CASTE CENSUS
1. Context
Leader of the Opposition in the Lok Sabha, Rahul Gandhi, accused the Narendra Modi government on Wednesday of “openly betraying Bahujans by its approach on the caste census.”
2. What is the Caste Census?
A caste census is a comprehensive survey or data collection effort that aims to gather detailed information about the caste composition of a population. This typically involves:
- Counting individuals belonging to different caste groups
- Collecting socio-economic data related to caste categories
- Assessing the representation of various castes in different sectors
The caste system is particularly relevant in India, where it has historically played a significant role in social stratification. A caste census can provide insights into:
- Population distribution across caste groups
- Economic status of different castes
- Educational levels and employment patterns
- Representation in government jobs and political positions
In India, the last comprehensive caste census was conducted in 1931 during British rule. Since then, calls for a new caste census have been made periodically, with proponents arguing it would help in formulating more targeted welfare policies and ensuring equitable representation.
3. Why the Caste Census?
Historically, British India’s censuses from 1881 to 1931 recorded all castes. Post-Independence, the 1951 census excluded caste enumeration, except for SCs and STs, which continued to be recorded in every census. In 1961, the government allowed states to conduct their own OBC surveys and create state-specific OBC lists, as there were no central reservations for OBCs at that time
A caste census is essential for several reasons:
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Social Necessity: Caste remains a fundamental social framework in India. Inter-caste marriages were just 5% in 2011-12. Caste surnames and markers are common, residential areas are segregated by caste, and caste influences the selection of election candidates and cabinet ministers.
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Legal Necessity: Effective implementation of constitutionally mandated social justice policies, including reservations in elections, education, and public employment, requires detailed caste data. Despite the Constitution using the term 'class,' Supreme Court rulings have established caste as a significant criterion for defining a backward class, necessitating comprehensive caste-wise data to uphold reservation policies.
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Administrative Necessity: Detailed caste data helps correct wrongful inclusions and exclusions within reserved categories, prevents dominant castes from monopolizing reserved benefits, and is essential for sub-categorizing castes and determining the creamy layer's income/wealth criteria.
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Moral Necessity: The lack of detailed caste data has allowed a small elite among upper castes and dominant OBCs to disproportionately control the nation's resources, income, and power
4. Arguments against the Caste Census
There are several arguments against conducting a caste census:
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Social Division: Some argue that a caste census would exacerbate social divisions, although India's social hierarchies have existed for nearly 3,000 years, predating census efforts. Since 1951, counting SCs and STs has not led to conflicts among these groups. Moreover, India’s census already includes data on religion, language, and region, which are equally, if not more, divisive than caste. Ignoring caste in the census will not eliminate casteism any more than excluding religion, language, and region data will eradicate communalism and regionalism.
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Administrative Challenge: Some claim that a caste census would be administratively complex. However, unlike the concept of race, which can be ambiguous but is still counted in many countries like the U.S., caste identification in India is relatively clear. The government has successfully enumerated 1,234 SC castes and 698 ST tribes. Therefore, counting the approximately 4,000 other castes, most of which are specific to certain states, should not pose an insurmountable challenge.
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Increased Reservation Demands: Critics suggest that a caste census could lead to more demands for reservations. However, detailed caste data could actually help manage these demands more effectively by providing a factual basis for discussions. This would enable policymakers to address reservation claims more objectively, such as those from Marathas, Patidars, and Jats. In contrast, governments often prefer vague data because it allows them to make arbitrary reservation decisions for electoral gain
5. The Case for Other Backward Caste (OBC) in Census
- The Constitution allows reservations for OBCs in education (Article 15(4)) and public employment (Article 16(4)), similar to SCs and STs. Following the Mandal Commission's recommendations, OBCs also benefit from reservations in the Central government and its undertakings. The Supreme Court's ruling in the Indra Sawhney case (1992) emphasized that the OBC list, originally based on the 1931 Census, should be updated regularly.
- Unlike SCs and STs, OBCs do not have reserved electoral constituencies for MPs and MLAs. However, the 73rd and 74th Constitutional amendments (1993) introduced reservations for OBCs in panchayats and municipalities (Articles 243D(6) and 243T(6)). To implement this effectively, detailed caste and area-wise Census data of OBCs is necessary, which the government should have collected in the 2001 Census but did not.
- When states like Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Odisha, and Jharkhand attempted to implement OBC reservations in local elections, courts halted these efforts due to the lack of caste-wise OBC data. The judiciary demands this data to uphold reservations, while the executive has avoided collecting it.
- In contrast, the Supreme Court upheld the 10% reservation for economically weaker sections (EWS) among non-OBCs, SCs, and STs (mainly upper castes) in 2022 without empirical support. Given the EWS reservation, the Census should now include all castes, as it did until 1931.
- Though the Census is a Union subject, the Collection of Statistics Act, 2008, allows States and local bodies to collect relevant data. States like Karnataka (2015) and Bihar (2023) have conducted caste surveys, but Census data holds more authority and is less disputed. The government's reluctance to include caste in the Census is both legally indefensible and administratively imprudent
6. Failures attempts of Caste Census
- After extensive lobbying by OBC leaders, Parliament unanimously resolved in 2010, with support from both Congress and BJP, to include caste enumeration in the 2011 Census. The last such enumeration was in the 1931 Census, which recorded 4,147 castes in India, excluding the depressed classes/untouchables.
- However, the Socio-Economic and Caste Census (SECC) of 2011 was poorly designed and executed, resulting in an absurd figure of 4.6 million castes, and its results were never released.
- The failure of SECC-2011 can be attributed to its conduct outside the framework of the Census Act, 1948, which was not amended to include caste as a parameter. Instead, it was managed by the Union Ministries of Rural Development and Urban Development, which lacked experience in conducting sociological surveys.
- Additionally, the questionnaire was poorly designed with open-ended questions about caste, causing confusion among enumerators who struggled to differentiate between genuine castes, alternative names, larger caste groups, sub-castes, surnames, clan names, and gotras. In contrast, Bihar's 2023 Caste Survey provided a list of 214 specific caste names, with a 215th category labeled "Other Castes," resulting in more accurate data.
- Despite the 2010 unanimous Parliamentary resolution, the Central government announced in 2021 that it would not include caste enumeration in the next Census.
- It maintained this stance before the Supreme Court in response to a case filed by the Maharashtra government seeking the inclusion of OBCs in the 2021 Census. The Supreme Court's dismissal of Maharashtra's plea in December 2021 is contentious, given its own previous rulings
7. Way Forward
To address the failures of the SECC-2011, the Census Act of 1948 should be amended to mandate caste enumeration, removing the discretion from the Union executive. Caste should be included in the regular Census conducted by the Census Commissioner, with a few relevant questions added to the questionnaire. The government should also involve sociological and anthropological experts to create a draft list of castes specific to each state, publish this draft online for public feedback, and finalize it before distributing it to enumerators. The questionnaire should include questions about the respondent's sub-caste, caste, larger caste group, and caste surname. Using internet-enabled handheld devices preloaded with this information and limiting the enumerators' role to selecting the correct option will streamline the process and ensure accuracy.
States interested in caste enumeration should petition the Supreme Court to review its 2021 judgment. It is illogical to base OBC reservations on 1931 Census data and EWS reservations on no empirical data. The next Census must include caste enumeration
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For Prelims: Socio-economic and caste census (SECC), Mandal Commission, Justice G Rohini's Commission, NITI Aayog, Article 341 and Article 342.
For Mains: 1. General Studies II: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections
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Source: The Hindu
HUMAN-ANIMAL CONFLICT
1. Context
India’s countryside continues to witness a deepening crisis of human-wildlife conflict, with increasing instances of wild animals straying into farmland and towns that often result in deaths of both wildlife and people, and calls to ‘contain’ animal numbers
2. Key Takeaways
- The same elephant further charged at a bus and destroyed crops grown by three farmers on the same day.
- Meanwhile, a herd of elephants raided a field of 500 plantains belonging to two farmers at
- Kallur, some 10 kms away from Sulthan Bathery.
- After a three-day search, the elephant, codenamed Pandalur Makhna-2 or PM2, was caught and has since been relocated to the elephant kraal at Muthanga in Wayanad.
3. The rampant of human-animal conlict
- A few weeks ago, sightings of a five-year-old tigress at Vakery, some eight kms from Bathery, in the south Wayanad forest division, had caused panic among the residents in the area.
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Forest officials tried to locate the beast, which was found dead in a plantation three days later. While the capture of PM2 provided a huge relief to the people of the area, they were nonetheless disgruntled over the perceived lack of apathy on the part of the government in effectively implementing plans to mitigate human-animal conflict. It has become a serious wildlife management problem in Kerala in the last few years,
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- People living on the fringes of reserve forests and sanctuaries have a heightened sense of insecurity now. But the causes of this are many.
- They attributed many reasons to it including an increase in human population in such areas, habitat loss and fragmentation suffered by wild animals and change in cropping patterns adopted by farmers.
4. Reasons for conflict
- Wild elephants turning restive has been reported from several areas recently, most pertinently from Munnar in Idukki, Vazhachal in Thrissur and in Wayanad itself.
- Crop raid by elephants, cattle-lifting by leopards and tigers and attacks on humans have also been widely reported.
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An analysis of the threats to biodiversity conservation and management of natural resources in various forest divisions of Kerala shows that human-wildlife conflict is a threat existing almost everywhere, but more frequently in the northern region and particularly in Wayanad.
The issue has always been there, but its frequency has gone up lately.
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- An increase in the intrusion of people into wildlife habitats and the change in land use patterns by cultivators have exacerbated the trouble.
- Furthermore, these cultivators, who are often development-oriented and believe that the prime job of the forest department is to protect their interests, are less tolerant of crop raids by wild animals.
5. Wayanad Wildlife Sanctuary
- It is Located in Kerala, Wayanad Wildlife Sanctuary (WWS) is an integral part of the Nilgiri Biosphere Reserve.
- Spread over 344.44 sq km, WWS is contiguous to the tiger reserves of Nagerhole and Bandipur of Karnataka and Mudumalai of Tamil Nadu.
- Kabini river (a tributary of Cauvery river) flows through the sanctuary.
- It was declared a Sanctuary in the year 1973.
5.1. Biodiversity
The forest types include South Indian Moist Deciduous forests, West coast semi-evergreen forests and plantations of teak, eucalyptus and Grewelia.
| Elephant, Gaur, Tiger, Panther, Sambar, Spotted deer, Barking deer, Wild boar, Sloth bear, Nilgiri langur, Bonnet macaque, Common langur, Wild dog, common otter, Malabar giant squirrel etc. are the major mammals. |
6. The way forward
- The only solution is mitigation of conflict. For this, both government and society should work together as a single entity and alter perspectives towards wildlife and human existence in the forest and on its fringes.
- Parallelly, forest conservation must be made more effective, through participatory programmes involving the people.
For Prelims & Mains
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For Prelims: Wayanad Wildlife Sanctuary, Nilgiri Biosphere Reserve, human-animal conlict, Kabini river,
For Mains:
1. What are the reasons for the series of wild elephant attacks in Kerala? Why have such conflicts increased? Discuss how can be done to prevent them? (250 words)
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Source: The Hindu
FREEBIES TO WELFARE
1. Context
The rise of women-centred cash transfers reveals two truths at once: women have finally moved to the centre of welfare policy, and states are committing to them even when finances are tight. At the same time, such welfare programmes, especially direct transfers to farmers and women, often narrow fiscal space and stretch the capacity to invest in long-term development
2. About Freebies
- Freebies in politics are goods or services that are given away for free by political parties or candidates to win votes.
- They can be anything from free food and drinks to free laptops and smartphones.
- Freebies have become increasingly common in political campaigns in recent years.
- The freebie culture is not new to India. It has been around for many years, but it has become more prevalent in recent years.
- There are several different reasons why the freebie culture has become so popular. Some people believe that freebies are a way to help the poor, while others believe that they are a way to buy votes.
- The freebie culture has several negative consequences. It can lead to unsustainable debt levels, it can distort the economy, and it can harm the poor.
- The prime minister is not the only one who has spoken out against the freebie culture. Several economists and policymakers have also expressed concerns about the dangers of this culture.
- There are several different ways to address the freebie culture. The government could focus on providing essential services, it could use technology to target welfare programs more effectively, or it could simply raise taxes.
3. The Perils of the Freebie Culture
- They can lead to unsustainable debt levels. When governments give away free stuff, they have to find a way to pay for it. This often means increasing taxes or borrowing money. In the long run, this can lead to a debt crisis.
- Freebies can distort the economy. When people get free stuff, they have less incentive to work and save. This can lead to lower economic growth.
- Freebies can harm the poor. Often, freebies are not targeted at the people who need them the most. Instead, they are given to everyone, regardless of their income level. This means that the poor may not benefit from freebies at all, while the rich may benefit disproportionately.
4. Types of Freebies and Welfare Schemes
- Political parties in India often promise a range of freebies and welfare schemes, such as free healthcare services, subsidized or free education, subsidized housing, free electricity or water, and distribution of essential commodities.
- These schemes are designed to directly benefit certain sections of society, such as farmers, women, students, or low-income households.
5. Impact on Election Outcomes
- Freebies and welfare schemes can have a significant impact on election outcomes, as they appeal to voters who may see immediate benefits from such promises.
- Parties strategically target specific voter groups based on their needs and interests, aiming to secure their support and votes.
6. Criticism and Concerns
- Critics argue that the distribution of freebies and welfare schemes can create a culture of dependency on the government, hinder economic growth, and lead to unsustainable fiscal policies.
- There are concerns about the long-term impact on the economy, such as increased fiscal deficits, inflationary pressures, and a potential burden on future generations.
7. Effectiveness and Implementation
- The effectiveness of freebies and welfare schemes varies. While some schemes have successfully reached their intended beneficiaries and improved their well-being, others have faced challenges in implementation, including corruption, mismanagement, and targeting issues.
- Evaluating the implementation and impact of these schemes is crucial to assess their effectiveness.
8. Role of the Election Commission
- The Election Commission of India plays a crucial role in monitoring election campaigns and enforcing the Model Code of Conduct.
- It aims to ensure a level playing field for all political parties, including monitoring the distribution of freebies during elections and taking action against any violations.
9. Conclusion
For freebies and welfare in Indian elections, it is essential to analyze the potential benefits and drawbacks of such initiatives, their impact on the economy and society, and the role of responsible governance in ensuring their effective implementation while maintaining long-term sustainability.
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For Prelims: freebies, Election Commission of India, Political Parties
For Mains:
1. Discuss the impact of the freebies culture and welfare schemes on Indian elections. How do these promises influence voter behaviour and election outcomes? (250 Words)
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Source: The Indian Express
RARE DISEASES
1. Context
Recently, the Supreme Court issued a notice to the central government on a petition seeking the explicit inclusion of haemophilia — a rare bleeding disorder — under the Rights of Persons with Disabilities Act, 2016 (RPwD Act)
2. What are Rare Diseases?
- Rare diseases as the name suggests are conditions that affect very few people.
- The World Health Organisation defines it as any debilitating lifelong disease or disorder with a prevalence of ten or fewer per 10,000 population.
- other countries follow standards ranging between 1 and 10 cases per 10,000 to define a condition as a rare disease.
- There are about 7,000 to 8,000 conditions globally that have been defined as rare diseases.
- The landscape of rare diseases keeps changing, with newer conditions being identified and reported constantly.
- With limited experience with these diseases, they are extremely difficult to diagnose and more difficult to test for.
- A report quoted by the country’s National Rare Disease Policy 2021 says that in the United States, a person with rare disease gets diagnosed on average after 7.6 years and in the United Kingdom after 5.6 years.
- The patients have to visit as many as eight physicians, including four specialists, to get a diagnosis.
- Two to three misdiagnoses are also typical before getting the final diagnosis, as per the study.
- Even after one gets a diagnosis, most rare diseases do not have a specific treatment and, the ones that do can be prohibitively expensive.
3. What are the drugs that have been exempted from customs duty?
Medicines and foods needed for the management of 51 rare diseases have been exempt from customs duty, with the government notification stating, drugs, medicines, or food for special medical purposes are used for the treatment of rare diseases specified.
The specified conditions include
The specified conditions include
- Lysosomal storage disorder (a group of metabolic disorders that lead to a buildup of toxic materials in the cells).
- Maple syrup urine disease (a hereditary condition where the body cannot process the building blocks of proteins resulting in the buildup of harmful substances in blood and urine).
- Severe food protein allergy, Wilson’s disease (a disorder that results in the body accumulating copper) among others.
- These medicines usually attract a basic customs duty of 10 percent, with some vaccines or medicines attracting a lower 5 percent or nil as previously notified.
- Medicines for the treatment of spinal muscular athrophy and duchenne muscular dystrophy were already exempt from customs.
- This will be a huge relief for people living with rare diseases because many of the medicines and food products are not available in India and have to be imported.
- The cost of medicines is also usually very high, going up with the increasing age and weight of the person. And, the medicines for many of the conditions have to be taken for life.
4. How can one avail of the exemption?
- To avail of the benefits, people importing it have to get a certificate from the central director general, deputy director general, or assistant director general of health services, director general of state health services, or district medical officer or civil surgeon.
- The certificate has to be provided to the deputy commissioner of customs or assistant commissioner of customs at the time of clearance. (or)
- The person will have to give the undertaking to furnish the certificate in a specified period, failing which the customs duty will have to be paid.
5. Why are drugs for rare diseases so expensive?
- Even though there have been developments in the treatment of rare diseases in recent years, almost 95 percent of the conditions do not have specific treatment.
- With a very small number of people suffering from each of the 7,000- 8,000 rare conditions, they do not make a good market for drugs.
- This is the reason most pharmaceutical companies are reluctant to spend on research for treatments of the disease.
- This is the reason the medicine for rare conditions that do exist are known as “orphan drugs” and are prohibitively priced to recoup the cost of research and development.
- As per the National Rare Disease Policy, treatment for some rare diseases can vary from Rs 10 lakh to 1 crore per year for a child weighing 10 kg.
- The treatment has to be continued lifelong, with the costs going up along with the age and weight of the person.
- At present, very few pharmaceutical companies are manufacturing drugs for rare diseases globally and there are no domestic manufacturers in India.
6. Situation in India
- Data on how many people suffer from conditions that are considered to be rare diseases globally is not available in India.
- There is no epidemiological data on the incidence, but cases reported from tertiary care hospitals do get recorded in the national portal that was set up by the Indian Council of Medical Research after the rare disease policy came out.
- As per data submitted to the parliament in December 2021, at least 4,001 rare disease cases were recorded on the portal.
The most commonly reported rare disease includes
- Primary immunodeficiency disorder (a genetic condition that impairs the immune system)
- Lysosomal storage disorders (a group of metabolic disorders that lead to a buildup of toxic materials in the cells)
- Small molecule inborn errors of metabolism (a large group of genetic conditions, where the genetic code for metabolic enzymes are defective)
- Cystic fibrosis (a condition that severely damages the lung leading to the need for a transplant)
- Osteogenesis imperfect (a condition where bones fracture easily) and
- Certain forms of muscular dystrophies and spinal muscular atrophy.
7. Government Provision for financial support
- Other than relief from customs duty, the government also has provision for providing financial support up to R50 lakh for the treatment of any kind of rare disease at the Centres of Excellence.
- Earlier, financial aid of up to R20 lakh was provided to those with Group 1 rare diseases where one-time curative treatments exist.
For Prelims & Mains
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For Prelims: Rare Diseases, National Rare Disease Policy 2021, Customs Duty, Indian Council of Medical Research (ICMR).
For Mains: 1. What are Rare Diseases? Discuss the India scenario of Rare Diseases as per the National Disease policy 2021.
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Source: The Indian Express
Previous Year Question
| 1. With reference to Ayushman Bharat Digital Mission, consider the following statements: (UPSC 2022)
1. Private and public hospitals must adopt it.
2. As it aims to achieve universal, health coverage, every citizen of India should be part of it ultimately.
3. It has seamless portability across the country.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 3 only C. 1 and 3 only D. 1, 2 and 3 Answer: D
2.Which one of the following is a rare disease caused by the deficiency of Vitamin D that causes the bones to become soft and to bend? (SSC CHSL 2020)
A.Rickets
B.Pernicious anemia
C.Atrophic gastritis
D.Lupus
Answer (A)
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TRADE DEFICIT
1. Context
India’s trade deficit in October surged by 141% in October 2025 to $21.8 billion. While this is a seemingly alarming jump, underlying data show that things aren’t all that bad, with India’s exports displaying some resilience in the face of significant headwinds, and its imports being disproportionately affected by the import of a few items.
2. What is the Trade balance?
- Trade balance is a measure of how much a country earns from selling goods to other countries compared to how much it spends on buying goods from abroad. It tells us whether a nation is bringing in more money through exports or sending out more money due to imports.
- If a country exports more than it imports, it has a trade surplus, meaning it earns extra foreign currency and its economy may appear stronger in terms of external trade.
- On the other hand, if imports are higher than exports, the country experiences a trade deficit, which means it is spending more on foreign goods than it is earning through exports.
- The trade balance is an important part of a country’s Balance of Payments because it reflects the health of international trade, affects the value of its currency, and influences economic policies.
- In simple terms, it shows whether a country is “selling more than it buys” or “buying more than it sells” in the global market
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3. India's Exports
- India’s overall exports in October 2025 dipped by 0.7%, settling at $72.9 billion. This decline was mainly driven by a significant fall in merchandise exports, which dropped by 11.8% to $34.4 billion. In contrast, the services sector performed strongly, registering an 11.9% increase during the same month.
- However, this weak merchandise performance in October did not substantially alter the broader trend.
- When viewed across the April–October 2025 period, India’s total exports still posted a 4.8% rise. During these seven months, merchandise exports inched up by 0.6%, while services exports expanded by 9.75%.
- India achieved its highest-ever quarterly export levels in both the first and second quarters. This led to the strongest export showing in the first half of any financial year, driven largely by robust growth in services exports.
- It is also worth noting that the major challenges India currently faces—particularly the 50% tariffs imposed by the United States—impact only merchandise exports and not the services sector
4. Sectors that are affected by this trend
- In October 2025, many labour-intensive industries experienced sharp declines in their export figures.
- Shipments of leather and related goods dropped by 15.7%, gems and jewellery fell by 29.5%, exports of organic and inorganic chemicals were down by 21%, engineering goods declined by 16.7%, cotton yarn by 13.3%, man-made yarn by 11.8%, and jute by 27.8%, among others.
- Since the United States is a major buyer of most of these products, the recently imposed tariffs have dealt a heavy blow to these sectors.
- Although exporters are attempting to move into new markets and broaden their global reach, reworking supply chains is a slow process, meaning these challenges are likely to continue for some more months
5. What are the Disadvantages of Trade Deficits?
- A trade deficit can create several challenges for a country, affecting both its economy and long-term growth prospects. When a nation imports more than it exports, money flows out of the economy, and this imbalance can have a range of consequences.
- One disadvantage is the increased reliance on foreign capital. To finance a persistent trade deficit, a country may have to borrow from abroad or attract foreign investment.
- Over time, this can lead to rising external debt and greater vulnerability to global financial fluctuations. If investors lose confidence, the country may face sudden capital outflows or currency instability.
- A large trade deficit can also put downward pressure on the domestic currency. As more foreign currency is demanded to pay for imports, the value of the national currency may depreciate.
- A weaker currency makes imports costlier, contributing to inflation, which in turn can reduce purchasing power and increase the cost of living.
- Another drawback is the potential harm to domestic industries. When imports surge, local producers may struggle to compete with cheaper or higher-quality foreign goods.
- This can lead to reduced production, job losses, and even the closure of certain industries. Over time, the country might become less self-reliant, depending heavily on imported goods and services.
- Moreover, a sustained trade deficit can signal deeper structural problems—such as low productivity, limited export diversification, or a lack of competitiveness in global markets. These issues can slow economic growth and hinder future development if not addressed through policy measures
6. What Measures are Needed for a Balanced Trade?
- Achieving a balanced trade—where exports and imports remain reasonably aligned—requires a mix of policy interventions, structural reforms, and long-term economic strategies. Here is an explanatory, non–bullet-point answer:
- A balanced trade situation can be fostered by strengthening a country’s export capacity while ensuring that imports remain sustainable. One of the most important steps is improving the competitiveness of domestic industries.
- This involves investing in better infrastructure, reducing logistics costs, enhancing technology adoption, and supporting innovation so that Indian products can match or outperform global competitors. When goods become competitive in quality and price, export growth naturally strengthens.
- At the same time, diversification of export markets and products is crucial. Relying too heavily on a few countries or sectors makes trade vulnerable to external shocks such as tariffs, geopolitical tensions, or global demand fluctuations.
- By expanding into new regions and promoting high-value sectors—like pharmaceuticals, electronics, engineering goods, and services—India can reduce risk and stabilize export earnings.
- Another measure is encouraging domestic manufacturing to reduce unnecessary imports. Policies such as “Make in India,” production-linked incentives, and support for MSMEs help develop local supply chains that can replace imported goods. This not only saves foreign exchange but also boosts employment and industrial growth.
- Trade agreements also play a major role. Negotiating fair and strategic free trade agreements can open new markets for Indian exporters while ensuring that local industries are protected from excessive import competition.
- Clear, stable trade policies help build confidence among exporters and attract investment into export-oriented sectors.
- Improving ease of doing business is equally important. Simplified customs procedures, faster clearances, efficient ports, and digital trade facilitation make exporting smoother and cheaper. Reducing compliance burdens encourages more firms—especially small and medium enterprises—to participate in global trade.
- Finally, macroeconomic stability supports balanced trade. A stable currency, controlled inflation, and prudent fiscal policies make exports more predictable and imports manageable. When the domestic economy is stable, it creates an environment where trade can grow without creating imbalances
7. Way Forward
This issue can be examined from different angles. On the export front, India’s merchandise shipments are likely to remain under strain for as long as the 50% U.S. tariffs continue. Even so, the trade friction between India and the United States has begun to ease somewhat. Both countries completed the sixth round of negotiations on a Bilateral Trade Agreement (BTA) in October, signalling renewed progress.
Officials from both sides have once again started expressing optimism about finalising at least the initial phase of the BTA. Such discussions had paused right after the steep tariffs were imposed, so their revival is a positive development. If the question of tariffs is resolved in the early part of the agreement, India’s merchandise exports could regain momentum.
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For Prelims: Trade Deficit, Balance of Payments (BoP), Exports, Imports
For Mains: GS III - Economy
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Previous Year Questions
1. Consider the following countries:
1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA
Which of the above are among the free-trade partners' of ASEAN? (UPSC 2018)
A. 1, 2, 4 and 5 B. 3, 4, 5 and 6 C. 1, 3, 4 and 5 D. 2, 3, 4 and 6
2. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if (UPSC 2018) (a) Industrial output fails to keep pace with agricultural output.
3. The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following: (2010)
Which of the above are the objectives of this Act? (a) 1 and 2 only (b) 3 only (c) 2 and 3 only (d) 1, 2 and 3 4. A “closed economy” is an economy in which (UPSC 2011) (a) the money supply is fully controlled 5. With reference to the “G20 Common Framework”, consider the following statements: (UPSC 2022)
1. It is an initiative endorsed by the G20 together with the Paris Club. 2. It is an initiative to support Low Income Countries with unsustainable debt. 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 Answers: 1-C, 2-C, 3-A, 4-D, 5- C
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Source: The Hindu
STATE ELECTION COMMISSION (SEC)
1. Context
Following the Supreme Court’s directions, Maharashtra will hold local body elections in three phases, beginning on December 2. The first phase covers 246 municipal councils and 42 nagar panchayats, while the second will include 32 of 34 zilla parishads and 336 of 351 panchayat samitis. The municipal corporation elections will be held in the last phase. The court has directed that all elections be completed by January 31, 2026. The exercise comes amid Opposition criticism of errors and duplication in the voters’ lists.
2. Can the State Election Commission delete duplicate names?
- No, the State Election Commission (SEC) is not empowered to include or remove names from the electoral rolls. The Constitution grants the SEC authority over the supervision, direction, and control of elections to municipal and rural local bodies.
- But under the five State Local Body Acts, the SEC does not create a separate voter list. It relies on the electoral rolls prepared by the Election Commission of India (ECI) under the Representation of the People Act, 1950, and simply divides them according to the respective wards of the local bodies.
- For the upcoming local body polls, the Maharashtra SEC will use the electoral roll updated up to July 1, 2025—that is, the list reflecting all additions and modifications made by the Chief Electoral Officer till that date.
- However, the cut-off date for registering first-time voters remained January 1, 2025. Consequently, many young individuals who turned 18 after January 2025 are disappointed that they will not be eligible to vote in the forthcoming elections
3. What does the State Election Commission (SEC) do?
- The State Election Commission (SEC) is the constitutional authority responsible for ensuring that elections to local bodies—such as municipalities, municipal corporations, panchayats, and other rural and urban local institutions—are conducted freely and fairly.
- Its primary role is to oversee the entire election process at the local level. This includes announcing the election schedule, supervising the nomination of candidates, monitoring campaigning, and ensuring the polling and counting processes take place without bias or interference.
- While the SEC controls and directs how local elections are carried out, it does not prepare the voter lists itself. Instead, it relies on the electoral rolls created by the Election Commission of India under the Representation of the People Act, 1950.
- The SEC takes those rolls and adapts them to the relevant local wards or constituencies. Apart from managing election logistics, it also handles issues like enforcing the model code of conduct for local polls, resolving disputes related to the conduct of elections, and issuing guidelines to ensure transparency and integrity in the voting process
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4. Administrative Reforms Commission Recommendation
- The Administrative Reforms Commission (ARC) was set up by the Government of India to suggest measures for improving the efficiency, accountability, and responsiveness of the Indian administration.
- Over its reports—both the First ARC (1966–70) and the Second ARC (2005–2009)—it made wide-ranging recommendations to strengthen governance, modernize public institutions, and enhance citizen-centric administration.
- The ARC emphasised that the Indian administrative system had become over-centralised, rule-bound, and slow, and therefore required structural, procedural, and behavioural reforms.
- It recommended redefining the role of the government, decentralising power to states and local bodies, and making the bureaucracy more transparent and accountable.
- The Commission also advocated simplifying procedures, reducing delays, and leveraging technology to make public service delivery more efficient.
- One of the central themes of the ARC’s suggestions was improving the quality of public servants. It argued for reforms in recruitment, training, performance evaluation, and promotion systems to ensure that officials are competent, motivated, and ethical.
- It highlighted the need for a code of ethics, stronger vigilance mechanisms, protection for whistle-blowers, and steps to curb corruption.
- The ARC also pushed for strengthening institutions of accountability such as the Lokpal/Lokayuktas, the CBI, and audit bodies. In areas like e-governance, it encouraged the use of digital tools and transparent processes to reduce human discretion and improve service delivery. In police reforms, it recommended insulation from political interference and improved training.
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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).
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Previous year Question1. 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
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Source: The Hindu
PAY COMMISSION
1. Context
The Central government has constituted the 8th Central Pay Commission (CPC) with retired Justice Ranjana Prakash Desai as the Chairperson. It also consists of Professor Pulak Ghosh, faculty at IIM Bangalore, as a part-time member and Pankaj Jain IAS, Secretary to the government of India, as member-secretary. It will submit its report within 18 months.
2. What is the Pay Commission?
- In India, Pay Commissions are constituted through an executive order following a decision by the Cabinet. Their primary function is to examine various aspects related to the pay structure, retirement benefits, and service conditions of Central Government employees, including members of the armed forces, and to suggest appropriate revisions wherever necessary. The establishment of the first Pay Commission dates back to the year 1946
- A Pay Commission is an official body appointed by the Government of India to review and recommend changes to the salary structure, allowances, and pension benefits of Central Government employees, including defence personnel.
- Its main purpose is to ensure that government employees are fairly compensated in line with the changing economic conditions of the country and the rising cost of living.
- The idea of a Pay Commission originated soon after independence. The First Pay Commission was established in 1946, even before India became fully independent.
- Since then, the government has set up a new Pay Commission roughly every ten years to revise the pay structure in keeping with inflation, fiscal capacity, and evolving economic realities.
- So far, seven Pay Commissions have been constituted. The most recent one, the Seventh Pay Commission, was headed by Justice A.K. Mathur and submitted its report in 2015, which was implemented in 2016.
- Each Pay Commission is tasked with examining the existing pay scales of government employees and making recommendations to rationalize them. It studies the disparities between different levels of employees, the balance between civilian and defence personnel salaries, and also the comparison between government and private sector pay levels.
- The Commission’s recommendations aim to promote equity, efficiency, and satisfaction among employees, while ensuring that the government's financial burden remains sustainable.
- The impact of Pay Commissions is significant. Their recommendations affect the income of around 47 lakh serving employees and over 50 lakh pensioners, which also has a multiplier effect on state governments and the economy as a whole.
- Implementation of Pay Commission recommendations often leads to increased consumer spending, but it can also put pressure on government finances due to the rise in salary and pension expenditure
3. What are its terms of reference (TOR)?
- The Terms of Reference (ToR) for each Pay Commission are approved by the Union Cabinet. In the case of the 8th Central Pay Commission (CPC), its ToR directs the body to take into account several key factors while framing its recommendations.
- These include the overall economic situation of the country and the need to maintain fiscal discipline, the requirement to allocate sufficient funds for developmental and welfare initiatives, the financial burden posed by non-contributory pension schemes, and the likely effect of its recommendations on the finances of State governments, which often follow the CPC’s suggestions.
- Additionally, the Commission is expected to assess the existing pay and working conditions in Central public sector undertakings as well as in the private sector to ensure a balanced and realistic approach
4. Global Practices on the Pay Commission
- Across the world, until the 1970s, public sector pay structures were primarily designed to ensure equity by aligning government salaries with those in comparable private sector roles. During the 1980s, however, the focus shifted from equity to efficiency, emphasizing productivity and optimal resource use.
- From the 1990s onward, compensation systems began to integrate performance-based pay and incentives, while also considering the government’s financial capacity. Today, public sector remuneration models are evolving further to attract and retain skilled and competent individuals, all while keeping overall expenditure under control.
- According to international benchmarks, a fair public sector compensation framework should be guided by a clear pay philosophy and should ensure the ability to attract capable talent, maintain fairness within the system (internal equity), remain competitive with the external job market, and provide transparency in structure and rationale.
- In the Indian context, although internal equity receives considerable emphasis, pay competitiveness with the private sector—particularly for senior-level positions—continues to lag behind.
- Interestingly, comparative data from other major democracies reveal that, contrary to the popular belief that India’s public sector is oversized, inefficient, and overpaid, the country actually fares lower on most indicators of public sector employment and wage levels when compared with other large democratic nations
5. Way Forward
Several important elements within the Terms of Reference (ToR) of the Pay Commission merit closer examination. To begin with, the ToR directs the Commission to compare public sector pay structures with those in the private sector—a task that previous Pay Commissions have also undertaken. It has consistently been observed that while entry-level positions in government service tend to offer higher salaries than comparable roles in the private sector, the situation reverses at senior levels and for specialized positions. In the Seventh Pay Commission, the compression ratio—which measures the difference between the lowest and highest salaries in the Central government—was set at 1:12.5. Though government jobs offer various privileges, perks, and the assurance of job security that partly compensate for lower pay at senior levels, it may now be necessary to reconsider this structure, especially for top and expert-level roles, to ensure the government can attract and retain skilled professionals.
Another aspect worth noting is that the ToR does not explicitly address non-monetary factors such as professional development opportunities, training, workplace flexibility, or health and well-being initiatives. It is anticipated that the Pay Commission will take these qualitative factors into account in its final recommendations, recognizing their growing importance in shaping an effective and motivated public workforce
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For Prelims: Pay Commission, Finance Commission, Article 280, Fiscal Consolidation, Fiscal Federalism, and Alternative Dispute Resolution (ADR) mechanism.
For Mains: 1. Discuss the Role and Challenges of the Finance Commission in Promoting Fiscal Federalism and Ensuring Equitable Resource Distribution in India. (250 words).
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Previous year Question1. With reference to the Finance Commission of India, which of the following statements is correct? (UPSC 2011)
A. It encourages the inflow of foreign capital for infrastructure development.
B. It facilitates the proper distribution of finances among the Public Sector Undertaking.
C. It ensures transparency in financial administration.
D. None of the statements (a), (b), and (c) given above is correct in this context.
Answer: D
2. With reference to the Fourteenth Finance Commission, which of the following statements is/are correct? (UPSC 2015)
1. It has increased the share of States in the central divisible pool from 32 percent to 42 percent.
2. It has made recommendations concerning sector-specific grants.
Select the correct answer using the code given below.
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: A
3. Which of the following is/are among the noticeable features of the recommendations of the Thirteenth Finance Commission? (UPSC 2012)
1. A design for the Goods and Services Tax, and a compensation package linked to adherence to the proposed design.
2. A design for the creation of lakhs of jobs in the next ten years in consonance with India's demographic dividend.
3. Devolution of a specified share of central taxes to local bodies as grants
Select the correct answer using the codes given below:
A. 1 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: C
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Source: The Hindu
