Context:
In February 2025, the Supreme Court of India stayed a controversial order issued by the Lokpal, which had attempted to bring High Court judges within its jurisdiction by categorizing them as "public servants" under the Lokpal and Lokayuktas Act, 2013. The apex court termed the Lokpal’s interpretation as “very disturbing” and in contradiction with settled constitutional principles.

Understanding the Lokpal and Its Jurisdiction

Origin and Legal Framework:

• Concept Origin: The term "Lokpal" was coined by Dr. L.M. Singhvi in 1963. The concept was originally inspired by the Swedish institution of the Ombudsman (1809).
• Legislative Foundation: The Lokpal and Lokayuktas Act, 2013 was passed following public pressure during the Anna Hazare-led India Against Corruption movement.
• Purpose: To act as an independent anti-corruption body with jurisdiction over high-ranking public officials.

Structure and Jurisdiction:

• Composition:Lokpal comprises a Chairperson and up to 8 members (50% must be judicial).
• Selection Committee: Includes the Prime Minister, Speaker of Lok Sabha, Leader of Opposition, Chief Justice of India, and an eminent jurist.
• Jurisdiction (Section 14):
  • Prime Minister (with exceptions related to national security, international relations, etc.)
  • Union Ministers and Members of Parliament
  • Government servants (Group A-D)
  • Chairpersons, officers of public entities, and NGOs receiving foreign contributions over ?10 lakh annually

The Controversy: Inclusion of High Court Judges

The Lokpal recently issued an order stating that High Court judges qualify as public servants under the Lokpal Act. The reasoning was based on historical foundations:

• Lokpal’s Argument:
  • High Courts were established under British-era laws like the Indian High Courts Act, 1861.
  • Article 214 of the Constitution merely recognizes these courts rather than creating them.
  • Therefore, High Court judges should fall under Lokpal’s purview, unlike Supreme Court judges who are appointed under Article 124.

Supreme Court’s Response and Constitutional Position

The Supreme Court overruled Lokpal’s interpretation, citing constitutional provisions and established legal precedent:

• Appointment under the Constitution:
  • High Court judges are appointed under Article 217 of the Constitution.
  • Supreme Court judges are appointed under Article 124.
  • Both are constitutional functionaries and hence outside the jurisdiction of Lokpal, which is a statutory body.
• 1991 K. Veeraswami Judgment (Five-Judge Bench):
  • Unanimously held that judges are public servants, but no criminal case can be registered against them without prior consultation with the Chief Justice of India (CJI).
  • Even if the CJI is the accused, the consultation must occur with other senior SC judges.
  • Emphasized judicial independence and the need for protection against frivolous or motivated inquiries.
• Judicial Integrity vs Public Scrutiny:
  • While corruption among judges is not immune to scrutiny, the procedure must ensure judicial independence, prevent erosion of public trust, and protect honest judges from harassment.

Critical Analysis: Lokpal's Overreach and Constitutional Boundaries

• Violation of Doctrine of Separation of Powers:The Lokpal's attempt to extend its reach to constitutional judges infringes on the independence of the judiciary, a basic feature of the Constitution.
• Constitutional Supremacy vs Statutory Authority:The Lokpal, being a creation of Parliament, cannot override the constitutional safeguards provided to judges under Articles 124 and 217.
• Judicial Precedent Binding on Statutory Bodies:Ignoring the K. Veeraswami judgment not only undermines legal precedent but also reflects a lack of institutional discipline.

Conclusion

The recent conflict between the Lokpal and the Supreme Court over jurisdictional boundaries highlights the delicate balance between ensuring accountability and preserving judicial independence. While combating corruption remains vital, procedural safeguards and constitutional norms must guide such actions. The episode reiterates the importance of institutional clarity, inter-agency respect, and adherence to constitutional principles in India's democratic framework.

Context:
The world’s glaciers are melting at an alarming rate due to anthropogenic climate change, making them one of the leading contributors to global sea-level rise. Recent studies have revealed that more than 7 trillion tonnes of ice have been lost since 2000, with 2023 marking the worst year on record.

Key Data and Trends

• Between 2000 and 2023, glaciers lost 6.54–7 trillion tonnes of ice, contributing approximately 18 mm to global sea levels.
• The rate of glacier melt increased by 36% over the past decade:
  • 2000–2011: 255 billion tonnes lost annually
  • 2011–2023: 346 billion tonnes annually
  • 2023 alone: 604 billion tonnes lost — the highest annual loss recorded
• Globally, glaciers have lost 5% of their ice, with regional losses ranging from 2% to 39%.
• Alaska is the fastest-melting region, losing 67 billion tonnes per year (22% of global glacier mass loss).
• The Canadian Arctic (20%), Greenland periphery (13%), and Southern Andes (10%) are also major contributors.
• Central European glaciers are shrinking the fastest in relative terms, having lost 39% of their volume since 2000.

Causes of Glacier Meltdown

• Rising global temperatures due to greenhouse gas emissions from fossil fuel combustion.
• Extreme heatwaves and record summer temperatures, especially in vulnerable regions like the Alps and Andes.
• Reduced snowfall, leading to insufficient accumulation to balance seasonal melting.
• Human-induced climate change, confirmed as the primary driver of accelerated glacier loss.

Impacts of Glacier Melting

• Sea Level Rise
  • Glacier melt contributes more to sea-level rise than ice loss from Greenland and Antarctica.
  • Currently accounts for 0.75 mm/year of sea-level rise; projected to increase further.
• Water Resources & Scarcity: Melting glaciers provide short-term water surpluses but pose a long-term threat of freshwater scarcity, especially for regions dependent on glacier-fed rivers (e.g., Central Asia, Central Andes).
• Geohazards & Natural Disasters: Glacier retreat increases the risk of glacial lake outburst floods (GLOFs), landslides, and downstream flooding.
• Biodiversity Loss: Shrinking glaciers affect freshwater ecosystems and species reliant on glacial water.
• Economic Disruptions: Sectors like agriculture and tourism are adversely impacted due to changes in water availability and scenic landscape loss.

Scientific Insights and Global Assessments

• The Glacier Mass Balance Intercomparison Exercise (GlaMBIE) led by international experts used unified satellite and field data to provide the most accurate glacier loss estimates to date.
• Glaciers are now recognized as apolitical indicators of climate change, painting an unbiased picture of global warming trends.
• The IPCC stresses that without rapid cuts in emissions, glacier melt will continue or accelerate throughout the century, worsening its contribution to sea-level rise and regional climate vulnerabilities.
• Glaciers contribute 20% to observed global sea-level rise (2003–2016), behind only thermal expansion (33%), and more than the Greenland Ice Sheet (17%).

Conclusion

Glaciers are not just scenic features; they are critical to Earth’s hydrological and climatic systems. Their rapid melting signals an urgent planetary emergency that demands intensified climate action, focused on mitigation, adaptation, and international cooperation. For India, where Himalayan glaciers are vital for river systems and agriculture, this global trend holds serious implications for water security, disaster risk management, and sustainable development.

Context:

The recurring arrests of Indian fishermen by the Sri Lankan Navy in the Palk Bay region underscore a complex and unresolved bilateral issue, rooted in historical practices, ecological concerns, and geopolitical sensitivities. The most recent incidents in early 2025 have intensified the diplomatic and political discourse between the two neighbours.

Background and Origin of the Dispute

The core of the India–Sri Lanka fishing dispute lies in the contested fishing rights in the Palk Bay, a narrow strip of sea separating Tamil Nadu from northern Sri Lanka. The 1974 and 1976 maritime boundary agreements, particularly the ceding of Katchatheevu Island to Sri Lanka, formalized the International Maritime Boundary Line (IMBL). While Indian fishermen were permitted traditional access to the island for specific purposes, the agreements curtailed their fishing activities across the newly delineated boundary.

However, Tamil Nadu fishermen have historically fished in these waters, and the IMBL has not fully erased traditional patterns. The situation is worsened by ecological pressures on Indian fishing grounds, pushing fishermen into Sri Lankan waters.

Key Issues Involved

• Violation of IMBL and Traditional Rights:Indian fishermen often assert customary fishing rights across the IMBL, which clashes with Sri Lanka’s assertion of sovereignty over its territorial waters. Many crossings occur unintentionally due to poor navigation, engine failures, or inclement weather.
• Bottom Trawling and Environmental Concerns:The use of bottom trawlers by Indian fishermen is a major point of contention. This method, which scrapes the seabed, damages marine ecosystems and depletes resources, affecting both nations' long-term fisheries sustainability. Sri Lanka has banned bottom trawling and views it as ecological exploitation and illegal fishing.
• Security and Sovereignty Sensitivities:Sri Lanka perceives these incursions not only as violations of maritime boundaries but also as potential national security threats, recalling past concerns over Tamil militant movements operating from the sea.
• Recurrent Arrests and Humanitarian Concerns:The frequent arrests, imprisonment, and imposition of heavy fines on Indian fishermen have humanitarian and political implications. Often, fishing boats are not returned even after the release of the crew, causing further livelihood losses.

Efforts at Resolution

• Diplomatic Engagement:The issue has prompted high-level political intervention, with the Tamil Nadu government urging the Union Government for effective measures and the convening of a Joint Working Group (JWG) to address the issue diplomatically.
• Livelihood-Based Approaches:Both countries have discussed alternatives to resolve the crisis humanely, including exploring sustainable fishing practices, alternate employment, and deep-sea fishing training.
• Technological Interventions:Use of GPS-based tracking systems and awareness programs aim to prevent inadvertent border crossings and encourage responsible fishing.
• People-to-People Dialogues:Calls for direct interaction between fishermen communities from both nations have been made, suggesting that grassroots engagement may ease tensions and promote mutual understanding.

International Legal Framework

• UNCLOS (1982):Provides legal clarity on maritime boundaries and responsibilities, but emphasizes mutual respect for sovereign rights and sustainable resource use.
• UN Fish Stocks Agreement (1995):Encourages cooperation in conserving transboundary fish stocks, suggesting the role of Regional Fisheries Management Organizations (RFMOs) in managing shared marine resources.

Conclusion

The India–Sri Lanka fishing dispute in the Palk Bay is not merely a bilateral maritime boundary issue; it is a convergence of historical rights, ecological degradation, livelihood dependence, and strategic concerns. While both countries have taken steps towards conflict management, a long-term solution lies in cooperative marine resource governance, joint monitoring, and community-centric diplomacy. Resolving this issue through dialogue, sustainable practices, and mutual sensitivity is essential to safeguard both bilateral relations and the rights and livelihoods of coastal communities.

In News:

The proliferation of Over-The-Top (OTT) platforms in India has transformed content consumption. However, rising concerns over obscene, vulgar, and explicit content have prompted the Ministry of Information & Broadcasting (I&B) to issue a fresh advisory urging adherence to the Code of Ethics under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules, 2021).

OTT platforms are digital streaming services that deliver content over the internet, bypassing traditional broadcasting. Their growing influence on public discourse, especially among youth, necessitates regulation.

Key Features of the Advisory

The advisory mandates strict compliance with the Code of Ethics under IT Rules, 2021:

• Prohibition of unlawful and obscene content.
• Age-based content classification and access control for ‘A’-rated content.
• A three-tier grievance redressal mechanism:
  • Level I: Self-regulation by publishers.
  • Level II: Oversight by self-regulatory bodies.
  • Level III: Government oversight via I&B Ministry.

OTT platforms must also comply with:

• Indecent Representation of Women (Prohibition) Act, 1986
• Protection of Children from Sexual Offences (POCSO) Act, 2012
• Information Technology Act, 2000
• Bhartiya Nyay Sanhita, 2023

Recent Trigger: ‘India’s Got Latent’ Controversy

The advisory follows public outrage over vulgar remarks made by podcaster Ranveer Allahbadia on the YouTube show ‘India’s Got Latent’. The Supreme Court criticized the Centre for inadequate oversight of digital content and demanded legal action. The Parliamentary panel also sought a review of existing laws and possible amendments to strengthen content regulation.

Rationale for a Code of Ethics

• Protecting Minors: Shields children from harmful or explicit material.
• Preserving Public Decency: Prevents normalization of obscene content.
• Fostering Trust: Builds accountability and transparency in content curation.

Global Best Practices

• Ofcom (UK): Advocates age-verification, content classification, and proactive monitoring.
• European Audiovisual Observatory: Emphasizes transparency, regular audits, and self-regulation.

Implementation Challenges

• Enforcement gaps and inconsistent compliance across platforms.
• Vague definitions in the rules create interpretational ambiguities.
• Technological limitations in age verification and filtering mechanisms.
• Creative resistance from platforms fearing curbs on artistic freedom.

Way Forward

• Establish an independent content regulatory body for continuous oversight.
• Foster collaboration between government, platforms, and global agencies.
• Mandate regular content audits and public awareness campaigns.
• Incentivize ethical compliance through certifications and recognition.

Conclusion

While digital freedom is essential, unchecked content dissemination can erode societal values. The recent advisory underscores the need for a balanced regulatory approach—one that safeguards minors and public decency while respecting creative freedoms. A robust and dynamic Code of Ethics, coupled with technological upgrades and civic awareness, is key to building a safe and responsible digital media ecosystem in India.

In News:

The application of the death penalty in India continues to evoke debate, particularly in light of contrasting verdicts such as those in the 2024 R.G. Kar Medical College case and the Sharon Raj murder case. These cases highlighted the inconsistent application of the 'rarest of rare' doctrine, a judicial principle guiding capital punishment in the country.

Evolution of the 'Rarest of Rare' Doctrine

The debate surrounding the constitutionality and application of the death penalty began with Jagmohan Singh vs. State of Uttar Pradesh (1972). The Supreme Court upheld the death penalty’s constitutionality under Article 21 (Right to Life), ruling that it did not violate Articles 14 (equality before law) or 19 (freedom of speech and expression), despite concerns over lack of sentencing guidelines.

A definitive framework emerged in Bachan Singh vs. State of Punjab (1980), where the apex court held that the death penalty should only be awarded in the 'rarest of rare' cases. However, the Court did not precisely define what constituted "rarest of rare," leaving the interpretation to judicial discretion.

To bring clarity, the Supreme Court in Machhi Singh vs. State of Punjab (1983) outlined five guiding criteria to determine such cases:

1. Manner of the Crime – Exceptionally brutal, grotesque, or shocking to the community.
2. Motive of the Crime – Exhibiting extreme depravity or sadistic intent.
3. Socially Abhorrent Nature – Offenses targeting marginalized individuals or groups.
4. Magnitude of Crime – Cases involving multiple murders or large-scale violence.
5. Victim’s Vulnerability – When victims are children, women, elderly, or otherwise helpless.

Further, in Mithu vs. State of Punjab (1983), the Court struck down Section 303 of the IPC, which mandated the death penalty for life convicts committing murder. The judgment reaffirmed that capital punishment must remain discretionary, emphasizing judicial evaluation of aggravating and mitigating circumstances.

Case Studies: A Reflection of Judicial Discretion

• In the R.G. Kar Medical College case, a female medical trainee was raped and murdered. Despite the brutality, the court ruled that the case did not meet the threshold of 'rarest of rare' and awarded life imprisonment to the convict.
• Conversely, in the Sharon Raj case, a young man was poisoned by his partner in a premeditated act. The court termed it one of the 'rarest of rare' cases and awarded the death penalty, citing the calculated nature and moral depravity of the crime.

These differing verdicts underscore the subjective application of the doctrine, with considerable weight placed on judicial interpretation.

Contemporary Concerns and Legal Developments

While the doctrine aims to preserve the sanctity of life by making the death penalty an exception, its lack of statutory definition and variability in interpretation has invited criticism. In 2022, the Supreme Court referred the issue to a Constitution Bench to explore how sentencing procedures could better accommodate mitigating factors and ensure a "meaningful, real and effective" hearing before sentencing.

Conclusion

The 'rarest of rare' doctrine represents a critical balancing act between justice and retribution in India's legal system. Although it seeks to restrict capital punishment to the most egregious crimes, its ambiguous parameters and judicial discretion often lead to inconsistent outcomes. Going forward, a more standardized and transparent sentencing framework could strengthen judicial credibility and uphold constitutional morality.

In News:

Context:

India and the United States have reaffirmed their commitment to fully realise the 123 Civil Nuclear Agreement, marking a major push to revive progress two decades after the pact was signed in 2007.

Key Gains for India

• Technology Transfer & Localisation:The partnership envisions joint construction of US-designed nuclear reactors in India, incorporating large-scale localisation and technology transfer, reversing the US's usual "manufacture-at-home" stance.
• Upgrading India’s Nuclear Capacity:India aims to shift from PHWRs (Pressurised Heavy Water Reactors) to globally dominant PWRs (Pressurised Water Reactors). This will allow India to scale capacity addition and modernise its nuclear fleet.
• Entry into Small Modular Reactors (SMRs):
  • SMRs (30–300 MWe) are compact, scalable reactors viewed as essential for future clean energy demands.
  • India’s Department of Atomic Energy is exploring collaboration with Holtec International (USA) for joint manufacturing and deployment.
  • Holtec's SMR-300, supported by the US Department of Energy with $116 million, is under design review in the UK and Canada.
• Strategic Counter to China:India–US joint ventures in SMRs could counter China’s rising influence in the Global South through its aggressive SMR diplomacy.

Economic & Industrial Impacts

• Holtec plans a nuclear technology campus in Pune and a specialty manufacturing plant in India.
• Existing facility in Dahej, Gujarat, can double workforce if plans are approved.
• Legal reforms in India are being considered to attract investments from Western and Middle Eastern markets into the nuclear sector.

India: Leading the Next Phase of Global Outsourcing (Deloitte Report)

Key Findings from Deloitte’s ‘The Outsourcing Compass’ (2025)

• Growing Demand:
  • 81% of global organizations plan to increase outsourcing over the next 3–5 years.
  • India continues to lead as a global outsourcing hub, with a projected rise as the world’s 3rd-largest economy by 2027.
• Shift in Outsourcing Models:
  • Transition from back-office services to strategic, high-value functions like product development, AI/GenAI support, and brand management.
  • 98% of firms depend on Indian service providers for AI and GenAI capabilities.
• Modern Contracting Approaches:
  • 36% prefer outcome-based contracts over traditional FTE-based models.
  • AI-specific clauses are being added to outsourcing contracts to enhance tracking and cost control.
• Strategic Collaborations & Cost Efficiency:
  • Strategic-niche partnerships yield 10–25% annual cost savings; some report 15–35% savings.
  • 70% of organizations work with non-traditional providers to access innovative technologies.
• Evolving Operating Models:
  • 55% use Global Business Services (GBS) centers for oversight; execution by third-party providers.
  • 35% adopt Build-Operate-Transfer (BOT) models to scale up while retaining control.
• Robust Governance Structures:
  • 45% of mature outsourcing firms operate Vendor Management Offices (VMOs) to manage risks and enhance effectiveness.

Why India Remains Preferred:

• A skilled digital workforce, thriving startup ecosystem, policy stability, and advancements in cybersecurity and vendor governance bolster India’s position.

In News:

India’s horticulture sector is crucial to its agricultural economy, encompassing the cultivation, production, processing, and marketing of fruits, vegetables, and ornamental plants. The sector includes sub-sectors like pomology (fruit cultivation), olericulture (vegetable cultivation), floriculture (flower cultivation), and arboriculture (cultivation of trees). India stands as the second-largest producer of fruits and vegetables globally, trailing only China.

In 2023-24, India’s horticultural production was estimated at 355 million tonnes, surpassing food grain production. The sector contributes 33% to the agricultural Gross Value Added (GVA), growing at an annual rate of 4-5%, outpacing cereal production.

Despite its size and importance, India’s horticulture sector faces several challenges. Post-harvest losses are significant, with about 8.1% for fruits and 7.3% for vegetables, translating into a loss of ?1.53 trillion annually. These losses are primarily due to inadequate cold storage and processing infrastructure, as well as fragmented value chains, where middlemen dominate, resulting in low farmer incomes. Farmers typically receive only 30% of the final consumer price for their produce.

Challenges in India’s Horticulture Sector

• Infrastructure Deficit: The absence of efficient logistics, cold storage, and warehousing facilities contributes to delays and wastage of perishable horticultural crops. The cold storage capacity is concentrated in just a few states, limiting access for farmers across the country.
• Small Operational Landholdings: Many farmers operate on small plots, limiting their ability to adopt sustainable practices and crop rotation, leading to reduced yields and soil degradation.
• Limited Value Addition: Only 10% of India’s fruits and vegetables are processed, compared to 60-70% in developed countries, leading to distress sales and low earnings for farmers.
• Market Linkages and Export Challenges: Indian farmers have limited access to direct markets, and the country’s export share in horticultural produce is low. Non-tariff barriers such as Sanitary and Phytosanitary (SPS) standards also hinder India's export growth.

Government Initiatives for Horticulture

Several initiatives have been launched to address these challenges:

• Mission for Integrated Development of Horticulture (2014) aims to foster holistic growth through cluster approaches and better linkages.
• Operation Greens, initially focused on specific crops like tomatoes, onions, and potatoes, has been extended to all horticultural crops to address price volatility.
• The Farmer Producer Organisation (FPO) model is being promoted to help farmers collectively bargain for better prices. As of August 2024, 8,875 FPOs have been established with a target of 10,000 by 2027.
• The Agriculture Infrastructure Fund (AIF) provides financial support for cold chains, warehouses, and processing units.

Case Study: Sahyadri FPO

A notable example of FPO success is the Sahyadri Farmer Producer Company Ltd (SFPCL) in Maharashtra, which started with 10 farmers in 2004 and has grown to include 26,500 farmers across 252 villages. With an annual turnover of ?1,549 crore (2023-24), SFPCL has become the largest grape exporter, with 90% of exports going to the EU and UAE. Farmers involved in the FPO receive 55% of the final export price, significantly higher than the typical 30% in traditional markets. This model demonstrates the potential of cooperative farming in enhancing farmers' incomes.

Way Forward: Scaling Up the Amul Model

To replicate the success of AMUL in the dairy sector, India’s horticulture sector must focus on:

• Strengthening FPOs: Support should be provided for working capital, infrastructure, and digital integration. Leveraging platforms like the Open Network for Digital Commerce (ONDC) can enhance market access for FPOs.
• Expanding Processing and Storage Infrastructure: Financial allocation for cold storage, processing facilities, and logistics must be increased under schemes like Operation Greens.
• Public-Private Partnerships (PPP): Encourage collaborations between the government and private sectors to enhance food processing, distribution, and retail linkages.
• Technology Integration: Adoption of technologies like blockchain for traceability and AI-driven price prediction models can improve market transparency and reduce distress sales.

By expanding successful models like Sahyadri FPO, India can transform its horticulture sector, enhance farmer incomes, ensure food security, and increase agri-export earnings. This approach could play a pivotal role in rural development and poverty alleviation, benefiting both farmers and consumers.

Context:

India’s Sovereign Green Bonds (SGrBs) are a key instrument to mobilize resources for climate-resilient infrastructure and sustainable development. However, despite their potential, the bonds have struggled to attract robust investor interest, thereby limiting the government’s ability to secure a meaningful greenium—a lower cost of borrowing that typically incentivizes green finance globally.

What are Sovereign Green Bonds?

SGrBs are debt instruments issued by the Government of India to raise capital for projects that contribute to environmental sustainability and low-carbon development. They are part of India’s broader green financing strategy to meet its Net Zero target by 2070. These bonds are issued by the Ministry of Finance, under the oversight of the Department of Economic Affairs (DEA), and are guided by India’s Green Finance Framework, aligned with global green bond principles.

Application of Funds:

The proceeds from SGrBs are earmarked exclusively for green projects, ensuring transparency and impact-based investment. Key sectors financed include:

• Electric Locomotive Manufacturing (largest beneficiary through the Ministry of Railways)
• Urban Mobility: Metro rail and public transport systems
• Renewable Energy: Solar, wind, and the National Green Hydrogen Mission
• Afforestation: Under the National Mission for a Green India
• Grid-Scale Solar Projects, though allocations here have been curtailed due to fiscal constraints

Performance and Allocation Trends:

India raised ?16,000 crore through SGrBs in FY 2022–23 and ?20,000 crore in FY 2023–24. For FY 2024–25, ?16,697 crore has been raised so far. However, due to muted investor demand, the revised fundraising estimate has been reduced from ?32,061 crore to ?25,298 crore. A fiscal gap of ?3,600 crore will be met through general revenue, reflecting limited success in expanding green finance.

Challenges:

• Weak Greenium: Indian SGrBs offer little to no financial advantage over conventional bonds, with greenium as low as 2–3 basis points. Globally, it averages 7–8 basis points, still modest but relatively attractive.
• Low Investor Demand: Several bond auctions witnessed under-subscription. For instance, ?7,443 crore worth of bonds were devolved to primary dealers in recent auctions due to high yield expectations from investors.
• Illiquid Secondary Market: Small issuance sizes and a trend of holding bonds till maturity restrict active trading, deterring market participants.
• Underdeveloped Sustainable Finance Ecosystem: India lacks dedicated ESG funds, responsible investment mandates, or regulatory incentives for green bond investments.

Recommendations:

• Enhance Credit Guarantees: Collaborate with multilateral institutions like the World Bank or IFC to back green bonds, enhancing their creditworthiness.
• Expand Domestic Green Investment Base: Promote ESG-focused mutual funds, offer tax incentives, and establish a regulatory framework to attract long-term green capital.
• Improve Market Liquidity: Increase bond issuance sizes and introduce market-making mechanisms to deepen secondary market activity.
• Leverage Public-Private Partnerships: Engage private players in project implementation to diversify and scale up green investment opportunities.

Conclusion:

India’s Sovereign Green Bonds symbolize a strategic shift toward sustainable development financing. While challenges persist, especially in market participation and pricing incentives, strengthening domestic financial ecosystems and leveraging global support can make green bonds a cornerstone of India’s climate financing roadmap.

Context:
On January 20, U.S. President Donald Trump, upon beginning his second term, issued an executive order imposing a 90-day freeze on foreign assistance. The directive aimed to reassess the efficiency and alignment of U.S. foreign development programs with its foreign policy priorities. This decision led to an immediate halt in operations of the United States Agency for International Development (USAID), with the majority of its 10,000 personnel placed on administrative leave and project funding suspended worldwide.

What is USAID?

• Established in 1961 under President John F. Kennedy through an Act of Congress, the United States Agency for International Development (USAID) functions as an independent agency responsible for administering civilian foreign aid and development assistance.
• Its core mission is to promote democratic values, global peace, and prosperity while advancing American national security and economic interests.
• USAID operates in over 100 countries, partnering with governments, NGOs, private firms, and international organizations.
• It offers financial support, technical assistance, and capacity-building across key sectors such as health, education, food security, economic development, humanitarian relief, environmental sustainability, and governance.
• Prominent initiatives include:
  • PEPFAR: A flagship HIV/AIDS prevention and treatment program.
  • Feed the Future: Focused on combating hunger and improving food security.
  • Power Africa: Aimed at expanding electricity access across Africa.
  • Water for the World Act: Enhancing water, sanitation, and hygiene infrastructure.
• In 2024, USAID disbursed $44.2 billion globally, which accounted for approximately 0.4% of the U.S. federal budget. Notably, the agency contributed to around 42% of all humanitarian aid tracked by the United Nations that year.

Rationale and Political Overtones

The Trump administration justified the freeze as a review for improving programmatic efficiency and ensuring alignment with U.S. strategic interests. However, critics argue the move is politically motivated, targeting Biden-era programs. Elon Musk, heading the Department of Government Efficiency (DOGE), labeled USAID a "criminal organization," while Secretary of State Marco Rubio indicated a broader plan for restructuring.

Global Impact of the Freeze

The abrupt suspension of USAID operations threatens development and humanitarian efforts across numerous vulnerable regions. Top recipients like Ukraine, Ethiopia, Somalia, Syria, and Yemen face the sudden withdrawal of critical support in health, food security, disaster relief, and infrastructure.

The United Nations has warned that halting support for HIV/AIDS programs alone could result in over six million deaths within four years. In several African and Middle Eastern nations, the absence of aid could derail long-term projects aimed at poverty alleviation, maternal and child health, vaccination drives, and crisis response mechanisms.

Moreover, the withdrawal risks diminishing the U.S.’s diplomatic influence in the Global South, potentially creating a vacuum for geopolitical competitors such as China, which may expand its presence through initiatives like the Belt and Road Initiative (BRI).

Impact on India

USAID's involvement in India dates back to 1951, when President Truman signed the India Emergency Food Aid Act. Over the decades, it evolved from providing food aid to supporting economic reforms, infrastructure, and public health initiatives. However, India’s dependency on USAID has significantly declined in recent years.

In 2024, USAID allocated approximately $79.3 million to India, primarily focused on healthcare, including HIV/AIDS, tuberculosis, maternal and child health, and immunization programs. This constituted only about 0.2% to 0.4% of USAID’s global disbursement.

While the immediate impact on India may be limited due to reduced reliance and growing self-sufficiency, some ongoing health and sanitation projects could face temporary disruptions. The Indian government and implementing agencies have been directed to suspend USAID-funded operations, raising concerns about the continuity of services for vulnerable populations.

Conclusion and the Way Forward

The freeze on USAID funding reflects a shift in U.S. foreign aid philosophy and signals potential isolationist tendencies. While India may be resilient, many developing nations in Africa, the Middle East, and Asia could witness significant humanitarian and developmental setbacks.

To mitigate the impact, affected countries must:

• Enhance domestic resource mobilization to sustain critical development programs.
• Deepen partnerships with multilateral institutions like the UN, World Bank, and WHO.
• Encourage private sector participation through Corporate Social Responsibility (CSR) initiatives.
• Foster South-South cooperation to promote shared growth models.

The episode underscores the urgent need for the Global South to diversify funding sources and build internal capacities to safeguard developmental progress from geopolitical uncertainties.

In News:

The Supreme Court of India has recently agreed to hear a plea seeking the right to passive euthanasia for rabies patients, citing the exceptional nature of the disease and the absence of a cure. The matter, listed for hearing after two weeks, is poised to test the scope and application of the 2018 passive euthanasia ruling under Article 21 of the Constitution.

Background of the Case

• The petition was filed by the NGO All Creatures Great and Small in 2019, challenging a Delhi High Court order (July 2019) which refused to classify rabies as an exceptional case warranting "death with dignity".
• The Supreme Court issued notice in January 2020 to the Centre and other stakeholders, seeking their response.
• On February 10, 2025, a bench of Justices B.R. Gavai and K. Vinod Chandran agreed to hear the matter after two weeks.

Grounds for the Plea

The NGO has urged the Court to lay down a specific protocol enabling terminally ill rabies patients or their guardians to opt for passive euthanasia under medical supervision. Key arguments include:

• Rabies has a 100% fatality rate once symptoms appear.
• The disease often leads to violent neurological symptoms, requiring patients to be tied or shackled to beds, stripping them of dignity and personal freedom.
• The intense suffering and irreversible nature of rabies, coupled with the lack of any effective treatment, makes it distinct from other terminal conditions.
• The plea seeks the creation of an exceptional legal category for rabies within the framework of the 2018 Supreme Court judgment.

Understanding Euthanasia in India

Definitions:

• Euthanasia literally means “good death” and refers to hastening death to relieve pain and suffering.
• Active Euthanasia involves deliberate acts to cause death (e.g., lethal injection) and remains illegal in India.
• Passive Euthanasia involves withholding or withdrawing life support from terminally ill patients and was legalised in 2018.

Legal Milestone:

• In the Common Cause v. Union of India (2018) case, a five-judge Constitution Bench ruled that the right to die with dignity is a part of the fundamental right to life under Article 21.
• The verdict permitted passive euthanasia and the creation of a “living will”—a legal document allowing patients to refuse life support if in a terminal or vegetative state.

Ethical and Constitutional Dimensions

• The plea raises significant questions about human dignity, bodily autonomy, and the limits of state intervention in end-of-life decisions.
• It also brings focus to judicial responsibility in expanding fundamental rights, especially in the context of terminal, untreatable illnesses.

Conclusion

The outcome of this case could have far-reaching implications on medical jurisprudence and the ethics of end-of-life care in India. If the Court recognizes rabies as an exception, it may set a precedent for disease-specific passive euthanasia protocols, expanding the practical application of the 2018 ruling.

In News:

Despite the expected cooling influence of La Niña, January 2025 became the hottest January on record, with global average surface air temperatures 1.75°C above pre-industrial levels (1850–1900), according to the Copernicus Climate Change Service (C3S). This marked the 18th out of the last 19 months that global temperatures exceeded the 1.5°C threshold. The inability of La Niña to curb this warming trend underscores the intensifying impact of anthropogenic climate change.

Understanding La Niña and the ENSO Cycle

La Niña, meaning "The Little Girl" in Spanish, is the cool phase of the El Niño Southern Oscillation (ENSO)—a recurring climate phenomenon involving variations in oceanic and atmospheric conditions in the central and eastern tropical Pacific Ocean.

• Phases of ENSO:
  • El Niño (warm phase): Warmer ocean temperatures in the eastern Pacific, weakening trade winds and reducing rainfall in the western Pacific.
  • La Niña (cool phase): Colder sea surface temperatures in the eastern Pacific, strengthening trade winds and enhancing rainfall in the western Pacific.
  • Neutral phase: Sea surface temperatures are near average with no dominant anomalies.
• Mechanism: During La Niña, strengthened trade winds push warm surface waters westward, causing cold waters to upwell in the eastern Pacific. This typically results in global cooling.
• ENSO Cycle: These phases occur every 2 to 7 years and influence weather patterns globally. The ENSO cycle leads to sea surface temperature variations between ±1°C to ±3°C from the long-term average.

The 2024–25 La Niña: A Weakened Climate Driver

• Emergence: The current La Niña phase began in December 2024, later than anticipated. Forecasts had expected it around September 2024, giving it insufficient time to strengthen before its typical peak in the Northern Hemisphere winter.
• Intensity: It is projected to be a mild La Niña, reducing its capacity to significantly influence global temperatures.
• Past Events: The most recent La Niña cycle lasted from 2020 to 2023, followed by a strong El Niño through mid-2023.
• Delayed Cooling Effect: The weaker-than-usual La Niña failed to produce the anticipated cooling, surprising scientists. As Julien Nicolas from Copernicus observed, the expected “temporary brake” on global temperatures did not materialize.

Why January 2025 Remained Hot Despite La Niña

• Global Ocean Warming: Oceans have retained higher-than-usual warmth due to long-term climate change, diluting La Niña’s cooling influence.
• Weak La Niña Onset: A late and weak phase meant less disruption to the prevailing warming trend. According to NOAA, La Niña events need more time and intensity to impact temperatures effectively.
• Persistent GHG Emissions: The concentration of greenhouse gases reached record highs in 2024, adding to the Earth's heat burden. Typically, La Niña-induced rains spur vegetation growth and carbon absorption, but weaker rains in this cycle limited that effect.
• Reduced Aerosols: Declines in atmospheric aerosols—due to cleaner air policies—lessened their usual cooling impact. Aerosols scatter solar radiation and influence cloud dynamics, contributing to temperature moderation.

Global and Regional Climatic Impacts of La Niña

Despite its weak intensity, La Niña still shaped regional weather in varied ways:

Asia

• India: Higher monsoon rainfall (July–September) is expected. This boosts rice production but may reduce pulse output in the Indo-Gangetic Plain.
• Southeast Asia: Nations like Indonesia, Malaysia, and the Philippines face increased rainfall—raising flood risks but aiding rice and palm oil yields.

South America

• Southern Brazil, Uruguay, northern Argentina, and southern Bolivia face drought due to reduced rainfall, affecting soybean and maize crops.
• Northern Brazil, Colombia, Venezuela, and parts of Ecuador and Peru receive excess rain, risking floods.

Africa

• East Africa: Experiences dry conditions in December–January, hampering harvests in February–March.
• Southern Africa: Receives above-average rainfall, benefitting crops like maize, wheat, sorghum, and soybeans.

Oceania

• Australia: Faces heavy rain and possible flooding in its northern and eastern regions.

North America

• Southern US: Experiences dry conditions.
• Northern US, Canada, and Alaska face wetter, stormier weather.

Significance for India

1. Agriculture: Enhanced monsoon rains improve farm productivity, especially rice.
2. Water Resources: Better reservoir levels alleviate water stress.
3. Energy: Increases hydropower potential.
4. Heat Mitigation: Reduces severity of heatwaves compared to El Niño years.

Monitoring & Prediction

• Oceanic Niño Index (ONI): Tracks 3-month average SST anomalies. Values below –0.5°C indicate La Niña.
• Nino-3.4 Index: Confirms ENSO thresholds. Anomalies of ±0.5°C signal event onset; ±1.5°C indicates strong events.
• Tools Used: Satellite data, trade wind strength, and ocean buoys support forecasts. La Niña can be predicted up to two years in advance if preceded by a strong El Niño.

Conclusion:

The 2024–25 La Niña's inability to cool global temperatures highlights a worrisome trend—the diminishing moderating influence of natural climate phenomena. With greenhouse gas emissions continuing to rise and natural cooling cycles weakening, urgent global action is needed to reduce emissions and mitigate climate change impacts.

In News:

India’s GDP is projected to nearly double from $3.7 trillion in 2023–24 to $7 trillion by 2030–31, driven by strong digital infrastructure, financial inclusion, and supportive fiscal policies. However, to sustain this growth, robust capital formation and increased credit flow are essential.

The current banking regulatory architecture—comprising Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), Liquidity Coverage Ratio (LCR), andPriority Sector Lending (PSL)—while ensuring stability, also constrains banks’ lending capacity, particularly for the private sector and MSMEs.

Investment Needs and Private Sector Slowdown

India needs $2.5 trillion in investments, demanding an investment-to-GDP ratio of 34%. Public investment alone is insufficient due to fiscal deficit constraints, necessitating greater reliance on private capital and household savings. However, the investment-to-operating cash flow ratio for the private sector has declined from 114% in 2008–09 to 56% in 2023–24, reflecting weakening investment appetite.

Challenges in Financial Intermediation

Banks’ share in household financial savings has declined from 50% to 40%, as savers turn to higher-yield options like mutual funds. Simultaneously, banks face high regulatory pre-emptions, holding nearly 30% of deposits as non-lendable reserves, including:

• SLR (~26%), exceeding the mandated 18% due to LCR constraints,
• CRR (4%), which earns no interest.

These requirements reduce lendable resources, raise borrowing costs, and constrain credit growth, especially for MSMEs. Further, upcoming LCR norms for digital deposits could require banks to allocate 2–2.5% more to liquid assets, limiting credit availability further.

Need to Rationalize Regulations

Globally, LCR is the standard liquidity norm, but India uniquely mandates both SLR and LCR, leading to excessive capital retention in low-yield instruments. Additionally, India’s exclusion of CRR from High-Quality Liquid Assets (HQLA) reduces bank profitability. While Basel III emphasizes flexible, institution-specific liquidity planning, the RBI’s rigid mandates hinder optimal resource deployment.

Liquidity Access and MSME Credit Gap

Large corporates can access capital via equity and bond markets, but MSMEs remain dependent on bank credit, facing persistent shortages. PSL norms, which account for over 60% of bank lending, can distort credit risk pricing and misallocate capital. A revision is needed to align PSL with India’s changing economic structure.

Credit Growth and Exchange Rate Management

India’s credit growth lags nominal GDP growth, signaling underinvestment and risks to financial stability. Revisiting the credit-to-deposit (CD) ratio can help banks raise capital more efficiently. Meanwhile, defending the rupee against a strong dollar has drained liquidity without addressing currency overvaluation, which continues to hurt export competitiveness.

Way Forward

• Rationalize SLR and LCR mandates to unlock liquidity and lower interest rates.
• Revise PSL norms to reflect new growth priorities.
• Stimulate private investment through policy stability and ease of doing business.
• Deepen bond markets to diversify capital sources.
• Align digital banking fees with global norms for viability.

Conclusion

India stands at a critical juncture in its economic transformation. Reforms in banking regulation, better financial intermediation, and improved credit access are pivotal to achieving the vision of a $7 trillion economy. A forward-looking regulatory framework will empower banks to act as true engines of inclusive and sustained growth.

In News:

India and France, bound by a deep-rooted strategic partnership since 1998, have expanded cooperation across defence, nuclear energy, space, trade, and culture. In a significant move reflecting shared values and mutual respect, Prime Minister Narendra Modi was invited by French President Emmanuel Macron to co-chair the Artificial Intelligence (AI) Action Summit in Paris in 2024—marking a pivotal moment in global AI governance and Indo-French relations.

Enduring Strategic Relations

India-France relations are anchored in the principles of strategic autonomy and reciprocal respect. France has consistently stood by India in challenging times—refusing sanctions post-Pokhran-II nuclear tests in 1998 and maintaining diplomatic engagement during the Emergency in 1976. President Macron’s participation in India’s 2024 Republic Day celebrations underscores the warmth in bilateral ties.

Robust Defence and Technological Cooperation

Defence cooperation forms the backbone of the relationship. Key initiatives include:

• Rafale Fighter Jets: Procurement of 36 Rafales and discussions on 26 Rafale-M jets for the Indian Navy.
• P-75 Scorpene Submarines: Expansion plans include three additional submarines.
• Next-gen Jet Engine Development and a dedicated DRDO office in Paris (2023) to bolster technology collaboration. France’s unique support for Make in India and technology transfer sets it apart, coupled with training programs for Indian personnel.

Expanding Frontiers: AI and Innovation

The Paris AI Summit marked a strategic milestone, with India’s role highlighting its growing global influence in emerging technologies. India presented its flagship IndiaAI Mission—a ?10,371 crore initiative focused on “Making AI in India and Making AI for India,” promoting equitable AI access and innovation.

The Summit, following the UK (2023) and South Korea (2024) AI summits, focused on:

• Public Interest AI
• Future of Work
• Innovation & Culture
• Trust in AI
• Global AI Governance

India advocated responsible AI, inclusive governance, and greater representation of the Global South, emphasizing AI's role in sustainable development and reducing the global AI divide.

Multilateral Engagement and Global Cooperation

India co-chairs the Global Partnership on Artificial Intelligence (GPAI) for 2024, reinforcing its commitment to ethical and collaborative AI development. Through the Paris Summit, India contributed to the Leaders' Statement, participated in steering committees, and called for AI democratization aligned with Sustainable Development Goals (SDGs).

Beyond AI: Economic and Cultural Synergies

Bilateral trade surpassed $15 billion in 2023–24, with Indian exports at $7.14 billion and imports at $7.97 billion. Key developments:

• India-France CEOs Forum: Focus on defence, renewable energy, pharma, and startups.
• India-France Innovation Year 2026 and inauguration of a new Indian consulate in Marseille.
• Triangular Development Cooperation Initiative: Joint projects in the Indo-Pacific focused on climate and SDG targets.
• Joint visit to the ITER fusion energy project, reflecting shared aspirations for clean energy.

Conclusion

The India-France partnership has matured into a multifaceted global alliance—from defence and climate action to AI leadership and sustainable development. The co-chairing of the AI Summit symbolizes India's rising stature in tech diplomacy and affirms the enduring strategic trust between two democratic powers. For UPSC aspirants, this partnership exemplifies strategic depth, technological collaboration, and global engagement driven by shared values and autonomy.

In News:

Article 22 of the Indian Constitution, enshrined in Part III under Fundamental Rights, provides critical safeguards to individuals against arbitrary arrest and detention. It ensures that liberty is not curtailed without adherence to due process. These rights are applicable to all individuals—citizens and non-citizens—except enemy aliens and those under preventive detention laws.

Key Provisions of Article 22:

• Article 22(1): No person who is arrested shall be detained without being informed of the grounds for such arrest. The arrestee has the right to consult and be defended by a legal practitioner of their choice.
• Article 22(2): The arrested person must be produced before the nearest magistrate within 24 hours of arrest (excluding travel time). Further detention without magistrate’s approval is unconstitutional.
• Article 22(3): The above protections do not apply to:
  • Enemy aliens.
  • Persons detained under preventive detention laws.
• Article 22(4): Preventive detention cannot exceed three months unless approved by an Advisory Board comprising judges of a High Court.
• Article 22(5): The detained individual must be informed of the grounds of detention and given a chance to make a representation against it.
• Article 22(6): Authorities may withhold facts if disclosure is deemed against public interest.
• Article 22(7): Parliament may prescribe:
  • Circumstances under which detention can extend beyond three months without Advisory Board opinion.
  • Maximum period of detention.
  • Advisory Board procedure.

Supreme Court Ruling: Mandatory Compliance with Article 22(1)

In a recent landmark judgment, the Supreme Court reaffirmed that non-disclosure of grounds of arrest violates Articles 22(1) and 21, rendering such arrests illegal.

A bench comprising Justices A.S. Oka and N.K. Singh ruled that the obligation to inform an arrested person of the grounds of arrest is not a mere formality but a constitutional mandate. Failure to do so deprives the individual of liberty without due process, violating the fundamental rights under Article 21 (Right to Life and Liberty) as well.

Key observations of the Court:

• Communication of Arrest Grounds: The arrested individual must be informed “as soon as may be” after arrest in a language and manner understandable to them. Merely mentioning grounds in the remand report or charge sheet does not satisfy Article 22(1).
• Written Communication Preferred: While not mandatory, providing the grounds of arrest in writing is encouraged to avoid controversy and ensure clarity (as suggested earlier in Pankaj Bansal v. Union of India).
• Duty of Magistrate: At the time of remand, the magistrate must verify if Article 22(1) compliance has occurred. If not, remand is unconstitutional, and the arrest stands vitiated.
• Burden of Proof: If the accused alleges non-compliance, the Investigating Officer bears the burden to prove that Article 22(1) was followed.
• Ground for Bail: Violation of Article 22(1) can itself be a ground for granting bail, even in cases where statutory restrictions exist.
• Communication to Relatives (CrPC Section 50A): Justice Singh emphasized that the grounds of arrest should also be conveyed to friends, relatives, or nominated persons of the arrestee. This facilitates immediate legal recourse to secure release, reinforcing the right to liberty under Article 21.

Conclusion:
The Supreme Court’s judgment marks a crucial reaffirmation of constitutional liberties. It ensures that procedural safeguards under Articles 21 and 22 are not diluted by executive convenience and establishes a higher standard of accountability in the process of arrest and detention in India.

In News:

The Democratic Republic of Congo (DRC) has once again become the epicenter of a severe humanitarian and geopolitical crisis. In early 2025, the M23 militia, a Tutsi-led rebel group allegedly backed by Rwanda, captured Goma, the capital of North Kivu province.

This strategic and mineral-rich city lies on the eastern border with Rwanda and has historically been a flashpoint in the region. The recent offensive has escalated the violence, displacing over 7,00,000 people, killing more than 2,900, and risking a wider regional conflict.

Historical Roots of the Conflict

The current instability can be traced back to colonial and post-independence ethnic tensions in the Great Lakes region. Under German and Belgian colonial rule, power structures in Rwanda favored the minority Tutsi population, generating long-standing resentment among the Hutus. Following Rwanda’s independence in 1962, a Hutu-majority government took power, culminating in the 1994 Rwandan Genocide, where nearly 800,000 Tutsis and moderate Hutus were killed.

Post-genocide, around 2 million Hutus, including militia members responsible for the killings, fled into eastern Congo (then Zaire), leading to the formation of over 120 armed groups, including the Democratic Forces for the Liberation of Rwanda (FDLR), a Hutu militia. Rwanda intervened in Congo in 1996 and 1998, triggering the First and Second Congo Wars, which resulted in millions of deaths and regional destabilization.

Emergence and Role of M23

The M23 (March 23 Movement) was formed in 2012 by former fighters of the Tutsi-led National Congress for the Defence of the People (CNDP), who rebelled after accusing the DRC government of violating a 2009 peace deal meant to integrate them into the national army. Led by SultaniMakenga, M23 initially captured Goma in 2012 but retreated after international pressure.

Resurfacing in 2022, M23 cited non-implementation of the agreement and vowed to protect Tutsi interests against groups like the FDLR. Since then, they have gained control of key mining regions, particularly Rubaya, rich in coltan, a critical mineral used in electronic devices. The UN estimates that M23 earns $800,000 per month from coltan production taxes, indicating that economic motives are as significant as ethnic ones.

The 2025 Escalation

On January 27, 2025, M23 rebels entered Goma and seized control of the airport by the following evening. By January 30, they had captured the city despite sporadic resistance from government forces and allied militias. The group then began advancing southward towards Bukavu, the capital of South Kivu province. The UN has confirmed reports of Rwandan troop incursions into South Kivu, while Burundian forces have joined Congolese troops in resisting the offensive.

Regional Dynamics and Rwanda’s Involvement

The Congolese government, along with the UN and Western powers, accuses Rwanda of backing M23 militarily and logistically. A 2022 UN expert report provided "solid evidence" of Rwandan troops fighting alongside M23, though Rwanda continues to deny these allegations. President Paul Kagame justifies his government's position as defensive, blaming the DRC for its alliance with the FDLR, which threatens Tutsis across the region.

Neighboring Burundi, led by President ÉvaristeNdayishimiye, has warned that Rwanda’s ambitions could spark a wider war, even threatening Burundi’s sovereignty. Uganda, meanwhile, plays a balancing role—supporting Congolese efforts against Islamic State-linked militants, while allegedly allowing M23 safe haven, as per UN reports.

Strategic and Economic Importance of Goma

Goma is not just a city; it is a strategic trade and transport hub at the heart of the DRC’s mineral wealth, particularly coltan, of which the DRC supplies nearly 40% of the world’s demand. The region is crucial for smartphone and electronics manufacturing due to coltan’s utility in capacitors.

Thus, the control of Goma and surrounding territories represents not only a military advantage but also a significant economic resource for M23 and its alleged sponsors.

Humanitarian Impact and Global Concerns

The humanitarian toll of the conflict is staggering. With over a million people displaced since M23’s resurgence, the DRC’s fragile state apparatus is further strained. Corpses reportedly lay unburied in Goma after the assault, reflecting a deep crisis of governance, security, and human rights.

Given the ethnic complexities, resource conflicts, and regional rivalries, there are growing fears of the conflict escalating into a full-fledged regional war, drawing in Rwanda, Burundi, and Uganda.

In News:

India's foreign policy has undergone a strategic shift towards West Asia, driven by imperatives of energy security, economic integration, and geopolitical balance.

The launch of theIndia-Middle East-Europe Economic Corridor (IMEC)at the G20 Summit 2023 marks a key initiative aimed at reshaping global trade while deepening India’s engagement with the Middle East and Europe.

Importance of the Middle East for India

• Energy Security:The Middle East supplies over 53% of India’s crude oil (as of January 2025). Long-term energy agreements, such as the LNG deal with Qatar (until 2048) and India-UAE green hydrogen MoUs, ensure stable energy flows. Strategic ties mitigate disruptions due to OPEC+ cuts and geopolitical tensions.
• Trade and Economic Ties: India’s trade with the Gulf Cooperation Council (GCC) reached USD 161.59 billion in FY 2023–24. The UAE is India’s third-largest trading partner, with exports worth USD 35.6 billion. A proposed India-GCC Free Trade Agreement and operationalization of IMEC can enhance regional integration.
• Diaspora and Remittances:Over 66% of India’s 1.34 crore NRIs live in Gulf nations. India was the world’s top remittance recipient in 2022, with USD 111 billion, a major share from the Middle East. Labor reforms in the region (e.g., Saudi Arabia’s Nitaqat) influence migrant welfare.
• Geopolitical and Strategic Autonomy: India balances relations across regional fault lines — Iran-Saudi and Israel-Arab states — while maintaining strategic autonomy. Defense cooperation includes naval exercises (e.g., Al-Mohed Al-Hindi with Saudi Arabia) and connectivity via Chabahar Port in Iran.
• Food and Maritime Security: The Gulf is a major destination for Indian agricultural exports (e.g., UAE imports worth USD 1.9 billion in FY 2022–23). Strategic waterways like the Red Sea and Arabian Sea are crucial for trade, though increasingly vulnerable to piracy and regional conflict.

IMEC: A Strategic Connectivity Corridor

• IMECenvisions linking India to Europe through the Middle East via multimodal transport and digital-energy corridors, bypassing the Suez Canal. It aims to counter China’s Belt and Road Initiative (BRI).
• Key stakeholders include India, UAE, Saudi Arabia, Jordan, Israel, and the EU. The Intergovernmental Framework Agreement (2024) lays the foundation for implementation, targeting USD 600 billion in infrastructure investment by 2027.
• Objectives include trade facilitation, supply chain diversification, digital connectivity, and green energy collaboration. However, the Israel-Gaza conflict and regional instability have delayed execution.

Challenges

• Energy volatility due to OPEC+ decisions and Red Sea disruptions.
• Geopolitical unrest in Yemen, Gaza, and Iran-Israel tensions.
• Maritime insecurity, with piracy and Houthi attacks raising shipping costs.
• Labor rights issues, including migrant exploitation.
• Strategic competition from China, with over USD 273 billion invested in the region since 2005.

Policy Recommendations

• Co-develop energy infrastructure (e.g., Saudi Aramco’s stake in Indian refineries).
• Diversify trade via an India-GCC FTA and sectoral cooperation (IT, defense, fintech).
• Enhance maritime and digital connectivity through IMEC and joint port development.
• Secure labor migration with skill pacts and expanded protection schemes.
• Strengthen counter-terrorism and defense cooperation, including intelligence sharing.

Conclusion

India’s West Asia strategy is multifaceted—balancing energy diplomacy, trade, diaspora ties, and strategic connectivity. IMEC offers a transformative opportunity to position India as a central link in global supply chains, but its success depends on stable regional geopolitics and coordinated implementation.

In News:

In a landmark decision during its February 2025 meeting, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) reduced the repo rate by 25 basis points, from 6.5% to 6.25%, marking the first rate cut in five years (since May 2020). This move follows the Union Government’s recent cut in personal income tax, aimed at boosting consumption.

What is the Monetary Policy Committee (MPC)?

The MPC is a six-member statutory body responsible for setting India’s monetary policy. Its primary objective is price stability while ensuring economic growth. It meets bi-monthly to assess economic indicators and modify key policy rates like the repo rate, which influences overall borrowing and lending costs in the economy.

Key Highlights from the MPC Decision:

Repo Rate Cut:

• Reduced to 6.25% from 6.5%.
• Objective: Stimulate credit growth, investment, and consumer demand.
• Expected Impact: Lower EMIs for borrowers, reduced interest rates on EBLR and MCLR-linked loans.

GDP Growth Outlook (FY26):

• RBI projects 6.7% GDP growth for FY26.
• This is slightly higher than the FY25 estimate of 6.4%, and in line with the Economic Survey’s projection of 6.3–6.8%.
• Growth recovery is attributed to calibrated fiscal consolidation and stable private consumption.

Inflation Projections (CPI-based):

• FY26 Inflation Estimate: 4.2%
  • Q1: 4.5%
  • Q2: 4.0%
  • Q3: 3.8%
  • Q4: 4.2%
• CPI inflation had already dropped to 5.22% in December 2024, aided by easing food prices.
• RBI emphasized continued transmission of past policy measures and food price moderation as drivers of disinflation.

Broader Monetary Policy Context

• RBI will maintain a “neutral” policy stance to remain flexible amid evolving macroeconomic conditions.
• RBI Governor Sanjay Malhotra stressed that the inflation-targeting framework has helped stabilize prices, especially post-pandemic.
• The policy space was created by the simultaneous drop in inflation and moderate growth, allowing support for the economy without derailing price stability.

Cybersecurity & Digital Measures

• Additional Factor Authentication (AFA) introduced for international digital payments.
• Launch of exclusive domains:
  • "bank.in" for Indian banks
  • "fin.in" for the wider financial sector

These aim to bolster digital transaction security amid rising cyber fraud.

Forex & External Sector Outlook

• RBI reiterated that it does not target exchange rate levels, intervening only to curb excessive volatility.
• Ongoing global challenges include:
  • Strengthening of the US dollar
  • Higher bond yields
  • Geopolitical tensions
  • Threat of trade wars
• These have led to capital outflows, currency depreciation, and increased financial market volatility.

Conclusion

The RBI’s rate cut signals a strategic shift towards supporting economic growth amid global uncertainties. With a moderate inflation outlook and improving macroeconomic indicators, the decision is expected to boost domestic demand and investment, while reinforcing RBI’s commitment to price and financial stability.

In News:

As artificial intelligence (AI) reshapes global economic, strategic, and technological landscapes, the question of whether India should build its own sovereign foundational AI model has gained prominence. Sovereign AI models—developed, trained, and deployed using domestic infrastructure, datasets, and expertise—are now seen as strategic assets, with countries like the US and China already establishing their own. India, however, remains dependent on foreign AI giants such as OpenAI, Google DeepMind, and Meta.

Why India Needs a Sovereign AI Model

1. Data Sovereignty and Security: India generates one of the world’s largest data pools, including sensitive data from healthcare, finance, and governance. Using foreign-built AI models risks privacy breaches and potential misuse. A homegrown model would ensure control over data and ethical AI deployment.

2. Reducing Foreign Dependence: Sovereign AI is crucial for applications in defense, cybersecurity, and governance, where reliance on foreign technology may undermine strategic autonomy. Sanctions or export controls could otherwise disrupt access to essential technologies like GPUs or software updates.

3. Cultural and Linguistic Alignment: Current global AI models are largely English-centric. A sovereign model trained on Indian languages and datasets would bridge the digital divide and make AI more inclusive. Projects like AI4Bharat’s IndicTrans2 and Sarvam AI’s Sarvam-1, a multilingual model built with Nvidia, exemplify this direction.

4. National Security and Innovation: Sovereign AI is essential in military intelligence, predictive security, and surveillance. It also fosters an innovation ecosystem, generating high-skilled jobs and encouraging academic-industry collaboration.

Challenges in Building Foundational AI Models

1. Infrastructure Gaps: India lacks cutting-edge chip manufacturing capabilities. With no agreements with firms like TSMC, India relies on imports of GPUs and processors, unlike countries developing supercomputers (e.g., Denmark’s Gefion, Japan’s AI Grid).

2. High Development Costs: Training a large AI model can cost millions. DeepSeek V3, for instance, cost $5.6 million for a single run, while India’s annual AI R&D budget remains modest compared to Big Tech’s $80 billion.

3. Fragmented Resources: Subsidized GPUs are spread thin across institutions, diluting their impact. Meta’s Llama 4, for example, used large dedicated clusters—unfeasible under current Indian frameworks.

4. Public R&D Inefficiencies: Bureaucratic red tape discourages risk-taking needed in AI research. Unlike flexible spending in firms like OpenAI, Indian R&D lacks autonomy and long-term funding.

Policy Recommendations and Way Forward

• Invest in IndiaAI Mission: Develop a national AI infrastructure with over 10,000 GPUs, secure cloud systems, and supercomputing clusters to train and deploy large-scale models.
• Build DPI for AI Builders: Create datasets, APIs, and platforms to support data annotation, fine-tuning, and delivery in Indian contexts.
• Adopt a Phased Approach: Focus on sovereign models in sensitive sectors (defense, healthcare) while using global open models for non-critical applications.
• Promote Public-Private Collaboration: Forge partnerships with companies like Nvidia or OpenAI for technology transfer and joint ventures.
• Encourage Innovation Under Constraints: India must emulate models like Alibaba or DeepSeek, which succeeded with limited resources and targeted innovations.

Conclusion

Building a sovereign foundational AI model is not merely a technological ambition but a strategic necessity. With coordinated efforts between government, industry, and academia, India can achieve AI self-reliance—ensuring data sovereignty, inclusive growth, and a strong global presence in the AI-driven future.

In News:

In the Union Budget 2025–26, the Finance Minister proposed a significant policy shift by increasing the investment and turnover limits for MSME classification by 2.5 and 2 times respectively. This move is expected to enhance the growth prospects and scalability of India’s micro, small, and medium enterprises (MSMEs).

Economic Significance:

The MSME sector forms the backbone of the Indian economy, contributing 30% to the GDP and nearly 45% to manufacturing output. With over 1 crore registered units employing 7.5 crore people, it is the largest source of non-agricultural employment in the country. It plays a pivotal role in inclusive development, offering livelihood opportunities to the rural, urban poor, and semi-skilled workforce.

The formalization drive has been significant, with over 4 crore MSMEs registered on the Udyam portal by March 2024. Key schemes like PM Vishwakarma Yojana (?13,000 crore) and Mudra Yojana (?5.41 lakh crore disbursed in FY24) have supported artisans and first-time entrepreneurs, particularly women and marginalized communities.

Boost to Trade and Innovation:

MSMEs account for 45.73% of India’s total exports in sectors like textiles, leather, and engineering goods. Their integration into Global Value Chains (GVCs) is being facilitated by reforms in trade logistics, the GeM portal, and PLI schemes. Digital transformation is advancing rapidly, with 72% MSME transactions now digital, supported by platforms like ONDC and the RBI’s Public Tech Platform.

Women and Rural Empowerment:

Women entrepreneurs constitute 20.5% of Udyam registrations, and 68% of Mudra loans benefit them. MSMEs are also catalyzing rural industrialization by promoting agro-processing and curbing rural-urban migration through schemes like the SRI Fund and Animal Husbandry Credit Guarantee Scheme.

Key Challenges:

Despite their potential, MSMEs face critical bottlenecks:

• Credit access remains limited; only 20% of units access formal finance. Payment delays amounting to ?10.7 lakh crore (2022) hinder working capital.
• Regulatory burdens, inadequate infrastructure, and poor digital skills further constrain productivity.
• Low awareness of schemes and limited integration into global ESG standards affect competitiveness.
• The sector remains largely informal, weakening labor rights and policy outreach.

Recent Reforms & Recommendations:

To unlock MSMEs’ potential, a multi-pronged reform strategy is underway:

• Credit Measures: Promotion of cash-flow based lending, expansion of CGTMSE, Vyapar Credit Cards, and enhanced TReDS-GeM integration.
• Ease of Doing Business: Single-window clearances, self-certification, and stronger MSME facilitation councils.
• Digital & Skill Upgradation: Launch of Digital MSME 2.0, apprenticeship hubs, and innovation incubators.
• Market Access: Expansion of cluster-based models, branding support, and ONDC-GeM integration.
• Green MSMEs: ESG-linked credit, circular economy incentives, and green certifications.
• Formalization Push: Linking benefits to Udyam registration, backed by SIDBI-led equity support.

Conclusion:
MSMEs are central to India’s vision of a $5 trillion economy and Viksit Bharat by 2047. With increased investment thresholds, focused policy interventions, and digital empowerment, India can build a resilient, inclusive, and globally competitive MSME ecosystem.

In News:

The Union Budget 2025–26 marks a pivotal step towards strengthening mental health infrastructure in India. An allocation of ?99,858.56 crore to the Ministry of Health and Family Welfare (MoHFW) highlights the government’s recognition of health, including mental health, as a key pillar of national development.

Key Budgetary Allocations for Mental Health (2025–26)

• National Tele Mental Health Programme (NTMHP): Allocated ?79.6 crore to expand access to mental health services across the country.
• National Institute of Mental Health and Neurosciences (NIMHANS): Receives support to enhance research and treatment capacity.
• District Mental Health Programme: Implemented in 767 districts, providing training and outpatient services.
• Ayushman Arogya Mandirs: Over 1.73 lakh SHCs and PHCs are being upgraded to offer mental health services under comprehensive primary care.

Mental Health in India: Status and Burden

• As per WHO, mental health is the ability to realize one’s potential, cope with stress, work productively, and contribute to the community.
• India's Burden:
  • 15% of adult Indians experience mental disorders (National Survey).
  • Mental morbidity is highest in urban metros (13.5%), followed by rural areas (6.9%) and non-metro urban zones (4.3%).
• Global Burden (2019): Around 970 million people globally suffered from mental disorders, notably anxiety and depression.
• Treatment Gap: Estimated at 70% to 92%, particularly acute among blue-collar workers.
• Economic Impact: Mental health disorders result in significant productivity losses, often surpassing the direct cost of care.

Challenges in Mental Health Care in India

1. Budgetary and Policy Limitations

• The National Mental Health Programme (NMHP) faces funding ambiguities, often subsumed under broader health allocations.
• Limited enforcement of Mental Healthcare Act, 2017, despite mental health being a statutory right. Over 11 crore Indians suffer from mental disorders, yet 80% do not seek help.

2. Exclusion in Labour Laws

• The Occupational Safety, Health and Working Conditions Code (OSHWC), 2020, primarily covers physical safety. Mental health is not explicitly recognized.
• Phrases like “as far as reasonably practicable” limit employers’ obligations.
• The Code on Social Security (CSC), 2020, does not list mental strain as an occupational disease, making compensation for stress-induced conditions difficult.

3. Neglect of Blue-Collar Mental Health

• Mental health risks—long hours, poor conditions, job insecurity—affect blue-collar workers disproportionately.
• Workplace mental health programs (e.g., Infosys HALE, TCS EAP) are mainly for white-collar employees.
• Tele-MANAS, a government mental health helpline, requires voluntary calls. Low awareness and stigma among blue-collar workers dilute its effectiveness.

Policy and Structural Reforms Needed

• Legislative Frameworks:
  • Amend OSHWC and CSC to explicitly include mental well-being and stress-related injuries as compensable conditions.
  • Update the Third Schedule of the CSC to include mental health conditions, reducing dependence on case law.
• Awareness and Education:
  • Launch mandatory employer-led awareness campaigns on programs like Tele-MANAS and Manodarpan.
  • Community-based programs for early detection, support, and referral of mental health disorders.
• Inclusive and Tripartite Approach:
  • Integrate employers, blue-collar workers, and mental health professionals into a unified framework under the new Labour Codes.
  • Incorporate mental health indicators into occupational safety audits.
• Institutional Strengthening:
  • Increase capacity-building efforts by training frontline health workers, general physicians, and non-specialist cadres in mental healthcare.
  • Establish Centres of Excellence for mental health training and research.

Global and National Initiatives

• WHO Comprehensive Mental Health Action Plan (2013–2030): Focuses on integrating mental health into primary care and strengthening community-level interventions.
• Manodarpan Initiative: Aims at student mental health support under Atmanirbhar Bharat.
• Kiran Helpline: Government-run suicide prevention helpline for crisis support.
• Tele-MANAS Cells: 53 centers operational in 36 States/UTs, enhancing digital mental health care access.

Conclusion and Way Forward

The 2025–26 Budget reflects a progressive approach to mental health, particularly through investments in tele-counselling, primary care, and institutional support. However, significant gaps remain in policy, especially in addressing the mental health needs of blue-collar workers.

To transform “Satyamev Jayate” to “Shramev Jayate,” India must:

• Institutionalize rights-based mental health protection in labour legislation.
• Close the treatment gap through universal access and community-level awareness.
• Recognize mental health as integral to human capital and national productivity.

Only a comprehensive, inclusive, and rights-oriented approach will ensure mental health equity in India’s development journey.

In News:

A recent scientific study has revealed that the eastern Himalayas in Arunachal Pradesh have lost 110 glaciers between 1988 and 2020, highlighting a critical impact of climate change in the region.

Key Findings of the Study

• Glacier Loss: The number of glaciers declined from 756 to 646 over 32 years.
• Glacial Area Reduction: Total glacial cover reduced from 585.23 sq. km to 309.85 sq. km, indicating a loss of over 47%.
• Retreat Rate: Glaciers retreated at a rate of 16.94 sq. km per year.
• Elevation: Most glaciers were located at 4,500–4,800 metres above mean sea level on north-facing slopes of 15°–35°.
• Remote Sensing & GIS: The study used advanced tools along with the Randolph Glacier Inventory to track and analyze glacier boundaries.
• Glacial Lakes: Retreat has led to the formation of numerous glacial lakes, increasing the risk of Glacial Lake Outburst Floods (GLOFs), as seen during the 2023 Sikkim disaster which killed at least 55 people and damaged a 1,200 MW Teesta hydropower project.

Causes of Glacial Retreat

• Climate Change:
  • The eastern Himalayas are warming faster than the global average.
  • Temperature rise: Between 0.1°C and 0.8°C per decade.
  • Over the last century, the region has experienced an increase of ~1.6°C.
  • By 2100, projections indicate a 5–6°C temperature rise and 20–30% increase in precipitation.
• Black Carbon Deposition: Emissions from human activities (e.g., vehicles, biomass burning) deposit soot on ice, reducing reflectivity (albedo) and increasing heat absorption.
• Erratic Snowfall Patterns: Changes in precipitation reduce snow accumulation, weakening glacier sustenance.
• Geological Factors: Local topography, altitude, and rock composition also influence glacier stability and response to warming.

Implications of Glacial Retreat

• Water Security
  • The Himalayas are known as the ‘Third Pole’, storing the largest volume of ice outside the polar regions.
  • They are vital for sustaining over 1.3 billion people in South Asia by feeding major rivers (Indus, Ganga, Brahmaputra).
  • Glacial retreat threatens long-term freshwater availability, agriculture, and urban water supplies.
• Hydropower and Infrastructure
  • Changing river flow patterns due to glacial melt affect hydropower generation and irrigation systems.
  • Risk of infrastructure damage from GLOFs is rising.
• Biodiversity and Agriculture: Altered ecosystems and climatic stress impact Himalayan biodiversity and disrupt traditional farming practices.

Himalayan Glaciers and River Systems

• Indus Basin: Originates from Lake Mansarovar; flows through Ladakh and Pakistan.
• Ganga Basin: Emerges from Gangotri Glacier in Uttarakhand; forms the Ganga after merging with Alaknanda.
• Brahmaputra Basin: Rises near Kailash range in Tibet; flows through Arunachal Pradesh, Assam, and Bangladesh.

Major Glaciers in India

Glacier                  Region              Importance

Siachen                Ladakh               Longest glacier in India (76 km)

Gangotri             Uttarakhand        Source of the Ganga

Yamunotri          Uttarakhand        Origin of the Yamuna

Zemu                  Sikkim                 Largest glacier in Eastern Himalayas

Rathong             Sikkim                 Feeds Teesta River

Milam                Uttarakhand         Source of Goriganga River

Pindari               Uttarakhand         Glacial trekking route

Glacial Lake Outburst Floods (GLOFs)

• GLOFs are sudden discharges of water from glacial lakes, often caused by moraine dam failures.
• These can trigger catastrophic downstream floods, threatening lives, infrastructure, and ecosystems.

Mitigation and Adaptation Strategies

• Climate Action: Drastic cuts in greenhouse gas emissions at national and global levels.
• Sustainable Water Management: Enhance glacier-fed river basin planning.
• Disaster Risk Reduction: GLOF early-warning systems, resilient infrastructure, and relocation policies.
• Community Participation: Local awareness, traditional knowledge integration, and eco-restoration efforts.
• International Cooperation: Transboundary initiatives under frameworks like the HKH (Hindu Kush Himalaya) Monitoring Network and UNFCCC.

In News:

In January 2025, the Reserve Bank of India (RBI) announced its largest monetary easing since the COVID-19 pandemic, unveiling a multi-pronged plan to inject over ?1.5 lakh crore into the money markets.

This move aims to address liquidity shortfalls caused by RBI’s forex interventions and signal possible easing in the upcoming monetary policy review.

Context: Why Liquidity Infusion Was Needed

• Forex Intervention: RBI sold over $50 billion from its foreign exchange reserves to stabilise the rupee, in response to large-scale equity sell-offs by Foreign Institutional Investors (FIIs).
• Impact: These interventions reduced rupee liquidity, tightened short-term interest rates, and raised borrowing costs.
• Liquidity Deficit: Market estimates pegged the shortfall at ?3 lakh crore.

Key Liquidity Measures Announced by RBI

• Government Bond Buy-Back: ?60,000 Crore
  • Conducted in three tranches on January 30, February 13, and February 20, 2025.
  • Objective: To inject liquidity into the banking system by repurchasing government securities before maturity.
• 56-Day Variable Rate Repo Auction: ?50,000 Crore
  • Scheduled for February 7, 2025.
  • Enables banks to borrow short-term funds by offering government securities as collateral at a market-determined interest rate.
• USD/INR Buy-Sell Swap Auction: $5 Billion
  • A six-month forex swap in which RBI borrows dollars in exchange for rupees and agrees to buy them back later.
  • Helps stabilize the rupee without draining rupee liquidity.

Significance of the Measures

• Monetary Transmission: With adequate liquidity, any potential repo rate cut will be more effectively transmitted through lower lending rates, boosting investment and consumption.
• Financial Stability: By calming money markets and moderating borrowing costs, RBI strengthens confidence amid global uncertainties.
• Rupee Management without Liquidity Squeeze: The forex swap allows rupee liquidity to remain intact while addressing exchange rate volatility.

Governor’s Focus Areas:

In a meeting with private sector bank heads ahead of the February monetary policy review, RBI Governor Sanjay Malhotra highlighted the following priorities:

• Financial Stability & Inclusion
• Enhanced Digital Literacy and Credit Access
• Improved Customer Service & Grievance Redressal
• Cybersecurity & IT Risk Management
• Monitoring of Third-party Service Providers
• Countering Rising Digital Fraud

In News:

Union Minister for Finance and Corporate Affairs Smt Nirmala Sitharaman presented Union Budget 2025-26 in the Parliament.

Key Highlights:

Fiscal Policy and Macroeconomic Indicators

• Total Expenditure: ?50.65 lakh crore
• Total Receipts (excl. borrowings): ?34.96 lakh crore
• Fiscal Deficit: 4.4% of GDP
• Gross Market Borrowing: ?14.82 lakh crore
• Capital Expenditure: ?11.21 lakh crore (3.1% of GDP)

Agriculture and Allied Sectors

• Prime Minister Dhan-Dhaanya Krishi Yojana: 100 low-productivity districts targeted; 1.7 crore farmers to benefit.
• Mission for Aatmanirbharta in Pulses: 6-year mission on Tur, Urad, and Masoor; NAFED/NCCF to procure for 4 years.
• Vegetables & Fruits Program: Comprehensive initiative for production, pricing, processing, and logistics.
• Makhana Board: New board in Bihar for production, value addition, and export.
• National Mission on High Yielding Seeds: To commercialize over 100 high-yielding seed varieties.
• Cotton Mission: 5-year initiative to boost productivity and Extra Long Staple (ELS) varieties.
• Fisheries: New EEZ and High Seas Framework focusing on Islands.
• Credit through KCC: Loan limit increased from ?3 lakh to ?5 lakh.
• Urea Plant in Assam: New plant at Namrup (12.7 lakh MT annual capacity).

MSMEs and Startups

• MSME Classification: Investment and turnover limits doubled (2.5x & 2x).
• Credit Cards for Micro Units: ?5 lakh limit; 10 lakh cards in year one.
• ?10,000 Cr Fund of Funds for Startups
• First-Time Entrepreneurs Scheme: Loans up to ?2 crore for 5 lakh women, SC/ST entrepreneurs.
• Footwear & Leather Sector Scheme: Aims ?4 lakh crore turnover and 22 lakh jobs.
• Toy Manufacturing Support: High-quality, eco-friendly toy ecosystem.
• Food Tech Institute: To be established in Bihar.
• National Manufacturing Mission: Across small, medium, and large units.

Infrastructure and Investment

• PPP Pipeline: 3-year project pipeline to be announced.
• ?1.5 lakh crore 50-year interest-free loans to states for CapEx.
• Urban Challenge Fund: ?1 lakh crore outlay; ?10,000 crore for FY26.
• Asset Monetization Plan 2025–30: Capital recycling worth ?10 lakh crore.
• Jal Jeevan Mission: Extended to 2028 with enhanced outlay.
• UDAN 2.0: Targeting 120 new destinations, 4 crore passengers in 10 years.
• Maritime Development Fund: ?25,000 crore; up to 49% govt contribution.
• Nuclear Energy Mission: ?20,000 crore outlay for Small Modular Reactors (SMRs).
• Greenfield Airports: Announced for Bihar.

Welfare and Social Security

• Saksham Anganwadi & Poshan 2.0: Enhanced nutritional cost norms.
• Medical Education: 10,000 new MBBS seats; 75,000 in 5 years.
• Day Care Cancer Centres: In all district hospitals; 200 in FY26.
• PM SVANidhi Revamp: ?30,000 UPI-linked credit cards.
• Online Platform Workers: E-Shram ID, PMJAY coverage.
• Urban Livelihood Scheme: For sustainable urban worker incomes.

Education and Skilling

• 50,000 Atal Tinkering Labs: Govt schools in 5 years.
• Bharatiya Bhasha Pustak Scheme: Digital books in Indian languages.
• National Skilling Centres of Excellence: With global partners.
• AI in Education: Centre of Excellence with ?500 crore outlay.
• IIT Expansion: Additional capacity for 6,500 students.

Innovation and R&D

• ?20,000 crore Innovation Fund (private-led R&D).
• Deep Tech Fund of Funds: For next-gen startups.
• PM Research Fellowships: 10,000 fellowships with higher support.
• 2nd Gene Bank: 10 lakh germplasm lines for food security.
• National Geospatial Mission
• Gyan Bharatam Mission: Conservation of 1 crore+ manuscripts.

Exports and Trade

• Export Promotion Mission: With ministerial and sectoral targets.
• BharatTradeNet (BTN): Unified platform for trade finance and docs.
• GCC Framework: Promote Global Capability Centres in Tier-2 cities.

Financial Sector Reforms

• FDI in Insurance: Raised from 74% to 100% for domestic investment.
• NaBFID Credit Enhancement Facility: For infra bonds.
• Grameen Credit Score: For SHGs and rural borrowers.
• Investment Friendliness Index: To rank states in 2025.
• Jan Vishwas Bill 2.0: Decriminalization of 100+ provisions.
• Tonnage Tax Extended: To inland vessels.
• Startups: Tax benefit eligibility extended to incorporation by 1 April 2030.

Taxation Reforms

Direct Taxes

• No Personal Tax: Income up to ?12 lakh (?12.75 lakh for salaried) under new regime.
• Revised Tax Slabs (New Regime):
  • 0–4L: Nil | 4–8L: 5% | 8–12L: 10%
  • 12–16L: 15% | 16–20L: 20% | 20–24L: 25% | 24L+: 30%
• Standard Deduction: ?75,000
• Compliance Relief: Trusts registration extended to 10 years.
• TDS/TCS Rationalization: Fewer thresholds, higher limits for senior citizens and rent.
• Tax Certainty: Safe harbour rules, startup extensions, presumptive taxation for electronics.

Indirect Taxes

• Tariff Rationalization: Only 8 remaining tariff rates.
• Customs Relief: ?2,600 crore forgone, key lifeline drugs exempted.
• Support to Domestic Manufacturing:
  • EV/mobile battery manufacturing: 63 capital goods exempted
  • Ships: BCD exemption extended for 10 years
  • Marine, leather, textiles: Several BCD reductions/exemptions
• Voluntary Compliance Scheme: Without penalty for post-clearance corrections.

In News:

Geo-economic fragmentation refers to a policy-driven reversal of global economic integration, increasingly shaped by geopolitical alignments. It signifies a shift from globalization to strategically-driven economic blocs, where nations prioritize political alliances over market efficiency.

Key Characteristics

• Emergence of friend-shoring, re-shoring, and economic nationalism.
• Fragmentation of trade, capital flows, FDI, and migration.
• Retreat from multilateralism, with institutions like the WTO and IMF under stress.
• Strategic use of environmental, labor, and social standards by developed countries to impose uniform regulations, causing tensions.

Globalization to Fragmentation: Statistical Evidence

• Trade-to-GDP Ratio: Increased from 39% (1980) to 60% (2012); now threatened by rising protectionism.
• FDI Inflows: Rose from $54 billion (1980) to $1.5 trillion (2019); now increasingly concentrated among like-minded countries.
• Global Economy: Expanded from $11 trillion (1980) to over $100 trillion (2022).
• Trade Restrictions (WTO Report):
  • 2023–24: 169 new measures covering $887.7 billion in trade.
  • 2022–23: Covered $337.1 billion — shows a dramatic rise in protectionism.
• Over 24,000 new trade and investment restrictions imposed globally between 2020–24.

IMF on Costs of GEF

• Trade fragmentation could cause 0.2% to 7% GDP losses, especially for developing countries.
• Current fragmentation is more costly than Cold War era, as trade now constitutes 45% of global GDP (vs. 16% then).
• Less trade = less knowledge diffusion, innovation, and productivity gains.

Strategic Impacts: Global Supply Chains

China’s Dominance

• 80% of global battery manufacturing.
• 80% of solar panel components.
• 60% of wind turbine capacity.
• 70% of global rare earth mineral processing.
• Dominates EV supply chains, critical mineral refining, and clean energy manufacturing.

FDI Realignment

• FDI is increasingly relocating from China to India, Vietnam, Mexico, etc.
• Friend-shoring reduces capital access for emerging markets.
• Emerging economies face reduced FDI, slower growth, and technological decoupling.

India’s Strategic Response: Deregulation and Internal Growth

Policy Recommendations (Economic Survey 2024–25)

• Amplify deregulation to lower compliance costs and boost entrepreneurship.
• Empower SMEs to withstand global shocks and strengthen domestic manufacturing.
• Encourage inter-state learning for best practices in economic governance.
• Redouble efforts to boost exports and foreign investment amidst global volatility.

Rationale

• With the decline of global cooperation, internal engines of growth become crucial.
• Deregulation can unleash innovation, enhance productivity, and ensure resilient growth.
• India's response must be strategic, systematic, and state-inclusive to capitalize on this global transition.

In News:

• Released on 31st January 2025, a day before the Union Budget.
• Prepared by the Department of Economic Affairs, Ministry of Finance.
• Provides a comprehensive review of India’s macroeconomic trends, sectoral developments, and key policy challenges.
• Real GDP growth estimated at 6.4% in FY25 (close to decadal average); projected between 6.3–6.8% in FY26.
• Reflects India's resilience amidst global slowdown, supply chain disruptions, and geopolitical uncertainties.

Sector-wise Performance

Agriculture:

• Expected growth: 3.8% in FY25.
• Record Kharif foodgrain production: 1647.05 LMT (+5.7% YoY).
• Growth driven by horticulture, livestock, and fisheries.
• Supported by above-normal monsoons and robust reservoir levels.

Industry:

• Estimated growth: 6.2% in FY25.
• Construction, utilities, and mining contribute significantly.
• Challenges: Sluggish export demand, climate disruptions, and festival timing variations.
• Manufacturing PMI remains in the expansionary zone.

Services:

• Robust growth: 7.2% in FY25.
• Services exports up by 12.8% (April–Nov FY25) vs 5.7% in FY24.
• Growth led by finance, real estate, public administration, and professional services.

Inflation and Price Stability

• Retail inflation eased to 4.9% (Apr–Dec 2024) from 5.4% (FY24).
• Food inflation remains high at 8.4%, driven by pulses and vegetables.
• CPI expected to align with RBI's 4% target by FY26.

Investment and Infrastructure

• Capital Expenditure grew 8.2% YoY (Jul–Nov 2024); sustained increase since FY21.
• Infrastructure momentum:
  • 2031 km railways commissioned (Apr–Nov 2024).
  • 17 Vande Bharat trains introduced.
  • Port efficiency improved; container turnaround time reduced from 48.1 to 30.4 hours.
• Renewable energy capacity rose by 15.8% YoY (Dec 2024).

External Sector and Trade

• Overall exports grew by 6% (Apr–Dec 2024); merchandise exports up 1.6%.
• Services exports surged; India now 7th largest globally.
• FDI inflows: $55.6 billion (Apr–Nov FY25), +17.9% YoY.
• Forex reserves at $640.3 billion (Dec 2024), covering 10.9 months of imports and 90% of external debt.
• CAD contained at 1.2% of GDP in Q2 FY25.
• Strong remittance inflows support BOP stability.

Fiscal Health

• Gross Tax Revenue rose 10.7% YoY (Apr–Nov 2024).
• Stable deficit indicators allowed for developmental expenditure.
• State revenue expenditure grew 12%, with subsidies increasing by 25.7%.

Banking, Credit, and Financial Markets

• Gross NPAs dropped to 2.6% (lowest in 12 years).
• CRAR of scheduled banks at 16.7% (Sept 2024), well above regulatory norms.
• Stock market cap to GDP ratio: 136%, higher than China (65%) and Brazil (37%).
• Credit-GDP gap reduced to -0.3% in Q1 FY25 (from -10.3% in Q1 FY23).

Employment and Labour Market

• Unemployment rate declined to 3.2% (2023-24) from 6.0% (2017-18).
• Labour Force Participation Rate (LFPR) and Worker-Population Ratio (WPR) improved.
• Emphasis on AI skill development to future-proof labour markets.

Health, Education & Social Sector

• Government health expenditure rose from 29% to 48% of total health spending (FY15–FY22).
• Out-of-pocket expenditure dropped from 62.6% to 39.4% in the same period.
• Education reforms aligned with NEP 2020 via programs like Samagra Shiksha, DIKSHA, PM SHRI, etc.
• Social services spending grew at 15% CAGR (FY21–FY25).
• Decline in Gini coefficient indicates improving consumption equality.

Policy Recommendations and Reform Agenda

• Deregulation as central theme to boost productivity and EoDB.
• Advocates Ease of Doing Business 2.0, led by states, targeting:
  • Simplification of compliance norms.
  • Risk-based regulation.
  • Reduction in tariffs and licensing hurdles.
• ?50,000 crore Self-Reliant India Fund launched for MSME equity support.
• Need for long-term infrastructure investment to achieve Viksit Bharat@2047.

Global Backdrop

• Global GDP grew by 3.3% in 2023, with an average 3.2% growth projected over next five years (IMF).
• Weak global manufacturing; services sector remains stronger.
• Risks: Geopolitical tensions, trade policy fragmentation, energy transition dependence on China.

Way Forward

• Balanced outlook for FY26 with upside from:
  • Strong rural demand.
  • Agricultural recovery.
  • Easing food inflation.
• Challenges include:
  • Geopolitical tensions.
  • Global trade and commodity price volatility.
  • Delay in private investment materialisation.

Context:

Sudan’s Darfur region is once again in global focus following a deadly drone attack on the last functional hospital in El-Fasher, killing at least 67 people and injuring dozens. The International Criminal Court (ICC) has called for urgent UN Security Council intervention as the humanitarian situation deteriorates.

Geographical and Historical Background

• Location: Western Sudan, bordering Chad, Libya, Central African Republic, and South Sudan.
• Area: Approximately 493,000 sq. km, nearly the size of France.
• Topography: Predominantly arid and semi-arid terrain, with desert in the north and savanna in the south. Key physical features include:
  • Jebel Marra Mountains: Volcanic highlands and key water source.
  • Wadi Howar: Seasonal river vital for agriculture.
  • Baggara Belt: Grazing zone, often contested.
• Historical Significance: Once an independent Islamic sultanate ruled by the Fur tribe, Darfur was annexed by Anglo-Egyptian Sudan in 1916. The name "Darfur" means "land of the Fur" in Arabic.

Ethnic Composition and Demographics

• Home to over 80 ethnic groups, including the Fur, Zaghawa, Beja, Nubians, and Arabs.
• Long-standing ethnic tensions exist between Arab nomadic groups and non-Arab farming communities, which have been a root cause of conflict.

Conflict Timeline and Key Actors

• Conflict Origins: Armed conflict began in 2003, led by rebel groups such as the Sudan Liberation Movement (SLM) and Justice and Equality Movement (JEM), demanding political autonomy and better representation.
• Government Response: The Sudanese government armed Janjaweed militias—now rebranded as the Rapid Support Forces (RSF)—who were accused of widespread atrocities, including genocide, mass killings, and rape.
• Recent Escalation:
  • In 2023, violence surged amid civil war between Sudan's national army and RSF.
  • RSF has seized much of Darfur and has besieged El-Fasher, capital of North Darfur, since May 2023.
  • A January 2025 drone attack destroyed the Saudi Hospital in El-Fasher, killing 67 people. The hospital was one of the last with surgical capacity in the region.

Humanitarian Impact

• Health Crisis:
  • 80% of healthcare facilities in Sudan are non-functional.
  • Attacks on medical infrastructure have been rampant; El-Fasher’s Saudi Hospital was hit multiple times by suspected RSF drones.
• Displacement and Starvation:
  • Over 12 million people displaced.
  • Tens of thousands killed.
  • Famine has already gripped camps like Zamzam, Abu Shouk, and Al-Salam, and is expected to spread to additional regions, including El-Fasher, by May 2025 (UN Assessment).

Global and Regional Implications

• The Darfur conflict has destabilized the region, affecting neighboring countries like Chad and the Central African Republic.
• ICC has issued warrants for several individuals including former President Omar al-Bashir, citing war crimes and crimes against humanity.
• The conflict highlights the intersection of climate stress, ethnic rivalries, political marginalization, and international accountability failures.

In News:

The Annual Status of Education Report (ASER) 2024, released by the NGO Pratham, provides an insightful assessment of schooling and foundational learning levels across rural India.

Conducted in 17,997 villages across 605 districts, the survey reached over 6.49 lakh children aged 3–16 and tested more than 5 lakh for reading and arithmetic.

About ASER:

• Type: Household-based, citizen-led survey
• Initiated: 2005 (Annual till 2014; biennial since 2016)
• Scope:
  • Tracks school enrollment (ages 3–16)
  • Assesses basic reading and arithmetic skills (ages 5–16)
  • Includes children in and out of school, across government, private, and informal institutions
  • 2024: Introduced digital literacy assessment for ages 14–16

Key Findings of ASER 2024:

1. Enrollment Trends

• Pre-primary (Ages 3–5):
  • Overall enrollment improved significantly.
  • 3-year-old enrollment rose from 68.1% in 2018 to 77.4% in 2024.
  • Anganwadis remain primary providers for 3–4-year-olds, while private preschools dominate among 5-year-olds.
• Elementary (Ages 6–14):
  • Overall enrollment slightly declined from 98.4% (2022) to 98.1% (2024).
  • Government school enrollment fell from 72.9% (2022) to 66.8% (2024).
  • Private school enrollment, steadily rising since 2006, is regaining ground post-pandemic.
• Adolescents (Ages 15–16):
  • Dropout rates fell from 13.1% in 2018 to 7.9% in 2024.
  • However, female dropout (8.1%) remains higher than male.

2. Learning Outcomes

• Reading Skills:
  • Std III: 23.4% in government schools could read Std II-level text (up from 16.3% in 2022).
  • Std V: 44.8% could read Class II text, nearly matching 2018 levels (44.2%).
  • Private schools yet to recover fully to pre-pandemic levels (59.3% in 2024 vs. 65.1% in 2018).
• Arithmetic Skills:
  • Std III: 33.7% could perform basic subtraction (up from 25.9% in 2022, exceeding 28.2% in 2018).
  • Std VIII: 45.8% could solve basic problems, showing consistent improvement.

Trend: Arithmetic recovery has outpaced reading, with government schools showing faster gains than private ones.

3. Digital Literacy (Ages 14–16)

• Access: Nearly 90% have access to smartphones.
• Ownership:
  • 36.2% of boys own smartphones vs. 26.9% of girls.
• Usage:
  • 82.2% use smartphones; only 57% for education, but 76% for social media.
• Safety Awareness:
  • 62% know how to block/report users, and 55.2% can make profiles private.

4. School Infrastructure & Observations

• Attendance:
  • Student attendance improved from 72.4% (2018) to 75.9% (2024).
  • Teacher attendance rose from 85.1% to 87.5% in the same period.
• Facilities:
  • Usable girls' toilets increased from 66.4% to 72%.
  • Drinking water availability rose from 74.8% to 77.7%.
  • Playground access remains stable (~66%).
• Learning Resources:
  • Use of non-textbook reading materials (e.g., stories, folk tales) rose from 36.9% to 51.3%.
• Foundational Literacy and Numeracy (FLN):
  • 80%+ of schools implemented FLN activities.
  • 75% had at least one FLN-trained teacher.

Significance of Elementary Education:

• Foundational for Learning: Builds core skills vital for academic progression.
• Social Development: Encourages interaction, empathy, teamwork, and communication.
• Emotional and Cognitive Growth: Stimulates curiosity, motivation, and self-confidence.
• Economic Multiplier: Strong early education contributes to long-term national productivity and innovation.