Topic 1: Economic Survey 2025-26 – The ‘Reform Express’
Syllabus
- GS Paper 3: Indian Economy – Growth, Development, and Planning.
- GS Paper 2: Governance – Government policies and interventions.
Context
On January 29, 2026, Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025-26 in Parliament. The survey projects a real GDP growth of 7.4% for FY26 and estimates India’s potential growth at 7.0%.
Main Body: Multi-Dimensional Analysis
- Macro-Stability: The survey highlights that India has successfully navigated global headwinds (inflation and supply chain disruptions), maintaining a fiscal deficit glide path and robust foreign exchange reserves.
- The “Reform Express”: Prime Minister Modi characterized the survey as a “comprehensive picture of India’s Reform Express,” emphasizing that next-generation reforms are now shifting from policy formulation to “last-mile delivery.”
- Banking Health: A standout feature is the banking sector’s health, with Gross Non-Performing Assets (GNPAs) hitting a multi-decadal low of 2.2% as of September 2025, signaling a clean-up of the “Twin Balance Sheet” problem.
- Investment Appetite: The survey flags a critical “lack of investment appetite” in India Inc., urging the private sector to step up capital expenditure (CAPEX) to complement the government’s massive infrastructure push.
- Employment Strategy: It identifies five key sectors (Electronics, Green Energy, Food Processing, Tourism, and Textiles) that will drive job creation, moving away from a traditional focus on high-end services.
- Digital Public Infrastructure (DPI): The survey notes that India’s DPI (UPI, ONDC, Bhashini) has now matured into an “Economic Multiplier,” contributing significantly to formalizing the unorganized sector.
- Agriculture Focus: With 2026 declared as the ‘Year of Agriculture’ in several states, the survey emphasizes “Value-addition” and “Natural Farming” to increase farmer income beyond traditional MSP cycles.
Analysis Table: Positives, Negatives, & Government Schemes
| Dimension | Positives | Negatives | Relevant Schemes |
| Growth | 7.4% growth makes India the fastest-growing major economy. | Projections for FY27 are slightly lower (6.8-7.2%) due to global slowdown. | PM Gati Shakti: Integrated infra planning. |
| Fiscal | Revenue receipts rose to 9.2% of GDP in FY25. | Private investment remains cautious despite corporate tax cuts. | PLI Schemes: To incentivize domestic manufacturing. |
| Social | Focused attention on MSMEs and youth employment. | Rising food inflation in specific pockets remains a concern. | Viksit Bharat 2047: The overarching vision. |
Way Forward
- Private CAPEX: Government must engage in “Trust-building” measures to unlock private corporate investment.
- Export Diversification: Reducing reliance on service exports by boosting the “China Plus One” manufacturing strategy.
- Skill-AI Integration: Rapidly retraining the workforce to handle AI-integrated manufacturing processes.
Practice Mains Question
“The Economic Survey 2025-26 describes India as a ‘Reform Express’ in a stagnant global environment.” Discuss the internal and external challenges India must overcome to maintain a 7%+ growth trajectory.
Topic 2: Supreme Court Stays UGC Equity Regulations 2026
Syllabus
- GS Paper 2: Judiciary; Education; Social Justice – Issues relating to vulnerable sections.
Context
The Supreme Court of India on January 29, 2026, put a stay on the new UGC (Promotion of Equity in Higher Educational Institutions) Regulations 2026, which aimed to redefine caste discrimination and grievance redressal in universities.
Main Body: Multi-Dimensional Analysis
- Legal Conflict: The stay came after petitions argued that the 2026 regulations “diluted” the existing 2012 anti-discrimination rules by altering the definition of “caste-based harassment” and the structure of Anti-Discrimination Officers.
- Institutional Autonomy: The Court is examining whether the UGC exceeded its mandate by imposing a “uniform” grievance model that might interfere with the internal autonomy of premier institutions like IITs and IIMs.
- Social Justice Paradox: Proponents of the 2026 rules argue they were more “holistic,” covering EWS and LGBTQ+ students, while critics say this came at the cost of weakening specific protections for SC/ST students.
- Data Gaps: The Court noted a lack of clear data on the effectiveness of previous grievance cells before introducing new, sweeping regulations.
- Status Quo: The 2012 UGC Regulations will continue to apply during the stay, ensuring there is no “legal vacuum” in addressing discrimination on campuses.
- Political Response: The stay has triggered a debate in Parliament, with the Opposition demanding a “Caste Census in Education” to justify the need for stronger, targeted regulations.
- Student Welfare: The uncertainty affects thousands of students currently filing grievances, as the procedural framework for their cases is now in legal limbo.
Analysis Table
| Dimension | Analysis |
| Positives | Prevents potential dilution of SC/ST protections under the guise of “broadening” equity. Ensures judicial oversight over administrative overreach in education. |
| Negatives | Delays the inclusion of EWS and other marginalized groups into the “Equity” framework. Creates confusion in university administrations regarding which rules to follow. |
| Schemes | Article 15 & 17: Constitutional basis against discrimination. Post-Matric Scholarship: Financial support for vulnerable students. |
Way Forward
- Consultative Redrafting: UGC should hold town halls with student unions and Dalit/Tribal activists to redraft the rules.
- Digital Redressal: Implement an “Anonymous National Portal” for discrimination complaints to bypass local college biases.
Practice Mains Question
“Institutional equity cannot be achieved through executive fiat alone.” Critically analyze the role of the Judiciary in mediating between administrative efficiency and social justice in higher education.
