Context

• The Union Cabinet has approved the proposed Free Trade Agreement between India and Oman.

About

• The Comprehensive Economic Partnership Agreement approval comes ahead of the Prime Minister’s three-nation tour to Jordan, Ethiopia and Oman.
  • It was approved by the lower house of Parliament of Oman as well.
• The PM visit to Oman will be his second visit to the country and coincides with the 70th anniversary of diplomatic relations between the two nations.
• FTA: Negotiations for the agreement began officially in 2023.
  • In FTAs two trading partners either significantly reduce or eliminate customs duties on a maximum number of goods traded between them. 

• They also ease norms to promote trade in services and attract investments.
• India already has a similar agreement with another Gulf Cooperation Council (GCC) member UAE which came into effect in 2022.

Major Highlights of the FTA

• With the Comprehensive Economic Partnership Agreement (CEPA), India will get access to 98% of its products in Oman and significant access in services. 
• Oman’s import duty ranges from 0 to 100% along with the existence of specific duties. 
• Other than trade investment flows between the two sides are also expected to benefit from the agreement.

India-Oman Ties

• Diplomatic relations were formalised in 1955 and elevated to a Strategic Partnership in 2008.
• Trade Relations: Oman is India’s 30th largest trading partner in FY 2023-2024 with total trade of US$ 8.947 billion.
  • India is among Oman’s top trading partners and Oman is the third largest export destination among the Gulf Cooperation Council (GCC) countries.
  • India is the 4th largest market for Oman’s crude oil exports for the year 2023 after South Korea.
• Investment flows have been similarly robust, with more than 6,000 India–Oman joint ventures operating in Oman. 
  • These ventures account for an estimated 7.5 billion US dollars in capital over time. 
  • Oman’s cumulative FDI equity inflows into India between 2000 – 2025 amounted to 605.57 million US dollars.
• Defence Cooperation: India and Oman conduct regular biennial bilateral exercises between all three services.
  • Army exercise: Al Najah
  • Air Force exercise: Eastern Bridge
  • Naval Exercise: Naseem Al Bahr
• Maritime Cooperation: Oman is at the gateway of Strait of Hormuz through which India imports one-fifth of its oil imports.
  • India signed a pact with the country in 2018 to access the Duqm port of Oman.
  • The Port of Duqm is situated on the southeastern seaboard of Oman, overlooking the Arabian Sea and the Indian Ocean. It is strategically located, in close proximity to the Chabahar port in Iran.

Way Ahead

• Realpolitik and strategic interests have been instrumental in bringing India closer to the Gulf countries, with both sides willing to collaborate. 
• In the long run, defense industrial cooperation and technology transfers will likely come to form a pivotal component of their strategic cooperation. 
• The convergences of interests – political, economic, technological and military-security –  therefore, could pave the way for the furtherance of India’s diplomacy with the Gulf states.

Source: DD

Context

• India has been excluded from the US-led Pax Silica initiative, a new US critical mineral diversification plan.

About

• Pax Silica is a US-led strategic initiative to build a secure, prosperous, and innovation-driven silicon supply chain from critical minerals.
• The inaugural Pax Silica Summit convenes counterparts from: Japan, Republic of Korea, Singapore, the Netherlands, The United Kingdom, Israel, United Arab Emirates, and Australia.
  • Together, these countries are home to the most important companies and investors powering the global AI supply chain.
• Its objective is to reduce coercive dependencies, protect the materials and capabilities foundational to artificial intelligence, and ensure aligned nations can develop and deploy transformative technologies at scale. 
• Countries will partner on securing strategic stacks of the global technology supply chain, including, but not limited to, software applications and platforms.

What are Critical Minerals?

• Critical minerals are elements that are the building blocks of essential modern-day technologies, and are at risk of supply chain disruptions.
  • The lack of availability of these minerals or the concentration of extraction or processing in a few geographical locations could potentially lead to “supply chain vulnerabilities and even disruption of supplies”.

List of Critical Minerals

• Different countries have their own unique lists of critical minerals based on their specific circumstances and priorities.
• A total of 30 minerals were found to be most critical for India: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium and Cadmium.

Source: IE

Context

• The Union Home Ministry has decided to enhance reservation for ex-Agniveers in the Group C posts of the Central Armed Police Forces (CAPFs) from the existing 10% to 50%.

Agnipath Scheme

• The Government launched Agnipath scheme in 2022 to recruit both male and female aspirants into ‘below the officer’s rank’ cadre of the three services for a period of four years as Agniveers.  
• Eligibility: Candidates between the age group of 17.5 to 21 years are eligible to apply for the scheme. 
• Training: These Agniveers would undergo optimised basic military training and specialised trade training followed by up-skilling courses, as required.
• Enrolment into Permanent Cadre: Based on organisational requirement and policies promulgated by the Armed Forces, Agniveers after completing their engagement period will be offered an opportunity to apply for enrolment in the permanent cadre.
  • Of these up to 25% of Agniveers will be selected to be enrolled in the Armed Forces as a regular cadre.

Key Features of the Scheme

• Agniveers receive a customized monthly package with applicable risk and hardship allowances, with 30% contributed to the Agniveer Corpus Fund, matched by the Government. 
• After four years, they are paid a tax-free SevaNidhi package (including accrued interest), totaling around ?11.71 lakh.
• Agniveers will be provided non-contributory Life Insurance Cover of ?48 lakh for the duration of their engagement period in the Indian Armed Forces.
• There shall be no entitlement to gratuity and pensionary benefits.

Significance of the Decision

• Employment Assurance: Strengthens post-service employment pathways for Agniveers, addressing a core concern of the scheme.
• Operational Readiness: CAPFs benefit from young, trained, and disciplined personnel with prior military exposure.
• Institutional Integration: Enhances convergence between the armed forces and CAPFs in manpower planning.

Concerns and Challenges

• Impact on Open Competition: A steep increase to 50% reservation may raise concerns among civilian aspirants.
• Uniformity Across CAPFs: Amendments are to be notified gradually, raising questions on consistency and timelines.
• Training and Role Adaptation: CAPF duties differ from military roles, requiring careful induction and retraining.

Way Ahead

• Ensure uniform implementation across all CAPFs, including CRPF, CISF, ITBP, SSB and Assam Rifles.
• Balance employment security for ex-Agniveers with fairness in civilian recruitment.
• Strengthen bridge training modules to align military skills with internal security and policing roles.
• Periodically review the policy based on recruitment outcomes and operational effectiveness.

Source: TH

Context

• India hosted the 2nd WHO Global Summit on Traditional Medicine in New Delhi.
  • The theme of the summit is “Restoring Balance for People and Planet: The Science and Practice of Well-Being.”

Key Outcomes of the summit

• Initiatives Launched: 
  • My Ayush Integrated Services Portal (MAISP): A master digital portal for services, research and governance in the Ayush sector.
  • Ayush Mark: Envisioned as a global quality benchmark for Ayush products and services.
  • Traditional Medicine Global Library (TMGL), the world’s largest digital repository on traditional, complementary and integrative medicine.
    • The initiative is grounded in the Gujarat Declaration (2023) and aligned with WHO’s Global Traditional Medicine Strategy 2025–2034.
• Announcement of international collaborations, including a Centre of Excellence for BIMSTEC countries and an India–Japan partnership in traditional medicine.
• The summit stressed the use of digital health tools and AI for research, data generation and wider access to traditional medicine.

What are Traditional Medicines?

• Traditional medicine refers to codified or non-codified systems for health care and well-being, comprising practices, skills, knowledge and philosophies originating in different historical and cultural contexts, which are distinct from and pre-date biomedicine, evolving with science for current use from an experience-based origin.
  • Traditional medicine emphasizes nature-based remedies and holistic, personalized approaches to restore balance of mind, body and environment.
  • The WHO Global Traditional Medicine Centre (GTMC) in Jamnagar, Gujarat.
• Traditional Medicine system in India:

Source: TH

Context

• Calling child trafficking and commercial sexual exploitation a “deeply disturbing reality” in India, the Supreme Court laid down guidelines on how courts must sensitively appreciate the evidence of minor victims of trafficking and prostitution.

Guidelines on Appreciation of Evidence

• Courts must not disbelieve a trafficked child’s testimony due to minor inconsistencies, especially given the trauma involved.
• The sole testimony of the victim is sufficient if it is credible and convincing.
• A trafficked child must be treated as an injured witness, not as an accomplice.
• Judicial scrutiny must avoid rejecting a victim’s account as “against normal human conduct,” especially where delayed resistance or protest is involved.

Reasons for Human/Sex Trafficking

• Poverty: Individuals and families living in poverty are more susceptible to the false promises of traffickers who offer better opportunities and livelihoods.
• Lack of Awareness: Low literacy levels and limited awareness make people, especially in rural areas, more vulnerable to deception and exploitation.
• Migration: Unregulated migration, both domestic and international, creates opportunities for traffickers to target individuals who are disconnected from their support networks.
• Inadequate training of law enforcement agencies, and corruption exacerbate the challenges of effectively addressing trafficking.

Implications of Sex Trafficking

• Human Rights Violations: Victims of sex trafficking suffer severe violations of their fundamental human rights, including freedom, dignity, and bodily autonomy.
• Perpetuation of Inequality: Sex trafficking reinforces existing social inequalities, especially against women and marginalized groups, perpetuating cycles of poverty and discrimination.
• Economic Costs: Trafficking undermines workforce potential and economic growth.

Constitutional Safeguards in India

• Article 23: Prohibits trafficking in human beings and forced labor.
• Article 21: Ensures the right to life and personal liberty, which has been interpreted to include the right to live with dignity.
• Article 39(e): The state should ensure that the health and strength of workers and children are not abused, and that citizens are not forced to take jobs that are not suitable for their age or strength.

Laws governing anti-trafficking crimes

• The Immoral Traffic (Prevention) Act, 1956 is targeted at stopping immoral trafficking and sex work. It went through two amendments, in 1978 and 1986.
• The Child Labour (Prohibition and Regulation) Act, 1986, prevents children from partaking in certain employments and regulates the conditions of work for children in other fields. 
• The Bonded Labour System (Abolition) Act, 1976, prohibits systems of labour where people, including children, work under conditions of servitude to pay off debt, and also provides a framework for rehabilitating released labourers. 
• The Juvenile Justice (Care and Protection of Children) Act 2015, which governs laws relating to children alleged and found to be in conflict with law.
• Protection of Children from Sexual Offences (POCSO) Act, 2012, which seeks to prevent commercial sexual exploitation of children.
• India set up Anti-Human Trafficking Units (AHTUs) in 2007. AHTUs are tasked with;
  • Addressing the existing gaps in the law enforcement response,
  • Ensuring a victim-centric approach which ensures the ‘best interest of the victim/ survivor,
  • Prevents secondary victimization/ re-victimisation of the victim, and developing databases on traffickers.
• The Criminal Law (Amendment) Act, 2013, revised Section 370 of the Indian Penal Code, which deals with buying and selling of any person as a slave, to include the concept of human trafficking. 

Way Ahead

• Economic Empowerment: Providing sustainable livelihood opportunities and skill development programs for vulnerable populations reduce the economic pressures that lead to trafficking.
• Victim Rehabilitation and Support: Developing comprehensive rehabilitation schemes that provide physical, psychological, and economic support is essential for survivors.
• International Cooperation: Strengthening cross-border partnerships and sharing intelligence can help dismantle trafficking networks that operate transnationally.

Source: TH

In News

• The World Anti-Doping Agency (WADA) Report 2024 has ranked India as the worst doping offender globally for the third consecutive year, recording 260 Adverse Analytical Findings (AAFs) with a positivity rate of 3.6%.

About

• In contrast, countries such as China (0.2%), France (0.8%), Russia (0.7%) and the US (1.1%) recorded far lower positivity rates despite wider testing programs.
• This comes at a crucial time when India is preparing to host the 2030 Commonwealth Games and bidding for the 2036 Olympic and Paralympic Games. The International Olympic Committee (IOC) has expressed concerns over India’s doping record, flagging it as a reputational and governance risk.

What is Doping?

• The World Anti-Doping Code defines a range of anti-doping rule violations, including presence or use of a prohibited substance, refusal to submit to sample collection, tampering with the testing process, trafficking, administration, and complicity by support personnel. 
• These substances include anabolic steroids, stimulants, blood-doping agents like EPO, and various hormone modulators that can increase strength, endurance, or recovery capacity.

India’s Efforts to Tackle Doping

• National Anti-Doping Act, 2022: This landmark legislation gave the National Anti-Doping Agency (NADA) and the National Dope Testing Laboratory (NDTL) statutory status.
  • National Anti-Doping (Amendment) Bill, 2025 recently introduced to strengthen institutional autonomy.
  • India is a signatory to the UNESCO International Convention Against Doping in Sport.
• Athlete Passport Management Unit (APMU): A dedicated unit at NDTL was inaugurated in 2025 to monitor the Biological Passport of athletes.
• NIDAMS Portal: The NADA India Data Administration and Management System was launched in 2025. It digitalizes the entire process—from planning tests and generating mission orders for Doping Control Officers (DCOs).
• “Know Your Medicine” (KYM) App: A mobile tool that allows athletes to scan or search medicines to check if they contain substances prohibited by WADA.

Source:TOI

In News

• The Supreme Court issued systemic directions to strengthen enforcement of anti-dowry laws.
  • SC observed that dowry is a deep-rooted social evil cutting across communities and requires institutional accountability, not merely penal provisions.

SC Directions 

• Judicial Monitoring: High Courts must monitor pending cases under IPC Sections 304-B (dowry death) and 498-A (cruelty) for expeditious disposal, with the judgment circulated for compliance review. 
• Administrative Enforcement: States must appoint and resource Dowry Prohibition Officers (DPOs) under Section 9 of the Dowry Prohibition Act, 1961, disseminating their contact details widely. 
• Capacity Building & Sensitisation: Police and judicial officers require periodic training on case sensitivity, distinguishing genuine claims from frivolous ones, while district administrations and Legal Services Authorities run grassroots awareness campaigns.

Dowry Cases In India

• NCRB’s Crime in India 2023 report confirms a 14% rise in cases under the Dowry Prohibition Act, 1961, reaching 15,489 from 13,479 in 2022, alongside 6,156 dowry deaths nationwide.
• Uttar Pradesh topped with 7,151 cases and 2,122 deaths, followed by Bihar, Karnataka, and Madhya Pradesh. 
• Of 83,000+ pending dowry-related cases, conviction rates hovered at 11-17%, with 833 murders explicitly motivated by dowry; under-reporting persists due to social stigma and family pressures.

Related Laws and Constitutional Basis

• Dowry is prohibited under the Dowry Prohibition Act, 1961, which criminalises the giving, taking and demanding of dowry and provides for the appointment of Dowry Prohibition Officers. 
• The current legal law reinforces this framework through Section 498-A (Sections 85 and 86 of BNS), addressing cruelty against married women, and Section 304-B (Section 80 of BNS), which deals with dowry deaths occurring within seven years of marriage.
• Constitutionally, the fight against dowry draws legitimacy from Articles 14 and 15, which guarantee equality and prohibit discrimination, Article 21, which ensures the right to life with dignity, and Article 51A(e), which places a fundamental duty on citizens to renounce practices derogatory to the dignity of women.

Source: BS

Context

• The Information and Broadcasting Minister said that the government has strengthened the framework to combat fake news and deep fakes across media platforms.

About

• Fake news is known as information that is false or misleading and presented as news. 
• Deep Fakes are digital media — video, audio, and images, edited and manipulated using Artificial Intelligence (AI).
  • They incorporate hyper-realistic digital falsification and can be used to damage reputations, fabricate evidence, and undermine trust in democratic institutions. 

India’s Disinformation Challenge

• Growing Internet Penetration: India is on track to surpass 900 million internet users, making it highly vulnerable to disinformation without appropriate regulations.
• Diverse Landscape, High Risk: India’s political, social, and linguistic diversity creates fertile ground for manipulated narratives, voter influence, and social unrest.
• Decline of Legacy Media Trust: Public trust in traditional news sources is eroding.
  • Citizens increasingly rely on social media for news.
  • Unverified information spreads rapidly, often trusted because it comes from friends or family.
• Youth at Risk: India’s youth demographic is increasingly exposed to misinformation. Many lack digital literacy and media consumption skills.

Legal and Regulatory Landscape

• Constitutional Limits: Article 19(1)(a) guarantees freedom of speech.
  • Article 19(2) allows restrictions for defamation, morality, and public order.
  • The need to balance free speech (Article 19(1)(a)) with reasonable restrictions (Article 19(2)) is challenging.
• Electronic Media: TV channels follow the Programme Code under the Cable Television Networks (Regulation) Act, 1995.
  • It prohibits content that is obscene, defamatory, deliberately false, or that contains suggestive innuendos and half-truths.
  • Rules framed under the act establish a three-tier grievance redressal mechanism to address violations.
    • Level I: Self-regulation by the broadcasters
    • Level II: Regulation by broadcasters’ self-regulatory bodies
    • Level III: Oversight mechanism by the Central Government.
• Digital Media: Code of Ethics has been framed under IT Rules 2021 for publishers of news and current affairs on digital media;
  • Intermediaries must prevent users from sharing misinformation or information which is patently false and untrue or misleading in nature.
  • Grievance Officer is appointed by platforms to handle complaints related to false or defamatory content within a fixed timeframe.
• Print Media: Norms of Journalistic Conduct issued by Press Council of India restrain the publication of fake, defamatory, or misleading news.
  • PCI duly examines complaints and takes measures such as warning, admonishing or censuring the newspaper, editors, journalists, etc.
• Information Technology (IT) Act, 2000: Section 69A grants the government power to block online content for security or public order concerns.
• Intermediary Guidelines & Digital Media Ethics Code, 2021: Regulates social media, OTT platforms, and digital news media.
• The Central Board of Film Certification (“CBFC”), which was established by the Cinematographic Act, of 1952, is responsible for censoring movies in India. 

Challenges in Digital Censorship in India

• Balancing Freedom of Speech & Regulation: Over-regulation can suppress creativity, while under-regulation can spread harmful content.
• Transparency & Accountability: Content moderation and censorship decisions often lack clear guidelines, raising concerns about misuse.
• Jurisdictional Issues: Many digital platforms operate from outside India, making enforcement difficult.
• Technological Advancements: The rapid evolution of digital media complicates consistent and fair regulation.
• Ethical Concerns: The subjective nature of obscenity laws can lead to arbitrary censorship.

Government Initiatives

• Fact Check Unit: It was established under the Press Information Bureau (PIB) and started its operations in 2019.
  • It was constituted to flag “fake, false or misleading online content related to the government.
• The Sahyog Portal: It was launched by the Ministry of Home Affairs in 2024.
  • The portal acts as a centralized system for government agencies at various levels, ranging from ministries to local police stations, to issue blocking orders more efficiently.

Way Ahead

• Strengthening Technical Capacity & Oversight: Upskill algorithm developers to reduce bias and manipulation in AI systems.
  • Establish AI supervisory boards and councils to monitor and regulate generative AI practices.
• Boosting Public Awareness & Digital Literacy: Expand digital literacy campaigns to help citizens identify and resist disinformation.
  • Promote critical thinking through educational reforms and public outreach.
• Building Global and Regional Alliances: Promote cross-border coalitions to respond to the global nature of disinformation.
  • Share best practices, threat intelligence, and regulatory frameworks with allies and international bodies.

Source: AIR

Context

• The Union Cabinet has approved the Viksit Bharat Shiksha Adhikshan Bill.

About

• The bill proposes a unified regulator for higher education, replacing existing statutory bodies such as the University Grants Commission (UGC), the All India Council for Technical Education (AICTE) and the National Council for Teacher Education (NCTE).
  • UGC oversees non-technical higher education, the AICTE oversees technical education and the NCTE is the regulatory body for teachers’ education.

• It follows recommendations in the National Education Policy (NEP) 2020 for a single regulatory authority to streamline governance and oversight in India’s higher education sector.
• The new regulator will have three major roles: regulation, accreditation and setting professional standards. 
• It proposed four verticals of HECI: 

• The body will not have any role to play in funding. 
  • The autonomy for funding is proposed to be with the administrative ministry. 
• The new regulator body will not supervise medical and law colleges.
  • Medical and legal education will continue to be regulated by their respective councils, remaining outside HECI’s regulatory purview.

Significance

• The present bill represents a renewed effort to implement the NEP 2020 vision, incorporating a more comprehensive framework that includes technical and teacher education oversight under the new authority.
• Under NEP 2020, the concept of a single regulator was highlighted as part of a broader repositioning of higher education governance. 
• The policy recommended separating regulatory functions to reduce duplication and improve efficiency while maintaining accountability.

Source: IE

Context

• The Demow Model from eastern Assam’s Siva sagar has been chosen as one of the successful systems of snakebite prevention and management under a project sanctioned by the Indian Council of Medical Research (ICMR).
  • The project, called the Zero Snakebite Death Initiative: Community Empowerment and Engagement for Mitigation of Snakebite Envenoming.

Snakebite Envenoming 

• The snakebite envenoming (poisoning from snake bites) was classified by the World Health Organisation (WHO) as a high-priority neglected tropical disease.
• An estimated 1.8 – 2.7 million people worldwide are envenomed annually. 
• Snake Bites in India: In India, around 90% of snake bites are caused by the ‘big four’ among the crawlers – common krait, Indian cobra, Russell’s viper and saw scaled viper.  
  • In India, around 58,000 deaths occur of an estimated 3-4 million snake bites annually.
  • Snakebite deaths are more common (48%) during the southwest monsoon (June-September).
  • Close to 70% of snakebite deaths occur in nine states, including Uttar Pradesh, Bihar and Madhya Pradesh.
• India has more than 310 species of snakes. Of these, 66 are labelled venomous or mildly venomous.
  • The ‘Big Four’ were considered responsible for most venomous bites in the country, but newer studies show other species also contribute to the snakebite burden, particularly in the Northeast.

Context

• Global spending on Artificial Intelligence (AI) is projected to reach $375 billion this year and $500 billion by 2026. 
  • This raises the question whether AI’s value is being driven by genuine technological progress, or by investor enthusiasm.

What is the AI Bubble?

• The AI bubble refers to concerns that artificial intelligence technology companies and related investments have become dramatically overvalued.
  • The market valuations and investment levels are significantly outpacing the actual financial returns and real-world implementation of the technology. 
• This represents a potential stock market bubble comparable in some respects to the late-1990s dot-com boom.

Dot-Com Bubble

• The dot-com bubble was a period of rapid rise and sudden collapse of internet-based company valuations in the late 1990s and early 2000s.
• Reasons for Dot Com Bubble:
  • Internet hype: The internet was seen as a revolutionary technology that would “change everything.” Investors believed profits would come later, regardless of losses.
  • Easy money & speculation: Abundant venture capital and retail investor participation. IPOs of startups with minimal revenue were oversubscribed.
  • “Growth over profits” mindset: Companies focused on website traffic and brand visibility, not earnings. Traditional valuation metrics were ignored.
• Impact: 
  • Many dot-com firms burned cash without viable revenue models.
  • When interest rates rose and earnings disappointed, investor confidence collapsed.
• Companies like Google, Amazon, and Microsoft survived the dot-com crash by adapting and building real businesses.
• Amazon diversified into cloud computing; Microsoft rebuilt its value through long-term strategic shifts.

Key Indicators of Bubble-Like Characteristics

• Valuation Extremes: The “Magnificent Seven” technology firms (NVIDIA, Microsoft, Alphabet, Amazon, Meta, Tesla, and Apple) now represent around 30% of the S&P 500’s total market cap, largely driven by AI enthusiasm.
  • OpenAI’s valuation more than tripled despite generating only hundreds of millions in revenue. 
  • Analysts estimate that almost 25% of this valuation can be attributed to expectations of AI delivering substantial financial benefits.
• Excessive Capital Investment: AI venture capital funding now represents around 58% of all venture capital investment in 2025, crowding out other sectors.
  • This concentration in a single technology raises concerns—if AI disappoints, a substantial portion of market capitalization could evaporate.
• Gap Between Hype and Implementation: A crucial disconnect exists between market expectations and actual business deployment.
  • Companies often announce major projects and product plans without possessing the necessary capital to execute them.

What Makes the AI Boom Different?

• Unlike the dot-com era, today’s “unprecedented” feature is not just stock prices, but massive real investment in: Data centres, Semiconductor manufacturing, AI infrastructure.
• These are physical, capital-intensive assets, not just speculative websites.
• This suggests potential for genuine productivity and research gains.

Risks of Concentration

• A small group of firms dominates AI investment.
• If they fail:
  • Wealthy investors may cut spending;
  • Broader economic growth could suffer;
  • Smaller firms, workers, and suppliers face disproportionate fallout;
  • Idle data centres could become the “abandoned malls” of the AI era.

Way Ahead

• AI represents a transformative technological shift with long-term economic potential, but excessive hype and inflated valuations risk creating a speculative bubble. 
• A market correction, if it occurs, would likely weed out unsustainable players rather than derail AI itself. 
• The real challenge lies in aligning innovation with sound business models, regulation, and skills. 
• Ultimately, AI’s impact will depend not on market exuberance, but on its ability to deliver durable, inclusive, and productivity-enhancing growth.

Source: TH

Context

• The rapid expansion of satellite megaconstellations, driven by soaring demand for high-speed connectivity, has intensified the global race for limited spectrum and orbital slots.

What is Satellite Spectrum?

• Satellite spectrum refers to the radio frequencies used for satellite communications.
  • These frequencies enable satellite-based systems to transmit data and signals between satellites in orbit and ground stations. 
• Unlike terrestrial spectrum, satellite spectrum operates without national territorial limits and is managed globally by the International Telecommunications Union (ITU). 
• Satellite spectrum is divided into different frequency bands, each suited for specific types of communication

Spectrum allocation in India

• Spectrum for satcom is part of the first schedule of The Telecommunications Act, 2023 (“Assignment of spectrum through administrative process”). 
• Under Section 4(4) of the Act, telecom spectrum shall be assigned through auction “except for entries listed in the First Schedule for which assignment shall be done by administrative process”.
• Administrative process under the Act means assignment of spectrum without holding an auction (a bid process for assignment of spectrum).

Fight for Spectrum in Space

• Spectrum Congestion: Ku, Ka, and L bands are in extremely high demand. Overlapping frequencies risk interference, reducing service quality and threatening critical functions such as GPS.
• Orbital Crowding and Debris: Over 40,000 tracked objects already orbit Earth, including 27,000+ pieces of debris larger than 10 cm.
  • Projections show 50,000+ satellites may orbit by 2030, increasing collision risks and complicating scientific observations.
• The ITU’s first-come, first-served system favours well-resourced spacefaring nations and companies that can file early and manage complex coordination, leaving late entrants with fewer and less valuable spectrum–orbit options.
• Digital Divide and Affordability: LEO satellites offer low latency (20–40 ms), enabling telemedicine and online education.
  • But affordability remains a challenge as Starlink terminal costs $600, unaffordable for most rural populations.
  • The ITU estimates that bridging global digital gaps will require $2.6–2.8 trillion by 2030.

Consequences of the Unregulated Spectrum Race

• Technological Consequences: Increased interference reduces reliability of services such as remote sensing, GPS, and climate observation.
  • Scientific astronomy faces disruptions due to bright satellite trails and radio noise.
• Economic Consequences: Early movers may establish monopolies in satellite broadband markets. Spectrum scarcity raises the cost of deployment for late entrants.
• Geopolitical Consequences: Unequal access to spectrum deepens the strategic divide between advanced and developing nations.
• Social Consequences: Without affordability reforms, satellite Internet may become premium infrastructure serving wealthy users, not underserved communities. This undermines its potential to reduce the global digital gap.

Reforms under World Radiocommunication Conference

• The World Radiocommunication Conference 2023 introduced key reforms through Resolution 8, requiring operators to report any deviation between planned and actual orbital deployments to prevent misuse of filings. 
• It also set phased deployment benchmarks for megaconstellations, 10% within two years, 50% within five years, and full deployment within seven years, to ensure timely and accountable use of spectrum and orbital resources.

Way Ahead

• The spectrum–orbit race demands updated global governance to balance innovation with sustainability, ensuring transparent coordination, stronger debris mitigation, and equitable access. 
• For emerging spacefaring nations like India, active participation in shaping these norms is crucial to keep outer space sustainable and inclusive.

Source: TH

Context

• The Union Cabinet approved the Sabka Bima Sabki Raksha (Amendment of Insurance Laws) Bill, 2025.

About

• The Bill seeks to revamp India’s insurance framework, proposing changes to the: Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the IRDAI Act, 1999.
• Aim: Modernisation, wider coverage and stronger regulatory oversight.

Major Features

• 100% FDI: The amendment will raise the Foreign Direct Investment (FDI) limit in Indian insurance companies from 74% to 100%. 
  • This will help in attracting stable and sustainable investment and aid achieve the goal of ‘Insurance for All by 2047’. 
• Foreign reinsurers: The requirement of Net Owned Funds (includes equity capital, free reserves, balance in share premium account and capital reserves representing surplus) for foreign reinsurers is proposed to be reduced from Rs 5,000 crore to Rs 1,000 crore.
  • It has been done to facilitate entry of more re-insurers, building greater reinsurance capacities in the country. 
  • This easing of norms is intended to draw competition in the segment currently dominated by the public sector General Insurance Corporation of India (GIC Re).
• More powers for LIC: Life Insurance Corporation of India (LIC) is being given greater operational freedom.
  • It empowered LIC to set up new zonal offices without requiring prior government approvals, enabling faster expansion, improved administrative efficiency, and better regional oversight.
• More powers for IRDAI: The Insurance Regulatory and Development Authority of India (IRDAI) is set to receive enhanced enforcement powers, including the authority to disgorge wrongful gains made by insurers or intermediaries.
  • This brings IRDAI’s punitive capabilities closer to that of SEBI, which already has the power to recover illegally earned profits from violators.
• One-Time Registration System: The Bill proposes a one-time registration system for insurance intermediaries, removing the need for repeated approvals and simplifying compliance. 
• Ease of Doing Business: The threshold for requiring IRDAI’s approval for the transfer of paid-up equity capital in insurance companies will be raised from 1% to 5%, allowing for smoother share transfers and reducing regulatory bottlenecks.
• Penalties: The Bill introduces clear criteria for levying penalties, making enforcement more rational, transparent, and consistent across cases. 

Key Omissions in the Insurance Amendment Bill

• No composite licensing despite long-standing demand: The Bill does not allow composite licences, meaning insurers must continue operating in rigid units such as life insurers only in life insurance and general insurers only in non-life segments.
  • This preserves a decades-old structure and prevents insurers from offering integrated insurance, despite growing consumer demand for comprehensive and convenient coverage.
• No relaxation in minimum capital requirements for new entrants: The Bill retains high entry thresholds of ?100 crore for insurers and ?200 crore for reinsurers.
  • These capital norms continue to discourage smaller, regional, and niche insurers, preventing the entry of specialised players.
• Several earlier reform proposals dropped: Provisions in earlier drafts—such as allowing insurers to distribute other financial products, giving greater flexibility in investment norms, and permitting agents to sell policies of multiple insurers—are missing.
  • This restricts new revenue streams, limits consumer choice, and reduces efficiency in insurance distribution.
• Silence on captive insurance companies: The Bill does not address the long-pending proposal to allow large corporations to set up captive insurers.
  • This keeps India’s risk-management framework underdeveloped and forces corporates to rely on external or overseas structures instead of regulated domestic captive insurance solutions.

Significance of the Bill

• FDI limit raised to 100% as a major reform: Allowing 100% FDI is expected to attract substantial foreign capital into the insurance sector.
• Access to global best practices and technology: Full foreign ownership will enable Indian insurers to adopt advanced underwriting models, digital claims platforms, and sophisticated risk-assessment tools.
• Boost to innovation and competition: Increased foreign participation is likely to intensify competition, spur product innovation, and encourage the development of more customer-centric and technology-driven insurance solutions.

Source: IE

Context

• The President of India administered the oath of office to Raj Kumar Goyal as the Chief Information Commissioner of the Central Information Commission.

About Central Information Commission

• The Central Information Commission (CIC) is a statutory body in India, established under the provisions of the Right to Information Act (2005).

• The Central Information Commission consists of a Chief Information Commissioner (CIC) and not more than ten Information Commissioners (IC).
• The members are appointed by the President on the recommendation of a Committee consisting of:
  • The Prime Minister as the Chairperson,
  • The Leader of Opposition in the Lok Sabha, and
  • A Union Cabinet Minister nominated by the Prime Minister.
• Term of office: The Chief Information Commissioner, or Information Commissioners, as the case may be, shall hold office for a period of three years from the date on which he enters upon his office.
• Jurisdiction: It extends over all Central Public Authorities.

Eligibility Criteria

• Section 12(5) of the RTI Act 2005 provides that the CIC and IC shall be
  • Persons of eminence in public life with wide knowledge and experience in law, science and technology, social service, management, journalism, mass media or administration and governance.
  • Shall not be a Member of Parliament or Member of the Legislature of any State or Union Territory as the case may be , or hold any other office of profit or connected with any political party or carrying on any business or pursuing any profession.

Powers and Functions

• While inquiring, the Commission has the powers of a civil court in respect of the following matters:
  • Summoning and enforcing attendance of persons and compelling them to give oral or written evidence on oath and to produce documents or things; 
  • Requiring the discovery and inspection of documents; 
  • Receiving evidence on affidavit; 
  • Requisitioning any public record from any court or office; 
  • Issuing summons for examination of witnesses or documents; and 
  • Any other matter which may be prescribed.
• During the inquiry of a complaint, the Commission may examine any record which is under the control of the public authority and no such record may be withheld from it on any grounds. 
• The decisions of the Commission are final and binding.

Source: PIB

In News

• Allahabad High Court categorically held that live-in relationships are not illegal and that consenting adults have the constitutional right to live together with dignity and safety, irrespective of marital status.

Key Observations of the Allahabad High Court

• Live-in relationship is not an offence: Living together without marriage does not violate any law in India if both partners are adults and give free consent.
• Right to life and personal liberty: The Court emphasized that Article 21 of the Constitution guarantees the right to life, dignity, and personal freedom to all individuals, including those in live-in relationships.
• State’s duty to protect: Once adults choose to live together, the State is duty-bound to ensure their safety, even against threats from family or society.
• Social Morality vs Constitutional Morality: The Court clearly prioritised constitutional morality over social morality.
• Evidentiary Presumption of Marriage: The Court referred to Section 114 of the Indian Evidence Act, 1872, and Section 119(1) of the Bharatiya Sakshya Adhiniyam, 2023.
  • These provisions state that if a man and woman cohabit for a significant period in the nature of husband and wife, the law may presume them to be married.

Key Supreme Court Judgments on Live-in Relationships

• Tulsa v. Durghatiya (2008): Children born from prolonged live-in relationships cannot be treated as illegitimate.
  • Ensures inheritance and dignity of children.
• D. Velusamy v. D. Patchaiammal (2010): The Court clarified the concept of “relationship in the nature of marriage” under the Domestic Violence Act.
  • Conditions laid down like a couple must hold themselves out as husband and wife, must be of legal age & must be otherwise qualified to marry.
• Indra Sarma v. V.K.V. Sarma (2013): Recognised that live-in relationships may be morally debated, but courts must deal with social realities.
• Shafin Jahan v. Asokan K.M. (2018): The Court held that the right to marry a person of one’s choice is an integral part of Article 21.

Source: TOI

In News

• Recently, the Supreme Court ruled that corporate social responsibility (CSR) inherently includes environmental responsibility.

Key Observations by the Court

• Corporations as Constitutional Actors: The Court held that corporations are not merely profit-making entities, but constitutional actors within society.
  • As legal persons, corporations are bound by Fundamental Duties, particularly Article 51A(g) of the Constitution.
  • Article 51A(g) mandates protection and improvement of the natural environment, conservation of forests, lakes, rivers and wildlife & compassion for living creatures.
• CSR Is a Constitutional Obligation, Not Charity: The Court clarified that Corporate Social Responsibility (CSR), especially in environmental matters, cannot be treated as voluntary philanthropy.
• Polluter Pays Principle Applied to Wildlife Conservation: The Court invoked the Polluter Pays Principle in cases where corporate activities threaten or damage endangered species or habitats & corporations must bear the financial burden of restoration.

Corporate Social Responsibility (CSR) 

• It is a management framework that integrates social and environmental considerations into business operations and stakeholder interactions, reflecting a long-term commitment to societal welfare.
• The concept of CSR in India was first introduced through the 2009 Voluntary Guidelines  by the Ministry of Corporate Affairs and later refined in the 2011 National Voluntary Guidelines on Social, Environmental, and Economic Responsibilities of Business. 
• The 21st Report of the Parliamentary Standing Committee on Finance highlighted the need for statutory CSR provisions, noting that annual disclosures would ensure compliance. 
• Consequently, the Companies Act, 2013 made it mandatory for certain large companies, both listed and unlisted, to spend at least 2% of their average net profit on CSR activities.

Criteria for CSR Eligibility

• According to the section 135(1) of the Companies Act, 2013 read with the Companies (CSR Policy) Rules, 2014, companies with net worth of Rs 500 crore and above or turnover of Rs 1,000 crore and above or net profit of Rs 5 crore and above have to spend two per cent of average net profits of last three years.
• Notably, a holding or subsidiary of a company is not required to comply with the CSR provisions unless the holding or subsidiary itself fulfils the eligibility criteria prescribed under section 135(1) stated above.

Activities Permitted under CSR

• The Schedule VII of the Companies Act lists out a set of activities that firms can include within their CSR activity. 
• These include Eradicating hunger, poverty, malnutrition, Promoting health care including preventive health and sanitation, Promoting education, Promoting gender equality, empowering women, Ensuring environmental sustainability, ecological balance, Protection of national heritage, art and culture, Measures for the benefit of armed forces veterans, war widows and their dependents, Project on rural development and ensuring environmental sustainability etc.
• They can also contribute to the Prime Minister’s National Relief Fund or any other fund set up by the Central government for socio-economic development.

Importance of CSR

• It promotes equitable development by addressing social inequalities.
• It encourages environmentally responsible practices, including conservation and renewable energy.
• It ensures disclosure of CSR spending in annual reports.
• It supports education, healthcare, sanitation, and livelihood initiatives.
• It aligns corporate efforts with government campaigns like Swachh Bharat Abhiyan, Skill India, and Digital India.

Emerging Issues

• While CSR spending has surged but  concerns remain about the impact and monitoring of projects.
• There are Greenwashing Risks because some companies focus on optics rather than genuine impact.
• CSR funds often cluster in urban or industrial areas, leaving rural regions underserved.
• Smaller firms struggle with reporting and regulatory requirements.

Conclusion

• CSR in India has evolved from voluntary charity to a legal and moral responsibility, linking corporate profits with public welfare.
• To address challenges like environmental sustainability, equitable distribution, and accountability, CSR must move beyond compliance and become a strategic tool for inclusive and sustainable national development.

Source :TH

Context

• India designated Siliserh Lake and Kopra Jalashay as its 95th and 96th Ramsar Sites, increasing the country’s total to 96, up from 26 in 2014.

What are the Wetlands?

• The Ramsar Convention’s definition for wetlands includes: 
  • “areas of marsh, fen, peatland or water, whether natural or artificial, permanent or temporary, with water that is static or flowing, fresh, brackish or salt, including areas of marine water the depth of which at low tide does not exceed six metres”.
• Human-made wetlands: Fish and shrimp ponds, farm ponds, irrigated agricultural land, salt pans, reservoirs, gravel pits, sewage farms and canals. 

What is the Ramsar Convention?

• The Ramsar Convention is one of the oldest inter-governmental accords signed by member countries to preserve the ecological character of their wetlands of international importance.
• It was signed on February 2, 1971 in Ramsar, Iran and came into force in 1975.
  • India became a signatory to the Ramsar Convention in 1982.

Newly Designated Ramsar Sites in Rajasthan

• Siliserh Lake: It is a man-made freshwater lake, constructed in 1845 by Maharaja Vinay Singh of Alwar.
  • It was originally built to meet the drinking water needs of Alwar city.
  • The lake is situated close to the Sariska Tiger Reserve, enhancing its ecological significance.
• Kopra Jalashay: Located near Bilaspur, this is the first-ever Ramsar site in Chhattisgarh.
  • It is a reservoir situated in the upper catchment of the Mahanadi River and serves as a freshwater source and biodiversity habitat.

Source: TOI

Context

• A new study published in Current Biology explains the cellular adaptations that enable mangrove species to tolerate extreme salt stress, offering insights for developing salt-tolerant crops in the future.

Key Highlights of the Study

• Key cellular traits (not stomata-based): Mangroves do not rely on smaller or more numerous stomata to increase photosynthesis.
  • Instead, they exhibit: unusually small leaf epidermal pavement cells and thicker cell walls, which together give them more mechanical strength to tolerate low osmotic potentials.
• Salt management strategies
  • Salt exclusion: Some mangroves have waxy root layers that filter out salt before water enters the plant.
  • Salt secretion: Other species absorb salt but secrete it through specialised leaf tissues.

Mangroves

• A mangrove is a small tree or shrub that grows along coastlines, taking root in salty sediments, often underwater. 
• Mangroves are flowering trees, belonging to the families Rhizophoraceae, Acanthaceae, Lythraceae, Combretaceae, and Arecaceae.
• Features:
  • Saline Environment: A speciality of mangroves is that they can survive under extreme hostile environments such as high salt and low oxygen conditions.
    • The roots filter out 90% of the salt they come into contact with within the saline and brackish water.
  • Low oxygen: Underground tissue of any plant needs oxygen for respiration. The mangrove root system absorbs oxygen from the atmosphere.
  • Store Freshwater: Mangroves, like desert plants, store fresh water in thick succulent leaves.
  • Mangroves are viviparous: Their seeds germinate while still attached to the parent tree. Once germinated, the seedling grows into a propagule. 
• The Sundarbans in West Bengal are the largest mangrove region in the world and a UNESCO World Heritage Site.
• The second largest mangrove forest in India is Bhitarkanika (Ramsar site) in Odisha created by the two river deltas of Rivers Brahmani and Baitarani.

Importance of Mangroves

• Natural Coastal Defence: A mature mangrove belt (50 years old and 100–1,000 m wide) can reduce wave energy by 7–55%, significantly lowering the impact of cyclones, storm surges and coastal flooding compared to non-mangrove coastlines.
• Biodiversity Hotspots: India’s mangroves support about 4,011 species, including 920 plant species and 3,091 animal species.
• Climate Change Mitigation (Blue Carbon): Mangroves store 7.5–10 times more carbon per acre than tropical forests.
• Livelihood and Economic Security: Mangrove ecosystems support millions of livelihoods globally through fisheries, aquaculture, eco-tourism and restoration activities, providing income security for vulnerable coastal communities.
• Cost-effective Nature-based Solutions: By combining disaster risk reduction, biodiversity conservation and carbon sequestration, mangroves offer a low-cost, high-impact solution compared to engineered coastal defences.

Source:PIB

Context

• NITI Aayog has released the report titled “Deepening the Corporate Bond Market in India”.

About

• The report examines the current state, challenges, and future roadmap for strengthening India’s corporate bond market—a key financing avenue for corporations, infrastructure, MSMEs, and emerging sectors.
  • A deep and liquid corporate bond market helps mobilise long-term capital, reducing over-reliance on bank credit and supporting economic growth.
  • It is critical for financing infrastructure, climate actions, MSMEs, and emerging sectors aligned with Viksit Bharat 2047 goals.

What is a Corporate Bond?

• Corporate bonds are debt securities issued by private and public corporations. 
• Companies issue corporate bonds to raise money for a variety of purposes, such as building a new plant, purchasing equipment, or growing the business. 
• When one buys a corporate bond, one lends money to the “issuer,” the company that issued the bond. 
• In exchange, the company promises to return the money, also known as “principal,” on a specified maturity date. Until that date, the company usually pays you a stated rate of interest, generally semiannually. 
• While a corporate bond gives an IOU (I owe you) from the company, it does not have an ownership interest in the issuing company, unlike when one purchases the company’s equity stock.

Major Highlights of the Report

• Growth and Current Status: Outstanding corporate bonds rose from ?17.5 trillion (FY2015) to ?53.6 trillion (FY2025), growing at ~12% annually.
  • Market size is 15–16% of GDP, improved but still below peers like South Korea, Malaysia and China.
  • Corporate bond fundraising is now approaching bank credit levels, signalling a gradual shift to market-based financing.

• Strategic Importance: A deep corporate bond market is indispensable for a $30 trillion economy by 2047, enabling mobilisation of long-term, low-cost capital for infrastructure, industry, climate action and emerging sectors.
  • It complements banks, reduces systemic concentration risks, strengthens monetary transmission, and supports a resilient financial architecture.
• The report forecasts that India’s corporate bond market has the potential to exceed ?100–120 trillion by 2030 (approximately $1.3–1.4 trillion), provided deeper structural reforms and institutional capacity-building are undertaken.
• Equity vs. Bond Market Imbalance: India’ s equity market is valued at USD 4.8 trillion while the bond market is valued at USD 642 billion.
  • Equity markets are nearly 7 times larger than bond markets, indicating significant imbalance
• Structural Limitations:
  • Issuer concentration: Dominated by top-rated corporates; limited MSME participation.
  • Investor concentration: Heavy reliance on institutional investors; low retail and FPI participation.
  • Market structure: Private placements dominate; secondary market liquidity is shallow.
  • Regulatory frictions: Overlapping regulators, high compliance costs, procedural delays.
  • Investment constraints: Insurance and pension funds face limits on lower-rated securities.
  • Weak enablers: Inefficient debt recovery, tax asymmetries, high transaction costs.
• Economic Benefits of a Deep Bond Market:
  • Channels institutional and household savings into productive investment.
  • Supports development of risk management tools.
  • Provides stable financing for infrastructure, green transition, MSMEs and innovation-led sectors.
• Global Experience & Lessons: Countries like US, South Korea, Singapore and Thailand show success through:
  • coherent and unified regulation;
  • strong market infrastructure;
  • active market-making and deep secondary markets;
  • streamlined disclosures and credit enhancement mechanisms.
• These features enhance liquidity, investor diversity and financing depth.

Reforms Undertaken in India

• SEBI: SEBI has introduced electronic trading through the Request for Quote (RFQ) platform, facilitated retail access through online bond platforms, strengthened governance standards for credit rating agencies and debenture trustees, and simplified issuance norms. 
• RBI: The RBI has enhanced settlement architecture, introduced tri-party repos and credit default swaps, and supported the development of repo and clearing mechanisms. 
• Government: Additionally, the Government has promoted Infrastructure Investment Trusts (InvITs), Real Estate Investment Trusts (REITs), and green finance initiatives to encourage long-term investment and deepen capital markets. 
• Collectively, these reforms have laid a strong foundation for a more transparent, accessible, and technology-driven bond market ecosystem. 

Reform Roadmap (Phased Approach)

• Short-term priorities: Streamline regulations and improve inter-regulatory coordination.
  • Strengthen market infrastructure and digital access.
  • Simplify issuance for wider issuer participation.
  • Build confidence via quick wins and early liquidity improvements.
• Medium to Long-term priorities: Unified regulatory architecture and stronger resolution mechanisms.
  • Deeper secondary markets with active market-making and repo facilities.
  • Broader issuer base (mid-sized firms, new asset classes).
  • Product innovation: long-tenor bonds, credit-enhanced instruments, sustainability-linked bonds.
  • Expand investor base (insurance, pension, retail, FPIs).
  • Leverage digital innovations (tokenised bonds, integrated data platforms).

Source: PIB

Context

• The Union Finance Minister introduced the Securities Markets Code Bill 2025 in the Lok Sabha.

About

• The Bill proposes to consolidate the;
  • Securities Contracts (Regulation) Act, 1956, 
  • Securities and Exchange Board of India (SEBI) Act, 1992, and 
  • The Depositories Act, 1996.

Key Provisions

• Reforms in SEBI’s Composition: The strength of the SEBI Board is proposed to be increased from 9 to 15 members, including the Chairperson. The reconstituted Board will include;
  • The Chairperson.
  • Two officials appointed by the Central Government.
  • One ex-officio member from the Reserve Bank of India.
  • Eleven other members, of whom at least five will be whole-time members. Currently there are three full-time members.
• Members of the SEBI Board are mandated to disclose any direct or indirect interests before participating in decision-making.
• Decriminalisation and Enforcement Framework: The Bill also proposed to decriminalise violations of “minor, procedural and technical nature” into civil penalties to “facilitate the ease of doing business and to reduce the compliance burden.”
  • The Bill would bring “unlawful gains or losses” under civil penalties and limit punishments only to cases such as insider trading or trading while in possession of material or non-public information.
• Limitation on Inspections: In the case of contravention of any rules or provisions of the code, no inspection can be done if eight years had passed from the date of contravention. 

Significance of the Bill

• It endeavours to build a principle-based legislative framework to reduce the compliance burden, improve regulatory governance, and enhance the dynamism of technology-driven securities markets.
• The Bill aims to strengthen investor protection and improve the ease of doing business in the country’s financial markets.
• By consolidating laws and rationalising penalties, it supports India’s objective of becoming a globally competitive financial market.

Concerns of the Bill

• Concentration of Powers in SEBI: The Bill vests legislative (rule-making), executive (enforcement), investigative, and adjudicatory powers in SEBI.
  • Such concentration is seen as violating the principle of separation of powers, which seeks to prevent misuse of authority and ensure institutional checks and balances.
• Delegation of Legislative Functions: Several core policy matters, such as the scope of regulation, registration requirements, penalties, exemptions, and even the definition of “securities”, are left to subordinate legislation (rules and regulations).
• Democratic Accountability: By granting broad discretion to the executive and the regulator, Parliament’s role is reduced to that of an enabling body, rather than a substantive law-making authority.
• Coercive Enforcement Powers: Wide coercive powers such as search, seizure, attachment of property, freezing of bank accounts, and ex-parte interim orders, lacking adequate safeguards.

Way Ahead

• Ensure separation of investigative, enforcement, and adjudicatory functions within SEBI to prevent institutional bias.
• Strengthen parliamentary oversight and accountability through regular reporting.
• Adopt a proportional, risk-based regulatory approach, limiting criminal sanctions to serious market abuse.

Source: AIR

Context

• The Ministry of Statistics and Programme Implementation (MoSPI) has released a discussion paper outlining major methodological changes in India’s GDP estimation.

About

• In 2024, MoSPI has set up a 26-member Advisory Committee on National Accounts Statistics to decide the base year for GDP data.
  • Biswanath Goldar has been appointed as its chairman.
• For GDP, the new series is scheduled to be released on February 27, 2026 with financial year 2022-23 as base year.

About Gross Domestic Product (GDP)

• GDP is the total monetary value of all final goods and services produced within a country’s domestic territory during a specific period (usually a quarter or a year).
• Current base year used 2011–12.
• Released By: National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
• Calculation of GDP: GDP is calculated using three main methods;

• The Expenditure Approach: This method sums up all spending on final goods and services in the economy.
• The Income Approach: This method sums all incomes earned by factors of production (labor, capital).
• The Production/Value-Added Approach: This method adds up the value added by each industry at every stage of production.

What is Base Year?

• A base year is a benchmark year used for comparison in economic and statistical calculations. 
• It provides a reference point against which current values of indicators like GDP, CPI, and IIP are measured to track real changes over time.
• Significance: 
  • It allows us to remove the effect of inflation and see real growth.
  • Ensures that the data reflects the current structure of the economy, consumption patterns, and prices.

Need for the Change of the Base Year

• India’s economy has undergone structural changes due to digitisation, formalisation, GST, and changing consumption patterns.
• Existing GDP estimates rely partly on outdated surveys and static ratios, limiting accuracy.
• Persistent and volatile GDP discrepancies have reduced transparency and interpretability of growth numbers.
  • GDP is estimated using both production and expenditure approaches, but differences in data sources, coverage gaps, valuation methods, and time lags often lead to mismatches.
  • Large discrepancies result in significant revisions to GDP estimates later, reducing predictability and confidence among policymakers, investors, and analysts.

Key Changes in the New GDP Series

• Elimination of ‘Discrepancies’: MoSPI plans to integrate Supply and Use Tables (SUTs) directly into annual GDP compilation.
  • Supply and use tables show how different goods and services are supplied by domestic industries and imports and how they are distributed between different intermediate or final uses, including exports. 
  • This approach aims to limit discrepancies in early estimates and fully eliminate them in final estimates
• Use of Digital and Administrative Data: Increased reliance on datasets such as;
  • e-Vahan (vehicle registrations)
  • GST and other administrative records
• Updated Surveys as Data Backbone: Key surveys feeding into the new series include;
  • Household Consumption Expenditure Survey (HCES) 2022–23 and 2023–24.
  • Updated surveys of formal and informal enterprises.

Challenges Ahead

• GDP estimation remains methodologically complex, even with improved tools.
• Integrating multiple administrative datasets poses data quality and consistency challenges.
• Ensuring timely availability of reliable survey data is critical.
• Transition to a new series may initially create comparability issues for long-term analysis.

Concluding remarks

• The revision of India’s GDP series marks a step towards improving the accuracy, transparency, and credibility of national income statistics. 
• By updating the base year, and eliminating discrepancies the new framework is better aligned with the realities of a rapidly formalising and digitising economy.

Source: IE

Context

• The Global Value Chain Development Report 2025 has been released by the World Trade Organization (WTO).

What is the Global Value Chain (GVC)?

• A Global Value Chain (GVC) refers to the full range of activities involved in producing a good or service, when these activities are spread across multiple countries. 
• These activities include: Design & R&D, Sourcing of raw materials, Production and assembly, Logistics and distribution, Marketing, sales & after-sales services.
  • Each stage adds value, and different countries participate in different stages based on their comparative advantage.
• Example: A smartphone may be designed in the US, components manufactured in East Asia, assembled in Vietnam/India, and sold globally.

Major Findings of the Report

• Recent Trends: GVCs remain central to international trade, accounting for about 46.3% of global trade in value-added terms, only slightly below the 2022 peak.
  • Firms and governments are prioritizing resilience e.g., diversification of suppliers alongside efficiency.
• India Specific Findings: India, alongside the Philippines and several African economies, has strengthened its position in business-process and digital service exports.
  • India has risen to become part of the top 10 value adding economies since the onset of the pandemic, with a share of 2.8% of global Domestic Value Added (DVA) in exports in 2024.
  • This reflects India’s growing role in digital trade and services within global value chains.
• Shifts in GVC Structure: Services have outpaced goods in GVC participation,  accounting for more than one-third of value added in manufacturing exports.
• Regional Reconfiguration: Asia, Europe, and North America remain dominant in GVC trade.
• Reshoring and Regionalization Trends: Major economies including China, the United States, and the European Union are actively reducing dependence on foreign value-added in domestic consumption.
  • This reshoring trend reflects shifting priorities toward supply chain security and reduced reliance on external sources.
• Electric Vehicle (EV) Value Chains: The rise of EV production is reshaping automotive supply chains. China accounted for a large share of global EV output as of 2023.
  • Critical minerals (e.g., lithium, cobalt) are central to EV supply, offering new opportunities for resource-rich developing economies, but also posing risks due to supply concentration.
• Technological Change & GVCs: Digitalization, automation, AI and advanced ICT are enabling finer fragmentation of production, lowering coordination costs and creating new resilient network structures.
  • Economies with strong absorptive capacity and infrastructure benefit most, while others risk being left behind.

Challenges for India in GVC Integration

• Infrastructure and Logistics: High logistics costs, port inefficiencies, and delays reduce competitiveness.
• Regulatory and Policy Uncertainty: Frequent policy changes and compliance burden discourage long-term investment.
• Limited Trade Agreements: India’s relatively fewer FTAs limit preferential access to major markets.
• Skill and Technology Gaps: Shortage of skilled labour in advanced manufacturing.
• Sustainability Barriers: Carbon border measures and ESG norms may raise compliance costs for Indian exporters.

Recommendations

• For Policymakers:
  • Promote digital and logistics infrastructure to broaden participation.
  • Align climate and trade policies to reinforce environmental and competitiveness objectives.
  • Strengthen trade finance access to close gaps for SMEs and developing economies.
  • Encourage transparent and coordinated industrial policies that support resilience without undermining global cooperation.
• For Firms: 
  • Invest in digital tools, AI and automation to enhance resilience and adaptability.
  • Diversify supply networks to balance efficiency with risk mitigation.
  • Leverage regional networks where strategic advantages exist.

Source: WTO

Context

• The Union Cabinet has approved the Atomic Energy Bill, 2025, titled SHANTI (Sustainable Harnessing of Advancement of Nuclear Technology for India).
  • The Bill seeks to create a unified and modern legal framework for India’s nuclear sector.

About

• Traditionally, nuclear power plants in India have been owned and operated only by state-owned Nuclear Power Corporation of India Ltd (NPCIL) and its fully-owned subsidiary Bharatiya Nabhikiya Vidyut Nigam (BHAVINI).
• To allow private sector participation government has to amend key legislations;
  • Atomic Energy Act, 1962, a framework for nuclear energy development and regulation.
  • Civil Liability for Nuclear Damage Act, 2010, ensuring compensation mechanisms for nuclear incidents.

Key Provisions of the Bill

• Partial Opening of the Nuclear Value Chain: The Bill allows private and global companies to participate in atomic mineral exploration, nuclear fuel fabrication and manufacturing of nuclear equipment and components.
  • Core and strategic areas such as reactor operation and weapons-related activities will continue to remain under government control.
• Revamp of the Nuclear Liability Regime: The Bill proposes a redesigned liability framework to address long-standing investor concerns by;
  • Clearly defining liability responsibilities among operators, suppliers, and the government.
  • Introducing insurance-backed liability caps to limit financial uncertainty.
  • Providing government support beyond a fixed liability threshold.
• Nuclear Safety Authority: The legislation proposes the establishment of an independent nuclear safety authority.
  • This body will strengthen regulatory oversight, separate safety regulation from promotional roles, and enhance credibility and transparency.
• Dedicated Nuclear Tribunal: It calls for a dedicated tribunal to handle nuclear-related disputes, intended to streamline resolution and enhance transparency in the sector.

Strategic Rationale Behind the Reform

• India has set an ambitious target of 100 GW of nuclear power capacity by 2047. Achieving this goal requires large-scale capital infusion, advanced reactor technologies and Faster project execution.
• Energy Transition: Nuclear power provides clean, reliable baseload energy, complementing intermittent renewables.
  • It supports India’s commitments under climate agreements by reducing dependence on fossil fuels.
• Enhancing Energy Security: Diversifying energy sources through nuclear power reduces vulnerability to fuel imports and geopolitical shocks.

Way Ahead

• Clear Regulatory Framework: Establish a robust regulatory environment to ensure safety, compliance, and transparency, addressing concerns about accountability and national security.
• Public-Private Partnerships (PPPs): Promote partnerships where the government maintains oversight, while private players handle operations, innovation, and investment, ensuring a balance of interests.
• Gradual Implementation: Start with pilot projects and small-scale initiatives to test private sector involvement, ensuring risk management before large-scale implementation.

Source: TH

Context

• The Chairperson of the Select Committee of Lok Sabha presented the Report on the Insolvency and Bankruptcy Code (Amendment) Bill, 2025 to the Lower House.

Recommendations of Select Committee 

• The Committee has proposed fixing a three-month time limit for the National Company Law Appellate Tribunal (NCLAT) to decide insolvency appeals. 
• The definition of the term ‘service provider’ be suitably modified to include ‘registered valuer’ to the list of entities that are provided under the IBC, and the definition for ‘registered valuer’ be suitably inserted.
  • It also suggested that to maintain coherence, appropriate references to ‘registered valuer’ be included where the term service provider is used in the Amendment Bill and at all relevant places where it has a consequential effect. 
• On the corporate insolvency resolution process (CIRP), the committee proposed widening the definition of a resolution plan to allow more than one resolution plan for a corporate debtor undergoing CIRP.

Key Provisions of the Bill

• Mandatory Admission of CIRP: The bill mandates that the National Company Law Tribunal (NCLT) must admit an insolvency application within 14 days if the default is proven and the application is complete, removing judicial discretion on this timeline.
• Creditor-Initiated Insolvency Resolution Process (CIIRP): A new, largely out-of-court process for specific financial creditors has been introduced.
  • In this process, management remains with the debtor under the oversight of a Resolution Professional (RP), with a goal of completion within 150 days.
• Enhanced Role for Committee of Creditors (CoC) in Liquidation: The CoC is empowered to supervise the liquidation process and appoint or replace the liquidator, shifting control away from a solely NCLT-appointed liquidator.
• Streamlined Withdrawals: Withdrawal of an insolvency application is only permitted after the CoC is formed and before the first invitation for resolution plans, requiring 90% CoC approval to prevent tactical delays.

Source: AIR

Context

• The Union Budget 2026–27 is expected to unveil a policy direction on the next phase of public sector bank (PSB) reforms based on two parallel tracks—Consolidation 2.0 and calibrated dilution of government ownership.

What are the Reforms?

• Consolidation 2.0: The government is considering merging the five smallest PSBs with mid-sized banks with objectives to;
  • To create banks with sufficient scale, balance sheet strength, and market presence.
  • To reduce fragmentation in the PSB landscape.
• Ownership Reforms: 
  • FDI Limit Hike: Increasing the foreign direct investment (FDI) limit from 20% to 49%.
  • Gradual Dilution: Reducing government stake closer to 51% to allow independent capital raising.
  • Privatization: Renewing proposals to privatize two PSBs.
  • Operational Autonomy: Granting more freedom to PSB boards.

Factors Propelling Performance of India’s Banks

• Asset Quality Review (AQR): Launched in 2015 compelled banks to recognize the true state of their loan books, bringing hidden NPAs to light and strengthening the supervisory framework.
• Prompt Corrective Action (PCA) Framework: Helped restore the health of weak banks, followed by the consolidation of 27 PSBs into 12 by 2020.
• Insolvency and Bankruptcy Code (IBC): Introduced in 2016, along with complementary out-of-court resolution mechanisms, transformed India’s credit culture and improved recovery processes.
• Focused debt resolution: The pecuniary jurisdiction of Debt Recovery Tribunals (DRTs) was raised from ?10 lakh to ?20 lakh, enabling them to prioritize higher-value cases and improve recovery efficiency.
• RBI’s Prudential Framework for Resolution of Stressed Assets: Promotes early identification, reporting, and time-bound resolution of stressed loans, with incentives for lenders to act swiftly.

Challenges in India’s Banking Industry

• Hidden Stress in Loan Books: Despite lower headline NPAs, recoveries have not fully matched fresh slippages, particularly after pandemic-era restructuring.
• Basel III Transition: Large banks have strengthened capital buffers, but smaller banks face challenges in meeting capital adequacy, leverage, and liquidity norms.
• Financial Inclusion Constraints: Expansion into rural and underserved areas is constrained by gaps in digital literacy, connectivity, and financial awareness.
• Market Concentration Risks: Continued consolidation may reduce competition, potentially affecting customer choice, innovation, and efficiency in the long run.

Way Ahead

• Balanced Consolidation: Future mergers should prioritise complementary geographies, technology compatibility, and operational synergy rather than mere size expansion.
• Deepening Financial Inclusion: Investments in digital infrastructure, financial literacy, and last-mile connectivity are essential to convert access into meaningful usage.
• Cybersecurity Management: Enhanced supervisory oversight, stress testing, and cyber resilience frameworks are needed to safeguard financial stability.

Source: FE

Context

• The National Council of Applied Economic Research (NCAER) released the report “India’s Employment Prospects: Pathways to Jobs”, Underlining the role of skilling and small enterprises as key drivers of job creation in the country.

Key Findings of the Report

• Employment Trends: India’s self-employment dominance is due to economic necessity rather than entrepreneurial dynamism as most of the small enterprises function at subsistence level.
• Workforce Composition: India’s workforce could benefit greatly from upskilling, particularly with the advent of new technologies and AI.
  • Medium-skilled jobs dominate employment growth, especially in services, whereas manufacturing remains low-skill intensive.
• Increasing the skilled workforce share by:
  • 9 percentage points could generate 9.3 million jobs by 2030.
  • 12 percentage points could raise employment in labour-intensive sectors by over 13% by 2030.
• Role of Small Enterprises: Productivity of India’s smallest enterprises is central to the country’s employment future.
  • Enterprises using digital technologies employ 78% more workers than non-digital firms. A 1% increase in access to credit raises the expected number of hired workers by 45%.

What are the Challenges?

• Informal enterprises dominate India’s economy, especially Own Account Enterprises (OAEs) that do not hire workers.
  • A 10% increase in GVA in informal enterprises can lead to a 4.5% rise in hired workers.
• Low Coverage of Formal Training: As of 2024, only 4.1% of India’s workforce had received formal vocational training. 
• Structural Problems in the Skilling System: 
  • Training courses are poorly aligned with industry needs.
  • Many training centres suffer from low seat utilisation.
  • Placement outcomes remain weak.
  • Limited coordination between industry, training providers and state governments.

Key government Initiatives 

Policy Recommendations Highlighted in the Report

• Reforming the Skilling Ecosystem: 
  • Shift from supply-driven training to demand-aligned skilling.
  • Strengthen industry participation and placement-oriented outcomes.
  • Increase public investment in vocational education.
• Demand-Side Employment Strategy:
  • Prioritise labour-intensive manufacturing sectors such as textiles, garments, footwear, and food processing.
  • Align industrial incentives with employment multipliers rather than output alone.
• Boosting Informal Sector Productivity:
  • Expand access to formal credit for small and micro enterprises.
  • Promote digital adoption to improve productivity and hiring capacity.
  • Enable enterprise graduation from subsistence to growth-oriented models.

Source: AIR

Context

• The Union Minister of Rural Development and Agriculture & Farmers’ Welfare introduced the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin): VB G RAM G Bill, 2025 in Lok Sabha.

About

• It will replace the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA).
• The move will mark a shift from a “demand-driven framework” to a “supply-driven scheme”.

Key Statutory Provisions

• Enhanced Livelihood Guarantee: It will enhance the statutory wage employment guarantee to 125 from 100 days per rural household in every financial year, for adults who volunteer to undertake unskilled manual work.
• Centrally Sponsored Scheme: The scheme will be implemented as a Centrally Sponsored Scheme with shared responsibilities between the Centre and States.
  • The fund sharing pattern will be 90:10 for North-Eastern and Himalayan States/UT and 60:40 for all other States.
• Normative Allocation to States based: States will ensure transparent and need-based intra-State distribution of funds across Districts and Gram Panchayats, taking into account the category of the Panchayats and local developmental needs.
• Wage rate specification: Wage rates for unskilled manual work will be specified by the Central Government; until separate rates are notified, existing MGNREGA wage rates will apply. 
• Securing peak agricultural seasons: States will be empowered to notify in advance, a period aggregating to 60 days in a financial year covering peak sowing and harvesting during which works under the Bill will not be undertaken, facilitating sufficient farm labour at critical times. 
• Unemployment allowance: If eligible applicants are not provided work within the stipulated period, State Governments will be obliged to pay unemployment allowance. 
• State schemes within six months: Every State Government must notify its Scheme to operationalise the guarantee within six months of the Bill’s commencement.
• VGPP based planning: Planning will be undertaken through Viksit Gram Panchayat Plans, prepared by Gram Panchayats and integrated with national spatial planning systems. 
• Institutional Oversight: The Central Gramin Rozgar Guarantee Council and the State Gramin Rozgar Guarantee Councils shall be constituted for review, monitoring and effective implementation of the provisions of the legislation in their respective areas. 

Concerns with the Bill

• Excessive burden on States: Unlike MGNREGA, where the Centre bears 100% wage cost and 75% of material cost, the VB-G RAM G Bill mandates a 60:40 Centre–State funding pattern, many states may struggle to mobilise their 40% share.
  • It increases the risk of uneven implementation across states, reinforcing regional disparities.
• Lessons from PMFBY: Similar cost-sharing under PM Fasal Bima Yojana led to delays due to states’ inability to pay their 50% premium subsidy, causing poor coverage and credibility loss.
• Shift from demand-driven to supply-driven allocation: Earlier approach in MGNREGA was Bottom-up, demand-based estimation by states.
  • New Bill introduces Top-down “normative” allocation, with parameters decided unilaterally by the Centre.

Conclusion

• To cater to the changing aspirations, stronger convergence is required to establish an integrated, Whole-of-Government rural development framework covering several complementary Government schemes. 
• As national development advances, rural development programs require periodical revision to remain aligned with emerging needs and further aspirations. 

Source: PIB