1. Speed Bumps Ahead: Balancing GDP Optimism with Structural Weaknesses
Syllabus
- GS-3: Indian Economy: Issues relating to planning, mobilization of resources, growth, development and employment.
Context
The editorial on December 3, 2025, focused on the mixed signals emerging from India’s economic data, particularly the dichotomy between a strong Quarter 2 GDP growth (initially reported at 8.2%) and lagging high-frequency indicators like the Index of Industrial Production (IIP). The analysis cautioned policymakers that optimism based purely on the headline GDP number is insufficient and that deeper structural vulnerabilities must be addressed to ensure sustainable, high-quality growth.
Main Body in Multi-Dimensional Analysis
The GDP-IIP Disconnect
- GDP Strength: The reported GDP growth was primarily driven by the ‘Financial, Real Estate, and Professional Services’ sector and a perceived uptick in capital expenditure, particularly by the government. This suggests the growth impulse is currently being fuelled more by state spending and the formal finance sector than widespread industrial activity.
- IIP Weakness: In stark contrast, the IIP data reflected significant deceleration. Manufacturing PMI had dropped to a nine-month low of 56.6 in November. More concerning was the contraction in consumer durables and non-durables, indicating that Private Final Consumption Expenditure (PFCE), the bedrock of India’s growth story, remains sluggish. A contraction in these categories for two consecutive years suggests deep-seated consumption weakness not fully captured by the GDP’s expenditure-side data.
- Investment Momentum: While GDP showed a 7.3% rise in investment, the IIP’s capital goods segment grew at a sluggish 2.4%, a 14-month low. This suggests that private corporate investment, which is crucial for job creation and long-term capacity building, has yet to gain the required momentum.
Export and Geopolitical Headwinds
- Weakening Exports: The editorial highlighted that new export orders grew at their slowest pace in over a year. This is attributed to global economic slowdown, persistent geopolitical tensions, and rising non-tariff barriers and tariff-related disruptions in key markets. Export-led growth, a key component of the government’s strategy, is facing significant headwinds, as nearly all top merchandise export categories contracted in recent months.
- Sectoral Strain: Sectors like mining and electricity also showed contraction, partly due to temporary factors like extended monsoon rains and lower winter electricity output, but also pointing to fragility in the primary goods and infrastructure segments.
Way Forward
- Targeted Stimulus: Instead of broad-based measures, the government must devise targeted stimulus for the consumer durables and labour-intensive manufacturing sectors (e.g., textiles, gems and jewellery) to boost consumption and employment.
- Strengthening Exports: Aggressive pursuit of Free Trade Agreements (FTAs) and tackling domestic logistical bottlenecks are essential to restore export competitiveness.
- Data Harmonisation: Policymakers must reconcile the discrepancies between the GDP and IIP data, perhaps by reviewing the data collection methodologies, to ensure an accurate picture of the economy’s health.
2. A Growing Shadow Over Digital Constitutionalism: The Sanchar Saathi Mandate
Syllabus
- GS-2: Governance: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
- GS-3: Security: Challenges to internal security through communication networks, role of media and social networking sites in internal security challenges.
Context
The Department of Telecommunications (DoT)’s directive mandating the pre-installation of the Sanchar Saathi application on all new smartphones and enforcing strict SIM binding for messaging apps (preventing multi-device usage) was the focus of the editorial. While the government justified the move as a necessary measure to combat complex cybercrime and financial fraud (especially government-impersonation scams and fake IMEI usage), the editorial framed it as a serious challenge to digital constitutionalism and the principles of privacy, proportionality, and freedom of choice.
Main Body in Multi-Dimensional Analysis
Security vs. Surveillance
- The Government’s Rationale: The DoT argued that SIM-binding is crucial to block accounts that remain active even after the SIM is removed, a common loophole exploited by fraudsters. The Sanchar Saathi app has demonstrated success in tracing 26 lakh lost phones and disconnecting 1.5 crore fake connections.
- The Privacy Concern: The mandatory pre-installation of a government application, particularly one that cybersecurity experts warned could potentially have root-level access or special system permissions, raised fears of state surveillance. The analogy drawn by critics to past controversies involving spyware (like Pegasus) highlights the deep mistrust regarding the state’s use of technology. The fact that an app can be silently updated Over-The-Air (OTA) to change its abilities without explicit user consent is a major threat to digital autonomy.
- Proportionality Principle: Digital rights groups argued that the measures—especially mandatory pre-installation and restricting multi-device usage—are disproportionate to the stated goal. Effective alternatives, such as strengthening digital literacy, improving police capacity to track IMEI numbers, and regulating the supply chain of SIM cards, were overlooked in favour of an intrusive, one-size-fits-all technological mandate.
Legal and Governance Implications
- Erosion of Choice: The claim that users can “delete the app if they want” was dismissed as misleading because a mandatorily preloaded app, by definition, undermines the principle of voluntary adoption and consumer choice. This sets a dangerous precedent for the state to impose software on citizens’ personal devices.
- Digital Constitutionalism: The editorial suggested that India’s move risks undermining the fundamental right to privacy established in the Puttaswamy judgement (2017). Digital constitutionalism requires that any state intervention in the digital space must be lawful, necessary, and proportionate. The DoT’s directives were perceived as a regulatory overreach that failed this test.
Way Forward
- Review and Consultation: The government must immediately revoke the mandatory pre-installation directive and engage in meaningful, transparent consultation with all stakeholders, including digital rights bodies and cybersecurity experts.
- Prioritize Digital Literacy: A significant portion of the scam problem can be solved by investing heavily in public awareness and digital literacy campaigns, rather than relying solely on technological mandates.
- Independent Oversight: An independent regulatory body with legal authority should be tasked with auditing and certifying the security and privacy features of all government-mandated digital applications before their public deployment.
