Verify it's really you

Please re-enter your password to continue with this action.

Posts

Daily PIB Summaries

PIB Summaries 07 February 2026

Content Arbitration Council Of India (ACI) 10,000 Farmer Producer Organisations (FPOs) Scheme Arbitration Council Of India (ACI) Legal Foundation Statutory Origin Arbitration Council of India (ACI) is a proposed statutory regulator created through Part IA (Sections 43A–43M) inserted by the Arbitration and Conciliation (Amendment) Act, 2019 to institutionalise arbitration governance in India. Parent law, Arbitration and Conciliation Act, 1996, is based on UNCITRAL Model Law, promoting party autonomy, minimal judicial intervention, and globally harmonised commercial dispute resolution standards. ACI envisaged as a seven-member body with Chairperson, arbitration experts, and government nominees, aiming to combine domain expertise with regulatory oversight in arbitration governance. Despite statutory mandate since 2019, ACI remains unconstituted, reflecting implementation deficit and raising concerns regarding legal reform credibility and governance accountability. Relevance GS 2 (Polity & Governance) Judicial reforms, ADR mechanisms, institutional arbitration, and legal system efficiency. Rule of law, contract enforcement, ease of doing business, and governance accountability. Balance between regulatory oversight and arbitral independence. Mandate and Functions Core Responsibilities ACI frames policies for grading arbitral institutions, setting quality benchmarks, and professionalising arbitration, similar to models in Singapore and UK arbitration regimes. Recognises professional bodies for accrediting arbitrators, standardising qualifications, ethics, and competency, addressing weaknesses of India’s ad-hoc arbitration culture. Conducts training, workshops, and courses to build arbitration capacity, strengthening legal human capital and supporting knowledge-based dispute resolution ecosystem. Maintains depository of arbitral awards and promotes research, enabling data-driven policy-making and evidence-based arbitration reforms. Reform Context in Indian Arbitration Evolution Since 1996 1996 Act replaced Arbitration Act, 1940, shifting from court-centric litigation to modern arbitration aligned with liberalised economy and global trade requirements. 2015 Amendment introduced Section 29A timelines, neutrality disclosures, and narrowed public policy grounds, improving award enforceability and investor confidence. 2019 Amendment promoted institutional arbitration, introduced confidentiality (Section 42A) and arbitrator immunity, encouraging structured dispute resolution mechanisms. 2021 Amendment removed automatic stay on awards except in fraud or corruption, strengthening enforcement and reducing delay tactics. Linkage with India International Arbitration Centre (IIAC) Institutional Ecosystem India International Arbitration Centre Act, 2019 established IIAC as an autonomous institution to deliver world-class arbitration services and position India as global arbitration seat. IIAC provides empanelled arbitrators, administrative support, and modern facilities at cost-effective rates, reducing dependence on foreign seats like Singapore and London. Adoption by CPSEs — ONGC, GAIL, BPCL (2024–25) institutionalises arbitration in public contracts, improving commercial certainty and reducing litigation burden. Outreach through conferences, debates, exporter webinars, ADR publications reflects policy push toward mainstreaming institutional arbitration. Governance and Administrative Significance Justice Delivery Impact With over 5 crore pending cases in Indian courts, arbitration supports Article 39A goal of speedy and affordable justice. Institutional arbitration ensures transparent appointments, procedural consistency, and rule-based dispute resolution, strengthening trust in commercial justice systems. Predictable dispute resolution improves government contracting, reduces project delays, and enhances administrative efficiency. Economic Relevance Investment Climate Strong arbitration improves contract enforcement, a key factor influencing FDI inflows and cross-border commercial confidence. Global arbitration hubs earn significant legal services revenue; domestic ecosystem can retain high-value dispute resolution expenditure. Faster dispute settlement benefits export sectors, supporting India’s expanding global trade ambitions. Challenges and Criticisms Structural Gaps Non-constitution of ACI weakens reform momentum and creates regulatory vacuum in institutional arbitration quality control. Experts warn of excessive government control in ACI potentially undermining independence and party autonomy, core arbitration principles. Limited trained arbitrators and uneven institutional capacity restrict India’s competitiveness against global arbitration centres. Way Forward Reform Directions Expedite ACI constitution with credible arbitration experts, ensuring functional independence and transparency. Promote mandatory institutional arbitration clauses in major public contracts to reduce ad-hoc arbitration. Expand training, certification, and ethics regulation with global collaborations. Scale online dispute resolution (ODR) and digital arbitration platforms aligned with Digital India reforms. Alternative Dispute Resolution (ADR): Types ADR refers to non-judicial mechanisms for resolving disputes quickly, cost-effectively, and with minimal procedural complexity. Recognised under the Arbitration and Conciliation Act, 1996. 1) Arbitration Dispute decided by a neutral arbitrator or arbitral tribunal. Decision (arbitral award) is binding and enforceable like a court decree. Can be institutional (e.g., arbitration centres) or ad-hoc. Used heavily in commercial and international disputes. 2) Conciliation Neutral conciliator actively suggests solutions and settlement terms. More interventionist than mediation. Settlement agreement has legal status of arbitral award under the 1996 Act. Common in commercial and contractual disputes. 3) Mediation Neutral mediator facilitates dialogue; does not impose a decision. Voluntary, confidential, and party-driven. Outcome becomes binding only if parties sign a settlement. Increasingly used in family, civil, and community disputes. 4) Negotiation Parties directly discuss to reach a mutually acceptable solution. No third-party involvement. Most informal and flexible ADR method. Often first step before formal ADR. 5) Lok Adalats (People’s Courts) Statutory ADR under Legal Services Authorities Act, 1987. Focus on compromise and settlement. Award is final, binding, and non-appealable. Effective in reducing judicial backlog. 6) Online Dispute Resolution (ODR) Uses digital platforms, AI tools, and video conferencing. Suitable for e-commerce, fintech, and small-value disputes. Promoted under Digital India and e-Courts initiatives. 10,000 Farmer Producer Organisations (FPOs) Scheme Legal–Policy Foundation Scheme Basis Central Sector Scheme on Formation and Promotion of 10,000 FPOs launched in 2020 to collectivise small and marginal farmers, enhance bargaining power, and enable economies of scale in agriculture value chains. Implemented by Ministry of Agriculture and Farmers Welfare with support of SFAC, NABARD, NCDC, reflecting convergence model combining credit, capacity building, and market linkage support for farmer collectives. FPOs legally registered under Companies Act, 2013 (Producer Company provisions) or Cooperative/Society laws, providing formal institutional identity, limited liability, and democratic member-driven governance structure. Scheme aligns with Doubling Farmers’ Income vision, SDG-1 (No Poverty) and SDG-2 (Zero Hunger) by improving farmer income realisation through aggregation and value addition. Relevance GS 3 (Agriculture & Economy) Agricultural marketing reforms, value chains, and income diversification. Economies of scale, agri-exports, and market-led agriculture transition. Linkages with e-NAM, food processing, and digital agriculture. Core Objectives Functional Goals Promote collectivisation of producers for better input procurement, technology adoption, and market access, reducing dependence on intermediaries and improving farm-gate price realisation. Strengthen post-harvest management, processing, branding, and exports, shifting farmers from subsistence cultivation toward commercial and value-chain oriented agriculture. Facilitate access to institutional credit, as individual smallholders often lack collateral and credit history, but FPOs improve creditworthiness through collective strength. Encourage cluster-based business organisations (CBBOs) to provide professional handholding, business planning, and managerial support for initial 5-year nurturing period. Current Status & Data Latest Figures 10,000 FPOs formed under scheme as of 1 January 2026, marking achievement of major institutional target in farmer collectivisation and rural economic organisation. 56.32 lakh farmers enrolled, indicating large-scale mobilisation of agrarian population into formal producer collectives, critical for structural transformation of fragmented landholding system. 21.96 lakh women farmers enrolled, reflecting significant gender inclusion, improving women’s role in decision-making, income control, and agri-entrepreneurship. 1,175 FPOs with 100% women members demonstrate targeted push toward women-led producer enterprises, aligning with gender empowerment and inclusive rural development goals. Governance & Administrative Significance Institutional Impact FPOs reduce transaction costs, enable bulk marketing, and improve integration with e-NAM and digital agriculture platforms, strengthening market efficiency and price discovery. Support government shift from price support–centric agriculture toward market-led income enhancement, reducing excessive MSP dependency over long term. Promote decentralised rural institutions, strengthening grassroots economic democracy and participatory development consistent with cooperative federalism and local empowerment principles. Economic Significance Income & Market Impact Aggregation through FPOs improves scale economies, lowering per-unit costs of inputs, logistics, storage, and processing, thereby enhancing farmer profitability and competitiveness. Facilitates entry into high-value agriculture—horticulture, dairy, fisheries, organic produce—diversifying income sources and reducing monoculture risk. Enhances export readiness through quality standardisation and traceability, supporting India’s agri-export targets under Agriculture Export Policy, 2018. Social & Ethical Dimensions  Inclusion Value Women-centric FPOs improve financial inclusion, leadership participation, and social status of rural women, contributing to gender equity and household welfare improvements. Collective model reduces vulnerability of marginal farmers against price shocks, climate risks, and exploitative middlemen structures. Challenges & Criticisms Structural Gaps Many FPOs face weak managerial capacity, business planning gaps, and market intelligence deficits, affecting sustainability beyond government support period. Limited access to working capital and risk finance constrains scaling of operations and value-addition activities. Over-reliance on grants risks creating grant-dependent institutions rather than self-sustaining commercial entities. Market linkages often remain localised, limiting integration into national and global value chains. Way Forward Reform Directions Strengthen professional management, agri-business training, and digital literacy for FPO leaders to improve commercial viability. Expand credit guarantee mechanisms and blended finance models to attract private investment into FPO ecosystem. Integrate FPOs with food processing clusters, ONDC, and e-commerce platforms to widen market access. Promote women-led FPO federations to achieve scale, negotiation power, and policy visibility.

Editorials/Opinions Analysis For UPSC 07 February 2026

Content RBI maintains status quo, conserves policy ammunition Anthropic sends a message to Bengaluru: AI and India’s IT services model RBI maintains status quo, conserves policy ammunition Monetary Policy & Legal Framework Institutional Basis Reserve Bank of India (RBI) operates under RBI Act, 1934; Monetary Policy Committee (MPC) created via 2016 amendment, institutionalising flexible inflation targeting and rule-based monetary policy. MPC consists of 6 members (3 RBI + 3 Government nominees); decisions by majority vote with Governor’s casting vote, ensuring institutional balance between autonomy and accountability. India follows Flexible Inflation Targeting (FIT) with mandated CPI target 4% ±2% band (2–6%), notified by Government under Section 45ZA of RBI Act. Relevance GS 3 – Economy Monetary policy, inflation targeting, interest rates, liquidity management, capital flows, exchange rate stability. Growth–inflation trade-off, real interest rates, and macroeconomic stabilisation. Role of central banks in managing global spillovers and commodity shocks. Practice Question “In an uncertain global environment, central banks often prioritise policy credibility over short-term growth stimulus.”Discuss in the context of RBI’s recent status quo on policy rates.(250 Words) Current Policy Stance Status Quo Decision RBI kept policy repo rate unchanged at 5.25% (Feb 2026), continuing pause since Feb 2023, indicating cautious approach amid global uncertainty and evolving inflation-growth dynamics. Decision reflects strategy to preserve policy space (“policy ammunition”), allowing future rate actions if inflationary or growth shocks emerge domestically or globally. RBI assessment suggests inflation trajectory becoming manageable, reducing urgency for immediate rate cuts while ensuring credibility of inflation targeting framework. Inflation Dynamics Price Stability Context CPI inflation projected ~4% for FY27, aligning with RBI’s medium-term target, signalling relative price stability compared to post-pandemic and Ukraine-war driven inflation spikes. Core inflation softening indicates easing demand-side pressures, while food inflation volatility remains key risk due to climate variability and supply-side shocks. Stable inflation expectations strengthen real interest rate transmission, supporting macroeconomic credibility and currency stability. Growth Outlook GDP Projections RBI projects GDP growth ~7.2% for FY27, reflecting India’s position as fastest-growing major economy, supported by domestic demand, capex push, and services sector resilience. Lower global crude and commodity prices reduce imported inflation and input costs, improving corporate margins and household purchasing power. Potential improvement in capital flows expected if advanced economies like US and EU witness monetary easing cycles. Liquidity & Financial Conditions Liquidity Management RBI previously infused liquidity through CRR adjustments and OMOs, ensuring adequate system liquidity to support credit growth and financial stability. Despite earlier liquidity support, RBI remains cautious as excessive liquidity can rekindle inflationary pressures and asset price bubbles. Balancing liquidity with price stability reflects calibrated monetary management in uncertain global macroeconomic environment. External Sector Considerations Global Linkages US tariff policies and global trade uncertainty affect export outlook, though diversified export basket reduces concentrated vulnerability. Narrower interest rate differentials with US could influence capital flows and exchange rate stability, shaping RBI’s cautious stance. India’s strong forex reserves (historically above USD 600 billion range) provide buffer against external volatility. Governance & Economic Significance Policy Credibility Maintaining status quo signals policy predictability, anchoring investor confidence and financial market stability. Conservative approach protects against premature easing that may destabilise inflation expectations. Reinforces RBI’s reputation as credible inflation-targeting central bank among emerging markets. Challenges & Risks Structural Concerns Food inflation vulnerability due to monsoon variability and climate shocks remains persistent structural risk. Global financial volatility, geopolitical tensions, and commodity price swings could disrupt inflation trajectory. Tight policy for prolonged period may moderate private investment and consumption momentum. Way Forward Policy Priorities Maintain data-dependent monetary policy, avoiding rigid forward guidance amid volatile global macroeconomic environment. Strengthen supply-side measures in food management to reduce structural inflation drivers beyond monetary control. Improve monetary-fiscal coordination to ensure fiscal deficits do not counteract disinflation efforts. Deepen financial markets to enhance smoother transmission of policy rates. Anthropic sends a message to Bengaluru: AI and India’s IT services model Technological & Policy Context AI Disruption Basics Rapid advances in Generative AI (GenAI) are shifting software work from human-coded solutions toward AI-assisted and AI-generated outputs, challenging traditional labour-intensive IT services models. Firms like Anthropic and OpenAI demonstrate AI systems capable of coding, legal review, workflow planning, and analytics, expanding AI from assistance to partial task substitution in knowledge industries. India’s IT sector, built on outsourcing, cost arbitrage, and skilled manpower, now faces structural disruption as AI reduces need for large coding and support teams. Shift marks transition from “services-led digital economy” to “AI-augmented knowledge economy”, demanding policy and workforce adaptation. Relevance GS 3 – Economy & S&T AI-led productivity shifts, automation, and digital economy transformation. Impact on IT exports, employment, and business models. Innovation ecosystem, R&D, and strategic technology capacity. Practice Question “Generative AI may do to IT services what automation did to manufacturing.”Discuss implications for India’s growth and employment model.(250 Words) Economic Significance Growth Model Implications India’s IT-BPM sector contributes ~7–8% of GDP and over USD 200+ billion exports annually, making AI disruption macroeconomically significant for growth, forex, and employment. AI-driven automation may compress billing-hour models, pushing firms toward outcome-based pricing and high-value consulting rather than routine services. Productivity gains from AI can improve margins but may reduce entry-level hiring, affecting India’s demographic dividend utilisation. Stock market reactions, such as IT index declines, reflect investor concerns about medium-term revenue models and competitiveness. Employment & Social Dimensions Workforce Impact Routine coding, testing, and documentation roles face higher automation risk, especially entry-level positions forming bulk of Indian IT recruitment pipelines. However, AI creates demand for AI trainers, prompt engineers, data curators, and domain specialists, shifting skill composition rather than eliminating jobs entirely. Risk of job polarisation—high-skill AI roles grow while mid-skill routine jobs shrink—raising inequality and reskilling urgency. Large-scale reskilling aligns with NEP 2020 emphasis on digital and future skills. Governance & Regulatory Relevance Policy Interface India’s approach under Digital India and IndiaAI Mission seeks to build domestic AI capability, compute infrastructure, and datasets for strategic autonomy. Need for regulatory clarity on AI ethics, liability, and data protection under frameworks like Digital Personal Data Protection Act, 2023. Government role shifts toward enabler and regulator, ensuring innovation without harming employment stability or data sovereignty. Strategic & Global Dimensions Competitive Positioning Global AI race led by US and China may reshape digital value chains; India must avoid being confined to low-value segments. Opportunity to position India as hub for responsible AI, multilingual AI, and Global South solutions, leveraging large digital public infrastructure. AI capability increasingly linked with national power, productivity, and strategic autonomy. Challenges & Risks Structural Concerns Skill mismatch between current workforce and AI-driven demand may create short-term unemployment pressures. High dependence on foreign AI models risks technological dependence and data colonialism. SMEs may struggle to invest in AI adoption, widening digital divide within industry. Ethical concerns over algorithmic bias, surveillance, and accountability remain unresolved. Way Forward Reform Directions Scale up AI-focused skilling programs, integrating coding, statistics, and domain expertise through industry–academia collaboration. Incentivise R&D, domestic AI startups, and compute infrastructure to reduce import dependence. Promote human-in-the-loop AI systems ensuring augmentation rather than full automation. Develop clear AI governance framework balancing innovation, ethics, and labour transition support.

Daily Current Affairs

Current Affairs 07 February 2026

Content H5N1 AVIAN INFLUENZA (BIRD FLU) DEEP TECH START-UPS IN INDIA RBI FRAMEWORK FOR COMPENSATION TO CYBERFRAUD VICTIMS RBI MONETARY POLICY COMMITTEE (MPC) & POLICY RATES AGROFORESTRY IN INDIA BLYTH’S TRAGOPAN (Tragopan blythii) H5N1 AVIAN INFLUENZA (BIRD FLU) Context H5N1 avian influenza detected in dead crows in Chennai, prompting Tamil Nadu authorities to issue advisories, strengthen surveillance, and enforce biosecurity, highlighting periodic zoonotic disease risks in urban ecosystems. Detection reiterates need for avian disease monitoring in migratory and urban bird populations, as sporadic outbreaks in India trigger containment protocols under national avian influenza response framework. Relevance GS 2 (Health & Governance) Public health preparedness, zoonotic disease surveillance, One Health approach, Centre–State coordination in epidemic response. GS 3 (Environment & Science) Zoonotic diseases, wildlife–livestock interface, biodiversity–health linkages, biosecurity and pandemic risk management. Scientific Basics Nature of Disease Avian Influenza is a zoonotic viral disease caused by Influenza A viruses of family Orthomyxoviridae, primarily infecting birds but occasionally crossing species barriers to infect humans and mammals. Influenza A viruses are classified by Hemagglutinin (H1–H16) and Neuraminidase (N1–N9) proteins; H5N1 subtype denotes specific antigenic structure influencing virulence, host range, and immune response. Avian influenza viruses are categorised as Low Pathogenic (LPAI) or Highly Pathogenic (HPAI); H5N1 is HPAI, causing systemic infection and high mortality in domestic poultry populations. Wild aquatic birds are natural reservoirs, often asymptomatic, facilitating long-distance virus spread through migratory flyways and creating epidemiological links between continents and domestic poultry. Transmission Mechanism Spread Dynamics Virus spreads among birds via saliva, nasal secretions, and faeces, contaminating shared water bodies, feed sources, cages, and farm equipment in intensive poultry environments. Human infection mainly occurs through direct handling of infected birds, carcasses, or contaminated environments, especially in farms and live bird markets with poor biosecurity. No sustained human-to-human transmission documented, limiting pandemic potential, yet sporadic human infections justify continuous global and national surveillance. Virus survives longer in cool, moist conditions, making wetlands and winter seasons ecologically favourable for persistence and transmission among bird populations. Symptoms & Pathology Clinical Features In birds, infection causes sudden death, respiratory distress, swelling, neurological signs, diarrhoea, and drastic fall in egg production due to multi-organ viral replication. In humans, symptoms include high fever, cough, sore throat, muscle aches, and pneumonia, sometimes progressing to acute respiratory distress syndrome requiring intensive care. WHO records indicate around 50% case fatality among confirmed human H5N1 cases globally, though total human infections remain very limited in number. Prevention & Control Biosecurity Measures Culling of infected and exposed poultry remains primary containment method as vaccination effectiveness is limited against rapidly mutating highly pathogenic strains. Farm biosecurity requires controlled entry, sanitation, protective clothing, and routine disinfection, reducing farm-to-farm transmission risks. Safe disposal of carcasses through deep burial or incineration prevents soil and water contamination and secondary transmission. Proper cooking above 70°C destroys virus, ensuring well-cooked poultry and eggs remain safe for human consumption. Institutional & Legal Framework (India) Governance Structure Governed under Prevention and Control of Infectious and Contagious Diseases in Animals Act, 2009, empowering authorities to enforce quarantine, culling, and movement control. National Action Plan on Avian Influenza guides surveillance, outbreak response, zoning, and farmer compensation to ensure transparency and cooperation. India follows One Health approach, integrating animal, human, and environmental health surveillance for zoonotic disease management. Coordination among Department of Animal Husbandry, State Veterinary Services, and Public Health Departments ensures multi-sectoral outbreak response. Economic & Social Significance Sectoral Impact Poultry sector is major source of affordable protein, rural employment, and income diversification, making outbreaks economically sensitive. Outbreaks often cause consumer panic, price crashes, and trade restrictions, directly impacting farmers’ incomes and agri-exports. Compensation mechanisms help ensure early reporting and cooperation from poultry farmers during outbreaks. Environmental Linkages Ecology Dimension Migratory birds along Central Asian Flyway act as long-distance carriers, linking disease ecology across countries and seasons. Wetlands serve as ecological interfaces where wild and domestic birds interact, facilitating viral exchange. Climate variability influences migration routes, congregation patterns, and viral persistence in ecosystems. Challenges Structural Issues Frequent antigenic drift and shift in influenza viruses complicate vaccine development and long-term immunity. Informal poultry markets often lack traceability and biosecurity compliance, increasing outbreak risks. Veterinary infrastructure and rapid diagnostic capacity remain uneven across regions. Misinformation can reduce poultry consumption despite food safety assurances, hurting livelihoods. Way Forward Strategic Measures Strengthen One Health surveillance systems integrating wildlife, livestock, and human disease databases for early warning. Expand district-level veterinary labs and rapid response teams for timely containment. Promote farmer awareness on farm-level biosecurity and early reporting practices. Enhance international cooperation under WHO–FAO–WOAH frameworks for transboundary disease monitoring. DEEP TECH START-UPS IN INDIA Context Current Trigger Government of India issued official definition of “Deep Tech start-up” via DPIIT gazette notification, bringing regulatory clarity to a previously loosely used term amid rising policy focus on technology-driven innovation. Definition gains importance due to ₹1 lakh crore Research, Development and Innovation (RDI) Fund and increasing public financing support targeted at high-technology and frontier innovation sectors. Relevance GS 3 (Science & Technology) Frontier technologies (AI, quantum, biotech, semiconductors), R&D ecosystem, IP generation, innovation-led growth. GS 3 (Economy) Knowledge economy transition, high-tech manufacturing, startup financing, productivity and export competitiveness. Conceptual & Scientific Basis Meaning of Deep Tech Deep Tech refers to start-ups based on advanced scientific or engineering innovations, producing solutions rooted in new knowledge rather than incremental digital or business-model innovations. Typically operates in frontier domains like AI, quantum computing, biotechnology, semiconductors, space tech, and advanced materials, where breakthroughs rely on scientific research and experimentation. Distinguished from regular tech start-ups by high R&D intensity, strong IP creation, and technology-led competitive advantage rather than platform or service aggregation models. Deep tech innovation often originates from university labs, research institutions, or scientific ecosystems, linking academia, industry, and government research systems. Official Definition Criteria (DPIIT) Qualification Norms A deep tech start-up must focus on new scientific or engineering knowledge, not merely applying existing technologies in commercial or service contexts. Must spend major share of expenditure on R&D, signalling research-driven rather than marketing-driven enterprise structure. Required to own or develop significant intellectual property (IP) and actively pursue commercialisation of that IP. Characterised by long gestation, high capital needs, infrastructure intensity, and significant technical uncertainty, distinguishing it from fast-scaling digital start-ups. Start-up Eligibility Norms Age & Turnover Rules Standard start-up defined as entity less than 10 years old or turnover below ₹200 crore, as per DPIIT norms. Deep tech start-ups receive extended runway, qualifying as start-up for up to 20 years with turnover ceiling of ₹300 crore, acknowledging longer innovation cycles. Recognition requires application and certification by DPIIT, making status rule-based rather than self-declared. Institutional & Governance Framework Regulatory Structure DPIIT is final authority for recognising start-ups and deep tech start-ups, ensuring standardised national classification. Decisions guided by Inter-Ministerial Board of Certification including representatives from DPIIT, Department of Science & Technology (DST) and Department of Biotechnology (DBT). Start-ups are restricted from investing in real estate, speculative assets, or securities unless directly linked to knowledge creation, ensuring focus on innovation. Reflects governance shift toward mission-oriented innovation policy rather than broad-based start-up promotion alone. Policy & Economic Significance Strategic Importance Deep tech critical for strategic autonomy, technological sovereignty, and high-value manufacturing, reducing dependence on foreign technology. Drives productivity, export competitiveness, and high-skilled employment, moving India up the global value chain. Aligns with Atmanirbhar Bharat, Digital India, and Make in India visions focusing on domestic innovation capacity. Encourages knowledge economy transition, where growth stems from IP, patents, and research-led enterprises. Financing Ecosystem R&D Support Anusandhan National Research Foundation (ANRF) oversees ₹1 lakh crore RDI Fund to finance emerging technologies and research over seven years. Deep tech start-ups may receive concessional financing at 2–4% interest with tenures up to 15 years, easing capital constraints. Public funding reduces early-stage risk where private investors hesitate due to uncertain and long innovation cycles. Signals state-led catalytic role in high-risk innovation financing. Challenges Structural Constraints Long gestation periods delay revenue generation, creating funding stress and investor hesitation. Limited deep-tech venture capital ecosystem compared to US and China. Weak academia–industry technology transfer pipelines slow commercialisation. Talent shortages in frontier science and interdisciplinary research areas. Way Forward Strategic Measures Strengthen industry–academia collaboration and technology transfer offices in universities. Expand deep-tech focused venture funds and blended finance instruments. Fast-track approval of national deep tech policy for coherent ecosystem support. Promote global partnerships in frontier technologies while safeguarding IP. RBI FRAMEWORK FOR COMPENSATION TO CYBERFRAUD VICTIMS Context RBI proposed framework to compensate online fraud victims up to ₹25,000, targeting small-value digital payment frauds, reflecting regulatory response to rising cybercrime in digital financial ecosystem and UPI expansion. Proposal shifts burden partly to banks and institutions, signalling stronger consumer protection regime amid rapid growth of digital payments, fintech usage, and cashless economy adoption across India. Relevance GS 3 (Economy) Digital payments ecosystem, fintech regulation, financial stability and consumer confidence. GS 3 (Internal Security / Cybersecurity) Cybercrime trends, digital fraud risks, need for cyber resilience and financial data protection. Conceptual & Regulatory Basics Cyber Fraud Meaning Cyber financial fraud involves unauthorised digital transactions through phishing, OTP compromise, social engineering, or malware, exploiting gaps in user awareness, digital hygiene, and platform-level security safeguards. RBI treats digital payment safety as core to payment system integrity, governed under Payment and Settlement Systems Act, 2007, ensuring trust, stability, and consumer confidence in electronic transactions. Key Features of Proposed Framework Compensation Structure Victims of small-value online frauds may receive compensation up to ₹25,000, focusing on frequently occurring low-ticket digital frauds affecting large number of retail users. Both bank and customer share liability, each bearing 15% of transaction value, while RBI-funded Depositor Education and Awareness (DEA) Fund covers remaining eligible compensation portion. Example-based approach ensures proportional relief; if fraud loss is below ₹25,000, compensation aligns with defined percentage-sharing formula rather than full unconditional reimbursement. Framework covers cases even where customers inadvertently share credentials, recognising modern fraud complexity and shifting toward victim-sensitive regulatory stance. Institutional Mechanism Governance Framework Compensation financed through Depositor Education and Awareness Fund, created by RBI using unclaimed deposits, primarily aimed at depositor protection and financial literacy promotion. RBI and banks will conduct due diligence checks, ensuring fraud legitimacy and preventing misuse, balancing consumer protection with moral hazard concerns. Framework emphasises shared responsibility model, encouraging both institutional safeguards and consumer vigilance in digital transactions. Economic & Governance Significance Systemic Importance Strengthens trust in digital payments ecosystem, crucial as India leads globally in real-time digital transactions volume, particularly through UPI-driven retail payments revolution. Enhances consumer confidence, supporting government push toward less-cash economy, financial inclusion, and fintech-led innovation. Reinforces RBI’s role as financial consumer protector, not merely monetary authority, expanding regulatory scope in digital finance governance. Social & Ethical Dimensions Citizen Protection Protects vulnerable users like elderly and first-time digital adopters, who face higher cyber fraud risks due to limited digital literacy. Ethical governance principle of fairness and victim protection reflected in partial compensation even when user negligence exists. Challenges & Risks Structural Concerns Risk of moral hazard, where guaranteed compensation may reduce consumer caution and digital hygiene practices. Verification complexity and dispute resolution delays may burden banks and regulators. Fraud detection remains reactive rather than preventive in many cases. Cybercriminal innovation evolves rapidly, outpacing regulatory responses. Way Forward Strategic Measures Strengthen real-time fraud detection systems, AI-driven monitoring, and transaction alerts to prevent frauds before loss occurs. Expand nationwide digital financial literacy campaigns on phishing, OTP safety, and secure banking practices. Improve coordination between RBI, banks, NPCI, and law enforcement for rapid response and fund recovery. Develop clearer liability frameworks for fintech intermediaries and third-party platforms. RBI MONETARY POLICY COMMITTEE (MPC) & POLICY RATES Context RBI’s Monetary Policy Committee kept repo rate steady at 5.25% while raising FY26 GDP and inflation projections, indicating cautious optimism about growth alongside evolving inflation dynamics. Decision reflects RBI’s attempt to balance price stability and growth support, amid changing global monetary conditions and domestic demand patterns. Relevance GS 3 (Economy) Inflation targeting, interest rates, liquidity management, monetary transmission, macroeconomic stability. GS 2 (Polity & Governance) Institutional autonomy of RBI, rule-based policymaking, accountability mechanisms. Constitutional–Legal & Institutional Basis Legal Framework Monetary Policy Committee (MPC) established under RBI Act, 1934 (amended 2016) to institutionalise rule-based, transparent, and accountable monetary policy decision-making in India. MPC consists of 6 members — 3 from RBI and 3 government nominees, with RBI Governor as Chairperson holding casting vote in case of tie. India follows Flexible Inflation Targeting (FIT) framework with mandated CPI target of 4% ±2% (2–6%), notified by Government every five years. RBI must publish Monetary Policy Report and explain failure if inflation remains outside target band for three consecutive quarters. Repo Rate & Policy Rates Basics Core Concepts Repo rate is the rate at which RBI lends short-term funds to commercial banks against government securities, serving as primary monetary policy signalling tool. Changes in repo rate influence lending rates, deposit rates, liquidity, credit demand, and overall economic activity, forming core of monetary transmission mechanism. Other policy rates include Reverse Repo Rate, Standing Deposit Facility (SDF), and Marginal Standing Facility (MSF) forming liquidity adjustment framework. Monetary policy stance can be accommodative, neutral, or tightening, depending on macroeconomic priorities. Inflation Dynamics Price Stability Context Inflation projections revised upward for FY26, reflecting evolving food price pressures, energy price trends, and demand recovery. Benign core inflation provides room for growth support, while food inflation remains structurally volatile due to monsoon dependence and supply-side rigidities. Anchored inflation expectations improve real income stability and investor confidence. RBI’s primary mandate remains price stability while keeping growth in mind. Growth Outlook GDP Projections Upward revision in GDP growth projections signals confidence in domestic demand, government capex push, and resilient services sector. India remains among fastest-growing major economies, supported by structural reforms and demographic advantage. Credit growth and private consumption remain key growth drivers. Global slowdown risks and trade uncertainties remain external constraints. Governance & Economic Significance Policy Credibility Predictable rate decisions enhance policy credibility and financial market stability, reducing volatility in bond and equity markets. Supports investment planning and macroeconomic stability. Reinforces RBI’s reputation as credible inflation-targeting central bank. Strengthens rule-based macroeconomic governance. Challenges & Risks Structural Concerns Food inflation sensitivity to climate shocks complicates monetary control. Global oil price volatility impacts imported inflation. Tight policy may moderate private investment. Transmission lags reduce immediate policy effectiveness. Way Forward Strategic Measures Maintain data-driven, flexible policy approach amid uncertainty. Improve food supply management to tackle structural inflation. Deepen financial markets for smoother transmission. Strengthen monetary-fiscal coordination. AGROFORESTRY IN INDIA Context India targets 50 million hectares under agroforestry by 2050, yet financing remains inadequate, with <5% of ₹20 lakh crore annual agricultural credit flowing to agroforestry despite climate and income benefits. Discussions at South Asian Agroforestry & Trees Outside Forests (AF-TOF) Congress 2026 highlighted structural financing gaps, policy awareness deficits, and regulatory hurdles limiting agroforestry expansion across South Asia. Relevance GS 3 (Environment & Climate) Climate mitigation, carbon sequestration, land restoration, sustainable agriculture. GS 3 (Agriculture & Economy) Farmer income diversification, timber imports, agro-based industries, rural resilience. Conceptual & Scientific Basics Meaning of Agroforestry Agroforestry integrates trees, crops, and sometimes livestock on the same land management unit, combining ecological and economic functions to improve productivity, sustainability, and climate resilience. Recognised by FAO as sustainable land-use system that enhances biodiversity, soil fertility, microclimate regulation, and diversified farmer incomes while reducing land degradation. Includes systems like agri-silviculture, silvo-pastoral, and agri-horticulture, depending on tree–crop–livestock combinations suited to agro-climatic zones. Bridges agriculture and forestry sectors, falling under Trees Outside Forests (TOF) category in policy discourse. Policy & Legal Framework Institutional Basis India launched National Agroforestry Policy, 2014, becoming first country with dedicated agroforestry policy, aiming to integrate tree cultivation with farming systems. Policy seeks to simplify felling and transit regulations, improve market access, and promote research, extension, and institutional credit support. Agroforestry aligns with National Forest Policy, 1988 goal of one-third geographical area under tree/forest cover. Linked with schemes like Sub-Mission on Agroforestry (SMAF) under National Mission for Sustainable Agriculture. Current Status & Data Key Figures India has nearly 28 million hectares under agroforestry, contributing significantly to tree cover outside traditional forests. Agroforestry systems hold nearly 20% of India’s national carbon stocks, demonstrating climate mitigation potential. India imports over $7 billion worth of wood annually, indicating domestic production gap and livelihood opportunity for farmers. Around 86% Indian farmers are small and marginal, making diversified income sources like agroforestry economically relevant. Economic Significance Livelihood & Trade Impact Agroforestry provides diversified income streams through timber, fruits, fodder, fuelwood, and non-timber forest products, reducing farm income volatility. Reduces import dependence on timber and wood products, improving trade balance and domestic value chains. Long-term tree assets function as natural savings and insurance for rural households. Supports agro-processing and rural industries linked to wood and tree-based products. Environmental & Climate Significance Ecological Benefits Enhances carbon sequestration, supporting India’s NDC commitments under Paris Agreement. Reduces soil erosion, improves soil organic carbon, and enhances water retention. Acts as buffer against climate variability through microclimate regulation and windbreak effects. Studies show agroforestry helps avoid millions of tonnes of GHG emissions annually. Governance & Financial Challenges Structural Constraints Long gestation periods (5–30 years) discourage formal credit as returns are delayed compared to seasonal crops. Land tenure complexities and lack of clear tree ownership rights reduce creditworthiness and farmer confidence. Trees often not accepted as collateral by banks, limiting institutional finance access. Limited farmer awareness about harvesting and transit rules restricts adoption. Way Forward Strategic Measures Develop dedicated agroforestry credit lines with longer repayment cycles matching tree growth periods. Integrate agroforestry with carbon markets and green finance mechanisms for additional revenue streams. Simplify tree felling and transit regulations across states for market confidence. Promote digital traceability and private-sector procurement linkages. BLYTH’S TRAGOPAN (Tragopan blythii) Context Blyth’s tragopan highlighted in conservation discourse as a rare Himalayan pheasant facing habitat loss and hunting pressure, drawing attention to indicator species role in fragile Eastern Himalayan ecosystems. Renewed focus arises from biodiversity reporting and conservation discussions stressing indicator species importance for monitoring mountain ecosystem health, forest integrity, and climate-sensitive habitats in Northeast India. Relevance GS 3 (Environment & Biodiversity) Endangered species conservation, Eastern Himalayan biodiversity hotspot, indicator species concept. GS 3 (Ecology) Habitat fragmentation, climate-sensitive mountain ecosystems, forest ecology. Taxonomy & Biological Basics Species Identity Blyth’s tragopan is a pheasant species (Family: Phasianidae), named after Edward Blyth, characterised by strong sexual dimorphism, elaborate male display features, and cryptic female camouflage for nesting survival. Belongs to genus Tragopan, which includes Satyr, Temminck’s, Western, and Blyth’s tragopans, collectively known for ornate plumage, inflatable throat lappets, and horn-like display structures during breeding. Medium-sized galliform bird; male length 65–70 cm, female about 59 cm, showing size dimorphism alongside colour differences typical of pheasant reproductive strategies. Habitat & Distribution Geographic Range Distributed across Bhutan, Northeast India, northern Myanmar, southeastern Tibet, and Yunnan (China), forming a fragmented Eastern Himalayan and Indo-Burma range. In India, found mainly in Arunachal Pradesh, Nagaland, Manipur, and Mizoram, particularly within undisturbed montane broadleaf forests rich in bamboo and rhododendron understory. Shows altitudinal migration, occupying 1,400 m in winter and up to 3,300 m in summer, responding to snowfall, food availability, and seasonal vegetation patterns. Stronghold populations survive in areas like Dihang-Dibang Biosphere Reserve, indicating importance of large intact forest landscapes for species persistence. Ecological Significance Indicator Role Recognised as an indicator species, reflecting health of Eastern Himalayan montane forests, which are among Asia’s richest biodiversity hotspots and climate-sensitive ecosystems. Presence indicates intact understorey vegetation, minimal disturbance, and high habitat quality, useful for ecological monitoring and conservation prioritisation. As a forest-floor feeder, contributes to seed dispersal and ecological balance, supporting forest regeneration processes. Conservation Status Legal & Global Status Listed as Vulnerable on IUCN Red List, indicating high risk of population decline due to habitat loss and hunting pressures. Included in Schedule I of Wildlife (Protection) Act, 1972, granting highest legal protection in India against hunting and trade. Also listed under CITES Appendix I, prohibiting international commercial trade and recognising global conservation concern. Estimated global population below 10,000 individuals, fragmented across isolated habitats, increasing extinction vulnerability. Threats Anthropogenic Pressures Habitat fragmentation from hydropower projects, road construction, and settlements disrupts forest continuity critical for species survival. Shifting cultivation (jhum) reduces mature broadleaf forests, replacing them with secondary vegetation unsuitable for tragopan nesting and foraging. Hunting for meat, feathers, and cultural uses remains localised threat despite legal protections. Low reproductive rate and secretive behaviour slow natural population recovery. Governance & Conservation Measures Protection Strategies Protected Areas, community reserves, and biosphere reserves form primary conservation framework for tragopan habitats in Northeast India. Community-based conservation models in Nagaland demonstrate local stewardship and reduced hunting pressure through awareness and eco-cultural pride. Surveys and population monitoring needed for evidence-based conservation planning and adaptive management. Awareness campaigns critical to reduce illegal bird trade and bushmeat demand. Way Forward Strategic Measures Expand community-led conservation and eco-tourism, linking livelihoods with species protection to build local incentives. Strengthen habitat protection in Eastern Himalayas through landscape-level conservation planning. Promote scientific monitoring using camera traps and acoustic surveys for better population estimates. Integrate tragopan conservation within biodiversity hotspot and climate adaptation strategies.

Editorials/Opinions Analysis For UPSC 06 February 2026

Content Governor’s Constitutional Duties & Address to Legislature  Dilution of Environmental Justice in India  Governor’s Constitutional Duties & Address to Legislature  Constitutional Position of Governor Nature of Office Governor is constitutional head of State; though executive power is formally vested in Governor, it is exercised on aid and advice of Council of Ministers (Articles 163–164) in a parliamentary system. Article 168 makes Governor part of State Legislature along with Assembly/Council, showing role is institutionally embedded in law-making process, not merely ceremonial symbolism. Governor is expected to act as neutral constitutional sentinel, preserving federal balance, constitutional morality, and democratic mandate rather than acting as political agent of Union government. Relevance GS-2 (Polity): Governor’s powers, aid-and-advice principle, Articles 163, 168, 175, 176, and limits of discretion. Centre–State relations, federalism, constitutional conventions, Punchhi Commission reforms. Practice Question “The Governor is meant to be a constitutional sentinel, not a political actor.” Examine the constitutional duties of the Governor regarding the legislative address and discuss issues arising from recent controversies. Suggest reforms. (15M) Duty Regarding Address to Legislature Article 176 — Special Address Article 176 mandates Governor’s address at first session after general election and first session each year, making it a constitutional obligation, not optional political convention. Address communicates government’s legislative and policy agenda, drafted exclusively by elected Council of Ministers, reflecting democratic will and collective cabinet responsibility before legislature. Refusal to read, truncating, or selectively omitting portions violates spirit of cabinet responsibility, since Governor substitutes personal judgment for elected executive’s policy communication. Discretion and Limits Can Governor Alter Speech? Governor cannot alter Cabinet-approved text, as address is executive act performed on aid and advice; Governor bears no legal or political responsibility for its contents. Supreme Court in Nabam Rebia (2016) held Governor must ordinarily act on aid and advice in legislative matters, limiting discretionary space and reinforcing parliamentary accountability. Discretion exists only in rare constitutional situations, not for judging desirability or ideology of government policies contained in legislative address. Related Constitutional Provisions Article 175 Article 175 allows Governor to address or send messages to legislature regarding pending bills, but this is supplementary power and cannot replace mandatory Article 176 special address. Article 355 Article 355 obligates Union to ensure State governance aligns with Constitution; persistent gubernatorial deviation from Article 176 raises questions about meaningful discharge of this Union duty. Article 160 Article 160 empowers President to make provisions for discharge of Governor’s functions in contingencies, theoretically enabling directions when gubernatorial conduct risks constitutional breakdown. Accountability Structure President vs Governor President is indirectly elected and removable by impeachment, creating institutional accountability to Parliament, which moderates conduct through constitutional and political checks. Governor holds office at pleasure of President (Union government), lacking impeachment process, leading to perception of political dependence and weaker accountability to State Legislature. This asymmetry explains why Presidents rarely attract controversy, whereas Governors often face allegations of partisanship in politically contested States. Federalism and Governance Dimension Centre–State Relations Partisan gubernatorial actions in Opposition-ruled States generate friction, undermine cooperative federalism, and create perception of indirect Union interference in State legislative functioning. Delays or disruptions in legislative sessions due to Governor’s conduct can indirectly affect law-making, budget approvals, and democratic governance at State level. Colonial Legacy Debate Retain or Remove? Supporters argue Governor’s address reflects Westminster parliamentary tradition, symbolising constitutional continuity and formal link between executive policies and legislative scrutiny. Critics argue practice is largely ceremonial, non-essential for legislative functioning, and increasingly politicised, thus reconsideration may be justified in modern federal democracy. Ethical and Normative Dimension Constitutional Morality Constitutional morality requires Governors to prioritise democratic mandate, restraint, and neutrality, even when personal or political preferences differ from elected government’s policies. Visible partisanship erodes public trust in constitutional offices and weakens legitimacy of federal institutions designed to be politically neutral. Challenges and Grey Areas Practical Concerns Constitution does not clearly specify penalties or corrective mechanisms if Governor refuses to deliver address, creating enforcement ambiguity and reliance on conventions. Presidential removal of Governor for such conduct is legally possible but politically sensitive, risking accusations of central overreach. Way Forward Reform Measures Punchhi Commission recommended fixed tenure, consultative appointment, and non-partisan individuals as Governors to strengthen neutrality and federal trust. Codified guidelines on gubernatorial conduct can clarify limits of discretion and reduce recurrent constitutional confrontations. Strengthening conventions of dialogue between Chief Minister and Governor can resolve disagreements privately, preserving dignity of institutions. Dilution of Environmental Justice in India  Context and Core Concern Emerging Trend Recent policy and judicial trends indicate systematic dilution of environmental safeguards, where development priorities increasingly override ecological concerns, raising questions about India’s constitutional commitment to environmental protection and intergenerational equity. Policy shift allowing EIA without prior site specificity (2025) weakens scientific appraisal, reducing ability to assess cumulative ecological impacts, carrying risks of arbitrary approvals and post-facto regularisation of damage. Relevance   GS-2 (Polity): Article 21, 48A, 51A(g), Article 14 — environmental rights and duties. Judiciary’s role in environmental protection. GS-3 (Environment): EIA, precautionary principle, polluter pays, public trust doctrine. Aravallis, mangroves, Himalayas — ecology & disaster risks. Practice Question   Environmental governance in India is witnessing a shift from precaution to post-facto regularisation.Critically examine in the light of constitutional provisions and recent trends. (15M) Constitutional Framework Article 21 — Right to Environment Supreme Court has consistently read right to clean and healthy environment into Article 21, making environmental protection integral to right to life, dignity, and public health. Diluting environmental safeguards indirectly compromises Article 21 by exposing citizens to pollution, ecological degradation, climate risks, and disaster vulnerability. Directive Principles Article 48A obligates State to protect and improve environment and safeguard forests and wildlife, forming constitutional foundation for environmental governance and policy restraint. Weak enforcement or dilution turns Article 48A into symbolic commitment rather than operational constitutional directive guiding state action. Fundamental Duty Article 51A(g) imposes duty on citizens to protect natural environment; however, citizen responsibility becomes ineffective if state policies themselves enable ecological degradation. Equality and Non-Arbitrariness Height-based Aravalli definition creates artificial classification lacking ecological rationale, potentially violating Article 14’s non-arbitrariness and reasonable classification doctrine. Judicial Dimension Progressive Jurisprudence (Past) In Vellore Citizens Welfare Forum (1996), SC adopted precautionary principle and polluter pays principle, embedding sustainability into Indian environmental jurisprudence. M.C. Mehta cases recognised ecological fragility of Aravallis and imposed mining restrictions, showing earlier judicial leadership in conservation. Public Trust Doctrine (M.C. Mehta v. Kamal Nath, 1996) held natural resources are held in trust by State for public, limiting privatisation and ecological harm. Recent Judicial Leniency Recall of Vanashakti judgment (2025) and acceptance of post-facto or conditional clearances signal shift from deterrence to accommodation of violations. Acceptance of 100-metre Aravalli definition (2025) narrows legal protection, excluding ecologically linked low-altitude ridges critical for hydrology and biodiversity. Judicial approvals for mangrove destruction and infrastructure expansion reflect growing reliance on mitigation promises over strict compliance. Environmental and Scientific Concerns Aravallis Aravallis function as barrier against desertification, groundwater recharge zone, and biodiversity corridor, crucial for north-west India’s climate stability. Fragmented or height-centric definitions ignore geomorphological continuity and ecological interdependence, undermining landscape-level conservation. Mangroves Mangroves serve as carbon sinks, flood buffers, and biodiversity nurseries; mature ecosystems require decades to develop, making compensatory afforestation scientifically inadequate. Himalayas and Char Dham Himalayan ecosystems are geologically young and fragile; study identifying 811 landslide zones (2025) highlights disaster risks from large-scale road expansion. Governance and Procedural Justice Regulatory Weakening EIA dilution, shortened hearings, and checklist-style compliance reduce meaningful public participation and scientific scrutiny in decision-making. Procedural shortcuts erode transparency, accountability, and environmental democracy, weakening legitimacy of clearances. Corporate Influence Concerns Perception that large capital-backed projects navigate regulatory barriers easily raises concerns of regulatory capture and unequal application of law, affecting constitutional fairness. Ethical and Intergenerational Dimension Intergenerational Equity Environmental degradation imposes irreversible costs on future generations, conflicting with principle that present development must not compromise future ecological security. Constitutionally implied sustainability requires balancing economic growth with long-term ecological resilience. Challenges Structural Issues Developmental pressures, fiscal incentives, and political economy of infrastructure create bias toward project approvals over precaution. Courts face tension between economic growth imperatives and ecological jurisprudence, leading to inconsistent outcomes. Way Forward Reform Measures Strengthen independent, science-based EIA regime with cumulative impact assessments and credible public consultations. Institutionalise regular Green Benches in SC and HCs for specialised, consistent environmental adjudication. Reinforce application of precautionary principle, polluter pays, and public trust doctrine in all ecological matters. Promote development models integrating ecological economics, climate resilience, and natural capital accounting.

Daily Current Affairs

Current Affairs 06 February 2026

Content Illegal Coal Mining Tragedy in Meghalaya Cyberchondria and Health Misinformation Sodium-Ion Battery Technology Motion of Thanks in Parliament Artificial Intelligence Racing Ahead of Regulation India AI Stack Illegal Coal Mining Tragedy in Meghalaya Coal Mining in India  What is Coal Mining ? Coal mining is extraction of coal seams for energy and industry, conducted through open-cast or underground methods, regulated in India by central mining, labour, and environmental laws. Importance of Coal Coal remains India’s primary baseload energy source, supporting thermal power, steel production, and cement, making mining economically important but environmentally and socially sensitive. Relevance GS-1 (Geography & Society): Mineral geography of North-East, fragile hill ecosystems, human–environment interaction in mining regions. Vulnerability of migrant and informal labour in hazardous sectors. GS-3 (Economy, Environment, Disaster Management): Coal economy vs sustainability trade-offs. Environmental impacts: acid mine drainage, deforestation. Mine disasters and safety regulation. Rat-Hole Mining Definition Rat-hole mining involves digging narrow horizontal tunnels, often barely one metre high, where miners crawl to extract coal manually, common in Meghalaya’s hilly coal-bearing areas. Why Practised ? Practised due to thin coal seams, private land ownership patterns, low capital requirement, and quick returns, despite severe safety, health, and environmental risks. Legal Status NGT banned rat-hole mining in 2014, citing environmental damage and unsafe labour conditions, but illegal operations continue due to weak enforcement and local economic dependence. Geological and Regional Factors Meghalaya’s Coal Geology Meghalaya has tertiary coal deposits in fragmented seams within fragile hill ecosystems, making mechanised mining difficult and encouraging small, unsafe, manual extraction methods. Terrain Constraints Steep slopes, high rainfall, and loose soil increase risks of flooding, tunnel collapse, and landslides, turning unscientific mining sites into high-risk zones for workers. Safety and Labour Dimension Mine Safety Basics Scientific mining requires ventilation, structural supports, gas monitoring, and emergency exits, which are usually absent in illegal rat-hole mines, raising accident probability. Labour Profile Workers often include migrant and economically vulnerable populations, accepting hazardous conditions due to limited livelihood options and informal employment arrangements. Use of Explosives Use of dynamite or explosives in unregulated settings increases risks of blasts, toxic fumes, and tunnel instability, especially without certified handlers or safety protocols. Environmental Impacts Land and Forests Unregulated mining causes deforestation, soil erosion, and landscape degradation, permanently altering fragile hill ecosystems and reducing ecological stability. Water Pollution Coal mining generates acid mine drainage, contaminating rivers with heavy metals and acidity, harming aquatic life and affecting downstream communities’ water quality. Governance and Regulation Constitutional Position Mining and mineral development fall under Union regulation (MMDR Act), but land and local enforcement involve States, requiring coordinated governance for effective control. Enforcement Challenges Illegal mining persists due to monitoring gaps, local political economy, difficult terrain, and livelihood dependence, weakening regulatory effectiveness despite formal bans. Disaster Management Basics Response Framework Rescue operations involve State Disaster Response Force, police, and medical teams, focusing on evacuation, medical aid, and site stabilisation in hazardous underground conditions. Preventive Approach Prevention requires strict licensing, regular inspections, worker registration, and closure of illegal mines, alongside alternative livelihoods to reduce economic reliance on unsafe mining. Ethical and Developmental Angle Development vs Safety The tragedy highlights conflict between livelihood needs and human safety, where economic desperation often pushes workers into life-threatening informal sectors. State Responsibility Welfare state principles require government to ensure safe working conditions, environmental protection, and sustainable livelihoods, not merely post-disaster compensation. Cyberchondria and Health Misinformation  Context : Triggering Incident A filicide case in Bhilwara, Rajasthan, where a mother killed her children fearing terminal illness after consuming online medical misinformation, highlighted extreme consequences of unchecked digital health content. Broader Relevance With 1+ billion Internet subscriptions in India, social media has become a major health information source, raising concerns about misinformation-driven anxiety, self-diagnosis, and erosion of trust in medical systems. Relevance GS-2 (Governance & Social Sector): Public health communication, digital governance, platform regulation. Mental health as policy concern. GS-3 (Science & Tech): Algorithmic amplification, AI-driven recommendation systems. Digital literacy and misinformation. Cyberchondria Definition Cyberchondria refers to excessive, anxiety-driven online health searches where individuals repeatedly seek medical information online, leading to heightened fear of serious illness despite limited clinical evidence. Origin of Term The term combines “cyber” (digital space) and “hypochondria” (illness-anxiety disorder), indicating technology-amplified health anxiety rather than a new psychiatric disorder category. Clinical Nature Considered a behavioural and cognitive pattern linked to health anxiety, obsessive checking, and reassurance-seeking, sometimes overlapping with anxiety or obsessive-compulsive spectrum conditions. Hypochondria vs Cyberchondria Traditional Hypochondria Hypochondria involves persistent fear of illness despite medical reassurance, traditionally triggered by bodily sensations, media reports, or anecdotal experiences, even before the Internet era. Digital Amplification Cyberchondria intensifies these fears because search engines and social media provide vast, decontextualised medical information, often highlighting worst-case scenarios. How Algorithms Influence Health Anxiety ? Recommendation Systems Social media algorithms prioritise engagement-based content, promoting sensational or fear-inducing health videos because they generate longer watch time and user interaction. Personalisation Loops AI-driven feeds track pauses, clicks, and watch duration, then recommend similar content, creating echo chambers that repeatedly expose users to alarming medical claims. Engagement Bias Research shows misleading medical content often achieves higher engagement than accurate information, making algorithms unintentionally amplify misinformation. Medical Misinformation What is Medical Misinformation ? Medical misinformation is false, misleading, or unverified health-related information presented without scientific consensus, often simplified to appear authoritative or relatable. Source Patterns A large share of misleading health content is produced by non-professionals, influencers, or anecdotal storytellers rather than certified medical practitioners. Doctor–Patient Disconnect Limits of Online Diagnosis Online searches cannot replace clinical examination, patient history, and diagnostic testing, which doctors use to differentiate between common symptoms and serious disease. Anxiety Spiral Since many symptoms overlap across diseases, search results often highlight severe illnesses like cancer, triggering catastrophic thinking in vulnerable individuals. Psychological Dimension Conspiratorial Thinking When institutions like medicine feel like “black boxes,” people may turn to simplified or conspiratorial explanations, which provide psychological comfort and perceived control. Authority Bias People tend to trust information that appears authoritative online, even if credibility is weak, making them vulnerable to persuasive but inaccurate medical claims. Public Health and Governance Angle Digital Health Literacy Low health and digital literacy limits people’s ability to evaluate sources, understand probabilities, or distinguish correlation from causation in medical claims. Platform Responsibility Platforms have misinformation policies, but enforcement is inconsistent; algorithms are designed for engagement, not public health outcomes. Ethical and Social Angle Mental Health Impact Cyberchondria can increase anxiety, stress, unnecessary medical visits, and mistrust in doctors, burdening both individuals and healthcare systems. Family and Social Consequences Extreme anxiety-driven decisions can affect families and children, showing misinformation is not only informational risk but also a social and ethical concern. Preventive Understanding Responsible Health Seeking Verified medical sources, second opinions, and consultation with qualified doctors are essential to counterbalance algorithm-driven misinformation exposure. Role of Awareness Public awareness campaigns on digital health literacy and mental health can reduce vulnerability to misinformation-driven panic. Sodium-Ion Battery Technology Context Strategic Debate in India India is reassessing battery strategy due to import dependence and critical mineral risks in lithium-ion, with sodium-ion emerging as a viable alternative for energy storage and EV transition. Energy Transition Relevance As batteries underpin EVs, grid storage, and digital devices, technology choice directly affects India’s energy security, manufacturing self-reliance, and clean energy transition goals. Relevance GS-3 (Science & Tech, Economy, Environment): Energy storage innovation, battery chemistry. Critical minerals dependency and supply-chain resilience. Clean energy transition and EV ecosystem. Batteries What is a Battery ? A battery is an electrochemical device that stores energy through reversible chemical reactions, converting chemical energy into electrical energy via movement of ions between electrodes. Key Components Every battery contains anode, cathode, electrolyte, and current collectors, which together enable ion flow internally and electron flow through an external circuit. Lithium-Ion Batteries (Li-ion) Working Principle Lithium-ion batteries function by lithium ions shuttling between graphite anode and metal-oxide cathode, offering high energy density and long cycle life. Strengths High energy density, low self-discharge, and mature manufacturing ecosystem made Li-ion dominant in EVs and electronics globally. Structural Constraints Li-ion depends on lithium, cobalt, nickel, and graphite, minerals concentrated in few countries, creating supply, price, and geopolitical vulnerabilities. Sodium-Ion Batteries (Na-ion) What is Sodium-Ion Technology ? Sodium-ion batteries operate similarly to Li-ion but use sodium ions as charge carriers, with sodium sourced from abundant materials like soda ash and salt deposits. Material Advantage Sodium is abundant, geographically diversified, and low-cost, reducing critical mineral dependence and exposure to global commodity volatility. Current Collectors Na-ion uses aluminium for both electrodes, unlike Li-ion which needs copper on anode, lowering cost, weight, and corrosion-related risks. Energy Density Specific Energy (Wh/kg) Specific energy measures energy stored per unit mass; Na-ion is lower because sodium atoms are heavier than lithium, affecting weight-to-energy ratio. Practical Gap Performance gap narrows when cell design optimises other components’ weight, and some Na-ion chemistries approach lithium iron phosphate (LFP) levels. Safety Characteristics Thermal Stability Sodium-ion cells show lower peak temperatures during thermal runaway, reducing fire and explosion risks compared to conventional lithium-ion cells. Transport Safety Li-ion is classified as Dangerous Goods requiring charge limits during transport, while Na-ion can be stored at zero volts safely without degradation. Manufacturing Compatibility Production Lines Existing lithium-ion factories can be adapted for sodium-ion with minor changes, lowering capital barriers and enabling dual-chemistry production flexibility. Moisture Sensitivity Na-ion requires deeper vacuum drying during production because residual moisture affects performance more strongly than in lithium-ion cells. Global Industry Status Capacity Trends Around 70 GWh Na-ion capacity exists globally (2025), projected to reach nearly 400 GWh by 2030, indicating commercial-scale momentum. Cost Outlook Long-term projections indicate Na-ion could undercut Li-ion costs by 2035, especially for stationary storage and low-range mobility segments. Indian Policy Context PLI Scheme India’s PLI for Advanced Chemistry Cells (2021) allocated ~40 GWh capacity but is currently lithium-focused, with limited upstream mineral processing ecosystem. Import Dependence Limited domestic lithium reserves and refining capacity mean continued import reliance, increasing strategic vulnerability. Application Suitability Best Use Cases Sodium-ion suits grid storage, two- and three-wheelers, and stationary applications, where cost, safety, and cycle life matter more than ultra-high energy density. Strategic Significance for India Energy Security Sodium-based systems reduce reliance on imported critical minerals, strengthening long-term supply chain resilience. Industrial Opportunity Early adoption can help India build domestic battery manufacturing ecosystem, avoiding late-entry disadvantage seen in lithium-ion sector. Way Forward Policy Support Technology-neutral incentives, R&D funding, and standards recognition can support diversified battery ecosystem. Ecosystem Development Developing domestic materials, components, and recycling infrastructure is key for long-term sustainability. Motion of Thanks in Parliament  Context Recent Instance Lok Sabha passed the Motion of Thanks on the President’s Address amid Opposition protests and adjournments, with debate continuing despite Prime Minister’s absence during part of the discussion. Procedural Significance The episode renewed attention on parliamentary conventions, executive accountability, and rules governing the Motion of Thanks, a key constitutional practice in India’s Parliament. Relevance GS-2 (Polity): Article 87, parliamentary procedures, executive accountability. Role of Speaker, conventions vs rules, deliberative democracy. President’s Address — Constitutional Basis Article 87 Article 87 of the Constitution mandates the President to address both Houses at the first session after each general election and at the first session each year. Purpose of Address The address outlines the government’s policies, priorities, and legislative agenda, functioning as a statement of intent by the executive to Parliament. Motion of Thanks  What is Motion of Thanks ? Motion of Thanks is a formal parliamentary motion moved in each House to thank the President for the Address and discuss its contents. Nature of Discussion Debate allows MPs to critique government policies, omissions, and achievements, making it one of the widest-ranging discussions in Parliament. Procedural Features Moving and Seconding The motion is moved and seconded by ruling party MPs, after which members across parties participate in debate and propose amendments. Amendments MPs may move amendments highlighting policy failures or omissions; adoption of an amendment symbolically signals political disapproval of government. Prime Minister’s Reply Conventionally, the Prime Minister replies to the debate, addressing issues raised; this reply represents the government’s official response. Political and Constitutional Importance Confidence Dimension Though not formally a no-confidence motion, defeat of Motion of Thanks is seen as serious political setback indicating loss of majority support. Accountability Tool Provides early-session platform for executive accountability, allowing Parliament to review government’s agenda. Role of Speaker and House Discipline Speaker’s Authority Speaker regulates proceedings, maintains order, and may adjourn House during disorder, ensuring decorum under Rules of Procedure. Parliamentary Privilege Disruptions, slogan-shouting, or entering the Well of the House may be treated as breach of decorum and privilege, though political protests are common. Conventions vs Rules Conventions PM’s presence during debate and reply is a strong convention, but Constitution does not legally mandate continuous presence during entire discussion. Democratic Norms Parliamentary democracy relies on mutual respect, debate, and dissent, not only numerical majority. Comparative Perspective Westminster Model Motion of Thanks originates from British parliamentary practice, where monarch’s speech is similarly debated. Broader Democratic Significance Deliberative Democracy Motion of Thanks embodies deliberative democracy, enabling comprehensive policy review at start of parliamentary year. Opposition’s Role Opposition uses debate to highlight governance gaps and represent alternative viewpoints, strengthening democratic scrutiny. Artificial Intelligence Racing Ahead of Regulation Context  Global Governance Push The United Nations announced an Independent International Scientific Panel on AI to guide global governance, reflecting rising concern over AI’s cross-border risks and uneven national regulations. Technological Leap Simultaneously, emergence of bot-only platforms like Moltbook, where AI agents interact without humans, signals rapid evolution of autonomous digital ecosystems beyond traditional regulatory control. Relevance GS-3 (Science & Tech): AI governance, emerging tech regulation, AI agents, deepfakes. GS-2 (IR & Governance): UN-led global governance, multilateral norm-setting. Tech geopolitics and AI race. Artificial Intelligence   What is AI ? Artificial Intelligence refers to computer systems performing tasks requiring human intelligence, including learning, reasoning, language processing, perception, and decision-making. Core Subfields AI includes machine learning, deep learning, natural language processing, and computer vision, which enable pattern recognition and adaptive performance from data. AI Governance Meaning AI governance involves laws, policies, standards, and ethical norms guiding AI development and deployment to ensure safety, fairness, accountability, and transparency. Why Needed ? Because AI affects economies, elections, security, and rights, unregulated systems can produce large-scale societal harm or cross-border externalities. Global Governance Frameworks UN Role The UN acts as a multilateral platform for norm-setting, similar to climate or nuclear governance, aiming for shared principles rather than binding global AI laws. Pact for the Future The panel is mandated under the UN’s Pact for the Future, focusing on science-based advice for global public goods and emerging technologies. AI Race — Strategic Dimension Geopolitical Competition Countries view AI as strategic infrastructure influencing economic power, military capability, and technological leadership, intensifying global competition. Investment Surge Massive public and private investments in AI reflect its role in productivity growth, digital economy, and national security systems. Risks Associated with AI Misinformation Generative AI can create deepfakes, synthetic media, and automated propaganda, complicating information integrity and democratic processes. Labour Disruption Automation threatens routine cognitive and manual jobs, creating transitional unemployment and skill mismatches. Surveillance AI-powered analytics enable mass surveillance and profiling, raising civil liberty and privacy concerns. Bias and Ethics Algorithms trained on biased data can produce discriminatory outcomes, affecting fairness in hiring, lending, and policing. AI Agents — Basic Concept What are AI Agents ? AI agents are autonomous software entities capable of perceiving environments, making decisions, and performing tasks with minimal human intervention. Functional Scope They handle tasks like document drafting, data analysis, scheduling, and system coordination, increasingly acting as digital assistants. Bot-to-Bot Ecosystems Concept Bot-only platforms allow AI-to-AI communication, where agents post, evaluate, and respond to each other without human participation. Significance Such spaces test how AI systems behave collectively, raising questions about control, accountability, and emergent behaviours. Regulation vs Innovation Gap Pace Mismatch Technology evolves faster than law-making because policy processes require consensus, consultation, and legislative cycles, while AI innovation is market-driven and rapid. Jurisdiction Limits Digital systems operate across borders, making national regulations insufficient for global AI platforms. Ethical and Societal Dimension Human Oversight Ethical AI emphasises human-in-the-loop decision-making, ensuring accountability and value alignment. Digital Autonomy Risks Fully autonomous systems risk reduced human control and opaque decision chains, challenging traditional liability frameworks. Way Forward  Multi-Stakeholder Governance Effective governance requires cooperation among states, industry, academia, and civil society. Principle-Based Regulation Safety, transparency, accountability, and fairness can serve as core guiding principles even amid rapid innovation. India AI Stack  Context Policy Push India is advancing a population-scale AI Stack under the IndiaAI Mission, integrating data, models, compute, infrastructure, and energy to democratise AI and reduce dependence on foreign ecosystems. Development Significance The AI stack approach positions AI as public digital infrastructure, similar to Aadhaar or UPI, aiming to deliver inclusive, sovereign, and scalable AI-led development. Relevance GS-3 (Science & Tech, Economy): Digital public infrastructure, AI ecosystem, semiconductor push, compute capacity. AI for agriculture, health, governance. GS-2 (Governance): IndiaAI Mission, digital sovereignty, inclusive tech policy. AI Stack — Basic Concept What is an AI Stack ? An AI stack is the end-to-end ecosystem of technologies and infrastructure required to build, train, deploy, and scale AI applications from data collection to user delivery. Purpose It ensures AI systems are scalable, reliable, and deployable at population level, converting research innovations into real-world services across sectors. Layer 1 — Application Layer Meaning The application layer includes user-facing AI services such as chatbots, diagnostics tools, translation apps, and advisory platforms that convert AI capability into usable solutions. Agriculture Use AI advisories support crop planning, pest control, and input optimisation, with state deployments reporting productivity gains of 30–50%, improving farm incomes and resource efficiency. Healthcare Use AI supports early detection of TB, cancers, and neurological disorders, strengthening preventive healthcare and reducing diagnostic delays in resource-constrained regions. Education Use AI integration through NEP 2020, DIKSHA, and YUVAi promotes digital and AI literacy, preparing students for future technology-driven labour markets. Governance Use AI in e-Courts Phase III and IMD forecasting improves translation, case management, and disaster prediction, enhancing transparency and citizen service delivery. Layer 2 — AI Model Layer Meaning The model layer is the core intelligence layer, where algorithms learn patterns from data to generate predictions, language processing, recognition, and decision support. Sovereign Models India is developing indigenous foundation and multimodal models to ensure cultural, linguistic, and policy alignment rather than relying solely on foreign-trained models. IndiaAIKosh IndiaAIKosh hosts 5,700+ datasets and 250+ models, serving as national AI repository to support startups, research, and public-sector innovation. Language Inclusion Platforms like Bhashini and Sarvam AI strengthen Indian-language AI, enabling voice interfaces and multilingual governance services in a linguistically diverse country. Layer 3 — Compute Layer Meaning Compute layer provides high-performance processing power needed to train large AI models using GPUs, TPUs, and specialised AI chips. IndiaAI Compute The IndiaAI Compute Portal offers 38,000 GPUs and 1,050 TPUs at subsidised rates, lowering entry barriers for startups and academic institutions. Supercomputing Systems like PARAM Siddhi-AI and AIRAWAT support NLP, climate modelling, and drug discovery, strengthening domestic research capacity. Semiconductor Push The ₹76,000 crore Semiconductor Mission and indigenous processors like SHAKTI and VEGA aim to build long-term hardware self-reliance. Layer 4 — Data Centres & Networks Meaning This layer includes data centres, broadband, fibre networks, and 5G, enabling fast data transfer and reliable AI deployment. Connectivity Scale 5G covers 99.9% districts and 85% population, supporting real-time AI services and IoT-based applications. Data Centre Capacity India holds ~960 MW capacity (3% global share), projected to reach 9.2 GW by 2030, reflecting AI-driven infrastructure growth. Investment Momentum Large investments by global firms in Indian data centres strengthen digital sovereignty and domestic hosting of AI workloads. Layer 5 — Energy Layer Meaning AI systems require continuous, high-volume electricity, making energy reliability and affordability critical for AI scaling. Power Availability India’s installed capacity exceeds 500 GW, with energy shortages at only 0.03%, ensuring reliable power for data centres. Clean Energy Link Over 51% capacity from non-fossil sources aligns AI growth with climate commitments and sustainable development. Grid Stability Pumped storage and battery systems enhance grid flexibility, supporting AI centres operating alongside renewable energy variability. Strategic Significance Digital Sovereignty A domestic AI stack reduces reliance on foreign platforms, ensuring data control, regulatory alignment, and strategic autonomy. Inclusive Growth Population-scale AI enables targeted welfare delivery, productivity gains, and service efficiency, supporting inclusive development. Way Forward  Ecosystem Integration Success requires coordination across policy, research, industry, and energy sectors to prevent siloed AI growth. Responsible AI Ethical safeguards, data protection, and transparency are essential to maintain public trust and fairness in AI deployment.

Daily PIB Summaries

PIB Summaries 03 February 2026

Content Transforming India into a Global Biopharma Hub Survey on Migration 2026–27 Transforming India into a Global Biopharma Hub Why in News? — Budget 2026–27 Biopharma Push Union Budget 2026–27 launched Biopharma SHAKTI with ₹10,000 crore over five years to boost biologics–biosimilars ecosystem, marking shift from generics toward innovation-led, high-value pharmaceutical manufacturing and exports. Policy targets 5% global biopharma market share by integrating manufacturing scale, skilled workforce, clinical infrastructure, and regulatory reforms, projecting biopharma as engine for health security, technology leadership, and export competitiveness. Relevance GS III — Economy Industrial Policy: ₹10,000 cr Biopharma SHAKTI, PLI, Bulk Drug Parks. High-value Manufacturing & Exports: Target 5% global share. Import Substitution: Reduced biologics/API dependence. GS III — Science & Technology Biotech Innovation: Genome India, NBM, BIRAC ecosystem. R&D & Startups: Bio-incubators, tech transfers. IPR Issues: TRIPS vs affordability. Basics — Understanding Biopharma What is Biopharma? Biopharmaceuticals are medicines produced using living cells, microbes, or biological systems, including vaccines, monoclonal antibodies, gene therapies, recombinant proteins, modern insulin for targeted treatment of complex diseases. Unlike small-molecule drugs, biologics are structurally complex, R&D-intensive, temperature-sensitive, needing advanced bioprocessing, cold-chain logistics, and strict regulatory validation, creating high entry barriers but ensuring superior value addition. Global Context Global pharma industry valued around $1.1 trillion, with biologics as fastest-growing segment due to ageing populations, NCD rise, precision medicine demand, and vaccine innovations after COVID-19. Expiry of patents on blockbuster biologics fuels biosimilars market expansion; countries with regulatory credibility, scale manufacturing, and clinical ecosystems capture larger shares of global pharmaceutical value chains. Constitutional / Legal Dimensions Article 47 mandates State to improve public health; affordable biologics support access to advanced therapies for cancer, diabetes, autoimmune and rare diseases, aligning with Directive Principles. TRIPS-compliant IPR regime balances innovation incentives with public health; compulsory licensing remains legal safeguard ensuring affordability of life-saving biologics and vaccines during emergencies. Governance / Administrative Dimensions Proposal for 1,000+ accredited clinical trial sites expands ethical, quality-compliant research capacity, shortens trial timelines, and strengthens India’s position as global clinical research destination. Strengthening CDSCO with specialised scientific staff improves biologics evaluation, aligns approval timelines with global norms, and enhances regulatory credibility in export markets. Establishing 3 new NIPERs and upgrading 7 existing NIPERs addresses skilled manpower gaps in bioprocess engineering, regulatory science, and translational research. Economic Dimensions India ranks 3rd in pharma production by volume but 14th by value; biopharma push aims shifting toward high-margin, innovation-driven segments, boosting export earnings and technological depth. Domestic biologics manufacturing reduces import dependence on high-value therapies and APIs, improving supply-chain resilience, trade balance, and healthcare sovereignty. PLI, Bulk Drug Parks, and SPI schemes create ecosystem for scale manufacturing, common infrastructure, and WHO-GMP compliance, enabling MSME participation in complex biologics. Social / Ethical Dimensions Rising non-communicable diseases—diabetes, cancer, autoimmune disorders—raise biologics demand; domestic biosimilars improve affordability, equity, and financial risk protection in healthcare. Strong ethics oversight in trials ensures informed consent, patient safety, and data integrity, addressing past concerns and building international trust. Science–Tech / Innovation Dimensions National Biopharma Mission (₹1,500 crore) supports 101 projects, 150+ organisations, 30 MSMEs, generating 1,000+ jobs across vaccines, biosimilars, diagnostics, and devices. Genome India Programme sequencing 10,000 genomes enables precision medicine, predictive healthcare, and population-specific therapies, strengthening genomics-driven innovation. BioE3 Policy promotes biomanufacturing, Bio-AI hubs, and biofoundries across smart proteins, precision biotherapeutics, and climate-linked biotech. Data & Evidence BIRAC established 95 bio-incubation centres and supported nearly 1,000 innovators under BIG, strengthening startup pipeline from discovery to commercialisation. 7,000+ professionals trained in regulatory/IPR, 850+ IP filings, ~120 tech transfers reflect maturing innovation-commercialisation ecosystem. Clinical trials backed by 8 lakh volunteer database enable large-scale studies in oncology, diabetes, and rheumatology. Challenges / Criticisms High capital intensity and long gestation periods deter private investment; startups face funding gaps between research and commercialisation stages. Regulatory capacity constraints and coordination gaps risk approval delays and reputational issues in global markets. Continued reliance on imported high-end equipment and reagents limits true self-reliance. Persistent shortage of experts in bioprocessing and regulatory science shows academia–industry skill mismatch. Way Forward Create mission-mode biomanufacturing clusters integrating R&D, pilot plants, testing, and logistics to reduce entry barriers and accelerate scale-up. Implement single-window digital regulatory systems and harmonise with USFDA/EMA standards for predictability. Expand blended finance and sovereign biotech funds to bridge late-stage funding gaps. Promote global collaborations and vaccine diplomacy aligned with SDGs and health equity. Survey on Migration 2026–27 Why in News?  NSO under MoSPI will conduct Survey on Migration (July 2026–June 2027) to generate updated, nationwide evidence on rural–urban, inter-state, seasonal, and return migration for policy design. Latest comprehensive migration data currently rely on PLFS 2020–21; new survey fills post-pandemic data gaps amid rapid urbanisation, labour mobility, and informal sector shifts. Relevance GS I — Indian Society Urbanisation: Migration-led city expansion. Women & Society: 86.8% female marriage migration. Demographic shifts: Population redistribution. GS II — Polity & Governance / Social Justice Fundamental Rights: Article 19 mobility. Welfare Delivery: ONORC, portability gaps. Data Governance: NSO evidence-based policy. Basics — Migration in India What is Migration? Migration refers to movement of persons across regions for employment, marriage, education, displacement, or livelihood security, shaping labour markets, demographic patterns, and urbanisation trajectories. Includes intra-district, inter-district, and inter-state migration; may be temporary, seasonal, circular, or permanent, each having distinct socio-economic and policy implications. Current Statistical Picture PLFS 2020–21 estimated India’s overall migration rate at 28.9%, indicating that nearly one in three Indians is a migrant by last-residence criteria. Migration rate among males: 10.7% and females: 47.9%, showing strong gender asymmetry rooted in social norms, marriage systems, and labour participation differences. Constitutional / Legal Dimensions Article 19(1)(d) & (e) guarantee freedom to move and reside anywhere in India, forming constitutional basis for internal migration and labour mobility. Inter-State Migrant Workmen Act, 1979 and Code on Occupational Safety, Health and Working Conditions, 2020 aim to protect migrant workers’ wages, safety, and welfare. Migration-linked welfare portability aligns with One Nation One Ration Card (ONORC) ensuring food security for mobile populations. Governance / Administrative Dimensions New survey will capture data on reasons for migration, employment profiles, remittances, and return migration, enabling evidence-based urban planning and labour market policies. Reliable migration data improve targeting in housing, transportation, social security, and skill development, reducing exclusion errors in welfare delivery. Strengthens data-driven governance under Digital India and DBT ecosystem by mapping migrant vulnerabilities and service access gaps. Economic Dimensions Male migration largely employment-driven; 22.8% of male migrants move for jobs, supporting construction, manufacturing, and urban informal sectors critical to GDP growth. Migrant remittances sustain rural consumption, reduce poverty, and smooth income shocks, acting as informal social security for origin households. Labour mobility enhances factor reallocation efficiency, shifting surplus labour from low-productivity agriculture to higher-productivity urban sectors. Social / Ethical Dimensions 86.8% of female migration due to marriage reflects patriarchy-driven mobility rather than economic agency, masking true female labour migration in statistics. Migrants face vulnerabilities—informal housing, job insecurity, lack of identity portability, and social discrimination—raising concerns of dignity and urban inclusion. Seasonal and circular migrants often excluded from PDS, healthcare, and education benefits due to documentation and domicile barriers. Demographic / Urbanisation Link Migration accelerates urbanisation, with cities acting as growth poles; unmanaged influx leads to slums, congestion, and pressure on civic amenities. Young migrant workforce contributes to demographic dividend utilisation but requires skilling, housing, and social protection frameworks. Data & Evidence 28.9% migration rate (PLFS 2020–21) indicates scale of internal mobility in India’s development process. Gender gap—47.9% female vs 10.7% male—highlights social drivers dominating female mobility statistics. Employment-driven migration share among males at 22.8% underscores labour-market pull factors. Challenges / Criticisms Migration data historically underreported due to definitional issues, short reference periods, and invisibility of circular migrants. Policy fragmentation between Centre–States leads to weak portability of welfare and social security benefits. Urban governance often treats migrants as temporary, leading to exclusion from housing, healthcare, and political representation. Gender-blind data classification underestimates women’s economic migration and workforce participation. Way Forward Institutionalise periodic migration surveys synchronized with Census and PLFS for real-time labour mobility insights. Ensure universal portability of welfare—PDS, health insurance, social security—through national migrant databases and digital IDs. Promote migrant-inclusive urban planning with rental housing, hostels, and transit-oriented development. Recognise women’s economic migration explicitly to design gender-responsive skilling and employment policies.

Editorials/Opinions Analysis For UPSC 03 February 2026

Content Wetlands as a national public good Budget 2026–27 & Capex-led Growth Wetlands as a national public good Why in News — World Wetlands Day 2026 ? Global & Indian Context World Wetlands Day 2026 themed “Wetlands and traditional knowledge” highlights community-led conservation; relevant for India where cultural practices historically sustained tanks, floodplains, mangroves, and village ponds. Theme gains relevance amid rapid wetland loss, climate risks, and water stress, positioning wetlands as nature-based solutions for water security, disaster resilience, biodiversity conservation, and livelihood sustainability. Relevance GS I — Geography & Society Wetlands regulate floods, groundwater, and microclimate, making them critical for questions on Indian physical geography, resource distribution, and human–environment interaction. Community-managed tanks, fisheries, and cultural linkages help enrich answers on society–environment relations and traditional knowledge systems. GS III — Environment & Disaster Management Wetlands as nature-based solutions for floods, droughts, and climate adaptation directly relevant for environment, conservation, and disaster-risk-reduction themes. Links to biodiversity conservation, pollution control, and sustainable development. Practice Question “Wetlands are ecological assets but governance liabilities.” Examine with reference to India’s conservation framework and discuss the role of traditional knowledge in wetland conservation in India.(250 Words) Basics — Understanding Wetlands Definition & Types Wetlands are ecosystems where land remains saturated with water seasonally or permanently, including marshes, lakes, mangroves, floodplains, lagoons, and human-made tanks supporting rich biodiversity and hydrological functions. India hosts diverse wetlands—freshwater, coastal, riparian, urban, and high-altitude systems—providing ecological services across climatic zones, from Himalayas to coastal deltas. Ecological Functions Wetlands regulate hydrological cycles by storing floodwater, recharging groundwater, filtering pollutants, stabilising shorelines, and moderating microclimates, making them critical natural infrastructure for climate adaptation. They serve as biodiversity hotspots supporting fish, migratory birds, amphibians, and aquatic flora, contributing to food security, nutrient cycling, and genetic diversity conservation. Traditional Knowledge & Community Linkages Indigenous Systems Tamil Nadu’s kulam tank cascades historically ensured irrigation, groundwater recharge, and drought resilience through community maintenance, illustrating decentralised water governance embedded within local ecological knowledge. Kerala’s kenis in Wayanad, over two centuries old, demonstrate sustainable groundwater access systems supporting drinking needs, rituals, and cultural continuity without ecological over-extraction. Andhra Pradesh’s wetland-linked fishing traditions show how livelihoods evolved in harmony with seasonal hydrology, sustaining both income and aquatic biodiversity through customary norms and community regulation. Cultural–Economic Value Wetlands function simultaneously as ecology, economy, and heritage, supporting agriculture, fisheries, fodder, and crafts while reinforcing cultural identity and social cohesion in rural landscapes. Policy & Legal Framework Regulatory Architecture Wetlands (Conservation and Management) Rules, 2017 provide identification, notification, and regulation mechanisms restricting reclamation, pollution, and encroachment through State Wetland Authorities. NPCA guidelines promote science-based planning, monitoring, and outcome-oriented management, integrating ecological restoration with livelihood considerations. Coastal Regulation Zone (CRZ) norms safeguard coastal wetlands like mangroves and lagoons by regulating development and maintaining ecological buffers. India’s 98 Ramsar Sites entail global recognition and obligations for “wise use,” ecological character maintenance, and periodic reporting. Data & Evidence Status Trends Nearly 40% of India’s wetlands lost in three decades due to urbanisation, infrastructure, and land conversion, indicating large-scale ecological transformation. Around 50% of remaining wetlands show degradation from pollution, altered hydrology, and encroachments, reducing ecosystem service delivery. Key Challenges Land & Hydrology Pressures Encroachment, real estate expansion, and road networks convert wetlands into built-up areas, while outdated cadastral maps obscure original wetland boundaries and legal status. Dams, embankments, channelisation, sand mining, and groundwater overuse disrupt natural flow regimes, undermining wetland hydrology and ecological character. Pollution & Climate Risks Untreated sewage, industrial effluents, agricultural runoff, and solid waste cause eutrophication, biodiversity collapse, and loss of flood-buffering capacity. Coastal wetlands face combined stress from sea-level rise, cyclones, tourism, ports, and aquaculture, limiting natural inland migration space. Institutional Constraints State Wetland Authorities often face staffing, funding, and skill shortages in hydrology, GIS, ecology, and legal enforcement, weakening implementation quality. Governance Gaps Implementation Deficit India’s challenge lies less in legal absence and more in weak enforcement, fragmented coordination, and project-driven approaches rather than long-term ecosystem management programmes. Departmental silos prevent watershed-scale governance, ignoring ecological connectivity between wetlands, rivers, and catchments. Way Forward Regulatory & Planning Measures Ensure clear notification and demarcation with public maps, participatory ground-truthing, and grievance mechanisms to reduce disputes and encroachments. Integrate wetlands into basin-scale planning by restoring feeder channels, regulating extraction, and protecting catchments. Pollution & Urban Management Treat wastewater before discharge; wetlands should not replace sewage plants. Constructed wetlands may complement but not substitute primary treatment. Recognise urban wetlands as flood buffers and blue-green infrastructure in city master plans. Capacity & Technology Launch a national capacity mission for wetland managers in hydrology, restoration ecology, GIS, and community governance. Use remote sensing, drones, and time-series analytics for real-time monitoring of encroachment and vegetation changes. Community & Knowledge Integration Combine traditional ecological knowledge with modern science to enhance compliance, restoration success, and local stewardship. RAMSAR SITES IN INDIA Total: 98 Sites | 13.6 lakh+ hectares Andhra Pradesh (1) • Kolleru Lake Assam (1) • Deepor Beel Bihar (6) • Gogabeel Lake • Gokul Reservoir • Kanwar Lake (Asia’s largest oxbow lake) • Nagi Bird Sanctuary • Nakti Lake • Udaypur Lake Chhattisgarh (1) • Kopra Reservoir Goa (1) • Nanda Lake Gujarat (5) • Chhari-Dhand • Khijadiya • Nalsarovar (largest wetland bird sanctuary in Gujarat) • Thol Lake • Wadhvana Wetland Haryana (2) • Sultanpur National Park • Bhindawas Wildlife Sanctuary Himachal Pradesh (3) • Chandra Taal (high-altitude lake) • Pong Dam Lake • Renuka Lake Jammu & Kashmir (5) • Hokersar Wetland • Hygam Wetland • Shallabugh Wetland • Mansar–Surinsar • Wular Lake (one of India’s largest freshwater lakes) Jharkhand (1) • Udhwa Lake Karnataka (4) • Ranganathittu Bird Sanctuary • Ankasamudra Bird Conservation Reserve • Aghanashini Estuary (free-flowing river estuary – rare case) • Magadi Kere Conservation Reserve Kerala (3) • Ashtamudi Wetland • Sasthamkotta Lake (largest freshwater lake in Kerala) • Vembanad-Kol Wetland Ladakh (2) • Tso Kar • Tsomoriri (high-altitude Ramsar sites – climate sensitive) Madhya Pradesh (5) • Bhoj Wetland • Sakhya Sagar • Sirpur Lake • Yashwant Sagar • Tawa Reservoir Maharashtra (3) • Lonar Lake (meteorite crater lake – geology favourite) • Nandur Madhameshwar • Thane Creek (urban wetland example) Manipur (1) • Loktak Lake (phumdis – floating vegetation concept) Mizoram (1) • Pala Wetland Odisha (6) • Ansupa Lake • Bhitarkanika Mangroves • Chilika Lake (India’s largest brackish lagoon) • Hirakud Reservoir • Satkosia Gorge • Tampara Lake Punjab (6) • Beas Conservation Reserve • Harike Wetland • Kanjli Wetland • Keshopur-Miani Community Reserve • Nangal Wildlife Sanctuary • Ropar Wetland Rajasthan (5) • Keoladeo National Park (UNESCO site) • Sambhar Lake (largest inland salt lake) • Khichan Wetland • Menar Wetland Complex • Siliserh Lake Sikkim (1) • Khecheopalri Wetland (sacred lake) Tamil Nadu (20) • Chitrangudi Bird Sanctuary • Gulf of Mannar Marine Biosphere Reserve (marine Ramsar – rare) • Kanjirankulam • Karaivetti • Karikili • Koonthankulam • Longwood Shola • Pallikarnai Marsh (urban wetland example) • Pichavaram Mangrove • Point Calimere • Suchindram-Theroor Complex • Udhayamarthandapuram • Vadavur • Vedanthangal (oldest bird sanctuary in India) • Vellode • Vembannur Complex • Nanjarayan • Kazhuveli • Sakkarakottai • Therthangal Tripura (1) • Rudrasagar Lake Uttar Pradesh (11) • Patna Bird Sanctuary • Bakhira Sanctuary • Haiderpur Wetland • Nawabganj • Parvati Arga • Saman • Samaspur • Sandi • Sarsai Nawar • Sur Sarovar • Upper Ganga River (riverine Ramsar site – rare category) Uttarakhand (1) • Asan Barrage West Bengal (2) • East Kolkata Wetlands (sewage-fed aquaculture model – case study) • Sundarban Wetland (mangrove ecosystem) Budget 2026–27 & Capex-led Growth Why in News ? Fiscal Signal Budget 2026–27 guides fiscal deficit to 4.3% of GDP and raises public capex to ₹12.2 lakh crore, signalling shift from pandemic relief to infrastructure-led, borrowing-supported growth strategy. Capex and MSME support now framed as structural growth pillars rather than temporary stimulus, aligning with long-term vision of Viksit Bharat and productivity-led expansion. Relevance GS III — Indian Economy Capex-led growth model directly fits topics of fiscal policy, public expenditure, growth strategy, and infrastructure financing. Employment elasticity and jobless growth are core to questions on inclusive growth and labour markets. GS II — Governance Fiscal prioritisation shows policy trade-offs between growth, welfare, and employment—useful for governance and policy-design answers. Practice Question What is employment elasticity? Discuss its relevance in evaluating growth quality.(250 Words) Basics — Capex-led Growth Model What is Capital Expenditure (Capex)? Capex refers to government spending on asset creation—roads, railways, logistics, energy, digital infrastructure—that enhances long-term productive capacity instead of short-term consumption support. Theoretical rationale: capex crowds in private investment, raises productivity, and generates jobs through multiplier effects across construction, manufacturing, and services. Post-Pandemic Fiscal Shift Since 2020–21, capex moved from counter-cyclical tool to core fiscal doctrine, becoming primary driver of growth, even during periods of fiscal consolidation. Capex share in total expenditure rose from ~12% (2020–21) to over 22% recently, indicating structural reorientation toward asset-led growth. Economic Analysis — Growth vs Employment Labour Market Disconnect Despite capex surge, youth NEET rate (15–29 years) remains 23–25%, meaning nearly one-fourth of youth are outside education, employment, or training. Indicates weak labour absorption even as GDP and capital formation accelerate, pointing to a jobless or job-light growth pattern. Employment Elasticity Trends Construction elasticity fell from 0.59 (2011–20) to 0.42 (2021–24), implying each rupee of infrastructure now generates fewer jobs than before. Agriculture elasticity rose from 0.04 to 1.51, showing labour returning to low-productivity farming instead of exiting it—sign of distress-driven fallback. Structural Issues Capital Intensity Bias Current capex configuration favours capital-intensive sectors, where productivity rises but labour demand grows slowly, weakening employment multipliers. Gap between net value added per worker and wages shows productivity gains captured more as profits than labour income. Industrial Structure Constraints Annual Survey of Industries shows most factories employ under 100 workers; small firms dominate numerically but contribute limited output and struggle to scale. Large firms capture value from new infrastructure networks but remain labour-light and automation-driven. Dual Economy Concern Emerging Pattern Economy exhibits dualism: a capital-intensive formal sector driving GDP growth alongside a large informal sector absorbing surplus labour with low productivity. Informality, self-employment, and disguised agricultural labour act as buffers for inadequate formal job creation. Governance & Policy Perspective Fiscal Doctrine Shift Employment increasingly treated as by-product of growth rather than explicit policy target, reflecting prioritisation of macro-stability and capital formation. Inclusion depends on skills, urban location, and automation compatibility, marginalising low-skilled labour. Data & Evidence Key Numbers Fiscal deficit target: 4.3% of GDP. Public capex: ₹12.2 lakh crore. Capex share: ~12% → 22% of expenditure. Youth NEET: 23–25%. Construction elasticity: 0.59 → 0.42. Agriculture elasticity: 0.04 → 1.51. Challenges Development Risks Persistent jobless growth risks demographic dividend turning into demographic burden. Wage stagnation may suppress consumption demand, weakening long-term growth sustainability. Labour displacement into informality reduces tax base and social security coverage. Way Forward Policy Corrections Complement capex with labour-intensive manufacturing push—textiles, food processing, electronics assembly. Align industrial policy with employment-linked incentives, not just production-linked incentives. Expand skilling aligned to infra, green jobs, and local manufacturing clusters. Strengthen MSME formalisation, credit access, and technology adoption.

Daily Current Affairs

Current Affairs 03 February 2026

Content 16th Finance Commission & Urban Grants Why are Tribals Protesting in Maharashtra? IIT Council & Adaptive JEE DAY-NRLM at Crossroads (2026–31 Cycle) Mountain Gorilla Conservation & One Health Model 16th Finance Commission on Exit Clauses 16th Finance Commission & Urban Grants Fiscal Federal Context 16th Finance Commission (FC) report tabled in Lok Sabha sets tax devolution and local body grants framework, signalling stronger fiscal recognition of urbanisation, municipal finance needs, and decentralised service delivery. Commission recommended ₹3.5 lakh crore for Urban Local Governments (ULGs) over five years, reflecting unprecedented scale-up in urban fiscal support amid rapid urbanisation and infrastructure stress. Relevance GS II — Polity & Governance Finance Commission (Article 280), fiscal federalism, Centre–State–ULB relations. Urban governance, decentralisation, and municipal finance reforms. GS III — Economy Urban infrastructure financing, municipal bonds, property tax reforms. Public expenditure quality and local fiscal capacity. Background — Finance Commission & Urbanisation Role of Finance Commission Finance Commission, under Article 280, recommends vertical and horizontal devolution, including grants to local bodies to strengthen fiscal capacity and cooperative federalism. Urban grants aim to improve first-mile infrastructure, service delivery, and municipal governance in water, sanitation, mobility, and local public goods. Urbanisation Context India’s urban population projected near 40% by 2036, increasing pressure on urban infrastructure, housing, and services, necessitating stronger municipal finances. Key Recommendations — 16th FC Quantum of Allocation Recommended ₹3.5 lakh crore to ULGs for five years, roughly matching Centre’s share in centrally sponsored urban schemes over previous 13 years combined (Janaagraha analysis). Marks 230% increase over 15th FC allocation of ₹1.5 lakh crore (2021–26), signalling major fiscal shift toward urban governance. Share in Local Body Grants ULGs’ share in total local government grants raised to 45% from 36% earlier, indicating prioritisation of urban governance alongside Panchayati Raj Institutions. Urbanisation Premium Grant Introduced ₹10,000 crore urbanisation premium grant to incentivise planned rural–urban transition, supporting emerging towns facing demographic and economic transformation pressures. Grant Design & Structure Basic vs Tied Grants Over 60% grants categorised as basic grants; tied components target core services like water supply and sanitation, ensuring minimum service standards. Untied grants allow location-specific spending flexibility, excluding salary and establishment costs, promoting local prioritisation and accountability. State-wise Trends Distribution Patterns Kerala recorded >400% increase in allocation, reflecting demographic and urban governance indicators; suggests performance-sensitive distribution. Himachal Pradesh saw ~50% decline, possibly linked to lower urbanisation levels or revised formula weights. Economic & Governance Significance Strengthening Municipal Capacity Enhanced grants can reduce ULG dependence on State transfers, enabling better own-source revenue leverage, creditworthiness, and municipal bond potential. Supports decentralised delivery of public goods, improving urban productivity, livability, and economic competitiveness. Urban Transition Support Urbanisation premium recognises migration-driven town growth, helping finance infrastructure in peri-urban and census towns lacking formal governance capacity. Data & Evidence Key Figures ₹3.5 lakh crore recommended for ULGs. 230% rise from previous cycle. 45% share of local body grants to ULGs. ₹10,000 crore urbanisation premium. >60% basic grants structure. Challenges & Concerns Implementation Risks Weak municipal capacity, staffing gaps, and planning deficits may limit effective utilisation of larger grants. Persistent low property tax collection efficiency constrains fiscal sustainability despite higher transfers. Risk of grant dependency without parallel reforms in revenue mobilisation and governance. Way Forward Reform Priorities Link grants with municipal finance reforms, digital property tax systems, and user-charge rationalisation. Strengthen urban planning, GIS-based asset mapping, and participatory budgeting. Encourage municipal bonds and credit ratings for large cities. Why are tribals protesting in Maharashtra? Why in News ? Immediate Context Thousands of tribals from Palghar and Nashik undertook long marches in January 2026 demanding land titles, irrigation support, and livelihood security, over pending forest rights. Protests gained traction as both districts have high tribal populations and long-standing grievances over land ownership recognition and welfare access. Relevance GS II — Polity & Social Justice FRA 2006, PESA 1996, Fifth Schedule — tribal rights and governance. Welfare delivery, land rights, and inclusion of STs. GS III — Environment Forest governance, conservation vs livelihood debate. Community-based natural resource management. Background — Tribal Land & Forest Rights  Constitutional Foundation Fifth Schedule mandates protection of tribal land and self-governance in Scheduled Areas, recognising historical injustice and need for cultural–economic safeguards. Article 244 provides administrative framework for Scheduled Areas, while PESA Act 1996 empowers Gram Sabhas over natural resource management. Forest Rights Act (FRA), 2006 FRA recognises Individual Forest Rights (IFR), Community Forest Rights (CFR), and habitat rights of Scheduled Tribes and Other Traditional Forest Dwellers. Objective is to correct historical injustice caused by colonial forest laws that alienated tribals from customary lands. Core Issues Behind Protests Land Title Concerns Tribals allege that titles issued contain incorrect formats, joint listings, or partial land recognition, restricting access to credit, schemes, and legal security. Many cultivators received titles for only fraction of land actually tilled, creating livelihood uncertainty. High Rejection Rates Over 45% FRA claims rejected in Maharashtra, raising concerns about verification processes and interpretation standards. Out of 3,80,966 disposed claims, only 2,08,335 titles granted while 1,72,631 rejected, indicating significant exclusion. Digitisation & Record Gaps Digitisation of land records reportedly caused mismatches between ground reality and official data, leading to claim denials and procedural delays. Livelihood & Development Demands Irrigation & Agriculture Protestors demand small dams and river-linking to divert west-flowing rivers for irrigating drought-prone eastern belts, enabling multi-cropping and income stability. Irrigation seen as critical for reducing dependence on rain-fed farming and seasonal migration. Employment & Education Secure land rights linked to eligibility for institutional loans, schemes, and education benefits, making FRA implementation central to socio-economic mobility. Governance & Policy Dimension Implementation Deficit FRA implementation varies across States due to bureaucratic caution, forest department resistance, and differing interpretations of eligibility criteria. Gap exists between legal recognition and ground-level enforcement. Ideological Tension Ecologist Madhav Gadgil noted tension between fortress conservation model and FRA’s community-based conservation vision. Debate framed as “conservation versus forest rights” reflects policy mindset conflict. IIT Council & Adaptive JEE Immediate Context IIT Council recommended exploring adaptive testing for JEE-Advanced to create a “better and less stressful assessment,” marking potential shift from uniform linear exams to technology-driven evaluation. Proposal includes a two-year transition (2026–2028) with optional adaptive mock tests from 2026 for calibration and familiarity. Relevance GS II — Governance & Education Education reforms, exam governance, transparency. Article 14 and equality in public examinations. GS III — Science & Tech AI/data-driven testing, digital governance. EdTech and assessment reforms. Background — Competitive Exams in India Linear Examination Model Traditional exams use identical question papers for all candidates, ranking based on correct responses, often encouraging rote learning and coaching-oriented test-cracking strategies. High-stakes nature means even marginal score differences shape career trajectories, intensifying exam pressure. Need for Reform Concerns over exam stress, memorisation culture, and inequitable assessment of conceptual ability have pushed policymakers toward assessment reforms focusing on aptitude and reasoning. What is Adaptive Testing? Concept & Mechanism Adaptive testing uses Item Response Theory (IRT) where computer algorithms select questions based on candidate performance, dynamically adjusting difficulty after each response. Test usually begins with medium-difficulty items; correct answers lead to harder questions, incorrect ones to easier items, refining ability estimates iteratively. Assessment Logic Goal is precise ability measurement using fewer but better-targeted questions, reducing fatigue while improving psychometric accuracy. Candidates may face different questions yet remain comparable on a common ability scale. Advantages of Adaptive Testing Pedagogical Gains Rewards conceptual clarity since only strong candidates progress to high-difficulty, high-weightage questions, discouraging superficial preparation strategies. Reduces random guessing and score inflation, improving validity of merit ranking. Efficiency & Fairness Shorter tests with equal reliability lower candidate stress and logistical burdens. Fairness embedded in design as difficulty adapts to individual performance rather than post-test normalisation. Widely used globally for over 25 years in exams like GRE and GMAT. Legal & Constitutional Concerns Equality Debate Under Article 14, equality often equated with identical question papers; adaptive testing’s varied questions may face judicial scrutiny. Fairness must be demonstrated through transparent scaling and scientific validation. Algorithmic Transparency Algorithm opacity could trigger bias or discrimination claims unless supported by equity audits and disclosures. Robust grievance redressal needed to reduce litigation risk. Operational Challenges Infrastructure Risks Requires reliable digital infrastructure, especially in tier-2/3 cities, as glitches could be challenged as maladministration. Data centre reliability, secure proctoring, and incident handling must exceed current standards. Question Bank Development Needs large, calibrated item banks with difficulty indexing, syllabus coverage, and leakage-proof pretesting—technically and administratively demanding. Transition Strategy Phased Rollout Proposed two-year transition includes optional adaptive mock tests to familiarise students and refine item calibration. Gradual implementation helps build stakeholder trust and reduce resistance. Learning from Global Practice GRE and GMAT experiences show acceptance improves with transparency, technical documentation, and consistent communication. Broader Significance Education Reform Lens Reflects shift toward competency-based assessment aligned with NEP 2020 emphasis on critical thinking over rote learning. Signals growing role of data science and AI in public examinations. Safeguards Establish independent psychometric audits and publish methodology summaries. Ensure multilingual interface parity and accessibility. Strengthen legal frameworks and grievance mechanisms before full adoption. DAY-NRLM at Crossroads (2026–31 Cycle) Current Context DAY-NRLM is due for appraisal for the 2026–27 to 2030–31 cycle, prompting review of strategy to deepen women’s livelihoods, enterprise growth, and institutional sustainability. Programme recognised for mobilising women-led collectives and financial inclusion, but next phase demands institutional strengthening and market integration. Relevance GS II — Social Justice SHGs, women empowerment, poverty alleviation. DBT delivery and grassroots institutions. GS III — Economy Financial inclusion, rural entrepreneurship, microfinance. Livelihood diversification and credit systems. Background — DAY-NRLM   What is DAY-NRLM? Deendayal Antyodaya Yojana–NRLM, under Ministry of Rural Development, aims to reduce rural poverty through SHG-based mobilisation, financial inclusion, and livelihood promotion of poor households, especially women. Focuses on social mobilisation, capacity building, credit access, and enterprise promotion using community institutions. Institutional Architecture Built on three-tier structure: Self-Help Groups (SHGs) → Village Organisations (VOs) → Cluster-Level Federations (CLFs) ensuring decentralised, community-driven governance. Scale & Achievements Mobilisation & Financial Inclusion Around 10 crore households mobilised into 91 lakh SHGs, federated into 5.35 lakh VOs and 33,558 CLFs, making it one of world’s largest women-led networks. SHGs mobilised ₹11 lakh crore bank credit with only ~1.7% NPA, indicating strong credit discipline. Women’s Economic Gains Lakhpati Didis exceed 2 crore, reflecting income enhancement and enterprise success among rural women. SHG participation linked to higher financial literacy and asset ownership. Political & Social Empowerment Women’s collectives increasingly influence local governance and DBT delivery, with States using SHG networks for schemes like Ladli Laxmi, Maiya Samman, Ladki Bahin. Core Concerns Weakening Autonomy of CLFs CLFs reportedly becoming subservient to government functionaries, limiting independent decision-making and diluting community ownership model. Contradicts original vision of self-managed community institutions. Idle Funds & Accountability Community institutions hold large capitalisation funds (reported ₹56.69 lakh crore), creating risks of idle funds and misuse without robust audits. Need for social and statutory audits to ensure transparency. Credit Constraints SHG members seek higher credit for scaling enterprises but lack individual credit histories and CIBIL scores, limiting access to formal loans. Financial & Institutional Gaps Uniform Loan Products Standardised loan tenures and rates ignore diversity in livelihoods, reducing financial efficiency and suitability for varied enterprises. Community-led credit decisions could improve outcomes. Limited Financing Models Heavy reliance on debt financing; limited use of equity, venture capital, and blended finance restricts enterprise scaling. Need for Convergence Siloed Implementation Livelihood schemes across departments operate in silos, reducing cumulative impact and causing duplication. Convergence often officer-driven and unsustainable. Institutional Solution Proposed Convergence Cell at NITI Aayog could streamline multi-ministry coordination and resource optimisation. Market Linkage Deficit Marketing Barriers Weak branding, packaging, pricing, and logistics limit SHG product competitiveness in markets. Absence of dedicated marketing vertical reduces visibility and scale. Proposed Solutions Dedicated national marketing vertical and State-level professional agencies could improve market access. Select CLFs as logistics hubs for aggregation and distribution. Way Forward Institutional Reforms Revitalise CLFs as community-owned institutions with autonomy and professional support. Strengthen audit systems and financial governance. Financial Deepening Develop customised financial products, generate CIBIL scores, and partner with SIDBI, NBFCs, and neobanks. Livelihood Planning Use Village Prosperity and Resilience Plans (VPRP) for annual livelihood planning and enterprise targeting. Broader Significance Inclusive Growth Lens DAY-NRLM supports SDGs on poverty reduction, gender equality, and decent work, making it central to inclusive rural transformation. Strengthened SHG ecosystems can drive rural entrepreneurship and local economic multipliers. Mountain Gorilla Current Event Global attention on Uganda’s mountain gorilla conservation due to recognition of Dr. Gladys Kalema-Zikusoka’s One Health model linking wildlife health, community health, and conservation success. Her decades-long work through Conservation Through Public Health (CTPH) is highlighted as a model for integrating conservation with livelihoods and disease prevention in biodiversity-rich developing countries. Relevance GS III — Environment Biodiversity conservation, flagship species, eco-tourism. One Health approach (human–animal–ecosystem link). GS II — Governance Community participation in conservation. Public health–environment interface. Why is it in News? Policy & Conservation Relevance Uganda’s mountain gorilla recovery showcases how community-based conservation, eco-tourism, and public health integration can revive critically endangered species even after political instability and poaching-driven collapse. Growing global focus on One Health, zoonotic disease risks, and human-wildlife coexistence makes Uganda’s gorilla model relevant for biodiversity policy and conservation governance debates. Mountain Gorillas   Species Basics Mountain gorilla (Gorilla beringei beringei) is a critically endangered great ape found only in Central Africa’s Bwindi and Virunga forests at elevations of 2,200–4,300 metres. Global population approximately ~1,000 individuals, making them among the rarest primates, with slow recovery due to low reproduction and high sensitivity to disturbance. Ecology & Behaviour Occupy dense montane and bamboo forests; primarily herbivorous, feeding on leaves, shoots, and stems, playing ecological roles in seed dispersal and forest regeneration. Long birth interval of 4–5 years limits rapid population growth, increasing vulnerability to poaching, habitat loss, and disease. Threats Major threats include habitat encroachment, poaching, civil conflict spillovers, and human-borne respiratory diseases due to close genetic similarity with humans. Historical poaching reduced Virunga population from 400–500 (1960s) to ~260–290 during political turmoil in the 1970s–80s. Conservation Significance Gorilla tourism generates revenue and incentives for protection, similar to tiger tourism in India, linking conservation with local livelihoods. Considered a flagship species for biodiversity conservation, eco-tourism, and One Health approaches. 16th Finance Commission on Exit Clauses Core Update The 16th Finance Commission (FC) has recommended “exit clauses” for cash transfer and subsidy schemes, urging States to avoid open-ended, unconditional freebies that strain fiscal sustainability and crowd out development spending. Comes amid a sharp rise in State-level Direct Benefit Transfers (DBTs) and subsidy schemes, especially ahead of elections, raising concerns about long-term fiscal health. Relevance GS II — Polity & Governance Fiscal federalism, welfare governance, subsidy design. Role of Finance Commission in fiscal discipline. GS III — Economy Freebies vs welfare debate, fiscal sustainability. FRBM, quality of public expenditure. Why is it in News? Fiscal Concern Several States have significantly increased cash transfer and subsidy outlays (2023–26 BE period), prompting the FC to caution against fiscally unsustainable welfare expansion without sunset or review mechanisms. The recommendation revives the debate on “freebies vs welfare”, fiscal discipline, and responsible public expenditure under competitive populism. Background — Finance Commission Constitutional Role Article 280 mandates the Finance Commission to recommend tax devolution and grants-in-aid, and increasingly to advise on fiscal sustainability and macro-stability. Though advisory, FC recommendations strongly influence Centre–State fiscal relations and budget priorities. Key Observations of the 16th FC Rise in Subsidy Burden States like Jharkhand, Odisha, and Madhya Pradesh have expanded DBTs and subsidies sharply, with some recording double-digit growth in cash support schemes. Such schemes risk creating structural revenue burdens rather than temporary social protection. Exit Clause Logic FC suggests schemes should include sunset clauses, periodic reviews, and outcome evaluation, ensuring they do not become permanent entitlements without fiscal space. Aims to shift focus from consumption subsidies to capital and human development spending. Economic Significance Fiscal Sustainability Rising revenue expenditure on transfers reduces fiscal room for capex, infrastructure, and growth-enhancing investments, potentially weakening long-term State finances. Persistent freebies can increase debt–GSDP ratios and interest burdens. Welfare Efficiency Well-designed welfare improves equity, but unconditional transfers without targeting or exit strategy may reduce efficiency and distort incentives. Governance Dimension Populism vs Responsibility Competitive populism among States risks a race-to-the-bottom fiscal strategy, undermining cooperative federalism and macroeconomic stability. FC stresses evidence-based welfare design, not politically driven expansion. Way Forward Reform Directions Introduce sunset clauses and beneficiary targeting. Link DBTs to human capital outcomes (health, education, skills). Strengthen fiscal responsibility frameworks at State level.

Daily PIB Summaries

PIB Summaries 02 February 2026

Content Budget push to make India a Global Bio pharma Hub(Union Budget 2026–27) Summary of Union Budget 2026–27 Budget push to make India a Global Biopharma Hub (Union Budget 2026–27) Context & Significance Union Budget 2026–27 positions biopharma as a strategic growth sector, aligning healthcare security with industrial policy, export competitiveness, employment generation, and Atmanirbhar Bharat in high-value pharmaceutical value chains. Global biologics market exceeds USD 450 billion and growing faster than small-molecule drugs; India’s timely policy push targets leadership in biosimilars, vaccines, cell-gene therapies, and complex biologics manufacturing. Relevance GS-2 (Polity & Governance): Public health policy, regulatory reforms (CDSCO), ethical clinical trials, Article 21. GS-3 (Economy): Pharma exports, high-value manufacturing, Atmanirbhar Bharat, industrial policy. Key Budget Announcements Biopharma SHAKTI Scheme Biopharma SHAKTI with ₹10,000 crore outlay over five years aims building domestic biologics and biosimilars ecosystem, strengthening upstream research, downstream processing, and integrated biomanufacturing clusters reducing import dependence. Scheme focuses on knowledge, technology, and innovation-led manufacturing, supporting pilot-scale facilities, translational research platforms, and industry partnerships, enabling Indian firms to move from generics dominance toward complex biologics leadership. Import substitution in monoclonal antibodies, recombinant proteins, and advanced biologics improves health security, reduces forex outgo, and stabilizes supply chains exposed during pandemics and geopolitical disruptions. Clinical Trial Ecosystem Expansion Creation of 1,000+ accredited clinical trial sites expands India’s research geography beyond metros, improves participant diversity, strengthens data reliability, and enhances India’s attractiveness for global multicentric trials. Faster recruitment, lower trial costs, and large treatment-naïve populations position India competitively against Eastern Europe, Latin America, and Southeast Asia in global clinical research outsourcing markets. Strengthened CDSCO with scientific review cadre targets globally comparable approval timelines, regulatory predictability, and compliance with ICH-GCP norms, improving investor confidence and international trial acceptability. NIPER Expansion Establishment of three new NIPERs and upgradation of seven existing institutes expands high-end pharmaceutical education capacity, fostering specialized talent in bioprocessing, pharmacovigilance, regulatory sciences, and biologics analytics. Industry–academia linkages through NIPERs support translational research, patent generation, and startup incubation, strengthening India’s innovation pipeline beyond contract manufacturing toward original biologic product development. Constitutional / Legal Dimension Advances Article 21 by improving access to life-saving biologics, and supports Directive Principles Articles 39(e), 41, 47 promoting public health, scientific advancement, and state responsibility toward healthcare improvement. Regulatory strengthening aligns with Drugs and Cosmetics Act framework and evolving bio-regulatory regimes, ensuring safety, efficacy, and ethical compliance in clinical trials and biologics manufacturing. Governance / Administrative Dimension Multi-ministerial coordination among Health, Pharmaceuticals, Biotechnology, and Commerce ministries required for cluster development, harmonized regulations, and faster clearances for biologics facilities and clinical research infrastructure. Accreditation-based trial ecosystem improves standardization, reduces ethical violations, and strengthens institutional review boards, addressing past criticisms regarding informed consent and participant protection. Economic Dimension Indian pharma industry already USD 50+ billion; moving into biologics with higher margins can boost exports, reduce reliance on low-margin generics, and support aspiration of USD 130 billion pharma market by 2030. Biologics manufacturing generates high-skilled employment in R&D, quality control, cold chain logistics, and regulatory affairs, creating knowledge-intensive jobs aligned with demographic dividend utilization. Social / Ethical Dimension Domestic biologics production can lower treatment costs for cancer, autoimmune, and rare diseases, improving affordability and equity in access, particularly where biologics currently remain prohibitively expensive. Strong ethical oversight needed for trials to protect vulnerable populations, ensure informed consent, fair compensation, and transparency, preventing exploitation concerns historically associated with clinical research outsourcing. Science–Tech / Security Dimension Investment in advanced biomanufacturing enhances strategic autonomy in vaccines, pandemic response, and biosecurity preparedness, reducing vulnerability to export restrictions or supply disruptions during global health emergencies. Promotes frontier technologies like cell-gene therapy, mRNA platforms, and precision biologics, positioning India within global innovation networks rather than remaining peripheral manufacturing base. Data & Evidence India supplies around 20% of global generics and 60% of global vaccines by volume, yet share in global biologics market remains limited, indicating significant untapped potential for value addition. Clinical trial costs in India estimated 30–50% lower than developed countries, offering cost advantage if regulatory credibility and ethical standards remain robust and internationally trusted. Challenges / Gaps / Criticisms Biologics require high capital investment, stringent quality systems, and cold-chain infrastructure; MSME pharma firms may struggle without targeted financing and technology transfer mechanisms. Regulatory capacity constraints, potential approval delays, and variability in ethics committee quality can undermine credibility if expansion of trials outpaces regulatory and monitoring capabilities. IPR complexities and patent thickets in biologics may restrict market entry; balancing TRIPS compliance with public health needs remains persistent policy challenge. Way Forward Develop dedicated biologics parks with shared facilities, plug-and-play infrastructure, and fiscal incentives, reducing entry barriers and achieving economies of scale in complex biomanufacturing. Strengthen regulatory science training, digitalize approval processes, and adopt risk-based inspections to ensure speed with safety, matching USFDA and EMA benchmarks. Promote public-funded translational research, sovereign biotech funds, and global collaborations to support indigenous innovation while integrating into global biologics value chains. Summary of Union Budget 2026–27 Context & Vision Union Budget 2026–27 framed around “Yuva Shakti” and three Kartavya pillars, balancing growth, inclusion, and capacity-building amid global trade fragmentation, supply-chain risks, and technology-driven economic restructuring. Budget situates India’s macro-strategy within Viksit Bharat trajectory, emphasizing competitiveness, resilience, and social justice, while integrating domestic reforms with deeper global market participation and long-term capital attraction. Relevance GS-3 (Economy): Fiscal deficit, public capex, MSMEs, manufacturing, logistics. GS-3 (Agriculture): AgriStack + AI, farmer advisory, risk reduction. Philosophical Framework – Three Kartavya Kartavya 1 – Accelerate & Sustain Growth Focus on productivity, competitiveness, and resilience through manufacturing scale-up, infrastructure push, energy security, MSME strengthening, and city economic regions leveraging agglomeration economies and cluster-based development models. Kartavya 2 – Fulfil Aspirations & Build Capacity Emphasis on human capital formation through education, skills, sports, tourism, and creative industries, recognizing demographic dividend requires employability, innovation capacity, and social mobility enhancement. Kartavya 3 – Sabka Sath, Sabka Vikas Targets inclusive development ensuring access to opportunities for regions, communities, farmers, women, Divyangjan, and vulnerable groups, aligning fiscal policy with distributive justice and cooperative federalism principles. Macroeconomic & Fiscal Architecture Fiscal deficit pegged at 4.3% of GDP (BE 2026–27), continuing consolidation path, signalling credibility to investors while attempting balance between fiscal prudence and growth-supportive expenditure. Debt-to-GDP ratio estimated 55.6%, marginally declining, indicating gradual debt sustainability strategy to reduce interest burden and create fiscal space for social and capital expenditure. Non-debt receipts estimated ₹36.5 lakh crore and total expenditure ₹53.5 lakh crore, reflecting expansionary yet calibrated fiscal stance prioritizing capital formation and growth multipliers. Public Capex & Infrastructure Push Public capex increased to ₹12.2 lakh crore from ₹11.2 lakh crore, reinforcing government’s capex-led growth model, crowding-in private investment and strengthening infrastructure-led multiplier effects. Seven high-speed rail corridors and dedicated freight corridors promote green mobility, logistics efficiency, and regional integration, reducing logistics cost—currently ~13–14% of GDP versus global benchmark ~8%. Operationalising 20 new National Waterways supports multimodal logistics, mineral evacuation, and low-carbon transport, complementing PM Gati Shakti and National Logistics Policy objectives. Manufacturing & Industrial Policy Scaling manufacturing in seven frontier sectors aligns with PLI logic, targeting value-chain integration, technology absorption, and export competitiveness amid global reconfiguration of supply chains. City Economic Regions (₹5,000 crore per CER over five years) institutionalize place-based development, encouraging metropolitan growth engines and coordinated urban-industrial planning. MSME & Enterprise Ecosystem ₹10,000 crore SME Growth Fund aims creating “Champion MSMEs,” supporting scaling, technology adoption, and export readiness, addressing MSMEs’ chronic credit and competitiveness constraints. Customs and e-commerce export reforms, including removal of ₹10 lakh courier export cap, integrate MSMEs into global digital trade ecosystems and cross-border value chains. Sectoral Growth Drivers Biopharma & Health ₹10,000 crore Biopharma SHAKTI, 3 new NIPERs, and 1,000+ clinical trial sites target biologics leadership, health security, and high-value pharma exports beyond generics dominance. Five Regional Medical Hubs and medical value tourism strengthen healthcare services exports, employment generation, and India’s positioning as global medical tourism hub. Textiles Integrated textile programme covering fibres, cluster modernization, sustainability, and skilling supports labour-intensive employment and export revival in a sector employing over 45 million people. Creative & AVGC Economy AVGC labs in 15,000 schools and 500 colleges build pipeline for sector projected to require 2 million professionals by 2030, supporting digital economy diversification. Sports Economy Khelo India Mission institutionalizes sports ecosystem with science, coaching, and leagues, linking sports with health outcomes, youth engagement, and global sporting competitiveness. Agriculture & Rural Transformation Bharat-VISTAAR AI integrates AgriStack and ICAR advisories, enabling precision agriculture, risk reduction, and data-driven farm decisions, supporting income stability and climate-smart agriculture. SHE Marts strengthen SHG-led rural enterprises, promoting women-led local value chains and inclusive rural non-farm growth. Social Sector & Inclusion Girls’ hostel in every district addresses gendered barriers in STEM education, improving female labour force participation and educational continuity. NIMHANS-2 and regional mental health institutes signal mainstreaming of mental health within public health architecture, addressing rising psychosocial stress burdens. Focus on Purvodaya and North-East through corridors, tourism, and e-buses promotes regional equity and balanced development. Direct Tax Reforms New Income Tax Act 2025 effective April 2026 simplifies compliance, reduces litigation, and improves taxpayer experience through redesigned forms and automated processes. Rationalization of penalty and prosecution, decriminalisation of minor defaults, and integrated assessment orders reflect trust-based tax administration shift. Reduced TCS on overseas tours and LRS education/medical remittances eases middle-class burdens and improves global mobility affordability. Corporate & International Tax Safe harbour margin 15.5% for IT services and higher threshold (₹2,000 crore) reduce transfer pricing disputes and enhance predictability for major export sector. Tax holiday for foreign cloud providers till 2047 and MAT exemption for presumptive non-residents aim positioning India as global data centre and digital services hub. Indirect Taxes & Customs Customs rationalisation supports domestic manufacturing, critical minerals processing, energy transition, aviation manufacturing, and nuclear sector development. Duty exemptions on lithium-ion, solar inputs, and critical minerals align with clean energy transition and strategic resource security. Tariff reduction on personal imports from 20% to 10% improves ease of living and reduces compliance burden for individuals. Ease of Doing Business Single digital window for cargo approvals, Customs Integrated System, AI-based risk assessment, and full container scanning reduce dwell time and logistics uncertainty. Warehouse operator-centric model with self-declarations and risk-based audits signals shift from control-based to trust-and-verify regulatory philosophy. Constitutional / Governance Lens Aligns with Directive Principles—Articles 38, 39, 41, 43, 47—promoting welfare state, livelihood, health, and equitable resource distribution through fiscal policy. Cooperative federalism reflected in state-supported hubs, CERs, and sectoral schemes requiring Centre–State convergence. Challenges / Criticisms High capex requires strong state capacity and timely project execution; historical delays can dilute multiplier effects and strain fiscal math. Tax incentives risk revenue foregone without guaranteed investment inflows; sunset clauses and outcome monitoring critical. Implementation complexity across multiple schemes may lead to fragmentation without strong coordination mechanisms. Way Forward Strengthen outcome-based budgeting, independent evaluation, and real-time dashboards to track scheme effectiveness and fiscal efficiency. Enhance state-level capacity and urban governance reforms to realize benefits of CERs, logistics corridors, and infrastructure investments. Balance tax incentives with revenue stability and ensure predictable policy regime to maintain investor confidence.

Editorials/Opinions Analysis For UPSC 02 February 2026

Content Pushing Welfare Towards the States – Social Sector Budget Shift What the New Fiscal Rule Means for Growth and Spending Pushing Welfare Towards the States – Social Sector Budget Shift Context & Core Thesis Budget 2026–27 consolidates shift of welfare responsibility from Union to States, with Centre setting norms while States increasingly finance and implement social protection and human development programmes. No new flagship welfare schemes signals fiscal tilt toward capex and supply-side growth, despite persistent challenges of malnutrition, unemployment, and social vulnerability. Relevance GS-2 (Polity & Governance) Fiscal federalism, Centre–State financial relations, CSS design, cooperative federalism, welfare delivery architecture, Directive Principles (Art 38, 39, 41, 45, 47). GS-2 (Social Justice) Welfare of vulnerable groups, nutrition, pensions, ICDS, PM POSHAN, social sector targeting and inclusion. Practice Question “The shift of welfare responsibility from the Union to the States has significant implications for equity and human development.”Discuss in the context of recent budgetary trends. (250 words) Social Sector Allocation Trends Stagnant Welfare Allocations Allocations for vulnerable groups rose only 0.2% (NSAP) to 5.2% (Saksham Anganwadi), implying real decline after inflation and expanding beneficiary base. RE 2025–26 < BE 2025–26 across schemes shows systemic underutilisation, delayed releases, and low prioritisation of welfare spending. Health & Education Spending Health and education allocations increased just 6.4% and 8.3%, inadequate against inflation, demographic growth, and pandemic-induced learning-health losses. RE shortfalls of 3.7% (health) and 5.2% (education) reflect inefficiencies in utilisation and weak human capital prioritisation. Major Scheme Contractions (Value-Addition Focus) Jal Jeevan Mission (JJM) cut from ₹67,000 crore (BE) to ₹17,000 crore (RE) risks slowing progress toward Har Ghar Jal and SDG-6 (clean water) targets. PMAY-Grameen reduced from ₹54,832 crore to ₹32,500 crore, and PMAY-Urban from ₹19,794 crore to ₹7,500 crore, affecting affordable housing and urban inclusion goals. PM POSHAN (Mid-Day Meal), Saksham Anganwadi, and SAMARTHYA maternity benefits remain low-funded despite India’s high child stunting and anaemia prevalence (NFHS-5). Centrally Sponsored Schemes (CSS) Underspending CSS outlay fell from ₹5.42 lakh crore (BE) to ₹4.20 lakh crore (RE), showing nearly ₹1.2 lakh crore underspending. BE 2026–27 at ₹5.49 lakh crore shows restoration on paper, but past trends question real absorptive and delivery capacity. Fiscal Federalism Shift Rising State Burden Schemes like VB-GRAM G use 60:40 cost-sharing, requiring States to mobilise ~₹56,000 crore alongside Centre’s ₹96,000 crore. Welfare delivery increasingly depends on State fiscal health, risking inter-state inequality in pensions, nutrition, and social security. Limited Fiscal Space for States States’ effective tax share only 34%, below 41% Finance Commission norm, due to rising cesses and surcharges outside divisible pool. Finance Commission grants declined from ₹1,32,767 crore to ₹1,29,397 crore, reducing untied fiscal support. Economic Implications Capex push of ₹12 lakh crore+ assumes job multipliers, yet India faces jobless growth, weak manufacturing absorption, and rising educated youth unemployment. Welfare spending supports consumption demand, critical when private investment and wage growth remain subdued. Social Justice Implications Underfunding nutrition, pensions, and childcare disproportionately impacts women, children, elderly, and disabled, weakening social safety nets. India still hosts one of the world’s largest undernourished populations (FAO estimates), making nutrition spending economically and morally critical. Constitutional Dimension Articles 38, 39, 41, 45, 47 obligate State to promote welfare, nutrition, and public health; declining real allocations dilute welfare-state commitments. Reflects tension between Keynesian welfare economics and fiscal conservatism. Key Challenges Persistent BE–RE gaps show weak planning realism and administrative capacity. State-heavy welfare model without fiscal empowerment risks uneven human development outcomes. Supply-side bias overlooks demand constraints in a slowing economy. Way Forward Increase untied tax devolution and rationalise cesses to restore fiscal federal balance. Adopt outcome-based budgeting linking funds to nutrition, health, and learning improvements. Treat welfare as human capital investment, not consumption, given links to productivity and demographic dividend. What the New Fiscal Rule Means for Growth and Spending Context & Fiscal Rule Shift Fiscal policy in FY27 guided by a “sound finance” rule, prioritising deficit and debt reduction, where borrowing targets shape expenditure decisions more than counter-cyclical growth considerations. India’s fiscal framework evolving from deficit-targeting (FRBM 2003) to debt-GDP targeting, making debt sustainability the primary fiscal anchor. Relevance GS-3 (Economy ) Fiscal policy, FRBM framework, debt sustainability, fiscal consolidation, capex-led growth strategy. GS-3 (Inclusive Growth) Distributional impact of fiscal consolidation, rural demand, agriculture expenditure. Practice Question “India’s new debt-focused fiscal rule improves macro-stability but may constrain inclusive growth.”Critically examine. (250 words) Nature of the New Fiscal Rule From Deficit Target to Debt Target Earlier FRBM rule focused on fiscal deficit-GDP ratio; new framework prioritises debt-GDP ratio as core policy target. Government aims to reduce debt-GDP to around 50% by 2031, compared to FRBM’s earlier normative level near 40%. Gradual Consolidation Path Fiscal deficit targeted to decline from 4.4% (FY26) to 4.3% (FY27), and primary deficit from 0.8% to 0.7%. Consolidation pace less severe than post-pandemic years, providing limited but real fiscal space. How Fiscal Targets Are Being Met ? Revenue Side Constraints Government’s non-debt receipts-GDP ratio falls from 9.5% (FY26) to 9.3% (FY27), reflecting slower tax buoyancy and moderation in GST/indirect tax shares. GST and indirect taxes both decline by 0.3 percentage points, limiting revenue-driven consolidation. Expenditure Compression Total expenditure-GDP ratio reduced from 13.9% to 13.6%, indicating consolidation largely expenditure-led. Capital expenditure-GDP stable at 3.1%, implying adjustment burden falls on revenue and development expenditure. Development Expenditure Cuts Social & Economic Services Development expenditure share declines from 6.1% to 5.7% of GDP, showing squeeze on welfare and productive sectors. Cuts concentrated in rural development and agriculture, with share falling from 1.5% to 1.2% of GDP. Rural Employment Impact Sharp reduction in revenue spending on rural employment reduces direct income support, weakening rural demand and consumption multipliers. Demand stimulus from lower indirect taxes offset by contraction in rural and agricultural spending. Growth Implications Capex-led strategy assumes high multiplier effects, but weak private investment response limits crowding-in benefits. Corporate investment-capital ratio remains subdued amid weak global demand and export slowdown. Reduced rural expenditure risks depressing aggregate demand in a consumption-driven economy. Distributional Concerns Fiscal consolidation burden disproportionately borne by development and agricultural sectors, affecting vulnerable populations. Corporate tax-GDP ratio largely unchanged from pre-COVID levels, suggesting limited burden-sharing from profitable sectors. Constitutional & Policy Lens Directive Principles (Articles 38, 39, 41) require equitable growth and livelihood support; expenditure compression in welfare raises normative concerns. Reflects policy trade-off between macroeconomic stability and inclusive development. Key Challenges Overemphasis on debt reduction may constrain counter-cyclical fiscal policy during global slowdown. Persistent low private investment questions effectiveness of supply-side fiscal strategy. Rural demand compression risks slowing GDP growth given agriculture’s large employment share. Way Forward Adopt counter-cyclical flexibility within fiscal rules to protect development spending during slowdowns. Broaden tax base and improve compliance to raise non-debt receipts instead of cutting welfare. Balance fiscal prudence with growth-supportive and inclusive expenditure.