Complaint: App developers & industry groups alleged Google used its dominance in the Android ecosystem to promote its own services and block fair competition.
CCI Investigation: Began in 2020; concluded in 2022 that Google abused market dominance.
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Key Allegations by CCI
1. Mandatory Google Play Billing System (GPBS):
Developers had to use GPBS for in-app sales.
Commissions: 15–30%.
Rival billing systems were blocked.
2. Favouritism to YouTube:
Exempted from GPBS fees, giving YouTube a cost edge.
3. App Bundling:
OEMs forced to pre-install Google apps (Search, Chrome, YouTube) to get Play Store access.
Reduced consumer choice and discouraged competition.
Penalty & Directions:
Fine: ₹936.44 crore.
Orders: Decouple GPBS from Play Store, ensure billing transparency, avoid using billing data to promote own services.
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Google’s Defence
Android is open-source & free — OEMs can skip Google apps if they skip Play Store.
Bundling apps = efficiency & convenience, not restriction.
GPBS ensures security, reduces fraud, offers global reach.
Commission fees are industry standard.
YouTube exemption due to different business model.
Indian apps like PhonePe & Paytm prove market is competitive.
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NCLAT’s Partial Ruling
March 2025:
Upheld abuse finding on GPBS & app bundling.
Reduced fine to ₹216.69 crore.
Dropped some remedies.
May 2025 Review:
Reinstated 2 directions: billing transparency + ban on using billing data for self-advantage.
Result:
Google, CCI, and ADIF all dissatisfied → moved to Supreme Court.
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What’s at Stake
For Consumers:
CCI win → more app choices, cheaper payments, better privacy.
But risk of Android fragmentation, inconsistent experiences.
For OEMs:
More freedom to pre-install rival apps & use alternative Android versions.
Could help smaller Indian brands.
For Startups:
Level playing field, more payment options, less bias in app promotion.
ADIF: Chance to curb Big Tech dominance.
For Google:
Loss in India could trigger global regulatory crackdowns.
May force unbundling & open billing system — hits business model.
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Why the Supreme Court Verdict Matters
Will define “abuse of dominance” in India’s tech markets.
Affects 95%+ of Indian smartphones running Android.
CCI win: India could emerge as a global leader in strong digital market regulation.
Google win: Keeps current market structure intact.
Current Scenario: A Vast but Fragmented Welfare Ecosystem
India’s social security network is extensive, but scattered across over 34 major social protection schemes, 24 pension schemes, and numerous state-level programmes. While these initiatives cumulatively reach over 100 crore beneficiaries (central + state), the International Labour Organisation (ILO) notes that coverage—when factoring in state schemes—still only reaches 48.8% of the population.
Key features today:
Populist welfare trends:
Example: Bihar recently raised pensions for elderly, widowed, and disabled citizens from ₹400 to ₹1,100 ahead of elections.
Such measures offer short-term relief but rarely address structural gaps.
Institutional capacity:
EPFO (30 crore accounts; 8 crore active contributors) and ESIC already deliver large-scale benefits.
Legal framework:
Laws such as the EPF Act, ESIC Act, BOCW Act, and Maternity Benefit Act form the backbone of formal social security.
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Key Challenges
1. Fragmentation & Duplication:
Overlapping databases (e.g., E-Shram vs EPFO) and state “rebranding” of central schemes.
2. Beneficiary Identification:
Scattered entitlements, no unified ID across schemes, and poor interoperability.
3. Consumption-Oriented Transfers:
Benefits often go toward immediate consumption rather than skill-building or asset creation.
4. Fiscal Sustainability:
G20 commitments require that social security be financially viable in the long term.
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Reform Vision: One Nation, One Social Security Governance
Learning from global models:
Brazil – Fome Zero & SUAS: Unified framework regulating and organising social assistance nationwide.
South Korea: Consolidated under the National Pension Service & National Health Insurance Service.
Proposed Indian framework:
Federated, incentive-driven model:
Centre runs core schemes; states add top-ups instead of duplicating benefits.
Unified delivery via EPFO’s UAN:
Route cash transfers through a single beneficiary ID.
Allocate part of transfers into PF, pension, and insurance for long-term security.
Digital-first integration:
Use Digital India Stack, Aspirational Districts Programme, and PM Gati Shakti for efficient targeting.
Employment-linked incentives:
Launch Employment Linked Incentive Scheme via EPFO to create 3.5 crore jobs in 2 years.
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Way Forward
1. Integration & Interoperability:
Centralised beneficiary database with cross-scheme linkages.
2. Rights-based Guarantee:
Minimum social security for all, insulated from electoral cycles.
3. Productive Transfers:
Link welfare benefits to skill training, education, and employability.
4. Political Consensus:
Achieve bipartisan agreement for a federated reform model.
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Conclusion
By 2047, India can evolve from a fragmented welfare network to a unified, technology-driven social security system that ensures dignity, equity, and opportunity for all. This “one government” approach will be central to building a Viksit Bharat—where inclusive growth and economic resilience go hand in hand.
The Supreme Court of India is currently hearing Nipun Saxena & Anr. vs Union of India, a PIL examining whether the age of “consensual” sexual relationships under the Protection of Children from Sexual Offences (POCSO) Act, 2012 should be lowered from 18 years. The debate brings to the forefront questions of child protection, adolescent sexual autonomy, societal norms, and the heightened vulnerability of marginalised girls.
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Current Legal Framework
POCSO Act, 2012: Criminalises all sexual activity with persons under 18, regardless of consent.
Legal Position: Even “consensual” sexual activity involving a minor is treated as sexual exploitation.
Impact: Many POCSO prosecutions involve romantic adolescent relationships rather than coercion or abuse.
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Key Issues in the Debate
1. Vulnerability of Marginalised Girls
Many adolescent girls enter sexual relationships as a means to escape domestic violence, sexual abuse, or caste/gender discrimination.
Arrest and prosecution of their partners under POCSO often lead to:
Forced pregnancies
Confinement in shelter homes
Return to abusive households
2. Judicial & Social Contradictions
Calcutta High Court acquitted a man in a consensual relationship with a 16-year-old, acknowledging the non-exploitative nature but noting legal contradictions.
NCRB Data: Mandatory reporting has increased recorded cases from 8,541 (2012) to 53,874 (2021).
Praja Foundation:
54% of POCSO cases involved partners, friends, or known persons.
Many linked to elopement, refusal of marriage, and subsequent abandonment.
3. Child Marriage & Socio-Cultural Drivers
2022 Data: 1.6 million child marriages recorded; fewer than 900 cases registered.
Drivers include:
Brahminical patriarchy
Poverty & lack of education
Fear of premarital sex and loss of “family honour”
Early marriage as a perceived safety net
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The Consent Dilemma
Defining Consent in Adolescence
Consent can be enthusiastic, reluctant, manipulated, revoked, or misunderstood.
Courts struggle to uniformly interpret consent among minors.
POCSO does not differentiate between coercive and non-coercive adolescent relationships.
The Elopement Paradox
Girls who elope face:
Social isolation
Threats from family/community
Legal prosecution of partners
Stigma from pregnancy and disrupted education
Rarely applied: extending the concept of consent to relationships involving guardians, due to dependency and fear.
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Implications of Lowering the Age of Consent
Risks
May reduce visibility of abuse against minors.
Could normalise exploitation of vulnerable girls.
Risk of weakening legal safeguards.
Policy Challenge
A uniform lowering without socio-economic safeguards could harm adolescents, particularly from marginalised backgrounds.
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Way Forward
Context-Sensitive Reform: Amend POCSO to distinguish between exploitative and non-exploitative adolescent relationships.
Sex Education: Introduce comprehensive, age-appropriate, and gender-sensitive curricula in schools.
Community Awareness: Target norms around child marriage, sexuality, and gender discrimination.
Support Systems:
Technology-enabled confidential reporting
Survivor-centric legal aid
Rehabilitation and reintegration support
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Conclusion
A calibrated approach to the age of consent is essential—one that shields children from exploitation while avoiding the blanket criminalisation of consensual adolescent relationships. Legal reform must go hand-in-hand with socio-economic measures, ensuring India’s justice system evolves to protect both the dignity and the rights of its youth.
India has marked a significant energy milestone with the nationwide rollout of E20 fuel—petrol blended with 20% ethanol—five years ahead of the original 2030 target. Celebrated as a step toward energy self-reliance and lower carbon emissions, the transition supports sugarcane farmers, reduces the crude import bill, and aligns with the country’s climate goals.
However, this green shift has sparked concerns over reduced fuel efficiency and potential vehicle damage, particularly among owners of older vehicles. As India pushes ahead with ethanol blending, the trade-offs between macroeconomic benefits and individual user impacts are becoming increasingly visible.
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Ethanol Blending: Policy Context
Ethanol, derived from sugarcane, maize, and other biomass, is a renewable biofuel that, when blended with petrol, lowers tailpipe emissions and reduces fossil fuel dependency. The Ethanol Blended Petrol (EBP) Programme, launched in 2003, picked up pace in the last decade:
2022: India achieved 10% ethanol blending (E10).
2025: Full rollout of E20 nationwide.
The shift aligns with broader renewable energy commitments under the National Bio-Energy Programme and aims to boost domestic biofuel production, reduce oil imports, and promote rural income through crop diversification.
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Environmental and Economic Gains
The E20 initiative promises major environmental and economic dividends:
Crude oil import bill reduction of over ₹50,000 crore annually.
Lower CO₂ emissions, aiding climate commitments.
Increased income for farmers, especially sugarcane growers and feedstock suppliers.
Yet, for vehicle owners, fuel economy and engine health are growing concerns—especially in older or non-E20-compliant vehicles.
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Fuel Efficiency: Mileage Matters
One of the most debated drawbacks of ethanol blending is reduced mileage. Ethanol contains ~30% less energy per litre than petrol, leading to more fuel consumed per kilometre.
Government view: The Ministry of Petroleum & Natural Gas (MoPNG) claims mileage loss is “marginal”—1-2% for E10 vehicles calibrated for E20, and 3-6% for others.
Expert view: Independent analysts estimate real-world mileage losses of 6-7%, especially in older or non-calibrated engines. This translates into higher fuel costs and more frequent refuelling.
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Vehicle Health: Corrosion and Compatibility
Ethanol’s hygroscopic nature (absorbs moisture from air) raises red flags for long-term engine and component durability:
Metal corrosion: Fuel tanks, lines, injectors, and exhausts.
Rubber degradation: Gaskets, seals, hoses.
Combustion issues: Ethanol alters air-fuel ratios, affecting performance in vehicles without updated ECUs.
Experts warn that older vehicles—especially two-wheelers and entry-level cars not designed for E20—may face increased wear and higher maintenance costs.
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Industry Response: Adaptation in Motion
Automakers are adjusting to the ethanol era:
Hero MotoCorp: Vehicles built before April 2023 may require engine modifications and component upgrades to handle E20 safely.
TVS Motor: Acknowledges ethanol’s corrosive nature and has re-engineered parts for compatibility.
Most new vehicles are now E20-compliant, but service advisories for legacy models are being rolled out to assist consumers during the transition.
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What Lies Ahead: Beyond E20?
With E20 now the national standard, policymakers and industry stakeholders are eyeing higher ethanol blends (E30, E40). But such a move presents significant challenges:
Need for dual-fuel infrastructure at retail pumps.
Retrofitting or phasing out older vehicles.
Greater consumer awareness and regulatory clarity.
Without proper planning and safeguards, further blending could amplify consumer burden—especially for lower-income vehicle owners.
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Conclusion
The nationwide shift to E20 marks a bold and necessary step toward energy sustainability. Yet, it also underscores the need for balance—between climate goals and consumer costs, between energy independence and infrastructure readiness.
For now, transparency, proactive adaptation, and consumer education will be key to ensuring this biofuel transition is not only green—but also just.
U.S. President Donald Trump’s controversial remarks branding India a “dead economy” and announcing 25% tariffs—alongside proposed penalties for India’s defense and energy deals with Russia—have ignited a political firestorm. Opposition parties in India were quick to seize upon the comments, blaming the current government for “killing” the economy. The government, in turn, defended its record, citing India’s rise from the “fragile five” to becoming the world’s fifth-largest economy.
While Trump’s statement is a diplomatic provocation, economic data tells a more nuanced story—India is no “dead economy,” but its impressive headline growth often masks deeply entrenched structural problems.
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Data Contradicts Trump’s “Dead Economy” Claim
If growth is the metric, then India’s performance over the last three decades challenges any suggestion of stagnation. Between 1995 and 2025, India’s GDP expanded nearly 12 times, compared to a fourfold increase in the United States and even lower growth among America’s traditional allies—such as the UK, Germany, and Japan.
Japan’s GDP in 2025 is projected to be lower than in 1995, while India’s economic rise has been one of the few standout stories of the global south. Even Russia, facing sanctions and conflict, has grown substantially, defying the “dead economy” label. The International Monetary Fund (IMF) data starkly contrasts the political rhetoric coming from Washington.
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India Among Few Economies Outpacing the U.S.
India is also one of the few major economies to have expanded its global economic footprint relative to the United States. From being just 5% the size of the U.S. economy in 1995, India is now nearly 14% of its size. Only China and Russia have managed a similar expansion in global economic share.
In contrast, America’s close allies—Germany, the UK, and Japan—have seen their relative economic clout diminish. In terms of long-term dynamism, India remains among the fastest-growing economies, bolstered by domestic consumption, a young population, and a vibrant services sector.
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But Structural Fault Lines Run Deep
Yet, economic growth in India has often been mistaken for economic health. The decade after the 2008 global financial crisis has been marked by a significant growth slowdown. India has failed to return to the pre-crisis high-growth trajectory of 8–9%, with recent years seeing a more modest 6% average.
Its share in global goods trade remains a paltry 1.8%, and even services—where India performs better—contribute just 4.5% to global exports. The failure to develop a strong, labor-intensive manufacturing base has left agriculture burdened with surplus labor and rural distress. Since 2019–20, manufacturing has underperformed even agriculture in growth rates.
Meanwhile, glaring inequalities remain unresolved. Nearly one-fourth of India’s population still lives below the poverty line. The top 10% of earners capture more than 57% of national income. Human development indicators—from nutrition and education to health and gender equality—lag behind India’s economic peers. Youth unemployment, especially among educated graduates, is alarmingly high. Female labor force participation remains among the lowest in the world.
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Conclusion: A Growing Economy with Unmet Potential
India is not a “dead economy,” and the data proves it. But it is also far from being a fully healthy one. Its economy is alive—growing, even thriving on the surface—but struggling underneath with deep, systemic challenges. Dismissing India’s economic achievements entirely is inaccurate, but celebrating them without addressing its flaws is equally dangerous.
As global geopolitics heats up and strategic autonomy becomes central to India’s foreign and economic policy, it is time to not just defend India’s economic record but to reform it—boldly and equitably.
As India positions itself as the fastest-growing major economy, the financial health of its states—a critical pillar of public spending and development—deserves closer attention. The recently released Provisional Actuals (PA) for FY2025 from 17 major Indian states, covering nearly 90% of the country’s GDP, offer a telling picture: a widening fiscal deficit, a sharp rise in revenue deficit, and concerning trends in capital expenditure. The implications for FY2026 and beyond are not just fiscal but fundamentally economic.
A Widening Gap and Shrinking Room for Growth
The fiscal deficit of these states rose to ₹9.5 trillion in FY2025, or 3.2% of GSDP—up from ₹7.8 trillion (2.9%) in FY2024. This deterioration is not merely cyclical but structural, driven primarily by a doubling of the revenue deficit from ₹1.1 trillion to ₹2.1 trillion. This signals a disturbing trend: states are increasingly borrowing not to build assets or invest in the future, but to finance their day-to-day expenditure.
Such a skewed fiscal mix limits the scope for productive capital investment, which is essential for infrastructure, job creation, and long-term economic capacity. The capex share in total fiscal deficit has fallen below the desirable 80–90% trend seen in the past three years. This shift threatens the sustainability of state finances and dilutes the multiplier effect of government spending.
The March Madness of State Capex
Although states spent ₹7.4 trillion on capital expenditure in FY2025—an increase of ₹678 billion from the previous year—much of this spending came in a last-minute surge in March 2025. A staggering 30% of annual capex was crammed into a single month, raising concerns over efficiency, quality, and purpose. Are states spending to develop or merely to exhaust their allocations and justify borrowings?
Such back-loaded spending not only strains execution capacity but also triggers spikes in state government securities borrowing, distorting debt markets and interest rates.
Dependency Dilemma: Role of Centre’s Capex Loans
The rise in capex would have been even weaker without the Centre’s interest-free capex loan scheme, which disbursed ₹1.5 trillion in FY2025, of which 17 states received ₹1.13 trillion. This amount funded over 40% of the incremental capex in FY2025 for these states.
While the scheme has incentivized investment, it also exposes a deeper issue: the growing dependence of states on central support for even basic capital spending. This dependence questions the fiscal autonomy of states and underscores their limited ability to raise and manage their own revenues.
Looking Ahead: Ambition Meets Arithmetic
States have budgeted a record ₹9.5 trillion in capital outlay for FY2026, representing a 29.2% increase over FY2025. But this projection appears over-ambitious, given that the average incremental capital spending over the past three years was just ₹1 trillion. Achieving this would require not just better financing, but a fundamental shift in planning, capacity, and execution.
Simultaneously, looming challenges from Finance Commission recommendations, the end of GST compensation cess, and impending Pay Commission revisions could significantly squeeze state finances further. Without careful calibration, fiscal stress may spiral into developmental stagnation.
The Reform Imperative
It is time for a strategic rethink. States must realign spending priorities toward asset creation, boost their own tax revenues, and rationalize subsidies and populist schemes. The Centre, for its part, must encourage and reward fiscal discipline, transparency, and capital efficiency rather than just absolute outlays.
India’s federal fiscal architecture needs a reset—one that promotes long-term sustainability over short-term showmanship. For a nation chasing a $5 trillion economy and beyond, the fiscal health of its states must be treated not as a background detail but as a frontline priority.
As Washington sharpens its rhetoric against Moscow, threatening secondary sanctions on countries continuing trade with Russia, India has found itself squarely in the geopolitical spotlight. But rather than retreat under pressure, India is doing what any sovereign nation should: standing firm in defense of its national interest.
Petroleum Minister Hardeep Singh Puri and the Ministry of External Affairs (MEA) have rightly emphasized that India’s energy security cannot be hostage to geopolitical double standards. With oil imports diversified across 40 countries and a clear policy of sourcing based on affordability and availability, India’s position is pragmatic—not provocative.
The immediate provocation came from two fronts. First, U.S. President Donald Trump announced a 50-day deadline for Russia to end its war in Ukraine, threatening secondary sanctions on its trade partners, including India. Second, NATO chief Mark Rutte joined the chorus, urging Delhi to “do more” in isolating Russia, with a thinly veiled warning of economic consequences.
Let’s be clear: this pressure is not rooted in moral clarity but in Western frustration. Two years of sanctions have failed to cripple the Russian economy, largely because of continued trade with India, China, Brazil, and others. For the West, India is a convenient pressure point. But for India, this is a test of strategic maturity.
India’s imports of Russian crude—$4.42 billion in May 2025 alone—have brought tangible economic benefits: cheaper fuel, controlled inflation, and stability for a growing economy. Even as India trades with Russia, it continues to strengthen its ties with the U.S., particularly in technology, defense, and clean energy. These are not contradictions—they are the realities of a multipolar world.
Ironically, the proposed U.S. sanctions would do more harm to Washington’s own interests than to India’s. They would derail ongoing trade negotiations, weaken trust between two key democracies, and risk isolating India at a time when counterbalancing China is supposedly a shared priority. Not to mention, such a move could roil global oil markets, hurting American and European consumers alike.
India must now walk a careful line—but not a submissive one. This is a moment to assert energy sovereignty, deepen strategic autonomy, and work with other like-minded countries to resist unilateral economic coercion.
The world is no longer unipolar. India is no longer peripheral. And in this emerging order, no country—however powerful—should expect others to choose between principle and pragmatism. India will choose both. And it will choose them on its own terms.
India has long celebrated its demographic dividend. With one of the world’s youngest populations and millions of graduates entering the job market each year, it should be a global human capital powerhouse. Yet, the irony is stark: India is producing the most graduates, but not enough employable professionals.
Recent data from the Employees’ Provident Fund Organisation (EPFO) and the India Employment Report 2024, co-published by the ILO and Institute for Human Development, paints a troubling picture. The disconnect between degrees and deployment is deep—and growing.
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A Youth-Heavy Workforce Struggles to Find Work
The EPFO, which tracks formal sector employment, has recorded encouraging signs of post-pandemic recovery. The 18–25 age group, especially those between 18 and 21, now form 18%–22% of new EPFO subscribers—a clear indicator of improving formalisation. But beneath this statistical uptick lies a worrying truth.
Youth comprise 83% of India’s unemployed population, with joblessness highest among the most educated. The problem isn’t just unemployment—it’s unemployability. As the Economic Survey 2023–24 highlighted, only 50% of Indian graduates are considered job-ready.
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The Digital Skills Crisis
The India Employment Report 2024 uncovers a severe digital skills gap:
75% struggle to send emails with attachments.
Over 60% can’t perform basic file operations.
90% lack spreadsheet skills.
These aren’t advanced programming skills—they’re basic competencies. In a world racing toward AI, data analytics, and automation, this level of digital illiteracy isn’t just a handicap—it’s a crisis.
The World Economic Forum’s Future of Jobs Report 2025 estimates 170 million new jobs will be created globally by 2030, with 92 million displaced, leading to a net gain of 78 million. India can be a winner in this shift—but only if it gets its skilling act together.
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What Needs to Change: Structural and Policy Reforms
To transform this crisis into an opportunity, India needs more than short-term training programs or catchy schemes. It needs deep structural reform:
1. Education-Industry Convergence
Make industry-academia collaboration mandatory for all higher education institutions.
Link accreditation and ranking to placement outcomes, not just research citations.
Ensure that real-world skills and job-market trends shape curricula.
2. Curriculum Overhaul
Introduce Idea Labs and Tinker Labs in all schools and colleges.
Make soft skills, foreign languages, and humanities part of core training—essential for global employability.
Shift away from rote learning to project-based, interdisciplinary education.
3. Global Skilling Perspective
India must not just train for domestic needs but for global demand—particularly in ageing countries like Germany, Japan, and Canada.
Expand projects like the India–EU Link4Skills, which prepares Indian youth for European labor markets.
Encourage cross-border certification, language learning, and skills mobility.
4. Institutional Overhaul
Establish an Indian Education Services (IES) cadre—similar to IAS—for top educational policy talent.
Incentivise industry professionals to teach, bridging the gap between theory and practice.
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The Stakes: From Demographic Dividend to Demographic Drag
India’s young population should be its greatest asset. But without urgent investment in digital literacy, vocational training, and global skills, it risks becoming a demographic drag. Degrees without deployment, education without employment, is a recipe for economic and social instability.
What’s needed is coordinated action across ministries, sectors, and states. From digitally upskilling youth to holding educational institutions accountable for outcomes, India must build a seamless pipeline from college to career.
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Conclusion: Act Now, or Lose the Edge
The clock is ticking. The world is retooling its workforce for an AI-driven future, while India’s graduates struggle with email attachments and spreadsheets. This is more than a mismatch—it’s a missed opportunity.
India must reimagine its education and employment systems—because in the race for global relevance, skills—not just size—will define success.
India and the Future of the Green Revolution: Why CIMMYT Still Matters
Introduction
In 1968, William S. Gaud of USAID coined the term “Green Revolution” to describe agricultural breakthroughs like India’s adoption of high-yielding wheat varieties. Decades later, the very institutions behind this transformation face new challenges. With the recent closure of USAID under the Trump administration, global research centers like CIMMYT are now turning to major beneficiaries like India for support.
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CIMMYT: The Cradle of Modern Wheat
CIMMYT (International Maize and Wheat Improvement Center), based in Mexico, has been instrumental in developing high-yielding wheat varieties.
Linked to Norman Borlaug, the father of the Green Revolution, it produced semi-dwarf wheat strains such as Sonora 63 and Lerma Rojo 64A, first introduced to India in the 1960s.
Funded initially by the Rockefeller Foundation and Mexican government, CIMMYT came to rely heavily on USAID, which contributed $83 million of its $211 million funding in 2024.
With USAID now dismantled, CIMMYT seeks a larger financial partnership with India.
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Wheat and Rice Research as Cold War Strategy
CIMMYT and IRRI (International Rice Research Institute in the Philippines) were Cold War tools, designed to boost food security in developing nations and curb communist influence.
Their high-yield crops mitigated famines and stabilized political conditions in Asia, Africa, and Latin America.
Borlaug’s wheat varieties transformed India’s yields from 1–1.5 tonnes/ha to 4–4.5 tonnes/ha, while IRRI’s rice strains did the same for paddy fields.
Borlaug was awarded the 1970 Nobel Peace Prize for these contributions.
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India’s Green Revolution and its Champions
Indian researchers adapted CIMMYT material into iconic varieties like Kalyan Sona and Sonalika in the late 1960s.
At IARI (Indian Agricultural Research Institute), scientists later developed top-yielding wheat strains like HD 2285, HD 2329, and HD 2967.
In rice, India’s own breakthroughs like Swarna and Samba Mahsuri came from Andhra Pradesh Agricultural University.
IARI also revolutionized basmati rice, producing Pusa Basmati 1, 1121, and 1509, which dominated India’s $5.94 billion basmati exports in 2024–25.
M.S. Swaminathan’s leadership and institutional strength were key to India’s success.
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Why India Still Needs CIMMYT and IRRI
In 2024–25, 6 of India’s top 10 wheat varieties covering over 20 million hectares used CIMMYT germplasm.
The last major India-bred variety, HD 2967, peaked years ago; newer releases rely heavily on international collaboration.
CIMMYT and IRRI’s expertise in climate-resilient crops, gene editing, nitrogen use efficiency, and AI-driven breeding remains vital for future food security.
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Conclusion: Time for India to Step Up
Despite benefitting enormously, India contributed only $0.8 million to CIMMYT and $18.3 million to IRRI in 2024. With USAID gone, India has both the opportunity and responsibility to help sustain these global research institutions.
However, increased international funding must be complementary, not a substitute for strengthening India’s own research system. Strategic investment in science—both at home and globally—is essential for navigating the food security challenges of the 21st century.
India today stands tall on the world stage—an emerging economic giant, a digital innovator, and the youngest nation by population. These are achievements worth celebrating. Yet, beneath this rising arc lies a sobering truth: India ranks 131 out of 148 countries on the World Economic Forum’s Global Gender Gap Report (2025).
This is not just a number. It is a warning.
Despite progress in education and technology, gender inequality continues to undercut India’s development, particularly in two critical areas: economic participation and health outcomes. If this imbalance isn’t urgently addressed, India risks stalling—or even reversing—its hard-earned gains.
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A Crisis in Plain Sight
India’s low performance in the domains of economic participation and health reveals a deep structural crisis. Educational attainment for women has improved, yes—but that progress has not translated into economic empowerment or physical well-being.
Consider the numbers: 57% of Indian women aged 15–49 are anaemic, impairing their ability to learn, earn, and bear children safely. Meanwhile, the sex ratio at birth remains alarmingly skewed, a result of entrenched cultural preferences for sons.
And while women comprise nearly half the population, they contribute only about 18% to India’s GDP. Many are kept out of the formal workforce entirely. Those who do participate earn less than a third of what men earn.
This is not only unjust—it’s economically self-defeating.
A McKinsey Global Institute report once estimated that bridging the gender gap could add $770 billion to India’s GDP by 2025. That year has arrived, and the goal has slipped out of reach. Not due to lack of potential—but because of policy paralysis and systemic neglect.
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The Invisible Workforce
What’s even less visible—but equally damaging—is the massive burden of unpaid care work shouldered by women.
According to India’s own Time Use Survey, women perform nearly seven times more unpaid care work than men. This includes cooking, cleaning, childcare, and elder care—labour that keeps families and communities running, but is neither counted in GDP nor compensated in public policy.
This invisibility fuels economic exclusion. It keeps millions of women trapped in cycles of dependency, despite their skills and potential.
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The Clock Is Ticking: Demographic Shifts Demand Action
India’s demographic window is closing fast. The country currently enjoys a young and productive workforce—but by 2050, the proportion of elderly citizens will double. Many will be older women, especially widows, who often face greater economic hardship.
At the same time, fertility rates are falling below replacement levels, suggesting a future decline in the working-age population.
This double demographic pressure—rising dependency and a shrinking workforce—means that India cannot afford to exclude half its population from full economic participation.
Gender equality is no longer a “women’s issue.” It is an economic strategy. It is a demographic necessity.
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Moving From Slogans to Systems
India does not lack ambition. It has a long list of gender-focused policies, laws, and declarations. What it lacks is implementation, investment, and systemic reform.
Here’s what must change:
Public healthcare systems must prioritise preventive and reproductive health services for women.
Care infrastructure—including childcare, elder care, and maternity support—must be expanded and funded.
Gender-responsive budgeting must become standard practice, guided by real-time time-use and employment data.
Most importantly, women must be positioned as active builders of the economy, not passive beneficiaries of welfare.
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A Call to Action
India’s dream of becoming a global superpower will remain incomplete if it leaves its women behind.
This is not just a moral imperative—it is a strategic one. No economy can thrive when it sidelines half its talent, half its energy, and half its voice.
The time for token gestures is over. The time for transformative action is now.
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If India wants to lead the world tomorrow, it must start by empowering its women today.
The Indian government recently claimed that India is now the world’s fourth most equal country, citing a Gini Index of 25.5 from the World Bank’s Poverty and Equity Brief. According to the statement, this figure reflects that the benefits of economic growth are being shared more equitably. Only the Slovak Republic, Slovenia, and Belarus reportedly rank higher.
However, this claim has sparked skepticism among economists and researchers, many of whom argue that India remains highly unequal—both in terms of income and wealth. The Gini Index, which measures inequality on a scale of 0 (perfect equality) to 1 (perfect inequality), is widely used but often misunderstood or misapplied.
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Key Issues with the Government’s Claim
1. Data Discrepancy and Omitted Caveats
The World Bank’s Gini Index of 25.5 is based on consumption data, not income or wealth.
The Poverty and Equity Brief explicitly warns that inequality may be underestimated due to data limitations.
In contrast, the World Inequality Database (WID)—which incorporates income tax records and wealth data—reports that India’s income Gini rose from 52 in 2004 to 62 in 2023.
WID also notes that in 2023–24, the top 10% of earners made 13 times more than the bottom 10%.
Consumption-based measures track household spending, not earnings or asset accumulation.
Wealthier households save a higher share of their income, which flattens the consumption curve and masks real inequality.
This is why comparing India’s consumption-based Gini with other countries’ income-based Ginis is misleading.
3. Survey Data Fails to Capture the Ultra-Rich
Standard surveys miss critical parts of the income spectrum due to:
Differential Non-Response: Wealthy individuals are less likely to respond to household surveys.
Sampling Bias: Survey methods rarely capture the top 1%, whose wealth heavily skews inequality metrics.
This underrepresents actual inequality, especially at the top.
Researchers often use blended methods—combining surveys with tax and financial records—to get a clearer picture.
4. Structural Limitations of the Gini Index
The Gini Index is less sensitive to inequality at the extremes—it underrepresents the impact of both the very rich and the very poor.
It tends to reflect middle-income group changes more than those at the margins.
As Nobel Laureate Abhijit Banerjee has pointed out, the Gini is difficult to interpret in isolation, and broader trends suggest inequality is rising globally, including in India.
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The Case for Broader Measures
A true picture of inequality in India requires a mix of:
Income data
Wealth data
Consumption data
Reliance solely on consumption-based Gini indices creates a false narrative of equity.
Accurate assessments should incorporate:
Income tax returns
Corporate profit shares
Ownership of assets like land, housing, and financial instruments
Policymakers must recognize these disparities to design effective, inclusive economic policies.
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Conclusion
While the government’s use of a low Gini Index might paint a rosy picture, it obscures the deeper realities of inequality in India. The gulf between the rich and the poor is widening, and any serious attempt to bridge it must begin with a comprehensive, multidimensional view of inequality—not a selective one.
In a significant global alert, the Financial Action Task Force (FATF) has revealed how digital platforms—ranging from online payments and e-commerce to VPNs and social media—are being increasingly exploited for terrorist financing. Its latest report, Comprehensive Update on Terrorist Financing Risks, specifically mentions the 2019 Pulwama and 2022 Gorakhnath Temple attacks as case studies of such misuse.
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🔍 What is FATF?
Full Name: Financial Action Task Force
Established: 1989 at the G7 Summit in Paris
Headquarters: Paris, France (at the OECD)
Members: 39 (37 countries + European Commission & Gulf Cooperation Council)
India: Became a full member in 2010
Primary Objectives:
Develop global policies to combat money laundering (ML) and terrorist financing (TF)
Promote implementation of its 40 Recommendations across jurisdictions
Monitor country compliance through Mutual Evaluations
Identify and list high-risk countries (Grey and Black Lists)
Support legal and regulatory reforms globally
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📱 Digital Tools Misused in Terror Attacks
1. Pulwama Attack (2019)
Misuse: E-commerce
Details: Aluminum powder used in the IED was purchased through Amazon
Terror Group: Jaish-e-Mohammed
FATF Concern: Easy access to dual-use materials via online platforms
2. Gorakhnath Temple Attack (2022)
Misuse: VPNs and Online Payments
Details:
Attacker used VPNs to mask his identity online
Transferred ₹6.69 lakh (~$7,736) internationally via PayPal
Received and sent funds to ISIL-linked individuals
PayPal later suspended the suspicious account
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🧠 Key Observations from FATF Report
Platforms at Risk: Messaging apps, crowdfunding portals, social media, and mobile wallets
State Involvement: Certain unnamed countries reportedly support terrorist networks through funding and logistical aid
Use of regional hubs, local resources, and self-financed terror cells
Terrorist groups like AQIS operating independently within South Asia
Storage Mechanisms:
Gold/jewellery used by individuals to store and move small amounts of terror funds
Trade-based and informal value transfer systems like hawala
Other Financing Methods:
Wildlife smuggling, human trafficking, narcotics trade
Shell companies, donations, crowdfunding
Ransom, extortion, and misuse of non-profits
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⚠️ A Wake-Up Call for Digital Oversight
The FATF’s analysis underscores the urgency of regulating digital infrastructure to prevent its misuse for terrorism. With decentralized terror networks adapting to modern financial tools, authorities worldwide must ensure stronger:
KYC norms (Know Your Customer)
Monitoring of digital transactions
Real-time data-sharing across borders
Oversight of e-commerce and online marketplaces
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🔚 Conclusion
The Pulwama and Gorakhnath case studies are stark reminders of how technological advancement, while transformative, can also be exploited for nefarious purposes. The FATF’s report serves as a global call to action: digital platforms must be made resilient against terrorist financing through vigilant oversight, policy reform, and international cooperation.
The Union Cabinet has approved the ₹99,446 crore Employment-Linked Incentive (ELI) Scheme, announced in the 2024–25 Union Budget, aimed at boosting formal job creation, especially in the manufacturing sector. The ELI scheme is part of the Prime Minister’s broader five-part employment package, which also includes internships with major companies and skill development initiatives for youth.
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Key Provisions of the Employment-Linked Incentive (ELI) Scheme
Implementation Period: August 1, 2025 – July 31, 2027
Implementing Agency: Employees Provident Fund Organisation (EPFO)
Incentive: Up to ₹3,000/month per new employee retained for at least 6 months, for 2 years
Manufacturing Sector Advantage: Incentives extend to the 3rd and 4th year
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Employers’ Response to the ELI Scheme
Industry bodies have largely welcomed the scheme, terming it a “laudable initiative” to promote first-time employment and sustained job creation, particularly in manufacturing.
Key Recommendations from Industry:
Inclusion of micro and small enterprises, especially units with fewer than 20 employees
Consider shifting implementation to the Ministry of MSME for broader reach
Adoption of a structured reimbursement model based on verified payroll growth
Provision of direct monthly subsidies to both employers and employees, tied to continued employment
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Trade Union Response and Concerns
Trade union reactions have been mixed:
Bharatiya Mazdoor Sangh (BMS): Welcomed the scheme but urged expanding social security and improving job quality
Other Central Trade Unions: Strong criticism, highlighting several concerns
Primary Concerns:
Risk of Misuse of Funds: Fear that workers’ savings could indirectly subsidise employers
Lessons from PLI Scheme: Past schemes reportedly favoured large firms without significant job creation
EPFO’s Role Questioned: EPFO is primarily a savings custodian, not equipped for employment generation
Demand for a Dedicated Agency: Unions propose creating a specialised body to oversee the scheme
Additional Concerns:
Quality vs Quantity Trade-off: Risk of firms prioritising headcount over skill and productivity
Short-Term Employment Risks: Temporary hiring spikes to exploit incentives without long-term retention
Implementation and Verification Challenges: Need for robust systems to prevent fraud and data manipulation
MSME Exclusion: Compliance-heavy processes may favour large firms, sidelining MSMEs which employ the majority of India’s workforce
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Conclusion:
While the ELI scheme is seen as a significant step to spur formal employment, especially in manufacturing, its success hinges on inclusive design, robust verification, protection of worker interests, and ensuring long-term, quality job creation.
India’s poverty levels have garnered global attention recently. In April 2025, the government cited a World Bank report claiming 171 million Indians escaped extreme poverty over the past decade. Later, updated World Bank estimates stated that only 5.75% of Indians now live in abject poverty, down from 27% in 2011–12.
But behind these figures lies a complex narrative about how poverty is defined and measured in India.
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Understanding the Poverty Line
A poverty line is an income threshold that distinguishes the poor from the non-poor within a society. However:
It varies across countries and time periods.
It reflects local costs of living and consumption patterns.
No single, universal poverty line exists.
Different organisations and governments adopt varying benchmarks based on context.
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Why India Uses the World Bank’s Poverty Line
India’s last official poverty benchmark comes from the Tendulkar Committee (2009), based on 2011–12 data. Though the Rangarajan Committee (2014) proposed updates, they were never formally adopted.
Given outdated national data, India relies on:
NITI Aayog’s Multidimensional Poverty Index
The World Bank’s internationally comparable poverty line
These provide interim indicators in the absence of updated domestic estimates.
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About the World Bank’s Global Poverty Line
The World Bank poverty line uses Purchasing Power Parity (PPP) to enable fair global comparisons.
Key Evolution:
1990: $1/day standard based on 1985 prices.
Adjustments followed global price increases.
June 2025: New poverty line set at $3/day (PPP).
For India:
PPP Rate (2025): ₹20.6/USD
Extreme Poverty Line: ₹62/day
⚠️ Note: A common misconception is converting $3 using market rates (~₹85/USD), which misrepresents actual poverty thresholds.
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Key Insights from Latest World Bank Data
Revised Historical Estimates: India’s 1977–78 poverty was 47%, not the previously reported 64%.
New Benchmark: $3/day PPP line adopted.
Poverty Trends:
2011–12: 27% lived in extreme poverty.
2022–23: Below 6%.
Number lifted out of poverty: From 34.4 crore to 7.5 crore people.
In a landmark moment for India’s space program, Group Captain Shubhanshu Shukla successfully piloted the Axiom-4 mission aboard SpaceX’s Dragon capsule, which lifted off from Florida’s Kennedy Space Center. With this mission, Shukla became the first Indian in 41 years to cross the Kármán line, the internationally recognized boundary of space located 100 kilometers above sea level.
Prime Minister Narendra Modi congratulated Shukla, describing him as the first Indian en route to the International Space Station (ISS), and called the achievement a proud milestone for the nation.
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India’s Human Spaceflight Milestone and the Road Ahead
Shukla’s participation in Axiom-4 marks the beginning of a new phase in India’s space journey, where human spaceflight is expected to become routine, much like India’s established satellite launch capabilities.
Gaganyaan Program: Renewed Urgency and Strategic Vision
While India’s space agency ISRO missed its initial 2022 target for human spaceflight, the Gaganyaan program has injected fresh urgency and strategic clarity into India’s space agenda. The program represents more than scientific ambition; it is a cornerstone of India’s aspiration to achieve technological, economic, and geopolitical advantages in space exploration.
India’s Active Role in the Axiom-4 Mission
Unlike earlier instances where Indian astronauts participated as passengers, the Axiom-4 mission showcased India’s growing technical leadership:
A significant ISRO team, including Chairman V. Narayanan, played an instrumental role in mission planning, operations, and problem-solving.
This mission marks India’s emergence as an equal partner in international human spaceflight efforts, enhancing its credibility within the global space community.
Building Foundations for Future Missions
The experience and expertise gained from Axiom-4 will directly support:
The first indigenous crewed Gaganyaan mission, scheduled for launch by 2027.
Long-term national objectives, including the establishment of an Indian space station and sending astronauts to the Moon by 2040.
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Space: A Strategic and Economic Frontier for India
As space emerges alongside artificial intelligence, quantum computing, and clean energy as a defining technology of the future, its economic and strategic implications cannot be overstated.
India’s Global Space Leadership
India has achieved a strong position among global space powers; however, maintaining this edge demands sustained innovation and competitiveness against established players such as the United States and China.
Unlocking Economic Potential through Space
Despite its technological achievements, India contributes only around 2% to the global space economy, indicating significant room for growth:
Expanding private-sector participation can unlock business opportunities, stimulate investment, and help India capture a larger share of the global space market.
Strengthening the domestic space ecosystem can support high-value industries, generate employment, and foster scientific innovation.
Inspiring Future Generations
Human spaceflight serves as a powerful source of national inspiration:
Shukla’s mission is expected to motivate young Indians to pursue careers in science, engineering, and space technology.
A thriving space sector can drive broader innovation, enhance India’s technological self-reliance, and position the country as a global leader in advanced research and development.
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Conclusion: From Symbolism to Strategic Progress
Group Captain Shubhanshu Shukla’s historic journey aboard Axiom-4 represents more than a symbolic achievement. It marks the beginning of a new chapter where India leverages space exploration as both a strategic tool and an economic catalyst.
As the nation builds upon this milestone, there lies an opportunity to accelerate space ambitions, foster global partnerships, and cement India’s position at the forefront of humanity’s expansion into outer space.
The legislation outlines stringent eligibility and procedural safeguards to ensure the law is applied only in carefully defined circumstances:
Eligibility Criteria:
Individuals must be 18 years or older.
Must be resident in England or Wales and registered with a GP for at least 12 months.
Must have a terminal illness with a life expectancy of six months or less.
Must have mental capacity to make an informed and voluntary decision.
Required to make two formal declarations, each witnessed, confirming the wish to die.
Evaluations must be conducted by two independent doctors, with assessments spaced at least seven days apart.
Procedure:
A 14-day waiting period is required after the second declaration.
A doctor prepares the life-ending medication, but it must be self-administered by the individual.
It is a criminal offence to pressure or coerce someone into assisted dying, carrying a penalty of up to 14 years in prison.
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Political and Public Reactions
The bill’s passage reflects a deeply divided political and societal landscape:
The bill passed with 314 votes in favour and 291 against, a narrow margin of 23 votes.
Prime Minister Keir Starmer publicly supported the bill, calling it a step toward compassionate healthcare reform.
Health Secretary Wes Streeting opposed it but affirmed respect for Parliament’s decision, citing the free vote tradition, which allows MPs to vote based on personal conscience rather than party mandate.
The bill sparked widespread public engagement:
Supporters, under banners like Dignity in Dying, argued for compassionate choice and the right to die with dignity.
Opponents, including religious groups and disability rights organisations, raised concerns about a potential “National Suicide Service” and the risks to vulnerable individuals.
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Ethical and Legal Debates
The bill raises complex ethical and legal questions:
Proponents argue that it:
Respects individual autonomy and self-determination.
Prevents unnecessary suffering.
Ends the need for terminally ill people to travel abroad (e.g., to Switzerland) for assisted dying.
Critics caution that it:
Could lead to subtle coercion of the elderly or disabled.
Risks normalising suicide.
Might shift focus away from investments in palliative care and emotional support.
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Global Context: Comparative Legal Status
The UK joins a growing list of jurisdictions revisiting assisted dying laws:
Canada: Legal under specific medical and ethical safeguards.
Belgium & Netherlands: Allow both assisted dying and euthanasia.
Australia: Permitted in some states like Victoria and Western Australia.
United States: Legal in select states such as Oregon, Washington, and California.
Switzerland: Allows assisted suicide, which has made it a hub for “death tourism”.
Conclusion
The passage of the Assisted Dying Bill by the UK House of Commons marks a transformational moment in the nation’s approach to terminal care and human dignity. While hailed by some as a humane policy that empowers the dying, others view it as a risky shift with deep moral consequences. As the bill advances to the House of Lords, it will undoubtedly fuel continued debate—testing the limits of legal reform, societal compassion, and ethical responsibility.
The Ministry of Statistics and Programme Implementation (MoSPI) will update the GDP base year from 2011–12 to 2022–23.
Revised GDP data series will be released on February 27, 2026.
Base years for Index of Industrial Production (IIP) and Consumer Price Index (CPI) will also be updated to 2022–23 and 2023–24, respectively.
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🔍 Why Revise the GDP Base Year?
1. More Accurate Measurement
Ensures GDP reflects the current structure of the economy.
Needed for sound policymaking, investment decisions, and planning.
2. Changing Economy
India has shifted from an agrarian economy to a services-dominated one (55%+ of GDP).
New sectors (like digital services) require updated data and methods.
3. Better Data & Methods Available
Enhanced surveys, administrative data, and global statistical best practices justify revisions.
Broader sectoral coverage and more refined estimation techniques.
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✅ Benefits of Regular Revisions
Captures real economic changes (e.g., growth in digital economy, decline in informal sector).
Improves inflation adjustment, giving a truer picture of real GDP.
Helps align national accounts with international standards (like those from the UN and IMF).
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🕰️ Why the Last Revision Was Delayed
✖️ Failed 2017–18 Attempt:
PLFS showed high unemployment → political controversy.
CES data suggested declining consumption → never released.
GST & Demonetisation created economic distortions → made 2017–18 unsuitable.
🦠 COVID-19 Disruptions:
The pandemic caused abnormal economic patterns, delaying a meaningful update.
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🌍 Why This Revision Is Crucial for India
📉 Trust and Credibility Issues:
The 2015 revision was heavily criticised for inflating GDP growth.
Failure to revise the base year since 2011–12 created data gaps and trust deficits.
💹 High-Stakes Global Moment:
India is on track to become the 3rd largest economy globally.
Investors and global institutions will closely examine new GDP numbers.
Transparent, credible statistics will influence:
Investor confidence
International rankings
India’s economic reputation
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🧩 Final Takeaway
The upcoming GDP base year revision is more than a statistical exercise—it’s a critical reset for India’s economic data credibility, essential for informed policymaking, investor trust, and global stature.
The 16th Finance Commission (FC) has reopened critical debates on India’s fiscal federalism. Indian states, citing declining effective fiscal autonomy, are demanding an increase in their share of the divisible tax pool—from the current 41% to potentially 50%. This comes amid growing concerns over shrinking shareable resources, the nature of transfers, and the quality of state-level public spending.
Background: Decline in States’ Effective Share
14th FC (2015–20): Increased states’ share to 42%.
15th FC (2020–25): Reduced to 41% due to J&K reorganization.
Shrinking divisible pool:
Rise in cesses and surcharges (non-shareable) has curtailed actual transfers.
According to RBI data, the shareable pool dropped from 88.6% (2011–12) to 78.9% (2021–22), reducing the states’ effective share to around 32% of gross tax revenue.
Key Issues for the 16th Finance Commission
1. Union Government’s Fiscal Constraints:
Larger devolution shrinks the Centre’s fiscal space.
The union continues to borrow heavily for transfers and CSS obligations.
Political pressures to maintain CSS limit flexibility in rationalizing expenditures.
2. Tied vs Untied Transfers:
States want more united funds to enhance autonomy.
However, untied transfers risk financing revenue expenditure over capital formation.
Rationalizing CSS is politically and administratively challenging.
3. Spending Quality and Fiscal Discipline at State Level:
Rising revenue deficits: Many states are borrowing to fund recurring expenditures.
Populist spending: Expansion of cash transfer schemes (0.6% of GDP) risks fiscal stability.
Risk that untied funds may not be used for productive investments.
Equity and Efficiency Concerns
Inter-State Disparities:
States like Bihar spend far less than richer states, exacerbating inequality.
Untied funds may not automatically lead to equitable service delivery unless accompanied by accountability.
Third-Tier Devolution:
Panchayats and municipalities remain underfunded.
States show reluctance in devolving both funds and functions.
Increased state share should ideally cascade down to empower local bodies.
Conclusion and Way Forward
The 16th Finance Commission must balance:
Enhancing state autonomy without compromising the Centre’s fiscal sustainability.
Encouraging productive, equitable, and efficient spending over populist expenditure.
Strengthening genuine federalism through greater local empowerment.
This demands a nuanced approach addressing not only the vertical and horizontal distribution of resources but also reforming institutional mechanisms to monitor fiscal responsibility and incentivize outcome-based governance.
A day before the US reciprocal tariffs take effect on April 2, India has agreed to the Terms of Reference (ToR) for a Bilateral Trade Agreement (BTA) with the US. The ToR sets the negotiation framework and required high-level approval.
While discussions were still ongoing when US negotiators left after four days of talks, both countries are now set for formal negotiations.
India-US Trade Agreement Developments
US Criticism of India’s Trade Policy
The USTR’s Foreign Trade Barriers report criticizes India’s policies, including:
Internet Shutdowns disrupting commerce.
Dairy Feed Regulations and GM Food Import Rules, which the US argues lack scientific backing.
Agricultural Support Programs distorting markets and unpredictable pulse import restrictions.
Data Localization Rules, which the US claims hinder foreign firms.
Medical Price Controls on coronary stents and knee implants discouraging American manufacturers.
India-US Bilateral Trade Overview
2024 Trade Value: $129.2 billion.
US Exports to India: $41.8 billion (↑3.4%).
US Imports from India: $87.4 billion (↑4.5%).
US Trade Deficit with India: $45.7 billion (↑5.4%).
Proposed India-US Trade Agreement
Aim: Increase market access, lower tariffs, and integrate supply chains.
The US seeks duty reductions on industrial goods, automobiles, petrochemicals, and dairy.
India may push for textile sector concessions.
US Tariff Pressure and India’s Response
The US, under Trump, criticized India’s “brutal” tariffs and proposed reciprocal tariffs.
India’s Countermeasures:
Negotiating exemptions.
Expanding Make in India to attract global manufacturers.
Strengthening trade with the EU, Southeast Asia, and Africa.
Diversifying trade markets to reduce reliance on the US.
Potential Benefits for India:
Supply chain shifts due to US-China tensions.
Growth in electronics, automobiles, and pharmaceuticals.
Increased opportunities for Indian automakers.
Conclusion: Balancing Trade and Geopolitics
India’s response will depend on the impact of US tariffs. With a strategic partnership beyond trade, both nations must balance economic interests with broader geopolitical considerations.
The Banking Laws (Amendment) Bill, 2024 aims to modernize and strengthen the governance, operational flexibility, and customer convenience in India’s banking sector. It addresses key issues related to nominees, governance structures, unclaimed funds, and substantial interest thresholds.
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Key Features of the Bill
1. Up to Four Nominees for Deposits
Bank account holders can now appoint up to four nominees (successively or simultaneously), increasing flexibility in estate planning.
Earlier, only one nominee was allowed, creating legal complexities in case of disputes.
2. Revised Definition of ‘Fortnight’
For cash reserve calculations, the new definition follows fixed calendar periods:
1st to 15th
16th to month-end
The previous Saturday-to-Friday format was considered outdated and operationally rigid.
3. Extended Director Tenure in Co-operative Banks
Directors can now serve for 10 consecutive years (up from 8 years).
The change aims to improve leadership stability in co-operative banks.
4. Dual Directorship in Co-operative Banks
A director of a central co-operative bank can now serve on the board of a state co-operative bank if they are a member.
This seeks to enhance coordination and strategic alignment between co-operative banks.
5. Increased ‘Substantial Interest’ Threshold
Shareholding threshold for substantial interest raised from ₹5 lakh to ₹2 crore.
This reflects inflation adjustments and the growing size of the banking sector.
6. Unclaimed Funds Transfer to IEPF
Unclaimed dividends, shares, and bond payments older than seven years will be transferred to the Investor Education and Protection Fund (IEPF).
This aligns with corporate governance norms for unclaimed assets.
7. Bank Autonomy in Auditor Pay
Banks can now independently decide the remuneration of their auditors.
Previously, the RBI and the Central Government determined auditor pay, limiting operational flexibility.
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News Summary
The Bill was passed by the Rajya Sabha on March 26, 2025 after a four-hour debate involving over 20 MPs. The discussion highlighted both the benefits and concerns associated with the Bill.
✅ Government’s Arguments
Banking Sector Performance:
Public sector banks reported a record profit of ₹1.41 lakh crore in FY 2023–24.
NPAs have significantly reduced under government reforms post-2014.
Action Against Fraud:
Over 912 bank fraud cases involving wilful defaulters are under investigation by the ED.
Loan write-offs are accounting adjustments, not waivers—banks still pursue recovery.
Improved Financial Inclusion:
Expansion of financial services through Jan Dhan Yojana and direct benefit transfers.
❌ Opposition’s Concerns
1. Wilful Defaulters & Loan Write-offs
₹87,000 crore owed by top 50 defaulters (including Mehul Choksi and Rishi Agarwal) was written off.
Harsh recovery actions against small borrowers continue despite large write-offs for big defaulters.
2. Need for Deeper Scrutiny
Amending five major laws at once without detailed parliamentary review raised transparency concerns.
Opposition demanded a Joint Parliamentary Committee (JPC) for deeper examination.
3. Rising NPAs
Indian banks are still burdened with over ₹10 lakh crore in NPAs over the last five years.
A small group of influential defaulters is reportedly behind most of these NPAs.
4. Issues in Co-operative Banks
Over 4,000 financial fraud cases reported in co-operative banks in five years.
Outdated infrastructure and weak governance remain unresolved.
5. Static ₹2 Crore Threshold
Opposition suggested linking the ₹2 crore threshold for substantial interest to inflation for future-proofing.
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Government’s Counterpoints
The Bill introduces reforms aimed at improving governance and customer convenience.
Strengthening co-operative banks will promote financial stability at the grassroots level.
Financial inclusion and technological upgrades are ongoing priorities.
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Conclusion
The Banking Laws (Amendment) Bill, 2024 represents a significant shift in India’s banking regulations, focusing on:
Enhanced customer convenience
Greater governance flexibility
Improved financial accountability
While the reforms are largely positive, unresolved issues surrounding large-scale NPAs, wilful defaulters, and co-operative bank governance remain critical challenges for long-term sectoral stability.
Recently, the Government of India has revealed in Parliament that laws which declare a section of criminals as “habitual offenders” continue to operate in as many as 14 States and Union Territories.
Habitual offender laws in India allow state authorities to identify and monitor individuals convicted of certain crimes repeatedly. These laws were intended to control repeat offenders, but have come under heavy criticism for institutionalising discrimination, especially against denotified, nomadic, and semi-nomadic tribes (DNT, NT, SNT). These communities have historically been labelled as “criminal tribes” during British rule. As of March 2025, the Government of India confirmed in Parliament that such laws continue to operate in 14 States and Union Territories, despite the Supreme Court’s recent observations questioning their constitutional validity and discriminatory application.
Historical Roots: From Criminal Tribes to Habitual Offenders:
The origins of these laws date back to colonial legislation: Regulation XXII (1793) granted magistrates power to imprison or force labour on certain communities based merely on suspicion. This evolved into the Criminal Tribes Act (CTA) of 1871, which allowed the British to declare entire communities as “criminal by birth”. The CTA was extended in 1924 to cover all of colonial India. Post-independence, following the Criminal Tribes Enquiry Committee Report (1949-50), the CTA was repealed in 1952, and communities previously criminalised were officially denotified. However, states soon introduced Habitual Offender Acts, which, while framed around individual behaviour, continued to disproportionately target DNTs.
Supreme Court’s Intervention and Recent Developments:
In October 2024, the Supreme Court expressed concern over the habitual offender classification while addressing caste-based discrimination in jails. The bench, led by then-Chief Justice D.Y. Chandrachud, highlighted that: “A whole community ought not to have either been declared a criminal tribe in the past or a habitual offender in the present.” The court “urged” states to review the relevance and application of these laws, especially when they appear to be tools for profiling entire communities.
Crimes Under the Habitual Offender Tag:
State laws define habitual offenders based on prior convictions for specific offences, including: “Being a thug” “Belonging to a gang of dacoits” “Living on the earnings of prostitution” Various forms of “lurking” These laws typically involve maintaining registers of such offenders, which continue to echo the registration practices under the CTA. In states like Rajasthan, prison manuals even explicitly link habitual offender status to denotified communities.
Impact on Denotified and Nomadic Tribes:
Despite formal denotification, DNTs remain vulnerable to police surveillance, social ostracization, and systematic exclusion. In 1998, the custodial death of Budhan Sabar, a member of a denotified tribe, sparked national outrage and gave rise to the Denotified and Nomadic Tribes Rights Action Group (DNT-RAG). Several activists worked to document the injustice, prompting action from the NHRC, and later, the United Nations Committee on the Elimination of Racial Discrimination, which called for repeal of these laws in 2007. Several reports, including the B.S. Renke Commission (2008) and the Xaxa Committee (2014), have emphasized how the stigma of criminality persists, further marginalising DNTs from education, employment, and social integration.
Current Status Across States:
Reactions from states to the Supreme Court’s observation have been mixed: Punjab and Odisha report no active use of the law in recent years. Andhra Pradesh has no inmates under the law currently. Gujarat and Goa support retaining the law, claiming it is not used to target DNTs. Uttar Pradesh subsumed these provisions under its Goondas Act. Delhi leads in application: as per NCRB 2022, 21.5% of its convicts were classified as habitual offenders, the highest in the country.
Importance of Repeal:
Critics argue that the habitual offender laws: Perpetuate colonial-era stigma and discrimination. Enable targeted policing of marginalised communities. Violate fundamental rights, including equality (Article 14) and freedom of movement (Article 19). Contradict India’s commitments to racial and caste-based non-discrimination under international human rights law. A uniform repeal across all states would be a long-overdue step toward justice and inclusion for DNT, NT, and SNT communities.
Conclusion:
India’s habitual offender laws may appear neutral on paper, but their colonial legacy and discriminatory enforcement have made them tools of oppression against vulnerable communities. With growing judicial scrutiny and consistent recommendations from rights commissions, the time has come for a nationwide review and repeal of these outdated laws. Empowering denotified and nomadic tribes requires not just policy reforms, but a conscious dismantling of inherited prejudices, starting with the removal of systemic legal discrimination.
A recent global survey by The Future of Free Speech, a U.S.-based think tank, ranked India 24th out of 33 countries on support for free speech, with a score of 62.6. The report, titled “Who in the World Supports Free Speech?”, highlights a mixed global trend where support for free speech is declining, although India presents unique contradictions between public perception and actual free speech conditions.
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Global Trends in Free Speech
Top and Bottom Rankings:
Norway (87.9) and Denmark (87.0) ranked highest for free speech support.
Hungary (85.5) and Venezuela (81.8), despite authoritarian tendencies, ranked high due to public support for free expression.
Indonesia (56.8), Malaysia (55.4), and Pakistan (57.0) showed notable improvements despite ranking lower overall.
India’s Position:
India’s score of 62.6 places it between South Africa (66.9) and Lebanon (61.8).
The report reflects a disconnect between public confidence in free speech and the actual legal and political environment.
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Key Findings About Free Speech in India
1. Public Support vs. Reality:
While most Indians express support for free speech, backing for criticizing government policies is significantly lower than the global average.
37% of Indian respondents agreed that the government should prevent criticism of its policies—the highest among surveyed countries (compared to 5% in the U.K. and 3% in Denmark).
2. Perception vs. Global Rankings:
Indians believe that their ability to speak freely has improved, but international assessments indicate weakening free speech protections.
India is categorized as a country undergoing “democratic backsliding” alongside Hungary and Venezuela.
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Challenges to Free Speech in India
1. Legal and Political Restrictions:
Sedition Law:
Section 124A of the IPC (sedition) was removed under the new Bharatiya Nyaya Sanhita (BNS) but replaced with Section 152, which penalizes actions that incite secession, armed rebellion, or threaten national unity.
Unlawful Activities (Prevention) Act (UAPA):
Criticized for being used to silence journalists, activists, and opposition figures.
IT Rules 2021:
Grants broad government authority over social media, raising censorship concerns.
2. Rise in Self-Censorship:
Fear of legal action and online harassment discourages open expression.
Media outlets face pressure from political and economic interests, resulting in biased or cautious reporting.
3. Selective Tolerance for Free Speech:
While free speech is supported in principle, opposition arises when speech challenges political or religious beliefs.
Arrests of activists, journalists, and comedians reflect inconsistent application of free speech protections.
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Way Forward
1. Strengthening Legal Protections:
Repeal or revise outdated sedition and UAPA provisions.
Enhance judicial oversight to prevent misuse of laws against dissent.
2. Promoting Open Debate:
Encourage educational institutions and media to foster diverse discussions.
Political parties should commit to upholding free speech, even when critical of their policies.
3. Enhancing Media and Digital Freedom:
Protect journalists from political and corporate pressures.
Ensure social media regulations do not lead to arbitrary censorship.
4. Aligning Perception with Reality:
Raise awareness about constitutional free speech rights.
Encourage fact-based discussions on government policies and public issues.
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Conclusion: India’s mixed performance in the Free Speech Index reflects strong public belief in free expression but highlights significant political and legal challenges. Strengthening protections for dissent, reducing political interference, and aligning public perception with reality will be key to improving India’s standing on global free speech metrics.
Online Gaming in India: Challenges and the Way Forward
Introduction
The Indian online gaming industry has seen impressive growth over the last few years, becoming a key driver of the digital economy. With over 650 million smartphone users and a large, young population, India is well-positioned to become a global hub for skill-based gaming.
A PwC report estimated that the sector, valued at ₹33,000 crore in 2023, is expected to grow at a CAGR of 14.5%, reaching ₹66,000 crore by 2028.
The industry currently employs around 2 lakh people and is projected to generate an additional 2-3 lakh jobs in the coming years. However, the sector faces significant challenges due to high taxation and regulatory confusion, which threaten to stifle its growth.
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The Burden of High Taxation
Despite some states like Karnataka and Telangana introducing supportive policies for the Animation, Visual Effects, Gaming, and Comics (AVGC) sector, the overall taxation framework remains burdensome:
A 28% GST on online gaming — the same rate applied to gambling, alcohol, and tobacco — creates an uneven playing field.
This classification ignores the distinction between skill-based gaming and gambling.
A massive retrospective tax demand of ₹1.12 lakh crore has further strained the industry, particularly affecting small and mid-sized companies.
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Legal Confusion: Gaming vs. Gambling
The legal treatment of online gaming has been inconsistent, with several states attempting to ban it by equating it with gambling:
Courts have repeatedly ruled that games of skill cannot be classified as gambling.
In 2025, the Supreme Court stayed the retrospective GST demand, providing temporary relief.
However, the lack of a clear legal distinction between skill-based gaming and gambling continues to create an unpredictable business environment.
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Challenges Faced by the Industry
1. Excessive Taxation
The 28% GST makes Indian gaming companies less competitive globally.
2. Legal Uncertainty
Frequent bans and legal battles discourage investment and innovation.
3. Lack of Distinction Between Gaming and Gambling
Failure to differentiate skill-based games from gambling causes regulatory confusion.
4. Threat to Small Startups
High compliance costs and retrospective tax demands are pushing smaller companies toward closure.
5. Growth of Offshore Illegal Gambling
Strict regulations on domestic firms could drive users to illegal offshore platforms, which are harder to regulate.
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The Way Forward: A Balanced Regulatory Approach
Instead of overregulating, the government should work with industry leaders to create a transparent and supportive framework. A balanced approach would unlock the industry’s full potential while addressing social concerns like addiction and financial security.
Key Recommendations
✅ Rationalize GST rates to distinguish between skill-based gaming and gambling. ✅ Drop the retrospective tax demand to prevent industry collapse. ✅ Create a clear legal framework that defines the difference between gaming and gambling. ✅ Encourage responsible gaming practices through in-app features and self-regulation. ✅ Strengthen monitoring mechanisms to curb illegal gambling without penalizing legitimate businesses.
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Conclusion
India’s online gaming industry is poised to drive significant economic growth, job creation, and technological advancement. However, excessive taxation and inconsistent regulations are stifling its potential. A well-balanced regulatory framework — one that encourages innovation while protecting consumers — will allow the sector to thrive in the global market.
The National Statistical Office (NSO) released updated national accounts data on February 28, 2025, detailing India’s economic growth trends and sectoral performances.
Key Highlights:
Q3 2024-25 GDP Growth: Increased to 6.2% (up from 5.6% in Q2).
Agriculture: Strong at 5.6%.
Manufacturing: Improved from 2.1% (Q2) to 3.5%.
Services: Rose from 6.1% (Q2) to 6.7%.
Challenges and Projections:
Q4 Growth: Estimated at 7.6%, but achieving this depends on increased Private Final Consumption Expenditure (PFCE) and government investment.
PFCE growth needed: 9.9% — unlikely given recent trends.
Government needs to spend ₹2.61 lakh crore in the last two months to meet capital expenditure targets — historical spending suggests this is doubtful.
Annual GDP Revisions:
2022-23: Revised to 7.6% (real GDP).
2023-24: Revised up to 9.2% (from 8.2%) due to higher manufacturing and financial services growth.
2024-25: Estimated at 6.5%, reflecting reduced investment activity.
Future Prospects (2025-26 and Beyond):
Expected real GDP growth: 6.3%–6.8%.
Strong government and private investment needed to sustain growth.
Focus on increasing the savings rate and improving investment efficiency for long-term growth.
Conclusion:
India’s 2024-25 growth shows resilience but faces headwinds from lower private consumption and investment. Achieving future growth targets will require stronger capital expenditure and a boost in private sector confidence.
The Fiscal Health Index 2025, launched by Arvind Panagariya, Chairman of the 16th Finance Commission, offers insights into the fiscal stability and sustainability of Indian states. The assessment is based on critical parameters like capital outlay, revenue surplus, debt-to-GSDP ratio, and expenditure quality.
This detailed summary of the Fiscal Health Index (FHI) Report 2025 underscores its importance as a comprehensive tool for evaluating state-level fiscal performance in India. Here’s a concise breakdown:
Purpose of FHI
Framework to assess the fiscal health of 18 major Indian states.
Focuses on transparency, revenue mobilization, and sustainable public financial management.
Five Sub-Indices:
1. Quality of Expenditure: Measures allocation to key areas like health and education.
2. Revenue Mobilization: Evaluates states’ efficiency in generating tax and non-tax revenues.
3. Fiscal Prudence: Assesses fiscal deficits and effective resource use.
4. Debt Index: Examines debt levels and management.
5. Debt Sustainability: Looks at the long-term viability of debt vis-à-vis economic growth.
Top Performers (2022–23):
1st: Odisha
Strong debt management and capital expenditure strategies.
2nd: Chhattisgarh
Revenue growth from mining; solid debt metrics.
3rd: Goa
High tax efficiency and robust non-tax revenue generation.
Aspirational States:
Punjab, Kerala, and West Bengal struggled with:
High debt burdens.
Poor revenue mobilization.
Key Insights by Sub-Index:
Quality of Expenditure:
Leaders: Madhya Pradesh, Chhattisgarh (focused on health and education).
Laggards: Punjab, Rajasthan (low capital expenditure).
Revenue Mobilization:
Leaders: Odisha, Goa, Chhattisgarh (non-tax revenues like mining).
Struggles: Bihar, West Bengal (reliance on central transfers).
Transparency: Strengthen fiscal responsibility and reporting mechanisms.
Conclusion:
The FHI 2025 acts as a benchmark for states, spotlighting fiscal discipline and areas for improvement. By addressing challenges in debt management, revenue mobilization, and expenditure quality, states can drive inclusive and sustainable growth. With NITI Aayog’s guidance, the FHI sets the stage for transformative fiscal reforms, ensuring India’s economic resilience.
India’s maritime sector plays a pivotal role in its economic growth and global trade positioning, with an extensive 7,500-kilometer coastline and strategic location along key international shipping routes.
Overview of India’s Maritime Sector
Significance: Handles 95% of India’s trade by volume and 70% by value.
Infrastructure: 12 major ports and over 200 minor ports anchor the sector.
Performance: Cargo-handling capacity increased by 87% since 2014-15, reaching 819.22 million tonnes in FY24.
Policy Support: 100% FDI, tax incentives, and schemes such as Sagarmala and MIV 2030 contribute to modernization and growth.
Key Developments
1. Efficiency Gains: Reduction in container turnaround time to 22.57 hours in FY24.
2. Fleet Expansion: Target to add 1,000 ships by 2047.
3. Paradip Port: Became the largest port in FY24, handling 145.38 million tonnes of cargo.
4. Mega Investments:
US$ 82 billion planned for port infrastructure by 2035.
6. Panch Karma Sankalp: Focus on green shipping, digitization, and smart port development.
Government Schemes Boosting Maritime Growth
Sagarmala Programme: ₹3,714 crore allocated for 130 port-led development projects.
Maritime India Vision 2030: A comprehensive roadmap to position India as a global maritime leader.
Inland Waterways Development: Expansion of 26 national waterways to reduce road and rail congestion.
Green Tug Transition Program (GTTP): Aims for eco-friendly tugs by 2040.
Future Investments and Transformations
Required Investments:
$1 trillion by 2047 to fully harness the sector’s potential.
₹5 lakh crore by 2030 for modernization and growth.
Green Hydrogen Hubs: To be established at Paradip, Tuticorin, and Kandla ports to decarbonize shipping.
Global Ship Recycling Leader: Compliance with the Hong Kong Convention positions India as a hub for ship recycling.
Economic Contributions
Port capacity is expected to grow sixfold to 10,000 MT per annum by 2047.
Major ports currently handle 820 MMT of cargo annually, a 47% increase since 2014.
Development of mega ports like Vadhavan (Maharashtra) and Galathea Bay (Nicobar) to enhance trade routes.
Operational Efficiency
Container dwelling time: Reduced to 3 days.
Vessel turnaround time: Improved to 0.9 days, surpassing global benchmarks.
Global Recognition: Nine Indian ports are featured in the World Bank’s Container Port Performance Index 2023, with Visakhapatnam ranking in the top 20.
Challenges and Opportunities
Challenges: Need for skilled labor, sustainable fuel adoption, and meeting net-zero targets.
Opportunities: Expansion of shipbuilding and repair industries, green shipping initiatives, and inland waterway development.
Reports and Insights
At the FICCI Maritime Conference 2025, the FICCI-CRISIL report, “Forging New Horizons: The Growth of India’s Shipbuilding and Repair Industry,” highlighted India’s potential to emerge as a global hub for shipbuilding and repairs.
India’s maritime sector, with strategic policies, modernization, and sustainable initiatives, is poised to become a global leader in trade and logistics.
If the proposed Trump tariffs hit then Dollar index could cross 115.
– Chinese will depreciate their currency readily & for the rest of the EM’s there would be no choice but to fall in line. – Rupee which has already crossed 86.5, could then potentially fall to 90 or more. -These tariffs would be inflationary too. Which would mean FED wont be cutting rates this CY. – Markets are not factoring in that scenario & everyone is overjoyed with the inflation cooling down. – Bond yields in US have started to rise & already are at 4.7. This is after FED has cut the rates by 100 bps. – Greenland, Canada are other variables which will play out. If that happens, the might dollar will soar even further.
Interesting times ahead in the new regime.
The worry is that soon rupee might break 90. Central bank has apparently spent $50 billion dollars defending the rupee but to no avail … now the policy is to let rupee find its own value.
FII are relentless in their selling and have sold almost 45000 cr just this month. That is adding pressure to the Rupee.
With new US govt imposing tariffs , the dollar is likely to strengthen hence further causing pressure on emerging market currencies.
Sitting on cash in the Indian market could be a strategic choice depending on your financial goals and the prevailing economic and market conditions. Here’s a breakdown of factors to consider:
When Sitting on Cash Makes Sense
1. Market Volatility: If the stock market is highly volatile or there’s uncertainty due to global or domestic factors (e.g., interest rate hikes, geopolitical tensions), holding cash can provide flexibility.
2. High Valuations: When markets are overvalued (e.g., Nifty PE ratios are historically high), it might be prudent to wait for better buying opportunities.
3. Economic Indicators: If inflation is rising or the Reserve Bank of India (RBI) is increasing interest rates, returns on fixed-income instruments (FDs, bonds) may become more attractive compared to equities.
4. Better Fixed-Income Opportunities: If savings accounts, fixed deposits, or money market funds offer good returns (e.g., 6-8%), keeping cash in liquid assets can yield risk-free returns.
5. Preparedness for Opportunities: Having cash allows you to act quickly when markets are correct or if there are sector-specific opportunities.
Risks of Sitting on Cash
1. Opportunity Cost: Long-term equity investments typically outperform cash and fixed-income returns. Staying out of the market may result in missed growth.
2. Inflation Erosion: High inflation can erode the purchasing power of your cash if returns are not adjusted for inflation.
3. Market Timing Risks: Timing the market is inherently risky. Waiting for a correction might result in missing a rally.
Balanced Approach
1. Diversify: Allocate funds across equities, bonds, gold, and liquid assets based on your risk appetite and investment horizon.
2. Gradual Investment: Use strategies like Systematic Investment Plans (SIPs) or Systematic Transfer Plans (STPs) to invest gradually.
3. Keep an Emergency Fund: Hold 3-6 months of expenses in cash or liquid assets for emergencies, and invest the rest strategically.
The G20 Independent Expert Group has issued a report card assessing the progress made by Multilateral Development Banks (MDBs) in expanding lending capacity and mobilising private capital.
This assessment highlights the gap between current achievements and the ambitious “triple agenda” needed to meet global development and sustainability goals.
The expert group had been set up under the G20 Indian Presidency and had Fifteenth Finance Commission Chairman NK Singh and former US Treasury secretary Lawrence Summers as co-convenors.
Here’s a breakdown of today’s article:
1. What are Multilateral Development Banks (MDBs)?
MDBs are institutions that offer loans, grants, and assistance to promote social and economic development in low- and middle-income countries.
Major MDBs include the World Bank Group, Asian Development Bank, African Development Bank, and Inter-American Development Bank.
Historically, MDBs have worked to reduce poverty, develop infrastructure, and boost human capital. However, global challenges now demand reforms to enable MDBs to support sustainable and inclusive growth more effectively.
2. Why is Reforming MDBs Essential?
Outdated Frameworks: Many MDBs were established post-WWII and now require modernized frameworks to address current global needs.
Limited Private Financing Engagement: MDBs are expected to mobilize $740 billion annually from the private sector for sustainable development, yet they secured only around $70 billion in the last year.
Limited Local Currency Lending: While there have been advances in risk mitigation tools, local currency lending—a crucial support for developing economies—remains limited.
3. Key Recommendations for MDB Reforms
Triple Mandate for MDBs: The report suggests a new mandate emphasizing (1) poverty elimination, (2) inclusive growth, and (3) financing for sustainable development and climate goals.
To meet this, MDBs need to triple their financial commitments, establish a “Global Challenges Funding” mechanism, and increase private sector involvement.
Expanding Lending Capacity: MDBs have already increased lending capacity by 33% through improved balance sheet management and other innovations, but further expansion is needed.
Capital Mobilization Innovations: MDBs have introduced hybrid capital options and non-voting shares to attract more financing, but uptake has been limited.
Private Sector Involvement: Reforms in MDB culture and collaboration with private investors and rating agencies are essential to attract private capital.
4. Way Ahead to Strengthen MDBs
Enhancing Performance and Relevance: MDBs should offer flexible, tailored solutions to better align with diverse national needs and sectoral requirements.
Improving Governance: Strengthened governance with increased transparency and accountability is needed to boost MDB credibility, especially for developing countries.
Climate Financing and Concessional Financing: MDBs have increased climate-related financing, with commitments reaching $75 billion in 2023, reflecting a significant step forward.
MDB Coordination: Better coordination among MDBs, including standardized procurement and digital project platforms, will enable more efficient project collaboration.
Conclusion
The G20 report card reflects on both MDB accomplishments and reform gaps. Though lending capacity and private sector involvement have improved, more reforms are required to achieve the ambitious goals of the “triple agenda.”
With India’s leadership, there is an opportunity to push for a more inclusive, responsive MDB framework, better suited to the needs of the Global South and sustainable development worldwide.
This assessment highlights the urgency of MDB reforms to meet evolving global demands, emphasizing the role of expanded capacity, private sector engagement, and adaptive governance.
The article focuses on new guidelines introduced by the Central Consumer Protection Authority (CCPA) in India to prevent companies from making false or misleading environmental claims, a practice known as “greenwashing.” These rules require companies to provide scientific evidence for any claims they make about their products’ environmental benefits. The guidelines are an extension of the broader effort to regulate misleading advertisements, particularly focusing on environmental claims.
Greenwashing Overview:
Definition: Greenwashing refers to deceptive practices by companies or governments, where they make dubious or exaggerated claims about their environmental efforts.
Impact: It distorts public understanding of climate progress and rewards bad behavior, such as corporations overstating their environmental impact.
Examples: Major cases include the Volkswagen emissions scandal, and accusations against companies like Shell and Coca-Cola for overhyping their eco-friendly activities.
Key Highlights of New Guidelines:
Definition of Greenwashing in Advertising: The guidelines define it as the act of concealing or exaggerating information regarding environmental benefits through misleading words, symbols, or imagery.
Allowance for Hyperbole: Claims using obvious exaggeration are allowed as long as they do not mislead. For example, general claims like adhering to “sustainable principles” are fine, but specific claims about sustainability need evidence.
Use of Generic Terms: Terms like “eco-friendly” or “green” must be backed by evidence.
Clarification of Technical Terms: Companies must explain technical terms in a way that consumers can easily understand.
Scientific Evidence for Specific Claims: Claims like “plastic-free” or “compostable” must be substantiated by scientific data or certification.
Applicability: These guidelines apply to manufacturers, service providers, advertising agencies, and endorsers. They aim to curb greenwashing by ensuring environmental claims are truthful and verifiable.
The gig economy refers to a labor market where organizations hire or contract individuals for temporary, short-term assignments instead of traditional, long-term employment. In India, companies like Ola, Uber, Zomato, and Swiggy have played a major role in popularizing this model, offering opportunities for workers in various capacities like deliveries, ridesharing, and other on-demand services.
Gig Worker
A gig worker, as defined by the Code on Social Security, 2020 (India), is someone who works outside of a traditional employer-employee relationship. These workers often operate as independent contractors, online platform workers, or part-time temporary staff.
Size of Gig Economy in India
India’s gig economy has been growing rapidly. A NITI Aayog study estimates that by 2020-21, around 77 lakh (7.7 million) workers were engaged in the gig economy, with that number projected to grow to 2.35 crore (23.5 million) by 2029-30. The work distribution is approximately 47% in medium-skilled jobs, 22% in high-skilled jobs, and 31% in low-skilled jobs.
Average Age and Income of Gig Workers in India
The median age of gig workers in India is 27 years, and their average monthly income is around ₹18,000. A significant portion (71%) are the primary earners for their families, with an average household size of 4.4 members.
Challenges Faced by Gig Workers
While gig jobs provide flexible employment opportunities, they come with significant challenges:
Low wages and lack of job security.
Gender disparity in participation.
No benefits like paid leaves, provident funds, or travel allowances, as gig workers are not considered full-time employees.
These issues have sparked protests from gig workers in companies like Swiggy, Zomato, and Ola, demanding better working conditions.
Steps to Improve Gig Worker Conditions
1. Fiscal Incentives: Encouraging businesses to employ more women in gig roles through tax incentives.
2. Retirement and Social Security: Introducing retirement benefits and insurance policies, as recommended by the NITI Aayog report, to provide gig workers with financial stability.
3. Paid Sick Leave: Platforms should offer paid sick leave and insurance to support gig workers during emergencies.
4. Legislative Actions: For example, the Rajasthan Platform-Based Gig Workers (Registration and Welfare) Act 2023 aims to create a social security fund and provide a platform for gig workers to collectively bargain and resolve grievances.
Fairwork India Ratings 2024 report:
The Fairwork India Ratings 2024 report evaluates the working conditions of platform workers across various digital platforms in India.
It highlights that many platforms do not ensure that their workers earn a local living wage and are generally unwilling to acknowledge the collectivization of workers.
The report also discusses potential legislative changes for gig workers in states like Karnataka and Jharkhand.
Key Findings of the Report:
Overall Ratings: No platform achieved more than 6 out of 10 points in the assessment.
The platforms were evaluated on five key principles: Fair Pay, Fair Conditions, Fair Contracts, Fair Management, and Fair Representation.
Assessment of Fair Pay: Only Bigbasket and Urban Company earned the first point under Fair Pay by ensuring a minimum wage that covers at least the local minimum wage after deducting work-related expenses.
No platform received the second point, which requires proof that workers earn a local living wage after work-related costs.
Evaluation of Fair Conditions: Platforms such as Amazon Flex, BigBasket, BluSmart, Swiggy, Urban Company, Zepto, and Zomato earned points for providing safety equipment and safety training.
BigBasket, Swiggy, Urban Company, Zepto, and Zomato were further recognized for offering accident insurance and compensation for income loss due to medical reasons.
Fair Contracts: BigBasket, BluSmart, Swiggy, Urban Company, Zepto, and Zomato were awarded points for making contracts accessible and transparent.
They also had protocols to protect worker data.
Fair Management: Platforms like Amazon Flex, BigBasket, BluSmart, Flipkart, Swiggy, Urban Company, and Zomato provided mechanisms for appeals against disciplinary actions.
BluSmart, Swiggy, Urban Company, and Zomato conducted regular external audits to prevent biases in work allocation.
Fair Representation: Despite a rise in platform worker collectivization over the last six years, no platform showed evidence of recognizing collective worker bodies or unions.
Implications & Future Prospects:
The Fairwork India Ratings 2024 report underscores the growing attention towards gig worker welfare in political and legislative discussions.
However, the report raises concerns about the slow pace of actual implementation.
It calls for a balanced approach where platform companies, government bodies, and worker collectives work together to ensure better standards of living and working conditions for gig workers in India.
Overall, the report serves as a crucial reminder of the challenges faced by gig workers and the gaps that remain in ensuring fair work conditions across digital labor platforms in India.
Judicial Activism refers to the judiciary’s proactive involvement in interpreting laws and the Constitution to protect citizens’ rights and ensure justice, especially in cases where the executive and legislative branches fail to act. It goes beyond mere interpretation of laws, allowing courts to step in and sometimes guide government action or fill legal gaps.
Meaning and Scope:
Judicial activism allows courts to:
Broadly interpret the Constitution to secure fundamental rights.
Address government inaction and uphold constitutional duties.
Take suo motu actions in public interest, even without formal complaints.
It stems from the idea that courts should actively work to uphold individual rights and democratic principles when other branches of government falter.
Constitutional Basis in India:
Judicial activism in India derives its legitimacy from key constitutional provisions:
Article 32: Provides citizens the right to approach the Supreme Court for enforcing their fundamental rights, forming the basis of Public Interest Litigation (PIL).
Article 21: The right to life has been expansively interpreted to include various aspects of dignified living, such as the right to privacy and health.
Article 142: Empowers the Supreme Court to deliver “complete justice” by passing necessary orders, even in areas where the law is silent.
Notable Examples:
1. Vishakha v. State of Rajasthan (1997): In the absence of laws on workplace sexual harassment, the Supreme Court established guidelines (Vishakha Guidelines), which led to later legislation.
2. Maneka Gandhi v. Union of India (1978): The Court expanded the interpretation of Article 21, establishing that the right to life includes dignity and requires procedural fairness in legal processes.
Impact of Judicial Activism:
Strengthening Democracy: It ensures that government actions adhere to constitutional principles, keeping checks on legislative and executive powers.
Protection of Fundamental Rights: Expansive interpretations of rights (such as in the Puttaswamy case on privacy) have empowered marginalized groups.
Environmental Protection: Landmark cases like MC Mehta v. Union of India (Ganga Pollution Case) have led to stronger environmental regulations.
Criticism:
Judicial Overreach: Critics argue that in some instances, the judiciary has ventured into policy-making, encroaching on the functions of the executive and legislature.
Lack of Accountability: Since judges are not elected, there are concerns about decisions reflecting personal biases rather than democratic principles.
Judicial activism has thus played a crucial role in India’s legal landscape, but it must balance its interventions to avoid undermining the separation of powers.
The data for India’s Current Account Deficit (CAD) in Q1 FY25 highlights a slight increase from the previous year, rising to $9.7 billion (1.1% of GDP), compared to $8.9 billion (1.0% of GDP) in Q1 FY24.
This increase in CAD was primarily driven by a significant widening in the merchandise trade deficit, which expanded to $65.1 billion, up from $56.7 billion in Q1 FY24.
The growth in imports, particularly of oil, gold, and non-oil products, contributed to this increase.
However, there were positive developments as well. India’s net services receipts rose year-on-year from $35.1 billion to $39.7 billion, with gains across various service sectors like computer, business, and travel services. Additionally, private transfer receipts, largely driven by remittances, saw an uptick from $27.1 billion to $29.5 billion.
In the financial account, Foreign Direct Investment (FDI) inflows rose to $6.3 billion, signaling continued investor confidence. However, Foreign Portfolio Investment (FPI) and External Commercial Borrowings (ECBs) saw notable declines, with FPI dropping drastically to $0.9 billion from $15.7 billion, and ECBs falling to $1.8 billion from $5.6 billion.
Non-Resident Indian (NRI) deposits saw a sharp increase to $4.0 billion, and despite a lower increase in foreign exchange reserves ($5.2 billion) compared to Q1 FY24, experts view the balance of payments as largely stable. The CAD, though higher than the previous year, remains manageable at 1.1% of GDP.
Expert Commentary:
As per experts, the overall balance of payments situation remained largely stable for Q1 FY25.
As per them, the $5.2 billion net accretion to foreign exchange reserves as a positive, although it was lower than the $24.4 billion in the previous year.
Both oil and gold imports contributed to the widening trade deficit, along with other non-oil imports.
They said that while the CAD at 1.1% of GDP was higher than last year’s 1%, it was still within a comfortable range.
India’s Inflation Targeting (IT) framework, introduced in 2016, has been a crucial policy in stabilizing inflation after a period of high inflationary pressures between 2009 and 2012. The framework mandates the Reserve Bank of India (RBI) to maintain inflation at a target of 4%, with a tolerance band of 2 percentage points on either side. This shift from the earlier “multiple objectives” framework has brought a clear focus on inflation control, and since its adoption, inflation has mostly stayed within this band despite significant economic shocks, such as the COVID-19 pandemic.
The IT framework has been instrumental in ensuring economic and political stability. By keeping inflation under control, it has allowed businesses to plan better and helped protect lower-income households from the erosion of purchasing power. Additionally, it has shielded the government from the political fallout that typically accompanies periods of high inflation, a challenge that contributed to the previous United Progressive Alliance (UPA) government’s decline.
While there are calls to modify the IT framework, particularly by excluding volatile food prices from inflation targeting, this approach could be counterproductive in the Indian context, where food prices significantly impact household expenditures. Instead, experts suggest that the RBI should focus on improving its forecasting tools and economic data to address inflation more effectively, rather than making sweeping changes to the framework.
Erosion of Institutional Credibility
The credibility of a central bank hinges on its ability to consistently meet its objectives, particularly in maintaining price stability. The RBI’s adoption of the IT framework sent a strong message that controlling inflation was its top priority. Deviating from this commitment—especially after it has been largely successful—would undermine confidence in the central bank’s future policies. The credibility that the RBI has built over the past decade would be at risk, and this could make it harder for the institution to manage inflationary expectations in the future.
Destabilizing Economic Confidence
One of the key achievements of the IT framework is the stability it has brought to inflation, which in turn has provided businesses and consumers with a predictable economic environment. If the RBI were to dilute its commitment to inflation targeting, it could lead to uncertainty about the central bank’s priorities, causing inflation expectations to become unanchored. Businesses may once again face difficulties in planning for the long term, as they would have to factor in potential volatility in inflation rates. This uncertainty could dampen investment, slow economic growth, and harm job creation.
The Risk of Political Interference
A rollback of the IT framework could also open the door to greater political interference in monetary policy. The IT regime provides a clear and transparent benchmark by which the public and markets can evaluate the RBI’s performance. Without this framework, monetary policy could become subject to short-term political pressures, as policymakers might prioritize growth or electoral gains over inflation control. This would be particularly dangerous in a country like India, where inflation disproportionately affects lower-income households due to their high consumption of food and essential goods.
Historical Lessons
India’s previous “multiple objectives” monetary policy, which attempted to balance inflation control with other goals like growth and exchange rate stability, resulted in unchecked inflation in the late 2000s and early 2010s. This led to widespread economic and political instability, underscoring the importance of a clear inflation-targeting framework. Abandoning or weakening the IT framework risks returning to a period of economic instability, where inflationary pressures erode purchasing power, hurt the poor, and contribute to political unrest.
In conclusion, India’s IT framework has proven effective, and while periodic reviews are essential, major modifications could undermine the stability and progress achieved. Incremental improvements in data and analysis, rather than structural changes, are likely to enhance its effectiveness moving forward.
The recently released working paper by the Economic Advisory Council to the Prime Minister (EAC-PM) titled “Relative Economic Performance of Indian States: 1960-61 to 2023-24” offers a comprehensive analysis of the economic growth of Indian states over a long period, providing insights into the effects of policies at both national and state levels.
Economic Advisory Council to the Prime Minister (EAC-PM)
The EAC-PM is an independent, non-constitutional, non-permanent advisory body that provides economic recommendations to the Prime Minister of India. It has been reconstituted multiple times since India’s independence and was last revived in 2017 under the chairmanship of Bibek Debroy. The council advises the Prime Minister on a range of economic issues, including inflation, industrial output, and microfinance, offering a neutral perspective on these critical matters.
Indicators of Economic Performance
The paper evaluates the relative economic performance of states using two key indicators:
1. Share in India’s GDP: This indicator reflects the economic significance of each state by calculating the Gross State Domestic Product (GSDP) as a proportion of the combined GSDP of all states.
2. Relative Per Capita Income: This metric compares the per capita Net State Domestic Product (NSDP) to the national per capita Net National Income, providing insights into individual prosperity across states. However, it excludes remittances, which may be critical for states like Kerala, Bihar, and Uttar Pradesh.
Regional Analysis of Economic Performance
The analysis provides an overview of regional performance trends:
Southern States: Post-1991 economic liberalization saw states like Karnataka, Andhra Pradesh, Telangana, Kerala, and Tamil Nadu grow significantly, now contributing about 30% of India’s GDP. These states also have per capita incomes well above the national average.
Western States: Maharashtra has maintained its dominant position in India’s GDP, with Gujarat emerging as a strong performer after 2000. Goa leads in per capita income, nearly tripling the national average in 2022-23.
Northern States: Delhi and Haryana have outperformed Punjab, whose economic performance has declined since 1991. Haryana now contributes more to India’s GDP than Punjab.
Eastern States: West Bengal, once a leading state in GDP contribution, has seen a steady decline, while Bihar’s relative per capita income remains stagnant at around 33%, though remittances may paint a slightly better picture.
Central States: Uttar Pradesh, once India’s largest economic powerhouse, has seen its share in national GDP shrink, while Madhya Pradesh has shown steady improvement in per capita income.
Northeastern States: Sikkim has seen a remarkable rise in per capita income, becoming one of the highest-performing states, while Assam has witnessed a decline in relative economic performance.
Inferences from the States’ Economic Performance
The data reveals that western and southern regions have significantly outpaced other areas, with states along the coast performing particularly well, except for West Bengal. Northern states show mixed results, with Punjab’s underperformance potentially linked to an overemphasis on agriculture, raising concerns of a “Dutch disease” effect. Meanwhile, Bihar and other eastern states lag behind, requiring faster growth to catch up with national averages.
The paper underscores the need for policy interventions tailored to regional strengths and challenges to ensure more balanced economic development across India.
Today’s article discusses the concept of simultaneous elections in India, referred to as “One Nation, One Election,” which aims to synchronize elections for both the Lok Sabha and state assemblies.
A High-Level Committee (HLC), led by former President Ram Nath Kovind, was formed in 2023 to explore the challenges and steps for implementing this idea. The key recommendations of the HLC include:
1. Implementation by 2029: The Constitution should be amended for simultaneous elections by 2029 in two phases—first for the Lok Sabha and state assemblies, followed by local body elections.
2. Constitutional Amendments: The committee suggested 18 amendments to enable this, including changes to Articles 83, 172, 324A, and 325.
3. Electoral Logistics: The Election Commission will need to coordinate with state authorities to ensure resources, manpower, and planning for holding elections at all levels.
4. Dealing with Hung Houses: Fresh elections should be held for the remaining term in case of a no-confidence motion, rejecting the German model of a constructive vote of no confidence.
These recommendations aim to streamline the election process and reduce the frequency of elections across the country.
[1] Retirement with 2 Crores in a Fixed Deposit (FD):
Interest Rate After Tax: If you assume a post-tax return of 4.5% after a 30% tax rate on interest income, your corpus is effectively growing at a rate that’s barely matching or slightly below inflation.
Inflation Impact: With an official inflation rate of 4-6%, the purchasing power of your money is eroded, making this option unsuitable for long-term retirement planning as your wealth depletes over time.
[2] Retirement with 10 Crores in EPF/PF/PPF:
Growth Rate: Assuming an 8% after-tax growth rate, this option might seem better. However, inflation specific to your segment, such as healthcare, education, and lifestyle inflation, could be around 10%.
Real Return: This essentially gives you a negative real return. Over time, you are losing money as your expenses outpace your investment growth.
[3] Retirement with 100 Crores in the Stock Market:
Growth Rate: Assuming you can grow your wealth at 12% annually by investing in the stock market, you might beat inflation and build a significant corpus over time.
Exit Tax (LTCG): After 30 years, a 30% Long-Term Capital Gains (LTCG) tax on your corpus would significantly impact your post-tax returns. This highlights the importance of tax-efficient planning.
Key Takeaways for Retirement Planning:
1. Corpus Size: The bigger the corpus, the better you can hedge against inflation, unforeseen expenses, and market volatility.
2. Inflation Control: It’s critical to manage lifestyle inflation. Even with a sizeable corpus, if your expenses grow at an unsustainable rate, your wealth can deplete rapidly.
3. Tax Efficiency: Consider the tax implications on your investments. Diversify across different instruments to minimize tax impact upon withdrawal.
4. Diversification and Risk Management: Avoid putting all your eggs in one basket. Diversify your investments across asset classes (equity, debt, real estate, etc.) to hedge against market risks.
Conclusion:
Retirement is indeed a moving target. It’s not just about building a big corpus; it’s about ensuring that corpus grows faster than your personal inflation rate, managing taxes, and diversifying risks to prevent a single point of failure.
The journey to a secure retirement in India involves navigating through complex financial realities, which makes it essential to have a well-thought-out plan that evolves with time and changing circumstances.
The 2019 corporate tax cuts in India, which reduced the rate from 30% to 22% for existing companies and from 25% to 15% for new companies, were intended to stimulate economic growth by encouraging investment and enhancing corporate profitability. However, these cuts came at a substantial fiscal cost, resulting in a revenue loss of around ₹1 lakh crore in the 2020-21 fiscal year.
The timing of the tax cuts coincided with the onset of the COVID-19 pandemic, which caused widespread economic disruption, particularly in the labor market. Despite some improvement in labor force participation rates, especially among women, the corporate sector’s contribution to the recovery has been limited. According to the Periodic Labour Force Survey (PLFS), the proportion of regular wage employees has decreased from 22.8% in 2017-18 to 20.9% in 2022-23, indicating a shift away from formal, stable employment.
Furthermore, the growth in nominal monthly earnings for regular wage workers has been modest. The Compound Annual Growth Rate (CAGR) of nominal earnings was only 4.53% in rural areas and 5.75% in urban areas from 2017 to 2022, which barely outpaces inflation. This suggests that real wages for rural workers have declined, while urban wages have remained stagnant.
Despite a healthy rebound in corporate tax collections post-pandemic, these gains have not translated into better employment or wage growth. This disconnect is evident as several tech companies in India continue to lay off workers, reflecting a broader trend of limited expansion in hiring and a lack of substantial benefits for the workforce from corporate tax cuts. The corporate tax cuts, while beneficial for companies’ bottom lines, have not led to the desired trickle-down effect in terms of job creation or wage improvement.
Introduction of the Judicial System: The British colonial administration laid the foundation for the modern Indian judicial system by introducing principles based on Anglo-Saxon jurisprudence. This system was designed to serve the colonial power’s needs.
Royal Charter of 1661: The Royal Charter granted by Charles II in 1661 empowered the Governor and Council in India to adjudicate civil and criminal cases according to English laws, marking the beginning of a formal judicial structure in colonial India.
Regulating Act of 1773: This act established the first Supreme Court in Calcutta with a Chief Justice and initially three judges (later reduced to two), all appointed by the British Crown. This court served as the King’s court and not as a court of the East India Company.
Supreme Courts in Madras and Bombay: Following the establishment of the Supreme Court in Calcutta, similar courts were set up in Madras and Bombay. These courts exercised jurisdiction over British subjects and were separate from the courts for native Indians.
Dual Judicial Systems: During British rule, the judicial system in India operated with two distinct types of courts:
▪️English System of Royal Courts: Operated in the presidencies, applying English law and procedures.
▪️Indian System of Adalat/Sadr Courts: Functioned in the provinces, applying regulation laws and personal laws.
High Court Act of 1861: This act merged the Supreme Courts and native courts (Sadr Dewani Adalat and Sadr Nizamat Adalat) in Calcutta, Bombay, and Madras into unified High Courts, creating a more streamlined judicial structure.
Highest Court of Appeal: Under British rule, the highest court of appeal for Indians was the Judicial Committee of the Privy Council in London.
Development of a Unified Court System: Efforts were made by the British to develop a unified court system in India, which aimed to bring uniformity and cohesion in administering justice across the country.
Indian Laws and Courts: Indian laws and courts were primarily designed to cater to the needs of the colonial administration, and Indians did not have separate legal systems of their own.
Government of India Act of 1935 (Section 200): This act established the Federal Court of India, which served as an appellate body between the High Courts in India and the Privy Council in London. It had a special role in interpreting the Indian Constitution.
Limited Power of the Federal Court: The Federal Court had limited power, as it could only issue declaratory judgments and did not have the authority to enforce compliance.
Judicial Review: The Federal Court’s power of judicial review was largely symbolic, with very limited practical authority.
Federal Court’s Continuation: The Federal Court remained in place until 26th January 1950, when the Constitution of independent India came into force, establishing a new judiciary system.
Structure – Three-Tier Division
The modern judicial system in India has a unified structure that consists of three levels:
Supreme Court of India: The apex court in the country, with the highest authority in judicial matters.
High Courts: The High Courts serve as the principal civil courts of original jurisdiction in each state and union territory, as well as appellate courts for lower courts.
Subordinate Courts: These include District and Sessions Courts, which handle both civil and criminal cases at the district level.
The judicial system’s hierarchy allows cases to start from the lower courts and move up to higher courts if needed.
The applicability or jurisdiction of the courts is determined by three main factors:
Pecuniary Jurisdiction: Based on the monetary value of the case.
Territorial Jurisdiction: Based on the geographical location where the cause of action arose.
Subject Matter Jurisdiction: Based on the nature of the legal issue in dispute.
This structured approach ensures that the Indian judiciary remains organized, accessible, and effective in administering justice across the country.
The Unified Lending Interface (ULI) is poised to revolutionize India’s lending ecosystem, much like how the Unified Payments Interface (UPI) transformed the payments landscape. Announced by the Reserve Bank of India (RBI) in August 2023 as part of a pilot project, ULI aims to streamline and expedite the credit process by creating a centralized public tech platform. This platform will address the current fragmentation in data systems that hinders efficient credit appraisals.
Need for ULI
India’s rapid digitalization has laid the foundation for innovations in financial services. However, the data required for credit assessments remains dispersed across various platforms, causing delays and inefficiencies in the lending process. ULI aims to consolidate this data, ensuring a seamless, consent-based flow of digital information, including land records, to lenders. This will particularly benefit smaller borrowers and those in rural areas, who often face significant challenges in accessing credit.
About ULI
ULI will standardize APIs to simplify technical integration for lenders, reducing the need for extensive documentation and enabling quicker credit appraisals. The platform is designed to be plug-and-play, facilitating easier and faster access to credit data. ULI will not only improve digital access for lenders but also ensure data privacy and borrower consent are prioritized.
Benefits of ULI
ULI is expected to meet the large unmet demand for credit in sectors like agriculture and MSMEs by digitizing access to both financial and non-financial data. By integrating this data into a single platform, ULI will make the credit process more efficient and accessible. When combined with existing digital infrastructure initiatives like JAM (Jan Dhan, Aadhaar, Mobile) and UPI, ULI represents a significant advancement in India’s financial services landscape, potentially unlocking new opportunities for economic growth and financial inclusion.
UPI Overview
UPI, launched in 2016 by the National Payments Corporation of India (NPCI), has already revolutionized payments in India by enabling seamless money transfers across multiple bank accounts through a single mobile application. UPI’s features include immediate money transfers, round-the-clock availability, and a hassle-free user experience. It has benefited banks, merchants, and customers alike by providing a secure, efficient, and universally accessible payment platform.
By following the success of UPI, ULI has the potential to similarly transform lending, making credit more accessible and streamlined for all segments of society.
While India has saved over $10 billion by importing cheaper Russian oil and benefited from exporting petroleum products made from Urals crude, the low exports to Russia have hindered India’s goal to reduce dependence on the US dollar.
Continued unbalanced trade might compel India to use the Chinese yuan, undermining efforts to internationalize the rupee.
◾Definition: Enhancing the use of the Indian Rupee (INR) in cross-border transactions.
◾Steps Taken: RBI’s new arrangement for invoicing and settling trade in INR since July 2022.
◾Progress: Banks in 19 countries permitted for rupee settlements.
◾Goals: Increase rupee turnover to 4% in global forex to be considered an international currency.
Widening Trade Gap with Russia and Benefits to Yuan
◾Trade Dynamics: China’s balanced trade with Russia has promoted local currencies, boosting the yuan’s use.
◾Impact on India: Russian oil exports to India now prefer yuan payments over rupees, limiting the rupee’s international role.
Challenges in Exports to Russia
◾Bank Reluctance: Fear of Western sanctions inhibits private banks from engaging in trade.
◾Rupee Settlement Mechanism: Lack of a Standard Operating Procedure (SOP) for banks and currency volatility are significant hurdles.
Way Forward
◾Trade Agreement: India and Russia aim to eliminate trade barriers and negotiate a deal with the Russia-led Eurasian Economic Union.
◾Industrial Cooperation: Focus on manufacturing sectors and joint projects to boost industrial product trade.
◾Mobility Partnership: Discussing agreements to facilitate migration and mobility between the two countries.
These points highlight the complexities and strategic efforts involved in balancing trade, promoting the rupee, and overcoming geopolitical and economic challenges.
The Computer Emergency Response Team (CERT-IN) is an organization under the Ministry of Electronics and Information Technology, Government of India. It has been operational since 2004.
As per the Information Technology Amendment Act, 2008, CERT-IN has been designated to serve as the national nodal agency responsible for responding to computer security incidents as they occur and for enhancing the security of India’s communications and information infrastructure.
Functions
Incident Response :
◾Providing technical assistance and advice to individuals and organizations in case of a cyber incident.
◾Coordinating responses to security incidents on the national level.
Cyber Security Awareness and Training :
◾Organizing training programs, workshops, and conferences to educate stakeholders about cyber security threats and best practices.
◾Disseminating information on cyber threats, vulnerabilities, and protective measures.
Vulnerability Handling and Coordination :
◾Identifying and analyzing vulnerabilities in computer systems and networks.
◾Coordinating with stakeholders to mitigate the impact of vulnerabilities and advising on preventive measures.
Security Quality Management Services :
◾Offering security quality management services, including risk assessment, penetration testing, and security audits.
◾Developing guidelines, standards, and policies for the protection of information infrastructure.
Cyber Threat Monitoring :
◾Continuously monitoring cyber threats to the country’s information infrastructure.
◾Providing early warning and alerts on potential and ongoing cyber threats.
Collaboration and Coordination :
◾Collaborating with domestic and international cyber security organizations, law enforcement agencies, and industry partners.
◾Sharing information and best practices to enhance collective cyber security defenses.
Policy Development and Implementation :
◾Assisting in the formulation of national policies and strategies related to cyber security.
◾Ensuring the implementation of government policies and regulations pertaining to cyber security.
Research and Development :
◾Engaging in research and development activities to innovate and improve cyber security technologies and methodologies.
◾Promoting the development of indigenous cyber security solutions.
Few Notable Works of CERT-IN
◾CERT-In has been involved in high-profile investigations, such as the 2022 cyberattack on AIIMS Delhi.
◾It issued a cybersecurity directive in 2022, requiring VPN and cloud service providers to store customer information for five years.
◾CERT-In handled approximately 1.4 million cybersecurity incidents in 2022, with mitigation of vulnerable services being the most common.
Control of CERT-IN
Two key ministries in India, Information Technology (IT) and Home Affairs (MHA), are in a dispute over control of CERT-IN.
Positions of the Ministries
Ministry of Home Affairs (MHA): Advocates for CERT-In to come under its control to enhance law enforcement capabilities, particularly in cyberspace, given CERT-In’s technical expertise and the MHA’s enforcement powers. The MHA believes this integration would streamline cybercrime investigations.
Ministry of Information Technology (IT): Argues that CERT-In’s role is technical and extends beyond law enforcement, focusing on incident reporting, malware alerts, and advising on security infrastructure improvements. The IT Ministry emphasizes that CERT-In’s technical functions are distinct from investigative powers, which the MHA holds.
Background
CERT-In, under the IT Ministry, performs technical functions like analyzing and disseminating information on cyber incidents, issuing alerts, and coordinating responses. It does not have investigative powers like search and seizure.
The MHA, through the Indian Cyber-crime Coordination Centre (I4C), focuses on cybercrimes and coordination among law enforcement agencies. Control of CERT-In could provide the MHA with needed technical expertise.
Dispute Highlights an Associated Issue
The dispute is partly due to ambiguous Allocation of Business Rules (AoBR). These rules do not designate cybersecurity solely to any one ministry, leading to overlapping responsibilities among the Prime Minister’s Office, Home Ministry, and IT Ministry. Globally, CERTs can fall under either the Home office or the IT ministry, depending on the country.
Conclusion
The tussle between the IT Ministry and MHA over CERT-In highlights the evolving challenges in cybersecurity management and the need for clear delineation of roles and responsibilities among various governmental agencies.
Complex Digital Markets: Regulating market abuse after it occurs is suboptimal in digital markets due to their complexity.
Economies of Scale and Scope: Digital enterprises benefit from reduced production costs as they grow and lower total costs with more services, leading to rapid growth.
Network Effects: The utility of digital services increases with more users, enhancing growth.
Preventive Regulation: An ex-ante framework anticipates potential antitrust issues, setting pre-determined boundaries to prevent them.
Digital Competition Bill, 2024
Objective: Regulate large digital enterprises, including news aggregators, to ensure fair competition.
Proposed Date: March 2024.
Scope: Aims to prevent big tech companies from favoring their own services or using collected data to benefit another business unit.
Provisions: Includes presumptive norms to curb anti-competitive practices before they occur and imposes heavy penalties for violations.
Similarity with EU’s DMA: Requires large tech firms to open their services and not favor their own at the expense of rivals.
Nodal Ministry: Ministry of Corporate Affairs (MCA).
Key Proposals:
List of Core Digital Services (CDS):
Online search engines, social networking services, video-sharing platforms, communication services, operating systems, web browsers, cloud services, advertising services, and online intermediation services.
Significant Entities:
Designation: Enterprises providing core digital services and having significant presence and financial strength in India will be designated as Systemically Significant Digital Enterprises (SSDEs).
Criteria: Financial strength test and spread test (user base test).
▪️Turnover in India ≥ ₹4,000 crore, or global turnover ≥ $30 billion.
▪️Gross merchandise value in India ≥ ₹16,000 crore.
▪️Global market capitalization ≥ $75 billion.
▪️Core digital service users: ≥ 1 crore end users or 10,000 business users.
Flexibility: Entities can still be designated as SSDEs if deemed significant by the Competition Commission of India (CCI).
Obligations for SSDEs:
Prohibitions: Practices like self-preferencing, anti-steering, and restricting third-party applications.
Penalties: Up to 10% of global turnover for violations.
Associate Digital Enterprises (ADEs):
Designation: Understand the role of data collected by one company benefiting other group companies.
Obligations: Same as SSDEs depending on involvement with the core digital service.
Criticism of the Digital Competition Bill, 2024
Compliance Burden: The ex-ante framework’s prescriptive norms could impose significant compliance burdens, diverting focus from innovation and research.
Impact of EU’s DMA: Stringent requirements have increased the time to find information via Google search, indicating potential drawbacks of similar regulations.
Broad Definitions: The broad quantitative and qualitative definitions of significant platforms could lead to arbitrary decisions by the CCI, potentially impacting start-ups. Impact on Smaller Businesses: Changes forced by the bill could reduce data sharing, impacting smaller businesses relying on these platforms for audience reach.
The Financial Inclusion Index (FI Index) is created by the Reserve Bank of India (RBI) to gauge the reach and accessibility of financial services across the country.
Its purpose is to measure how inclusive financial services like banking, insurance, and investments are, especially for underserved and underprivileged sections of society.
Key Features:
Purpose:
▪️Tracks the progress of financial inclusion in India.
▪️Identifies areas needing improvement.
▪️Assesses the effectiveness of financial inclusion policies and initiatives.
Components:
▪️Access (35%): Measures the availability and reach of financial services, including the number of bank branches, ATMs, and banking correspondents.
▪️Usage (45%): Evaluates how frequently people use financial services, such as the number of savings accounts, loans, and digital transactions.
▪️Quality (20%): Assesses the quality of financial services, considering customer satisfaction, financial literacy, and the safety of financial transactions.
Indicators:
The FI Index is responsive to ease of access, availability and usage of services, and the quality of services, consisting of 97 indicators.
Scoring:
▪️Provides a score between 0 and 100.
▪️A score of 0 indicates complete financial exclusion, and a score of 100 indicates full financial inclusion.
▪️The index was first published in 2021 without a ‘base year’ and is published annually in July.
Significance:
Empowerment: By measuring financial inclusion, the FI Index helps empower people by ensuring access to financial services that can improve economic well-being.
Economic Growth: Increased financial inclusion leads to greater economic participation, boosting overall economic growth and stability.
Social Equality: Promotes social equality by bridging the gap between different socio-economic groups and providing financial services to underserved and marginalized communities.
The Reserve Bank’s FI-Index, which measures financial inclusion across India, rose to 64.2 in March 2024, up from 60.1 in March 2023. This increase reflects growth across all parameters, with a significant contribution from the usage dimension, indicating a deepening of financial inclusion in the country.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the government will reopen the application window for the Production-Linked Incentive (PLI) scheme for white goods.
What are White Goods ?
White Goods, or Consumer Durables, encompass significant household appliances, including:
▪️Air conditioners (ACs), LED lights, dishwashers, ▪️Clothes dryers, drying cabinets, ▪️Freezers, refrigerators, ▪️Kitchen stoves, water heaters, microwave ovens, induction cookers, and ▪️Washing machines.
India allows 100% Foreign Direct Investment (FDI) under the Automatic Route into the consumer durable goods manufacturing industry. The white goods industry in India has exhibited robust growth in recent years, with an estimated market value of US$13.66 billion in the fiscal year 2021.
Within this industry, the most substantial market shares were captured by ACs, refrigerators, and LED products. India’s white goods market is projected to surpass US$21 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 11%.
What are PLI Schemes ?
The PLI Schemes are a strategic initiative by the Government of India, aligned with the vision of ‘Atmanirbhar Bharat’ (or Self-Reliant India). The core objectives of the PLI Schemes are to:
▪️Improve efficiency, foster economies of scale within the manufacturing sector,
▪️Position Indian manufacturers as globally competitive, thereby facilitating their integration into global value chains, and
▪️Foster domestic manufacturing as a catalyst for India’s economic growth and employment generation.
The PLI Schemes involve significant financial allocations, with a total outlay of INR 1.97 trillion (over US$26 billion) for 13-14 key sectors. All sectors approved under the PLI Schemes adhere to a broad framework centered around new and emerging technologies.
What is the PLI Scheme for White Goods ?
The PLI Scheme for White Goods was approved by the Union Cabinet on 7th April, 2021, and was notified by the DPIIT on 16th April, 2021. The scheme is to be implemented over a 7-year period (from FY 2021-22 to FY 2028-29) and has an outlay of ₹6,238 crore. It is designed to create a complete component ecosystem for the Air Conditioners and LED Lights Industry in India and make India an integral part of the global supply chains. With the launch of this scheme, domestic value addition for white goods is expected to grow from the current 15-20% to 75-80%.
So far, 66 applicants with a committed investment of ₹6,962 crores have been selected as beneficiaries under the scheme. Leading consumer durable brands Daikin, Panasonic, Havells, and Syska are among the beneficiaries of the PLI White Goods Scheme.
Policies & Ideas 