General Studies Paper-2

Context

• India and the United Arab Emirates (UAE) reaffirmed their commitment to strengthening bilateral defence cooperation during the 13th India-UAE Joint Defence Cooperation Committee (JDCC) meeting, held in New Delhi.

Key Outcomes of the 13th JDCC Meeting

• Joint Manufacturing: India and UAE agreed to pursue joint manufacturing initiatives, replicating the model of collaboration between ICOMM (India) and CARACAL (UAE) for small arms production.
• Technology Co-Development: Discussions were held on co-developing next-generation technologies in emerging areas such as Artificial Intelligence, autonomy, and cybersecurity.
  • Memorandum of Understanding (MoU) was signed between the Indian Coast Guard and the UAE National Guard to deepen collaboration in Search and rescue operations, Anti-piracy missions, Pollution control response and Maritime situational awareness.

Significance of the Defence Cooperation

• Counterbalance to Regional Conflicts: India’s balanced approach in West Asia enhances its role as a stabilising, non-hegemonic partner, fostering regional trust amid ongoing tensions.
• Maritime Security: The UAE’s strategic location near the Strait of Hormuz complements India’s naval presence in the Arabian Sea and enhances collaborative maritime security.
• Joint maritime efforts strengthen sea lane security, trade route protection, and anti-piracy measures.
• India’s defence export and production capabilities receive a major boost through such partnerships, helping meet its target of ₹35,000 crore in defence exports by 2025.

UAE and India relations

• Political: India and the United Arab Emirates (UAE) established diplomatic relations in 1972.
• Multilateral Cooperation: India and the UAE are currently part of several plurilateral platforms such as I2U2 (India-Israel-UAE-USA) and UFI (UAE-France-India) Trilateral, etc.
  • UAE was also invited as a Guest Country to the G-20 Summit.
• Economic & Commercial: The Comprehensive Economic Partnership Agreement (CEPA) was signed in 2022, since the agreement, bilateral merchandise trade has nearly doubled from USD 43.3 billion in FY 2020-21 to USD 83.7 billion in FY 2023-24.
  • UAE is the second largest export destination of India (after the US) with an amount of nearly US$ 31.61 billion for the year 2022-23.
  • The Bilateral Investment Treaty (BIT) was signed in 2024 to protect and encourage bilateral investments by providing investor safeguards.
• Defence cooperation: It is steered through a Joint Defence Cooperation Committee (JDCC) at the Ministry level, with the signing of Agreement on Defence Cooperation in 2003, which came into effect in 2004.
  • The Desert Cyclone exercise 2024, marked a milestone in military cooperation.
• Space Cooperation: Indian Space Research Organisation (ISRO) and the UAE Space Agency signed an MoU regarding cooperation in the exploration and use of outer space for peaceful purposes in 2016.
• Indian Community: Indian expatriate community of approximately 3.5 million is the largest ethnic community in UAE constituting roughly about 35% of the country’s population.

Conclusion

• The deepening India–UAE defence partnership reflects a maturing strategic relationship that now encompasses not just trade and diaspora ties but also critical areas like defence innovation, regional security, and strategic autonomy.
• Joint defence engagements align with India’s broader objective of establishing a rules-based, multipolar regional order, especially in the Indo-Pacific and West Asia.

General Studies Paper-3

Context: The 15th Meeting of the Ramsar Convention (COP15), held in Victoria Falls, Zimbabwe, concluded with new resolutions on wetland restoration, protection of migratory birds and wetland species, and equitable governance.

15th Meeting of the Ramsar Convention (COP15)

• The Ramsar COP15 conference in Zimbabwe attended by some 3,000 delegates, was the second time that Africa has played host to a Ramsar Convention conference after Uganda hosted COP9 in 2005.
  • The conference, themed “Protecting Wetlands for Our Common Future”, gathered global stakeholders to address freshwater ecosystem threats.
• COP16 will be hosted by Panama in 2028.
  • Zimbabwe took over the three-year Ramsar Convention on Wetlands presidency from China.

Major Outcomes

• At COP15 of the Ramsar Convention, all 13 proposed resolutions were adopted, marking significant progress in global wetland protection and restoration.
• The resolutions focused on national action, monitoring, capacity building, integrating wetlands into climate adaptation, and disaster risk reduction.
• A key outcome was the Victoria Falls Declaration, emphasizing political will, resource mobilisation, and investment in sustainable wetland management.
• Its Highlights include commitments to restore degraded freshwater ecosystems, protect migratory birds, and adopt clearer criteria for designating Wetlands of International Importance.
• A new strategic plan with four goals and 18 targets was approved, though a major breakthrough in long-term financing was not achieved.
• The core budget was increased by 4.1% to CHF 15.5 million for 2025–2027.
• Additional resolutions addressed equitable governance, urban wetlands, traditional knowledge, and youth engagement.

India’s Position

• At the Ramsar COP15 in Victoria Falls, Zimbabwe, India successfully introduced and passed a resolution titled ‘Promoting Sustainable Lifestyles for the Wise Use of Wetlands’.
• The resolution, widely supported by 172 Ramsar Contracting Parties and international organizations, emphasizes the critical role of individual and societal choices in wetland conservation and promotes a ‘whole-of-society’ approach.

Importance 

• Wetlands are among the most productive and valuable ecosystems on Earth, supporting rich biodiversity and providing essential services such as water supply, food production, flood control, and climate regulation.
• They are critical for the survival of numerous species and offer major economic benefits through fisheries, agriculture, timber, energy, and tourism.
• They also hold deep cultural and spiritual significance for many communities.

Threats

• Wetlands face threats from pollution, climate change, dams, agriculture and aquaculture, and development
• Despite their importance, wetlands are under severe threat due to drainage, pollution, overuse, and land conversion.
• Global freshwater demand has drastically increased, contributing to water stress in many regions, with climate change further intensifying the crisis.

General Studies Paper-3

Context

• State finances and budgets reflect both macroeconomic resilience and local governance priorities, from infrastructure and education to healthcare and local employment initiatives.
• Tracking fiscal patterns of states is crucial for broader understanding of the economy.

Fiscal Trends of Indian States: FY2025 Review and Outlook

• The fiscal health of India remains a key pillar of macroeconomic stability. The fiscal trends for major Indian states in FY2025 using provisional actuals (PA), gives evolving fiscal landscape and expectations for FY2026.
• Major Indian states (focusing on 17 states) collectively account for ~90% of India’s GDP.
• Rising Fiscal Deficit in FY2025: The combined fiscal deficit of the 17 states widened to ₹9.5 trillion (3.2% of GSDP) in FY2025 PA from ₹7.8 trillion (2.9% of GSDP) in FY2024.
  • Capital spending contributed, rising by ₹678 billion (0.2% of GSDP).
• Revenue Trends: Revenue receipts growth slowed to 6.3% in FY2025 from 7.9% in FY2024.
  • Revenue expenditure, however, maintained a steady 9% growth, compressing fiscal space and worsening the revenue deficit.
• Centre vs States: While the Centre reduced its revenue deficit, states saw a surge, indicating sub-optimal fiscal quality.
  • A larger share of revenue deficit within total fiscal deficit implies less borrowing room for capital expenditure, which is more productive and growth-inducing.
• Capital Expenditure Patterns: FY2025 capex by the 17 states stood at ₹7.4 trillion, up ₹678 billion from FY2024, but the increase is lower than the FY2022-24 trend of ₹910–1,120 billion annually.
  • Capex undershot the Revised Estimates (RE) by ₹1.1 trillion, whereas the Centre overshot its target.
• Capex Surge: States like Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, Maharashtra, Tamil Nadu, and Karnataka witnessed a 42% YoY spike, reaching ₹2.2 trillion vs ₹1.5 trillion in March 2024.
  • Over 30% of annual capex was executed in March alone — higher than FY2024 — reflecting back-ended spending, often coinciding with March borrowing spikes.
  • The Centre’s special assistance for capital expenditure loans played a pivotal role.

Key Hurdles in State Finances

• Vertical Fiscal Imbalance: The Centre collects the bulk of tax revenue while States carry the burden of core expenditure (health, education, infrastructure).
  • It creates dependency on central transfers and limits autonomy.
• Delayed Transfers and GST Compensation: States often report delays in fund allocation, especially GST compensation, affecting budget planning and execution
  • Disputes within the GST Council and evolving revenue estimates add to uncertainty.
• Borrowing Constraints: The FRBM (Fiscal Responsibility and Budget Management) Act restricts deficit spending, limiting investment in high-impact sectors.
  • States need permission to borrow beyond certain limits—even for welfare schemes or emergency relief.
• Overreliance on Loans and Off-Budget Borrowing: Several States resort to market borrowings or bypass budget scrutiny via public sector enterprises and special purpose vehicles (SPVs).
  • It can obscure debt levels and reduce transparency.
• Populist Spending vs. Productive Investment: In election cycles, revenue may be diverted to freebies and subsidies, leaving little room for capital investment.
• Weak Revenue Mobilization: Many States underperform in generating internal revenue, relying heavily on shareable taxes and grants.
  • Agricultural income – entirely under State domain – remains largely untaxed.

Government Initiatives

• Finance Commission Recommendations:
  • Vertical and Horizontal Devolution: Periodic recommendations on tax sharing and grants-in-aid to ensure equity and efficiency.
  • Performance-Based Incentives: States rewarded for improvements in sanitation, education, and fiscal management (e.g., 15th Finance Commission).
• Fiscal Responsibility and Budget Management (FRBM) Act: Many states have adopted their own FRBM laws to cap fiscal deficits and improve transparency.
  • Encourages medium-term fiscal planning and accountability.
• Atmanirbhar Bharat Borrowing Incentives: States allowed additional borrowing (up to 2% of GSDP) if they implemented reforms in:
  • One Nation One Ration Card;
  • Ease of Doing Business;
  • Power sector;
  • Urban local body revenue enhancement
• GST Compensation Mechanism: Post-GST rollout, the Centre assured compensation for revenue shortfalls.
  • Though time-bound, it helped states transition to the new tax regime.
• Digital Public Financial Management Systems: Platforms like PFMS and e-Kuber streamline fund transfers, track expenditures, and reduce leakages.
  • Enhances transparency and real-time monitoring.
• Debt Consolidation and Sinking Funds: States encouraged to set up Consolidated Sinking Funds for debt repayment.
  • RBI guidelines promote prudent debt management.

Reform Pathways for Strengthening State Finances

• Revenue Mobilization:
  • Property Tax Reforms: Digitization and rationalization to improve collections.
  • Agricultural Income Tax Debate: Some experts advocate taxing high-income farmers under state jurisdiction.
  • User Charges and Non-Tax Revenue: Better pricing of public services to recover costs.
• Expenditure Efficiency:
  • Outcome-Based Budgeting: Linking spending to measurable results.
  • Rationalization of Subsidies: Targeted delivery through DBT to reduce fiscal burden.
• Borrowing and Debt Management:
  • Market-Based Borrowing: States issue bonds with credit ratings to attract investors.
  • Off-Budget Borrowings: Need for transparency in loans taken via PSUs and SPVs.
  • Institutional Capacity Building: State Fiscal Research Units: For evidence-based policy formulation.
  • Training Programs: For local officials in budgeting, forecasting, and compliance.
• Cooperative Federalism:
  • GST Council Reforms: Greater voice for states in rate-setting and dispute resolution.
  • Flexibility in Centrally Sponsored Schemes: Allowing states to adapt schemes to local needs.

General Studies Paper-3

Context

• Recently, the World Economic Forum (WEF) revealed that India secured 71st position in 2025, down from 63rd in 2024 and 67th in 2023 because of several ‘structural challenges’.

India’s Global Standing in Energy Transition

• The World Economic Forum (WEF), in collaboration with Accenture, recently released its 2025 Fostering Effective Energy Transition report.
• It evaluates 118 countries based on the Energy Transition Index (ETI), which assesses their performance and readiness for clean energy transformation.
  • India ranked 71st with an ETI score of 53.3, down from 63rd in 2024.
  • Sweden retained the top spot with an ETI score of 77.5.
• Renewable Energy Expansion: Increased from 48 GW in 2009 to 204 GW in 2024, achieving a 10% CAGR.
  • Projected solar PV capacity for 2025–2029 is 188–278 GW, making India a global leader (IRENA, 2025).

Persistent Structural Challenges

• Fossil Fuel Dependence: India is the third-largest renewable energy producer (1.77 EJ) after China (13.9 EJ) and the U.S. (6.65 EJ).
  • Fossil fuels remain dominant in the national energy mix.
  • Coal consumption rose to 21.98 Exajoules (EJ) in 2023, up from 6.53 EJ in 1998, marking a 5% CAGR.
  • Petroleum use has increased, especially in agriculture, between 2022 and 2023 (NITI Aayog, 2024).
• Unequal Access to Clean Energy: Disparities in clean cooking fuel access continue to plague rural and low-income households:
  • The Pradhan Mantri Ujjwala Yojana (PMUY) has expanded LPG access to Below Poverty Line (BPL) households.
  • However, sustained usage is limited due to cost, supply issues, and inconvenience, leading to fuel stacking (use of multiple fuels).

Other Challenges

• High Fossil Fuel Dependence: Despite progress, fossil fuels still supply the bulk of India’s primary energy and are responsible for 75% of total greenhouse gas (GHG) emissions.
• Rising Energy Demand: India’s primary energy supply has grown by 54.5% in the last decade due to its booming population and economic growth. Meeting future demand sustainably remains a challenge.
• Emissions Intensity: India has reduced emissions intensity of its GDP by 33% from 2005-2019, but steep further reductions are still required for net-zero aims.
• Financing & Investment: Achieving massive renewable targets and grid modernization will need sustained and increased domestic and international investment.
• Grid Integration & Flexibility: Integrating high shares of variable renewables (solar, wind) requires developing grid storage, transmission upgrades, and market reforms to ensure reliability.
• Technological Gaps: Wider adoption of emerging technologies like green hydrogen, battery storage, and advanced grid management is needed for deep decarbonization.
• Data & Governance: Accurate, timely energy data and robust policy frameworks are required for evidence-based decision making and proper monitoring of transition progress.
• Social Considerations: The transition must remain inclusive – ensuring energy access, affordability, and job creation while navigating potential transitions in coal-dependent regions.

Related Flagship Missions & National Strategies

• National Solar Mission: Aims for 100 GW of solar capacity, promoting grid-connected and off-grid solar projects.
• National Green Hydrogen Mission: Targets 5 million metric tonnes of green hydrogen annually by 2030, with ₹19,744 crore allocated for incentives and R&D
• PM Surya Ghar: Muft Bijli Yojana: Supports rooftop solar installations for households, with over 17 lakh systems already deployed.
• Production Linked Incentive (PLI) Scheme: ₹24,000 crore allocated to boost domestic manufacturing of solar PV modules and wind turbines.
• Viability Gap Funding (VGF) for Battery Energy Storage Systems (BESS): ₹5,400 crore scheme to build 30 GWh of storage capacity.
• Elevated Investment Caps: NTPC and NLCIL received approval to invest ₹20,000 crore and ₹7,000 crore respectively in renewable projects.
• National Transmission Plan for 500 GW: Ensures seamless evacuation and integration of renewable power into the grid.
• Interstate Transmission System (ISTS) Waiver: Reduces project costs by waiving transmission charges until 2028.
• Renewable Purchase Obligations (RPOs): Mandate DISCOMs to procure a fixed percentage of power from renewable sources.
• Green Open Access Rules: Facilitate easier access for consumers to buy renewable energy directly from producers.
• Strengthened Power Purchase Agreements (PPAs): Provide long-term certainty for investors.

Way Forward: Opportunities to Catalyze Energy Transition

• Infrastructure and Technology: India needs to focus on:
  • Grid stability, energy storage, and interconnectors.
  • Off-grid solutions for electrifying remote regions.
  • Strengthening schemes like PM Surya Ghar Muft Bijli Yojana through better monitoring and accountability.
• Green Finance and Industrial Alignment: India needs robust financial support to de-risk and scale clean energy projects:
  • The National Green Hydrogen Mission (2023) offers state-specific incentives tied to industrial strengths.
  • The National Investment and Infrastructure Fund (NIIF) can help co-finance clean energy projects by lowering systemic investment risks.
• Policy Stability and Long-Term Capital: Stable and adaptive energy policies to attract long-term risk capital.
  • Regulatory clarity to bolster investor confidence in India’s energy systems.

Conclusion

• India continues to demonstrate key strengths, including improvements in energy efficiency, clean energy investments, and progressive energy policies, despite a downward shift in rankings.
• A multi-tiered strategy – combining targeted policies, financing mechanisms, and decentralized infrastructure – will be crucial to align economic growth with sustainable energy goals.

General Studies Paper-2

Context

• The Supreme Court reserved its verdict on petitions challenging the age cap for couples seeking to have a child through surrogacy.
• The Assisted Reproductive Technology (Regulation) Act, 2021 and the Surrogacy (Regulation) Act, 2021, prescribe the legal framework for surrogacy.

Surrogacy (Regulation) Act, 2021

• Surrogacy: The Act defines surrogacy as a practice where a woman gives birth to a child for an intending couple with the intention to hand it over to them after the birth.
  • It is permitted only for altruistic purposes or for couples who suffer proven infertility or disease.
  • Surrogacy is prohibited for commercial purposes including for sale, prostitution or any other forms of exploitation.
• Abortion: Abortion of such a fetus is allowed only with the consent of the surrogate mother and the authorities and must adhere to the provisions of the Medical Termination of Pregnancy Act.
• Eligibility and Conditions for Couples: A couple should procure certificates of eligibility and essentiality in order to have a child via surrogacy.
  • The couple is deemed ‘eligible’ if they have been married for five years, the wife is aged between 23-50 years and the husband is between 26-55 years, and single women must be between the ages of 35 and 45 years.
  • The couple must not have any living child (biological, adopted or surrogate).
  • A child with mental or physical disabilities, or one suffering from a life-threatening disorder has been exempted from the above criterion.
  • The couple can get an ‘essential’ certificate if suffering from proven infertility of either partner certified by a District Medical Board.
  • They must also have insurance coverage for 16 months for the surrogate mother, covering any postpartum complications.
• Eligibility to be a surrogate: A surrogate mother has to be a close relative of the couple, a married woman with a child of her own, aged between 25-35 years, who can be a surrogate only once in her life.
  • She must also possess a certificate of medical and psychological fitness for surrogacy.
• Regulation: It mandates the constitution of National Surrogacy Board (NSB) and State Surrogacy Boards (SSB) respectively.
  • This body is tasked with enforcing standards for surrogacy clinics, investigating breaches and recommending modifications.
• Offences: Offences under the Act include commercial surrogacy, selling of embryos, exploiting, abandoning a surrogate child etc.
  • These may invite up to 10 years of imprisonment and a fine of up to Rs. 10 lakh.

Arguments in Favour of the Age Limit for Intending Parents:

• Child Welfare and Parenting Capacity: Ensures that parents are physically and mentally capable of raising a child through their formative years.
• Regulatory Standardisation: Provides uniformity and legal clarity for clinics and surrogacy arrangements across India.
• Balances Reproductive Rights and Health Risks: Women beyond 50 and men beyond 55 face higher risks of medical complications, genetic abnormalities, and age-related fertility decline.
• Supports Policy Goals of Responsible Parenthood: Reinforces the idea that reproduction – natural or assisted – should happen within a responsible age window for the well-being of both child and parents.

Arguments Against Age Limit for Intending Parents

• Violation of Reproductive Autonomy: The age restrictions infringe on the fundamental right to reproductive choice under Article 21 of the Constitution (Right to Life and Personal Liberty).
• Arbitrary and Inflexible Limits: The fixed age cutoffs do not account for individual health status, biological variations, or advances in medical science.
• Excludes Late Marriages and Second Marriages: With changing social trends, many people are marrying or remarrying later in life, the age limits unjustly exclude such couples.
• No Similar Restrictions in Natural Conception: The State does not restrict couples from naturally conceiving children at older ages, yet imposes age restrictions only on ART and surrogacy, which raises concerns of unjustified interference.

Way Ahead

• While age limits under the ART and Surrogacy Acts aim to ensure medical safety and child welfare, a more balanced, rights-based approach is needed.
• The law could adopt a flexible, case-by-case evaluation based on medical fitness, psychological readiness, and social support systems.
• This would uphold reproductive autonomy, align with constitutional rights, and reflect evolving social and medical realities.

General Studies Paper-1

Context

• A new study by researchers at IIT Gandhinagar has warned that flash floods are becoming more frequent and severe across India.

What Are Flash Floods?

• Flash floods are sudden, intense floods that occur within six hours of a heavy rainfall event, usually in regions with steep slopes, poor drainage, or saturated/dry soil.
• Unlike riverine floods, they offer little warning, making them particularly deadly.

Impact of Flash Floods in India

• Human and Livelihood Impact: Flash floods lead to significant casualties due to their sudden onset.
  • The 2023 flash floods in Himachal Pradesh claimed over 400 lives and displaced thousands.
• Damage to Public Utilities: Flash floods damage power lines, drinking water systems, and mobile networks, making post-disaster recovery slower and more expensive.
• Land Degradation: Torrential runoff erodes topsoil, degrades fertility, and increases sedimentation in rivers and reservoirs.
• Urban Challenges: Cities like Mumbai, Hyderabad, and Bengaluru experience rapid runoff due to concretised surfaces and encroached stormwater drains.

Initiatives taken by government

• Central Water Commission (CWC) is the nodal organisation entrusted with the task of flood forecasting & early flood warnings in the country.
• Indian Meteorological Department (IMD) in joint collaboration with the US National Weather Service, has developed a Flash Flood Guidance System (FFGS) for the South Asian region.
• The Central Government has approved the National Glacial Lake Outburst Flood Risk Mitigation Programme (NGRMP) in four Himalayan States viz. Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh with a total budget of Rs.150.00 crore.

Recommendations and Adaptation Strategies

• Flash Flood Forecasting: Integrate terrain, drainage, soil data, and real-time weather.
• Early Warning Systems: Develop region-specific models that consider soil moisture and topography.
  • Promote community-level alerts in vulnerable districts.
• Land-Use and Urban Planning: Ban construction in high-risk zones (e.g., floodplains, steep slopes). Build climate-resilient infrastructure in elevated roads, permeable pavements, and stormwater drains.
• Disaster Preparedness: Update flood risk maps regularly and conduct mock drills in urban and rural areas.
• Climate Adaptation in Policy: Integrate climate models into national and state disaster management frameworks. Promote nature-based solutions like wetland conservation, afforestation, and catchment restoration.

General Studies Paper-3

Context

• Recently, the US President has announced a 25% tariff on all imports from India, effective August 1, 2025, along with an unspecified penalty for India’s continued purchases of Russian oil and military equipment.

Why the US Imposed a 25% Tariff on Indian Imports?

• High Indian Tariffs on US Goods: India’s high tariffs on U.S. goods, which the US President called ‘among the highest in the world’. The US has about a $40.8 billion trade deficit with India.
• India’s Non-monetary Trade Barriers: The US accuses India of maintaining high tariffs and other non-tariff barriers, particularly citing India’s agricultural subsidies and sanitary and phytosanitary (SPS) measures related to food safety.
• India’s Energy and Defense Ties with Russia: India’s status as Russia’s largest energy buyer (accounts for 35–40% of India’s total oil imports), and its long-standing defense ties with Moscow.
• The penalty component of the tariff is reportedly linked to these purchases, though its exact nature remains unspecified.
• India’s BRICS Membership: The US views BRICS, the emerging markets bloc which India is part of, as an anti-dollar coalition that challenges US economic leadership.
• Failed Bilateral Trade Agreement (BTA) Negotiations: A mini-deal to avoid retaliatory tariffs was not finalized before the August 2025 deadline, despite ongoing talks since February 2025.
• It is seen as a pressure tactic to accelerate negotiations.

Key Implications of the 25% U.S. Tariff on Indian Imports

• Economic Impact on Indian Exports: The tariff affects $129 billion in annual bilateral trade, with India’s exports to the U.S. valued at $86.5 billion in FY25.
• Most Vulnerable Sectors:
• Pharmaceuticals: India is a major supplier of generic drugs to the U.S.
• Auto Parts & Engineering Goods: $2.2 billion worth of auto components exported in 2024 now face full tariffs.
  • Textiles, Gems & Jewellery, Electronics, and Seafood: These export-heavy sectors may lose price competitiveness.
• Pressure on MSMEs and Labour-Intensive Industries: The tariff could disproportionately affect small manufacturers and exporters, especially in labour-intensive sectors like garments, leather, and handicrafts.
  • Industry bodies like FICCI warn of immediate disruption to India’s export-intensive sectors.
• Geopolitical Undercurrents: The penalty component is linked to India’s energy and defense ties with Russia, making this tariff not just economic but geopolitical.
  • India’s strategic autonomy in foreign policy — especially its stance on Russia — may face renewed scrutiny.
• Market Volatility and Investor Sentiment: Indian stock indices like Sensex and Nifty dropped sharply following the announcement.
  • Analysts expect short-term volatility, especially in sectors dependent on U.S. demand.

India’s Response Strategy & Options

• Immediate Response: The Ministry of Commerce and Industry stated that it is ‘studying the implications’ of the tariff and remains committed to a fair and mutually beneficial trade agreement.
  • India emphasized its priority to protect farmers, MSMEs, and entrepreneurs, signaling that domestic interests will not be compromised.
• Ongoing Trade Negotiations: India and the US have been negotiating a Bilateral Trade Agreement (BTA) since February 2025.
  • A US delegation is scheduled to visit India on August 25 for the sixth round of talks.
  • India had finalized a pre-harvest deal, but it remained unsigned by the US before the August 1 deadline.
• Strategic Options Under Consideration:
• Market Diversification: Reduce dependence on U.S. markets by expanding exports to Europe, Southeast Asia, and Africa.
  • Strengthen ties with countries that have already negotiated favorable tariff deals with the U.S., like Japan and the EU.
• Domestic Resilience: Boost Make in India initiatives to absorb external shocks.
  • Provide support packages for affected sectors like pharmaceuticals, textiles, auto parts, and seafood.

General Studies Paper-3

Context

• The Union Ministry of Labour and Employment is considering a shift from the conventional “minimum wage” to a more comprehensive “living wage” framework, covering essential social expenditures.

Living Wage vs Minimum Wage

• A minimum wage is the legally mandated lowest amount an employer must pay a worker, irrespective of the cost of living.
  • It is typically based on factors such as labor productivity, occupation, industry type, and skill level.
• A living wage is the income necessary for a worker and their family to afford a basic but decent standard of living.
  • It is calculated based on essential expenses like food, housing, clothing, education, healthcare, transport, and a small margin for emergencies.

Why There is a Need for a Living Wage in India?

• Wages Not Meeting Basic Needs: A recent report by Quess Corp and the Udaiti Foundation reveals that 54% of female blue- and grey-collar workers are dissatisfied with their pay, and 80% save less than ₹2,000 per month, indicating that current minimum wages are inadequate for sustaining a decent life.
• Rising cost of living and inflation: Inflation and fluctuating commodity prices are eroding the purchasing power of Indian households, making it increasingly difficult to afford essential goods and services.
• Improve Social Parameters: Implementing living wages would reduce poverty, improve workers’ quality of life, and increase domestic consumption.
• Social justice and human rights: A living wage aligns with the principles of social justice and human rights, ensuring workers can live with dignity and participate fully in society.
• Aligned with Constitutional Mandate: It aligns with constitutional mandates (Article 39 and 43) and international labour standards set by the ILO.

Challenges to Implementing a Living Wage

• Lack of Updated Cost-of-Living Data: Current minimum wage calculations are based on poverty line formulas from the 1970s.
  • The real-time, region-specific data on expenses (e.g., healthcare, education, housing) is missing, complicating accurate living wage estimation.
• Wide Regional Disparities: Cost of living varies significantly between rural, peri-urban, and metropolitan areas. A uniform national living wage may not be viable.
• Informalization of Labour Market: Over 90% of India’s workforce is employed in the informal sector, often outside the ambit of wage laws and enforcement mechanisms.
• Implementation Gap in Labour Codes: The Code on Wages 2019, which promises a national wage floor and universal applicability, remains unimplemented.
  • Delays in operationalising these legal frameworks reduce credibility and momentum for reform.

Way Ahead

• Introduce a tiered wage system: Based on urban, peri-urban, and rural zones reflecting actual costs of living.
• Also, institutionalise Living Wage standards that include health, education, and child-care expenses.
• Gender-Responsive Labour Reforms: Review and amend outdated labour laws to ensure equitable workforce access.
• Promote gender audits in workplaces, especially in the private sector.
• Focus on Industrial Hubs: Encourage women’s participation in sectors like electronics, auto-manufacturing, and semiconductors, where demand is high.
• Provide skill development focused on sectors where women naturally excel, such as those requiring fine motor skills.
• Employer Responsibility for Safety: Mandate and incentivize companies, especially SMEs, to provide safe transport and accommodation for women working in shifts.
• Social Dialogue Mechanisms: Promote tripartite consultations involving government, employers, and employee representatives to build consensus around wage reforms.

General Studies Paper-2

Context

• As Israel’s military campaign in Gaza intensifies, a growing divide has emerged within the Western world over how to respond – a rift that could reshape global diplomacy, humanitarian policy, and the future of the Israeli-Palestinian conflict.

Overview of the Israeli-Palestinian Conflict

• Historical Background: The Zionist movement (Late 19th Century) emerged in Europe, advocating for a Jewish homeland in Palestine – then part of the Ottoman Empire.
  • Jewish immigration increased, especially after World War I.
• British Mandate (1920–1948): Britain took control of Palestine and supported the creation of a Jewish national home through the Balfour Declaration (1917), sparking tensions with the Arab majority.
• UN Partition Plan (1947): UN proposed dividing Palestine into separate Jewish and Arab states.
  • Jews accepted the plan; Arabs rejected it.
• Arab-Israeli War (1948): Following Israel’s declaration of independence, neighboring Arab states invaded.
  • Over 700,000 Palestinians were displaced – an event known as the Nakba (‘Catastrophe’).
• Six-Day War (1967): Israel captured the West Bank, Gaza Strip, East Jerusalem, and other territories, intensifying the occupation and settlement issues that persist today.

Root Causes of the Conflict

• Territorial Claims: Both Israelis and Palestinians claim historical and religious ties to the same land.
• Displacement and Refugees: The 1948 and 1967 wars led to mass displacement of Palestinians, many of whom still live in refugee camps.
• Jerusalem: A city sacred to Jews, Muslims, and Christians – both sides claim it as their capital.
• Security and Violence: Repeated cycles of violence, including suicide bombings, airstrikes, and rocket attacks, have deepened mistrust.
• Political Fragmentation: The Palestinian leadership is divided between Fatah (West Bank) and Hamas (Gaza), complicating negotiations.
• International Involvement:S. support for Israel and Arab backing of Palestine have globalized the conflict, often polarizing diplomatic efforts.
  • Other Causes of the Crisis include the prolonged blockade and siege by Israel; destruction of aid supplies; dangerous aid distribution system; collapse of civil infrastructure; malnutrition and famine risk.

Concerns & Challenges:

• Global Rift & Western Division Over Gaza:
• United States: It has withdrawn from ceasefire negotiations and continues to support Israel’s military and political objectives, including its controversial plan to relocate Gaza’s population into a ‘humanitarian city’ – described by some experts as resembling a concentration camp.
• European Pushback: Western leaders, including the UK’s Keir Starmer, Canada’s Mark Carney, and Australia’s Anthony Albanese, have issued strong public rebukes of Israel’s actions.
  • The recent Declaration of Palestinian statehood by the French President faced criticism from both the US and Israel.
• Joint Statement of Dissent: Recently, 25 countries including the UK, France, Italy, Japan, Canada, and the EU issued a joint statement declaring: ‘The war in Gaza must end now’.
• Global South and Arab States: Nations in the Global South and the Arab League overwhelmingly call for an immediate ceasefire and a return to negotiated two-state talks.
  • However, these states have limited leverage, and most have refrained from punitive actions like sanctions or diplomatic isolation of Israel.
• Two-State Solution Under Pressure: Recently Israel has passed resolutions rejecting Palestinian sovereignty and approved 22 new settlements in the West Bank.
  • France and Saudi Arabia are co-chairing a UN conference to revive the two-state framework, but the US and Israel remain resistant.
• Humanitarian Crisis Escalates: Over 1,000 Palestinians have died since the Israeli-American Gaza Humanitarian Foundation began operations in May 2025.
  • The World Food Program reports that a third of Gaza’s population is going multiple days without food.
  • Aid convoys have become deadly zones, with civilians reportedly shot while lining up for supplies.

Implications of the Global Rift

• Diplomatic Realignment: Countries like France and Canada may recalibrate their Middle East policies, potentially leading to new coalitions that challenge US-Israeli dominance.
• UN Dynamics: Growing support for Palestinian statehood could pressure the UN to take more assertive action, though veto powers remain a hurdle.
• Global South Influence: The rift highlights the rising influence of non-Western nations in shaping global narratives around justice and sovereignty.
• US Isolation: Continued American support for Israel may deepen its diplomatic isolation, especially among younger democracies and civil society movements.

Diplomatic Efforts and Reactions

• Ceasefire talks, mediated by Qatar and Egypt with U.S. backing, have stalled repeatedly.
• The U.S. envoy is currently pushing for a 60-day truce.
• France announced it will recognize Palestine as a state at the UN in September, joining over 140 countries in support of Palestinian statehood.
• A joint statement from 28 Western-aligned nations condemned Israel’s aid policies and civilian casualties, signaling a growing rift among traditional allies.

India’s Role in the Gaza Conflict

• Immediate Ceasefire & Humanitarian Access: At the UN Security Council, India’s Permanent Representative urged an ‘immediate ceasefire’, safe aid corridors, and release of all hostages, stressing that ‘ongoing human suffering must not be allowed to continue’.
• Two-State Solution: India supports ‘a sovereign, independent, viable Palestine’ alongside Israel within secure, recognized borders.
  • The Palestinian Ambassador to India accused Israel and the U.S. of committing genocide and highlighted the destruction of schools and libraries funded by India.

Way Forward

• Immediate Humanitarian Relief: Open border crossings and restore UN-run aid networks.
  • India, Egypt, and other regional powers must pressure Israel to comply with international law.
• Revive the Two-State Solution: Despite setbacks, the two-state framework remains the most viable path.
  • A reformed Palestinian Authority, backed by international monitors, could govern Gaza and the West Bank.
• Global Accountability: International courts must investigate alleged war crimes. Countries must condition military aid on compliance with humanitarian norms.
• Reconstruction and Recovery: A UN-led multi-year plan should rebuild Gaza’s infrastructure, homes, and schools. India could play a key role through development aid and technical expertise.

General Studies Paper-2

Context: The National Education Policy 2020, marked the first comprehensive education policy completed five years since adoption.

Key Features of NEP 2020

• Structural Reform: Shift from the 10+2 system to a 5+3+3+4 curricular structure – covering ages 3-18 across foundational, preparatory, middle, and secondary stages.
• Foundational Literacy & Numeracy: Emphasis on basic reading and arithmetic skills through initiatives like NIPUN Bharat for all children by Grade 3.
• Mother Tongue & Multilingualism: Promotes instruction in the mother tongue/regional language up to at least Grade 5 (preferably till Grade 8); advances the three-language formula.
• Holistic & Multidisciplinary Education: Multiple entry/exit options in higher education; flexible subject choices across streams.
• Vocational & Skill Education: Integration of vocational courses and internships from an early stage, with at least 50% learners exposed to vocational education by 2025.
• Technology Integration: National Digital Education Architecture (NDEAR), DIKSHA, and PM e-VIDYA as digital platforms for inclusive and scalable education delivery.
• Higher Education Reforms: Push for multidisciplinary institutions, Academic Bank of Credits (ABC), National Research Foundation, and increased autonomy for colleges/universities.
• Universal Access & GER Targets: Universal school access by 2030; gross enrolment ratio (GER) in higher education to 50% by 2035.

Achievements & Impacts

• School Education: Over 6,400 PM SHRI schools upgraded as model schools in 27 states/UTs.
  • NIPUN Bharat has improved foundational learning outcomes, ASER 2024 shows remarkable progress: 23.4% of Class III students could read Grade II text in 2024, up from 16.3% in 2022.
  • DIKSHA platform has surpassed 5 billion learning sessions.
• Higher Education: Academic Bank of Credit (ABC) portal has onboarded 1,667 institutions and 32 crore Academic Bank of Credit (ABC) IDs have been created.
  • Launch of Multidisciplinary Education and Research Universities (MERUs).
• Equity, Access & Inclusion: Steps taken to mainstream out-of-school children, reduce dropout rates, and improve participation of girls and disadvantaged groups.
  • Higher education enrollment has risen significantly to 4.46 crore students.
  • Enrollment of SC, ST, Muslim, and North-East (NE) students has seen substantial growth, ranging from 36–75%.

Challenges

• Centre–State Federal Tensions: Three-language formula rejected by Tamil Nadu, Kerala citing linguistic imposition.
  • Opposition to schemes like PM SHRI Schools over centralisation fears.
• Resource Constraints: Significant financial investment is needed for infrastructure, teacher training, and digital access, especially in rural/remote areas.
• Digital Divide: Inequities in internet/device access risk exacerbating socio-economic gaps, especially among marginalized populations.
• Language Policy: Concerns over the practicality of widespread mother tongue/vernacular mediums, especially in diverse linguistic settings and for higher education.
• Privatization & Equity: Fears that increasing privatization may hamper affordability and equal access to quality education.

Way Ahead

• Strengthen Centre–State Coordination: Build contextual MoUs with states to localise NEP. Create state-level resource groups for capacity building.
• Bridging Implementation Gaps: Accelerated capacity-building, state support, and regular review of progress are critical.
• Digital and Physical Infrastructure: Investment in devices, internet connectivity, and school infrastructure must continue.
• Inclusive Pedagogy & Curriculum: Regional needs and languages must be addressed; Special focus on SEDGs and inclusive strategies.