligence (AI) generated new interest.
    • Reversing Pandemic Losses: The ASER 2024 report suggests a rebound from the learning losses during the COVID-19 pandemic, especially in government schools, where reading and arithmetic skills have reached or exceeded pre-pandemic levels.
      • The improvement in standard III implies that some of its credit can go to the NIPUN Bharat Mission.

    What are the present challenges of digital divide in India according to ASER Report 2024?

    • Gender Disparity: Boys outpace girls in access, ownership, and smartphone usage, which puts girls at a disadvantage and exacerbates existing inequalities. Even when smartphones are available, girls face systemic barriers that limit their access, such as social norms, parental control, and prioritization of boys’ education.
    • Access vs. Usage: While nearly all children between 14 and 16 have access to cell phones, only 57% use smart devices for education-related activities, while about 76% use them for social media.
    • Variations Across States: ASER 2024 indicates wide variations in digital literacy across states.
    • Digital Literacy Skills: While smartphone access is widespread, structured digital education programs can enhance meaningful use of technology for learning.
      • There is a gender gap in digital skills, with 85.5% of boys and 79.4% of girls reporting that they know how to use a smartphone.
    • Smartphone Ownership: There is a gender gap in smartphone ownership, with only 36.2% of boys and 26.9% of girls reporting owning a smartphone.
      • This lack of personal ownership limits access and curtails opportunities for girls to explore and learn independently.

    How can technology be leveraged to bridge the digital divide and ensure equitable access to educational resources?

    • Targeted distribution of school-owned devices: Schools can monitor device-to-student ratios to decide how each device can best support specific learning activities within the curriculum.
      • Distribution can be based on the individual needs of the student, ensuring that each device is allocated where it can have the most significant impact on learning.
    • Embrace pedagogically-led technology integration: Prioritizing integrating technology in a way that enhances the learning experience as a whole can ensure that every student benefits from the transformative potential of digital tools.
      • This includes how educators are trained in technology as a means to achieve equitable learning outcomes.
    • Assess Needs and Resources: Survey families to understand current technology access at home and take inventory of existing school technology equipment and infrastructure. Identify areas that need upgrades to support 1:1 device programs.
    • Provide Multiple Access Options: Offer devices that students can use at school and take home and create a community technology center with free WiFi, computers, and printers. Partner with community organizations to provide access outside of school

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  • Government Budgets

    [6th February 2025] The Hindu Op-ed: A Budget that is mostly good but with one wrong move

    op-ed snap | Economics | Mains Paper 3: Government Budgeting

    PYQ Relevance:

    Q) Distinguish between Capital Budget and Revenue Budget. Explain the components of both these Budgets. (UPSC CSE 2021)

     

    Mentor’s Comment: UPSC mains have always focused on the Capital Budget and Revenue Budget (2021), and the objectives of Union-Budget (2017).

    The Union Budget’s forecast of 10.1% nominal GDP growth for 2025-26 seems reasonable, based on the Economic Survey’s prediction of 6.3%-6.8% real GDP growth. Although capital spending has gone up, it’s similar to last year’s budget. The Budget aims to drive growth towards becoming a developed nation, though some measures, like tax relief, could have come sooner.

    Today’s editorial talks about the measures taken in the Budget. This content would help in GS paper 3 in the economy section.

    _

    Let’s learn!

    Why in the News?

    Some measures in the Budget should have been introduced earlier and replacing ‘fiscal deficit’ as a key indicator is a wrong decision.

    How realistic are the government’s tax revenue growth assumptions?

    • Gross Tax Revenue (GTR) Trends: The growth in the Government of India’s GTR has been trending downwards in recent years. The buoyancy of GTR has fallen for three successive years from 1.4 in 2023-24 to 1.15 in 2024-25 (RE) and then to 1.07 in 2025-26 (BE). As a result, growth in the Government of India’s GTR has kept falling from 13.5% in 2023-24 to 11.2% in 2024-25 (RE), and to 10.8% in 2025-26 (BE). Within the government’s tax revenues, the growth rate of Goods and Services Tax (GST) has also fallen from 12.7% in 2023-24 to 10.9% in 2025-26 (BE).
    • Shift to Direct Taxes: The structure of the government’s taxation has moved from indirect to direct taxes, with the share of direct taxes in the government’s GTR increasing from 52% in 2021-22 to 59% in 2025-26 (BE).
    • Personal Income Tax: There has been a fall in growth from 25.4% in 2023-24 to 20.3% in 2024-25 (RE) and 14.4% in 2025-26 (BE). This fall in growth in 2025-26 (BE) is partly due to the announced income-tax concessions.
    • Corporate Income Tax: The growth in 2024-25 (RE) is quite low at 7.6%. This growth has been raised to 10.4% in 2025-26 (BE).

    Is the level of government expenditure appropriate, and is its composition efficient?

    • Overall Expenditure: The government is estimated to spend Rs 50,65,345 crore in 2025-26, 7.4% higher than the revised estimate of 2024-25. The size of government expenditure as a percentage of GDP has been reduced from 14.6% in 2024-25 (RE) to 14.2% in 2025-26 (BE). Growth in total expenditure, at 7.6% in 2025-26 (BE), is lower than the budgeted nominal GDP growth at 10.1%.
    • Capital Expenditure: Capital expenditure has been raised from 11.11 lakh crore rupees in the current fiscal year to 11.21 lakh crore rupees for the oncoming fiscal year1. There has been a steady improvement in the quality of government expenditure as the share of capital expenditure in total expenditure has been improving. This share has improved by 10% points over the period from 2020-21 to 2025-26 (BE).
    • Investment in Key Areas: Investment remains a central theme in the Budget, categorized into three key areas—people, economy, and innovation.
      • Investment in people: Includes the establishment of Atal Tinkering Labs, broadband connectivity for schools and health centers, Centers of Excellence for Skilling, and initiatives for Gig workers.
      • Investment in the economy: Focuses on infrastructure projects, interest-free loans to states for capital expenditure, asset monetization, and urban redevelopment projects.
      • Investment in innovation: Allocates funds to private sector-driven R&D initiatives and missions to support urban planning and knowledge systems.
    • AI Infrastructure: The Government of India has to build up large-scale Artificial Intelligence (AI) infrastructure in order to facilitate the adoption of emerging technologies.

    ⁠Is the shift away from using fiscal deficit as a primary indicator of fiscal prudence a positive step?

    • Change in Indicator: One measure introduced in the Budget is to move away from fiscal deficit as an indicator of fiscal prudence. The practice of giving a glide path in terms of fiscal deficit is being discontinued. It has been stated that from now on, the focus will be on reducing the debt-GDP ratio annually.
    • New Target: The central government aims to reduce its outstanding liabilities to around 50% of GDP by March 2031.
    • Debt-GDP Ratio: In the 2025-26 Budget, the practice of giving a glide path in terms of fiscal deficit is being discontinued. Alternative paths of the debt-GDP ratio with nominal GDP growth assumptions of 10.0%, 10.5% and 11.0% are given.
      • The glide paths are indicated in terms of alternative growth assumptions and alternative assumptions regarding mild, moderate, and high degrees of fiscal consolidation. This makes the whole exercise vague and non-transparent.
    • Fiscal Deficit Target: The fiscal deficit target for FY26 is set at 4.4% of GDP, revised down from 4.8% in the current financial year.

    Way forward: 

    • Restore Fiscal Deficit Transparency: Reintroduce clear fiscal deficit targets with specific timelines, instead of focusing solely on the debt-GDP ratio. This would ensure greater clarity and accountability in fiscal management.
    • Enhance Investment Efficiency: Prioritize strategic investments in key areas like AI infrastructure, R&D, and innovation, while ensuring these investments align with long-term growth goals and contribute to overall economic resilience.

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  • Foreign Policy Watch: India-United States

    [5th February 2025] The Hindu Op-ed: The U.S.’s WHO exit, a chance to reshape global health

    op-ed snap | International Relations | Mains Paper 2: Effect Of Policies & Politics Of World On India’S Interests

    PYQ Relevance:

    Q) Critically examine the role of WHOin providing global health security during the Covid-19 pandemic. (UPSC CSE 2020)

     

    Mentor’s Comment: UPSC mains have always focused on Bridging Healthcare Gaps (2015), and WHO Initiatives (2020).

    The US is the largest contributor to WHO, providing about 18% of its funding. The withdrawal is expected to jeopardize critical health programs, particularly those addressing tuberculosis, HIV/AIDS, and other health emergencies.

    Today’s editorial emphasizes the need for member states to collaborate more effectively in light of reduced US involvement, ensuring that global health priorities remain addressed despite funding challenges. This content can be used to present the significance of multilateral collaboration and its impact on international policy and governance with respect to Health.

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    Let’s learn!

    Why in the News?

    After the USA’s withdrawal from WHO, it is time for the countries in the global south to support WHO and initiate collaborative actions to reshape the global health agenda.

    What are the Potential Impacts of the US Withdrawal from WHO?

    • Disruption of Funding and Programs: The US contributes nearly 18% of WHO’s budget (~$1 billion annually), supporting critical health programs like immunization, tuberculosis control, and pandemic preparedness.
      • The withdrawal will likely disrupt ongoing projects aimed at combating health challenges such as HIV/AIDS and polio eradication.
    • Weakened Global Health Response: WHO’s ability to coordinate responses to health crises will be significantly impaired without US support. This includes reduced resources for disease surveillance and emergency operations in regions facing outbreaks or health threats.
    • Impact on Global Health Leadership and Collaboration: The absence of the US may create a leadership vacuum within WHO, allowing other nations (e.g., China) to increase their influence.
      • This shift could alter international collaboration dynamics and lead to fragmented approaches to public health challenges.
    • Repercussions for Low-Income Countries: Marginalized communities in low-income countries may face disproportionate impacts due to reduced funding from WHO. These communities rely heavily on WHO for access to essential health services, and the withdrawal signals a deprioritization of global health initiatives, exacerbating existing inequalities.
      • The overall effectiveness of global health initiatives may decline as WHO struggles with funding constraints and could slow long-term progress toward key health goals, such as disease eradication and comprehensive vaccination programs, ultimately affecting global health security.

    How might the withdrawal reshape international health diplomacy?

    • Shift in Global Health Leadership: The absence of the US may create a leadership vacuum within WHO, potentially allowing countries like China to increase their influence in global health governance.
      • This shift could alter the dynamics of international collaboration, with other nations stepping up to fill the void left by the US.
    • Increased Geopolitical Tensions: The withdrawal could intensify competition between the US and China for influence in global health matters.
      • China’s initiatives, such as the Health Silk Road, may gain traction as it seeks to position itself as a leader in global health, thereby reshaping alliances and partnerships among countries.
    • Impact on Multilateral Cooperation: The US’s exit may weaken multilateral cooperation on critical health issues, leading to fragmented responses to global health challenges.
      • Countries may become less willing to collaborate on shared health threats without US leadership, which could hinder effective pandemic preparedness and response efforts.
    • Loss of Diplomatic Leverage: By withdrawing, the US relinquishes its role as a key influencer in shaping global health policies and initiatives.
      • This could diminish its ability to advocate for public health programs that align with its interests and values, allowing other nations to take a more prominent role in setting global health agendas.
    • Disproportionate Effects: The low-income countries that rely heavily on WHO for support may face greater challenges without US involvement.

    What reforms or changes might be necessary within WHO in light of this withdrawal?

    • Diversification of Funding Sources: WHO should encourage member states to increase their assessed contributions, which currently cover less than 20% of its budget. This could help reduce reliance on any single donor, particularly the US.
      • WHO can seek to expand its voluntary contributions from other countries and private organizations to fill the financial gap left by the US withdrawal.
    • Strengthening Governance and Accountability: Implementing more transparent financial management practices can help restore trust among member states and ensure that funds are allocated effectively.
      • Establishing an independent oversight body to review WHO’s operations and decision-making processes may help address concerns about political influence and enhance accountability.

    What opportunity do India have in this situation?

    • Increased Leadership Role: India can take a prominent leadership position within WHO, representing the Global South.
      • For Example, through the Vaccine Maitri initiative, India facilitated vaccine exports during the COVID-19 pandemic, demonstrating its commitment to global health equity and influencing health policies.
    • Strengthening Domestic Capabilities: The withdrawal allows India to bolster its healthcare infrastructure and research capabilities.
      • For Example, significant investments in indigenous vaccine production, such as Covaxin and Covishield, have positioned India as a major player in global vaccine supply chains, enhancing self-reliance and healthcare outcomes.
    • Enhanced Collaboration with Emerging Economies: India can forge stronger partnerships with other emerging economies to collaboratively address global health challenges.
      • For Example, engagement with countries like Brazil and South Africa through the IBSA Dialogue Forum can focus on shared issues like antimicrobial resistance and maternal health, enhancing collective responses to public health threats.
    • Leveraging Pharmaceutical Strength: India’s robust pharmaceutical industry can fill gaps left by reduced WHO funding.
      • Known as the “pharmacy of the world,” India supplied affordable vaccines during the pandemic, reinforcing its reputation as a key player in global healthcare by continuing to produce low-cost medications.

    Way Forward: India can not only mitigate the impacts of the US withdrawal but also can significantly contribute to shaping a more equitable global health landscape.

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  • Port Infrastructure and Shipping Industry – Sagarmala Project, SDC, CEZ, etc.

    [4th February 2025] The Hindu Op-ed: Some wind behind the sails of India’s shipping industry

    op-ed snap | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    PYQ Relevance:

    Q) ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC CSE 2017)

    Q) The Gati-Shakti Yojana needs meticulous co-ordination between the government and the private sector to achieve the goal of connectivity. Discuss. (UPSC CSE 2022)

     

    Mentor’s Comment: UPSC mains have always focused on Sustainable Development (2016, 2017, 2018 and 2022), and Budget Initiatives (2017 and 2021).

    Currently, India holds only about 0.05% of the global market share in shipbuilding, significantly lower than competitors like China (47%), South Korea (30%), and Japan (17%). This disparity highlights that without addressing inefficiencies in container movement and logistics integration, infrastructure growth alone will not lead to meaningful progress.

    The editorial discusses the recent positive developments in India’s shipping industry, particularly following the government’s announcements in the Union Budget 2025-26. This content can be used to present challenges in the Maritime Sector.

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    Let’s learn!

    Why in the News?

    The Union Budget 2025-26 appears to have met most of the shipping industry’s demands; but it has missed an opportunity to address tax disparities.

     

    What specific government initiatives are being introduced to support the shipping industry?

    • Maritime Development Fund (MDF): This initiative is the establishment of a MDF with an initial corpus of ₹25,000 crore which aims to provide long-term financing for the shipbuilding and maritime sectors, facilitating investment and growth within the industry.
    • Shipbuilding Financial Assistance Policy: The government has announced a revamp of the Shipbuilding Financial Assistance Policy (SBFAP) which aims to address cost disadvantages faced by domestic shipyards by providing direct financial subsidies, thereby encouraging local shipbuilding and enhancing competitiveness.
    • Customs Duty Exemptions and Incentives: This Budget extends customs duty exemptions on inputs and components used for manufacturing ships for more than 10 years.
      • Additionally, credit notes will be issued for shipbreaking activities, promoting a circular economy within the industry in order to make shipbuilding and recycling more competitive.
    • Extension of Tonnage Tax Scheme: The benefits of the existing tonnage tax scheme, which previously applied only to sea-going ships, will now be extended to inland vessels registered under the Indian Vessels Act, 2021.
      • This change aims to promote inland water transport and enhance the overall efficiency of the maritime sector.
    • Establishment of Shipbuilding Clusters: The Indian shipping industry has been advocating for the extension of the Shipbuilding Financial Assistance Policy (SBFAP) for another 10 years under the Amritkaal Maritime Vision 2047.
      • The government plans to facilitate the creation of shipbuilding clusters to increase capacity and capabilities in ship manufacturing.

    How can these initiatives impact India’s position in the global shipping market?

    • Enhanced Global Competitiveness: By establishing the Maritime Development Fund and revamping financial assistance policies, India aims to boost its shipbuilding capabilities and reduce costs associated with ship construction and repair.
      • This could elevate India’s ranking in global shipbuilding from 22nd to potentially within the top 10 by 2030 and top 5 by 2047, thereby increasing its share of global ship tonnage from less than 1% to around 5%.
    • Improved Infrastructure and Efficiency: The government’s focus on port modernization through initiatives like the Sagarmala Programme and Maritime India Vision 2030 is set to enhance port infrastructure, logistics efficiency, and multimodal connectivity.
      • These improvements will reduce turnaround times for vessels and lower logistics costs, making Indian ports more attractive for international shipping lines and increasing cargo handling capacity significantly.
    • Attracting Foreign Investment: With a favorable investment climate that allows 100% Foreign Direct Investment (FDI) in port development, India is positioned to attract significant foreign capital into its shipping sector.
      • This influx of investment can lead to technological advancements, better operational practices, and increased capacity, further solidifying India’s role as a key player in global maritime trade.

    What challenges does the Indian shipping industry face despite these positive developments?

    • High Costs and Financial Constraints: Indian shipyards face significant cost disadvantages compared to global competitors, particularly in terms of higher material and labor costs, as well as expensive financing options.
      • This results in a 25-30% cost disadvantage for Indian shipyards compared to those in countries like China and South Korea.
      • Additionally, the imposition of a 5% Goods and Services Tax (GST) on ship imports, which is not refunded for international operations, further strains financial resources for shipping companies.

    Does the SARFAESI Act impact loan availability?

    • Under Section 31(d) of the SARFAESI Act, banks and financial institutions cannot create a security interest in vessels as defined by the Merchant Shipping Act, 1958.
    • This limitation means that lenders cannot easily seize and auction ships in case of loan defaults, which reduces their willingness to extend credit to shipowners.
    • The ongoing discussions about amending the SARFAESI Act to include provisions for ships indicate a recognition of these challenges.
    • By allowing banks to hold security interests in vessels, the government can enhance loan availability and create a more favorable environment for financing within the maritime sector.
    • Infrastructure Bottlenecks: Major Indian ports are grappling with issues such as congestion, inefficiency, and inadequate infrastructure to support increasing traffic volumes.
      • The growth in cargo traffic has outpaced the development of port facilities, leading to delays and higher operational costs.
      • For example, backlogs for rail freight have increased significantly, impacting the timely movement of goods.
      • Furthermore, labor strikes and outdated technology contribute to lower productivity at ports, making them less attractive to global shipping lines.
    • Dependence on Foreign Suppliers: Indian shipyards heavily rely on foreign suppliers for critical components and technology, which increases costs and complicates supply chains.
      • This dependency results in longer lead times for procurement and vulnerability to supply chain disruptions.
      • The lack of a robust domestic supply chain for high-tech maritime components further exacerbates these challenges, limiting the competitiveness of Indian shipbuilding firms.

    Way Forward:

    To realize its aspirations under the Amritkaal Maritime Vision 2047, India must prioritize investments in infrastructure, streamline regulatory processes, and foster a skilled workforce.

    • The path forward requires a concerted effort from all stakeholders to transform these challenges into opportunities for sustainable development in the maritime sector.
    • Establish a National Port Grid Authority to coordinate development across major and minor ports, promoting specialization and eliminating inter-port competition.
    • Implementing a hub-and-spoke model with mega ports acting as transshipment hubs can optimize cargo movement and efficiency.
    • Deploy Smart Port Infrastructure Management Systems (SPIMS) and introduce blockchain-based Port Community Systems to facilitate paperless and IoT based trade.

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  • Government Budgets

    [3rd February 2025] The Hindu Op-ed: Beyond tax cuts, a closer read of the Union Budget

    op-ed snap | Economics | Mains Paper 3: Government Budgeting

    PYQ Relevance:

    Q) One of the intended objectives of Union-Budget 15-18 is to ‘transform, energize and clean India’. Analyze the measures proposed in the Budget 15-18 to achieve the objective. (UPSC CSE 2017)

    Q) Distinguish between Capital Budget and Revenue Budget. Explain the components of both these Budgets. (UPSC CSE 2021)

     

    Mentor’s Comment: UPSC mains have always focused on Sustainable Development (2016, 2017, 2018 and 2022), and Budget Initiatives (2017 and 2021).

    The Union Budget 2024-25 presents a strategic framework aimed at fostering economic growth while addressing the needs of various sectors, particularly the middle class, agriculture, and employment. While efforts to streamline tax structures and reduce compliance burdens are positive, they must be accompanied by robust strategies to ensure sustainable growth and equitable distribution of resources.

    The editorial emphasizes the urgent need for decisive and equitable action in addressing inclusive and sustained growth. This content can be used to present challenges/criticism for the present Budget 2025-26 in your Mains Answers for Economy and Infrastructure.

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    Let’s learn!

    Why in the News?

    The Union Finance Minister presented the Union Budget on February 1, addressing significant economic challenges while outlining an ambitious plan for ‘Viksit Bharat’ that focuses on various sectors, which although requires careful evaluation.

     

    What are the key highlights from Budget 2025 that would raise the questions?

    • Fiscal Consolidation Target: This target aims to reduce the fiscal deficit from the previous year’s estimate of 4.9% and reflects the government’s commitment to managing public debt while balancing necessary public expenditures and economic growth challenges.
      • The Budget sets a Fiscal Consolidation Target of 4.4% of GDP for FY26, relying on optimistic revenue projections, including 11.2% growth in total tax revenues and 14.4% in income tax revenues, despite significant tax cuts and economic challenges.
    • Second Asset Monetisation Plan (2025-30): This plan aims to generate ₹10 lakh crore by monetizing government-owned assets. The proceeds from this monetization will be reinvested into new infrastructure projects.
      • Success of Second Asset Monetisation Plan (2025-30) after previous underperformance raises concerns, and ₹11.54 lakh crore in net market borrowings may crowd out private capital amid weak credit demand.
      • Additionally, the government has proposed ₹1.5 lakh crore in interest-free loans to states to further support capital expenditure and infrastructure reforms.
    • Personal Income Tax: The revisions in income tax rates that exempt incomes up to ₹12 lakh can lead to a loss of ₹1 lakh crore in direct tax revenue due to the following reasons:
    • Increased Exemptions: By exempting incomes up to ₹12 lakh, more individuals will not be liable to pay income tax, significantly reducing the overall tax base.
    • Reduced Tax Rates: The new tax regime includes lower tax rates for various income brackets, which means that even those who do pay taxes will contribute less than they would under the previous regime.
    • Impact on Government Revenue: The expected loss of ₹1 lakh crore in direct tax revenue will limit the government’s financial resources, constraining its ability to fund developmental initiatives and public services.
    • Declining Household Savings: As the government foregoes this revenue, it may struggle to maintain or increase public investments, which could exacerbate the already declining household savings rate, impacting long-term economic stability.
    • India’s Manufacturing Sector: The Budget aims to bolster India’s manufacturing sector, which currently contributes only 17% to the GDP, through various initiatives. However, significant challenges remain that could hinder the sector’s growth and competitiveness.
      • Regulatory Inefficiencies: By enhancing access to credit for MSMEs, the government aims to foster growth, but the existing regulatory framework often hampers business operations, leading to delays and increased costs that undermine competitiveness.
      • Low Innovation Capacity: The government has introduced PLIs targeting various sectors to encourage domestic production and attract foreign investment. However, the investment in R&D is critically low, currently at just 0.64% of GDP. This lack of focus on innovation limits the ability of Indian manufacturers to compete effectively.
      • Structural Weaknesses: The manufacturing sector has been plagued by structural weaknesses such as high costs of raw materials and logistics, which make it less competitive compared to other nations.
      • For example, steel prices in India are reported to be 20-30% higher than those in China.

    What are the gaps highlighted by the budget that need to be recognized in the Agricultural Sector?

    Significant Agricultural Initiatives taken by the Government in Budget 2025-26:

    1. Prime Minister Dhan-Dhaanya Krishi Yojana:

    • Objective: To enhance agricultural productivity and promote sustainable farming practices in 100 districts characterized by low productivity, moderate crop intensity, and below-average credit access.
    • The initiative is expected to benefit approximately 1.7 crore farmers by providing them with better financial support and resources. The program will be executed in partnership with state governments, leveraging existing schemes and specialized measures to drive focused reforms.
    • Key Focus Areas:
      • Introduce advanced farming techniques and modern equipment.
      • Encourage farmers to grow a variety of crops instead of relying on a single crop.
      • Develop storage facilities at the panchayat and block levels to reduce crop wastage.
      • Enhance irrigation infrastructure to increase agricultural output.
      • Facilitate easier access to both short-term and long-term credit for farmers.

    2. National Mission on High-Yielding Seeds:

    • Objective: This mission aims to improve the availability and use of high-yielding seed varieties to boost agricultural productivity across the country.
    • The mission emphasizes research and development in seed technology, ensuring that farmers have access to superior quality seeds that can lead to better crop yields.
    • It will work in conjunction with other agricultural programs, such as the Dhan-Dhaanya Krishi Yojana, to maximize the impact on food security and farmer income.

    3. Increased Kisan Credit Card (KCC) Limit:

    • The loan limit for KCC has been raised from ₹3 lakh to ₹5 lakh, along with targeted support in 100 low-productivity districts, indicating a shift from blanket subsidies to more precise financial assistance for farmers.
    • Short-Term Loan Focus: The emphasis on credit enhancements primarily through short-term loans may perpetuate farmers’ dependency on debt without resolving underlying issues.
      • Systemic inefficiencies in agricultural markets remain unaddressed, particularly regarding price volatility and market access.
    • Missed Export Opportunities: The lack of concrete measures to promote agricultural exports, especially as India aims to lead in millets and natural farming, represents a significant missed opportunity.
      • Services exports, particularly in IT and business process outsourcing, are growing robustly at a 10.5% CAGR, but efforts to diversify the export portfolio are lacking.
      • While initiatives like Bharat Trade Net (BTN) and export credit support for MSMEs are positive, they lack the scale necessary to effectively address India’s ongoing trade deficits.
      • The depreciation of the rupee and declining foreign exchange reserves highlight the need for a more ambitious export strategy.
      • A fiscal push toward value-added sectors such as pharmaceuticals, electronics, renewable energy, and high-value agricultural products could enhance India’s position in global supply chains and improve export competitiveness.

    What are the questions raised on other transformative and sustainable pushes?

    • Lithium-Ion Battery Recycling: Ace Green Recycling plans to establish India’s largest lithium iron phosphate (LFP) battery recycling facility in Gujarat, with a capacity of 10,000 metric tons per year by 2026. 
    • Incentives for Clean Tech Manufacturing: The Budget introduces tax benefits and policy extensions aimed at supporting electric vehicle (EV) startups and clean tech manufacturing. This includes exemptions on cobalt powder and lithium-ion battery scrap from basic Customs Duty, which is expected to strengthen India’s battery recycling ecosystem.
    • Despite these initiatives, the transition to a low-carbon economy remains fragmented due to insufficient investment in essential areas like grid modernization and energy storage.
    • To achieve a successful transition to a low-carbon economy, India needs a more integrated approach that includes substantial investments in energy infrastructure alongside the current recycling initiatives.
      • For example, enhancing energy storage capabilities is crucial for managing the intermittent nature of renewable energy sources like solar and wind power.

    Way Forward:

    • While the Budget lays a promising foundation for economic progress, it requires a comprehensive approach that not only focuses on immediate tax relief but also addresses long-term challenges in productivity, innovation, and market access.
    • The success of these initiatives will be measured by their ability to create lasting benefits for all segments of society, driving India toward its vision of a prosperous and inclusive economy.

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  • Foreign Policy Watch: India-Myanmar

    [1st February 2025] The Hindu Op-ed: Four years on, Myanmar and its continuing nightmare

    op-ed snap | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    PYQ Relevance:

    Q) Analyze internal security threats and transborder crimes along Myanmar, Bangladesh and Pakistan borders including Line of Control (LoC). Also discuss the role played by various security forces in this regard. (UPSC CSE 2020)

    Q) ‘India is an age-old friend of Sri Lanka.’ Discuss India’s role in the recent crisis in Sri Lanka in the light of the preceding statement. (UPSC CSE 2022)

     

    Mentor’s Comment: UPSC mains have always focused on Crossborder insurgency (2019), and Role of India in Southeast Asia (2017).

    The ongoing violence in Myanmar, human rights abuses, and political repression have left millions in dire conditions, with over 6,000 civilians killed and 3.5 million displaced. According to the World Bank, by 2025, around 19.9 million people—one-third of the population—are expected to require humanitarian aid, including 6.3 million children in Myanmar.

     

    As Myanmar marks four years since the military coup, today’s editorial highlights the urgent need for global attention and action. The international community’s response has been inadequate, failing to effectively challenge the junta’s grip on power. This content can be used to present Neighbourhood Policy or South Asian Democratic Crises in your Mains Answers.

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    Let’s learn!

    Why in the News?

    There are several significant developments surrounding the ongoing crisis in Myanmar as it marks the fourth anniversary of the military coup.

    [1st February 2025] The Hindu Op-ed: Four years on, Myanmar and its continuing nightmare

    What has been the impact of the military coup on Myanmar’s political landscape?

    The military coup in Myanmar on February 1, 2021, has drastically altered the political landscape, leading to instability and conflict. 

    • Return to Military Rule: The coup reversed a decade-long democratic transition by overthrowing the elected government of Aung San Suu Kyi’s National League for Democracy (NLD), resulting in widespread protests and civil unrest against the junta.
    • Rise in Civil Unrest and Resistance: The coup sparked massive protests and a civil disobedience movement, leading to the formation of a shadow government, the National Unity Government (NUG), by ousted lawmakers.
      • This has resulted in armed conflict with various ethnic groups and newly formed resistance forces, creating a state of civil war.
    • Human Rights Violations and Humanitarian Crisis: The military’s brutal crackdowns have led to widespread human rights abuses, including killings and arbitrary detentions. Millions have been displaced, exacerbating existing ethnic conflicts, particularly affecting the Rohingya population. The international response has largely failed to hold the military accountable.

    What are the prospects for Myanmar’s economy in 2025 considering the current socio political turmoil?

    • The World Bank forecasts a 1% contraction in Myanmar’s GDP for the fiscal year ending in March 2025, marking a significant downgrade from earlier growth expectations.
      • By 2025, around 19.9 million people—one-third of the population—are expected to require humanitarian aid, including 6.3 million children.
    • Since the military coup in February 2021, armed conflicts and natural disasters have disrupted production across sectors like agriculture and manufacturing. Recent floods have further damaged infrastructure.
    • About 25% of the population faces acute food insecurity, driven by high inflation rates projected at 26% annually. Many households struggle to afford basic necessities due to rising food prices.
    • The long-term economic outlook remains grim, with subdued growth expected even if conflict levels stabilize. Further violence or natural disasters could worsen economic conditions.

    How has the role of ASEAN evolved in addressing the Myanmar crisis?

    • Five-Point Consensus: In April 2021, ASEAN introduced a Five-Point Consensus calling for an end to violence, dialogue, humanitarian aid, and a special envoy to mediate. However, its effectiveness has been limited due to lack of inclusivity and pressure on the military junta.
    • Trioka Mechanism: ASEAN created the Trioka Mechanism to monitor the implementation of the Five-Point Consensus. This group includes Indonesia, Laos, and Malaysia but faces concerns about its ability to address Myanmar’s complex issues.
    • Humanitarian Response: ASEAN has held meetings to improve humanitarian aid delivery but struggles with implementation challenges.
    • International Engagement: External influences, like those from the EU and UN, have shaped ASEAN’s approach. Critics argue that ASEAN’s preference for dialogue over sanctions has not produced significant results.

    Way Forward:

    • The UN and ASEAN have struggled to resolve the Myanmar crisis, prompting experts to call on neighboring countries—China, India, Thailand, Bangladesh, and Laos—to take action, as the situation threatens their interests.
      • However, challenges persist: borders with India and Bangladesh are controlled by ethnic armed organizations (EAOs), trust issues exist between India and China, and India-Bangladesh relations are strained.
      • This makes it difficult for these nations to reach a consensus on how to encourage peace.
    • Thailand, as a significant ASEAN member, could play a crucial role but faces its own limitations.
      • Meanwhile, China’s influence has grown since the coup, and experts suggest that Myanmar’s people should not rely on external help; instead, their leaders must prioritize dialogue over violence to avoid further suffering.

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