Content :
- Why India should address its propulsion gap
- AAIB yet to decide where AI black box will be decoded
- Hindi, English top choice as medium of instruction for Class 10, 12 exams’
- Reserve Bank issues project finance directions to banks
- ‘India FDI slid 1.8% in 2024, share in capital formation declining’
- The unregulated drink: rethinking alcohol control in India
Why India should address its propulsion gap
Historical Context: HF-24 Marut’s Engine Failure
- India’s first indigenous jet fighter (HF-24 Marut) failed not due to design but due to underpowered imported engines (Orpheus 703).
- Ambitious project led by German engineer Kurt Tank.
- Its performance in combat was limited; only 147 units built before being phased out.
- Showed early how engine dependency undermines indigenous aircraft potential.
Relevance : GS 3(Technology ),GS 2(Governance )
Kaveri Engine: Persistent Challenges
- Launched in 1989 for the LCA Tejas, but failed despite ₹2,032 crore investment.
- Issues: Low thrust-to-weight ratio, poor reliability, and thermal management flaws.
- Multiple revivals failed — including with French Snecma and Safran.
- Kaveri’s failure forced reliance on GE’s F404 engines for Tejas, compromising performance and payload.
Operational Setbacks Due to Foreign Delays
- GE delayed delivery of 99 engines for LCA Mk1A by 13 months, affecting commissioning schedules.
- Caused concern as IAF combat strength fell from 42.5 to ~30 squadrons.
- Air Chief bluntly criticized delays, calling for readiness over planning.
Stalled Engine Transfer Deals
- The GE-F414 engine (for LCA Mk2 and AMCA Mk1) deal hit a roadblock.
- GE demands extra $500 million and refuses to share core technologies (e.g. single-crystal blades, thermal coatings).
- Reflects global reluctance to share sensitive tech, despite India’s demands for full transfer.
Wider Dependence Beyond Air Force
- Army: Arjun tanks use German MTU engines, Zorawar light tanks use U.S. Cummins engines.
- Navy: All indigenous ships use foreign propulsion — Russian, Ukrainian, French, U.S., or German.
- Highlights that engine dependence is across Army, Navy, and Air Force, not just IAF.
Strategic & Economic Implications
- Foreign engine reliance:
- Delays indigenous programmes.
- Hampers exports (due to third-party clearances).
- Makes India vulnerable to geopolitical shocks.
- China, U.S., France dominate aerospace due to engine self-sufficiency.
Need for Strategic Vision
- Engine development is not just technical, but political and structural:
- India lacks long-term defence R&D vision.
- Funding is fragmented and short-term.
- Experts call for:
- Structural reforms.
- Strong political backing.
- Public-private-academic partnerships.
- Integrating Atmanirbhar Bharat with serious policy execution.
Conclusion: Autonomy is Non-Negotiable
- India’s AMCA and LCA future hinges on resolving the propulsion gap.
- Indigenous engine capability is essential for:
- Military readiness.
- Credible deterrence.
- Export potential.
- Without it, India’s defence ambitions will remain strategically compromised.
AAIB yet to decide where AI black box will be decoded
Context: Air India Crash and Investigation
- The Air India Boeing 787-8 crashed near Ahmedabad on June 14, 2025.
- Investigation is being led by India’s Aircraft Accident Investigation Bureau (AAIB) under the Ministry of Civil Aviation.
- Two black box sets recovered — one from June 13 and the other on June 16.
Relevance : GS 3(Disaster Management ,Technology)
What Are These Black Boxes?
- Each black box contains:
- Digital Flight Data Recorder (DFDR) – logs flight parameters.
- Cockpit Voice Recorder (CVR) – captures conversations and cockpit sounds.
- The Boeing 787-8 has two sets of recorders (nose and tail) for redundancy — increases data survivability in accidents.
Decoding Decision Pending
- AAIB is yet to decide whether the black boxes will be decoded domestically or abroad.
- Decision will be made based on technical, safety, and security considerations.
India’s Lab Capacity – A New Step
- India did not have a dedicated black box decoding lab before.
- In April 2025, AAIB inaugurated a new DFDR and CVR lab at its HQ with a ₹9 crore investment.
- But it’s unclear if this facility has full capability or international certification to decode high-end aircraft like the 787-8.
Previous Precedent: Kozhikode Crash 2020
- After the Kozhikode crash (2020), the black box was sent to the U.S. National Transportation Safety Board (NTSB).
- Data decoding was overseen by the Indian Ambassador to the U.S.
- At that time, India lacked a black box lab, highlighting dependency on foreign agencies.
Preliminary Reports: A Grey Area
- As per ICAO Annex 13, a preliminary report is required within 30 days.
- But under Indian rules — Aircraft (Investigation of Accidents and Incidents) Rules, 2017:
- There’s no mandatory timeline for preliminary reports.
- The preliminary report is meant only to categorise the incident and assess required expertise.
Kozhikode Case: Final Report Only
- In Kozhikode, no preliminary report was released — only a final report after nearly a year.
- Officials cited risk of public/media backlash if early-stage data differs from final findings.
Implications of Lack of Timelines
- The absence of mandated timelines for preliminary reports in Indian law may lead to:
- Delayed transparency.
- Reduced public trust in aviation safety accountability.
- Non-alignment with international norms.
Strategic Significance
- Deciding whether to decode black box data in India or abroad will test the capability and credibility of the new lab.
- It also raises questions about India’s aviation investigation readiness, especially for wide-body aircraft like the 787.
‘Hindi, English top choice as medium of instruction for Class 10, 12 exams’
Key Findings from Education Ministry Analysis
- Majority of Class 10 & 12 students opted for Hindi and English as mediums of instruction in 2024.
- Among 1.85 crore Class 10 and 1.49 crore Class 12 students:
- 39.3% chose Hindi.
- 31.4% of Class 10 and 38.6% of Class 12 chose English.
Relevance : GS 2(Education , Governance)
Regional Language Preference: Limited but Present
- Only a small fraction opted for regional languages — 0.9% to 6.1%.
- Regional languages considered: Marathi, Bengali, Gujarati, Odia, Kannada, Tamil, Telugu, Urdu, Assamese, Punjabi, Malayalam, Bodo, Sanskrit, Nepali, Santhali, Manipuri.
Class 10 Pass Rates: Below National Average in Some Languages
- National average pass rate for Class 10: 88%.
- Lower pass rates in:
- Gujarati: 82.7%
- Kannada: 75.4%
- Telugu & Assamese: 79.8%
- Indicates possible learning gaps or systemic issues in instruction or exam alignment.
High Performing Regional Mediums in Class 10
- Malayalam: 99.9% pass rate (highest).
- Odia: 98%
- Manipuri & Punjabi: 96.2%
- Shows regional variation in outcomes despite smaller student bases.
Class 12 Pass Rates: Notable Differences by Language
- National average for Class 12: 86.5%
- Low performers:
- Telugu: Only 61.7% pass rate from 1.07 lakh students — a significant concern.
- High performers:
- Tamil, Nepali, Punjabi, Manipuri: 90.5%–92.3%, above national average.
- Gujarati: Despite poor Class 10 performance, Class 12 pass rate is 92.6%.
Switch from Regional to English Medium
- Many state boards follow regional languages till Class 10 and shift to English for Class 12.
- Explains rise in English-medium preference in Class 12 (38.6%) vs Class 10 (31.4%).
Equity and Quality Concerns
- Disparities in outcomes raise questions about:
- Teaching quality in certain regional mediums.
- Curriculum-content alignment with exam standards.
- Access to quality study materials in all languages.
Policy Implications
- Need for targeted support in regional-medium education, especially in underperforming languages like Kannada and Telugu.
- Important to ensure linguistic equity in education — aligning with NEP 2020’s multilingual goals.
Reserve Bank issues project finance directions to banks
What Has the RBI Done?
- The RBI issued the final “Project Finance Directions 2025” on Thursday.
- These directions aim to institutionalise a structured framework for banks and financial institutions (Regulated Entities or REs) to manage project finance, especially in high-risk sectors.
Relevance : GS 3(Banaking )
Revised Provisioning Requirements
- REs must now maintain:
- 1.25% provision for under-construction commercial real estate (CRE) loans.
- 1% for under-construction infrastructure projects.
- These are lower than the draft norms, which proposed:
- 5% for under-construction projects,
- 2.5% during operational stage,
- 1% at cash-generating stage.
- The reduced provisioning makes lending to such projects less capital-intensive.
Operational Stage Relief
- Provisioning reduces further once the project enters the operational phase, thus:
- Encouraging completion and performance-based financial discipline.
- Reducing the capital burden on banks for viable, revenue-generating projects.
Stress Resolution Framework Introduced
- A principle-based regime is introduced to handle stress in project finance exposures.
- Seeks harmonisation across REs to ensure consistency and transparency in managing risks.
Rationalisation of DCCO Extensions
- RBI has rationalised the Date of Commencement of Commercial Operations (DCCO) extensions:
- Infrastructure projects: Max 3-year extension allowed.
- Non-infrastructure projects: Max 2-year extension allowed.
- Beyond these limits, projects may face asset classification downgrades.
Increased Flexibility to Lenders
- Despite setting overall ceilings, the RBI allows commercial discretion to REs in extending DCCO within these limits.
- Empowers lenders to make project-specific decisions while staying within risk parameters.
Why This Matters
- Brings regulatory clarity to long-gestation project lending.
- Aims to balance financial stability with credit flow to critical sectors like real estate and infrastructure.
- Supports growth-oriented, risk-sensitive financial planning by banks.
Implications
- Likely to spur greater bank lending to infrastructure and CRE sectors due to lower provisioning norms.
- Could improve project viability and reduce NPAs if implemented with proper risk assessments.
- Signals RBI’s shift to a more nuanced, risk-based regulation in long-term finance.
‘India FDI slid 1.8% in 2024, share in capital formation declining’
FDI Inflows Declining
- According to UNCTAD’s World Investment Report 2025:
- FDI inflows into India in 2024 fell by 1.8% compared to 2023.
- India attracted $27.6 billion in 2024 — less than half of 2020 levels.
Relevance : GS 3(Indian Economy)
Shrinking Role of FDI in Capital Formation
- FDI’s share in total capital formation:
- Dropped from 8.8% in 2020 to 2.3% in 2024.
- Indicates increased reliance on domestic investments or alternate funding sources.
FDI Stock Relative to GDP
- Total FDI stock in India (i.e., cumulative foreign investment over time):
- Fell from 17.9% of GDP in 2020 to 14% of GDP in 2024.
- Suggests India’s economy grew faster than its ability to attract or retain foreign capital.
Domestic Capital Formation Still Strong
- Despite falling FDI, overall capital formation remained robust.
- Indicates strong domestic investment trends (public and private), potentially mitigating foreign capital slowdown.
Implications for Policy and Economy
- Reflects reduced foreign investor confidence, possibly due to:
- Global economic uncertainties,
- Domestic regulatory or geopolitical concerns,
- Competition from other emerging markets.
- India may need to:
- Improve ease of doing business,
- Ensure regulatory stability, and
- Strengthen infrastructure and investor protection.
Contextual Significance
- FDI is crucial for:
- Technology transfer,
- Export competitiveness, and
- Employment generation.
- Its decline, if sustained, may slow long-term growth and strategic sector development.
The unregulated drink: rethinking alcohol control in India
Scale and Impact of Alcohol Use in India
- Alcohol is unsafe even at minimal consumption — the safe limit is 0 ml.
- 23% of Indian men and 1% of women consume alcohol (NFHS-5).
- India has one of the highest rates of heavy episodic drinking.
- In 2021, alcohol use caused 2.6 million DALYs (Disability-Adjusted Life Years).
- Societal cost of alcohol-related harm is estimated at ₹6.24 trillion.
- Alcohol consumption rose by ~240% over two decades; nearly 50% of it is unrecorded.
Relevance : GS 2(Social Issues)
Determinants of Alcohol Consumption
- (i) Biopsychosocial Factors:
- Genetic predisposition, stress relief, peer pressure, media glamorisation.
- (ii) Commercial Factors:
- New appealing products: fruit-flavored spirits, pre-mixed cocktails.
- Surrogate advertising, sponsorships, and social media amplification.
- Happy hours, sleek packaging, and low pricing (especially IMIL) drive appeal.
- (iii) Policy Factors:
- States hold regulatory power, causing wide policy inconsistencies.
- Alcohol industry lobbies to preserve excise revenues and resist reforms.
Policy and Regulation Landscape
- Prohibition exists in Bihar, Gujarat, Mizoram, and Nagaland.
- Some States (e.g. Kerala, Andhra Pradesh) promote sales or explore online delivery.
- Legal drinking age ranges from 18–25 across States.
- Alcohol excluded from GST, so States levy excise taxes, often vaguely defined.
Weaknesses in National Policies
- India lacks a comprehensive National Alcohol Control Policy.
- Existing national policies focus on isolated issues:
- NAPDDR (2021–22): Addresses supply/demand via multiple ministries.
- NMHP (2014): Recognised alcohol’s role in mental illness/suicide.
- NHP (2017) and NSPS (2022): Advocated higher taxes and restrictions.
- NMAP (2017–22): Called for a cohesive alcohol policy.
Contradictions and Fragmentation
- Alcohol regulation is entangled with:
- State revenues, political interests, and social norms.
- Mixed messaging: While some States promote restrictions, others market alcohol as “traditional” or “affordable.”
- Fragmented institutional roles across ministries dilute accountability and effectiveness.
Recommendations for a National Alcohol Control Strategy
- (i) Affordability: Use pricing to deter abuse but avoid illicit liquor risks.
- (ii) Allocation: Health taxes on alcohol should be earmarked for public health, not general budgets.
- (iii) Accessibility: Reduce visibility and availability in urban/public spaces.
- (iv) Advertisement: Curb “social surrogacy” and algorithmic promotion of alcohol online.
- (v) Attractiveness: Enforce plain packaging, warning labels, and limit point-of-sale promotions.
- (vi) Awareness: Launch large-scale campaigns on alcohol’s links to cancer, suicide, and generational poverty.
- (vii) AI Surveillance: Use AI to detect alcohol promotion and misinformation on digital platforms.
Way Forward
- Alcohol is a public health crisis, not just a revenue source.
- India needs a coordinated, national-level policy focused on people over profit, prevention over revenue, and long-term well-being over short-term gains.
- A systems approach — combining science, equity, and governance — is essential to address the alcohol epidemic.
