1) Uttarakhand’s UCC: Mandatory Registration of Live-in Relationships and Its Implications

GS 2: Polity and Governance: Uttarakhand’s UCC

Why is it in the news?

• Uttarakhand’s Uniform Civil Code (UCC), passed by the State Assembly in February 2024, mandates the registration of live-in relationships at both their commencement and termination. This requirement applies not only to residents of Uttarakhand but also to individuals from other states.
• The new rules, effective from January 27, 2025, impose extensive documentation requirements for registration. Legal experts argue that this move violates the right to privacy under Article 21 of the Constitution and contradicts the Supreme Court’s ruling in Justice K.S. Puttaswamy vs. Union of India, which protects informational privacy and decisional autonomy.

Mandatory Registration and Documentation

• Only unmarried, heterosexual couples are permitted to enter into live-in relationships under the UCC.
• Registration can be completed online or offline, requiring a 16-page form along with supporting documents such as photographs, PAN details, Aadhaar-linked phone numbers, and proof of residence. Rule 15(3)(e) specifies the need for extensive documentation, ensuring official recognition of the relationship.
• If either partner is between 18 and 21 years old, their parents or legal guardians must be notified of the registration and termination of the relationship.
• The registrar is legally obligated to send this notification, making parental involvement a compulsory aspect of the process.

Relationship History and Legal Restrictions

• The new rules equate live-in relationships with marriage by enforcing restrictions based on “degrees of prohibited relationships,” as defined in Schedule 1 of the Hindu Marriage Act, 1955.
• Couples related by blood must obtain approval from a religious or community leader certifying their eligibility to marry. The act prohibits marriage between close relatives unless permitted by local customs.
• Applicants must also disclose details of any previous live-in relationships and their current marital status—whether single, married, divorced, separated, or widowed. This requirement further aligns live-in relationships with traditional marriage laws.

Housing Regulations and Landlord Obligations

• Couples currently living together must provide proof of their shared residence, such as electricity or water bills. If they live in rented accommodation, they must submit the landlord’s contact details and rent agreement. The registrar is required to verify these details with the landlord before approving the registration.
• For couples who have not yet moved in together, a provisional certificate must be obtained first. They must secure accommodation within 30 days (extendable by 15 days) and then apply for final registration, providing proof of residence.
• Landlords are also legally bound to ensure that their tenants possess valid registration certificates before renting out their property. Failure to comply will result in penalties.

Penalties for Non-Compliance

• The registrar has the authority to investigate applications and ensure the relationship was not established through coercion, fraud, or misrepresentation.
• Failure to register a live-in relationship within a month can result in both civil and criminal penalties. A magistrate may impose imprisonment of up to three months, a fine of ₹10,000, or both.
• Providing false information or concealing relationship details carries stricter penalties, including up to three months of imprisonment, a fine of ₹25,000, or both.
• The registrar can issue notices for non-compliance, either suo motu or based on complaints. False complaints are also punishable, with repeat offenders facing increased fines.

Privacy Concerns and Expert Opinions

• Legal experts have raised concerns over the privacy implications of the new regulations. Some warn that these rules enable large-scale social surveillance. They argue that allowing third-party disclosures of personal data without sufficient safeguards could disproportionately affect interfaith and inter-caste couples.
• Additionally, the absence of penalties for third-party data leaks increases the risk of exposing personal information, leading to potential real-world threats. Critics believe this aspect of the law may lead to societal discrimination and unnecessary intrusion into private relationships.

2) Legal Systems of Citizenship Acquisition

GS 2: Polity and Governance: Citizenship Acquisitions

Why is it in the news?

• S. President Donald Trump issued an executive order restricting future U.S. citizenship to children whose parents hold U.S. citizenship or a Green Card.

Legal Principles

• Citizenship is considered the “right to have rights,” as described by Hannah Arendt. It is acquired based on two legal principles—jus soli (right of soil) and jus sanguinis (right of blood). GS 2:
• The jus soli principle grants citizenship based on birth within a country, regardless of parental nationality. Countries such as the U.S., Canada, Mexico, Brazil, and Argentina follow this system.
• On the other hand, jus sanguinis determines citizenship based on the nationality of one’s parents. Many countries, including Germany, Egypt, South Africa, and India, follow this principle.

Citizenship in the United States

• The United States follows the jus soli principle, as established by the 14th Amendment of the U.S. Constitution (1868). This amendment guarantees citizenship to all individuals born or naturalized in the U.S., irrespective of their parents’ nationality. The U.S. Supreme Court (1898) reaffirmed this interpretation.
• However, former President Donald Trump issued an executive order titled “Protecting the Meaning and Value of American Citizenship,” restricting birthright citizenship to children whose parents hold U.S. citizenship or a Green Card.
• This order, scheduled for implementation on February 19, was temporarily blocked by a federal court in Washington, which ruled it “blatantly unconstitutional.”

India’s Citizenship Laws

• India’s citizenship is governed by the Citizenship Act, 1955. Until June 1987, India followed jus soli, granting automatic citizenship to anyone born in the country. However, amendments introduced the jus sanguinis principle, making parental nationality a determining factor.
• Between July 1987 and December 2004, citizenship was granted only if at least one parent was an Indian citizen. Since December 2004, the law became stricter—both parents must be Indian citizens, or one parent must be an Indian citizen while the other must not be an illegal immigrant.
• These changes were mainly to prevent automatic citizenship for children of illegal immigrants, particularly from Bangladesh.

Citizenship Amendment Act, 2019 (CAA)

• The CAA, 2019 introduced accelerated citizenship for persecuted religious minorities—Hindus, Christians, Sikhs, Jains, Buddhists, and Parsis—from Pakistan, Afghanistan, and Bangladesh, provided they entered India before December 31, 2014.
• However, it excludes Muslims, marking the first time religion has been used as a criterion in India’s citizenship laws.
• Critics argue that this violates India’s secular principles, while the government justifies it as a humanitarian measure for persecuted religious minorities. The Supreme Court is set to rule on its constitutional validity.
• Meanwhile, the government must ensure that its implementation does not lead to unnecessary hardships, particularly for Indian Muslims.

3) Challenges and Ethical Implications of AI-Driven Genetic Testing

GS 3: Science and Technology:  AI-Driven Genetic Testing

Why is it in the news?

• The Human Genome Project, launched in 1990 and concluded in 2003, laid the foundation for understanding human DNA and predicting disease risks. Initially, genetic tests were costly and limited, used for detecting conditions like Down’s Syndrome in foetuses or cancer treatments.
• However, AI has revolutionized genomics, allowing for faster processing of genetic data, expanding the volume of data analyzed and increasing the potential for breakthrough discoveries in genetics.

AI’s Impact on Genomic Research

• AI technologies, such as machine learning, have significantly accelerated the analysis of genetic data. For example, researchers at Johns Hopkins University discovered genetic sequences previously overlooked, associating them with tumours.
• By analyzing over 1,200 types of “junk DNA” from cancerous cells, AI is enabling deeper research into new therapies and diagnostics.
• Startups like Gene Box are also harnessing AI to process vast amounts of genetic data, identify patterns, and provide personalized health recommendations grounded in the latest scientific evidence.

Challenges in Predictive Genetic Testing

• While AI-driven genetic testing can reveal insights into potential genetic risks, these tests are not always straightforward. For instance, genetic predispositions for diseases like Alzheimer’s do not guarantee the onset of the condition, as multiple factors contribute to the disease.
• AI predictions in non-medical areas, such as a child’s success in school or future career prospects, are similarly limited, as genetics only account for a small fraction of these outcomes.
• Moreover, AI predictions can be uncertain, especially with “variations of unknown significance” that require further familial testing to confirm.

Ethical Considerations in AI-Driven Genetic Testing

• AI-driven genetic testing also raises ethical concerns, particularly when dealing with sensitive health information such as mental health or hereditary diseases.
• Startups like Gene Box prioritize ethical guidelines when providing insights into genetic risks, aiming to guide proactive healthcare decisions rather than definitive diagnoses.
• The influence of external factors, such as environment, diet, and upbringing, also complicates the predictive accuracy of genetic testing.
• The growing use of AI in genetic testing has introduced concerns about data security. Companies like Nucleus, which aim to analyze genetic data for various traits and diseases, raise questions about data protection.
• In 2023, 23andMe, a prominent consumer genetic testing company, suffered a data breach where hackers accessed and sold the personal data of millions of users.
• Despite promises of enhanced security, the breach highlighted vulnerabilities in consumer genetic data security, especially when companies like 23andMe are not covered by stringent laws like Health Insurance Portability and Accountability Act (HIPAA). This raises critical questions about the future of personal genetic data.

The Future of AI in Genomics

• While concerns about data security and ethical issues persist, the AI-driven genomics sector continues to grow, attracting significant investment due to its long-term potential in personalized healthcare.
• As the demand for tailored health solutions increases, AI’s role in revolutionizing genetic testing and diagnostics remains a promising, though challenging, frontier.

4) World Wetlands Day and India’s Ramsar Sites

GS 3: Environment and Biodiversity: India’s Ramsar Sites

Why is it in the news?

• World Wetlands Day, celebrated annually on February 2, aims to raise awareness about the importance of wetland ecosystems. This year’s theme, “Protecting Wetlands for Our Common Future,” emphasizes the need for global conservation efforts.
• In connection with this, India announced four new Ramsar sites—Udhwa Lake in Jharkhand, Theerthangal and Sakkarakottai in Tamil Nadu, and Khecheopalri in Sikkim—under the Ramsar Convention, a global agreement on wetland conservation.

What Are Wetlands and Why Do They Matter?

• Wetlands are areas covered by water, either permanently or seasonally, such as marshes, lakes, and rivers. These ecosystems are essential for maintaining biodiversity, supporting aquatic species, and providing habitats for migratory birds.
• Wetlands play a critical role in water conservation, groundwater recharge, flood control, and supporting fisheries and local communities. Additionally, they act as carbon sinks, absorbing more carbon than they release, helping mitigate climate change.
• The Ramsar Convention, established in 1971, defines wetlands as areas of marsh, fen, peatland, or water, whether natural or artificial, and emphasizes their global importance for biodiversity and ecosystem services.

Significant Wetlands in India

• India is home to 89 Ramsar sites, recognized for their international significance. A wetland is designated under the Ramsar Convention if it supports critical species or habitats, especially during important stages in their life cycles.
• Tamil Nadu leads with 20 Ramsar sites, while Punjab has six significant wetlands, including the Harike Wetlands, which are North India’s largest.

1) Harike Wetlands: Designated as a Ramsar site in 1990, this wetland is a vital habitat for migratory birds like Siberian cranes and bar-headed geese.

2) Kanjli Wetlands: Located in Kapurthala district, this site hosts a variety of fish species, turtles, and migratory birds.

3) Ropar Wetlands: Situated along the Sutlej River, these wetlands are home to numerous aquatic species and birds.

4) Nangal Wetlands: Part of the Bhakra-Nangal reservoir, these wetlands attract over 40,000 migratory birds annually.

5) Beas Conservation Reserve: Located near the Beas River, this reserve is known for its Indus River dolphins, freshwater fish, and turtles.

6) Ranjit Sagar Wetlands: Formed after the creation of the Ranjit Sagar Dam, this site is home to otters and migratory birds.

Decline in Migratory Bird Populations in Punjab

• A recent bird census by Punjab’s Department of Forests and Wildlife Conservation revealed a concerning decline in migratory bird populations across the state’s wetlands.
• From 2022-23 to 2023-24, the total bird count at six protected wetlands dropped by 13.7%, from 85,882 to 74,129. The Kanjli Wetland witnessed the most significant decline, with numbers plummeting nearly 50%, from 1,190 in 2021-22 to just 600 in 2023-24.
• While the number of bird species increased slightly, from 107 to 114, the overall trend reflects a worrying decline in biodiversity.

Threats to Wetlands in Punjab

• The major threats to wetlands, both globally and in Punjab, stem from human activities that degrade these vital ecosystems. In Punjab, industrial waste discharge from factories near Harike, Ropar, and Kanjli wetlands contributes to water pollution.
• Additionally, illegal sand mining in riverbeds disrupts water retention and aquatic life, while the use of pesticides and fertilizers in nearby agricultural fields further harms wetland ecosystems. The polluted Budha Nallah in Ludhiana also affects the Sutlej River, which eventually reaches Harike Wetlands.
• Climate change and rising temperatures are exacerbating these challenges, further endangering wetland biodiversity and their ecological functions.

Conservation Measures for Wetlands

• To address the degradation of wetlands, several conservation measures have been suggested. These include afforestation with native tree species, soil conservation efforts, stricter controls on illegal mining, and increased public awareness about the importance of wetlands.
• Such initiatives can help protect these crucial ecosystems, ensuring their role in supporting biodiversity, water conservation, and climate change mitigation.

5)  Union Budget 2025-26: Tax Cuts and the Quest for Economic Growth

GS 3: Economy: Union Budget 2025-26

Why is it in the news?

• The Union Budget 2025-26, presented by Finance Minister, comes at a time when India’s economy faces several challenges. Despite structural reforms over the past few years, such as the introduction of Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC), the economy has experienced a slowdown.
• The most significant indicator of this stagnation has been the decline in personal consumption, a key driver of economic activity. This reduction in consumption has been linked to poor job creation, with the economy primarily creating low-income self-employment opportunities, especially for women.
• Additionally, household debt has risen to 41% of GDP in FY24, up from 37.9% in FY23, contributing further to economic strain.

Impact of Poor Job Creation

• The government’s focus on capital-intensive production over the years, including subsidies for large companies through schemes like the Production-linked Incentive (PLI), has failed to generate sufficient employment opportunities. Meanwhile, sectors that typically generate more jobs, such as textiles and leather, have suffered.
• The strategy of reducing the government’s role in the economy to allow the private sector to drive growth, coupled with significant capital expenditure on physical infrastructure, did not yield the expected results.
• Job creation remained low, and the number of people employed in manufacturing halved between 2016 and 2020. This resulted in a reverse migration from industry to agriculture, contributing to rising inequality and a weaker consumer base.

Government’s Response to Economic Challenges

• The government’s response to the economic downturn included a corporate tax cut in 2019, hoping to incentivize businesses to invest and create jobs. Despite high levels of government spending on infrastructure and a corporate tax reduction, India’s GDP growth has remained sluggish, averaging less than 5% annually since 2019.
• The government has faced frustration as the private sector has not increased investments as expected, despite favourable tax policies and infrastructure development. Finance Minister even questioned whether the private sector was unaware of its potential to invest.

Shift in Strategy: The Income Tax Cut

• In a bid to boost consumer demand, the Union Budget 2025-26 introduced a significant personal income tax cut. This move represents a shift in the government’s strategy, acknowledging that the previous corporate tax cut in 2019, which aimed to boost supply, had not adequately addressed the demand-side issues.
• The government hopes that the Rs 1 lakh crore loss in revenue from this tax cut will be spent by consumers, which will, in turn, drive private sector investments in new capacities and job creation. The hope is that the increase in consumer spending will spark economic growth by stimulating demand.

Economic Impact of the Tax Cut

• Experts believe the income tax cut will have a positive effect on the economy, as it is expected to increase consumer spending, which is a critical factor for economic recovery.
• N R Bhanumurthy, an economist, highlighted that the multiplier effect of a personal income tax cut could grow GDP by Rs 1.01 for every rupee spent. However, the overall impact may be limited due to the relatively small size of the additional Rs 1 lakh crore in the context of India’s total GDP.
• The total private final consumption expenditure in India is around Rs 200 lakh crore, making the additional amount a small change in the larger economic landscape.

Potential Limitations of the Tax Cut

• While the tax cut may provide an initial boost, the question remains whether it will be enough to trigger a virtuous cycle of economic growth. Some experts argue that the amount is not sufficient to sustain long-term consumption if the broader economic conditions do not improve.
• The total number of income tax payers in India is small in relation to the population, which may limit the broader impact of the tax cuts. Moreover, if increased consumer spending is directed towards imported goods, it could lead to higher imports and inflation rather than strengthening the domestic economy.

Lack of a Comprehensive Growth Strategy

• A key issue with the current Budget is the absence of a comprehensive strategy for long-term economic growth. Without addressing the structural issues hindering income growth and employment generation, the tax cuts alone may not lead to sustained recovery.
• Experts point out that while tax cuts may provide a short-term boost, they cannot sustain consumption if economic growth does not improve. They also suggest that a reversal in the sequencing of policy interventions—starting with tax cuts for individuals and followed by corporate tax reductions—could have yielded better results.

Conclusion

• The Union Budget 2025-26’s income tax cut is a significant move aimed at boosting consumption and, indirectly, private sector investment. However, the impact of this policy will depend on its ability to stimulate demand and ensure that the money is spent in ways that support domestic industries.
• While the tax cuts may provide short-term relief, a more comprehensive strategy is required to address the deeper structural issues in India’s economy, including low-income growth, poor job creation, and a limited consumer base.

6) Key Takeaways from the Union Budget 2025-26

GS 3: Economy: Union Budget 2025-26

Why is it in the news?

• Finance Minister presented the second Union Budget for the third term of the BJP-led Modi government on 1^st Feb 2025.
• Leading up to the Budget, it was evident that the Indian economy was struggling with sluggish growth. India’s GDP has grown at an average of less than 5% annually since 2019, and below 6% since 2014.

Here are the five key takeaways from the Union Budget 2025-26

   1. Massive Income Tax Cuts, More Money in Hands of Taxpayers

• Discontent among the middle class regarding high taxes led to expectations of tax relief in the Budget. Finance Minister surprised many by announcing substantial income tax cuts. The tax rebate level was raised to Rs 12 lakh per annum, up from Rs 7 lakh, benefiting a larger segment of taxpayers.
• Additionally, tax slabs were restructured, with the highest tax rate of 30% applying only to incomes above Rs 24 lakh per annum (Rs 2 lakh per month).
• The government hopes that this additional disposable income will stimulate consumer spending, thus encouraging businesses to invest in new capacities, creating jobs and fostering economic growth.

   2. Fiscal Discipline Maintained, Deficit to Reduce Despite Foregone Revenue

• While tax cuts often raise concerns about overspending and increasing government debt, the Finance Minister assured that fiscal discipline remains intact. Despite the Rs 1 lakh crore revenue loss from the tax cuts, the fiscal deficit is projected to decrease to 4.4% of GDP in 2025-26.
• This approach aims to maintain a balance between providing relief to citizens and ensuring long-term financial stability without excessive borrowing, which could lead to higher interest rates or inflation.

  3. Capital Expenditure Growth Stalls, Signalling Shift Away from Recent Budgets

• A notable shift in the Union Budget 2025-26 is the slowdown in the growth of capital expenditure (capex). In previous years, the focus was on increasing government spending on productive assets like roads, ports, and bridges.
• However, the government missed its capital expenditure target for the current fiscal year by nearly Rs 1 lakh crore, and the capex allocation for the next financial year is only marginally higher by Rs 10,000 crore.
• Although the capex figure remains high by historical standards, this indicates a shift from the capital-intensive policies of previous years.

   4. Focus on Employment Generation, Visible in Attempt to Boost Specific Sectors

• A major policy shift in this year’s budget is the increased focus on employment generation. The government has been criticized for its past focus on capital-intensive measures, such as the Production-Linked Incentive (PLI) scheme, which favoured capital-heavy ventures over labour-intensive sectors.
• This Budget reverses that trend by focusing on sectors like textiles and leather, which are known for their ability to create more jobs for the same level of economic output.
• The government aims to boost employment through these initiatives, addressing concerns about job creation in the economy.

   5. Push for Regulatory Reforms, A Late but Welcome Step

• The Finance Minister also announced the creation of a committee to explore regulatory reforms aimed at improving the ease of doing business in India. This is seen as a positive step, though some critics argue that it is overdue, as such reforms were expected much earlier in the Modi government’s tenure.
• This move, 11 years after the government first came to power, signals a late but crucial effort to streamline business operations and attract investments by simplifying regulations.

7) Border Fencing Dispute Between India and Bangladesh

GS 2: International Relations: India-Bangladesh Relations 

Why is it in the news?

• India shares its longest international border of 4,096 km with Bangladesh. Following a regime change in Bangladesh in August 2024, tensions over border fencing have emerged, with disputes arising in several locations.
• Bangladeshi officials claim fencing-related issues at five border points, while the Indian government remains committed to maintaining a secure, crime-free border. As of 2023-24, about 78% (3,196.7 km) of the India-Bangladesh border has been fenced.
• The border passes through five Indian states—Assam, Meghalaya, Mizoram, Tripura, and West Bengal—under the surveillance of six BSF frontiers. However, fencing coverage varies across regions due to difficult terrain and closely settled habitations.
• The Meghalaya Frontier has achieved 82.8% fencing (367 km of 443 km), while the South Bengal Frontier, spanning 913 km from Sundarbans to Malda, has only 44% fenced (405 km). The South Bengal Frontier also includes 364 km of riverine borders along the Ichamati and Padma rivers, making fencing more challenging.

Challenges in Fencing the Border

• Several factors hinder the completion of border fencing. The riverine terrain, particularly in South Bengal, and the presence of chars (silt land formations) pose geographical
• Additionally, some border residents oppose fencing as it restricts their access to land situated near the international boundary. These obstacles contribute to the disparities in fencing across different frontiers.

Protocols for Border Fencing

• As per the 1975 Joint India-Bangladesh Guidelines for Border Authorities, no armed personnel or security forces are allowed within 150 yards of the demarcated boundary. Any construction, including fencing, within this zone requires mutual consent from both nations.
• Disagreements have arisen recently, with BSF officials asserting that their Bangladeshi counterparts—Border Guard Bangladesh (BGB)—are not adhering to agreements made before August 2024 regarding fence erection in certain areas.
• Despite gaps in fencing, BSF Director General emphasized that infiltration and cross-border activities are countered using technological solutions such as floodlights, surveillance cameras, and drones.

Future Prospects

• The Indian government is pushing for the completion of fencing along the remaining stretches. While political debates continue in West Bengal, the state government has approved land allocation for border fencing, including 0.9 acres in Karimpur for BSF operations.
• Despite recent disputes along the Malda-Rajshahi and Cooch Behar-Lalmonirhat borders, both BSF and BGB have maintained diplomatic engagement, conducting simultaneous coordinated patrols (SCPs) and holding 643 border meetings since August 2024 to prevent escalation.

8) India-US Ties and the Illegal Immigration Issue

GS 2: International Relations: India- US Relations

Why is it in the news?

• PM Narendra Modi recently spoke with US President Donald Trump in their first phone call since Trump’s return to the White House. During their conversation on January 27, 2025, they discussed various issues, with Trump later announcing Modi’s probable visit to the US in February.
• When questioned about India’s stance on taking back illegal immigrants, Trump responded ambiguously, stating, “He (Modi) will do what’s right,” while reaffirming the strong relationship between the two nations.

India’s Diplomatic Strategy

• Observers in New Delhi noted the restrained tone in Trump’s statements. Unlike his dealings with other countries like Colombia, Trump refrained from using harsh language or making aggressive demands regarding undocumented migrants. This indicates the strategic importance of India-US relations, prompting New Delhi to adopt a flexible and diplomatic approach.
• External Affairs Minister has engaged extensively with US leaders, including Secretary of State Marco Rubio, National Security Advisor Mike Waltz, and other key officials.
• He has also met senior US Congress members such as Senate Majority Leader John Thune and House Speaker Mike Johnson, ensuring that India’s interests are well represented in Washington.

India’s Stance on Illegal Immigration

• India has agreed to cooperate with the US on immigration, aligning with Trump’s top domestic priority. American conservatives argue that illegal immigration is responsible for rising crime in the US. Indian officials have assured their American counterparts that India is willing to take back citizens who entered the US illegally.
• This agreement comes at a low cost for India, as the priority remains safeguarding legal migration opportunities for Indian nationals. Approximately 20,000 Indians face deportation under Trump’s new immigration policies, and India’s primary concern is ensuring these deportations do not impact legal visa pathways.
• However, India does not want the US to turn these deportations into high-profile public events, which could create political backlash in India.

US Deportation Challenges

• The US faces logistical difficulties in executing large-scale deportations. In the 2024 fiscal year, US Immigration and Customs Enforcement (ICE) removed 271,484 non-citizens.
• Trump’s plan to deport a million undocumented migrants annually—roughly 2,750 per day—far exceeds current capacities. ICE currently detains about 900 people daily and has only 40,000 detention beds available.
• To meet Trump’s targets, additional resources, including military and local police assistance, are being mobilized. Reports suggest ICE field offices now have daily detention quotas, causing fear among undocumented workers.
• Trump has proposed expanding detention facilities, including using Guantanamo Bay, and may ask foreign governments to pay for deportation flights.
• Among the 725,000 illegal Indian immigrants in the US, only 20,000 have been identified for immediate deportation, highlighting the limited impact of Trump’s initial crackdown.

H-1B Visas and India’s Concerns

• New Delhi’s primary concern is the status of Indian professionals and students in the US. As of May 2024, around 351,000 Indian students were studying in the US, mainly in STEM fields.
• Additionally, between October 2022 and September 2023, Indian nationals received 72% of the nearly 400,000 H-1B visas issued by the US. Major Indian IT firms such as Infosys, TCS, HCL, and Wipro secured approval for approximately 20,000 employees under the H-1B program.
• Indian officials have highlighted that skilled professionals and students contribute significantly to the US economy. Trump has so far supported the H-1B visa program, recently stating that he is a “believer in H-1B” and that the US needs “competent” and “great” individuals through this visa pathway.

Future Outlook

• Trump’s immigration orders face legal challenges from several US states. Analysts suggest that Trump’s immigration push is more about signalling to his MAGA voter base rather than implementing legally sound policies.
• For India, minor adjustments to US immigration laws are acceptable as long as they do not disrupt large-scale student and professional migration.
• New Delhi remains engaged in high-level diplomacy to safeguard Indian interests while accommodating US concerns, ensuring continued cooperation between the two nations.

9) Budget 2025: New Income Tax Slabs and Rs 12 Lakh Rebate

GS 3: Economy: Union Budget 2025-26

Why is it in the news?

• Finance Minister has raised the income tax rebate limit from Rs 7 lakh to Rs 12 lakh in the Union Budget 2025. This effectively means that individuals earning up to Rs 12 lakh will have zero tax liability under the new tax regime.

Tax Implications for Those Earning Above Rs 12 Lakh

• The rebate applies only to individuals earning up to Rs 12 lakh. If taxable income exceeds this limit, taxes will be levied as per the new slab rates. For instance, those earning Rs 12.1 lakh will have a tax liability of Rs 61,500.
• The tax breakdown for higher incomes is as follows:

1. I) 5% tax on income between Rs 4 lakh and Rs 8 lakh.
2. II) 10% tax on income between Rs 8 lakh and Rs 12 lakh.

III) 15% tax on income between Rs 12 lakh and Rs 16 lakh.

• As a result, an individual earning Rs 15 lakh will pay Rs 1,05,000 in taxes.

Tax Benefits for High-Income Earners

• The Budget also offers significant tax relief for those earning above Rs 15 lakh. Previously, income above Rs 15 lakh was taxed at 30% under the new tax regime.
• Now, the revised slab rates are:

1. I) 15% tax on income between Rs 12 lakh and Rs 16 lakh.
2. II) 20% tax on income between Rs 16 lakh and Rs 20 lakh.

III) 25% tax on income between Rs 20 lakh and Rs 24 lakh.

1. IV) 30% tax only for income exceeding Rs 24 lakh.

• These changes result in tax savings of up to Rs 1.1 lakh for individuals earning above Rs 24 lakh.

10) Budget 2025: Strengthening ‘Make in India’ and Boosting Domestic Manufacturing

GS 3: Economy: Union Budget 2025-26

Why is it in the news?

• In the 2025 Union Budget, Finance Minister highlighted ‘Make in India’ as one of the government’s ten broad focus areas for the upcoming year. She emphasized that boosting manufacturing and advancing the Make in India initiative is a crucial part of the government’s economic agenda.
• The mission, launched in 2014, aims to foster investment, innovation, skill development, intellectual property protection, and top-tier manufacturing infrastructure in India.

National Manufacturing Mission

• A major announcement in the Budget was the launch of the National Manufacturing Mission, which will support industries of all sizes, from small to large.
• The Mission aims to improve business ease and reduce costs, create a future-ready workforce, bolster the MSME sector, ensure technology availability, and promote the production of high-quality goods.

Key Policy Measures for Domestic Manufacturing

The Budget also introduced several measures aimed at enhancing domestic manufacturing and adding value across various sectors:

• Critical Minerals: The government introduced a no Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery scrap, lead, zinc, and 12 other critical minerals to promote their processing, especially in MSMEs.
• Textiles: To support Make in India and address the inverted duty structure, the BCD on Interactive Flat Panel Displays (IFPD) was increased from 10% to 20%. Additionally, BCD on open cells and components for LCD/LED TVs was reduced to 5%, while exemptions were provided on open cells and parts for LCD/LED TVs.
• Lithium-ion Battery: To encourage domestic manufacturing of lithium-ion batteries for mobile phones and electric vehicles, 35 additional capital goods for EV battery manufacturing and 28 for mobile phone batteries were added to the list of exempted capital goods.
• Shipping Sector: The Budget extended the BCD exemption on raw materials and parts for ship manufacturing for another 10 years. This move aims to strengthen the competitiveness of the shipbuilding industry.
• Telecommunication: The BCD on Carrier Grade Ethernet switches was reduced from 20% to 10%, aligning it with the rate for Non-Carrier Grade switches. This change aims to resolve classification disputes.

Supporting Entrepreneurs and Labour-Intensive Sectors

To further enhance domestic manufacturing, the Budget announced several initiatives to support new entrepreneurs and labour-intensive sectors:

First-Time Entrepreneurs:

• A scheme will be launched to provide term loans up to ₹2 crore to 5 lakh first-time entrepreneurs, with a focus on women and marginalized groups such as Scheduled Castes and Scheduled Tribes.

Labour-Intensive Sectors:

• The footwear and leather sectors will receive a focus product scheme, aiming to generate 22 lakh jobs, ₹4 lakh crore in turnover, and ₹1.1 lakh crore in exports.
• The toy sector will also be promoted through the development of clusters and skill-building initiatives to create sustainable, innovative, and high-quality toys under the ‘Made in India’ brand.

Food Processing:

• A National Institute of Food Technology will be established in Bihar, focusing on improving farmers’ incomes, promoting youth employment and entrepreneurship, and developing skills.

Enhancing Support for Micro-Enterprises and MSMEs

• The Budget also proposed revisions to the classification criteria for MSMEs, helping them scale, adopt new technologies, and gain better access to capital. The limits for MSME classification based on investment and turnover will be increased by 2.5 times and 2 times, respectively.
• Additionally, the Credit Guarantee Cover for MSMEs will be enhanced from ₹5 crore to ₹10 crore, leading to an additional ₹1.5 lakh crore in credit over the next five years.
• For startups, the cover will increase from ₹10 crore to ₹20 crore, and the guarantee fee will be reduced to 1% for loans in 27 focus sectors critical for Atmanirbhar Bharat.
• Furthermore, customized credit cards of up to ₹5 lakh will be issued to micro-enterprises registered on the Udyam portal, with 10 lakh such cards planned for issuance in the first year.

Conclusion

• This comprehensive set of measures in the 2025 Budget aims to create a robust foundation for India’s manufacturing sector, promote innovation, and enhance competitiveness, ensuring sustained economic growth and self-reliance.

11) Union Budget 2025: Focus on Women and Gender Equality

GS 3: Economy: Union Budget 2025-26

Why is it in the news?

• In the 2025 Union Budget, Finance Minister emphasized that women, or ‘Nari,’ were one of the key focus areas for the government. She stated that the proposed development measures span ten broad areas, including Garib (the poor), Youth, Annadata (farmers), and Nari.
• The government has prioritized women’s empowerment, with Nari Shakti being a major focus during Prime Minister Modi’s third term.

The Gender Budget Statement

• Since FY 2005-06, the Government of India (GoI) has included a Gender Budget Statement (GBS) in the Union Budget. The GBS highlights schemes across various ministries and departments with allocations for women and girls.
• However, it is important to note that the GBS is not a separate budget for women, but rather a reporting mechanism for existing schemes.
• For example, the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) guarantees that at least one-third of its allocation goes to women, with around half of the workers historically being women. The GBS reports 47% of the MGNREGS budget allocated to women in FY 2025-26.
• The GBS has evolved over the years and, starting FY 2024-25, includes three parts: Part A (100% allocations for women), Part B (30-99% allocations), and Part C (1-29% allocations).
• The total allocation for women in FY 2025-26 stands at Rs 4.49 lakh crore, which is a 37% increase from the previous year. The share of women-specific allocations in total expenditure has also increased, from 5% in FY 2019-20 to 9% in FY 2025-26.
• While the overall allocation for women has risen, a closer look at the Part-wise analysis reveals stagnation in Part A allocations over time. This trend could suggest that ministries and departments are increasingly integrating gender considerations into their schemes, as evidenced by the growth in Part B and C allocations.
• However, this might also indicate a tendency to misallocate or arbitrarily assign gender-related components to various schemes.

Examples from Social Sector Ministries

• To better understand these trends, consider the Jal Jeevan Mission (JJM), launched in 2019, which addresses the time and physical burden women face while fetching water.
• The scheme features in Part B of the GBS with a 31% allocation for women. While the allocation was 49% in the previous two years, the decline in FY 2025-26 signals a lack of long-term commitment to addressing this issue.
• Similarly, the Pradhan Mantri Awaas Yojana–Grameen (PMAY-G) under the Ministry of Rural Development prioritizes women by ensuring ownership of homes in women’s names.
• Although PMAY-G is listed in Part A of the GBS, which implies 100% of the allocation is for women, only 23% of the houses allotted so far have been in women’s names, revealing a gap between the scheme’s goals and its implementation.

Mission Saksham Anganwadi and Poshan 2.0

• The Mission Saksham Anganwadi and Poshan 2.0, an initiative under the Ministry of Women and Child Development, aims to improve health and nutrition outcomes for women. While the scheme features in both Part A and Part B of the GBS, it is unclear why some sub-schemes are reported in both parts.
• The restructuring of the scheme in FY 2021-22 has made it more difficult to track its allocations, with certain sub-schemes like the PM Matru Vandana Yojana (PMMVY) no longer separately mentioned in the Budget.

Self-Help Group Empowerment and NRLM

• One positive trend is the increased focus on empowering women through Self-Help Groups (SHGs), reflected in the increased allocations for the National Rural Livelihoods Mission (NRLM).
• Since FY 2024-25, NRLM has moved from Part B to Part A of the GBS, indicating the government’s intent to prioritize women’s economic empowerment.

Room for Improvement in Gender Reporting

• The introduction of Part C in the GBS reflects an effort to incorporate a gender lens across all Union ministries and departments.
• However, the arbitrary reporting of allocations for women and the frequent changes in these figures make it difficult to hold the government accountable for its commitments. Greater transparency in the methodologies used to draft the GBS would improve accountability.
• Furthermore, an accounting exercise alone, which merely reports allocations for women and girls, is insufficient to fulfil the promise of ‘Nari Shakti.’
• It must be accompanied by regular gender-oriented audits across ministries to ensure that the government’s focus on women is reflected in its policies and programs, not just in budgetary allocations.

Conclusion

• The Union Budget 2025 includes several initiatives aimed at empowering women, such as prioritizing women in housing schemes, promoting women’s participation in rural employment, and expanding access to water.
• However, there is room for improvement in ensuring that these schemes are effectively implemented and that gender-sensitive budgeting goes beyond mere allocation reporting.
• Regular audits and clearer methodologies for gender reporting will be essential for achieving genuine empowerment for women.

12) Creation of Makhana Board in Bihar: A Strategic Move for Economic Growth

GS 3: Economy: Union Budget 2025-26

Why is it in the news?

• Union Finance Minister while presenting the 2025 Union Budget, announced the establishment of a “Makhana Board” in Bihar. This initiative aims to improve the production, processing, value addition, and marketing of makhana, a popular superfood.
• The board will also provide training and support to farmers, ensuring they benefit from various government schemes. Makhana, known for its health benefits, has seen a surge in global demand, prompting the government to focus on its commercial potential.
• The creation of the Makhana Board is a significant step toward harnessing this growth for Bihar’s economic development.

Understanding Makhana: A Nutritious and Culturally Significant Crop

• Makhana, also known as fox nut, is the dried edible seed of the gorgon plant, which thrives in freshwater ponds across South and East Asia. Bihar contributes around 90% of India’s makhana production, primarily from the Mithilanchal region, which spans nine districts in the northern and eastern parts of the state.
• Despite being the largest producer, Bihar has struggled to capitalize on the growing demand for makhana in both domestic and international markets due to low productivity, insufficient food processing units, and lack of export infrastructure.
• Makhana is culturally significant in Hindu rituals and is gaining popularity as a superfood due to its rich nutritional profile.

Challenges in Bihar’s Makhana Sector

• Bihar, despite being the leading producer of makhana, faces several challenges in tapping into its full potential. One major issue is the state’s underdeveloped food processing industry and lack of export infrastructure.
• While Bihar produces 90% of the country’s makhana, the largest exporters are Punjab and Assam, with the former not even cultivating makhana. Bihar’s raw makhana is sold at lower prices to food processing units outside the state, which add value to the product through packaging and flavouring, and thus, command better prices.
• Additionally, the state’s makhana cultivation is labour-intensive, with the seeds sown in standing water bodies and harvested manually, making the process costly and inefficient.

The Need for the Makhana Board

• The Makhana Board, with an allocated budget of Rs 100 crore, is expected to address several of these issues. The board will focus on creating an ecosystem for food processing, enhancing storage facilities, improving market chains, and developing export infrastructure.
• The establishment of the board is aimed at making Bihar’s makhana farmers more export-oriented and ensuring they receive proper training and support.
• The government also plans to expand the airports in Patna, Purnea, and Darbhanga to include cargo holds, which will facilitate exports and bolster the state’s economic development.

Conclusion

• The creation of the Makhana Board in Bihar represents a crucial step in boosting the state’s economy through the commercial potential of makhana. By focusing on improving production, processing, and marketing, the board aims to address key challenges in the sector.
• With the proper infrastructure, Bihar has the potential to lead the global makhana market, benefiting farmers, particularly those from marginalized communities, and driving economic growth in the state.
• However, the success of the initiative will depend on the level of commitment and investment from both the state and central governments.