INDIA GETS ISA LICENCE FOR DEEP-SEA EXPLORATION
TOPIC: (GS3) ECONOMY: THE HINDU
India has received its first-ever global licence from the International Seabed Authority (ISA) to explore polymetallic sulphides in the Carlsberg Ridge of the northwest Indian Ocean.
Background
- Polymetallic Sulphides (PMS): Mineral-rich rocks found in the deep ocean, containing manganese, cobalt, nickel, and copper, crucial for clean energy technologies.
- Carlsberg Ridge: A 3,00,000 sq. km area in the Arabian Sea forming the boundary between Indian and Arabian tectonic plates.
- ISA Mandate: Any country wishing to explore mineral resources in the high seas must obtain licences from the ISA, headquartered in Jamaica.
Challenges in Deep-Sea Exploration
- Technological hurdles: High-pressure and low-temperature conditions at great depths.
- Environmental concerns: Potential damage to marine biodiversity and ecosystems.
- Geopolitical disputes: Competing claims by neighbouring countries (e.g., Sri Lanka in ANS).
- Economic viability: High exploration and extraction costs compared to land mining.
- Regulatory uncertainty: Global debate on sustainable seabed mining practices.
India’s Initiatives
- Deep Ocean Mission (DOM): Launched by the Ministry of Earth Sciences for deep-sea exploration, biodiversity studies, and climate monitoring.
- National Institute of Ocean Technology (NIOT): Developing submersibles and mining technologies.
- International Partnerships: Engaging with ISA and collaborating with other deep-sea capable nations.
- Polymetallic Nodule Programme (PMN): Ongoing since the 1980s for exploration of manganese nodules in the Central Indian Ocean Basin.
Way Forward
- Sustainable exploration: Balance economic interests with ecological safeguards.
- Technology development: Indigenous deep-sea mining tools and manned submersibles.
- Diplomatic engagement: Resolve competing claims through UNCLOS and ISA mechanisms.
- Monitoring and regulation: Strict environmental impact assessments before commercial mining.
- Strategic autonomy: Strengthen India’s leadership in the global seabed governance system.
LAWS AND CONSTITUTIONAL PROVISIONS
- UNCLOS (1982): Defines maritime boundaries, high seas exploration rights, and continental shelf claims.
- UNCLOS Article 76: Permits countries to claim up to 350 nautical miles of continental shelf; Bay of Bengal states may extend up to 500 nm.
- Environment (Protection) Act, 1986: Regulates activities with potential ecological impact.
- Biological Diversity Act, 2002: Protects marine biodiversity.
- Constitutional Provisions:
- Article 48A: Directive to protect and improve the environment.
- Article 51(c): Obligation to respect international law and treaties.
- Article 253: Parliament’s power to make laws to implement international agreements.
Conclusion:
India’s ISA licence strengthens its position in the global seabed resource race. However, success will depend on sustainable exploration, technological innovation, and adherence to international law.
INVOLUTION IN CHINA’S EV SECTOR
TOPIC: (GS3) ECONOMY: THE HINDU
China’s electric car industry is struggling because too many companies are cutting prices to compete, causing heavy losses. The government and President Xi Jinping now plan to control this unhealthy competition and close down weak factories.
What is “Involution”?
- Meaning of Involution: Comes from Latin involutio, meaning “to turn inward.”
- Anthropology Concept: Clifford Geertz used it in Agricultural Involution to describe systems where more work and complexity don’t lead to better results.
- Economics Usage: In modern economics, it means firms compete so hard that profits shrink, even if total output grows.
- Example in China’s EV Sector: Companies lower prices too much to gain market share, causing falling profits and excess production.
Factors Behind Involution in the EV Sector
- Oversupply: Over 120–130 EV companies competing for the same market share in China.
- Price Wars: Rivals slashing prices below production costs to survive.
- Tariff Pressures Abroad:
- U.S. imposed 100% tariffs on Chinese EVs and parts.
- EU imposed additional countervailing duties (17–35%) citing unfair subsidies.
- Turkiye and Mexico added heavy import duties to block Chinese EV inflow.
- Domestic Saturation: With export barriers rising, companies intensified competition in the home market.
Impact of Involution
- Financial Losses: Firms unable to recover production costs.
- Industry Consolidation: Smaller or weaker EV makers risk shutting down.
- Employment Concerns: Factory closures could hit jobs in the auto sector.
- Global Trade Tensions: Tariffs reflect protectionism by U.S. and EU to safeguard their auto industries.
- Technology Advantage: Despite challenges, Chinese EVs remain globally competitive in cost and innovation.
China’s Response to Tackle Involution
- Policy Push: MIIT and Politburo in mid-2025 aimed to stop price wars and excessive competition in EVs.
- Legal Measures: Draft pricing law proposed to ban below-cost selling and unfair algorithmic pricing.
- Xi Jinping’s Guidance: Urged ending chaotic price competition and phasing out outdated production.
- Industry Actions: EV firms are expanding abroad and entering new markets outside Europe and the U.S.
Significance of the Issue
- Highlights the risks of overcapacity in state-backed sectors.
- Demonstrates the impact of global trade protectionism on China’s industries.
- Shows the challenge of balancing consumer benefits (low prices) with industry survival.
- Reflects how economic terms like involution are shaping global economic debates.
Lessons India can learn from China’s EV involution:
- Avoid Overcrowding the Market – Too many firms competing for the same customers can hurt profits.
Example: If too many Indian EV startups launch at once, small companies may fail. - Prevent Destructive Price Wars – Selling below cost may attract customers short-term but damages the industry long-term.
Example: Discounting EVs too much in India could make companies lose money and stop investing in new technology. - Manage Overcapacity – Expanding production without enough demand leads to waste and losses.
Example: Building too many EV factories in India before demand grows could leave unused plants. - Support Healthy Competition – Encourage innovation rather than just price-cutting.
Example: Indian EV makers could focus on battery efficiency or better software instead of only lowering prices. - Plan for Global Trade Challenges – Tariffs or import rules abroad can affect exports; diversify markets.
Example: Indian EV companies can target Southeast Asia or Africa, not just Europe and the U.S.
Conclusion:
The crisis in China’s EV sector shows how excessive competition without regulation can harm both industry and economy. By curbing price wars and allowing weaker firms to exit, Beijing aims to create a more stable and sustainable EV ecosystem.
SUPREME COURT STAYS ‘ARBITRARY’ WAQF AMENDMENTS
TOPIC: (GS2) INDIAN POLITY: THE HINDU
The Supreme Court recently stayed key provisions of the Waqf (Amendment) Act, 2025, calling them prima facie arbitrary, while refusing to strike down the entire Act.
Background of the Issue
- The Waqf (Amendment) Act, 2025, introduced new rules for Waqf creation, management, and property disputes.
- Concerns were raised that some provisions were vague, arbitrary, and against natural justice, leading to multiple petitions in the Supreme Court.
Key Observations of the Supreme Court
Validity of Laws
- Laws made by Parliament are generally assumed to be valid because they serve public interest.
- But courts can still check and strike down parts that are unfair.
Five-Year Faith Rule
- The Act said a person must prove they practiced Islam for five years before creating a Waqf.
- SC said this is arbitrary since there is no clear way to verify it.
- Government must make a proper procedure before enforcing this rule.
Section 3C – Waqf Property Status
- The rule said Waqf loses its status if there is a doubt it belongs to the government.
- SC said this is unconstitutional; only courts can decide property ownership.
- Waqf property cannot be taken or changed in records until courts/tribunals decide.
Protection of Waqf Property:
- To avoid misuse, SC stopped Waqf managers from giving rights to others on disputed Waqf property until final court decisions.
Directions on Waqf Boards and Council
- Central Waqf Council: Not more than 4 non-Muslims out of 22 members.
- State Waqf Boards: Limited to 3 non-Muslims out of 11 members.
- CEO of State Boards: Should preferably be from the Muslim community.
On Registration of Waqfs
- Court upheld mandatory registration of Waqfs with a deed copy.
- Reasoned that if Waqfs were unregistered for decades despite earlier laws, they cannot now claim exemption.
Wider Significance
- Balances religious rights with secular governance and property law.
- Reinforces judicial oversight over property disputes, protecting both Waqf institutions and government assets.
- Prevents arbitrary dispossession while encouraging accountability in Waqf management.
Conclusion:
The judgment reflects the Supreme Court’s attempt to ensure fairness and constitutional balance—by protecting religious freedoms while stopping misuse of Waqf laws and maintaining the separation of powers.
INDIA’S TRADE DEFICIT DECLINES AMID EXPORT GROWTH
TOPIC: (GS3) ECONOMY: THE HINDU
India’s trade deficit in August 2025 fell by more than half compared to the same period last year, supported by higher merchandise and services exports and reduced imports. This improvement comes despite global trade uncertainties and tariff challenges in major markets.
Key Highlights of August 2025 Trade Data
- Sharp fall in trade deficit: Reduced from last year’s level to around half, reflecting stronger export momentum and lower imports.
- Merchandise exports: Increased steadily, showing resilience despite external pressures like tariffs.
- Services exports: Continued to perform strongly, providing a major cushion for the trade balance.
- Imports contraction: Overall imports fell, especially merchandise imports, easing pressure on the current account.
Performance of Exports
- Total exports rose significantly compared to last year’s figures.
- Merchandise exports grew steadily, led by key sectors despite trade barriers such as U.S. tariffs.
- Services exports expanded strongly, driven by IT, business services, and other knowledge-based sectors.
- Exports to the U.S. showed growth even during tariff hikes, indicating competitiveness of Indian goods.
Performance of Imports
- Overall imports declined, providing relief to the trade balance.
- Merchandise imports contracted sharply, reflecting reduced demand for certain goods and lower global prices of commodities.
- Services imports grew marginally, but the rise was not enough to offset the fall in merchandise imports.
Broader Trends (April–August 2025)
- Cumulative trade deficit narrowed by about one-fifth compared to the same period in the previous year.
- The consistent performance of services and moderation in imports have supported this decline.
Significance of the Trend
- Positive for current account balance: A lower trade deficit reduces external vulnerability.
- Policy effectiveness: Indicates that export promotion and import management policies are yielding results.
- Resilience amid uncertainties: Shows India’s ability to maintain export growth despite global headwinds.
- Boost to economy: Strong services sector and moderated imports contribute to stability in growth.
INDIA’S TRADE AND ITS ECONOMIC EFFECT
Impact of Exports on Economy
- Exports bring money into the country, boosting foreign exchange reserves.
- They create jobs and promote industrial growth.
- Example: India’s IT services exported worldwide earn billions, supporting the economy.
Impact of Imports on Economy
- Imports allow access to goods, technology, and raw materials not available domestically.
- Excessive imports can widen the trade deficit and pressure the rupee.
- Example: India imports crude oil, which affects the current account and fuel prices.
Net Exporter or Importer
- India is generally a net importer, as imports (like oil, electronics) often exceed exports, though services exports help balance the trade partially.
Balance Importance
- Maintaining a balance between imports and exports is crucial for stable growth and currency value.
Conclusion:
India’s falling trade deficit amid rising exports and controlled imports reflects growing economic resilience and effective trade management.
UNLOCKING INNOVATION THROUGH INDIA’S PROCUREMENT REFORMS
TOPIC: (GS3) ECONOMY: THE HINDU
The Government of India has revised its General Financial Rules (GFR) in June 2025, easing procurement norms for research and development (R&D).
Procurement and Innovation
- Public procurement in India has traditionally focused on transparency and cost efficiency, often restricting R&D needs.
- Earlier rules mandated most purchases through the Government e-Marketplace (GeM), even for specialised scientific tools.
- This led to delays, poor quality supplies, and loss of valuable research time.
Key Features of the 2025 Reforms
- Exemptions from GeM: Institutions can now bypass GeM for specialised research equipment.
- Raised Purchase Limits: Direct purchase ceiling increased from ₹1 lakh to ₹2 lakh.
- Greater Autonomy for Institutions: Vice-chancellors and directors can approve global tenders up to ₹200 crore.
- Balanced Oversight: Departmental purchase committees remain for high-value procurements to maintain accountability.
Significance of the Reforms
- Encourages Faster Research: Reduces bureaucratic delays in procuring critical instruments.
- Promotes Innovation: Supports customised tools needed for cutting-edge research fields.
- Aligns with Global Trends: Moves closer to models where procurement acts as a driver of innovation, not just cost control.
- Supports Private Sector R&D: Stable demand from public institutions can encourage private companies to innovate.
Global Best Practices
- Germany: Uses procurement under its High-Tech Strategy to promote innovation; supported by an advisory body (KOINNO).
- United States: SBIR program reserves funds for startups, using phased procurement to support early-stage technologies.
- South Korea: Runs “pre-commercial procurement” paying premium prices for prototypes that target ambitious research goals.
Challenges Ahead
- Direct purchase limit still low for advanced fields such as biotechnology or quantum computing.
- Risk of misuse: More autonomy requires strong ethical standards and monitoring systems.
- Domestic industry concerns: Global tenders may sideline local suppliers unless domestic R&D is strengthened.
Way Forward
- Introduce outcome-based tenders, evaluating quality and innovation, not just cost.
- Provide sandbox exemptions to top institutes for flexible procurement.
- Use AI-based tools to track suppliers, predict delays, and cut decision time.
- Encourage co-procurement alliances among labs for costly equipment.
GOVERNMENT E-MARKETPLACE (GEM):
Gem is an online platform for government departments to buy goods and services directly from sellers.
- Purpose: Makes public procurement faster, transparent, and efficient.
- Who Can Use : Government buyers and registered sellers can trade on the platform.
- Benefits: Reduces middlemen, ensures fair pricing, and improves accountability.
- Features: Offers digital payment, product comparison, and user ratings for better decision-making.
- Impact: Helps small businesses and startups sell to the government easily.
Conclusion:
The 2025 reforms shift procurement from cost control to innovation, giving institutions more flexibility. With oversight and local R&D support, they can speed up research and boost India’s innovation capacity.
INDIA’S ECONOMIC AMBITIONS NEED BETTER GENDER DATA
TOPIC: (GS3) ECONOMY: THE HINDU
Uttar Pradesh has launched the Women’s Economic Empowerment (WEE) Index, the first such initiative in India, aimed at tracking women’s role in the economy and identifying gaps in their participation across different sectors.
Background: Gender and Growth
- Women’s labour participation in India is still limited, with most employed in informal jobs.
- Lack of gender-disaggregated data means women’s contribution often goes unmeasured in policymaking.
- Nearly 196 million employable women remain outside the workforce, creating a huge untapped potential.
WEE Index – A New Initiative
- Introduced by Uttar Pradesh government as India’s first district-level tool for gender inclusion.
- Tracks women’s role across five pillars: Employment, Education and Skilling, Entrepreneurship, Livelihood & Mobility, Safety & Infrastructure
- Moves focus from just participation rates to identifying structural barriers.
- Example: Women dominate skilling programs but remain a minority among registered entrepreneurs due to lack of credit access.
Importance of Gender Data
- Without gender-specific data, gaps remain invisible and reforms stall.
- Disaggregated data helps reveal where women face dropouts – from school to work or from skilling to entrepreneurship.
- Enables targeted action, e.g., in UP’s transport sector, gender data revealed low women participation, leading to changes in recruitment and basic facilities.
Broader Reforms Needed
- Universal Gender Data – integrate gender breakdowns in all government departments (education, MSMEs, housing, transport, etc.).
- Beyond Numbers – track not only participation but also retention, leadership roles, re-entry, and quality of employment.
- Gender Budgeting – apply a gender lens across all spending, not just women-specific schemes.
- Local Government Role – empower panchayats and municipalities to collect and use gender data for district-level action plans.
Way Forward for States
- States like Andhra Pradesh, Maharashtra, Odisha, and Telangana, which have ambitious trillion-dollar economic goals, must adopt gender-based tools like the WEE Index.
- Using this framework can help design district-wise action plans, guide budget priorities, and build inclusive infrastructure.
GOVERNMENT INSTITUTIONS THAT COLLECT SDATA:
- National Statistical Office (NSO) – Conducts large-scale surveys like employment, consumption, and health data.
- NITI Aayog – Prepares reports and indices on development, SDGs, health, education, and social indicators.
- Reserve Bank of India (RBI) – Publishes economic, banking, inflation, and financial stability data.
- Census of India (Registrar General & Census Commissioner) – Collects demographic and socio-economic data through the national Census.
- Labour Bureau – Provides data on employment, wages, and labour conditions.
Conclusion
India’s gender gap is not new, but the response must evolve. Tools like the WEE Index make visible the barriers women face and can help move them from the margins to the mainstream. For India to achieve its $30 trillion dream, inclusive growth backed by better gender data is essential.
RISING OBESITY AND CHILDREN’S EXPOSURE TO ULTRA-PROCESSED FOODS
TOPIC: (GS2) HEALTH: THE HINDU
A recent UNICEF report ‘Feeding Profit: How Food Environments Are Failing Children’ (Sept 2025) highlights how growing access to ultra-processed foods, weak legal protections, and aggressive marketing are worsening unhealthy diets among children.
Key Findings of the Report
- About one in every five children (5–19 years) in the world is overweight.
- The problem is most common among children aged 5–9 years and 10–14 years.
- There has been a big increase in supermarkets, convenience stores, and hypermarkets, which has made junk food and sugary drinks more easily available.
- A UNICEF 2023 survey in eight South Asian countries showed that in schools, fast foods and soft drinks were more commonly found than fresh fruits and vegetables.
Weak Legal Protections
- Only 18% of 202 countries studied had mandatory nutrition standards for school meals.
- Only 19% countries imposed taxes on unhealthy foods and sugary beverages.
- Very few nations had comprehensive legal restrictions on marketing unhealthy foods to children.
- Lack of strong laws allows unchecked advertising across television, digital platforms, and outdoor media.
Why It Matters
- Rising childhood obesity poses long-term health risks such as diabetes, hypertension, and heart disease.
- Children are highly vulnerable to food marketing, shaping eating habits that last into adulthood.
- Poor dietary choices undermine investments in education and healthcare.
Policy Recommendations
- Strengthen Legal Frameworks: Mandatory nutrition standards for school meals. Taxes and price regulations on ultra-processed and sugary foods.
- Improve Food Environments: Ban/restrict junk food sales inside and near schools. Ensure availability of fruits, vegetables, and fresh meals in schools.
- Regulate Marketing: Limit advertisements of unhealthy foods across TV, digital media, and outdoor channels. Introduce front-of-pack labelling for consumer awareness.
- Promote Healthy Choices: Nutrition education in schools. Subsidies for healthier food options.
Conclusion
The UNICEF report shows that the global food environment is failing children, with unhealthy diets becoming the norm. India and other countries must adopt comprehensive policies, stricter regulation, and school-level nutrition reforms to curb childhood obesity and ensure healthier future generations.
Conclusion
India’s gender gap is not new, but the response must evolve. Tools like the WEE Index make visible the barriers women face and can help move them from the margins to the mainstream. For India to achieve its $30 trillion dream, inclusive growth backed by better gender data is essential.
SC ON ANTICIPATORY BAIL IN CASTE CRIME CASES
TOPIC: (GS2) INDIAN POLITY: THE HINDU
Supreme Court cancelled the anticipatory bail granted by the Bombay High Court in a caste-related offence, stressing that Section 18 of the SC/ST (Prevention of Atrocities) Act, 1989 strictly prohibits anticipatory bail in such cases.
Background of the Case
- Incident (Nov 2024): A Scheduled Caste complainant alleged that he and his family were assaulted, abused with caste slurs, and threatened after refusing to vote as directed in Assembly elections.
- Lower Court’s View: The Additional Sessions Judge rejected anticipatory bail, citing casteist intent and corroboration.
- High Court’s Order: The Bombay High Court (Aurangabad Bench) later granted anticipatory bail, calling the case exaggerated and politically motivated.
- Supreme Court’s Intervention: On appeal, the SC struck down the High Court order, calling it a “manifest error and jurisdictional illegality.”
Why Anticipatory Bail is Barred under the SC/ST Act
- Anticipatory bail is the legal protection granted by a court to a person so that they are not arrested if they are likely to be accused of a crime.
- Section 18 of the Act excludes the use of anticipatory bail provisions (CrPC 438 / BNSS 482) for atrocities cases.
- This bar is meant to: Prevent intimidation of victims and witnesses and to ensure proper investigation and prosecution.
- The SC relied on past precedents:
- State of M.P. vs Ram Krishna Balothia (1995)
- Vilas Pandurang Pawar vs State of Maharashtra (2012)
- Prathvi Raj Chauhan vs Union of India (2020)
- The Court held that this bar is constitutionally valid and does not violate Article 14 (Equality) or Article 21 (Right to Life and Liberty).
Key Observations of the Court
- Prima Facie Test: Courts should only see if there is a basic case against the accused, not go into a detailed trial while deciding bail.
- Public View Requirement: Using caste abuses in a public place comes under Section 3(1)(r) of the SC/ST Act.
- Electoral Retaliation: If attacks are linked to voting choices, Section 3(1)(o) applies, which punishes pressure or violence against SC/ST voters.
- Evidence Support: Witness accounts, medical reports, and recovery of weapons gave strong backing to the prosecution.
- High Court’s Mistake: The HC wrongly treated the FIR as politically motivated and went beyond its limited powers in a bail hearing.
Significance of the Judgment
- Reinforces that the SC/ST Act is a substantive protection mechanism for Dalits and tribal communities, not just a procedural law.
- Protects victims from retaliation, intimidation, and coercion during legal proceedings.
- Prevents dilution of legislative intent behind Section 18 by reminding courts to strictly follow the prima facie standard.
- Recognises that caste crimes linked to electoral choices threaten not just individuals but also democratic participation and social justice.
Way Forward
- Courts must avoid downplaying allegations of caste crimes at the bail stage.
- Need for strict adherence to Section 18 to maintain victim confidence.
- Greater awareness among lower courts to prevent errors in applying the bar on anticipatory bail.
PROVISIONS OF THE SC/ST (PREVENTION OF ATROCITIES) ACT, 1989
To prevent atrocities and hate crimes against Scheduled Castes (SC) and Scheduled Tribes (ST). Ensures social justice and protection for these communities.
Key Provisions:
- Definition of Atrocities: Covers offenses like physical harm, social discrimination, sexual abuse, property damage, and humiliation against SC/ST persons.
- Special Courts: Offenses under the Act are tried in designated courts to ensure speedy justice.
- Stringent Punishments: Provides strict penalties, including imprisonment, for offenders.
- Preventive Measures: Police and authorities must take proactive steps to prevent atrocities, including regular monitoring.
- No Compromise: Cases cannot be withdrawn without government permission.
- Rights of Victims: Victims have the right to legal aid, compensation, and protection during trial.
- Reservation of Posts in Investigation: Certain officers from SC/ST communities can be involved in investigation to ensure fairness.
Conclusion:
This ruling strengthens accountability under the SC/ST Act and underscores that the rule of law must protect the dignity of the most marginalised, ensuring their right to justice and equal participation in democracy.