Specific Concerns

• The PMLA's retrospective application, allowing for the prosecution of offences committed before the law's enactment, has been challenged as violative of the fundamental right against ex post facto laws.
• The PMLA places the burden of proof on the accused to establish innocence, a departure from the general principle of criminal law that presumes innocence until proven guilty.
• Critics argue that the PMLA's provisions are overly broad and draconian, giving the ED excessive powers to arrest, detain, and seize assets without adequate judicial oversight.
•  The PMLA's lack of adequate safeguards against arbitrary actions and misuse of power has raised concerns about the potential for abuse of authority by the ED.
•  The PMLA's provisions have been criticized for potentially infringing upon fundamental rights such as the right to personal liberty, the right to property, and the right against self-incrimination.

3. Money laundering

• Money laundering is the illegal process of making large amounts of money.
• This money is generated by criminal activity but may appear to come from a legitimate source.
• Criminal activities include drug trafficking, terrorist funding, illegal arms sales, smuggling, prostitution rings, insider trading, bribery and computer fraud schemes that produce large profits.

3.1. Different stages in money laundering

1. Placement: The crime money is injected into the formal financial system.
2. Layering: Money injected into the system is layered and spread over various transactions and book-keeping tricks to hide the source of origin.
3. Integration: Laundered money is withdrawn from the legitimate account to be used for criminal purposes. Now, Money enters the financial system in such a way that the original association with the crime is disassociated.  The money now can be used by the offender as legitimate money.

Money laundering can have a significant impact on economic development by:

• When money laundering occurs, it can undermine public confidence in banks and other financial institutions. This can lead to increased risk aversion and a decline in investment, which can hamper economic growth.
• Money laundering can distort economic activity by directing funds away from legitimate businesses and into criminal enterprises. This can lead to inefficient allocation of resources and slower economic growth.
• Money laundering can facilitate corruption by providing a means to conceal the proceeds of corrupt activities. This can weaken governance and undermine the rule of law, further hindering economic development.
• Money laundering can also lead to a loss of tax revenue, as criminals seek to evade taxes on their illicit gains. This can deprive governments of much-needed funds for essential services, such as education and healthcare.
• Money laundering is often used to finance organized crime groups, which can lead to an increase in violence and instability.
• Money laundering can also be used to finance terrorist activities, posing a serious threat to international security.
• Money laundering can also have a direct impact on individuals and businesses, who may lose money or be victims of fraud as a result of this crime.

The Prevention of Money-Laundering Act, 2002 (PMLA) is a comprehensive legislation enacted by the Indian Parliament to combat money laundering and other financial crimes. It aims to prevent the use of proceeds of crime, particularly those derived from drug trafficking, organized crime and corruption, from being laundered and utilized to finance further criminal activities or to gain legitimacy.

4.1. Key Features of the PMLA

• The PMLA prohibits the process of money laundering, defined as the act of concealing or disguising the proceeds of crime.
• The PMLA empowers the Enforcement Directorate (ED), the designated agency for investigating money laundering cases, to attach and seize property derived from or involved in money laundering.
• The PMLA provides for the confiscation of property that is involved in money laundering, even if it is not in the possession of the accused person.
• The PMLA grants the ED extensive powers to conduct searches, make arrests, and detain individuals suspected of money laundering.
• The PMLA facilitates international cooperation in combating money laundering through mutual legal assistance treaties and other mechanisms.

4.2. Significance of the PMLA

The PMLA has played a crucial role in strengthening India's anti-money laundering framework and enhancing its global standing in combating financial crimes. It has enabled the investigation and prosecution of numerous money laundering cases, leading to the recovery of substantial illicit funds.

4.3. Challenges in Implementing the PMLA

Despite its significance, the implementation of the PMLA has faced certain challenges, including:

• The PMLA and other laws, such as the Narcotics Drugs and Psychotropic Substances Act, have overlapping jurisdictions, which can lead to confusion and delays in investigations.
• There have been concerns about the lack of adequate safeguards against arbitrary actions and misuse of power under the PMLA.
• The ED faces resource constraints in terms of manpower and infrastructure, which can hamper its ability to effectively investigate and prosecute money laundering cases.

• The Directorate of Enforcement (ED) is an agency in India that primarily deals with the enforcement of economic laws and regulations to combat money laundering, foreign exchange violations, and financial fraud.
• The ED is part of the Department of Revenue under the Ministry of Finance, Government of India.
• The Directorate of Enforcement was established on 1st May 1956, as the "Enforcement Unit" within the Department of Economic Affairs.
• Its primary focus was on preventing and detecting violations of the Foreign Exchange Regulation Act (FERA) of 1947.
• Over the years, the agency's role expanded, and in 1999, the Enforcement Directorate was established as a separate entity under the Ministry of Finance.
• The enactment of the Prevention of Money Laundering Act (PMLA) in 2002 further broadened its jurisdiction, giving it the power to investigate cases related to money laundering.
• Since its establishment, the ED has played a crucial role in combating economic offences and ensuring compliance with economic laws in India.
• It has been involved in several high-profile cases, including those related to financial scams, money laundering by influential individuals, and cross-border financial crimes.
• The ED collaborates with various domestic and international agencies, including financial intelligence units, law enforcement agencies, and Interpol, to gather information, share intelligence, and effectively coordinate efforts to combat economic offences.

5.1. Functions and Roles of ED

• Enforcing Economic Laws: The primary function of the ED is to enforce two key economic laws in India: the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA). It ensures compliance with these laws and investigates money laundering, foreign exchange violations, and economic fraud cases.
• Money Laundering Investigations: The ED investigates cases involving money laundering, which is the process of concealing the origins of illegally obtained money to make it appear legitimate. It identifies and seizes properties and assets derived from illicit activities and prevents their further use.
• Foreign Exchange Violations: The ED is responsible for investigating cases related to violations of foreign exchange laws and regulations. It monitors and controls foreign exchange transactions to maintain the stability of the Indian rupee and prevent illegal activities such as smuggling and illegal money transfers.
• Financial Frauds: The ED also investigates and takes action against financial frauds, including bank frauds, Ponzi schemes, and other fraudulent activities affecting the Indian financial system. It works closely with other law enforcement agencies, such as the Central Bureau of Investigation (CBI), to tackle complex financial crimes.

GLACIAL LAKE OUTBURST FLOOD (GLOF)

1. Context

The flash flood that devastated Dharali village in Uttarakhand’s Uttarkashi district on August 5 has spotlighted again the threats from extreme weather events in India’s hill states.

 

2. About glacial lake outburst flood (GLOF)

• A glacial lake outburst flood (GLOF) is a type of outburst flood caused by the failure of a dam containing a glacial lake.
• An event similar to a GLOF, where a body of water contained by a glacier melts or overflows the glacier, is called a jokulhlaup.
• The dam can consist of glacier ice or a terminal moraine. Failure can happen due to erosion, a buildup of water pressure, an avalanche of rock or heavy snow, an earthquake or cryoseism, volcanic eruptions under the ice, or massive displacement of water in a glacial lake when a large portion of an adjacent glacier collapses into it.

3. About flash flooding

• Flash flooding is a rapid flooding of low-lying areas: washes, rivers, dry lakes and depressions.
• It may be caused by heavy rain associated with a severe thunderstorm, hurricane, or tropical storm, or by meltwater from ice or snow flowing over ice sheets or snowfields.
• Flash floods may also occur after the collapse of a natural ice or debris dam, or a human structure such as a man-made dam, as occurred before the Johnstown Flood of 1889.
• Flash floods are distinguished from regular floods by having a timescale of fewer than six hours between rainfall and the onset of flooding.

3.1. The reason for flash floods

There are several reasons why flash floods can occur, but the most common cause is heavy rainfall. When rain falls too quickly for the ground to absorb it, the water can run off and cause flooding. Flash floods can also be caused by:

• Thunderstorms can produce heavy rainfall, especially slow-moving or stationary thunderstorms.
• Hurricanes and tropical storms can produce heavy rainfall and storm surge, which can lead to flash flooding.
•  If a dam or levee fails, it can release a large amount of water that can cause flash flooding downstream.
• Ice jams can form when large chunks of ice break off from a glacier or river and jam together. This can block the flow of water and cause flooding upstream.
• Landslides can block rivers and streams, causing flash flooding downstream.
• Vegetation helps slow the water flow and allows it to infiltrate the ground more easily. Areas with little or no vegetation are more likely to experience flash flooding.
• Urban areas are more likely to experience flash flooding than rural areas. This is because pavement and other impervious surfaces prevent water from infiltrating the ground.

4. How did South Lhonak Lake become susceptible to GLOF?

In 2021, a study published in the journal Geomorphology warned that the lake was at risk of a catastrophic GLOF. The study also found that the lake's water volume had increased by 74% since 1962. South Lhonak Lake in Sikkim, India, has become susceptible to GLOF due to several factors, including:

• Climate change is causing glaciers in the Himalayas to melt at an accelerated rate. This is leading to the formation of new glacial lakes and the expansion of existing ones, such as South Lhonak Lake.
• South Lhonak Lake is located in a steep-sided valley with a narrow outlet. This makes it difficult for water to drain from the lake, increasing the risk of a GLOF.
• South Lhonak Lake is dammed by a moraine, which is a pile of loose rocks and debris.
• Moraines are naturally unstable and can be easily breached by heavy rainfall, earthquakes, or other triggers.
• South Lhonak Lake is a relatively deep lake, with a maximum depth of over 100 meters.
• This means that a large volume of water could be released quickly if the lake dam were to breach.
• South Lhonak Lake is also located in a seismically active region. Earthquakes can destabilize the moraine dam and trigger a GLOF.

 

Image Source: Research Gate

 

For Prelims: South Lhonak Lake, Flash Flooding, Glaciers, Glacial Lake Outburst Flood, Sikkam, Climate Change, Teesta River,  For Mains:  1. Describe the environmental and socio-economic impacts of flash floods. How can early warning systems and disaster preparedness help mitigate the risks associated with flash floods? (250 Words)

 

 

Previous Year Questions 1. On the planet earth, most of the freshwater exists as ice caps and glaciers. Out of the remaining freshwater, the largest proportion (UPSC 2013) (a) is found in the atmosphere as moisture and clouds (b) is found in freshwater lakes and rivers (c) exists as groundwater (d) exists as soil moisture Answer: C   2. Consider the following pairs: (UPSC CSE 2019) Glacier                          River 1. Bandarpunch           Yamuna 2. Bara                         Shigri Chenab 3. Milam                     Mandakini 4. Siachen                   Nubra 5. Zemu                      Manas Which of the pairs given above are correctly matched? A. 1, 2 and 4            B. 1, 3 and 4           C. 2 and 5           D. 3 and 5   Answer: A   3. Consider the following features related to a glacial lake outburst flood (GLOF): (UGC NET  Geography 2019) a. Involves sudden release of meltwater b. Failure of moraine and ice dam c. Large downstream discharge causing floods d. Rapid event casting for few seconds Select the correct answer from the options given below: A. (a) and (b) are correct B. (c) and (d) are correct C. (a), (b) and (c) are correct D. (b), (c) and (d) are correct   Answer: C   4. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016) 1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017 2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels. 3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change. Select the correct answer using the code given below: A. 1 and 3 only     B.  2 only        C. 2 and 3 only        D. 1, 2 and 3   Answer: B   5. A new type of El Nino called El Nino Modoki appeared in the news. In this context, consider the following statements: (UPSC 2010)  1. Normal El Nino forms in the Central Pacific ocean whereas El Nino Modoki forms in the Eastern Pacific ocean. 2. Normal El Nino results in diminished hurricanes in the Atlantic ocean but El Nino Modoki results in a greater number of hurricanes with greater frequency. 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     6. La Nina is suspected to have caused recent floods in Australia. How is La Nina different from El Nino? (UPSC 2011)  1. La Nina is characterized by unusually cold ocean temperature in the equatorial Indian Ocean whereas El Nino is characterized by unusually warm ocean temperature in the equatorial Pacific Ocean. 2. El Nino has an adverse effect on the south-west monsoon of India, but La Nina has no effect on the monsoon climate. 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: D   7. Consider the following statements:  (MPSC 2017) a. La Nina is a little girl. b. During the time of La Nina cold water in the ocean rises to the surface. c. La Nina strengthens the Indian monsoon. d. During the time of El Nino, trade winds weaken, and warm water moves east in the ocean. Which of the above statements is/are correct?  A. Only a and b          B. a, b and c         C. Only b and c           D. All of the above   Answer: D   8. With reference to Ocean Mean Temperature (OMT), which of the following statements is/are correct? (UPSC 2020) 1. OMT is measured up to a depth of 26°C isotherm which is 129 meters in the south-western Indian Ocean during January-March. 2. OMT collected during January-March can be used in assessing whether the amount of rainfall in monsoon will be less or more than a certain long-term mean. Select the correct answer using the code given below:  A. 1 only        B. 2 only              C. Both 1 and 2            D. Neither 1 nor 2   Answer: B   9. With reference to 'Indian Ocean Dipole (IOD)' sometimes mentioned in the news while forecasting Indian monsoon which of the following statements is/are correct? (UPSC 2017) 1. IOD phenomenon is characterised by a difference in sea surface temperature between tropical Western Indian Ocean and tropical Eastern Pacific Ocean. 2. An IOD phenomenon can influence an EI Nino's impact on the monsoon. Select the correct answer using the code given below:   A. 1 only    B. 2 only          C. Both 1 and 2           D. Neither 1 nor 2   Answer: B   10. "EL Nino" refers to a temperature anomaly in the ________ ocean. (NTPC 2017) A. Indian            B. Pacific        C. Southern             D. Atlantic   Answer: B   11. The Ministry of Environment, Forest and Climate Change recently published the draft Environment Impact Assessment (EIA) Notification, in 2020. Which of the following statements is correct about EIA? (Punjab Civil Service 2020) 1. It predicts the effect of a proposed industrial/infrastructural project on the environment. 2. It prevents the proposed activity/project from being approved without proper oversight or taking adverse consequences into account. 3. It compares various alternatives for a project and seeks to identify the one which represents the best combination of economic and environmental costs and benefits. 4. As per the new notification, Coal and non-Coal mineral prospecting and solar photovoltaic projects do not need prior environmental clearance. Select the correct answer using the code given below: A. Only 1 and 2 B. Only 2, 3 and 4 C. Only 1, 2 and 3 D. Only 1, 2 and 4   Answer: D   12. In the context of India’s preparation for Climate -Smart Agriculture, consider the following statements: (UPSC 2021) 1. The ‘Climate-Smart Village’ approach in India is part of a project led by the Climate Change, Agriculture and Food Security (CCAFS), an international research program. 2. The project of CCAFS is carried out under the Consultative Group on International Agricultural (CGIAR) headquartered in France. 3. The International Crops Research Institute for the Semi-Arid Tropics (ICRISAT) in India is one of the CGIAR’s research centers. Which of the statements given above is correct? (a) 1 and 2 only                (b) 2 and 3 only              (c) 1 and 3 only                      (d) 1, 2 and 3   Answer: D     13. Consider the following statements:  (UPSC 2017)  1. In India, the Himalayas are spread over five States only. 2. Western Ghats are spread over five States only. 3. Pulicat Lake is spread over two States only. Which of the statements given above is/are correct? A. 1 and 2 only        B. 3 only            C. 2 and 3 only          D. 1 and 3 only   Answer: B   14. Which of the following statements in respect of landslides are correct? (NDA 2022) 1. These occur only on gentle slopes during rain. 2. They generally occur in clay-rich soil. 3. Earthquakes trigger landslides. Select the correct answer using the code given below. A. 1 and 2         B. 2 and 3            C. 1 and 3              D. 1, 2 and 3  Answer: B 15. With reference to River Teesta, consider the following statements: (UPSC 2017)  1. The source of river Teesta is the same as that of Brahmaputra but it flows through Sikkim. 2. River Rangeet originates in Sikkim and it is a tributary of river Teesta. 3. River Teesta flows into the Bay of Bengal on the border of India and Bangladesh. Which of the statements given above is/are correct? A. 1 and 3 only         B. 2 only          C. 2 and 3 only        D. 1, 2 and 3 Answer: B 16. Teesta River is the tributary of _______. (Kerala PSC Secretariat Assistant 2018)  A. Ganga   B.  Yamuna         C. Brahmaputra           D. Narmada Answer: C Mains 1.Describe the various causes and the effects of landslides. Mention the important components of the National Landslide Risk Management Strategy. (2021, GS3) 2.Discuss the recent measures initiated in disaster management by the Government of India departing from the earlier reactive approach. (2020, GS3) 3.Vulnerability is an essential element for defining disaster impacts and its threat to people. How and in what ways can vulnerability to disasters be characterized? Discuss different types of vulnerability with reference to disasters. (2019, GS3) 4.Disaster preparedness is the first step in any disaster management process. Explain how hazard zonation mapping will help disaster mitigation in the case of landslides. (2019, GS3) 5.How important is vulnerability and risk assessment for pre-disaster management? As an administrator, what are key areas that you would focus on in a Disaster Management System? (2013, GS3)

Source: indianexpress

 

 

AGE OF CONSENT

 

 

1. Context

The “age of consent” debate has re-emerged, this time in the Nipun Saxena and Anr vs Union of India PIL pending in the Supreme Court. The Court will examine whether the age of “consensual” sexual relationships, which is currently pegged at 18, needs to be reduced, under the Protection of Children from Sexual Offences (POCSO) Act, 2012.

 

2. What is the age of consent?

 

• The age of consent is the legally defined age at which a person is considered competent to give valid and informed agreement to engage in sexual activity. It exists to protect individuals—particularly minors—from exploitation, coercion, and abuse by ensuring that only those deemed mature enough can legally consent.
• The concept is rooted in the recognition that younger individuals may lack the emotional, psychological, and social maturity to fully understand the consequences of such activities.
• The exact age varies from country to country, and sometimes even between states or regions within the same country, depending on cultural norms, social attitudes, and legal traditions.
• In some jurisdictions, there are also “close-in-age” or “Romeo and Juliet” exemptions, which allow consensual relationships between people who are both below or near the age of consent, provided their age difference is small.
• Importantly, age of consent laws often operate alongside other legal provisions, such as those addressing abuse of authority or consent obtained through deception, intoxication, or threats—meaning that even if a person is above the legal age, consent must still be freely given and informed.
• In many legal systems, engaging in sexual activity with someone below the age of consent is treated as statutory rape or a similar offense, regardless of whether the younger person appears to agree

 

3. What is the reasoning given to reduce the age of consent to 16 years?

 

• The reasoning often given for reducing the age of consent from 18 to 16 years—especially in the Indian context—comes from a mix of social, legal, and practical considerations.
• One major argument is that many older adolescents, particularly in the 16–18 age group, are already engaging in consensual romantic relationships.
• Under current Indian law, even if the relationship is consensual, any sexual activity is treated as statutory rape under the Protection of Children from Sexual Offences (POCSO) Act, because the legal age of consent is 18.
• This has led to situations where boys—sometimes just a year or two older than their partners—are prosecuted as criminals, often at the complaint of parents who disapprove of the relationship. Supporters of the change argue that this criminalises normal adolescent behaviour and ends up harming the very individuals the law is meant to protect.
• Another reasoning is rooted in the idea of aligning law with social realities. In many parts of the world, the age of consent is 16, and reducing it could bring India closer to international norms.
• Advocates argue that such a change would still protect younger adolescents, while also recognising the growing maturity, awareness, and autonomy of older teenagers.
• There’s also a public health and trust dimension: if the law allows consensual relationships at 16, teenagers may feel more comfortable seeking sexual health services, guidance, and education without fear of legal consequences. This could promote safer practices and reduce risks such as unwanted pregnancies and sexually transmitted infections.
• However, most proposals for lowering the age of consent include safeguards—such as keeping stricter penalties for relationships with large age gaps or where there is coercion, manipulation, or abuse of authority—so that the law still protects minors from exploitation while avoiding the criminalisation of genuine peer relationships

 

4. What is the POCSO Act?

 

• The Protection of Children from Sexual Offences (POCSO) Act, 2012 is a special law in India designed to protect anyone below 18 years of age from sexual abuse and exploitation.
• It was enacted because existing laws at the time were seen as inadequate for addressing the wide range of sexual crimes against children and for ensuring child-friendly procedures during investigation and trial.
• The Act defines a child as any person under 18 years of age and recognises various forms of sexual offences, including penetrative and non-penetrative assault, sexual harassment, and the use of children for pornographic purposes. One of its key features is that it is gender-neutral, meaning it protects both boys and girls and treats the offender the same regardless of gender.
• To ensure justice is delivered sensitively, the POCSO Act mandates child-friendly procedures—such as recording the child’s statement at their home or a safe place, ensuring the presence of a trusted adult during questioning, and protecting the child’s identity from being revealed in public.
• It also requires that investigations be completed quickly, ideally within two months, and trials be conducted in special courts to avoid unnecessary delays.
• Importantly, the Act sets the age of consent at 18, which means that any sexual activity involving a person below 18—whether consensual or not—is legally considered an offence. This provision is intended to shield minors from exploitation, but it has also sparked debates when applied to consensual teenage relationships

 

5. How does the POSCO Act define a child?

 

• Under the Protection of Children from Sexual Offences (POCSO) Act, 2012, a child is defined very clearly and simply as any person below the age of 18 years.
• This definition is absolute—it doesn’t matter if the person is male or female, mature or immature, married or unmarried. The moment someone is under 18, the law treats them as a child for the purposes of protection against sexual offences.
• Because of this definition, the Act automatically applies to all sexual activity involving anyone under 18, even if it’s between two teenagers in a consensual relationship. This is one of the main reasons why the age of consent in India is legally set at 18, and why the POCSO Act plays such a central role in the debate about lowering it to 16

 

6. What is the Law Commission of India (LCI) recommendation on the age of consent under the POSCO Act?

 

 

• The Law Commission of India (LCI), in its 283rd Report submitted on September 29, 2023, recommended that the legal age of consent under the POCSO Act remain at 18 years, rather than lowering it to 16—even amid pressure from high courts urging reconsideration in light of consensual adolescent relationships
• The Commission emphasized that adolescents aged 16–18 are still children who need protection. Lowering the age of consent, it argued, could undermine efforts to combat child trafficking and child marriage, and potentially weaken the POCSO Act to the point where it becomes merely symbolic rather than effective
• Instead of altering the age threshold, the LCI proposed a nuanced solution: introducing guided judicial discretion. In cases where there is tacit approval (i.e., factual but not legal consent) between minors in consensual relationships, courts could apply less severe sentencing—rather than imposing the mandatory minimum penalties applicable to more exploitative conduct
• This approach aims to strike a balance: preserving robust protections for children under 18 while allowing some legal leniency in specific circumstances where prosecution would seem unjust—such as consensual adolescent romance without coercion
• The Law Commission recommended maintaining the age of consent at 18 years under the POCSO Act. Rather than lowering it, they suggested judicial discretion to allow for more compassionate handling of consensual relationships between minors aged 16–18

 

7. Way Forward

 

 

In September 2010, the Ministry of Women and Child Development introduced a draft of the Protection of Children from Sexual Offences Bill, which, after multiple revisions, was enacted as the POCSO Act on 14 November 2012, coinciding with Children’s Day.

Under the Act, offences are classified as cognizable and non-bailable, meaning authorities can arrest without a warrant, and the granting of bail is not automatic. However, the legislation does not lay down explicit statutory criteria for granting bail.

The Act sets the age of consent at 18, so any sexual activity involving a person below this age is deemed an offence, regardless of whether it was voluntary. This often leads to legal complications in situations where adolescents engage in consensual relationships but later face criminal prosecution

 

For Prelims: Law Commission of India (LCI) , Protection of Children from Sexual Offences (POCSO) Act, 2012, age of consent   For Mains: GS II - Governance

 

 

Source: Indianexpress

 

 

WORLD ECONOMIC OUTLOOK

 

 

1. Context

 

On July 29, the International Monetary Fund (IMF) released the latest update of its World Economic Outlook (WEO). The WEO is the IMF’s benchmark publication as it provides a comprehensive picture of the global economy as well as details of individual countries. In this context, knowing about the WEO, its highlights becomes important. 

 

2. Key takeaways of World economic outlook (WMO)

 

 

• The International Monetary Fund (IMF) publishes its World Economic Outlook (WEO) twice a year—in April and October—and issues two interim updates in January and July. The release on 29 July was the July update to the April WEO.
• The essence of the updated report is reflected in its title: “Global Economy: Tenuous Resilience amid Persistent Uncertainty.” It delivers two key messages about the current global scenario: the world economy has shown resilience, though fragile, and its future remains clouded by ongoing uncertainty.
• Resilience here means that, despite major disruptions such as the Covid-19 pandemic, the Russia–Ukraine war, and the wave of tariffs imposed during the second Trump administration, the global economy has managed to sustain growth.
• According to the IMF’s latest projections, global growth is expected to reach 3.0% in 2025 and 3.1% in 2026, which is 0.2 percentage points higher for 2025 and 0.1 points higher for 2026 compared to the April 2025 forecast.
• However, this resilience is described as “tenuous” because it rests on uncertain foundations. While the tariff outlook is somewhat less alarming than it appeared in April—when President Trump first announced them on Liberation Day—the final tariff rates remain unclear

 

3. Growth data of individual countries

 

• At present, much of the global policy uncertainty is originating from the United States, which is projected to lose economic momentum in 2025 compared to the robust performance of the past two years. By the close of 2025, the US GDP is expected to hover around $31 trillion, with growth slowing further to just 1.2% in 2026.
• In contrast, China—seen as the US’s primary economic rival—is likely to experience only a slight deceleration, maintaining a strong growth rate of 4.8% despite having an economy exceeding $19 trillion annually.
• India, meanwhile, remains a standout performer on the global stage, with growth projected at 6.4% in 2025. Although this is slower than its 2023 pace, sustaining a rate above 6% in a world where many major economies struggle to achieve even one-third of that puts India on a steady path to narrowing the economic gap and surpassing more developed nations in total GDP over time

 

4. International Monetary Fund (IMF)

 

 

• Founded in 1945, the International Monetary Fund (IMF) aims to foster sustainable growth and prosperity across its 191 member nations. It works toward this goal by promoting economic policies that strengthen financial stability and encourage monetary cooperation—both vital for boosting productivity, generating employment, and enhancing overall economic well-being.
• The IMF’s core objectives are threefold: to advance international monetary cooperation, to support the growth of global trade and economic activity, and to discourage measures that could undermine global prosperity.
• Unlike development banks, the IMF does not fund specific infrastructure or development projects.
• Instead, it offers financial assistance to countries in crisis, giving them the fiscal space to implement reforms that restore stability and growth. It also extends precautionary support to help nations avoid potential crises.
• The Board of Governors is the IMF’s highest decision-making authority, typically meeting once a year.
• Each member nation appoints one governor—usually its finance minister or central bank governor—and one alternate governor. All powers of the IMF rest with this Board, though most are delegated to the Executive Board.
• The Executive Board handles the IMF’s day-to-day operations. It consists of 25 Directors—elected either by individual member countries or groups of countries—along with the Managing Director, who chairs the Board.

 

5. Global Financial Stability Report

 

 

• The Global Financial Stability Report (GFSR) is a flagship publication of the International Monetary Fund (IMF) that assesses the health and stability of the global financial system. It is typically released twice a year—in April and October—alongside interim updates if needed.
• The GFSR’s primary purpose is to identify emerging vulnerabilities in global financial markets, evaluate potential risks to economic stability, and suggest policy actions to mitigate those risks. It draws on financial market data, economic indicators, and policy developments from across the world, offering both a near-term outlook and a medium-term assessment.
• In its analysis, the report examines trends in areas such as credit flows, asset prices, banking sector performance, capital market conditions, and the impact of global events like geopolitical tensions or commodity price shocks.
• It also highlights systemic risks—issues that could have widespread consequences if left unaddressed—such as excessive debt levels, market volatility, or weaknesses in regulatory frameworks.
• The GFSR is widely used by governments, central banks, investors, and academics to guide policy decisions, strengthen financial safeguards, and prepare for potential crises. By providing a global perspective, it helps countries understand how interconnected financial systems are and why local policies must account for international developments

 

6. Reports released by International Monetary Fund (IMF)

 

 

The International Monetary Fund (IMF) releases several important reports that provide insights into the global economy, financial markets, and fiscal health of member countries. Some of its key publications include:

• World Economic Outlook (WEO) – Published twice a year (April and October) with interim updates in January and July, this report analyzes global economic trends, growth projections, and policy recommendations.

• Global Financial Stability Report (GFSR) – Released twice a year, it assesses the health of the global financial system, identifies vulnerabilities, and suggests measures to safeguard stability.

• Fiscal Monitor (FM) – Also published twice a year, it examines public finance developments worldwide, offering analysis on government budgets, debt sustainability, and fiscal policies.

• External Sector Report (ESR) – An annual report that reviews global external positions, exchange rates, trade balances, and capital flows, with a focus on imbalances and their policy implications.

• Regional Economic Outlooks (REO) – Periodic reports covering specific regions such as Asia-Pacific, Sub-Saharan Africa, Europe, Middle East and Central Asia, and the Western Hemisphere, analyzing regional growth trends and risks.

• Article IV Consultation Reports – Country-specific assessments conducted annually under the IMF’s surveillance framework, evaluating economic conditions and policy advice for individual member nations.

• Global Policy Agenda – A strategic document outlining the IMF’s policy priorities and recommendations for fostering global stability and growth

 

 

For Prelims: Rapid Financing Instrument, International Monetary Fund, Special Drawing Rights (SDRs)   For Mains: GS II - Reports

 

Previous Year Questions   1.“Rapid Financing Instrument” and “Rapid Credit Facility” are related to the provisions of lending by which one of the following? (UPSC CSE 2022) (a) Asian Development Bank (b) International Monetary Fund (c) United Nations Environment Programme Finance Initiative (d) World Bank Answer (b)   2.‘Global Financial Stability Report’ is prepared by the (UPSC CSE 2016) (a) European Central Bank (b) International Monetary Fund (c) International Bank for Reconstruction and Development (d) Organization for Economic Cooperation and Development Answer (b)

 

Source: Indianexpress

 

 

UNIQUE IDENTIFICATION AUTHORITY OF INDIA (UIDAI)

 

 

 

1. Context

 

This Independence Day, freedom is just a glance away. Aadhaar Face Authentication lets Aadhaar holders verify their identity instantly, securely, and contactless anytime, anywhere, no documents needed.

On 10 August 2025, UIDAI celebrated a landmark 200 crore transactions of Face Authentication, showcasing India’s rapid move towards seamless, secure, and paperless authentication.

2. Aadhar fingerprint technology work

• The technology uses a combination of both finger minutiae and finger image to check the liveness of the fingerprint captured
• The measure was implemented after instances of people creating fake fingerprints using silicone to syphon off money from unsuspecting individuals’ bank accounts were reported
• Aadhaar fingerprint technology works by using a scanner to capture the unique patterns of ridges and valleys on a person's finger.
• The scanner converts the fingerprint image into a digital algorithm, which is then stored in a database.
• When a person's fingerprint is scanned again, the algorithm is used to compare it to the stored fingerprint. If the two algorithms match, the person is authenticated.
• The Aadhaar fingerprint technology is very accurate, with a false acceptance rate of less than 0.0001%.
• This means that there is a very small chance that someone else's fingerprint will be mistakenly matched to yours

3. Payment frauds

• According to the Home Ministry, in the financial year 2020-21, 2.62 lakhs financial crimes, such as money laundering, bribery, corruption and different kinds of frauds, were reported
• The number jumped to 6.94 lakhs in 2022, a report, released by the Standing Committee on Finance
• Citing data it received from the supervised entities of the Reserve Bank of India (RBI), the committee noted that payment-related frauds are on the rise in India 
• In FY21, the volume of such frauds was a little over 700,000, which by FY23, increased to close to 20 million. 

4.Can technology solve fraud problem

Deploying technological measures to curtail financial frauds has its own limits, though.

For instance, they have failed to thwart a number of frauds related to AePS, in which a business correspondent, a key member in the payment supply chain, is the culprit

A business correspondent (BC) is an informal bank agent equipped with a biometric Point-of-Sale (PoS) machine, which works like a micro ATM

5. About the Unique Identification Authority of India (UIDAI)

1. The Unique Identification Authority of India (UIDAI) is a statutory authority established in January 2009 by the Government of India under the provisions of the Aadhaar Act, 2016. UIDAI is responsible for issuing unique identification numbers, known as Aadhaar numbers, to residents of India
2. The primary objective of UIDAI is to provide a unique and verifiable identity to every Indian resident, regardless of age, gender, or socioeconomic status
3. The UIDAI is responsible for issuing Aadhaar, a 12-digit unique identification number to all residents of India.

Aadhaar is a proof of identity and address, and can be used for a variety of purposes, such as:

• Accessing government services
• Opening bank accounts
• Making payments
• Traveling
• Enrolling in school

6. Way forward

Aadhaar has been integrated into various welfare schemes and government services, making it an essential part of India's digital identity infrastructure. However, it has also raised concerns about privacy, data security, and potential misuse of personal information. The Indian government has taken steps to address these concerns and improve the security and accessibility of Aadhaar services

 

 

For Prelims: UIDAI, Aadhar, Cybercrime For Mains: 1.Discuss the potential cybersecurity risks and challenges associated with the Aadhaar biometric authentication system in India. What measures should be taken to mitigate these risks effectively? 2.Analyze the role of Aadhaar in combating cybercrimes in India. How can Aadhaar's unique identification system be leveraged to enhance cybersecurity and protect individuals from online threats?

 

Previous year Questions 1. Consider the following Statements (UPSC CSE 2018) 1. Aadhar card can be used as proof of citizenship or domicile 2.Once issued, the Aadhar number cannot be deactivated or omitted by the issuing Authority Which of the statements given above is/ or Correct? A. 1 Only B. 2 Only C. Both 1 and 2 D. Neither 1 nor 2 Answer- D 2.Consider the following statements 1. Aadhar card data cannot be stored more than three months 2.State cannot enter into any contract with private corporations for sharing Aadhar data 3.Aadhar is mandatory for obtaining insurance products  4. Aadhar is mandatory for getting benefits funded out of the Consolidated fund of India Which of the statements given above is/ are correct A. 1 and 4 B. 2 and 4 C. 3 Only D. 1, 2 and 3 Answer - B

Source: indianexpress

 

 

ARCHAEOLOGICAL SURVEY OF INDIA (ASI)

 

 

 

1. Context

 

The Archaeological Survey of India (ASI) protects monuments and archaeological sites that have been declared asof national importance. However, given the vast cultural landscape of India, state governments, local bodies, and other stakeholders are also encouraged to play a role in protecting and preserving local heritage.

 

 

2. What is a national monument?

A national monument is a protected area or site that has been designated by a government or other authority as having national significance. These monuments can be natural, cultural, or historical landmarks and are usually protected from development or other activities that could damage or destroy them. National monuments are often open to the public and may have visitor centers, trails, and other facilities to help people learn about and appreciate them. They are typically managed by government agencies or non-profit organizations that work to preserve and protect them for future generations.

 

3. About Archaeological Survey of India (ASI)

• The ASI was founded in 1861 by Alexander Cunningham, when he realised the need for a permanent body to oversee archaeological excavations and conservation.
• But while the body remained largely dysfunctional in the 19th century owing to fund crunch, in the decades preceding Independence, it became very active.
• A bulk of the protected monuments were taken under the ASI’s wings during the 1920s and30s, up till the 50s.
• But in the decades after independence, the focus of successive governments was on health, education and infrastructure, rather than protecting heritage.
• Even within the scope of heritage, the aim was to uncover more monuments and sites, instead of conservation.

Powers

• The ASI operates under the Ancient Monuments and Archaeological Sites and Remains Act, 1958, which empowers it to protect and manage monuments and archaeological sites of national importance.
•  The ASI formulates and enforces regulations related to archaeological activities, including excavations, conservation, and publication of findings.
• The ASI issues licenses for excavations, export of antiquities, and trade in archaeological objects.

Functions

• The ASI undertakes conservation and restoration of protected monuments and sites. This includes structural repairs, chemical preservation, and environmental management.
• The ASI conducts archaeological excavations to uncover historical remains, understand past civilizations, and enrich our knowledge of history.
• The ASI conducts research on various aspects of archaeology and publishes findings in reports, journals, and books.
• The ASI studies ancient inscriptions and coins to understand language, history, and economic systems.
• The ASI manages site museums at various monuments and archaeological sites to showcase artifacts and educate the public.
• The ASI conducts educational programs and outreach activities to raise public awareness about India's cultural heritage.

Role

• The ASI plays a vital role in preserving India's rich cultural heritage for future generations. It safeguards monuments and sites that represent diverse periods and cultures, fostering national identity and pride.
• By protecting and promoting historical sites, the ASI contributes significantly to India's tourism industry. Well-maintained monuments attract visitors, generating revenue and local economic benefits.
• The ASI's research activities contribute to our understanding of India's history, culture, and society. This knowledge enriches academic fields and informs public discourse.

Mandate

• To protect and preserve monuments and archaeological sites of national importance.
• To conduct research and excavations to understand India's past.
• To educate the public about India's cultural heritage.
• To promote tourism by developing and maintaining historical sites.

 

Significance

• The ASI is responsible for protecting and preserving India's archaeological sites, monuments, and artifacts. This includes conducting conservation and restoration work to ensure that these cultural treasures are maintained for future generations.
• India is home to numerous world-renowned archaeological sites and monuments, such as the Taj Mahal, Qutub Minar, and Ajanta and Ellora Caves. The ASI's efforts to preserve and promote these sites contribute to the country's tourism industry, attracting millions of visitors from around the world each year.
• India's rich cultural heritage is an integral part of its identity. The ASI's work helps to preserve and promote this heritage, fostering a sense of pride and connection among the country's citizens.
• The ASI conducts research and documentation on India's archaeological heritage, contributing to the understanding of the country's history and culture. It also plays a role in educating the public about India's archaeological sites and artifacts through exhibitions, publications, and educational programs.
• The ASI enforces laws and regulations related to the protection and preservation of India's cultural heritage. This includes the Ancient Monuments and Archaeological Sites and Remains Act, 1958, which provides legal protection to ancient monuments and archaeological sites in India.

 

4. The Way Forward

The Archaeological Survey of India plays an indispensable role in safeguarding and interpreting India's rich cultural heritage. Their efforts not only preserve the past but also contribute to academic knowledge, national identity, and economic development. As India navigates the future, the ASI's work remains vital in ensuring that its cultural legacy continues to inspire and educate generations to come.

 

For Prelims: Ancient Monuments and Archaeological Sites and Remains Act, 1958, ASI,  For Mains:  1. Critically evaluate the role of ASI in fostering national identity and pride in India. How does their work contribute to social cohesion and understanding of diverse historical periods and cultures? (250 Words) 2. Evaluate the potential conflicts between preservation of cultural heritage and development projects. Suggest strategies for achieving a sustainable balance between economic progress and protection of historical sites. (250 Words)

 

Previous year UPSC Mains Question Covering similar theme: 1.The rock-cut architecture represents one of the most important sources of our knowledge of early Indian art and history. Discuss. (GS 1, 2020) 2. Safeguarding the Indian Art Heritage is the need of the moment. Discuss. (GS 1, 2019)

 Source: The Indian Express