The Indian Express

Indonesia joins BRICS bloc as full member

Context: Indonesia has formally joined the BRICS group, a bloc of emerging economies featuring India, Russia, China and others, viewed as a counterweight to the West.

Relevance of the topic:

Prelims: Key facts about BRICS; New Development Bank.

Mains: BRICS as platform for South-South Cooperation, challenges faced by BRICS.

What is BRICS?

BRICS is an intergovernmental organisation comprising ten countries – Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, United Arab Emirates and Indonesia.
- The acronym ‘BRIC’ was coined by economist Jim O'Neill in 2001.
- Founding countries of BRIC: Brazil, Russia, India, and China.
- First formal BRIC summit: Held in 2009 in Yekaterinburg, Russia
- South Africa joined BRIC in 2010, transforming BRIC to BRICS.
New members:
- In 2024, four new members- Egypt, Ethiopia, Iran, and the United Arab Emirates - joined BRICS as full-time permanent members.
- In 2025, Indonesia was admitted as a full member of the BRICS.
BRICS was conceived as a counterweight to the Group of Seven (G7) developed economies, made up of the United States, Canada, the United Kingdom, France, Germany, Italy and Japan.

Objectives:

To promote economic growth, strengthen cooperation in areas like trade, investment, and infrastructure.
Coordination in global governance and advocating for reforms in institutions like the United Nations (UN) and International Monetary Fund (IMF).
Cultural and social exchange by enhancing people-to-people connections.

Economic Importance:

BRICS+ represents over 45% of the world's population and accounts for around 35% of global GDP, based on purchasing power parity.
Growing influence in global trade and investment through the New Development Bank.
Contingent Reserve Arrangement (CRA) under BRICS USD 100 billion CRA is established to provide financial support to member countries in times of balance of payments crises.

New Development Bank:

The New Development Bank (NDB) is a multilateral development bank established by BRICS.
Objective: To mobilise resources for infrastructure and sustainable development projects in emerging markets and developing countries (EMDCs).
Initial authorised capital: $100 billion.
Headquarters: Shanghai, China.

BRICS as platform for South-South Cooperation:

BRICS grouping has emerged as a significant platform for fostering South-South cooperation in the evolving global order.

Diversified Representation: BRICS+ has included countries from Africa and Asia to enhance BRICS' representation of developing nations. Diverse BRICS gains legitimacy to advocate for Global South issues like fair-trade, climate justice, and technology access.
Economic Collaboration: Intra-BRICS integration encompasses free trade agreements and export-oriented strategies, including tariff exemptions and reductions. This has led to trade expansion, and rise in both inward and outward foreign direct investment.
Financial Independence:
- The New Development Bank (to finance infrastructure and development projects) is a credible alternative to existing financial institutions (IMF, World Bank dominated by western powers).
- BRICS nations have agreed to promote use of local currencies in trade. E.g., UAE and India trade in Rupees and Dirhams instead of the US Dollar.
- The plans to launch a common BRICS currency is under consideration.
Global Governance Reforms: BRICS have collectively called for reforms to the UN Security Council to include more representation from the Global South.
Technology Sharing: BRICS+ members share technology particularly in areas like digital payments and renewable energy. E.g., Collaboration in digital payment systems (India’s UPI and China’s Cross-Border Payment Systems).

Challenges faced by BRICS:

Diverse Interests:
- Member states have varying economic interests and geopolitical alignments which can hinder collective action. E.g., India and Brazil maintain strong ties with the US, while Russia and China adopt anti-West stances.
- New members like Iran and UAE add to the ideological diversity complicating consensus-building.
Lacks Institutional Framework: BRICS lacks formal treaty or secretariat, or enforcement mechanisms and thus relies on consensus-based decision-making. This makes it difficult for coordination and policy implementation.
External Pressures and Sanctions: BRICS members (particularly Russia) face economic sanctions from Western countries. This can limit their ability to cooperate and implement joint initiatives.
Internal Economic Challenges: Some BRICS members (such as Brazil and South Africa) face significant domestic economic challenges which can divert attention from regional cooperation.

BRICS+ marks an important step toward a multipolar world and empowerment of the Global South. However, the grouping needs to overcome internal divisions, address external pressures and build a strong institutional framework to meet its long-term goals and objectives.

Mystery of the Indus Valley Script

Context: The Chief Minister of Tamil Nadu has announced a $1 million prize for deciphering the script of the Indus Valley Civilisation.

Relevance of the Topic: Prelims: Key facts about Indus Valley Civilisation and Indus Valley Script.

About Indus Valley Civilisation

In 1924, Sir John Marshall announced the discovery of the Bronze Age culture or Harappan Civilization in the valley of the Indus between c. 3300 BCE and 1300 BCE.
IVC flourished in the northwestern regions of South Asia, primarily in present-day Pakistan and northwest India. Key archaeological sites include:
- Harappa (Punjab, Pakistan): One of the first sites to be excavated, giving its name to the civilisation.
- Mohenjo-daro (Sindh, Pakistan): Known for its advanced urban planning and the Great Bath.
- Dholavira (Gujarat, India): Notable for its unique water conservation system.
- Lothal (Gujarat, India): An important port city with a dockyard.
- Rakhigarhi (Haryana, India): One of the largest Harappan sites.

Indus Valley Script:

Harappan script is largely undeciphered. Attempts have been made to compare it with the contemporary scripts of Mesopotamia and Egypt, but it is the indigenous product of the Indus region and does not indicate any connection with the scripts of western Asia.
Key Features:
- Short inscriptions: Indus inscriptions are very short – with only about five characters on average – with the longest having only 26 characters.
- Boustrophedon script: Harappan script is boustrophedon, i.e., it is written from right to left on one line and then from left to right in the next line.
- Pictographic script: The Harappan script is not alphabetical but largely pictographic. There are about 250 to 400 pictographs in the form of a picture; each letter stands for some sound, idea, or object.
There are nearly 4000 specimens of Harappan writing on stone seals and other objects.
- Unlike the Egyptians and Mesopotamians, the Harappans did not write long inscriptions.
- Most inscriptions were recorded on seals and contain only a few words. These seals may have been used by the proprietors to mark and identify their private property.

US-India Civil Nuclear Cooperation

Context: The US National Security Advisor has announced that the United States is finalising steps to remove long-standing regulatory barriers that have hindered collaboration between American Nuclear companies and India’s leading energy institutions. Beyond the nuclear deal, the iCET initiative holds immense promise for the future of US-India ties

Relevance of the topic:

Prelims: US-India Civil Nuclear Agreement; Civil Liability for Nuclear Damage Act (CLNDA), 2010.

Mains: India-US Bilateral Regions: Technological Cooperations and Agreements.

Background- The Road to Civil Nuclear Cooperation:

1. India’s Nuclear Isolation:

India’s Peaceful Nuclear Explosion (PNE) in 1974 and its voluntary exclusion from the Non-Proliferation Treaty (NPT) led to India’s isolation from trade in nuclear power plant materials.

2. US-India Nuclear Deal:

The US-India Nuclear Deal or the US-India Civil Nuclear Agreement is a bilateral agreement signed between the US & India in 2008.
It is popularly known as the 123 Agreement.
Benefits:
- Ends India’s nuclear isolation and technology denial regimes against India.
- Enables India to have civil nuclear cooperation as an equal partner with the US and the rest of the world.
- Allows US companies to supply nuclear fuel and dual-use nuclear technology (including materials and equipment that could be used to enrich uranium or reprocess plutonium) for India’s civilian nuclear energy program.
- Enables India to meet the twin challenges of energy security and environmental sustainability.
India agrees to allow inspectors from the International Atomic Energy Association (IAEA), the United Nations’ nuclear watchdog group, access to its civilian nuclear program.

3. NSG India-specific Agreement:

In 2008, the Nuclear Suppliers Group (NSG) agreed on an India-specific exemption to its nuclear export guidelines after complex negotiations.
Following the NSG India-specific agreement, civil nuclear cooperation agreements have since been signed with the US, Russia, France, Australia and Kazakhstan, among other countries.
Note: India is not a member of the NSG, the main reason being its refusal to sign the Nuclear Non Proliferation Treaty (NPT).

Associated Challenges:

The Civil Nuclear Cooperation between India and US has faced numerous challenges over the years:

1. Nuclear Liability law of India:

India’s Nuclear Liability law (Civil Liability for Nuclear Damage Act, 2010) has been a barrier to the growth of the nuclear energy industry.
- India’s strict liability law places the burden of compensation for nuclear accidents on the plant operator, which can deter private companies from investing in nuclear power.
- Also, according to the Act, the liability can be shifted from the operator to the vendor or supplier in case the accident is due to equipment or material.
This has created apprehension among potential foreign suppliers, delaying India’s ambitious nuclear energy plans. E.g., Nuclear liability is the major issue why the deal to install French European Pressurised Reactors at Jaitapur, Maharashtra, has not made progress.

2. Limitations of the US Atomic Energy Act of 1954:

On the American side, a significant impediment is the ‘10CFR810’ authorisation (Part 810 of the US Atomic Energy Act of 1954), which gives US nuclear vendors the ability to export equipment to countries such as India under some strict safeguards.
However, it does not permit them to manufacture any nuclear equipment or perform any nuclear design work in India.

Civil Liability for Nuclear Damage Act (CLNDA), 2010:

India enacted CLNDA in 2010 to provide a quick compensation mechanism for victims of a nuclear accident.
The Act establishes a strict and no-fault liability for nuclear plant operators, meaning they are liable for damage regardless of fault.
However, the operator of the nuclear installation, after paying the compensation for nuclear damage shall have the right to recourse where-
- The nuclear incident has resulted as a consequence of an act of supplier or his employee, which includes supply of equipment or material with patent or latent defects or sub-standard services.
- The nuclear incident has resulted from the act of commission or omission of an individual done with the intent to cause nuclear damage.
The operator will have to maintain a financial security to cover its maximum liability of ₹1,500 crore for civil nuclear damage and requires the operator to cover liability through insurance or other financial security.
In case the damage claims exceed ₹1,500 crore, the gap will be bridged by the Central Government. The government liability amounts to the rupee equivalent of 300 million Special Drawing Rights (SDRs) or about ₹2,100 to ₹2,300 crore.

Recent Developments:

However, the National Security Advisor of the US has confirmed that the US is moving closer to formalising agreements that will facilitate the transfer of US nuclear technology to India, needed for India to expand its clean energy capacity.
- This includes removing Indian government entities from the US entity list, these could include: Bhabha Atomic Research Centre (BARC); Indira Gandhi Atomic Research Centre (IGCAR) and Indian Rare Earths Limited (IREL).
- The US Entity List is a list of foreign individuals, businesses, and organisations that are subject to export restrictions and licensing requirements for certain goods and technologies.
Additionally, the US-India collaboration in critical technologies is growing. The US-India Initiative on Critical and Emerging Technologies (iCET) has focused on cutting-edge fields like artificial intelligence, quantum computing, space, and defence.

Initiative on Critical and Emerging Technologies (iCET):

US-India iCET is a framework agreed upon by India and the U.S. to strengthen their strategic partnership and drive technology and defence industrial cooperation.
Launch: 2023
Objective: Fosters cooperation on critical and emerging technologies in areas including artificial intelligence, quantum computing, semiconductors, space and wireless telecommunication.
Significance:
- Facilitates dual-use technology transfer.
- Streamline defense and tech cooperation via frameworks like INDUS-X.

Significance of advancement of Nuclear Cooperation & iCET for India:

On the Nuclear front, iCET could pave the way for plans to jointly manufacture nuclear components for any new project in India by deploying American Atomic reactors.
Presently, India is over-reliant on Pressurised Heavy Water Reactors (PHWRs) for nuclear energy production, however, the Light Water Reactors (LWR) that are now the most dominant reactor type across the world.
Furthering Civil Nuclear Cooperation between India and US will allow India to deploy American Light Water Atomic Reactors.

Dr. Rajagopala Chidambaram

Context: Eminent Indian physicist and nuclear scientist Dr. Rajagopala Chidambaram passed away on January 4, 2025.

Relevance of the Topic: Mains: Contributions of Dr. Rajagopala Chidambaram.

About Dr. Rajagopala Chidambaram (1936-2025):

Born in 1936, Chidambaram was an alumnus of Presidency College, Chennai, Tamil Nadu and Indian Institute of Science Bengaluru, Karnataka.
His career comprises numerous prestigious positions he held, including:
- Principal Scientific Adviser to the government of India (2001–2018)
- Director of Bhabha Atomic Research Centre (1990-1993)
- Chairman of Atomic Energy Commission
- Secretary to the government of India, DAE (1993-2000).
He also served as chairman of the Board of Governors of the International Atomic Energy Agency (IAEA) (1994–1995).
He was honoured with Padma Shri in 1975 and the Padma Vibhushan in 1999 (for his stellar contributions to making India a nuclear weapons state).
His autobiography: India Rising (highlights his leadership in designing and executing the peaceful nuclear explosion experiment at Pokhran in 1974)

Contributions of Dr. R Chidambaram:

Development of India’s Nuclear Programme:
- He was integral to the Nation's first Nuclear Test in 1974.
- He led the Department of Atomic Energy team during the Pokhran-II nuclear tests in 1998.
- This makes him one of the rare atomic scientists who contributed to India’s both Nuclear tests:
  - Smiling Buddha (Pokhran) in 1974
  - Operation Shakti (Pokhran) in 1998.

Foundation for Modern Materials Science Research:
- His research in high-pressure physics, crystallography, and materials science significantly advanced the scientific community's understanding of these fields.
- His pioneering work laid the foundation for modern materials science research in India.

As Principal Scientific Advisor (2001-2018), he:
- set up the National Knowledge Network for high-speed connectivity to educational and research institutions.
- backed National Supercomputing Mission, Mission on Quantum Technologies, Laser Interferometer Gravitational Wave Observatory (LIGO) India (Indian node of LIGO to probe the universe) etc.
- established programmes such as the Rural Technology Action Groups and the Society for Electronic Transactions and Security.
- established rural technology laboratories at several engineering colleges.
- pushed for the development of cleaner and more efficient thermal power plants, backed research in Ayurveda.
- funded a number of projects that looked at integrating Ayurveda with modern medicine.

Dr. Chidambaram was a firm believer in self-reliance and strongly opposed reliance on imported technology. His unparalleled contributions furthered India's nuclear prowess and strategic self-reliance and his legacy will continue to inspire generations.

Needs of Indian Agriculture Sector

Context: Agriculture plays a significant role in India’s economic growth. However, India needs a robust and sustainable agricultural sector in the backdrop of climate change, high food inflation, low agricultural income and the vulnerable situation of the farmers.

Relevance of the Topic: Mains: Analytical questions on the state of Indian Agriculture.

Key aspects of Indian Agriculture Sector

In FY 2023-24, the share of agriculture in overall Gross Value Added (GVA) at current prices was 17.7%.
- The share of agriculture in total Gross Value Added (GVA) of the economy has declined from 35% in 1990-91 to 15% in 2022-23.
82% farmers in India are small and marginal in nature i.e., farmers with less than 2 hectare of land.
Disguised Unemployment: Indian agriculture is plagued with disguised unemployment where 49% of the workforce is engaged to contribute 17% in GVA.
Farm Poverty: Among the population who live below the poverty line, 22% are farmers, as per the situation assessment survey.
Monsoon Dependency: Over 52% of arable land is dependent on monsoon and does not have access to Irrigation.
Feminisation of Agriculture: Indian agriculture is dominated by the female laborers, as per Oxfam’s report 80% of Agriculture laborers are women.
Declining wages: The Periodic Labour Force Survey (PLFS) shows that real wages in rural areas (including farm wages) have stagnated and even marginally declined in the last five years.

Challenges and Reforms

Following are the various challenges in making agriculture sustainable and reforms needed to improve the condition of agriculture in India.

Aspect	Challenges	Reforms
Minimum Support Price (MSP)	The existing MSP is limited in scope leading to discrepancies among crops and regions.	Transition to a more inclusive system by considering crop diversification and extent of agriculture poverty across various regions. E.g., Swaminathan committees C2 method.
Agriculture Subsidies	Subsidies are more tilted towards populism instead of capital investment.	Rationalising the subsidies by eliminating indirect subsidies in the system with Direct benefit transfer to farmers under PM-FASAL scheme.
Fertilizers and Inputs	Prices of the fertilisers are regulated and are unrevised since 2012. This leads to over exploitation of inputs deteriorating productivity.	Deregulating the prices of fertilisers and providing DBT benefits instead of price subsidies.
Farmer Producer Organisations	FPOs are struggling with limited price discoveries and politicisation.	Focusing on democratisation of FPO and integrating them with Food processing industries for better price discovery.
Research and Development	India’s agricultural research and development expenditure has remained low (around 0.6% of its agricultural GDP).	Taking investment in agriculture R&D to 2% or more and organising hackathons for more gender neutral and easy to use equipment for farmers.
Climate Change	Changing weather patterns with extended heat and disrupted monsoon reduces productivity. E.g., 2024 was 0.9 degrees hotter than previous years causing crop failure in India.	Use of satellite technology to suggest the crops and sowing period to farmers on the basis of climate predictions.
Credit Assurance	Horticulture and agriculture allied sectors face challenges in adequate credit access and insurance over their produce.	Shift from the crop insurance to agriculture insurance by extending insurance facilities to the agriculture-allied activities.
Agriculture Extension	Limited access of farmers to agriculture extension activities.	Promoting training and digital literacy along with the training to youth in rural regions. E.g., Attracting and Retaining Youth in Agriculture (ARYA) scheme

Conclusion: Implementing these reforms could lead to a more resilient and prosperous agricultural sector, ensuring food security and improved livelihoods for farmers across India.

Plight of Migrant Workers

Context: According to a UNESCO report, internal migrants contribute to around 10% of India's GDP, however, migrant workers are often disregarded and considered forgotten citizens. The state mechanisms show lack of care and attention towards the plight of migrant workers.

Relevance of the Topic: Mains- Migration: Status, drivers, challenges associated, government initiatives and way forward.

Status of Migration in India

As per the Census 2011, the total number of internal migrants in India were estimated to be 450 million (37% of the country’s population).
- This had risen by 139 million from 315 million in 2001 in Census 2011 and 220 million in 1991, a doubling over 1991-2011.
As per NSS 2020-21 Survey: One in three Urban Indians is a ‘migrant’ but mostly intra-state. Among migrants, 55% have moved between villages, mostly women moving after marriage.
Marriage is a larger driver of migration than jobs for women. Jobs are the biggest reason for migration from men.
Himachal Pradesh and Telangana have the highest share of job-related migrants in their total urban male population.
Delhi has the highest share of persons (21.3%) who have come from outside its territory.

Drivers of Migration

Caste-based discrimination: Disadvantaged caste groups embrace migration as an opportunity to escape unfair practices in their villages, such as caste based discrimination in accessing employment, opting for other livelihood options.
Natural disasters and climatic conditions contribute to migration in search of livelihoods.
Uneven growth: The central, eastern and north-eastern parts of India have low levels of urbanisation, forcing workers to migrate to the southern and western regions, as they offer more employment opportunities.
Social mobility: Migration helps workers to finance expenses for marriage or to enhance their asset base, by means such as improving housing or even buying land.

Caste and Migration

According to NSS data, Scheduled Castes (SC) and Scheduled Tribes (ST) are over-represented in short-term migration streams and under-represented in long-term migration streams.
While a substantial portion of migration for all social categories is because of marriage, a high share of both the SC and non-SC/ST categories report migrating for employment.
Apart from economic reasons, Lower caste groups also migrate from rural to urban areas to escape from the caste-based discrimination in their source regions.
SC and ST migrants are largely confined to construction sector and other informal jobs due to poor skills and lack of social networking.

Issues of Migrant Population:

Official Invisibility: The migrant workforce is almost invisible in official data. This absence results in deprivation of social protection programmes offered by the state.
No Bargaining Power: Migrant Workforce is a highly diverse group. Hence, they lack any power to bargain collectively and are susceptible to exploitation.
Political Exclusion: Political parties do not always recognise migrants as a political constituency and respond to their concerns, since they most often don’t exercise their voting rights in destination places.
Exclusion from welfare schemes: Most of the welfare schemes are linked to the place of origin of the migrants. Lack of access to proper government documents (E.g., local address proof for voter ID) deprives them from accessing most govt schemes and policies.
Discontinuation of education: Seasonal migrants often take their children along when they migrate for work, which negatively impacts upon the regular and continued schooling of children.
Violence: Social exclusion and hostility against the migrants owing to rising sense of regionalism.

Government Intervention for Migrant Workers:

● e-SHRAM portal: To create a national database of unorganised workers seeded with Aadhaar. It is also to facilitate delivery of Social Security and welfare Schemes to such workers.

● One Nation One Ration Card: To create a technology system which will be used for enabling migrants to access Ration from any Fair Price Shop in India.

● Affordable Rental Housing Complexes (ARHC) for Migrant Workers/Urban Poor (under Pradhan Mantri Awas Yojana-Urban ): To cater to the housing needs of eligible beneficiaries.

● Code on Social Security, 2020: The code broadens the definition of an employee to encompass informal workers to extend the existing social security net. Under this central government will establish social security funds for informal workers, gig workers, and platform workers.

● Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM-SVANidhi): To offer affordable working capital loans to street vendors, enabling them to restart their livelihoods adversely affected by the Covid-19 lockdown.

● State Migrant Cell: Established to develop a database of migrant workers in various states, along with comprehensive mapping.

● Election Commission's remote voting plan for migrants: That would allow domestic migrants to vote in national and regional elections for enabling political inclusion of migrant workers so they can demand their entitlements.

Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979:

The Inter-state Migrant Workmen (Regulation of Employment and Conditions of Service) Act was enacted by the Government of India in 1979 to safeguard the interests of migrant workers.
● The act provides for payment of minimum wages, equal payment at par with local workers for similar work, payment of journey allowance, suitable accommodation, and medical facilities free of charge among others.
- Employers must obtain a licence from the relevant authority before employing a migrant worker. Migrant workers must be registered with the district magistrate before being employed.
- Principal employer: If a contractor does not pay wages and other benefits to migrant workers, the principal employer is responsible.
- Penalties: The penalty for violations of the act is up to one year in prison or a fine of up to Rs. 10,000.
Issues: The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979 has some issues, including:
- Poor Compliance: Many migrant workers are not registered with licensed contractors, which means they do not receive the benefits of the act. Migrant workers were recruited through agents/contractors to work on large construction and other projects from outside the state and this system lends itself to various abuses.
- India’s labour force remains largely informal and unorganised. However, there has been a lack of systematic data on unorganised workers.

Recommendations of NITI Aayog

To overcome the challenges faced by the migrants, NITI Aayog prepared a Draft policy on Migrant workers. Major recommendations of the policy are:

Rights-based Approach: This approach towards Migrant workers will lead to enhancing the agency and capability of the community.
Political inclusion of Migrant Workers to enhance accountability of political leadership towards welfare of migrant workers of their respective states.
Amending Inter State Migrant Workers Act, 1979 as the existing law protects only labourers migrating through a contractor, and left out independent migrants.
Collecting credible data on Migrants and Creation of a central database to help employers fill the gap between demand and supply and ensure maximum benefit of social welfare schemes.
Setting up Inter-State Coordination mechanisms and adopting strategies to check distress migration.

Addressing various challenges of Migrants is crucial for seamless migration of labourers across the country and economic unification of the country.

CII suggests 7-point Agenda for Employment Generation

Context: In the backdrop of the upcoming budget for FY26, Confederation of Indian Industry (CII) has proposed a 7-point agenda to boost employment generation in the country.

Relevance of the Topic: Mains: Analytical questions on concerns related to employment generation and suggestive measures.

About Unemployment in India

The official data source of Employment/ Unemployment indicator in India at present is the Periodic Labour Force Survey (PLFS) conducted by the Ministry of Statistics and Programme Implementation (MoSPI) since 2017-18.
As per the latest available Annual PLFS reports, the estimated Unemployment Rate (UR) for youth of age 15-29 years in the country in the year 2023-24 was 10.2%.
There exists a state of disguised unemployment in the agriculture sector which engages 45% of the labour force with only 16% of GVA contribution.
The growing unorganised and GIG sector in the economy poses challenges in job security, social benefits etc.

Suggestions by CII

India, with a median age of 29, is set to add 133 million people to its working-age population by 2050.

Integrated National Employment Policy: CII suggests focusing on drafting a comprehensive employment policy that consolidates various employment generating schemes across ministries and states to streamline efforts and maximise impact.
Data-driven employment insights: CII suggests developing a Universal Labour Information Management system (ULIMS) to provide insights of jobs, skill demand, training program etc.,
Boosting Labour-Intensive sectors: There should be a focus on labour intensive sectors like construction, textile, and tourism by national and international collaborations.
Empowering Rural Youth: As per CII, rural youth is in a limbo between reducing jobs and stagnant agriculture. Therefore, a rural internship program for college graduates could strengthen government initiatives in rural areas.
Increasing Female Workforce Participation: CII proposes CSR-funded creches in industrial clusters and formalisation of the care economy. These initiatives along with the women safety laws and women friendly work culture will enhance the job market by women participation.
Incentives for Hiring: CII advocated replacing section 80JJAA of tax provisions that will allow employers to avail enhanced deductions for hiring new employees.
Tapping Global Job Market: The provision for the International Mobility Authority under the MInistry of External Affairs will boost the job market for Indian youth. Focus should be on tapping international opportunities like H1B visas of the US and CECP with Australia.

Major Challenges in Employment Sector in India

Sub-optimal skill: Indian labour has a low formal training percentage i.e., 5% as compared to 95% of South Korea.
Employer hesitation: The stringent labour norms and additional compliances on the employer are swaying away from employers for new hirings.
Fragmented job market: Indian job market is highly fragmented in different sectors, this leads to the hurdles in hiring on the basis of specified skill demand.
Automation: The rise of AI and machine learning is further opposing the hiring of individuals.

Conclusion: Unemployment in India remains a pressing issue, with both structural and policy challenges to address. Leveraging India’s demographic dividend through targeted policies, skill development, and sectoral focus is essential for creating a sustainable and inclusive job market. The Union Budget 2025 provides an opportunity to address these concerns comprehensively.

Winter Char Dham Circuit

Context: In December 2024, the state government of Uttarakhand inaugurated the winter Char Dham circuit, aimed at drawing tourists to the state in the off-season winter months.

Relevance of the Topic:Prelims: Key facts about the Char Dhams and the Winter Char Dhams.

Char Dham in Uttarakhand

Char Dham are four revered Hindu shrines or dhams located in the Garhwal Himalayas in Uttarakhand.
- Gangotri: shrine of Goddess Ganga (Uttarkashi)
- Yamunotri: shrine of Goddess Yamuna (Uttarkashi)
- Kedarnath: shrine of Lord Shiva (Rudraprayag)
- Badrinath: shrine of Lord Vishnu (Chamoli)
Each year, from May to November, lakhs of pilgrims visit these shrines, accounting for roughly 8.4% of Uttarakhand’s annual domestic tourist footfall.

Winter Char Dham Circuit

During the winter months, heavy snowfall leaves Char Dham shrines inaccessible, and their gates are shut.
The presiding deities of these temples are brought to shrines at lower altitudes:
- Mukhba in Uttarkashi is the winter seat of Gangotri Dham
- Kharsali in Uttarkashi is the winter seat of Yamunotri Dham
- Omkareshwar Temple in Ukhimath, Rudraprayag is the winter seat for Kedarnath.
- Pandukeshwar in Chamoli is the winter seat for Badrinath.
The winter Char Dham circuit is aimed at drawing pilgrims to these shrines, and thus attract tourist footfall to Uttarakhand during off-season months.

Concerns:

The increased footfall of tourists leads to:

unnecessary overcrowding
commercialisation of the sacred sites
straining local infrastructure
degrading fragile ecosystems.

Winter Char Dham yatra might risk the safety, security and health of tourists, given the terrain and harsh weather in the mountain areas of Uttarakhand.
During winter, rare and threatened animals on the high mountain slopes and crests come down for food and water. Traffic during winters can cause disturbance for wildlife like snow leopard and mountain sheep.

Conclusion: As per the recommendation of the National Green Tribunal, the state government must ascertain the carrying capacity of the Char Dham to ensure the delicate balance of infrastructural construction and environmental considerations.

How in-flight Internet works?

Context: Tata Group’s Air India has announced the rollout of free in-flight Internet service on board domestic and international flights, making the group the first in India to offer internet connectivity on domestic flights.

Relevance of the Topic: Mains: Detailed question on working on the internet on flight.

Working of in-flight Internet

In-flight internet has various components that facilitates the connectivity:
- Aircraft antennas- There are two kinds of internet antennas in flight for different types of technologies.
  - ATG type antennas are underside the aircraft.
  - Satellite antennas are dome shaped mounted on the top of the aircraft.
- WiFi access point- Also known as cabin server that allows cabin to distribute the internet to passengers via Wi-Fi.
- Service provider- Service providers provide infrastructure to facilitate internet connectivity examples; Gogo, Starling etc.

There are two modes of the Transmission

Air-to-Ground (ATG) Systems:
- The aircraft connects to ground-based cellular towers designed to communicate with planes in flight.
- The system includes an antenna mounted underneath the aircraft that maintains a connection with ground stations.
- Data is transmitted back and forth between the airplane and the ground, similar to a mobile data network.
Satellite-Based Systems: The airplane connects to satellites orbiting the Earth to access the internet.
- Geostationary satellites and Low-Earth orbit satellites are used to transmit internet on the flight using dome shaped antennas.
- Various service providers like Starlink provide such services to the flights.

Step-by-step working of in-flight Internet

Connection Establishment: As aircraft are airborne, the onboard system activates the internet connection.
Data Transmission: Passenger generates the data request and on-board antenna sends signal to the satellite or the ground based facility.
Return Path: The response (E.g., the requested web page) follows the reverse path: from the internet backbone → ground station or satellite → aircraft antenna → onboard router → passenger’s device.
Seamless Handoffs: Both ATG and satellite based systems adjust connections during the flight’s movement.

Challenges to in-flight Internet

Limited bandwidth- The bandwidth shared with the passengers is limited and leads to slower speeds during peak usage.
Latency- Satellite systems have higher latency due to long distance of data travel.
Cost- The cost of in-flight internet is highly expensive in nature both during installation as well as in operations. E.g., Air India needs to spend $400 Million for retrofitting new aircraft.

New Emerging Technologies to enhance in-flight Internet Connectivity

LEO satellites: LEO systems like Starlink Aviation are revolutionizing the internet with faster speed and low latency.
Flat- Panel Antennas: These are smaller antennas for more efficient data sharing and reducing operational costs.
Integration with 5G: Emerging technologies aim to integrate in-flight internet with terrestrial 5G networks for better speed and reliability.

Conclusion: Air India’s step to provide internet on flight can be a game changer in the domestic airlines adding to quality of service and improving customer experience on flight.

Cash Transfers: Welfare Measure or Transactional Politics?

Context: Row over cash transfer promises ahead of the Delhi election raises a question: Are these schemes effective welfare measures or born of short-term transactional politics?

Relevance of the Topic:Mains: Cash Transfers- Pros and Cons, Way Forward

Cash Transfer Schemes in Indian Context

Cash Transfer Schemes are meant as a safety net for disadvantaged groups or to encourage better access and utilisation of health and educational services.
In India, one of the oldest national cash transfer schemes is the National Social Assistance Programme (NSAP), which provides pensions to the elderly, widowed and disabled who are unable to participate in economic activities.
But cash transfers have now become the new magic wand that can be used for any problem.

Politics in Cash Transfers

For political parties, cash transfer is the go-to solution for anything from women empowerment to agrarian distress to unemployment to poverty alleviation.
- For instance, incumbent governments in Maharashtra and Jharkhand successfully utilised cash transfer schemes targeted at women voters, contributing significantly to their re-election.
- Similarly, states like Telangana and Odisha adopted cash transfers to address agrarian distress.
These schemes have since been extended to tackle unemployment, with several states implementing or promising direct financial assistance for the unemployed. Whether these actually deliver on the issues at hand is hardly a consideration as long as they deliver on the political front.
Easy Implementation and Tangible results:
- The appeal of cash transfers lies in their simplicity and immediate results.
- Their fungible and unconditional nature makes them highly attractive to beneficiaries.
- With the improvement in financial inclusion, these schemes are easy to implement and provide direct, tangible benefits to voters.
- Such schemes also bypass bureaucratic inefficiencies and middlemen.

Arguments against Cash Transfer Schemes

Not a Panacea:
- The issue lies with the basic premise that cash transfers can resolve all problems. Such an approach trivialises the complexity of the issues at hand.
Encourage Competitive Populism:
- Cash transfer schemes create a tendency of competitive populism with political parties and governments vying with each other to increase the scale and scope of such transfers.
Need for Policy Interventions:
- Most reforms require policy interventions for sustainable results. However, these are incapable of producing tangible gains in the short run, thus encouraging political parties to resort to unsustainable cash transfer politics.
Unhealthy fiscal strains:
- Careless cash transfers create excessive fiscal strain on state and central government finances. This happens at the cost of essential spending on health, education, nutrition or basic infrastructure.
Decreased spending in beneficial schemes:
- While new cash transfers have been announced, spending on existing basic social protection has been cut short. Spending on NSAP, MGNREGA and the maternity-entitlement scheme remains frozen with decline in real terms.

Arguments supporting Cash Transfer Schemes

Women Empowerment:
- Need:
  - India ranks poorly in most global indices of women empowerment. The 2023 Global Gender Gap report by the World Economic Forum ranked India at 129 out of 146 countries.
  - India witnessed decreasing participation of women in the workforce in the first two decades of this century, despite stellar economic growth.
- Benefits of cash & in-kind transfers:
  - Directly allow women to tackle the multiple barriers they face in accessing education and job opportunities. Helps them to live a life of dignity.
  - For instance, Delhi’s free bus rides scheme for women led to a 24% increase in paid work and employment for women from marginalised sections of society.

Improved Standard of Life for the low & middle class:
- Delhi introduced multiple subsidies- free electricity, free water, etc.- targeted at the lower and middle classes.
- This has provided a crucial social safety net to these groups and allowed them to live a life of dignity. It has also boosted their purchasing power, which creates demand and supports economic growth.

Improvement in Social Growth Indicators:
- Evidence from 119 developing countries running unconditional cash assistance programs shows that recipients of these transfers increased their spending on nutrition, schooling and health.

Way Forward

Balance Welfare schemes with Development:
- Cash transfers should not happen at the cost of making adequate investments into building human capital or providing essential public services to all.
- For instance, the Delhi Model of governance has invested 40% of the annual budget in health and education. Delhi has also made investments in infrastructure and provision of essential public services- electricity, metro, green mobility, water pipelines, drainage amenities, etc.
- In comparison, most Indian states spend little on their crumbling education and public health systems, even as they have introduced cash transfers.
Assessing the implications on the State’s Finances:
- For instance,
  - Delhi’s budget consistently remained in revenue surplus over the past decade.
  - Delhi’s overall debt-to-GDP ratio reduced from 7% to 4% – among the lowest for any Indian state.
  - Delhi has shown resilient economic performance with the lowest inflation, among the lowest unemployment rates in India and GDP growth at par with rest of India.
- Likewise, it is necessary to ensure the states’ fiscal limits are not breached or overburdened with welfare measures.
Encourage Policy interventions:
- Policy reforms alone can produce sustainable results in the long run. This requires consensus-building across stakeholders with active participation and investment from the government machinery.

What is needed is a nuanced understanding of the role of cash transfers in supplementing and expanding the social safety nets rather than a quick-fix solution guaranteed to deliver political dividends. The costs of such profligacy in the long run are likely to be much more harmful than the short-term benefits they deliver.

Houthi Rebels becoming keystone of Iran's 'Axis of Resistance’

Context: With the end of Bashar-al-Assad's regime in Syria, the Houthi rebels have gained importance in Iran's axis of resistance against the US and Israel.

Relevance of the topic:

Prelims: Organisations and location based questions from the middle east.

Mains: Impact of middle-east tensions on India.

What is the Axis of Resistance?

The 'Axis of the Resistance’ refers to the political and military alliances led by Iran and is composed of state and non-state actors in the Middle-East.
The axis comprises Iran's Islamic Revolutionary Guard Corps (IRGC), Hezbollah in Lebanon, the Syrian armed forces, Hamas and the Palestinian Islamic Jihad (PIJ) in the Gaza Strip and the West Bank, certain militias in Iraq, and Houthi forces in Yemen.
Key goals of Alliance:
- Oppose Israel: The central ideology of the group is to oppose Israel advances in Gaza and help Palestine to gain control over the territory.
- Anti-American: The alliance is against the US military presence and its cultural influence in the middle east. Example: Islamic revolution in Iran demonstrated anti-Americanism.
- Regional Dominance: Axis of resistance focus on the dominance of the Shia sect of Islam, predominantly by creating a 'Shia crescent’ including Lebanon, Iraq and Syria.
- Resistance to Sunni powers: The alliance is focused against the Sunni-majority states including Saudi Arabia, and UAE as they are aligned with the US.
Means and modes used to sustain Ideology:
- Military campaigns as members are actively involved in several conflicts like Syrian civil war, Iraq fight against ISIS and Yemen's civil war.
- Proxy warfare by helping non-state actors like Hezbollah in Lebanon and Popular Mobilisation Forces (PMF).
- Diplomatic alliance- Axis is focused to counter USA by hand holding alliance with Russia and China for weapons and logistical support.

About Houthi Rebels

Houthis, originally known as Ansar Allah (i.e. supporters of God) are predominantly Shia Muslims and a political military group of Yemen.
The group is focused on opposing the USA and Israel. Also, they oppose Saudi Arabia and UAE to favour Sunni sects of Islam.

Role of Houthis in Axis of Resistance

Opposing US allies: The Houthis attack Saudi Arabia from the Yemen border as it is a US ally in the region.
Block trade: Location of Houthi is at a crucial choke point i.e., Bal el-Mandeb strait allows them to attack the vessels with short range rockets leading to damage or rise in vessel insurance premium, disrupting trade.
Symbol of resistance: Houthis continue terrorist attacks on Saudi Arabia and US supported Yemen government to show resistance.

Impact on India due to these regional dynamics:

Impacting energy security: Houthi attack on vessels can destabilise the Indian supply of crude oil via Bab el-Mandeb and Red Sea.
Expensive Maritime trade: Indian vessels due to attack by Houthis either take the route of Cape of Good Hope or need to pay heavy premium on vessel insurances. Both make maritime trade expensive for India.
Safety of India Diaspora: Any escalation in the situation leading to war like situation can risk the safety of 2.5 Million Indians in Saudi Arabia.
Geopolitical Challenge: Violence and continuous proxy-war will demean India efforts to balance relations with the US and Iran.
Spillover effect: In case of escalation the tensions may spill to the Horn of Africa making a new challenge to balance relations with Djibouti and Somalia.

What should be India's course of action in these complicated situations?

India should follow a pragmatic approach with a balance of Idealism containing values like humanity, peace and growth of the region.
India needs to strengthen trade ties with the Middle East, continuously engage with Iran, ensure diaspora security, build a strong naval presence in the Indian Ocean and diversify the energy basket to sail over the tides of challenges in the region.

India-Australia Trade Agreement

Context: The Ministry of Commerce has released data on Indo-Australian Trade relations, as nations visited the 2 year milestone of Indo-Australian Economic Cooperation and Trade Agreement (ETCA) trade deal.

Relevance of the topic:

Prelims: Basics of FTA, CEPA and ETCA.

Mains: Dynamics related to Indo-Australian trade relations; Issues related to CEPA.

Major Highlights:

Export utilisation of Indo-Australian Economic Cooperation and Trade Agreement (ETCA) has reached 79%. While the import utilisation has reached 84%.
- Trade Utilisation of a free trade agreement (FTA) indicates the extent to which the trade benefits from the agreement.
- It provides insights into whether businesses are effectively leveraging the FTA or finding its concession procedures burdensome.
Data also reveals that the trade between India and Australia has declined.
- As compared to $4.89 Billion during six months from April to September 2023, exports to Australia have declined to $3.99 Billion in the same period during 2024, marking a 18% decline.
- Imports also witnessed an 18% decline during the same period.

About Economic Cooperation and Trade Agreement (ECTA)

Economic Cooperation and Trade Agreement is a bilateral trade agreement aimed at enhancing the economic ties between India and Australia.
It was signed on April 2, 2022 and came into force in December 2022
Key aspects of ETCA:
- Tariff Reduction: Australia eliminated 96% tariffs on Indian goods. While India offered concessions in coal, wine and agricultural produce to Australia.
- Market access: Both nations provided market access to sectors like pharmaceuticals, education, healthcare and information technology.
- Enhanced professional mobility: Indian IT and healthcare professionals gain improved access to the Australian market.
- Rule of origin: Agreement includes rules of origin clause to avoid benefits to any third party.
ETCA can be considered as the foundational stone for the upcoming Comprehensive Economic Cooperation Agreement (CECA).

About Comprehensive Economic Cooperation Agreement (CECA)

The Comprehensive Economic Cooperation Agreement is an extension of the ETCA, for which negotiations are undergoing between India and Australia.
It aims at broadening the scope of the agreement including areas like investment protection, intellectual property rights (IPR), digital trade, government procurement and regulatory framework.
Key Goals of CECA:
- Comprehensive access to goods-services across various sectors involving finance, education, medical etc,.
- Enhanced mobility for skilled professionals, students and workers between the two nations.
- Digital trade collaboration to boost e-commerce
- Innovation collaboration in sustainable means like clean energy.
Concerns regarding CECA
- Agriculture and dairy sector farmers in India are apprehensive about increased Australian agriculture products reading their income due to competition.
- Labour mobility issue: India wants IT professionals, paramedic staff, students and workers to have free mobility. But Australia opposes these conceptions due to concerns of locals.
- IPR: Australia wants a strict IPR regime, while India on the other hand is concerned about these stricter norms as it can impact the generic drug market of India.
Current status: Negotiations for the CECA began following the success of the ETCA. Both countries have expressed strong political will to finalise the agreement, though there are certain sensitive issues like agriculture, intellectual property rights and labour mobility that require comprehensive discussion and consensus.

Conclusion: Both ETCA and CECA are crucial for boosting the trade between India and Australia. But concerns of farmers, labourers and professionals need to be taken under consideration with a detailed discussion. A well discussed development of CECA will open a new route for the Indo-Pacific Economic Framework (IPEF).