31 May | Daily Current Affairs : GDP growth at 6.5%, the slowest since pandemic And More

GS PAPER 1

Indian Economy

India’s provisional GDP growth for FY 2024–25 has been pegged at 6.5%, marking the slowest pace since the pandemic year (2020–21). While Q4 growth accelerated to 7.4%, it remains lower than the 8.4% recorded in Q4 of the previous fiscal. This slowdown, despite robust quarterly numbers, flags structural and global challenges affecting the Indian economy.

Key Highlights of the Economic Performance:

1. Quarterly Growth Trends:
   • Q4 FY25: 7.4% (highest for the year but below last year’s Q4)
   • Q3 FY25: 6.4% This shows an upward trajectory in the latter half of the year but signals a moderation from the previous fiscal.
2. Sectoral Insights:
   • Agriculture: Continued to be a consistent performer, aiding overall stability.
   • Manufacturing: Grew by 4.8% in Q4, despite a high base of 11.3% in Q4 of FY24, suggesting resilience but slower momentum.
   • Construction: Witnessed strong double-digit growth in Q4 (10.8%), indicating infrastructure-led demand, though the annual growth slowed from 10.4% to 9.4%.
3. Private Consumption:Growth in household consumption improved to 7.2%, from 5.6% in the previous year — a crucial sign of reviving domestic demand, especially in a scenario of subdued exports and global uncertainty.
4. Government Standpoint:Chief Economic Adviser V. Anantha Nageswaran defended the slowdown, citing global headwinds, post-COVID uncertainties, and geopolitical tensions. He emphasized that India’s growth differential with advanced economies is higher now than during the 2003–2010 boom era, showcasing India’s relative strength in a “growth-scarce” world.

Critical Analysis:

• Growth Slowdown with Pockets of Strength: While the headline number is lower than previous years, strong Q4 figures and improved consumption suggest domestic recovery is underway. Yet, manufacturing and export vulnerabilities remain critical constraints.
• Global Context Matters: In a period marked by geopolitical strife, protectionism, and inflationary pressures, India’s ability to maintain above 6% growth places it among the better-performing large economies.
• Need for Reforms: The slowdown signals the need for supply-side reforms, labour market flexibility, and support for MSMEs, especially in manufacturing, to sustain long-term momentum.
• Rural vs Urban Divide: The growth in agriculture and construction sectors reflects rural and semi-urban demand, while urban-centric manufacturing and services need renewed policy focus.
• Policy Implications: Fiscal policy must remain growth-supportive but prudent, and the government must balance inflation concerns with growth imperatives, especially with upcoming elections and external pressures.

UPSC Mains Practice Question

Ques : India’s GDP growth rate for 2024–25 has been the slowest since the pandemic, yet it reflects resilience amid global uncertainties. In this context, analyze the key drivers and constraints of India’s economic growth in the current fiscal. Also, suggest measures to ensure sustained and inclusive growth.(250 words)

GS PAPER 2

Governance & Environment

Recent protests across Arunachal Pradesh, particularly against mega-dams in the Siang, Dri, and Lohit River basins, have reignited concerns around hydroelectric development, tribal rights, ecological vulnerability, and cultural heritage. This unfolding resistance showcases the conflict between national energy security and local environmental-social concerns, making it a significant issue for governance and environmental policy discourse.

Key Developments:

1. Triggering Incident:Protests against the 11,000 MW Siang Upper Multipurpose Project have spread to other proposed projects. This particular project is being pushed by the government due to China’s plans to construct a 60,000 MW hydro project on the Yarlung Tsangpo upstream, raising fears of water diversion.
2. Protests Across the State:
   • Dibang Valley: Opposition to the 400 MW Mihundo (Mihumdon) Hydroelectric Project by the Ekhomey Mowo Welfare Society centers on the lack of consent from local Gram Sabhas, violation of the PESA Act, and seismic risk.
   • Anjaw District: Protests against the 1200 MW Kalai-II Project highlight cultural and spiritual loss, including sites like Kutung Graam and Parshuram Kund—sacred to the Mishmi tribe.
3. Legal and Ethical Concerns:The villagers argue that no Free, Prior, and Informed Consent (FPIC) was obtained, a violation of both Constitutional rights under Schedule VI, the Forest Rights Act (2006), and international norms under UNDRIP (United Nations Declaration on the Rights of Indigenous Peoples).
4. Ecological and Cultural Sensitivity:
   • Arunachal Pradesh is part of a fragile Himalayan ecosystem, prone to landslides, earthquakes, and biodiversity loss.
   • Indigenous communities emphasize that ancestral lands and sacred sites are not merely property but repositories of cultural identity and spiritual continuity.
5. Strategic and National Interest Dimension:The government’s push is driven by strategic concerns, especially to counterbalance Chinese hydro plans on the upper Brahmaputra (Yarlung Tsangpo), citing national water security and energy self-reliance.

Critical Analysis:

• Development vs. Rights Conflict: The recurring conflict reflects a deep-rooted governance challenge—pursuing energy goals without undermining tribal rights and ecological integrity. Legal safeguards are often bypassed in the name of “national interest”.
• Social Impact Assessment (SIA) Flaws: Despite being mandatory, SIAs often remain a tick-box exercise. The failure to conduct genuine, participatory consultations erodes trust and leads to resistance.
• Policy Gaps: While India has ambitious hydro targets, especially for clean energy transitions, the lack of a comprehensive framework for indigenous participation in such projects is evident.
• Need for Alternatives: Instead of mega-dams, the government should explore decentralized renewable energy, micro-hydro, and solar energy suited to fragile terrains, aligning sustainability with inclusion.

UPSC Mains Practice Question

Ques:Hydroelectric projects in the North-East are essential for India’s energy security but have sparked widespread opposition from local communities. Critically examine the environmental, cultural, and strategic dimensions of such projects. Suggest a balanced approach to resolve these conflicts. (250 Words)

GS PAPER 3

International relations

New Zealand’s Deputy Prime Minister and Foreign Minister, Winston Peters, during his India visit, highlighted a strategic shift in his country’s foreign policy — signaling closer defence and security cooperation with India. Against the backdrop of rising geopolitical instability, New Zealand’s renewed engagement with South and Southeast Asia marks a significant pivot in its traditionally Pacific-focused diplomacy.

Key Highlights:

1. Defence Cooperation Agreement:A recently signed Defence Cooperation Arrangement (DCA) will enhance military linkages between India and New Zealand. This move marks a departure from New Zealand’s traditional low military engagement in the Indo-Pacific and signifies recognition of India as a key security partner.
2. Freedom of Navigation and Maritime Security:New Zealand emphasized the importance of secure sea lanes, especially in the Indo-Pacific, for its trade and economic interests. With the New Zealand Navy leading Combined Task Force 150 (focused on counterterrorism, piracy, and smuggling in the Indian Ocean and Gulf of Aden), collaboration with India enhances shared maritime security objectives.
3. India as a “Geopolitical Giant”:Peters acknowledged India’s growing influence in regional and global affairs, calling it an “indispensable security actor.” This recognition aligns with India’s Act East Policy and its growing role in the Quad, IOR security architecture, and global South partnerships.
4. New Zealand’s Strategic Reset:In response to rising uncertainty and the changing global power dynamics, New Zealand is expanding diplomatic, economic, and defence focus on Asia, especially South and Southeast Asia. This includes both multilateral engagement and bilateral cooperation, with India at the core.
5. Diplomacy as a Tool for Peace:Mr. Peters strongly advocated for dialogue-based conflict resolution, emphasizing the need for smaller states to safeguard their autonomy through collective diplomacy rather than isolationism.

Critical Analysis:

• Shift in New Zealand’s Geopolitical Posture:Traditionally neutral and focused on the Pacific, New Zealand’s increasing strategic convergence with India is a response to China’s assertiveness, regional disruptions, and the global reordering of alliances.
• India’s Expanding Indo-Pacific Role:This development reflects India’s success in projecting itself as a credible maritime and strategic power, capable of balancing regional security interests, particularly in the face of China’s naval expansion and infrastructure projects across the Indian Ocean.
• Mutual Interests:Both countries share an interest in rule-based international order, secure maritime commons, climate cooperation, and counter-terrorism. Enhanced defence cooperation complements growing ties in education, trade, and diaspora relations.
• Challenges Ahead:Despite strategic intent, the limited scale of New Zealand’s military capabilities and geographical distance could restrict tangible outcomes. However, sustained cooperation in maritime awareness, joint exercises, and multilateral forums can yield long-term dividends.

Conclusion:

New Zealand’s strategic outreach to India underlines a new era of middle-power collaboration in the Indo-Pacific. For India, it affirms its emergence as a regional stabilizer and a preferred security partner. Going forward, a balanced, inclusive and rule-based engagement with nations like New Zealand will bolster India’s maritime diplomacy and reinforce its position in the evolving Indo-Pacific security architecture.

UPSC Mains Practice Question

Ques: With rising uncertainty in global geopolitics, countries like New Zealand are forging closer defence ties with India. Examine the strategic significance of such partnerships for India’s Indo-Pacific vision and maritime diplomacy.(250 Words)

GS PAPER 4

Governance

The recent cross-border shelling by Pakistan, in response to Operation Sindoor, has inflicted significant civilian casualties and infrastructural damage in Jammu & Kashmir, particularly in Poonch, Uri, Kupwara, Baramulla, and Rajouri. The incident underscores the vulnerability of border populations, the necessity of robust civil defence mechanisms, and the importance of integrating relief with long-term development in conflict-prone regions.

Key Highlights:

1. Civilian Losses and Infrastructure Damage:
   • At least 1,500 houses damaged (690 in Poonch, 534 in Uri).
   • 18 civilians killed, with Poonch being the most severely affected.
   • Significant damage to residential and community infrastructure across the border districts.
2. Government Response:
   • Union Home Minister’s visit to the affected areas provided political reassurance and symbolic support.
   • Distribution of job letters to victims’ families aimed at economic relief and morale restoration.
   • A relief package is in the pipeline, though the ₹1.2 lakh compensation for fully damaged homes has been criticized as insufficient.
3. Security Measures and Civil Defence:
   • Construction of 9,500 underground bunkers (8,000 in Jammu, 1,500 in Kashmir) as part of proactive civil defence.
   • Rising demand for individual bunkers, especially in sparsely populated and remote border villages of the Kashmir Valley.
4. Psychosocial Impact and Political Outreach:
   • Visits by opposition leaders, including Rahul Gandhi and TMC representatives, conveyed bipartisan solidarity.
   • Army’s statement that the India–Pakistan ceasefire has “no expiry date” provided psychological assurance to residents.

Critical Analysis:

• Security–Development Nexus:Security and economic stability must go hand-in-hand. Rebuilding homes alone is not enough; the government must also provide livelihood security, trauma counseling, education continuity, and agricultural assistance to ensure holistic recovery.
• Inadequacy of Relief Measures:The compensation offered is grossly inadequate, especially for multi-storey concrete homes, reflecting the need for context-sensitive relief planning. A graded compensation policy based on damage extent and local construction norms should be adopted.
• Gap in Civil Defence Infrastructure:While bunkers have been constructed, their distribution is uneven, and individual safety solutions are necessary due to the scattered nature of border habitations. Real-time alert systems, community drills, and evacuation protocols must also be institutionalized.
• Federal–State Coordination:With the ongoing political transition in J&K, effective Centre–UT coordination is essential for timely aid disbursement, implementation of relief schemes, and restoration of public services.
• Need for a Long-Term Peace Strategy:Shelling incidents like these remind us of the fragile ceasefire arrangement with Pakistan. India must invest in both military preparedness and diplomatic channels to prevent escalation and protect civilians.

Conclusion:

The rebuilding of Jammu & Kashmir’s border areas must not be reduced to a relief-centric exercise. It requires a comprehensive and empathetic approach that integrates physical safety, economic rehabilitation, and emotional healing. The Centre and J&K’s local administration must act decisively and collaboratively to restore trust, dignity, and security to the affected residents. Only then can lasting peace and resilience be achieved in this geopolitically sensitive region.

UPSC Mains Practice Question

Ques: In the wake of cross-border hostilities, ensuring civilian security and economic rehabilitation in border areas is as critical as military preparedness. Discuss with reference to recent events in Jammu & Kashmir.  (250 words)

GS PAPER 5

Governance

The tragic death of nine-year-old Venkatesh, allegedly kept as collateral for a loan and later murdered while working in a bonded labour setup in Tamil Nadu, lays bare the continuing prevalence of bonded and child labour in India, particularly among vulnerable tribal communities like the Yanadis. Despite the existence of strong legal frameworks like the Bonded Labour System (Abolition) Act, 1976, the practice continues unabated in parts of rural and semi-urban India, exposing systemic failures in law enforcement, victim protection, and rehabilitation.

Key Issues Highlighted:

1. Persistence of Bonded Labour:
   • Bonded labour, though outlawed, continues in both agricultural and non-agricultural sectors, including duck rearing and timber cutting.
   • Victims, like Venkatesh and his family, are often poor, unlettered, landless, and socially excluded—fitting the profile of classic victims of exploitative labour practices.
2. Violation of Multiple Laws:
   • The case involved violations of multiple legislations, including the Bonded Labour Act, Child Labour Act, SC/ST Atrocities Act, and now murder charges under Bharatiya Nyaya Sanhita, 2023.
   • However, the enforcement of these laws is weak. Only 7 FIRs filed out of 402 rescued cases in Andhra Pradesh in two years.
3. Ineffectiveness of Rescue and Rehabilitation Mechanisms:
   • The Central Sector Scheme for Rehabilitation of Bonded Labourer (2021) promises compensation up to ₹3 lakh, but in practice, relief is delayed or denied, especially posthumously, as in Venkatesh’s case.
   • Lack of release certificates, poor inter-departmental coordination, and absence of a nodal agency or standard operating procedure in Andhra Pradesh hampers effective response.
4. Marginalisation of Yanadi Community:
   • The Yanadi tribe, with low literacy and high social isolation, remains trapped in cycles of poverty, debt, and bonded labour.
   • Cultural deference to landlords (like Reddys), lack of awareness of rights, and fear of retribution contribute to their continued exploitation.
5. Systemic Gaps and Accountability Failures:
   • Andhra Pradesh has no recent comprehensive survey to assess the scale of bonded labour.
   • District-level vigilance and monitoring committees are either missing or functionally inactive, and role confusion among government departments persists.

Critical Analysis:

• Legal Framework vs Ground Reality:India has an extensive legal framework, but its implementation is fragmented. Victims often lack access to justice, and exploiters operate with impunity due to poor monitoring and prosecution.
• Invisible and Unorganised Exploitation:Bonded labour today is more disguised than hereditary, making detection difficult. Exploitation is often tied with migration, informal employment, and inter-state movement, complicating jurisdiction and rescue efforts.
• Need for Institutional Mechanisms:The absence of dedicated nodal bodies, trained personnel, and real-time grievance mechanisms weakens the response to bonded labour. States like Tamil Nadu and Delhi have shown that institutional will can make a difference.
• Human Tragedy Beyond Law:The psychological trauma, social stigma, and inter-generational poverty suffered by families like Ankamma’s call for a rehabilitation strategy that goes beyond compensation—focusing on housing, education, livelihood, and dignity.

Conclusion:

The case of Venkatesh is a haunting reminder that bonded labour in India is not a relic of the past, but a living reality for thousands. To end this practice, India needs a cohesive policy, robust enforcement, inter-state coordination, and most importantly, a rights-based approach to protect the voiceless. The death of a child should not merely be an isolated headline—it should be the trigger for systemic reform in how India identifies, rescues, and rehabilitates victims of modern-day slavery.

UPSC Mains Practice Question

Ques:Despite legal prohibitions, bonded labour continues to persist in India, especially among marginalised communities. Examine the socio-economic factors contributing to this practice and suggest a comprehensive strategy for its elimination.(250 words)

GS PAPER 6

Editorial Analysis

Context :

As higher education enrolment in India surges, a paradoxical trend has emerged — unemployment rates are often higher among the educated, especially those with postgraduate and PhD degrees. This commentary by an academic at IIT Kharagpur exposes the growing disconnect between academic learning and employment readiness, particularly in non-elite Tier 2 and Tier 3 institutions, where most Indian students study.

Key Issues Highlighted:

1. Education-Employment Disconnect:
   • The current system prioritizes degrees over skills, with traditional curricula lacking alignment with real-world job requirements.
   • Students, despite academic achievements, often struggle with basic workplace tools (e.g., Excel, communication, budgeting), especially in general degree programmes (BA, BCom, BSc).
2. Theoretical Focus over Practicality:
   • Higher education remains focused on abstraction, theory, and rote learning, undervaluing vocational relevance and practical application.
   • Postgraduate education is often pursued as an escape from the job market, which in turn reproduces the same outdated academic culture.
3. Uneven Reform Implementation:
   • Government initiatives like Skill India, Start-Up India, and the National Education Policy (NEP) have attempted reform but suffer from patchy execution.
   • New courses in AI or entrepreneurship are introduced but lack integration and practical depth.
4. Societal Stigma Around Vocational Training:
   • Unlike countries such as Japan and China, India views vocational training as inferior or a fallback, limiting its mainstream adoption.
   • This cultural mindset prevents a structural shift toward employability-based education.
5. Need for Inclusive Skill Integration:
   • There is an urgent need to embed communication, digital literacy, data analysis, financial skills, and entrepreneurship into general degree programmes as core components.
   • PhD training should be diversified to prepare students for non-academic careers in policy, consulting, development, and private sectors.
6. Overdependence on Government Jobs:
   • The narrow focus on competitive exams and government employment is a symptom of limited private sector pathways and poor employability.
   • Empowering students with skills will reduce over-reliance on government jobs and expand livelihood options.

Critical Analysis:

• Degrees vs Capabilities:The obsession with formal degrees has overshadowed the need for functional and transferable skills. An education system that fails to provide economic agency risks becoming socially regressive, especially for students from underprivileged backgrounds.
• Role of Non-Elite Institutions:Most students study in ordinary colleges, which lack funding, industry linkages, and updated syllabi. Any reform must focus on revitalizing these institutions through faculty training, curriculum overhaul, and institutional-industry partnerships.
• Reimagining Education as a Social Contract:Education must shift from being a credentialing exercise to a means of securing dignity and livelihood. This requires policy-level commitment and social acceptance of diverse learning paths beyond traditional degrees.

Conclusion:

India’s GDP growth slows to 6.5%, marking the weakest pace since the pandemic.

India’s higher education system is at a crossroads. While enrolment is rising, employability remains stagnant. If education is to be truly transformative, it must bridge the learning-livelihood gap by equipping students with practical skills, not just academic degrees. Reform must be inclusive, skill-focused, and socially empowering, especially for those in under-resourced settings. Only then can India’s demographic dividend become a demographic advantage.