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  • Higher Education – RUSA, NIRF, HEFA, etc.

    [11th June 2026] The Hindu OpED: Negotiating federalism in higher education

    11 June 2026 | op-ed snap | Polity
    Mains Paper 2: Federalism

    PYQ Relevance[UPSC 2020] National Education Policy 2020 is in conformity with the Sustainable Development Goal-4 (2030). It intends to restructure and reorient education system in India. Critically examine the statement.Linkage:  While the PYQ focuses on evaluating NEP 2020’s educational reforms, the article examines how the implementation of those reforms has generated new Centre-State tensions and debates over federalism, autonomy, and governance in higher education.

    Mentor’s Comment

    The implementation of the National Education Policy 2020, growing central control through regulatory and funding mechanisms, and disputes over language policy and Vice-Chancellor appointments have intensified Centre-State tensions in higher education. The debate highlights concerns that, despite education being in the Concurrent List, governance is becoming increasingly centralised. This raises questions about State autonomy and Indian federalism.

    How Has Higher Education Become a Site of Federal Contestation?

    1. Federal Interface: Higher education has evolved beyond a sectoral policy issue and now reflects broader Centre-State power relations.
    2. Governance Disputes: Regulatory authority, curriculum design, language policy, public funding, and digital governance have become contested domains.
    3. Political Divergence: Different States have responded differently to central reforms, reflecting diverse political and developmental priorities.
    4. Constitutional Significance: Debates increasingly concern the distribution of authority within the Indian Union rather than merely educational administration.

    How Is the Centre Expanding Its Influence in Higher Education Governance?

    1. Concurrent List Position: Education falls under the Concurrent List, enabling both Union and State governments to legislate.
    2. Institutional Leverage: The Union exercises influence through the Ministry of Education, UGC, accreditation agencies, and national regulatory frameworks.
    3. Regulatory Expansion: National standards increasingly shape university functioning across States.
    4. Policy Coordination: Central institutions possess significant capacity to standardise governance structures nationwide.

    Constitutional Basis

    ProvisionSignificance
    Entry 66, Union ListCoordination and determination of standards in higher education
    Entry 25, Concurrent ListEducation under shared legislative jurisdiction
    Article 246Distribution of legislative powers
    Article 254Union law prevails in case of inconsistency

    Why Has NEP 2020 Intensified Federal Debates?

    1. Structural Reforms: Introduces four-year undergraduate programmes.
    2. Academic Bank of Credits (ABC): Facilitates credit accumulation and transfer across institutions.
    3. Institutional Restructuring: Encourages multidisciplinary universities and institutional consolidation.
    4. Internationalisation: Supports collaboration with global universities and foreign campuses.
    5. Expanded Central Role: Extends central influence into areas traditionally administered by States.

    Key NEP Measures Relevant to Federalism

    1. Multiple Entry-Exit Framework: Restructures degree pathways.
    2. Academic Mobility: Enables nationwide credit transfer through ABC.
    3. Institutional Transformation: Encourages multidisciplinary educational ecosystems.
    4. Global Integration: Facilitates international academic partnerships.

    How Are Funding Mechanisms Strengthening Central Influence?

    1. Conditional Funding: Access to central financial support increasingly depends on compliance with nationally designed reforms.
    2. Institutions of Eminence (IoE): Links excellence funding with centrally determined criteria.
    3. Research Incentives: Competitive funding structures influence institutional priorities.
    4. Anusandhan National Research Foundation (ANRF): Expands central role in research governance and resource allocation.
    5. Policy Alignment: Financial incentives encourage States and institutions to adopt national reform agendas.

    Fiscal Federalism and Higher Education

    1. Vertical Fiscal Imbalance: States bear substantial implementation responsibilities while major funding flows remain centrally influenced.
    2. Conditional Grants: Strengthen policy convergence across States.
    3. Performance-Based Funding: Links resources with nationally determined outcomes.

    Why Are National Regulatory Reforms Creating Concerns Among States?

    1. Regulatory Restructuring: Proposed reforms seek to replace existing higher education regulatory bodies with new frameworks.
    2. Authority Concerns: States fear gradual erosion of their influence over university governance.
    3. Centralised Oversight: National regulators may exercise greater supervisory powers.
    4. Governance Uniformity: Increased standardisation may reduce flexibility for regional requirements.

    Example Mentioned 

    1. Viksit Bharat Shiksha Adhishthan Bill, 2025: Proposed restructuring of higher education regulatory architecture has generated apprehensions regarding State autonomy.

    How Is Digital Governance Contributing to Centralisation?

    1. Academic Bank of Credits (ABC): Creates nationally integrated academic records.
    2. Standardisation: Enables uniform academic tracking and credit recognition.
    3. Monitoring Capacity: Enhances the Centre’s ability to oversee institutional performance.
    4. Data Governance: Strengthens central regulatory visibility across States.

    What Are the Major Centre-State Conflicts in Higher Education?

    Tamil Nadu

    1. Three-Language Formula: Repeated opposition to language provisions under NEP 2020.
    2. UGC Circular Dispute: Resistance to directives concerning third-language implementation.

    Kerala

    1. University Governance: Concerns regarding appointment of Vice-Chancellors and gubernatorial powers.

    Karnataka

    1. Institutional Autonomy Issues: Disputes over university administration and appointments.

    West Bengal

    1. Governor-State Government Conflicts: Differences regarding control over higher education institutions.

    Broader Pattern

    1. Vice-Chancellor Appointments: Emerging as a recurring federal conflict.
    2. Governor’s Role: Increasingly linked to debates over educational autonomy.
    3. Regional Identity: Language and curriculum issues reinforce federal tensions.

    Are States Merely Resisting or Strategically Adapting?

    1. Selective Adoption: States increasingly adopt reforms aligned with local priorities while resisting others.
    2. Negotiated Federalism: Centre-State relations are becoming more adaptive rather than purely confrontational.
    3. Policy Customisation: States modify implementation pathways according to regional political contexts.
    4. Pragmatic Governance: Reflects a balance between compliance and autonomy.
    5. Negotiated Federalism: A form of federalism in which States neither fully accept nor fully reject central policies but strategically adapt them to local circumstances.

    How Is Internationalisation Reshaping Centre-State Dynamics?

    1. Regional Education Hubs: States seek to attract international institutions and students.
    2. Global Partnerships: State governments facilitate collaborations with overseas universities.
    3. Economic Development Tool: Higher education is increasingly viewed as a driver of investment and knowledge-led growth.
    4. Implementation Dependence: Despite central regulations, operational success depends heavily on State-level clearances, infrastructure, and facilitation.

    What Does This Debate Reveal About the Future of Indian Federalism?

    1. Beyond Constitutional Text: Federal outcomes increasingly depend on political negotiation.
    2. Shared Governance: Higher education reflects evolving intergovernmental relations.
    3. Regional Assertion: States continue to defend administrative and cultural autonomy.
    4. Collaborative Adaptation: Policy implementation increasingly requires Centre–State cooperation.
    5. Dynamic Federalism: Governance outcomes emerge through continuous negotiation rather than fixed constitutional arrangements.

    Conclusion

    Higher education has emerged as a key arena for negotiating Indian federalism, where issues of regulation, funding, language, and institutional governance increasingly shape Centre–State relations. The future of the sector will depend on balancing national standards with State autonomy through cooperative and negotiated federalism, ensuring both educational excellence and constitutional federal balance.

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  • Roads, Highways, Cargo, Air-Cargo and Logistics infrastructure – Bharatmala, LEEP, SetuBharatam, etc.

    Zojila Tunnel: The challenge of digging through the Himalays

    11 June 2026 | Explained | Economics
    Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Why in the news?

    The near-completion breakthrough of the Zojila Tunnel, being constructed at an altitude of 11,578 feet, marks one of India’s most ambitious and technically demanding infrastructure achievements.

    What is the Zojila Tunnel?

    1. The Zojila Tunnel is a 13-km bi-directional road tunnel being constructed beneath the Zojila Pass in the Himalayas. 
    2. Located at an elevation of 11,578 feet, it aims to provide all-weather connectivity between Kashmir Valley and Ladakh. 
    3. The project is among India’s most challenging infrastructure undertakings due to the complex geological and environmental conditions associated with Himalayan terrain.

     How does Himalayan geology make tunnel construction exceptionally difficult?

    1. Young Fold Mountains: The Himalayas are geologically young and remain tectonically active, resulting in unstable rock formations.
    2. Variable Rock Strata: Rock composition can change within a few metres, creating unpredictable excavation conditions.
    3. Structural Weaknesses: Rock formations contain fractures, cracks, fault zones, and shear zones that reduce stability.
    4. Loose Geological Material: Engineers encounter loose rocks, boulders, and weak strata requiring different support systems.
    5. Ocean-Floor Origin: Himalayan rocks originated from uplifted seabed deposits, producing highly heterogeneous geological structures.
    FeatureYoung HimalayasOld Mountains (e.g., Aravallis)
    StabilityLowerHigher
    Tectonic ActivityActiveRelatively Stable
    Tunneling RiskHighLower
    Rock UniformityPoorBetter

    Why do altitude and climatic conditions increase construction risks?

    1. High Elevation: Construction occurs at approximately 11,578 feet, reducing worker efficiency and equipment performance.
    2. Extreme Cold: Temperatures may fall to -30°C.
    3. Harsh Winters: Severe weather limits construction windows.
    4. Avalanche Threats: Snow avalanches create risks for workers and infrastructure.
    5. Operational Challenges: Combustion engines and heavy machinery experience reduced efficiency at high altitude.

    Why is water ingress one of the biggest engineering challenges in the Himalayas?

    1. Stored Water Reservoirs: Mountains contain large volumes of groundwater trapped within rock layers.
    2. Snowmelt Contribution: Melting snow continuously adds to underground water systems.
    3. Water Ingress: Excavation frequently intersects water-bearing zones.
    4. Hydrostatic Pressure: Excessive water pressure can destabilize tunnel structures.
    5. Flooding Risk: Uncontrolled seepage may trigger tunnel flooding and structural failures.

    Striking Observation

    1. Massive Water Storage: Geological assessments indicate that Himalayan mountains may contain water volumes comparable to an “ocean’s worth” of stored water.

    Why are shear zones and tectonic stresses particularly dangerous?

    1. Shear Zones: High-strain zones create instability during excavation.
    2. Rock Deformation: Tectonic pressure continuously alters stress distribution.
    3. Collapse Risk: Excavation may trigger localized failures in weak zones.
    4. Dynamic Conditions: Geological conditions often change unexpectedly during drilling.
    5. Engineering Uncertainty: Tunnel design frequently requires real-time modification.

    What safety measures were adopted during the Zojila Tunnel project?

    1. Ventilation Infrastructure: Three shafts were constructed along the tunnel length.
    2. Emergency Response: Shafts provide access for rescue and evacuation operations.
    3. Deep Access Shafts: The first shaft is 474.3 m deep, making it the deepest in India.
    4. Additional Shafts: The second shaft is 367.5 m deep, while the third shaft is 213.5 m deep.
    5. Operational Safety: Ventilation systems ensure worker safety during construction and future operation.

    How does the New Austrian Tunnelling Method (NATM) help overcome Himalayan challenges?

    The New Austrian Tunneling Method (NATM) is a modern, observational tunneling approach that reinforces the surrounding rock or soil, allowing it to deform slightly and become part of the tunnel’s primary load-bearing structure.

    1. Selective Excavation: Facilitates controlled blasting based on rock conditions.
    2. Sequential Construction: Excavation proceeds in stages rather than full-face excavation.
    3. Top-Heading Method: Upper tunnel section is excavated first, followed by the lower section.
    4. Adaptive Design: Allows modifications according to changing geological conditions.
    5. Risk Reduction: Enhances stability in weak and variable rock formations.

    About the NATM

    Principle: “The surrounding rock mass itself becomes part of the support system.”

    Key Components

    1. Shotcrete: Sprayed concrete for immediate stabilization.
    2. Rock Bolts: Reinforce fractured rock.
    3. Monitoring Systems: Continuous assessment of rock behaviour.
    4. Flexible Design: Engineering response adjusted to site conditions.

    How are water and structural stability managed during excavation?

    1. Drainage Pipes: Facilitate controlled water discharge.
    2. Pressure Management: Prevents buildup of hydrostatic pressure.
    3. Rock Bolting: Stabilizes fractured rock masses.
    4. Shotcrete Lining: Binds loose rock surfaces.
    5. Alignment Modification: Tunnel route can be altered to bypass weak geological sections.
    6. Site-Specific Design: Tunnel shape and support configuration vary according to local conditions.

    Why does the Zojila Tunnel have strategic significance beyond engineering?

    1. All-Weather Connectivity: Reduces dependence on the seasonally closed Zojila Pass.
    2. Regional Integration: Strengthens connectivity between Kashmir and Ladakh.
    3. Defence Logistics: Improves movement of military personnel and supplies.
    4. Economic Development: Facilitates tourism, trade, and local livelihoods.
    5. National Infrastructure Capacity: Demonstrates India’s capability to execute mega-projects in difficult terrain.

    Conclusion

    The Zojila Tunnel demonstrates the intersection of strategic infrastructure, geological science, and engineering innovation in one of the world’s most challenging mountain environments. Its construction highlights the necessity of adaptive engineering, advanced tunnelling techniques, and robust safety systems for infrastructure development in the Himalayas. The project serves as a model for future high-altitude infrastructure while strengthening regional connectivity, national security, and economic integration.

    Value Addition

    Major Himalayan Infrastructure Projects

    1. Zojila Tunnel: Kashmir-Ladakh connectivity.
    2. Atal Tunnel: Rohtang Pass, Himachal Pradesh.
    3. Sela Tunnel: Arunachal Pradesh.
    4. Z-Morh Tunnel: Sonamarg connectivity.

    PYQ Relevance

    [UPSC 2016] The Himalayas are highly prone to landslides. Discuss the causes and suggest suitable measures of mitigation.

    Linkage: The question examines the geological fragility, instability, and hazard-prone nature of the Himalayan mountain system. The Zojila Tunnel highlights how young Himalayan geology creates major engineering and disaster-management challenges during infrastructure construction.

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  • FDI in Indian economy

    The reality behind falling net FDI 

    11 June 2026 | Explained | Economics
    Mains Paper 3: Indian Economy

    Why in the News?

    India’s net FDI has witnessed an extraordinary collapse, falling from almost $44 billion in 2020-21 to less than $1 billion in 2024-25, even as gross FDI inflows recovered to $94.6 billion. This sharp divergence has reignited debate over whether India is becoming a less attractive investment destination. 

    Why has India’s net FDI declined so sharply despite strong gross inflows?

    1. Net FDI Measurement: Net FDI under the Balance of Payments (BoP) framework is calculated after adjusting gross inflows for FDI-related outflows.
    2. Sharp Decline: Net FDI fell from nearly $44.0 billion in 2020-21 to less than $1 billion in 2024-25.
    3. Strong Gross Inflows: Gross FDI inflows recovered to $94.6 billion in 2025-26.
    4. Misleading Interpretation: Weak net FDI is often interpreted as a sign of declining investor confidence, while strong gross inflows are presented as evidence of economic strength.
    5. Underlying Reality: Both views overlook the changing composition of international capital flows and the mechanisms governing inflows and outflows.

    Does the conventional FDI debate overlook important structural changes?

    1. Incomplete Narrative: Public discourse focuses primarily on aggregate FDI numbers rather than the nature of investments.
    2. Changing Policy Priorities: India’s post-1991 FDI policy initially emphasised technology acquisition, export promotion, and foreign exchange conservation.
    3. Shift in Focus: Policy gradually prioritised attracting larger inflows, while concerns regarding future external payment obligations and investment quality received less attention.
    4. Need for Assessment: Evaluating FDI requires examining investor categories, sectoral allocation, and associated outflows rather than focusing solely on inflow volumes.

    What types of FDI are entering India and how do they differ in developmental impact?

    Traditional or Real FDI

    1. Source: Multinational enterprises investing directly in production and services.
    2. Contribution: Brings technology, brands, managerial capabilities, and production know-how.
    3. Impact: Supports long-term industrial development and employment generation.

    Financial Investor FDI

    1. Source: Private equity funds, venture capital funds, sovereign wealth funds, and asset managers.
    2. Objective: Capital appreciation rather than production expansion.
    3. Impact: Provides financial capital but contributes less to technology transfer and industrial capacity creation.

    Diaspora and SPV-Based Investments

    1. Mechanism: Capital raised abroad and channelled through offshore financial centres.
    2. Instrument: Special Purpose Vehicles (SPVs).
    3. Characteristic: Frequently associated with round-tripping of domestic funds.

    How has the composition of FDI changed in recent years?

    1. Real FDI Share: Accounted for only 41.9% of effective inflows between 2022-23 and 2025-26.
    2. Financial Investor Share: Contributed 40.5% of effective inflows.
    3. Diaspora/SPV Share: Represented 17.6% of total inflows.
    4. Developmental Concern: A rising share of financial investors and SPVs reduces the developmental gains usually associated with traditional FDI.
    5. Technology Transfer: Becomes weaker when investments are motivated primarily by financial returns rather than production activity.

    Why do rising investor exits matter for understanding net FDI trends?

    1. Exit Signals: Business model of financial investors involves eventual exits through stake sales and disinvestment.
    2. Large Exit Example: Singapore’s Temasek exited Schneider Electric India in 2025.
    3. Scale of Exit: Exit generated approximately $6.4 billion.
    4. Initial Investment: Around $637 million invested in 2020.
    5. Return Multiple: Approximately 45 times the original investment.
    6. PE and VC Exits: Foreign private equity and venture capital investors accounted for around $29 billion in outflows.
    7. Implication: Such exits substantially increase capital outflows and depress net FDI.

    Are gross FDI figures overstating actual fresh capital entering India?

    1. Accounting Inclusion: Gross FDI statistics include intra-group ownership reorganisations.
    2. Mergers and Acquisitions: Included even when no fresh capital enters the country.
    3. Share Swaps: Recorded as FDI transactions despite limited resource transfer.
    4. ECB Conversions: Conversion of external commercial borrowings into equity inflates inflow figures.
    5. Blind Spot: Gross FDI figures often fail to distinguish between fresh investment and accounting transactions.
    6. Illustrative Example: Large transactions involving Bosch and Mesee Technologies can significantly influence sectoral trends without necessarily bringing new productive capital.

    Why can high gross FDI figures create a misleading picture of investment performance?

    1. Gross FDI Recovery: Gross FDI inflows recovered to $94.6 billion, often cited as evidence of India’s continued attractiveness to foreign investors.
    2. Accounting Transactions: Gross FDI statistics include intra-group ownership restructuring, mergers and acquisitions, share swaps, and conversion of external commercial borrowings (ECBs) into equity.
    3. Limited Fresh Capital: Such transactions may alter ownership structures without necessarily bringing substantial new capital, technology, or productive capacity into the economy.
    4. Sectoral Distortions: Large corporate restructuring exercises can inflate FDI numbers and create an impression of strong investment activity in particular sectors.
    5. Developmental Concern: High gross inflows do not automatically translate into employment generation, manufacturing expansion, technology transfer, or export competitiveness.

    Why is the decline in manufacturing FDI a major concern?

    1. Four-Year Decline: Manufacturing FDI has fallen continuously for four consecutive years.
    2. Low Share: Manufacturing accounted for only 10.6% of total effective inflows during the latest four-year period.
    3. Industrial Consequences: Lower manufacturing investment weakens technology absorption and productive capacity creation.
    4. Employment Implications: Reduces potential for large-scale job creation.
    5. Strategic Concern: Limits India’s ambition to become a major global manufacturing hub.

    Does rising outward FDI represent globalisation or capital flight?

    1. Rapid Growth: India’s outward FDI has increased significantly.
    2. Sectoral Concentration: Around 45% of outward investments during 2023-24 to 2025-26 flowed into financial services, insurance, and business services.
    3. Destination Pattern: Singapore and the UAE accounted for approximately 27% and 11% respectively.
    4. Corporate Example: Tata Motors-owned subsidiary in Singapore invested $405 million to acquire IVECO Group in Italy.
    5. GIFT City Link: FDI routed through GIFT City increased from $246 million in 2023-24 to $1.8 billion in 2025-26.
    6. Extended Route: Total inflows and outward FDI through this channel reached approximately $1.40 billion, indicating expanding two-way flows.
    7. Dual Interpretation: Outward FDI may indicate both global expansion of Indian firms and relocation of capital across jurisdictions.

    How are FDI-related outflows reshaping India’s external sector?

    Disinvestment Outflows

    1. Magnitude: Disinvestment and capital withdrawals totalled approximately $178.9 billion.
    2. Drivers: Secondary sales, IPO exits, and share buybacks.

    Dividend Remittances

    1. Amount: Reached $118.9 billion.
    2. Source: Profits paid by multinational subsidiaries and affiliates, excluding reinvested earnings.

    Intellectual Property Payments

    1. Amount: Totalled $46.6 billion.
    2. Nature: Payments for intellectual property and royalty use.
    3. Estimated Allocation: Around 75% of total IPR payments assumed to be attributable to multinational subsidiaries and affiliates.

    Technical and Service Payments

    1. Amount: Around $250 billion transferred through technical and service/consultancy payments.
    2. Difficulty: Separation between foreign and domestic company payments remains challenging.

    Overall Outflows

    1. Adjusted Outflows: Even after excluding OFDI, technical service payments, dividends and IPR-related outflows, total outflows remained around $344.4 billion.
    2. Deteriorating Ratio: For every dollar of fresh inflow (excluding reinvested earnings), approximately $1.50 flowed out.
    3. Historical Comparison: Outflow per dollar of inflow rose from 56 cents (2014-15 to 2017-18) to 70 cents (2018-19 to 2021-22) before reaching the current high.

    Why should policymakers focus on the quality rather than the quantity of FDI?

    1. Technology Transfer: Real FDI contributes more effectively to technological upgrading.
    2. Industrial Development: Manufacturing-oriented FDI strengthens domestic production capabilities.
    3. External Sustainability: Excessive dependence on financial investors increases future outflow obligations.
    4. Investor Diversity: Different investor categories generate different developmental outcomes.
    5. Policy Evaluation: FDI performance should be assessed through technology gains, industrial capacity creation, employment generation, and external-sector implications rather than gross inflow figures alone.
    6. Core Message: Headline FDI numbers conceal important changes in investor composition, entry modes, exit strategies, and developmental impact.

    Conclusion

    India’s falling net FDI highlights that the quality and composition of foreign investment matter more than headline inflow numbers. Rising disinvestment, profit repatriation, and financial-investor-led flows have weakened net inflows despite strong gross FDI. Going forward, policy must prioritise productive, technology-intensive, and manufacturing-oriented FDI that strengthens industrial growth and external sector sustainability.

    Value Addition

    Net FDI vs Gross FDI

    IndicatorMeaning
    Gross FDITotal foreign investment entering the economy
    Net FDIGross inflows minus disinvestment and related outflows
    Effective FDIFresh capital inflows after excluding accounting and restructuring transactions

    Why Does the Quality of FDI Matters?

    1. Technology Spillovers: Enhances domestic productivity.
    2. Export Competitiveness: Strengthens manufacturing exports.
    3. Employment Effects: Creates direct and indirect jobs.
    4. External Sustainability: Limits future pressure from profit repatriation.
    5. Industrial Upgrading: Facilitates integration into Global Value Chains (GVCs).

    Risks of Financialised FDI

    1. Exit Risk: Generates large future outflows.
    2. Limited Technology Transfer: Weakens developmental benefits.
    3. Volatile Capital Flows: Increases external vulnerability.
    4. Short-Term Orientation: Prioritises capital gains over industrial expansion.

    PYQ Relevance

    [UPSC 2016] Justify the need for FDI for the development of the Indian economy. Why is there a gap between MOUs signed and actual FDIs? Suggest remedial steps to increase actual FDIs in India.

    Linkage: The question examines not merely the volume of FDI but its effectiveness, actual realization, and developmental contribution to the economy. The article highlights why the quality and developmental impact of FDI matter more than headline inflow numbers.

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  • Food Processing Industry: Issues and Developments

    SAPLING Dialogue 2026 Concludes

    11 June 2026 | PIBPrelims Only | Economics
    Mains Paper 3: Food Processing & Related Industries In India

    Why in the news?

    The two-day SAPLING (South Asian Policy Leadership for Improved Nutrition and Growth) Dialogue 2026 concluded on 10 June 2026 in Ahmedabad, Gujarat, with a call for a concrete action plan for the holistic development of the food processing sector in South Asia.

    About SAPLING Dialogue 2026

    • Jointly organised by: Ministry of Food Processing Industries (MoFPI), Government of India and World Bank Group
    • Venue: Ahmedabad, Gujarat
    • Duration: 9-10 June 2026
    • Participants: Around 200 delegates.

    Participants Included

    • Policymakers, Industry leaders, International organisations, Development partners, Researchers, Startups, Financial institutions, and Representatives from South Asian countries

    Theme

    “Unlocking Value: Advancing Food Processing for Employment Generation and Sustainable Growth in South Asia”

    Key Objectives

    • Strengthen resilient, inclusive and sustainable food systems in South Asia.
    • Promote regional cooperation in food processing.
    • Encourage value addition in agriculture.
    • Facilitate technology adoption in the sector.
    • Generate employment opportunities.
    • Enhance farmer incomes and rural development.
    • Support MSMEs and women entrepreneurs.

    [2023] Consider the following statements with reference to India:
    1. According to the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the ‘medium enterprises’ are those with and machinery between is crore and 25 crore.
    2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.
    Which of the statements given above is/are correct?

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

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  • Wildlife Conservation Efforts

    Axolotl: Mexico City’s Unofficial World Cup Mascot Facing Extinction

    11 June 2026 | Prelims OnlySpecies | Environment
    Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the news?

    Ahead of the 2026 FIFA World Cup, the axolotl has emerged as Mexico City’s unofficial mascot. However, conservationists have raised concerns that the popularity of the critically endangered amphibian has not translated into meaningful efforts to protect its rapidly disappearing habitat.

    About Axolotl

    • Common name: Axolotl
    • Scientific name: Ambystoma mexicanum
    • Group: Amphibian (salamander).
    • Endemic to: Mexico, particularly the canals of Xochimilco in Mexico City.
    • Name derived from: The Nahuatl word meaning “water monster”.

    Unique Features

    • Exhibits neoteny, retaining larval characteristics throughout its life.
    • Remains aquatic throughout its life cycle.
    • Breathes through External gills and oxygen absorption through its skin.
    • Extraordinary regenerative ability can regrow limbs, Parts of the spinal cord, Heart tissue, and Portions of the brain.

    Conservation Status

    • IUCN Red List: Critically Endangered.
    • Wild populations have witnessed a drastic decline.

    [2019] Consider the following statements:
    1. Asiatic lion is naturally found in India only.
    2. Double-humped camel is naturally found in India only.
    3. One-horned rhinoceros is naturally found in India only.
    Which of the statements given above is/are correct?

    [A] 1 only

    [B] 2 only

    [C] 1 and 3 only

    [D] 1, 2 and 3

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  • Foreign Policy Watch: India-China

    Taiwan Fires HIMARS in Anti-Invasion Drill

    11 June 2026 | Prelims Only | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Why in the news?

    Taiwan conducted a live-fire exercise using the High Mobility Artillery Rocket System (HIMARS) on its west coast for the first time, simulating strikes against an invading force from China and demonstrating its “shoot-and-scoot” capability.

    HIMARS (High Mobility Artillery Rocket System)

    • Full form: High Mobility Artillery Rocket System (HIMARS).
    • Manufacturer: Lockheed Martin.
    • Country of origin: United States.
    • Type: Wheeled Multiple Launch Rocket System (MLRS).
    • Mounted on: A 6×6 military truck chassis.
    • Designed for: Precision long-range strikes.

    Range

    • Approximately 300 km (190 miles) using long-range precision rockets.
    • From western Taiwan, it can potentially strike targets in China’s Fujian Province across the Taiwan Strait.

    What is “Shoot-and-Scoot”?

    • A battlefield tactic used by mobile artillery systems.
    • Involves:
      1. Moving to a firing position.
      2. Launching rockets.
      3. Immediately relocating before enemy counter-attacks.

    [2022] Which one of the following statements best reflects the issue with Senkaku Islands, sometimes mentioned in the news?

    a) It is generally believed that they are artificial islands made by a country around South China Sea.

    b) China and Japan engage in maritime disputes over these islands in East China Sea.
    c) A permanent American military base has been set up there to help Taiwan to increase its defence capabilities.
    d) Though International Court, of Justice declared them as no man’s land, some South-East Asian countries claim them.

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  • Modern Indian History-Events and Personalities

    Birsa Munda and the Evolution of Adivasi Identity and Rights

    11 June 2026 | Prelims Only | History
    Mains Paper 1: Modern Indian History

    Why in the news?

    On 9 June 2026, the death anniversary of Birsa Munda was observed across Jharkhand. Several tribal organisations pledged to protect his legacy amid renewed debates over the delisting of tribal converts from the Scheduled Tribes list, bringing Birsa’s ideas on Adivasi identity, land rights, and self-rule back into focus.

    Who was Birsa Munda?

    • Born: 15 November 1875, Ulihatu (present-day Jharkhand).
    • Died: 9 June 1900, Ranchi Jail.
    • Belonged to the Munda tribe.
    • Revered as:
      • Dharti Aba (“Father of the Earth”).
      • “Bhagwan” by followers.
    • Tribal leader, social reformer, religious preacher, and anti-colonial freedom fighter.

    Ulgulan (The Great Tumult)

    • Tribal uprising led by Birsa Munda during 1899-1900.
    • “Ulgulan” means Great Tumult.
    • Centred in the Chotanagpur Plateau.

    Causes

    • Encroachment on tribal lands.
    • Exploitative practices of:
      • British administration,
      • Zamindars,
      • Moneylenders,
      • “Dikus” (non-tribal outsiders).
    • Erosion of traditional tribal institutions.
    • Missionary influence and socio-cultural disruptions.

    Objectives

    • Restoration of traditional land rights.
    • End of British rule.
    • Expulsion of exploitative outsiders.
    • Establishment of tribal self-rule.

    Concept of “Disum”

    • Refers to self-rule or autonomous tribal governance.
    • Reflected Birsa’s vision of:
      • Adivasi sovereignty,
      • Community control over resources,
      • Cultural autonomy.

    Dombari Buru

    • Major centre of the Ulgulan.
    • In January 1899, thousands gathered to assert tribal rights.
    • British troops opened fire on the gathering.
    • Remembered in Adivasi memory as a massacre.
    • Became a symbol of tribal resistance.

    Khuntkatti System

    • Traditional Munda system of collective land ownership.
    • Village lands belonged to descendants of original settlers called Khuntkattidars.
    • Combined land rights with customary governance.

    Chotanagpur Tenancy (CNT) Act, 1908

    Background

    • Enacted following decades of tribal resistance, including Birsa’s movement.

    Objectives

    • Prevent transfer of tribal land to non-tribals.
    • Legally recognise customary tribal land rights.
    • Protect Khuntkatti tenure systems.

    [2020] With reference to the history of India, “Ulgulan” or the Great Trumult is the description of which of the following events?

    (a) The Revolt of 1857
    (b) The Mappila Rebellion of 1921
    (c) The Indigo Revolt of 1859-60
    (d) Birsa Munda’s Revolt of 1899-1900

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  • Foreign Policy Watch: India-United States

    US Court Strikes Down Trump’s $100,000 H-1B Fee

    11 June 2026 | Prelims Only | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Why in the news?

    A US federal judge struck down former President Donald Trump’s controversial $100,000 fee on new H-1B visas, ruling that the measure amounted to an unlawful tax that could not be imposed without Congressional approval.

    What is the H-1B Visa Programme?

    • The H-1B visa is a non-immigrant work visa issued by the United States.
    • It allows US employers to hire foreign workers in speciality occupations requiring at least a bachelor’s degree and Specialised knowledge.

    Major Sectors

    • Information Technology (IT), Engineering, Healthcare, Finance, Consulting, and Research

    Annual H-1B Cap

    • General Cap: 65,000 visas annually for most private employers.
    • Additional Cap: 20,000 visas reserved for holders of advanced degrees from US institutions.

    Cap Exempt Entities

    • The following can file H-1B petitions throughout the year: Universities, Non-profit research organisations, and government research institutions.

    In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis? (2019)

    1. The foreign currency earnings of India’s IT sector
    2. Increasing the government expenditure
    3. Remittances from Indians abroad

    Select the correct answer using the code given below.

    (a) 1 only

    (b) 1 and 3 only

    (c) 2 only

    (d) 1, 2 and 3

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  • Foreign Policy Watch: India-Myanmar

    [10th June 2026] The Hindu OpED: India’s road through Myanmar is one of engagement

    10 June 2026 | op-ed snap | International Relations
    Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    PYQ Relevance[UPSC 2022] India is an age-old friend of Sri Lanka. Discuss India’s role in the recent crisis in Sri Lanka in the light of the preceding statement.Linkage: The PYQ examines India’s approach towards political and economic instability in its neighbourhood. Similar to Sri Lanka, India’s engagement with Myanmar reflects a pragmatic neighbourhood policy that prioritises regional stability, connectivity, and strategic interests despite domestic political challenges.

    Mentor’s Comment

    Myanmar President U Min Aung Hlaing visited India from May 30 to June 3, 2026, marking the first visit by a Myanmar President to India since the 2021 military coup. The visit highlights New Delhi’s preference for pragmatic engagement over diplomatic isolation. The visit gains significance amid China’s growing influence in Myanmar, delays in India’s connectivity projects, instability along the India-Myanmar border, and the strategic importance of Myanmar in the Act East Policy.

    How Does Myanmar Occupy a Central Position in India’s Strategic Calculus?

    1. Geographical Gateway: Connects India directly with Southeast Asia and serves as the land bridge for the Act East Policy.
    2. Shared Border: Shares a 1,643-km border with four Northeastern States of India.
    3. Neighbourhood First Imperative: Ensures stability in India’s immediate strategic environment.
    4. Regional Connectivity: Supports physical, economic, and people-to-people integration with ASEAN.
    5. Strategic Buffer: Limits excessive external influence in India’s eastern neighbourhood.

    Why Has India Chosen Engagement Instead of Isolation?

    1. Pragmatic Diplomacy: Maintains engagement irrespective of Myanmar’s internal political arrangements.
    2. Strategic Necessity: Recognises Myanmar’s importance for connectivity, trade, and security interests.
    3. Policy Continuity: Foreign Secretary Vikram Misri reiterated that India does not intend to comment on Myanmar’s internal political arrangements.
    4. Regional Stability: Ensures sustained communication channels during political transitions.
    5. Counter-Isolation Approach: Prevents strategic vacuum creation in Myanmar.

    How Does China’s Expanding Influence Shape India’s Myanmar Policy?

    1. Strategic Competition: China has expanded engagement with Myanmar after the 2021 coup.
    2. Infrastructure Financing: Beijing filled gaps created by Western disengagement.
    3. Arms Supplies: Increased military cooperation with Myanmar authorities.
    4. Diplomatic Cover: Provides international support to Naypyidaw.
    5. Strategic Concern: Complete Chinese dominance in Myanmar would constrain India’s strategic space.

    Why Are Connectivity Projects Central to India’s Myanmar Engagement?

    Kaladan Multi-Modal Transit Transport Project

    1. Objective: Connects Kolkata to Sittwe Port by sea and further links Myanmar’s inland waterways and roads to Mizoram.
    2. Maritime Component: Operational.
    3. Riverine Component: Operational.
    4. Cargo Milestone: First cargo shipment reached Sittwe in May 2023.
    5. Critical Gap: 109-km Paletwa-Zorinpui Road remains incomplete.
    6. Target Completion: Full operationalisation targeted for 2027.

    India-Myanmar-Thailand Trilateral Highway

    1. Route: Moreh (Manipur) to Mae Sot (Thailand).
    2. Length: Approximately 1,360 km.
    3. Regional Ambition: Planned extensions to Cambodia, Laos, and Vietnam.
    4. Strategic Outcome: Converts Northeast India into a gateway to Southeast Asia.
    5. Implementation Challenge: Missed the original completion target of 2019.

    Significance of IMT for Northeast India

    1. Market Access: Expands export opportunities.
    2. Economic Integration: Facilitates participation in ASEAN supply chains.
    3. Infrastructure Development: Improves logistics and transport efficiency.
    4. Employment Generation: Supports trade-led economic growth.

    What Challenges Continue to Delay Connectivity Projects?

    1. Internal Conflict: Myanmar’s civil conflict has intensified since the 2021 coup.
    2. Territorial Control: Armed groups control large stretches along project corridors.
    3. Construction Disruptions: Security threats increase costs and delays.
    4. Administrative Constraints: Weak governance affects implementation.
    5. Political Uncertainty: Creates investment and operational risks.

    How Does Security Cooperation Influence Bilateral Relations?

    1. Counter-Insurgency Cooperation: Addresses activities of Indian insurgent groups operating from Myanmar.
      1. NSCN-K (National Socialist Council of Nagaland–Khaplang): Historically operated camps in Myanmar’s Sagaing Region and carried out activities in Nagaland, Manipur, and Arunachal Pradesh.
      2. ULFA (Independent): Maintained safe havens in Myanmar after being pushed out of Bangladesh; cadres reportedly used Myanmar’s border areas for training and logistics.
      3. PLA (People’s Liberation Army of Manipur): One of several Meitei insurgent groups that established bases across the border.
      4. UNLF (United National Liberation Front): Operated from Myanmar’s territory for decades before several leaders and cadres were apprehended or surrendered.
      5. PREPAK (People’s Revolutionary Party of Kangleipak) and KYKL (Kanglei Yawol Kanna Lup): Maintained camps in Myanmar’s remote border regions.
    2. Territorial Assurance: Myanmar reiterated that its territory would not be used against India.
    3. Cybercrime Cooperation: Joint efforts target transnational cyber-scam networks.
    4. Rescue Operations: More than 2,400 Indian nationals rescued from scam centres in the last 18 months.
    5. Border Management: Enhances coordination against illegal activities.

    How Can Economic Cooperation Deepen India-Myanmar Relations?

    1. Bilateral Trade: Reached approximately $1.95 billion during 2025-26.
    2. Rupee-Kyat Settlement Mechanism: Reduces dependence on third-country currencies.
    3. Critical Minerals Cooperation: Supports supply chain diversification.
    4. Rare Earth Cooperation: Enhances strategic resource security.
    5. Investment Potential: Strengthens regional economic integration.

    Conclusion

    Myanmar remains central to India’s Act East strategy, border security, and regional connectivity goals. The recent engagement reflects New Delhi’s pragmatic approach that prioritises strategic interests, recognising that sustained cooperation is essential for stability, connectivity, and balancing external influence in the region.

    Value Addition: 

    China’s Key Interests in Myanmar

    1. China-Myanmar Economic Corridor (CMEC): Connects Yunnan province with the Indian Ocean.
    2. Kyaukpyu Port: Provides maritime access bypassing the Malacca Strait.
    3. Energy Security: Facilitates oil and gas pipelines from the Bay of Bengal.
    4. Belt and Road Initiative (BRI): Expands China’s regional footprint.

    Major Ethnic Armed Organisations

    1. Kachin Independence Army (KIA): Active in northern Myanmar.
    2. Arakan Army (AA): Influential in Rakhine State.
    3. Karen National Union (KNU): Active in southeastern Myanmar.
    4. Three Brotherhood Alliance: Significant anti-junta coalition.

    Security Concerns Along the India-Myanmar Border

    1. Insurgency: Provides safe havens for Northeastern insurgent groups such as NSCN-K, ULFA(I), PLA, PREPAK and KYKL, complicating border security and counter-insurgency operations.
    2. Drug Trafficking: Myanmar forms part of the Golden Triangle (Myanmar-Laos-Thailand), one of the world’s largest narcotics-producing regions, facilitating the trafficking of heroin and synthetic drugs into India’s Northeast.
    3. Arms Smuggling: Enables illicit movement of small arms and ammunition through porous borders, strengthening insurgent and criminal networks.
    4. Human Trafficking: Facilitates cross-border trafficking of women, children and migrant workers through informal routes and weak border controls.
    5. Cyber Fraud Networks: Hosts transnational scam centres involved in online fraud, cryptocurrency scams and human trafficking; over 2,400 Indian nationals have been rescued through bilateral cooperation in the past 18 months.

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  • RBI Notifications

    Why higher interest rates may be need to bring in NRI deposits

    10 June 2026 | Explained | Economics
    Mains Paper 3: Indian Economy

    Why in the News?

    The RBI has allowed banks to raise fresh 3-5 year Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits from NRIs and deposit the money with the RBI under a special scheme until September 2026. The RBI will bear the cost of protecting banks from exchange rate fluctuations (hedging cost), making it cheaper and more profitable for banks to attract foreign currency deposits. The objective is to encourage more NRI dollars to flow into India and strengthen foreign exchange inflows.

    What are FCNR(B) deposits?

    1. They are fixed-term foreign currency deposits offered by Indian banks to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs). 
    2. They allow depositors to maintain savings in designated foreign currencies without converting funds into Indian rupees. 
    3. The RBI’s latest swap facility seeks to strengthen the attractiveness of these deposits and support India’s external financing requirements.

    What is the US Dollar-Rupee Forex Swap Facility for FCNR(B) Deposits?

    The Reserve Bank of India (RBI) introduced a special US Dollar-Rupee Forex Swap Facility to help banks mobilize fresh Foreign Currency Non-Resident, or FCNR(B) deposits. By bearing the hedging costs, the RBI enables banks to offer higher interest rates to NRIs without the currency risk. 

    Key details of the scheme include:

    1. Eligible Depositors: Available to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs).
    2. Deposit Tenure: 3 to 5 years. 
    3. Deposit Currency: Mobilized in any freely convertible currency, but the swap must be done in US Dollars.
      1. Foreign Currency Denomination: Maintains deposits in:
        1. US Dollar (USD)
        2. Pound Sterling (GBP)
        3. Euro (EUR)
        4. Japanese Yen (JPY)
        5. Australian Dollar (AUD)
        6. Canadian Dollar (CAD)
    4. Swap Rate: Undertaken “at par” (the RBI will buy USD at the FBIL Reference Rate and later sell it back at the same rate). 
    5. Timeline: Valid for deposits mobilized between June 8, 2026, and September 30, 2026. The swap window remains open to banks until October 16, 2026.
    6. Lock-in Period: Underlying deposits are subject to a 1-year lock-in period; however, the swaps undertaken with the RBI cannot be canceled. 
    7. Availability: Authorised Dealer Category-I banks can avail of this facility once a week.
    8. Exchange Rate Protection: Eliminates currency conversion risk associated with rupee deposits.
    9. Tax Benefit: Interest income remains exempt from Indian income tax while the depositor qualifies as a non-resident.
    10. Benchmark-Based Pricing: Interest rates are linked to internationally accepted benchmark rates.

    Why Has the RBI Reintroduced the FCNR(B) Swap Facility?

    1. External Sector Support: Facilitates mobilisation of stable foreign currency resources for the banking system.
    2. Concessional Swap Facility: Allows banks to swap FCNR(B) deposits with RBI at favourable rates.
    3. Hedging Cost Absorption: Transfers the foreign exchange hedging burden from banks to RBI.
    4. Capital Inflow Potential: Estimates suggest potential mobilisation of an additional $50-70 billion.
    5. Historical Policy Tool: Revives a mechanism previously used during periods of external vulnerability to strengthen foreign exchange inflows.

    Why Have FCNR(B) Deposit Inflows Declined Sharply?

    1. Collapse in Inflows: FY26 inflows declined by 86%, from $7.1 billion in FY25 to only $946 million.
    2. Global Interest Rate Differential: US and other developed market interest rates remain above 4%, offering attractive alternatives.
    3. Lower Domestic Offerings: FCNR(B) deposit rates remain significantly below comparable foreign currency investment products.
    4. Competition from Foreign Banks: NRI investors can earn higher returns without country-specific risks in advanced economies.
    5. Reduced Relative Attractiveness: Regulatory incentives alone may not offset yield differentials.
    6. Outstanding Stock Pressure: Total FCNR(B) deposits stood at $33.8 billion by March-end.

    Why Can Indian Banks Potentially Offer Higher FCNR(B) Rates Now?

    1. Hedging Cost Relief: RBI absorbs the cost of managing exchange rate risk.
    2. Margin Protection: Banks can increase deposit rates without significantly affecting profitability.
    3. Funding Diversification: Expands access to overseas funding sources.
    4. Improved Deposit Economics: Enhances viability of mobilising foreign currency deposits.
    5. Reduced Foreign Exchange Exposure: Minimises direct hedging obligations for banks.

    Why Are Banks Expected to Increase FCNR(B) Deposit Rates?

    1. Competitive Necessity: Requires matching global deposit opportunities available to NRIs.
    2. Yield-Based Decision Making: NRI investors are likely to compare returns across jurisdictions.
    3. US Market Competition: Higher yields available in US dollar-denominated products.
    4. Historical Evidence: FCNR(B) inflows have weakened significantly when global rate differentials widened.
    5. Deposit Mobilisation Objective: Higher rates remain essential for attracting meaningful inflows.

    What Are the Broader Macroeconomic Implications?

    1. Foreign Exchange Reserve Support: Strengthens reserve adequacy through stable foreign currency inflows.
    2. Balance of Payments Stability: Supports financing of current account requirements.
    3. Exchange Rate Management: Enhances RBI’s ability to manage rupee volatility.
    4. Banking Sector Liquidity: Expands long-term foreign currency funding.
    5. External Vulnerability Reduction: Reduces dependence on volatile portfolio flows.

    Conclusion

    The RBI’s decision to revive the FCNR(B) swap window reflects its proactive approach to strengthening India’s external sector amid a challenging global interest rate environment. While the facility reduces costs for banks and can potentially attract additional foreign currency inflows, its success will ultimately depend on whether banks offer sufficiently competitive returns to NRIs. Sustained mobilisation of FCNR(B) deposits can enhance foreign exchange reserves, support balance of payments stability, and reduce vulnerability to volatile capital flows, thereby reinforcing India’s macroeconomic resilience.

    Value Addition

    FCNR(B) Deposits vs NRE Deposits vs NRO Deposits

    FeatureFCNR(B)NRENRO
    Full FormForeign Currency Non-Resident (Bank) AccountNon-Resident External AccountNon-Resident Ordinary Account
    CurrencyForeign CurrencyIndian RupeeIndian Rupee
    Exchange Rate RiskNoYesYes
    RepatriabilityFully RepatriableFully RepatriableLimited Repatriability
    Tax on InterestTax ExemptTax ExemptTaxable
    Depositor EligibilityNRI/OCINRINRI

    Importance of NRI Deposits for India

    1. Stable Capital Source: Less volatile than Foreign Portfolio Investment (FPI) and other short-term capital flows.
    2. Foreign Exchange Augmentation: Supports accumulation of Foreign Exchange (Forex) Reserves.
    3. Banking Sector Funding: Provides long-term foreign currency liabilities to banks.
    4. External Financing: Supports financing of the Current Account Deficit (CAD) and other external sector requirements.
    5. Crisis Buffer: Acts as a source of foreign capital during periods of external stress and global financial uncertainty.

    RBI Instruments for Managing External Sector Stability

    1. FCNR(B) Swap Window: Mobilises foreign currency deposits from NRIs while reducing hedging costs for banks.
    2. Foreign Exchange (Forex) Market Intervention: Stabilises excessive exchange rate volatility in the rupee.
    3. Foreign Exchange Reserves: Provides a buffer against external shocks and capital outflows.
    4. Monetary Policy Operations: Influences liquidity conditions, interest rates, and capital flows.
    5. Macroprudential Measures: Manages systemic risks arising from volatile capital movements and financial market disruptions.

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