Content:
- Sound and Fury
- A Case of Practical, Pragmatic and Innovative Education
- India’s Financial Sector Reforms Need a Shake-Up
Sound and fury
Monsoon Onset and Forecast Trends
- Monsoon arrived early in Kerala on May 24, a week before the normal onset of June 1.
- Early arrival was predicted in early May due to its progress over the Andaman Sea.
- Pre-cyclonic circulation in the Arabian Sea boosted the monsoon’s intensity.
- Mumbai experienced May onset for the first time in 35 years, beating its usual June 10 date.
Relevance : GS 1(Geography) ,GS 3(Disaster Management)
Practice Question : Despite improvements in monsoon forecasting, India’s preparedness remains inadequate. Critically analyse the gaps in translating meteorological data into effective policy action in agriculture, urban planning, and disaster management. (250 words)
Forecast Accuracy and Updates
- IMD forecasted “above normal” rainfall (initially 5%, now revised to 6% above historical average of 87 cm).
- This forecast was issued as early as mid-April, showing improved meteorological modeling.
IMD Measurement Quirks
- IMD only considers June 1–Sept 30 as official monsoon period.
- Heavy rains in late May (e.g., Kerala, Mumbai) are classified as pre-monsoon, not part of official monsoon data.
Implications for Agriculture
- Above-normal rainfall is favorable for kharif sowing and grain reserves.
- Positive forecast may boost food production and exports.
Urbanisation and Rainfall Challenges
- In urban areas, more rain ≠ always good:
- Flooding risk rises, especially in Tier-2 and Tier-3 cities, not just metros.
- Many urban centres lack infrastructure to handle even normal rainfall.
Climate Change Concerns
- Erratic rainfall and extreme weather events are becoming more frequent.
- Climate change makes rainfall more intense, less predictable, and regionally unequal.
Policy and Planning Needs
- Despite better forecasts, their impact is limited without societal and administrative response.
- Need for mainstreaming IMD alerts into:
- Urban planning
- Disaster preparedness
- Agriculture scheduling
- Community-level action and inter-agency coordination critical to manage disruptions.
Key Takeaway
Improved forecasts alone are not enough — India needs a systemic, societal approach to translate monsoon alerts into real-time adaptive practices for agriculture, urban safety, and disaster risk reduction.
A case of practical, pragmatic and innovative education
Overview of NEP 2020
- NEP 2020 is a long-term structural reform aiming for phased implementation.
- Focuses on:
- Original, indigenous research imagination.
- Global competitiveness in education.
- Preparing students for multi-career paths.
Relevance : GS Paper 2 (Governance, Education Policy)
Practice Question : To what extent has the National Education Policy 2020 fostered innovation, employability, and global competitiveness in Indian higher education? Evaluate with suitable data. (250 words)
Towards Better Employability
- Introduces four-year flexible degrees allowing:
- Exit and re-entry with credentials.
- Broader career flexibility.
- Push for vocationalisation and industry internships:
- Practical exposure and real-world skills.
- Significant rollout:
- 167 universities + 59 colleges offer four-year UG degrees.
- 224 universities + 101 colleges offer multidisciplinary degrees.
- Development of research internship programmes to bridge academia-industry gaps.
- Apprenticeship scheme:
- Open to diploma holders within 5 years of graduation.
- Stipend-supported (government co-funded).
- 3.07 lakh UG and 58k PG students already in internships.
- 242 universities and 113 colleges have R&D cells fostering innovation.
Global Competitiveness
- 11 Indian universities feature in QS Global Top 500.
- India leads QS Asia Rankings 2025 with 163 institutions.
- Subject-specific gains:
- 10 Indian institutes in global top 50 (IITs, IIMs).
- Surge in patents filed:
- From 7,405 (2021–22) to 19,155 (2022–23) → 158% increase.
- Global Innovation Index rank improved from 76 to 39.
Research and Innovation Ecosystem
- Initiatives such as:
- ANRF Act 2023 – institutionalizing research funding.
- AICTE IDEA labs – promoting innovation.
- SPARC – global collaboration in research with 28 countries.
- Emphasis on Indian Knowledge Systems across school & higher education.
- Smart India Hackathon:
- Empowered 13.9 lakh students.
- Idea submissions up 7x since 2017.
Sustainable Employment Trends
- Post-2018-19: Rise in employment among educated youth.
- By 2023-24:
- Male youth employment: 53.4%.
- Female youth employment: 22.7% (approaching 2004-05 levels).
- Overall employment rate (all ages): 43.7% in 2023-24.
- Female employment rose to 30.7% (2023-24).
- Regular employment increased:
- Men: 17.2% (2004-05) → 24.88% (2023-24).
- Decline in casual labour:
- Female: 30.3% → 16.68%.
- Overall: 28.8% → 19.83%.
- Indicates shift to formal, stable jobs, especially for women.
Conclusion
- NEP 2020 has addressed longstanding concerns:
- Whether Indian education equips students with real-world competencies.
- Practical reforms, innovation focus, and employability alignment show positive systemic transition.
India’s financial sector reforms need a shake-up
Overall Theme
- India’s financial sector suffers from systemic inefficiencies.
- Incremental reforms have failed; deeper structural reforms are necessary.
- Focus areas: nomination inconsistencies, underdeveloped bond markets, shadow banking, UBO disclosure, and retirement planning.
Relevance : GS 3 (Economy – Financial Sector)
Practice Question : India’s financial sector reforms have largely been incremental and fragmented. Discuss the need for a structural overhaul, citing issues in nomination norms, bond markets, and shadow banking. (250 words)
Nomination Conundrum Across BFSI
- Nomination processes differ widely across banks, mutual funds, and insurance.
- This inconsistency leads to confusion and legal loopholes exploited via litigation.
- No logical justification for three parallel nomination systems.
- Recommendation: A harmonised nomination framework defining nominee vs. legal heir rights.
Corporate Bond Market – Still Shallow and Inefficient
- India’s corporate bond market is illiquid, opaque, and underutilised.
- Lack of depth increases cost of capital by 2–3%, hampering business viability.
- Past initiative ignored: NSE was asked to create a bond platform, but equity trading remained preferred due to profitability.
- Regulatory opacity (e.g., algorithmic trading, defamation suits against whistleblowers) weakens trust.
UBO (Ultimate Beneficial Owner) Transparency Gaps
- India’s UBO threshold: 10% for companies, 15% for partnerships – easily bypassed.
- Foreign investors use jurisdictions like Mauritius to avoid disclosing ownership.
- SEBI struggled with Elara and Vespera funds’ non-disclosure.
- FATF requires accurate, accessible UBO data – India is non-compliant in practice.
- This undermines market integrity and deters long-term capital inflow.
Retirement Planning Needs Overhaul
- Dominated by annuities with high intermediation fees (~2%).
- Alternative: long-dated zero-coupon government bonds offer higher, direct returns.
- India has the tech to strip bonds, but lack of initiative from RBI/government stalls progress.
- A vibrant, low-cost retirement ecosystem is possible using sovereign bonds.
Shadow Banking – The Looming Risk
- NBFCs, brokers, margin lenders operate with bank-like functions but light regulation.
- Retail investors unknowingly face interest rates >20% via margin funding.
- Classic trick: Brokers use investor’s own collateral to extend loans.
- Regulatory blind spot: Authorities lack comprehensive data.
- EU has already moved to regulate; India must collect data as a precursor to oversight.
Conclusion & Way Forward
- India needs a coherent, structural reform agenda:
- Harmonise rules across BFSI.
- Develop a liquid corporate bond market.
- Ensure transparent UBO disclosure.
- Offer low-cost retirement instruments.
- Collect data and regulate shadow banking.
- Reform must go beyond slogans and focus on transparency, professionalism, and investor trust.
