JAN 13 – UPSC Current Affairs – PM IAS

Topic 1: Army Chief’s Stance on Shaksgam Valley & LAC

Syllabus

  • GS Paper II: India and its Neighborhood- Relations; Bilateral, regional and global groupings.
  • GS Paper III: Security challenges and their management in border areas.

Context On January 13, 2026, Chief of Army Staff General Upendra Dwivedi termed the 1963 Sino-Pakistan Boundary Agreement—under which Pakistan ceded the Shaksgam Valley to China—as “illegal.” He asserted that India does not approve of any construction in this territory and emphasized “constant vigilance” along the Line of Actual Control (LAC).

Main Body: Multi-Dimensional Analysis

  • Geopolitical Dimension: The Shaksgam Valley (5,180 sq km) is strategically vital as it lies north of the Siachen Glacier. China’s control here puts pressure on Indian defenses in Ladakh.
  • Legal/Historical Dimension: The 1963 agreement is legally void from an Indian perspective because Pakistan had no sovereignty over the territory (part of J&K) to cede it. Article 6 of that very agreement admitted its “provisional” nature, pending a final solution to the Kashmir issue—a clause China now conveniently ignores.
  • Strategic Encirclement: The development of infrastructure in Shaksgam is linked to the China-Pakistan Economic Corridor (CPEC). It creates a “two-front” threat synergy where Chinese and Pakistani military interests physically converge near the Karakoram Pass.
  • Military Readiness: General Dwivedi’s mention of “constant vigilance” signals that despite ongoing diplomatic talks, the Indian Army is maintaining a high state of operational readiness (mirror deployments) to prevent any fait accompli by the PLA.

Positives

  • Strategic Clarity: Publicly reiterating the claim reinforces India’s sovereignty and signals to the international community that the status quo is not accepted.
  • Deterrence: Firm statements accompanied by infrastructure buildup (e.g., roads in Ladakh) deter adversaries from further “salami slicing.”

Negatives

  • Diplomatic Friction: Such statements may stall the fragile disengagement talks currently underway for remaining friction points like Depsang and Demchok.
  • Escalation Risk: Hardening stances can lead to increased military buildup on both sides, draining economic resources.

Government Schemes/Initiatives

  • Vibrant Villages Programme: To strengthen border infrastructure and prevent out-migration from border villages.
  • Border Area Development Programme (BADP): Focusing on strategic roads and connectivity in Ladakh and Arunachal Pradesh.

Examples

  • Historical Precedent: Similar to how India opposes CPEC passing through PoK, opposing Shaksgam infrastructure is consistent with India’s territorial integrity stance.

Way Forward

  • Infrastructure Parity: Accelerate the construction of all-weather roads (e.g., DSDBO road) to ensure rapid troop mobilization.
  • Diplomatic Offensives: India must raise the illegality of the 1963 pact in international forums to counter China’s narrative.
  • Tech-Integration: Use satellite surveillance and UAVs (drones) for 24/7 monitoring of the Shaksgam region to detect construction early.

Conclusion The Army Chief’s statement is not just rhetoric but a strategic necessity. While diplomatic channels must remain open, military preparedness serves as the only real leverage in negotiations with an expansionist neighbor.

Practice Mains Question

“The Shaksgam Valley remains a critical knot in the India-China-Pakistan strategic triangle.” Analyze the security implications of infrastructure development in this region and suggest measures for India to safeguard its territorial interests.


Topic 2: Government Intervention on ’10-Minute Delivery’ Rush

Syllabus

  • GS Paper I: Social Empowerment, Urbanization.
  • GS Paper II: Government Policies and Interventions; Issues relating to poverty and hunger (Gig economy welfare).
  • GS Paper III: Indian Economy and issues relating to employment (Labour reforms).

Context Following a nudge from the Union Labour Ministry on Jan 13, major quick-commerce platforms (Blinkit, Zepto, Swiggy Instamart) have agreed to remove “10-minute delivery” promises from their branding. The government cited safety concerns for gig workers facing pressure to meet dangerous deadlines.

Main Body: Multi-Dimensional Analysis

  • Labour Rights & Safety: The “10-minute” model relies on algorithmic management that subtly incentivizes rash driving. Even if companies claim “no penalties,” the fear of lower ratings or reduced order flow acts as a coercive force.
  • Economic Model: The “Quick Commerce” model burns cash to change consumer habits. The removal of the specific time tag shifts the focus from hyper-speed to reliability, potentially making the business model more sustainable and less exploitative.
  • Urban Traffic Management: A high volume of two-wheelers rushing against a timer contributes significantly to urban congestion and road accidents.
  • Consumer Behaviour: It challenges the “instant gratification” culture. The move aims to reset consumer expectations to realistic timelines (20-30 mins) which are socially more responsible.

Positives

  • Lives Saved: Directly reduces the accident risk for lakhs of gig workers.
  • Ethical Business: Aligns corporate profit motives with basic human rights and dignity of labour.
  • Standardization: Creates a level playing field where companies compete on product quality/assortment rather than dangerous speed.

Negatives

  • Market Correction: Valuation of these startups might see a correction if their USP (speed) is diluted.
  • Earning Potential: If delivery windows expand, the number of deliveries per hour per rider might drop, potentially reducing their daily earnings unless per-order payouts are increased.

Government Schemes/Initiatives

  • Code on Social Security, 2020: Recognizes “gig workers” and proposes a social security fund for them (yet to be fully implemented).
  • e-Shram Portal: National database for unorganized workers to link them with social security schemes.

Examples

  • Global Parallels: In 2024, New York City introduced minimum pay rates and safety standards for app-based delivery workers, forcing platforms to adjust algorithms.

Way Forward

  • Algorithmic Audits: Government should mandate audits of delivery algorithms to ensure they don’t implicitly penalize safety.
  • Social Security Net: Expedite the implementation of the Social Security Code to provide insurance and PF benefits to gig workers.
  • Dynamic Pricing: Platforms should charge a premium for “rush” orders to dissuade unnecessary urgency, sharing that premium with the rider.

Conclusion The government’s intervention is a welcome “regulatory speed breaker” in the uncontrolled race of quick commerce. True innovation should optimize logistics, not exploit human vulnerability.

Practice Mains Question

“The gig economy promises flexibility but often delivers precarity.” Discuss this statement in light of the recent controversies surrounding quick-commerce delivery models. What regulatory frameworks are needed to balance business innovation with worker welfare?


Topic 3: PSLV-C62 Mission Failure

Syllabus

  • GS Paper III: Awareness in the fields of Space; Indigenization of technology.

Context On Jan 13, 2026, ISRO’s PSLV-C62 mission failed to place its payloads (an Earth Observation Satellite and co-passenger satellites) into the intended orbit due to a deviation in the flight path during the third stage. This is a rare failure for ISRO’s “workhorse.”Image of PSLV rocket stages

Main Body: Multi-Dimensional Analysis

  • Technical Dimension: The PSLV is a 4-stage vehicle (Solid-Liquid-Solid-Liquid). A failure in the 3rd stage (Solid motor) suggests issues with propulsion stability or guidance control during the high-altitude burn phase.
  • Commercial Impact: The PSLV is marketed globally by NSIL (NewSpace India Limited) for its reliability. A failure, especially of a commercial mission, raises insurance premiums and might make foreign clients hesitant, pushing them toward competitors like SpaceX (rideshare).
  • Strategic Setback: The loss of the Earth Observation Satellite (EOS) impacts India’s remote sensing capabilities, crucial for agriculture, disaster management, and border surveillance.
  • Private Sector Confidence: With the space sector opening up (IN-SPACe), failures in ISRO-led missions might dampen investor sentiment in the burgeoning Indian space start-up ecosystem, which often rides on ISRO’s launch vehicles.

Positives

  • Data for Improvement: Every failure provides critical telemetry data that helps “bulletproof” future designs (e.g., the transition from GSLV Mk-II issues to Mk-III success).
  • Resilience: ISRO has a history of bouncing back quickly (e.g., after the PSLV-C39 heat shield failure).

Negatives

  • Financial Loss: Direct loss of the cost of the rocket and expensive satellites (estimated in hundreds of crores).
  • Schedule Delays: Upcoming missions (Gaganyaan tests, Chandrayaan follow-ups) may face delays as the failure analysis committee (FAC) investigates the root cause.

Government Schemes/Initiatives

  • Indian Space Policy 2023: Encourages NGEs (Non-Government Entities) to take up end-to-end space activities.
  • IN-SPACe: The authorization and regulatory body for space activities in India.

Examples

  • Comparison: The failure is reminiscent of the PSLV-C39 mission (2017), where the heat shield failed to separate. ISRO rectified it rapidly, proving the system’s resilience.

Way Forward

  • Root Cause Analysis (RCA): A transparent and expedited inquiry to identify if the flaw was design-based or manufacturing-based.
  • Quality Control: Stringent checks on components sourced from external vendors, as supply chains expand.
  • Diversification: Accelerate the operationalization of the SSLV (Small Satellite Launch Vehicle) to take the load off PSLV for smaller commercial payloads.

Conclusion While the PSLV-C62 failure is a temporary stumbling block, it serves as a reminder that space remains an unforgiving frontier. The focus must now shift to rigorous quality assurance to maintain India’s reputation as a cost-effective and reliable space power.

Practice Mains Question

“Reliability is the currency of the commercial space market.” In light of the recent PSLV mission outcome, evaluate the challenges India faces in increasing its share of the global space economy. How can the private sector contribute to overcoming these challenges?

Topic 4: India Slips in Russian Oil Imports

Syllabus

  • GS Paper II: Effect of policies and politics of developed and developing countries on India’s interests.
  • GS Paper III: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

Context

India has dropped to the third position among buyers of Russian fossil fuels in December 2025, falling behind China and Turkey. This shift follows significant cuts in imports by major refiners like Reliance Industries, with the import value dropping from €3.3 billion to €2.3 billion.

Main Body: Multi-Dimensional Analysis

  • Geopolitics vs. Economics: India’s procurement strategy is shifting from purely “opportunistic buying” (discounted Russian oil) to “strategic diversification” to avoid secondary sanctions from the West.
  • Payment Mechanisms: The decline highlights persistent challenges in payment settlement (Rupee-Rouble trade issues) and the tightening of the G7 price cap enforcement.
  • Private Sector Dynamics: Private refiners (like Reliance) are pivoting back to West Asian or American suppliers, likely to safeguard their export markets in Europe and the US from regulatory scrutiny.
  • Energy Security: While Russian oil cushioned India from inflation in 2023-24, over-dependence on a single sanctioned entity poses long-term supply chain risks.

Positives, Negatives & Government Schemes

DimensionDetails
PositivesDiversification: Reduces over-reliance on Russia; re-engages traditional partners like Iraq/Saudi Arabia.
Diplomatic Balance: Signals to the West that India is compliant with global norms, aiding technology transfer talks.
NegativesImport Bill Surge: Moving away from discounted oil may increase the Current Account Deficit (CAD).
Inflation Risk: Higher crude costs could translate to higher petrol/diesel prices domestically.
SchemesStrategic Petroleum Reserves (SPR): Government is expanding storage (e.g., Chandikhol) to buffer against volatility.
Ethanol Blending Programme (EBP): To reduce overall crude import dependency (Target: 20% by 2025-26).

Examples

  • Precedent: In 2019, India stopped importing oil from Iran and Venezuela completely due to US sanctions, showing how external pressure shapes energy baskets.

Way Forward

  • Long-term Contracts: Secure long-term deals with Guyana and Brazil to diversify beyond OPEC and Russia.
  • Rupee Internationalization: Aggressively push for Rupee trade mechanisms with non-sanctioned oil producers.

Conclusion

India’s energy diplomacy is walking a tightrope. The dip in Russian imports indicates a recalibration of “strategic autonomy,” prioritizing long-term market stability over short-term discounts.

Practice Mains Question

“Energy security is the backbone of economic sovereignty.” Analyze the factors influencing India’s shifting crude oil import basket. How can India balance cost-effectiveness with geopolitical constraints?


Topic 5: Controversy Over Film Jana Nayagan

Syllabus

  • GS Paper I: Indian Culture (Arts forms, literature and architecture); Regionalism.
  • GS Paper II: Statutory, regulatory and quasi-judicial bodies (CBFC); Fundamental Rights (Freedom of Speech).

Context

A political row has erupted after the I&B Ministry allegedly delayed/blocked the certification of the Tamil film Jana Nayagan. Opposition leaders term it an “attack on Tamil culture,” while the producers have moved the Supreme Court.

Main Body: Multi-Dimensional Analysis

  • Federalism & Culture: Cinema is a powerful tool for Dravidian politics. Central interference is viewed not just as censorship, but as an imposition on regional identity and federal cultural rights.
  • Freedom of Expression: The delay raises concerns about the misuse of the Central Board of Film Certification (CBFC) to silence political dissent or criticism of the establishment portrayed in art.
  • Judicial Overreach vs. Executive Control: The producers moving to the SC highlights the lack of an effective, independent appellate mechanism after the abolition of the FCAT (Film Certification Appellate Tribunal).

Positives, Negatives & Government Schemes

DimensionDetails
PositivesPublic Order: Scrutiny ensures content does not incite violence or communal disharmony.
Standardization: Ensures films adhere to a unified code of ethics across the nation.
NegativesChilling Effect: Creates fear among creators, leading to self-censorship of vital social themes.
Politicization: The CBFC is increasingly seen as a political tool rather than a certification body.
SchemesCinematograph (Amendment) Act, 2023: Recently amended to tackle piracy and streamline certification, though critics argue it empowers the Centre to recall certificates.

Examples

  • Historical: The ban on the BBC documentary or the controversy over Padmaavat (2018) reflect similar tensions between creative liberty and state control.

Way Forward

  • Revive FCAT: Reinstating an independent appellate tribunal is crucial to reduce the burden on High Courts and the Supreme Court.
  • Certification, Not Censorship: The CBFC’s mandate should strictly be classification (U, A, UA) rather than cutting content, leaving the choice to the viewer.

Conclusion

A vibrant democracy requires art that questions power. When certification becomes a tool for political gatekeeping, it undermines the constitutional guarantee of free speech.

Practice Mains Question

“Cinema is a reflection of society, and its regulation must balance creative freedom with public order.” Discuss the role of the CBFC in India. Do recent controversies suggest a need for structural reform in film certification?


Topic 6: Proposal for Chain-Based Index of Industrial Production (IIP)

Syllabus

  • GS Paper III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Context

MoSPI has released “Discussion Paper 2.0,” proposing a shift from the Fixed-Base method (currently 2011-12 base year) to a Chain-Based Index for calculating IIP.

Main Body: Multi-Dimensional Analysis

  • Statistical Modernization: The current fixed-base method fails to capture new industries (e.g., semiconductors, EVs) that have emerged since 2011. A chain-base method updates weights annually, reflecting the current economic structure.
  • Policy Efficacy: Accurate data is the fuel for effective policy. Obsolete baskets lead to “policy lag,” where interest rates or subsidies are decided on outdated industrial realities.
  • Global Best Practices: Most advanced economies use chain-linking to measure GDP and industrial output, making India’s data more comparable globally.

Positives, Negatives & Government Schemes

DimensionDetails
PositivesRelevance: Captures “sunrise sectors” (e.g., Green Hydrogen, AI hardware) immediately.
Accuracy: Reduces the “substitution bias” inherent in fixed-base indices.
NegativesComplexity: Requires robust, high-frequency data collection which India’s unorganized sector struggles to provide.
Volatility: Annual weight changes can make long-term time-series comparisons difficult for researchers.
SchemesNational Statistical Commission (NSC): The body overseeing statistical reforms.
Digital India: Facilitates faster data collection from industries to MoSPI.

Examples

  • Analogy: Using a fixed base is like calculating inflation based on the price of Nokia phones in 2024; a chain base would switch the basket to Smartphones.

Way Forward

  • Stakeholder Consensus: MoSPI must consult with industry bodies (CII, FICCI) to ensure data submission is seamless.
  • Phased Rollout: Run the chain-based index parallel to the existing one for 2 years to allow economists to adjust models.

Conclusion

Data is the new oil, but only if it is refined. Shifting to a chain-based IIP is a critical structural reform to make India’s economic dashboard reflect reality, not history.

Practice Mains Question

“Accurate statistics are the prerequisite for sound economic policy.” Critically evaluate the proposal to shift to a Chain-Based Index of Industrial Production (IIP). How will this impact policy formulation in India?


Topic 7: Review of Public Sector Insurance Companies

Syllabus

  • GS Paper III: Inclusive Growth; Mobilization of resources (Banking & Insurance).

Context

The Department of Financial Services (DFS) reviewed Public Sector General Insurance Companies (PSGICs) and LIC, mandating 100% digital onboarding and a focus on profitability.

Main Body: Multi-Dimensional Analysis

  • Financial Inclusion: Digital onboarding lowers the cost of acquisition, making insurance affordable for the rural poor (the “missing middle”).
  • Operational Efficiency: PSGICs have lost market share to private players due to legacy systems. Digitization is an existential necessity to compete with agile private fintech insurers (like Acko, GoDigit).
  • Fiscal Prudence: The government wants these PSUs to be profitable and dividend-paying, rather than relying on recapitalization support from the exchequer.

Positives, Negatives & Government Schemes

DimensionDetails
PositivesSpeed: drastically reduces claim settlement time (currently weeks/months).
Transparency: Digital trails reduce fraud and corruption in claims.
NegativesDigital Divide: Rural elderly populations may struggle with app-based onboarding.
Cyber Security: Centralized massive databases of health/wealth data are prime targets for cyber-attacks.
SchemesPradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Life cover targets.
Pradhan Mantri Suraksha Bima Yojana (PMSBY): Accident cover targets.
Bima Sugam: The proposed “UPI for Insurance” platform.

Examples

  • Success Story: The UPI revolution in banking serves as the template for what the government expects in the insurance sector (“Bima Sugam”).

Way Forward

  • Phygital Model: Maintain physical agents (trusted in rural India) equipped with digital tablets, rather than going 100% app-only.
  • AI Integration: Use AI for instant damage assessment (e.g., crop insurance via drone images) to improve profitability.

Conclusion

The push for digitization in PSU insurers is a move to save them from obsolescence. However, efficiency must not come at the cost of excluding the digitally illiterate.

Practice Mains Question

“The insurance penetration in India remains low despite a plethora of schemes.” Discuss the challenges faced by Public Sector Insurance Companies. Can digitization alone solve the issues of profitability and reach?


Topic 8: PFRDA Outreach for MSMEs

Syllabus

  • GS Paper II: Welfare schemes for vulnerable sections; Issues relating to management of Social Sector/Services.

Context

The Pension Fund Regulatory and Development Authority (PFRDA) conducted an outreach in Gujarat to bring the MSME workforce under the National Pension System (NPS), highlighting that only 29% of India’s elderly receive a pension.

Main Body: Multi-Dimensional Analysis

  • Demographic Transition: India is aging. By 2050, 20% of the population will be elderly. Without a pension net for the informal sector (MSMEs), this will create a massive humanitarian and fiscal crisis.
  • Informal Sector Vulnerability: MSME workers often lack formal contracts. The NPS acts as a portable social security account that follows the worker across jobs.
  • Fiscal Health: Encouraging defined-contribution schemes (NPS) reduces the future burden on the state for defined-benefit welfare (social pensions).

Positives, Negatives & Government Schemes

DimensionDetails
PositivesSocial Security: Provides dignity and financial independence to the elderly.
Capital Formation: Pension funds provide long-term capital for infrastructure development.
NegativesLow Yields: Inflation often outpaces safe pension fund returns, eroding real savings.
Liquidity: Low-income workers prefer liquid cash today over locked-in savings for 30 years later.
SchemesAtal Pension Yojana (APY): Specifically targets the unorganized sector.
NPS Vatsalya: Recently launched for minors to start early accumulation.
PM Shram Yogi Maandhan: For unorganized workers.

Examples

  • Contrast: Government employees have guaranteed safety nets; a textile worker in Surat (MSME hub) has none. This initiative aims to bridge that gap.

Way Forward

  • Auto-Enrolment: Like the UK, India should consider mandatory “opt-out” auto-enrolment for MSME employees.
  • Corporate Nudge: Incentivize MSME owners (tax breaks) to co-contribute to their employees’ NPS accounts.

Conclusion

Social security for the MSME sector is the “unfinished agenda” of India’s welfare state. PFRDA’s proactive outreach is vital to ensure India does not grow old before it grows rich.

Practice Mains Question

“With a large informal workforce, India sits on a ticking time bomb of old-age poverty.” Evaluate the effectiveness of the National Pension System (NPS) in providing social security to the MSME sector. What more can be done?

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