INDIA–EURASIAN ECONOMIC UNION (EAEU) FREE TRADE AGREEMENT (FTA) NEGOTIATIONS
TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU
India and the Eurasian Economic Union (EAEU) have agreed on Terms of Reference (ToR) to start negotiations for a Free Trade Agreement. This comes amid stalled trade talks with the US and rising American tariff threats on Indian goods.
About Eurasian Economic Union (EAEU)
- Nature: Regional economic integration organization with international legal personality.
- Established: Treaty on the Eurasian Economic Union, effective 2015.
- Members: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia.
- Headquarters: Moscow, Russia.
- Objectives:
- Free movement of goods, services, capital, and labor.
- Coordinate economic policies, modernize economies, enhance competitiveness.
- Promote stable growth and improve living standards.
Significance of EAEU FTA for India
- Market Access: Opens USD 6.5 trillion market for Indian exports, including textiles, pharmaceuticals, engineering goods, and electronics.
- Trade Diversification: Reduces dependence on US and EU markets amid tariff threats.
- Energy Security: Access to energy resources; Russia supplies 35–40% of India’s crude oil imports.
- Connectivity Boost: Complements International North-South Transport Corridor (INSTC) and Chennai–Vladivostok corridor, reducing transit time and logistics costs.
- MSME Opportunities: Expands prospects for small and medium enterprises in exports and technology collaborations.
Challenges in India–EAEU Engagement
- High Trade Deficit with Russia: Surged from USD 6.6 billion (2021) to USD 58.9 billion (2024–25), mainly due to hydrocarbon imports.
- Geopolitical Sensitivity: Trade with Russia may strain India’s relations with NATO and Western allies; US and EU sanctions complicate dealings.
- Domestic Industry Concerns: Cheap imports could threaten Indian manufacturers; safeguards may be needed.
- Low FTA Utilization: Currently around 25%, below global averages (70–80%).
- Non-Tariff Barriers: Complex customs procedures, bureaucratic delays, and regulatory hurdles.
Strategies to Strengthen Engagement
- Economic Cooperation Program: Implement 2025–2030 program with Russia; extend to all EAEU members covering energy, agriculture, industry, education, and culture.
- Diversify Export Portfolio: Focus on pharmaceuticals, textiles, machinery, services, and reduce hydrocarbon dependence.
- Financial Mechanisms: Promote local currency settlements (rupee-ruble) with sufficient liquidity.
- Multilateral Economic Outreach: Leverage BRICS, RIC (Russia-India-China), and regional trade blocs to diversify supply chains.
- Connectivity & Logistics: Enhance transport through INSTC, Northern Sea Route, and Chennai–Vladivostok corridor.
Conclusion
Negotiating an FTA with the EAEU can provide India with market diversification, energy security, and enhanced trade opportunities. Strategic planning, risk mitigation, and multilateral engagement will be critical for maximizing benefits while safeguarding domestic industries.
WOMEN-LED DEVELOPMENT IN INDIA: DRIVING ECONOMIC TRANSFORMATION
TOPIC: (GS3) ECONOMY: THE HINDU
India’s economic growth is increasingly driven by women through higher workforce participation, entrepreneurship, and financial inclusion. Empowering women has become central to achieving Viksit Bharat 2047 and inclusive development goals.
Women Driving India’s Economic Growth
- Workforce Participation: Female workforce rose from 22% (2017–18) to 40.3% (2023–24); unemployment fell from 5.6% to 3.2%. Rural female employment grew 96%, urban by 43%.
- Education & Employability: Graduate employability: 42% → 47.53% (2013–2024). Women with postgraduate qualifications saw Worker Population Ratio rise from 34.5% → 40%.
- Entrepreneurship & MSMEs: Women-led MSMEs nearly doubled from 1 crore (2010–11) → 1.92 crore (2023–24). Generated 89 lakh additional jobs for women.
- Financial Inclusion: Women receive 68% of MUDRA loans (₹14.72 lakh crore). 44% of PM SVANidhi beneficiaries are women street vendors.
- Gender Budgeting: Allocation increased 429% over a decade (₹0.85 lakh crore → ₹4.49 lakh crore), supporting women-led initiatives.
Significance of Women-Led Development
- Leadership & Agency: Shifts women from beneficiaries to decision-makers.
- Economic Growth: Bridging gender gap could increase GDP by 30%.
- Inclusive Development: Women’s participation enhances productivity, innovation, and social equity.
- Gender Equality: Reduces stereotypes and promotes intergenerational equality; India ranks 131/148 in the Global Gender Gap Report 2025.
Challenges
- Social Constraints: Patriarchy, unpaid domestic work, early marriage, and safety risks restrict mobility and career growth.
- Education & Skills: Female literacy at 65.4% (2011), below global average, limiting opportunities.
- Underrepresentation: Low participation in governance, corporate boards, and Parliament (<25% globally).
- Digital & Technological Divide: Limited access to internet and digital tools.
Measures to Strengthen Women-Led Development
- Childcare & Care Economy: National Crèche Grid, workplace crèches, paid maternity leave for informal workers.
- Infrastructure & Digital Inclusion: Gender-responsive budgeting for transport, sanitation, housing; expand digital literacy and rural internet access.
- Representation & Governance: Gender quotas in boards, panchayats, MSMEs; gender budgeting and incentives.
- Decentralised Planning: Gender Action Plans at Gram Panchayat/block/district levels with SHG and Mahila Sabha inputs.
Conclusion
Women are emerging as a central force in India’s economic transformation, from entrepreneurship to leadership roles. Ensuring their empowerment is key to achieving inclusive growth and Viksit Bharat 2047.
PRADHAN MANTRI JAN DHAN YOJANA: ELEVEN YEARS OF FINANCIAL INCLUSION
TOPIC: (GS3) ECONOMY: INDIAN EXPRESS
The Pradhan Mantri Jan Dhan Yojana (PMJDY) has completed 11 years (2014–2025), marking itself as the largest financial inclusion programme globally, with almost universal household banking coverage and more than 90% adult participation.
About PMJDY
- Launched in 2014, the scheme’s aim was to bring the unbanked population into the formal financial system.
- Provides zero-balance accounts, RuPay debit cards, insurance, pension facilities, and Direct Benefit Transfer (DBT) channels.
- Helped reduce dependence on informal moneylenders, a major source of debt for poor households.
Achievements in 11 Years
Account Growth
- Over 56 crore Jan Dhan accounts opened, compared to ~15 crore in 2015.
- Recognised as the largest financial inclusion drive in the world.
Women’s Participation
- Nearly 56% of accounts are owned by women, strengthening their role in financial decision-making.
Rural Outreach
- 37.5 crore accounts belong to rural and semi-urban regions.
- Network of 16.2 lakh “Bank Mitras” ensures doorstep banking in far-flung villages.
Deposits Growth
- Total deposits have risen to ₹2.68 lakh crore, nearly 17 times higher than 2015, reflecting real savings behaviour.
Digital Push
- More than 38 crore RuPay debit cards issued.
- PMJDY has boosted UPI and digital payments, embedding financial inclusion into the digital economy.
Impact of the Scheme
- DBT Efficiency: Subsidies for LPG, pensions, and pandemic relief were credited directly, minimising leakages and corruption.
- Crisis Management: Served as a lifeline during demonetisation (2016) and the Covid-19 pandemic by enabling quick cash transfers.
- Social Security Linkage: Accounts integrated with insurance schemes (PMJJBY, PMSBY) and Atal Pension Yojana, giving basic protection to informal workers.
- Banking Access: Nearly 100% villages now have a bank branch, correspondent, or post-bank access point within 5 km.
Challenges
- Dormant Accounts: Many remain inactive with no regular transactions.
- Credit Gap: Formal loans are still limited; beneficiaries often rely on microfinance or informal credit.
- Digital Divide: Poor smartphone penetration and low digital literacy restrict digital banking usage.
- Low Awareness: Many are unaware of insurance and pension benefits linked to Jan Dhan.
- Overdependence on DBTs: Usage remains subsidy-centric rather than for savings or investments.
Way Forward
- Revitalise Dormant Accounts: Conduct outreach campaigns and incentivise small savings.
- Expand Credit Access: Link Jan Dhan to microcredit and small-business loans.
- Improve Financial Literacy: Use local language campaigns, schools, and SHGs for awareness.
- Leverage Technology: Create voice-based and AI tools for low-literacy users.
- Broaden Social Security: Expand insurance and pension coverage for informal workers.
- Encourage Savings & Investments: Link deposits to small savings products, mutual funds, and other schemes.
Conclusion
PMJDY has transformed financial access in India, ensuring that subsidies and benefits reach households directly. The next phase should focus on credit empowerment, financial literacy, and long-term savings, turning PMJDY from a DBT channel into a driver of inclusive growth and financial security.
PROTECTING INDIA’S GERIATRIC POPULATION FROM RISING HEAT STRESS
TOPIC: (GS1) SOCIAL ISSUES: THE HINDU
A study has revealed that heat-related deaths among India’s elderly rose by 55% between 2000–04 and 2017–21, with states like Uttar Pradesh and Rajasthan being worst affected. This raises urgent concerns about the climate vulnerability of the ageing population.
Who are the Geriatric Population?
- Refers to people 65 years and above, who face age-related decline in immunity, metabolism, and adaptability.
- More prone to chronic illnesses, mobility issues, and heat stress.
India’s Elderly Demographics
- 2022: Elderly formed 10.5% (~14 crore people) of India’s population.
- 2050 Projection: Share will nearly double, surpassing the youth population.
- 71% live in rural areas, with weaker infrastructure and limited healthcare.
- Women outnumber men (71 million vs 67 million), and face higher vulnerability due to poverty and domestic roles.
Why are the Elderly More Vulnerable to Heat?
Biological Factors
- Reduced sweating and slower blood circulation hinder body cooling.
- Pre-existing diseases (heart, kidney, mental health) worsen risks.
Dehydration & Thirst
- Elderly often do not feel thirsty, leading to dehydration, kidney stress, and electrolyte imbalance.
Gender Dimensions
- Women: Prolonged exposure in poorly ventilated kitchens and caregiving stress.
- Men: Continue outdoor work in farming or construction without enough breaks or water.
Night-time Heat (Tropical Nights)
- High night temperatures prevent the body from recovering from daytime stress, straining heart and lungs.
Social & Economic Challenges
- Isolation delays medical attention.
- Poverty reduces access to cooling devices and safe housing.
Current Policy Gaps
- Heat Action Plans do not focus on the elderly.
- Data mismatch: NCRB and NDMA figures on heat deaths vary widely.
- Cooling technology like thermoelectric garments is unaffordable for poor rural elderly.
- Weak surveillance of urban heat islands and real-time mortality mapping.
- Limited acknowledgment of women’s specific vulnerabilities.
Solutions & Way Forward
Social Protection
- Subsidise cooling devices, water packs, and electricity support for poor elderly households.
Health System Measures
- Train ASHA workers and health staff to detect and treat heat stroke.
- Open temporary cooling centres in rural and urban areas.
Data & Research
- Ensure real-time heat mortality data.
- Encourage studies on gender, poverty, and health links with heat exposure.
Technology Access
- Promote low-cost cooling innovations with subsidies and production-linked incentives.
Coordination & Planning
- Ministries of Health, Urban Development, Environment, and Agriculture must coordinate to integrate elderly concerns in Heat Action Plans.
Early Warning Systems
- Develop a unified heat alert app combining IMD platforms (UMANG, MAUSAM, Meghdoot, Damini).
- Use local language social media alerts.
Long-Term Climate Strategy
- Push for renewables and low-carbon growth.
- Encourage eco-friendly housing with better ventilation for rural elderly.
Conclusion
India’s ageing population is growing rapidly at the same time that heatwaves are intensifying. Protecting the elderly requires elderly-specific heat action plans, affordable cooling solutions, better data, and stronger social protection systems to reduce climate-related health risks.
NATIONAL DESIGNATED AUTHORITY FOR CARBON MARKETS
TOPIC: (GS3) ECONOMY: THE HINDU
The Government of India has finalised a 21-member National Designated Authority (NDA) to facilitate and regulate India’s carbon market. This is a key step under Article 6 of the Paris Agreement to operationalise international carbon trading and meet India’s climate targets.
What is the NDA?
- Definition: A statutory body set up by the Ministry of Environment, Forest and Climate Change (MoEFCC) to oversee carbon market activities in India.
- Purpose: Regulate, approve, and monitor projects generating carbon credits and ensure compliance with both national and international climate commitments.
Composition
- Total 21 members, chaired by the Environment Secretary.
- Includes representatives from:
- External Affairs
- Ministry of Steel
- Ministry of Renewable Energy
- Ministry of Power
- NITI Aayog
- Multi-sectoral structure ensures policy alignment with domestic priorities and global obligations.
Key Functions
- Project Approval Evaluate and authorise projects generating Emission Reduction Units (ERUs).
- Eligibility Criteria Recommend activities that can participate in carbon trading, aligned with sustainability goals.
- Monitoring Update and revise eligible projects based on national priorities and climate commitments.
- Carbon Credit Use Approve ERUs for India to meet its Nationally Determined Contributions (NDCs).
- International Engagement Represent India in Article 6 mechanisms and facilitate cross-border credit trading.
Significance for India
- Supports NDCs Helps achieve India’s pledge to reduce emission intensity by 45% by 2030 (from 2005 levels).
- Encourages Clean Energy Promotes renewable energy and low-carbon projects through market incentives.
- Global Compliance Aligns India with Article 6 of the Paris Agreement, enabling cost-effective emission reduction through international carbon markets.
Article 6 of Paris Agreement
- Definition Provides rules for international carbon markets and emission credit trading.
- Purpose Helps countries meet climate targets by trading emission reductions, supporting sustainable development.
- Finalisation Rules agreed upon at COP29, Baku 2024, after years of negotiations.
Conclusion:
The NDA is India’s nodal body for carbon markets, bridging domestic climate action with international carbon trading under Paris Agreement frameworks.
DIGITAL SERVICES TAXES (DSTS)
TOPIC: (GS3) ECONOMY: PIB
Former US President Donald Trump has warned of imposing fresh tariffs on countries that levy Digital Services Taxes (DSTs), arguing they unfairly target American tech giants. This brings back debate over fair taxation of digital companies and international trade tensions.
What are Digital Services Taxes (DSTs)?
- Definition: A tax on revenue (not profit) earned by digital firms from services such as online ads, e-commerce platforms, and sale of user data.
- Applicability: Charged on income earned from users located in the taxing country, even if the company has no physical base there.
- Objective:
- Ensure digital firms contribute fairly to local tax revenues.
- Prevent tax avoidance and capture value created by local users.
Key Features
- Destination-based → Tax is linked to the user’s country, not the firm’s headquarters.
- Scope → Applies to large global firms crossing both global and local revenue limits (e.g., €750 million worldwide).
- Rate → Generally between 2% and 7.5% on covered services.
- Criticism → Viewed as discriminatory since most impacted companies (Google, Apple, Amazon, Meta) are US-based.
India’s Approach
- Equalisation Levy, 2016 → 6% tax on online advertising by foreign firms.
- Expansion in 2020 → 2% levy on e-commerce sales and services by non-resident firms.
- Recent Withdrawal:
- 2% e-commerce levy scrapped in Aug 2024.
- 6% online ad levy to end from April 2025 (Finance Act, 2025).
- Reason → India is aligning with the OECD-led global tax framework to avoid trade disputes and ensure uniform rules.
Significance
- Balances revenue needs of developing economies with global digital trade.
- Reduces risk of trade retaliation from the US.
- Moves India towards cooperative global taxation norms.
Conclusion
DSTs aim to tax digital companies fairly, but they spark trade tensions. India has now shifted to a global tax framework instead of unilateral levies.
PROJECT AAROHAN
TOPIC: (GS3) ECONOMY: THE HINDU
The National Highways Authority of India (NHAI) has introduced Project Aarohan, a scholarship and mentorship scheme to help the children of toll plaza workers continue their education. It aims to reduce socio-economic barriers in education.
About the Initiative
- Nature of the Program: A scholarship and mentorship plan for children of toll staff, mainly those from poor backgrounds.
- Launch: By NHAI in partnership with Vertis Infrastructure Trust.
- Implementation: Handled by SMEC Trust’s Bharat Cares.
Objectives
- Remove financial obstacles that prevent children from studying further.
- Ensure equal chances of accessing good education.
- Support and nurture talent among children of road infrastructure workers.
- Reduce socio-economic inequality through education.
Key Features
- Coverage: Benefits 500 students from Class 11 to graduation.
- Scholarship Support: Each student will get ₹12,000 annually during FY 2025–26.
- Higher Education Aid: 50 meritorious students seeking postgraduate or above studies will receive ₹50,000 each.
- Beyond Money: Mentorship programs, career counseling, skill development workshops, and regular performance monitoring.
- Funding: About ₹1 crore allocated for the first phase (July 2025 – March 2026).
- Application: Online process; students must provide income proof, caste certificate, academic records, and ID details.
Inclusivity Measures
- Priority will be given to:
- Girls
- First-generation learners
- Students from EWS, SC, ST, OBC, and minority communities
Significance
- Bridges educational gap for underprivileged groups.
- Promotes social equity through access to higher education.
- Creates opportunities for skill building and employability in the future.
Conclusion:
Project Aarohan reflects the government’s effort to link social welfare with infrastructure projects, ensuring inclusive development along with economic growth.
PROJECT 17A: INS HIMGIRI & INS UDAYGIRI
TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU
India has recently commissioned two advanced Project 17A stealth frigates, INS Himgiri and INS Udaygiri, as part of its naval modernization drive. These warships enhance India’s maritime capabilities to counter conventional and non-conventional threats in a “Blue Water” environment.
About Project 17A
- Definition: Project 17A is an indigenous program to build advanced multi-mission stealth frigates, succeeding the Project 17 (Shivalik-class) ships.
- Focus Areas: Stealth, advanced weaponry, sensors, and improved hull design to strengthen operational versatility.
- Purpose: Modernize the Indian Navy with technologically superior, indigenously designed warships capable of long-range maritime operations.
Key Features
- Stealth Design → Reduced radar and infrared signature for enhanced survivability.
- Weapon Systems:
- Supersonic BrahMos surface-to-surface missiles
- Barak-8 medium-range surface-to-air missiles
- LRSAM, torpedoes, rocket launchers
- Close-In Weapon Systems (CIWS)
- Sensors & Electronics → Advanced radars and Shakti Electronic Warfare Suite for situational awareness and defense.
- Integrated Platform Management System (IPMS) → Optimizes ship operations, power management, and crew coordination.
Ship Details
- INS Himgiri → First P-17A frigate, built by Garden Reach Shipbuilders & Engineers (GRSE).
- INS Udaygiri → Second P-17A frigate, built by Mazagon Dock Shipbuilders Ltd (MDL), also marks the 100th ship designed by Navy’s Warship Design Bureau.
- Legacy Names → Revives historic vessels: INS Udaygiri (1976) and INS Himgiri (1974), both of which contributed in operations like Pawan, Cactus, and Sahayata.
Significance
- Blue Water Capability → Operate across open oceans, protecting India’s maritime interests.
- Indigenization → Strengthens domestic shipbuilding, self-reliance, and technological expertise.
- Multi-Mission Role → Combats aerial, surface, and underwater threats efficiently, enhancing fleet versatility.
Conclusion
Commissioning of INS Himgiri and INS Udaygiri under Project 17A marks a major step in India’s naval modernization, boosting indigenous warship design, stealth capability, and operational readiness.