In News:

The detection of gravitational waves has opened a new observational window into the universe, transforming our understanding of extreme astrophysical phenomena and fundamental laws of nature. A decade after the first historic detection in 2015, scientists have reported another landmark achievement: the observation of GW250114, the clearest gravitational-wave signal ever recorded, originating from a merger of two black holes about 1.3 billion light-years away. This event not only represents a technological milestone but also provides the strongest observational evidence so far for key predictions of black hole physics, including Stephen Hawking’s black hole area theorem.

Background: From Prediction to Precision Science

Gravitational waves were predicted by Albert Einstein’s General Theory of Relativity (1915), which described gravity as the curvature of spacetime caused by mass and energy. When massive objects such as black holes or neutron stars accelerate violently—especially during mergers—they generate ripples in spacetime that propagate outward at the speed of light. These waves remained undetected for nearly a century due to their extremely weak effects on matter.

The breakthrough came on September 14, 2015, when the Laser Interferometer Gravitational-wave Observatory (LIGO) detected the first gravitational waves from a binary black hole merger. This achievement earned Rainer Weiss, Kip Thorne, and Barry Barish the 2017 Nobel Prize in Physics and laid the foundation for gravitational-wave astronomy as a precision science.

Detection of GW250114: A Global Effort

GW250114 was detected on January 14, 2025, by a global network of observatories comprising LIGO (United States), Virgo (Italy), and KAGRA (Japan). Each detector uses laser interferometry, where laser beams travel along perpendicular vacuum arms several kilometres long. A passing gravitational wave minutely stretches one arm while compressing the other, creating a measurable interference pattern.

Advances in detector sensitivity—such as reduced laser noise, cleaner mirror surfaces, and improved calibration techniques—made GW250114 the most precise and “clean” signal to date. The signal was identified using both model-agnostic methods, which search for coincident excess energy across detectors, and model-dependent methods, which match observations with theoretical templates of black hole mergers. The agreement between these approaches enhanced confidence in the results.

Astrophysical Characteristics of the Merger

The event involved two nearly identical black holes, each with a mass slightly above 30 times that of the Sun, orbiting each other in an almost circular path with little or no spin. After the merger, they formed a single rotating black hole. The post-merger phase exhibited characteristic “ringdown” vibrations, akin to a struck bell, emitting gravitational waves at specific frequencies that gradually faded.

These ringdown modes provided strong empirical confirmation of the Kerr solution, proposed by mathematician Roy Kerr in 1963, which describes the spacetime geometry around rotating black holes. Such direct verification was possible only because of the exceptional clarity of the GW250114 signal.

Testing Hawking’s Black Hole Area Theorem

One of the most profound outcomes of the GW250114 analysis was the strongest observational support yet for Hawking’s black hole area theorem, proposed in 1971. The theorem states that the total surface area of black hole event horizons in an isolated system can never decrease, drawing a close parallel with the Second Law of Thermodynamics, where entropy never decreases.

Researchers independently analysed the gravitational-wave signal from two phases:

1. Pre-merger (inspiral) – when the black holes were still separate, allowing estimation of their individual event horizon areas.
2. Post-merger (ringdown) – when the remnant black hole settled into a stable rotating state, enabling calculation of its final horizon area.

The results showed that the final event horizon area was greater than the combined initial areas, in precise agreement with Hawking’s prediction. This finding strengthens the deep conceptual link between gravity, thermodynamics, and quantum theory.

Significance and Future Prospects

GW250114 marks a major milestone in the evolution of gravitational-wave science. Its implications extend beyond astrophysics to fundamental physics, providing rare empirical tests of theories developed decades ago. The growing catalogue of black hole mergers is enabling scientists to refine models of black hole formation, spin evolution, and merger dynamics, while also probing the limits of general relativity under extreme conditions.

Moreover, the successful collaboration among LIGO–Virgo–KAGRA highlights the importance of international scientific cooperation and sets the stage for next-generation detectors with even greater sensitivity. As researchers note, the next decade of gravitational-wave astronomy promises deeper insights into some of the most energetic and enigmatic phenomena in the universe.

In essence, GW250114 is not just the clearest signal of a black hole merger—it is a powerful confirmation that humanity can now observe, test, and validate the fundamental laws governing the most extreme realms of spacetime.

In News:

The QS World University Rankings: Asia 2026, released by QS Quacquarelli Symonds, highlight a paradox for Indian higher education. While absolute scores of Indian institutions have improved, nine of the top ten Indian universities—including seven IITs—have slipped in rankings, reflecting intensifying competition from East and Southeast Asia.

Key Highlights of QS Asia Rankings 2026

Top Asian Universities

• The University of Hong Kong secured the 1st rank, overtaking Peking University (China).
• National University of Singapore (NUS) and Nanyang Technological University (NTU) shared 3rd position.
• Dominance of Hong Kong, Mainland China, and Singapore in the top 10.
• Universities from South Korea and Malaysia entered the top 20, indicating regional upward mobility.

QS described the trend as a “clear eastward concentration of top performance”, driven by sustained investments in research and internationalisation.

Performance of Indian Institutions

Ranking Trends

• IIT Delhi remained India’s best-ranked institution for the second consecutive year but fell 15 places to rank 59.
• IIT Bombay recorded the steepest decline, dropping 23 places to rank 71.
• IIT Madras, Kanpur, and Kharagpur witnessed their lowest rankings in recent years.
• Chandigarh University emerged as the only Indian institution to improve, rising from 120 to 109.

Overall, 67% of Indian institutions featured in 2025 slipped in 2026 rankings, despite score improvements.

Reasons Behind India’s Relative Decline

1. Intensifying Regional Competition

• Universities in China, Hong Kong, Singapore, South Korea, and Malaysia outperformed India in:
  • Research impact
  • Faculty resources
  • Global academic engagement
• Large-scale state-backed R&D investments and strong international collaboration networks boosted regional peers.

2. Expanded Ranking Scope

• 1,529 institutions ranked in 2026, with 552 new entrants.
• China added 261 institutions, India added 137, increasing volatility and competition.
• India now has 294 universities ranked, second only to China.

Decline in Key Performance Metrics for Indian Institutions

Research Impact (Citations per Paper)

• IIT Delhi: 31.5, IIT Bombay: 20.0, IIT Madras: 20.3
• Leading Asian universities score 90+, indicating higher global research visibility.
• Reflects fewer highly cited and internationally co-authored papers.

Faculty–Student Ratio

• IIT scores range from 16.5 (IIT Kharagpur) to 40.9 (IIT Delhi).
• Top Asian universities score in the 80–90 range.
• Indicates large class sizes and faculty shortages.

Internationalisation Indicators

• Poor performance in:
  • International Student Ratio (ISR)
  • International Faculty presence
• IIT ISR scores range from 2.5 to 12.3, compared to 100 for some global leaders.
• Structural disadvantage due to limited foreign student and faculty inflow.

Areas of Strength for Indian Institutions

Despite rank declines, Indian institutions perform strongly in:

• Academic reputation
• Employer reputation
• Staff with PhD
• Papers per faculty

These metrics consistently fall in the 80–90 score range, reflecting strong domestic credibility and teaching capacity.

Comparative Regional Trends

• China & Hong Kong: Sustained dominance through massive R&D funding and institutional autonomy.
• South Korea: Universities like Yonsei and Korea University show steady upward movement due to global partnerships.
• Malaysia: Institutions such as Universiti Malaya and Universiti Putra Malaysia improved through better faculty-student ratios and internationalisation.

Conclusion

The QS Asia Rankings 2026 underline a critical challenge for India: improving absolutely but falling relatively. As Asian peers surge ahead through research excellence and global engagement, India must bridge gaps in research impact, faculty resources, and internationalisation. Achieving the NEP 2020 vision is essential for transforming Indian universities into globally competitive, innovation-driven institutions.

In News:

The BRICS grouping - Brazil, Russia, India, China and South Africa - has intensified efforts to operationalise “BRICS Pay,” a cross-border payment system designed to reduce dependence on the U.S.-dominated SWIFT network. This initiative reflects a broader push by emerging economies to assert financial sovereignty, insulate themselves from unilateral sanctions, and reshape the global financial architecture towards multipolarity.

Background: Evolution of BRICS Financial Cooperation

The foundations of BRICS’ financial cooperation were laid at the Fortaleza Summit (2014) with the creation of two landmark institutions—the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA). These were the first multilateral financial institutions set up by developing countries to offer alternatives to Western-dominated bodies such as the IMF and World Bank.

The momentum intensified after Western sanctions on Russia in 2014 and again in 2022, which exposed the vulnerability of nations dependent on dollar-centric financial systems. By 2017, BRICS members formally agreed to enhance local currency settlements, currency swaps, and financial coordination. This gradual evolution culminated at the Kazan Summit (2024), where leaders launched the BRICS Cross-Border Payments Initiative (BRICS Pay).

What is BRICS Pay?

BRICS Pay is the most concrete step taken by the bloc to challenge the SWIFT system, a Belgium-based financial messaging network used by over 11,000 banks worldwide and influenced largely by G-10 central banks. The system has often been criticised for enabling the weaponisation of finance through sanctions.

BRICS Pay seeks to:

• Enable cross-border settlements in local currencies
• Strengthen correspondent banking networks within BRICS
• Provide a sanctions-resilient payment mechanism
• Reduce transaction costs and settlement delays in intra-BRICS trade

A prototype of BRICS Pay was demonstrated in Moscow in October 2024, marking a technological and political milestone.

Technological Backbone: National Payment Systems

Each BRICS country already possesses a robust domestic digital payment infrastructure, forming the technological base of BRICS Pay:

• India – Unified Payments Interface (UPI)
• China – Cross-Border Interbank Payment System (CIPS)
• Russia – System for Transfer of Financial Messages (SPFS)
• Brazil – Pix Instant Payment System
• South Africa – South African Multiple Option Settlement (SAMOS)

The BRICS Payments Task Force (BPTF) is working to ensure interoperability among these systems, a prerequisite for creating a cohesive alternative to SWIFT.

Strategic Motivations Behind BRICS Pay

The push for BRICS Pay is driven by three interlinked objectives:

• Financial Sovereignty: Reducing exposure to the U.S. dollar and Western sanctions, particularly relevant after Russia and Iran faced prolonged financial isolation.
• Economic Efficiency: Facilitating faster, cheaper trade settlements among BRICS members, especially in energy and commodities.
• Geopolitical Assertion: Signalling the emergence of BRICS as a counterweight to Western economic dominance.

The inclusion of Iran into BRICS in 2024, a country long excluded from SWIFT, reinforced the bloc’s intent to create a sanctions-proof financial ecosystem.

Challenges to Implementation

Despite its promise, BRICS Pay faces significant constraints:

• Divergent National Interests: Each country is simultaneously promoting its own payment system globally. India’s UPI is expanding in Asia and Africa, while China’s CIPS operates in over 120 countries.
• Interoperability and Regulation: Integrating multiple payment platforms requires harmonised legal, cybersecurity, and regulatory standards.
• Currency Coordination Issues: The absence of a common BRICS currency limits seamless settlement. A unified currency would demand deep macroeconomic convergence, as seen in the prolonged evolution of the Euro.
• Trust Deficit: Smaller members may fear Chinese financial dominance, given the internationalisation of the yuan and its inclusion in the IMF’s Special Drawing Rights (SDR) basket.

Global Reactions and Implications

The initiative has triggered sharp geopolitical reactions. Former U.S. President Donald Trump threatened 100% tariffs on BRICS members if they attempted to undermine the U.S. dollar, highlighting the strategic sensitivity of the move.

If operationalised even at a regional level, BRICS Pay could:

• Accelerate de-dollarisation in global trade
• Provide developing nations an alternative financial channel
• Promote a multipolar global financial order

However, most analysts agree that BRICS Pay is more likely to complement SWIFT rather than replace it, at least in the near term.

Conclusion

BRICS Pay represents a strategic experiment rather than an immediate disruption of the global financial system. Its success will depend on sustained political will, technical integration, and trust among members. Even partial success—limited to intra-BRICS trade—would mark a significant shift in global finance, signalling that economic power is no longer unipolar but increasingly distributed. For India, BRICS Pay offers both opportunities and challenges, requiring a careful balance between promoting UPI globally and safeguarding strategic autonomy within the bloc.

In News:

The ratification of the High Seas Treaty, formally known as the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement, by over 60 countries in September 2025 marks a watershed moment in global marine governance.

Set to enter into force in January 2026, the treaty seeks to fill long-standing gaps in the United Nations Convention on the Law of the Sea (UNCLOS, 1982) by creating a comprehensive framework for conserving and sustainably using marine biodiversity in areas beyond national jurisdiction—waters that comprise nearly two-thirds of the global ocean.

Evolution and Objectives

• The origins of the treaty date back to 2004, when the UN General Assembly recognised the absence of clear guidelines under UNCLOS to protect biodiversity on the high seas and established an ad hoc working group.
• By 2011, states agreed to negotiate four central themes: Marine Genetic Resources (MGRs), Area-Based Management Tools (ABMTs) including Marine Protected Areas (MPAs), Environmental Impact Assessments (EIAs), and capacity building and technology transfer. Four Intergovernmental Conferences held between 2018 and 2023 culminated in a consensus in March 2023, leading to the adoption of the treaty in June 2023.
• The treaty’s overarching goal is to establish an inclusive global governance mechanism to ensure the sustainable use and long-term protection of marine biodiversity, particularly in the context of growing threats such as overfishing, pollution, deep-sea mining, and climate change.

Key Provisions

A cornerstone of the treaty is the recognition of Marine Genetic Resources as the “common heritage of humankind.” MGRs—genetic material from marine organisms that hold immense value for biotechnology, pharmaceuticals, and food systems—must be subject to fair and equitable benefit-sharing, both monetary and non-monetary.

The treaty also enables the creation of Area-Based Management Tools, most notably Marine Protected Areas, which will be identified using scientific assessments as well as indigenous and local knowledge. These MPAs aim to conserve critical ecosystems, strengthen climate resilience, and support global food security.

Further, the treaty mandates Environmental Impact Assessments for activities that could have significant, cumulative, or transboundary ecological effects. This introduces transparency and precaution into ocean activities that have previously operated with limited oversight.

To address disparities in ocean science capabilities, the treaty emphasises capacity building and technology transfer, enabling developing countries to participate meaningfully in marine research, monitoring, and governance.

Implementation Challenges

Despite its promise, the High Seas Treaty faces several obstacles. A major conceptual ambiguity exists between the principles of Common Heritage of Humankind and Freedom of the High Seas, the latter guaranteeing unrestricted navigation, scientific exploration, and resource extraction. The treaty applies the common heritage principle only to MGRs, leaving operational uncertainties that may hinder equitable benefit-sharing.

Governance of MGRs remains contentious due to lack of clarity on mechanisms for calculating, distributing, and enforcing benefits, raising concerns over biopiracy by technologically advanced nations and private corporations. Moreover, the absence of major maritime powers such as the United States, China, and Russia from the ratification process undermines the treaty’s universality and enforcement capacity.

Coordination with existing international institutions—including the International Seabed Authority (ISA) and Regional Fisheries Management Organisations (RFMOs)—is vital to prevent overlapping mandates and fragmented governance. Effective implementation will also require robust monitoring systems, dynamic management of MPAs, transparent data sharing, and substantial financial and technological support for developing countries.

Conclusion

The High Seas Treaty represents one of the most ambitious efforts in international environmental law, seeking to align conservation imperatives with equitable development. Its success will hinge on clear operational guidelines for benefit-sharing and EIAs, stronger institutional coordination, and broader ratification by key maritime states. If implemented with genuine global commitment, the treaty has the potential to transform the governance of the high seas, ensure sustainable access to ocean resources, and enhance the resilience of marine ecosystems at a time of escalating climate and biodiversity crises.

In News:

The Union Government’s approval of the Terms of Reference (ToR) for the Eighth Central Pay Commission (CPC) formally initiates the process of revising pay, pensions, and allowances for nearly 50 lakh central employees and 69 lakh pensioners.

The Commission, chaired by Justice Ranjana Prakash Desai, with Pulak Ghosh as Part-time Member and Pankaj Jain as Member-Secretary, is expected to submit its report within 18 months, with recommendations effective from 1 January 2026.

Background: Evolution of Pay Commissions in India

• Pay Commissions are constituted approximately every ten years to rationalise pay structures.
• Since Independence, seven Commissions have been established.
• Their role has evolved from simple pay revision to addressing fiscal sustainability, equity across services, and alignment with economic conditions.
• The 8th CPC, announced in January 2025, continues this trend of expanding scope.

Mandate and Terms of Reference of the 8th CPC

a. Core Functions

• Review pay, allowances, and pensions of Central Government employees.
• Ensure recommendations maintain a balance between employee welfare and fiscal prudence.

b. Fiscal and Federal Considerations

• Assess impact on state governments, which often adopt Central pay structures.
• Review public-private salary differentials to ensure competitiveness in government employment.

c. Pension-Related Mandates

• Examine the unfunded liabilities of the Old Pension Scheme (OPS) amid growing demand for its restoration.
• Consider long-standing issues such as:
  • Reducing pension commutation period from 15 to 12 years.
  • Enhancing medical benefits under CGHS, especially raising the current ?3,000 monthly allowance in non-CGHS areas and expanding district-level hospital coverage.

d. Integration with New Pension Reforms

• Evaluate implications of the National Pension System (NPS).
• Consider overlaps with the Unified Pension Scheme (UPS), introduced to address concerns of volatility and provide a minimum pension of ?10,000 after 10 years of service.

Fitment Factor: The Core Determinant of Pay Revision

The fitment factor, a multiplier used to revise basic pay and pensions, will be central to the scale of salary and pension increases.

• Under the 7th CPC, this factor was 2.57.
• A higher factor under the 8th CPC would proportionately raise:
  • Basic pension
  • Dearness Relief (DR)
  • Family pension
  • EPS benefits

Illustration (for ?40,000 old basic pay):

• Fitment factor 2.57 → ?1,02,800 revised pay → ?51,400 pension
• Fitment factor 3.00 → ?1,20,000 revised pay → ?60,000 pension
• Fitment factor 3.68 → ?1,47,200 revised pay → ?73,600 pension

Higher pension also increases tax liability, as pension is treated as taxable salary income.

Fiscal Implications for the Government

• Pay, pensions, and allowances account for ~18% of the Centre’s revenue expenditure.
• Projected outlay for 2025-26 exceeds ?7 lakh crore.
• The 7th CPC caused a 23.55% rise in expenditure, adding ?1.02 lakh crore annually.
• Under the 8th CPC, the minimum pay could exceed ?46,000 per month, increasing the fiscal burden significantly.

Conclusion

The 8th CPC will influence not only the remuneration of millions of employees and pensioners but also the broader macro-fiscal landscape. Balancing competing demands—employee welfare, equity, fiscal discipline, and federal financial capacity—will determine the long-term sustainability of government pay and pension structures. Its recommendations will therefore play a crucial role in shaping public administration, fiscal governance, and the future of India’s personnel systems.

In News:

Recent financial accounts released by the Reserve Bank of India for 2024–25 highlight an important shift in household balance sheets: liabilities are expanding at a faster rate than financial assets. This trend has implications for savings behaviour, macroeconomic stability, and the broader investment cycle.

Household Asset and Liability Patterns: Key Findings

1. Asset Accumulation Slowing

Indian households continue to be net savers, yet the pace of asset formation has moderated.

• Annual financial assets increased from ?24.1 lakh crore in 2019–20 to ?35.6 lakh crore in 2024–25, marking a 48% rise.
• As a share of GDP, however, asset formation declined from 12% to 10.8%, reflecting slower savings growth relative to economic expansion.

2. Faster Build-Up of Liabilities

Household borrowing has expanded sharply during the same period.

• Liabilities more than doubled, rising from ?7.5 lakh crore to ?15.7 lakh crore—a 102% increase.
• Their share in GDP rose from 3.9% to 4.7%.
• Household debt peaked at 6.2% of GDP in 2023–24, with a mild moderation in 2024–25, indicating early signs of financial stabilization.

3. Changing Savings Preferences

While bank deposits remain the principal savings instrument, households are increasingly moving toward:

• Mutual funds
• Market-linked products
• Non-traditional financial investments

This diversification points to a maturing financial ecosystem and improving financial literacy, but also increases exposure to market volatility.

Drivers of the Rising Debt Trend

• Post-pandemic consumption recovery, supported by increased reliance on credit.
• Housing and personal loans expanding faster than incomes, especially in urban India.
• Low or moderate interest rate cycles encouraging borrowing.
• Shift toward financialisation of households, with more participation in equity and debt markets.

Implications for the Economy

1. Pressure on the Household Savings Rate

A slower pace of savings growth may:

• Reduce the pool of domestic capital available for investment,
• Affect long-term capital formation,
• Increase dependence on external financing for growth.

2. Vulnerability to Economic Shocks

The rise in consumer leverage heightens exposure to:

• Interest-rate tightening,
• Income disruption due to economic downturns,
• Asset price corrections in financial markets.

3. Mixed Outcomes from Market-Linked Assets

While deeper financial participation is positive, households increasingly carry:

• Higher market risk,
• Greater sensitivity to financial cycles.

Conclusion

The latest RBI data reveal a structural shift in household balance sheets, with liabilities growing more rapidly than assets. Though this reflects rising aspirations and financial deepening, it also signals potential stress points if income growth fails to keep pace or if macroeconomic conditions tighten. Ensuring sustained income growth, robust consumer protection, and balanced credit expansion will be essential to preserve household financial resilience and support long-term economic stability.

In News:

India’s commitment to achieving a low-carbon, technologically advanced economy has sharpened the focus on securing access to rare earths and critical minerals, which underpin clean energy systems, electronics, aerospace, and defence platforms. The launch of the National Critical Mineral Mission (2025) marks a decisive step toward building resilience in mineral supply chains and reducing external dependencies, thereby aligning India’s development trajectory with its climate and strategic objectives.

Significance of Rare Earths and Critical Minerals

Critical minerals are indispensable to the global green transition. They power electric vehicles (EVs), lithium-ion batteries, solar photovoltaics, wind turbines, and semiconductor devices. Their role extends into national security domains, informing the design of precision-guided weapons, jet engines, satellite systems, and next-generation communication networks. Rare earth elements (REEs)—a subset of critical minerals—enable high-strength magnets essential for renewable energy, robotics, and missile guidance. As countries race toward net-zero commitments, the demand for these minerals is projected to increase severalfold, amplifying concerns over supply vulnerabilities.

India’s Context: Climate Goals and Strategic Imperatives

India seeks to reduce the emissions intensity of its GDP by 45% by 2030 and achieve net-zero emissions by 2070. Meeting these targets requires rapid expansion of renewable energy and storage capabilities, both of which depend heavily on minerals such as lithium, cobalt, nickel, graphite, silicon, neodymium, and dysprosium. Despite possessing the fifth-largest rare earth reserves globally, India lacks adequate refining, metallisation, and magnet-manufacturing infrastructure, leading to significant reliance on imports. More than 60% of global processing capacity lies in China, exposing India to supply disruptions and geopolitical risks.

Applications Across Sectors

• Renewable Energy: Silicon, gallium, and indium drive photovoltaic technologies; rare-earth magnets enhance wind turbine efficiency.
• Electromobility & Storage: Lithium, cobalt, and nickel form the backbone of battery chemistry for EVs and grid-scale storage.
• Electronics & Semiconductors: Copper, tungsten, and tin support microprocessors, circuit boards, and high-end computing.
• Defence & Aerospace: Titanium alloys and REE magnets strengthen jet engines, missiles, and satellites.
• Medical Technologies: Critical minerals are used in MRI machines, pacemakers, and imaging equipment.

Challenges in Building a Secure Mineral Ecosystem

India faces multiple hurdles:

• High import dependence for crucial minerals and processing technologies.
• Technological gaps in advanced separation, refining, and recycling processes.
• Environmental concerns over mining-related pollution, requiring stringent safeguards.
• Regulatory delays due to fragmented jurisdiction and slow clearances.
• Skill and financing deficits for large-scale exploration and processing.

Government Initiatives

The National Critical Mineral Mission (2025) aims to create an end-to-end domestic value chain—from exploration to recycling. Reforms under the MMDR Act (2023) introduced 24 critical minerals for centralised auction, improving transparency. The KABIL joint venture has secured lithium assets in Argentina and strengthened partnerships with Australia. Customs duty exemptions on critical minerals (2025), establishment of processing parks, and the promotion of circular-economy-based recycling reflect a multi-pronged strategy.

Way Forward

India must prioritise building a domestic value chain encompassing exploration, processing, magnet manufacturing, and battery component production. Enhanced funding for R&D and startup innovation in refining and recycling technologies is essential. Diversifying imports through strategic partnerships, enforcing sustainable mining norms, and integrating mineral strategy with Make in India, the Green Hydrogen Mission, and energy transition policies will be critical.

Conclusion

Critical minerals form the backbone of India’s green transition and strategic autonomy. The National Critical Mineral Mission represents a shift toward resilience and long-term sustainability. By investing in exploration, innovation, and circularity, India can emerge as a global hub in the clean-tech and critical mineral value chain, strengthening both its climate commitments and national security.

In News:

India’s statistical architecture is undergoing a major transformation as the Ministry of Statistics and Programme Implementation (MoSPI) moves toward developing a bottom-up District Domestic Product (DDP) framework.

The initiative seeks to address long-standing limitations in district-level economic measurement by integrating two critical datasets—the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and the Periodic Labour Force Survey (PLFS). Beginning January 2025, the combined use of these datasets aims to provide more accurate, granular and timely insights into India’s local economic activity, enabling evidence-based policymaking at the district level.

For decades, most states have relied on top-down allocation methods to estimate DDP, proportionately distributing Gross State Domestic Product based on outdated demographic indicators such as population. This approach produces “near-identical growth rates across districts”, obscuring regional disparities. Recognising this gap, MoSPI has initiated a shift toward a bottom-up estimation model in partnership with state governments. By directly capturing enterprise-level and labour market data from each district, the new framework is expected to radically improve the precision of district economic accounts.

The ASUSE forms the backbone of this strategy. Covering the unincorporated non-agricultural sector—which includes micro, household-based and small enterprises across manufacturing, trade and services—ASUSE produces detailed information on operations, investment patterns, workforce size and value addition. Previously released annually, the survey now offers quarterly data, enhancing frequency and granularity. Given the dominance of the unorganised sector in India’s economy, ASUSE provides an indispensable window into local economic activity.

The PLFS, conducted monthly by the National Statistical Office (NSO), complements ASUSE by capturing labour force participation, employment conditions, earnings and occupational structures in both rural and urban areas. Together, the two datasets reflect the dual pillars of district economies—enterprise activity and labour engagement. MoSPI notes that large enterprises are easy to identify, but district-level output is primarily driven by households, nano units and MSMEs, which both surveys cover extensively.

By combining these datasets, MoSPI aims to compute DDP through:

(a) bottom-up aggregation of district-level enterprise and labour data;

(b) integration of informal sector output; and

(c) alignment of statistical systems with decentralised planning structures.

This marks a paradigm shift in India’s economic measurement, aligning with the government’s emphasis on data-driven governance under Viksit Bharat @2047.

The initiative is part of a broader overhaul of the statistical system. Several complementary efforts are underway:

• The Annual Survey of Service Sector Enterprises (ASSSE), launching in January 2026, will map the incorporated services sector.
• The National Household Income Survey (NHIS), beginning February 2026, aims to measure income distribution and inequality—despite traditional challenges of under-reporting.
• A forward-looking capital expenditure survey has been introduced to track investment trends.
• MoSPI is also expanding public access to over 250 datasets, including GST aggregates, e-Vahan registrations and trade statistics, to strengthen national accounts and support research.

Despite these advancements, challenges remain. Accurate data capture from unincorporated enterprises is difficult, statistical capacity varies across states, and integrating multiple datasets raises risks of double-counting. Yet experts view the reform as a critical step toward improving the granularity, reliability and timeliness of India’s economic statistics. With several states already experimenting with district-level estimation, MoSPI’s framework could soon enable standardised and credible DDP measurement nationwide, transforming local governance and development planning.

In News:

India is grappling with a growing employability crisis, underscored by the fact that only 42.6% of graduates are considered job-ready. This mismatch between academic training and labour market needs has become a structural challenge, affecting productivity, economic growth, and youth aspirations. The crisis signals a systemic misalignment rather than a shortage of talent.

Understanding Employability

Employability today goes beyond academic qualifications. It includes the ability to:

• Acquire and apply knowledge in real-world contexts.
• Adapt to evolving technologies and workplace demands.
• Engage in lifelong learning, unlearning, and relearning.
• Demonstrate soft skills, value creation, and ethical behaviour.

Modern industries require graduates who combine technical capability with communication, teamwork, problem-solving, and a growth mindset.

Causes of the Academia–Industry Divide

Academic Factors

• Outdated Curriculum: Syllabi often fail to match rapid technological changes, new job roles, and automation trends.
• Theory-Oriented Pedagogy: Learning remains exam-centric with limited exposure to practical projects, internships, or problem-solving environments.
• Soft Skills Deficit: Institutions provide little training in communication, adaptability, workplace behaviour, and emotional intelligence.

Industry Factors

• High Expectations: Employers expect “ready-to-deploy” graduates but invest minimally in onboarding or mentoring.
• Rapid Technological Shifts: Industry skill needs evolve faster than academia can adjust, widening the skills gap.
• Weak Collaboration: Companies often view academic institutions as outdated, resulting in minimal engagement in curriculum design or research.
• Short-Term Approach: Recruitment is prioritised over building robust, long-term skill ecosystems.

Government and Institutional Initiatives

• National Education Policy (NEP) 2020: Encourages experiential learning, flexibility, internships, and stronger industry linkages.
• AICTE Internship Mandate: Requires engineering students to undergo industrial exposure.
• Skill India Mission: Strengthens vocational education through Sector Skill Councils aligned with market needs.
• NASSCOM FutureSkills PRIME: Upskills youth in digital technologies such as AI, data analytics, and cybersecurity.

These initiatives aim to modernise learning pathways and improve alignment with industry demands.

Challenges in Implementation

Despite reforms, several structural challenges persist:

• Curricular Inertia: Bureaucratic hurdles delay rapid updates in university syllabi.
• Fragmented Skills Ecosystem: Weak coordination among government, academia, and industry limits policy effectiveness.
• Faculty Skill Gaps: Many educators lack exposure to new technologies and contemporary workplace practices.
• Urban–Rural Divide: Smaller and rural institutions suffer from poor infrastructure and limited corporate linkages.
• Low Industry Investment: Companies underinvest in academia–industry partnerships and long-term talent development.

Way Forward

• Structural Reforms
  • Curriculum Co-Design: Regular, collaborative revision of syllabi with inputs from employers, universities, and policymakers.
  • Dual-Learning Model: Embed apprenticeships, live projects, and work-integrated learning into higher education.
  • Faculty Immersion: Promote faculty internships, industry sabbaticals, and continuous upskilling.
• Skills and Ethics
  • Soft Skills & Ethics Labs: Establish dedicated centres for communication, workplace ethics, and emotional intelligence.
  • Outcome-Based Tracking: Use data to monitor alumni career trajectories and skill relevance.
• Industry Engagement: Incentivise long-term corporate participation in curriculum development, research, and training.

Conclusion

India’s employability challenge is fundamentally an issue of alignment, not ability. Bridging the gap between academia and industry requires shared responsibility, continuous innovation, and sustained collaboration. When education becomes practical, dynamic, ethical, and closely connected to the world of work, India can unlock its demographic potential and build a resilient, future-ready workforce.