Content
- Bengal second-lowest in convictions for crimes against women
- The future of the IMEC
- India’s Municipal Finance Crisis
- Meet AI chatbots replacing India’s call-centre staff
- The new power of rare earths
Bengal second-lowest in convictions for crimes against women
Why in News
- Trigger Event: An alleged gang rape of a medical student from Odisha in Durgapur (Oct 2025).
- Political Reaction: CM Mamata Banerjee’s remarks—suggesting girls should avoid going out at night—sparked public and Opposition backlash.
- Significance: The issue reopens debates on women’s safety, accountability, victim-blaming, and governance failure in West Bengal.
Relevance :
- GS 1: Social issues – women’s safety, gender inequality, victim-blaming, societal norms.
- GS 2: Governance & law – criminal justice system efficiency, role of police and judiciary, NCRB data analysis, implementation of Nirbhaya Fund schemes, fast-track courts.
Background Context
- Previous Incident (2024):
- A woman doctor was raped and murdered at R.G. Kar Medical College, Kolkata.
- The State government issued guidelines to limit women doctors’ night shifts, later withdrawn after Supreme Court criticism for gender discrimination.
- Current Case (2025):
- The victim, a medical student from Odisha, was allegedly gang-raped in Durgapur.
- Public anger intensified due to perceived pattern of administrative inaction.
Statistical Reality: Crime Against Women in West Bengal (NCRB Data 2018–2023)
| Indicator | West Bengal’s Status | Rank (India) | Trend/Observation |
| Crimes against women (annual average >30,000) | Very High | Top 4 | Consistent since 2018 |
| Acid attack & attempt to acid attack | Highest | 1st | 2021–2023 |
| Attempt to rape | Second highest | 2nd | Since 2019 |
| Cruelty by husband or relatives | High | 3rd (after Rajasthan & UP) | 2018–2023 |
| Conviction rate (avg. 2017–2023) | ~5% | 35th/36 States | Extremely poor |
| Conviction rate (2022 peak) | 8.9% | Still among lowest | Marginal improvement |
| Acquittals (2023) | >19,000 cases | Highest | Sharp increase from <8,000 |
| Pending trials (2023) | ~3.7 lakh cases | Highest | +56% rise since 2017 |
Core Issues Identified
- Low Conviction Rate:
- Reflects weak investigation, poor prosecution, and witness intimidation.
- Only 1 in 12 cases result in conviction (2022).
- High Acquittals & Pendency:
- Courts overburdened; lack of fast-track courts and forensic infrastructure.
- Delay → Justice Denied → Impunity.
- Systemic Gaps:
- Poor coordination between police and judiciary.
- Underreporting due to stigma and police apathy.
- Lack of victim support services and shelters.
Socio-Political Dimensions
- Governance Accountability:
- Opposition alleges failure of law and order.
- State government’s “zero tolerance” claim contradicted by data.
- Gender Sensitivity Deficit:
- Administrative response often patriarchal and moralistic.
- Instead of institutional reform, discourse shifts to individual behaviour.
- Judicial and Civil Society Response:
- Calcutta High Court and Supreme Court previously intervened in related cases.
- Civil society demands independent oversight and fast-track mechanisms.
Broader Context in India
- National Picture (NCRB 2023):
- India recorded 4.45 lakh crimes against women, a 4% rise over 2022.
- National conviction rate ~30%, West Bengal only ~5%, showing sharp contrast.
- Highlights state-level variation and policy implementation gaps.
Policy and Legal Framework
- Legal Safeguards:
- IPC Sections 354, 376, etc. (sexual assault & rape).
- Criminal Law (Amendment) Act, 2013 post-Nirbhaya.
- Nirbhaya Fund, One-Stop Centres, Women Helplines (181).
- Implementation in WB:
- Underutilization of central schemes.
- Weak forensic and police infrastructure despite repeated directives.
Way Forward
- Institutional Reforms:
- Establish state-level fast-track courts for gender crimes.
- Modernize forensic labs; integrate digital tracking of cases.
- Police Reforms:
- Increase women officers, sensitization training, and independent oversight.
- Victim Support Systems:
- Strengthen One-Stop Centres, psychological aid, and compensation mechanisms.
- Public Accountability:
- Transparent crime and conviction dashboards.
- Stronger civil society engagement in monitoring and advocacy.
The future of the IMEC
Why in News
- Recent Context (Oct 2025):
- Rising trade frictions with the U.S. have prompted India to diversify trade partnerships with Europe, West Asia, and beyond.
- India is finalizing a trade deal with the U.K. and negotiating with the European Union.
- Simultaneously, renewed emphasis is on operationalizing the India–Middle East–Europe Economic Corridor (IMEC) — envisioned as a strategic trade and connectivity corridor linking India, the Gulf, and Europe.
- However, the West Asian instability post–Hamas attacks (Oct 2023) continues to threaten the corridor’s feasibility.
Relevance :
- GS 2: International relations – India–Middle East–Europe connectivity, trade corridors, I2U2 and multilateral frameworks, strategic autonomy.
- GS 3: Economic development – infrastructure, logistics, energy trade (hydrogen/electricity), supply chain resilience, China’s BRI comparison.
- GS 3: Security – regional stability in West Asia, maritime and cyber dimensions, alternative trade routes amid conflicts.
Background and Genesis
- Launch:
- Announced during the G-20 Summit in New Delhi (Sept 2023) in the presence of leaders from India, the U.S., Saudi Arabia, UAE, France, Germany, Italy, and the European Commission.
- Origin:
- Conceived within the I2U2 framework (India, Israel, UAE, U.S.) aimed at creating economic integration and infrastructure connectivity across Asia and Europe.
- Geopolitical Context:
- The Abraham Accords (2020) normalized Israel–Arab relations, enabling such a corridor proposal.
- Optimism in 2023 for regional peace created momentum for transnational infrastructure planning.
Vision and Structure of IMEC
- Objective: To establish a strategic multi-modal corridor enhancing connectivity between India, the Arabian Peninsula, and Europe.
- Components:
- Maritime Connectivity: Between Indian ports and Gulf ports (e.g., Dubai, Fujairah).
- Rail Connectivity: Linking UAE–Saudi Arabia–Jordan–Israel, culminating at Haifa Port on the Mediterranean.
- Sea Route: Haifa to European ports (e.g., Greece, Italy, France).
- Complementary Infrastructure:
- Clean hydrogen pipeline.
- High-voltage electricity cable.
- Undersea digital cable (telecom data link).
- Integrated logistics and port development.
Strategic Rationale for India
- Diversification Amid U.S. Trade Frictions:
- Reduce overdependence on U.S. markets; expand Europe–West Asia trade axis.
- Alternative to BRI:
- Offers a democratic, rules-based counterbalance to China’s Belt and Road Initiative (BRI).
- Energy and Logistics Security:
- Seamless energy transport (hydrogen, electricity).
- Faster supply chain integration with EU markets.
- Economic Opportunity:
- Europe is India’s largest trade partner ($136 billion trade, 2024–25); IMEC can reduce freight time and cost.
- Geopolitical Leverage:
- Enhances India’s strategic role in West Asia, cementing ties with Saudi Arabia, UAE, and Israel.
Key Geopolitical Developments Impacting IMEC
- October 7, 2023 – Hamas Attacks:
- Sparked Israel–Hamas conflict, destabilizing the entire West Asian region.
- Strained Israel’s ties with Gulf countries that were expected to anchor IMEC.
- Red Sea Crisis (2024–25):
- Houthi attacks on shipping disrupted Suez Canal trade routes, increasing global freight costs by 30–40%.
- Underscored the need for secure alternative corridors like IMEC.
- Arctic Route Competition:
- Melting ice caps have opened northern sea lanes, benefitting Russia, China, and the U.S., diverting trade from the Mediterranean.
- Hence, Italy and other Mediterranean economies see IMEC as crucial to retain relevance in global shipping.
Economic and Strategic Significance
- Trade and Connectivity:
- Reduces India–Europe freight time by up to 40% compared to Suez route.
- Creates interoperable logistics networks connecting Asia, Gulf, and Europe.
- Energy Transition:
- Facilitates clean hydrogen trade, aligning with India’s National Green Hydrogen Mission.
- Digital Integration:
- Undersea cables to enhance data and telecom linkages between India, West Asia, and Europe.
- Strategic Stability:
- Deepens India–Gulf strategic partnerships, reducing Pakistan’s influence in the region.
- Supply Chain Resilience:
- Supports “China+1” diversification, anchoring trusted value chains from India to Europe.
Challenges and Constraints
- Security Risks:
- Ongoing Israel–Hamas conflict, Iran–Saudi rivalry, and Houthi threats could derail regional transit stability.
- Political Uncertainty:
- Shifting U.S.–West Asia diplomacy and changing Arab public sentiments toward Israel.
- Infrastructure Gaps:
- Need for standardization of rail gauges, customs frameworks, and multimodal coordination.
- Financial Viability:
- High upfront cost (~$20–25 billion estimated). Requires multilateral investment and risk-sharing.
- Competition from Arctic and BRI Routes:
- Arctic route reduces Europe–Asia travel time by 40%.
- China’s BRI continues to dominate Eurasian logistics.
Diplomatic and Strategic Opportunities
- India–Europe Partnership Renewal:
- EU’s Global Gateway Initiative (2021) aligns with IMEC goals of sustainable infrastructure.
- India–Gulf Economic Integration:
- Deepening ties with Saudi Arabia and UAE under Comprehensive Economic Partnership Agreements (CEPAs).
- Regional Balancing:
- IMEC provides leverage for India’s strategic autonomy—collaborating with the West without antagonizing the Global South.
- Countering Pakistan’s Narrative:
- Strong India–Arab economic linkages marginalize Pakistan’s attempts at forming anti-India coalitions in West Asia.
Way Forward
- Institutionalizing IMEC:
- Establish a Permanent Coordination Mechanism among members.
- Integrate with I2U2 framework for technology and financing.
- Expanding Participation:
- Engage Egypt, Oman, and Qatar for greater regional integration.
- Focus on Dual Security–Economy Strategy:
- Combine maritime security cooperation with economic corridor development.
- Parallel Trade Diplomacy:
- Expedite FTA negotiations with EU and GCC to enhance market access.
- Public–Private Collaboration:
- Mobilize Indian corporates and Gulf sovereign funds for infrastructure financing.
India’s Municipal Finance Crisis
Context:
- Despite urban India generating nearly two-thirds of the national GDP, its municipalities control less than 1% of India’s total tax revenue.
- Core Issue:
The fiscal architecture of India’s federalism has left cities financially powerless — over-centralised, grant-dependent, and unable to self-finance essential services or issue credible municipal bonds.
Relevance :
- GS 2: Governance – fiscal federalism, 74th Constitutional Amendment, urban governance reforms, intergovernmental transfers.
- GS 3: Economy – municipal bonds, urban revenue generation, property tax reforms, urban infrastructure financing, public goods delivery.
- GS 1: Society – impact on citizens’ welfare, equitable access to urban services, participatory governance.
Background: India’s Urban Revenue Paradox
- Urban India’s Contribution: ~66% of GDP, yet <1% of tax powers.
- Post-GST Impact (2017):
- Municipalities lost ~19% of their own revenue sources (e.g., octroi, entry tax, local surcharges).
- Revenue powers were absorbed into the GST regime, making cities reliant on state and central transfers.
- Result:
- Revenue centralisation: States and Centre retain >95% of tax powers.
- Fiscal autonomy erosion: Cities became implementers, not governors.
How Did Cities Lose Fiscal Autonomy
- Centralisation of Taxes:
- GST subsumed local taxes without creating municipal compensation mechanisms.
- Weak Implementation of 74th Amendment (1992):
- Cities were to be “third tier of governance”, but remained administratively dependent on states.
- Conditional Grants:
- Funds come with strict conditions (e.g., AMRUT, Smart Cities Mission), limiting local discretion.
- Low Own-Revenue Base:
- Property tax contributes only 20–25% of total municipal revenues — politically sensitive and poorly assessed.
- User charges (water, waste, parking) underpriced or poorly collected.
- Creditworthiness Crisis:
- Ratings and RBI norms treat grants as “non-recurring income”, making cities appear fiscally weak.
The Problem: Flawed Model of Fiscal Federalism
- Inadequate:
- Cities lack predictable and untied revenues.
- Dependence on higher governments leads to fiscal uncertainty.
- Unjust:
- Burden shifted onto urban residents through user-pay logic — privatising public goods (water, sanitation, lighting).
- Penalises poorer households in informal settlements.
- Ideological Flaw:
- Treats grants as charity, not entitlements.
- Undermines the redistributive spirit of cooperative federalism.
Municipal Bonds — The “New Frontier” or a Mirage?
- Government Push:
- NITI Aayog, Finance Commission, and World Bank promote municipal bonds for infrastructure finance.
- Reality Check:
- Only a handful of cities (e.g., Pune, Ahmedabad, Indore) have successfully issued bonds.
- Low investor confidence due to:
- Weak financial transparency and audits.
- No stable, predictable revenue stream.
- Dependence on ad-hoc state/central grants.
- Credibility Problem:
- Current credit rating system judges cities narrowly by own revenue, ignoring grants and governance performance.
- This undervalues cities’ real fiscal position.
Why the Current Fiscal Prescription is “Inadequate and Unjust”
- Inadequate because:
- Property tax base too small and politically sensitive.
- Administrative weakness in assessment and collection.
- User charges regressive, hurting low-income groups.
- Unjust because:
- Converts collective goods into commodities (e.g., water, waste).
- Blames cities for inefficiency, while withholding fiscal authority.
- Residents pay more, yet get poor services due to funding shortfalls.
Comparative Perspective: Lessons from Scandinavia
- Denmark, Sweden, Norway Model:
- Cities can levy and collect income taxes directly.
- Enjoy predictable intergovernmental transfers.
- Result: Transparent, accountable, and citizen-trusted local governance.
- Outcome:
- Decentralised fiscal power = efficient urban welfare states.
- Transfers treated as part of a shared fiscal ecosystem, not as discretionary charity.
The Indian Paradox
- Centralised Power, Decentralised Burden:
- Cities are expected to deliver on solid waste, housing, climate resilience, and digital infrastructure without funds.
- Revenue Inversion:
- Accountability lies at local level; fiscal power lies at central level.
- Creates a “democracy deficit” — local governments answerable to citizens but dependent on distant bureaucracies for funds.
The Way Forward
- Reimagine Fiscal Federalism:
- Recognize cities as equal fiscal entities, not beneficiaries.
- Mandate constitutionally guaranteed urban revenue-sharing.
- Reform Municipal Bonds Framework:
- Treat grants and shared taxes as legitimate income for creditworthiness.
- Allow GST compensation or state shares as collateral.
- Empower Local Taxation:
- Modernize property tax systems (GIS mapping, annual revision).
- Rationalize user charges while protecting low-income groups.
- Institutionalise Urban Transfers:
- Create Urban Finance Commissions at the state level.
- Link transfers to transparency, citizen participation, and audit compliance.
- Democratize Urban Governance:
- Strengthen ward committees and citizen budgeting.
- Shift from technocratic to participatory fiscal management.
Meet AI chatbots replacing India’s call-centre staff
Why is it in the News?
- A Reuters investigation (Oct 2025) highlighted how AI chatbots developed by Indian startups like LimeChat (Bengaluru-based) are transforming the customer service and IT outsourcing landscape.
- LimeChat claims its generative AI agents reduce workforce needs by 80%, signaling a major shift in India’s $283 billion IT and BPM (Business Process Management) sector.
- Raises questions on AI-led automation, employment security, and India’s readiness to manage large-scale technological disruption.
Relevance :
- GS 3: Science & technology – AI, automation, digital workforce, IT-BPM sector transformation.
- GS 2: Governance – policy responses to technological disruption, employment regulation, reskilling frameworks.
- GS 1: Society – youth employment, gendered workforce impact, social adaptation to AI disruption.
Background: India’s IT and Outsourcing Sector
- India = world’s back-office hub: Accounts for 52% of global outsourcing (NASSCOM, 2025).
- Contributes 7.5% to India’s GDP; employs over 5 million directly (2024).
- Major strengths: Cheap labour, English proficiency, and large skilled workforce.
- Now faces AI-led automation pressures, especially in routine jobs (customer care, payroll, technical support).
What is Happening: AI-Led Disruption
1. Rise of Conversational AI
- Global market projected to reach $41 billion by 2030, growing at 24% annually (Grand View Research).
- Startups like LimeChat, Haptik (Reliance-owned), and others are automating customer interactions via chatbots.
- AI agents can handle 70% of customer complaints today — aiming for 90–95% automation within a year.
2. Economic Model
- LimeChat’s service: ₹1 lakh/month automates work of 15 agents (~$1,130 = salary of 3 human staff).
- Sales growth: From $79,000 (2022) → $1.5 million (2024) (19x rise).
- Integrations with Microsoft Azure to enhance natural language processing and multilingual capabilities.
3. Automation Impact
- Jefferies (Sept 2025) forecast:
- 50% revenue hit for call centres.
- 35% hit for other back-office functions within 5 years.
- TeamLease Digital data:
- BPM sector hiring fell drastically:
- +1,77,000 (2021–22)
- +1,30,000 (2022–23)
- <17,000 (2023–24 & 2024–25).
- BPM sector hiring fell drastically:
- Workers report AI replacing human evaluators and call quality analysts.
- Increasing job insecurity among India’s 1.65 million BPM employees.
Policy and Governance Dimensions
1. Government Position
- PM Narendra Modi (Feb 2025): “Work does not disappear; its nature changes.”
- Official stance: AI’s impact on employment will be limited in the long run due to new job creation in AI coordination, design, and oversight.
- Lack of dedicated AI-labour impact assessment mechanism so far.
2. Expert Concerns
- Sumita Dawra (ex-Labour Secretary): Advocates for unemployment benefits & social security reforms during AI transition.
- Santosh Mehrotra (University of Bath): Warns that India lacks a policy game plan for workforce reskilling amid AI disruption.
3. Geopolitical/Economic Risks
- U.S. policies:
- 25% tax proposal on outsourcing users.
- $100,000 H-1B visa fee.
- Tariffs on tech services.
- Combined with AI automation, these pose a double shock to India’s IT exports.
Social Implications
- Youth employment crisis risk — fresh graduates face shrinking entry-level IT roles.
- Women disproportionately affected — many occupy back-office or voice-process jobs now being automated.
- Cultural dimension: Many employees, like “Megha,” conceal layoffs from families — indicating social stigma of tech job loss.
- Customer perspective: Despite AI’s efficiency, EY Survey (Aug 2024) found:
- 78% Indians still prefer human support online.
- 62% purchases influenced by AI — shows growing but cautious consumer acceptance.
Opportunities for India
Transition from “Back Office” to “AI Factory”:
- Focus on AI engineering, model fine-tuning, and data annotation.
- Potential to export AI expertise, similar to IT exports in 2000s.
Upskilling Imperative:
- Shift towards AI deployment engineers, process analysts, data trainers, and algorithm auditors.
- Need for AI literacy integration in higher education.
AI Governance Leadership:
- Develop frameworks for ethical AI use, employment impact assessments, and social security nets.
Challenges Ahead
- Skill mismatch: Current workforce not trained for generative AI, automation design, or supervision.
- Policy lag: No AI-specific labour transition strategy or unemployment insurance.
- Corporate risk: Over-automation may harm customer trust (as seen with Sweden’s Klarna “course correction”).
- Ethical and accountability issues: Chatbots providing incomplete or misleading responses (e.g., Knya case).
Conclusion
- India stands at a critical inflection point — balancing automation-led productivity with inclusive employment.
- If managed well: India can become the world’s AI deployment hub (“AI factory”).
- If mismanaged: Risk of technological unemployment, social disruption, and loss of demographic dividend.
- Requires a proactive policy mix — reskilling, social protection, ethical AI frameworks, and strategic public–private collaboration.
The new power of rare earths
Why is it in the News?
- Growing China’s dominance in rare earth elements (REEs) and its strategic leverage in global trade, especially amid US–China tensions.
- Rare earths are critical for clean energy, electronics, defense, and high-tech manufacturing, making them geopolitically sensitive.
- The news is timely due to:
- China’s export controls and potential supply restrictions.
- Global concerns about technological supply chain security.
- Rising strategic competition between China and the US in tech and defense sectors.
Relevance :
- GS 3: Economy – strategic minerals, critical raw materials for technology, EVs, renewable energy.
- GS 2: International relations – China’s dominance, US-China competition, Indo-Pacific mineral diplomacy, supply chain security.
- GS 3: Science & technology – green energy tech, EV batteries, high-tech manufacturing, rare earth metallurgy.
Basics: Rare Earth Elements (REEs)
- Definition: 17 metallic elements (15 lanthanides + scandium + yttrium) with high electrical conductivity, magnetic properties, and heat resistance.
- Applications:
- Electronics: smartphones, semiconductors, display screens.
- Renewable energy: wind turbines, EV batteries, magnets.
- Defense: fighter jets, missile guidance systems.
- Misnomer: Despite the name, REEs are not rare in the Earth’s crust but occur in low concentrations that make extraction economically challenging.
Global Reserves & Production (2021–2022)
- Reserves (in tonnes of REE equivalent content):
- Vietnam: 22,000
- Brazil: 21,000
- Russia: 12,000
- India: 6,90,000 (1st in land-based reserves)
- Australia: 42,000
- USA: 23,900
- Other countries: 42,000
- Production of Rare Earth Oxides (2020–2022):
- China: 180,000–210,000 tonnes → >50% of global production.
- USA: 25,000–28,500 tonnes.
- Australia: 14,500–15,900 tonnes.
- Others: Russia, Vietnam, Malaysia, Madagascar contribute smaller shares.
China’s Strategic Dominance
- Controls ~60–80% of global REE production and processing, creating a near-monopoly.
- Extracts and refines REEs at low costs due to:
- Vertical integration of mining, separation, and refining.
- Economies of scale and state subsidies.
- Leverages REEs as a geopolitical tool:
- Past examples: export restrictions to Japan (2010), potential leverage against the US and allies.
- Creates supply chain vulnerabilities for critical industries in Europe, US, Japan.
Challenges for Other Countries
- High extraction costs: REEs often in low concentrations, requiring environmentally intensive processes.
- Limited refining capability: Even countries with reserves (USA, Australia, India) rely on China for refining and separation.
- Geopolitical dependence: Western countries cannot easily replace Chinese REEs due to lack of infrastructure.
Global Market Dynamics
- Demand surge: Driven by EVs, wind turbines, electronics, and defense tech.
- China’s pricing power: Can influence global REE prices through:
- Export quotas
- Tariffs
- Technology partnerships and strategic stockpiling
- US & allied responses: Initiatives to develop domestic extraction and processing, e.g., Mountain Pass mine (USA), Australian ventures.
India’s Position
- India has 6,90,000 tonnes of REE reserves (notably in Odisha, Andhra Pradesh, and Karnataka).
- Challenges:
- Low extraction and refining capacity.
- Lack of commercial-scale processing plants.
- Opportunities:
- Partner with US, Japan, Australia to develop domestic REE value chain.
- Potential hub for strategic minerals in the Indo-Pacific supply chain.
Environmental and Regulatory Issues
- REE extraction is chemically intensive and environmentally risky, producing toxic waste.
- Countries need strict regulations and eco-friendly technologies for sustainable mining.
- China has historically prioritized economic output over environmental concerns, giving it cost advantage.
Impact on Global Economy and Geopolitics
- REEs are critical for green energy transition: EVs, wind turbines, batteries.
- Any supply disruption by China can affect:
- US and EU defense industries.
- EV and semiconductor manufacturing.
- Countries are increasingly investing in domestic REE projects and diversifying supply chains.
