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  • Fiscal Health Index (FHI) 2026

    Why in News?

    NITI Aayog has released the second edition of the Fiscal Health Index (FHI) 2026, providing a comprehensive assessment of the fiscal performance of Indian States during FY 2023–24. The report expands its coverage to include 10 North-Eastern and Himalayan States, in addition to the 18 major States assessed in the inaugural edition.

    Key Highlights

    • Expanded coverage: Evaluates 28 States (18 major States + 10 North-Eastern and Himalayan States).
    • Purpose: Measures the fiscal health of States using a transparent and data-driven framework.
    • Fiscal significance: States account for nearly two-thirds of public expenditure and about one-third of the general government debt.
    • Key finding: Most States recorded moderate fiscal performance, with significant variations across regions.
    • Recommendations: Improve own tax revenue, rationalise committed expenditure, strengthen capital expenditure, enhance public financial management, and ensure debt sustainability.

    What is the Fiscal Health Index (FHI)?

    • The Fiscal Health Index (FHI) is an annual report released by NITI Aayog to evaluate the fiscal performance of States using objective indicators. It promotes fiscal discipline, financial sustainability, and evidence-based policymaking while encouraging States to improve public financial management.

    Key Parameters of the Fiscal Health Index

    • Quality of Expenditure
    • Revenue Mobilisation
    • Fiscal Prudence
    • Debt Management

    Significance of the Fiscal Health Index

    • Encourages competitive and cooperative federalism.
    • Helps identify strengths and weaknesses in State finances.
    • Supports informed policy decisions and fiscal reforms.
    • Promotes sustainable public finances and efficient resource allocation.
    • Enhances transparency and accountability in fiscal governance.

    Challenges Highlighted by the Report

    • Low own tax revenue in several States.
    • High committed expenditure on salaries, pensions, and interest payments.
    • Rising debt burden in some States.
    • Limited fiscal space for developmental expenditure.
    • Regional disparities in fiscal performance.

  • Public Examinations (Prevention of Unfair Means) Amendment Bill, 2026 taken up in Lok Sabha

    Why in News

    The Government and the Opposition reached an understanding to end the Parliament deadlock, enabling the Anti-Paper Leak Amendment Bill, 2026 to be taken up for debate in the Lok Sabha. The Bill seeks to strengthen penalties and speed up investigations to curb examination malpractices.

    Key Highlights

    • Stricter punishment: Maximum imprisonment for offences involving unfair means increased to 10 years, from the earlier 3 to 5 years.
    • Higher penalty: Maximum fine for individual offences enhanced to ₹50 lakh.
    • Organised examination fraud: Punishable with a minimum imprisonment of 7 years and a fine up to ₹10 crore.
    • Procedural reforms: Provides for fast-track courts and mandates completion of investigations within two months.
    • Companion legislation: The Prevention of Insults to National Honour (Amendment) Bill, 2026 was also introduced during the same session.

    Background

    • The amendment strengthens the Public Examinations (Prevention of Unfair Means) Act, 2024.
    • The Act aims to prevent paper leaks, impersonation, organised cheating and other examination-related malpractices in public examinations conducted by designated authorities.

    Objectives

    • Ensure fairness, transparency and credibility in recruitment and entrance examinations.
    • Deter organised examination fraud through stringent penalties.
    • Protect the interests of genuine candidates.
    • Improve the speed of investigation and prosecution.

    Significance

    • Enhances the integrity of public recruitment and competitive examinations.
    • Acts as a deterrent against paper leak mafias and organised crime networks.
    • Strengthens public confidence in examination systems.
    • Supports merit-based selection and good governance.

    [2026] Mr. X, a senior officer, was overseeing a critical vaccination programme during a pandemic. He found that a private service provider responsible for vaccine distribution was compromising on quality to make profits. Despite immense pressure to manage the issue due to vested interests, he raised his voice based on the principles of public administration which he learnt during various training programmes attended across his career. He reported the issue to the appropriate vigilance authority and halted the contract to ensure citizen welfare.
    Which one among the following principles of public administration was most strongly demonstrated by Mr. X’s actions?

    [A] Esprit de corps

    [B] Equity

    [C] Accountability

    [D] Delegation

  • AI data centres’ power load to nearly double government’s earlier estimate

    Why in News

    The Ministry of Power informed Parliament that AI-driven data centres are expected to add 26.3 GW of electricity demand by 2031-32, nearly double the earlier estimate of 13.56 GW. The additional demand is proposed to be met primarily through renewable energy.

    Key Highlights

    • Revised estimate: Additional power load projected at 26.3 GW by 2031-32, up from 13.56 GW estimated earlier.
    • Renewable-powered growth: The government plans to meet most of this demand through renewable energy.
    • Rapid expansion: India’s data centre capacity is projected to increase from 2.2 GW (2025) to 12 GW by 2030 (Wood Mackenzie).
    • Digital economy: India’s digital economy is valued at around ₹32 lakh crore, contributing nearly 12% of GDP.
    • AI demand: Growth is being driven by Generative AI, cloud computing, big data analytics, fintech, e-commerce and digital public infrastructure.

    Why Do AI Data Centres Consume So Much Power?

    • AI model training requires high-performance GPUs and specialised chips.
    • Large-scale 24×7 computing and data processing significantly increase electricity demand.
    • Cooling systems account for a substantial share of total energy consumption.
    • Continuous operation requires high reliability and uninterrupted power supply.

    Significance

    • Strengthens India’s position as a global digital and AI hub.
    • Encourages investment in renewable energy, grid infrastructure and energy storage.
    • Supports growth of Digital India, semiconductor manufacturing and cloud services.
    • Creates employment in IT, engineering, power and infrastructure sectors.

    [2022, GS3, 15M] Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective? Explain.”

    [2020] With the print state of development, Artificial Intelligence can effectively do which of the following?
    1. Bring down electricity consumption in industrial units
    2. Create meaningful short stories and songs
    3. Disease diagnosis
    4. Text -to -Speech Conversion
    5. Wireless transmission of electrical energy
    Select the correct answer using the code given below:

    [A] 1, 2, 3 and 5 only

    [B] 1, 3 and 4 only

    [C] 2, 4 and 5 only

    [D] 1, 2, 3, 4 and 5

  • US critical minerals self-sufficiency push collides with 2027 deadline

    Why in News

    The United States is facing challenges in achieving self-sufficiency in defence critical minerals before its January 2027 target. The effort is complicated by China’s dominance, which accounts for over 80% of global critical minerals refining capacity.

    Key Highlights

    • Target minerals: The US is prioritising rare earth elements, tungsten and tantalum for defence and high-technology manufacturing.
    • Project Vault: The US is building strategic reserves through Project Vault, a programme to stockpile critical minerals for defence and industrial security.

    What are Critical Minerals?

    • Critical minerals are minerals essential for economic development, clean energy and national security, but whose supply chains are vulnerable to disruption.
    • They are indispensable for semiconductors, batteries, electric vehicles, renewable energy systems, aerospace and defence equipment.

    Importance of the Target Minerals

    • Rare Earth Elements (REEs): Used in permanent magnets, fighter aircraft, missiles, radar systems, wind turbines and electric vehicles.
    • Tungsten: Known for its high melting point and hardness; used in armour-piercing ammunition, aerospace components and cutting tools.
    • Tantalum: Used in electronic capacitors, semiconductors, medical devices and defence electronics because of its excellent heat and corrosion resistance.

    Why China Dominates

    • Controls a large share of mining, refining and processing capacity.
    • Built an integrated mine-to-manufacturing supply chain over several decades.
    • Benefits from state support, advanced processing technology and economies of scale.
    • Has previously used export restrictions as a strategic tool in geopolitical disputes.

    Why It Matters

    • Critical minerals are essential for national security, defence preparedness and advanced manufacturing.
    • Supply disruptions can affect clean energy transitions, semiconductor production and military readiness.
    • Diversifying supply chains has become a strategic priority for the US, EU, Japan, India and Australia.

    India’s Position

    • India has identified 30 critical minerals as strategically important.
    • The National Critical Mineral Mission (NCMM) aims to strengthen exploration, mining, processing, recycling and overseas acquisition of critical mineral assets.
    • India is also diversifying imports through partnerships under initiatives such as the Minerals Security Partnership (MSP).

    [2026] Which of the following statements about Rare Earth Elements (REEs) and Critical Minerals is/are correct?

    1. Modern technological innovations including Artificial Intelligence, robotics and space exploration extensively utilise Rare Earth Elements (REEs).

    2. China has the highest share in mining of REEs followed by India.

    3. The Government of India launched the National Critical Mineral Mission (NCMM) in 2025 to establish a robust framework for self-reliance in the critical mineral sector.

    4. Rare Earth Elements are a set of 13 metallic elements.

    (a) 1 and 3 only (b) 3 only (c) 1, 3 and 4 (d) 1, 2 and 4

  • Anti-defection law: Supreme Court seeks Centre’s reply on Tenth Schedule merger interpretation

    Why in News

    The Supreme Court has issued notice on a plea filed by Kapil Sibal challenging the prevailing interpretation of the merger exception under the Tenth Schedule (Anti-Defection Law). The plea, linked to the 2022 Goa defection case, argues that the current interpretation undermines the purpose of the Anti-Defection Law by allowing legislators to avoid disqualification without a genuine party merger.

    What is the Merger Exception?

    • Paragraph 4 of the Tenth Schedule provides an exception to disqualification in cases of a merger.
    • A merger is protected when not less than two-thirds of the legislators of a political party agree to merge with another party.
    • The present dispute is whether a legislative party alone can claim a merger, or whether the original political party must also merge.

    About the Tenth Schedule (Anti-Defection Law)

    • Added by the 52nd Constitutional Amendment Act, 1985.
    • Strengthened by the 91st Constitutional Amendment Act, 2003, which removed the earlier exemption for one-third splits.
    • Seeks to curb political defections, ensure government stability, and uphold party discipline.
    • The Presiding Officer (Speaker/Chairman) decides questions relating to disqualification.

    Constitutional Provisions

    • Articles 102(2) and 191(2): Provide for disqualification of MPs and MLAs under the Tenth Schedule.
    • Tenth Schedule: Contains provisions relating to disqualification on grounds of defection.

    Landmark Judgments

    • Kihoto Hollohan v. Zachillhu (1992): Upheld the constitutional validity of the Tenth Schedule and held that the Speaker’s decision is subject to judicial review.
    • Keisham Meghachandra Singh v. Speaker, Manipur (2020): Directed Speakers to decide disqualification petitions within a reasonable period, ordinarily three months.

    Issues with the Current Law

    • Delay in deciding disqualification petitions.
    • Allegations of partisan conduct by the Speaker.
    • Ambiguity regarding the merger exception.
    • Weakens representative democracy when mass defections alter electoral mandates.

    [2013, GS2, 10M] The role of individual MPs (Members of Parliament) has diminished over the years and as a result healthy constructive debates on policy issues are not usually witnessed. How far can this be attributed to the anti-defection law, which was legislated but with a different intention?”

    [2022] With reference to anti-defection law in India, consider the following statements:

    1. The law specifies that a nominated legislator cannot join any political party within six months of being appointed to the House.

    2. The law does not provide any time-frame within which the presiding officer has to decide a defection case.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • Western Ghats Eco-Sensitive Area notification remains deadlocked

    Why in News

    1. The Union Environment Ministry’s expert committee on Western Ghats Ecologically Sensitive Areas has had its tenure extended to July 2027.
    2. The 2024 draft notification covering 56,825 sq km remains unresolved across six states.

    Key Highlights

    1. Panel extension: Expert committee tenure extended to July 2027.
    2. Draft notification scope: 2024 draft notification covers 56,825 sq km across six states.
    3. Background dispute: The unresolved notification continues the divergence between the Gadgil Committee Report and the Kasturirangan Committee Report on how much of the Western Ghats should fall under Eco-Sensitive Area status.

    What is an Eco-Sensitive Area (ESA)?

    • Ecologically fragile areas notified under the Environment (Protection) Act, 1986.
    • Act as “shock absorbers” around protected ecosystems by regulating developmental activities.
    • Aim to balance environmental conservation with sustainable development.

    Gadgil Committee vs Kasturirangan Committee

    Gadgil Committee (Western Ghats Ecology Expert Panel, 2011)

    • Recommended about 64% of the Western Ghats as ESA.
    • Favoured strict conservation with a bottom-up, community-led approach.
    • Proposed a ban on mining, quarrying and highly polluting industries in sensitive zones.
    • Emphasised Gram Sabha participation in environmental governance.

    Kasturirangan Committee (High-Level Working Group, 2013)

    • Recommended about 37% of the Western Ghats (around 59,940 sq km) as ESA.
    • Used satellite imagery to identify ecologically sensitive landscapes.
    • Allowed greater flexibility for agriculture and human settlements.
    • Focused on balancing ecological protection with economic development.

    Significance of the Western Ghats

    • One of the world’s eight hottest biodiversity hotspots.
    • Recognised as a UNESCO World Heritage Site.
    • Origin of major peninsular rivers including Godavari, Krishna, Kaveri and Periyar.
    • Plays a crucial role in regulating the South-West Monsoon.
    • Supports rich biodiversity with a high proportion of endemic flora and fauna.
    • Provides vital ecosystem services, including water security and climate regulation.

    [2016] ‘Gadgil Committee Report’ and ‘Kasturirangan Committee Report’, sometimes seen in the news, are related to

    (a) constitutional reforms

    (b) Ganga Action Plan

    (c) linking of rivers

    (d) protection of Western Ghats

    “[2014] With reference to ‘Eco-Sensitive Zones’, which of the following statements is/are correct?

    1. Eco-Sensitive Zones are the areas that are declared under the Wildlife (Protection) Act, 1972.

    2. The purpose of the declaration of Eco-Sensitive Zones is to prohibit all kinds of human activities in those zones except agriculture.

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • Insurers seek first third party premium hike in four years

    Why in News?

    Non life insurers are pressing for their first motor third party premium hike in four years, citing a Supreme Court judgment recognising the economic value of homemakers’ unpaid domestic work.

    Key Highlights

    • In its 11 June 2026 judgment, the Supreme Court held that unpaid domestic work performed by homemakers has measurable economic value and must be fairly considered while awarding compensation under the Motor Vehicles Act, 1988.
    • Insurers argue that the ruling is likely to increase compensation payouts, adding to existing underwriting losses.
    • They have requested an upward revision in motor third party insurance premiums, the first such increase in four years.
    • The Central Government, in consultation with the Insurance Regulatory and Development Authority of India (IRDAI), notifies third party premium rates.

    Motor Third Party (TP) Insurance

    • Mandatory under the Motor Vehicles Act, 1988 for all motor vehicles operating in India.
    • Covers death, bodily injury, or property damage caused to a third party due to the insured vehicle.
    • Does not cover damage to the insured vehicle; that requires comprehensive motor insurance.
    • Premium rates are regulated by the Central Government, based on recommendations from IRDAI.

    Value Addition

    • IRDAI: Statutory regulator established under the Insurance Regulatory and Development Authority Act, 1999.
    • Motor Accident Claims Tribunal (MACT): Adjudicates compensation claims arising from road accidents under the Motor Vehicles Act, 1988.
    • Significance of the Supreme Court ruling: Strengthens recognition of the economic contribution of unpaid care work, advancing substantive gender equality and ensuring more equitable compensation in accident claims.

    [2026] With reference to different Committees in India, consider the following details :

    Sl. No.CommitteeObjectiveOrganization under which it was formed
    1R.N. Malhotra CommitteeComprehensive reforms of Insurance sector in IndiaInsurance Regulatory and Development Authority of India
    2L.C. Gupta CommitteePreparing a roadmap for the introduction of derivatives trading in IndiaSecurities and Exchange Board of India
    3Urjit R. Patel CommitteePreparing a roadmap for reforming bank lending to the Housing sectorReserve Bank of India
    4Y.H. Malegam CommitteePreparing a roadmap for reforms in Microfinance sector in IndiaReserve Bank of India


    In which of the above rows are all the details correctly matched ?

    [A] 2 only

    [B] 2 and 3

    [C] 1, 3 and 4

    [D] 2 and 4

  • 3 Great Indian Bustard Chicks Placed in Rewilding Tunnel

    Why in News?

    Three Great Indian Bustard (Godawan) chicks bred at the Godawan Conservation Centre, Jaisalmer, have been placed in a specially designed rewilding tunnel to prepare them for release into the Desert National Park under India’s captive breeding and species recovery programme.

    Background

    • The initiative is part of the Great Indian Bustard Recovery Programme, implemented by the Ministry of Environment, Forest and Climate Change (MoEFCC) in collaboration with the Wildlife Institute of India (WII), Rajasthan Forest Department and international conservation partners.

    Great Indian Bustard (Ardeotis nigriceps)

    • One of the heaviest flying birds in the world and endemic to the Indian subcontinent.
    • Locally known as Godawan in Rajasthan.
    • Inhabits arid grasslands, scrublands and semi-desert ecosystems.
    • Rajasthan’s Desert National Park holds the largest surviving wild population.

    Conservation Status

    • IUCN Red List: Critically Endangered
    • Wildlife (Protection) Act, 1972: Schedule I (highest protection)
    • CITES: Appendix I
    • CMS (Bonn Convention): Appendix I

    Major Threats

    • Collision with overhead power transmission lines (largest cause of mortality).
    • Habitat loss and fragmentation due to agriculture, infrastructure and renewable energy projects.
    • Predation of eggs and chicks by feral dogs and other predators.
    • Low reproductive rate (typically one egg per breeding season).

    Conservation Measures

    • National Conservation Action Plan for Great Indian Bustard (2013).
    • Species Recovery Programme under the Integrated Development of Wildlife Habitats (IDWH) scheme.
    • Captive Breeding Centre at Jaisalmer for population augmentation.
    • Undergrounding or bird diverters on power lines in priority habitats following Supreme Court directions.
    • Habitat protection and predator management in key breeding areas.

    [2012] Which one of the following groups of animals belongs to the category of endangered species?
    (a) Great Indian Bustard, Musk Deer, Red Panda and Asiatic Wild Ass
    (b) Kashmir Stag, Cheetal, Blue Bull and Great Indian Bustard
    (c) Snow Leopard, Swamp Deer, Rhesus Monkey and Saras (Crane)
    (d) Lion tailed Macaque, Blue Bull, Hanuman Langur and Cheetal

  • Drawing parallels between A.P., TN airport projects

    Why in News?

    With the Prime Minister set to inaugurate the Bhogapuram Greenfield International Airport in Andhra Pradesh on August 1, an analysis compared its execution with Tamil Nadu’s stalled Parandur airport project.

    Key Highlights

    • Bhogapuram Greenfield International Airport is scheduled for inauguration on 1 August 2026.
    • Parandur Greenfield Airport in Tamil Nadu continues to face delays due to land acquisition and rehabilitation concerns.
    • Land acquisition, compensation, and rehabilitation of affected families remain the principal bottlenecks in large greenfield infrastructure projects.
    • The comparison highlights the importance of timely clearances, stakeholder consultation, and fair compensation for successful infrastructure development.

    Greenfield Airport

    • A new airport developed from scratch on previously undeveloped land, unlike a brownfield airport, which expands or upgrades an existing airport.
    • In India, greenfield airports are approved under the Greenfield Airports Policy, 2008.
    • Approval is granted by the Ministry of Civil Aviation after assessing:
      • Demand and traffic potential
      • Site suitability
      • Environmental and statutory clearances
      • Financial viability
    • Airports are generally developed through public, private, or Public-Private Partnership (PPP) models.

    Value Addition

    • Nodal Ministry: Ministry of Civil Aviation.
    • Airport Development Agency: Airports Authority of India (AAI) provides technical support and develops many airports.
    • Constitutional Basis for Land Acquisition: Governed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013, which mandates fair compensation, rehabilitation, and social impact assessment.
    • Significance: Greenfield airports improve regional connectivity under the UDAN (Ude Desh ka Aam Nagrik) scheme, promote tourism, attract investment, and support balanced regional economic development.

    [2024] Consider the following airports:

    1. Donyi Polo Airport

    2. Kushinagar International Airport

    3. Vijayawada International Airport.

    In the recent past, which of the above have been constructed as Greenfield projects?

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3.

  • Trump’s new forced labour tariffs face global pushback and legal questions

    Why in News?

    The United States’ new forced labour tariffs under Section 301, covering more than 60 countries, face legal pushback from Brazil and Australia over WTO compliance.

    Key Highlights

    • Tariffs are imposed under a Section 301 forced labour enforcement investigation, covering over 60 trading partners.
    • Brazil and Australia are contesting the tariffs’ compliance with WTO rules.
    • The dispute remains open, legally and diplomatically.

    Section 301 (U.S. Trade Act, 1974)

    • Empowers the Office of the United States Trade Representative (USTR) to investigate and respond to unfair foreign trade practices.
    • Authorises the U.S. to impose tariffs or other trade restrictions if another country’s actions are found to burden or restrict U.S. commerce.
    • Frequently used in disputes involving intellectual property, market access, subsidies, and labour practices.

    World Trade Organization (WTO)

    • Established in 1995, succeeding the General Agreement on Tariffs and Trade (GATT), 1947.
    • Headquarters: Geneva, Switzerland.
    • Objective: Ensure rules-based, predictable, and non-discriminatory international trade.
    • Functions include administering trade agreements, resolving disputes, monitoring trade policies, and providing technical assistance.

    Value Addition

    • Most-Favoured-Nation (MFN) Principle (Article I, GATT): WTO members must treat all trading partners equally unless an exception applies.
    • Dispute Settlement Understanding (DSU): Discourages unilateral trade retaliation and requires members to resolve disputes through the WTO mechanism.
    • Relevance for India: Increasing use of unilateral tariffs by major economies can affect export competitiveness and test the credibility of the multilateral trading system.

    [2018, GS2, 15 marks] What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially keeping in mind the interest of India?”