Context: The World Happiness Report 2025 was recently published. India is ranked 118th out of 147 countries in the latest edition.
Relevance of the Topic:Prelims: About World Happiness Report 2025
World Happiness Report
It is an annual global assessment that ranks countries based on life satisfaction and happiness levels.
Published by: Wellbeing Research Centre (University of Oxford) in partnership with Gallup, the UN Sustainable Development Solutions Network.
The report ranks global happiness basis survey data in over 140 countries.
Criteria for Ranking: Based on six key indicators- Social support, GDP per capita, Health- life expectancy, Freedom, Generosity and Perception of corruption.
Key Highlights of the Report
1. Global Highlights:
The report ranked Finland as the happiest country for the 8th consecutive year, while Afghanistan as the unhappiest country in the world.
The report highlights a concerning trend of young adults reporting the lowest well-being among all age groups.
2. India's Performance:
India ranks 118th out of 147 countries, improving its rank from 126th in 2023.
India's happiness score increased to 4.389, on a scale of 0-10. Zero denotes the worst possible life and 10 denotes the best possible life.
Key factors influencing India's Ranking:
India scored high in personal freedom which was at a five-year best.
India’s GDP per capita ranking has improved showing economic progress.
Perception of corruption in India has shown improvement.
However, India’srank below Nepal, Pakistan, Ukraine, and Palestine in the overall happiness, raises concerns about the methodology used in the report.
The report has suggested investing in education, employment and mental health services to improve the well-being of young adults and contribute to long-term national happiness.
Context: Grok, an AI chatbot developed by xAI, has sparked controversy due to its unfiltered responses on X (formerly Twitter). Some responses included misogynist slurs, misinformation claims, and politically charged statements highlighting the growing need for AI regulations to prevent misinformation and ensure accountability.
Relevance of the topic:
Prelims: Safe Harbour Principle.
Mains: Need to regulate AI.
Concerns associated with Generative AI and its Regulation
Amplify Misinformation: Generative AI systems if trained on biased data or developed with inherent biases, will generate biased outputs and prejudicial content. Since Grok allows direct publishing onto a social media platform (X), this content can spread unchecked and has a potential risk of faster dissemination of misinformation.
Lack of Transparency: AI Algorithms often have a black-box approach, i.e., one cannot thoroughly explain how the variables led to the resulting prediction. E.g., Grok’s AI-generated replies to users do not always carry citations or links to sources/web pages, limiting verifiability. This can further amplify misinformation.
Risk of Censorship: This may lead to companies self-censoring just due to fear of regulatory actions by governments. That creates a chilling effect on freedom of expression and can inhibit innovation.
Accountability for AI-generated output: Article 19(1)(a) grants freedom of speech but with reasonable restrictions.But these rights apply only to humans, and not AI systems. AI responses are machine-generated and lack personal intent. This makes it difficult to set legal accountability and determine liability for the responses made by AI.
Extension of Safe Harbour to AI: Social Media Intermediaries get safe harbour under the Section 79 of IT Act 2000. Grok is not a human user, but a computer program producing answers from massive internet data. This raises the question ofwhether safe harbour can be extended to AI-generated content.
Safe Harbour Principle:
Safe harbour is a legal provisionthat provides protection from a liability or penalty. Under Section 79 of IT Act 2000, intermediaries such as X, Meta etc. are protected from any legal liability for content posted on their platforms by the users.
As per the law, since the content posted on the social media platforms is owned by the users and does not belong to such companies, the provision gives them protection from prosecution.
Way Forward
Moderation of AI-bots by Developers: Developers should be more transparent about the datasets used for training to ensure diversity, and conduct thorough red-teaming and stress testing of AI bots to mitigate potential harms.
Extend liability on the deployer in the event of wilful neglect and when no adequate measures are taken to moderate outputs. However, liability on deployers may depend on a case-to-case basis. E.g., In 2024, Air Canada was directed by a civil court to honour a false refund policy made up by an AI chatbot on its website.
Strengthen International collaboration and regulations for the responsible development and deployment of generative AI models and Chat bots.
Legislators must continue to strike a balance between ethical duty, protecting digital rights and free expression and technological innovation.
Context: Public Accounts Committee slammed the Union Tourism ministry for poor implementation of its flagship scheme — Swadesh Darshan — launched in 2014-15. The audit report of the Comptroller and Auditor General of India had highlighted serious lapses in the formulation and execution of Swadesh Darshan Scheme.
Relevance of the Topic Prelims : Swadesh Darshan Scheme, Swadesh Darshan Scheme 2.0, Public Accounts Committee.
Key Issues identified by CAG Audit Report
The government had not carried out feasibility studies before launching the scheme.
The government has exceeded the sanctioned amount due to poor planning.
Approvals were given without Detailed Project Reports (DPRs) and there had been no formal mechanism for evaluation and approval.
Many projects remained incomplete or were non-functional. E.g., Kanwaria route in Bihar, Tribal circuit in Telangana, and Sree Narayana Guru Ashram in Kerala.
Swadesh Darshan Scheme
Launched in: 2014-15 by the Ministry of Tourism.
Aim: To promote, develop and harness the potential of tourism in India through integrated development of theme-based tourist circuits.
15 theme-based circuits have been identified for development.
Central Sector Scheme (100% funded by Central government).
Financial assistance is provided to State Governments, UT Administrations, and Central Agencies for tourism infrastructure development.
State/UT governments responsible for Operation & Maintenance (O&M) of sanctioned projects.
Swadesh Darshan Scheme 2.0
The Ministry of Tourism revamped the Swadesh Darshan Scheme in 2022.
Aim: To develop sustainable and responsible destinations following a tourist & destination-centric approach.
Strategic Objectives:
Enhance the contribution of tourism to local economies.
Create jobs including self-employment for local communities.
Enhance the skills of local youth in tourism and hospitality.
Increase private-sector investment in tourism and hospitality.
Preserve and enhance the local cultural and natural resources.
Public Account Committee (PAC)
PAC is one of the three financial committees of the Parliament (Estimates Committee and the Committee on Public Undertaking).
Set up first in 1921, under the Government of India Act of 1919.
At present, it consists of 22 members (15 from Lok Sabha; 7 from Rajya Sabha).
The members are elected by the Parliament every year from amongst its members, according to the principle of proportional representation by means of the single transferable vote. Thus, all parties get due representation in it.
Term of office of the members: One year.
A Minister cannot be elected as a member of the committee.
The Chairman of the committee is appointed from amongst its members by the Speaker. As per convention, the chairman is selected invariably from the Opposition.
Main Functions
Audit government spending: Reviews reports from the Comptroller and Auditor General (CAG) on government expenditure.
Ensure financial discipline: Checks if public money is spent as per parliamentary approval. Identifies cases of misuse, waste, or fraud in public funds.
Recommend corrective measures: Suggests policy changes to improve financial management.
Examine revenue collection: Reviews tax collection and other government earnings.
Context: Recently, the Government of India has revealed in Parliament that laws which declare a section of criminals as “habitual offenders” continue to operate in as many as 14 States and Union Territories.
Mains: Habitual offender laws- Background, Issues, Way Forward
Habitual Offender Laws
Habitual offender laws in India allow state authorities to identify and monitor individuals convicted of certain crimes repeatedly.
These laws were intended to control repeat offenders, but have come under heavy criticism for institutionalising discrimination- especially against denotified, nomadic, and semi-nomadic tribes (DNT, NT, SNT) communities (historically labelled as criminal tribes during British rule).
Evolution of Habitual Offender Laws:
Colonial Era Policies:
Post-Independence developments:
Repeal of Criminal Tribes Act (1952): Replaced with Habitual Offenders Acts by several states.
State enactments (1950s-1970s):
Madras Restriction of Habitual Offenders Act, 1948
Rajasthan Habitual Offenders Act, 1953
Similar laws in AP, Karnataka, UP, West Bengal, etc.
Observations of Important Committees & Reports:
Committee/Reports
Observations
CTA Enquiry Committee (1949-50)
Repeal of CTA and shift towards individual-based classification
Lokur Committee (1965)
Still viewed DNTs as having “anti-social heritage”
National Commission on DNT (2008, B.S. Renke Report)
Highlighted the continuing misuse of habitual offenders laws
Virginius Xaxa Committee (2014)
Linked habitual offender laws to systemic caste-based discrimination
United Nations (2007)
Recommended repeal due to racial and caste discrimination
Crimes under the Habitual Offender Tag:
State laws define habitual offenders based on prior convictions for specific offences, including:
Being a thug
Belonging to a gang of dacoits
Living on the earnings of prostitution
Various forms of lurking.
These laws typically involve maintaining registers of such offenders, which continue to echo the registration practices under the CTA. E.g., In states like Rajasthan, prison manuals even explicitly link habitual offender status to denotified communities.
Supreme Court’s stand on Habitual Offenders Classification (October 2024 Judgment):
The Supreme Court termed the classification “constitutionally suspect.” It observed that such laws unfairly target members of Denotified Tribes. The SC urged the state governments to review the necessity of these laws.
NCRB Data on Habitual Offenders (2022):
1.9% of India’s 1.29 lakh convicts are classified as habitual offenders. Delhi has the highest proportion (21.5%) of convicts categorised as habitual offenders.
Impact on Denotified Tribes:
Social consequences:
Continuous police harassment and wrongful arrests.
Discrimination in employment and social welfare schemes.
Stigmatisation of entire communities as "born criminals."
Legal and Human Rights concerns:
1998 Budhan Sabar Case: Death in police custody led to nationwide outrage.
DNT-RAG (Rights Action Group) Advocacy: Formed by Mahasweta Devi & G.N. Devy to fight for DNT rights.
NHRC (2000): Recommended repeal of habitual offenders laws.
United Nations (2007): Called for abolition citing human rights violations.
Arguments in favour of retaining the Laws:
Provides a framework for monitoring repeat criminals.
States argue that the law is intended for prevention, not harassment.
Some States (Gujarat, Goa) claim there is no misuse of the law.
Arguments supporting repealing the Laws:
Originates from colonial-era discriminatory laws. The Supreme Court and NHRC have flagged constitutional concerns.
Data shows disproportionate targeting of marginalised communities.
Many states have discontinued use, showing the law is redundant.
Way Forward
Judicial & Legislative review: States should conduct an objective analysis of the relevance of habitual offender laws. Ensure that legal frameworks do not stigmatise entire communities.
Alternative crime-prevention methods: Shift focus to rehabilitation and social reintegration programs.
Sensitisation: Train police forces to prevent discrimination against Denotified Tribes.
The debate over Habitual Offender Laws highlights the tension between crime control and human rights. With Supreme Court directives and international recommendations pushing for reform, the onus is now on State governments to ensure justice and equity in the legal system.
Context: Ranjani Srinivasan, an Indian doctoral student at Columbia University, left the U.S. after her visa was revoked, following accusations of being a "pro-Hamas sympathiser." A Palestinian student activist was arrested in the US for allegedly violating residency terms by supporting a U.S.-designated terrorist group.
These incidents have sparked a debate on whether immigrants have the same right to protest as citizens.
Relevance of the topic:
Prelims: International Covenant on Civil and Political Rights (ICCPR).
Mains: Comparison of U.S. First Amendment with Article 19 of the Indian Constitution (freedom of speech and expression), International Human Rights Law.
Do immigrants have the same Right to Protest as citizens under international human rights law?
According to Article 19 of the International Covenant on Civil and Political Rights (ICCPR), freedom of expression is a fundamental human right, and is extended to both citizens and immigrants.
Article 19(2) guarantees the right to seek, receive, and disseminate information across borders through various media.
Article 19(3) permits states to impose restrictions when necessary to safeguard national security or public order.
Additionally, other provisions of the ICCPR explicitly prohibit war propaganda and the advocacy of national, racial, or religious hatred that incites violence.
International Covenant on Civil and Political Rights:
ICCPR is a multilateral treaty that commits nations to respect the civil and political rights of individuals, including the right to life, freedom of religion, freedom of speech, freedom of assembly, electoral rights and rights to due process and a fair trial.
It was adopted by the United Nations General Assembly Resolution and entered into force in 1976.
As of 2024, it has 174 parties (India has signed as well as ratified ICCPR).
ICCPR forms a part of the International Bill of Human Rights, along with the International Covenant on Economic, Social and Cultural Rights (ICESCR) and the Universal Declaration of Human Rights (UDHR).
Compliance with the ICCPR is monitored by the United Nations Human Rights Committee.
Extent of Right to Protest depends upon the Host country
While international law affords immigrants the same right to protest as citizens, the extent of this right depends on the host country’s domestic legal framework.
The social contract that binds a government to its citizens does not necessarily extend to non-citizens in the same way, further entangling the legal and political framework governing these rights.
Some states enforce stricter regulations, whereas liberal democracies may adopt a more permissive stance.
First Amendment & Immigrant Rights in the U.S
The First Amendment extends free speech rights to non-citizens, but faces limitations in deportation proceedings. Green card holders have stronger protections than those on temporary visas and past precedents (e.g., Cold War deportations) show how political contexts influence enforcement.
The US Immigration and Nationality Act, 1952 authorises the denial of entry and deportation of non-citizens who endorse or support terrorist activities or organisations.
It empowers the Secretary of State to deport foreign nationals if their presence/ activities in the US would have potentially serious adverse foreign policy consequences.
With no clear definition of what constitutes “adverse foreign policy consequences”, the scope is broad making it highly susceptible to misuse.
In Holder v. Humanitarian Law Project (2010), the U.S. Supreme Court held that independent advocacy or mere membership in a government-designated terrorist organisation is protected speech under the First Amendment.
Impact on U.S. Soft Power & Global Standing
Decline in US Soft power and global influence. Crackdowns on immigrant protests can damage the U.S.'s image as a proponent of democratic values.
Such actions could also contribute to the erosion of democratic and liberal values worldwide.
If the U.S. begins weaponising laws to target individuals it disfavours, it risks legitimising similar actions by governments worldwide. This would contribute to a more repressive global environment.
Context: The Reserve Bank of India has conducted several dollar-rupee buy/sell swap auctions and open market operations since January 2025 to manage volatility in the forex market, and infuse liquidity into the banking system. These measures supplement the interest rate cut announced by the RBI Governor in February 2025 to boost economic activity.
Relevance of the topic:
Prelims: Exchange Rate system, Open market operations, Forex swap.
Mains: Indian Economy and Issues of Liquidity & Monetary Policy.
Reasons behind RBI Intervention
The Indian rupee follows a managed floating exchange rate regime. This means that the central bank (RBI) intervenes in the foreign exchange market to buy or sell dollars in order to stabilise the value of the rupee.
Due to several economic and geopolitical reasons, most emerging markets (including India), are experiencing a massive outflow of foreign portfolio capital.
E.g., Foreign investors have withdrawn approximately $29 billion from Indian equities in the period between October 2024 to March 2025, marking the largest outflow in any six-month period.
This has put pressure on the exchange rate, and the rupee sharply depreciated from 83.5/dollar on September 22, 2024, to cross 87.5/dollar on February 7, 2025.
Steps Taken by RBI:
1. Interest Rate Cut:
In February 2025, RBI reduced the Repo rate by 25 basis points to 6.25% (first cut in nearly 5 years).
An interest rate cut reduces the cost of borrowing and encourages domestic firms and households to spend more.
However, if liquidity in the banking system is inadequate, a rate cut may not be effective as banks’ ability to lend money will be limited. In such a scenario RBI can conduct open market operations.
2. Open Market Operations (OMOs):
In March 2025, RBI announced to conduct OMO purchases of government securities worth ₹1 lakh crore in two tranches of Rs 50,000 crore each.
The central bank’s buying (or selling) of government bonds to influence liquidity in the banking system is called an open market operation (OMO).
Bond Purchase → Increases liquidity (more money in the banking system).
Bond Sale → Reduces liquidity (less money in circulation).
Presently, RBI is buying government securities from the banks in exchange for domestic currency, thereby increasing liquidity in the banking system.
Impact of OMOs:
Short-term bond yields have fallen, making borrowing cheaper.
However, long-term bond yields remain high, meaning long-term investments are still costly.
The RBI may need to target long-term bond yields through further measures.
3. Dollar-Rupee Buy/Sell Swap Auction:
RBI has announced to conduct a USD/INR Buy/Sell Swap auction for ₹10 billion with a tenor of 36 months in March 2025. Earlier, RBI conducted a $5.1-billion swap in January 2025 for a six-month tenure.
A buy / sell forex swap by a central bank is an instrument where the central bank buys foreign currency from a commercial bank in exchange for domestic currencies, with a commitment to reverse the transaction at a predetermined future rate and date.
Objectives of Forex Swaps:
Liquidity Infusion – When RBI buys dollars, it injects rupees into the banking system, helping banks lend more.
Exchange Rate Stability – The dollar-rupee buy/sell swaps add dollars to the RBI’s forex reserve and improve the ability of the central bank to intervene in the forex market.
OMO and the forex swap have tried to create a pro-growth policy environment by infusing durable liquidity in the banking system and reducing volatility in the forex market. These measures are aimed at reversing the recent slowdown in India’s real GDP growth.
Way Forward
Continued Forex Market Intervention: The RBI should continue to use forex swaps tactically while keeping a watch on their effect on forward premia and exchange rate stability. E.g., Recent geopolitical events have resulted in a temporary softening of the US dollar against major currencies, bringing some relief to emerging markets such as India.
Focus on Long-Term Bond Yields: To make the environment more favourable for long-term investments, the RBI may consider calibrated steps like buying longer-term government papers via OMOs. E.g., Analogous interventions had worked well in earlier phases of economic slowdown (post-COVID recovery).
Monitoring Inflation Pressures: The RBI needs to tread carefully to contain inflation pressures while safeguarding growth, particularly when the government has re-oriented policy priorities by stimulating domestic consumption through tax cuts.
Context: The Finance Ministry has introduced a one-time, one-way switch facility from the Unified Pension Scheme (UPS) to the National Pension System (NPS).
From 1 April 2025, the government introduced the UPS as an option under the NPS for Central government employees. UPS will provide assured payouts to the employees.
Relevance of the Topic: Prelims: Key facts about the Unified Pension Scheme (UPS).
Key Features of the Unified Pension Scheme
Assured pension:50% of the employee’s average basic pay drawn over the last 12 months before superannuation for a minimum qualifying service of 25 years.
Assured minimum pension: In the case of superannuation after a minimum 10 years of service, the UPS provides for an assured minimum pension of Rs 10,000 per month.
Assured family pension: Upon a retiree’s death, their immediate family would be eligible for 60% of the pension last drawn by the retiree.
Inflation Indexation: Pension amounts are adjusted for inflation using the All India Consumer Price Index for Industrial Workers (Dearness Relief).
Lumpsum payment at superannuation: Subscribers receive a lump sum payment upon retirement, supplementing their regular pension.
Contributory Scheme: Similar to the National Pension System (NPS), the scheme is funded by contributions from:
Employees: 10% of their basic pay plus Dearness Allowance (DA).
Government: 18.5%.
Eligibility Criteria:
The UPS is applicable to the following categories of Central Government employees:
Existing employees: Those in service as of April 1, 2025, and currently covered under NPS.
New recruits: Individuals joining Central Government services on or after April 1, 2025.
Retired employees: Employees who were under NPS and have superannuated, voluntarily retired, or retired under Fundamental Rules 56(j) on or before March 31, 2025.
In cases where the subscriber has passed away prior to opting for UPS, the legally wedded spouse is eligible.
Implementation Timeline:
The regulations for the operationalisation of UPS come into effect from April 1, 2025.
National Pension Scheme:
NPS was a market-linked contribution scheme introduced by the Central Government. NPS replaced the Old Pension Scheme on 1st January, 2004.
The Pension Fund Regulatory and Development Authority (PFRDA) regulates and administers NPS under the PFRDA Act, 2013.
Need for NPS:
OPS had a fundamental problem, i.e. it was unfunded, there was no corpus specifically for pension.
Over time, this led to the government’s pension liability to balloon to fiscally unhealthy levels. The pension liabilities of the Centre jumped from Rs 3,272 in 1990-91 to Rs 1,90,886 crore in 2020-21.
Working of NPS:
The NPS was different from OPS in two fundamental ways.
It did away with an assured pension.
It would be funded by the employee himself/ herself, along with a matching contribution by the government.
The defined contribution comprised 10% of the basic pay and dearness allowance by the employee, and the government’s contribution of 14%.
Individuals under NPS can choose from a range of schemes and pension fund managers as well as private companies to invest their money contributed to NPS.
Opposition to NPS:
Under the NPS, government employees received lower guaranteed returns and had to contribute to their pension, unlike the OPS where there were no employee contributions and higher guaranteed returns.
Amid ongoing calls for a return to the OPS, the union government established a committee in 2023 led by T V Somanathan. The recommendations of the committee have led to the introduction of the new Unified Pension Scheme (UPS).
Comparing various Pension Schemes
Feature
Unified Pension Scheme (UPS)
New Pension Scheme (NPS)
Old Pension Scheme (OPS)
Type of Scheme
Hybrid (Assured pension + contribution-based)
Contribution-based
Defined benefit (assured pension)
Applicability
Central govt. employees; State government has option to adopt
Central and state government employees (except armed forces)
Central and state government employees before April 1, 2004.
Pension Guarantee
Minimum pension guaranteed
No assured pension; depends on market returns
50% of last drawn salary as pension guaranteed
Employee Contribution
10% of salary; govt. contributes 18.5%.
10% of salary; 14% by the government for central employees.
No contribution from employees (fully funded by govt)
Context: Tata Communications announced the launch of Vayu, an AI-powered cloud solution for enterprises.
Relevance of the Topic:Prelims: Key facts about Vayu: AI-Based Cloud Solution.
Vayu: AI-Based Cloud Solution
Developed by: Tata Communications Limited
Type: AI-based cloud solution
Aim: To tackle rising cloud costs, multi-cloud complexities, and Al infrastructure demands.
Key Features of Vayu Al Cloud:
Unified ecosystem: Guarantees seamless data accessibility across different environments (cloud to edge, data to AI, and security to connectivity) while maintaining data integrity.
Provides Integrated services: Infrastructure as a Service (IaaS), Platform as a Service (PaaS), GPU-as-a-service, AI platforms, security, cloud connectivity, and professional services.
Provides on-demand access to high-performance NVIDIA GPUs (eliminating costly infrastructure investments) and enabling seamless Al model training, fine-tuning, and deployment at scale.
Transparent pricing model: No data egress charges (for transferring data to the internet or another cloud provider) or other hidden fees. Reduces costs by 15-25% compared to large cloud service providers.
Relevance for India's Digital Economy:
Supports businesses in the intelligent enterprise era by optimising AI workloads and cloud-based services.
Aligns with India's push for digital transformation, data localisation, and cost-efficient cloud adoption.
Enhances India's position in cloud computing and AI-driven business solutions, contributing to technological self-reliance.
