The India Ageing Report 2023 highlights that India’s elderly population (60+) will comprise over 20% of the population by 2050, with women living longer but spending more years in poor health.

The Gendered Dimensions of Ageing in India

Demographic Transition and Gender Tilt

• By 2050, more than one-fifth of India’s population will be above 60 years.
• Women live on average 7 years longer than men, creating a demographic tilt towards more elderly women.
• However, elderly women spend 25% more time in poor health compared to men.

Social and Economic Determinants of Health

• Financial Insecurity: A 2011 UNFPA study found that 60% of elderly women have no personal income, and <20% can pay their medical bills.
• Economic Dependence: Elderly women are more dependent on family members than men, influencing health-seeking behaviour.
• Digital Divide: Older women have lower access to digital devices and health-related information.
• Patriarchal Control: Spouses/adult children often decide when or whether elderly women seek medical care.

Healthcare Access Challenges

• Lack of gender-sensitive health facilities; low female health provider availability.
• Absence of regular uro-gynaecological care post-reproductive age.
• Under-diagnosis and delayed treatment of cancers (breast, cervical, ovarian, uterine).
• Higher risk of osteoporosis, arthritis, and fractures, leading to disability.
• Elderly women face greater neglect in mental health care; only 1 in 10 seek help for depression (HelpAge India).

Disease Burden and Gender Gap

• Non-Communicable Diseases (NCDs): Hypertension, diabetes, cardiovascular diseases, and cancer are more severe among elderly women due to post-menopausal changes.
• Neurodegenerative Disorders: Alzheimer’s and dementia are more common among women due to longer lifespan and isolation.
• Healthcare Spending Bias: Across all socio-economic groups, expenditure on women’s health remains lower than on men.

Positive Coping and Resilience Factors

• Community Networks: Elderly women remain embedded in families and social groups, which helps against loneliness.
• Active Engagements: Yoga, walking groups, hobbies, and cultural participation improve mental and physical health.
• Education: Educated women avail more outpatient care and preventive health services.

Way Forward

• Gender-Sensitive Healthcare: Policies must integrate elderly women’s distinct health needs (including non-reproductive care).
• Financial Inclusion: Strengthen pension coverage, social security, and health insurance for elderly women.
• Preventive Health Measures: Routine screenings for cancers, osteoporosis, diabetes, and mental health must be expanded.
• Community-Based Care Models: Develop elderly care centres focusing on women’s wellness and counselling.
• Bridging Digital Divide: Enhance access to telemedicine and digital health literacy among elderly women.
• Capacity Building: Train healthcare providers in geriatric and gender-sensitive care delivery.

Large-scale displacement in Odisha’s Angul district due to coal mining projects, with over 5,900 families displaced in the last five years, raises concerns about rehabilitation, compensation, and community disintegration.

Background: Coal and Odisha’s Energy Landscape

• India’s coal reserves: 42 billion tonnes (2024).
• Odisha: largest reserves (20 billion tonnes; 25.47% of India’s total).
• Angul district: part of Talcher coalfields (largest in India).
• Contributes 02% of Odisha’s coal output.

Human Cost of Mining: Displacement and Social Fragmentation

• Scale of displacement
  • 5,923 families displaced (2019–24).
  • 348 villages may need relocation if all 66 identified blocks become operational.
• Issues with rehabilitation
  • Disintegration of community ties; scattered settlement.
  • Lack of cremation grounds, social exclusion in new villages.
  • Promises of jobs diminishing; cash packages inadequate for urban relocation.
• Compensation Discrepancies
  • Compensation varies widely across villages.
  • Example:SCCL (Telangana) offers ?70 lakh/acre vs. ?11 lakh in Angul.
  • Land valuation not adjusted to rising urban land prices.

Governance and Policy Issues

• Coal Mines (Special Provisions) Act, 2015: reallocation through auction (post-2014 SC cancellation of 204 allocations).
• Commercial mining auction (2020): opened sector to private and FDI players; displacement risk increased.
• Implementation gaps:
  • R&R colonies often delayed or absent.
  • Lack of uniform policy; varies project to project.
  • No centralised database on displacement.
  • Social welfare schemes not transferred post-relocation.

Livelihood and Identity Crisis

• Farming and cattle rearing disrupted; no open spaces in R&R colonies.
• Erosion of community identity and cultural practices.
• Educational disruption for children.
• Women, especially pregnant and lactating, lose access to health workers.

Environmental and Energy Dilemma

• Forest cover in Angul:43% of district; threatened by expansion.
• Coal-based power still 65% of India’s installed capacity (June 2025).
• Conflict: Energy demand vs. sustainability, Paris Agreement goals, and transition to renewables.

Way Forward

• Policy Reforms
  • Creation of a centralised displacement database for monitoring.
  • Uniform valuation of land compensation linked to market rates.
  • Community-based rehabilitation to preserve village identity.
  • Ensuring time-bound establishment of R&R colonies before displacement.
• Social Security Measures
  • Automatic transfer of welfare schemes (health, PDS, pensions) to resettled populations.
  • Dedicated health and education infrastructure in R&R colonies.
• Economic Rehabilitation
  • Mandatory employment opportunities in mining companies for displaced families.
  • Skill training and support for self-employment ventures.
• Environmental Safeguards
  • Prioritisation of mine closure and ecological restoration
  • Gradual shift to renewables in line with India’s energy transition goals.

The U.S. imposed 50% tariffs on imports from India effective August 27, 2025, severely impacting labour-intensive sectors like textiles, shrimp, jewellery, and carpets.

Understanding the Scale and Impact of U.S. Tariffs on India’s Export Economy

Background of Tariffs

• Tariffs are import duties levied by a country to protect its domestic industries.
• Earlier, Indian exports faced lower duties (2–13% in many sectors).
• The recent hike raised effective tariffs to 50–65% on several Indian goods.
• Affected sectors are critical for employment and foreign exchange earnings.

Sectors Severely Impacted

• Marine Exports (Shrimp)
  • U.S. imports from India (2024-25): $2.4 billion (32.4% of India’s total shrimp exports).
  • Tariffs increased from 10% to 60%, leading to price collapse (20% fall in Andhra Pradesh).
• Gems and Jewellery
  • U.S. imports: $10 billion (40% of sectoral exports).
  • Tariffs increased from 1% to 52.1%.
• Surat’s diamond industry (12 lakh jobs) already reporting production cuts.
• Textiles and Apparel
  • U.S. imports: $10.8 billion (35% of Indian apparel exports).
  • Tariffs increased from 9% to 63.9%.
  • Impact on clusters: Tiruppur, Noida-Gurugram, Ludhiana, and Bengaluru.
• Carpets and Handicrafts
• Carpets:$1.2 billion exports; 6% share with U.S.
• Tariffs increased from 9% to 52.9%.

Sectors with Moderate Impact

• Chemicals: $2.7 billion exports; tariffs now 54% (from 4%).
• Metals: $4.7 billion exports; 17% share of total exports.
• Machinery and Appliances: $6.7 billion exports; 20% share.
• SMEs in Delhi-NCR, eastern foundry hubs likely to face major stress.

Implications for Indian Economy

• Employment Impact: Millions of workers in textiles, jewellery, and shrimp sectors at risk.
• Export Diversification Challenge: Heavy reliance on the U.S. (top market for many goods).
• Current Account Pressure: Export slowdown may widen trade deficit.
• SME Distress: Working capital issues for small and medium exporters.
• Regional Effects: Shrimp (Andhra Pradesh), Diamonds (Gujarat), Textiles (Tamil Nadu, Punjab, Karnataka), Carpets (U.P., Rajasthan).

Government Response

• Short-term: Multi-ministry plan for sectoral support.
• Medium-term: Export destination diversification, leveraging FTAs (e.g., UAE, EU, Australia).
• Long-term: Promote ‘Vocal for Local’, strengthen domestic consumption base.
• RBI’s readiness to provide liquidity support for exporters.

Way Forward

• Export Market Diversification: Reduce over-reliance on U.S.; target EU, ASEAN, Africa, Middle East.
• FTA Utilisation: Maximise benefits from India-UAE CEPA, India-Australia ECTA.
• Sectoral Support: Subsidies, credit easing, skill upgradation in labour-intensive industries.
• WTO Mechanisms: India may contest U.S. tariff hikes under WTO dispute resolution.
• Industrial Upgradation: Invest in value addition, branding, and quality compliance to withstand global competition.
• Domestic Consumption Push: Strengthen internal demand through schemes like PM MITRA Parks, PLI for textiles, MSME incentives.

Large-scale flooding in the Yamuna floodplains in Delhi has displaced thousands of residents, forcing them into relief camps, while prolonged waterlogging continues to disrupt livelihoods and health.

Background of the Crisis

• Yamuna River in Delhi: A major tributary of the Ganga, flowing through Uttarakhand, Himachal Pradesh, Haryana, Delhi, and Uttar Pradesh.
• Flood levels: The danger mark in Delhi is 205.33 m at the Old Railway Bridge.
• In August 2024, the Yamuna water level crossed the danger mark for consecutive days, submerging low-lying settlements like Yamuna Bazar, Majnu ka Tila, Mayur Vihar.

Impact of Flooding

• Humanitarian Impact
  • Thousands displaced; many forced into temporary relief camps.
  • Health issues reported: fever, skin infections, waterborne diseases, and mosquito-related risks.
  • Education disruption: children unable to attend schools.
• Livelihood Loss
  • Farmers lost crops (bottle gourd, ridge gourd, ladyfinger).
  • Shopkeepers and daily wage earners reported severe income loss.
  • Cattle herders faced problems as camps lacked adequate facilities for livestock.
• Infrastructure Stress
  • Houses submerged; makeshift relief arrangements inadequate.
  • Shortages in essential supplies: medicines, mosquito nets, electricity, clean water.

Institutional and Governance Issues

• Relief camps: Provided by Delhi government but criticized for poor conditions.
• Central Water Commission (CWC): Monitoring water levels and issuing alerts, but effective dissemination and preparedness remain weak.
• Lack of floodplain zoning laws and unregulated encroachment worsens vulnerability.
• Coordination gap between central and state agencies delays response.

Structural Concerns: Why Urban Flooding is Increasing

• Encroachment on floodplains: Settlements, markets, and agriculture in Yamuna floodplains reduce natural drainage capacity.
• Climate Change: Intensified and erratic monsoon leading to high-intensity rainfall.
• Infrastructure Deficiencies: Poor drainage, absence of flood-resilient housing.
• Release from upstream barrages (e.g., Hathnikund Barrage in Haryana) exacerbates sudden flooding.

Way Forward

• Policy and Legal Measures
  • Enforce floodplain zoning under the Environment (Protection) Act, 1986 and River Regulation Zone
  • Strengthen Disaster Management Act, 2005 implementation through effective coordination between NDMA, state governments, and local bodies.
• Urban and Ecological Resilience
  • Introduce nature-based solutions: wetland conservation, afforestation along riverbanks.
  • Prohibit further encroachment in Yamuna floodplains.
  • Promote flood-resilient infrastructure and housing.
• Institutional Mechanisms
  • Strengthen CWC flood forecasting with real-time satellite data integration.
  • Enhance community-based disaster preparedness: early warning systems, local rescue teams, training for residents.
• Relief and Rehabilitation
  • Improve conditions in relief camps: adequate sanitation, medicines, electricity, and support for education.
  • Long-term rehabilitation policies for displaced persons to reduce recurring vulnerabilities.

The Registrar-General and Census Commissioner of India (RG & CCI) has announced that the pre-test exercise for the Population Census 2027 will be conducted in October–November 2025.

Census 2027 – Key Features

• It will be India’s first digital Census using a mobile app, self-enumeration, digital mapping tools, and a web-based portal for real-time monitoring.
• It will also be the first Census since 2011 (the 2021 Census was delayed due to COVID-19).
• For the first time in Independent India, caste will be enumerated in the Population Census.

Pre-Test Objectives and Scope

• The pre-test exercise is conducted to check the efficacy of questionnaires, data collection methods, logistics, training, and data quality assessment.
• This year’s pre-test will only cover the first phase — Houselisting and Housing Schedule (HLO) — and not the population enumeration phase.
• In contrast, the 2019 pre-test (for the postponed 2021 Census) had tested both phases and included National Population Register (NPR)-related questions.

National Population Register (NPR) and NRC Linkage

• The government recently clarified in Lok Sabha (July 2025) that no decision has been taken to update NPR during the 2027 Census.
• NPR was first prepared in 2010 along with the 2011 Census (Phase-I) and updated in 2015–16, covering 119 crore residents.
• As per Citizenship Rules, 2003 (under Citizenship Act, 1955), NPR is the first step toward creating a National Register of Citizens (NRC).
• The RGI has also directed States to freeze boundaries of administrative units by December 31, 2025, to ensure uniformity during enumeration.

The latest UDISE+ data (2024–25) shows that school enrolment in India has declined for the third consecutive year, attributed mainly to falling birth rates.

UDISE+ Data

• Unified District Information System for Education Plus (UDISE+) is the government’s system for collecting school-level data from pre-primary to higher secondary.
• It has been recording individual student enrolment since 2022–23, improving accuracy by eliminating duplicate entries.

Trends in Enrolment (2022–25)

• Total enrolment in 2024–25 dropped to 69 crore, from 24.80 crore in 2023–24 and 25.18 crore in 2022–23.
• This is the third consecutive year of decline.
• Government school enrolment: Declined from 62 crore (2022–23) ? 12.16 crore (2024–25).
• Private school enrolment: Increased from 42 crore (2022–23) ? 9.59 crore (2024–25).

Reasons for Decline

• Demographic shifts: Falling birth rates are leading to fewer children entering the primary school-going population.
• Methodological changes in UDISE+ (tracking individual students instead of aggregate data).
• Pandemic-related disruptions earlier also contributed.

Gross Enrolment Ratio (GER)

• GER at Foundational Stage (pre-primary to Class 2) remained steady at around 4% (2024–25).
• Preparatory level (Classes 3–5): GER improved to 4% (2024–25) from 95.2% (2023–24).
• Middle and secondary levels: GER has increased compared to previous year.

Dropout Trends

• Dropout rate at secondary level declined significantly: 8% (2022–23) ? 8.2% (2024–25).

Structural Shifts

• Share of private schools in enrolment has risen to 39% (2024–25).
• Number of government schools decreased from 18 lakh (2023–24) ? 10.13 lakh (2024–25).

A Sri Lankan Parliamentary Delegation, led by Minister Dr. NalindaJayatissa, met Lok Sabha Speaker Shri Om Birla in New Delhi, highlighting the deepening of India–Sri Lanka relations under the framework of ‘Neighbourhood First’ and ‘Vision SAGAR’.

Strategic and Policy Dimensions

• Sri Lanka is central to India’s ‘Neighbourhood First’ Policy (regional prioritisation of South Asian countries) and ‘Vision SAGAR’ (Security and Growth for All in the Region), focusing on the Indian Ocean Region (IOR).
• High-level visits such as PM Modi’s visit to Sri Lanka (April 2025) and Sri Lankan President Anura Kumara Dissanayake’s visit to India (December 2024) underscore the growing strategic convergence.
• India was the first responder during Sri Lanka’s 2022–23 economic crisis, providing nearly $4 billion assistance (credit lines, currency swaps, fuel, medicines, food supplies).

Institutional Cooperation and Parliamentary Diplomacy

• The establishment of the Sri Lanka–India Parliamentary Friendship Association reflects institutional strengthening of bilateral ties.
• Speaker Om Birla highlighted PRIDE (Parliamentary Research and Training Institute for Democracies) which has trained legislators from over 110 countries, showing India’s democratic outreach.
• India has adopted digital innovations and AI in Parliament to enhance transparency, efficiency, and paperless functioning.

Cultural and Developmental Cooperation

• Shared civilisational heritage includes Buddhist and Ramayana tourism circuits.
• Current cooperation spans defence, energy, health, education, trade, and cultural exchanges.
• India’s role in peace and stability in the IOR aligns with maritime security frameworks like Colombo Security Conclave (CSC) and complements wider Indo-Pacific strategy.

Prime Minister Narendra Modi is visiting Japan for the 15th India–Japan Annual Summit to deepen the Special Strategic and Global Partnership.

Nature of Partnership:

• India and Japan elevated their relationship to a Special Strategic and Global Partnership in 2014.
• The partnership is rooted in shared democratic values, rule of law, and a free, open, and inclusive Indo-Pacific.

Defence and Security Cooperation:

• Key agreements: Acquisition and Cross-Servicing Agreement (ACSA, 2020), Reciprocal Provision of Supplies and Services Agreement, Information Security Agreement.
• Joint exercises: JIMEX (naval), Malabar (with US and Australia), Dharma Guardian (army), ShinyuuMaitri (air force).
• Japan participates in QUAD alongside India, US, and Australia for maritime security and Indo-Pacific stability.

Economic and Trade Dimensions:

• Bilateral trade: USD 22.5 billion in 2023–24.
• Japan is India’s 5th largest source of FDI. Major investments in infrastructure (Delhi–Mumbai Industrial Corridor, Dedicated Freight Corridor, Metro projects, High-Speed Rail “Bullet Train”).
• Japan committed USD 42 billion over five years (2022–27) for India’s infrastructure and private sector growth.

Technology and Emerging Areas:

• Collaboration in semiconductors, startups, clean energy (green hydrogen, renewables), rare earths, defence technologies.
• India and Japan cooperate on disaster resilience through the Coalition for Disaster Resilient Infrastructure (CDRI) and the International Solar Alliance (ISA).

Global and Multilateral Engagements:

• QUAD: India and Japan cooperate with US and Australia on Indo-Pacific strategy, supply chain resilience, 5G/6G technologies, and climate initiatives.
• Both nations share convergence on countering China’s assertiveness in the Indo-Pacific.

India’s Index of Industrial Production (IIP) grew 3.5% in July 2025, the highest in four months, led by recovery in manufacturing, electricity, capital, and consumer goods sectors.

Index of Industrial Production (IIP):

• Released monthly by National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
• Base Year: 2011–12.
• Measures volume growth of industries grouped under Mining, Manufacturing, and Electricity.
• Uses Laspeyres formula for index calculation.

Sectoral Performance (July 2025):

• Manufacturing: +5.4% (six-month high; improvement in metals, machinery, mineral products).
• Electricity: +0.6% (returning to growth after two months of contraction).
• Mining: –7.2% (fourth consecutive month of contraction, due to monsoon impact and weak demand).
• Capital Goods: +5% (on a high base; reflects investment revival).
• Consumer Durables: +7.7% (seven-month high).
• Consumer Non-Durables: +0.5% (eight-month high, but very marginal).

Significance:

• Acts as a short-term indicator of industrial health.
• Affects GDP estimates, inflation trajectory, monetary policy decisions.
• Mining contraction raises concerns on raw material supply, while strong growth in capital goods indicates revival of private investment cycle.
• Divergence in electricity and mining growth highlights monsoon impact on industrial activity

The United States eliminated the de minimis duty-free import exemption (up to $800 per person per day) effective August 29, 2025, impacting global postal and courier trade flows.

De Minimis Regulation

• Origin: Rooted in Section 321 of the U.S. Tariff Act of 1930.
• Purpose: Initially allowed American tourists to send souvenirs without paying taxes.
• Later Role: Became a trade facilitation measure to reduce administrative costs.
• In 2016, the U.S. raised the threshold from $200 to $800, significantly expanding coverage.

Impact of the Regulation (Before Reversal)

• Encouraged low-value e-commerce imports, mainly from China (over 50% share).
• Daily imports: 4 million parcels processed.
• Growth: From 134 million parcels in 2015 to 36 billion parcels in 2024.

Current Change (2025)

• Duty-free exemption abolished for all countries (China first targeted in May 2025).
• Goods like textiles, toys, cosmetics, and electronics will now face tariffs based on country of origin.
• S. rationale: Curb trade deficit, intellectual property theft, counterfeit products, and protect domestic businesses.

Global Parallels

• EU: Proposed €2 handling fee (direct imports) and €0.5 (via warehouses).
• EU also scrapped the €150 duty-free threshold in 2023 to protect consumers and businesses.
• Broader Trend: Both U.S. and EU measures reflect a weakening of multilateral trade order (WTO system) and rise of protectionism.

Implications for India

• India’s exports (like textiles, toys, handicrafts, small electronics) could face increased tariffs in the U.S. market.
• Small and medium exporters relying on e-commerce platforms may be disproportionately affected.
• Calls for diversification of export destinations and strengthening FTAs

Union Minister Shri Ashwini Vaishnaw inaugurated one of India’s first end-to-end Outsourced Semiconductor Assembly and Test (OSAT) Pilot Line Facility at Sanand, Gujarat, marking a key milestone under the India Semiconductor Mission (ISM).

India’s Semiconductor Mission and OSAT Significance

• The India Semiconductor Mission (ISM) aims to develop a complete semiconductor ecosystem including chip design, manufacturing, and testing.
• OSAT facilities perform chip assembly, packaging, and testing after fabrication, making them crucial for supply chain independence.
• The CG Semi OSAT Facility in Gujarat is among India’s first full-scale units, with investments of over ?7,600 crore and phased development of two plants (G1 and G2).

Strategic and Economic Importance

• The G1 unit, inaugurated in 2025, will reach a capacity of 5 million units per day with commercial production beginning in 2026.
• The upcoming G2 facility (completion by 2026) is projected to scale up to 5 million units per day.
• Collectively, both facilities will generate over 5,000 direct and indirect jobs, strengthening Atmanirbhar Bharat in high-tech sectors.
• This initiative reduces dependence on global semiconductor supply chains (largely dominated by Taiwan, South Korea, and the US).

Talent Development and Global Context

• By 2032, the world will face a shortage of 1 million semiconductor professionals; India is positioning itself to bridge this gap.
• The Government has partnered with 270 universities, giving access to advanced semiconductor design tools with 2 crore usages recorded in 2025.
• Already, 20 student-designed chips from 17 institutions have been fabricated at the Semi-Conductor Laboratory (SCL), Mohali.
• India thus aims to become a global hub for semiconductor talent and manufacturing.

India is preparing for its Samudrayaan Project, which will send humans in the Matsya-6000 submersible to explore ocean depths of up to 6,000 metres by 2027.

Samudrayaan Project:

• Part of India’s Deep Ocean Mission (approved in 2021), coordinated by the National Institute of Ocean Technology (NIOT), Chennai. It aims to send aquanauts to depths of 6,000 m to explore uncharted mineral, biological, and energy resources on the ocean floor.

Matsya-6000 Submersible:

• Human-occupied vehicle with a titanium-alloy spherical crew module (diameter: 2.1 m) capable of sustaining 3 persons for 12 hours (and up to 96 hours in emergencies). The vehicle has 80 mm thick titanium walls to withstand pressure 600 times greater than surface level.

Objectives of the Mission:

• Develop deep-sea technologies including manned submersibles.
• Explore polymetallic nodules (containing nickel, cobalt, copper, manganese, iron).
• Establish advanced marine stations for ocean biology and engineering research.
• Develop technologies for deriving energy and freshwater from oceans.

Challenges:

• Extreme environmental conditions (pressure, temperature, oxygen scarcity).
• Development of pressure-resistant spheres with precise electron-beam welding.
• Aquanaut health: strict physical and dietary discipline (no food/water intake during dive).
• Communication: normal radio waves fail underwater; acoustic communication is used. India is developing its indigenous acoustic technology.

Global Context:

• Only a few countries (US, Russia, China, France, Japan) currently possess deep-sea exploration capability. India aims to join this select group.

India’s youth are increasingly unemployable due to outdated education and misaligned skill development amidst rapid technological change.

Education System and Skills Gap

• Outdated Curriculum
  • India’s education system prepares students for jobs that are disappearing or evolving rapidly.
  • High school and university curricula are updated in slow three-year cycles, failing to match industry needs.
  • This misalignment leaves graduates underprepared for modern careers, especially in STEM and AI-driven sectors.
• Employability Crisis
  • 40%-50% of engineering graduates remain unemployed despite degrees.
  • Graduate Skills Index 2025 reports only 43% of Indian graduates are job-ready.
  • Lack of career guidance exacerbates the gap between student skills and labor market demand.
• Demographic Dividend at Risk
  • Over 800 million Indians are below 35, constituting one of the largest youth populations globally.
  • Misaligned education risks turning this asset into a “demographic time bomb.”
  • Automation threatens nearly 70% of jobs in India by 2030, making skill alignment urgent.

Emerging Technologies and Workforce Challenges

• AI and Automation Impact
  • AI could automate up to 30% of tasks in many jobs, reshaping the workforce.
  • World Economic Forum predicts 170 million new jobs globally by 2030, but 92 million may be displaced.
  • Urgent upskilling, cross-skilling, and reskilling are necessary to bridge this gap.
• Career Awareness Deficit
  • 93% of Indian students in classes 8–12 are aware of only seven traditional careers.
  • Over 65% of high school graduates pursue degrees misaligned with their interests or market needs.
  • Lack of early exposure to emerging career paths reduces employability in modern sectors.
• Digital Tools vs. Analog Mindset
  • Most schools have access to technology, but curricula remain exam-centric.
  • EdTech focuses on rote learning, not skill discovery or career readiness.
  • Graduates lack practical experience demanded by employers, creating a systemic skill deficit.

Government Initiatives and Way Forward

• Skill Development Programs
  • Initiatives include Skill India Mission, PMKVY, SANKALP, PMYY, and internship schemes.
  • Despite large-scale funding, the Skill India Mission fell short of its 2022 target of training 400 million individuals.
  • Fragmentation and lack of cohesion limit impact on youth employability.
• Need for Cohesive Strategy
  • Education and skill development must align with industry requirements.
  • Collaboration between government, private sector, and educational institutions is essential.
  • Platforms integrating AI, digital tools, and career guidance can address the employability gap.
• National Implications
  • India risks creating a generation of educated but unemployable youth, leading to social unrest and economic inefficiency.
  • Skilling for future careers is critical to convert demographic dividend into a productive asset.
  • Failing to act could undermine India’s ambition to become a global digital powerhouse.

Practice Question:

“Critically examine the challenges facing India’s education and skill development system in the context of AI-driven technological change. How can policy reforms ensure that the demographic dividend becomes an asset rather than a liability?”    (250 words)

India’s healthcare system faces the dual challenge of expanding access and ensuring affordability amid rising costs and growing demand.

Access and Affordability

• Insurance as Foundation
  • Pooling risk through insurance can make costly care affordable for millions.
  • Only 15%-18% of Indians are currently insured, with premiums well below global averages.
  • Expanding coverage via modest premiums can protect households from catastrophic medical expenses.
• Scaling Healthcare Delivery
  • India delivers quality care at extraordinary scale, e.g., MRI machines handle many more scans than in the West.
  • Tier-2 and tier-3 cities remain underserved, representing the next frontier for healthcare expansion.
  • Efficient replication of urban healthcare models can set a global benchmark for scale and inclusion.
• Government Schemes Impact
  • PM-JAY covers nearly 500 million people, offering cashless treatments up to ?5 lakh per family.
  • Participation of private hospitals is critical for expanding reach to the next 500 million.
  • Fair reimbursements and transparent processes are essential to maintain provider viability.

Prevention and Digital Innovation

• Prevention as Cost-Saver
  • NCDs like diabetes and hypertension cause catastrophic expenses even for insured families.
  • Insurance must include outpatient and diagnostic care alongside nationwide preventive measures.
  • Public participation in preventive healthcare can significantly reduce long-term treatment costs.
• Digital Health Adoption
  • Telemedicine and AI-driven tools enhance early detection, diagnostics, and remote consultations.
  • Digital innovations optimize productivity of doctors and nurses and improve patient outcomes.
  • Programs like Ayushman Bharat Digital Mission facilitate universal health records and continuity of care.
• Technology for Inclusion
  • Remote consultations allow specialists in metros to guide treatment in distant villages.
  • Expansion of digital health must target tier-2 and tier-3 cities for inclusive development.
  • AI and telemedicine can democratize healthcare access, bridging urban-rural disparities.

Regulation, Investment, and Sustainability

• Regulatory Framework
  • Insurance penetration depends on trust, fair claim settlements, and grievance redressal.
  • Environmental factors like pollution drive premium increases, affecting affordability.
  • Robust regulation ensures fair pricing, deepens coverage, and builds public confidence.
• Investment and Capital Allocation
  • In 2023, India attracted $5.5 billion in private equity for hospitals, digital health, and pharmacy networks.
  • Capital remains concentrated in metros; directing investment to smaller cities is critical.
  • Focus on primary networks and specialist training ensures growth translates into inclusion.
• Towards Universal Healthcare
  • Healthcare must transition from privilege to right for every Indian.
  • Integrated approaches combining insurance, prevention, digital tools, and efficient delivery are key.
  • Public-private partnerships can create a resilient, sustainable, and inclusive healthcare system.

Practice Question:

“Examine the challenges and opportunities in India’s healthcare system regarding access, affordability, and technology. How can government policy, private investment, and digital innovation collectively ensure universal health coverage?”   (250 words)

India Inc. struggles with innovation, productivity, and global competitiveness despite economic growth and policy support.

Structural and Cultural Issues

• Weak Human Capital Investment
  • Indian firms historically underinvest in human capital and R&D infrastructure.
  • Entrepreneurs have relied on cheap labor instead of transforming productive capacity.
  • Lack of skilled workforce and poor labor-management practices limit productivity.
• Cultural Constraints in Business
  • Indian entrepreneurs often avoid risk-taking and innovative ventures.
  • Family-controlled and risk-averse structures impede the creation of globally competitive firms.
  • Success in copying or managing existing business models dominates over original value creation.
• Historical and Structural Barriers
  • State regulation, license systems, and bureaucratic inertia historically constrained private investment.
  • Capital concentration and oligarchic dominance persist, limiting competition.
  • Fragmented policy and inconsistent support have hindered entrepreneurial scaling.

Market and Global Competitiveness Challenges

• Lack of Global Product Leadership
  • Indian firms rarely achieve global product innovation or technological superiority.
  • Acquisitions abroad rarely create local technological spillover.
  • Sectors like pharma, chemicals, and IT face limited global competitiveness.
• Impact of Capital Concentration
  • Wealth and control are concentrated among a few conglomerates like Ambani and Adani.
  • This concentration distorts competition and reduces entrepreneurial dynamism.
  • Capital-intensive strategies often prioritize short-term gains over long-term innovation.
• Comparison with International Firms
  • Companies in East Asia and the US invested in R&D and skill-building, achieving global dominance.
  • Indian firms prefer safer, less productive paths, missing opportunities in innovation-driven markets.
  • The contrast highlights systemic cultural and institutional weaknesses.

Policy Implications and Way Forward

• Need for Entrepreneurial Ecosystem
  • Policies must encourage risk-taking, startup creation, and innovation-led growth.
  • Reducing regulatory barriers and fostering competition can unlock latent potential.
  • Collaboration between government, academia, and industry is essential.
• Strengthening Labor and Productivity
  • Firms must manage labor with dignity and invest in skill upgrades.
  • Productivity gains require better work practices and technology adoption.
  • Ignoring workforce development limits both domestic and international competitiveness.
• Reforming Indian Capitalism
  • A shift toward global product leadership is critical for sustainable growth.
  • Reducing oligarchic dominance and encouraging broad-based entrepreneurship is necessary.
  • Policy, cultural, and educational reforms are key to realizing India’s economic potential.

Practice Question:

“Critically examine the structural, cultural, and institutional challenges facing Indian capitalism. How can India Inc. be transformed to enhance innovation, productivity, and global competitiveness?”