Recently, the Vice President called the addition of words “socialist” and “secular” to the Constitution’s Preamble during Emergency as a “sacrilege to the spirit of Sanatan”.

Meaning of ‘Secular’ and ‘Socialist’ in the Indian Constitution

Secular

  • The term ‘secular’ in the Indian context means that the State does not favor any religion. 
    • India follows positive secularism, meaning the state acknowledges and respects all religions equally, without aligning with or supporting any particular faith.
  • Constitutional Basis: Articles 14, 15, 16, 25, and 26 of the Indian Constitution guarantee equality and freedom of religion for all citizens.
    • The state ensures that no discrimination is made on the grounds of religion, and all individuals have the right to freely practice, propagate, and profess their religion.
  • Key Characteristics:
    • Religious Freedom: Every individual has the right to freedom of conscience, which means the state cannot interfere in religious matters unless public order or other fundamental rights are affected.
    • Equal Respect for All Religions: India treats all religions with equal respect, providing an inclusive platform for religious practices.

Socialist

  • The term ‘socialist’ refers to the economic ideology that emphasizes social justice and the reduction of economic inequality
    • It does not advocate for state control over all resources, but rather seeks to balance public welfare with private sector growth.
  • Constitutional Basis: The 42nd Amendment (1976) introduced the term ‘socialist’ in the Preamble. 
    • However, the Indian model of socialism is democratic, not communist
    • It supports the idea of a mixed economy, where both public and private sectors coexist.
    • Directive Principles of State Policy (Part IV) provide the vision for social justice by promoting policies like land reforms, welfare schemes, and the distribution of wealth to achieve economic equity.
  • Key Characteristics:
    • Welfare State: A socialist state ensures that every citizen has access to basic needs such as education, healthcare, employment, and social security, especially the marginalized and underprivileged.
    • Economic Justice: The state works towards reducing disparities in wealth and income by intervening where private enterprises cannot provide essential services equitably. 
      • This is seen in policies of poverty alleviation, social security, and affirmative actions for marginalized communities.

Western Model of Secularism

  • Western secularism, particularly the model followed in countries like the United States and France, advocates for a strict separation between religion and state
    • This means that the state does not intervene in religious affairs and vice versa.
  • The United States follows a model based on the Establishment Clause of the First Amendment, which prohibits the government from establishing an official religion or showing favoritism towards any religion.
  • France follows a principle called Laïcité, which is even more rigid. It emphasizes total separation between religion and public life.

Key Differences Between Indian and Western Secularism

Aspect India’s Secularism Western Secularism
State’s Role in Religion Active role in regulating religious practices for public welfare. Neutral stance, avoids involvement in religious matters. Religion is a private affair.
Religious Intervention State intervenes to reform harmful religious practices (e.g., untouchability, child marriage). State does not interfere unless religious practices infringe on individual rights or public order.
Religious Expression in Public Religious expression allowed in public spaces, ensuring equal respect for all religions. Religious symbols banned in public institutions (e.g., headscarves ban in France).
Cultural and Social Context Secularism accommodates religious diversity and promotes pluralism. Secularism arose from limiting church power and protecting individual freedoms from religious control.

Amendment of the Preamble 

  • Introduced by the 42nd Constitutional Amendment Act, 1976 during the Emergency. 
    • It added the words Socialist, Secular, and Integrity.
    • Original Preamble: Sovereign Democratic Republic.
    • Amended preamble: Sovereign, Socialist, Secular, Democratic, Republic. It also changed “unity of the nation” to “unity and integrity of the nation”.

Judicial Rulings Supporting the Insertion of ‘Socialist’ and ‘Secular’ in the Preamble

  • Kesavananda Bharati v. State of Kerala (1973): Secularism is a basic feature of the Constitution. 
    • The Court emphasized the state’s neutrality towards religion, ensuring equal treatment of all religions.
  • Minerva Mills v. Union of India (1980): Socialism was upheld as a constitutional ideal, focused on economic justice
    • It reflects the state’s commitment to welfare and social justice, not state control over all industries.
  • S.R. Bommai v. Union of India (1994): Secularism is a core principle
    • The Court reaffirmed the state’s duty to treat all religions equally, preventing any form of religious discrimination.
  • Dr. Balram Singh v. Union of India (2024): The Court dismissed challenges to the 42nd Amendment
    • It upheld secularism and socialism, stating that they are widely accepted and understood by the people.
  • M. Ismail Faruqui v. Union of India (1994): The Court clarified that the State could acquire religious sites only if they did not form an essential part of religious practice.
    • The Court confirmed that secularism ensures the state does not favor any religion

Arguments in Favor of Retaining ‘Socialist’ and ‘Secular’ in the Preamble

  • Reflecting Constitutional Values: ‘Socialist’ and ‘secular’ encapsulate India’s core values of justice, equality, and freedom of religion
    • The addition of ‘socialist’ in 1976 under the 42nd Amendment reinforced the idea of economic justice, and ‘secular’ highlighted religious equality
  • Secularism as a Fundamental Feature: Secularism ensures that the state treats all religions equally, guaranteeing religious freedom for all citizens, as upheld by multiple Supreme Court rulings.
    • Article 25 guarantees freedom of conscience and the right to practice religion, showing that India’s secularism is grounded in the Constitution
  • Promoting Social Justice: The term ‘socialist’ reflects India’s commitment to a welfare state, ensuring economic justice and reduction of inequalities
    • It emphasizes state intervention in sectors like healthcare, education, and poverty alleviation.
  • Maintaining Social Harmony: Secularism promotes unity and fraternity in India’s diverse society, helping maintain peace and harmony among its many religious, ethnic, and cultural groups.
    • The S.R. Bommai (1994) case reaffirmed that secularism is vital for upholding unity in a multi-religious society. 
  • Ensuring Equal Opportunities: ‘Socialist’ reinforces the idea of a mixed economy, where both public and private sectors coexist, ensuring equal opportunities for economic participation and welfare.
    • The Directive Principles of State Policy (Part IV) guide the state towards redistributing wealth and addressing social inequalities
  • Guarding Democratic Principles: Secularism ensures that the state remains neutral, preventing any political or religious group from gaining undue advantage, which is essential for preserving democracy.
  • Judicial Endorsement: The Supreme Court has reaffirmed the inclusion of ‘socialist’ and ‘secular’ as basic features of the Constitution. 
    • In the Dr Balram Singh v. Union of India (2024) case, the Court dismissed petitions to remove these terms, stating that they are widely accepted and essential for the Constitution’s basic structure.
  • Political Legitimacy: Supporters argue that the amendment was enacted through constitutional procedures, reflecting the will of the people’s elected representatives.
    • For instance, in the Minerva Mills case, the Supreme Court held that the 42nd amendment to the preamble was not only within the framework of the Constitution but also gave vitality to its philosophy.

Arguments for Removal of ‘Socialist’ and ‘Secular’ from the Preamble

  • Threat to Original Intent: Some argue that amending the Preamble dilutes the original intent of the Constitution’s framers. They contend that inserting new words alters the fundamental character envisioned by the founding fathers.
    • For instance, Vishnu Shankar Jain’s Petition: The original Constitution makers deliberately chose to keep these concepts out of the Preamble
      • On November 15, 1948, Professor KT Shah proposed adding the words “secular, federal and socialist nation”, but the Constituent Assembly (CA) rejected it after a lengthy discussion.
      • On November 25, 1948, a second amendment was introduced and discussed incorporating the word ”secular” in the draft Constitution. That, too, was rejected.
      • On December 3, 1948, a third attempt was made to include “secular” in Article 18 of the Constitution, which was also dismissed by the Constituent Assembly.
  • Undemocratic Insertion: The terms ‘socialist’ and ‘secular’ were added during the Emergency (1975–77) through the 42nd Amendment
    • The insertion was not a product of popular will or debate, but rather a political maneuver during a crisis period.
  • Contradiction to the Original Constitution: The Constituent Assembly had deliberately excluded the terms ‘secular’ and ‘socialist’ from the Preamble. 
    • The framers, including Dr. B.R. Ambedkar, opposed embedding ideological terms like socialism and secularism into the Preamble. 
    • The terms were later added without the consent of the original framers, making them inconsistent with the original vision of the Constitution.
  • Political and Ideological Imposition: The inclusion of ‘socialist’ and ‘secular’ in the Preamble is seen by some as an ideological imposition by the Congress government during the Emergency. 
    • ‘Secular’ has been criticized as a term that compels neutrality in a way that contradicts India’s cultural and religious identity
    • Critics argue that ‘socialism’ is no longer relevant in India’s mixed economy and that it limits the economic freedom of elected governments by restricting market-driven policies.
  • Secularism Has Evolved Differently: Critics argue that secularism in India has evolved differently from the Western model, not involving a strict separation of religion and state
    • Some argue that the term ‘secular’ in the Preamble is unnecessary because the Constitution already ensures religious equality through Articles 14, 15, and 16, which prohibit discrimination on religious grounds.
  • Socialism Limits Policy Flexibility: The term ‘socialist’ restricts the economic freedom of governments by associating India with state-controlled policies
    • Economic reforms post-1991 have shifted India towards a market-oriented economy
    • The term ‘socialist’ may limit policy choices, preventing the adoption of policies favoring privatization or market liberalization.
  • Focus on Equal Rights, Not Ideologies: The argument for removing ‘secular’ and ‘socialist’ revolves around the idea that the Preamble should not be used to promote ideological commitments. 
    • Instead, it should focus on ensuring equal rights and fundamental freedoms for all citizens. 
    • Critics argue that the Preamble should reflect universal principles like justice, liberty, and equality, without specifying particular economic or religious ideologies.
  • Judicial Overreach: Critics argue that by upholding the terms ‘socialist’ and ‘secular’ as basic features of the Constitution, the Supreme Court has engaged in judicial overreach
    • The judiciary has expanded the scope of these terms far beyond their original intent. 
    • This has led to concerns that unelected judges are imposing values that should be determined by democratically elected representatives, reflecting the people’s will rather than judicial interpretations.

Is India Really Socialist and Secular?

Socialist

  • For:
    • The term ‘socialist’ was added to the Preamble through the 42nd Amendment (1976), signaling India’s commitment to economic justice and welfare for all citizens.
    • India follows a mixed economy, with both public and private sectors coexisting, ensuring social equity through welfare schemes like MGNREGA, PDS, and Universal Health Care.
    • The government continues to intervene in sectors like health, education, and poverty alleviation, addressing the needs of the marginalized and underprivileged sections of society.
    • Socialist principles like land reforms and progressive taxation were pivotal in India’s early years, aiming to address the disparities in wealth and land distribution.
  • Against:
    • Since 1991, economic liberalization and privatization have shifted India towards a capitalist economy, weakening the socialist model and reducing the state’s role in economic planning.
    • The term ‘socialist’ has been diluted as India increasingly embraces market-driven policies, prioritizing private sector growth over state control of industries.
    • Critics argue that socialist ideals are outdated, as globalization and FDI have moved India towards a capitalist model, reducing the focus on public welfare.
    • Policies favoring privatization and economic growth have undermined the social welfare aspect of socialism, making the term less relevant today.

Secular

  • For:
    • India’s secularism is enshrined in the Constitution, with Articles 25-28 guaranteeing religious freedom and equal respect for all faiths.
    • The ‘positive secularism’ model allows the state to intervene in religious practices to ensure social harmony and equality, as seen in reforms like banning untouchability, regulating child marriage, and prohibiting Triple Talaq.
    • Secularism ensures that no religion is given state preference, and all citizens, regardless of their faith, have equal rights and opportunities.
    • Supreme Court judgments (like Kesavananda Bharati (1973) and S.R. Bommai (1994)) have reinforced secularism as a basic feature of the Constitution, which ensures religious neutrality of the state.
  • Against:
    • Religious politics and communalism continue to challenge secularism in India, with religious-based political parties and polarization undermining the state’s neutrality.
    • Political leaders often use religion for electoral gain, leading to religious favoritism in certain policies and actions. This is seen in debates over laws like the Citizenship Amendment Act (CAA) and the Ram Mandir issue.
    • The state’s positive secularism model is sometimes criticized for being too interventionist in religious matters, leading to accusations of undue state involvement in religion.
    • Some argue that secularism in India has become more about minority appeasement and less about religious neutrality, which undermines its core purpose.

Way Forward for Secularism and Socialism in India

  • Strengthening Religious Equality and Social Justice: India must ensure religious minorities are not marginalized, and the state continues to guarantee religious freedom and equality
    • At the same time, reinforce socialist principles by expanding welfare programs and social safety nets for the marginalized, focusing on poverty alleviation, education, and healthcare.
  • Combating Religious Polarization and Promoting Inclusive Growth: Address religious polarization and communalism by holding political parties accountable for exploiting religious sentiments
    • Focus on inclusive growth, ensuring that both the public and private sectors reduce economic disparities and provide equal opportunities for all citizens.
  • Balancing State Intervention and Religious Freedom: Maintain state intervention in religious practices harmful to social justice (e.g., untouchability, child marriage) while respecting individual freedoms
    • Socialism should focus on state intervention in providing essential services like healthcare, education, and employment, ensuring economic justice without stifling private enterprise.
  • Adapting Socialism to Modern Economic Realities: Socialism should evolve to reflect global economic changes, balancing market reforms with state intervention to provide essential services
    • Focus on inclusive growth where both private enterprises and the public sector contribute to social equity and economic justice.
  • Ensuring Religious Neutrality and Promoting Economic Welfare: The state must remain neutral in religious matters, ensuring equal treatment for all faiths. 
    • Ensure economic justice by reducing wealth and income disparities, focusing on welfare schemes for marginalized communities like Dalits, tribals, and women.
  • Public Sector and Welfare State: The public sector should continue to play an essential role in critical sectors like education, healthcare, and infrastructure while encouraging private sector growth
    • The welfare state model should focus on universal access to basic services and economic welfare.
  • Judicial Oversight and Policy Implementation: Judicial bodies must continue to reinforce secularism and socialism as basic features of the Constitution. 
    • Implement policies that ensure religious equality, economic welfare, and inclusive growth while avoiding the marginalization of any community.

Conclusion

India’s secularism and socialism, as reflected in the Preamble, continue to be central to its constitutional identity. While their implementation faces challenges, these principles remain crucial for ensuring justice, equality, and religious freedom in a diverse and dynamic society.

The Union Ministry of Environment, Forest and Climate Change released its annual report on biodiversity discoveries. 

The data reflects the new species and records added to India’s flora and fauna in the year 2024, reaffirming India’s status as a megadiverse nation.

Botanical Survey of India (BSI)

  • BSI, founded in 1890, functions under the MoEFCC and is the apex institution for taxonomic and floristic studies of wild plants in India.
  • It carries out explorations, conservation assessments, and publications related to plant biodiversity.
  • BSI is headquartered in Kolkata, with 9 regional circles situated in diverse ecological zones of the country.

Zoological Survey of India (ZSI)

  • ZSI is a premier institute under the Ministry of Environment, Forest and Climate Change (MoEFCC), established in 1916.
  • It is responsible for the survey, documentation, and research on the faunal resources of India.
  • The headquarters is located in Kolkata, with 16 regional centers across the country.

  • The findings were released through two major annual publications: “Animal Discoveries 2024” by the Zoological Survey of India (ZSI) and “Plant Discoveries 2024” by the Botanical Survey of India (BSI).

Mega diversity refers to a country’s exceptional richness in biodiversity. A nation is recognized as megadiverse if it hosts at least 5,000 plant species and has access to marine ecosystems along its borders.

India’s Biodiversity

  • India, designated as one of the 17 megadiverse countries globally, supports approximately 8% of the world’s recorded biodiversity, despite occupying only 2.4% of the Earth’s land area.
  • India now has 1,05,244 species and subspecies of fauna, ranging from protists to mammals.
  • India has 56,177 recorded species of plants, covering groups like angiosperms, gymnosperms, bryophytes, fungi, and algae.

Major Additions in India’s Faunal and Floral Database

Faunal Discoveries

  • In 2024, India added 683 species to its faunal database, which includes 459 newly described species and 224 species that are new records for the country.
  • Kerala(101) recorded the highest number of faunal discoveries, followed by Karnataka (82) and Tamil Nadu (63).
  • The Eastern and Northeastern regions — including Arunachal Pradesh, Meghalaya, and West Bengal — also contributed significantly.
  • The Andaman and Nicobar Islands, another critical biodiversity hotspot, reported several new animal species (14) and records (29).
  • In contrast, Chandigarh, Delhi, Haryana and Telangana reported the lowest number of species.

Significant Animal Discoveries Include

  • Discovery of two new genera and 37 species of reptiles.
  • Identification of five new amphibian species.
  • One of the notable reptilian species includes Dravidoseps gouensis, classified under a new genus.
  • A species named Anguiculus dicaprioi, belonging to the Colubridae family, was named in honor of actor Leonardo DiCaprio for his environmental advocacy.

Floral Discoveries

  • India added 433 taxa to its floral database in 2024, comprising 410 newly described species and 23 infra-specific taxa.
  • The maximum plant discoveries came from Kerala, followed by Maharashtra and Uttarakhand.
  • The discoveries span multiple plant groups, including angiosperms,  pteridophytes, bryophytes, lichens, fungi, algae and  microbes.
  • The hotspot regions, such as the Western Ghats and the North-Eastern regions, have contributed 35% of total discoveries.
  • These findings include numerous wild relatives of important horticultural, medicinal, agricultural, and ornamental plants, such as begonias, impatiens, legumes, zingibers, and orchids.

New Plant Discoveries Include

  • Various orchid species such as Bulbophyllum gopalianum, Coelogyne tripurensis, Gastrodia indica, and Gastrodia sikkimensis.
  • Multiple new plant species were also discovered from important families like legumes, gingers, and grasses.

Fauna of India Checklist – Version 2.0

  • The Zoological Survey of India (ZSI) released Version 2.0 of the Checklist of Fauna of India.
  • The updated inventory includes 1,05,244 species and subspecies, covering 121 taxonomic groups, from protists to mammals.
  • Insects, especially beetles, moths, flies, and bees, make up the largest share of faunal diversity.
  • Among vertebrates, fish are the most numerous group represented.
  • The checklist is updated annually and will now be made available in digital format for easier access by researchers and policymakers.

To promote agroforestry and support climate goals, the government has released model rules for tree felling on agricultural land.

Key Highlights

  • Ease of Doing Agroforestry: The rules aim to remove procedural hurdles and incentivize farmers to integrate tree cultivation with farming systems.
  • State Level Committee (SLC): The existing SLC under the Wood-Based Industries (Establishment & Regulation) Guidelines, 2016 will be responsible for overseeing these rules.
    • It will advise state governments on simplifying processes for tree felling and timber transit, especially for commercially valuable species.
  • Registration of Plantation Area: Farmers must register their plantation lands on the National Timber Management System portal.
  • A Felling Permit is issued for agricultural lands with more than 10 trees, while a No Objection Certificate is issued for lands with 10 or fewer trees.

About Agroforestry

  • Agroforestry is a land-use approach where trees and agricultural crops are cultivated together on the same piece of land.
  • Types of Agroforestry Systems:
    • Agrisilviculture: Combines crops with trees
    • Silvopasture: Integrates trees with livestock
    • Agrosilvopastoral: Merges trees, crops, and animal grazing on the same land.

Agroforestry in India

  • Agroforestry occupies 28.4 million hectares, representing 8.65% of India’s total geographical area.
  • It contributes significantly to carbon sequestration, accounting for 19.3% of the nation’s total carbon stock, making it a vital strategy for climate change mitigation.
  • Traditional Agroforestry Systems: India has a rich legacy of indigenous agroforestry practices, including: 
    • Home gardens in Kerala
    • Zabo farming in Nagaland
    • Kheti-wadi in Rajasthan

Government Initiatives Promoting Agroforestry

  • India was the first country in the world to adopt a dedicated agroforestry policy.
  • National Agroforestry Policy (2014): Provides a policy framework to advance research, development, and scaling of agroforestry practices.
  • Sub-Mission on Agroforestry (SMAF): Implemented under the National Mission for Sustainable Agriculture (NMSA),  promote tree planting on farmlands, especially for small and marginal farmers
  • GROW Initiative: Spearheaded by NITI Aayog to Restore degraded and underutilized lands via agroforestry.
  • All India Coordinated Research Project (AICRP) on Agroforestry: Led by ICAR, to conduct agroforestry research across various agroclimatic zones. Develop and refine agroforestry models suited to local conditions. 
Additional Reading: Agroforestry in India

A recent study by the Centre for Research on Energy and Clean Air (CREA) highlights the significant role of secondary pollutants, particularly ammonium sulphate, in contributing to PM 2.5 air pollution across India.

Primary vs Secondary Pollutants

  • Primary pollutants are emitted directly from sources like vehicles, coal-fired power plants, and biomass burning. (e.g., Carbon monoxide , Sulfur dioxide, Nitrogen oxides)
  • Secondary pollutants form when these primary emissions react with other elements in the atmosphere (e.g., water vapour, sunlight) and include harmful compounds such as ammonium sulphate, ozone and ammonium nitrate.

PWonlyias Extra Edge

About Particulate Matter

  • PM stands for particulate matter (also called particle pollution): the term for a mixture of solid particles and liquid droplets found in the air. Some particles, such as dust, dirt, soot, or smoke, are large or dark enough to be seen with the naked eye. 
  • Others are so small they can only be detected using an electron microscope.

Particle pollution includes

  • PM10 : inhalable particles, with diameters that are generally 10 micrometers and smaller; and
  • PM2.5 : fine inhalable particles, with diameters that are generally 2.5 micrometers and smaller.

Key Findings from the Study

Secondary Pollutants

  • Secondary pollutants, especially ammonium sulphate, make up nearly one-third (34%) of India’s PM2.5 pollution.
  • Average national concentration of ammonium sulphate: 11.9 μg/m³.
  • In 114 out of 130 NCAP cities, ammonium sulphate makes up over 30% of PM2.5 levels.
  • Ammonium nitrate, another secondary pollutant, also adds significantly — up to 50% in some cases.
  • Coal-Fired Power Plants – Major Source:
    • Over 60% of SO₂ emissions in India come from coal-fired thermal power plants.
    • Ammonium sulphate levels are 2.5 times higher within 10 km of coal plants (15 μg/m³) than beyond 10 km (6 μg/m³).
    • 36% near coal plants while 23% in distant areas, indicating both local and long-distance transport of pollutants.

National Clean Air Programme (NCAP)

  • Launched in January 2019 by the Ministry of Environment, Forest and Climate Change (MoEFCC),  aims to reduce PM10 and PM2.5 levels by 20% in 131 cities by 2024-25, with 2017 as the baseline.  
  • The target has been revised to 40% reduction in PM10 levels or meeting national standards (60 µg/m³) by 2025-26. 

  • Impact across NCAP Cities:
    • 130 cities under the National Clean Air Programme (NCAP) are tasked with reducing pollution by 20–30% by 2025–26.
    • Ammonium sulphate concentrations range from 3.9 to 22.5 μg/m³. Its contribution to PM2.5 ranges from 20% to 43%

Flue gas desulphurisation : It is a technology to eliminate sulphur compounds from exhaust emissions.

    • In 114 out of 130 cities, it constituted >30% of total PM2.5.
    • Combined with ammonium nitrate, secondary pollutants may account for up to 50% of urban PM2.5.
  • Implementation Gaps in Pollution Control:
    • Though Flue Gas Desulphurisation (FGD) is mandated for coal power plants to curb SO₂ emissions, only ~8% of plants have installed it.
    • The government is considering relaxing this requirement, despite its proven necessity.

Policy Recommendations from CREA

  • Strict Enforcement of Emission Norms: Ensure full compliance with FGD installation mandates while avoiding regulatory rollbacks
  • Promote efficient fertilizer usage to reduce ammonia emissions.
  • Targeted and Source-Specific Action: Control both primary emissions and precursor gases (SO₂, NH₃).
  • Inter-State Coordination: Foster regional collaboration for managing transboundary pollutants.
  • Monitoring & Research: Invest in real-time air quality monitoring and continuous research to guide evidence-based policymaking
Additional Reading: NCAP

The Reserve Bank of India (RBI), in its Financial Stability Report (FSR), July 2025, highlights that India continues to be a major global growth driver, despite global economic uncertainties and geopolitical tensions.

Financial Stability Report (FSR)

  • The Financial Stability Report is published twice a year (in June and December) by the Reserve Bank of India (RBI), with inputs from all financial sector regulators.
  • It reflects the collective assessment of the FSDC Sub-Committee on both current and emerging risks to the stability of India’s financial system.

Financial Stability and Development Council (FSDC)

  • Establishment: Formed in 2010 as a non-statutory apex body by the Government of India.
  • Chairperson: The Union Finance Minister
  • Members: 
    • Heads of key financial regulators: RBI, SEBI, IRDAI, PFRDA, and FMC (now merged with SEBI)
    • Finance Secretary and other senior officials
    • Expanded in 2018 to include additional members for broader coordination
  • Key Functions:
    • Promote and maintain financial stability
    • Encourage development of the financial sector
    • Facilitate inter-regulatory coordination
    • Address issues related to financial literacy, financial inclusion, and macroprudential supervision

Key Highlights of the Report

  • Macroeconomic Strength:
    • India remains a key global growth driver, with GDP growth projected at 6.5% for FY2026.
    • India’s growth is supported by strong domestic fundamentals and prudent macroeconomic policies.
    • Despite external spillovers and climate-related risks, the inflation outlook remains stable and aligned with RBI’s targets.
      • CPI fell to 2.8% in May 2025, the lowest since February 2019, down from 3.2% in April.
  • Financial System:
    • Banking and non-banking sectors have strong capital buffers, low non-performing asset (NPA) ratios, and healthy profitability.
    • Corporate balance sheets are sound, contributing to broader macroeconomic stability.
  • Stress Test Results:
    • Macro stress tests show that Scheduled Commercial Banks (SCBs) remain well-capitalized, even under adverse shock scenarios.
    • NBFCs continue to show strength with sizable capital buffers, improving asset quality, and solid earnings.
    • Mutual funds, clearing corporations, and the insurance sector also demonstrate resilience, with solvency ratios above regulatory thresholds.

As part of the FSR, the RBI also conducts a Systemic Risk Survey (SRS), which gathers views from experts and market participants on five key risk categories: Global Risks, Financial Risks, Macroeconomic Risks, Institutional Risks, General Risk.

Systemic Risk Survey (SRS)

  • Risk Perception: All major risk categories are assessed as ‘medium risk’.
    • 92% of respondents expressed high or unchanged confidence in the domestic financial system.
  • Identified Risks: Geopolitical tensions, capital outflows, and global trade slowdowns seen as major short-term threats.
    • Rising global public debt flagged as a persistent concern, particularly amid heightened global uncertainty.

The Union Ministry of Cooperation organized an event to commemorate the International Year of Cooperatives (IYC) 2025. 

  • This event focused on launching important initiatives for the development and revitalization of the cooperative sector in India.

Key Highlights of the Event

  • National Cooperative Policy for 2025-2045: A National Cooperative Policy will be introduced soon, which will guide the cooperative sector from 2025 to 2045, marking India’s centenary of independence.
    • Each state will be required to prepare its own cooperative policy based on local needs and conditions, with a deadline of January 31, 2026, for state-level announcements.
  • Replication of Gujarat Model:
    • The ‘Cooperation Amongst Cooperatives’ model, which has been successful in Gujarat, will be promoted across India. 
      • The aim is to strengthen the cooperative network at the national level.
  • Progress on Key Initiatives:
    • The event discussed the progress of two lakh Multi-Purpose Primary Agricultural Credit Societies (M-PACS), which are intended to strengthen the financial backbone of rural communities.
    • There was also a focus on the promotion of dairy and fisheries cooperatives, aimed at improving rural service delivery.
    • The implementation of the world’s largest grain storage scheme within the cooperative sector was also reviewed to ensure better storage and distribution of grains.

About UN International Year of Cooperatives 2025

International Year of Cooperatives

  • Launch and Proclamation: The UN International Year of Cooperatives 2025 (UN-IYC 2025) was officially launched at the ICA Global Cooperative Conference and General Assembly in New Delhi.
    • On June 19, 2024, the United Nations General Assembly proclaimed 2025 as the International Year of Cooperatives, highlighting their crucial role in sustainable development.
  • Theme: The theme for IYC 2025 is “Cooperatives Build a Better World”.
    • This theme underscores the global impact of cooperatives and their ability to address today’s global challenges, while supporting the achievement of the UN Sustainable Development Goals (SDGs) by 2030.
  • Significance: The IYC 2025 highlights the socio-economic and environmental contributions of cooperatives, emphasizing their role in driving inclusive growth and strengthening community resilience.
    • Cooperatives are seen as a key driver of sustainable development by providing solutions to global issues like poverty, inequality, and environmental degradation.
  • Host: The event is being championed by COPAC (Committee for the Promotion and Advancement of Cooperatives), which is a multi-stakeholder partnership comprising UN agencies and the International Cooperative Alliance (ICA)
    • COPAC advocates for people-centered and self-sustaining cooperative enterprises as leaders in sustainable development.

The Ministry of Statistics and Programme Implementation released the following publications on Sustainable Development Goals – National Indicator Framework Progress Report, 2025, along with another two reports.

About SDGs NIF

  • The SDGs NIF serves as the backbone for monitoring SDGs at the national level, offering valuable guidance to policymakers and the implementing agencies of various schemes and programs. 
  • The National Indicator Framework -2025 tracked 284 indicators across 17 SDG goals, compared to 290 indicators tracked last year.
  • The major data sources for these SDG national indicators are administrative data, surveys and censuses. 

Key highlights from the SDG NIF Progress Report 2025

  • SDG 1: The proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions has declined from 24.85% in 2015-16 to 14.96% 2019-21.
  • The population covered by social protection systems/floors has increased from 22% in 2016 to 64.3% in 2025, indicating substantial expansion in social security coverage in the country.
  • SDG 2: The Gross Value Added in agriculture per worker (in Rs.) has increased from 61,247 in 2015-16 to 94,110 in 2024-25, indicating improved agricultural productivity and income per worker in the country.
  • SDG 3: Neo mortality rate (per 1000 live births) reduced from 21 (2025) to 19 (2021).
  • SDG 6: Percentage of population using an improved drinking water source in rural areas has increased from 94.57% in 2015-16 to 99.62% in 2024-25, indicating significant progress toward universal safe water access in rural India.
  • SDG 7: The renewable energy share in the total installed electricity generation has increased from 16.02 in 2015-16 to 22.13 in 2024-25, indicating consistent progress toward cleaner and sustainable energy generation in the country.
    • The installed renewable energy generating capacity in the country has increased from 64.04 watts per capita in 2014-15 to 156.31 watts per capita 2024-25, indicating a strong push toward sustainable energy development.
  • SDG 9: The number of waste recycling plants installed have increased from 829 in 2019-20 to 3036 in 2024- 25, indicating a significant strengthening of waste management infrastructure.
  • SDG 9: The number of start-ups recognised under start-up India have increased from 453 in 2016 to 34,293 in 2024, showing strong growth in entrepreneurship across the country.
  • SDG 10: The Gini coefficient of household expenditure has decreased from 0.283 in 2011-12 to 0.237 in 2023-24 in rural areas. Also, for urban areas it has decreased from 0.363 in 2011-12 to 0.284 in 2023-24, showing a clear move toward more equal spending and reduced income inequality across both regions.
  • SDG 11: The percentage of waste processed has increased from 17.97% in 2015-16 to 80.7% in 2024-25, indicating significant progress in waste management efficiency in the country.
  • SDG 12: The reduction in emissions intensity of GDP in 2020 over 2005 level is 36%, indicating significant progress toward a low-carbon economy.
    • The total number of internet subscriptions (in millions) has increased from 302.36 in 2015 to 954.40 in 2024, showing a sharp rise in digital connectivity across the country.
  • SDG 15: The forest cover, a percentage of total geographical area, has increased from 21.34% in 2015 to 21.76% in 2023, showing a steady rise in the country’s forest areas.

Concerns raised by Report

  • Fiscal Policies: Government expenditure on essential services, education, health, and social protection slightly reduced from FY16 to FY24.
  • Slow Economic Growth: On the economic front, India’s FY25 GDP is projected to grow at 6.5%, below the 7% annual target set under SDG 8.
  • Agriculture: The issuance of soil health cards to farmers declined from full coverage between 2015 and 2017 to 87.25% in FY25.
    • The net sown area as a share of cultivable land declined.
  • Gender Gap: The adolescent birth rate in girls aged 15–19 increased slightly from 11.1 per 1,000 in 2015 to 11.3 in 2021. 
    • Cases of dowry-related offences and overall crimes against women also trended upward between 2015 and 2022.
  • Road Safety: Road accident fatalities rose from 11.81 per 1,00,000 population in 2015 to 12.4 in 2022.

On June 30, 2025, Prime Minister paid tribute to India’s tribal heroes on Hul Diwas, marking the anniversary of the Santhal Rebellion (1855-56). 

  • This day commemorates the valor and sacrifices of the Santhal community during one of the most significant tribal uprisings against British colonial rule.

Key Highlights of the Santhal Rebellion

  • Santhal Uprising (1855-56):
    • The Santhal Rebellion was a major tribal uprising that occurred between 1855 and 1856 in the Damin-i-Koh region, Rajmahal Hills, which includes parts of present-day Jharkhand, Bihar, and West Bengal.
  • Key Figures in the Rebellion:
    • Sido and Kanhu Murmu: The central leaders of the rebellion, brothers from the Santhal tribe, who became symbols of resistance.
    • Chand-Bhairav: Another important leader who joined the rebellion, embodying the unity and strength of the Santhal people in their fight for justice.
    • Phulo and Jhano: Two women leaders who played a significant role in the rebellion.
  • Reasons for the Rebellion:
    • The Permanent Settlement Act of 1793 is considered a root cause of the rebellion. The Act displaced the Santhal tribes from their traditional lands in Birbhum and Manbhum (present-day Bengal).
    • Exploitation and Oppression: The Zamindars were granted control over land and its revenues, exploiting the Santhals through unfair taxation and forced labor, while the British colonial administration allowed this oppression to continue.
  • Significance of the Rebellion:
    • The Santhal Rebellion is considered one of the largest and most organized tribal uprisings in colonial India, highlighting the resilience of tribal communities in resisting British rule.
    • Though the rebellion was eventually suppressed, it played a crucial role in challenging British authority and became a significant precursor to future anti-colonial movements.
    • The bravery of the Santhal leaders and their community remains a symbol of resistance and unity, contributing to India’s overall struggle for independence.

QUAD at Sea Ship Observer Mission

Context: The QUAD at Sea Ship Observer Mission has been launched by the coast guards of QUAD nations recently under the Wilmington Declaration.

About the Mission

  • Participants: The initiative is launched by the Indian Coast Guard, Japan Coast Guard, United States Coast Guard, and Australian Border Force.
  • The initiative will involve two officers from each nation, embarked on board the United States Coast Guard Cutter Stratton.
  • Objective: To strengthen and deepen maritime cooperation which is free, open, inclusive and rules-based in the Indo-Pacific.
  • Significance: The mission will reinforce joint maritime readiness through enhanced interoperability, domain awareness, humanitarian assistance  and operational coordination. 

India’s Participation

  • The Indian participation will help reinforce its strategic maritime vision of SAGAR (Security and Growth for All in the Region) and complement national efforts under the Indo-Pacific Oceans Initiative (IPOI).

Wilmington Declaration (2024)

  • It was issued by the leaders of the QUAD nations during the QUAD Leaders’ Summit in Wilmington, USA.
  • It reaffirms the commitment of the QUAD nations to ensuring a free, open, inclusive, and resilient Indo-Pacific, with an emphasis on respecting:
    • Rule of law
    • Democracy
    • Territorial integrity

 

Ottawa Convention

Context: Recently, Ukraine has withdrawn from the Ottawa Convention.

Anti-Personnel Landmines Convention, 1997

  • It is an international agreement aimed at eliminating the use, production, stockpiling, and transfer of anti-personnel landmines.
    • Commonly known as the Ottawa Convention or Anti-Personnel Mine Ban Treaty.
    • It includes provisions to assist victims, many of whom have lost limbs and suffer from other permanent disabilities.
  • Adopted: September 1997 at the Diplomatic Conference in Oslo.
  • Came into Effect: March 1999.
  • Scope
    • Prohibits anti-personnel mines only.
    • Does not cover anti-vehicle or anti-tank mines.
  • Obligation: Signatories were required to destroy all anti-personnel landmine stockpiles within four years of joining.
  • Current Parties: 166 States (as of June 2025).
  • 2025: Poland, Lithuania, Latvia, Estonia,Finland and Ukriane decide to leave the Ottawa Treaty.
  • Non-Parties: India, US, Russia, China, Pakistan have not signed or ratified the treaty.

About Anti-Personnel Landmines

  • Anti-personnel landmines are generally hidden in the ground and designed to detonate automatically when someone steps on them or passes nearby.
  • Purpose: To target enemy personnel (troops) and to destroy or disable armored vehicles.
  • More than 80% of mine victims are civilians, according to the International Committee of the Red Cross (ICRC).

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
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