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DAILY CURRENT AFFAIRS, 10 SEPTEMBER 2025

VICE PRESIDENT OF INDIA

 
 
1. Context
 
Maharashtra Governor C.P. Radhakrishnan was elected the 17th Vice-President of India on Tuesday by a margin of 152 votes. The Opposition fell short of its own expected tally, even as 98.2% of the total electorate, comprising members of both Houses of Parliament, cast their ballot.
 
2. Vice President of India
 
The Vice President of India is the second-highest constitutional office in the country, following the President. This position plays an important role in the governance and legislative process.
 
Here's an overview:
 
  • The Vice President serves as the Chairperson of the Council of States (Rajya Sabha) and presides over its sessions.
  • They ensure the smooth functioning of the Rajya Sabha, maintain decorum, and decide on points of order
  • In case of the resignation, death, removal, or inability of the President to discharge their duties, the Vice President acts as the President until a new President is elected
  • The Vice President is elected by an electoral college, consisting of members of both Houses of Parliament (Lok Sabha and Rajya Sabha) through a secret ballot and proportional representation with a single transferable vote.
  • Members of State Legislative Assemblies do not participate in this election

Eligibility Criteria:

To be eligible for the office of Vice President:

  • Must be a citizen of India.
  • Must be 35 years or older.
  • Should be qualified for election as a member of the Rajya Sabha.
  • Cannot hold any office of profit under the government of India, any state government, or any local authority.
 
 
3. Procedure to Impeach Vice President
 
  • As the second-highest constitutional authority after the President, the Vice President's powers are derived from Article 63 of the Constitution.
  • Additionally, Article 64 designates the Vice President as the ex-officio Chairperson of the Rajya Sabha, entrusting the officeholder with dual responsibilities as Vice President and Chairperson of the Upper House.
  • The procedure for the removal of the Vice President, who also serves as the Chairperson of the Rajya Sabha, is outlined in Article 67.
  • This article specifies that the Vice President's tenure is five years, beginning from the day they assume office. However, they may resign before completing the term by submitting a resignation to the President.
  • Moreover, under Article 67(b), the Vice President can be removed if a resolution to that effect is passed by a majority in the Rajya Sabha and subsequently agreed upon by the Lok Sabha. It is stipulated that such a resolution requires a prior notice period of at least 14 days before it can be moved
 
4. Will the no-confidence motion be taken up?
 
  • It is improbable that the no-confidence motion will be discussed in the House, as the Winter Session of Parliament is set to end on December 20, leaving fewer than 14 days for consideration.
  • For example, in 2020, then Rajya Sabha Chairperson M. Venkaiah Naidu rejected a no-confidence motion against Deputy Chairperson Harivansh, citing the requirement of a 14-day notice.
  • Even if the motion is brought before the House, it is unlikely to succeed due to the Opposition’s lack of sufficient numbers to ensure its passage. This initiative seems to primarily serve as a symbolic protest against Mr. Dhankhar’s alleged partisan behavior.
  • Since it is a constitutional resolution, it does not expire with the prorogation of the session. It can be addressed in the next session of Parliament or during a specially convened session for that purpose
 
5. Can the Vice President preside over the motion in the Upper House?
 
  • No, the Vice President of India, in their capacity as the Chairperson of the Rajya Sabha, cannot preside over a motion concerning their own removal in the Upper House. This is in line with the principle of natural justice, which prevents an individual from judging a matter in which they have a direct interest.
  • In such a scenario, Article 91 of the Constitution provides that the duties of the Chairperson of the Rajya Sabha (the Vice President) will be performed by the Deputy Chairperson.
  • If the Deputy Chairperson is unavailable or the office is vacant, any other member of the Rajya Sabha, as determined by the rules of procedure, may preside over the proceedings.
  • This ensures impartiality and fairness in handling motions related to the removal of the Vice President
 
6. Constitutional Provisions of the Vice President of India
 
Article Provision Details
63 Office of the Vice President Establishes the position of the Vice President of India
64 Vice President as Ex-officio Chairperson of the Rajya Sabha
1.Serves as the head of the Rajya Sabha.
2.Has no voting rights in the Rajya Sabha except in case of a tie
 
65 Acting as President
1.Takes over as President in the absence of the President.
2.Cannot hold the position of Rajya Sabha Chairperson during this period
66 Election of the Vice President Elected by members of both Houses of Parliament through proportional representation and secret ballot
   
Eligibility Criteria: 
 - Must be a citizen of India.  
- Must be at least 35 years old.  
- Must be eligible for Rajya Sabha membership. 
 - Cannot hold a government position
67 Term of Office and Removal
1.Serves a five-year term.
 
2.Can resign or be removed by a resolution passed by both Houses of Parliament
 
 
 
For Prelims: Vice President of India, President of India
 
For Mains: GS II - IndianPolity & Governance
 
Previous Year Questions
 
1.Consider the following statements: (UPSC CSE 2013)
  1. The Chairman and the Deputy Chairman of the Rajya Sabha are not the members of that House.
  2. While the nominated members of the two Houses of the Parliament have no voting right in the presidential election, they have the right to vote in the election of the Vice President.

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)

Mains

1.Discuss the role of the Vice –Presidents of India as the chairman of the Rajya Sabha. (2022)

 
Source: The Hindu
 
 

GREAT NICOBAR ISLAND PROJECT

 
 
1. Context
 
The Union government has sought a “factual report” from the Andaman and Nicobar Islands administration on points raised in a complaint by the Tribal Council of Little and Great Nicobar that forest rights had not been settled before diverting around 13,000 hectares for the ₹81,000-crore Great Nicobar Island project in August 2022
 
2.What is the Great Nicobar Island Project?
 
  • The Great Nicobar Island Project is a significant infrastructure development initiative undertaken by the Indian government on Great Nicobar Island, part of the Andaman and Nicobar Islands in the Indian Ocean. The project aims to transform the island into a strategic and economic hub.
  • A deep-draft international container transshipment terminal is planned to be developed at Galathea Bay. This port is expected to serve as a key shipping hub in the region, facilitating trade and reducing dependency on transshipment ports in other countries
  • An international airport is proposed to improve connectivity to the island, both for tourism and strategic purposes. This airport will be capable of handling wide-bodied aircraft and will enhance the island's accessibility
  • To support the infrastructure and population growth, a gas- and solar-based power plant will be developed. This plant aims to provide a reliable and sustainable energy source for the island's needs
  • A modern township with residential, commercial, and recreational facilities is planned to accommodate the increased population and workforce that the project will attract. This township is expected to have state-of-the-art amenities and infrastructure
 
Strategic and Economic Importance
  • Great Nicobar Island is situated near the Malacca Strait, one of the world's busiest shipping lanes. Developing this island will enhance India's strategic presence in the Indian Ocean Region, particularly in terms of maritime security and trade control
  • The project aims to boost the local economy by creating job opportunities and attracting investments. Improved infrastructure and connectivity are expected to stimulate tourism and other economic activities on the island
  • Enhancing connectivity through the transhipment port and international airport will integrate Great Nicobar Island more closely with the global and regional trade networks, potentially making it a key logistical and commercial hub
 
Environmental and Social Considerations
  • The project has raised concerns about its potential impact on the island's rich biodiversity and ecosystems. Great Nicobar Island is home to unique flora and fauna, including endangered species. Ensuring sustainable development practices and environmental protection measures will be crucial
  • There are concerns about the impact on local communities, particularly indigenous tribes such as the Nicobarese and Shompen. Ensuring that their rights and livelihoods are protected is a key consideration for the project
  • The project's emphasis on using renewable energy sources like solar power and promoting eco-friendly practices is an effort to mitigate environmental concerns. However, balancing development with conservation will be an ongoing challenge
 
 
Great Nicobar
 
Great Nicobar is the largest of the Nicobar Islands, part of the Union Territory of Andaman and Nicobar Islands in India. It is located in the Indian Ocean, near the western entrance of the Malacca Strait, which is a key maritime route for international trade.
 
Here are some key aspects of Great Nicobar:
  • Great Nicobar is situated at the southern end of the Nicobar Islands, approximately 1,280 kilometers (800 miles) from the Indian mainland
  • The island features diverse landscapes, including dense tropical rainforests, hilly terrain, and coastal areas. Mount Thullier is the highest point on the island, rising to an elevation of about 642 meters (2,106 feet)
  • Great Nicobar is known for its rich biodiversity and is part of the Great Nicobar Biosphere Reserve. The island hosts unique flora and fauna, including several endemic and endangered species. The Nicobar megapode, Nicobar tree shrew, and saltwater crocodile are some of the notable species found here
  • The island is sparsely populated, with a mix of indigenous tribes and settlers from other parts of India. The Nicobarese and Shompen are the primary indigenous communities on the island
  • The indigenous tribes have distinct cultural practices, languages, and traditions. Efforts are being made to preserve their cultural heritage and ensure their rights and well-being amidst development initiatives
  • Great Nicobar’s strategic location near the Malacca Strait, one of the world's busiest maritime routes, enhances its significance for India's maritime security and trade interests
  • Given its strategic position, the island hosts Indian military installations, which play a crucial role in monitoring and securing the Indian Ocean Region
 
 
3. Strategic Importance
 
  • The Bay of Bengal and Indian Ocean region are critically important for India's strategic and security interests, especially as the Chinese People’s Liberation Army Navy aims to increase its presence in these waters.
  • India is concerned about the buildup of Chinese naval forces at key Indo-Pacific chokepoints, particularly Malacca, Sunda, and Lombok. China's efforts to extend its influence in the area include constructing a military facility on the Coco Islands in Myanmar, located just 55 km north of the Andaman & Nicobar Islands.
  • Earlier this year, The Indian Express reported significant upgrades to the military infrastructure on the Andaman & Nicobar Islands.
  • This includes modernizing airfields and jetties, creating new logistics and storage facilities, establishing a base for military personnel, and enhancing surveillance capabilities.
  • The goal of these upgrades is to support the deployment of more military forces, larger warships, aircraft, missile batteries, and troops.
  • Maintaining close surveillance over the area surrounding the archipelago and establishing a strong military presence on Great Nicobar is crucial for India's national security
4. Environmental Concerns
  • The proposed infrastructure upgrade has faced opposition due to its potential ecological threat to the islands. Wildlife conservation researchers, anthropologists, scholars, civil society members, and the Congress party have raised concerns about the devastating impact on the Shompen, a particularly vulnerable tribal group (PVTG) of hunter-gatherers, who have an estimated population of a few hundred individuals residing in a tribal reserve on the island.
  • Critics claim the project infringes on the rights of the tribal population and will harm the island’s ecology, including the felling of nearly a million trees. There are fears that the port project will damage coral reefs, affecting the local marine ecosystem, and pose a threat to terrestrial species like the Nicobar Megapode bird and leatherback turtles, which nest in the Galathea Bay area.
  • A statement by senior Congress leader and former Environment Minister Jairam Ramesh highlighted that the proposed port is in a seismically active zone, which experienced permanent subsidence of about 15 feet during the 2004 tsunami.
  • The statement also accused the local administration of insufficiently consulting the Tribal Council of Great and Little Nicobar Islands as required by law.
  • In November 2022, the tribal council withdrew a no-objection certificate it had issued for the diversion of about 160 sq km of forest land, citing inadequate information provided to them.
  • In April 2023, the Kolkata Bench of the National Green Tribunal (NGT) chose not to interfere with the environmental and forest clearances granted to the project. However, the Tribunal ordered the formation of a high-power committee to review the clearances. There is still no clarity on whether the committee, mainly composed of government representatives, has submitted its report
 
 
For Prelims: National Green Tribunal (NGT), Great Nicobar Island, Coastal Regulation Zones, Turtles, Dolphins, Particularly Vulnerable Tribal Groups (PVTGs), Mangroves, Great Nicobar Biosphere Reserve
For Mains: Significance and Issues Related to Great Nicobar Island Project
 
Previous Year Questions

1. Which one of the following pairs of islands is separated from each other by the ‘Ten Degree Channel’? (2014)

(a) Andaman and Nicobar
(b) Nicobar and Sumatra
(c) Maldives and Lakshadweep
(d) Sumatra and Java

Answer (a)

2. Which of the following have coral reefs? (2014)

  1. Andaman and Nicobar Islands
  2. Gulf of Kachchh
  3. Gulf of Mannar
  4. Sunderbans

Select the correct answer using the code given below:

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

Answer (a)

3. In which one of the following places is the Shompen tribe found? (2009)

(a) Nilgiri Hills
(b) Nicobar Islands
(c) Spiti Valley
(d) Lakshadweep Islands

Answer (b)

 
Source: indianexpress
 
 

SUSTAINABLE URBANISATION

 

1. Context

Kerala is a tapestry of villages rippling into towns, of backwaters, and midlands and highlands woven together in a living continuum. Capital cities and hamlets bleed into each other, forming a unique “rurban” landscape. Yet beneath this tapestry lies a race against time — urbanisation accelerating faster than infrastructure and governance can keep up, while climate stress lurks in floods, landslides, coastal erosion, and unpredictable weather

 

2. Definition of Urbanization as per census 2011

  • Any places having municipality, corporation, cantonment board, or notified town area committee. All the other places which satisfy the following criteria :
    • A minimum population of 5000 persons ;
    • At least 75 % of the male main working population engaged in non-agricultural pursuits; and
    • A density of population of at least 400 persons per square kilometre.


3. What is in situ urbanization all about

  • A type of rural development called in situ urbanization of rural areas is characterized not only by expanding non-farm opportunities in the areas but also by strengthening economic linkages with the neighbouring areas. 
  • It is further accompanied by improved access to healthcare services, education and efficient transport networks. 
  • In situ urbanization in rural areas should be holistic, accompanied by universal healthcare, free education and improved transport networks. 
  • Experiences from in situ urbanization can be valuable ingredients of policy priorities for leaving no one behind.
  • Successes in significantly reducing poverty and inequality in Japan in the mid-20th century, and China and Sri Lanka in the second half of the 20th century, demonstrate that in situ urbanization of rural areas offers an alternative way of narrowing socioeconomic gaps between rural and urban areas and of avoiding urban slums or overcrowding in large cities
  • Non-farm activities should be encouraged and strengthened in rural areas to eradicate rural poverty, reduce rural-urban inequalities and leave no one behind. 
  • Increasing agricultural productivity alone has its limit to eradicating poverty in areas where the average landholding of farmers is small.
 

4. Sustainable urbanization

  • Understanding the key trends in urbanization likely to unfold over the coming years is crucial to the implementation of the 2030 Agenda for Sustainable Development, including efforts to forge a new framework of urban development.
  • As the world continues to urbanize, sustainable development depends increasingly on the successful management of urban growth, especially in low-income and lower-middle-income countries where the pace of urbanization is projected to be the fastest.
  • Many countries will face challenges in meeting the needs of their growing urban populations, including for housing, transportation, energy systems and other infrastructure, as well as for employment and basic services such as education and health care. 
  • Integrated policies to improve the lives of both urban and rural dwellers are needed while strengthening the linkages between urban and rural areas, building on their existing economic, social and environmental ties.
  • To ensure that the benefits of urbanization are fully shared and inclusive, policies to manage urban growth need to ensure access to infrastructure and social services for all, focusing on the needs of the urban poor and other vulnerable groups for housing, education, health care, decent work and a safe environment.
 
  1. Stats of United Nations
  • The World Social Report 2021 by United Nations points to how rural development can be reset to achieve sustainable development. 
  • It calls for moving rural development to the centre of attention, instead of relegating it as an appendage of urban development; for ending the rural-urban divide through the adoption of the in situ urbanization model; for ending within-rural inequality; and for achieving rural development while preserving the environment. 
  • World Social Report 2021 shows that new digital and frontier technologies are creating opportunities for achieving these goals. 
  • What is needed is to seize these opportunities and to convert into reality the long-standing goal of eradicating the rural-urban disparity.


6. Problem of urbanisation in developing countries

  • Population explosion: of the large-sized urban centres, particularly the metropolitan cities and capital cities. This is due to both rural-urban and urban-rural migration. Capital cities attract due to both social and political reasons. Also, capital centres attract many industrial complexes due to better infrastructure and market
  • Environmental degradation: includes problems such as:
    • Slum growth
    • Housing shortage
    • Inadequate Public Utility Services
    • Urban poverty
    • Pollution
 
Unplanned land use
  • Transport problems: the insufficient transport infrastructure leads to capacity overloading, causing problems such as road accidents, traffic jams, etc. E.g. as per World Disaster Report, per 10000 licensed vehicles, there has been a maximum number of fatal accidents in Ethiopia (needs update)
  • Outer expansion of towns: there is no planned urban sprawl, the rapid growth of RUF, and unplanned settlement outside the town.
  • Urbanization is not at all problem, but unsustainable and unplanned urbanization creates the following problems:
    • Urban Sprawl
    • Congestion
    • Shortage of houses
    • Vertical expansion
    • Growth of slums and substandard houses
    • Illegal settlements
7. Kerala as an example
 
  • Kerala presents a seamless blend of villages, towns, backwaters, midlands, and highlands, where urban and rural spaces merge into a distinctive “rurban” fabric. However, beneath this harmony lies a growing challenge — urbanisation is advancing faster than infrastructure and governance can match, while climate vulnerabilities manifest through floods, landslides, coastal erosion, and erratic weather. To confront these issues, the State established the Kerala Urban Policy Commission (KUPC) in December 2023.
  • The Commission was tasked with drafting a 25-year urban vision, one that treats cities not as congested spaces but as sustainable, climate-conscious ecosystems.
  • By the time the report was submitted in March 2025, it marked more than incremental reform — it signalled a fundamental reset.
  • The roadmap called for a data-driven transformation, restructuring of governance, cultural and identity revival, and stronger financial autonomy — all integrated within one ambitious framework.
  • By late 2023, Kerala’s pace of urbanisation had already surpassed the national average, with projections indicating that more than 80% of its population would be urban by 2050.
  • This transition, in a State where villages and towns are intricately interwoven, came alongside intensifying climate pressures — devastating floods in Ernakulam, landslides in hilly regions, and rising sea-level threats along the coast.
  • The gap between recurring crises and long-term planning was becoming dangerously wide.
  • Recognising this, the cabinet’s December 2023 resolution to set up the KUPC represented a strategic departure from India’s centralised, project-oriented urban model.
  • It was a conscious acknowledgment that Kerala required its own path, rooted in its history, geography, and climate realities.
  • As the first State-level urban commission in India, the KUPC marked a shift from short-term fixes to comprehensive, systemic solutions.
  • Ultimately, the Commission did more than reframe urban planning — it redefined the very way Kerala imagines its towns and cities, weaving together climate sensitivity, community narratives, financial empowerment, digital governance, and the identity economy into a dynamic and functional plan

8. Way forward

 

  • Implement policies for land use and urban planning to avoid excessive sprawl and manage density in cities. 
  • Address infrastructure bottlenecks affecting transport, power, and water, in particular. 
  • Find more cost-effective, flexible and sustainable public transport solutions for growing cities. 
  • Empower municipalities and metropolitan bodies through decentralization and clarification of the roles of metropolitan and municipal structure, accompanied by capacity building at the local level. 
  • Mobilize new sources of finance for cities while raising the efficiency of expenditure. 
 
 
For Prelims: General issues on Environmental ecology
For Mains: GS-I: Urbanisation, their problems and their remedies.
 
 
Previous Year Questions
 
1.Discuss the various social problems which originated out of the speedy process of urbanisation in India. (UPSC CSE 2013)
 
Source: Indianexpress
 
 

GOODS AND SERVICE TAX (GST)

 
 
1. Context
 
Prachi Mishra and Shohan Mukherjee write- “Eight years after its launch, India’s Goods and Services Tax (GST) is undergoing its most significant transformation. GST 2.0 prioritises long-term structural reform over immediate revenue maximisation. 
 
2. What is the Goods and Services Tax (GST)?
  • The Goods and Services Tax (GST) is a value-added tax levied on the supply of goods and services at each stage of the production and distribution chain. It is a comprehensive indirect tax that aims to replace multiple indirect taxes imposed by the central and state governments in India.
  • GST is designed to simplify the tax structure, eliminate the cascading effect of taxes, and create a unified national market. Under the GST system, both goods and services are taxed at multiple rates based on the nature of the product or service. The tax is collected at each stage of the supply chain, and businesses are allowed to claim a credit for the taxes paid on their inputs.
  • The GST system in India came into effect on July 1, 2017, replacing a complex tax structure that included central excise duty, service tax, and state-level taxes like VAT (Value Added Tax), among others. The GST Council, consisting of representatives from the central and state governments, is responsible for making decisions on various aspects of GST, including tax rates and rules.
  • GST is intended to create a more transparent and efficient tax system, reduce tax evasion, and promote economic growth by fostering a seamless flow of goods and services across the country. It has a significant impact on businesses, as they need to comply with the new tax regulations and maintain detailed records of their transactions for GST filing

3.Goods and Services Tax (GST) and 101st Amendment Act, 2016

The Goods and Services Tax (GST) in India was introduced through the 101st Amendment Act of 2016. This constitutional amendment was a crucial step in the implementation of GST, which aimed to create a unified and comprehensive indirect tax system across the country.

Here are some key points related to the 101st Amendment Act and GST:

 

  • The 101st Amendment Act was enacted to amend the Constitution of India to pave the way for the introduction of the Goods and Services Tax.
  • It added a new article, Article 246A, which confers concurrent powers to both the central and state governments to levy and collect GST
  • The amendment led to the creation of the GST Council, a constitutional body consisting of representatives from the central and state governments. The council is responsible for making recommendations on GST rates, exemptions, and other related issues
  • The amendment introduced a dual GST structure, where both the central government and the state governments have the power to levy and collect GST on the supply of goods and services
  • For inter-state transactions, the 101st Amendment Act provides that the central government would levy and collect the Integrated Goods and Services Tax (IGST), which would be a sum total of the central and state GST
  • The amendment also included a provision for compensating states for any revenue loss they might incur due to the implementation of GST for a period of five years
The 101st Amendment Act was a critical legislative step that provided the constitutional framework for the implementation of GST in India. It addressed the need for a unified tax system, simplifying the tax structure and promoting a common market across the country. The subsequent establishment of the GST Council has played a pivotal role in the ongoing management and evolution of the GST system in India
 
4. What are the different types of Goods and Services Tax (GST)?

In India, the Goods and Services Tax (GST) is structured into different tax rates based on the nature of the goods and services. As of my last knowledge update in January 2022, the GST rates are divided into multiple slabs. It's important to note that tax rates may be subject to changes, and new amendments could have been introduced since then. As of my last update, the GST rates are as follows:

  • Nil Rate:

    • Some goods and services are categorized under the nil rate, meaning they attract a 0% GST. This implies that no tax is levied on the supply of these goods or services.
  • 5% Rate:

    • This is a lower rate, applicable to essential goods such as certain food items, medical supplies, and other basic necessities.
  • 12% Rate:

    • Goods and services falling in this category attract a 12% GST rate. Items such as mobile phones, processed foods, and certain services fall under this slab.
  • 18% Rate:

    • A higher rate of 18% is applicable to goods and services such as electronic items, capital goods, and various services.
  • 28% Rate:

    • The highest GST rate of 28% is applied to luxury items, automobiles, and certain goods and services that are considered non-essential or fall into the luxury category.
  • Compensation Cess:

    • In addition to the above rates, some specific goods attract a compensation cess, which is levied to compensate the states for any revenue loss during the transition to GST. This is often applied to items like tobacco and luxury cars.
  • Zero Rate:

    • Certain categories of goods and services may be specified as "zero-rated," which means they are effectively taxed at 0%. This is different from the nil rate, as it allows businesses to claim input tax credit on inputs, capital goods, and input services.
  • Exempt Supplies:

    • Some goods and services may be exempt from GST altogether. This means that they are not subject to any GST, and businesses cannot claim input tax credit on related inputs
 
5.Central GST (CGST), State GST (SGST), Union territory GST (UTGST) and Integrated GST (IGST)
 
 
Subject Central GST (CGST) State GST (SGST) Union Territory GST (UTGST) Integrated GST (IGST)
Levied by Central Government Respective State Governments Union Territory Administrations Central Government (on inter-state transactions)
Applicability On intra-state supplies (within the same state) On intra-state supplies (within the same state) On intra-union territory supplies (within the same union territory) On inter-state supplies (across states or union territories)
Rate Determination Determined by the Central Government Determined by the Respective State Government Determined by the Union Territory Administration IGST rate is a sum of CGST and SGST rates
Revenue Collection Collected by the Central Government Collected by the Respective State Government Collected by the Union Territory Administration Collected by the Central Government (on inter-state transactions)
Utilization of Revenue Shared between Central and State Governments Retained by the Respective State Government Retained by the Union Territory Administration Shared between Central and State Governments
Purpose Part of the dual GST structure, meant to cover central taxes Part of the dual GST structure, meant to cover state taxes Applicable in union territories for intra-territory supplies Applied to regulate and tax inter-state supplies
Input Tax Credit (ITC) ITC available for CGST paid on inputs and services ITC available for SGST paid on inputs and services ITC available for UTGST paid on inputs and services ITC available for both CGST and SGST paid on inputs
Tax Jurisdiction Applies within a particular state Applies within a particular state Applies within a particular union territory Applies to transactions across states and union territories
GSTN Portal for Filing Returns Central GSTN portal State-specific GSTN portals UTGSTN portal Integrated GSTN portal
 
 
6.What are the benefits of Goods and Services Tax (GST) in India?
 
The Goods and Services Tax (GST) in India was implemented with the aim of bringing about significant reforms in the indirect tax structure. Several benefits have been associated with the introduction of GST.
 
Here are some key advantages:
 
  • GST replaced multiple indirect taxes levied by the central and state governments, simplifying the tax structure. This streamlined system reduces the complexity of compliance for businesses
  • GST eliminates the cascading effect of taxes, where taxes are levied on top of other taxes. With a seamless credit mechanism, businesses can claim input tax credit on the taxes paid on their purchases, leading to a more transparent and efficient system
  • GST has facilitated the creation of a common national market by harmonizing tax rates and regulations across states. This has reduced trade barriers and promoted the free flow of goods and services throughout the country
  • The GST system has incorporated technology-driven processes, including electronic filing and real-time reporting, making it harder for businesses to evade taxes. This has contributed to increased tax compliance
  • The input tax credit mechanism under GST benefits manufacturers, as they can claim credits for taxes paid on raw materials and input services. This has a positive impact on the cost of production and enhances the competitiveness of Indian goods in the international market
  • GST brings transparency to the taxation system. The online filing of returns and the availability of transaction-level data make it easier for tax authorities to monitor and track transactions, reducing the scope for corruption
  • GST has replaced a complex system of filing multiple tax returns with a more straightforward mechanism. Businesses now need to file fewer returns, reducing the compliance burden
  • The implementation of GST has contributed to an improvement in the ease of doing business in India. The unified tax system has made it simpler for businesses to operate across states and has reduced the paperwork and bureaucratic hurdles associated with tax compliance
  • GST has led to the harmonization of tax rates across states and union territories, minimizing the tax rate disparities that existed earlier. This creates a more predictable tax environment for businesses
7.Goods and Services Tax (GST)-Issues and Challenge
 
  • Despite the intention to simplify the tax structure, the multi-tiered rate system (0%, 5%, 12%, 18%, and 28%) and the inclusion of cess on certain goods have introduced complexity. The classification of goods and services under different tax slabs can be challenging, leading to disputes and confusion
  • The successful implementation of GST relies heavily on technology. Issues such as technical glitches on the GSTN (Goods and Services Tax Network) portal, especially during the initial phases, have caused difficulties for businesses in filing returns and complying with regulations
  • The compliance requirements for businesses under GST, including multiple returns filing, have been perceived as burdensome. Smaller businesses, in particular, may find it challenging to adapt to the new system and comply with the various provisions
  • The transition from the previous tax regime to GST posed challenges, especially for businesses in terms of understanding the new tax structure, reconfiguring accounting systems, and ensuring a smooth transition of credits from the old tax system to the GST system
  • The classification of certain goods and services into specific tax slabs has been a source of contention. Ambiguities in classification have led to disputes and litigations, with businesses seeking clarity on the applicable tax rates
  • The implementation of GST has increased compliance costs for businesses due to the need for sophisticated IT infrastructure, the hiring of tax professionals, and efforts to ensure accurate reporting and filing
  • Challenges related to availing and matching input tax credits have been reported. Timely matching of credits and resolving discrepancies can be cumbersome, leading to concerns about the seamless flow of credit across the supply chain
  • The anti-profiteering provisions were introduced to ensure that businesses pass on the benefits of reduced tax rates to consumers. However, the implementation of anti-profiteering measures has been criticized for its complexity and potential for disputes
  • The periodic changes in the GST return filing system have created challenges for businesses in adapting their processes. Delays and complexities in return filing can affect working capital management
8.Goods and Services Tax Council (GST Council)
 
The Goods and Services Tax Council (GST Council) is a constitutional body in India that makes recommendations on the Goods and Services Tax (GST). It was established under the Constitution (122nd Amendment) Act, 2016, which introduced the GST in India

The GST Council consists of the following members:

  • The Union Finance Minister, who is the Chairperson of the Council.
  • The Union Minister of State in charge of revenue or any other Minister of State nominated by the Union Government.
  • One Minister from each state, nominated by the Governor of that state.
  • The Chief Secretary of each state, ex-officio.
  • If the President, on the recommendation of the Council, so directs, one representative of each Union territory which has a legislature, to be nominated by the Lieutenant Governor of that Union territory.
  • Three to seven members (other than Ministers) to be nominated by the Union Government, of whom at least one member shall be from the field of economics and another from the field of chartered accountancy, legal affairs or public finance
9. Way forward
 
It's important to note that the composition and structure of the GST Council may evolve over time, and there might have been changes since my last update in January 2022. To obtain the latest and most accurate information about the GST Council and its members, it is recommended to refer to official government sources or recent announcements by the relevant authorities

 

For Prelims: Economic and Social Development and Indian Polity and Governance
For Mains: General Studies II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein

General Studies III: Inclusive growth and issues arising from it

 
 
Previous Year Questions
 
1.Which of the following are true of the Goods and Services Tax (GST) introduced in India in recent times? (UGC Paper II 2020)
A. It is a destination tax
B. It benefits producing states more
C. It benefits consuming states more
D. It is a progressive taxation
E. It is an umbrella tax to improve ease of doing business
Choose the most appropriate answer from the options given below:
A.B, D and E only
B.A, C and D only
C.A, D and E only
D.A, C and E only
Answer (D)
 
Source: Indianexpress
 
 

FOREIGN PORTFOLIO INVESTMENT (FPI)

 
 
 
1. Context
 
 India is the world’s fastest-growing major economy, with its annual GDP increase averaging 8.2% during 2021 to 2024. The growth momentum has been maintained even this calendar year. According to the National Statistics Office, the Indian economy registered year-on-year GDP growth of 7.4% and 7.8% respectively in the January-March and April-June 2025 quarters. The impressive growth rates, however, don’t seem to be reflected in the foreign capital flows received by the country.
 
 
2. What are foreign portfolio investors (FPI)?
 
 
  • Foreign Portfolio Investors (FPIs) are overseas entities or individuals who invest in the financial assets of a country, such as shares, bonds, debentures, mutual funds, or other securities, without having direct control over the businesses they invest in.
  • Unlike Foreign Direct Investment (FDI), which involves establishing a lasting interest in an enterprise, setting up facilities, or acquiring a controlling stake, FPIs are primarily concerned with earning returns from the movement of capital markets.
  • Essentially, FPIs put their money into a country’s stock market or debt market to benefit from short- or medium-term price changes, dividends, or interest income.
  • Their investment is often guided by considerations like the stability of the economy, growth prospects, interest rates, and global liquidity conditions.
  • Because the money can be moved in and out relatively quickly, FPIs are often described as “hot money,” highlighting the fact that such investments can be highly volatile.
  • In India, FPIs are regulated by the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI), which set the rules regarding eligibility, permissible investment limits, and reporting requirements
  •  These investors can include foreign institutional investors such as pension funds, insurance companies, hedge funds, asset management companies, or even individual investors from abroad.
  • Their participation is significant because it not only provides additional capital for companies and governments but also increases liquidity and depth in the financial markets.
  • However, large-scale entry or exit of FPIs can impact stock prices, exchange rates, and overall financial stability
 
3. How is it different from foreign direct investment?
 
  • That’s a very relevant follow-up. The key difference between Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI) lies in the nature, purpose, and level of control over the assets being invested in.
  • Foreign Portfolio Investment (FPI) refers to investment in a country’s financial markets—such as equities, bonds, or other securities—without seeking management control or a lasting interest in the company.
  • An FPI is more like buying shares on the stock exchange: the investor becomes a shareholder but has little or no say in how the company is run.
  • The intention is usually to earn returns from dividends, interest, or capital gains, and the money can move in and out relatively quickly depending on market conditions. Because of this, FPIs are generally considered more volatile and speculative in nature.
  • On the other hand, Foreign Direct Investment (FDI) involves investing directly in productive assets of another country, such as setting up factories, infrastructure projects, offices, or acquiring a significant stake in a company to gain management influence.
  • The idea here is to establish a long-term business presence and contribute to the host country’s economic activities.
  • FDI is more stable because it ties the investor to physical assets and operational responsibilities, making it less prone to sudden withdrawal compared to FPI.

 

In short:

  • FPI is financial investment—short to medium term, market-driven, without control.

  • FDI is business investment—long-term, with management control and significant impact on the host economy.

 
 
4. What is the significance of FPI?
 
 
  • FPI brings in foreign capital into a country’s stock and debt markets, which increases the liquidity and depth of those markets. This makes it easier for domestic companies and governments to raise funds, since more investors are available to buy their securities.
  • It also improves market efficiency, as the entry of sophisticated foreign investors often brings in better practices in valuation, analysis, and corporate governance.
  • For the broader economy, FPIs are an important source of foreign exchange inflow. This helps strengthen the balance of payments, stabilizes the currency in times of pressure, and gives policymakers more room to finance trade deficits.
  • For emerging economies like India, FPIs signal international confidence in the domestic economy. When foreign investors channel funds into Indian markets, it reflects their positive outlook on India’s growth potential, macroeconomic stability, and regulatory environment.
  • However, FPIs are equally significant because of their volatility. Since FPI money can be withdrawn at short notice—depending on global interest rates, risk perception, or geopolitical conditions—large inflows or sudden outflows can cause swings in stock markets and currency values.
  • For example, massive withdrawals of FPI funds may lead to a depreciation of the rupee and stock market instability, affecting both investors and the wider economy.
 
  • Positive side – boosts liquidity, deepens capital markets, brings foreign exchange, and reflects global confidence.

  • Risk side – can cause volatility and expose the economy to sudden capital flight

 
 
5. What is Foreign capital paradox?
 

The Foreign Capital Paradox refers to the puzzling observation that capital (money for investment) does not always flow from rich countries to poor countries, even though economic theory suggests it should.

In theory, poorer countries, being capital-scarce, should offer higher returns on investment compared to rich countries where capital is already abundant and returns are relatively lower. Based on this logic, one would expect foreign capital—through FDI, FPI, or loans—to flow heavily into developing or low-income nations, helping them grow faster. This is consistent with the predictions of the neoclassical growth model.

However, in reality, the flow of capital is often the opposite. A large share of global investment moves among already rich, developed nations rather than toward poorer countries. Many developing countries actually see capital outflows instead of inflows, despite their greater need for funds. This mismatch between theory and reality is what economists call the “foreign capital paradox.”

 

One of the best-known explanations for this paradox comes from Robert Lucas (1990), often referred to as the Lucas Paradox. He argued that capital doesn’t flow as expected due to several factors:

  • Institutional weaknesses in developing countries (weak governance, poor enforcement of contracts, corruption).

  • Political instability and risk that discourage investors.

  • Lack of human capital (skilled labor, technology absorption capacity) to complement physical capital.

  • Poor infrastructure and underdeveloped financial markets.

  • Policy uncertainty, such as sudden changes in taxation or restrictions on profit repatriation

 
 
For Prelims: Balance of payments (BOP), foreign portfolio investors (FPI),  foreign direct investment(FDI)
 
For Prelims: GS III - Economy
 
Previous Year Questions
 

1.Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly? (UPSC CSE 2019)

(a) Certificate of Deposit

(b) Commercial Paper

(c) Promissory Note

(d) Participatory Note

Answer (d)

 

Participatory Notes (P-notes) are financial instruments issued by registered Foreign Portfolio Investors (FPIs) to overseas investors who wish to invest in Indian stock markets without directly registering with SEBI. They are essentially offshore derivative instruments, linked to Indian securities.

For example, if an FPI buys shares of Infosys in India, it can issue a P-note to an overseas investor. That overseas investor will gain the benefits (returns) from Infosys’ shares without directly owning them in India.

This route is often used by investors who want to save time and avoid the regulatory process of registration, though SEBI keeps a close watch on P-notes due to concerns about transparency and misuse

 
Source: Indianexpress
 
 

INFANT MORTALITY RATE (IMR)

 
 
 
1. Context
 
Kerala’s infant mortality rate is down to 5 per 1,000 live births, according to the Sample Registration System (SRS) Statistical Report-2023.
 
2. What is the Infant Mortality Rate (IMR)?
 
  • The Infant Mortality Rate (IMR) is a key demographic and public health indicator that measures the number of deaths of infants under one year of age per 1,000 live births in a given year and population.
  • In simple terms, it tells us how many babies do not survive their first year of life out of every 1,000 babies born alive.
  • IMR reflects the overall health status, socio-economic conditions, and quality of healthcare services in a country. High IMR usually indicates issues such as malnutrition, poor maternal health, inadequate healthcare facilities, and lack of sanitation.
  • Conversely, a low IMR shows improvements in medical care, immunization, maternal nutrition, and public health policies.
  • For India, reducing IMR has been a central goal under various initiatives like the National Health Mission, Janani Suraksha Yojana, and Poshan Abhiyaan, as it is directly linked to the country’s progress on Sustainable Development Goals (SDG 3 – Good Health and Well-being)
 
3. What are the trends in India’s IMR in the last decade as per the SRS, 2023?
 
 
  • Over the past decade, Delhi, Himachal Pradesh, and Karnataka have managed to cut their Infant Mortality Rate (IMR) by more than half, marking the most significant improvements on this key child health indicator.
  • According to the 2023 Sample Registration Survey (SRS), India’s IMR has fallen by over 37% in ten years—from 40 infant deaths per 1,000 live births in 2013 to 25 in 2023.
  • The country’s IMR dropped below the global average around 2021, and its pace of decline has been faster than worldwide trends. However, India still lags behind the Asian average of 17.4 deaths per 1,000 births.
  • In the most recent data, the national IMR showed a one-point decline from the previous year, while the average improvement during the last five years has been 1.4 points annually.
  • Among the larger states, Kerala stands out with a single-digit IMR—just five deaths per 1,000 live births—a level comparable with developed nations. Yet, Kerala also records the widest gender gap, with IMRs of nine for boys and two for girls.
  • Smaller states like Manipur, Sikkim, and Goa, along with nearly all Union Territories, also report single-digit IMRs.
  • At the other end of the spectrum, Chhattisgarh, Madhya Pradesh, and Uttar Pradesh have the highest IMRs in the country, each at 37, followed by Odisha and Assam, both at 30
  • A report published earlier this week notes that the national average infant mortality rate (IMR) stands at 25 deaths per 1,000 live births. Referring to the findings, Kerala’s Health Minister Veena George highlighted that the State’s IMR is even lower than that of the United States, which recorded 5.6 deaths per 1,000 live births in 2022, and reaffirmed that Kerala has the lowest IMR in India.
  • Kerala’s success is the outcome of consistent improvements in the health sector over the years. Data from the State’s Department of Economics and Statistics shows that the IMR stood at 7.42 in 2010, briefly rose to 8.2 in 2012, but has steadily declined since then.
  • Further, the 2023 State Vital Statistics Report points out that institutional deliveries dominate childbirth practices in Kerala. In rural areas, 96.16% of deliveries took place in healthcare institutions, while in urban areas the figure reached 99.88%, reflecting strong access to maternal and child healthcare facilities
 
4. What are the factors behind the reduction in infant mortality in India?
 
 
The reduction in Infant Mortality Rate (IMR) in India over the past few decades is the outcome of a combination of healthcare interventions, socio-economic progress, and policy focus. Here’s an explanatory account:
 
  • Improved antenatal, intranatal, and postnatal care has been central. Schemes like the Janani Suraksha Yojana (JSY) and Janani Shishu Suraksha Karyakram (JSSK) incentivized institutional deliveries and provided free maternal care, reducing risks during childbirth
  • A large majority of births now take place in healthcare institutions, supported by programs under the National Health Mission (NHM) and better rural health infrastructure. Institutional births reduce complications, ensure trained attendance, and provide immediate neonatal care
  • Expansion of the Universal Immunization Programme and the introduction of Mission Indradhanush helped protect children from life-threatening diseases such as measles, diphtheria, and pneumonia, thereby reducing infant deaths
  • The setting up of Special Newborn Care Units (SNCUs), Nutrition Rehabilitation Centres (NRCs), and improved access to pediatric services has strengthened survival chances for vulnerable infants
  • Government schemes like the Integrated Child Development Services (ICDS), Poshan Abhiyaan, and mid-day meals have improved maternal and child nutrition. Better maternal health directly lowers the risk of premature or underweight babies, a major contributor to infant deaths
  • Education of women has led to greater awareness about hygiene, healthcare, and nutrition, resulting in healthier pregnancies and better childcare practices. States with higher female literacy, like Kerala, consistently show lower IMRs
  • Flagship initiatives under the National Health Mission, such as the India Newborn Action Plan (2014), set specific targets for reducing neonatal and infant mortality. Regular monitoring through the Sample Registration Survey (SRS) has kept the issue at the forefront of policy action
 
5. Why are there interstate differences in IMR in India?
 
 
  • The Sample Registration System (SRS) Statistical Report 2023 makes it clear that while India has achieved significant progress in reducing its Infant Mortality Rate (IMR), there are still striking differences between states. These interstate disparities arise from a complex interplay of health infrastructure, socio-economic development, governance, and social practices.
  • One of the foremost reasons is the variation in healthcare access and quality across states. States such as Kerala, Tamil Nadu, and Himachal Pradesh have built strong public health systems, ensuring trained medical personnel, institutional deliveries, and neonatal care facilities are widely available.
  • In contrast, states like Madhya Pradesh, Uttar Pradesh, and Chhattisgarh still struggle with underfunded health services, shortages of doctors and nurses, and poor rural health outreach, which contributes to persistently high infant deaths.
  • Maternal and child nutrition also plays a decisive role. In states with high rates of malnutrition and anaemia among mothers, babies are more likely to be born underweight or premature, making them vulnerable to infections and early death. This is particularly evident in central and eastern states where poverty, food insecurity, and weaker implementation of nutrition schemes have kept IMR higher.
  • Education and awareness further shape these differences. States with high levels of female literacy, such as Kerala and Tamil Nadu, tend to have mothers who are more aware of hygiene, breastfeeding, vaccination, and healthcare needs, directly lowering infant mortality. On the other hand, low female literacy in poorer states often limits health-seeking behaviour, leading to preventable deaths.
  • Another factor is infrastructure beyond health services, including sanitation, drinking water, electricity, and transport. Kerala, with nearly universal institutional deliveries, has also ensured that roads and ambulances connect rural households to hospitals.
  • In contrast, hilly, tribal, and remote areas in states like Odisha and Madhya Pradesh face access barriers that delay or prevent timely medical intervention.
  • Social and cultural practices also shape the gap. In some regions, deep-rooted gender biases lead to differential care for male and female infants.
  • The SRS 2023 highlights Kerala as having the lowest IMR overall, but also shows a sharp gender disparity—IMR for boys being higher than for girls. Such gendered patterns differ from state to state, contributing to uneven outcomes.
  • Finally, governance and policy prioritisation explain a large part of the difference. States that have consistently invested in health and social welfare—through schemes for maternal care, immunisation drives, and nutrition—show sustained improvements. States where such programs remain weakly implemented or irregularly continue to report higher infant deaths despite overall national progress
 
6. Why are there interstate differences in IMR in India?
 
 
  • Interstate differences in Infant Mortality Rate (IMR) in India arise because health outcomes are shaped by a mix of healthcare access, socio-economic development, nutrition, education, and governance, all of which vary widely across states.
  • In states such as Kerala, Tamil Nadu, and Himachal Pradesh, IMR has dropped to single digits because of strong public health systems, high female literacy, widespread institutional deliveries, and effective implementation of maternal and child health schemes.
  • These states have invested consistently in healthcare infrastructure, ensured better nutrition through schemes like ICDS and Poshan Abhiyaan, and created social awareness around immunisation, breastfeeding, and hygiene. Kerala, for instance, combines near-universal institutional deliveries with high maternal education levels, giving it one of the lowest IMRs in the country.
  • By contrast, states such as Madhya Pradesh, Uttar Pradesh, Chhattisgarh, and Odisha continue to record high IMRs. The reasons include weak health infrastructure, shortage of trained medical staff, poor access to emergency neonatal care, and low coverage of institutional deliveries, especially in rural and tribal belts.
  • Malnutrition and maternal anaemia are also more prevalent in these regions, leading to low birth weight and greater vulnerability to infections. Poor sanitation and lack of safe drinking water worsen child health outcomes, while low female literacy and limited awareness about healthcare practices restrict preventive care.
  • Differences in policy implementation and governance also explain the gaps. States that have prioritised maternal and child health through effective rollout of schemes like Janani Suraksha Yojana, Janani Shishu Suraksha Karyakram, and Mission Indradhanush have seen sharper declines in IMR. Others lag because of weaker monitoring, limited resources, and uneven outreach
 
For Prelims: Infant Mortality Rate (IMR), Sample Registration System (SRS), Maternal Mortality Rate (MMR)
 
For Mains: GS II -  Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
 
 
Previous Year Questions
 
1. Consider the following statements (UPSC 2016)
1. The Sustainable Development Goals were first proposed in 1972 by a global think tank called the 'Club of Rome
2. Sustainable Development goals has to be achieved by the year 2030
Which of the statements given above is/ are correct
A. 1 Only            B. 2 Only                   C. Both 1 and 2                 D. Neither 1 Nor 2
 
2. Maternal Mortality Ratio (MMR) of India is released by which of the following office?
(NCL Staff Nurse 2020)
A. Office of Registrar General of India
B. Office of CAG
C. Office of Union Health Minister
D. Office of Statistical computation of India
 
Answers: 1-B, 2- A
 
 
Source: Indianexpress
 
 

EXPENDITURE ON CHILDREN'S EDUCATION IN INDIA

 
 
 
1. Context
 
Despite a recent drop in the World Economic Forum’s gender gap rankings, partly due to the education category, India has made steady progress in recent years in terms of enrolling more girls in school, with government data showing that girls now make up 48% of the school population. In higher education, in fact, the gross enrolment ratio for women is slightly higher than that of men. However, data collected as part of the National Sample Survey earlier this summer show a more insidious gender gap that remains in education — the differing amounts of money that families spend on their sons as opposed to their daughters for their education.
 
2. What are the differences of expenditure?
 
  • The latest findings from the Comprehensive Modular Survey on Education, conducted during April–June under the 80th round of the National Sample Survey (NSS), reveal a consistent gender disparity in educational spending.
  • Across all stages of schooling—from pre-primary to higher secondary—and across both rural and urban areas, households spend less per girl student compared to boys.
  • The survey covered 52,085 households in 2,384 villages and 1,982 urban blocks, collecting education-related details for 57,742 currently enrolled students.
  • In rural regions, families spent on average ₹1,373 (18%) more on boys, factoring in course fees, books, stationery, uniforms, and transportation. In urban areas, the gap was even starker, with ₹2,791 less being spent on each girl than on boys.
  • By the higher secondary stage in cities, families spend nearly 30% more on boys’ education. When tuition fees alone are considered, the disparity is sharper: nationwide, households pay 21.5% higher course fees for boys than for girls.
  • This bias is also reflected in school choices. Around 58.4% of girls attend government schools, where course fees are minimal, while only 29.5% are in private schools. By contrast, 34% of boys are enrolled in costlier private unaided schools.
  • The divide extends beyond classrooms into private tuitions, now widely seen as essential for quality education.
  • Although 26% of girls and 27.8% of boys take tuition classes, spending patterns show inequity: by higher secondary level, families invest on average 22% more in tuition fees for boys than for girls
 
3. Expenditure on State Wise
 
 
  • The gender gap in education differs considerably across Indian States. Looking at enrolments in government versus private schools, the widest disparities appear in places like Delhi, where about 65% of girls attend government schools compared to 54% of boys.
  • In contrast, nearly 38.8% of boys study in private institutions, while only 26.6% of girls do so. States such as Madhya Pradesh, Rajasthan, and Punjab also record gaps exceeding 10 percentage points. In Gujarat, the imbalance is pronounced in urban centres but relatively narrow in rural regions.
  • By comparison, Tamil Nadu and Kerala display near parity between boys and girls in both government and private school enrolment, whereas some northeastern States actually show higher private school attendance among girls than boys.
  • Spending patterns further complicate this picture, especially at the higher secondary level. In States like Telangana, Tamil Nadu, and West Bengal, households invest far more in boys than in girls, even though at the secondary stage spending on girls was higher.
  • For example, in Tamil Nadu, families spent an average of ₹23,796 on a girl student in secondary school compared to ₹22,593 on a boy. But at the higher secondary stage, the average expenditure on boys rises to ₹35,973, while it drops to just ₹19,412 for girls.
  • This shift partly reflects higher dropout rates among girls at that stage, though government subsidies for girls may also explain some of the gap.
  • In Andhra Pradesh, Himachal Pradesh, and Kerala, however, higher secondary expenditure on girls surpasses that of boys, particularly in urban areas where transport costs—linked to ensuring girls’ safety—constitute a major share.
  • Differences are also stark in private coaching expenditure at higher secondary level. In Himachal Pradesh, families spent an average of ₹9,813 per boy enrolled in tuition compared to only ₹1,550 per girl. States such as Bihar, Jharkhand, Rajasthan, and Tamil Nadu also recorded significant gender-based disparities in tuition spending
 
4. Significance of Expenditure on Children's Education 
 
 
  • Expenditure on children’s education holds deep significance, not merely as a financial commitment by families but as a long-term social and economic investment.
  • The money parents spend on schooling—covering tuition fees, books, uniforms, transport, and private coaching—directly shapes the opportunities available to their children.
  • Adequate investment ensures access to better quality schools, trained teachers, and supplementary resources such as private tuitions, which can bridge gaps in classroom learning.
  • Conversely, limited spending often restricts children to under-resourced institutions, narrowing their prospects for higher education and future employment.
  • At a broader level, household expenditure on education reflects societal priorities and attitudes.
  • When families consistently allocate more resources to boys than girls, it reinforces gender inequality and limits the potential of half the population.
  • Such disparities not only hinder women’s empowerment but also slow down social development, as educating girls has proven to generate broader benefits such as improved health, reduced fertility rates, and intergenerational literacy.
  • The significance also extends to the economic domain. Nations that invest in children’s education build a skilled workforce capable of driving innovation, productivity, and growth.
  • Families, through their spending choices, become active participants in this process, complementing state-led investments in public education.
  • However, high private expenditure in contexts of inadequate public funding may also deepen inequalities, as wealthier households can afford better schooling and coaching while poorer families are left behind.
  • In essence, expenditure on children’s education is not just about meeting present needs—it determines the trajectory of individuals, families, and societies. It is an investment that shapes social mobility, gender equity, and national development, making it one of the most critical areas where both household and state spending converge
 
5. National Sample Survey (NSS)
 
  • The National Sample Survey (NSS) is one of the most important large-scale household survey mechanisms in India, designed to generate reliable socio-economic data for policy-making and academic research.
  • It was established in 1950, soon after Independence, under the guidance of P.C. Mahalanobis, who recognized the need for systematic and scientific data collection to plan development.
  • The NSS is currently conducted by the National Sample Survey Office (NSSO), which is a part of the Ministry of Statistics and Programme Implementation (MoSPI).
  • The survey operates on a round system, with each round focusing on specific themes such as consumption expenditure, employment–unemployment, health, education, housing conditions, social consumption, and industry-specific data. For example, the 80th round (2022–23) included the Comprehensive Modular Survey on Education.
  • The significance of the NSS lies in its national coverage, representativeness, and regularity. It covers both rural and urban areas, sampling lakhs of households across all States and Union Territories.
  • The findings provide essential inputs for planning, poverty estimation, inequality analysis, welfare schemes, and sectoral studies. Policies like MGNREGA, Right to Education, Food Security Act, and poverty alleviation strategies have drawn heavily on NSS data.
  • Over time, the NSS has become a backbone of India’s evidence-based policymaking, complementing Census data and surveys conducted by other agencies like NFHS (National Family Health Survey).
  • However, challenges remain, including underreporting, time lag in release of data, and controversies over estimates (e.g., the 2017–18 Consumption Expenditure Survey which was withheld due to data quality concerns)
 
 
 
For Prelims: The Periodic Labour Force Survey, Gender Earnings Gap, Labor force participation rate, Claudia Goldin, 
For Mains: 
1. Discuss the factors that influence work hours for women in the labour market, considering the role of social norms and responsibilities. What policy measures can be implemented to address these factors and increase women's working hours? (250 Words)
 
 
Previous Year Questions
 
1. Which of the following statements about the employment situation in India according to periodic Labour Force Survey 2017-18 is/are correct? (UPSC CAPF 2020) 
1. Construction sector gave employment to nearly one-tenth of the urban male workforce in India
2. Nearly one-fourth of urban female workers in India were working in the manufacturing sector
3. One-fourth of rural female workers in India were engaged in the agriculture sector
Select the correct answer using the code given below:
A. 2 only     B.  1 and 2 only           C. 1 and 3 only          D.  1, 2 and 3
 
Answer: B
 

2. Disguised unemployment generally means (UPSC 2013)

(a) large number of people remain unemployed
(b) alternative employment is not available
(c) marginal productivity of labour is zero
(d) productivity of workers is low

Answer: C

3. Which of the following gives ‘Global Gender Gap Index’ ranking to the countries of the world? (UPSC 2017)

(a) World Economic Forum
(b) UN Human Rights Council
(c) UN Women
(d) World Health Organization

Answer: A

4. Given below are two statements, one is labelled as Assertion (A) and the other as Reason (R). (UPPSC Civil Service 2019)
Assertion (A): The labour force participation rate is falling sharply in recent years for females in India.
Reason (R): The decline in labour force participation rate is due to the improved family income and an increase in education.
Select the correct answer from codes given below:

Codes: 

A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true

Answer: C

Mains

1. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (UPSC 2023)

 
Source: The Hindu

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