General Studies Paper-3

Context

India has completed eight years since the implementation of the Goods and Services Tax (GST) on July 1, 2017, a significant reform aimed at creating a “One Nation, One Tax” regime.

Key Aspects of GST

• Destination-Based Indirect Tax: GST is a destination-based tax, meaning the tax revenue accrues to the State where the goods or services are consumed, not where they are produced.
  • This is a key shift from the earlier origin-based taxation system.
• Dual GST Model: India has adopted a dual GST model, meaning both the Centre and States/Union Territories (UTs) levy taxes on the supply of goods and services.
  • Central GST (CGST): Collected by the Union government,
  • State GST (SGST)/UTGST: Collected by the States/UTs,
  • Integrated GST (IGST): Levied by the Centre on inter-state transactions and imports, and later apportioned between Centre and consuming State.
• Input Tax Credit (ITC): GST enables seamless flow of input tax credit across the supply chain. Businesses can claim credit for taxes paid on inputs used to supply taxable goods/services, thereby avoiding cascading of taxes.
• Zero-Rated Exports: Exports under GST are treated as zero-rated supplies. Exporters can claim refunds of input taxes paid, promoting competitiveness of Indian goods and services in global markets.
  • The current GST structure consists of four main rate slabs: 5 percent, 12 percent, 18 percent and 28 percent.
• There are three special rates: 3 percent on gold, silver, diamond and jewellery, 1.5 percent on cut and polished diamonds and 0.25 percent on rough diamonds.
  • A GST Compensation Cess is also levied on select goods such as tobacco products, aerated drinks and motor vehicles at varying rates. It is used to compensate states for any revenue loss resulting from the transition to the GST system.

Achievements of GST in 8 Years

• Unified Taxation Structure: GST subsumed 17 Central and State taxes and 23 cesses, reducing fragmentation and simplifying the tax regime.
• Increased Revenue Realisation: In 2024–25, GST recorded its highest-ever gross collection of ₹22.08 lakh crore, reflecting a year-on-year growth of 9.4 percent.
• The average monthly collection stood at ₹1.84 lakh crore.
• The number of active taxpayers has also seen a sharp rise. As of 30 April 2025, there are over 1.51 crore active GST registrations.

Shortcomings of GST

• Exclusion of Key Sectors: Important items such as petroleum (crude oil, diesel, petrol, natural gas, ATF) and alcohol for human consumption remain outside GST — defeating the goal of a truly unified tax system.
• Complex Rate Structure: India has multiple tax slabs — 0%, 5%, 12%, 18%, and 28% — along with special rates (0.25%, 1%, 3%) and Compensation Cess on luxury/sin goods. This increases classification disputes and litigation.
• Frequent Changes in Law and Compliance: Businesses, especially MSMEs, face difficulties due to frequent changes in return filing formats, late fee penalties, and evolving interpretation of rules.
• Inverted Duty Structure: Sectors like textiles and footwear face an inverted duty structure, where tax on inputs is higher than output, leading to working capital blockages.
• Input Tax Credit Restrictions: ITC is often denied due to procedural lapses or supplier non-compliance, causing unjustified burden on recipients.
• Delays in Dispute Resolution: The GST Appellate Tribunal (GSTAT) was not operational for years, leading to pendency of thousands of appeals and burdening High Courts.

Reforms Needed in GST (GST 2.0)

• Inclusion of Petroleum Products and Electricity: Current exclusions cause tax cascading and reduce input credit availability for sectors like logistics and manufacturing.
  • Inclusion would expand the tax base, make pricing transparent, and remove distortion across sectors.
• Simplify Compliance for MSMEs: Introduce quarterly returns with simplified formats for small taxpayers.
  • Provide automatic ITC reconciliation tools to avoid mismatches.
• Broaden the Tax Base: Review and rationalise exemptions, especially those with limited benefit or causing distortions.
  • Include gig economy and digital services more comprehensively.
• Improve Input Tax Credit (ITC) Mechanism: Denial of ITC for procedural lapses (e.g., supplier not uploading invoice) has led to unfair burdens.
  • Allow provisional credit and improve supplier-buyer reconciliation tools.
• Rationalisation of GST Slabs: Reduce slab multiplicity to improve compliance and reduce litigation.
• Reform in GST Council Functioning: Promote greater transparency, stakeholder consultations, and time-bound decisions.
  • Consider weighted voting in cases of deadlock to uphold cooperative federalism.

Concluding remarks

• Eight years since its rollout, GST has transformed India’s indirect tax landscape, but it remains a work in progress.
• As India moves toward becoming a $5 trillion economy, GST 2.0 reforms are not just desirable—they are essential for sustaining growth, ensuring revenue stability, and promoting cooperative federalism.

General Studies Paper-2

Context

External Affairs Minister S Jaishankar’s second visit to Europe within a month reflects a deepening India-Europe engagement.

India-EU Relations

• Political cooperation: India-EU relations date to the early 1960s, and a cooperation agreement signed in 1994 took the bilateral relationship beyond trade and economic cooperation.
  • The first India-EU Summit, in 2000, marked a landmark in the evolution of the relationship.
  • At the 5th India-EU Summit at The Hague in 2004, the relationship was upgraded to a ‘Strategic Partnership’.
• Economic cooperation: India’s bilateral trade in goods with the EU was USD 137.41 billion in 2023-24, making it the largest trading partner of India for goods.
  • EU is India’s largest trading partner for goods, 17% of India’s exports go to the EU and 9% of EU exports come to India.
• India-EU Free Trade Agreement (FTA) Negotiations:
  • Negotiation Resumption: Talks resumed in June 2022 after an 8-year hiatus (stalled in 2013 due to market access disagreements).
  • Objective: To finalize a comprehensive trade agreement covering goods, services, investments, and geographical indications.
• Negotiation Structure: The agreement will be concluded in two phases, following India’s phased approach used in previous FTAs (e.g., with Australia).
  • This is partly due to the volatile global trade environment, including US tariff actions.
  • Prime Minister Narendra Modi and the European Commission President agreed to seal the deal by the end of this year.
• Other areas of cooperation:
  • The India-EU Water Partnership (IEWP), established in 2016, aims to enhance technological, scientific, and policy frameworks in water management.
  • In 2020, there was an agreement for research and development cooperation in the peaceful uses of nuclear energy between the European Atomic Energy Community and the Government of India.
  • India and the EU established the Trade and Technology Council (TTC) in 2023. The TTC is a forum for the two parties to collaborate on trade, technology, and security. The TTC’s goals.
• India’s Two Levels of Engagement
  • EU as a bloc: Regular summits, strategic dialogues on trade, tech, security, foreign policy.
  • Bilateral with major EU members: Deepening ties with France, Germany, Nordic and Eastern European countries.

Issues/Factors Shaping India-Europe Relations

• Geopolitical Shifts and Strategic Autonomy: Return of war in Europe (Russia–Ukraine) and the global erosion of multilateralism.
  • Europe seeking greater strategic autonomy from the US (especially post-Trump era).
  • India aims to maintain a multipolar world order while diversifying its partnerships beyond the US, Russia, and China.
• Trade and Economic Cooperation: EU is one of India’s largest trade and investment partners.
  • India and EU are keen on concluding India–EU Free Trade Agreement (FTA) and Investment Agreement.
  • IMEC (India–Middle East–Europe Corridor) provides opportunities for the strategic connectivity and trade.
• Technology and Digital Sovereignty: Both have the shared interest in promoting digital technologies as public goods.
  • India can benefit from Europe’s strengths in deep tech, semiconductors, digital manufacturing.
• Defence and Strategic Cooperation: Europe is a key arms supplier to India.
  • India seeks joint development, co-production, and technology transfer.
  • Europe is rearming due to the Ukraine war; India is pursuing Atmanirbharta (self-reliance).
• Mobility and People-to-People Ties: Need for a high-ambition mobility agreement to promote student and academic exchanges, research partnerships.
  • Skilled migration and tech workforce integration.
• Indo-Pacific and Maritime Strategy: Europe increasingly views the Indo-Pacific as a strategic priority.
  • India is working with France, Germany, and others to promote free and open Indo-Pacific.
• Shared goal: Prevent coercion by any hegemonic power (implied reference to China).

Europe’s Internal Challenges

• Political Fragmentation and Rise of Nationalism: Increasing polarisation within EU member states.
  • Rise of right-wing populism and Euroscepticism (e.g., in Hungary, Italy, Poland).
  • Despite Brexit, these forces challenge EU unity and the idea of European integration.
• Economic Strains: Inflationary pressures, energy crises post-Ukraine war, and post-pandemic recovery.
  • Supply chain vulnerabilities and deindustrialisation risks due to reliance on external sources.
  • Pressure to achieve digital and green transitions while maintaining economic competitiveness.
• Immigration and Identity Crisis: Europe is facing uncontrolled immigration from Africa, West Asia, and Eastern Europe.
  • This is causing strain on public services and rise of xenophobia and anti-immigrant politics.
  • There is a cultural anxieties over national identity vs European values.
• Institutional and Policy Faultlines: Divergences among member states on issues like defence spending, fiscal policy, migration burden-sharing.
  • Frictions in EU governance, especially between Western and Eastern Europe.
• Defence Dependence and Strategic Autonomy: Long-standing dependence on US and NATO for defence.
  • The need for a unified European security policy grows amid US unpredictability and regional threats.

India’s Role in Addressing Europe’s Internal Challenges

• Strategic and Defence Partnership: India’s defence procurement and co-development with France and other European nations supports Europe’s defence industry.
  • Shared interest in strategic autonomy and multipolarity aligns with Europe’s need to reduce US dependency.
• Economic and Trade Cooperation: India is a fast-growing market for EU exports and a source of affordable, skilled labour.
  • Concluding the India–EU Free Trade and Investment Agreements can help diversify Europe’s economic partnerships.
  • India is central to the success of IMEC (India–Middle East–Europe Corridor), helping secure long-term trade and energy routes.
• Migration and Mobility: Europe’s ageing population needs skilled workers; India’s young workforce can help address this through bilateral mobility partnerships, academic exchanges, especially in STEM.
• Digital and Technological Cooperation: India offers trusted partnerships in digital public infrastructure, AI governance, and cybersecurity.
  • Both share a vision of tech as a public good.
  • Indian IT and innovation sectors can enhance Europe’s digital competitiveness.
• Green Energy and Sustainability: India’s leadership in solar energy, biofuels, and green hydrogen aligns with Europe’s green goals.
  • Partnerships in climate finance, clean energy tech, and sustainable agriculture help the EU meet green targets.
• Multilateralism and Rule-Based Order: India supports multilateral reforms (e.g., UN, WTO) aligned with EU values.
• In a fragmented world, both India and Europe can co-lead coalitions based on norms, not coercion.

Challenges in the India – EU Relations

• India’s Stand on Ukraine War: Europe expects India to be more critical of Russia; India maintains strategic neutrality.
• EU’s Stand on Pakistan and Terrorism: India expects the EU to hold Pakistan accountable for state-sponsored terrorism — especially given Europe’s own experience with Islamist terrorism.
• Slow Progress on Trade Agreements: The India–EU Free Trade Agreement (FTA) negotiations, started in 2007, have faced multiple deadlocks.
• Carbon Border Adjustment Mechanism (CBAM) imposed by the EU creates additional trade barriers for India.
• Human Rights and Normative Pressure: EU often adopts a prescriptive stance on India’s internal matters (e.g., Kashmir, CAA, farm laws).
• India views this as interference in domestic affairs, causing diplomatic friction.
• Regulatory and Standards Barriers: EU’s strict regulations on data privacy, digital taxation, environmental standards, and labour laws are hurdles for Indian exporters and tech firms.
• Media stereotypes and limited public awareness in Europe with respect to India hinder people-to-people ties.

Way Ahead

• Fast-Track Trade and Investment Agreements: Conclude the long-pending India–EU Free Trade Agreement and Investment Protection Agreement.
• Deepen Strategic and Defence Cooperation: Move beyond buyer-seller relationship to joint development and co-production of defence technologies.
• Expand Mobility and Education Partnerships: Finalise a comprehensive mobility agreement for skilled professionals, students, and researchers.
• Build Resilient Supply Chains: Diversify away from China by promoting trusted, transparent supply chains.
• Leverage initiatives like IMEC (India-Middle East-Europe Corridor) for logistics, energy, and trade.
• Enhance People-to-People and Cultural Ties: Promote tourism, media engagement, and cultural exchanges to break stereotypes and deepen mutual understanding.

General Studies Paper-2

Context

The editorial highlights the significant role of technology in integrating and empowering various initiatives under the Ministry of Women and Child Development (MWCD) in India.

• This digital transformation aligns with the government’s vision of a “digitally empowered India” and the broader goal of “Viksit Bharat@2047”.

Key Dimensions of the Transformation

• Digital Public Infrastructure and Real-Time Governance:
  • The Poshan Tracker enables real-time data entry, performance monitoring, and evidence-based policy interventions across Anganwadi centres, streamlining record-keeping and reducing manual errors.
  • Anganwadi workers are equipped with smartphones and trained in digital tools, ensuring last-mile delivery and monitoring of services.
• Modernisation of Anganwadi Centres:
  • The Saksham Anganwadi initiative aims to upgrade over 2 lakh centres with smart infrastructure and digital devices, enhancing the quality of nutrition, healthcare, and pre-school education.
• Targeted Welfare and Financial Inclusion:
  • Pradhan Mantri Matru Vandana Yojana (PMMVY) uses a fully digital, Aadhaar-based system for registration and benefit transfers, ensuring transparency and reducing leakages.
  • The use of facial recognition in the Supplementary Nutrition Programme further minimises the risk of ineligible beneficiaries receiving support.
• Women’s Safety and Legal Empowerment:
  • SHe-Box portal provides a single-window online platform for lodging and tracking complaints of sexual harassment at the workplace, ensuring timely redressal.
  • Mission Shakti dashboard and app connect women in distress to the nearest support centre, integrating assistance and improving response times.
• Child Protection and Adoption Ecosystem:
  • The CARINGS portal streamlines and digitises the adoption process, making it more transparent and accessible.
  • Mission Vatsalya dashboard and platforms by the National Commission for Protection of Child Rights enable better monitoring of child care institutions and rights violations.
• Tangible Outcomes:
  • Sex Ratio at Birth improved from 918 (2014-15) to 930 (2023-24).
  • Maternal Mortality Rate declined from 130 (2014-16) to 97 per 1,000 births (2018-20).
  • Over 10.14 crore beneficiaries (pregnant women, lactating mothers, children under six, adolescent girls) are registered on the Poshan Tracker.

Strengths

• Transparency and Accountability: Digital systems reduce corruption and leakages by enabling direct benefit transfers and real-time monitoring.
• Inclusivity: Technology bridges the urban-rural divide, ensuring that even remote populations have access to government services.
• Empowerment: Women and children are not just recipients but are positioned as potential leaders and change-makers.

Challenges

• Digital Literacy: Older Anganwadi workers may struggle with new technology, preferring traditional record-keeping methods.
• Language Barriers: Software interfaces often default to English, which may not be accessible for all frontline workers.
• Technical Limitations: Issues like lack of auto-update or delete options in the Poshan Tracker can hinder data accuracy and correction.
• Infrastructure Gaps: Reliable internet and electricity are still inconsistent in some rural areas.

Way Forward

• Capacity Building: Continuous training for Anganwadi workers in local languages.
• User-Centric Design: Customising digital tools to be more intuitive and regionally adaptable.
• Infrastructure Investment: Ensuring robust digital and physical infrastructure in rural areas.
• Feedback Mechanisms: Regularly updating digital platforms based on user feedback from the ground.

General Studies Paper-2

Context

Recently, the India-Bhutan Development Cooperation Talks were held to review the full spectrum of India-Bhutan development partnership.

More About the News

• A total of 10 projects, covering sectors such as healthcare, connectivity and urban infrastructure in Bhutan, were approved.
• India has committed support of 10,000 Crore (100 billion) for Bhutan’s 13th Five Year Plan period (2024-2029).
• The two sides agreed to hold the next Development Cooperation Talks in Thimphu at a mutually convenient date.

Brief on India-Bhutan Relations

• Diplomatic relations between India and Bhutan were established in 1968.
• The basic framework of India- Bhutan relations has been the Treaty of Friendship and Cooperation signed in 1949.
• The treaty was revised in 2007 giving Bhutan more autonomy while reaffirming mutual respect for sovereignty and close cooperation.
• In 2024, Prime Minister Narendra Modi was conferred the Order of the Druk Gyalpo, Bhutan’s highest civilian decoration, the first foreign leader to be given the award.
• Developmental Partnership: India remains Bhutan’s foremost development partner, supporting its national priorities since its 1st Five-Year Plan (1971).
• Annual Plan Talks (Bilateral Development Cooperation Talks): Institutionalised mechanism for deciding priorities and modalities of assistance.
• Sectors Covered: Roads, infrastructure, digital connectivity, hydropower, agriculture, education, health, HR development, urban development, etc.
• Trade Relations: India has consistently been Bhutan’s top trading partner- both as an import source and as an export destination.
  • Since 2014, India’s trade with Bhutan has almost tripled from USD 484 million in 2014-15 to USD 1615 million in 2022-23.
  • 2016 India-Bhutan Agreement on Trade, Commerce and Transit, establishes a free trade regime between the two countries and also provides Bhutan duty free transit of goods to/from third countries.
• Energy Cooperation (Hydropower & Renewables): India has constructed 4 major HEPs in Bhutan: Chukha (336 MW), Kurichhu (60 MW), Tala (1020 MW), Mangdechhu (720 MW).
• Currently, there are two HEPs under construction: 1020 MW Punatsangchhu-I HEP and 1020 MW Punatsangchhu-II HEP.
• Space Cooperation: South Asia Satellite Ground Station inaugurated in 2019 by both Nations.
  • The two sides collaborated on the India-Bhutan SAT, the first satellite jointly developed by India and Bhutan, launched in 2022.
  • Both sides signed a Joint Plan of Action on Space Cooperation in 2024.
• Fin-Tech: RuPay Card: Launched in two phases (2019 & 2020) for full interoperability.
• In 2021, India’s Bharat Interface for Money (BHIM) application was launched in Bhutan with the objective of promoting cashless payments between the two nations.
• India-Bhutan Foundation: It was established in 2003, the Foundation enhances exchanges amongst the people of India and Bhutan through activities in educational, cultural, scientific and technical fields.
• Indian Diaspora in Bhutan: About 50,000 Indians are presently working in Bhutan in the sectors such as infrastructure development, hydropower, education, trade and commerce signifying close people to people ties between the two countries.

Significance of Bhutan for India

• Buffer against China: Bhutan serves as a geographic buffer between India and China. China has no formal diplomatic relations with Bhutan but is actively negotiating the boundary issue.
  • India sees Bhutan as vital to maintaining a South Asian balance of power and resists Chinese strategic encroachment, especially near the tri-junction.
• Neighbourhood First Policy: Bhutan is a central pillar of India’s ‘Neighbourhood First’ policy.
  • Stability in Bhutan reflects India’s larger vision for regional peace and cooperation in South Asia.
• Trade and Economic Ties: India is Bhutan’s largest trade partner and source of investment.
  • Special India–Bhutan Trade and Transit Agreement provides duty-free access to markets.
  • Bhutan is crucial to India’s efforts to promote sub-regional connectivity in South Asia, especially BBIN (Bangladesh-Bhutan-India-Nepal).
• Connectivity and Act East Policy: Bhutan plays a key role in enhancing India’s connectivity to Northeast India. Its location helps protect the vulnerable Siliguri Corridor (Chicken’s Neck) – India’s only land link to the Northeast.
  • India’s Act East Policy aims to connect Northeast with Southeast Asia, and Bhutan is integral to such land-link corridors.
  • Road and internet infrastructure developed with Indian assistance improves regional integration.
• Diplomatic and Multilateral Support: Bhutan often supports India’s positions in international forums, including the UN.
  • Bhutan’s commitment to peaceful foreign policy and non-alignment aligns with India’s regional diplomacy.

Challenges in Relations

• Economic Imbalance: Bhutan faces a large trade deficit with India, importing much more than it exports.
  • Despite preferential trade agreements, Bhutanese industries struggle to diversify.
• China Factor and Border Negotiations: Bhutan and China have held 24 rounds of border talks, including a 2021 MoU on a “three-step roadmap.”
  • India is concerned about potential China–Bhutan border agreements, especially in the Doklam region, which is strategically vital for India.
• Connectivity Gaps: Limited road and rail links restrict economic and strategic integration.
  • Bhutan has reservations about joining the BBIN Motor Vehicles Agreement due to environmental and cultural concerns.
• Environmental and Sustainability Concerns: Bhutan’s model of Gross National Happiness and environmental protection sometimes clashes with India’s infrastructure-led approach (e.g., highways, hydropower).
• Strategic Balancing and Autonomy: Bhutan seeks greater foreign policy autonomy, especially in global forums.

Way Ahead

• While India and Bhutan share a strong foundation of trust and cooperation, evolving economic aspirations, geopolitical realities in both countries pose challenges.
• Managing these with mutual respect, transparency, and strategic sensitivity is key to sustaining their special relationship.
• India–Bhutan relations are a model of good-neighbourly partnership based on mutual trust and benefit.

General Studies Paper-2

Context

• For millions of internal migrants in India — workers who relocate for livelihood, education, or family — the right to vote remains a pressing concern for participatory governance in the world’s largest democracy.

Voting Rights in India

• Universal Adult Suffrage [Article 326]: Every citizen aged 18 and above, regardless of caste, gender, religion, or economic status, has the right to vote in elections to the Lok Sabha and State Legislative Assemblies.
• This right is administered by the Election Commission of India (ECI) [Art 324], an autonomous constitutional authority responsible for conducting free and fair elections across the country.

Migration and Its Electoral Consequences

• Migrants are those individuals or groups who move from one region to another — either within the country (internal migrants) or across national borders (international migrants) — for reasons such as employment, education, marriage, displacement, or environmental stress.
• According to the Census (2011), India has over 450 million internal migrants.
• As of 2021, over 28.9% of India’s population were migrants, with Bihar being most affected by out-migration. It reached over 600 million by 2023.

Challenges for Migrant Voters

• Low Participation: In the Lok Sabha elections (2024), Bihar’s voter turnout was just 56%, well below the national average of 66%, largely due to migrants being unable to return home to vote.
• Policy Challenge: The Representation of the People Act, 1951 allows voting only at a voter’s place of registration.
  • It excludes those who move frequently or lack the documentation to update their voter details in time.
  • About 99% don’t update to their destination, often due to lacking address proof.
• Distance & Financial Burden: Many internal migrants work hundreds of kilometers away. A worker may lose opportunity cost (travel cost and daily wages), and missing children’s school means they often skip elections.
• Gender & Social Dimensions: Migrant women, especially those who moved after marriage, face added constraints: child care, uncertain housing, safety concerns—all reduce their voting capacity.

Addressing the Problem

• For Intra-State Migrants: Approximately 85% of migrants in India move within their own State. Many of them work in informal jobs and could potentially travel shorter distances to vote if supported with:
  • Enforced statutory holidays on polling day
  • Government-organized transport services
• For Inter-State Migrants:
• Remote Electronic Voting Machines (RVMs): ECI piloted RVMs capable of handling up to 72 constituencies.
  • However, several political parties raised concerns about transparency, voter identification, and administrative feasibility.
• Postal Ballots: Already in use for armed forces, this system could be expanded to cover migrant workers.
  • Requires early registration and logistical coordination for issuing, collecting, and counting ballots.
• Constituency Switching: Suitable for longer-term migrants who can prove at least six months of residence in a new constituency.
  • Empowers migrants to participate in local politics and policy-making.
  • May face social resistance from existing residents but enhances democratic inclusivity.
• Focusing Migrant Women: A large segment of India’s migrant population comprises women who relocate due to marriage.
  • Targeted voter registration drives in their new locations could integrate these women into the political process more effectively.

Global Practices

• Voting Rights for Immigrants:
  • New Zealand: Noncitizens with permanent residency can vote in national elections after just one year of residence.
  • Chile & Ecuador: Allow legally present noncitizens to vote in both local and national elections after five years of residence.
  • Norway: Foreign nationals can vote in local elections after three years of residence.
  • European Union: EU citizens living in another EU country can vote in local and European Parliament elections, though not usually in national elections.
• Voting Rights for Emigrants:
  • Mexico: Citizens abroad can vote in national elections, including via in-person voting at consulates.
  • Italy, Colombia, Dominican Republic: Reserve seats in their national legislatures specifically for citizens living abroad.
  • France & Canada: Offer postal or consular voting for citizens overseas.

Way Forward (Mix Strategy)

• No single mechanism will suffice to ensure electoral inclusion for all migrants. The migrant population is diverse — varying by geography, work type, and tenure of stay—so a combination of approaches is essential:
• RVMs for short-term, inter-State migrants;
• Postal ballots for those in stable but distant employment;
• Constituency switching for long-term migrants;
• Local support measures for intra-State workers;
• A hybrid strategy, tailored to the heterogeneity of migrant profiles, offers the most practical path toward ensuring every Indian—regardless of location—can exercise the right to vote.

General Studies Paper-2

Context

• South Asia, despite being home to over a fifth of the world’s population having cultural and historical linkages, remains one of the least economically integrated regions in the world.

State of the South Asian Economy

• South Asia, comprising countries like India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, and the Maldives, is home to over 1.8 billion people and represents a combined GDP of around $5 trillion.
  • EU: $18 trillion with only about 5.8% of the global population.
  • NAFTA: $24.8 trillion
• Growth Amidst Divergence: Indian economy has rebounded strongly, driven by robust domestic demand, infrastructure investment, and digital innovation (Economic Survey 2024–25).
  • Bangladesh has maintained steady growth, particularly in its garment exports and remittance inflows.
  • Other nations — such as Sri Lanka and Pakistan — have faced economic crises, high inflation, and debt distress, highlighting the region’s economic divergence.
• Low Regional Trade: Intra-regional trade under the South Asian Free Trade Area (SAFTA) accounts for just 5% to 7% of total trade — among the lowest globally.
  • It is far below the EU (45%), ASEAN (22%) and NAFTA (25%).
  • High tariffs, poor connectivity, and bureaucratic red tape discourage cross-border commerce.
• Trade Gaps: Even countries like Bangladesh (93% unutilized potential), Pakistan (86%), and Afghanistan (83%) have enormous room for economic collaboration.
  • Meanwhile, the region’s trade-to-GDP ratio fell from 47.3% in 2022 to 42.94% in 2024, indicating declining interdependence.
• High Cost of Being Neighbours: Paradoxically, it is more expensive to trade within South Asia than with distant partners:
  • Intra-SAARC trade cost: 114% of goods’ value
  • Trade cost with the U.S.: 109%
  • India-Pakistan trade cost is 20% higher than India-Brazil, despite Brazil being 22x farther
  • ASEAN’s intra-trade cost: 76% — about 40% cheaper than SAARC
• Missed Opportunities: South Asia’s current intra-regional trade among SAARC countries stands at around $23 billion, far below the potential $67 billion, and drastically lower than the estimated $172 billion potential identified by UNESCAP for 2020.

Other Key Challenges

• Geopolitical Tensions & Distrust: Long-standing rivalries — especially between India and Pakistan — have severely undermined regional cooperation initiatives like SAARC and SAFTA.
  • Political disagreements often spill over into economic decision-making.
• Protectionist Trade Policies: High tariffs, restrictive quotas, and non-tariff barriers discourage trade between neighboring countries.
  • Many South Asian economies have prioritized self-reliance over interdependence.
• Poor Connectivity & Infrastructure: Inadequate transport links, cumbersome customs procedures, and underdeveloped logistics networks limit the flow of goods, services, and people across borders.
• Asymmetry Among Member States: India’s economic dominance within the region has created power imbalances, leading to concerns among smaller countries about unequal benefits and influence.
• Weak Institutional Frameworks: Regional cooperation mechanisms often lack teeth, enforcement capability, or political will to deliver on integration promises.
  • SAARC, for instance, has been largely dormant.
• China’s Growing Influence: The growing involvement of external powers, particularly China, has led some South Asian countries to prioritize bilateral engagements over intra-regional collaboration.
• Climate vulnerability: The region is highly susceptible to climate shocks, from floods to heatwaves, which threaten agriculture and livelihoods.

Initiatives By India Supporting South Asian Economy

• Development Partnerships and Lines of Credit: For infrastructure, energy, and capacity-building projects, that include road and rail links with Nepal and Bangladesh, power-sharing agreements, and port development in Sri Lanka and the Maldives.
• Infrastructure and Connectivity Projects: Projects like the India-Bangladesh Maitree Power Plant, the India-Nepal cross-border petroleum pipeline, and the Kaladan Multi-Modal Transit Transport Project (linking India to Myanmar and beyond) are designed to boost regional trade and integration.
• SAARC Development Fund (SDF): It finances regional projects in areas like energy, transportation, and social development.
• BIMSTEC and BBIN Initiatives: These sub-regional groups aim to promote trade, connectivity, and energy cooperation.
• Startup India and Digital Outreach: India’s Startup India initiative has inspired cross-border collaboration, with Indian incubators and digital platforms offering mentorship and market access to entrepreneurs from neighboring countries.

Way Forward: Strategic Regionalism

• South Asia’s development hinges on genuine regional cooperation. To tap into its potential:
  • Reform SAFTA and focus on actionable enforcement;
  • Address border and trust issues through sustained diplomacy;
  • Create regional value chains to boost employment and innovation;
  • Develop trade infrastructure that supports integration over division;
• Separate economic cooperation from political conflict, as seen in the EU model.

General Studies Paper-2

Context

• The recent landmark Supreme Court judgment on K Uma Devi vs State of Tamil Nadu pronounced is significant for recognising maternity rights as a Fundamental Right under Article 21 of the Constitution.

About the Maternity Rights in India

• Historical Context: The Maternity Benefit Act of 1961 laid the legislative foundation for Maternity Rights in India.
  • It was aimed at regulating employment conditions for women during the prenatal and postnatal periods.
  • It provided 12 weeks of paid leave and protected women from dismissal during maternity.
  • However, coverage was largely limited to the organized sector.
• Maternity Benefit (Amendment) Act of 2017: It aims to increase paid maternity leave from 12 to 26 weeks for women working in establishments with 10 or more employees.
  • It made India one of the few countries offering such an extensive duration of paid leave.

Concerns & Challenges

• Organized vs Unorganized Divide: Over 90% of working women in India are in the unorganized sector such as domestic work, agriculture, or contract labor, where the Act doesn’t apply.
  • These women often work without formal contracts, health coverage, or awareness of entitlements.
• Financial Burden on Employers: The leave is entirely employer-funded, discouraging some businesses — particularly SMEs — from hiring women.
  • It has prompted calls for a social insurance model or state-supported financing.
• Limited Paternity Leave: The law offers no corresponding rights to fathers, reinforcing gendered caregiving norms and placing disproportionate burdens on working mothers.
• Enforcement Challenges: Compliance and awareness are low, particularly in non-metro regions.
  • Many women are unaware of their rights or lack access to grievance redressal mechanisms.

Comparative Analysis of Financing Maternity Rights

• According to a comparative study of 82 countries, 44% fund maternity benefits through social security contributions, while only 15% — including India — rely solely on employer funding, a model increasingly seen as unsustainable.

Key Efforts Related to Financing Maternity Rights in India

• Pradhan Mantri Matru Vandana Yojana (PMMVY): It provides a cash incentive of ₹5,000 to pregnant and lactating women for the first live birth, aimed at partially compensating wage loss and supporting health-seeking behavior.
• Employees’ State Insurance Corporation (ESIC): It is employer-employee contribution based, and provides a more stable financing model compared to employer-only funding.
  • Eligible women receive 100% of their average daily wages for 26 weeks of maternity leave.
  • Its coverage is limited to formal sector workers registered under the scheme.
• Maternity Benefit Fund (Proposed): It aims to support SMEs and the informal sector particularly.
  • The idea revolves around shared contributions from the government, employers, and possibly employees.
• Muthulakshmi Reddy Maternity Benefit Scheme (Tamil Nadu): It offers ₹18,000 in phased payments, significantly higher than the central allocation.

Supreme Court Observation

• Maternity as a Fundamental Right: The Supreme Court declared maternity rights to be part of the right to life and dignity, thus elevating their legal status and enforceability. The judgement is based on international conventions, including:
  • Universal Declaration of Human Rights;
  • Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW);
  • ILO Maternity Protection Convention C183 (2000);
  • UN Economic and Social Council instruments;
• ILO Reference: The Court made a reference to ‘Care at Work’ – 2022 (ILO Report) and noted that 123 countries offer fully paid maternity leave, which benefits 90% of mothers globally.
  • India, with 26 weeks of paid maternity leave, is now among 42 countries that exceed ILO’s C183 standard of 18 weeks.
  • The Court reaffirms the Maternity Benefit Act, 1961 as the normative legislative framework, and acknowledges that the State is constitutionally obligated to implement maternity benefits in a non-discriminatory manner, aligned with service conditions across employment sectors.

Way Forward

• World Social Protection Report 2024–26 of ILO highlighted that most nations rely on tax-financed or contributory schemes rather than employer-only funding.
  • It includes public social protection schemes, tax-based support models, and inclusion of informal and self-employed women etc.
• Financing the Maternity Benefits Right: Historically, the Bombay Maternity Benefit Act of 1929 placed the burden solely on employers.
  • However, modern policy models favour social insurance, public financing, or mixed models (as advocated by the ILO) to avoid burdening individual employers and prevent discriminatory hiring.

General Studies Paper-2

Context

• India has refused to sign a joint declaration at the Shanghai Cooperation Organisation (SCO) Defence Ministers’ meeting in Qingdao, China.

About

• India is not satisfied with the language of the joint document and there was no mention of cross-border terrorist activities specially recent Pahalgam Terror attack.
• The refusal to endorse the document resulted in the conclave ending without a joint communique.

Shanghai Cooperation Organisation (SCO)

• Shanghai Five emerged in 1996 from a series of border demarcation and demilitarization talks between 4 former USSR republics and China.
  • Kazakhstan, China, Kyrgyzstan, Russia and Tajikistan were members of the Shanghai Five.
  • With the accession of Uzbekistan to the group in 2001, the Shanghai Five was renamed the SCO.
• Objective: To enhance regional cooperation for efforts to curb terrorism, separatism, and extremism in the Central Asian region.
• Members: China, Russia, India, Pakistan, Iran, Belarus and the four Central Asian countries of Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan.
  • India became a full member in 2017 and assumed the rotating chairmanship in 2023.
  • Member countries contribute around 30 per cent of the global GDP and about 40 percent of the world’s population.
• Observer status: Afghanistan and Mongolia.
• Language: The SCO’s official languages are Russian and Chinese.
• Structure: The supreme decision-making body of the SCO is the Council of Heads of States (CHS) which meets once a year.
  • The Organization has 2 standing bodies — the Secretariat in Beijing and the Executive Committee of the Regional Anti-Terrorist Structure (RATS) in Tashkent.

Significance for India

• Regional Security: The SCO serves as a platform for addressing security concerns, including terrorism, separatism, and extremism, which are critical issues for India.
  • Through SCO’s Regional Anti-Terrorist Structure (RATS), India collaborates on intelligence sharing and counter-terrorism efforts.
• Balancing China and Pakistan: While both are SCO members, the forum allows India to assert its position and prevent the formation of anti-India narratives.
• Energy Security: Central Asia is rich in oil, gas, and uranium. SCO membership allows India to strengthen energy ties with these countries.
• Economic Cooperation: The organization facilitates economic collaboration among member states, which enhance trade and investment opportunities for India, particularly with Central Asian countries.
• Central Asia: The SCO is especially important for India because its membership and focus emphasize Central Asia—a region where India is keen to ramp up ties but faces an inherent constraint with its outreach.

Challenges

• China-Pakistan Axis: The strong partnership between China and Pakistan within the SCO complicates India’s strategic positioning, as at times it limits India’s influence in regional security discussions.
• Geopolitical Tensions: Ongoing border disputes and geopolitical tensions with China and Pakistan spill over into SCO discussions, making it difficult for India to engage constructively.
• Focus on Security over Economic Development: The SCO’s primary focus on security issues sometimes overshadow economic and developmental cooperation, which are crucial for India’s interests in the region.
• Institutional limitations: Decision-making within SCO is consensus-based, slowing progress on key issues.

Conclusion

• SCO is a strategic platform for India to engage with Eurasian powers, promote regional stability, secure economic and energy interests, and enhance counter-terrorism cooperation.
• Despite challenges, India uses SCO to promote its vision of “Security and Growth for All in the Region (SAGAR)” and as a counterbalance to Western alliances.

General Studies Paper-3

Context

• India has, for the first time, secured a position among the top 100 countries in the Sustainable Development Goals (SDG) Index.

About

• The Sustainable Development Report (SDR) reviews progress made each year on the Sustainable Development Goals since their adoption by the 193 UN Member States in 2015.
• This edition also includes for the first time an assessment of which countries have made the most progress on the SDGs using a headline SDG Index (SDGi).

Major Highlights

• Global Commitment through Voluntary National Reviews (VNRs): 190 out of 193 UN member states have participated in the VNR process since the adoption of Agenda 2030.
• Regional Trends in SDG Progress: East and South Asia is the fastest progressing region since 2015.
  • Drivers of progress: Rapid improvements in socioeconomic indicators.
• Top Performers in SDG Index: Finland, Sweden and Denmark hold the top three positions.
  • 19 out of the top 20 performers are European countries.
  • Challenges remain even for top countries — particularly in climate action and biodiversity goals.
• India ranked 99th out of 167 nations.
  • It places India with a score of 67 on the SDG Index, a significant improvement from its 109th rank in 2024.
  • Since the adoption of the SDGs, India has steadily improved its standing: it ranked 112th in 2023, 121st in 2022, and 120th in 2021.
• Among India’s neighbours, China ranks 49th (74.4), Bhutan ranks 74th (70.5), Nepal 85th (68.6), Bangladesh 114th (63.9), and Pakistan 140th (57).
  • Maritime neighbours Maldives and Sri Lanka stand at 53rd and 93rd places respectively.
• Global SDG Progress Remains Off-Track: None of the 17 SDGs are currently on track to be achieved globally by 2030.
  • Only 17% of SDG targets are on track worldwide.
  • Major obstacles: Conflicts, structural vulnerabilities, limited fiscal space.
• Notable progress seen in: SDG 3 (Health): Under-5 and neonatal mortality.
  • SDG 7: Access to electricity.
  • SDG 9: Mobile broadband use and internet access.
• It identified five areas of significant regression since 2015: obesity rates (SDG 2), press freedom (SDG 16), sustainable nitrogen management (SDG 2), the Red List Index measuring biodiversity loss (SDG 15), and the Corruption Perceptions Index (SDG 16).
• UN-Based Multilateralism Index (UN-Mi): Barbados ranks 1st – most committed to UN-based multilateralism.
  • The United States ranks last, following the withdrawal from Paris Climate Agreement (2025), Exit from World Health Organization (WHO) and Formal opposition to SDGs and Agenda 2030.
• Fiscal Constraints in Developing Countries: Around 50% of the global population lives in countries lacking fiscal capacity to invest in sustainable development.
  • Global public goods (like climate protection, global health, peace) remain underfunded.

Recommendations

• Need for Reform in Global Financial Architecture (GFA) as the current GFA favors wealthy nations with easier capital access.
• Proposes practical reforms to boost and align global financing toward SDGs and public goods.

General Studies Paper-2

Context

• Bangladesh, China and Pakistan held an informal trilateral meeting on the sidelines of the 9th China-South Asia Exposition and the 6th China-South Asia Cooperation meeting in Kunming.

About the meeting

• The three countries exchanged views on the basis of mutual trust, understanding and shared vision for peace, prosperity and stability in the region, the release added.
• They identified key areas for cooperation including infrastructure, connectivity, trade, investment, healthcare, agriculture, maritime affairs, ICT, disaster preparedness, and climate change.

Why Are These Countries Coming Closer?

• China’s Strategic Interests:
  • BRI Expansion: China is deepening its Belt and Road Initiative (BRI) footprint in South Asia by integrating regional players through infrastructure and trade projects.
  • Countering Indo-Pacific Strategy: The trilateral can be seen as an effort to balance the Quad (India, US, Japan, Australia) and the Indo-Pacific security architecture.
• Pakistan’s Objectives:
  • Regional Isolation: Pakistan is facing regional diplomatic isolation and sees China as a steadfast ally.
  • Leverage in South Asia: Inclusion of Bangladesh helps Pakistan engage with another key South Asian player, diluting Indian influence.
• Bangladesh’s Calculated Hedging:
  • Balancing India and China: While traditionally close to India, Bangladesh is also seeking Chinese investment and infrastructure support to diversify its partnerships.
  • Economic Interests: China is Bangladesh’s top trading partner and a significant source of FDI, especially in energy and infrastructure.

Geopolitical Implications of the Trilateral Engagement

• Attempt at Creating a ‘Continental Bloc’: The trilateral could gradually evolve into a strategic bloc in South Asia with deep Chinese influence — running parallel to India-led initiatives like BIMSTEC and BBIN.
• China’s Maritime Ambitions: If the cooperation extends into Bay of Bengal maritime affairs, it would mark a significant Chinese foothold in India’s maritime backyard.
• Diminishing SAARC Relevance: With SAARC rendered ineffective due to India-Pakistan tensions, China is now attempting to craft a China-centric alternative regional format.
• Potential for Strategic Infrastructure: China’s port investments in Chittagong (Bangladesh) and Gwadar (Pakistan) could eventually support dual-use facilities, raising concerns about militarisation and encirclement of India.

Way Ahead

• Regional Multilateralism: India needs to proactively push sub-regional groupings like BIMSTEC, BBIN, and IORA as platforms for promoting regional connectivity and countering China-centric regional architectures.
• Recalibration of Neighbourhood Policy: A long-term strategic blueprint that includes predictable economic assistance, respect for smaller nations’ agency, and cooperative security mechanisms can help counter China’s transactional diplomacy.
• India must enhance its maritime domain awareness and naval diplomacy. Strengthening QUAD naval exercises, expanding Sagarmala and Project Mausam, and deepening ties with Indian Ocean littoral countries (like Seychelles, Mauritius, Indonesia) are vital.

Concluding remarks

• The informal alignment among China, Pakistan, and Bangladesh reflects China’s evolving strategy to reshape South Asia’s geopolitical architecture in its favour.
• India must respond with a balanced strategy that combines principled diplomacy, development-led partnerships, and robust security measures to preserve its leadership and promote regional stability.