INTEGRATED MAINS AND PRELIMS MENTORSHIP (IMPM) 2025 Daily KEY
| Exclusive for Subscribers Daily:
Total Fertility Rate (TFR) and Article 356, Enforcement Directorate (ED) and its significance for the UPSC Exam? Why are topics like Reserve Bank of India (RBI) , Goods and Services Tax (GST) important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for June 03, 2025 |
🚨 UPSC EXAM NOTES presents the March edition of our comprehensive monthly guide. Access it to enhance your preparation. We value your input - share your thoughts and recommendations in the comments section or via email at Support@upscexamnotes.com 🚨
Critical Topics and Their Significance for the UPSC CSE Examination on June 03, 2025
Daily Insights and Initiatives for UPSC Exam Notes: Comprehensive explanations and high-quality material provided regularly for students
How is President’s Rule imposed?
For Preliminary Examination: Current events of national and international significance
For Mains Examination: GS II - Indian Polity and Governance
Context:
A delegation of 10 MLAs from the Manipur Assembly met the Governor of the State and pressed for the formation of a viable government in Manipur that has been under President’s Rule since February 2025.
Read about:
Article 356
Article 352
Key takeaways:
What is President’s Rule?
- President’s Rule is enforced in a State under Article 356 of the Constitution when the State government is dismissed. Unlike the constitutions of countries like the United States and Australia—which require their federal governments to support state governments but do not permit their removal—India’s Constitution allows the Central government to assume control of a State’s administration if it cannot be run as per constitutional provisions.
- This authority is exercised by the President, usually following a report from the State Governor or, in some cases, under Article 365, when a State fails to implement directives from the Union government.
- To remain in effect, the proclamation of President’s Rule must receive approval from both Houses of Parliament within two months through a simple majority. Once approved, it is valid for six months and may be extended in six-month increments with repeated parliamentary approval, again by a simple majority. However, the total duration of President’s Rule in a State cannot exceed three years
What is the historical background?
- During the Constituent Assembly debates, Dr. B.R. Ambedkar had expressed hope that Article 356 would never need to be invoked and would remain unused. Contrary to this hope, the provision has often been misapplied to dismiss democratically elected State governments that held a majority, undermining constitutional values and the spirit of federalism.
- The reasons cited for such dismissals ranged from setbacks in Lok Sabha elections to perceived law-and-order failures. Decisions related to the dissolution of State Legislative Assemblies following the imposition of President’s Rule have lacked consistency and often been guided more by political motives than by constitutional norms.
- Governors have responded differently in similar situations regarding the dissolution of Assemblies. While the advice of a Chief Minister with majority support is generally binding, there have been instances where Governors acted differently based on perceived political circumstances.
- For example, even when a Chief Minister’s majority was in doubt, the Assemblies in Kerala (1970) and Punjab (1971) were dissolved on their advice. In contrast, in similar situations in Punjab (1967), Uttar Pradesh (1968), Madhya Pradesh (1969), and Orissa (1971), Assemblies were not dissolved immediately. Instead, efforts were made to explore alternative government formations.
What have the courts said?
- For decades after Independence, the judiciary largely refrained from challenging the Centre’s decisions on invoking President’s Rule. However, the landmark S. R. Bommai case (1994) significantly curtailed the scope for misuse of Article 356.
- The Supreme Court clarified that this provision should be applied only when there is a genuine collapse of constitutional governance—not merely due to disturbances in law and order.
- The judgment also established that such proclamations are subject to judicial scrutiny and must not be used for political gains. Moreover, it ruled that the State Assembly must not be dissolved before Parliament ratifies the imposition of President’s Rule—it should instead remain in suspended animation.
- Since this judgment, the judiciary has actively monitored the use of Article 356. In notable cases like Bihar (2005), Uttarakhand (2016), and Arunachal Pradesh (2016), the courts invalidated the unjustified application of President’s Rule.
When is President’s Rule withdrawn?
- In situations where no party holds a legislative majority, fresh elections are generally conducted. Once a clear majority emerges, President’s Rule is withdrawn, and an elected government assumes office.
- For instance, Manipur was placed under President’s Rule in February 2025 due to escalating security concerns and related political instability. The Legislative Assembly, whose term runs until March 2027, has been suspended rather than dissolved.
- Given that over 18 months remain in its term, it would be appropriate to form a new government that not only commands legislative majority but also represents the confidence of diverse social groups within the State
1.Which of the following are not necessarily the consequences of the proclamation of the President’s rule in a State? (2017)
- Dissolution of the State Legislative Assembly
- Removal of the Council of Ministers in the State
- Dissolution of the local bodies
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
|
Answer (b)
Upon the proclamation of President’s Rule under Article 356, the following typically occur:
|
Development of India’s Economic Intelligence Agency
- The Enforcement Directorate (ED) began operations on May 1, 1956, as the ‘Enforcement Unit’ under the Department of Economic Affairs, Ministry of Finance. It was originally tasked with addressing violations under the now-defunct Foreign Exchange Regulation Act (FERA), 1973. Eventually, it was renamed the Enforcement Directorate and moved under the Department of Revenue, with expanded responsibilities in enforcing various financial laws.
- With the introduction of the Foreign Exchange Management Act (FEMA) in 1999, replacing FERA, and the enactment of the Prevention of Money Laundering Act (PMLA) in the early 2000s, the ED’s role and authority expanded significantly.
- These legislative changes brought India's framework more in line with global anti-money laundering standards, particularly those recommended by the Financial Action Task Force (FATF). India became an observer in FATF in 2006 and gained full membership in 2010.
Mandate and Core Legal Framework
The ED is primarily responsible for enforcing financial laws in India, particularly related to money laundering and foreign exchange violations. The major statutes it enforces include:
-
Prevention of Money Laundering Act, 2002 (PMLA): The ED investigates money laundering offences, identifies and traces assets acquired from such activities, prosecutes offenders, and secures permanent confiscation of illicit assets.
-
Foreign Exchange Management Act, 1999 (FEMA): The ED is empowered to take action against breaches of foreign exchange regulations and also oversees legacy cases under FERA.
-
Fugitive Economic Offenders Act, 2018 (FEOA): The agency can seize and confiscate assets of economic offenders who evade Indian law by residing abroad.
-
Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974 (COFEPOSA): The ED can initiate preventive detention proceedings under FEMA violations by sponsoring cases under COFEPOSA
Powers and the Federal Balance
- As a central authority for financial crimes, the ED has substantial powers to investigate, collect evidence, and restrain illegal financial activities. Under PMLA, it can summon individuals, compel testimony, and admit such statements as legal evidence.
- It is authorized to conduct raids, seize documents or property, and make arrests, provided there is adequate justification and due process is followed.
- Unlike standard arrest procedures under the Bharatiya Nagarik Suraksha Sanhita (BNSS), arrests under PMLA require a higher threshold, including a recorded basis and proper communication of arrest grounds to the accused.
- The ED can also provisionally attach properties suspected to be proceeds of crime for up to 180 days, preventing their disposal during investigations. A notable aspect of PMLA is that the burden of proof lies with the accused, requiring them to justify the legitimacy of their assets.
- In addition to its investigatory role, the ED functions in a quasi-judicial capacity under FEMA, adjudicating and imposing penalties for violations. Under FEOA, it can take action against absconding offenders by confiscating their properties.
- Although the ED’s role is crucial for maintaining financial integrity, its powers must operate within the constitutional limits of Indian federalism. The Supreme Court has emphasized restraint, warning against central overreach that might disturb the Union-State balance, particularly in matters falling under State jurisdiction
Issues Regarding Autonomy and Effectiveness
- While the ED is pivotal in upholding financial law, its operations have often been criticized. A recent example is the TASMAC case, where the Chief Justice of India highlighted concerns about the ED’s infringement on the federal structure and questioned its autonomy. There are ongoing debates about the agency’s impartiality and whether it operates under political influence.
- One major concern is the low conviction rate under PMLA. Between 2014 and 2024, only 40 convictions were recorded out of 5,297 registered cases, prompting the Supreme Court in August 2024 to urge the ED to prioritize quality over quantity in its prosecutions.
- The agency's broad powers under PMLA—including arrest, asset attachment, and reversed burden of proof—have sparked debates about their impact on due process and individual rights. Critics argue that these provisions have sometimes been exploited for political purposes, with several cases being dismissed due to lack of evidence, reinforcing concerns of misuse.
- The ED’s operational independence has also come under scrutiny due to frequent allegations of selective targeting, undermining its credibility. Calls for transparency in case selection, investigative procedures, and outcomes have grown louder.
- Furthermore, the ED has occasionally encroached upon matters that fall within the State domain, creating intergovernmental friction, as seen in the TASMAC case
|
Answer (D)
|
RBI’s surplus transfer to govt
For Preliminary Examination: Current events of national and international significance
For Mains Examination: GS III - Economy
Context:
The Board of the Reserve Bank of India (RBI) on May 23 approved a record surplus transfer, or dividend, of Rs 2.69 lakh crore to the Central Government for the accounting year 2024-25. It followed a meeting of the central board of directors of the RBI on May 15
Read about:
Economic Capital Framework (ECF)
Surplus distribution policy
Key takeaways:
Functions and Earnings of the Reserve Bank of India (RBI)
The Reserve Bank of India, as the nation's central bank, plays a multi-faceted role. Beyond its primary objective of maintaining price stability through monetary policy, it is also tasked with managing the borrowing programmes of both the central and state governments, overseeing banks and non-banking financial institutions, and ensuring the smooth functioning of the currency issuance and payments systems.
In the course of fulfilling these responsibilities, the RBI generates income. Its revenue sources primarily include:
-
Returns from Foreign Assets: These earnings come from investments in bonds, treasury instruments of other countries, top-rated securities, and deposits maintained with foreign central banks.
-
Interest Income from Domestic Operations: This involves interest accrued on government securities held in rupees, and on short-term lending to commercial banks (such as overnight loans).
-
Commission Income: The RBI charges a commission for managing debt issuances of the central and state governments.
On the expenditure side, the main costs include printing of currency, employee salaries, and commissions paid to banks and primary dealers for conducting government-related financial transactions across the country.
Transfer of Surplus to the Government
- The RBI differs from commercial banks or government-owned companies in that it does not declare dividends. Instead, as per Section 47 of the Reserve Bank of India Act, 1934, the central bank transfers its surplus—the remaining income after expenses—to the government.
- Originally established in 1935 as a private shareholders’ institution with a capital of ₹5 crore, the RBI was nationalised in 1949, making the Indian government its owner. Surplus transfers are conducted annually by the Central Board of the RBI, typically in early August, after the conclusion of its financial year (July–June).
Recommendations of the Malegam Committee
- In 2013, a technical committee chaired by Y. H. Malegam was set up by the RBI to assess the adequacy of reserves and propose a policy for distributing surplus funds. The committee recommended increasing the share of surplus transferred to the government.
- Previously, portions of the RBI’s surplus were allocated to a Contingency Fund, meant to cover unexpected financial risks, and to an Asset Development Fund, reserved for capital investments and infrastructure for subsidiaries. This followed an earlier recommendation to maintain contingency reserves at 12% of the RBI’s balance sheet.
- However, following the Malegam committee’s guidance, the proportion of surplus transferred to the government dramatically increased—rising from 53.40% in 2012–13 to nearly 99.99% in 2013–14
Follow Up Question
|
Answer (C)
Statement 1: An increase in the Nominal Effective Exchange Rate (NEER) indicates the appreciation of the rupee.Correct.
Statement 2: An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness.Incorrect.
Statement 3: An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER.Correct.
|
Goods and Services Tax (GST) Collection
For Preliminary Examination: Current events of national and international significance
For Mains Examination: GS III - Economy
Context:
Gross Goods and Services Tax (GST) collections rose 16.4 per cent year-on-year to Rs 2.01 lakh crore in May (for sales in April), data released by the government on Sunday showed. The GST collections in May were lower than last month’s record-high level of Rs 2.37 lakh crore even as the growth rate was higher at 16.4 per cent in May as against 12.6 per cent growth seen in April
Read about:
What is Goods and Services Tax (GST)?
What are the different types of Goods and Services Tax (GST)?
Key takeaways:
-
Refund trends in May indicated a total of ₹27,210 crore was refunded, marking a 4% year-on-year (YoY) decline. Notably, domestic refunds rose significantly by 53.7% YoY to ₹18,314 crore, whereas import-related refunds dropped sharply by 45.9% to ₹8,896 crore.
-
In contrast, April figures showed domestic refunds at ₹13,386 crore, registering a 22.4% YoY increase, while import refunds surged by 86.1% YoY to ₹13,955 crore.
-
Looking at state-wise GST collections for October, 20 out of 38 states/UTs reported a growth rate above the national average of 16.4%.
-
In terms of total GST collected, Maharashtra led with ₹31,530 crore (17% growth), followed by Karnataka with ₹14,299 crore (20%), Tamil Nadu at ₹12,230 crore (25%), Gujarat at ₹11,737 crore (4%), and Delhi at ₹10,366 crore (38%).
-
Some states and Union Territories experienced a decline in collections in May. These include Andhra Pradesh with ₹3,803 crore (-2%), Uttarakhand at ₹1,605 crore (-13%), Dadra and Nagar Haveli & Daman and Diu at ₹351 crore (-6%), and Mizoram at ₹29 crore (-26%).
-
The breakdown of GST revenues for the month showed Central GST (CGST) at ₹35,434 crore, State GST (SGST) at ₹43,902 crore, Integrated GST (IGST) at ₹1.09 lakh crore, and cess collections amounting to ₹12,879 crore.
-
Although April's collections were buoyed by fiscal year-end activity, May’s domestic GST growth slowed, while import-based GST rose 25.2% YoY to ₹51,266 crore, compared to ₹46,913 crore in April.
-
On the domestic side, May collections saw a 13.7% YoY rise to ₹1.50 lakh crore, which was lower than April’s ₹1.90 lakh crore. Overall, net GST collections in May rose 20.4% YoY to ₹1.74 lakh crore. Analysts interpret the continued double-digit growth as a sign of sustained economic recovery
|
Answer (D)
A. It is a destination tax – ✅ True B. It benefits producing states more – False C. It benefits consuming states more – True D. It is a progressive taxation – Debatable/Not fully accurate E. It is an umbrella tax to improve ease of doing business – True |
A bow echo is a distinctive radar signature that appears as a curved or bow-shaped line of thunderstorms on weather radar displays. The name comes from its characteristic crescent or arc shape that resembles an archer's bow when viewed from above.
Key Characteristics
Radar Appearance The bow echo shows up on Doppler radar as a curved line of intense precipitation, typically 50-400 kilometers (30-250 miles) long. The center of the bow often shows weaker reflectivity due to strong downdrafts, while the edges maintain intense precipitation cores.
Structure Components
- Bookend vortices: Rotating circulations at each end of the bow
- Rear inflow jet: Strong winds flowing into the back of the storm system
- Weak echo region: An area of reduced precipitation in the center caused by downdrafts
- Forward flank downdraft: Descending air that creates surface wind damage
Formation Process
Bow echoes typically form when:
- A line of thunderstorms (squall line) develops asymmetric downdrafts
- Strong rear-to-front winds accelerate the center of the line forward
- The line bows outward, creating the characteristic curved shape
- Bookend vortices develop at the tips, helping maintain the structure
Meteorological Significance
Wind Production Bow echoes are primarily known for producing damaging straight-line winds at the surface, often reaching 60-100+ mph. These winds result from strong downdrafts that hit the ground and spread outward horizontally.
Storm Evolution They represent an intermediate stage between ordinary squall lines and more complex mesoscale convective systems. Some bow echoes can evolve into derechos when they persist and produce widespread wind damage over hundreds of miles.
Forecasting Importance The bow echo signature on radar is a critical warning sign for meteorologists, indicating that damaging winds are likely occurring or imminent, prompting the issuance of severe thunderstorm warnings.
1.Consider the following statements regarding Bow Echo:
- It appears as a curved or bow-shaped line of thunderstorms on weather radar displays.
- Bow echoes are primarily associated with rotating supercell thunderstorms that produce tornadoes.
- The characteristic feature of bow echoes is the production of damaging straight-line winds at the surface.
- When bow echoes progress more than 250 miles with widespread wind gusts, they can develop into derechos.
Which of the statements given above are correct?
(a) 1, 2 and 3 only
(b) 1, 3 and 4 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4
|
Answer (b)
Statement 1: CORRECT ✓
Statement 2: INCORRECT ✗
Statement 3: CORRECT ✓
Statement 4: CORRECT ✓
|
For Preliminary Examination: Current events of national and international significance
For Mains Examination: General Studies III: Conservation, environmental pollution and degradation, environmental impact assessment
Context:
The latest population estimation exercise in Gujarat has recorded 891 lions, a 32% jump in population since 2020. In these five years, lions have also expanded their range by 17% — from 30,000 to 35,000 sq km — and now cover 58 talukas (up from 53 in 2020) in 11 districts
Read about:
How are Asiatic lions different from other lions?
What is the conservation status of the Asiatic lions?
Key takeaways:
- Over the past five years, Asiatic lions have established themselves in at least three additional regions — Barda Wildlife Sanctuary, Jetpur, and Babra-Jasdan — highlighting a positive trend in their recovery.
- Today, around 900 lions are dispersed across 358 sites, a development that contributed to the International Union for Conservation of Nature (IUCN) reclassifying the species from “critically endangered” to “endangered” back in 2008.
- However, a deeper analysis of the data suggests that the expansion of the lions' geographical range has not been matched by a proportional increase in their population. Since 1990, the territory inhabited by lions has grown by an impressive 430%, yet their population has only seen a 214% increase, revealing a slower rate of growth in actual numbers.
- This discrepancy is partly due to the limited number of protected habitats in the Saurashtra peninsula. Apart from Gir National Park, which remains the core sanctuary, the region has only a few smaller reserves like Pania, Girnar, Mitiyala, and Barda, which has been newly colonised.
- As these areas have reached their ecological capacity, lions have been forced to venture into less suitable terrains, including wastelands, farmlands, and agricultural plantations, often found alongside patches of natural vegetation.
- Official data supports this pattern. According to government figures, just 56% of Gujarat’s lion population lives within forest zones. Though recent census details are incomplete, the 2020 report highlighted a stark contrast in population density: 15.2 lions per 100 sq km in forested zones, compared to a mere 1.65 in non-forested areas.
- These non-forested regions, often near human settlements, are far from ideal for a top predator like the lion. A former chief wildlife warden admitted that there have been unofficial incidents of retaliatory killings, where lions died due to electrocution, falling into wells, or being shot under the claim of self-defense.
- During the announcement of the latest figures on May 21, Gujarat Chief Minister Bhupendra Patel attributed the growth in lion numbers not only to favourable environmental conditions but also to the state’s consistent conservation efforts. Nevertheless, sustaining this progress will require further action.
- From a population of fewer than 200 lions in the 1960s, when Gir Forest received formal protection, the species has made a significant comeback. This growth, however, has been gradual, with the number not surpassing 300 until 1995, around the time lions began moving outside forest boundaries.
- Between 1990 and 2005, the lion’s range doubled from 6,600 sq km to 13,000 sq km, but the population only rose by 26%, from 284 to 359. Over the following 15 years, as their territory again doubled to 30,000 sq km, the presence of established satellite populations helped boost numbers by 88%, from 359 to 674.
- The most recent survey reaffirms this upward trend. Notably, this is just the second time since 2015 that the growth rate of the lion population has outpaced the expansion of its territory. Still, experts have pointed out that the use of absolute numbers without a stated margin of error is atypical for a scientific population assessment, raising questions about the methodology
Follow Up Question
1.Consider the following statements: (UPSC CSE 2019)
1. Asiatic lion is naturally found in India only.
2. Double-humped camel is naturally found in India only.
3. One-horned rhinoceros is naturally found in India only.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
|
Answer (a)
|
Why is there variation in fertility rates?
For Preliminary Examination: Total Fertility Rate (TFR) , Crude Birth Rate (CBR)
For Mains Examination: GS III - Science and Technology
Context:
The Sample Registration System (SRS) Statistical Report of 2021, released by the Office of the Registrar General of India recently, showed that India has maintained its Total Fertility Rate (TFR) at 2.0 — the same as reported in 2020. While the national average for TFR has remained the same, there is a wide regional variation in TFR data for States and Union Territories (UTs) reported independently.
Read about:
Total Fertility Rate (TFR) at 2.0
Sex Ratio at Birth
General Fertility Rate
Key takeaways:
- The Sample Registration System (SRS) Statistical Report for 2021, published by the Office of the Registrar General of India, indicates that India's Total Fertility Rate (TFR) has remained stable at 2.0, consistent with the figure reported in 2020.
- Although the national TFR has not changed, there are significant regional disparities in fertility rates across various States and Union Territories. Bihar recorded the highest TFR at 3.0, whereas West Bengal and Delhi reported the lowest at 1.4.
- Over the ten-year span from 2009-11 to 2019-21, TFR has shown a steady decline both at the national and state levels, though the pace of decline has varied.
- The SRS calculates TFR as the average number of children a woman is expected to bear during her reproductive years, defined as between ages 15 and 49. This metric is derived using age-specific fertility rates, which estimate the fertility of women within specific age groups.
- The SRS survey, which is India’s largest demographic survey, collects annual data on fertility and mortality indicators. The 2021 edition covered 8,842 sample units across all States and UTs, representing a population sample of around 84 lakh individuals.
- In addition to TFR, the report includes other fertility-related metrics such as the Crude Birth Rate (CBR), Sex Ratio at Birth, General Fertility Rate, Age-Specific Fertility Rate, and the Gross Reproduction Rate.
- The CBR measures the number of live births per 1,000 people, while the General Fertility Rate counts live births per 1,000 women of reproductive age. The Gross Reproduction Rate assesses the average number of daughters a woman is expected to have, who will themselves become mothers.
- Importantly, India’s TFR has now dropped below the replacement level of 2.1, which is the threshold needed for a generation to replace itself. In 2021, only six States had TFRs exceeding this replacement level: Bihar (3.0), Uttar Pradesh (2.7), Madhya Pradesh (2.6), Rajasthan (2.4), Jharkhand (2.3), and Chhattisgarh (2.2). All other States reported TFRs at or below 2.1.
- The report also notes that India’s Crude Birth Rate stood at 19.3 in 2021, having declined at an average annual rate of 1.12% since 2016. Most large States and UTs have shown a decreasing trend in CBR, with the exception of Uttarakhand, which recorded a slight increase. Notably, Kerala, Tamil Nadu, and Delhi have experienced the fastest rate of decline in CBR, almost double the national average
Follow Up Question
|
Answer (C)
Total Fertility Rate (TFR) represents the average number of children a woman would bear over her reproductive years (usually ages 15–49) if she experienced that year’s age‑specific fertility rates throughout her life
|