INDIAN RUPEE DEPRECIATION AMID U.S. TARIFFS
TOPIC: (GS3) ECONOMY: THE HINDU
The Indian rupee fell by 0.58% to ₹88.09 against the U.S. dollar after the U.S. imposed new tariffs on Indian goods. Analysts caution that the rupee may weaken further to ₹89.5–₹90 per dollar in the coming weeks.
Background of the Issue
- The U.S. has levied 25% penalty tariffs on Indian exports, sparking concerns of a trade war.
- Currency dealers initially waited to see if the Reserve Bank of India (RBI) would act to stabilise the rupee.
- Once it was clear that RBI did not intervene, traders began selling the rupee, triggering a sharp fall.
Factors Behind the Rupee’s Depreciation
- Lack of RBI Intervention: RBI chose not to step in immediately, possibly to allow natural market adjustments. Some analysts suggest RBI is using the weaker rupee as a tool to counter U.S. tariffs.
- Export Competitiveness: A weaker rupee makes Indian exports cheaper in dollar terms. This can help offset the adverse impact of U.S. tariffs by keeping Indian goods attractive abroad.
- Trade War Dynamics: In global trade disputes, currencies often become strategic tools. Allowing depreciation may shield exporters but increases import costs.
Implications of a Weakening Rupee
- Positive Impact: Boosts exports by making them more competitive. May partially offset losses from U.S. tariffs.
- Negative Impact: Increases import costs (e.g., crude oil, electronics). Fuels inflationary pressures in the domestic economy. Raises trade deficit if imports remain high.
Possible RBI Intervention
- Analysts expect RBI to act if the rupee crosses the ₹89.5 per dollar threshold.
- Likely measures: Selling foreign exchange reserves to curb volatility. Liquidity management to reduce speculative selling.
Conclusion
The rupee’s fall reflects global trade tensions and India’s currency management strategy. While depreciation may temporarily support exports, unchecked weakening risks inflation, higher import bills, and financial instability. A careful balance between market-driven adjustment and RBI intervention will be crucial in the weeks ahead.
INDUSTRIAL GROWTH AND JOB LOSS CONCERNS
TOPIC: (GS3) ECONOMY: THE HINDU
India’s Index of Industrial Production (IIP) showed a growth of 3.5% in July 2025, the highest in four months, even as the U.S. imposed 25% penalty tariffs on Indian exports, raising concerns of job losses in labour-intensive industries.
Key Highlights of July IIP Data
- Overall Growth: Industrial output rose 3.5% (July 2025) vs 5% in July 2024.
- Manufacturing Recovery: Growth driven by capital goods (+5%), intermediate goods (+5.8%), and infrastructure goods (+11.9%).
- Sectoral Performances:
- Basic metals: +12.7%
- Electrical equipment: +15.9%
- Cement & minerals: +9.5%
Positive Rural Demand Signals
- Consumer durables (+7.7%) and non-durables (+0.5%) showed growth after nine months of contraction.
- Aided by retail inflation at 1.55% and food disinflation (-0.8%) in July.
- However, non-durables (food staples & essentials) had been negative in 8 of the last 12 months, highlighting fragile recovery.
Weak Spots in the Economy
- Mining Sector: Contracted -7.2% in July, fourth straight month of decline. Floods in coal-rich States (Jharkhand, Odisha, Chhattisgarh, WB) disrupted output.
- Electricity Generation: Slight recovery (0.6% in July vs -1.2% in June). But much lower than 7.9% growth in July 2024.
- Tariff-Hit Export Sectors: Textiles (-1.4%), leather (-3%), and apparels (+3.2%) are showing stress. These sectors are labour-intensive and dominated by MSMEs, raising fears of job losses.
Concerns Ahead
- U.S. tariffs on Indian goods may hurt exports, especially in labour-heavy sectors.
- Rising stress could translate into large-scale unemployment.
- Without protecting jobs and consumption demand, the gains from low inflation may not sustain growth.
Conclusion
While industrial growth shows signs of recovery and rural demand is reviving, the real challenge lies in cushioning job losses in MSME-heavy sectors. Addressing both liquidity needs and the human fallout will be critical to ensure stable consumption and protect India’s economic momentum.
THE NEW OIL FOR INDIA
TOPIC: (GS3) ECONOMY: THE HINDU
India, which imports over 85% of crude oil and 50% of natural gas, faces growing vulnerabilities due to geopolitical conflicts, supply chain disruptions, and energy market shocks. The Israel-Iran ceasefire has revived debates on the urgency of energy sovereignty for India.
Background
- Energy dependence poses serious economic and security risks.
- Russia has become India’s largest crude supplier post-Ukraine war, but overreliance on a single partner increases vulnerability.
- Global flashpoints — from the 1973 oil embargo to the 2022 Russia-Ukraine war — show that every major energy crisis has reshaped policies worldwide.
Lessons from Global Energy Shocks
- 1973 Oil Embargo: Triggered oil price spike → led to strategic petroleum reserves.
- 2011 Fukushima Disaster: Raised doubts on nuclear but later revived its importance.
- 2021 Texas Freeze: Exposed limits of fragile energy systems.
- 2022 Russia-Ukraine War: Europe’s dependence on Russia ended abruptly → LNG prices soared.
- 2025 Iberian Blackout: Over-reliance on renewables without backup destabilized the grid.
India’s Path to Energy Sovereignty
- Coal Gasification: 150+ billion tonnes of reserves. Use for syngas, methanol, hydrogen, and fertilizers with carbon capture technologies.
- Biofuels: Ethanol blending programme saved forex and boosted farmers’ income (~₹92,000 crore transferred). SATAT scheme, compressed biogas + bio-manure → improves soil health and reduces pollution.
- Nuclear Energy: Current capacity stagnant at 8.8 GW. Revive thorium roadmap, expand small modular reactors, secure uranium supply.
- Green Hydrogen: Target: 5 million tonnes annually by 2030. Focus on indigenous electrolyser manufacturing & storage systems for self-reliance.
- Pumped Hydro Storage: Provides grid stability & inertia missing in renewables. India’s geography allows large-scale pumped hydro projects.
Significance of Energy Sovereignty
- Shields economy from oil shocks.
- Reduces forex outflow (oil imports = 25% of merchandise imports).
- Strengthens national security by lowering reliance on conflict-prone regions.
- Ensures a resilient, affordable, and clean energy future.
Conclusion
The future will not be defined by oil discoveries but by nations that secure their energy independently. For India, building sovereignty through coal gasification, biofuels, nuclear, hydrogen, and pumped hydro is not just climate policy — it is a survival strategy.
ISRO TECHNOLOGIES TRANSFERRED TO PRIVATE FIRMS
TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU
The Indian National Space Promotion and Authorisation Centre (IN-SPACe) recently facilitated the transfer of five ISRO-developed technologies to private firms to boost self-reliance, commercialisation, and wider industrial use.
About the Technology Transfer
- Aim: To expand the use of space technologies beyond ISRO and enable their application in biomedical, automotive, energy, and industrial sectors.
- Transferred Technologies:
- Biomedical use – Low-Temperature Co-Fired Ceramic (LTCC) Multi-Chip Module (for RT-PCR kit production).
- Solar panel bonding – RTV Silicone Single-Part Adhesive (SILCEM R9).
- Industrial applications – Three more technologies handed over for manufacturing and engineering purposes.
India’s Position in the Space Economy
- Current size: $8 billion (about 2–3% of global space economy).
- Target: 8% share by 2030 and 15% by 2047.
- Over 400 private space companies, making India the 5th largest hub globally.
- Startups: Grown from 1 in 2022 to nearly 200 in 2024.
- Funding: Reached $124.7 million in 2023 (up from $67.2 million in 2021).
- Example: Skyroot launched Vikram-S, India’s first private rocket.
Regulatory and Institutional Framework
- IN-SPACe – Single-window agency under Dept. of Space for promotion & regulation of private space activities.
- NewSpace India Ltd (NSIL) – Commercial arm of ISRO, handling technology transfer and space asset commercialization.
Significance of Private Participation
- Cost efficiency – Competition reduces costs of launches and satellite production.
- Innovation push – Encourages R&D and new business models.
- Commercialisation – Expands applications in agriculture, navigation, communication, disaster management, etc.
- Employment & Atmanirbhar Bharat – Generates jobs and boosts indigenous capabilities.
- Integration into global value chains – Enhances India’s role in international collaborations.
Challenges
- High capital requirement may limit participation to big corporations.
- Technical expertise gap among startups.
- IPR protection critical for encouraging innovation.
- Global competition from SpaceX, Blue Origin, and other established giants.
Steps by Government
- Space Reforms (2020) – Opened the sector for private players.
- Indian Space Policy 2023 – Provided a level playing field for Non-Government Entities (NGEs).
- FDI policy reform – Allowed 100% FDI in space sector (with automatic/government route caps).
- SpIN (SpaceTech Innovation Network) – Public-private platform for startups.
- Venture Capital Fund – ₹1000 crore fund under IN-SPACe for space startups.
- Vision 2047 – Goals include Bharatiya Antariksh Station (2035), human spaceflight (2027), Chandrayaan-4 (2027), Venus Mission (2028).
Way Forward
- Encourage joint ventures between ISRO, academia, and private firms.
- Strengthen IPR frameworks and export promotion.
- Focus on manufacturing in India to reduce dependence on imports.
- Enhance global collaborations while maintaining strategic autonomy.
Conclusion:
ISRO’s technology transfer is driving India’s move towards self-reliance and greater private sector participation, boosting startups and reducing import dependence. This shift strengthens India’s role in the global space economy, though challenges like costs and competition remain.
DEFORESTATION AND HEAT-RELATED MORTALITY IN TROPICAL REGIONS
TOPIC: (GS3) ENVIRONMENT: THE HINDU
A recent study in Nature Climate Change reported that deforestation-linked warming led to nearly 28,000 additional heat-related deaths annually across tropical regions between 2001 and 2020.
Deforestation in the Tropics
- Tropical forests in South America, Africa, and Asia are rich in biodiversity and act as major carbon sinks.
- Between 2001 and 2020, 1.6 million sq. km of tropical forests were lost:
- South & Central America: 7.6 lakh sq. km
- Southeast Asia: 4.9 lakh sq. km
- Africa: 3.4 lakh sq. km
Causes of Deforestation
- Commercial agriculture – Soy, palm oil, cattle ranching.
- Logging and timber trade – Legal & illegal.
- Infrastructure projects – Roads, dams, mining.
- Subsistence activities – Firewood collection, shifting cultivation.
Impacts
- Climate impact – Release of stored carbon dioxide accelerates global warming.
- Local heat rise – Loss of transpiration (natural cooling) increases temperatures.
- Biodiversity loss – Species extinction, ecosystem imbalance.
- Human health – Nearly 28,300 deaths annually due to heat stress; Southeast Asia worst affected.
- Socio-economic loss – Affects livelihoods of forest-dependent communities.
Global & Indian Efforts
- Global:
- UN-REDD (2008), Paris Agreement (2015), Glasgow Declaration (2021).
- Amazon Fund for conservation projects.
- India:
- Green India Mission (NAPCC).
- Compensatory Afforestation Fund Act, 2016.
- Eco-Sensitive Zones around protected areas.
- Joint Forest Management with local communities.
Way Forward
- Strengthen international finance & technology support.
- Include health risks of deforestation in policy debates.
- Empower local and indigenous communities in forest governance.
- Adopt real-time monitoring (e.g., Global Forest Watch, FSI satellite surveys).
Conclusion:
Deforestation is no longer just an environmental concern but a direct human survival challenge, driving heat-related deaths in vulnerable tropical regions. Urgent global and local action is needed to balance development with forest conservation for climate and health security.
EXTENDED RANGE ATTACK MUNITIONS (ERAM) MISSILES
TOPIC: (GS3) DEFENCE: THE HINDU
The United States has cleared the sale of 3,350 Extended Range Attack Munitions (ERAM) to Ukraine. This decision comes amid the ongoing Russia–Ukraine conflict, strengthening Ukraine’s long-range strike capacity.
About ERAM
- Type: Advanced, air-launched, precision-strike missile.
- Purpose: Designed to neutralize high-value targets such as supply hubs, command centers, and critical military infrastructure.
Key Features
- Range: Capable of hitting targets between 240 km to 450 km.
- Warhead: Equipped with a 500-pound warhead for powerful strikes.
- Accuracy: Uses GPS, inertial navigation, and terminal seeker systems, ensuring precision within 10 meters, even under hostile electronic warfare.
- Adaptability: Can be launched from Western aircraft such as F-16s. Can also be retrofitted onto Soviet-era fighter jets, expanding deployment options.
Strategic Importance
- For Ukraine: Enhances deep-strike capability, including into Crimea and other occupied territories. Provides deterrence against Russian logistics and command structures.
- For the U.S. & Allies: Reinforces military aid to Ukraine. Strengthens NATO’s indirect strategic posture in the conflict.
Concerns & Challenges
- Escalation Risks: Longer strike ranges may increase tensions with Russia.
- Dependence on Western Support: Ukraine’s operational capacity remains tied to foreign military supplies.
- High Costs: Advanced munitions are expensive to sustain in prolonged conflict.
Conclusion:
ERAM missiles represent a major step in Ukraine’s ability to conduct precision deep strikes, but they also raise concerns over conflict escalation and long-term sustainability.
FOREIGNERS AND RIGHT TO LIBERTY UNDER ARTICLE 21
TOPIC: (GS2) INDIAN POLITY: THE HINDU
The Punjab and Haryana High Court granted bail to a Bangladeshi woman charged with forgery and illegal stay. The Court ruled that Article 21 of the Indian Constitution extends to foreigners as well, ensuring their right to personal liberty.
Key Highlights of the Judgment
- The Court held that the term “person” in Article 21 includes both citizens and non-citizens.
- Prolonged detention of foreigners without the ability to provide sureties can lead to serious injustice.
- Bail conditions must not be so strict that they effectively deny freedom to undocumented migrants.
- The State has a duty to safeguard liberty and ensure that any restriction is only through due process of law.
Article 21 of the Constitution
- States: “No person shall be deprived of his life or personal liberty except according to procedure established by law.”
- Protects both life and personal liberty.
- Covers not only survival but also living with dignity, livelihood, shelter, and a safe environment.
Important Judicial Interpretations of Article 21
- A.K. Gopalan v. State of Madras (1950): Liberty was seen narrowly as freedom from unlawful arrest and detention.
- R.C. Cooper v. Union of India (1970): Personal liberty linked with freedoms under Article 19.
- Maneka Gandhi v. Union of India (1978): Expanded Article 21 to mean the right to live with dignity.
- Olga Tellis v. Bombay Municipal Corporation (1985): Recognized right to livelihood as part of life.
- Vishaka v. State of Rajasthan (1997): Safe working environment declared a fundamental right.
- K.S. Puttaswamy v. Union of India (2017): Recognized right to privacy as a fundamental right.
- Common Cause v. Union of India (2018): Legalized passive euthanasia, affirming right to die with dignity.
Significance of the Ruling
- Reinforces the human rights approach in Indian constitutional law.
- Clarifies that basic rights are not confined to citizens but extend to every individual in India.
- Protects vulnerable groups like migrants, refugees, and stateless persons from harsh State action.
Conclusion
The judgment highlights that Article 21 is universal in nature, safeguarding liberty for all persons, irrespective of nationality. It strengthens India’s image as a constitutional democracy committed to human dignity and justice.
CLASSGPT: HOW AI IS RESHAPING CAMPUSES
TOPIC: (GS3) SCIENCE AND TECHNOLOGY: THE HINDU
Artificial Intelligence (AI), including tools like ChatGPT and Gemini, is increasingly being used in Indian higher education. Universities are exploring ways to integrate AI into teaching and learning while maintaining academic integrity and critical thinking.
AI in Indian Campuses
- Student Usage: IIT Delhi survey (2024) showed 80% of students use AI regularly, some using paid versions.
- Faculty Usage: Around 77% of teachers use AI for summarizing papers, making slides, or drafting communication.
- Motivation: Simplifying concepts, creating summaries, mind maps, and simulating scenarios.
- Concerns: AI can make mathematical errors, flawed coding, and misunderstand context.
Challenges for Academic Integrity
- Blurred Lines: Students struggle to decide if AI use is cheating or time-saving.
- Plagiarism: IIT Delhi recommended revising plagiarism policies to require disclosure of AI use.
- Critical Thinking: Faculty fear students may accept AI answers blindly.
Institutional Responses in India
- Policy Innovation:
- IIT Delhi: AI workshops, integration into courses, campus-wide licenses.
- IIIT Delhi: 90% exams, 10% assignments model.
- IIM Ranchi: Responsible AI use rubric.
- Shiv Nadar University: Five-level AI assessment scale from prohibition to autonomy.
- Ashoka University: AI literacy and ethics courses.
- Strict Resistance: Some institutions like Delhi University enforce “No AI” rules for assignments.
Pedagogical Experiments
- Classroom Integration: Automating routine tasks (e.g., code generation) to focus on problem-solving.
- Assessment Innovations: AI-assisted viva, project-based evaluation, and scenario testing to ensure understanding.
- Ethics & Literacy: AI courses introduced to sensitize students on responsible usage.
- Balanced Approach: AI used after core concepts, ensuring critical thinking is not outsourced.
Global Perspectives
- USA: Princeton provides ChatGPT licenses; Oxford requires disclosure, professors decide usage.
- Australia: TEQSA guidelines allow AI with mandatory disclosure; oral exams returning.
- UK: Pilot projects like TeacherMatic to integrate AI in learning.
Conclusion
AI is permanently entering Indian education, and the challenge is to regulate, integrate, and use it ethically. Proper integration can make AI a tool for higher-order learning rather than a threat to critical thinking, shaping India’s future knowledge economy.