In News:

Prime Minister paid tribute to Sri Aurobindo on his birth anniversary on 15 August 2026, recalling his contribution to India’s freedom struggle and his ideas on human progress and transformation.

Sri Aurobindo

• Born: 15 August 1872, Calcutta
• Died: 5 December 1950, Pondicherry
• Known as a nationalist, revolutionary, philosopher, poet and yogi.
• Cleared the Indian Civil Service (ICS) examination but did not qualify for appointment after failing to appear for the compulsory horse-riding test.

Contribution to the Freedom Struggle

1. Radical Nationalism

• Advocated radical nationalism and mass mobilisation even before the rise of Gandhi.
• Through New Lamps for Old, criticised the moderate approach of the early Indian National Congress.
• Associated with the revolutionary nationalist milieu of Jugantar and Anushilan Samiti.
• Wrote for nationalist newspapers including Bande Mataram and founded Karmayogin.

2. Alipore Bomb Case, 1908

• Arrested in connection with the Alipore Bomb Case.
• Chittaranjan Das successfully defended him.

Spiritual and Philosophical Contributions

• Later moved increasingly towards spiritual and philosophical pursuits.
• Established the Sri Aurobindo Ashram at Pondicherry in 1926.
• Worked closely with Mirra Alfassa (The Mother), who later established Auroville.
• Emphasisedspiritual evolution, human transformation and India's civilisational role.

Major Works

• The Life Divine
• Savitri
• Essays on the Gita
• The Synthesis of Yoga
• The Foundations of Indian Culture / Defence of Indian Culture

In News:

India’s sovereign green bond (SGrB) market is gaining traction as strong investor demand has resulted in a persistent “greenium”—green bonds trading at lower yields than comparable conventional Government Securities (G-Secs).

• Average greenium in H1 FY2026–27 reached its highest level since India began issuing SGrBs in FY2022–23.
• This suggests stronger market absorption capacity for green bond issuances in the second half of FY2026–27.

What is Greenium?

• Greenium = Green Premium.
• It refers to the lower yield investors accept on green bonds compared with conventional bonds of similar maturity/credit quality.
• Since bond prices and yields move inversely, lower yield indicates higher investor willingness to pay for green bonds.
• Reflects growing preference for environmentally sustainable investments.

Sovereign Green Bonds (SGrBs)

• Government debt instruments introduced in Union Budget 2022–23 to finance India’s transition towards a low-carbon economy.
• Proceeds are earmarked for eligible green projects.
• India’s SGrB Framework (2022) is aligned with ICMA Green Bond Principles, 2021.
• The framework was assessed by CICERO (Norway) and rated “Medium Green” with “Good Governance.”
• SGrBs:
  • Issued through uniform-price auctions.
  • Eligible for repo transactions.
  • Tradable in the secondary market.
  • Eligible for Statutory Liquidity Ratio (SLR) purposes.

Management of SGrB Proceeds

• Proceeds are deposited into the Consolidated Fund of India.
• Managed by the Public Debt Management Cell, Ministry of Finance, through mechanisms such as the Green Register.
• Green Finance Working Committee (GFWC), chaired by the Chief Economic Adviser, is involved in project selection/evaluation.
• Allocation and utilisation are audited by the CAG.

Current Market Trends

• India has about ?877 billion of sovereign green bonds outstanding.
• 30-year green bonds have emerged as the dominant segment, with outstanding issuance exceeding ?500 billion.
• Earlier issuances faced weak demand at yields acceptable to the government, but demand has strengthened, particularly for longer-maturity bonds.

Why is Demand Rising?

• Insurers: Need long-term assets to match long-term liabilities.
• Infrastructure classification: Green bonds are treated as infrastructure investments, providing greater investment flexibility to insurers.
• ALM requirements: Long-duration green bonds fit the Asset-Liability Management requirements of insurers and pension funds.

Why is Greenium Important?

• Lower borrowing cost: Can reduce the government's cost of financing climate-related investments.
• Climate finance: Supports renewable energy, clean mobility and climate-adaptation projects.
• Market maturity: A stable greenium indicates sustained investor confidence in India's green-finance ecosystem.
• Supports India's Net Zero target by 2070.

Sustainable Finance Instruments

In News:

According to a report submitted before the Supreme Court, 4,192 criminal cases against sitting and former MPs and MLAs are pending trial across India. Criminalisation of politics remains a major challenge to free and fair elections and effective democratic governance.

Key Facts

• 4,192 cases against sitting/former MPs and MLAs are pending trial.
• Chief Ministers of 14 out of 28 States have criminal cases pending against them.
• Despite repeated judicial directions for speedy disposal, pendency has remained broadly high.

Major Reasons for Criminalisation of Politics

1. Delayed Disqualification: Under the Representation of the People Act, 1951, disqualification generally follows conviction, allowing accused persons to contest elections while trials remain pending.
2. Money & Muscle Power: Candidates with financial resources and local influence are often considered electorally “winnable”.
3. Low Voter Awareness: Although candidate affidavits disclose criminal records, assets and other details, electoral choices may still be influenced by caste, religion and local factors.
4. Political Party Complicity: Parties may prioritise electoral winnability over criminal antecedents.
5. Judicial Delays: Adjournments and prolonged trials can allow cases to remain unresolved for years.

Impact

• Free & Fair Elections: Restricts voters' meaningful choices.
• Democratic Accountability: Weakens public confidence in elected institutions.
• Electoral Malpractices: Can encourage intimidation, booth capturing and use of illicit funds.
• Policy Capture: Political power may be used to protect criminal networks and vested interests.
• Public Trust: Persistent criminalisation can erode faith in democratic institutions.

Important Committee Recommendations

• Indrajit Gupta Committee (1998): Recommended partial state funding of elections to reduce dependence on private funds.
• 2nd ARC (2007): Supported measures including partial state funding to curb the role of money in elections.
• NCRWC (2002): Recommended greater accountability of political parties, including auditing of party expenditure and disclosure of candidates' assets/liabilities.
• Law Commission, 244th Report (2014):
  • Recommended disqualification where charges are framed for offences carrying a maximum punishment of 5 years or more, subject to safeguards.
  • Recommended fast-track courts for cases involving sitting MPs and MLAs.

Supreme Court Interventions

1. Union of India v. Association for Democratic Reforms (2002)

• Required disclosure of candidates' criminal records, assets and educational qualifications.
• Linked voters' right to know with freedom of speech and expression under Article 19(1)(a).

2. Lily Thomas v. Union of India (2013)

• Held that a sitting MP/MLA/MLC is immediately disqualified upon conviction for an offence attracting imprisonment of 2 years or more.

3. Public Interest Foundation v. Union of India (2018)

• Directed political parties to publicise candidates' criminal antecedents and details of pending cases.

4. Rambabu Singh Thakur v. Sunil Arora (2020)

• Political parties must publish details of candidates with pending criminal cases through their websites, social media and newspapers, along with reasons for selecting them, within 48 hours of candidate selection.

5. Speedy Trials

• 2017: SC directed establishment of 12 special courts in 10 States/UTs.
• 2018: Directed identification of designated Sessions and Magistrial Courts for priority trial of cases involving legislators.
• 2023: Directed High Courts to register suo motu cases to monitor disposal of criminal cases involving MPs/MLAs.

130th Constitution Amendment Bill, 2025

The Bill proposes a separate mechanism concerning ministers facing serious criminal allegations:

• Applies where an offence carries a maximum punishment of 5 years or more.
• Requires arrest and detention for 30 consecutive days.
• If the Prime Minister/Chief Minister remains in custody for 30 consecutive days, the Bill proposes that they resign or cease to hold office from the 31st day.
• The Bill was referred to a Joint Parliamentary Committee (JPC) following opposition.

In News:

NITI Aayog released the report “India’s Services Sector: Insights on Regulatory Regime in Professional Services”, examining regulatory bottlenecks in knowledge-intensive professional services and their impact on India’s global competitiveness.

Key Findings

• Services sector: Contributed around 55% of India’s GDP/GVA in FY24, accounts for nearly 30% of employment, and remains the largest FDI-recipient sector.
• Professional & management consulting: Accounted for about 20% of India’s services exports in 2024–25; exports grew at a CAGR of 18% during FY15–FY25.
• Revealed Comparative Advantage (RCA): Increased from 0.95 in 2005 to 3.0 in 2024. An RCA above 1 indicates comparative advantage.
• India is the 7th-largest services exporter, with 4.3% of global services exports in 2024, up from 2% in 2005.

Regulatory Bottlenecks

1. Legal Services

• No Mutual Recognition Agreements (MRAs) with foreign bar bodies.
• Restrictions on corporate structures and Multi-Disciplinary Practices (MDPs) limit global expansion of Indian law firms.

2. Accounting & Auditing

• Dual oversight involving ICAI and NFRA creates jurisdictional concerns.
• Limited international professional mobility and absence of a dedicated regulatory framework for bookkeeping.

3. Architecture & Engineering

• Architecture is regulated under the Architects Act, 1972, while engineering practice lacks a comprehensive statutory framework.
• Multiple State-level registrations and absence of MRAs restrict professional mobility.

4. Healthcare & Allied Healthcare

• Regulatory overlap, particularly in AYUSH.
• Inter-State mobility is constrained by requirements such as NOCs for transfer between State Medical Councils.
• Delayed implementation of NExT and partial operationalisation of the NCAHP Act, 2021 are additional concerns.

OECD Services Trade Restrictiveness Index (STRI)

The STRI measures regulatory barriers to services trade across 22 sectors and 51 countries.

• Architecture: 2nd most restrictive
• Legal: 3rd most restrictive
• Accounting: 4th most restrictive
• Engineering: 38th most restrictive / comparatively liberal

GATS & India

Under the General Agreement on Trade in Services (GATS), services trade occurs through four modes:

1. Mode 1: Cross-border supply
2. Mode 2: Consumption abroad
3. Mode 3: Commercial presence
4. Mode 4: Presence of natural persons

India has no GATS commitments in legal and architectural services, while engineering has limited commitments, including a 51% foreign-equity cap under Mode 3.

NITI Aayog’s Four-Pronged Strategy

• Continuous Professional Development (CPD): Uniform and enforceable CPD requirements.
• Global best practices: Transparent licensing, qualification criteria, appeal mechanisms and defined timelines.
• Move up Global Value Chains: Shift from cost-based services to high-value, knowledge-intensive activities such as R&D, strategic technology and complex advisory services.
• Prepare for emerging trends: Build capacity for AI/automation, green transition and geopolitical fragmentation.
• Global Capability Centres (GCCs): India has around 1,700 GCCs employing over 1.9 million professionals, providing a platform for moving towards higher-value services.

In News:

The Supreme Court has held that curbing the influence of black money in elections is an important responsibility of the Election Commission of India (ECI). It directed stronger coordination, time-bound investigation and speedy disposal of election-related black-money cases.

Key Directions of the Supreme Court

• Seizure reporting: Cash/assets seized during elections to be reported within 24 hours, with reasons establishing a prima facie link to an electoral offence.
• Time-bound investigation: Election-related FIR investigations should ordinarily be completed within 1 year; delays must be justified to the ECI.
• Quarterly monitoring: Investigating Officers to submit quarterly status reports to the ECI.
• Income Tax coordination: Static Surveillance Teams detecting cash exceeding ?10 lakh should share information with Income Tax authorities.
• Speedy trials: High Courts to facilitate expeditious disposal of election-related black-money cases, including designated courts where necessary.
• Withdrawal of criminal cases: Withdrawal of cases against candidates relating to an election cycle requires approval of the concerned High Court.
• Compliance: ECI and State Governments directed to submit compliance reports by 18 November 2026.

Why is Black Money a Threat to Electoral Integrity?

• Voter autonomy: Illicit monetary inducements can distort the free and informed choice of voters, undermining democratic consent.
• Level playing field: Unaccounted wealth can disadvantage financially weaker candidates and promote money power/plutocracy.
• Policy capture: Illicit political financing can encourage quid pro quo, favouritism and cronyism.
• Criminal–political nexus: Large-scale movement of illicit cash can strengthen the role of criminal networks in elections.

Important Constitutional & Judicial Linkages

• Article 326: Universal adult suffrage.
• Article 14: Equality and the need for a level electoral playing field.
• Article 19(1)(a): Right to information has implications for transparency in political funding.
• Free and fair elections:Recognised as part of the Basic Structure in Indira Nehru Gandhi v. Raj Narain (1975).
• Kanwar Lal Gupta v. Amar Nath Chawla (1974): Financial disparity can distort electoral competition.
• PUCL v. Union of India (2013):NOTA linked to the voter’s freedom to express electoral choice.
• ADR v. Union of India (2024): Supreme Court struck down the Electoral Bonds Scheme, emphasising transparency in political funding.
• Public Interest Foundation v. Union of India (2018): Highlighted concerns over criminalisation of politics.
• Vohra Committee (1993): Examined the criminal–political nexus.