EXPANSIONARY POLICIES IN A SLOWING ECONOMY
TOPIC: (GS3) ECONOMY: THE HINDU
India is currently using both expansionary fiscal and monetary policies, such as tax cuts and repo rate reductions, to boost a slowing economy. This raises questions about the effectiveness of such policies and the need for better coordination between RBI and the government.
Current Monetary Policy Measures
- The RBI has cut the repo rate twice in 2025 — 25 basis points in April and 50 basis points in June — bringing it to 5.5%.
- These cuts were enabled by low inflation (3%) and a stable growth forecast (6.5%).
- The objective is to stimulate investment and support demand.
Recent Fiscal Policy Moves
- The Union Budget 2025-26 introduced income tax cuts aimed at boosting disposable income and consumption.
- These steps, combined with monetary easing, reflect a dual expansionary approach.
- However, signs of slow recovery cast doubt on their immediate effectiveness.
Concerns over Policy Coordination
- When both monetary and fiscal policies expand, inflation can rise if growth does not improve proportionally.
- Past examples from the U.K. and U.S. show that poor coordination can cancel out intended effects.
- In India, credit growth fell to a 3-year low (9%) and unemployment rose to 5.6%, suggesting demand is still weak.
Deficit and Spending Risks
- If tax cuts don’t lead to higher growth, tax revenues may fall, increasing the fiscal deficit.
- To control the deficit, the government may need to reduce spending, especially on social services, affecting vulnerable sections.
- Experts argue that policy should boost wages and consumption among the lower-income groups to generate real demand.
Monetary Policy
- It is the policy used by a country’s central bank (like RBI) to control the supply of money, interest rates, and inflation in the economy.
- Main Tools: Repo rate, reverse repo rate, CRR, SLR, and open market operations are used to influence liquidity and credit availability.
- Goals: To maintain price stability, control inflation, and ensure economic growth.
Fiscal Policy (Managed by Government of India)
- It refers to the use of government revenue and spending to influence the economy.
- Main Tools: Taxation and government expenditure are used to manage demand, employment, and economic stability.
- Goals: To promote growth, reduce inequality, and maintain a stable economy through budget planning.
Conclusion
India needs better coordination between fiscal and monetary policies to ensure growth without triggering inflation or worsening the fiscal deficit. Targeted interventions focused on boosting lower-income demand may be more effective in reviving the economy.
COMPENSATING THEFT – LEGAL PROTECTION FOR NEWS PUBLISHERS FROM AI SYSTEMS
TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU
Concerns are rising that AI models are using news content without permission during training, leading to demands for legal protection and fair compensation for publishers. India’s DPIIT has set up a committee to examine copyright concerns related to AI and content usage.
Challenges for News Industry
- AI systems are trained using massive amounts of online content, including news reports.
- This content is produced by journalists and media houses with years of expertise, yet is used without consent.
- Past digital shifts have already impacted the economic stability of traditional media.
- Social media and tech platforms have benefited from news content while returning little value to its original creators.
Threat from AI Models
- AI can summarise and reproduce news content without linking or crediting the original publishers properly.
- This worsens the monetisation crisis in journalism, where earning sources are shrinking.
- Claims of “fair use” by AI firms are often seen as unjust, especially when profits are made using scraped content.
Need for Legal Protection
- News publishers must have the right to control how their content is used by AI systems.
- Compensation should be agreed upon before AI models use this data.
- The step by the DPIIT to form a copyright and AI committee is timely and necessary.
Conclusion
The journalism sector must be protected in the AI era. Content creators deserve a share of the benefits generated by AI systems that rely heavily on their work. Legal reforms and policy actions are now essential.
LESSONS FROM OPERATION SINDOOR’S GLOBAL OUTREACH
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
India launched a major diplomatic outreach after the Pahalgam terror attack through “Operation Sindoor”, sending multi-party delegations to several countries. This effort strengthened India’s global position on terrorism, public diplomacy, and the importance of soft power in foreign policy.
Unified Political Messaging
- Delegations included MPs from various political parties, religions, and states.
- This national unity sent a strong message to the world that India stands together on issues like terrorism.
- Foreign leaders took India’s voice more seriously due to this collective front.
Clarifying Operation Sindoor’s Objectives
- India explained its response was measured, targeted at terror camps, and avoided civilian harm.
- Delegates highlighted India’s right to self-defence against repeated cross-border attacks.
- Countries like Colombia later retracted misinformed statements and supported India’s stance.
Exposing Pakistan’s Terror Links
- India emphasized the persistent threat from Pakistan-based terror groups like Lashkar-e-Taiba and Jaish-e-Mohammed.
- In Washington DC, U.S. officials echoed India’s concerns even as Pakistan lobbied for support.
Power of Soft Power and Cultural Diplomacy
- The name “Sindoor” symbolized India’s deep cultural sentiment.
- Tools like yoga, cinema, and heritage were highlighted as ways India connects globally.
- Soft power was used to build empathy and understanding in foreign societies.
The Three Ts of Foreign Policy
- Tech: Promote India’s innovations in AI and digital tech.
- Trade: Boost exports and diversify global markets.
- Tradition: Use culture to strengthen international bonds.
Strengthening Global Partnerships
- Countries like Panama and Guyana, current UNSC members, openly supported India.
- Emphasis on long-term partnerships with South and Central American nations.
Conclusion
Operation Sindoor proved that when India communicates with clarity and unity, it earns respect globally. Going forward, combining security, soft power, and strategic outreach will help India navigate global challenges effectively.
IMPACT OF FOREIGN UNIVERSITIES ON INDIAN HIGHER EDUCATION
TOPIC: (GS2) INDIAN POLITY: THE HINDU
With the help of the New Education Policy (NEP) 2020 and the UGC (FHEI) Regulations 2023, India is now opening its doors to foreign universities. This move aims to improve access to global education within India while also helping foreign universities overcome challenges in their home countries.
Why Foreign Universities are Interested in India
- Falling birth rates in developed countries have reduced domestic student enrolment.
- Public funding cuts in countries like the U.K., U.S., and Australia have increased dependency on international students for revenue.
- Due to recent visa restrictions and student number caps in Australia, Canada, and the U.K., universities are now looking towards India as a new and growing market.
- India’s large young population and rising income levels make it a valuable destination for foreign education providers.
Opportunities in India
- India has over 40 million students, but limited access to high-quality institutions.
- Many existing HEIs (Higher Educational Institutions) are average or subpar, creating demand for better quality education.
- Foreign universities can provide international-level education without Indian students needing to go abroad.
- Students who prefer to work in India after graduation can now access a foreign degree at home.
- Locations like GIFT City and Navi Mumbai are becoming hubs for these branch campuses.
Challenges for Foreign Universities in India
- Affordability: Though the student base is huge, most families cannot pay high international tuition fees.
- Mixed success globally: Branch campuses in Asia and the Middle East have often failed or been shut down due to financial losses.
- The initial impact may be small, as only a few universities have been approved and student response is yet to be tested.
- Cultural and regulatory differences could also affect long-term success.
Conclusion
Foreign universities have the potential to improve India’s higher education quality. However, their success will depend on affordability, student acceptance, and long-term viability. The first few years will be key in shaping future decisions and partnerships.
U.S. STRIKES ON IRAN'S NUCLEAR SITES WITH A STRUCTURED FORMAT
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
The United States launched airstrikes on Iran’s nuclear facilities, including key enrichment sites at Fordow, Natanz, and Isfahan. The action, carried out without U.S. congressional approval, raised global concerns about a possible regional war escalation.
Background of the Attack
- The U.S. dropped 30,000-pound bombs targeting Iran’s underground nuclear facilities.
- This action follows months of failed diplomatic efforts to curb Iran’s nuclear programme.
- U.S. President Donald Trump claimed the strikes had destroyed three nuclear sites, though full damage is still being assessed.
Nuclear Safety and Global Reaction
- Iran and the UN nuclear watchdog (IAEA) confirmed there is no radioactive leak detected after the strikes.
- Iran’s Foreign Minister Abbas Araghchi called it an act of aggression, stating Iran now has the right to self-defence.
- Araghchi plans to consult Russia regarding a joint response.
Geopolitical and Strategic Implications
- Trump warned of further attacks if Iran retaliates, calling for peace or consequences.
- The move has increased tensions in West Asia and sparked fears of broader conflict.
- Acting without Congressional approval, this raises legal and constitutional questions in the U.S.
Conclusion
The U.S. airstrikes mark a major escalation in regional tensions. With diplomacy faltering, global powers now fear a larger crisis involving Iran, the U.S., and allies like Russia.
INDIA’S RISING OIL IMPORTS FROM RUSSIA AND U.S
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
Due to growing instability in West Asia, India has sharply increased oil imports from Russia and the U.S. in June 2025. This comes after U.S. airstrikes on Iranian nuclear sites, which disrupted oil supply routes from the Gulf region.
Reason for the Shift in Oil Imports
- India increased Russian oil purchases in June, surpassing the combined volume from West Asian countries like Saudi Arabia, Iraq, and Kuwait.
- The change was triggered by geopolitical tensions, especially the U.S.-Israel attack on Iranian nuclear facilities on June 13.
- Indian refiners are expected to import 2.2 million barrels per day (bpd) from Russia in June.
India’s Oil Import Patterns
- India is the third-largest oil importer and consumer globally.
- It imports about 5.1 million barrels of crude oil daily, which is refined into petrol, diesel, etc.
- Russian oil’s share in India’s imports has grown from less than 1% to around 40-44% post the Ukraine war.
Imports from the United States
- Oil imports from the U.S. also rose to around 380,000 bpd, a 28% increase from May.
- This diversification is part of India’s plan to reduce dependency on volatile West Asian suppliers.
Refiner Strategy and Backup Plans
- Indian refiners prefer Russian oil for its lower prices and easier payment terms.
- They are also open to sourcing oil from West Africa, Latin America, and even the U.S., despite higher transportation costs.
- This provides backup options in case of further disruptions in the Gulf.
Conclusion
India’s oil import strategy reflects its adaptability in a volatile geopolitical environment, balancing affordability, supply security, and diversification.
B-2 SPIRIT STEALTH BOMBER
TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU
The U.S. deployed its B-2 Spirit stealth bombers to carry out airstrikes on Iran’s nuclear sites, marking a major escalation in the West Asia crisis. These bombers are known for their ability to evade radar and carry powerful conventional and nuclear weapons.
About B-2 Spirit Stealth Bomber
- The B-2 Spirit is a long-range stealth bomber used by the United States Air Force.
- It was first flown in 1989 and entered service in 1993.
- Built by Northrop Grumman, it is one of the costliest aircraft, valued at around $2.1 billion each.
- Currently, 19 B-2 bombers are active in the U.S. fleet.
Key Features
- Designed for low visibility, it can bypass advanced enemy air defenses.
- Its flying-wing shape, radar-absorbing material, and low heat signature make it nearly invisible to radar.
- Its radar cross-section is just 0.001 square meters, about the size of a small bird.
- Operated by two crew members: a pilot and a mission commander.
- Powered by four jet engines, with a top speed of 1,010 km/h.
Range and Payload
- Can fly over 11,000 km without refuelling; with aerial refuelling, it can reach any global target.
- Payload of over 18,000 kg, capable of carrying both conventional and nuclear bombs.
- Uniquely able to carry the GBU-57A/B MOP, a 30,000-pound “bunker buster” bomb for targeting underground facilities.
Conclusion
The B-2 Spirit showcases America’s advanced air power, combining stealth, range, and heavy firepower, making it crucial in high-risk missions like recent Iran strikes.
OTTAWA CONVENTION
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
Finland’s Parliament has voted to exit the Ottawa Convention, citing rising security concerns from Russia. This decision allows Finland to potentially reintroduce anti-personnel landmines as part of its defence policy.
Ottawa Convention
- Also known as the Anti-Personnel Mine Ban Treaty or Mine Ban Convention.
- A global agreement to ban anti-personnel landmines and address their human impact.
- Adopted on 18 September 1997 in Oslo, Norway; came into effect in 1999.
What the Treaty Prohibits
- Use, production, stockpiling, and transfer of anti-personnel landmines.
- Parties must destroy stored landmines within four years of joining.
- Mined areas must be cleared within 10 years.
Membership and India’s Position
- 165 countries are part of the treaty.
- India is not a signatory, citing national security concerns.
Obligations for Member States
- Must never use or produce anti-personnel mines.
- Provide aid to mine victims, including their families and communities.
- Conduct mine risk education in affected areas.
- Support other countries in clearing mines and assisting survivors.
- Enforce the treaty through domestic laws or measures.
Conclusion
The Ottawa Treaty is a key global effort to eliminate landmines and protect civilians. Finland’s withdrawal highlights tensions between global disarmament goals and national security interests.