OCT 08 – UPSC Current Affairs – PM IAS

1.Universal Basic Income (UBI)

1. Syllabus Relevance

General Studies Paper II: Government Policies and Interventions for Development in various sectors; Issues relating to poverty and hunger.

General Studies Paper III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Inclusive Growth and issues arising from it.

2. Context

Universal Basic Income (UBI) is a concept of a periodic cash payment unconditionally delivered to all citizens, regardless of their income, resources, or employment status. The idea gained significant official traction in India when the Economic Survey 2016-17 proposed it as a potential alternative to the complex web of existing subsidies and welfare schemes. In the backdrop of high poverty, persistent inequality, exclusion errors in welfare delivery, and the impending threat of automation-led job losses, UBI is positioned as a powerful, anti-poverty, and anti-vulnerability measure designed to ensure a basic minimum standard of living and dignity for all citizens. The debate centers on its economic feasibility, ethical implications, and potential for replacing or complementing the existing Public Distribution System (PDS) and other subsidies.

3. Main Body: Multidimensional Approach

A. Economic Dimension

• Poverty Reduction & Income Security: UBI can provide a robust safety net, guaranteeing a basic income floor that eliminates deep destitution and reduces overall poverty. Pilot studies, like the one conducted in Madhya Pradesh, showed improvements in health, education, and economic activity.
• Efficiency of Transfers: UBI, delivered via Direct Benefit Transfer (DBT) through the JAM trinity (Jan-Dhan, Aadhaar, Mobile), promises to drastically cut down on administrative costs and “leakages” (corruption/diversion) inherent in in-kind transfers like PDS. It tackles both exclusion errors (poor people who are left out) and inclusion errors (non-poor people who benefit).
• Fiscal Space and Affordability: The most critical challenge. A truly “universal” and “basic” income for all citizens, even if set near the poverty line, requires enormous fiscal resources, potentially exceeding 5% of India’s GDP. Financing would likely necessitate the complete dismantling of many existing subsidies (both “merit” and “non-merit”), which is politically and socially challenging.

B. Social and Ethical Dimension

• Agency and Dignity: UBI respects the agency of the poor by transferring cash, allowing them to decide how to spend their money according to their specific needs, unlike paternalistic in-kind schemes. It acknowledges a basic right to existence simply by virtue of citizenship.
• Gender Empowerment: Providing cash transfers directly to individual women can increase their bargaining power within the household, reduce economic dependence on partners (a critical factor in domestic violence), and facilitate investment in health and education for the family.
• Work Incentive: Critics argue that an unconditional income may create a disincentive to work, particularly in low-wage, manual labour sectors. However, proponents counter that a minimal UBI is unlikely to deter work altogether but may empower workers to demand better wages and working conditions, reducing exploitation.

C. Political and Implementation Dimension

• Political Will and Consensus: Implementing UBI requires a massive political consensus to roll back existing, politically entrenched welfare schemes and subsidies. Resistance from beneficiaries of current schemes, state governments, and interest groups is a major hurdle.
• Inflationary Risk: Injecting a large volume of cash into the economy without a corresponding increase in the supply of goods and services, particularly in essential commodities, could trigger demand-pull inflation, potentially eroding the real value of the basic income itself.
• Delivery Infrastructure: While the JAM trinity is a foundation, issues like last-mile connectivity, digital literacy, banking access in remote areas, and authentication failures (Aadhaar issues) still pose significant implementation challenges, risking exclusion for the most vulnerable.

4. Positives and Negatives

Aspect	Positives (Arguments For UBI)	Negatives (Arguments Against UBI)
Poverty	Guaranteed income floor, significant reduction in absolute poverty and vulnerability.	Can be fiscally unsustainable, leading to cuts in essential public services (health, education).
Efficiency	Eliminates leakage, reduces administrative costs, and ends exclusion/inclusion errors of complex PDS.	Risk of inflationary pressure, eroding the purchasing power of the poor.
Empowerment	Promotes dignity and agency; cash empowers women to make financial decisions.	Potential misuse of funds (addiction, non-merit goods); disincentive for formal labour market participation.
Schemes	Potential to rationalize and simplify the tangled web of over 950 central sector and centrally sponsored sub-schemes.	Political difficulty in replacing popular, visible schemes; risk of UBI becoming an “add-on” instead of a “replacement.”

Government Schemes (Related to Cash Transfers/Social Security):

UBI is distinct from, but related to, existing cash transfer schemes:

• Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): A targeted income support scheme for farmer families, providing a fixed annual cash benefit. This is a partial basic income (targeted, not universal).
• Direct Benefit Transfer (DBT): The mechanism that enables UBI delivery. It is currently used for schemes like LPG subsidy (PAHAL), food subsidy, and MNREGA wage payments.
• Existing Social Security Pensions: Targeted pensions for the elderly, widows, and persons with disabilities, which UBI is sometimes proposed to subsume.

5. Way Forward

A sudden, full, and universal implementation of UBI is neither politically feasible nor fiscally prudent for India. The most sensible way forward is a phased and calibrated approach:

1. Start with Quasi-Universality: Begin by offering UBI to a universally defined vulnerable group (e.g., all women, all rural adults, or all individuals below a set income proxy like using the voluntary opt-out system for the richest quartile). This manages fiscal costs while retaining the unconditional principle.
2. Phase-wise Replacement of Subsidies: Identify the most inefficient and non-merit subsidies (like explicit/implicit fuel, fertilizer, and electricity subsidies) and gradually convert the savings into UBI funding. Avoid replacing critical merit goods (like public health and education) which are crucial for human capital formation.
3. Strengthen Delivery Infrastructure: Prioritize 100% financial inclusion, digital literacy, and robust grievance redressal mechanisms to ensure seamless and transparent delivery of UBI, especially in rural and tribal areas.
4. UBI Plus: UBI must be seen as a floor and not a replacement for core public services. It should be complemented by continued, high-quality public investment in health, education, and infrastructure.

6. Conclusion

The Universal Basic Income is a radical yet compelling idea that appeals to the core values of liberty, dignity, and equality. As India grapples with the challenges of endemic poverty, structural inequality, and the future of work in an era of technological change, UBI offers a simple, powerful solution for building an equitable society. However, its success hinges on political courage, fiscal realism, and meticulous implementation. A cautious, incremental approach—starting with quasi-universality and a selective subsidy rationalization—is the most pragmatic path to unlocking UBI’s potential as a transformative social safety net, ensuring a dignified existence for every Indian citizen.

7. Mains Practice Question

Question: Critically analyze the arguments for and against the introduction of a Universal Basic Income (UBI) in India. Suggest a viable, phased strategy for its implementation, highlighting the trade-offs between fiscal sustainability and social justice. (250 words)

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2. Haryana and J&K Assembly Election Results

Syllabus

UPSC General Studies Papers:

• GS Paper I: Regionalism, impact of post-independence consolidation and reorganisation within the country.
• GS Paper II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein. Salient features of the Representation of People’s Act. Separation of powers.
• GS Paper III: None directly, but may touch upon economic fallout of policy-driven electoral politics (e.g., farm sector).

Context

The results, declared on October 8, 2024, marked two distinct political narratives. In Haryana, the incumbent Bharatiya Janata Party (BJP) won a third consecutive term with 48 seats in the 90-member assembly, defying strong anti-incumbency and most exit polls which had favored the Indian National Congress (INC), which secured 37 seats. The BJP achieved this despite a very close popular vote share (approx. 40.00% for BJP vs. 39.09% for INC). In Jammu and Kashmir (J&K), the first assembly election since the revocation of Article 370 in 2019, the National Conference (NC) emerged as the single largest party with 42 seats, forming a coalition government with the INC (6 seats), bringing civilian rule back after years of Governor’s/President’s Rule.

Main Body in Multidimensional Approach

Political/Electoral Dynamics:

• Haryana: Strategy vs. Anti-Incumbency: The BJP’s success hinged on its cohesive leadership (under Nayab Singh Saini, who replaced ML Khattar shortly before polls) and a successful consolidation of the Non-Jat vote (OBCs, Punjabis, Brahmins), effectively countering the INC’s reliance on the dominant Jat community vote.The split in the anti-BJP vote, particularly with the Jannayak Janta Party (JJP) and Indian National Lok Dal (INLD) cutting into the Congress’s potential seats, proved decisive in several low-margin constituencies. The result confirmed the BJP’s organizational strength and the successful translation of its national narrative into local support, a “hat-trick” victory.
• J&K: Return to Representative Government: The election signaled a major step in restoring representative democracy. The high voter turnout, especially in the Kashmir Valley, was a critical outcome, validating the democratic process despite the contentious 2019 constitutional changes. The NC’s victory reflected a powerful regional consolidation, driven largely by local identity politics and the narrative around the restoration of statehood. The BJP’s strong performance in the Jammu region, securing 29 seats, highlighted the continued regional polarization of the union territory’s politics.

Constitutional/Federal Implications:

• J&K Statehood and Article 370: The new J&K government, led by Omar Abdullah, immediately passed a resolution advocating for the restoration of statehood, a key constitutional demand that was an unfulfilled promise of the Union Government.This sets up a friction point with the Centre, which has told the Supreme Court it is “in consultation” with the new elected government on the issue.⁹ This dynamic underscores the continued evolution of India’s federal structure post-2019 and the relationship between the Centre and the newly-elected regional government.
• Electoral Integrity Debate: The Haryana results were accompanied by allegations of electoral irregularities, specifically concerns raised by the INC and civil society groups regarding the Election Commission of India (ECI)’s delayed and inconsistent release of absolute voter turnout data. This incident reignited the wider debate on electoral transparency, the role of the ECI, and the integrity of the voting process, which is a core pillar of India’s democracy.

Socio-Economic Factors:

• Haryana’s Rural/Urban Cleavage: Issues like the farm protests, the Agnipath scheme, and high unemployment deeply impacted the rural vote, where the Congress was expected to perform strongly. Conversely, the BJP performed better in urban centers and among its consolidated Non-Jat base.¹⁰ This highlights how key national and local policy issues directly influence voter behavior based on community and geographical lines.
• J&K’s Development Mandate: While identity politics dominated, the election was also a referendum on the promises of development and employment made post-Article 370 abrogation. The NC-Congress alliance must now deliver on governance, economic revitalization, and tackling high unemployment to sustain the trust reposed by the high turnout.

Positive and Negatives, Government Schemes

Aspect	Positive Outcomes (Haryana & J&K)	Negatives/Challenges (Haryana & J&K)
Political	Haryana: Historic hat-trick for BJP, showcasing resilience to anti-incumbency; stable government formation. J&K: Successful return of the democratic process after 5 years, high voter turnout validates faith in elections.	Haryana: Extremely narrow vote-share margin, raising questions about the mandate’s strength; continued deep caste/community polarization. J&K: Regional political polarization; immediate demand for statehood creates tension with the Centre.
Governance	Haryana: Continuity allows for long-term policy implementation (e.g., infrastructure projects). J&K: Elected government replaces bureaucracy (LG’s rule), improving local accountability.	Haryana: Persistent issues of unemployment, farmer distress, and urban apathy (low urban turnout) need urgent policy action. J&K: Security concerns (cross-border terrorism) remain a constraint on full autonomy and normalisation.
Electoral Integrity	ECI’s smooth conduct of complex polls.	Allegations of data discrepancies (Haryana) erode public trust in the ECI’s transparency.

Relevant Government Schemes:

• J&K: Himayat Scheme (skill development and employment for youth), Pradhan Mantri Development Package (PMDP) for J&K (focused on infrastructure and power), J&K Industrial Development Scheme (to attract investment).
• Haryana: Mukhya Mantri Parivar Samman Nidhi (social security), focus on implementing national schemes like Ayushman Bharat and PM-KISAN.

Way Forward

1. For J&K (Elected Government): The NC-Congress alliance must prioritize delivering a resolution on the restoration of statehood while simultaneously focusing on a pro-poor, pro-youth economic agenda. An inclusive governance approach that bridges the political and developmental divide between the Kashmir Valley and Jammu is crucial for long-term stability.
2. For Haryana (BJP Government): The new government must immediately address the root causes of the anti-incumbency sentiment: agricultural distress, high unemployment, and local governance issues. A reform in government communication and data transparency, particularly from the ECI, is vital to rebuild public faith in the electoral process post-controversy.
3. For ECI/Central Government: A uniform and fully transparent protocol for real-time release of voter turnout and absolute vote counts, as practiced in other large-scale elections, must be institutionalized to address the valid concerns raised by the Opposition regarding the integrity of the democratic process.

Conclusion

The 2024 assembly results from Haryana and J&K delivered mixed political signals. Haryana’s outcome confirmed the BJP’s organizational mastery in winning a hat-trick despite a strong headwind, reinforcing the trend of the party’s dominance in state politics.Conversely, the J&K election successfully re-established democratic rule and provided the first popular mandate since the constitutional changes of 2019, albeit immediately leading to a fresh constitutional demand for statehood. Both results underscore the growing political awareness of voters, the importance of non-dominant community consolidation in elections, and the ongoing tension between regional aspirations and the central government’s security and policy priorities.

Mains Practice Question

Question: Critically analyze the electoral mandates in the 2024 Haryana and Jammu & Kashmir Assembly elections, highlighting the role of regional identity politics, the challenge of anti-incumbency, and the implications of the results for India’s federal structure. (250 words)

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3.India-Maldives $750-million Currency Swap (International Relations & Economy)

Syllabus

• GS Paper 2: International Relations: India and its neighbourhood relations, Bilateral, regional and global groupings and agreements involving India.
• GS Paper 3: Indian Economy: Monetary policy, External Sector (Balance of Payments, Currency Exchange Rates).

Context

The Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) entered into a Currency Swap Agreement under the SAARC Currency Swap Framework 2024-27.1 This arrangement, reportedly valued at approximately $757 million (including a $400 million and ₹3,000 crore component announced separately), is a significant development intended to help the Maldives overcome its immediate foreign exchange (forex) reserve crisis and meet short-term balance of payments needs. T2he agreement highlights India’s commitment to its ‘Neighbourhood First’ policy and the Security And Growth for All in the Region (SAGAR) vision.3

Main Body in Multidimensional Approach

1. Economic Dimension (Maldives’ Perspective): The swap provides a crucial financial backstop for the Maldives, whose foreign reserves are estimated to be sufficient for only about one-and-a-half months of imports.⁴ Facing a looming debt crisis, with external obligations set to rise significantly in the coming years, the currency swap provides immediate liquidity, preventing a potential sovereign debt default and restoring international confidence in its economy. It serves as a bridge financing mechanism until longer-term financial arrangements can be secured.
2. Geopolitical and Strategic Dimension (India’s Perspective): The assistance reaffirms India as the “first responder” and a reliable partner in the Indian Ocean Region (IOR). The action counters influence from other major global powers and reinforces the goodwill necessary for India to maintain its strategic maritime security interests in the region. It is a soft-power tool under the ‘Neighbourhood First’ policy, aimed at deepening bilateral trust despite recent political turbulence in India-Maldives relations. The agreement is a tangible manifestation of the SAGAR vision, promoting stability and prosperity in the IOR.
3. Financial and Multilateral Dimension (SAARC Framework): The swap is executed under the SAARC Currency Swap Framework, demonstrating India’s role as the anchor for regional financial stability. By utilizing this multilateral framework, India provides assistance in a structured, non-intrusive manner, promoting regional cooperation. The mechanism allows for the exchange of domestic currencies for a pre-agreed period, managing short-term forex liquidity needs.

Positives and Negatives, Government Schemes

Aspect	Positives	Negatives/Challenges	Government Schemes/Initiatives
Economic	Provides forex liquidity to Maldives; reduces immediate debt default risk. Stabilises regional financial markets. Promotes bilateral trade in local currencies (future scope with RuPay/UPI integration).	Maldives’ Debt Burden: The swap is a temporary fix; underlying debt sustainability issues remain (debt-to-GDP over 100%). India’s Forex Risk: A small risk is assumed on India’s part, although RBI manages this through the SAARC framework.	SAARC Currency Swap Framework: Provides a multilateral umbrella for the swap. UPI/RuPay Integration: Facilitates digital payments and tourism, reducing reliance on the US dollar.
Strategic/Political	Reaffirms ‘Neighbourhood First’ and SAGAR vision. Strengthens India’s soft power and security footprint in the IOR. Addresses Maldivian concerns regarding Indian dominance.	Political Frictions: Bilateral ties have been strained; a change in Maldivian administration’s policy focus could dilute the long-term strategic benefit for India. External Influence: Continued vulnerability of Maldives to external debt traps and strategic alignment shifts.	Neighbourhood First Policy: Focus on proactive engagement and assistance to neighbours. SAGAR Vision: Emphasises regional maritime security and economic cooperation.

Way Forward

1. Debt Restructuring Dialogue: India should use this financial opening to facilitate a broader dialogue with Maldives on long-term debt sustainability, potentially involving other multilateral institutions.
2. Deepening Economic Ties: Accelerate the introduction of Indian digital payment systems like UPI in the Maldives to promote tourism and trade in local currencies, reducing dependence on US dollars and deepening economic integration.¹¹
3. Strategic Dialogue: Institutionalise high-level strategic and security dialogue to ensure the currency swap translates into enduring geopolitical alignment and cooperation on maritime security and counter-terrorism.
4. Capacity Building: Expand India’s technical and capacity-building assistance to the Maldivian financial sector to improve fiscal management and debt monitoring.

Conclusion

The India-Maldives currency swap is a timely and strategically significant move, extending a vital financial lifeline to a key maritime neighbour. While it addresses the immediate forex liquidity crisis and reinforces India’s ‘Neighbourhood First’ credentials, the long-term success of this initiative depends on the Maldives’ ability to implement sustainable fiscal reforms and the persistence of positive political will between the two nations to deepen their Comprehensive Economic and Maritime Security Partnership.

Mains Practice Question

The India-Maldives Currency Swap is a financial arrangement with significant geopolitical undertones. Analyse the economic necessity for the Maldives and the strategic implications for India, particularly in the context of its ‘Neighbourhood First’ policy and regional influence. (250 words)

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4.Senior Doctors Resign in Kolkata Hospital Protest (Social Issues & Health Infrastructure)

Syllabus

• GS Paper 1: Social Issues: Social empowerment, role of women.
• GS Paper 2: Social Justice: Issues relating to development and management of Social Sector/Services relating to Health.

Context

The mass resignation of senior doctors and faculty members at various medical colleges and hospitals in West Bengal, particularly in Kolkata, was a symbolic act of protest. It was initiated in solidarity with junior doctors who were demonstrating (including through hunger strikes) following the alleged rape and murder of a female postgraduate trainee doctor at a prominent Kolkata medical college. The core demands of the protest were for justice for the victim and, critically, for enhanced security measures and improved working conditions for medical professionals, especially women doctors, underscoring deep-seated issues in India’s health infrastructure and social safety.

Main Body in Multidimensional Approach

1. Social Issue & Gender Security: The incident and the subsequent protest brought to the forefront the critical issue of women’s safety in professional environments, particularly within the often high-stress and sometimes isolated settings of public hospitals. Doctors, who are essential service providers, are increasingly facing threats of violence, and the protest amplified the call for hospitals to be designated as “safe zones.” The outrage reflects a broader societal demand for accountability and protection for women in the workplace.
2. Health Infrastructure & Governance: The protest indirectly exposed the systemic failures in hospital administration and health infrastructure. Lack of adequate security personnel, poor surveillance, and a general environment of impunity contribute to violence against doctors. The mass resignation, even if symbolic to avoid patient suffering, was intended to pressure the state government, highlighting a breakdown in communication and a lack of timely response from authorities to address the genuine concerns of the medical fraternity regarding their safety and working environment.
3. Medical Ethics and Professionalism: The senior doctors’ action of ‘symbolic resignation’ while remaining on duty showcased a careful balancing act between professional ethics (duty to patients) and their social conscience/demand for justice. This form of protest, though disruptive, underscores the gravity of the situation and seeks to maximise pressure on the government without compromising patient care, particularly during a festival season like Durga Puja. It raises questions about the acceptable limits and forms of dissent within essential services.

Positives and Negatives, Government Schemes

Aspect	Positives	Negatives/Challenges	Government Schemes/Initiatives
Social & Ethical	Raised national awareness about violence against doctors and women’s safety in hospitals. Demonstrated solidarity within the medical community. Prioritised patient care over complete work stoppage.	Disruption Risk: Potential for hampering emergency or essential health services, despite the ‘symbolic’ nature. Moral Injury: High levels of stress, fear, and moral injury among medical professionals, leading to burnout and talent drain.	National Medical Commission (NMC): Regulatory body for medical education and practice. Clinical Establishments (Registration and Regulation) Act: Aims to regulate and set standards for clinical establishments.
Health & Security	Strong push for mandatory security protocols (CCTV, dedicated security staff, access control) in public hospitals. Demand for a special central law to prevent violence against doctors.	Funding Gap: Insufficient budgetary allocation for security infrastructure and personnel in public hospitals. Legal Lacuna: Lack of a stringent, uniformly implemented central law specifically protecting doctors and health workers across all states.	Ayushman Bharat Digital Mission (ABDM): Focuses on digital health, but indirect. Need for specific scheme for hospital security upgrade.

Way Forward

1. Special Legislation: The Union Government must expedite the introduction and passage of a comprehensive central law against violence on healthcare professionals and establishments, with stringent penalties.
2. Infrastructure Audit: Immediate, dedicated audits of security infrastructure (CCTV, fencing, lighting, access control) in all government medical colleges and hospitals, with time-bound funding for upgrades.
3. Grievance Redressal: Establish an independent, high-powered committee involving doctors, administrators, and police to address security and working condition grievances proactively.
4. Sensitisation & Training: Mandatory gender sensitisation and professional conduct training for all hospital staff, security personnel, and police involved in hospital premises.

Conclusion

The Kolkata hospital protest, triggered by a heinous crime, served as a stark reminder of the fragile security environment and infrastructural deficits plaguing India’s public health system.16 The mass resignation was a powerful moral indictment of the government’s perceived apathy. Resolution requires not just justice for the victim but systemic reform: a central law to protect doctors, urgent upgrading of hospital security infrastructure, and a firm commitment from the administration to ensure a safe and supportive working environment for its frontline health workers.

Mains Practice Question

The mass resignation of senior doctors in Kolkata highlighted a complex interplay between social safety, gender issues, and public health infrastructure. Discuss the key systemic failures exposed by the protest and suggest multi-pronged reforms to ensure the safety and security of medical professionals in India. (250 words)

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5.India-UAE Investment Dispute Arbitration Norms Eased (International Trade & Economy)

Syllabus

• GS Paper 2: International Relations: Bilateral, regional and global groupings and agreements involving India.
• GS Paper 3: Indian Economy: Investment models, Mobilization of resources.

Context

India and the UAE operationalised a new Bilateral Investment Treaty (BIT), which came into force in August 2024, replacing the earlier 2013 agreement.17 This new BIT is a part of India’s refined investment treaty policy, aimed at striking a balance between protecting foreign investment and safeguarding the host state’s right to regulate for public policy objectives (regulatory sovereignty). It eases certain aspects of investment dispute arbitration for the host state by narrowing the scope of investor protection, while providing clarity and a more transparent legal framework for investment flows, particularly in key sectors like digital infrastructure and renewable energy.

Main Body in Multidimensional Approach

1. Legal and Regulatory Dimension (Host State Protection): The new BIT introduces several key changes from the previous 2013 BIT and India’s 2016 Model BIT, primarily to protect India’s regulatory space. Crucially, it omits the broad standards of Fair and Equitable Treatment (FET) and Most-Favoured Nation (MFN) clauses, which were often cited by investors in disputes against regulatory changes. It restricts the grounds for a claim to only a denial of justice, fundamental due process breaches, and manifestly abusive or arbitrary treatment. This shift reduces India’s exposure to multi-million dollar arbitrations over domestic policy changes.
2. Investment and Economic Dimension (Investor Confidence): Despite narrowing the protective standards, the new BIT provides greater clarity and a defined set of protections, which can reassure investors. It explicitly includes protection for portfolio investments and sets clearer standards for direct and indirect expropriation. Furthermore, the requirement of a Local Remedies Requirement (LRR)—that an investor must pursue domestic remedies for three years before initiating international arbitration—is more flexible than the five-year LRR in the 2016 Model BIT. The explicit provision for enforcement of awards in both countries, even with India’s reservations on the New York Convention with the UAE, enhances investor confidence in the finality of dispute resolution.
3. Bilateral Trade and Strategic Dimension: The BIT complements the India-UAE Comprehensive Economic Partnership Agreement (CEPA) by providing a stable and predictable legal environment for investments. The UAE is a key strategic partner and a major source of FDI for India. The new framework aims to stimulate investment in high-priority sectors like renewable energy, healthcare, food processing, and digital infrastructure, aligning with India’s economic goals. By offering a clearer, if narrower, set of protections, the BIT is designed to deepen the overall economic and strategic cooperation between the two nations.

Positives and Negatives, Government Schemes

Aspect	Positives	Negatives/Challenges	Government Schemes/Initiatives
Legal/Regulatory	Regulatory Sovereignty: Retains the host state’s right to regulate without fear of broad FET/MFN claims. Clarity: Clear definitions for expropriation and limited grounds for appeal.	Investor Perception: Omission of FET/MFN might be seen as a reduction in protection by some foreign investors. Local Remedies: Requirement to pursue domestic remedies for three years may cause delays and costs for investors.	2016 Model BIT: The current treaty is a modification of this model. CEPA (Comprehensive Economic Partnership Agreement): Provides the overall trade framework.
Economic	Increased FDI: Expected to boost investment from the UAE, a major capital source. Sector Focus: Aligns investment with India’s growth sectors (e.g., infrastructure, AI). Enforcement Certainty: Explicit provisions for award enforcement.	Limitation on Damages: Exclusion of incidental and consequential damages (including future losses) might limit investor recovery in case of a breach.	National Infrastructure Pipeline (NIP): Targets for investment in infrastructure sectors. National Policy on Electronics: Focuses on attracting FDI in electronics manufacturing.

Way Forward

1. Transparent Implementation: India must ensure that its domestic judicial and administrative systems are robust and transparent, as investors will now rely more heavily on the ‘Local Remedies Requirement’ and the explicit protection against ‘denial of justice.’
2. BIT Network Expansion: Use the India-UAE BIT as a template for negotiating new BITs with other major investment partners, furthering India’s refined approach to investment treaties.
3. Dispute Prevention: Focus on institutionalised mechanisms for investor-state dialogue and early conflict resolution to prevent disputes from escalating to the arbitration stage.

Conclusion

The new India-UAE Bilateral Investment Treaty represents a carefully calibrated recalibration of India’s approach to international investment law, moving away from a broad protectionist standard to one that foregrounds regulatory sovereignty. By providing a clear and enforceable legal framework, while shielding the state from broad claims like FET, it is poised to enhance investor confidence from the UAE and channel more capital into India’s priority sectors. This pragmatic approach is vital for sustaining the positive momentum established by the CEPA and for deepening India’s financial and strategic partnership with the UAE.

Mains Practice Question

The new India-UAE Bilateral Investment Treaty (BIT) omits key protections like the Fair and Equitable Treatment (FET) standard.19 Critically analyse this strategic shift in India’s investment treaty policy and assess how the new BIT balances investor protection with the host state’s right to regulate. (250 words)

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6.Defence Sector Development (Defence/Internal Security & Technology)

Syllabus

• GS Paper 3: Science and Technology: Indigenization of technology and developing new technology.
• GS Paper 3: Internal Security: Linkages of organized crime with terrorism, Border areas security.

Context

India’s defence sector is undergoing a profound transformation driven by the principle of ‘Atmanirbharta’ (self-reliance), aiming to transition from the world’s largest defence importer to a significant global exporter.20 This shift is characterised by a massive increase in the defence budget, opening up the sector to private players, and a concentrated push for indigenization through technology adoption, especially in areas like drones, Artificial Intelligence (AI), and missile systems. The focus is now on building domestic capacity to meet both external and internal security challenges, such as cross-border terrorism and managing complex border disputes.

Main Body in Multidimensional Approach

1. Technology and Indigenization (Defence Preparedness): The development is heavily tilted towards high-technology platforms. Initiatives like the Innovations for Defence Excellence (iDEX) and the Technology Development Fund (TDF) are actively engaging start-ups, MSMEs, and academia to develop cutting-edge indigenous technologies. Success stories include operational indigenous systems like the Tejas fighter jet, BrahMos missile, and Akash air defence system. There is a strong focus on emerging areas like drone warfare (with plans to invest heavily in military drones equipped with edge AI), cyber security, and autonomous systems (Sudarshan Chakra Mission).
2. Economic and Industrial Policy (Self-Reliance): The government has opened the defence industrial base to the private sector with unprecedented fervour. Policy reforms, such as raising FDI limits (up to 74% through the automatic route) and streamlining the procurement process, have fostered an environment conducive to private manufacturing. The private sector’s contribution to total defence production has steadily increased. The goal is two-fold: to create a globally competitive domestic defence ecosystem and to generate employment and high-tech manufacturing growth.
3. Internal Security and Deterrence: The technological advancements are directly impacting internal security. The focus on indigenous, precise, and targeted systems is crucial for counter-terrorism operations and border management The development of advanced surveillance and reconnaissance capabilities, particularly through drones and AI-based systems, is critical for real-time monitoring of sensitive borders and for enhancing the capabilities of forces involved in counter-insurgency. This capability strengthens India’s deterrence posture, making it clear that cross-border threats will be met with full force.

Positives and Negatives, Government Schemes

Aspect	Positives	Negatives/Challenges	Government Schemes/Initiatives
Technology	Reduced import dependence and foreign exchange outflow. Creation of high-tech jobs. Boost to ‘Make in India’ and technology transfer.	Long Procurement Cycles: Slow adoption of indigenized equipment, particularly in the Army. R&D Gaps: Need for sustained, high-level investment in foundational defence research.	Innovations for Defence Excellence (iDEX): Supports start-ups and MSMEs in defence innovation. Technology Development Fund (TDF): Provides grants for advanced technology development.
Economy/Industry	Increased private sector participation and competition. Defence exports are growing, enhancing India’s strategic reach.	Public Sector Dominance: Legacy Public Sector Undertakings (PSUs) still hold a majority share, sometimes hindering private innovation speed. Capital Investment: Private sector requires sustained large-scale orders to justify heavy capital expenditure.	Defence Acquisition Procedure (DAP) 2020: Prioritises ‘Make in India’ and indigenization. FDI Norms Easing: Allows higher foreign investment in the defence sector.

Way Forward

1. Fast-Track Procurement: Drastically cut down the time taken for field trials and procurement of indigenously developed defence equipment, especially for the Army, to accelerate the adoption of new technology.
2. Private Sector Leadership: Transition from public sector-led defence manufacturing to private sector leadership for major platforms and systems, with PSUs focusing more on strategic, sensitive technologies.
3. AI and Cyber R&D: Significantly increase the allocation of the defence R&D budget towards emerging and dual-use technologies like AI, robotics, quantum computing, and dedicated cyber defence systems.³²
4. Skill Development: Invest in specialised skill development programs to create a pool of engineers and technicians capable of maintaining and operating advanced, complex indigenous systems.

Conclusion

India’s defence sector development, anchored in technological indigenization and private participation, marks a strategic pivot towards ‘Atmanirbharta.’ This push is not merely about import substitution but about building a robust, self-sufficient defence-industrial base capable of projecting strategic power and securing the home front against evolving threats.33 While significant challenges remain in streamlining bureaucracy and sustaining R&D funding, the current trajectory is crucial for ensuring India’s strategic autonomy and enhancing its role as a regional security provider.

Mains Practice Question

The Indian defence sector is driven by the policy of ‘Atmanirbharat’. Examine the role of technology and private sector participation in achieving self-reliance in the defence sector and discuss its implications for both external and internal security. (250 words)

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7.Study Links Ultra-Processed Food to Diabetes in India (Health & Social Issues)

Syllabus

• GS Paper 1: Social Issues: Poverty and developmental issues, urbanization, their problems and remedies.
• GS Paper 2: Social Justice: Issues relating to development and management of Social Sector/Services relating to Health.

Context

A growing body of research, including epidemiological studies and meta-analyses, is establishing a strong link between the increasing consumption of Ultra-Processed Foods (UPFs) and a higher risk of developing Type 2 Diabetes (T2D), a major public health crisis in India. UPFs, characterised by high levels of added sugars, unhealthy fats, sodium, and artificial additives, provide little nutritional value and are associated with adverse metabolic effects, including insulin resistance and chronic inflammation. This dietary shift, once concentrated in high-income nations, is now alarmingly prevalent in low- and middle-income countries, including India, where diabetes is rapidly escalating.

Main Body in Multidimensional Approach

1. Health and Nutritional Dimension: The study highlights the direct pathophysiological mechanisms linking UPF consumption to T2D. These foods, which are high in refined carbohydrates and low in fibre, lead to rapid blood sugar spikes, chronic hyperglycemia, and long-term metabolic dysfunction, promoting insulin resistance and weight gain. The lack of essential nutrients and the presence of additives also disrupt the gut microbiome, which is increasingly linked to metabolic disorders. The crisis is compounded by the ‘Asian Indian Phenotype,’ which predisposes this population to diabetes even at lower BMI, making the shift to UPFs particularly dangerous.
2. Social and Economic Dimension: The rise in UPF consumption is a social issue linked to urbanisation, changing lifestyles, and economic factors. UPFs are often marketed as cheap, convenient, and aspirational, making them highly accessible to low-income populations and busy urban workers.⁴⁰ The high cost of whole, nutritious foods compared to energy-dense, inexpensive UPFs creates a poverty-driven dietary pattern. The resulting T2D epidemic disproportionately impacts the poor, creating a cycle where chronic disease leads to high healthcare costs and further impoverishment, thus exacerbating social inequality.
3. Policy and Regulatory Dimension: The public health response has lagged behind the aggressive marketing and widespread availability of UPFs. The need for policy interventions is crucial, focusing on both awareness and regulation. This includes adopting a clear definition of UPFs for regulatory purposes, implementing fiscal measures like taxes on sugary and highly processed foods, and enforcing stricter front-of-pack labelling (FoPL) to inform consumers about high levels of sugar, fat, and salt. Without regulatory action, the public health burden will continue to escalate.

Positives and Negatives, Government Schemes

Aspect	Positives	Negatives/Challenges	Government Schemes/Initiatives
Public Health	Increased scientific evidence for T2D prevention via dietary change. Shift in focus from just ‘calories’ to ‘food processing.’	Addictive Nature: UPFs are engineered to be hyper-palatable and potentially addictive, making dietary change difficult. Disease Burden: Rapidly rising T2D and associated comorbidities (cardiovascular issues, etc.) put immense strain on health infrastructure.	Eat Right India Movement (FSSAI): Focuses on safe, healthy, and sustainable food. Fit India Movement: Promotes physical activity and healthy lifestyle.
Social	Opportunity to address health disparities rooted in diet. Potential for public health campaigns similar to those for tobacco/alcohol.	Accessibility/Affordability: UPFs are a low-cost, convenient food source for many. Cultural Integration: Processed foods are increasingly integrated into social and cultural norms.	National Programme for Prevention and Control of Cancer, Diabetes, Cardiovascular Diseases and Stroke (NPCDCS): Aims at prevention and early detection of Non-Communicable Diseases (NCDs).

Way Forward

1. Fiscal Intervention: Implement a ‘sin tax’ on highly processed foods and Sugar-Sweetened Beverages (SSBs) to make them less affordable, with the revenue earmarked for health subsidies.
2. Mandatory Labelling: Introduce and strictly enforce mandatory, easily understandable, front-of-pack labelling (FoPL) indicating high sugar, salt, and fat content to enable informed consumer choice.
3. Public Health Campaigns: Launch large-scale, culturally relevant public awareness campaigns that explicitly detail the harm of UPFs and promote affordable, minimally processed alternatives.
4. School Nutrition Policy: Implement stringent bans on the sale and marketing of UPFs in and around school premises, similar to legislative measures being adopted elsewhere, to protect children’s long-term health.

Conclusion

The link between ultra-processed food consumption and the diabetes epidemic in India represents a major public health emergency that demands a comprehensive, multi-sectoral response.41 While individuals must be educated on healthier choices, the primary responsibility lies with the government to enact decisive regulatory and fiscal policies to curb the aggressive promotion and widespread availability of UPFs. Successfully mitigating this crisis requires a policy paradigm shift from a purely curative approach to a robust, preventive strategy centred on food environment reform.

Mains Practice Question

The increasing consumption of Ultra-Processed Foods (UPFs) in India is significantly contributing to the T2D epidemic.42 Examine the socio-economic factors driving this dietary transition and suggest comprehensive public health interventions, including policy and regulatory measures, to mitigate the crisis. (250 words)

The video Mass Resignation at RG KAR Medical College Amidst Doctors’ Hunger Strike provides visual context to the ongoing protests and mass resignations by doctors in Kolkata demanding justice and better security measures in hospitals, which is relevant to the social issues and health infrastructure topic.