NATIONAL POPULATION REGISTER (NPR)

1. Context

2. What is the National Population Register (NPR)?

• The NPR is a register of the usual residents of the country. It is mandatory for every usual resident of India to register in the NPR. It includes both Indian citizens as well as foreign citizens.
• The objective of the NPR is to create a comprehensive identity database of every usual resident in the country.
• The first National Population Register was prepared in 2010 and updating this data was done in 2015 by conducting door-to-door surveys.
• The next update of the NPR will take place next year from April to September with the House listing phase of the Census 2021.
• It is being prepared at the local (Village/sub-Town), sub-District, State, and National level under provisions of the Citizenship Act 1955 and the Citizenship (Registration of Citizens and issue of National Identity cards) Rules, 2003.

3. What is the meaning of usual Resident?

4. What is Census?

• The Census is the enumeration of the population of the country.  It is being conducted at an interval of 10 years.
• The Census 2021 will be the 16th census in the country since the first census happened in 1872.
• However, it will be the 8th census after the Independence. For the first time, the Census 2021 will use the Mobile App for data collection.
• It will also provide a facility to the public for self-enumeration. 

5. What is the difference between NPR and NRC?

• The NPR is different from the National Register of Citizens which excludes foreign citizens.
• According to the Citizenship (Registration of Citizens and Issue of National Identity Cards) Rules, notified on December 10, 2003, a Population Register is ‘the register containing details of persons usually residing in a village or rural area or town or ward or demarcated area (demarcated by the Registrar General of Citizen Registration) within a ward in a town or urban area.
• Whereas, the ‘National Register of Indian Citizens’ is a register containing details of Indian Citizens living in India and outside India.
• The rules further say that ‘The National Register of Indian Citizens shall contain the particulars of every citizen i.e. Name; Father’s name; Mother’s name; Sex; Date of birth; Place of birth; Residential address (present and permanent); Marital status if ever married, name of the spouse; Visible identification mark; Date of registration of Citizen; Serial number of registration; and National Identity Number. 

6. What is the link between NPR and NRC?

• According to the Citizenship (Registration of Citizens and Issue of National Identity Cards) Rules, notified on December 10, 2003, The Central Government may, by an order issued in this regard, decide a date by which the Population Register shall be prepared by collecting information relating to all persons who are usually residing within the jurisdiction of Local Registrar.
• The Local Register of Indian Citizens shall contain details of persons after due verification made from the Population Register. 

7. What makes NPR Controversial?

• Another debate has been about privacy. The NPR intends to collect many details of personal data on residents.
• The NPR is among a host of identity databases such as Aadhaar, voter cards, passports, and more than Home Minister Shah said he would like to see combined into one card. “We will have to end all these separate exercises,” Shah said at the foundation stone laying ceremony for the new Office of Registrar General of India and Census Commissioner on September 24.

8. If there was a previous NPR, how and when did the idea originate?

• At that time, it had clashed with Aadhaar (UIDAI) over which project would be best suited for transferring government benefits to citizens.
• The Home Ministry then pushed NPR as a better vehicle because it connected every NPR-recorded resident to a household through the Census.
• The ministry pushed even put the UIDAI project on the back burner. The data for NPR was first collected in 2010 along with the house-listing phase of Census 2011. In 2015, this data was updated by conducting door-to-door surveys.
• However, with the NDA government picking out Aadhaar as the key vehicle for the transfer of government benefits in 2016 and putting its weight behind it, NPR took a backseat.
• It was through a notification on August 3 by the RGI that the idea has been revived. The exercise to update the 2015 NPR with additional data has begun.
• The digitization of updated information has been completed. 

9. What kind of data will be collected?

• Aadhaar Number (voluntary)
• Mobile Number
• Date & Place of Birth of Parents
• Place of Last Residence
• Passport Number (if Indian passport holder)
• Voter ID Card Number
• Permanent Account Number
• Driving Licence Number

10. Why does the government want so much data?

• While there are concerns about privacy, the government's position is based on two grounds. One is that every country must have a comprehensive identity database of its residents with demographic details.
• In its statement issued after Cabinet approval to NPR, the Home Ministry said the objective of conducting NPR is to “prepare a credible register of every family and individual” living in the country apart from “strengthening security” and “improvement in the targeting of beneficiaries under various Central government schemes”.
• The second ground, largely to justify the collection of data such as driving license, voter ID, and PAN, is that it will ease the life of those residing in India by cutting red tape.
• It is common to find different dates of birth of a person on different government documents. NPR will help eliminate that. With NPR data, residents will not have to furnish various proofs of age, address, and other details in official work. It would also eliminate duplication in voter lists.
• However, insist that NPR information is confidential, meaning it will not be shared with third parties.
• There is as yet no clarity on the mechanism for the protection of this vast amount of data that the government plans to collect.

11. What does one make of the defiance of West Bengal and Kerala?

• These Opposition-ruled states are making a political point. Citizenship, aliens, and naturalization are subject matters listed in List 1 of the Seventh Schedule that fall exclusively under the domain of Parliament.
• Legally, the states have no say in implementing or ruling out NPR. However, given that the manpower is drawn from the states, the defiance could potentially result in a showdown.

For Prelims: National Population Register (NPR), National Register of Indian Citizens (NRC),  Citizenship (Registration of Citizens and issue of National Identity cards) Rules, 2003, Office of Registrar General of India, Aadhaar (UIDAI). For Mains: 1. What is National Population Register (NPR)? Discuss its Objectives and how it is different from the National Register of Indian Citizens (NRC). (250 Words)

 

Previous year Question

1. With reference to India, consider the following statements: (UPSC 2021) 1. There is only one citizenship and one domicile. 2. A citizen by birth only can become the Head of State. 3. A foreigner once granted citizenship cannot be deprived of it under any circumstances. Which of the statements given above is/are correct? A. 1 only B. 2 only C. 1 and 3 D. 2 and 3 Answer: A

 Source: The Indian Express

 

 

FINANCIAL ACTION TASK FORCE (FATF)

 

1. Context

India was one of the key contributors to the Financial Action Task Force (FATF) project for putting together the “Comprehensive Update on Terrorist Financing Risks” report that was released on Tuesday.

2. Financial Action Task Force (FATF)

• The FATF is an inter-governmental body that sets international standards seeking to prevent international financial crimes that aid terrorism. The FATF  was established in July 1989 by a G-7 summit in Paris to examine and develop measures to combat money laundering.
• The FATF currently comprises 37 member jurisdictions and two regional organizations European Commission and Gulf Cooperation Council, representing most major financial centers in all parts of the globe. India has been a member of the FATF since 2010. India is also a member of its regional partners, the Asia Pacific Group (APG) and the Eurasian Group (EAG).
• Its secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris.

3. Mandate of FATF

After the 9/11 attacks, the FATF in October 2001 expanded its mandate to incorporate efforts to combat terrorist financing. In April 2012, it added efforts to counter the financing of the proliferation of weapons of mass destruction. The FATF has developed the FATF recommendations, or FATF standards, which ensure a coordinated global response to prevent organized crime, corruption, and terrorism.

4. FATF Lists

4.1 Grey List

Countries that are considered safe heaven for supporting terror funding and money laundering are put on the FATF Grey list. This inclusion serves as a warning to the country that it may enter the Black list.

Recently Democratic Republic of Congo, Mozambique, and Tanzania are added to the Grey List.

4.2 Black List

Countries known as Non-cooperative countries or Territories are put on the Black list. These countries support Terror funding and Money Laundering activities. The FATF revises the blacklist regularly, adding or deleting entries.

Currently, Iran and the Democratic people's Republic of Korea are under High-risk jurisdiction or Black list. Myanmar was added to the list.

Moved Myanmar is from the "grey list" taken by the military junta since they overthrew the government in a coup last February.

5. Why Pakistan is removed from the Grey List?

• Deliberations of the FATF are made in complete secrecy, and decisions are meant to be made strictly on the basis of technicalities and procedure, so the greylisting of Pakisthan has to be seen in the totality of the process and measures it has undertaken.
• Pakistan was also on the "grey list" from 2012-2015 when FATF mandated many steps. Since 2018, it has been handed two action plans, comprising 34 points (27+7), asking Islamabad to bring in laws on money laundering, and anti-terror laws in line with international requirements.
• Pakistan also had to maintain a database of terror groups operating on its soil and the actions taken against them.

6. Benefits for Pakistan

• If removed from the grey list Pakistan would essentially receive a reputational boost and get a clean bill of health from the international community on terror financing. 
• There is research that suggests grey listing negatively impacts the relationship of the concerned countries with the international funders including Banks and financial institutions that take note of FATF rankings as well as existing potential overseas investors in those countries.

7. Indias Response

• India is a member, and hence party to all FATF decisions that are made by consensus. As a result, it also agreed to the decision to take Pakistan off the list, conceding in a statement that due to the FATF, Pakistan had been "forced to take" some action against well-known terrorists", including those involved in the Mumbai 26/11 attacks.
• The Narendra Modi Government is preparing for India's turn at FATF scrutiny or MER process, set to begin in early 2023, which it hopes will be a smooth process. In July this year while introducing the Weapons of Mass Destruction and their Delivery Systems (Prohibition of Unlawful Activities) Amendment. 
• External Minister S. Jaishankar told parliament that India had to take its international commitments on WMD seriously, both at the UN Security Council, and FATF recommendations which had "mandated provisions against financing in relation to WMDs.

For Prelims & Mains

For Prelims: FATF, Grey list, Black List, UN Security Council, Weapons of mass destruction, Asia Pacific Group (APG), Organisation for Economic Cooperation and Development (OECD), and the Eurasian Group (EAG). For Mains: 1. Discuss the mandate of FAFT on Terror Financing and explain the benefits of Pakistan after removing it from the grey list.

 

Source: The Hindu

 

EXTRADITION 

 

 

 

1. Context

 

Tahawwur Hussain Rana, a key conspirator in the 26/11 Mumbai terror attacks that left 166 people dead, has been extradited from the United States to India. He arrived in New Delhi on Thursday (April 10), and will now face trial in a special National Investigation Agency (NIA) court.

 

2. What is Extradition?

 

Extradition refers to the official procedure through which one nation hands over a person to another nation for facing trial or serving a sentence for crimes committed under the latter's legal jurisdiction. This process is usually regulated by a bilateral agreement between the two nations, or occasionally through broader multilateral accords. Extraditing someone in the absence of such a treaty is highly uncommon, and even when treaties do exist, extradition cases often involve complex and prolonged legal and diplomatic challenges

 

3. What do extradition treaties say?

 

• Earlier extradition treaties typically included a fixed list of crimes, and only individuals accused or convicted of those specific offences could be extradited.
• In contrast, modern treaties generally adopt the principle of "dual criminality," where an act is considered extraditable if it is recognized as a crime in both the requesting and requested countries.
• Most treaties also outline exceptions—situations in which extradition may be denied. For example, the India-Bangladesh treaty permits either nation to reject a request if the crime is deemed political or if the allegation appears to lack genuine intent to serve justice.
• As per the Ministry of External Affairs, India currently has formal extradition treaties with 48 nations and informal extradition arrangements with an additional 12 countries

 

4. What is the process of extradition?

 

• Although the exact procedures differ across treaties, the extradition process typically starts when the country where the crime occurred formally requests the surrender of the accused individual.
• Once this request is submitted, the legal system of the country where the individual is located initiates proceedings to determine whether extradition is legally and procedurally appropriate.
• These details can vary—some treaties require that the person already be convicted in the requesting nation, while others permit extradition based solely on formal charges.
• Extradition is carried out once the request is approved and the individual has no further legal avenues for appeal.
• Typically, authorities from the requesting country travel to the host nation to assume custody. For instance, in Rana’s case, senior officials from India’s National Investigation Agency (NIA) travelled to Los Angeles to take him into custody

 

5. Challenges with the extradition treaty

 

• Ultimately, most extradition treaties provide enough flexibility for countries to refuse extradition in a wide range of situations. As a result, extradition often becomes more of a political and diplomatic matter than a purely legal one.
• While some cases are resolved swiftly, more politically charged requests can take months or even years, and may never succeed.
• For instance, India initially sought the extradition of Tahawwur Rana over a decade ago, but the request was approved only in 2023, aided by cooperation from the Biden administration in the U.S.
• In contrast, India's request to extradite David Headley—who conducted reconnaissance for the Lashkar-e-Taiba—was denied.
• Headley entered into a plea bargain in the U.S. that shielded him from extradition to India, and he is currently serving a 35-year sentence there

6. Instances of executing the extradition theory

 

• Dual Criminality Principle:

This principle dictates that the act for which extradition is sought must constitute a crime punishable by a certain minimum penalty in both the requesting and the requested states. While the exact name or elements of the crime don't have to be identical, the underlying conduct must be recognized as criminal in both jurisdictions

Example: A person commits a fraud offense in Country A and flees to Country B. For Country B to extradite the person, the act of fraud must also be considered a criminal offense in Country B. If Country B's laws do not criminalize that specific type of fraud, extradition might be denied

• Specialty Principle (Rule of Specialty):

This principle ensures that an extradited person can only be prosecuted, punished, or detained for the specific offenses for which extradition was granted. The requesting state must strictly adhere to the terms of the extradition request approved by the requested state

Example: If a suspect is extradited from Country C to Country D for a murder charge, Country D cannot then decide to prosecute them for a separate, unrelated theft that occurred prior to the extradition, unless Country C specifically consents to it

• Non-Extradition of Political Offenders:

Many countries refuse to extradite individuals if the alleged crime is political in nature. This exception aims to prevent the misuse of extradition for political persecution. However, it typically excludes acts of terrorism or other violent crimes, which are generally not considered "political" in this context

Example: Historically, a person involved in a rebellion against their government might seek asylum in another country, and the asylum country might refuse extradition on the grounds of the political offense exception

• Reciprocity:

Extradition relations between states are often premised on reciprocity, meaning one state agrees to extradite a person if the other state agrees to do the same in similar circumstances. This is most commonly formalized through bilateral extradition treaties

Example: The long-standing extradition treaties between the United States and the United Kingdom are based on the principle of reciprocity, facilitating the surrender of fugitives between the two nations

• Human Rights and Fair Trial Standards:

Increasingly, extradition processes consider the human rights of the individual. Extradition may be refused if there's a significant risk that the extradited person would face torture, inhuman or degrading treatment, or would not receive a fair trial in the requesting state. The principle of non-refoulement, which protects refugees from being returned to a place where they face persecution, is also relevant here

Example: In cases involving capital punishment, some countries refuse extradition if the requesting state seeks the death penalty and cannot provide assurances that it will not be imposed or carried out. The Abu Salem extradition from Portugal to India involved conditions that he would not face the death penalty due to European law

Source: Indianexpress

GREAT HORNBILL

 

 

 

1. Context

 

In a rare and remarkable sighting, the Malamuzhakki Vezhambal (Great Hornbill), Kerala’s State bird, was spotted in the coastal belt of Kakkampara, near Ezhimala, in Kannur, an area far from its usual forested habitats.

 

2. Malamuzhakki Vezhambal (Great Hornbill)

 

 

• The Malamuzhakki Vezhambal, or the Great Hornbill (Buceros bicornis), is one of the most iconic and majestic birds found in the forests of the Western Ghats, including the lush landscapes of Kerala.
• Its name in Malayalam, Malamuzhakki Vezhambal, translates to "the hornbill that echoes through the mountains," a poetic reference to the loud, resonant call it makes, which often carries far through the dense forest canopy.
• This bird is easily recognizable by its large size, striking black and white plumage, and, most notably, its massive yellow and black casque—a hollow structure that sits atop its long, curved bill. The casque’s function is still debated among ornithologists, but it is believed to be used for amplification of calls and possibly as a display during mating rituals or territorial displays.
• The Great Hornbill holds great ecological significance as well as cultural reverence. It plays a crucial role in seed dispersal, particularly of large fruiting trees like figs, thus helping maintain the health and regeneration of tropical forests. The bird is mainly frugivorous, feeding on a variety of fruits, although it occasionally supplements its diet with small mammals, reptiles, or insects.
• One of the most fascinating aspects of the Great Hornbill is its unique breeding behavior. During nesting, the female seals herself inside a tree cavity using a mixture of mud, fruit pulp, and droppings, leaving only a narrow slit through which the male passes food.
• She remains inside for weeks—sometimes up to four months—while she incubates the eggs and raises the chicks. This nesting period highlights the deep partnership and dependency between the male and female during reproduction.
• In traditional folklore and local culture, the Vezhambal is often seen as a symbol of grandeur, longevity, and mystery. Sadly, the species is facing increasing threats from habitat loss due to deforestation and fragmentation, along with hunting in some regions for its casque and feathers. It is currently listed as "Vulnerable" on the IUCN Red List

 

3. Great Indian Hornbill IUCN Status

 

 

The Great Indian Hornbill (Buceros bicornis), also known as the Great Hornbill, is currently classified as Vulnerable (VU) on the IUCN Red List of Threatened Species

Reasons for Vulnerable Status:

• Habitat Loss: Large-scale deforestation and fragmentation of tropical forests, especially in the Western Ghats and Northeast India, have significantly reduced its natural habitat.

• Hunting and Poaching: In some regions, the bird is hunted for its casque (helmet-like structure on its bill) and feathers, which are used in traditional ornaments and rituals.

• Low Reproductive Rate: Their unique nesting behavior—one breeding pair requiring a large tree cavity and a long incubation period—makes population recovery slow

 

 

4. India's Cultural Significance

 

 

• The Indian Hornbill, especially the Great Indian Hornbill (Buceros bicornis), holds deep cultural and spiritual significance across many parts of India, particularly in tribal and forest-dwelling communities. Beyond its ecological importance, this majestic bird has long been woven into the folklore, rituals, and traditional beliefs of several Indigenous groups.
• In the Northeastern states, such as Nagaland, Arunachal Pradesh, and Manipur, the hornbill is revered as a symbol of valour, strength, and prosperity. Among the Naga tribes, the bird's feathers and casques are traditionally worn by warriors and chiefs during festivals and ceremonies to denote bravery and high status.
• The Hornbill Festival, celebrated annually in Nagaland, is a vibrant cultural event named after the bird. The festival brings together various tribes to showcase their heritage through music, dance, crafts, and storytelling, with the hornbill serving as a symbolic unifier of diverse Naga cultures.
• In Kerala, the Great Hornbill is known as "Malamuzhakki Vezhambal", which poetically means “the hornbill that echoes through the mountains.” In local folklore, the bird is often associated with the pristine, ancient forests of the Western Ghats.
• It is admired not only for its grandeur and striking appearance but also for its mysterious presence deep within forest canopies. The hornbill’s booming call, which resonates through the hills, adds to its mythical aura.
• The bird's devoted parenting behaviour—especially the female sealing herself inside a tree cavity during nesting and the male tirelessly feeding her and the chicks—has often been interpreted as a powerful symbol of loyalty, sacrifice, and protection. In some tribal myths, this act is seen as a lesson in family unity and trust.
• Despite this admiration, the hornbill’s parts were once used in traditional ornaments, ceremonial headgear, or ritual objects, which unfortunately led to hunting in the past.
• However, many communities have now moved towards symbolic representations, using wood, cloth, or painted replicas instead of real hornbill parts—reflecting a growing awareness about conservation and respect for wildlife.
• In recent years, the hornbill has also become a flagship species in conservation campaigns. Its cultural importance is being leveraged to promote forest protection and environmental education.
• By tapping into traditional reverence for the hornbill, conservationists are working hand in hand with local communities to ensure that this magnificent bird continues to thrive in both the forests and the folklore of India.
• In essence, the Indian Hornbill is not just a bird—it is a cultural icon, a storyteller of the forest, and a bridge between tradition and conservation

 

 

5. Types of Hornbills Species in India

 

 

S. No.	Common Name	Scientific Name	Key Identifying Features (for quick visual ID)	Distribution in India	Conservation Status (IUCN)	Image
1.	Great Hornbill	Buceros bicornis	Very large, prominent yellow and black casque, white tail.	Western Ghats, Eastern Ghats, Himalayan foothills, NE India	Vulnerable
2.	Malabar Pied Hornbill	Anthracoceros coronatus	Medium-sized, black and white plumage, large yellow casque with black markings.	Western Ghats, parts of Central India (MP, Odisha)	Near Threatened
3.	Oriental Pied Hornbill	Anthracoceros albirostris	Medium-sized, black and white, smaller casque than Malabar Pied, mostly white underparts.	Northeast India, Andaman & Nicobar Islands	Least Concern
4.	Indian Grey Hornbill	Ocyceros birostris	Medium-sized, entirely grey plumage, small, dark casque.	Widespread across Indian subcontinent (except NE & high alt.)	Least Concern
5.	Malabar Grey Hornbill	Ocyceros griseus	Medium-sized, grey plumage, yellowish bill, no prominent casque, rufous vent.	Endemic to Western Ghats	Least Concern
6.	Narcondam Hornbill	Rhyticeros narcondami	Smallest Indian hornbill, dark plumage, casque with unique shape, found only on Narcondam Island.	Endemic to Narcondam Island (Andaman & Nicobar Islands)	Vulnerable
7.	Rufous-necked Hornbill	Aceros nipalensis	Large, male with rufous neck & head; female black; prominent, ridged casque.	Northeast India (Himalayan foothills)	Vulnerable
8.	Wreathed Hornbill	Rhyticeros undulatus	Large, male with yellow gular pouch, female blue; distinctive 'wreathed' casque.	Northeast India	Vulnerable
9.	Austen's Brown Hornbill	Anorrhinus austeni	Medium-sized, overall brown plumage, smaller casque, often seen in groups.	Northeast India	Near Threatened

 

 

For Prelims: Hornbill Festival, Great Hornbill, Kuki-Zoo   For Mains: GS III - Environment and ecology

 

Previous Year Questions    1.In which of the following regions of India are you most likely to come across the ‘Great Indian Hornbill’ in its natural habitat? (2016)  (a) Sand deserts of northwest India   (b) Higher Himalayas of Jammu and Kashmir   (c) Salt marshes of western Gujarat   (d) Western Ghats   Answer (d)

 

Source: The Hindu

 

 

CAT BONDS

 

 

1. Context

 

While life insurance is a ubiquitous term in India, disaster risk insurance is not. A low penetration of disaster risk insurance for individual property and livelihoods leaves much of the population exposed to irretrievable damage and loss. Most peoples’ assets and means of income remain largely uninsured. Globally, after the hurricanes of the late-1990s in the U.S., when even re-insurers suffered losses, catastrophe risk was farmed out to financial markets through catastrophe bonds (cat bonds).

 

2. What is a Cat band?

 

• Catastrophe bonds, or cat bonds, are specialized financial instruments that blend elements of insurance and debt. They convert insurance coverage into securities that can be traded in the financial markets.
• By doing so, these bonds shift the burden of disaster-related risks from vulnerable countries not only to traditional global re-insurers but also to the broader financial market, thereby significantly expanding the pool of funds available for post-disaster recovery and rebuilding efforts.
• These instruments are designed to transfer specified risks to investors, allowing for faster disbursement of funds and minimizing counterparty exposure.
• Typically, cat bonds are issued by sovereign governments that act as sponsors. They pay a premium for the coverage, and the insured amount becomes the bond’s principal.
• To mitigate counterparty risk, a third-party intermediary—such as the World Bank, Asian Development Bank, or a reinsurance firm—is involved in issuing the bond.
• In the event of a disaster, investors may lose part or all of their principal, which is why these bonds usually offer higher returns than standard debt securities.
• The interest rates on cat bonds vary depending on the type of risk; for instance, earthquake-related bonds often carry lower premiums (around 1–2%) compared to those linked to hurricanes or cyclones

 

3. Are Cat Bonds Profitable?

 

• Catastrophe bonds, or cat bonds, can be profitable, but they carry a unique set of risks that distinguish them from traditional financial instruments. These bonds are designed to provide high returns to investors in exchange for taking on the risk of a specific natural disaster occurring—such as a hurricane, earthquake, or flood.
• Because of the nature of this risk, the bonds offer higher coupon (interest) rates than standard corporate or government bonds. This makes them especially attractive in low-interest environments where investors are looking for higher yields.
• One of the reasons cat bonds are considered potentially profitable is their low correlation with the broader financial markets. Their performance is not directly influenced by market downturns, inflation, or changes in interest rates.
• Instead, their fate depends almost entirely on whether a predefined catastrophic event occurs within a certain timeframe and geographic area.
• This characteristic makes cat bonds valuable as a diversification tool in large investment portfolios, especially for institutional investors like pension funds or hedge funds.
• However, the potential for profit comes with significant risk. If the specified disaster does not occur, the investor receives attractive returns.
• But if the event does happen—and if it meets the criteria set in the bond agreement—the investor can lose part or even all of their principal. In this sense, cat bonds function somewhat like a bet: either the investor earns a high reward, or they face a considerable loss.
• Another important aspect is the reliance on catastrophe modeling. These models estimate the likelihood and impact of certain events, but if they are flawed or overly optimistic, investors may be exposed to more risk than they anticipated.
• Moreover, cat bonds are not as easily traded as mainstream securities, meaning they can sometimes be harder to sell quickly, which reduces their liquidity

 

4. India and Cat bonds

 

 

• In the era of climate change, the increasing intensity and frequency of natural disasters have made it difficult for insurers and reinsurers to manage risk profitably. This trend is already visible in the United States, where more powerful hurricanes and frequent wildfires are driving up insurance premiums.
• As a result, demand for insurance declines, and the burden of risk ultimately shifts back to disaster-affected individuals. This is where government intervention becomes crucial, especially through the use of financial instruments like catastrophe bonds (cat bonds).
• South Asia, and India in particular, is facing greater vulnerability to extreme weather events such as cyclones, floods, wildfires, and major earthquakes. To shield its public finances from the heavy cost of disaster recovery, India must consider structured approaches to risk transfer.
• Given India’s solid sovereign credit profile and the scale of its disaster exposure, issuing cat bonds through a credible intermediary like the World Bank—using its well-established bond curves—could prove to be a cost-efficient solution.
• Insurance companies often include requirements for disaster risk mitigation in their agreements, and failure to meet such standards can drive up the bond’s interest rates. In this regard, India has already made commendable progress.
• Since the financial year 2021–22, it has been allocating about $1.8 billion annually for disaster mitigation and capacity-building efforts, indicating a proactive approach to risk management.
• Considering India’s economic size and creditworthiness, it is well-positioned to take the lead in launching a regional cat bond for South Asia. Many of the region’s disaster risks remain uninsured, and a collaborative approach could help distribute these risks more evenly.
• The region also presents a diverse hazard landscape, with different countries facing distinct threats based on their geography and vulnerability. For instance, a regional cat bond could be tailored to cover high-impact events like earthquakes in Nepal, Bhutan, and India, or catastrophic cyclones and tsunamis affecting India, Bangladesh, Sri Lanka, the Maldives, and Myanmar.
• A shared financial instrument like this would help lower premium costs, enhance disaster preparedness, and strengthen the region’s collective financial resilience

 

5. Way forward

 

If not properly structured, a catastrophe bond may fail to trigger a payout even in the aftermath of a major disaster. For instance, an earthquake bond set to activate only when a quake of magnitude 6.6 or higher occurs in a specific area might not provide any funds if a 6.5 magnitude earthquake hits and still causes severe destruction. Moreover, in situations where no disaster occurs during the bond’s term, questions may arise about whether the expenditure was justified. Therefore, a more rational approach would be to transparently determine the premium through a formal government process and compare it against historical averages of annual post-disaster recovery costs. This could offer a more balanced assessment of the bond’s value and effectiveness

 

For Prelims: Cat bonds, Asian Development Bank, World Bank   For Mains: GS III - Disaster Management

 

 

Source: The Hindu

 

PERFORMANCE GRADING INDEX (PGI)

 

 

 

1. Context

 

The Ministry of Education recently released latest assessment of school education indicators, the Performance Grading Index (PGI) 2.0 report for 2023-24.

 

2. Performance Grading Index (PGI)

 

 

• The Performance Grading Index (PGI) was first launched in 2017, and later restructured into PGI 2.0 in 2021 by the Ministry of Education. This tool evaluates the quality of school education across 73 parameters, which fall into two main categories: outcomes and governance & management. These are further organized into six specific domains:

• Learning outcomes and educational quality

• Accessibility of education

• Infrastructure and available facilities

• Equity in education

• Governance and administrative processes

• Teacher training and professional development

• The most recent edition of the PGI covers the academic years 2022–23 and 2023–24, and bases its findings on data sourced from the National Achievement Survey (2021), UDISE+, and the PM-POSHAN (formerly Mid-Day Meal) scheme.

• States and Union Territories (UTs) are evaluated on a 1,000-point scale. Under PGI 2.0, scores are categorized into specific grade levels, with the topmost level termed ‘Daksh’, representing scores above 90% of the maximum range.

• However, none of the States or UTs managed to secure a score above 761. Chandigarh achieved the highest with 703 points, placing it in the ‘Prachesta-1’ grade band (701–760). This was an improvement from 687.8 in the previous year.

• Following Chandigarh, Punjab secured 631.1 points and Delhi got 623.7. Other high-performing regions like Kerala, Gujarat, Odisha, Haryana, Goa, Maharashtra, and Rajasthan fell within the 581–640 score range.

• At the bottom end, Meghalaya scored the lowest at 417.9, with Arunachal Pradesh (461.4), Mizoram (464.2), Nagaland (468.6), and Bihar (471.9) performing only slightly better.

• States including Uttar Pradesh, Tamil Nadu, Karnataka, Andhra Pradesh, West Bengal, Madhya Pradesh, Himachal Pradesh, and Uttarakhand were placed in the Akanshi-1 category, with scores between 521 and 580.

• Highlighting regional disparities, the report noted a significant scoring gap, with the highest state scoring 719 and the lowest at 417 for the year 2023–24.

• The objective of the PGI is to guide States and UTs in identifying areas requiring focused interventions. Encouragingly, 25 out of 36 States/UTs showed an improvement in their performance compared to the previous year

 

 

3. ULLAS Scheme and PM SHRI

 

 

1. Mizoram, Goa, and Tripura have been recognized as achieving "full literacy" under the Understanding Lifelong Learning for All in Society (ULLAS) initiative, also known as the Nav Bharat Saksharta Karyakram.

2. The ULLAS – Nav Bharat Saaksharta Karyakram, also referred to as the New India Literacy Programme (NILP), is a centrally sponsored scheme that runs from 2022 to 2027. Its goal is to provide basic literacy and numeracy to five crore adults aged 15 and above who lack these foundational skills—primarily focusing on the ability to read, write, and perform simple arithmetic typically taught in early school years.

3. Rooted in the principle of Kartavya Bodh (sense of duty), the programme operates through volunteer participation and is structured around five key components:

• Foundational literacy and numeracy

• Essential life skills

• Basic education

• Vocational training

• Continuing education

4. This initiative is managed by the Union Ministry of School Education and Literacy and also includes a component aimed at transforming 14,500 schools into model institutions to reflect and promote the ideals of the National Education Policy (NEP) 2020.

5. The programme targets existing government-run schools—including elementary, secondary, and senior secondary levels—under the jurisdiction of central, state, and local authorities throughout the country

 

 

4. Performance Grading Index for Districts (PGI-D)

 

• The Performance Grading Index for Districts (PGI-D) is an initiative by the Ministry of Education to assess the performance of school education at the district level across India. It is a data-driven framework that evaluates districts based on key indicators to help identify strengths and gaps in their education systems
• The primary aim of PGI-D is to promote evidence-based policy-making and encourage local-level improvements by highlighting disparities in performance and recognizing high-achieving districts. It enables states and union territories to pinpoint areas requiring targeted interventions.

• PGI-D evaluates districts using a set of 83 performance indicators, grouped into six domains:

  1. Learning Outcomes & Quality

  2. Access to Education

  3. Infrastructure & Facilities

  4. Equity

  5. Governance Processes

  6. Teacher Education & Training

• These indicators are aligned with the goals of the Samagra Shiksha scheme and the National Education Policy (NEP) 2020.

 

 

5. What is PGI 2.O?

 

 

PGI 2.0 refers to the updated version of the Performance Grading Index (PGI) introduced by the Ministry of Education, Government of India. While the original PGI was launched in 2017 to assess the performance of school education systems at the state and union territory (UT) level, PGI 2.0 was revamped and introduced in 2021 to provide a more comprehensive and updated assessment framework

The aim of PGI 2.0 is to help states and UTs identify key areas for improvement in school education and guide them in formulating effective policy interventions. It fosters a competitive, cooperative environment among states to improve the quality of education.

PGI 2.0 relies on data from:

• National Achievement Survey (NAS) 2021

• Unified District Information System for Education Plus (UDISE+)

• PM-POSHAN (mid-day meal programme)

 

 

For Prelims: Performance Grading Index (PGI), National Education Policy (NEP) 2020, New India Literacy Programme (NILP)   For Mains: GS II - Reports

 

Previous Year Questions   1.Which of the following provisions of the Constitution does India have a bearing on Education? (UPSC CSE 2012) 1. Directive Principles of State Policy 2. Rural and Urban Local Bodies 3. Fifth Schedule 4. Sixth Schedule 5. Seventh Schedule Select the correct answer using the codes given below: (a) 1 and 2 only (b) 3, 4 and 5 only (c) 1, 2 and 5 only (d) 1, 2, 3, 4 and 5 Answer (d)

 

Source: Indian Express

 

NATIONAL ACHIEVEMENT SURVEY 2025

 

 

1. Context

 

When the National Achievement Survey (NAS) 2025 results were released on July 2, few expected Himachal Pradesh — which ranked at a modest 21st place in 2021 — to leap into the top five. While Punjab and Kerala retained their leading positions, it was Himachal’s 16-rank jump that garnered headlines.

 

2. What is National Achievement Survey (NAS)?

 

 

• The National Achievement Survey (NAS) is a large-scale evaluation carried out every three years by the Ministry of Education to assess student learning in government and government-aided schools.
• It focuses on students in Classes 3, 5, 8, and 10, testing their proficiency in core subjects like language, mathematics, and science. The insights gained from this exercise help States shape their education policies.
• Although NAS plays a valuable role as a diagnostic tool, it does come with certain shortcomings. It tends to assess aspects of learning that are straightforward to measure, rather than the more nuanced and essential outcomes of education.
• Elements like critical thinking, emotional development, civic responsibility, and social equity often remain unmeasured.
• Therefore, while the performance of states like Himachal Pradesh in NAS is commendable, such results should not be viewed as the only indicator of quality education

 

3. Himachal and ratings

 

• Himachal Pradesh’s improved standing is still noteworthy as it reflects a turnaround after a period of decline. Once considered a benchmark for education among hill states, the state's public schooling system had faced years of setbacks.
• This was despite the strong foundation laid by its first Chief Minister, Y.S. Parmar, who, in the post-Independence era, championed the widespread establishment of schools with a vision of educating rural children and strengthening village communities.
• However, the period following economic liberalisation witnessed a gradual weakening of the public education system.
• The shift towards hiring teachers on a contractual basis, coupled with insufficient recruitment and declining academic standards, led to a steady migration of students to private schools. As faith in government-run schools diminished, private institutions began to proliferate—even in the most remote parts of the state

 

4. Key takeaways of National Achievement Survey (NAS) 2025

 

NAS 2025 provides a detailed snapshot of where India's school education stands: while access and parity may be improving, the survey reveals deep-rooted gaps in cognitive, mathematical, and scientific understanding—gaps that widen with each grade. Addressing these challenges requires renewed focus on foundational skills, teacher capacity, and targeted state-specific reforms

 

Here are some of the details:

 

• The survey covered over 21 lakh students in Grades 3, 6, and 9 from 74,229 schools across 781 districts, along with insights from 270,000 teachers and school leaders
• Only 55% of Grade 3 students could correctly order numbers up to 99, and similar struggles were seen in two‑digit operations
• By Grade 6, 46% had difficulty with multiplication tables and basic arithmetic, and only 38% could approach real‑life math problems
• At Grade 9, deep gaps were evident: just 31% understood number sets like fractions and integers, and 37% could explain scientific concepts like wind or circuitsProficiency steadily declines from Grade 3 to Grade 9, especially in applied math and critical thinking.
• There remains a significant rural–urban and inter-state disparity, with northeastern states and select districts lagging behind

 

5. Education in India 

 

• The Indian Constitution, particularly Part IV which outlines the Directive Principles of State Policy, includes Article 45 and Article 39(f) that advocate for free, equitable, and universally accessible education, funded by the state.
• A major shift occurred through the 42nd Constitutional Amendment in 1976, which placed education under the Concurrent List, allowing both the Centre and states to legislate on the subject.
• Later, the 86th Amendment Act of 2002 elevated education to the status of a justiciable fundamental right by introducing Article 21-A, ensuring free and compulsory education for children
• The Right to Education (RTE) Act, 2009 operationalizes Article 21-A by guaranteeing free primary education to all children between 6 and 14 years of age. A key feature of the Act is the 25% reservation in private schools for children from economically and socially disadvantaged backgrounds
• The government has launched several initiatives to enhance the quality and reach of school education, including the National Education Policy (NEP) 2020, which envisions a holistic and flexible learning environment.
• Supporting schemes such as Samagra Shiksha 2.0, the NIPUN Bharat Mission (for foundational literacy and numeracy), the PM POSHAN scheme (for midday meals), and tools like the Unified District Information System for Education (UDISE) and the Performance Grading Index (PGI) play a crucial role in monitoring and improving educational outcomes across the country

 

6. Way forward

 

The National Achievement Survey (NAS) offers a crucial indication that Himachal Pradesh is regaining its footing in education. However, it provides limited insight into aspects like students’ emotional and social well-being, the depth of teacher-student interactions, or the level of involvement from the local community. There is a real risk in equating success in standardized assessments with the broader goals of education. Himachal’s real success lies in restoring public confidence in the value of government schooling. As the state moves forward with its educational reforms, it must strengthen its efforts by making teacher positions permanent, adopting more comprehensive assessment methods, and ensuring that students from rural and underprivileged backgrounds are not excluded from progress

 

 

For Prelims: National Achievement Survey (NAS), Article 21-A, National Education Policy (NEP) 2020   For Mains: GS II - Unified District Information System for Education (UDISE)

 

Source: The Hindu

 

 

FINANCING FOR DEVELOPMENT (FfD)

 

 

 

1. Context

 

Recently, the 4th International Conference on Financing for Development (FfD4) was held from 30 June – 3 July in Seville, Spain. A Sevilla Commitment was adopted ahead of the start of the Conference, which laid down a path to close the $4 trillion annual SDG financing gap in developing countries.

 

2. Financing for development (FfD)

 

• Financing for Development (FfD) is an evolving initiative aimed at aligning global financial systems and policies with broader economic, social, and environmental objectives. The idea gained momentum in 1997 when the UN General Assembly adopted the Agenda for Development, which advocated for the possibility of convening a global conference on FfD.

• As noted by the Earth Negotiations Bulletin of the International Institute for Sustainable Development (IISD), the first International Conference on Financing for Development took place in 2002 in Monterrey, Mexico. This led to the creation of the Monterrey Consensus, which committed participating nations to tackle financial challenges affecting development, with a focus on poverty reduction, sustained economic growth, and environmental sustainability.

• The process continued with a follow-up meeting in Doha, Qatar, in 2008, and further evolved in 2015 with the third FfD conference in Addis Ababa. This gathering produced the Addis Ababa Action Agenda, which laid out a comprehensive financial policy framework to support the implementation of the 2030 Agenda and the 17 Sustainable Development Goals (SDGs). A decade later, a subsequent FfD conference was hosted in Spain.

• Today, numerous nations are grappling with rising debt levels, reduced foreign investments, diminishing development aid, and growing trade restrictions. The latest FfD Conference aims to address a massive $4 trillion annual financing shortfall, which is critical for accelerating development, reducing poverty, and making progress toward the SDGs, which are currently behind schedule.

• Alarmingly, 3.3 billion people were living in countries last year where debt interest payments exceeded public spending on healthcare or education. This figure is expected to rise to 3.4 billion this year, as per Rebeca Grynspan. Additionally, developing nations are projected to pay a staggering $947 billion in debt servicing this year, a steep increase from $847 billion the previous year

 

3. Key outcomes of FfD

 

 

• Expanding upon the principles of the 2015 Addis Ababa Action Agenda, the Sevilla Commitment reinforces a strong dedication to sustainable development. It emphasizes the full implementation of the 2030 Agenda and its 17 Sustainable Development Goals (SDGs), while also reaffirming the foundational values and principles they represent.

• As the world nears the 2030 deadline for achieving the SDGs, the Sevilla Commitment lays out a comprehensive roadmap focusing on three major areas: generating large-scale investment for sustainable development, confronting the challenges of global debt and development, and initiating reforms in the current international financial systems.

• According to a UN press release, the Sevilla Platform for Action introduced innovative financial tools aimed at addressing unsustainable debt levels. It also unveiled measures to improve crisis response, strengthen climate resilience, broaden access to social safety nets, and promote both local and digital economic initiatives.

• One of the key outcomes was the launch of the Debt Swaps for Development Hub, an initiative spearheaded by Spain and the World Bank. This platform is intended to build technical capacity and enhance cooperation among nations, thereby expanding the use of debt swaps to ease debt repayment pressures.

• In addition, Italy introduced a Debt-for-Development Swap Programme, through which €230 million worth of debt owed by African nations will be redirected into development-oriented projects. The Sevilla Forum on Debt was also established to enable knowledge sharing and coordination among countries in managing and restructuring public debt.

• Another notable announcement came from Brazil and Spain, who launched an initiative focused on ensuring effective taxation of high-net-worth individuals, aiming to promote fairer taxation systems and reduce inequality by holding the wealthiest accountable for their financial contributions

 

4. World Bank report on Foreign Direct Investment (FDI)

 

 

• Just days before the Fourth International Conference on Financing for Development (FfD4) commenced, the World Bank released a report titled ‘Foreign Direct Investment in Retreat’. The report highlighted a significant drop in Foreign Direct Investment (FDI) to developing nations, which stood at $435 billion in 2023—the lowest figure recorded in nearly two decades. The report cautioned that increasing restrictions on trade and investment could seriously undermine global initiatives aimed at financing development.

• M. Ayhan Kose, Deputy Chief Economist of the World Bank Group, emphasized that this sharp fall in FDI should act as a major warning signal. Reversing this decline, he stressed, is not only crucial from an economic standpoint but is also vital for generating employment, ensuring consistent economic growth, and fulfilling broader development targets.

• The report further noted that this prolonged weakness in investment across emerging markets and developing economies (EMDEs) has led to an accumulation of unmet infrastructure demands.

• The slow pace of investment is proving to be a major obstacle to achieving key global development targets. This includes efforts to address climate change, facilitate a smooth transition to clean energy, and combat poverty and inequality. Estimates suggest that EMDEs must increase their investment by at least 1.4% of GDP annually through 2030 to meet the challenges posed by climate change and the energy transition.

• Among all EMDEs, China emerged as the leading recipient of FDI between 2012 and 2023, attracting nearly one-third of total inflows. It was followed by Brazil with 10%, and India, which received about 6%, according to the World Bank data.

• Although global FDI data is currently available only up to the year 2023, figures from the Reserve Bank of India (RBI) show that FDI inflows into India rose to $81.04 billion in 2024–25, compared to $71.28 billion in 2023–24. However, when adjusted for repatriation of funds by foreign investors and outbound investments made by Indian companies, net FDI sharply declined to $353 million in the most recent fiscal year from $10.13 billion the previous year

 

 

For Prelims: Financing for Development (FfD4), UN General Assembly (UNGA), Foreign Direct Investment (FDI)    For Mains: GS II & III - International organisations & Environment and ecology

 

 

Source: Indianexpress