General Studies Paper-2

Context

• India and Israel signed a Bilateral Investment Agreement (BIA).

About

• Israel has become the first OECD (Organisation for Economic Co-operation and Development) member state to sign an investment pact under India’s new model treaty framework.
• The BIA replaces the earlier investment treaty signed in 1996, which was terminated in 2017 as part of India’s policy overhaul on such agreements.
• The Agreement will increase bilateral investments, which presently stands at a total of USD 800 million.
• The new agreement provides protection for investors while promoting cross-border investments in key sectors: innovation, infrastructure development, financial regulation, and digital services.
• The signing of the Agreement reflects both nations’ shared commitment towards enhancing economic cooperation.

India and Israel Bilateral Relations & Evolving Ties

• Bilateral Relations: India announced its recognition of Israel in 1950. Regular embassies opened in 1992 when full diplomatic relations were established between the two countries.
  • In 2022-23, the two countries jointly celebrated 30 years of the elevation of bilateral ties to full diplomatic ties.
• Defense & Security: Israel has been a key supplier of advanced technology from AWACS (Airborne Warning and Control System) radars and drones to missile and surveillance systems making it one of India’s largest defense suppliers.
• Bilateral Trade: India is Israel’s 2nd trading partner in Asia and the 7th largest globally.
  • In FY 2023-24 and FY 2024-25 the bilateral trade (excluding defense) was US$ 6.53 billion and US$3.75 billion respectively.
• Investment: During April 2000 – March 2024, Israel’s direct FDI into India was U.S. $334.2 million.
  • There are over 300 investments from Israel in India mainly in the high-tech domain, agriculture and water.
• Agriculture & Water Management: In 1993, the first Agreement on Cooperation in Agriculture was signed.
  • 2006: Comprehensive Work Plan on Agriculture launched (3-year cycles) – implemented through MASHAV (Israel’s Agency for International Development Cooperation).
  • 2025: Revised Agriculture Cooperation Agreement signed, expanding areas of partnership.
  • The Indo-Israeli Centers of Excellence (CoE) demonstrate Israeli expertise, technologies and innovation in the horticultural field.
• Science, Technology, Counter-Terrorism & Innovation: India-Israel cooperation in Science & Technology (S&T) is overseen by the Joint Committee on S&T, established under the Agreement of Science & Technology cooperation signed in 1993.
  • A US$ 40 million India-Israel Industrial R&D and Technological Innovation Fund (I4F) for joint projects was also set up.
• Multilateral Cooperation: Both are active members of the I2U2 group (India, Israel, USA, UAE), focusing on economic and space collaboration with projects like food parks and space-based environmental tools.

Significance for India

• Defence & security: Israel is a reliable partner for critical technologies for India and can be instrumental in India’s Self Reliance and Make in India.
• Agriculture & water: Israel is known for its model of innovation, water conservation, and high-yield farming, India can adopt these technologies with collaboration.
• Geopolitics: It is an important strategic partner for India in West Asia that complements India’s Act West policy.

Way Ahead

• India–Israel ties are a strategic partnership spanning defence, agriculture, water, innovation, and trade.
• Defence and agriculture remain the strongest pillars, while cooperation is expanding into new domains like food security, startups, and I2U2 multilateralism.
• The Agreement marks a historic milestone in the relation of two countries.
• The agreement is expected to boost investments, provide greater certainty and protection for investors.

General Studies Paper-3

Context

• The GST Council has simplified the existing four-tier system (5%, 12%, 18%, and 28%) into a two-slab structure:
• 5% – for essential goods
• 18% – for most standard goods and services
• Additionally, a new 40% slab is introduced to tax sin and luxury items.

More About the News

• 0% GST on vital goods/services: Basic food items, health and life insurance, educational materials, select medical devices.
• 33 life-saving drugs + 3 key cancer medicines have zero GST.

Benefits of Key Changes

• For Consumers: Lower living costs and improved access to healthcare and education due to reduced or zero GST.
• For Businesses: Fewer slabs mean less confusion and classification disputes, promoting easier compliance.
  • Lower GST rates for autos, durables, FMCG stimulate demand and encourage formalization of smaller enterprises.
• For Economy & Government: CPI inflation down by ~1.1 percentage points projected by experts, easing household budgets.
  • Demand stimulus coincides with the festive season to energize consumption.
  • A predictable regime strengthens the investment climate.

Key Challenges

• Government Revenue: ₹48,000 crore ($5.5 billion) expected short-term fiscal loss that may stress fiscal consolidation aims.
• Centre–State Tensions: Compensation worries and disputes over revenue-sharing could arise.
• Removal of Input Tax Credit (ITC): Certain sectors like healthcare products and insurance are exempted from GST. Exemption means businesses cannot claim ITC, leading to cascading taxes (tax on tax) and higher hidden costs in the supply chain.
  • Uncertainty over National Anti-Profiteering Authority (NAA): The NAA was set up to ensure businesses passed on GST rate cuts to consumers.
  • Initially meant for 2 years (extendable by GST Council), but uncertainty over revival or replacement creates gaps in monitoring profiteering.
• Sectoral Unevenness: Luxury taxed at 40% could spur illicit markets; mid-tier industries (textiles, construction) concern at 18%.
• Transitional Issues: Re-labeling MRPs on old stock risks wastage of packaging materials.

General Studies Paper-2

Context

• Recently, the 56th GST Council, chaired by Union Finance Minister, has approved Next-Gen GST reforms, i.e. GST 2.0 that focuses on improving the lives of the common man and ensuring ease of doing business for all with a broader vision of a Viksit Bharat 2047.

About the GST 2.0 (Next-Generation GST Reforms)

• These are designed to reduce tax rates, and create a virtuous cycle of growth. These include lower prices, higher demand, support for MSMEs, ease of living, wider tax net, support for manufacturing, revenue growth, economic momentum, and social protection.

Key Features

• Simplification of Tax Structure: One of the most significant changes is the rationalization of GST slabs. The previous multi-rate system (5%, 12%, 18%, and 28%) has been streamlined into:
  • Standard Rate: 18%
  • Merit Rate: 5%
  • De-merit Rate: 40% (for select luxury or harmful goods);
  • Nil (0%) and 40% categories introduced, replacing the cess mechanism.
• Relief for Households: Essentials like milk, paneer, chapati, and paratha are now exempt.
  • Common items such as soap, toothpaste, bicycles, and kitchenware fall under the 5% bracket.
  • Packaged foods, noodles, chocolates, and beverages have seen rate cuts, boosting consumption and easing household budgets.
• Boost to Health and Insurance: All life and health insurance products are now GST-exempt, making coverage more affordable.
  • Essential drugs and medical devices for cancer, rare diseases, and chronic conditions have seen rate reductions, improving access to healthcare and reducing financial strain.
• Support for Farmers: Tractors, farm machinery, fertilizers, and key inputs now attract only 5% GST. Its inverted duty structures lowers cultivation costs and enhances productivity.
• Empowering Traditional Industries: Handicrafts, marble, granite, and leather goods benefit from reduced GST rates, stimulating demand and securing employment.
  • These reforms make traditional industries more competitive while preserving livelihoods.
• Correcting Critical Anomalies:
  • Textiles: Reduction of GST on man-made fibre and yarn to 5% eliminates distortions and strengthens the textile value chain.
  • Cement: Shift from 28% to 18% GST will lower construction costs and accelerate housing and infrastructure growth.
  • Green Economy: Reduced rates on renewable energy devices and auto components will support India’s sustainability goals.
• Institutional Strengthening with GSTAT: The announcement of the Goods and Services Tax Appellate Tribunal (GSTAT) becoming operational by year-end, aims to:
  • Enable faster dispute resolution;
  • Ensure consistent rulings;
  • Build greater trust in the system;

Implications for Centre and States

• GST is vital for both central and state finances:
  • CGST: Less than one-fourth of Centre’s tax receipts; 41% is devolved to states.
  • SGST: Over 40% of states’ own tax revenues.
    • Budget estimates for FY 2025-26 projected SGST collections to rise 22% to ₹10.8 trillion, but April–August growth has been only 5.8%.
    • The new rates, along with external trade factors, aim to play a decisive role in shaping collections.
• Revenue Foregone: Revenue impact estimated at ₹48,000 crore for H2 FY 2025-26.
• Annualised impact: ₹96,000 crore (₹67,700 crore with States, and ₹28,300 crore with Centre) (similar to the income tax changes in the 2025 Budget).
  • The extent of strain will vary by state, depending on SGST share and central devolution. Deficit states may need to raise revenues or cut expenditure.

Key Concerns in GST 2.0

• Rate Rationalization vs. Revenue Uncertainty: Simplifying to two slabs (5% and 18%) may lead to revenue volatility, especially for States that rely heavily on higher-rate items.
  • Disputes could persist if exemptions and special rates aren’t clearly defined.
• Federalism & State Autonomy: GST 2.0 still centralizes decision-making, leaving States with limited flexibility.
  • The expiration of the GST compensation cess in March 2026 raises concerns about how States will manage revenue shortfalls.
• Compliance Burden on MSMEs: Frequent filing, digital invoice requirements, and audits create strain for small businesses.
  • GST 2.0 may introduce stricter e-invoicing and AI-based audits, raising concerns for informal sector survival.
• Input Tax Credit (ITC) Restrictions: Delays, mismatches, and blocked credits, causing liquidity crunch.
  • Reforms risk tightening ITC rules further to curb fraud, impacting genuine taxpayers.
• Technology & Infrastructure Gaps: GSTN (network) upgrades for GST 2.0 needs to handle real-time data and AI fraud detection.
  • Risk of system crashes, cybersecurity threats, and uneven digital access across states.
• Litigation & Uncertainty: Frequent rule changes cause compliance confusion.
  • GST 2.0 reforms may bring new interpretation disputes, adding to the already high litigation burden.
• Exemptions & Complexity: While the slab structure is simpler, multiple exemptions (e.g., for specific goods or sectors) may reintroduce complexity and open doors to evasion or misclassification.
• Sectoral Concerns: Service sector (esp. digital economy) faces ambiguity in tax treatment.
  • Manufacturing-heavy states fear loss of location-based incentives under a harmonized GST 2.0.
  • Key sectors like petroleum, electricity, and real estate remain outside the GST net, limiting the goal of a truly unified tax system.

Conclusion

• GST 2.0 is more than a tax reform — it’s a strategic reset of India’s fiscal architecture.
• It lays the foundation for a more inclusive and resilient economy, by simplifying rates, empowering citizens, and boosting key sectors.

General Studies Paper-1

Context

• Punjab is under the impact of its worst floods in decades, with 1,902 villages submerged, 3.8 lakh people affected, and 11.7 lakh hectares of farmland destroyed.
• Across the border, Punjab province in Pakistan has suffered parallel devastation.

About the Floods in India

• According to the National Disaster Management Authority (NDMA), floods are a recurrent phenomenon in India, caused by heavy rainfall, inadequate drainage, and overflowing rivers. They result in loss of lives, damage to property, infrastructure, and public utilities.
• The World Meteorological Organization (WMO) describes it as part of the natural variability in river flow and water levels, and deadliest natural hazards globally, exacerbated by climate change, land use changes, and population pressure.
• In India, floods are triggered by monsoon rains, cyclones, cloudbursts, and dam releases.
• The frequency of major floods is more than once every five years.
• More than 40 million hectares (mha) of land in India are flood prone, and an average every year, 75 lakh hectares of land is affected.

Impacts of Floods in India

• Human Impact:
  • Loss of Life: On average, floods claim around 1,600 lives annually in India. In severe years, such as 1977, fatalities exceeded 11,000.
  • Displacement: Thousands are forced to evacuate, often losing homes and access to basic services.
  • Health Risks: Floodwaters spread waterborne diseases, increase vector-borne illnesses, and cause mental health stress.
• Agricultural Damage:
  • Crop Losses: Over 75 lakh hectares of farmland are affected annually, devastating rural economies.
  • Livestock Deaths: Animals perish due to drowning, disease, or lack of fodder.
  • Food Security: Disruptions in supply chains and harvest cycles lead to inflation and scarcity.
• Infrastructure Losses:
  • Roads and Bridges: Washed away or damaged, cutting off access to villages and cities.
  • Urban Disruption: Cities like Delhi, Faridabad, and Amritsar face traffic chaos, waterlogging, and power outages.
• Environmental Consequences:
  • Riverbank Erosion: Floods accelerate erosion, altering landscapes and threatening settlements.
  • Sediment Load: Rivers carry heavy sediment from catchments, reducing their capacity and increasing flood risk.
  • Wetland Disruption: Natural ecosystems are disturbed, affecting biodiversity.
• Psychological and Social Effects:
  • Trauma and Stress: Survivors often suffer long-term psychological effects.
  • Community Breakdown: Displacement and loss of livelihood strain social cohesion.

Related Initiatives & Efforts

• Environmental and Water Laws:
  • Environment (Protection) Act, 1986: Enables regulation of activities affecting floodplains.
  • Water (Prevention and Control of Pollution) Act, 1974: Addresses drainage and water quality during floods.
  • Forest (Conservation) Act, 1980: Protects catchment areas that influence flood behavior.
• High Level Committee On Floods (1957) & Policy Statement of 1958: It includes structural control (like embankments) and non-structural methods, incorporating flood plain zoning, flood forecasting, and warnings to mitigate damage, recognizing these as cost-effective measures.
• National Flood Commission (Rashtriya Barh Aayog) – 1980: It includes adopting a dynamic flood management strategy, halting large-scale construction of embankments and reservoirs until their efficacy could be assessed, and emphasizing state-center collaboration on research and policy initiatives.
  • It identified that increasing flood frequency was due to anthropogenic factors like deforestation and poor development, not changes in rainfall.
• R Rangachari Committee: It was set up by the Ministry of Water Resources to review the implementation of recommendations of the National Flood Commission.
• National Water Policy (1987/2002/2012): These policies aim for integrated water resource planning, efficient utilization, promoting groundwater regulation, and integrating environmental and human settlement needs.
  • Key principles include treating water as an economic good, enhancing water-use efficiency, and ensuring social justice in water access.
• National Disaster Management Guidelines on Floods:
  • Structural measures: Embankments, reservoirs, drainage improvements;
  • Non-structural measures: Flood forecasting, zoning regulations, insurance schemes;
• Integrated Water Resources Management: Promotes sustainable use of river basins;
  • Dam safety protocols and reservoir regulation to prevent overflow disasters;
• Floodplain zoning: Legal frameworks to restrict construction in vulnerable areas.
• Flood Forecasting and Early Warning Systems: It is managed by the Central Water Commission (CWC) and IMD, focusing on:
  • Expansion of real-time monitoring and predictive models;
  • Coordination between central and state agencies for timely alerts;
• Urban Flood Risk Management Program (UFRMP): It was launched in 2021 with ₹2,500 crore allocated for flood mitigation in 7 major cities, and expanded to 11 additional cities including Guwahati, Patna, and Trivandrum. It focuses on:
  • Upgraded drainage systems;
  • Nature-based solutions like wetland restoration;
  • Community awareness and GIS mapping;

What More Needs to Be Done?

• Strengthen Floodplain Zoning Laws: Most Indian states have not enacted floodplain zoning regulations, despite repeated recommendations.
  • NDMA urges legal enforcement to restrict construction in flood-prone areas and incentivize compliance.
• Shift to Nature-Based Solutions: It reduces downstream flood risk, enhances biodiversity and water quality, aligns with global best practices like the Netherlands’ ‘Room for the River’ program.
• Modernize Forecasting and Early Warning Systems: Expand and upgrade the Central Water Commission’s flood forecasting network using AI, satellite data, and real-time sensors.
  • Improve coordination between IMD, state agencies, and local bodies for timely alerts and evacuation.
• Desilting and River Capacity Enhancement: Regular desilting of rivers and water bodies is essential to maintain flow capacity.
  • NITI Aayog’s report stresses the need for catchment area treatment and reservoir operation protocols.
• Community-Based Disaster Preparedness: Flood management must include local participation, especially in vulnerable rural and peri-urban areas.
  • Training, awareness campaigns, and school-based disaster education can build resilience.

General Studies Paper-2

In News

• Recently, Prime Minister Narendra Modi hosted Singaporean Prime Minister Lawrence Wong in New Delhi.

Key Outcomes of the Summit

• Maritime Security & Malacca Strait Patrol: India expressed interest in patrolling the Malacca Strait, a strategic chokepoint connecting the Indian Ocean and the Pacific.
  • Collaboration in submarine rescue operations, support for the Indo-Pacific Oceans Initiative (IPOI).
• Defence & Emerging Technologies: Joint research and cooperation in quantum computing, artificial Intelligence, automation & unmanned vessels etc.
• Economic & Infrastructure Cooperation: Agreement to export green energy from India to Singapore through dedicated ports.
  • Enhanced cooperation in space research and applications.
  • India–Singapore policy dialogue on semiconductors established.
• Skilling & Advanced Manufacturing: Agreement to set up a National Centre of Excellence for Skilling in Advanced Manufacturing in Chennai.
• Counter-Terrorism & Security Cooperation: Both sides reiterated cooperation at bilateral and multilateral levels, including in the Financial Action Task Force (FATF), to combat cross-border terrorism.

Strategic Importance of Malacca Strait

• Global Trade Artery: Nearly 40% of India’s trade and 80% of China’s oil imports pass through it.
• Energy Security: Ensures uninterrupted oil and gas flows from the Middle East to East Asia.
• Geostrategic Leverage: India’s Andaman & Nicobar Command provides proximity to this chokepoint, enhancing its role in Indo-Pacific maritime security.

Brief India–Singapore Relations

• Historical Context: Ties go back to ancient times through maritime trade and Buddhism.
  • Modern relations strengthened after Singapore’s independence in 1965.
  • Singapore was among the first ASEAN countries to support India’s Look East Policy (1990s), now Act East Policy.
• Political & Defence Ties: 2015 marked 50 years of diplomatic relations.
  • Regular joint exercises are SIMBEX (naval), Bold Kurukshetra (army), Agni Warrior (artillery).
• Economic & Trade Relations: Comprehensive Economic Cooperation Agreement (CECA) – 2005 covers trade, services, and investments.
  • Singapore is among India’s largest trade and investment partners in ASEAN and accounted for 27.83 % of our overall trade with ASEAN in 2024-25. Singapore is the leading source of Foreign Direct Investment into India.
• Multilateral Cooperation: Strong partners in ASEAN, East Asia Summit, IORA, IONS, FATF, WTO, UN, and Commonwealth.

General Studies Paper-3

Context

• Recently, the President of India underscored the transformative role of India’s banking sector in shaping the nation’s economic trajectory.

About the Banking Industry in India

• India’s banking sector is a financial intermediary, primary conduit for credit delivery, liquidity modulation, financial inclusion, and serves as the operational backbone of macroeconomic management.
• Cooperative and Local Area Banks: Serve niche markets and rural populations.
• Development Financial Institutions: Such as NABARD, SIDBI, and IDBI, cater to agriculture, small industries, and infrastructure.
• Non-Banking Financial Companies (NBFCs): Over 9,000 registered entities support credit delivery to underserved segments.

Role of the Banking Industry in India’s Nation Building

• Role in Monetary Management: RBI, as the monetary authority, uses banks to implement its policy stance:
• Interest Rate Transmission: Changes in the repo rate directly influence lending and deposit rates across banks.
• Liquidity Operations: Banks participate in RBI’s Variable Rate Repo (VRR) and Reverse Repo (VRRR) auctions to manage short-term liquidity.
• Credit Expansion: By personal loans, services, and agriculture, supporting monetary transmission and economic activity.
• Role in Fiscal Management:
  • Public Debt Management: Banks invest in government securities (G-Secs), helping finance fiscal deficits.
  • Subsidy Delivery: Through Direct Benefit Transfers (DBT), banks ensure efficient disbursal of welfare schemes like PM-KISAN and LPG subsidies.
  • Initiatives like the Pradhan Mantri Jan Dhan Yojana, which has enabled over 56 crore zero-balance bank accounts.
  • Digital tools such as UPI, mobile banking, and digital wallets have revolutionized access to financial services, especially in remote areas.
• Tax Collection and Refunds: Banks facilitate digital payments for income tax, GST, and customs duties, streamlining fiscal operations.
  • Economic Growth and Credit Expansion: According to the Ministry of Finance, the Indian banking system efficiently allocates resources from depositors to borrowers, thereby enhancing economic efficiency and growth.
  • Support for MSMEs: Banks provide tailored credit solutions to micro, small, and medium enterprises, which are key drivers of employment and innovation.
  • Infrastructure Financing: Long-term funding from banks supports roads, railways, ports, and digital infrastructure—essential for national development.
  • Supporting Agriculture & Boosting Rural Economies: Banks can make farming more sustainable and profitable, through financial literacy programs and agri-tech initiatives.
• Conversion of Kisan Credit Cards to RuPay cards enhances rural financial empowerment.

Concerns & Challenges in India’s Banking Industry

• Asset Quality and Non-Performing Assets (NPAs):
  • Hidden Stress: Loan recoveries have not kept pace with slippages, especially post-crisis restructuring.
  • Sectoral Vulnerabilities: MSMEs and agriculture continue to face credit access issues, increasing default risks.
• Capital Adequacy and Basel III Compliance:
  • Basel III Transition: While larger banks are adapting, smaller institutions may struggle to meet global standards.
  • Inter-bank Linkages: High interconnectedness increases systemic risk during financial shocks.
• Financial Inclusion vs. Profitability:
  • Rural Outreach: Banks are expanding into underserved areas, but digital literacy and infrastructure gaps persist.
  • Net Interest Margins: Indian banks maintain higher margins compared to global peers, raising questions about efficiency and competitiveness.
• Competition and Consolidation:
  • Reduced Competition: Mergers may lead to market concentration and reduced customer choice.
  • Risk-taking Behavior: Intense competition among private banks can lead to risky lending and investment strategies.
• Cybersecurity Threats:
  • Types of Threats: Phishing, ransomware, DDoS attacks, and fake apps pose serious risks to financial stability.
  • High Exposure: Banks account for nearly one-fifth of all reported cyber incidents in India.

Key Reforms in India’s Banking Industry

• Banking Laws (Amendment) Act, 2025: It introduced 19 amendments across five major banking laws:
• Governance Enhancements: Director tenures in cooperative banks aligned with the 97th Constitutional Amendment.
• Audit Reforms: Public Sector banks (PSBs) empowered to offer competitive remuneration to statutory auditors, improving audit quality.
• Investor Protection: PSBs can now transfer unclaimed shares and bond redemption amounts to the Investor Education and Protection Fund (IEPF).
• Substantial Interest Threshold: Revised from ₹5 lakh to ₹2 crore, modernizing outdated definitions.
• 4R Strategy for PSB Revival (2014): It includes:
  • Banks Board Bureau (BBB): Professional selection of bank leadership;
  • Strategic guidance for capital planning and governance;
• Decriminalisation and Ease of Compliance: The Jan Vishwas Bill 2.0, proposed in Union Budget 2025, aims to:
  • Decriminalize over 100 provisions across financial laws.
  • Simplify compliance for MSMEs and startups.
  • Promote a trust-based regulatory framework.

General Studies Paper-2

Context

• The latest Sample Registration Survey (SRS) Statistical Report 2023, released by the Office of the Registrar General of India, points to falling fertility and birth rates, improved survival outcomes, and a rising elderly population.

Key Highlights From the Report 2023

• State-Wise Variations in CBR and TFR:
  • Crude Birth Rate (CBR): Fell from 19.1 in 2022 to 18.4 in 2023, marking a 0.7-point decline.
  • Highest in Bihar (25.8) and Lowest in Tamil Nadu (12);
  • Total Fertility Rate (TFR): Dropped to 1.9 in 2023, after remaining steady at 2.0 in 2021 and 2022.
  • It is the first decline in TFR in two years, pushing India further below the replacement fertility level of 2.1 children per woman.
  • Highest TFR in Bihar (2.8) and Lowest TFR in Delhi (1.2);
• Mortality Trends:
  • Crude Death Rate (CDR): Declined from 6.8 in 2022 to 6.4 in 2023.
  • Infant Mortality Rate (IMR): Fell to 25 in 2023, a one-point drop from 2022 and a seven-point decline over five years.
  • One in every 40 infants dies before completing the first year of life.
• Rising Elderly Population:
  • The proportion of the elderly (aged 60+) increased by 0.7 percentage points, reaching 9.7% of the total population in 2023, indicating a gradual move towards population ageing.
  • Highest elderly share: Kerala (15%)
  • Lowest elderly share: Assam (7.6%), Delhi (7.7%), and Jharkhand (7.6%)
• Sex Ratio at Birth (SRB):
  • National SRB:917 girls per 1,000 boys in 2023, reflecting a three-point improvement from the previous period.
  • Highest SRB: Chhattisgarh (974), Kerala (971)
  • Lowest SRB: Uttarakhand (868)
• However, Bihar, Delhi, Maharashtra, and Haryana remain among the States and UTs with SRBs below 900. Bihar’s SRB continues to decline, falling from 964 in 2020 to 897 in 2023.

Significance of Sample Registration Survey (SRS) Report 2023

• Reliable Vital Statistics: Indicators like Birth rate, Death rate, IMR, MMR, and TFR are essential for tracking population growth, health outcomes, and development goals.
  • For example, decline in TFR in two years signals a demographic transition with long-term implications for labor markets, aging, and social services.
• Policy and Funding Decisions: SRS data is used by the Ministry of Health, NITI Aayog, and State governments to:
  • Allocate health budgets;
  • Design maternal and child health programs;
  • Monitor progress toward UN Sustainable Development Goals (SDGs);

General Studies Paper-3

Context

• PM Modi launched the Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited, highlighting that “empowered women are the foundation of Viksit Bharat.”

About Jeevika Nidhi Saakh Sahkari Sangh Limited

• Jeevika Nidhi is a state-level cooperative financial institution established to support women entrepreneurs in Bihar.
  • Objective: To provide timely credit at lower interest rates, reducing dependence on microfinance institutions (MFIs) that charge 18%–24%.
  • Membership: All registered cluster-level federations of Jeevika SHGs will be part of the Society.
  • Financing: Both the Government of Bihar and the Central government will contribute funds.
  • Technology: The system is entirely digital, enabling seamless loan transactions via mobile phones. About 12,000 community cadres are being equipped with tablets to facilitate operations.

How Empowered Women Contribute to Viksit Bharat?

• Economic Growth: Studies show that closing the gender gap in labour force participation can add up to $770 billion (approx. 18% of GDP) to India’s economy by 2025.
• Entrepreneurship: SHGs and women-led enterprises create local jobs, boost rural demand, and promote sustainable businesses, thereby deepening grassroots development.
• Education & Human Capital: Educated and economically independent women invest more in their children’s education, improving literacy and skilling outcomes for future generations.
• Health & Nutrition: Empowered women make better household decisions on health, sanitation, and nutrition, directly improving India’s social development indicators.
• Governance & Democracy: Women leaders in Panchayati Raj institutions (one-third of seats reserved for women) enhance governance by prioritising issues like water, health, and education.
• Social Equity: Women’s empowerment reduces poverty, combats social evils such as child marriage, and ensures inclusive growth aligned with Sabka Saath, Sabka Vikas.

Broader Government Initiatives for Women

• Economic Empowerment:
  • Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY – NRLM): 10.05 crore women have been mobilised into 90.90 lakh Women Self-Help Groups (SHGs) in the country.
  • Namo Drone Didi Scheme (2023): Training 15,000 women SHG members to operate drones for agricultural services.
  • Lakhpati Didi,
  • Drone Didi,
  • Bank Sakhi.
• Social Infrastructure & Welfare:
  • Pradhan Mantri Awas Yojana (PMAY): Houses are registered in women’s names or jointly, enhancing asset ownership and decision-making power.
  • Pradhan Mantri Ujjwala Yojana: Over 10 crore free LPG connections provided, reducing drudgery and health risks from traditional cooking fuels.
• Health, Nutrition & Education:
  • Ayushman Bharat–Pradhan Mantri Jan Arogya Yojana (PM-JAY): Provides ₹5 lakh annual health coverage per family, reducing out-of-pocket expenditure for women.
  • POSHAN Abhiyaan: Focus on reducing stunting, undernutrition, and anemia among women and children.
  • Pradhan Mantri Matru Vandana Yojana: Maternity benefit of ₹5,000 for wage loss during pregnancy.
• Political & Social Empowerment:
  • Women’s Reservation Bill 2023: Constitutional provision for 33% reservation in Parliament and State Assemblies.
  • One Stop Centres: More than 700 centres operational to support women facing violence.

Way Ahead

• Boost Women’s Workforce Participation: Create more flexible jobs, promote work-from-home options, expand childcare facilities, and provide safe transport to increase women’s role in the labour market.
• Bridge Wage and Skill Gaps: Enforce equal pay laws, expand vocational and digital skilling programmes, and encourage women’s entry into high-growth sectors like STEM, green economy, and defence manufacturing.

General Studies Paper-3

Context

• Recently, the Prime Minister of India, at the SEMICON India 2025 (4th Edition), unveiled an ambitious roadmap to position India as a global leader in semiconductor manufacturing.

Why Semiconductors Matter?

• Semiconductors are the backbone of modern electronics — powering everything from smartphones and electric vehicles to defense systems and space technologies.
• These have become central to economic security and strategic independence, as the world moves toward greater digitalization and automation.

India’s Semiconductor Sector

• The Ministry of Electronics and Information Technology (MeitY) is the nodal agency responsible for implementing India’s semiconductor and display ecosystem strategy. Its goals include:
• Building a vibrant semiconductor design and manufacturing ecosystem;
• Attracting global investments and partnerships;
• Supporting startups and innovators through fiscal incentives.
• India Semiconductor Mission (ISM): It is an Independent Business Division within Digital India Corporation. It has been working as nodal agency for the Schemes approved under SEMICON India Programme. Key schemes under ISM are:
• Semiconductor Fabs: Up to 50% of project cost;
• Display Fabs: Up to 50% of project cost;
• Compound Semiconductors & ATMP: 50% of capital expenditure;
• Design Linked Incentive (DLI): Support for 23 chip design startups and projects.

Recent Milestones

• SEMICON India Programme (2025): It was launched with an investment of ₹76,000 crore, implemented through the India Semiconductor Mission (ISM).
• Theme (2025): ‘Building the Next Semiconductor Powerhouse’.
  • Over 350 global companies participated in it, showcasing India’s growing influence in the sector;
  • The Union IT Minister presented the first ‘Made in India’ chip — developed by ISRO’s Vikram Sarabhai Space Centre (VSSC) and the Semiconductor Laboratory in Chandigarh.
  • India launched its first Outsourced Semiconductor Assembly and Test (OSAT) pilot line in Sanand, Gujarat.
• Approval of four major semiconductor projects: SiCSem, CDIL, 3D Glass Solutions Inc., and ASIP.
  • Fast-Tracking the India Semiconductor Mission (ISM)
  • India approved five new semiconductor projects, bringing the total to ten, with a combined investment of $18 billion (₹1.5 lakh crore), in 2025 alone.
• India is working on the next phase of the India Semiconductor Mission to accelerate progress, which includes:
  • Faster approvals through the National Single Window System, integrating both central and state-level clearances;
  • A commitment to reduce the time from ‘file to factory’;
  • Support for long-term investments rather than short-term incentives.

India as a player in the Semiconductor Market

• The global semiconductor market is expected to reach USD 1 Trillion by 2030.
• India has the capacity to emerge as a key contributor to the 3 primary pillars of the semiconductor manufacturing supply chain:
• Equipment: Leveraging strong base of MSMEs to produce components for semiconductor equipment;
• Materials: India is a rich source of chemicals, minerals and gases which can be utilized by semiconductor supply chain companies; and
• Services: R&D, Logistics and supply chain, major talent in AI, big data, cloud computing and IoT.

General Studies Paper-2

Context: The Shanghai Cooperation Organisation (SCO) held its annual Heads of State Summit in Tianjin, China, in 2025.

• The summit deliberated on pressing regional and global challenges—terrorism, conflicts, UN reforms, AI governance, sustainable development, and institutional strengthening.

Key Highlights

• Regional Conflicts and Non-Proliferation: Rejected double standards in counterterrorism and emphasized preventing cross-border movement of terrorists.
  • Condemned the terrorist attack in Pahalgam (J&K).
  • Criticized military strikes by Israel and the U.S. on Iran, highlighting West–Asia tensions.
• Sustainable Development & Social Agenda: Backed equal rights for all nations in AI development and usage, countering technological monopolies.
  • Endorsed India’s global vision of “One Earth, One Family, One Future” as a principle for inclusive growth.
• China’s Push for SCO Institutional Expansion: SCO members are permitted to use BeiDou satellite system (China’s GPS alternative).
  • China pledged $1.4 billion in loans over 3 years to SCO members.
  • Proposed the creation of an SCO Development Bank to fund infrastructure and development projects.
• UN Reform: Called for adapting the UN system to modern realities, particularly by expanding the representation of developing countries in governing bodies.
• SCO Plus Format: China chaired the SCO+ Summit, which included member states, observers, dialogue partners, honored guests, and heads of major international organisations, signaling an expanded role for SCO in global governance.

India’s Position at the Summit

• PM of India emphasized that the SCO rests on three pillars:
  • Security: Ensuring regional peace and counterterrorism cooperation.
  • Connectivity: Transforming SCO into a hub for cross-regional connectivity (digital, physical, and energy).
  • Opportunity: Promoting mutual growth and cooperation.

About Shanghai Cooperation Organisation (SCO)

• Formation: 2001 (Shanghai Summit) by Kazakhstan, China, Kyrgyzstan, Russia, Tajikistan, Uzbekistan
• Membership: 10 member states, 2 observers, 15 dialogue partners (Laos latest entrant)
• Official Languages: Russian, Chinese
• Structure:
  • Council of Heads of State – apex decision-making body
  • Council of Heads of Government – second-highest body
• Headquarters: Beijing, China
• Permanent Bodies: Secretariat in Beijing, China & Regional Anti-Terrorist Structure (RATS) in Tashkent, Uzbekistan.

Challenges Ahead

• India–Pakistan rivalry dilutes consensus.
• China’s dominance may marginalize Indian interests.
• Balancing SCO commitments with QUAD, I2U2, and Indo-Pacific partnerships.
• Skepticism on feasibility of SCO Development Bank vis-à-vis BRICS Bank (NDB) and AIIB.

Way Forward

• India must leverage SCO as a regional security platform, especially for counterterrorism.
• Push for digital public infrastructure (DPI) partnerships within SCO to counter China’s BeiDou narrative.
• Balance multilateral alignments by engaging SCO without undermining Indo-Pacific strategies.
• Use SCO as a forum to strengthen ties with Central Asia, Russia, and Iran, countering the China-Pakistan axis.