Topic 1: CCI Investigation into Steel Sector Cartelization
Syllabus
- GS Paper 2: Statutory, regulatory and various quasi-judicial bodies (Competition Commission of India).
- GS Paper 3: Indian Economy – Industrial Policy, Effects of Liberalization on the economy, Infrastructure.
- GS Paper 4: Corporate Governance and Business Ethics.
Context
In a landmark antitrust development, the Competition Commission of India (CCI) has reportedly found major steel producers—Tata Steel, JSW Steel, SAIL, and RINL—liable for price collusion and coordinating production cuts between 2018 and 2023. The investigation relied on digital evidence, including WhatsApp group chats.
Main Body: Multi-Dimensional Analysis
- Economic Impact (Inflationary Pressure): The steel sector is the backbone of infrastructure. Cartelization leads to artificial price inflation, which cascades into higher costs for construction, automobiles, and real estate. This “cost-push inflation” undermines the competitiveness of downstream industries and increases the financial burden on government infrastructure projects like PM Gati Shakti.
- Regulatory & Legal Dimension: The probe highlights the evolving capabilities of the CCI in the digital age. The use of digital forensics (WhatsApp chats from groups like “Friends of Steel”) to establish “meeting of minds” sets a precedent for how the regulator will police collusion in the future. It underscores the rigorous enforcement of Section 3 of the Competition Act, 2002, which prohibits anti-competitive agreements.
- Public Sector Accountability: The involvement of Public Sector Undertakings (PSUs) like SAIL and RINL alongside private giants is alarming. It raises questions about the governance standards within state-owned enterprises, which are expected to prioritize public welfare over profit maximization through unethical means.
- Market Distortion: Cartels create high barriers to entry for smaller players and stifle innovation. By fixing prices and limiting supply, these major players (who control a significant market share) effectively nullify the benefits of a free market, leading to deadweight loss in the economy.
- Global Reputation: As India positions itself as a global manufacturing hub (“Make in India”), such instances of cartelization can dampen investor sentiment. Foreign investors seek transparent, rule-based markets, not those manipulated by incumbent oligopolies.
Positives, Negatives, & Government Schemes
| Dimension | Analysis |
| Positives | Regulatory Maturity: Demonstrates CCI’s growing teeth and ability to handle complex investigations. Digital Evidence: usage validates the legal admissibility of digital trails in economic offences. Consumer Protection: Breaking cartels eventually leads to fairer prices for end-consumers. |
| Negatives | Trust Deficit: erodes trust in corporate governance of India’s “Navratnas” and major conglomerates. Sectoral Stress: Heavy penalties could financially strain these companies, potentially impacting banking NPA levels (especially for debt-laden firms). Project Delays: Legal battles may stall supply chains for ongoing infra projects. |
| Schemes | Competition Act, 2002: The primary legal framework. National Steel Policy 2017: Aims to create a competitive steel sector (undermined by cartels). Leniency Programme: Under CCI, companies disclosing cartels first get lesser penalties (relevant here if any firm turned whistleblower). |
Examples
- Cement Cartel Case (2016): The CCI previously fined cement companies ₹6,300 crore for similar price-fixing, setting a historical precedent.
- Digital Evidence: The specific citing of WhatsApp groups named “Tycoons” and “Friends of Steel” serves as a direct example of how informal communication channels are weaponized for corporate collusion.
Way Forward
- Strengthen Whistleblower Protections: Enhance the Leniency Regime under the Competition Act to encourage more insiders to expose cartels.
- Corporate Governance Reforms: Mandate stricter compliance audits for PSUs and large corporates specifically targeting anti-competitive behavior.
- Market Monitoring Cell: Establish a dedicated cell within the Ministry of Steel to monitor abnormal price movements in real-time, independent of the CCI.
- Capacity Building: Further equip the CCI with advanced digital forensic tools to track encrypted communications used for collusion.
Conclusion
The investigation into the steel cartel is a litmus test for India’s economic regulatory framework. While it exposes deep-seated unethical practices in the heavy industry sector, the proactive stance of the CCI signals a move towards a more transparent and competitive market economy, essential for India’s $5 trillion economy goal.
Practice Mains Question
“Cartelization in core industries not only distorts markets but also derails national development goals.” Discuss this statement in light of the recent CCI investigation into the steel sector, and evaluate the role of digital forensics in antitrust enforcement.
Topic 2: Digital India Bhashini & Survey of India MoU
Syllabus
- GS Paper 2: E-governance- applications, models, successes, limitations, and potential.
- GS Paper 3: Science and Technology – Indigenization of technology; Awareness in the fields of IT and Computers.
- GS Paper 1: Indian Culture (Preservation of linguistic heritage).
Context
The Digital India BHASHINI Division (MeitY) has signed an MoU with the Survey of India to digitize and standardize geographical place names (toponyms) across India. The project will utilize AI-based speech and language technologies to make geospatial data accessible in multiple Indian languages.
Main Body: Multi-Dimensional Analysis
- Technological Sovereignty (AI for India): This initiative is a prime example of “AI for Good.” By training AI models on local dialects to transcribe place names, India is building a sovereign AI stack that understands the nuances of its linguistic diversity, reducing dependence on foreign mapping data which often mispronounces or Anglicizes Indian names.
- Governance & Inclusion: Currently, most geospatial data is in English, alienating a vast non-English speaking population. This MoU democratizes access to navigation, land records, and disaster management services by making them available in vernacular languages, bridging the digital divide.
- Cultural Preservation: “Toponyms” contain historical and cultural markers (e.g., Prayagraj vs. Allahabad or local tribal names). Documenting these in their native scripts and pronunciations helps preserve intangible cultural heritage against the homogenizing forces of globalization.
- Strategic & Administrative Efficiency: Standardizing place names is crucial for administration, postal services, and security. Ambiguities in place names can lead to logistical failures. The Survey of India’s authoritative data combined with Bhashini’s AI ensures accuracy and speed in updating these records.
- Economic Utility: Multilingual maps are essential for the logistics sector, rural e-commerce expansion, and tourism (“Incredible India”), enabling last-mile connectivity providers to operate more efficiently in remote areas.
Positives, Negatives, & Government Schemes
| Dimension | Analysis |
| Positives | Inclusivity: Empowers citizens to access government services in their mother tongue. Standardization: Resolves confusion caused by multiple spellings of the same town/village. Innovation: Boosts the domestic AI ecosystem and startups working on NLP (Natural Language Processing). |
| Negatives | Implementation Lag: The complexity of Indian dialects (changing every few kms) makes 100% accuracy difficult. Digital Literacy: Having the data is one thing; ensuring rural citizens can access the digital interface is another. Data Privacy: Collection of voice data for AI training requires robust privacy safeguards. |
| Schemes | National Geospatial Policy, 2022: Aims to democratize geospatial data. Digital India Bhashini: The National Language Translation Mission. PM Gati Shakti: Will benefit from accurate, multilingual mapping data. |
Examples
- Project Vaani: A collaboration between Google and the Indian Institute of Science (IISc) to collect speech data from 773 districts, similar in spirit to Bhashini’s goals.
- Disaster Relief: In floods (e.g., Assam), having maps that use local village names (as known to residents) rather than official Anglicized names can speed up rescue operations.
Way Forward
- Crowdsourcing Verification: Implement a “Jan Bhagidari” model where locals can validate the AI-transcribed names of their villages to ensure cultural accuracy.
- Integration with Navigation Apps: Mandate or encourage integration of this localized data into platforms like MapMyIndia and Google Maps.
- Offline Functionality: Ensure these multilingual maps work in low-connectivity zones, which are often the areas most linguistically diverse.
- Focus on Tribal Languages: Prioritize unscripted tribal languages which are most at risk of being lost in standard digital mapping.
Conclusion
The Bhashini-Survey of India collaboration represents a sophisticated intersection of tradition and technology. It moves Digital India from a “connectivity” phase to a “content and inclusion” phase, ensuring that the digital map of India truly reflects the linguistic reality of its people.
Practice Mains Question
“Language barriers have long been a hurdle in the effective last-mile delivery of digital services in India.” Analyze how the convergence of Artificial Intelligence and Geospatial technology can bridge this gap, with reference to the Digital India Bhashini initiative.
Topic 3: Indian Rupee Hits Record Low
Syllabus
- GS Paper 3: Indian Economy – Mobilization of resources, Growth, Development; External Sector (Currency dynamics).
- GS Paper 2: International Relations (Effect of global policies on India).
Context
On January 23, 2026, the Indian Rupee (INR) fell to a record low (touching ~92 per USD) due to sustained foreign fund outflows, aggressive hedging by importers, and global geopolitical cues.
Main Body: Multi-Dimensional Analysis
- Macroeconomic Stability (CAD & Inflation): A depreciating rupee makes imports (oil, electronics, edible oil) expensive. Since India imports over 80% of its crude oil, this creates “imported inflation,” forcing the RBI to potentially keep interest rates high, which can stifle domestic growth. It also widens the Current Account Deficit (CAD).
- FPI & Investment Dynamics: The outflow of Foreign Portfolio Investors (FPIs) signals a “risk-off” sentiment. Investors are moving capital to safer assets (like US Treasury bonds) or cheaper markets (like China). This puts pressure on India’s capital account and forex reserves.
- Export Competitiveness: Theoretically, a weaker rupee aids exports like textiles and IT services by making them cheaper for global buyers. However, given the global demand slowdown, the volume of exports may not rise enough to offset the value loss, leading to a “J-curve” effect where the trade balance worsens before improving.
- Corporate Debt: Indian companies with External Commercial Borrowings (ECBs) face a “double whammy.” They must repay dollar debt with a weaker rupee, increasing their debt servicing burden and impacting their balance sheets.
- RBI’s Dilemma: The RBI faces the “Impossible Trinity” (managing exchange rate, independent monetary policy, and free capital flow). Aggressive intervention to save the rupee burns Forex reserves, while letting it slide hurts inflation goals.
Positives, Negatives, & Government Schemes
| Dimension | Analysis |
| Positives | IT & Pharma Gains: Export-oriented sectors earn in dollars, boosting their rupee revenue/profitability. Remittances: India, the world’s top remittance receiver, will see higher value inflows from the diaspora. Correction: Helps correct overvaluation of the currency in Real Effective Exchange Rate (REER) terms. |
| Negatives | Fuel Prices: Direct impact on petrol/diesel prices, increasing transport costs. Fiscal Deficit: Government’s fertilizer and fuel subsidy bills increase. Education: Indian students studying abroad face significantly higher costs. |
| Schemes | Liberalised Remittance Scheme (LRS): Monitoring outflows to check pressure on INR. International Trade Settlement in INR: RBI’s push to settle trade in Rupee (Vostro accounts) to reduce dollar dependence. Masala Bonds: Rupee-denominated bonds to shift currency risk to investors. |
Examples
- The 2013 “Taper Tantrum”: A historical parallel where US Fed policy shifts caused massive rupee volatility, though India’s fundamentals (forex reserves) are much stronger in 2026.
- Importer Hedging: Companies rushing to buy dollars now to pay for future imports (fearing further drops) becomes a self-fulfilling prophecy that drives the rupee down further.
Way Forward
- Diversify Trade Currency: Accelerate the internationalization of the Rupee, specifically with oil-exporting nations (UAE, Russia), to reduce demand for the dollar.
- Boost Export Hubs: Implement PLI schemes more aggressively in export-heavy sectors to capitalize on the lower currency value.
- Forex Management: RBI should intervene selectively (via swaps) to curb volatility rather than trying to defend a specific level (e.g., 92), preserving reserves for crisis situations.
- Structural Reforms: Improve “Ease of Doing Business” to attract long-term Foreign Direct Investment (FDI), which is more stable than volatile FPI hot money.
Conclusion
The record low of the Rupee is a symptom of global realignments and external headwinds rather than purely domestic weakness. While short-term pain in inflation and import costs is inevitable, the focus must remain on structural strengthening of the external sector through export competitiveness and reducing energy import dependence.
Practice Mains Question
“A depreciating currency acts as both a shock absorber and a shock amplifier for an emerging economy.” Discuss this paradox in the context of the Indian Rupee’s recent performance and suggest measures to mitigate the risks of imported inflation.
Topic: 4 Modernisation of Police Forces (AI Smart Glasses)
Syllabus
- GS Paper 3: Challenges to internal security through communication networks; Role of media and social networking sites in internal security challenges; Security challenges and their management in border areas – linkages of organized crime with terrorism. (Specifically: Modernisation of Police Forces).
- GS Paper 2: Governance – E-governance; Fundamental Rights (Right to Privacy).
- GS Paper 3: Science & Technology – Developments and their applications (Artificial Intelligence).
Context
For the first time, the Delhi Police will deploy AI-enabled smart glasses during the Republic Day 2026 celebrations. These wearable devices, developed by an Indian firm (AjnaLens), utilize Augmented Reality (AR) and Facial Recognition Technology (FRT) to identify suspects in real-time by matching faces against a loaded criminal database, even identifying individuals in disguise.
Main Body: Multi-Dimensional Analysis
- Operational Efficiency & Security Management:
- Force Multiplier: Traditional surveillance relies on fixed CCTV cameras which have blind spots. Smart glasses turn every officer into a mobile surveillance unit, significantly enhancing “eyes on the ground.”
- Real-time Intelligence: The ability to scan crowds and receive instant “Red (Suspect) / Green (Clear)” alerts reduces the decision-making time for security personnel from minutes to milliseconds.
- Anti-Disguise Capabilities: The AI’s ability to identify suspects despite masks, beards, or makeup (aging algorithms) addresses a major loophole in conventional visual policing.
- Technological Indigenisation:
- “Atmanirbhar” Tech: The deployment of Indian-made glasses (AjnaLens) reduces reliance on foreign surveillance tech, which often comes with “backdoor” security risks. It validates the Indian deep-tech startup ecosystem’s ability to serve national security needs.
- Privacy & Legal Concerns (The Puttaswamy Test):
- Mass Surveillance: The deployment raises concerns about the “surveillance state.” Continuous scanning of non-criminal citizens in public spaces may violate the Right to Privacy (Article 21) unless it passes the tests of legality, necessity, and proportionality.
- Data Security: While the police claim databases are “offline” and encrypted on the device to prevent leaks, the risk of device theft or hacking remains a concern.
- False Positives: AI is not infallible. A “false positive” (misidentifying an innocent person as a criminal) in a high-security zone could lead to harassment or unlawful detention, violating civil liberties.
- Psychological Impact:
- Deterrence: The visible presence of high-tech gear acts as a psychological deterrent to potential troublemakers.
- Panopticon Effect: Conversely, it may create a “chilling effect” on free speech and assembly, where citizens feel constantly watched by the state.
Positives, Negatives & Government Schemes
| Dimension | Analysis |
| Positives | Crowd Management: Effective in managing high-density events like Kumbh Mela or R-Day. Crime Prevention: Proactive identification of pickpockets, terrorists, or absconders before they act. Tech Sovereignty: Boosts domestic defense-tech manufacturing. |
| Negatives | Bias in AI: Facial recognition algorithms often exhibit bias against specific skin tones or ethnicities, leading to discriminatory policing. Legal Vacuum: India lacks a dedicated data protection law for surveillance agencies (DPDP Act has exemptions for govt). Cost: High cost of procurement and maintenance for widespread adoption. |
| Schemes | Modernisation of Police Forces (MPF) Scheme: Central scheme to upgrade police infrastructure. CCTNS (Crime and Criminal Tracking Network & Systems): The database these glasses likely connect to. National Strategy on AI: NITI Aayog’s roadmap for “AI for All.” |
Examples
- China’s Skynet: A comparable (albeit much larger) system used in China, often criticized for suppressing dissent but praised for low street crime.
- Missing Children: Similar technology in Telangana (Darpan app) has successfully reunited missing children with families by matching photos.
Way Forward
- Standard Operating Procedures (SOPs): Codify strict SOPs ensuring that data of “non-matches” (innocent citizens) is instantly deleted and not stored.
- Human-in-the-loop: Ensure that an AI alert is treated only as a lead and not a verdict. Mandatory manual verification before detention.
- Algorithmic Audits: Regular independent audits of the AI software to check for racial or community bias.
- Legal Framework: Bring surveillance technology under explicit parliamentary oversight to balance security with privacy.
Conclusion
The deployment of AI smart glasses is a paradigm shift from “reactive” to “predictive” policing. While it significantly fortifies national security, its success in a democracy depends on the existence of robust institutional guardrails that prevent technology from becoming a tool of suppression.
Practice Mains Question
“Technology is a double-edged sword in internal security.” Critically examine the deployment of AI-enabled surveillance tools by Indian law enforcement agencies with respect to the balance between national security and the right to privacy.
Topic:5 Indigenisation of Defense Sector (C-295 Aircraft)
Syllabus
- GS Paper 3: Security challenges and their management in border areas; Indigenization of technology and developing new technology.
- GS Paper 3: Indian Economy – Changes in industrial policy and their effects on industrial growth.
Context
Reports confirm that the first “Made in India” C-295 military transport aircraft will roll out of the Tata-Airbus Vadodara facility before September 2026. This is part of a ₹21,935 crore deal for 56 aircraft, where 40 are being manufactured domestically—the first instance of a private company (Tata) building a military aircraft in India.
Main Body: Multi-Dimensional Analysis
- Strategic Autonomy:
- Reduced Import Dependence: Historically, India has been the world’s largest arms importer. Manufacturing the C-295 domestically reduces reliance on foreign OEMs (Original Equipment Manufacturers) for critical transport fleets, ensuring supply chain security during geopolitical crises.
- Avro Replacement: These aircraft replace the aging Avro-748 fleet, critically enhancing the IAF’s tactical airlift capabilities near borders (e.g., Ladakh, Northeast).
- Private Sector Participation:
- Breaking the PSU Monopoly: This project ends the monopoly of Hindustan Aeronautics Limited (HAL) in military aircraft manufacturing. It signals confidence in the Indian private sector’s ability to handle complex defense technologies.
- Aerospace Ecosystem: The project involves over 125 Indian MSME suppliers. This creates a tiered aerospace ecosystem (Tier 1, 2, 3 suppliers) similar to the automotive sector, fostering high-tech precision manufacturing.
- Economic & Industrial Impact:
- Job Creation: It is estimated to generate 600 highly skilled jobs directly and over 3,000 indirect jobs.
- MRO Hub: India aims to become a Maintenance, Repair, and Overhaul (MRO) hub for C-295s in the Asia-Pacific region. Since many neighbors operate this aircraft, this opens export revenue streams.
- Technology Transfer (ToT):
- Deep Tech Access: Unlike simple assembly, this deal involves “manufacturing,” meaning Tata will learn to build the airframe, integrate systems, and conduct final testing. This knowledge is transferable to future indigenous projects like the Medium Transport Aircraft (MTA).
Positives, Negatives & Government Schemes
| Dimension | Analysis |
| Positives | Cost Efficiency: Lifecycle costs are lower due to domestic MRO capabilities. Export Potential: India can market these to “Global South” nations looking for cost-effective transport aircraft. Skill Development: Creates a pool of engineers trained in global aerospace standards. |
| Negatives | Delay Risks: Being a greenfield project, initial timelines (Sep 2026) are tight and prone to “teething troubles.” IP Rights: Critical engine and avionics technology may still remain proprietary to Airbus/foreign partners, limiting full indigenization (approx 96% of airframe is indigenous, but engines are often imported). |
| Schemes | Make in India (Defense): The umbrella initiative. Defense Acquisition Procedure (DAP) 2020: Promotes “Buy (Global – Manufacture in India)” category. Defense Industrial Corridors: Located in UP and Tamil Nadu to support such ecosystems. |
Examples
- Successful Model: The automotive boom in India (Suzuki-Maruti) started with assembly and led to full indigenization. The C-295 aims to replicate this in aerospace.
- Comparison: Unlike the licensed production of Su-30MKI by HAL which took decades to fully indigenize, the C-295 project has strict “indigenous content” timelines fixed in the contract.
Way Forward
- R&D Investment: Private players must reinvest profits into R&D to move from “Build to Print” (manufacturing to drawings) to “Build to Spec” (designing from scratch).
- Export Clearance: Government should streamline export clearances to allow Tata-Airbus to sell “Made in India” C-295s to friendly nations.
- Engine Indigenization: The next frontier is the Kaveri engine project; without indigenous engines, true autonomy is incomplete.
- Integration with Academia: Link IITs with the Vadodara facility to create specialized aerospace curriculums.
Conclusion
The rollout of the Indian C-295 in 2026 will be a watershed moment, marking India’s transition from a “buyer” to a “maker” in the aerospace domain. It validates the “Buy (Global – Manufacture in India)” model and sets the stage for a thriving military-industrial complex.
Practice Mains Question
“The C-295 project represents a decisive shift in India’s defense production policy.” Analyze the significance of private sector participation in defense manufacturing and its implications for India’s strategic autonomy.
Topic:6 Federalism and Cooperative Development (PM in Kerala)
Syllabus
- GS Paper 2: Functions and responsibilities of the Union and the States; Issues and challenges pertaining to the federal structure.
- GS Paper 2: Parliament and State Legislatures – structure, functioning, conduct of business.
Context
Prime Minister Narendra Modi’s visit to Kerala ahead of the 2026 Assembly elections emphasized the “Double Engine” government narrative. He inaugurated developmental projects (housing, innovation hubs) while appealing for a political mandate, highlighting the intersection of developmental governance and electoral politics in a federal setup.
Main Body: Multi-Dimensional Analysis
- Cooperative vs. Competitive Federalism:
- The “Double Engine” Narrative: The PM argued that having the same party at the Center and State accelerates development. While this promotes synergy, critics argue it undermines the federal spirit by implying that non-aligned states might face developmental bottlenecks.
- Central Schemes in States: The mention of “1.25 lakh housing units” (PMAY) highlights how Central schemes are the primary vehicle for welfare, but their implementation depends on State machinery. This often leads to “credit wars”—battles over who claims ownership of the success (Center vs State).
- Development as a Political Tool:
- Infrastructural Outreach: By inaugurating the CSIR Innovation Hub and Radio Surgery Centre, the Center uses “developmental diplomacy” to penetrate states where it is politically weak. This shifts the discourse from purely ideological/caste-based politics to “performance politics.”
- Fiscal Federalism: The Kerala CM’s request for “timely implementation of announced initiatives” points to the ongoing friction regarding fund devolution and clearance of state projects by the Center (e.g., limits on borrowing capacities).
- Technocratic Governance:
- Innovation focus: The push for Thiruvananthapuram as a “startup hub” aligns with the national goal of a $5 Trillion economy. It suggests that the Center views urbanization and tech-hubs as non-partisan national assets, regardless of the ruling party in the state.
Positives, Negatives & Government Schemes
| Dimension | Analysis |
| Positives | Healthy Competition: States competing for Central projects (Competitive Federalism) improves efficiency. National Integration: PM’s frequent visits to southern states bridge the “North-South” political divide perception. Welfare Saturation: Focus on housing and health ensures last-mile delivery of basic rights. |
| Negatives | Politicization of Development: Inaugurating projects just before elections raises questions about the Model Code of Conduct (spirit vs letter). Centralization: Excessive focus on “Double Engine” may weaken regional parties that represent specific local cultural/linguistic aspirations. Fiscal Squeeze: States often complain that Center-sponsored schemes drain state coffers due to “matching grant” requirements. |
| Schemes | Pradhan Mantri Awas Yojana (PMAY): Housing for urban poor. Smart Cities Mission: Thiruvananthapuram’s development. PM Gati Shakti: Integrated infrastructure planning. |
Examples
- Credit War: In many states, PMAY houses are branded with State CM photos, leading to friction with the Center.
- Kerala’s SilverLine Project: A past example of Center-State deadlock where a state-led massive infra project was stalled due to lack of Central environmental/railway clearance.
Way Forward
- Institutional Dialogue: Strengthen the Inter-State Council to resolve developmental bottlenecks outside of election rallies.
- Depoliticize Development: Establishing an independent body to audit and announce project completions can reduce the “credit war.”
- Flexible Guidelines: Central schemes should allow more flexibility for States to tailor implementation (e.g., housing designs suitable for Kerala’s climate).
- Fiscal Autonomy: Address the concerns of the 16th Finance Commission regarding the “cess and surcharge” issue which reduces the divisible pool of taxes for states.
Conclusion
The PM’s visit underscores the complex dance of Indian federalism. While elections are the ultimate test of political will, the governance machinery must ensure that the “Center-State” relationship remains collaborative rather than coercive, ensuring that development is continuous and not contingent on electoral cycles.
Practice Mains Question
“The concept of ‘Double Engine Government’ challenges the traditional understanding of Federalism in India.” Discuss. How can the friction between political contestation and developmental cooperation be minimized in Center-State relations?
