Current Affair

Back
DAILY CURRENT AFFAIRS, 25 MAY 2026

UNLAWFUL ACTIVITIES (PREVENTION) ACT (UAPA)

 
 
 
1. Context
 
 
On May 22, the Supreme Court granted six months of interim bail to two accused in the 2020 Delhi riots case — Abdul Khalid Saifi and Tasleem Ahmad. It also referred to a larger Bench the question of whether prolonged incarceration and delay in trial can override the stringent bail curbs under anti-terror laws such as the Unlawful Activities (Prevention) Act, 1967 (UAPA).
 
 
2. About Unlawful Activities (Prevention) Act (UAPA)
 

The Unlawful Activities (Prevention) Act (UAPA) is an Indian law that was enacted in 1967 to effectively prevent unlawful activities that pose a threat to the sovereignty and integrity of India.

Key highlights of the UAPA

  • Objective: The primary objective of the UAPA is to provide law enforcement agencies with effective tools to combat terrorism and other activities that threaten the security of the nation.
  • Definition of Unlawful Activities: The act defines unlawful activities to include actions that intend to or support the cession of a part of the territory of India or disrupt the sovereignty and integrity of the country.
  • Powers of Designation: The government has the authority to designate an organization as a terrorist organization if it believes that such an organization is involved in terrorism. This designation has significant legal consequences, including the freezing of assets.
  • Powers of Arrest and Detention: The UAPA provides law enforcement agencies with powers of arrest and detention to prevent individuals from engaging in unlawful activities. The act allows for preventive detention to curb potential threats before they materialise.
  • Banning of Terrorist Organizations: The government can proscribe organizations as terrorist organizations, making their activities illegal. This includes banning these organisations, freezing their assets, and taking other measures to curb their operations.
  • Admissibility of Confessions: The UAPA allows for confessions made to police officers to be admissible in court, subject to certain safeguards. This provision has been a point of contention, with concerns about potential misuse and coercion.
  • Designation of Individuals as Terrorists: In addition to organizations, the UAPA allows the government to designate individuals as terrorists. This designation carries legal consequences, including restrictions on travel and freezing of assets.
  • Amendments and Stringency: Over the years, the UAPA has undergone several amendments to strengthen its provisions and make it more effective in dealing with emerging threats. However, these amendments have also been criticized for potential violations of civil liberties.
  • International Cooperation: The UAPA allows for cooperation with foreign countries in matters related to the prevention of unlawful activities. This includes extradition of individuals involved in such activities.
 

3. Unlawful Activities (Prevention) Act (UAPA) and Human Rights

 

The Unlawful Activities (Prevention) Act (UAPA) and human rights lie in the impact the act can have on various fundamental rights guaranteed by the Constitution of India and international human rights standards.

The key points connecting the UAPA and human rights:

  • The UAPA allows for preventive detention, which means individuals can be detained without formal charges based on suspicions of involvement in unlawful activities. This raises concerns about the right to liberty, as individuals may be deprived of their freedom without the presumption of innocence until proven guilty.
  • The admissibility of confessions made to police officers under the UAPA raises issues related to the right against self-incrimination. There is a risk that such confessions might be obtained under duress or coercion, compromising the fairness of legal proceedings.
  • Designating individuals as terrorists and proscribing organizations without due process may impinge on the right to a fair trial. This includes the right to be informed of charges, the right to legal representation, and the right to present a defense.
  • The UAPA provides authorities with the power to proscribe organizations as terrorist organizations, limiting their activities. Critics argue that this may infringe upon the right to freedom of association, particularly when such designations are made without sufficient evidence or proper legal procedures.
  • The potential for misuse of the UAPA to target individuals or organizations critical of the government raises concerns about freedom of expression. If the act is used to suppress dissent or stifle legitimate political or social activities, it can undermine this fundamental right.
  • The UAPA grants authorities the power to intercept communications and conduct surveillance on individuals suspected of engaging in unlawful activities. This raises concerns about the right to privacy, as individuals may be subjected to intrusive surveillance without adequate safeguards.
  • Human rights standards require that any restrictions on rights, such as those imposed by the UAPA, must be proportionate and necessary for achieving a legitimate aim. Critics argue that the broad scope of the UAPA may lead to disproportionate measures that unduly restrict individual rights.
  • The UAPA's compatibility with international human rights standards, including the International Covenant on Civil and Political Rights (ICCPR), is a critical point of consideration. Ensuring that the act aligns with these standards is essential to upholding human rights principles.
 

4. Unlawful Activities (Prevention) Act (UAPA) and Article 22 of the Constitution

 

The Unlawful Activities (Prevention) Act (UAPA) and Article 22 of the Indian Constitution lie in how the UAPA's provisions for arrest and detention intersect with the constitutional safeguards provided under Article 22. 

  • Article 22 provides certain protections to individuals who are arrested or detained. It outlines the rights of arrested individuals, emphasizing safeguards to prevent arbitrary or unlawful detention.
  • Article 22(1) states that every person who is arrested and detained shall be informed, as soon as may be, of the grounds for such arrest. This provision ensures that individuals are aware of the reasons behind their arrest, preventing arbitrary or secret detentions.
  • Article 22(1) also guarantees the right of an arrested person to consult and be defended by a legal practitioner of their choice. This ensures that individuals have access to legal assistance during the legal process, contributing to a fair and just legal system.
  • The UAPA includes provisions for preventive detention, allowing authorities to detain individuals to prevent them from committing certain offences. However, Article 22(4) allows preventive detention only under specific circumstances, and certain safeguards must be followed, such as providing the detenu with the grounds for detention and an opportunity to make a representation against the detention.
  • Article 22(4) further mandates that a person detained under a law providing for preventive detention must be afforded the earliest opportunity to make a representation against the detention. Additionally, the case of every person detained is required to be placed before an advisory board within three months.
  • The UAPA allows for confessions made to police officers to be admissible in court, subject to certain safeguards. However, this provision has been a point of concern concerning Article 22, as confessions obtained under duress or coercion may violate the right against self-incrimination.
  • Article 22(2) ensures the right to be brought before the nearest magistrate within 24 hours of arrest, excluding the time necessary for the journey. This provision aims to prevent prolonged detention without judicial oversight and contributes to the right to a speedy trial.
 
 
For Prelims: Unlawful Activities (Prevention) Act, Article 22, Terrorism
For Mains: 
1. Discuss the key provisions of the Unlawful Activities (Prevention) Act (UAPA) and analyze how they may impact fundamental human rights. Elaborate on the balance between national security concerns and the protection of individual rights. (250 Words)

 

Previous Year Questions

1. Under Article 22 of the Constitution of India, with the exception of certain provisions stated there in, what is the maximum period for detention of a person under preventive detention? (MPSC 2014)

A. 2 months       B. 3 months         C. 4 months           D. 6 months

 

2. Article 22 of the Constitution ensures (CTET 2016)

A. Right not to be ill-treated during arrest or while in custody

B. Right to Constitutional Remedies

C. Right against Exploitation

D. Right to Education

Answers: 1-B, 2-A

Mains

1. Indian government has recently strengthed the anti-terrorism laws by amending the Unlawful Activities(Prevention) Act, (UAPA), 1967 and the NIA Act. Analyze the changes in the context of prevailing security environment while discussing scope and reasons for opposing the UAPA by human rights organizations. (UPSC 2019)

Source: The Indian Express

 

SEDITION LAW

1. Context

The Supreme Court’s May 21 revival of Section 124A (sedition) proceedings against consenting accused persons exposes them to an admittedly oppressive provision both the court and the Union government agreed was “not in tune with the current social milieu, and was intended for a time when this country was under the colonial regime”.

2. About ‘Sedition’

  • The word "sedition" comes from the Latin word "seditio", which means "a going apart" or "insurrection".
  • It is thought to have originated in the Roman Republic, where it was used to describe any act that threatened the stability of the state.
  • Sedition is any attempt to overthrow or subvert the government by force or violence, or to incite rebellion against the government.
  • It is a serious crime in most countries and can be punishable by imprisonment or even death.
  • In the modern era, sedition laws are typically used to prosecute people who make public statements that are intended to incite violence or rebellion against the government.
  • For example, someone who publishes an article calling for the overthrow of the government, or who gives a speech that encourages people to take up arms against the state, could be charged with sedition.

 3. Sedition laws in India

  • Sedition was incorporated into the Indian Penal Code (IPC) in 1870.
  • It is defined as any action that brings or attempts to bring contempt or hatred toward the government of India.
  • Sedition cases are punishable with a maximum sentence of life imprisonment.
  • It categorizes four sources of seditious acts-spoken words, written words, signs, and visible representations.
  • It is classified as 'cognizable' (No need of a Court warrant to arrest the person ) and a 'non-bailable' and 'non-compoundable' offence.
  • Some people believe that it is necessary to protect the stability of the state, while others believe that it is used to suppress dissent and free speech.
  • It is important to note that the sedition law is only one of many laws that the government can use to crack down on dissent.
  • Other laws, such as the Unlawful Activities (Prevention) Act (UAPA), have also been used to target critics of the government.

4. Historical Background of Sedition Law 

The sedition law in India, as codified in Section 124A of the Indian Penal Code (IPC), has its historical roots in the colonial period during British rule. It was not drafted by Indian authorities but by the British colonial administration. 
 
1. British Colonial Era: The sedition law was introduced by the British colonial administration in India during the mid-19th century. It was part of a series of legal measures enacted by the colonial authorities to suppress dissent and control the Indian population.
 
2. Lord Macaulay's Draft: The Indian Penal Code (IPC), which includes Section 124A on sedition, was drafted by Lord Thomas Babington Macaulay, a British historian, and politician. Macaulay was tasked with creating a comprehensive legal code for India, which would serve the interests of the British colonial rulers. The IPC was ultimately enacted in 1860.
 
3. Objective of the Sedition Law: The primary objective of the sedition law during the colonial era was to curb any form of opposition, criticism, or resistance to British rule. It aimed to quell nationalist movements, suppress publications, and silence voices advocating for Indian self-rule or independence.
 
4. Legal Context: Under colonial rule, the sedition law was used to prosecute and imprison Indian freedom fighters, journalists, activists, and intellectuals who were deemed to be challenging British authority. Prominent leaders like Bal Gangadhar Tilak, Mahatma Gandhi, and Jawaharlal Nehru faced sedition charges at various points in their lives.
 
5. Post-Independence Retention: After India gained independence from British rule in 1947, the newly formed Indian government decided to retain the sedition law as part of the Indian Penal Code. While there have been discussions and debates about amending or repealing the law, it continues to be on the statute books.  
 

5. Sedition law used against Mahatma Gandhi and Bal Gangadhar Tilak

The sedition law was used against Mahatma Gandhi and Bal Gangadhar Tilak on multiple occasions.
Mahatma Gandhi
In 1922, Gandhi was arrested and charged with sedition for his articles in the Young India newspaper. He was convicted and sentenced to six years in prison but was released after two years due to health reasons.
 
Bal Gangadhar Tilak
  1. In 1897, Tilak was arrested and charged with sedition for his speeches at the Shivaji festival. He was convicted and sentenced to 12 months in prison.
  2. In 1908, Tilak was arrested and charged with sedition for his articles in the Kesari newspaper. He was convicted and sentenced to six years in prison.
  • Both Gandhi and Tilak were staunch critics of British rule in India, and their sedition trials were seen as attempts by the British government to silence them.
  • However, their trials also helped to raise awareness of the Indian independence movement and galvanize support for it.
  • In addition to Gandhi and Tilak, many other Indian independence leaders were also charged with sedition, including Jawaharlal Nehru, Subhas Chandra Bose, and Vinayak Damodar Savarkar.

6. About Section 124A of the Indian Penal Code

Section 124A of the Indian Penal Code (IPC) deals with the offence of sedition.  It states that whoever, by words, either spoken or written, or by signs, or by visible representation, or otherwise, excites or attempts to excite disaffection towards the Government established by law in India shall be punished with imprisonment for life, to which fine may be added, or with imprisonment which may extend to three years, to which fine may be added, or with fine. "Disaffection" is defined as "disloyalty and all feelings of enmity".
 

7. Punishment for the Offence of Sedition in India

  • The punishment for the offence of sedition in India is imprisonment for life, to which a fine may be added, or with imprisonment which may extend to three years, to which a fine may be added, or with a fine.
  • In recent years, there has been an increase in the number of sedition cases filed in India.
  • This is partly due to the rise of social media, which has made it easier for people to share their views and opinions. It is also partly due to the government's crackdown on dissent.
The following are some examples of sedition cases that have been filed in India in recent years:
  • In 2019, a journalist named Gauri Lankesh was assassinated. After her death, it was revealed that she had been facing sedition charges for her critical writings about the government.
  • In 2020, a student named Disha Ravi was arrested for sedition for sharing a toolkit on social media that was related to the farmers' protests in India.
  • In 2021, a comedian named Munawar Faruqui was arrested for sedition for allegedly making jokes about Hindu gods and goddesses.
 
For Prelims: Young India newspaper, Bal Gangadhar Tilak, Mahatma Gandhi, Indian Penal Code, Section 124 A, sedition
For Mains: 
1. Discuss the challenges posed by the increasing use of sedition laws in India in recent years. Highlight specific cases and their impact on freedom of speech and dissent. (250 Words)
 
 
Previous Year Questions
 
1. The editor of ‘Young India’ was : (UKSSSC Forest Guard 2020)
A. Mahatma Gandhi      B. C. Rajagopalachari      C. Lala Lajpat Rai    D.  Bal Gangadhar Tilak
 
Answer: A
 
2. Bal Gangadhar Tilak was associated with (UPSC CAPF 2015) 
1. Poona Sarvajinik Sabha
2. The Age of Consent Bill
3. Gaurakshini Sabha
4. Atmiya Sabha
Select the correct answer using the code given below:
A. 1 and 2 only    B. 1, 2 and 4       C. 3 and 4           D. 2 and 4 only
 
Answer: A
 
3. Mahatma Gandhi said that some of his deepest convictions were reflected in a book titled, "Unto this Last" and the book transformed his life, what was the message from the book that transformed Mahatma Gandhi? (UPSC 2011)
A. Uplifting the oppressed and poor is the moral responsibility of an educated man.
B. The good of individual is contained in the good of all.
C. The life of celibacy and spiritual pursuit are essential for a noble life.
D. All the statements (a), (b) and (c) are correct in this context.
 
Answer: B
 
4. When was the infamous section 124-A relating to 'sedition' was incorporated into the Indian Penal code by an Act XXVII? (UGC NET 2020)
A. 1860      B. 1861       C. 1870            D. 1879
 
Answer: C
 
5. With reference to Rowlatt Satyagraha, which of the following statements is/are correct? (UPSC 2015)
1. The Rowlatt Act was based on the recommendations of the 'Sedition Committee'.
2. In Rowlatt Satyagraha Gandhiji tried to utilize the Home Rule League.
3. Demonstrations against the arrival of the Simon Commission coincided with Rowlatt Satyagraha.
Select the correct answer using the code given below.
A. 1 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
 
Answer: B
 
 
 

CURRENCY DEPRECIATION

 
 
1. Context
 
Three months into the West Asia conflict, India has done well to avoid widespread energy shortages. Furthermore, the burden sharing of higher energy prices between the public and private sector has begun.
 
2. What is Currency depreciation?
 

Currency depreciation refers to the decrease in the value of a country's currency in relation to other currencies in the foreign exchange market. It means that the purchasing power of the currency decreases compared to other currencies, leading to higher prices for imported goods and services.

Currency depreciation can occur due to various factors, including:

  • Supply and demand: If the demand for a currency decreases relative to its supply in the foreign exchange market, its value may depreciate. Factors such as changes in trade balances, capital flows, and interest rates can influence supply and demand dynamics.

  • Inflation differentials: If a country experiences higher inflation rates compared to its trading partners, its currency may depreciate as the purchasing power of the currency decreases relative to other currencies.

  • Economic performance: Weak economic indicators, such as low growth rates, high unemployment, or large fiscal deficits, can lead to a loss of confidence in a country's currency, causing it to depreciate.

  • Political instability: Political uncertainty or instability in a country can undermine investor confidence and lead to capital outflows, putting pressure on the currency to depreciate.

  • Speculative activities: Speculators may engage in trading activities that anticipate currency depreciation, exacerbating downward pressure on the currency's value

3. What do you understand by Rupee depreciation?
 

Rupee depreciation refers specifically to the decline in the value of the Indian rupee (INR) in relation to other major currencies, such as the US dollar (USD), euro (EUR), or British pound (GBP), in the foreign exchange market. It signifies that the purchasing power of the Indian rupee decreases relative to other currencies, resulting in higher prices for imported goods and services.

Rupee depreciation can occur due to a variety of factors, including:

  • Trade imbalances: Persistent trade deficits, where imports exceed exports, can put downward pressure on the rupee as more foreign currency is required to pay for imports.

  • Capital outflows: If foreign investors sell Indian assets or withdraw investments from the country, it can lead to a decrease in demand for the rupee, causing its value to depreciate.

  • Interest rate differentials: Higher interest rates in other countries can attract foreign investors away from Indian assets, leading to a decrease in demand for the rupee and its depreciation.

  • Inflation differentials: Higher inflation rates in India compared to other countries can erode the purchasing power of the rupee, leading to depreciation.

  • Global economic factors: Events such as changes in global oil prices, geopolitical tensions, or shifts in investor sentiment towards emerging markets can also impact the value of the rupee

4. Appreciation vs Depreciation of Currency-Compare and Contrast
 
Subject Appreciation of Currency Depreciation of Currency
Definition Increase in the value of a currency relative to other currencies. Decrease in the value of a currency relative to other currencies.
Effect on Imports Imports become cheaper. Imports become more expensive.
Effect on Exports Exports become more expensive for foreign buyers. Exports become cheaper for foreign buyers.
Trade Balance May lead to a trade deficit as exports become less competitive. May lead to a trade surplus as exports become more competitive.
Inflation May contribute to deflationary pressures as imported goods become cheaper. May contribute to inflationary pressures as imported goods become more expensive.
Interest Rates May lead to lower interest rates as a stronger currency reduces inflationary pressures. May lead to higher interest rates as a weaker currency increases inflationary pressures.
Foreign Investment May discourage foreign investment as returns become less attractive. May encourage foreign investment as returns become more attractive.
Domestic Production May discourage domestic production as exports become less competitive. May encourage domestic production as imports become more expensive.
External Debt Burden May increase the cost of servicing external debt denominated in foreign currencies. May decrease the cost of servicing external debt denominated in foreign currencies.
Purchasing Power Increases the purchasing power of domestic consumers and businesses. Decreases the purchasing power of domestic consumers and businesses.
Government Policy Response Central banks may intervene to prevent excessive appreciation through measures such as foreign exchange interventions. Central banks may intervene to stabilize the currency or support exports through measures such as interest rate adjustments or currency interventions.
 
5. What is the difference between depreciation and devaluation?
 
Subject Depreciation Devaluation
Definition Decrease in the value of a currency in the foreign exchange market due to market forces. Deliberate and official decrease in the value of a country's currency by the government or central bank.
Cause Market forces such as changes in supply and demand, economic conditions, or investor sentiment. Implemented by the government or central bank to address economic challenges or achieve specific objectives.
Effect Affects the exchange rate of a currency relative to other currencies, making imports more expensive and exports more competitive. Affects the exchange rate of a currency in the foreign exchange market, making imports more expensive and exports more competitive.
Economic Implications Can influence trade balances, inflation, interest rates, and economic growth. Can influence trade balances, inflation, interest rates, and economic growth.
Policy Response Central banks may intervene to stabilize the currency or address excessive depreciation through measures such as foreign exchange interventions or monetary policy adjustments. Deliberate policy action undertaken by the government or central bank, which may involve announcing changes in the official exchange rate, adjusting monetary policy measures, or implementing structural reforms.
 
6.Way Forward
 
Between April-end 2014 and now – roughly the time the Narendra Modi government has been in office – the rupee has depreciated by 27.6% against the US dollar, from Rs 60.34 to Rs 83.38. That’s marginally higher than the 26.5% from April-end 2004 to April-end 2014: The rupee fell from 44.37 to 60.34 to the dollar during that period when the previous Congress-led United Progressive Alliance (UPA) was in power
 
 
For Prelims: Current events of national and international importance.
For Mains: GS-III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment
 
Previous Year Questions

1.Which one of the following is not the most likely measure the Government/RBI takes to stop the slide of the Indian rupee? (UPSC CSE 2019)

(a) Curbing imports of non-essential goods and promoting exports

(b) Encouraging Indian borrowers to issue rupee-denominated Masala Bonds

(c) Easing conditions relating to external commercial borrowing

(d) Following an expansionary monetary policy

Answer (d)

The option that is not the most likely measure the Government/RBI takes to stop the slide of the Indian rupee is:

(d) Following an expansionary monetary policy

An expansionary monetary policy involves increasing the money supply and lowering interest rates to stimulate economic growth. While this policy may indirectly influence the value of the rupee, it is not typically used as a direct measure to stop the slide of the currency. In fact, an expansionary monetary policy may potentially contribute to further depreciation of the rupee if it leads to capital outflows or inflationary pressures.

The other options, (a), (b), and (c), are more directly related to measures that the Government/RBI may take to address currency depreciation, such as curbing imports, promoting exports, encouraging rupee-denominated bonds, and easing conditions for external commercial borrowing

 
Source: Indianexpress
 
 

MINIMUM SUPPORT PRICE

 
 

1. Context

 The Iran crisis-induced supply shock in fertilisers and a below-normal monsoon may give a boost to bajra, moong and other pulses. MSP procurement by the government can also help.

2. What is the Minimum Support Price (MSP)?

 
  • MSP is the minimum price a farmer must pay for their food grains as guaranteed by the government. They are recommended by the Commission for Agricultural Costs and Prices (CACP) and approved by the Cabinet Committee on Economic Affairs.
  • The CACP submits its recommendations to the government in the form of Price Policy Reports every year.
  • After considering the report and views of the state governments and also keeping in view the overall demand and supply situation in the country, the central government takes the final decision.
  • The Food Corporation of India (FCI) is the nodal agency for procurement along with State agencies, at the beginning of the sowing season.
The minimum support price (MSP) is set for 22 crops every year. They include:
  • 7 cereals (paddy, wheat, maize, bajra, jowar, ragi, and barley)
  • 5 pulses (chana, tur/arhar, moong, urad, and Masur)
  • 7 oilseeds (rapeseed-mustard, groundnut, soya bean, sunflower, sesamum, safflower, and Enigerseed) and
  • 4 commercial crops (sugarcane, cotton, copra, and raw jute).

3. How MSP is Calculated?

  • MSP, presently, is based on a formula of 1.5 times the production costs.
  • The CACP projects three kinds of production costs for every crop, both at state and all-India average levels.
  • A2 covers all paid-out costs directly incurred by the farmer — in cash and kind — on seeds, fertilizers, pesticides, hired labour, leased-in land, fuel, irrigation, etc.
  • A2+FL includes A2 plus an imputed value of unpaid family labour.
  • C2: Estimated land rent and the cost of interest on the money taken for farming are added to A2 and FL.
  • Farm unions are demanding that a comprehensive cost calculation (C2) must also include capital assets and the rentals and interest forgone on owned land, as recommended by the National Commission for Farmers.

4. The issue with the calculation of MSP

  • To calculate MSP, the government uses A2+FL cost. The criticism of A2+FL is that it doesn’t cover all costs and that a more representative measure, C2, needs to be used.
  • For example, in the 2017-18 rabi season, CACP data shows that C2 for wheat was 54% higher than A2+FL.
  • The Swaminathan Commission also stated that the MSP should be based on the comprehensive cost of production, which is the C2 method.

5. Key Points about the Farmer's Demand

  • After the recent decision to repeal three contentious farm laws, protesting farmer unions are now pressing for their demand of the legalization of the Minimum Support Price (MSP).
  • They want a legal guarantee for the MSP, which at present is just an indicative or a desired price.
  • Legalising MSPs would put the government under a legal obligation to buy every grain of the crops for which MSPs have been announced.
  • At present, the PM has announced the formation of a committee to make MSP more transparent, as well as to change crop patterns and to promote zero-budget agriculture which would reduce the cost of production.
  • The entire issue of enforcing MSP legally is a tricky, complicated, and multidimensional one, involving lots of factors.
  • Core demand: MSP based on a C2+50% formula should be made a legal entitlement for all agricultural produce. This would mean a 34% increase in the latest MSP for paddy and a 13% increase for wheat. MSP should also be extended to fruit and vegetable farmers who have been excluded from benefits so far.

6. The rationale behind the demand for legislation of MSP

  • Farmers receive less than MSP: In most crops grown across much of India, the prices received by farmers, especially during harvest time, are well below the officially declared MSPs. And since MSPs have no statutory backing, they cannot demand these as a matter of right.
  • Limited procurement by the Govt: Also, the actual procurement at MSP by the Govt. is confined to only about a third of wheat and rice crops (of which half is bought in Punjab and Haryana alone), and 10%-20% of select pulses and oilseeds. According to the Shanta Kumar Committee’s 2015 report, only 6% of the farm households sell wheat and rice to the government at the MSP rates.

7. Challenges associated with MSP

  • Protest by Farmers: Farm unions have been protesting for more than six months on Delhi's outskirts, demanding legislation to guarantee MSP for all farmers for all crops and a repeal of three contentious farm reform laws.
  • MSP and Inflation: When announcing the MSP, inflation should be taken into account. But often the price is not increased up to the mark. For example, this time MSP for Maize has not even considered inflation then how it will benefit farmers! Also, frequent increases in the MSPs can lead to inflation too.
  • High Input Costs: The input costs have been rising faster than sale prices, squeezing the meagre income of the small farmers and driving them into debt.
  • Lack of Mechanism: No mechanism guarantees that every farmer can get at least the MSP as the floor price in the market. So proper mechanisms need to be fixed for all times to come.
  • Restriction in Europe: Even after producing surplus grains, every year a huge portion of these grains gets rotten. This is due to the restrictions under WTO norms, that grain stocks with the FCI (being heavily subsidized due to MSP) cannot be exported.
 
For Prelims: Minimum Support Price, Rabi Crops, WTO, Commission for Agricultural Costs and Prices (CACP), Cabinet Committee on Economic Affairs, Food Corporation of India
For Mains:
1. Explain the concept of Minimum Support Price (MSP) in India. How is MSP determined, and what is its role in ensuring fair prices for agricultural produce? (250 Words)
 
 
Previous Year Questions
 
1. Consider the following statements: (UPSC CSE 2020)
1. In the case of all cereals, pulses, and oil seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.
2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
 
Answer: D
 
2. Which of the following factors/policies were affecting the price of rice in India in the recent past? (UPSC CSE, 2020)
(1) Minimum Support Price

(2) Government’s trading
(3) Government’s stockpiling
(4) Consumer subsidies
Select the correct answer using the code given below:
(a) 1, 2 and 4 only

(b) 1, 3 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
 
Answer: D
 
3. In India, which of the following can be considered as public investment in agriculture? (UPSC GS1, 2020)
(1) Fixing Minimum Support Price for agricultural produce of all crops

(2) Computerization of Primary Agricultural Credit Societies
(3) Social Capital development
(4) Free electricity supply to farmers
(5) Waiver of agricultural loans by the banking system
(6) Setting up of cold storage facilities by the governments.
In India, which of the following can be considered as public investment in agriculture?
Select the correct answer using the code given below:
(a) 1, 2 and 5 only

(b) 1, 3, 4 and 5 only
(c) 2, 3 and 6 only
(d) 1, 2, 3, 4, 5 and 6
 
Answer: C
 
4. The Fair and Remunerative Price (FRP) of sugarcane is approved by the (UPSC CSE, 2015)
(a) Cabinet Committee on Economic Affairs

(b) Commission for Agricultural Costs and Prices
(c) Directorate of Marketing and Inspection, Ministry of Agriculture
(d) Agricultural Produce Market Committee
 
Answer: A
 
 

CENSUS

1. Context

The Supreme Court on Wednesday said there was nothing wrong in the government of the day ascertaining caste as part of the nationwide Census exercise.

2. History of Census

  • India had conducted the Census every 10 years since 1881, but in 2020, the decennial exercise for Census 2021 had to be postponed due to the pandemic.
  • Though the government has not announced fresh dates for the Census, the groundwork is being laid and details are emerging about some of the features.
  • It will be the first digital Census allowing citizens to "self-enumerate". The NPR (National Population Register) has been made compulsory for citizens who want to exercise the right to fill out the Census form on their own rather than through government enumerators.
  • For this, the Office of the Registrar General of India (RGI) has designed a "self-enumeration, Aadhaar or mobile number will be mandatorily collected.

3. Status of the Census exercise

  • A January 2 notification extending the deadline for freezing administrative boundaries in States until June 30 has ruled out the exercise at least till September.
  • As preparation and training take at least three months, the Census will have to be pushed to next year.
  • Around 30 lakh government officials will be assigned as enumerators and each will have the task to collect the details of 650-800 people through both online and offline modes, covering an estimated population of 135 crore people.
  • The Lok Sabha election is due in April-May 2024 and it is unlikely that the Census will be carried out before that since the same workforce will be dedicated to the elections.
  • The completion of both phases of the Census will take at least 11 months, even if done at an accelerated pace from October 1.

4. Holding up the Census

  • One reason which is holding up the exercise is the amendments proposed to the Registration of Births and Deaths Act, of 1969.
  • The government wants to have a centralised register of births and deaths that can be used to update the population register, electoral register, Aadhaar, ration card, passport and driving license databases.
  • The centrally stored data will be updated in real-time without a human interface leading to addition and deletion from electoral rolls when an individual turns 18 and after an individual's death respectively.
  • A Bill to link the births and deaths registered with the population register and others are expected to be tabled in the next session of Parliament.

5.  NPR

  • The NPR, unlike the Census, is a comprehensive identity database of every "usual resident" in the country and the data proposed to be collected at the family level can be shared with States and other government departments.
  • Though Census also collects similar information, the Census Act of 1948 bars sharing any individual's data with the State or Centre and only aggregate data at the administrative level can be released.
  • According to Citizenship Rules 2003 under the Citizenship Act, 1955, NPR is the first step towards a compilation of the National Register of Indian Citizens (NRIC/NRC).
  • Assam is the only State where an NRC has been compiled based on the directions of the Supreme Court, with the final draft of Assam's NRC excluding 19 lakhs of the 3.29 crores applicants.
  •  Assam Government has rejected the NRC in its current form and demanded re-verification of 30 per cent of names included in the NRC in areas bordering Bangladesh and 10 per cent in the remaining State.
  • In 2020, the NPR was opposed by several State governments such as West Bengal, Kerala, Rajasthan, Odisha, Bihar, Andhra Pradesh, Telangana, Punjab and Chhattisgarh and Civil Society Organisations due to its link with the proposed NRC as it might leave many people stateless for want of legacy documents.
  • There are apprehensions that the Citizenship Amendment Act 9 (CAA), 2019 allows citizenship based on religion to six undocumented religious communities from Pakistan, Afghanistan and Bangladesh who entered India on or before December 31, 2014, will benefit non-Muslims excluded from the proposed citizens' register, while excluded.
  • Muslims will have to prove their citizenship. The government has denied that the CAA and NRC are linked and there are currently any plans to compile a countrywide NRC.

5.1. The current status of NPR

  • The NPR was first collected in 2010 when the Congres government was in power at the Centre.
  • It was updated in 2015 and already has details of 119 crore residents.
  • In March 2020, the Ministry of Home Affairs (MHA) amended the Census Rules framed in 1990 to capture and store the Census data in an electronic form and enabled self-enumeration by respondents.
  • The NPR is scheduled to be updated with the first phase of Census 2021.
  • For this phase (house listing and household phase), 31 questions have been notified, while for the population enumeration, the second and main phase 28 questions have been finalised but are yet to be notified.
  • The NPR is expected to collect details on 21 parameters of all family members, up from 14 questions in 2010 and 2015.
  • The Sub-heads include passport number, relationship to head of the family, whether divorced/ widowed or separated, mother tongue if non-worker, cultivator, labourer, government employee, daily wage earner among others.
  • The form also has a column on Aadhar, mobile phone, Voter ID and driver's licence.
  • Though the government has claimed that the NPR form has not been finalised yet, the sample form is part of the Census of India 2021 Handbook for Principal/District Census Officers and Charge Officers in 2021.
  • The NPR has retained contentious questions such as "mother tongue, place of birth of father and mother and last place of residence", possible indicators to determine inclusion in the Citizenship register.
  • The questions were opposed by the State governments of West Bengal, Kerala, Rajasthan and Odisha in 2020.
  • The final set of questions of both the phases and NPR was asked during a pre-test exercise in 2019 in 76 districts in 36 States and Union Territories covering a population of more than 26 lakhs.

6. Expected expenditure for Census

  • The initial draft was prepared by the office of the Registrar General of India and circulated to key Ministries and the Prime Minister's Office called for the conduct of Census 2021 at a cost of ₹9, 275 crores and not the NPR.
  • The draft Expenditure Finance Committee (EFC) not was then revised and a financial provision of ₹4, 442.15 crores for updating the NPR was added on the directions of the MHA "subsequently".
  • The proposal was cleared on August 16, 2019, and it received the  Union Cabinet's nod on December 24, 2019.
  • It was decided that the enumerator engaged for Census would also collect details for NPR.
  • The Covid-19 pandemic struck in March 2020 and since then both exercises are on hold.
  • Now, the NPR has been made compulsory if citizens want to exercise the right to fill out the Census form on their own.
  • The deleted Handbook said that it is "mandatory for every usual resident of India to register in the NPR".
  • Census is also mandatory and giving false information is a punishable offence.
For Prelims: NPR, CAA, Census, Covid-19, Expenditure Finance Committee, Registrar General of India, Registration of Births and Deaths Act, of 1969, The Treatise on Indian Censuses Since 1981, Assam, 
For Mains:
1. How can citizens file Census details online? Explain the norms being laid down and discuss the reasons for National Population Register being made compulsory for those who want to fill out the form digitally. (250 Words)
 
 
Previous Year Questions
 
Prelims:
 
1. Consider the following statements: (UPSC 2009)
1. Between Census 1951 and Census 2001, the density of the population of India has increased more than three times.
2. Between Census 1951 and Census 2001, the annual growth rate (exponential) of the population of India has doubled.
Which of the statements given above is/are correct?
(a) 1 only          (b) 2 only                 (c) Both 1 and 2                 (d) Neither 1 nor 2
 
Answer: D
 
2. In the context of vaccines manufactured to prevent COVID-19 pandemic, consider the following statements: (UPSC 2022)
1. The Serum Institute of India produced COVID-19 vaccine named Covishield using mRNA platform.
2. Sputnik V vaccine is manufactured using vector based platform.
3. COVAXIN is an inactivated pathogen based vaccine.
Which of the statements given above are correct?
A. 1 and 2 only            B. 2 and 3 only                   C. 1 and 3 only              D. 1, 2 and 3
 
Answer: B
 
3. Sinovac given for Covid-19 is a  (UPPSC Combined State Exam 2022)
A. Protein sub-unit
B. Non-replicating viral vector
C. Whole virus vaccine
D. mRNA vaccine
 
Answer: C
 
4. Along with the Budget, the Finance Minister also places other documents before the Parliament which Include "The Macro Economic Framework Statement". The aforesaid document is presented because this is mandated by (UPSC 2020) 
A. Long-standing parliamentary convention
B. Article 112 and Article 110 (1) of the Constitution of India
C. Article 113 of the Constitution of India
D. Provisions of the Fiscal Responsibility and Budget Management Act, 2003
Answer: D
 
5. Who is the Census Commissioner of India in 2021? (ICAR Technician 2022)
A. Dr Vivek Joshi
B. Dr C Chandramouli
C. Shri Sailesh
D. DK Sikri
 
Answer: A
 
6. The Registration of Birth and Death Act came into force in the year _____. (UPSSSC Junior Assistant 2020) 
A. 1964      B. 1969    C.  1972        D.1981
 
Answer: B
 
7. Consider the following States: (UPSC 2022)
1. Andhra Pradesh
2. Kerala
3. Himachal Pradesh
4. Tripura
How many of the above are generally known as tea-producing States?
A. Only one State
B. Only two States
C. Only three States
D. All four States
 
Answer: C
 
8. Consider the following rivers (UPSC 2014) 
1. Barak
2. Lohit
3. Subansiri
Which of the above flows/flow through Arunachal Pradesh? 
A. 1 only    B.2 and 3 only     C. 1 and 3 only      D. 1, 2 and 3
Answer: B
 
Mains:
1. Two parallel run schemes of the Government, viz the Adhaar Card and NPR, one as voluntary and the other as compulsory, have led to debates at national levels and also litigations. On merits, discuss whether or not both schemes need run concurrently. Analyse the potential of the schemes to achieve developmental benefits and equitable growth. (UPSC 2014)
 
Source: The Hindu
 
 

INDIA'S LABOUR MARKET

 
 
 
1. Context
 
Every year, about 7-10 million young Indians enter the labour market. They are better educated than any generation before them — the average years of formal schooling for those aged 15 and above has reached 10 years nationally — and with hopes and expectations to match.The recently released Periodic Labour Force Survey (PLFS) 2025 report offers some key insights.
 
 
2. Recent trends in Employment
 
 
  • India’s labour market indicators remain strong, with the Labour Force Participation Rate recorded at 59%, the Workforce Participation Rate at 57%, and unemployment at only 3%.
  • Youth unemployment has shown a downward trend since 2024 in both rural and urban regions. In addition, successive Monthly PLFS reports during 2025 highlight a steady rise in women’s workforce participation.
  • Rural female LFPR continued to improve through September 2025, reaching the highest level observed since May, indicating a consistent positive trend across multiple survey cycles.
  • Employment quality has likewise improved over time. The proportion of workers engaged in regular salaried jobs increased from 22% to 24%, benefiting both men and women. At the same time, the share of self-employed workers declined from 58% to 56%.
  • Since salaried employment generally offers greater income stability and social security benefits, this transition represents one of the most significant developments reflected in the 2025 labour data.
  • Income patterns further support these improvements, especially for women workers. Earnings among women in regular salaried jobs rose by 7%, slightly higher than the 6% increase recorded for men.
  • In self-employment, women’s earnings increased by 9% compared to 8% for men. Similarly, women engaged in casual labour witnessed a 5% rise in wages, whereas male wages in this category remained largely stagnant.
  • Despite these gains, gender disparities in earnings continue to persist. Available data suggests that women receive nearly 76% of male earnings in salaried occupations, about 69% in casual work, and only 36% in self-employment.
  • Although significant gaps remain, the growing movement toward salaried employment is gradually generating more meaningful economic benefits for women.
  • Economic transformation is also reshaping employment patterns. Agriculture now accounts for 43% of total employment, while manufacturing and services contribute roughly 12% and 13%, respectively.
  • Increasing numbers of young workers, especially women, are joining manufacturing and service industries.
  • Moreover, occupational segregation based on caste and gender is less pronounced among younger generations than older ones, reflecting the long-term impact of improved educational access and greater social mobility, which are now contributing to more inclusive labour market outcomes
 
 
3. Gaps in Skills and Job Creation
 
 
  • A major concern continues to be the transition from education to employment. India has greatly increased access to higher education, enabling students from a wider range of economic backgrounds to pursue tertiary studies.
  • However, important gaps still persist. Between 2004 and 2023, nearly 5 million graduates entered the labour market every year, yet only around 2.8 million were able to obtain employment of any form.
  • Insufficient access to structured skill development remains another obstacle. Merely 4% of people in the 15–59 age group have undergone formal vocational or technical training.
  • At the same time, labour force participation among trained individuals is considerably higher — about 83% for men and 51% for women — highlighting the strong connection between skill acquisition and employment opportunities. This demonstrates the need to expand and strengthen skill-training initiatives on a much larger scale.
  • Ensuring long-term participation of women in the workforce is another critical issue. While men outside the labour force mostly identified education as the reason for non-participation, women largely pointed to childcare and domestic responsibilities.
  • This reflects deeper structural inequalities arising from the unequal burden of unpaid household work.
  • For example, self-employed urban men work nearly 17.5 hours more per week than women, while among regular salaried employees the gap stands at roughly 7.9 hours weekly, illustrating the disproportionate dual burden of paid and unpaid labour carried by women.
  • A further concern relates to the NEET population — youth who are neither in education, employment, nor training. Approximately one-fourth of individuals aged 15–29 belong to this category.
  • Since they are excluded from official unemployment statistics, the scale of the issue often remains understated. If not addressed promptly, prolonged disengagement may push many young people into long-term detachment from the labour market
 
 
4. What is the Periodic Labour Force Survey (PLFS)?
 
  • The Periodic Labour Force Survey (PLFS) is India’s main survey for understanding the condition of employment and unemployment in the country. It is conducted by the National Statistical Office under the Ministry of Statistics and Programme Implementation.
  • The survey was introduced in 2017 to provide regular and reliable information about the labour market, replacing the earlier employment surveys conducted by the National Sample Survey Office.
  • The need for PLFS arose because India’s economy and labour market were changing rapidly, but employment data was not available frequently enough.
  • Policymakers required updated information to understand how many people were working, how many were unemployed, and how labour patterns were changing across rural and urban areas.
  • To address this gap, PLFS was designed to provide both annual and quarterly estimates on employment-related indicators.
  • The survey studies the participation of people in economic activities. It measures how many individuals are employed, how many are actively searching for work, and how many remain outside the labour force.
  • Through this, it calculates important indicators such as the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR). These indicators help in assessing the overall health of the economy and the availability of jobs.
  • PLFS also provides detailed insights into the nature of employment in India. It classifies workers into categories such as self-employed persons, regular salaried employees, and casual labourers.
  • This distinction is important because different forms of employment offer different levels of income security, social protection, and job stability. For example, regular salaried employment is generally considered more secure than casual labour.
  • Another important feature of PLFS is that it captures differences across gender, age groups, education levels, and regions.
  • It highlights issues such as women’s participation in the workforce, youth unemployment, rural–urban disparities, and shifts in employment from agriculture to manufacturing and services. Because of this, the survey has become an essential tool for analysing structural changes in the Indian economy.
  • The survey uses different approaches to measure employment status. The “Usual Status” method examines a person’s employment situation over a longer reference period, while the “Current Weekly Status” method looks at whether a person worked for at least one hour during the previous seven days. These methods help provide a broader and more accurate picture of employment conditions.
  • Today, PLFS serves as the most important official source of labour market data in India. Governments, economists, researchers, and policymakers rely on it to formulate employment policies, assess economic performance, design welfare programmes, and evaluate the impact of reforms on workers and livelihoods
Female Labour Force Participation (FLFP)
 
 

Female Labour Force Participation (FLFP) refers to the proportion of women in the working-age population who are either employed or actively seeking employment. In simple terms, it measures how many women are participating in economic activities within a country.

It is usually expressed through the Female Labour Force Participation Rate (FLFPR), which indicates the percentage of women who are part of the labour force compared to the total female population within a specified age group. Women who are working in jobs, self-employment, farming, business activities, or even looking for work are included in the labour force. However, women who are neither working nor searching for employment are considered outside the labour force.

Female labour force participation is considered an important indicator of economic development, gender equality, and social progress. A higher participation rate generally reflects better access to education, employment opportunities, skill development, mobility, and financial independence for women. It also contributes to higher household incomes, poverty reduction, and overall economic growth.

In India, female labour force participation has traditionally remained lower than that of men due to several social, cultural, and economic factors. Many women are engaged in unpaid domestic work such as childcare, cooking, and household responsibilities, which are not counted as economic activities in official surveys. Other factors such as lack of safe transportation, limited access to formal jobs, wage inequality, social norms, and interruptions caused by marriage or motherhood also affect women’s participation in the workforce.

 
5. Way Forward
 
 
The PLFS 2025 findings indicate that India’s labour market is showing signs of positive progress. Nevertheless, converting these improvements into sustained, productivity-driven economic growth will require focused policy measures. This includes expanding industry-oriented skill development programmes, promoting women’s participation in the workforce through gender-sensitive policies, and creating stronger access to secure employment supported by broader social protection systems and greater emphasis on green industries. In addition, specialised initiatives such as apprenticeship programmes will play an important role in bringing NEET youth back into productive economic activity
 
 
 
For Prelims: Periodic Labour Force Survey, National Sample Survey Office, labour force participation rate, worker population ratio
For Mains:
1. Examine the changing nature of employment in India, as reflected in the increasing share of self-employment and the declining proportion of regular salaried jobs. Discuss the implications of this shift for the quality and sustainability of employment. (250 Words)

 

Previous Year Questions

1. Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R). (UPPSC 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 improved family income and an increase in education.
Select the correct answer from the 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
 
 
2. Which of the following statements about the employment situation in India according to the 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
 
 
3. 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

 

4.  Assertion (A): Workers - population ratio in India is low in contrast to that in developed countries.

Reason (R): Rapid growth of population, low female worker population rate and omission of unpaid family workers lead to low worker-population ratio.

Choose the correct answer: (Telangana Police SI Mains 2018)

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

Answers: 1-C, 2-B, 3-C, 4-D

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

 


Share to Social