The Hindu — UPSC Analysis
Thursday, 5 June 2026
World Environment Day Special · Bengaluru City Edition · Curated for Prelims & Mains | GS I · II · III · IV
📋 Today's Topics
- Great Nicobar Project: Was "Strategic" Tag an Afterthought?GS3 · GS2
- Funding India's Climate Future — A Trillion-Dollar QuestionGS3
- Ecosystem-based Adaptation: Mangroves over SeawallsGS3
- A National Environmental Survey of India — EnvSIGS3 · GS2
- El Niño, Late Monsoon and the EconomyGS1 · GS3
- Draft SC Rules on AI in CourtsGS2 · GS3
- Census 2027 and the Integrity of DataGS2
- Urban Fire Safety: Recurring TragediesGS3 · GS2
- Indus Waters Treaty & the Chenab ProjectsGS2
- India-UK Critical Minerals ObservatoryGS2 · GS3
- Capital Gains Tax Relief for FPI in G-SecsGS3
- Double Burden of Malnutrition & NFHS-6GS2
- PMKVY Pulled Up by PAC / CAGGS2 · GS3
- Quick Prelims Revision (MCQ Bank)Prelims
- FAQsRevision
Great Nicobar Project: Was the "Strategic" Tag an Afterthought?
Context
The Finance Ministry's Public Investment Board (PIB) had in August 2024 termed the proposed International Container Transhipment Port (ICTP) at Galathea Bay, Great Nicobar, as lacking "strategic objectives". A little over a year later, in March 2026, the Ministry of Defence formally notified the same project as a "strategic project" — the very label the Centre has used since 2022 to withhold the High Powered Committee (HPC) cumulative environmental impact report and to reject RTI requests on environmental clearances.
Background & Key Facts
- Project components: ₹81,000-crore Great Nicobar Island Development Project — ICTP, township, airport, gas-powered plant and a tourism zone.
- Proponent: Andaman & Nicobar Islands Integrated Development Corporation (ANIIDCO); implementing agency for the port is Kamarajar Port Ltd (KPL), Chennai.
- Galathea Bay: Critical nesting site of the Giant Leatherback turtle; falls within the ecologically sensitive Great Nicobar Biosphere Reserve, home to the Shompen and Nicobarese tribes (PVTGs).
- Appraisal bodies: PIB appraises large public investments; PPPAC (Public-Private Partnership Appraisal Committee) vets PPP proposals of ₹500 crore and above. Viability Gap Funding (VGF) is a one-time grant to make economically-justified-but-commercially-marginal projects bankable.
Commercial vs Strategic — The Shifting Record
| Dimension | What the record shows |
|---|---|
| Original framing (2021–23) | A commercial transhipment hub to capture cargo routed via Colombo, Singapore, Port Klang; projected forex savings ~$200 million/yr, ~$1 billion by 2047. |
| PIB view (Aug 2024) | Lacked a strategic case; advised MoPSW to add one. |
| PPPAC (Mar 2026) | Cleared "unanimously" but refused ₹12,230 crore VGF, asking MoPSW to use internal budget. |
| Defence notification (Mar 2026) | Reclassified as "strategic" — strengthening the secrecy ground. |
Transparency deficit: Using a "strategic" tag to deny RTI and withhold environmental impact studies undermines public accountability over irreversible ecological decisions.
Sequencing concern: A strategic rationale notified after appraisal bodies flagged its absence invites the criticism (voiced by MP Jairam Ramesh and researcher Pankaj Sekhsaria) that the security narrative is being retrofitted onto a commercial enterprise.
Expert scepticism: Former service chiefs have argued existing military presence can be reinforced without ecological damage; one called infrastructure without a maritime doctrine "a platform without a theory".
Federal/tribal dimension: Impact on Shompen and Nicobarese, and on a UNESCO-recognised biosphere, raises questions under the Forest Rights Act and PESA principles.
- Separate the genuine strategic-security case from the commercial case and subject each to independent scrutiny.
- Place the HPC cumulative-impact report in the public domain.
- Uphold free, prior and informed consent of tribal communities.
- Treat the Indian Ocean maritime doctrine as the basis for any defence infrastructure, not a label of convenience.
Galathea Bay ANIIDCO / KPL PIB & PPPAC Viability Gap Funding Giant Leatherback Turtle PVTGs — Shompen & Nicobarese Great Nicobar Biosphere Reserve
MCQ: Galathea Bay — Great Nicobar Development
"Galathea Bay", recently in the news, is associated with:
- A proposed transhipment port in the Great Nicobar Island
- A coral restoration site in the Gulf of Mannar
- A deep-sea mining lease in the Central Indian Ocean
- A mangrove project in the Sundarbans
Funding India's Climate Future — A Trillion-Dollar Question
Context
On World Environment Day, the central argument is that India's climate-finance bottleneck is not the absence of money but the absence of institutional architecture to mobilise capital at scale. India needs roughly ₹162.5 trillion (~$2.5 trillion) by 2030 to meet its Nationally Determined Contributions; net-zero by 2070 is estimated at ~$10.1 trillion — nearly three times current GDP.
Background & Key Facts
- NDCs: Updated targets — 45% reduction in emissions intensity of GDP from 2005 levels by 2030; 50% non-fossil installed capacity by 2030; net-zero by 2070.
- Global finance promises: $100 billion/yr promised at Paris (and missed); Baku NCQG commits $300 billion by 2035, which India considers insufficient.
- Priority Sector Lending (PSL): RBI tool; eligible green activities can now qualify as PSL.
- Taxonomy: A legal definition of "green"; FM announced a climate-finance taxonomy in Budget 2024-25; Ministry of Steel has a Green Steel Taxonomy.
- Blended finance: Use of public/concessional funds to de-risk private investment.
The Financing Gap — Key Figures
| Element | Figure / Fact |
|---|---|
| NDC need by 2030 | ~₹162.5 trillion ($2.5 trillion) |
| Decarbonising steel, cement, power, road transport (2022–30) | ~$467 billion additional capex; ~$54 billion/yr (1.3% of GDP) |
| RBI estimate (green financing till 2030) | At least 2.5% of GDP per year, additional |
| India's green/sustainability debt by end-2024 | $55.9 billion (186% rise since 2021); green debt = 83% |
| Sovereign green bonds issued | ₹477 billion |
| Blended finance leverage | $100 million first-loss guarantee can unlock $500 million–$1 billion private co-investment |
Sectoral economics: Green steel and green cement are not yet viable without policy support; the private sector will not lead without regulatory incentives.
RBI's pivotal role: 2025 RBI Climate Finance Directions integrate climate risk into bank lending; the next frontier is differentiated capital requirements (making brown lending more capital-intensive).
Federal disaggregation: Adaptation is delivered at the State level, but States lack the borrowing capacity and institutional infrastructure to tap international climate finance. Tamil Nadu and Kerala show State-level ambition is possible.
- Finalise and enact the Climate Finance Taxonomy — the single most leveraged action.
- RBI to move from enabling to mandating green finance — differentiated capital norms, mandatory climate stress-testing, expanded PSL to include adaptation.
- Establish a State Climate Finance Facility (Union + NABARD + international sources) for State and municipal access to green debt.
- Scale sovereign green bonds and embed them in the SLR framework.
NDCs & Net-Zero 2070 Baku NCQG Priority Sector Lending Climate Finance Taxonomy Blended Finance Sovereign Green Bonds RBI Climate Finance Directions 2025
MCQ: Priority Sector Lending & Green Finance
With reference to Priority Sector Lending (PSL), consider the following statements:
- It is a tool used by the RBI to direct credit to specified sectors.
- Eligible green activities can now qualify as PSL.
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Ecosystem-based Adaptation: The Power of Mangroves over Seawalls
Context
India's coastal adaptation spending overwhelmingly favours "grey" engineered measures — seawalls, groynes, embankments, tetrapods — while Ecosystem-based Adaptation (EbA) through mangroves, seagrasses and coral reefs remains under-recognised and underfunded, despite proven, cost-effective protection.
Background & Key Facts
- EbA: Use of biodiversity and ecosystem services to help people adapt to climate change. India is identified as a global "hotspot" for coastal EbA, with mangroves protecting more people per hectare than almost any other country.
- Coastline: ~11,000 km; ~250 million people exposed to rising seas, salinity intrusion, cyclones and storm surges.
- Key schemes/concepts: National Coastal Mission; MISHTI (Mangrove Initiative for Shoreline Habitats & Tangible Incomes); Nature-based Solutions (NbS); Eco-DRR; EbCA.
Grey vs Green — A Comparison
| Aspect | Grey (Engineered) | Green (EbA) |
|---|---|---|
| Spend | ₹2,641 crore by coastal States in a decade | National Coastal Mission budget fell ₹195 crore (2022-23) → ₹50 crore (2024-25) |
| Cost | Expensive to maintain; can displace risk (e.g., Kerala armouring accelerated erosion nearby) | Self-renewing; delivers co-benefits |
| Co-benefits | None | Sundarbans: 18,000+ women restored 4,600 ha; livelihoods via honey, crab farming; blunted Cyclones Amphan & Yaas |
Classification problem: Because EbA interventions are buried inside broader restoration/development programmes, India's true EbA portfolio looks weaker than it is — leading to undercounting of its most effective climate responses.
Policy relevance: The Global Goal on Adaptation has renewed attention on how adaptation is measured and reported; without clear tracking, India cannot credibly claim outcomes or unlock finance.
- Embed EbA as a distinct, classified category within coastal planning.
- Establish monitoring of adaptation outcomes.
- Reposition natural capital as a resilient, equitable line of coastal defence rather than a residual to grey infrastructure.
Ecosystem-based Adaptation (EbA) MISHTI Scheme Nature-based Solutions Eco-DRR National Coastal Mission Sundarbans Mangroves
MCQ: Ecosystem-based Adaptation (EbA)
"Ecosystem-based Adaptation (EbA)" along India's coast includes which of the following?
- Mangrove restoration
- Seagrass meadows
- Coral reefs
- Tetrapods and groynes
- 1, 2 and 3 only
- 1, 2 and 4 only
- 2, 3 and 4 only
- 1, 3 and 4 only
A National Environmental Survey of India (EnvSI)
Context
The article argues India lacks a comprehensive, credible account of the state of its environment and proposes an Annual Environmental Survey of India (EnvSI) — a unified platform to aggregate evidence, conduct independent audits, issue assessments and grade performance, modelled on the Economic Survey.
Background & Key Facts — Scale of the Crisis
- Yale survey (Dec 2024–Feb 2025) of 10,751 Indians: heat waves (71%), pests/diseases (60%), power outages (59%), water pollution (53%), droughts (52%), air pollution (52%).
- ~29.7% of India's land is degraded (Desertification & Land Degradation Atlas).
- Air pollution (2022) reduced average life expectancy by ~3 years.
- MoEFCC receives only ~0.07% of the annual budget.
Proposed Benefits of EnvSI
- Prevent further degradation through coordinated action and better resource use.
- Support timely achievement of climate targets and unlock climate finance.
- Align development with conservation while protecting tribal rights and displaced communities.
- Strengthen the commons by recognising ecosystem-species-society interdependence.
Data already exists but is fragmented across agencies, think-tanks and the private sector; what is missing is a system to integrate, cross-verify and grade it independently.
Requires statutory mandate, functional autonomy and protected tenure for an expert-led body to present "inconvenient truths" — akin to the Chief Economic Adviser's independence.
- Create a statutory EnvSI body with functional independence, protected tenure and a mandate to publish annual environmental grades.
- Integrate fragmented data from MoEFCC, CPCB, FSI, GSI and private research into one verified platform.
- Increase MoEFCC's budgetary share substantially beyond the current ~0.07%.
Desertification & Land Degradation Atlas MoEFCC Budget Share Economic Survey — Analogy Environmental Data Institutions
MCQ: India's Land Degradation & Environmental Budget
Consider the following statements regarding India's environmental governance:
- Approximately 29.7% of India's land is degraded according to the Desertification & Land Degradation Atlas.
- The Ministry of Environment, Forest and Climate Change (MoEFCC) receives more than 1% of the annual Union Budget.
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
El Niño, a Late Monsoon, and the Economy
Context
The southwest monsoon set in over Kerala on June 4, three days late and five days behind the IMD's own forecast — the first time since 2015 the onset call was missed beyond the error margin. It arrives under the shadow of a strengthening El Niño. The deeper argument: in India, a climate shock is an economic transmission mechanism that moves quickly into the labour market, the mandi, the kitchen and the city.
Background & Key Facts
- El Niño / ENSO: Warming of the central-eastern Pacific; typically suppresses the Indian monsoon. NOAA: 82% chance during May–July 2026, 96% through winter 2026–27. WMO puts El Niño development at ~80% for July–August.
- IMD forecast: Below-normal monsoon at ~90–92% of the Long Period Average (LPA). Normal onset over Kerala = June 1.
- Dependence: SW monsoon supplies ~70% of crop-watering rainfall; more than half of cropped area is rain-fed.
- Food inflation: Rose to 4.2% (April 2026); a weak monsoon can worsen it further.
Three Economic Transmission Channels
| Channel | Mechanism | Who bears it |
|---|---|---|
| Heat | Lower productivity, fewer working hours, outdoor exposure | Construction, delivery, vendors, farm labour |
| Agriculture | Riskier sowing, costlier irrigation, more groundwater extraction | Small & marginal farmers |
| Inflation | Food inflation rose to 4.2% (April 2026); a weak monsoon can worsen it | All households, esp. urban poor |
The same shock can simultaneously weaken growth and stoke inflation — a hard policy trade-off for the RBI's Monetary Policy Committee.
Urban heat traps (concretisation, shrinking green cover) widen inequality: wealthier households adapt with cooling; the poor face overcrowding and prolonged exposure.
- Treat El Niño as a development challenge — heat-resilient city design and worker protection (heat action plans).
- Strengthen crop insurance (PMFBY) and buffer-stock-led price stabilisation.
- Proactive reservoir and groundwater management to cushion agricultural stress.
El Niño / ENSO Long Period Average (LPA) SW Monsoon Onset — Kerala NOAA & WMO PMFBY MPC & Inflation Trade-off
MCQ: El Niño and the Indian Monsoon
The phenomenon of El Niño is best described as:
- Cooling of the central-eastern Pacific that strengthens the Indian monsoon
- Warming of the central-eastern Pacific that typically suppresses the Indian monsoon
- A periodic reversal of the Indian Ocean Dipole
- A jet-stream shift over the Tibetan Plateau
Draft Supreme Court Rules on AI in Courts
Context
The Supreme Court's AI committee has released a preliminary draft of the "Regulations for Use of Artificial Intelligence (AI) in Courts, 2026", barring AI from determining judicial outcomes, prohibiting AI profiling of parties/witnesses, and disallowing "opaque" or "unexplainable" AI systems. Public comments are invited till June 20, 2026.
Background & Key Facts
- Trigger: In March 2026, a Bench led by Justice P.S. Narasimha chided a trial court for relying on non-existent AI-generated judgments, calling it not just error but judicial "misconduct".
- Committee chaired by Justice P.S. Narasimha.
- Personal data processing under these regulations to be governed by the Digital Personal Data Protection (DPDP) Act, 2023.
Permitted vs Prohibited Uses
| Permitted (Assistive) | Prohibited |
|---|---|
| Case management, cause-list preparation, scheduling, transcription, translation of judgments | Risk scoring — flight risk, recidivism prediction, bail eligibility, witness credibility |
| AI "strictly subservient to human judgment" | Surveillance/monitoring of judges, advocates, litigants; bias on protected grounds |
Human-in-the-loop: Higher-risk applications get heightened safeguards and independent oversight — aligning India with the EU AI Act's risk-tiered logic.
Equity: The draft cautions AI must not "widen digital divides" and must remain accessible to rural, poor and linguistically diverse users.
Institutional design: Proposes a full-time "apex body" at the SC — comprising two SC judges, HC Chief Justices/judges, a MeitY officer, and finance and cybersecurity experts.
- Finalise the draft after incorporating public and expert comments by June 20 deadline.
- Mandate auditability and explainability for all AI tools deployed in courts.
- Align with DPDP Act, 2023 for personal data processing within judicial AI systems.
DPDP Act 2023 EU AI Act — Risk Tiers SC AI Committee Judicial Misconduct — AI Hallucinations AI Regulations 2026 (Draft)
MCQ: SC Draft AI Regulations 2026
With reference to the draft "Regulations for Use of Artificial Intelligence in Courts, 2026", which of the following is NOT prohibited?
- AI-based risk scoring for bail eligibility
- AI tools for cause-list preparation and scheduling
- AI profiling of parties and witnesses
- Use of opaque/unexplainable AI systems
Census 2027 and the Integrity of Data
Context
Reports from Rajasthan and Uttar Pradesh suggest Census 2027 enumerators (in the ongoing Houselisting & Housing phase) have been asked to "revisit households and correct discrepancies" and "not to select options that may show the government in a poor light" — raising concerns about data integrity in a sensitive and constitutionally critical exercise.
Background & Key Facts
- Census conducted under the Census Act, 1948, by the Office of the Registrar General and Census Commissioner of India (RGI), Ministry of Home Affairs.
- Two phases: (1) Houselisting & Housing Census (HLO); (2) Population Enumeration.
- ODF classifications: Open Defecation Free, ODF Plus, ODF Plus Model (under Swachh Bharat Mission).
- Estimated cost of the full Census 2027 exercise: ~₹11,718 crore.
- Specific concern: Enumerators allegedly told to change entries from "open defecation" to "access to latrine" if a toilet is available nearby — recording data "based on assumptions" rather than ground reality.
Re-verification vs sanitisation: Legitimate re-verification reflects reality; managing perceptions corrupts the dataset on which welfare schemes and funding are built.
Policy feedback loop: Inaccurate ODF classification creates a conflict between administrative targets and enumerators' fieldwork — eroding evidence-based policymaking.
Enumerator welfare: The Union should liberally enhance allowances for efficient, timely and honest fieldwork.
- Statutory protection for enumerators who report ground truth — even when it conflicts with programmatic targets.
- Independent civil society monitoring of the Houselisting phase.
- Enhance enumerator remuneration to incentivise honest, thorough fieldwork.
- Parliamentary oversight committee to review Census methodology and data quality.
Census Act 1948 RGI — Ministry of Home Affairs ODF / ODF Plus / ODF Plus Model Houselisting & Housing Census (HLO) Swachh Bharat Mission
MCQ: Census Act & Enumeration
Consider the following statements about Census 2027:
- The Census is conducted under the Census Act, 1948, by the Registrar General of India under the Ministry of Home Affairs.
- The Census has two phases: Houselisting & Housing Census, followed by Population Enumeration.
- The estimated cost of Census 2027 is approximately ₹50,000 crore.
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- All three
Urban Fire Safety: Recurring, Preventable Tragedies
Context
Two recent fires — a B&B blaze in Delhi's Malviya Nagar (21 dead, June 3) and an ICU fire at a private hospital in Muzaffarpur, Bihar (5 dead, June 5) — expose chronic vulnerabilities: overcrowding, blocked escape routes, unapproved modifications, poor compliance and weak enforcement.
Background & Key Facts
- Fire services are a State subject; the National Building Code (NBC) and NDMA guidelines set fire-safety standards.
- Pattern of disasters: Uphaar Cinema (1997) → Arpora nightclub (2025) — same recurring failures over nearly three decades.
- Delhi B&B reportedly lacked fire clearance, had more than 3× permitted rooms, and exploited land-use exemptions to bypass road-width bylaws for fire tenders.
- Delhi HC had issued an audit order in January 2026; it was reportedly ignored.
Why Tragedies Recur — Systemic Failures
| Failure | Manifestation |
|---|---|
| Economic incentive | Cost-cutting; safety value ignored when there is no fire |
| Enforcement | Sporadic, perfunctory inspections; ignored court directions (Delhi HC's Jan audit order) |
| Vulnerable victims | Medical tourists, the infirm and ICU patients unable to escape quickly |
| Accountability | "Culpable homicide not amounting to murder" charges rarely yield convictions |
The state must build a culture of fire safety through principled inspections, incentives and sanctions — not episodic post-tragedy inquiries. Blaming owners for "clandestine" modifications must extend to the absence of enforcement; political blame-games are a red herring. Both the incidental causes and the systemic factors that preserved the risk must be addressed.
- Mandatory third-party fire audits for B&Bs, hospitals and high-density occupancy buildings.
- Stringent, time-bound accountability for inspectors who certify non-compliant premises.
- Amend building by-laws to close land-use exemption loopholes that allow narrow access roads.
- Central coordination mechanism (advisory only, given State subject status) to standardise enforcement nationwide.
National Building Code (NBC) NDMA Fire Guidelines Fire Services — State Subject Uphaar Cinema Case Culpable Homicide — IPC
MCQ: Urban Fire Safety & Governance
Consider the following statements about fire safety governance in India:
- Fire services is a Central subject under the Union List of the Seventh Schedule.
- The National Building Code (NBC) sets fire-safety standards for buildings in India.
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Indus Waters Treaty & the Chenab Projects
Context
Pakistan has alleged that two Indian river projects on the Chenab would "weaponise" water and violate the Indus Waters Treaty (IWT). India maintains it is within its rights on waters it controls. New Delhi had announced a suspension of the IWT in the lead-up to recent hostilities, while Islamabad insists the treaty still binds both governments.
Background & Key Facts
- IWT (1960): Brokered by the World Bank; allocates the three Eastern rivers (Ravi, Beas, Sutlej) to India and the three Western rivers (Indus, Jhelum, Chenab) largely to Pakistan, with India permitted limited non-consumptive, run-of-the-river use on Western rivers.
- Dispute mechanism: Permanent Indus Commission → Neutral Expert → Court of Arbitration.
- Chenab is a Western river; storage and design parameters of Indian projects (e.g., spillway, pondage) are recurring points of contention.
Treaty Dispute Flow
Legal status of "suspension": The IWT has no explicit exit clause; "suspension/abeyance" is contested under treaty law (Vienna Convention on the Law of Treaties principles).
Strategic leverage vs obligations: Water as a coercive tool risks regional escalation and sets precedents that could be used against lower riparians elsewhere in the region.
Hydro-diplomacy: India's upper-riparian position gives leverage but also responsibility for downstream stability — a dimension often underweighted in security-first narratives.
- Any modification of the IWT must proceed via the treaty's own dispute-resolution mechanism rather than unilateral declaration.
- Separate water-resource management from coercive diplomacy to preserve India's credibility as a responsible upper riparian.
- Anchor any revised treaty framework in a comprehensive transboundary water doctrine.
IWT 1960 — World Bank Eastern vs Western Rivers Permanent Indus Commission Vienna Convention on Treaty Law Chenab — Western River Run-of-the-River Use
MCQ: Indus Waters Treaty (1960)
Consider the following statements regarding the Indus Waters Treaty (1960):
- It was brokered by the World Bank.
- It allocates the three Western rivers — Indus, Jhelum and Chenab — primarily to Pakistan.
- It contains an explicit clause permitting unilateral exit by either party.
How many of the above are correct?
- Only one
- Only two
- All three
- None
India-UK Critical Minerals Global Supply Chain Observatory (GSCO)
Context
India and the UK launched the Critical Minerals Global Supply Chain Observatory (GSCO) — a data-driven platform to monitor and analyse global critical-mineral supply chains, jointly operated by India's TEXMiN (IIT-ISM Dhanbad) and the University of Cambridge.
Background & Key Facts
- Critical minerals: Lithium, cobalt, nickel, rare earths, etc., essential for clean-energy transition, EVs, electronics and defence.
- India's domestic framework: National Critical Mineral Mission; Khanij Bidesh India Ltd (KABIL) for overseas acquisition; amendments to the MMDR Act enabling auction of critical mineral blocks.
- Broader bilateral context: India-UK Comprehensive Economic & Trade Agreement (CETA) and a defence industrial roadmap.
- TEXMiN — Centre of Excellence for Mining & Mineral sector — is hosted by IIT-ISM Dhanbad.
De-risking concentration: The GSCO de-risks over-dependence on a single source country (China dominates rare-earth processing) by building resilient, transparent supply chains backed by real-time data.
Strategic template: Coupling a trade agreement (CETA) with strategic-resource cooperation establishes a replicable "friend-shoring" model for India's other bilateral partnerships.
- Expand GSCO membership to include other Quad and G20 partners to diversify data and sourcing networks.
- Accelerate KABIL's overseas acquisition pipeline, especially in lithium-rich African and Latin American nations.
- Fast-track domestic critical mineral block auctions under the amended MMDR Act.
GSCO — TEXMiN & Cambridge KABIL National Critical Mineral Mission MMDR Act — Critical Minerals India-UK CETA Rare Earths — China Dominance
MCQ: Critical Minerals — India's Framework
With reference to India's critical minerals strategy, consider the following:
- KABIL (Khanij Bidesh India Ltd) is tasked with acquiring critical mineral assets overseas.
- TEXMiN, a partner institution in the India-UK GSCO, is hosted by IIT-ISM Dhanbad.
- The MMDR Act has been amended to enable auction of critical mineral blocks in India.
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- All three
Capital Gains Tax Relief for Foreign Investors in G-Secs
Context
India plans to scrap the capital gains tax on foreign portfolio investment in government securities (and may remove the 20% withholding tax on interest), aiming to attract foreign capital and counter pressure on the rupee, which has weakened over 5% this year.
Background & Key Facts
- Foreign investors currently face a 12.5% long-term capital gains (LTCG) tax on listed shares and bonds held over 12 months.
- Context: Rupee depreciation from higher oil prices (US-Iran tension) and FPI outflows from equities.
- India's bonds are part of global bond indices (e.g., JP Morgan GBI-EM), increasing the salience of tax friction for passive foreign investors.
- Food inflation rose to 4.2% (April 2026); a weak rupee can exacerbate imported inflation.
Economists note the move "won't be a magic bullet" but can help flows at the margin and is positive in the medium term.
The Opposition framed the parallel removal of 12.5% LTCG as the government being in "panic mode", arguing temporary tax measures cannot substitute for structural reform.
Key trade-off: Revenue forgone vs capital attraction and currency stability — especially pertinent when fiscal consolidation is a stated objective.
- Complement tax relief with structural reforms — improving ease of doing business and deepening the bond market.
- Retain a phased approach to LTCG removal to monitor revenue impact before full elimination.
- Coordinate with RBI for complementary forex market interventions to stabilise the rupee.
FPI — G-Sec Investment LTCG Tax — 12.5% JP Morgan GBI-EM Index Withholding Tax Rupee Depreciation Drivers
MCQ: FPI, G-Secs and Capital Gains Tax
India's plan to scrap capital gains tax on FPI investment in Government Securities is primarily intended to:
- Reduce the fiscal deficit by attracting more domestic savings into G-Secs
- Attract foreign capital inflows and ease depreciation pressure on the rupee
- Bring India's bond market under the supervision of SEBI exclusively
- Incentivise retail investors to shift from equities to debt instruments
The Double Burden of Malnutrition & NFHS-6
Context
A Vellore cohort study (CMC-Vellore & ARUMDA, TIFR) and the just-released NFHS-6 point to India's "double burden of malnutrition" — undernutrition (wasting, stunting) and overnutrition (overweight, obesity) co-existing in the same population. Thinness and overweight begin to rise sharply between ages seven and nine.
Background & Key Facts
- WHO definition: Malnutrition includes undernutrition (wasting, stunting, underweight), micronutrient deficiency, and overweight/obesity leading to diet-related NCDs.
- ~45% of study children were stunted at age two.
- By age nine: underweight 21.6% and overweight/obesity 14.6% — both in the same cohort.
- NFHS-6: 30.7% of women (15–49) overweight/obese in 2023-24, up from 24% in NFHS-5 — a significant rise in under a decade.
- First 1,000 days principle: critical window for nutritional intervention.
- "Lean diabetes" (proposed Type 5): malnutrition-related diabetes in lean individuals — a uniquely Indian/South Asian phenomenon.
Trans-generational burden: Maternal BMI predicts childhood thinness — yet maternal health interventions remain under-examined in policy.
Food environment: Cheap packaged, sugary, deep-fried foods are widely accessible; healthy fruits, vegetables and proteins are not — a market failure that policy must address.
Policy lag: Programmes designed for undernutrition (ICDS, mid-day meals, PDS) must be redesigned to tackle both calorie deficiency and ultra-processed, high-sugar, high-fat diets — as recommended by the FAO.
- Redesign ICDS and mid-day meal menus to reduce ultra-processed ingredients and increase protein, micronutrients and fibre.
- Introduce front-of-pack nutrition labelling (FOPL) legislation and restrict marketing of junk food to children.
- Strengthen maternal nutrition programmes beyond the first 1,000 days to address intergenerational cycles.
- Integrate NCD screening within anganwadi and school health platforms.
NFHS-6 (2023-24) Double Burden of Malnutrition Wasting / Stunting / Underweight First 1,000 Days Type 5 / Lean Diabetes ICDS & Mid-Day Meal Scheme
MCQ: NFHS-6 & Malnutrition
Consider the following statements regarding India's malnutrition data:
- NFHS-6 reports that 30.7% of women aged 15–49 were overweight or obese in 2023-24.
- The "double burden of malnutrition" refers to undernutrition and overnutrition co-existing in the same population.
- "Lean diabetes" (proposed Type 5) refers to obesity-linked diabetes common in urban India.
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- All three
PMKVY Pulled Up by PAC Citing CAG Report
Context
Parliament's Public Accounts Committee (PAC), citing a CAG audit, criticised the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) for disproportionately skilling for low-demand jobs (e.g., retail) and for weak placement outcomes and outright fraud.
Background & Key Facts
- PMKVY: flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE), launched July 2015.
- PAC is chaired, by convention, by an Opposition member (here, K.C. Venugopal); examines CAG reports.
Key CAG / PAC Findings
| Finding | Detail |
|---|---|
| Skill-demand mismatch | Apparel, electronics, retail = 40% of trainees; food processing only 0.48%; tourism 3.8% |
| Placement | Only 41% of trainees placed in a job after training |
| Fraud | A non-existent company ("Neelima Moving Pictures") awarded certifications to 33,493 participants; no responsibility fixed |
The Centre blamed States (implementing agencies); the PAC noted lack of planning despite the scheme running since 2015 — a decade without resolving structural mismatches.
Demographic-dividend stakes are high: unemployment has been flagged as "the biggest threat" to India's growth story — skilling must align with industry demand and ensure accountability for fraudulent certifications.
- Introduce real-time industry demand mapping to guide sector-wise training allocations.
- Fix mandatory placement targets with financial penalties for training partners who fail to achieve them.
- Establish a digital registry of training providers with criminal liability for fraudulent certification.
- Empower PAC recommendations with time-bound executive compliance reports.
PMKVY — MSDE Public Accounts Committee (PAC) CAG — Article 148 PAC Chair — Opposition Convention Skill India Mission
MCQ: PAC & PMKVY Audit
The Public Accounts Committee (PAC) of Parliament:
- Examines the audit reports of the Comptroller and Auditor General of India.
- Is chaired, by convention, by a member of the ruling party.
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
📝 Quick Prelims Revision — MCQ Bank
Q1 — Indus Waters Treaty: Statements
Consider the following statements regarding the Indus Waters Treaty (1960):
- It was brokered by the World Bank.
- It allocates the three Western rivers — Indus, Jhelum and Chenab — primarily to Pakistan.
- It contains an explicit clause permitting unilateral exit by either party.
How many of the above are correct?
- Only one
- Only two
- All three
- None
Q2 — Galathea Bay
"Galathea Bay", recently in the news, is associated with:
- A proposed transhipment port in the Great Nicobar Island
- A coral restoration site in the Gulf of Mannar
- A deep-sea mining lease in the Central Indian Ocean
- A mangrove project in the Sundarbans
Q3 — Priority Sector Lending & Green Finance
With reference to Priority Sector Lending (PSL), consider the following:
- It is a tool used by the RBI to direct credit to specified sectors.
- Eligible green activities can now qualify as PSL.
- 1 only
- 2 only
- Both
- Neither
Q4 — El Niño Defined
The phenomenon of El Niño is best described as:
- Cooling of the central-eastern Pacific that strengthens the Indian monsoon
- Warming of the central-eastern Pacific that typically suppresses the Indian monsoon
- A periodic reversal of the Indian Ocean Dipole
- A jet-stream shift over the Tibetan Plateau
Q5 — Public Accounts Committee
The Public Accounts Committee (PAC) of Parliament:
- Examines the audit reports of the Comptroller and Auditor General.
- Is chaired, by convention, by a member of the ruling party.
- 1 only
- 2 only
- Both
- Neither
Q6 — Ecosystem-based Adaptation (EbA)
"Ecosystem-based Adaptation (EbA)" along India's coast includes:
- Mangrove restoration
- Seagrass meadows
- Coral reefs
- Tetrapods and groynes
Select the correct combination:
- 1, 2 and 3 only
- 1, 2 and 4 only
- 2, 3 and 4 only
- 1, 3 and 4 only
❓ FAQs
Frequently asked exam-oriented questions — June 5, 2026 edition
Why is the Great Nicobar "strategic" reclassification significant for UPSC?
What is the single most leveraged step in India's climate finance, per the editorial?
How is "grey" coastal protection different from "green" (EbA)?
What does the draft SC AI regulation prohibit?
What is the "double burden of malnutrition"?
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Analysis based on The Hindu, Bengaluru City Edition, June 5, 2026 (World Environment Day Special). Prepared for academic use. Static background and frameworks added for exam preparation; original article text has been paraphrased, not reproduced.
