SHANGHAI COOPERATION ORGANISATION
1. Context
2. About Shanghai Cooperation Organisation
- The Shanghai Cooperation Organisation (SCO) is a Eurasian political, economic, international security and defence organisation.
- It is the world's largest regional organization in terms of geographic scope and population, covering approximately 60% of the area of Eurasia, and 40% of the world's population. Its combined GDP is around 20% of global GDP.
- The SCO was founded in 2001 by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.
2.1. Structure
The SCO has several bodies that oversee its activities, including
- The Council of Heads of State, which is the supreme decision-making body of the SCO.
- The Council of Heads of Government, which is responsible for overseeing the implementation of the decisions of the Council of Heads of State.
- The Council of Foreign Ministers, which is responsible for coordinating the foreign policies of the SCO member states.
- The Regional Anti-Terrorist Structure (RATS), which is responsible for combating terrorism, separatism and extremism in the SCO region and
- The SCO Secretariat, which is responsible for the day-to-day running of the organization.
2.2. Members
- The SCO has eight full members China, India, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan.
- It also has six observer states Afghanistan, Belarus, Iran, Mongolia, Nepal and Sri Lanka.
- And six dialogue partners Armenia, Azerbaijan, Cambodia, Egypt, Qatar and Saudi Arabia.
2.3. Goals
- Political and security cooperation, including the fight against terrorism, separatism and extremism
- Economic cooperation, including trade, investment, energy and transportation
- Cultural and humanitarian cooperation and
- Coordination of positions on major international issues.
3. Criticism
- The SCO has been criticized by some for being a tool of Chinese and Russian imperialism.
- However, the organization has also been praised for its role in promoting stability and security in Central Asia.
4. The Way Forward
- The SCO has been expanding its membership in recent years, and it may continue to do so in the future.
- The organization is seen by some as a potential rival to the North Atlantic Treaty Organization (NATO), and its growing influence is being watched closely by the United States and its allies.
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For Prelims: SCO, NATO, India, Central Asia, United States, China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, terrorism,
For Mains:
1. Examine the potential challenges and opportunities for India as a full member of the SCO, highlighting its implications for India's political, economic, and security interests. (250 Words)
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Previous Year Questions
1. Shanghai Cooperation Organisation (SCO) Heads of State Summit was held on 10th November, 2020 in the video conference format. The Summit was hosted by: (OPSC OAS 2021)
A. Russia B. India C. Kazakhstan D. Uzbekistan
Answer: A
2. The Summit of the Shanghai Cooperation Organisation (SCO) was hosted by which country from 15-16 September 2022? (Rajasthan CET 2023)
A. Kazakhstan B. Tajikistan C. Uzbekistan D. India
Answer: C
3. The area known as 'Golan Heights' sometimes appears in the news in the context of the events related to (UPSC 2015)
A. Central Asia B. Middle East C. South-East Asia D. Central Africa
Answer: B
4. Siachen Glacier is situated to the (UPSC 2020)
A. East of Aksai Chin B. East of Leh C. North of Gilgit D. North of Nubra Valley
Answer: D
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NUCLEAR TECHNOLOGY
- Nuclear technology stands out as a transformative and often debated advancement in the modern era. It centers on manipulating atomic nuclei through two main processes: nuclear fission and nuclear fusion.
- In nuclear fission, a large atomic nucleus breaks apart into smaller nuclei, frequently accompanied by radioactive decay, where unstable heavy elements gradually transform into lighter ones.
- Conversely, nuclear fusion involves the combination of two lighter nuclei to form a heavier nucleus, often described as a constructive or generative reaction.
- Both fission and fusion release tremendous amounts of energy. Although nuclear fusion is still largely confined to experimental research, nuclear fission has been widely utilized since its discovery in 1938 by Otto Hahn and Fritz Strassmann.
- Its earliest and most impactful use was in the development of nuclear weapons by the United States under the Manhattan Project, employing elements like uranium and plutonium.
- These weapons were deployed during the bombings of Hiroshima and Nagasaki in 1945, marking the onset of what came to be known as the atomic or nuclear age
3. Nuclear technology in various sectors
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The catastrophic devastation experienced by Japan during World War II spurred a global movement to channel nuclear technology toward peaceful and beneficial uses. In today’s world, nuclear technology finds itself at a pivotal juncture—while it offers significant advantages, concerns over its weaponization and potential misuse remain pressing. The major areas where nuclear technology proves beneficial include:
- Energy and industrial use – Nuclear energy is a dependable, long-term source of electricity that contributes to energy security while maintaining a low carbon footprint. As per the International Atomic Energy Agency’s (IAEA) 2024 report, nuclear power capacity worldwide reached 392 gigawatts (GW) by the end of 2023, generated through nearly 440 operational reactors. Beyond electricity, nuclear power supports various industrial activities, including district heating systems and seawater desalination.
- Agriculture and food production – Nuclear techniques contribute to enhanced agricultural productivity and food security. They are used for the early diagnosis of animal diseases, better soil and water resource management, and environmentally sustainable pest control strategies like the Sterile Insect Technique. Additionally, crop irradiation helps improve resistance to diseases and ensures the safety of food products.
- Healthcare advancements – The use of nuclear science in medicine has significantly strengthened healthcare systems. Tools like PET (Positron Emission Tomography) and SPECT (Single Photon Emission Computed Tomography) are pivotal for medical imaging, while radiotherapy and radioisotope therapies are essential for targeted cancer treatment and management.
- Defense and strategic balance – In the defense domain, nuclear capabilities are key to deterrence strategies, supporting geopolitical stability and acting as a tool for maintaining strategic balance among nations. Their very existence reduces the chances of full-scale or nuclear wars due to the principle of mutually assured destruction.
- Environmental and climate impact – Due to its low greenhouse gas emissions, nuclear energy is recognized as an important contributor to global climate objectives. Acknowledging this, 22 countries (later rising to 31) signed a declaration at COP 28 to triple nuclear energy production by 2050. Moreover, nuclear power delivers high energy output with minimal land usage compared to several other renewable sources
- Global efforts to regulate nuclear technology began in 1957 with the creation of the International Atomic Energy Agency (IAEA), which serves as a platform for promoting the peaceful application of nuclear science and technology.
- A major milestone followed in 1970 with the implementation of the Nuclear Non-Proliferation Treaty (NPT), which is centered around three key pillars: preventing the spread of nuclear weapons, encouraging nuclear disarmament, and fostering the peaceful use of nuclear energy.
- Under the NPT, Non-Nuclear Weapon States (NNWS) are assured the right to pursue nuclear energy for peaceful uses, provided they refrain from developing or acquiring nuclear arms.
- Another significant international agreement is the Comprehensive Nuclear-Test-Ban Treaty (CTBT), adopted in 1996, which prohibits all nuclear explosions across all environments, whether for civilian or military purposes.
- Further strengthening the legal framework, the Treaty on the Prohibition of Nuclear Weapons came into force in 2021. It is the first legally binding international treaty to comprehensively ban nuclear weapons, covering their development, testing, production, acquisition, stockpiling, and use, including any threats of use.
- Other important non-proliferation mechanisms include the Zangger Committee—also known as the NPT Exporters Committee—which maintains a ‘trigger list’ of sensitive nuclear materials requiring safeguards, and the Nuclear Suppliers Group (NSG), formed in 1975. The NSG is a consortium of nuclear-exporting nations working together to curb nuclear proliferation by regulating the export of nuclear-related materials and technologies
- India launched its nuclear energy programme in 1954 with a distinctive three-phase plan tailored to maximize the efficient use of its limited uranium resources and abundant thorium deposits through progressive nuclear technologies.
- The programme's first phase relies on Pressurised Heavy Water Reactors (PHWRs), which operate on natural uranium. The second phase introduces Fast Breeder Reactors (FBRs), using plutonium and uranium-238 derived from reprocessed spent fuel.
- The final phase envisions advanced nuclear reactors that will primarily utilize thorium, aiming to establish long-term energy independence for the country.
- India has successfully commercialized the first phase with operational PHWRs. The second phase was officially launched in 2024 with the commissioning of the Prototype Fast Breeder Reactor (PFBR) at Kalpakkam in Tamil Nadu. This reactor is expected to use a combination of thorium and uranium, tapping into India's substantial thorium reserves.
- In the Union Budget 2025–26, the government unveiled the ‘Nuclear Energy Mission for Viksit Bharat’ and allocated ₹20,000 crore towards its implementation. A key focus of the mission is the development of Small Modular Reactors (SMRs), which are intended to help the country reach its ambitious target of 100 GW nuclear power capacity by 2047 in a more secure and environmentally sustainable manner.
- To advance this goal, the government is fostering partnerships with the private sector and strengthening international civil nuclear cooperation with nations like the United States, Russia, and France.
- India has put in place a robust legal and institutional structure to oversee the use of nuclear technology. As per the Indian Constitution, 'atomic energy' is listed under the Union List, granting the central government sole authority to legislate in this domain.
- The Department of Atomic Energy (DAE) was set up in 1954 and functions under the supervision of the Atomic Energy Commission, which serves as the principal policymaking body for nuclear affairs in the country.
- To further solidify regulatory control, the Atomic Energy Act of 1962 replaced its 1957 predecessor. This legislation empowers the central government to oversee all aspects of atomic energy, including its production, development, and disposal.
- The Act also authorizes the government to formulate rules and establish agencies for its effective implementation.
- Using these legislative powers, the government has enacted regulations focusing on radiation safety and nuclear waste disposal. It also created the Atomic Energy Regulatory Board (AERB), which is responsible for monitoring and ensuring nuclear safety standards across the country.
- Additionally, the Nuclear Power Corporation of India Limited (NPCIL) handles the planning, building, and operation of nuclear power stations. Recognizing the risks involved in nuclear activities, the government passed the Civil Liability for Nuclear Damage Act in 2010. This law enforces strict liability on nuclear operators, holding them accountable for any damage caused, irrespective of fault
While nuclear technology is often praised for being a clean energy source with multiple advantages, it also presents several critical challenges. Incidents such as the Chernobyl and Fukushima disasters highlight the importance of maintaining rigorous safety standards. Additionally, issues like health hazards from uranium mining and the long-term management of radioactive waste continue to pose serious concerns.
In countries like India, the application of nuclear technology in areas such as agriculture and healthcare is still in its early stages and demands greater investment in research and innovation. However, with the implementation of well-framed policies, robust safety mechanisms, and international collaboration, nuclear energy can be effectively utilized to address global energy needs and contribute to scientific and technological advancement in a responsible and sustainable way.
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Previous Year Questions 1. To meet its rapidly growing energy demand, some opine that India should pursue research and development on thorium as the future fuel of nuclear energy. In this on text, what advantage, does thorium hold over uranium? (UPSC 2012)
Which of the statements given above is/are correct? (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3 2. Which among the following has the world’s largest reserves of Uranium? (UPSC 2009) (a) Australia Answers: 1-D, 2-A |
Source: Indianexpress
STRAIT OF HORMUZ
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The Strait of Hormuz is a strategically significant and narrow maritime passage situated between Iran and Oman, serving as a link between the Persian Gulf, the Gulf of Oman, and the Arabian Sea. The U.S. Energy Information Administration (EIA) has labeled it as the world’s most vital oil transit chokepoint, through which nearly 20% of global liquid petroleum fuels and a substantial portion of LNG trade pass. In May, more than 45% of India’s crude oil imports were estimated to have transited through this strait. Given that India is the third-largest consumer of crude oil globally and imports over 85% of its oil needs, the strait plays a crucial role in its energy security.
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Data from the commodity analytics firm Kpler indicates that, as of June, India has been importing over 2.2 million barrels per day (bpd) of crude oil from Russia, which constitutes more than 41% of its total oil imports.
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While oil imports from the U.S. have shown a steady rise, supplies from West Asian nations such as Iraq, Saudi Arabia, the UAE, and Kuwait have remained relatively consistent. Many of these shipments were likely planned prior to the recent escalation in tensions between Israel and Iran, and therefore, may not reflect the impact of the current geopolitical developments.
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Over the past two to three years, India has notably adjusted its oil import strategy. Russia has emerged as India’s top crude supplier, overtaking traditional exporters from West Asia. Importantly, Russian oil bypasses the Strait of Hormuz, as it is mainly transported via alternative sea routes like the Suez Canal and Red Sea, and sometimes through the Cape of Good Hope or Pacific Ocean routes.
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India’s current oil procurement approach already demonstrates a diversified and risk-mitigated strategy, especially in light of uncertainties in West Asian oil routes, with Russian crude now making up the largest share of India’s import basket.
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After recent U.S. air strikes targeting Iranian nuclear sites, Iran’s parliament passed a resolution on Sunday advocating the closure of the Strait of Hormuz, a vital corridor for global oil transportation. The final decision on this move now lies with Iran’s Supreme National Security Council.
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Although Iran has repeatedly issued threats in the past to shut the strait, it has never acted on them. Even in the present context, industry analysts consider the likelihood of an actual blockade to be low. Nevertheless, the increased risk perception surrounding the potential closure is expected to trigger global alarm, including in India, by raising concerns over the security of oil and gas supplies and potentially driving up global energy prices.
- The Israel-Iran conflict poses a significant threat to global oil and gas flows due to the geopolitical sensitivity and strategic location of the region. At the heart of this issue lies the Strait of Hormuz—a narrow but crucial maritime passage through which nearly 20% of the world’s petroleum and a substantial share of liquefied natural gas (LNG) are transported.
- Iran borders this strait and has, over the years, repeatedly threatened to block it during periods of heightened tension, including in response to military actions or sanctions.
- When hostilities between Israel and Iran escalate—such as through air strikes, proxy conflicts, or cyber warfare—it increases the likelihood of retaliation from Iran that could involve disrupting maritime traffic in the Strait of Hormuz.
- Even if Iran does not fully close the strait, the mere threat or perception of such an action is enough to cause volatility in global energy markets. Tanker insurance rates rise, shipping routes are reconsidered, and countries heavily dependent on oil imports, like India, become increasingly vulnerable to supply disruptions and price shocks.
- Furthermore, any military conflict in this region risks damaging key infrastructure such as refineries, pipelines, or export terminals in the broader West Asian region.
- This would constrain oil production and distribution, affecting both the availability and price of crude oil and gas worldwide. Global markets respond quickly to these risks, often resulting in immediate spikes in prices due to concerns over supply security.
- In summary, the Israel-Iran conflict amplifies the risk to global oil and gas flows by potentially destabilizing a region that is central to global energy supply chains. It heightens fears of supply disruptions, increases market speculation, and threatens the economic stability of energy-importing countries, making it a matter of both geopolitical and economic concern
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For Prelims: Strait of Hormuz, Persian Gulf, Energy Information Administration (EIA), liquefied natural gas (LNG)
For Mains: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests.
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Previous Year Questions
1.Which one of the following straits is nearest to the International Date Line? (UPSC CSE 2008) (a) Malacca Strait (b) Bering Strait (c) Strait of Florida (d) Strait of Gibraltar Answer (b) The International Date Line (IDL) roughly follows the 180° longitude, which lies in the Pacific Ocean, deviating slightly to accommodate international boundaries. The Bering Strait lies between Russia and Alaska, and it is very close to the 180° meridian, making it the closest strait to the International Date Line. Here's why the other options are incorrect:
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PARLIAMENTARY ESTIMATE COMMITTEE
- Parliamentary committees serve as essential mechanisms to address the structural and technical challenges faced by large legislative bodies. Independent India adopted the committee system from the British Parliament and adapted it to suit the functioning of its own expansive legislature by introducing innovative methods to handle complex and voluminous tasks.
- The roots of India’s committee system can be traced back to the colonial period, with the establishment of the first parliamentary committee—the Public Accounts Committee (PAC)—in 1921, following the Government of India Act of 1919, also known as the Montford Reforms.
- Although the Constitution does not explicitly outline details regarding the structure, duration, or functioning of these committees, their legitimacy stems from Article 105, which outlines the privileges of Members of Parliament, and Article 118, which empowers Parliament to regulate its procedures and business through rules.
- The Rules of Procedure of the Lok Sabha provide the framework for setting up these committees. They may be appointed or elected by the House or nominated by the Speaker or Chairman, and they function under their guidance. Reports are submitted either to the House or directly to the Speaker/Chairman.
- Parliamentary committees enable legislators to dedicate focused time and attention to specific issues, allowing for detailed analysis. These bodies often consult experts and engage relevant stakeholders, encouraging a participatory approach that helps members from different political affiliations to find common ground on otherwise contentious matters
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The Estimates Committee is a Financial Standing Committee comprising a maximum of thirty members, who are elected annually by the Lok Sabha through a system of proportional representation using the single transferable vote method.
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Ministers are not eligible to be elected to this committee. In case a sitting member of the committee is appointed as a minister, their membership automatically ends from the date of their appointment.
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The committee’s tenure is limited to one year. As per Rule 312 of the Lok Sabha, the committee is permitted to examine budget estimates periodically throughout the financial year and submit reports to the House as the review progresses. It is not mandatory for the committee to assess the complete set of estimates in a single financial year.
- Recommend potential cost savings, organizational improvements, administrative reforms, or enhancements in efficiency that align with the objectives behind the estimates;
- Propose alternative policy measures aimed at improving administrative efficiency and reducing expenditure;
- Assess whether the allocated funds are being utilized effectively, within the boundaries of the policies reflected in the estimates; and
- Recommend the appropriate format in which the estimates should be submitted to Parliament.
- The Committee’s jurisdiction does not extend to Public Sector Undertakings that fall under the purview of the Committee on Public Undertakings, as defined by the Lok Sabha Rules of Procedure or directives issued by the Speaker
6. Different types of parliamentary committee
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In general, Parliamentary Committees are categorized into four types: Financial Committees, Departmentally Related Standing Committees (DRSCs), Other Standing Committees, and Ad hoc Committees.
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The Financial Committees comprise the Estimates Committee, the Public Accounts Committee, and the Committee on Public Undertakings. These were established in the year 1950.
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The concept of Departmentally Related Standing Committees was introduced in 1993 under the speakership of Shivraj Patil. Initially, 17 such committees were formed to review budget allocations and key policy initiatives, thereby enhancing legislative oversight and enabling deeper involvement of members in law-making. The number was later increased to 24. Each committee consists of 31 members—21 from the Lok Sabha and 10 from the Rajya Sabha.
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Ad hoc Committees are temporary in nature, created to fulfill a specific objective. Once their assigned task is complete and a report is submitted to the House, these committees are dissolved. Notable examples include Select and Joint Committees on Bills, as well as others like the Railway Convention Committee and the Committee on Food Management and Security within the Parliament House Complex.
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Parliament also has the authority to form a Joint Parliamentary Committee (JPC), comprising members from both Houses, to conduct detailed investigations into specific issues or legislation. Similarly, either House may establish a Select Committee with members solely from that chamber. Typically, such committees are chaired by members of the ruling party and are disbanded upon the submission of their final reports
| Committee | Number of Members | Member nominated or elected | |
| Financial Committee | Public Accounts Committee | 22(15LS+7RS) | Elected by both the House (s)
(set up in 1921) |
| Estimates Committee | 30 (LS) | Elected by the Lok Sabha
(set up on the recommendation of John Mathai, the then Finance Minister) |
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| Committee on Public Undertakings | 22(15LS+7RS) | Elected by both the House (s)
(created in 1964) |
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For Prelims: Parliamentary Committees, Rajyasabha proceedings, Ethics Committee
For Mains: GS II - Indian Polity and Governance
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Previous Year Questions
1.Which one of the following is the largest Committee of the Parliament? (UPSC CSE 2014)
(a) The Committee on Public Accounts (b) The Committee on Estimates (c) The Committee on Public Undertakings (d) The Committee on Petition Answer (b)
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IMD'S COLOUR CODED WEATHER ALERTS
Alerts are issued by the India Meteorological Department (IMD) based on the assessment of various weather parameters and the potential impact of upcoming weather events. The process generally involves the following steps:
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Weather Monitoring and Data Analysis: The IMD continuously monitors weather patterns using satellite imagery, radar data, and ground-based observations. Meteorologists analyze this data to predict the likelihood and severity of different weather events.
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Forecasting: Based on the analysis, weather models are run to forecast conditions such as rainfall, thunderstorms, snowfall, heatwaves, cold waves, etc. The forecasts are generated for different regions and time periods, typically ranging from a few hours to several days in advance.
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Risk Assessment: The IMD evaluates the potential impact of the predicted weather event on people, property, and infrastructure. This assessment considers factors like the intensity of the event, the affected area, and the vulnerability of the population.
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Color-Coded Alerts:
- Green Alert: No significant weather; no action is required.
- Yellow Alert: Be aware; indicates weather conditions that could escalate but are not expected to cause significant harm.
- Orange Alert: Be prepared; indicates potentially dangerous weather that could cause disruption and require precautions.
- Red Alert: Take action; indicates severe weather that is likely to cause significant damage and pose a high risk to life and property.
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Dissemination: Once the appropriate alert level is determined, the IMD issues the alert through various channels, including their official website, social media, mobile apps, television, radio, and coordination with local authorities.
- The primary purpose of these alerts is to safeguard the public. By providing early warnings of severe weather conditions, people can take necessary precautions, such as seeking shelter during a storm, avoiding travel during hazardous conditions, or preparing for extreme temperatures
- These alerts enable government agencies, local authorities, and disaster management teams to prepare for potential emergencies. This may include deploying resources, setting up shelters, issuing evacuation orders, or mobilizing rescue operations in anticipation of the event.
- Alerts help individuals and businesses make informed decisions. For example, farmers can protect their crops, fishermen can avoid going out to sea, and airlines can reschedule flights, all based on the severity of the alert
- By alerting businesses and industries to impending weather disruptions, these alerts help minimize economic losses. For instance, construction sites can secure equipment, supply chains can adjust logistics, and events can be rescheduled to avoid damage.
- Regularly issued alerts foster a culture of awareness and preparedness within communities. People become more attuned to weather patterns and more responsive to warnings, reducing the likelihood of injury or loss.
- In cases of environmental hazards like floods, landslides, or wildfires, these alerts play a crucial role in preventing further environmental degradation by prompting timely interventions.
- Vulnerable groups, such as the elderly, children, and those with health conditions, are more susceptible to the impacts of extreme weather. Alerts allow caregivers and authorities to take proactive steps to protect these individuals
- IMD's alerts are also significant for international and regional cooperation, as weather events often transcend borders. Sharing information helps neighboring countries or regions prepare for the potential spread of weather impacts
- IMD provides short-term and long-term weather forecasts for different regions of India, helping people, businesses, and government agencies plan and prepare for various weather conditions
- IMD issues color-coded alerts (Green, Yellow, Orange, and Red) to inform the public and authorities about impending severe weather events such as cyclones, heatwaves, cold waves, heavy rainfall, and thunderstorms
- The department monitors the climate of India and conducts research on various climatic patterns and phenomena. It also tracks and analyzes data related to monsoons, droughts, and climate change
- IMD plays a vital role in tracking cyclones and issuing timely warnings to coastal regions, helping in the evacuation and disaster management processes
- IMD provides weather-related information and advisories to the agricultural sector, aiding farmers in making informed decisions about sowing, irrigation, and harvesting
- IMD offers meteorological services to the aviation industry, providing weather forecasts and warnings that are critical for flight safety and operations
- IMD collaborates with various international meteorological organizations and contributes to global weather and climate studies
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For Prelims: Indian and World Geography – Physical, Social, Economic geography of India and the World. For Mains: GS-I, Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclones. etc., geographical features and their location-changes in critical geographical features (including water-bodies and ice-caps) and in flora and fauna and the effects of such changes |
SUSTAINABLE REPORT 2025
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The 2025 Sustainable Development Report (SDR) highlights that none of the 17 Sustainable Development Goals (SDGs) are currently on course to be fully realized by 2030. Only 17% of the specific targets are advancing as intended. Factors such as conflicts, structural weaknesses, and limited fiscal capacity are hindering progress in many regions globally.
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For the first time, the report introduced a simplified SDG Index (SDGi), employing one primary indicator per goal — a total of 17 — to monitor overall progress. This streamlined approach aims to reduce statistical distortions caused by missing data across countries.
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A new metric — "Minimum dietary diversity among children aged 6 to 23 months" — has been added under SDG 2 (Zero Hunger), as noted in the SDR dataset.
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The report identifies SDG 2 (Zero Hunger), SDG 11 (Sustainable Cities and Communities), SDG 14 (Life Below Water), SDG 15 (Life on Land), and SDG 16 (Peace, Justice, and Strong Institutions) as especially lagging. These goals are marked in red on dashboards, reflecting minimal or no progress since 2015.
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The SDG Index is measured on a 0–100 scale, representing a country's proximity to achieving the SDGs. The gap between a nation’s score and 100 reflects the remaining distance to reach optimal performance.
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Finland ranks first on the 2025 Index with a score of 87. European countries dominate the top 20 positions, occupying 19 of them. India has entered the top 100 for the first time, securing the 99th position with a score of 67. The country's rank has shown consistent improvement over recent years — from 109 in 2024, 112 in 2023, 121 in 2022, and 120 in 2021.
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Regionally, India still lags behind some of its South Asian peers. Bhutan stands at 74th (70.5), Nepal at 85th (68.6), and the Maldives at 53rd. Sri Lanka is ranked 93rd, whereas Bangladesh and Pakistan are further behind at 114th and 140th respectively
| Rank 2025 | Country | Score 2025 |
| 1 | Finland | 87.0 |
| 2 | Sweden | 85.7 |
| 3 | Denmark | 85.3 |
| 4 | Germany | 83.7 |
| 5 | France | 83.1 |
| 98 | Belize | 67 |
| 99 | India | 67 |
| 100 | Mongolia | 66.7 |
| 159 | Niger | 50.3 |
| 158 | Madagascar | 51.0 |
- Sustainable development, as defined by the United Nations, refers to progress that addresses current needs without jeopardizing the ability of future generations to fulfill their own. The Sustainable Development Goals (SDGs) are an extension of the Millennium Development Goals (MDGs), which were introduced in 2000 with a target year of 2015.
- In India, the SDG Index assesses the performance of states and Union Territories (UTs) across a range of indicators such as health, education, gender equality, economic development, institutional strength, environmental sustainability, and climate action. Since its initial release in December 2018, the SDG India Index has become the primary tool for tracking the country’s advancement toward these global goals.
- Scores on the SDG India Index fall within a 0–100 scale, with higher scores indicating greater progress toward meeting the targets. States and UTs are grouped into four categories based on their scores: aspirants (0–49), performers (50–64), front-runners (65–99), and achievers (100). As per the NITI Aayog’s 2023–24 SDG Index, India achieved a score of 71.
- The 2030 Agenda for Sustainable Development, commonly referred to as Agenda 2030, is a global framework adopted by the United Nations. It comprises 17 SDGs that the international community aims to fulfill by the year 2030
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At the United Nations Summit of the Future held in September 2024, member nations reaffirmed their dedication to the Sustainable Development Goals (SDGs) and to strengthening multilateral cooperation. The Summit concluded with the unanimous adoption of three major agreements: the Pact for the Future, the Global Digital Compact, and the Declaration on Future Generations.
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The Summit of the Future (SoTF) was held on September 22–23, just prior to the United Nations General Assembly (UNGA) in New York. Its central theme was “multilateral solutions for a better tomorrow.”
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UN Secretary-General António Guterres described the event as a “once-in-a-generation UN Summit,” emphasizing its historical significance as the UN marked its 80th anniversary in 2024.
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In the 2025 edition of the Index of Countries’ Support to UN-Based Multilateralism (UN-Mi), Barbados secured the top position with a score of 92, followed closely by Jamaica. India was placed 113th with a score of 63.8. This index specifically evaluates nations’ commitment to multilateralism rooted in the UN system and does not account for contributions through other international forums such as BRICS, G20, G7, or OECD.
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As noted in the Sustainable Development Report (SDR), the Pact for the Future outlines 56 action points focused on SDG implementation, global peace, and collective security. It also advocates for major reforms in the multilateral framework and the global financial system (United Nations, 2024).
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For Prelims: Agenda 2030, Sustainable Development Report (SDR) 2025, Millenium development goals
For Mains: GS II - International reports
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Previous Year Questions
1.Consider the following statements: (UPSC CSE 2016) 1. The Sustainable Development Goals were first proposed in 1972 by a global think tank called the ‘Club of Rome’. 2. The Sustainable Development Goals have to be achieved by 2030. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 Answer (b) 2.Sustainable development is described as the development that meets the needs of the present without compromising the ability of future generations to meet their own needs. In this perspective, inherently the concept of sustainable development is intertwined with which of the following concepts? (UPSC CSE 2010) (a) Social justice and empowerment (b) Inclusive Growth (c) Globalization (d) Carrying capacity Answer (d) |
NON BANKING FINANCIAL COMPANIES (NBFC)
- Non-Banking Financial Companies (NBFCs) are financial institutions that provide banking services but do not hold a banking license.
- They are crucial to the financial system as they cater to the financial needs of sectors where traditional banks may not reach or provide services.
- NBFCs offer various financial services such as loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority, leasing, hire-purchase, insurance business, chit business, etc.
- They differ from traditional banks because they cannot accept demand deposits and do not form part of the payment and settlement system like banks do.
- However, they play a significant role in providing credit to individuals, small businesses, and the unorganised sector, thereby contributing to financial inclusion and economic growth. Examples of NBFCs include companies engaged in equipment leasing, hire-purchase finance, vehicle finance, and microfinance
3. Classification of NBFCs
NBFCs can be classified into various categories based on their activities, ownership structure, and regulatory requirements.
Here are some common classifications:
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Asset Financing NBFCs: These NBFCs primarily provide financing for the purchase of assets such as vehicles, machinery, equipment, etc.
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Investment and Credit NBFCs: These NBFCs primarily make investments in securities or extend credit facilities.
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Infrastructure Finance Companies (IFCs): These NBFCs focus on financing infrastructure projects such as roads, ports, power, telecommunications, etc.
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Housing Finance Companies (HFCs): These NBFCs specialize in providing finance for housing and related activities.
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Microfinance Institutions (MFIs): These NBFCs provide financial services, including small loans, savings, and insurance, to low-income individuals and microenterprises.
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Non-Deposit Taking NBFCs: These NBFCs do not accept deposits from the public. They rely on other sources of funding such as borrowings from banks, financial institutions, and capital markets.
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Deposit Taking NBFCs: These NBFCs accept deposits from the public and are regulated more closely, similar to banks, to ensure the safety of depositor funds.
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Systemically Important NBFCs (SI-NBFCs): These are NBFCs whose failure could potentially disrupt the financial system. They are subject to additional regulatory requirements to mitigate systemic risks.
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Core Investment Companies (CICs): These NBFCs are primarily engaged in the business of acquisition of shares and securities and hold not less than 90% of its Total Assets in the form of investment in equity shares, preference shares, bonds, debentures, debt, or loans in group companies.
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Infrastructure Debt Funds (IDFs): These NBFCs are set up to facilitate the flow of long-term debt into infrastructure projects.
- The 50-50 criteria of principal business refers to a regulatory guideline set by the Reserve Bank of India (RBI) for determining whether a company's principal business is that of a Non-Banking Financial Company (NBFC).
- According to this criterion, if more than 50% of a company's total assets or gross income comes from financial assets or income derived from financial assets, it is considered to be primarily engaged in the business of an NBFC. In other words, if at least 50% of the company's assets or income is from financial activities, it falls under the purview of NBFC regulations.
- This guideline helps to differentiate between companies engaged primarily in non-financial activities with some incidental financial activities and those whose main business revolves around financial services, thereby ensuring appropriate regulation and supervision of NBFCs by the RBI. It is an important criterion used by regulators to determine the regulatory classification of companies operating in the financial sector
5.RBI rules on Non Banking Financial Companies
- NBFCs need to obtain a Certificate of Registration (CoR) from the RBI to commence or carry on the business of non-banking financial institution.
- RBI imposes prudential regulations on NBFCs to ensure the safety and soundness of their operations. These norms cover aspects such as capital adequacy, income recognition, asset classification, provisioning, liquidity management, and exposure limits.
- NBFCs are required to adhere to a Fair Practices Code (FPC) prescribed by the RBI, which outlines the principles of transparency, fairness, and responsible lending practices.
- NBFCs are mandated to follow KYC norms while onboarding customers, including verification of identity, address, and other relevant information, to prevent money laundering and terrorist financing activities
- NBFCs are required to implement effective AML/CFT measures, including customer due diligence, transaction monitoring, and reporting of suspicious transactions, to mitigate the risks of money laundering and terrorist financing.
- RBI mandates NBFCs to adhere to good corporate governance practices, including the composition of the board of directors, risk management framework, internal controls, and disclosure requirements
- NBFCs are required to have robust risk management systems in place to identify, assess, monitor, and mitigate various risks such as credit risk, market risk, liquidity risk, and operational risk.
- NBFCs need to submit various regulatory returns and reports to the RBI periodically, providing details of their financial performance, capital adequacy, asset quality, and compliance with regulatory requirements.
- RBI conducts regular inspections and supervisory reviews of NBFCs to assess their financial health, compliance with regulations, and adherence to best practices.
- RBI has the authority to issue directions, impose restrictions, and take corrective actions against NBFCs that fail to comply with regulatory requirements or pose risks to the financial system.
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For Prelims: Economy
For Mains: GS-III: Indian Economy and issues relating to planning, mobilisation, of resources, growth, development, and employment.
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Previous Year Questions 1.The RBI acts as a bankers’ bank. This would imply which of the following? (UPSC CSE 2012) 1. Other banks retain their deposits with the RBI. 2. The RBI lends funds to the commercial banks in times of need. 3. The RBI advises the commercial banks on monetary matters. Select the correct answer using the codes given below : (a) 2 and 3 only (b) 1 and 2 only (c) 1 and 3 only (d) 1, 2 and 3 Answer (d)
The central bank, also known as the apex bank, has overarching control over a nation's banking system. It holds the exclusive authority for issuing currency and regulates the money supply within the economy. As outlined in the Reserve Bank of India Act, 1934, the central bank fulfills several key functions:
2.With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements: (UPSC CSE 2010)
Which of the statements given above is/are correct? (a) 1 only Answer: (b)
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