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DAILY CURRENT AFFAIRS, 13 AUGUST 2025

IMPEACHMENT OF A JUDGE

 
 
 
1.Context
Lok Sabha Speaker Om Birla on Tuesday set in motion the process of removing Justice Yashwant Varma of Allahabad High Court by admitting a motion, signed by 146 members, and constituting a three-member inquiry committee to probe the charges against Justice Varma.
 
2. Impeachment of a Judge
 
  • The impeachment of a judge is a formal process by which a judge is removed from office for misconduct or incapacity. It is a serious matter that requires a high degree of evidence and a rigorous legal process.
  • In India, the impeachment process is governed by the Judges Inquiry Act, 1968. The process can be initiated by either the Lok Sabha (lower house of Parliament) or the Rajya Sabha (upper house of Parliament). To initiate the process, a minimum of 100 members of the Lok Sabha or 50 members of the Rajya Sabha must sign a notice.
  • Once the notice is received, a motion for impeachment is moved in the respective house. If the motion is passed by a special majority (two-thirds of the members present and voting), the matter is referred to a committee of inquiry. The committee investigates the allegations against the judge and submits a report to the respective house.
  • If the committee finds the allegations to be true, the house can pass a resolution for the removal of the judge. The resolution must also be passed by a special majority in the other house. Finally, the President of India issues an order removing the judge from office.
  • The impeachment process is a complex and lengthy one. It is designed to ensure that judges are held accountable for their actions, but also to protect them from frivolous or politically motivated attacks
 
3. Procedure for Impeachment
 

  • Initiation:

    • A motion must be signed by:
      • 100 Members of Lok Sabha, or
      • 50 Members of Rajya Sabha.
    • The motion is submitted to the Speaker (Lok Sabha) or the Chairman (Rajya Sabha).

  • Preliminary Inquiry:

    • The Speaker/Chairman decides whether to admit the motion.
    • If admitted, a three-member committee is constituted to investigate. This committee consists of:
      1. A Supreme Court judge.
      2. A High Court Chief Justice.
      3. A distinguished jurist.

  • Investigation by the Committee:

    • The committee examines evidence and determines whether the charges are valid.
    • If charges are proven, the process continues in Parliament.

  • Parliamentary Approval:

    • Both Houses of Parliament must approve the motion with a special majority:
      • A majority of the total membership of the House.
      • A majority of not less than two-thirds of members present and voting.

  • Presidential Assent:

    • Once both Houses approve, the motion is sent to the President.
    • The President orders the judge's removal.
 
4. Instances of Judge Impeachment Process in India
 

Justice V. Ramaswami (Supreme Court Judge, 1993)

  • Allegations:
    Misuse of office, including extravagant spending on official residence and irregularities in financial matters.
  • Process:
    • An inquiry committee was set up, which found him guilty of several charges.
    • However, the impeachment motion in the Lok Sabha failed as the Congress Party abstained from voting, preventing the required special majority.
  • Outcome:
    Justice Ramaswami was not removed but became the first judge against whom impeachment proceedings were initiated.

Justice Soumitra Sen (Calcutta High Court, 2011)

  • Allegations:
    Misappropriation of funds while acting as a court-appointed receiver in 1993, prior to his appointment as a judge.
  • Process:
    • An impeachment motion was passed in the Rajya Sabha with a majority.
    • Before the Lok Sabha could vote, Justice Sen resigned, making the impeachment process moot.
  • Outcome:
    Justice Sen avoided impeachment by resigning.

Justice Dipak Misra (Chief Justice of India, 2018)

  • Allegations:
    Misuse of authority, including irregularities in assigning cases and other charges.
  • Process:
    • An impeachment motion was signed by 71 members of the Rajya Sabha and submitted to the Chairman.
    • The Rajya Sabha Chairman, Venkaiah Naidu, rejected the motion, stating it lacked substantial merit.
  • Outcome:
    The impeachment did not proceed
 
5. Different Majority rules in the Indian Parliament
 
The Indian Parliament employs various majority rules to ensure that decisions are made with the necessary level of consensus and support. Here are the different types of majorities used:
 

Types of Majority Rules in Indian Parliament:

Simple Majority (50% + 1)
  • Most common voting procedure
  • Requires more than half of the members present and voting
  • Used for:
    • Passing ordinary legislation
    • Routine parliamentary decisions
    • No-confidence motions
    • Most day-to-day parliamentary proceedings
Absolute Majority
  • Requires support of more than 50% of the total membership of the house
  • Includes members not just present, but the entire strength of the house
  • Used for:
    • Passing money bills
    • Confidence motions
    • Electing the Speaker of Lok Sabha
    • Removing the Speaker from office
Special Majority (Special Majority Rules) a) Two-thirds Majority
  • Requires support of two-thirds of members present and voting
  • Used for:
    • Constitutional amendments
    • Impeachment of President
    • Declaring a national emergency
    • Passing certain critical resolutions
b) Special Majority in Rajya Sabha
  • Requires a special majority for certain constitutional amendments
  • Needs majority of total membership AND two-thirds of members present and voting
Qualified Majority
  • Specific percentage of total membership required
  • Often used in specific constitutional provisions
  • Typically ranges between 50-66% depending on the specific constitutional requirement
Effective Majority
  • Considers actual voting strength after subtracting abstentions
  • Relevant in scenarios with multiple parties and complex parliamentary dynamics
Weighted Majority
  • Less common, but used in some specific parliamentary procedures
  • Gives different weights to votes based on certain predefined criteria

Important Considerations:

  • Quorum requirements must be met for voting
  • Voting can be by voice vote, division (counted vote), or ballot
  • Electronic voting has been introduced in recent years
  • Presiding officer has significant discretion in interpreting majority rules
 
 
 
For Prelims:  Article 368 (most amendments, except for a few requiring ratification by states)
 
For Mains: GS Paper II - Governance, Constitution, and Judiciary
 
Source: The Hindu
 
 

RETAIL INFLATION

 

1. Context

Retail inflation in India slipped to 1.55% in July, its lowest rate since June 2017, driven by a drop in food prices. This is below the Reserve Bank of India’s comfort band of 2% to 6%. The Consumer Price Index (CPI), released by the Ministry of Statistics and Programme Implementation on Tuesday, showed that inflation has been easing for nine consecutive months.

2. What is Inflation?

  • It is the rise in prices of goods and services within a particular economy wherein consumers' purchasing power decreases, and the value of the cash holdings erodes.
  • In India, the Ministry of Statistics and Programme Implementation (MoSPI) measures inflation.
  • Some causes that lead to inflation are demand increases, reduction in supply, demand-supply gap, excess circulation of money, increase in input costs, devaluation of the currency, and rise in wages, among others.

3. Retail Inflation

Consumers often directly buy from retailers. So, the inflation experienced at retail reflects the actual price rise in the country. It also shows the cost of living better. In India, the index that reflects the inflation rate at the retail level is known as Consumer Price Index (CPI). Unlike WPI, CPI includes both goods and services. CPI is used to calculate the Dearness Allowance (DA) for government employees.

4. How Inflation is measured?

  • In India, inflation is primarily measured by two main indices- WPI (Wholesale Price Index) and CPI (Consumer Price Index), Which measures Wholesale and retail-level price changes, respectively.
  • The CPI calculates the difference in the price of commodities and services such as food, medical care, education, electronics, etc, which Indian consumers buy for use.
  • On the other hand, the goods or services sold by businesses to smaller businesses for selling further are captured by the WPI.
  • Both WPI (Wholesale Price Index) and CPI (Consumer Price Index) are used to measure inflation in India. 

5. What is the Inflation Target?

  • Under Section 45ZA, in consultation with the RBI Act, the Central Government determines the inflation target in terms of the Consumer Price Index (CPI), once in five years and notifies it in the Official Gazette.
  • Accordingly, on August 5, 2016, the Central Government notified in the Official Gazette 4 percent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016, to March 31, 2021, with the upper tolerance limit of 6 percent and the lower tolerance limit of 2 percent.
  • On March 31, 2021, the Central Government retained the inflation target and the tolerance band for the next 5-year period-April 1, 2021 to March 31, 2026.
  • Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target.

6. Monetary Policy Committee (MPC)

  • The MPC is a statutory and institutionalized framework under the RBI Act, of 1934, for maintaining price stability, keeping in mind the objective of growth. It was created in 2016.
  • It was created to bring transparency and accountability in deciding monetary policy.
  • MPC determines the policy interest rate required to achieve the inflation target.
  • The committee comprises six members and Governor RBI acts as an ex-officio chairman. Three members are from RBI and three are selected by the government. The inflation target is to be set once every five years. It is set by the Government of India, in consultation with the Reserve Bank of India.
  • The current inflation target is pegged at 4% with -2/+2 tolerance till March 31, 2021.

7. What Caused the drop in Inflation?

  • Retail Inflation or price gains based on the Consumer Price Index, slowed to 6.77 % last month, from September's 7.41%, aided by an appreciable deceleration in food price inflation.
  • The year-on-year inflation based on the Consumer Food Price Index eased by almost 160 basis points in October, to 7.01%, from the preceding month's 8.60%, helped by a 'decline in prices of vegetables, fruits, pulses and oils, and fats', the Government said.
  • With the food and beverages sub-index representing almost 46% of the CPI's weight, the slowdown in food price gains understandably steered overall inflation lower even as price gains in three other essential categories, namely clothing, and footwear, housing, and health remained either little changed from September or quickened.
  • Inflation at the Wholesale Prices Level also continued to decelerate, with the headline reading easing into single digits for the first time in 19 months. A favorable base effect along with a distinct cooling in international prices of commodities including crude oil and steel amid gathering uncertainty in advanced economies was largely instrumental in tempering wholesale price gains.

8. Recent Measures by the Government

To soften the prices of edible oils and pulses, tariffs on imported items have been rationalized from time to time. The stock limits on edible oils are also maintained, to avoid hoarding.
The Government has taken trade-related measures on wheat and rice to keep domestic supplies steady and curb the rise in prices.
The impact of these measures is expected to be felt more significantly in the coming months.

For Prelims & Mains

 

For Prelims: Inflation, MPC, CPI, WPI, food Inflation, RBI, Headline inflation, Core inflation

For Mains: 
 1. Explain the concept of inflation and its impact on an economy. Discuss the various causes of inflation and the measures that can be taken to control it, with specific reference to India. (250 Words)
2. What are the challenges and opportunities associated with managing inflation in India? Evaluate the effectiveness of recent policy measures in addressing inflationary pressures and maintaining price stability. Suggest strategies for sustainable economic growth while managing inflation risks. (250 Words)
 
 
Previous Year Questions
 
1. Consider the following statements:  (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct? 
A. 1 and 2 only    B.  2 and 3 only     C. 1 and 3 only     D. 1, 2 and 3
 
 
2. Concerning the Indian economy, consider the following: (UPSC 2015)
  1. Bank rate
  2. Open Market Operations
  3. Public debt
  4. Public revenue

Which of the above is/are component(s) of Monetary Policy?

(a) 1 only   (b) 2, 3 and 4    (c) 1 and 2     (d) 1, 3 and 4

 

3. An increase in Bank Rate generally indicates: (UPSC 2013)

(a) Market rate of interest is likely to fall.
(b) Central bank is no longer making loans to commercial banks.
(c) Central bank is following an easy money policy.
(d) Central bank is following a tight money policy.
 

4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 

1. It decides the RBI's benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

A. 1 only      B.  1 and 2 only      C. 3 only      D. 2 and 3 only

 
5. Read the following passage and answer the question that follows. Your answers to these items should be based on the passage only.
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
With reference to the above passage, the following assumptions have been made: (UPSC 2021)
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies. Which of the above assumptions is/are valid?
A. 1 only        B. 2 only           C. Both 1 and 2         D.  Neither 1 nor 2
 
 
6. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct? 
A. 1 and 2 only          B. 2 and 3 only        C. 1 and 3 only          D. 1, 2 and 3
 
 
7. With reference to inflation in India, which of the following statements is correct? (UPSC 2015) 
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
 
 
8. 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
 
Answers: 1-C, 2-C, 3-D, 4-A, 5-D, 6-B, 6-C, 7-B
 
 
Source: The Hindu
 
 

ELECTION COMMISSION OF INDIA (ECI)

 
 
1. Context
 
The Election Commission on Saturday said it has delisted 344 Registered Unrecognised Political Parties (RUPPs) for failing to comply with the conditions for registration as political parties under the Representation of the People Act, 1951. 
 
2. Election Commission of India (ECI)
 
  • The Election Commission of India (ECI) is a permanent and independent constitutional body tasked with ensuring the conduct of free and fair elections across the Union and States of India.
  • The ECI has the authority to supervise, direct, and manage elections to the Parliament, state legislatures, and the offices of the President and Vice President of India. However, since the ECI does not manage elections for state-level urban bodies such as municipalities and panchayats, a separate State Election Commission exists for this purpose.
  • Notably, based on Dr. B. R. Ambedkar's guidance at the Constituent Assembly, a committee tasked with addressing Fundamental Rights suggested that the independence of elections and the protection from executive interference in legislative elections should be considered a fundamental right and included in the chapter on Fundamental Rights.
  • While the idea was generally accepted, some members proposed that it be placed in a different section of the Constitution. Consequently, the Drafting Committee, following the House's decision, moved this provision from the Fundamental Rights chapter to another part of the Constitution
 
3. Constitution and Election Commission of India
 

The Constitution includes a series of articles (Articles 324–329) that grant powers to the Election Commission and outline its possible roles and responsibilities.

  • Article 324: Grants the authority for overseeing, directing, and controlling the preparation of electoral rolls and the conduct of all elections to Parliament, state legislatures, and the offices of the President and Vice-President.

  • Article 325: Prohibits exclusion from electoral rolls based on religion, race, caste, sex, or any of these factors.

  • Article 326: Establishes adult suffrage as the foundation for elections to the House of the People and State Legislative Assemblies.

  • Article 327: Allows Parliament to pass laws, in accordance with the Constitution, regarding all matters related to elections to Parliament and State Legislative Assemblies.

  • Article 328: Empowers state legislatures to enact laws concerning all matters related to elections to the state's legislative bodies.

  • Article 329: Prevents courts from interfering in electoral matters

4. ECI Responsibilities and Functions
 

The responsibilities and functions of the Election Commission of India (ECI) can be categorized into advisory, quasi-judicial, and administrative roles.

  • Advisory: The Constitution grants the ECI the authority to advise on the post-election disqualification of sitting members of Parliament and State Legislatures. The ECI is also consulted in cases where individuals are found guilty of corrupt practices during elections, as brought before the Supreme Court and High Courts, to decide if they should be disqualified from contesting future elections and for how long. In such matters, the President or, where applicable, the Governor, is required to follow the ECI's advice.
  • Quasi-Judicial: The ECI has the power to disqualify a candidate who fails to submit their election expense accounts within the legally required timeframe and format. It also has the authority to remove or reduce other legal disqualifications. Additionally, the ECI resolves disputes related to the recognition of political parties and the allocation of election symbols. The commission sets a model code of conduct and ensures compliance by all candidates and political parties during elections.
  • Administrative: The ECI's administrative duties include delimiting electoral constituencies and managing the registration of eligible voters, as well as regularly updating electoral rolls. The commission is responsible for announcing election schedules and dates, reviewing nomination documents, recognizing political parties, and assigning them election symbols. The ECI can also nullify voting in cases of violence, booth capturing, tampering, or other irregularities. It oversees the financial expenditure of political parties on candidates' campaigns impartially.

The ECI also designates specific roles to register political parties for elections and grants them the status of national or state parties based on their performance in the polls. These roles include the person in charge of elections, the District Election Officer, and the Election Registration and Returning Officer

 

5. Composition of Election Commission of India

  • Since its inception in 1950, the Chief Electoral Commissioner (CEC) was the sole member of the Election Commission of India (ECI). However, after the voting age was lowered from 21 to 18 in 1989, a large influx of new voters was added. To manage this increased workload, two additional commissioners were appointed, expanding the ECI to include three commissioners.
  • In January 1990, some changes were made to the structure of the ECI, but it was soon reverted to its original form. Following discussions and debates in the political sphere, the President ultimately reconstituted the commission in 1993, adding two more commissioners, establishing the current structure of the ECI.
  • The Chief Election Commissioner and the other election commissioners are appointed by the President, who also determines their terms of office and service conditions. All commissioners, including the CEC, receive the same salary, benefits, and powers as judges of the Supreme Court.
  • If there is a disagreement among the three members, decisions are made by a majority vote. Commissioners serve a term of up to six years or until they reach the age of 65, whichever comes first. They hold a status equivalent to that of Supreme Court justices in India.
  • The Chief Election Commissioner can only be removed from office through the same process used to remove a Supreme Court judge. This involves the President dismissing the CEC based on a resolution supported by a special majority in both Houses of Parliament, on grounds of proven misconduct or incapacity.
  • In conclusion, as outlined by the Constitution, the ECI is responsible for supervising, directing, and conducting elections for the offices of President, Vice President, state legislatures, and Parliament.
  • For elections to state-level urban bodies like municipalities and panchayats, a separate State Election Commission exists. The ECI plays a crucial role in upholding the democratic process by ensuring free and fair elections for key political positions in the country
 
For Prelims: Election Commission of India, Chief Election Commissioner, Election Commission (Conditions of Service of Election Commissioners and Transaction of Business) Act, 1991, State Election Commission, Article 324, Electronic Voting Machines (EVMs) and Voter Verified Paper Audit Trails (VVPATs).
For Mains: 1. Discuss the powers and functions of the Election Commission of India. How does the Election Commission ensure the conduct of free and fair elections in the Country? (250 words).
 

Previous year Question

1. Consider the following statements: (UPSC 2017)
1. The Election Commission of India is a five-member body.
2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
3. Election Commission resolves the disputes relating to splits/mergers of recognized political parties.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 only
C. 2 and 3 only
D. 3 only
Answer: D
 
2. Consider the following statements : (UPSC 2021)
1. In India, there is no law restricting the candidates from contesting in one Lok Sabha election from three constituencies.
2. In the 1991 Lok Sabha Election, Shri Devi Lal contested from three Lok Sabha constituencies.
3. As per the- existing rules, if a candidate contests in one Lok Sabha election from many constituencies, his/her party should bear the cost of bye-elections to the constituencies vacated by him/her in the event of him/her winning in all the constituencies.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. 1 and 3
D. 2 and 3
Answer: B
Source: Indianexpress
 
 

RCEP

 

1. Context

 India’s last-minute decision in November 2019 to withdraw from joining the Regional Comprehensive Economic Partnership (RCEP), a mega-regional pact and the most expansive regional trade agreement that India had ever negotiated, was triggered by a belated rethink in New Delhi policy circles.

2. Regional Comprehensive Economic Partnership (RCEP)

  • The Regional Comprehensive Economic Partnership (RCEP) is a significant free trade agreement (FTA) that was signed on November 15, 2020.
  • It is a comprehensive trade pact involving 15 countries from the Asia-Pacific region, including 10 member states of the Association of Southeast Asian Nations (ASEAN) and five of ASEAN's trading partners: China, Japan, South Korea, Australia, and New Zealand.
  • The purpose of the deal is to create an “integrated market” spanning all 16 countries. This means that it would be easier for the products and services of each of these countries to be available across the entire region.

3. Key features of the RCEP:

  • Economic Scope: RCEP is the largest free trade agreement in the world in terms of economic significance. It covers a vast region, comprising approximately 30% of the global population and accounting for about 30% of the world's GDP. This agreement aims to promote economic integration and facilitate trade and investment among member countries.
  • Tariff Reductions and Market Access: RCEP seeks to eliminate or reduce tariffs and other trade barriers among its member nations. This reduction in trade barriers is expected to create more opportunities for businesses to access larger markets and promote economic growth.
  • Rules of Origin: RCEP establishes rules of origin to determine the country of origin of goods. This is crucial to prevent non-member countries from benefiting from the preferential trade provisions and ensures that only products manufactured within the RCEP member countries can avail of the agreed-upon trade benefits.
  • Trade in Services: The agreement also addresses trade in services, promoting greater access and liberalization in sectors such as telecommunications, finance, professional services, and e-commerce, among others.
  • Intellectual Property Rights: RCEP includes provisions related to the protection of intellectual property rights, which is important for fostering innovation and creativity within member countries.
  • Investment: The agreement aims to improve investment opportunities and create a more predictable and secure investment environment among member countries. This includes provisions related to investor-state dispute settlement (ISDS) mechanisms.
  • Economic Cooperation: RCEP promotes economic cooperation in various areas, such as customs procedures, trade facilitation, technical barriers to trade, and economic and technical assistance for less-developed member countries.

4. Outstanding issues in RCEP

  • Tariff Reductions: Agreeing on tariff reduction schedules is another significant challenge. Each member country may have different priorities and sensitivities regarding the products they want to protect or liberalize. Negotiating tariff reductions requires balancing the interests of all parties involved to achieve a mutually beneficial outcome.
  • Services and Investment: The liberalization of trade in services and investment is a contentious issue in many trade agreements. RCEP member countries have different levels of development and varying domestic regulations. Negotiating how much to open up services and investment sectors to foreign participation while safeguarding national interests can be challenging.
  • Intellectual Property Rights: Balancing intellectual property rights protection with access to affordable medicines and technologies is a delicate matter. RCEP countries need to find a middle ground that promotes innovation while ensuring access to essential medicines and technologies for their populations.
  • Investor-State Dispute Settlement (ISDS) Mechanism: The inclusion of ISDS in trade agreements has been a contentious issue globally. RCEP member countries need to agree on the scope and limitations of ISDS to protect investor rights while safeguarding the government's right to regulate in the public interest.
  • Data Protection and E-commerce: With the increasing importance of digital trade and e-commerce, addressing data protection, privacy, and cross-border data flows is a crucial issue for RCEP members. Negotiating agreements on these issues requires balancing economic interests with the need to protect individual privacy and national security.

5. Concerns of India Including Civil Society, and Political Opposition regarding RCEP:

  • Impact on Domestic Industries: India's domestic industries have expressed concerns that the Regional Comprehensive Economic Partnership (RCEP) could lead to increased competition for goods and services imported from other member countries. There are fears that cheaper imports could negatively affect certain sectors, potentially leading to job losses and economic challenges for domestic industries.
  • Trade Deficit: India has had a persistent trade deficit with several RCEP member countries, especially China. Critics worry that the agreement may exacerbate the trade imbalance, leading to an influx of cheaper Chinese goods that could further widen the deficit and harm domestic manufacturing.
  • Agriculture Sector: India's agricultural sector has raised concerns over the potential impact of RCEP on farmers. They fear that cheaper agricultural imports from other member countries could harm domestic farmers by reducing the prices and competitiveness of Indian agricultural products.
  • Impact on Small and Medium Enterprises (SMEs): Small and Medium Enterprises (SMEs) form a significant part of India's economy. Some worry that increased competition from larger corporations in other RCEP member countries might pose challenges for Indian SMEs, limiting their growth prospects.
  • Safeguarding Agriculture and Dairy: India's dairy and agricultural sectors have been vocal about protecting their interests in any trade agreement. They fear that certain provisions in RCEP could adversely affect the livelihoods of farmers and the dairy industry.

6. Why did India withdraw from the RCEP?

The following are the three main reasons for India's withdrawal from RCEP:
  • The free trade agreement with the member countries might force them to dump cheap and low-quality products from countries like China, Thailand, South Korea, and Japan, etc., This will result in the occupation of the Indian market by foreign products while the Indian products will be out of the market.
  • It will increase the number of imports and exports simultaneously, resulting in a decrement in the forex reserves in India.
  • India's concern about its country of origin has not been seriously entertained by the RCEP.
For Prelims: Regional Comprehensive Economic Partnership (RCEP), Association of Southeast Asian Nations (ASEAN), Investor-state dispute settlement (ISDS) mechanism, and Small and Medium Enterprises (SMEs).
For Mains: 1. Discuss the significance of the Regional Comprehensive Economic Partnership (RCEP) as a major free trade agreement in the Asia-Pacific region. Analyze its potential impact on trade, investment, and economic cooperation among member countries. (250 words).
 

Previous year Questions

1. The term 'Regional Comprehensive Economic Partnership; often appears in the news in the context of the affairs of a group of countries known as (UPSC 2016)
A. G20
B. ASEAN
C. SCO
D.SAARC
Answer: B
 
2. Consider the following statements about Regional Comprehensive Economic Programme (RCEP). (WBCS 2019)
1. It is an economic cooperation for China-led free trade.
2. It is a counter-cooperation for the America-led trans-Pacific partnership.
3. In the countries involved in this cooperation Indian Professionals will have a job market.
Select the correct answer using the codes given below:
A. 1 and 2
B. 1 and 3
C. 2 and 3
D. All of the above
Answer: D
 
3. Recently launched Regional Comprehensive economic partnership, RCEP is the largest regional trading block at present. Which of the following countries is NOT a member of this free trade agreement? (Haryana Civil Services, 2021)
A. Australia
B. New Zealand
C. Brunei
D. Bangladesh
Answer: D
Source: The Indian Express
 
 

SATELLITE INTERNET 

 
 
 
1. Context
 
In today’s increasingly digitised world, internet connectivity is an absolute necessity, across both military and civilian domains. With Elon Musk’s Starlink about to make its debut very soon in India, internet infrastructure is going to fundamentally change.
 
 
2. Necessity of Satellite internet
 
 
  • Ground-based internet systems, relying on cables and towers, remain the primary method of connectivity in densely populated cities. Yet, their dependence on extensive physical infrastructure makes them costly in sparsely inhabited areas and prone to damage from natural calamities like earthquakes or floods.
  • They also fall short in delivering reliable service for mobile connectivity in isolated regions or temporary setups.
  • Satellite internet addresses these shortcomings by offering wide-reaching, dependable coverage that operates independently of local terrain or ground infrastructure.
  • It can be swiftly deployed to meet sudden spikes in demand and ensures seamless access for moving vehicles such as aircraft, as well as remote sites like offshore platforms.
  • Far from being just a contingency option, satellite internet represents a transformative capability with significant implications for the global digital economy, public infrastructure, and defense strategies
 
3. Features of Satellite Internet
 
 
  • The rise of satellite mega-constellations like Starlink marks the beginning of a new chapter in space-based internet services. These systems consist of hundreds or even thousands of satellites positioned just a few hundred kilometres above the Earth.
  • Often described as “internet in the sky,” they have diverse applications spanning military operations, disaster relief, healthcare, agriculture, and transportation.
  • However, their dual-use capability—serving both civilian and defence purposes—introduces complex security challenges.
  • Recent events highlight the transformative potential of this technology. In 2017, Hurricane Harvey destroyed around 70% of cell towers along the Texas coast, making Viasat’s satellite internet essential for coordinating rescue efforts.
  • In the ongoing Russia–Ukraine conflict, SpaceX’s Starlink has been critical to Ukrainian defence, enabling troop coordination, medical evacuations, and drone missions. Ukrainian forces have even mounted Starlink units on drones to counter Russian jamming.
  • Likewise, the Indian Army’s deployment of satellite internet at the Siachen Glacier demonstrates its value in remote conflict zones.
  • Yet, the technology’s global reach can also be exploited for illicit activities. Indian security agencies have intercepted smuggled Starlink devices used by insurgents and drug traffickers.
  • Such developments illustrate that control over satellite internet systems is emerging as a strategic element of national power
 
4. How does satellite internet work?
 
  • A satellite internet system comprises two main parts: the space segment and the ground segment. The space segment refers to the satellites operating in orbit, while the ground segment includes all Earth-based infrastructure that interacts with them.
  • Satellites form the most expensive element of the system, equipped with communication payloads to transmit data and typically functioning for five to twenty years.
  • Their placement demands precise planning, particularly regarding orbital altitude, which directly influences their performance and coverage.
  • These satellites are generally positioned in one of three primary orbital zones: Geostationary Earth Orbit (GEO), Medium Earth Orbit (MEO), or Low Earth Orbit (LEO)
 
5. Different satellites in different Orbits
 
 
  • Geostationary Earth Orbit (GEO) satellites operate about 35,786 km above the equator, moving in sync with Earth’s rotation so they remain fixed over a single point on the surface. From this altitude, one GEO satellite can cover nearly a third of the planet—though the polar regions remain outside its reach.
  • Viasat’s Global Xpress (GX) is a well-known example. Typically large in size, GEO satellites function as “bent-pipes,” relaying signals without processing them.
  • Their major drawback is high signal latency due to the vast distance involved, making them unsuitable for activities that require real-time interaction, such as video conferencing or instant financial transactions.
  • Medium Earth Orbit (MEO) satellites are positioned between 2,000 km and 35,786 km above Earth, offering a middle ground between GEO and Low Earth Orbit (LEO) systems.
  • They have lower latency than GEO satellites but still require a constellation for full global coverage.
  • For example, the O3b MEO network consists of 20 satellites. However, their latency still limits their effectiveness for many time-critical applications, and like GEO satellites, they are relatively large and expensive to launch.
  • Low Earth Orbit (LEO) satellites operate below 2,000 km, which allows for very low latency. Smaller in size—often comparable to a tabletop—they are cheaper and faster to deploy. Their key limitation is limited coverage; a single Starlink LEO satellite covers an area roughly the size of a large Indian city.
  • To provide worldwide service, LEO networks form vast “mega-constellations” of hundreds or thousands of satellites. Starlink currently has over 7,000 satellites in orbit, with plans to expand to as many as 42,000
 
6. How does mega-constellation work?
 
  • LEO mega-constellations use their large numbers to turn inherent drawbacks into advantages. These smaller satellites are equipped with on-board signal processing capabilities, which boost data transmission efficiency, enhance signal quality, and provide greater operational flexibility.
  • This built-in intelligence reduces the complexity of ground-based user terminals, making them smaller, more affordable, and accessible for individual households.
  • A major breakthrough in these systems is the adoption of optical inter-satellite links, enabling satellites to communicate directly with each other in space.
  • This forms a fully interconnected “internet in the sky,” capable of routing data across the globe with minimal dependence on ground stations, thereby lowering latency and improving overall performance.
  • Nonetheless, maintaining a constant connection poses challenges. Travelling at speeds of around 27,000 km/h, LEO satellites remain in a user’s line of sight for only a few minutes.
  • Continuous service is achieved by seamlessly transferring the connection from one satellite to another, a process made possible by steerable antennas that can simultaneously track multiple users and ground stations—similar to moving spotlights following performers on a stage
 
7. Applications of Satellite Internet
 
 
  • For end-users, modern LEO satellite internet represents a significant leap forward. The user equipment is now compact, easy to install, and requires no professional assistance.
  • Despite being costlier than terrestrial broadband—terminals priced at roughly $500 and monthly plans starting near $50—the expense is often worthwhile for people in remote regions or industries where constant connectivity is essential.
  • Looking ahead, accessibility is set to improve further. Companies such as AST SpaceMobile and Starlink are experimenting with direct-to-smartphone connectivity, which could eliminate the need for separate terminals altogether.
  • As adoption grows, the necessary hardware may eventually be built directly into devices like smartphones and laptops.
  • The potential applications are both wide-ranging and transformative. In communications, satellite internet can connect underserved regions and enable the Internet of Everything (IoE).
  • In transport, it promises better navigation, support for autonomous vehicles, and enhanced logistics. In governance and disaster management, it can strengthen smart city infrastructure, issue early warnings, and coordinate relief operations.
  • Healthcare can benefit from telemedicine and remote patient monitoring, while agriculture can use it for precision farming and crop health assessment. Additional uses span environmental tracking, energy exploration, tourism, and defence.
  • However, alongside these opportunities come significant security and regulatory challenges. Nations increasingly view satellite internet as a strategic domain of power. For India, it is vital to create a robust strategy for integrating this technology into national resilience frameworks, using it to close the digital divide and boost economic growth.
  • Moreover, active involvement in shaping global governance will be essential, as mega-constellations are set to define the future of worldwide connectivity and strategic influence
 
 
 
 
For Prelims: Low Earth Orbit (LEO) satellites, Starlink 
 
For Mains: GS II & III - Governance, Cybersecurity and National Security
 
 
Previous Year Questions
1. With reference to India's satellite launch vehicles, consider the following statements: (UPSC 2018)
1. PSLVs launch satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites.
2. Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth.
3. GSLV Mk III is a four- staged launch vehicle with the first and third stages using solid rocket motors; and the second and fourth stages using liquid rocket engines.
Which of the statements given above is/are correct?
A. 1 only
B. 2 and 3
C. 1 and 2
D. 3 only
Answer: A
 
2.A low earth orbit satellite can provide large signal strength at an earth station because: (ESE Electronics 2011)
A. Path loss is low
B. These orbits are immune to noise
C. Large solar power can be generated at these orbits
D. Lower microwave frequencies in s-band can be used
 
Answer-A
Source: The Hindu
 

CHEMICALLY CONTAMINATED SITES

 
 
 
1. Context
 
The Environment Ministry has notified new rules under the Environment Protection Act that lays out a process for addressing sites with chemical contamination. Called the Environment Protection (Management of Contaminated Sites) Rules, 2025, they give a legal structure to a process of addressing chemical contamination, that until now was missing despite several such sites already identified across the country.
 
2. What are Chemically Contaminated Sites?
 
  • According to the Central Pollution Control Board (CPCB), contaminated sites are locations where hazardous or other wastes were historically dumped, leading to probable pollution of soil, groundwater, and surface water, posing threats to human health and the environment.
  • Many of these sites came up when no regulations existed for hazardous waste management. In certain cases, the industries responsible have either shut down or lack the financial capacity to carry out remediation.
  • Such sites may include landfills, open dumps, waste treatment and storage facilities, spill locations, and areas used for handling or storing chemical waste. Across India, 103 such sites have been identified, but cleanup operations have started at only seven of them.
  • These remediation efforts involve removing pollutants from soil, groundwater, surface water, and sediments using suitable technologies
 
3. Necessity of rules
 
  • In 2010, the Environment Ministry launched the Capacity Building Program for Industrial Pollution Management Project to design the National Programme for Remediation of Polluted Sites.
  • This initiative focused on three main objectives — compiling an inventory of potentially contaminated locations, preparing a guidance document for assessing and cleaning such sites, and creating a legal, institutional, and financial framework for remediation.
  • While the first two objectives were achieved, the legal framework remained incomplete. The rules announced on July 25 form part of this long-pending codification.
  • Under these rules, district administrations must submit half-yearly reports on “suspected contaminated sites.”
  • The State Pollution Control Board or a designated ‘reference organisation’ will review these reports and provide a preliminary assessment within 90 days. This will be followed by a detailed survey within the next three months to confirm whether the site is indeed contaminated.
  • The process includes measuring levels of suspected hazardous chemicals — currently 189 substances are listed under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016.
  • If contamination levels exceed safety limits, the site’s location will be made public, and access will be restricted. A panel of experts, serving as the ‘reference organisation,’ will then prepare a remediation plan. Additionally, the State board will have 90 days to identify the parties responsible for the pollution
 
4. Adverse Effects of Chemically Contaminated Sites
 
 
  • Chemically contaminated sites can have far-reaching and long-lasting impacts on both the environment and human health. When hazardous substances seep into the soil, they disrupt its natural composition, reducing fertility and affecting the ability of plants to grow.
  • Contamination often extends below the surface, polluting groundwater — a vital source of drinking water for many communities — making it unsafe for consumption and daily use. In rivers, lakes, or ponds connected to these sites, toxic chemicals can accumulate, harming aquatic ecosystems, killing fish, and entering the food chain.
  • For humans, the risks can range from mild health issues such as skin irritation, respiratory problems, or headaches to severe and chronic illnesses like organ damage, developmental disorders in children, and cancers, depending on the type and concentration of pollutants.
  • Some contaminants persist in the environment for decades, meaning that even long after industrial activity has ceased, the dangers remain.
  • These sites also reduce the usability of surrounding land, limiting agricultural activities, lowering property values, and in some cases forcing communities to relocate.
  • Over time, such contamination can degrade biodiversity, alter natural habitats, and impose heavy economic and social costs on the affected regions
 
5. Case Studies
 
  • Bhopal Gas Tragedy, Madhya Pradesh (1984 – Ongoing Contamination)

The Bhopal disaster is India’s most infamous industrial accident, but what’s less discussed is the lingering contamination. After the methyl isocyanate (MIC) leak from the Union Carbide plant, the site was abandoned with tonnes of hazardous waste left untreated. Over the decades, toxic chemicals seeped into the soil and groundwater, affecting around 42 communities in the area. Even today, residents face higher rates of cancer, birth defects, and chronic respiratory illnesses. Groundwater is still considered unsafe for drinking in nearby localities.

  • West Bokaro Coalfields, Jharkhand

Open dumping of mine overburden and coal washeries waste has led to heavy metal contamination of soil and water in the West Bokaro region. Studies have found elevated levels of iron, manganese, and other metals in streams and groundwater. The contamination has degraded agricultural productivity and impacted aquatic biodiversity.

  • Eloor–Edayar Industrial Belt, Kerala

This 3-km stretch on the banks of the Periyar River houses around 250 chemical industries. Years of untreated effluent discharge have led to mercury, lead, and cadmium contamination in river sediments and fish. The pollution has impacted local fishing communities and reduced the Periyar’s capacity as a source of potable water.

  • Durgapur Industrial Belt, West Bengal

Decades of steel, cement, and chemical production have led to severe soil and groundwater contamination in and around Durgapur. Fly ash dumps and slag heaps have leached toxic substances, causing skin ailments and gastrointestinal problems in nearby populations.

 
For Prelims: Disaster Management, Chemically Contaminated Sites, Methyl isocyanate (MIC)
 
For Mains: GS III - Disaster Management 
 
Source: The Hindu
 

STABLECOINS

 
 
 
1. Context
 
Hong Kong is taking a decisive step forward in regulating certain types of cryptocurrencies, as it prepares to enforce the Stablecoins Ordinance from August 1. The new regulations come amidst an explosion of interest in stablecoins and their promising applications in both personal finance and international business. While crypto users who support official regulation are excited, the authorities have advised caution.
 
2. What are Stablecoins?
 
  • Stablecoins are a type of cryptocurrency whose value is tied to specific assets. Unlike popular cryptocurrencies such as Bitcoin (BTC), Ether (ETH), or meme tokens like Shiba Inu (SHIB) — which can experience sharp price swings driven by market sentiment and other factors — stablecoins are built to keep their prices relatively constant, which is how they get their name.
  • This price stability is achieved by “pegging” the stablecoin to an underlying asset, which could be a fiat currency (like the U.S. Dollar, Euro, or Hong Kong Dollar), a commodity (such as gold), another cryptocurrency (like Bitcoin), or by using algorithmic controls.
  • In some cases, a combination of these methods is used. For instance, while Bitcoin’s value may fluctuate significantly over time, a stablecoin pegged to the U.S. Dollar is intended to stay close to $1.
  • It’s important to note that stablecoins differ from Central Bank Digital Currencies (CBDCs). CBDCs are state-issued digital currencies managed by a country’s central bank, whereas stablecoins are often created by private entities and may even be pegged to foreign currencies
 
3. Regulation of Stablecoins
 
  • Stablecoins hold significant importance both inside and outside the cryptocurrency space, even though they lack the explosive price surges seen in assets like Bitcoin. Within the crypto market, investors often use stablecoins to simplify trading on exchanges.
  • Beyond that, people in countries facing currency depreciation turn to stablecoins to preserve their savings’ value or to reduce costs in cross-border payments.
  • In regions such as Argentina, Turkey, and even Taliban-controlled Afghanistan, stablecoins are more than trading tools — they serve as a lifeline for day-to-day transactions.
  • The scale of their use is striking. According to CoinMarketCap, Tether (USDT) — the largest stablecoin and the fourth biggest cryptocurrency by market capitalization — has a circulating supply of 163.75 billion USDT. Globally, the total circulation of stablecoins is estimated to exceed $250 billion.
  • This growing influence has sparked concerns among governments. Authorities worry that the complex mechanisms behind stablecoins might one day impact the value of the fiat currencies or commodities that support them.
  • When a stablecoin provider suddenly declares the addition of millions in backing assets, questions naturally arise about the origin — or even the existence — of those funds. This is precisely why regulatory oversight is increasingly seen as essential
 
 
4. Volatility of Stablecoins
 
  • Despite their name and asset backing, stablecoins are not immune to volatility. Influenced by technical issues or global events, they can sometimes lose their peg, causing prices to move outside the expected range. Sharp declines, in particular, can spark investor panic. For instance, USDT — pegged to the U.S. Dollar — has previously dropped to around $0.92.
  • In some cases, stablecoins have experienced complete collapse. A notable example is from May 2022, when Terra’s cryptocurrency LUNA and its associated algorithmic stablecoin UST lost nearly all their value within hours.
  • As trust evaporated, investors rushed to sell, driving prices down to near zero. This crash erased billions of dollars from the crypto market, and the resulting liquidity crisis led to asset freezes on multiple global crypto exchanges and fintech platforms
 
5. Licensing System in Hong Kong
 
 
  • The Hong Kong Monetary Authority (HKMA) has announced that the Stablecoins Ordinance will take effect on August 1 this year. Under the new law, it will be illegal to “offer any unlicensed fiat-referenced stablecoin (FRS) to a retail investor” or to “actively market the issuance of unlicensed FRS to the public in Hong Kong,” as stated by HKMA Chief Executive Eddie Yue.
  • To operate legally, companies aiming to issue stablecoins in Hong Kong will be required to obtain a licence from the Monetary Authority. They must also meet specific standards for managing reserve assets, redemption processes, asset stabilisation, and handling user requests.
  • Additionally, they will have to follow anti–money laundering (AML) and counter–terrorist financing (CTF) regulations, ensuring that all assets are transparently disclosed and subject to proper audits.
  • The HKMA cautioned that the new framework is not an open invitation for mass participation. Initially, only a small number of licences will be granted, meaning many applicants are likely to be rejected, according to Mr. Yue’s official statement
 
6. Other Countries' regulations
 
  • In July, U.S. President Donald Trump signed the GENIUS Act, aimed at regulating stablecoins and safeguarding the U.S. dollar — a move welcomed by his pro-crypto supporters.
  • According to the White House, the legislation mandates that stablecoins must be backed 100% by liquid assets such as U.S. dollars or short-term Treasury securities. Issuers will also be required to publicly disclose the composition of their reserves every month and adhere to specific marketing regulations.
  • Countries like Japan and Singapore have already introduced dedicated stablecoin regulations, AFP reports, while several other jurisdictions apply broader cryptocurrency laws that also cover stablecoins.
  • Meanwhile, despite China’s strict curbs on crypto activities, some of its major tech firms are looking to Hong Kong’s upcoming regulatory framework as a possible gateway for launching their own stablecoin projects
 
For Prelims: Stablecoins , Bitcoins, Cryptocurrency
 
For Mains: GS III - Economy, Science and technology
 

Previous year Question

1. With reference to “Blockchain Technology”, consider the following statements: (UPSC 2020)
1. It is a public ledger that everyone can inspect, but which no single user controls.
2. The structure and design of the blockchain are such that all the data in it are about cryptocurrency only.
3. Applications that depend on the basic features of blockchain can be developed without anybody’s permission.
Which of the statements given above is/are correct?
A. 1 only
B. 1 and 2 only
C. 2 only
D. 1 and 3 only
Answer: D
 
2. With reference to 'Bitcoins', sometimes seen in the news, which of the following statements is/are correct? (UPSC 2016)
1. Bitcoins are tracked by the Central Banks of the countries.
2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with Bitcoin address.
3. Online payments can be sent without either side knowing the identity of the other. Select the correct answer using the code given below.
A. 1 and 2 only
B. 2 and 3 only
C. 3 only
D. 1, 2 and 3
Answer: B
 
3. With reference to Non-Fungible Tokens (NFTs), consider the following statements:(UPSC 2022) 
1. They enable the digital representation of physical assets. 
2. They are unique cryptographic tokens that exist on a blockchain.
3. They can be traded or exchanged at equivalency and therefore can be used as a medium of commercial transactions.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: A
Source: The Hindu
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