DEMAND DISTRESS IN INDIAN ECONOMY
TOPIC: (GS3) ECONOMY: THE HINDU
India’s industrial production has slowed down sharply in the first two months of FY 2025-26, indicating weak demand, especially in consumer goods. Both rural and urban demand remain sluggish, raising concerns for the overall economy.
Context
- Industrial growth in India has fallen to a 9-month low in May 2025.
- This decline is broad-based, especially in consumer-facing sectors, showing stress in household demand.
- Economists are now looking toward the festival season and monsoon for possible recovery in demand.
Trends in Industrial Production
- Index of Industrial Production (IIP) growth slowed to 1.2% in May 2025, after 2.6% in April.
- The average growth in the first two months of FY26 is only 1.9%, compared to 5.7% in FY25.
- Electricity output shrank by 5.8%, possibly due to cooler weather or reduced industrial usage.
- Manufacturing sector grew by just 2.6%, compared to 5.1% in May 2024.
Weak Consumer Demand
- Both consumer durables and non-durables saw a decline — a rare and concerning signal.
- Durable goods like footwear, air-conditioners, plastic furniture, electronics contracted.
- These are discretionary items, suggesting consumers are postponing non-essential purchases.
- Even daily-use non-durable goods like meat, jam, sugar, bottled water saw reduced output indicating cautious consumer spending.
Other Demand Indicators
- Purchasing Managers Index (PMI) for June showed positive movement in intermediate goods, but capital goods and consumer goods remain weak.
- Suggests that while factories are operating, household and investment demand remains soft.
DEMAND IN THE MARKET REFLECTS THE OVERALL HEALTH OF THE ECONOMY
Higher Demand Means People Have More Money
- When people are buying more goods (like clothes, electronics, or food), it shows they have enough income and feel confident about spending.
- Example: If more people buy ACs or smartphones, it shows rising disposable income and better living standards.
Increased Demand Boosts Production and Jobs
- To meet higher demand, factories produce more, and companies hire more workers, which leads to economic growth.
- Example: During festival seasons, demand for clothes and sweets increases, so small businesses hire extra workers and earn more.
Low Demand Signals Economic Slowdown
- If people are not buying much, it may mean they are worried about jobs or inflation. This can slow down business activity and affect GDP.
- Example: If car sales fall for many months, it shows people are postponing big purchases, possibly due to job insecurity or high EMIs.
Hope for Revival?
- Finance Minister believes tax cuts in Budget 2025 will boost urban demand.
- Monsoon progress so far is good, which may support rural income and spending.
- The upcoming festival season (Sept–Nov) may see a rise in consumer purchases.
Concerns Ahead
- Weak domestic demand plus global trade uncertainties could slow economic momentum in FY26.
- Without strong consumption, both employment and production may suffer.
Conclusion
Sluggish demand — both urban and rural — is hurting industrial growth. While the government hopes for a festival-led recovery, structural issues like low income growth and weak job creation must be addressed to sustain demand.
USING TECH TO EMPOWER WOMEN AND CHILDREN
TOPIC: (GS2) INDIAN POLITY: THE HINDU
The Ministry of Women and Child Development is using digital tools to improve delivery of services for women and children. From nutrition to safety, various schemes are now integrated with real-time data and digital platforms.
Context
- The government is promoting inclusive and tech-driven governance under the Viksit Bharat@2047 vision.
- The Ministry is using digital platforms for better access to welfare schemes and faster service delivery.
- This ensures last-mile connectivity, transparency, and quick grievance redressal.
Digital Initiatives
Saksham Anganwadi Programme
- Aims to modernise 2 lakh Anganwadi centres.
- Introduces smart devices, e-learning, and improved service delivery.
Poshan Tracker
- Integrates 14 lakh Anganwadi centres digitally.
- Tracks real-time data on nutrition delivery to over 10 crore beneficiaries.
- Promotes “Swasth Bharat, Suposhit Bharat”.
- Recognised with PM’s Award for Excellence in Public Administration (2025).
- Facial recognition used to ensure authenticity of beneficiaries.
Pradhan Mantri Matru Vandana Yojana (PMMVY)
- ₹5,000 for first child, ₹6,000 for second if girl child.
- Paperless, Aadhaar-linked, DBT system.
- Over ₹19,000 crore transferred to 4 crore+ women.
- Part of Mission Shakti and aligned with Beti Bachao Beti Padhao.
Women’s Safety through Tech
- SHe-Box portal for online complaints on workplace harassment.
- Mission Shakti dashboard links women in distress to One Stop Centres across districts.
Child Welfare Platforms
- CARINGS portal improves transparency in adoption under JJ Act.
- Mission Vatsalya dashboard enables better monitoring of child care homes and foster care.
- Tools from National Commission for Protection of Child Rights monitor violations digitally.
Tangible Outcomes
- Sex Ratio at Birth improved from 918 (2014-15) to 930 (2023-24).
- Maternal Mortality Rate reduced from 130 to 97 (per 1,00,000 live births).
How technology helps deliver government services faster
Speed and Efficiency Through Automation
- Technology removes manual delays by automating tasks like data entry, approvals, and service delivery.
- Example: Online portals like DigiLocker or e-Shram give instant access to documents and benefits without visiting government offices.
Wider and Easier Access for Citizens
- Digital platforms reach even remote areas through mobile apps, websites, and SMS-based services, ensuring no one is left out.
- Example: UMANG app lets citizens access over 1,500+ government services like EPFO, PAN, and gas subsidy on their phone.
Transparency and Accountability
- Real-time tracking and digital records reduce corruption and improve public trust.
- Example: Direct Benefit Transfer (DBT) ensures subsidies go straight to the beneficiary’s bank account without middlemen.
Challenges for service delivery and technology integration
- Digital Divide: A large section of the population, especially in rural and remote areas, lacks internet access, smartphones, or digital literacy. This limits their ability to use online government services effectively.
- Poor Infrastructure and Connectivity: Unreliable electricity, slow internet, and limited data networks in many parts of India affect the smooth functioning of e-governance platforms. This leads to delays or service outages.
- Data Privacy Risks: As services move online, the risk of data breaches, hacking, and misuse of personal information increases. India still lacks strong data protection laws and skilled cyber professionals in public institutions.
Conclusion
By integrating technology into governance, India is ensuring faster access, reduced leakages, and more accountability in welfare delivery for women and children — a key step toward inclusive development in Amrit Kaal.
Hope for Revival?
- Finance Minister believes tax cuts in Budget 2025 will boost urban demand.
- Monsoon progress so far is good, which may support rural income and spending.
- The upcoming festival season (Sept–Nov) may see a rise in consumer purchases.
Concerns Ahead
- Weak domestic demand plus global trade uncertainties could slow economic momentum in FY26.
- Without strong consumption, both employment and production may suffer.
Conclusion
Sluggish demand — both urban and rural — is hurting industrial growth. While the government hopes for a festival-led recovery, structural issues like low income growth and weak job creation must be addressed to sustain demand.
A TRIANGULAR DYNAMIC IN SOUTH ASIA’S POWER POLITICS
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
The U.S. appears to be recalibrating its approach in South Asia, with signs of warming ties with Pakistan’s military, which could affect India’s long-standing strategic partnership with the U.S.
U.S.-Pakistan Shifts
- Renewed Engagement: Trump’s open appreciation for Pakistan and re-engagement with its military highlights a return to transactional diplomacy.
- Military Support: Approval of $397 million aid to maintain Pakistan’s F-16 fleet underlines strategic interest.
- Regional Utility: The U.S. sees Pakistan’s knowledge of Iran and role in Afghanistan as tactically valuable.
Impact on U.S.-India Ties
- Trust Erosion: India’s concerns rise as U.S. actions suggest a reduced emphasis on counterterrorism cooperation.
- Strategic Divergence: While India seeks a principled and values-based partnership, the U.S. appears to be prioritizing short-term strategic calculations.
- Wider Implications: The shift affects India’s goals in the Indo-Pacific and could weaken mutual alignment within QUAD.
India’s Assertive Response
- Operation Sindoor: India’s response to the Pahalgam attack showed a move away from strategic restraint to strong retaliation.
- ‘New Normal’ Doctrine: India now signals readiness to act decisively against terrorism, pushing for global accountability for Pakistan.
- No Mediation Policy: India firmly opposes third-party involvement, especially in Kashmir-related matters.
Pakistan’s Two-Track Strategy
- Diplomatic Outreach: Islamabad is combining strong military messaging with active U.S. engagement.
- Economic Diplomacy: Offering rare earth minerals and trade deals to the U.S. to stay relevant.
- Military-Centric Governance: Promotion of General Asim Munir to Field Marshal underlines military dominance in Pakistan’s decision-making.
Role of the U.S.
- Deliberate Ambiguity: U.S. appears undecided—balancing between long-term partnership with India and short-term strategic needs with Pakistan.
- Geopolitical Calculations: Pakistan’s geographic location near Iran, China, and Afghanistan boosts its utility in American eyes.
Conclusion
South Asia’s strategic triangle is being redefined. As U.S. policy tilts toward transactionalism, India must safeguard its core interests, assert strategic autonomy, and reinforce its global positioning through consistent diplomacy and partnerships.
ROLE OF ANTI-DEFECTION LAW IN PROTECTING DEMOCRATIC INTEGRITY
TOPIC: (GS2) GOVERNANCE: THE HINDU
The Chief Minister of Himachal Pradesh recently highlighted the importance of the Anti-Defection Law during a political crisis in 2024, stressing its role in upholding democratic values and government stability.
What is Defection?
- Defection means a legislator leaves their party, disobeys the party whip, or remains absent during important votes without party approval.
- Such acts often result in political instability and weaken voter trust.
About Anti-Defection Law
- Introduced in 1985 through the 52nd Constitutional Amendment by adding the Tenth Schedule.
- Aimed at preventing unethical party switching by MLAs and MPs, popularly referred to as the “Aaya Ram, Gaya Ram” trend.
What is RPA 1951?
- Purpose of the Act: The RPA 1951 lays down the rules and procedures for conducting elections to the Parliament and State Legislatures in India.
- Covers Election Process: It includes provisions for qualifications and disqualifications of candidates, election offences, and rules for polling, counting, and declaration of results.
- Disqualification Rules: The Act lists grounds for disqualification of MPs and MLAs such as corruption, criminal conviction, or failure to lodge election accounts.
Key Provisions
- Presiding officer (Speaker/Chairperson) can disqualify a member based on a complaint.
- Grounds for disqualification:
- Voluntarily giving up membership of the party.
- Voting or abstaining against the party’s direction (whip).
Exceptions to Disqualification
- Originally allowed two exceptions:
- Split by 1/3rd of party members.
- Merger supported by 2/3rd members.
- 91st Amendment Act, 2003 removed the “split” provision to reduce misuse.
How it Protects Democracy
- Upholds Voter Mandate: Prevents betrayal of party loyalty after elections.
- Ensures Stability: Discourages defections during key votes (e.g., no-confidence).
- Maintains Party Discipline: Reinforces coordination in parliamentary processes.
- Prevents Corruption: Reduces chances of horse-trading and political opportunism.
Challenges and Criticism
- No time limit for the Speaker to act → delays justice.
- Speaker’s bias possible due to party influence.
- Whip system lacks clarity → MLAs may not know their obligations.
- Judicial limitations → Courts hesitant to interfere quickly.
- Large-scale defections still possible under the 2/3rd merger rule.
- Example: Goa (2019), Arunachal Pradesh (2016)
Reforms and Way Forward
- Fix deadlines for disqualification decisions (e.g., within 3 months).
- Make whip information public through official notices or media.
- Set up an independent tribunal (like under the Election Commission) to ensure neutrality.
- Recommended by Dinesh Goswami Committee, Law Commission (1999), NCRWC (2002)
SHIV SENA DEFECTION & PARTY SYMBOL DISPUTE
Political Split and Defection
- In 2022, Eknath Shinde, a senior Shiv Sena leader, led a revolt with a group of MLAs and formed a new alliance with the BJP.
- This defection split the original Shiv Sena into two factions — one led by Uddhav Thackeray, and the other by Eknath Shinde.
Battle Over Party Name and Symbol
- Both factions claimed the Shiv Sena name and its bow and arrow election symbol.
- The Election Commission of India (ECI) gave the name and symbol to the Shinde faction, citing majority support from elected MLAs and MPs.
Legal and Constitutional Questions
- The matter raised important issues under the Tenth Schedule (Anti-Defection Law) and the Representation of the People Act.
- The Supreme Court, while hearing the case, said the Speaker must decide disqualification petitions in a time-bound manner.
Conclusion
While the Anti-Defection Law was a bold step towards safeguarding democracy, its loopholes and delays must be fixed. A neutral and time-bound mechanism is essential to ensure it serves its true purpose of protecting electoral integrity and stable governance.
MNRE REVISES BIOMASS GUIDELINES TO BOOST BIOENERGY
TOPIC: (GS3) ENVIRONMENT: INDIAN EXPRESS
The Ministry of New and Renewable Energy (MNRE) has updated its guidelines for the Biomass Programme under the National Bioenergy Programme (NBP) Phase-I, to simplify processes and improve biomass energy use.
What is Biomass?
- Biomass is plant or animal-based organic matter used as fuel.
- Includes agricultural residue, forestry waste, urban solid waste, and industrial waste.
- India produces ~750 million metric tonnes (MMT) of biomass each year; around 228 MMT is surplus.
Key Features of the Revised Guidelines
- Simplified Rules: Less paperwork and easier approvals. Documentation relaxed for pellet and briquette manufacturing units.
- Use of Technology: IoT-based tracking or quarterly data reports now replace costly SCADA systems. Improves efficiency and lowers costs.
- Market Flexibility: No fixed two-year contract needed now; allows companies to adapt to market conditions.
- Subsidy Linked to Performance: Full Central Financial Assistance (CFA) for plants running at or above 80% efficiency. Pro-rata CFA for plants performing below 80%.
- Simplified Inspection: Performance checks allowed within 18 months of setup. Reduced testing time from 3 days to a 10-hour session.
- Regional Choice: Producers in Delhi, NCR, Punjab, Haryana, Rajasthan, and Uttar Pradesh can pick benefits from MNRE or CPCB.
What is the National Bioenergy Programme (NBP)?
- It is a government scheme to promote bioenergy production using biomass, biogas, and urban organic waste.
- Aims to reduce pollution, cut fossil fuel use, and support clean energy goals.
- Total budget: ₹1,715 crore; Phase-I: ₹858 crore.
- Three sub-schemes:
- Waste to Energy – Large-scale biogas, Bio-CNG, power plants.
- Biomass Programme – Support for briquette/pellet units and biomass-based cogeneration.
- Biogas Programme – For family/medium size biogas plants in villages.
WHAT IS BIOGAS?
Biogas is a clean, renewable fuel produced through the breakdown of organic matter like animal dung, food waste, crop residues, or sewage in the absence of oxygen (a process called anaerobic digestion).
Sources of Raw Material for Biogas:
- Cow dung (most common in rural India)
- Kitchen waste
- Agricultural residue
- Sewage and human waste
- Industrial organic waste
Main Components of Biogas:
Gas Percentage Role
Methane (CH₄) 50–75% Main fuel — burns to produce energy
Carbon Dioxide (CO₂) 25–45% Inert gas — reduces calorific value
Conclusion
The updated guidelines aim to promote clean energy, reduce pollution, and make biomass energy more accessible and economical, especially for rural and industrial sectors.
MY BHARAT 2.0 PLATFORM
TOPIC: (GS2) INDIAN POLITY: PIB
The Ministry of Youth Affairs and Sports (MYAS) has recently signed an agreement with Digital India Corporation (DIC) to develop the MY Bharat 2.0 Platform, a digital initiative to enhance youth engagement in India.
About MY Bharat
- Launched in 2023, MY Bharat is a digital platform by MYAS.
- It aims to engage Indian youth in nation-building activities through structured volunteering, learning, and mentorship.
- It supports the goal of building a Viksit Bharat (Developed India) by 2047.
Features of the Original MY Bharat Platform
- Allows youth to create digital profiles.
- Helps them join volunteer programs, skill-building workshops, and interact with mentors and peers.
- Focuses on active youth participation in civic and community services.
- As of now, over 1.76 crore youth and 1.19 lakh organizations have registered.
What is MY Bharat 2.0?
- An upgraded version of the existing MY Bharat platform.
- Aims to be more technologically advanced, user-friendly, and scalable.
Features of MY Bharat 2.0
- Modular architecture: Designed for future expansion and upgrades.
- AI-based tools:
- Smart CV Builder for job readiness.
- AI-driven personalized digital profiles.
- AI chatbots for 24/7 user support.
- Voice Navigation: Improves accessibility for all, especially differently-abled youth.
- Speech-to-Text and WhatsApp integration: Makes communication smoother and easier.
Objective
- To digitally empower youth, improve access to opportunities, and build a strong support ecosystem for their personal and professional growth.
Conclusion
MY Bharat 2.0 is a step forward in building a digitally connected, skillful, and socially responsible youth population, contributing actively to India’s development journey toward 2047.
INDIA REITERATED ITS COMMITMENT TO THE GLOBAL SOUTH
TOPIC: (GS2) INTERNATIONAL RELATIONS: PIB
Prime Minister Modi’s recent 5-nation visit has highlighted India’s continued efforts to strengthen ties with countries of the Global South, focusing on inclusive growth and shared development goals.
What is the Global South?
- Definition: It refers to developing and less industrialised countries, mostly in Asia, Africa, Latin America, and Oceania.
- Name Origin: The term gained attention after the 1980 Brandt Report, which showed inequality between rich and poor nations using the “Brandt Line”.
- Not Geographical: Despite the term “South,” countries like India and China, located in the Northern Hemisphere, are included.
Common Features of Global South Countries
- Widespread poverty and underdevelopment.
- Struggles with poor health systems, food insecurity, external debt, and terrorism/conflict.
- They seek fair representation in global decisions on trade, climate change, patents, health, and financial systems.
India’s Contribution and Leadership
- Historical Role: Helped launch key movements such as:
- Bandung Conference (1955) – promoted Afro-Asian solidarity.
- Non-Aligned Movement (1961) – maintained independence from superpowers.
- G-77 (1964) – collective voice of developing nations in the UN.
- Guiding Principles: Advocates multilateralism, equality, peace, and South-South cooperation.
India’s Recent Efforts
- Voice of Global South Summit: A platform launched by India to unite voices of developing countries. Its 3rd edition in August 2024 saw participation from over 120 nations.
- Global Vision: India promotes inclusive growth through its G-20 theme “One Earth, One Family, One Future.” Supports sustainable development and fair global systems.
Conclusion
India continues to play a strong leadership role in promoting the interests of the Global South, aiming for a more balanced and inclusive world order.
AKASH AIR DEFENCE SYSTEM
TOPIC: (GS3) SCIENCE AND TECHNOLOGY: PIB
Brazil has shown interest in purchasing India’s Akash Air Defence System, which highlights India’s defence export potential just before the 17th BRICS Summit.
What is the Akash Air Defence System?
- Akash is a medium-range surface-to-air missile (SAM) system developed in India.
- It is designed to intercept and destroy aerial threats such as fighter jets, unmanned aerial vehicles (drones), and cruise missiles.
- The system can be deployed for both defensive and offensive roles to protect important military and strategic locations.
Who Developed It?
- Developed by the Defence Research and Development Organisation (DRDO).
- Built in collaboration with Bharat Dynamics Limited (BDL) and Bharat Electronics Limited (BEL).
- It is a major project under the ‘Make in India’ initiative to promote indigenous defence manufacturing.
Key Features
- Range: Capable of targeting threats from 4.5 km to 25 km away.
- Altitude Coverage: Can engage targets from 100 meters up to 20 km in height.
- Speed: Operates at supersonic speeds, ranging between Mach 1.8 and 2.5.
- Mobility: Highly mobile and can be quickly moved to different battlefield locations.
- Multi-target Capability: Can track and hit multiple targets simultaneously.
Strategic Importance
- Fills the gap between short-range and long-range defence systems in India’s layered air defence setup.
- Boosts India’s self-reliance in defence and enhances export potential.
- The interest from Brazil reflects India’s growing reputation as a defence technology supplier.
Conclusion
The Akash missile system represents a strong step toward strengthening India’s air defence and expanding its global defence footprint through exports.