Content :

1. Why India should address its propulsion gap
2. AAIB yet to decide where AI black box will be decoded
3. Hindi, English top choice as medium of instruction for Class 10, 12 exams’
4. Reserve Bank issues project finance directions to banks
5. ‘India FDI slid 1.8% in 2024, share in capital formation declining’
6. The unregulated drink: rethinking alcohol control in India

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Why India should address its propulsion gap

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Historical Context: HF-24 Marut’s Engine Failure

• India’s first indigenous jet fighter (HF-24 Marut) failed not due to design but due to underpowered imported engines (Orpheus 703).
• Ambitious project led by German engineer Kurt Tank.
• Its performance in combat was limited; only 147 units built before being phased out.
• Showed early how engine dependency undermines indigenous aircraft potential.

Relevance : GS 3(Technology ),GS 2(Governance )

Kaveri Engine: Persistent Challenges

• Launched in 1989 for the LCA Tejas, but failed despite ₹2,032 crore investment.
• Issues: Low thrust-to-weight ratio, poor reliability, and thermal management flaws.
• Multiple revivals failed — including with French Snecma and Safran.
• Kaveri’s failure forced reliance on GE’s F404 engines for Tejas, compromising performance and payload.

Operational Setbacks Due to Foreign Delays

• GE delayed delivery of 99 engines for LCA Mk1A by 13 months, affecting commissioning schedules.
• Caused concern as IAF combat strength fell from 42.5 to ~30 squadrons.
• Air Chief bluntly criticized delays, calling for readiness over planning.

Stalled Engine Transfer Deals

• The GE-F414 engine (for LCA Mk2 and AMCA Mk1) deal hit a roadblock.
• GE demands extra $500 million and refuses to share core technologies (e.g. single-crystal blades, thermal coatings).
• Reflects global reluctance to share sensitive tech, despite India’s demands for full transfer.

Wider Dependence Beyond Air Force

• Army: Arjun tanks use German MTU engines, Zorawar light tanks use U.S. Cummins engines.
• Navy: All indigenous ships use foreign propulsion — Russian, Ukrainian, French, U.S., or German.
• Highlights that engine dependence is across Army, Navy, and Air Force, not just IAF.

Strategic & Economic Implications

• Foreign engine reliance:
  • Delays indigenous programmes.
  • Hampers exports (due to third-party clearances).
  • Makes India vulnerable to geopolitical shocks.
• China, U.S., France dominate aerospace due to engine self-sufficiency.

Need for Strategic Vision

• Engine development is not just technical, but political and structural:
  • India lacks long-term defence R&D vision.
  • Funding is fragmented and short-term.
• Experts call for:
  • Structural reforms.
  • Strong political backing.
  • Public-private-academic partnerships.
  • Integrating Atmanirbhar Bharat with serious policy execution.

Conclusion: Autonomy is Non-Negotiable

• India’s AMCA and LCA future hinges on resolving the propulsion gap.
• Indigenous engine capability is essential for:
  • Military readiness.
  • Credible deterrence.
  • Export potential.
• Without it, India’s defence ambitions will remain strategically compromised.

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AAIB yet to decide where AI black box will be decoded

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Context: Air India Crash and Investigation

• The Air India Boeing 787-8 crashed near Ahmedabad on June 14, 2025.
• Investigation is being led by India’s Aircraft Accident Investigation Bureau (AAIB) under the Ministry of Civil Aviation.
• Two black box sets recovered — one from June 13 and the other on June 16.

Relevance : GS 3(Disaster Management ,Technology)

What Are These Black Boxes?

• Each black box contains:
  • Digital Flight Data Recorder (DFDR) – logs flight parameters.
  • Cockpit Voice Recorder (CVR) – captures conversations and cockpit sounds.
• The Boeing 787-8 has two sets of recorders (nose and tail) for redundancy — increases data survivability in accidents.

Decoding Decision Pending

• AAIB is yet to decide whether the black boxes will be decoded domestically or abroad.
• Decision will be made based on technical, safety, and security considerations.

India’s Lab Capacity – A New Step

• India did not have a dedicated black box decoding lab before.
• In April 2025, AAIB inaugurated a new DFDR and CVR lab at its HQ with a ₹9 crore investment.
• But it’s unclear if this facility has full capability or international certification to decode high-end aircraft like the 787-8.

Previous Precedent: Kozhikode Crash 2020

• After the Kozhikode crash (2020), the black box was sent to the U.S. National Transportation Safety Board (NTSB).
• Data decoding was overseen by the Indian Ambassador to the U.S.
• At that time, India lacked a black box lab, highlighting dependency on foreign agencies.

Preliminary Reports: A Grey Area

• As per ICAO Annex 13, a preliminary report is required within 30 days.
• But under Indian rules — Aircraft (Investigation of Accidents and Incidents) Rules, 2017:
  • There’s no mandatory timeline for preliminary reports.
  • The preliminary report is meant only to categorise the incident and assess required expertise.

Kozhikode Case: Final Report Only

• In Kozhikode, no preliminary report was released — only a final report after nearly a year.
• Officials cited risk of public/media backlash if early-stage data differs from final findings.

Implications of Lack of Timelines

• The absence of mandated timelines for preliminary reports in Indian law may lead to:
  • Delayed transparency.
  • Reduced public trust in aviation safety accountability.
  • Non-alignment with international norms.

Strategic Significance

• Deciding whether to decode black box data in India or abroad will test the capability and credibility of the new lab.
• It also raises questions about India’s aviation investigation readiness, especially for wide-body aircraft like the 787.

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‘Hindi, English top choice as medium of instruction for Class 10, 12 exams’

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Key Findings from Education Ministry Analysis

• Majority of Class 10 & 12 students opted for Hindi and English as mediums of instruction in 2024.
• Among 1.85 crore Class 10 and 1.49 crore Class 12 students:
  • 39.3% chose Hindi.
  • 31.4% of Class 10 and 38.6% of Class 12 chose English.

Relevance : GS 2(Education , Governance)

Regional Language Preference: Limited but Present

• Only a small fraction opted for regional languages — 0.9% to 6.1%.
• Regional languages considered: Marathi, Bengali, Gujarati, Odia, Kannada, Tamil, Telugu, Urdu, Assamese, Punjabi, Malayalam, Bodo, Sanskrit, Nepali, Santhali, Manipuri.

Class 10 Pass Rates: Below National Average in Some Languages

• National average pass rate for Class 10: 88%.
• Lower pass rates in:
  • Gujarati: 82.7%
  • Kannada: 75.4%
  • Telugu & Assamese: 79.8%
• Indicates possible learning gaps or systemic issues in instruction or exam alignment.

High Performing Regional Mediums in Class 10

• Malayalam: 99.9% pass rate (highest).
• Odia: 98%
• Manipuri & Punjabi: 96.2%
• Shows regional variation in outcomes despite smaller student bases.

Class 12 Pass Rates: Notable Differences by Language

• National average for Class 12: 86.5%
• Low performers:
  • Telugu: Only 61.7% pass rate from 1.07 lakh students — a significant concern.
• High performers:
  • Tamil, Nepali, Punjabi, Manipuri: 90.5%–92.3%, above national average.
  • Gujarati: Despite poor Class 10 performance, Class 12 pass rate is 92.6%.

Switch from Regional to English Medium

• Many state boards follow regional languages till Class 10 and shift to English for Class 12.
• Explains rise in English-medium preference in Class 12 (38.6%) vs Class 10 (31.4%).

Equity and Quality Concerns

• Disparities in outcomes raise questions about:
  • Teaching quality in certain regional mediums.
  • Curriculum-content alignment with exam standards.
  • Access to quality study materials in all languages.

Policy Implications

• Need for targeted support in regional-medium education, especially in underperforming languages like Kannada and Telugu.
• Important to ensure linguistic equity in education — aligning with NEP 2020’s multilingual goals.

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Reserve Bank issues project finance directions to banks

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What Has the RBI Done?

• The RBI issued the final “Project Finance Directions 2025” on Thursday.
• These directions aim to institutionalise a structured framework for banks and financial institutions (Regulated Entities or REs) to manage project finance, especially in high-risk sectors.

Relevance : GS 3(Banaking )

Revised Provisioning Requirements

• REs must now maintain:
  • 1.25% provision for under-construction commercial real estate (CRE) loans.
  • 1% for under-construction infrastructure projects.

• These are lower than the draft norms, which proposed:
  • 5% for under-construction projects,
  • 2.5% during operational stage,
  • 1% at cash-generating stage.
• The reduced provisioning makes lending to such projects less capital-intensive.

Operational Stage Relief

• Provisioning reduces further once the project enters the operational phase, thus:
  • Encouraging completion and performance-based financial discipline.
  • Reducing the capital burden on banks for viable, revenue-generating projects.

Stress Resolution Framework Introduced

• A principle-based regime is introduced to handle stress in project finance exposures.
• Seeks harmonisation across REs to ensure consistency and transparency in managing risks.

Rationalisation of DCCO Extensions

• RBI has rationalised the Date of Commencement of Commercial Operations (DCCO) extensions:
  • Infrastructure projects: Max 3-year extension allowed.
  • Non-infrastructure projects: Max 2-year extension allowed.
• Beyond these limits, projects may face asset classification downgrades.

Increased Flexibility to Lenders

• Despite setting overall ceilings, the RBI allows commercial discretion to REs in extending DCCO within these limits.
• Empowers lenders to make project-specific decisions while staying within risk parameters.

Why This Matters

• Brings regulatory clarity to long-gestation project lending.
• Aims to balance financial stability with credit flow to critical sectors like real estate and infrastructure.
• Supports growth-oriented, risk-sensitive financial planning by banks.

Implications

• Likely to spur greater bank lending to infrastructure and CRE sectors due to lower provisioning norms.
• Could improve project viability and reduce NPAs if implemented with proper risk assessments.
• Signals RBI’s shift to a more nuanced, risk-based regulation in long-term finance.

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‘India FDI slid 1.8% in 2024, share in capital formation declining’

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FDI Inflows Declining

• According to UNCTAD’s World Investment Report 2025:
  • FDI inflows into India in 2024 fell by 1.8% compared to 2023.
  • India attracted $27.6 billion in 2024 — less than half of 2020 levels.

Relevance : GS 3(Indian Economy)

Shrinking Role of FDI in Capital Formation

• FDI’s share in total capital formation:
  • Dropped from 8.8% in 2020 to 2.3% in 2024.
  • Indicates increased reliance on domestic investments or alternate funding sources.

FDI Stock Relative to GDP

• Total FDI stock in India (i.e., cumulative foreign investment over time):
  • Fell from 17.9% of GDP in 2020 to 14% of GDP in 2024.
  • Suggests India’s economy grew faster than its ability to attract or retain foreign capital.

Domestic Capital Formation Still Strong

• Despite falling FDI, overall capital formation remained robust.
• Indicates strong domestic investment trends (public and private), potentially mitigating foreign capital slowdown.

Implications for Policy and Economy

• Reflects reduced foreign investor confidence, possibly due to:
  • Global economic uncertainties,
  • Domestic regulatory or geopolitical concerns,
  • Competition from other emerging markets.
• India may need to:
  • Improve ease of doing business,
  • Ensure regulatory stability, and
  • Strengthen infrastructure and investor protection.

Contextual Significance

• FDI is crucial for:
  • Technology transfer,
  • Export competitiveness, and
  • Employment generation.
• Its decline, if sustained, may slow long-term growth and strategic sector development.

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The unregulated drink: rethinking alcohol control in India

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Scale and Impact of Alcohol Use in India

• Alcohol is unsafe even at minimal consumption — the safe limit is 0 ml.
• 23% of Indian men and 1% of women consume alcohol (NFHS-5).
• India has one of the highest rates of heavy episodic drinking.
• In 2021, alcohol use caused 2.6 million DALYs (Disability-Adjusted Life Years).
• Societal cost of alcohol-related harm is estimated at ₹6.24 trillion.
• Alcohol consumption rose by ~240% over two decades; nearly 50% of it is unrecorded.

Relevance : GS 2(Social Issues)

Determinants of Alcohol Consumption

• (i) Biopsychosocial Factors:
  • Genetic predisposition, stress relief, peer pressure, media glamorisation.

• (ii) Commercial Factors:
  • New appealing products: fruit-flavored spirits, pre-mixed cocktails.
  • Surrogate advertising, sponsorships, and social media amplification.
  • Happy hours, sleek packaging, and low pricing (especially IMIL) drive appeal.

• (iii) Policy Factors:
  • States hold regulatory power, causing wide policy inconsistencies.
  • Alcohol industry lobbies to preserve excise revenues and resist reforms.

Policy and Regulation Landscape

• Prohibition exists in Bihar, Gujarat, Mizoram, and Nagaland.
• Some States (e.g. Kerala, Andhra Pradesh) promote sales or explore online delivery.
• Legal drinking age ranges from 18–25 across States.
• Alcohol excluded from GST, so States levy excise taxes, often vaguely defined.

Weaknesses in National Policies

• India lacks a comprehensive National Alcohol Control Policy.
• Existing national policies focus on isolated issues:
  • NAPDDR (2021–22): Addresses supply/demand via multiple ministries.
  • NMHP (2014): Recognised alcohol’s role in mental illness/suicide.
  • NHP (2017) and NSPS (2022): Advocated higher taxes and restrictions.
  • NMAP (2017–22): Called for a cohesive alcohol policy.

Contradictions and Fragmentation

• Alcohol regulation is entangled with:
  • State revenues, political interests, and social norms.
• Mixed messaging: While some States promote restrictions, others market alcohol as “traditional” or “affordable.”
• Fragmented institutional roles across ministries dilute accountability and effectiveness.

Recommendations for a National Alcohol Control Strategy

• (i) Affordability: Use pricing to deter abuse but avoid illicit liquor risks.
• (ii) Allocation: Health taxes on alcohol should be earmarked for public health, not general budgets.
• (iii) Accessibility: Reduce visibility and availability in urban/public spaces.
• (iv) Advertisement: Curb “social surrogacy” and algorithmic promotion of alcohol online.
• (v) Attractiveness: Enforce plain packaging, warning labels, and limit point-of-sale promotions.
• (vi) Awareness: Launch large-scale campaigns on alcohol’s links to cancer, suicide, and generational poverty.
• (vii) AI Surveillance: Use AI to detect alcohol promotion and misinformation on digital platforms.

Way Forward

• Alcohol is a public health crisis, not just a revenue source.
• India needs a coordinated, national-level policy focused on people over profit, prevention over revenue, and long-term well-being over short-term gains.
• A systems approach — combining science, equity, and governance — is essential to address the alcohol epidemic.