Content
Bengal second-lowest in convictions for crimes against women
The future of the IMEC
India’s Municipal Finance Crisis
Meet AI chatbots replacing India’s call-centre staff
The new power of rare earths
Bengal second-lowest in convictions for crimes against women
Why in News
Trigger Event: An alleged gang rape of a medical student from Odisha in Durgapur (Oct 2025).
Political Reaction: CM Mamata Banerjee’s remarks—suggesting girls should avoid going out at night—sparked public and Opposition backlash.
Significance: The issue reopens debates on women’s safety, accountability, victim-blaming, and governance failure in West Bengal.
Relevance :
GS 1: Social issues – women’s safety, gender inequality, victim-blaming, societal norms.
GS 2: Governance & law – criminal justice system efficiency, role of police and judiciary, NCRB data analysis, implementation of Nirbhaya Fund schemes, fast-track courts.
Background Context
Previous Incident (2024):
A woman doctor was raped and murdered at R.G. Kar Medical College, Kolkata.
The State government issued guidelines to limit women doctors’ night shifts, later withdrawn after Supreme Court criticism for gender discrimination.
Current Case (2025):
The victim, a medical student from Odisha, was allegedly gang-raped in Durgapur.
Public anger intensified due to perceived pattern of administrative inaction.
Statistical Reality: Crime Against Women in West Bengal (NCRB Data 2018–2023)
Indicator
West Bengal’s Status
Rank (India)
Trend/Observation
Crimes against women (annual average >30,000)
Very High
Top 4
Consistent since 2018
Acid attack & attempt to acid attack
Highest
1st
2021–2023
Attempt to rape
Second highest
2nd
Since 2019
Cruelty by husband or relatives
High
3rd (after Rajasthan & UP)
2018–2023
Conviction rate (avg. 2017–2023)
~5%
35th/36 States
Extremely poor
Conviction rate (2022 peak)
8.9%
Still among lowest
Marginal improvement
Acquittals (2023)
>19,000 cases
Highest
Sharp increase from <8,000
Pending trials (2023)
~3.7 lakh cases
Highest
+56% rise since 2017
Core Issues Identified
Low Conviction Rate:
Reflects weak investigation, poor prosecution, and witness intimidation.
Only 1 in 12 cases result in conviction (2022).
High Acquittals & Pendency:
Courts overburdened; lack of fast-track courts and forensic infrastructure.
Delay → Justice Denied → Impunity.
Systemic Gaps:
Poor coordination between police and judiciary.
Underreporting due to stigma and police apathy.
Lack of victim support services and shelters.
Socio-Political Dimensions
Governance Accountability:
Opposition alleges failure of law and order.
State government’s “zero tolerance” claim contradicted by data.
Gender Sensitivity Deficit:
Administrative response often patriarchal and moralistic.
Instead of institutional reform, discourse shifts to individual behaviour.
Judicial and Civil Society Response:
Calcutta High Court and Supreme Court previously intervened in related cases.
Civil society demands independent oversight and fast-track mechanisms.
Broader Context in India
National Picture (NCRB 2023):
India recorded 4.45 lakh crimes against women, a 4% rise over 2022.
National conviction rate ~30%, West Bengal only ~5%, showing sharp contrast.
Highlights state-level variation and policy implementation gaps.
Policy and Legal Framework
Legal Safeguards:
IPC Sections 354, 376, etc. (sexual assault & rape).
Criminal Law (Amendment) Act, 2013 post-Nirbhaya.
Nirbhaya Fund, One-Stop Centres, Women Helplines (181).
Implementation in WB:
Underutilization of central schemes.
Weak forensic and police infrastructure despite repeated directives.
Way Forward
Institutional Reforms:
Establish state-level fast-track courts for gender crimes.
Modernize forensic labs; integrate digital tracking of cases.
Police Reforms:
Increase women officers, sensitization training, and independent oversight.
Victim Support Systems:
Strengthen One-Stop Centres, psychological aid, and compensation mechanisms.
Public Accountability:
Transparent crime and conviction dashboards.
Stronger civil society engagement in monitoring and advocacy.
The future of the IMEC
Why in News
Recent Context (Oct 2025):
Rising trade frictions with the U.S. have prompted India to diversify trade partnerships with Europe, West Asia, and beyond.
India is finalizing a trade deal with the U.K. and negotiating with the European Union.
Simultaneously, renewed emphasis is on operationalizing the India–Middle East–Europe Economic Corridor (IMEC) — envisioned as a strategic trade and connectivity corridor linking India, the Gulf, and Europe.
However, the West Asian instability post–Hamas attacks (Oct 2023) continues to threaten the corridor’s feasibility.
Relevance :
GS 2: International relations – India–Middle East–Europe connectivity, trade corridors, I2U2 and multilateral frameworks, strategic autonomy.
GS 3: Economic development – infrastructure, logistics, energy trade (hydrogen/electricity), supply chain resilience, China’s BRI comparison.
GS 3: Security – regional stability in West Asia, maritime and cyber dimensions, alternative trade routes amid conflicts.
Background and Genesis
Launch:
Announced during the G-20 Summit in New Delhi (Sept 2023) in the presence of leaders from India, the U.S., Saudi Arabia, UAE, France, Germany, Italy, and the European Commission.
Origin:
Conceived within the I2U2 framework (India, Israel, UAE, U.S.) aimed at creating economic integration and infrastructure connectivity across Asia and Europe.
Geopolitical Context:
The Abraham Accords (2020) normalized Israel–Arab relations, enabling such a corridor proposal.
Optimism in 2023 for regional peace created momentum for transnational infrastructure planning.
Vision and Structure of IMEC
Objective: To establish a strategic multi-modal corridor enhancing connectivity between India, the Arabian Peninsula, and Europe.
Components:
Maritime Connectivity: Between Indian ports and Gulf ports (e.g., Dubai, Fujairah).
Rail Connectivity: Linking UAE–Saudi Arabia–Jordan–Israel, culminating at Haifa Port on the Mediterranean.
Sea Route: Haifa to European ports (e.g., Greece, Italy, France).
Complementary Infrastructure:
Clean hydrogen pipeline.
High-voltage electricity cable.
Undersea digital cable (telecom data link).
Integrated logistics and port development.
Strategic Rationale for India
Diversification Amid U.S. Trade Frictions:
Reduce overdependence on U.S. markets; expand Europe–West Asia trade axis.
Alternative to BRI:
Offers a democratic, rules-based counterbalance to China’s Belt and Road Initiative (BRI).
Energy and Logistics Security:
Seamless energy transport (hydrogen, electricity).
Faster supply chain integration with EU markets.
Economic Opportunity:
Europe is India’s largest trade partner ($136 billion trade, 2024–25); IMEC can reduce freight time and cost.
Geopolitical Leverage:
Enhances India’s strategic role in West Asia, cementing ties with Saudi Arabia, UAE, and Israel.
Key Geopolitical Developments Impacting IMEC
October 7, 2023 – Hamas Attacks:
Sparked Israel–Hamas conflict, destabilizing the entire West Asian region.
Strained Israel’s ties with Gulf countries that were expected to anchor IMEC.
Red Sea Crisis (2024–25):
Houthi attacks on shipping disrupted Suez Canal trade routes, increasing global freight costs by 30–40%.
Underscored the need for secure alternative corridors like IMEC.
Arctic Route Competition:
Melting ice caps have opened northern sea lanes, benefitting Russia, China, and the U.S., diverting trade from the Mediterranean.
Hence, Italy and other Mediterranean economies see IMEC as crucial to retain relevance in global shipping.
Economic and Strategic Significance
Trade and Connectivity:
Reduces India–Europe freight time by up to 40% compared to Suez route.
Creates interoperable logistics networks connecting Asia, Gulf, and Europe.
Energy Transition:
Facilitates clean hydrogen trade, aligning with India’s National Green Hydrogen Mission.
Digital Integration:
Undersea cables to enhance data and telecom linkages between India, West Asia, and Europe.
Strategic Stability:
Deepens India–Gulf strategic partnerships, reducing Pakistan’s influence in the region.
Supply Chain Resilience:
Supports “China+1” diversification, anchoring trusted value chains from India to Europe.
Challenges and Constraints
Security Risks:
Ongoing Israel–Hamas conflict, Iran–Saudi rivalry, and Houthi threats could derail regional transit stability.
Political Uncertainty:
Shifting U.S.–West Asia diplomacy and changing Arab public sentiments toward Israel.
Infrastructure Gaps:
Need for standardization of rail gauges, customs frameworks, and multimodal coordination.
Financial Viability:
High upfront cost (~$20–25 billion estimated). Requires multilateral investment and risk-sharing.
Competition from Arctic and BRI Routes:
Arctic route reduces Europe–Asia travel time by 40%.
China’s BRI continues to dominate Eurasian logistics.
Diplomatic and Strategic Opportunities
India–Europe Partnership Renewal:
EU’s Global Gateway Initiative (2021) aligns with IMEC goals of sustainable infrastructure.
India–Gulf Economic Integration:
Deepening ties with Saudi Arabia and UAE under Comprehensive Economic Partnership Agreements (CEPAs).
Regional Balancing:
IMEC provides leverage for India’s strategic autonomy—collaborating with the West without antagonizing the Global South.
Countering Pakistan’s Narrative:
Strong India–Arab economic linkages marginalize Pakistan’s attempts at forming anti-India coalitions in West Asia.
Way Forward
Institutionalizing IMEC:
Establish a Permanent Coordination Mechanism among members.
Integrate with I2U2 framework for technology and financing.
Expanding Participation:
Engage Egypt, Oman, and Qatar for greater regional integration.
Focus on Dual Security–Economy Strategy:
Combine maritime security cooperation with economic corridor development.
Parallel Trade Diplomacy:
Expedite FTA negotiations with EU and GCC to enhance market access.
Public–Private Collaboration:
Mobilize Indian corporates and Gulf sovereign funds for infrastructure financing.
India’s Municipal Finance Crisis
Context:
Despite urban India generating nearly two-thirds of the national GDP, its municipalities control less than 1% of India’s total tax revenue.
Core Issue:
The fiscal architecture of India’s federalism has left cities financially powerless — over-centralised, grant-dependent, and unable to self-finance essential services or issue credible municipal bonds.
Relevance :
GS 2: Governance – fiscal federalism, 74th Constitutional Amendment, urban governance reforms, intergovernmental transfers.
GS 3: Economy – municipal bonds, urban revenue generation, property tax reforms, urban infrastructure financing, public goods delivery.
GS 1: Society – impact on citizens’ welfare, equitable access to urban services, participatory governance.
Background: India’s Urban Revenue Paradox
Urban India’s Contribution: ~66% of GDP, yet <1% of tax powers.
Post-GST Impact (2017):
Municipalities lost ~19% of their own revenue sources (e.g., octroi, entry tax, local surcharges).
Revenue powers were absorbed into the GST regime, making cities reliant on state and central transfers.
Result:
Revenue centralisation: States and Centre retain >95% of tax powers.
Fiscal autonomy erosion: Cities became implementers, not governors.
How Did Cities Lose Fiscal Autonomy
Centralisation of Taxes:
GST subsumed local taxes without creating municipal compensation mechanisms.
Weak Implementation of 74th Amendment (1992):
Cities were to be “third tier of governance”, but remained administratively dependent on states.
Conditional Grants:
Funds come with strict conditions (e.g., AMRUT, Smart Cities Mission), limiting local discretion.
Low Own-Revenue Base:
Property tax contributes only 20–25% of total municipal revenues — politically sensitive and poorly assessed.
User charges (water, waste, parking) underpriced or poorly collected.
Creditworthiness Crisis:
Ratings and RBI norms treat grants as “non-recurring income”, making cities appear fiscally weak.
The Problem: Flawed Model of Fiscal Federalism
Inadequate:
Cities lack predictable and untied revenues.
Dependence on higher governments leads to fiscal uncertainty.
Unjust:
Burden shifted onto urban residents through user-pay logic — privatising public goods (water, sanitation, lighting).
Penalises poorer households in informal settlements.
Ideological Flaw:
Treats grants as charity, not entitlements.
Undermines the redistributive spirit of cooperative federalism.
Municipal Bonds — The “New Frontier” or a Mirage?
Government Push:
NITI Aayog, Finance Commission, and World Bank promote municipal bonds for infrastructure finance.
Reality Check:
Only a handful of cities (e.g., Pune, Ahmedabad, Indore) have successfully issued bonds.
Low investor confidence due to:
Weak financial transparency and audits.
No stable, predictable revenue stream.
Dependence on ad-hoc state/central grants.
Credibility Problem:
Current credit rating system judges cities narrowly by own revenue, ignoring grants and governance performance.
This undervalues cities’ real fiscal position.
Why the Current Fiscal Prescription is “Inadequate and Unjust”
Inadequate because:
Property tax base too small and politically sensitive.
Administrative weakness in assessment and collection.
User charges regressive, hurting low-income groups.
Unjust because:
Converts collective goods into commodities (e.g., water, waste).
Blames cities for inefficiency, while withholding fiscal authority.
Residents pay more, yet get poor services due to funding shortfalls.
Comparative Perspective: Lessons from Scandinavia
Denmark, Sweden, Norway Model:
Cities can levy and collect income taxes directly.
Enjoy predictable intergovernmental transfers.
Result: Transparent, accountable, and citizen-trusted local governance.
Outcome:
Decentralised fiscal power = efficient urban welfare states.
Transfers treated as part of a shared fiscal ecosystem, not as discretionary charity.
The Indian Paradox
Centralised Power, Decentralised Burden:
Cities are expected to deliver on solid waste, housing, climate resilience, and digital infrastructure without funds.
Revenue Inversion:
Accountability lies at local level; fiscal power lies at central level.
Creates a “democracy deficit” — local governments answerable to citizens but dependent on distant bureaucracies for funds.
The Way Forward
Reimagine Fiscal Federalism:
Recognize cities as equal fiscal entities, not beneficiaries.
Mandate constitutionally guaranteed urban revenue-sharing.
Reform Municipal Bonds Framework:
Treat grants and shared taxes as legitimate income for creditworthiness.
Allow GST compensation or state shares as collateral.
Empower Local Taxation:
Modernize property tax systems (GIS mapping, annual revision).
Rationalize user charges while protecting low-income groups.
Institutionalise Urban Transfers:
Create Urban Finance Commissions at the state level.
Link transfers to transparency, citizen participation, and audit compliance.
Democratize Urban Governance:
Strengthen ward committees and citizen budgeting.
Shift from technocratic to participatory fiscal management.
Meet AI chatbots replacing India’s call-centre staff
Why is it in the News?
A Reuters investigation (Oct 2025) highlighted how AI chatbots developed by Indian startups like LimeChat (Bengaluru-based) are transforming the customer service and IT outsourcing landscape.
LimeChat claims its generative AI agents reduce workforce needs by 80%, signaling a major shift in India’s $283 billion IT and BPM (Business Process Management) sector.
Raises questions on AI-led automation, employment security, and India’s readiness to manage large-scale technological disruption.
Relevance :
GS 3: Science & technology – AI, automation, digital workforce, IT-BPM sector transformation.
GS 2: Governance – policy responses to technological disruption, employment regulation, reskilling frameworks.
GS 1: Society – youth employment, gendered workforce impact, social adaptation to AI disruption.
Background: India’s IT and Outsourcing Sector
India = world’s back-office hub: Accounts for 52% of global outsourcing (NASSCOM, 2025).
Contributes 7.5% to India’s GDP; employs over 5 million directly (2024).
Major strengths: Cheap labour, English proficiency, and large skilled workforce.
Now faces AI-led automation pressures, especially in routine jobs (customer care, payroll, technical support).
What is Happening: AI-Led Disruption
1. Rise of Conversational AI
Global market projected to reach $41 billion by 2030, growing at 24% annually (Grand View Research).
Startups like LimeChat, Haptik (Reliance-owned), and others are automating customer interactions via chatbots.
AI agents can handle 70% of customer complaints today — aiming for 90–95% automation within a year.
2. Economic Model
LimeChat’s service: ₹1 lakh/month automates work of 15 agents (~$1,130 = salary of 3 human staff).
Sales growth: From $79,000 (2022) → $1.5 million (2024) (19x rise).
Integrations with Microsoft Azure to enhance natural language processing and multilingual capabilities.
3. Automation Impact
Jefferies (Sept 2025) forecast:
50% revenue hit for call centres.
35% hit for other back-office functions within 5 years.
TeamLease Digital data:
BPM sector hiring fell drastically:
+1,77,000 (2021–22)
+1,30,000 (2022–23)
<17,000 (2023–24 & 2024–25).
Workers report AI replacing human evaluators and call quality analysts.
Increasing job insecurity among India’s 1.65 million BPM employees.
Policy and Governance Dimensions
1. Government Position
PM Narendra Modi (Feb 2025): “Work does not disappear; its nature changes.”
Official stance: AI’s impact on employment will be limited in the long run due to new job creation in AI coordination, design, and oversight.
Lack of dedicated AI-labour impact assessment mechanism so far.
2. Expert Concerns
Sumita Dawra (ex-Labour Secretary): Advocates for unemployment benefits & social security reforms during AI transition.
Santosh Mehrotra (University of Bath): Warns that India lacks a policy game plan for workforce reskilling amid AI disruption.
3. Geopolitical/Economic Risks
U.S. policies:
25% tax proposal on outsourcing users.
$100,000 H-1B visa fee.
Tariffs on tech services.
Combined with AI automation, these pose a double shock to India’s IT exports.
Social Implications
Youth employment crisis risk — fresh graduates face shrinking entry-level IT roles.
Women disproportionately affected — many occupy back-office or voice-process jobs now being automated.
Cultural dimension: Many employees, like “Megha,” conceal layoffs from families — indicating social stigma of tech job loss.
Customer perspective: Despite AI’s efficiency, EY Survey (Aug 2024) found:
78% Indians still prefer human support online.
62% purchases influenced by AI — shows growing but cautious consumer acceptance.
Opportunities for India
Transition from “Back Office” to “AI Factory”:
Focus on AI engineering, model fine-tuning, and data annotation.
Potential to export AI expertise, similar to IT exports in 2000s.
Upskilling Imperative:
Shift towards AI deployment engineers, process analysts, data trainers, and algorithm auditors.
Need for AI literacy integration in higher education.
AI Governance Leadership:
Develop frameworks for ethical AI use, employment impact assessments, and social security nets.
Challenges Ahead
Skill mismatch: Current workforce not trained for generative AI, automation design, or supervision.
Policy lag: No AI-specific labour transition strategy or unemployment insurance.
Corporate risk: Over-automation may harm customer trust (as seen with Sweden’s Klarna “course correction”).
Ethical and accountability issues: Chatbots providing incomplete or misleading responses (e.g., Knya case).
Conclusion
India stands at a critical inflection point — balancing automation-led productivity with inclusive employment.
If managed well: India can become the world’s AI deployment hub (“AI factory”).
If mismanaged: Risk of technological unemployment, social disruption, and loss of demographic dividend.
Requires a proactive policy mix — reskilling, social protection, ethical AI frameworks, and strategic public–private collaboration.
The new power of rare earths
Why is it in the News?
Growing China’s dominance in rare earth elements (REEs) and its strategic leverage in global trade, especially amid US–China tensions.
Rare earths are critical for clean energy, electronics, defense, and high-tech manufacturing, making them geopolitically sensitive.
The news is timely due to:
China’s export controls and potential supply restrictions.
Global concerns about technological supply chain security.
Rising strategic competition between China and the US in tech and defense sectors.
Relevance :
GS 3: Economy – strategic minerals, critical raw materials for technology, EVs, renewable energy.
GS 2: International relations – China’s dominance, US-China competition, Indo-Pacific mineral diplomacy, supply chain security.
GS 3: Science & technology – green energy tech, EV batteries, high-tech manufacturing, rare earth metallurgy.
Basics: Rare Earth Elements (REEs)
Definition: 17 metallic elements (15 lanthanides + scandium + yttrium) with high electrical conductivity, magnetic properties, and heat resistance.
Applications:
Electronics: smartphones, semiconductors, display screens.
Renewable energy: wind turbines, EV batteries, magnets.
Defense: fighter jets, missile guidance systems.
Misnomer: Despite the name, REEs are not rare in the Earth’s crust but occur in low concentrations that make extraction economically challenging.
Global Reserves & Production (2021–2022)
Reserves (in tonnes of REE equivalent content):
Vietnam: 22,000
Brazil: 21,000
Russia: 12,000
India: 6,90,000 (1st in land-based reserves)
Australia: 42,000
USA: 23,900
Other countries: 42,000
Production of Rare Earth Oxides (2020–2022):
China: 180,000–210,000 tonnes → >50% of global production.
USA: 25,000–28,500 tonnes.
Australia: 14,500–15,900 tonnes.
Others: Russia, Vietnam, Malaysia, Madagascar contribute smaller shares.
China’s Strategic Dominance
Controls ~60–80% of global REE production and processing, creating a near-monopoly.
Extracts and refines REEs at low costs due to:
Vertical integration of mining, separation, and refining.
Economies of scale and state subsidies.
Leverages REEs as a geopolitical tool:
Past examples: export restrictions to Japan (2010), potential leverage against the US and allies.
Creates supply chain vulnerabilities for critical industries in Europe, US, Japan.
Challenges for Other Countries
High extraction costs: REEs often in low concentrations, requiring environmentally intensive processes.
Limited refining capability: Even countries with reserves (USA, Australia, India) rely on China for refining and separation.
Geopolitical dependence: Western countries cannot easily replace Chinese REEs due to lack of infrastructure.
Global Market Dynamics
Demand surge: Driven by EVs, wind turbines, electronics, and defense tech.
China’s pricing power: Can influence global REE prices through:
Export quotas
Tariffs
Technology partnerships and strategic stockpiling
US & allied responses: Initiatives to develop domestic extraction and processing, e.g., Mountain Pass mine (USA), Australian ventures.
India’s Position
India has 6,90,000 tonnes of REE reserves (notably in Odisha, Andhra Pradesh, and Karnataka).
Challenges:
Low extraction and refining capacity.
Lack of commercial-scale processing plants.
Opportunities:
Partner with US, Japan, Australia to develop domestic REE value chain.
Potential hub for strategic minerals in the Indo-Pacific supply chain.
Environmental and Regulatory Issues
REE extraction is chemically intensive and environmentally risky, producing toxic waste.
Countries need strict regulations and eco-friendly technologies for sustainable mining.
China has historically prioritized economic output over environmental concerns, giving it cost advantage.
Impact on Global Economy and Geopolitics
REEs are critical for green energy transition: EVs, wind turbines, batteries.
Any supply disruption by China can affect:
US and EU defense industries.
EV and semiconductor manufacturing.
Countries are increasingly investing in domestic REE projects and diversifying supply chains.