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Unemployment Rate (UR) and Environment Impact Assesment (EIA) and its significance for the UPSC Exam? Why are topics like Know-Your-Customer (KYC), Most Favoured Nation important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for May 17, 2025 |
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Critical Topics and Their Significance for the UPSC CSE Examination on May 17, 2025
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Environmental Impact Assesment (EIA)
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS III - Environment & Ecology
Context:
An expert panel of the Ministry of Environment, Forest and Climate Change has granted preliminary permissions to carry out an environmental impact assessment (EIA) study for a proposed 1,000 MW Upper Bhavani pumped hydropower project in the Nilgiri Hills, located in the ecologically fragile Western Ghats.
Read about:
Environmental Impact Assessment (EIA) and Environment Protection Act, 1986
Why Environmental Impact Assessment (EIA) is Important?
Key takeaways:
- An Environmental Impact Assessment (EIA) is a systematic process used to evaluate the potential environmental consequences of a proposed project or development before a decision is made to move forward with it.
- The purpose of the EIA is to ensure that decision-makers consider the likely environmental effects when deciding whether or not to proceed with a project.
- The EIA process begins with screening, which determines whether a project requires a full assessment and, if so, to what extent. This is followed by scoping, which identifies the key environmental issues and concerns that need to be studied. Scoping helps to focus the assessment on the most significant impacts rather than trying to examine every possible effect in detail.
- Once the scope is established, the next step is to collect and analyze data to predict how the project might affect the environment. This includes studying various factors such as air and water quality, soil stability, biodiversity, noise levels, and potential social and economic impacts.
- The findings are documented in an Environmental Impact Statement (EIS) or report, which outlines the potential effects—both positive and negative—as well as proposed measures to avoid, minimize, or compensate for environmental harm.
- The EIA process also includes a public consultation phase. This allows local communities, stakeholders, and other interested parties to provide input, voice concerns, and suggest alternatives or additional safeguards. Including public opinion is a crucial aspect of ensuring that the assessment is transparent and considers a range of perspectives.
- After considering all the evidence, including the technical analysis and public input, the relevant authority then makes a decision. This may result in project approval, rejection, or the requirement for modifications to reduce environmental damage.
- Even after a project is approved, ongoing monitoring is often required to ensure that the environmental protection measures are implemented effectively and that unexpected impacts are managed.
- In summary, the EIA is a vital tool for promoting sustainable development. It helps prevent environmental degradation by ensuring that potential impacts are identified and addressed early in the planning process, rather than after damage has already occurred
Follow Up Question
1.How does the draft Environment Impact Assessment (EIA) Notification,2020 Differ from the existing EIA Notification, 2006? (2020)
First monthly labour force survey: unemployment rate at 5.1% in April
For Preliminary Examination: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc
For Mains Examination: General Studies I: Social empowerment, General Studies III: Inclusive growth and issues arising from it
Context:
India’s unemployment rate stood at 5.1 per cent in April for persons aged 15 years and above, with the rate for males at 5.2 per cent and for females at 5.0 per cent, the first monthly bulletin of Periodic Labour Force Survey (PLFS) released on Thursday by the National Statistics Office (NSO) under the Ministry of Statistics and Programme Implementation showed.
Read about:
Employment Rate (ER) and Unemployment Rate (UER)
What is Periodic Labour Force Survey (PLFS)?
Key takeaways:
- The Labour Force Participation Rate (LFPR) represents the segment of the population that is either currently working or actively seeking employment. This measure includes both those who are employed and those who are unemployed but willing to work.
- According to the Current Weekly Status (CWS) method, the labour force comprises individuals who were either employed or unemployed, on average, during the week preceding the survey date.
- The Worker Population Ratio (WPR), which reflects the share of employed persons in the population, was reported at 52.8% for individuals aged 15 and above in April. Specifically, this ratio was 47.4% in urban regions and 55.4% in rural ones.
- Under the CWS framework, an individual is considered employed if they engaged in at least one hour of work on any day during the week before the survey was conducted.
- In April, the Periodic Labour Force Survey (PLFS) collected responses from approximately 3.80 lakh individuals and 89,434 households. Since January 2025, a revised methodology has been in place that employs a monthly rotational panel design across both urban and rural sectors.
- Under this approach, selected households are visited four times over four consecutive months — once for the initial survey and three more times for follow-up interviews.
- The unemployment rate is defined as the percentage of people who are unemployed within the total labour force. For the PLFS, this rate is determined using the CWS approach, where someone is considered unemployed if they were not engaged in any work for at least one hour during the past week but were seeking or available for employment during that time.
- In April, urban areas recorded an unemployment rate of 6.5%, while rural regions reported a lower rate of 4.5% for individuals aged 15 and above. Within urban zones, female unemployment stood at 8.7%, significantly higher than 5.8% for males.
- Conversely, in rural areas, female unemployment was 3.9%, slightly below the 4.9% recorded for males. Analysts attribute this urban-rural disparity to greater challenges in job creation in urban centers.
- These monthly figures are derived using the CWS technique, which evaluates a person’s employment status based on their activity during the seven days before the survey date.
- Among youths aged 15 to 29, the unemployment rate in April reached 13.8%, with urban youth unemployment at 17.2% and rural youth unemployment at 12.3%. Notably, young women experienced a higher unemployment rate (14.4%) than their male counterparts (13.6%) nationwide.
- In urban areas, the gender gap was wider: 23.7% for females versus 15.0% for males. However, in rural areas, the situation was reversed, with female youth unemployment at 10.7% compared to 13.0% for males. Experts suggest this may be due to a stronger emphasis on education among urban females and limited job prospects for them in urban areas.
- Finally, the overall LFPR for individuals aged 15 and above was 55.6% in April. This rate was 50.7% in urban locations and 58.0% in rural settings. Gender-wise, female participation remained low at 34.2%, in contrast to 77.7% for males.
- Further, female LFPR in urban areas was just 25.7%, while it rose to 38.2% in rural parts. On the other hand, the male LFPR stood at 75.3% in cities and 79.0% in rural areas
Follow Up Question
1.Increase in absolute and per capita real GNP do not connote a higher level of economic development, if(2018)
(a) industrial output fails to keep pace with agricultural output.
(b) agricultural output fails to keep pace with industrial output.
(c) poverty and unemployment increase.
(d) imports grow faster than exports.
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Answer (c)
An increase in absolute and per capita real Gross National Product (GNP) suggests that the economy is growing in terms of total and average output. However, economic development is a broader concept than just growth—it includes improvements in the standard of living, reduction in poverty, employment generation, access to education and healthcare, and equity. Even if GNP increases, if poverty and unemployment are also increasing, it means that the benefits of economic growth are not being shared equitably or effectively, and human well-being is not improving. Hence, such growth does not indicate a higher level of economic development. So, while GNP measures economic activity, economic development requires qualitative improvements in the population's lives, which are not captured by GNP alone |
What legal protections exist for persons with disabilities (PwDs)?
- India’s Constitution, through its Preamble, Fundamental Rights, and Directive Principles of State Policy, along with specific disability laws, places an obligation on the state to modify its legal and institutional frameworks to ensure that persons with disabilities can enjoy equal rights and opportunities.
- To reinforce these constitutional promises and fulfill obligations under the United Nations Convention on the Rights of Persons with Disabilities (UNCRPD), the Indian government introduced the Rights of Persons with Disabilities (RPwD) Act, 2016.
- This law is rooted in a ‘social-barrier’ model, recognizing that disability is not just a result of individual impairments but also of societal, physical, and psychological obstacles that hinder full participation in everyday life.
- A key provision of this Act—Section 42—requires the government to make all forms of media (print, electronic, and audio) accessible. It specifically calls for features like audio descriptions, sign language interpretation, and captions in electronic content, and it mandates that digital devices and interfaces follow universal design principles.
Is KYC mandatory?
- Yes, Know Your Customer (KYC) protocols are a legal requirement. As per the Prevention of Money-laundering Act, 2002 and the accompanying 2005 Rules, banks and financial bodies are required to confirm customer identities, maintain transaction records, and report relevant information to the Financial Intelligence Unit to combat illicit finance and money laundering.
- As a result, digital KYC processes have become essential for accessing various services—such as bank and investment accounts, mobile SIMs, pensions, and insurance—as well as for receiving government benefits like Aadhaar-based direct transfers and national scholarships.
- To streamline this process, the Reserve Bank of India (RBI), in its 2016 Master Direction on KYC, laid out a structured framework known as Customer Due Diligence (CDD). Clause 18 of this guideline introduced the Video-based Customer Identification Process (V-CIP), allowing for online identity verification via secure, live video calls.
- Verification steps include uploading a selfie, signing a document digitally or physically, scanning or photographing completed forms, entering a one-time password (OTP), and reading a randomly displayed code on the screen—all within a short time window.
How do current KYC systems affect persons with disabilities?
- People with visual impairments—including acid attack survivors with facial injuries and those who are blind or have low vision—have approached the courts seeking inclusive digital identity verification methods.
- They argue that the current procedures for digital KYC, e-KYC, and video-KYC are exclusionary and inaccessible for many PwDs. Petitioners have requested that bodies like the RBI, SEBI, and the Department of Telecommunications be directed to introduce disability-inclusive alternatives.
- At present, financial institutions are allowed to design their own KYC verification steps. Common methods like blinking to confirm presence, reading out on-screen codes, or taking selfies while writing a code, inherently exclude users with visual impairments.
- Despite the Information and Communication Technology (ICT) Accessibility Standards released in 2021 and 2022, many KYC platforms remain non-compliant.
- They lack basic features like screen reader cues for camera positioning, audio feedback for lighting and focus, or prompts to help distinguish between the front and back of documents.
- Moreover, thumbprints—often used by visually impaired individuals—are not accepted as valid signatures, nor can PAN cards be issued with them. Biometric systems based on Aadhaar further deepen the problem, as scanners typically do not support accessibility tools such as self-verification or text-to-speech.
- Because of these limitations, visually impaired individuals are often asked to complete verification in person or face rejection due to ambiguous technical reasons. The RBI’s Master Direction prohibits any form of prompting or assistance during the KYC process, leaving many users without needed support.
What has the Supreme Court said?
- The Supreme Court has consistently affirmed that accessibility for PwDs is not optional but a constitutional necessity. In the 2024 Rajive Raturi vs. Union of India judgment, the Court held that accessibility is central to the right to life, dignity, and freedom of movement under Article 21 of the Constitution.
- It echoed similar sentiments during the COVID-19 vaccine rollout, where it stressed that digital registration platforms must be fully accessible to avoid excluding disabled users.
- In the current case, the Court ruled that digital inaccessibility violates both international obligations under the UNCRPD and domestic disability rights legislation. Referring to the principle of substantive equality, the bench directed that digital KYC procedures be reformed with accessibility as a core requirement.
- The Court also observed that the digital divide impacts a broader group—beyond PwDs—including rural residents, senior citizens, people from economically weaker sections, and linguistic minorities.
- Citing Articles 14, 15, 21, and 38, the Supreme Court concluded that digital accessibility is integral to the right to life and liberty. It ordered that all digital systems be made inclusive, especially to serve the needs of marginalized communities
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Answer (C)
The Fundamental Duties of citizens are listed in Article 51A of the Indian Constitution. Among the options given:
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For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS II - Policies and Politics
Context:
Global pharma companies could ramp up pressure on India to raise the prices of drugs in India and other developing markets, as US President Donald Trump’s new executive order is set to force companies to align US drug costs with cheapest ones abroad.
Read about:
What does Most Favoured Nation mean?
What is the Priority Watch List watch list?
Key takeaways:
- India’s generic pharmaceutical sector, known for supplying affordable medication not just domestically but also to countries like the United States and the United Kingdom, has long drawn criticism from major pharmaceutical firms in developed economies.
- These companies claim that India’s relatively lenient intellectual property (IP) laws put them at a disadvantage in the global market. This tension was highlighted when the U.S. added India’s patent framework to its "Priority Watch List" for intellectual property concerns—an action that holds considerable implications for drug production. This development coincided with an executive order issued by then-President Donald Trump.
- Ajay Srivastava, who leads the Global Trade and Research Initiative (GTRI), commented that Trump's move to implement a Most Favoured Nation (MFN) pricing policy should serve as a serious alert for India. He noted that pharmaceutical firms facing tightening price regulations in Western countries may seek to make up for lost revenue by pushing for price hikes in countries like India.
- India’s pharmaceutical legislation is aligned with the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Nonetheless, India has consistently resisted adopting enhanced IP provisions, often known as "TRIPS-plus" standards.
- These include stricter patent enforcement mechanisms—such as data exclusivity, automatic extensions of patent duration, patent linkage, broader eligibility for patenting, and evergreening tactics—that are typically promoted by developed countries through bilateral Free Trade Agreements (FTAs).
- In a statement on social media, Trump announced the launch of a Most Favoured Nation pricing policy, which would require the United States to pay the same price for prescription drugs as the country offering the lowest rate globally.
- He claimed that this would immediately slash drug prices in the U.S. by 30% to 80%, and predicted that pharmaceutical prices would rise globally in response, ultimately creating what he termed a "fair" pricing model for the American public.
- Trump further questioned why identical drugs—produced by the same manufacturers in the same facilities—are often sold at significantly higher prices in the U.S. compared to other countries, sometimes five to ten times more expensive.
- According to international trade analysts, while this policy might offer short-term relief for American consumers, it is expected to disrupt global pricing structures. Major pharmaceutical companies are likely to intensify their efforts to raise prices in low-cost markets like India, since these countries would influence the pricing benchmarks in the highly profitable American market
Follow Up Question
1.Which of the following are the reasons for the occurrence of multi-drug resistance in microbial pathogens in India? (2019)
1. Genetic predisposition of some people
2. Taking incorrect doses of antibiotics to cure diseases
3. Using antibiotics in livestock farming
4. Multiple chronic diseases in some people
Select the correct answer using the code given below.
(a) 1 and 2
(b) 2 and 3 only
(c) 1, 3 and 4
(d) 2, 3 and 4
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Answer (b)
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Proposals for Maritime Carbon Regulation
- During the meeting, five unique proposals for reducing carbon emissions in shipping were presented. The International Chamber of Shipping recommended imposing a flat fee for every tonne of COâ‚‚ released.
- China advocated for a market-based mechanism that would allow vessels to trade compliance credits and invest in cleaner fuel alternatives. The European Union called for a fixed Greenhouse Gas (GHG) tax, overseen by an International Maritime Organization (IMO)-managed fund.
- India suggested a transitional system, where financial penalties would be imposed only on non-compliant ships, while vessels using Zero or Near-Zero (ZNZ) emission fuels would be incentivized. Singapore expanded on India’s model by proposing a system featuring a GHG Fuel Standard (GFS) and a tiered structure where ships earning surplus emission units are rewarded and those falling short must buy credits to offset their excess.
- Before the IMO could thoroughly consider the market-based measures (MBMs), geopolitical tensions became apparent. The U.S., under the Trump administration—which had exited the Paris Agreement and scaled back federal climate responsibilities—chose not to engage in the IMO’s discussions.
- It also warned against adopting the EU-backed carbon tax, threatening retaliatory measures. Despite this, the MEPC-83 session of the IMO voted 63–16 in favour of adopting Singapore’s hybrid approach, rooted in India’s original proposal, as the Net Zero Framework—marking the first time a global sector had adopted a binding emissions levy.
- India and Singapore were both credited for forging a compromise amidst polarized opinions. However, this vote does not conclude the process. The proposal now requires an amendment to Annex VI of the MARPOL Convention, which governs air pollution from maritime sources.
- The amendment must undergo a six-month review by all MARPOL signatories and gain approval from two-thirds of the voting parties. If all 101 parties participate, at least 67 votes are needed. Even if the amendment is adopted, it can still be blocked if one-third of the parties—representing at least half of the world’s shipping tonnage—formally object.
- Given the current tally—63 in favour, 16 against, and 22 abstentions—the path ahead remains uncertain. The outcome of this process could reshape the regulatory framework of international shipping for decades.
- The discussions during MEPC-83 revealed a clear split along national lines. Oil-producing countries, notably Saudi Arabia, resisted green fuel transitions to protect fossil fuel interests, whereas small island states and least developed countries called for stringent carbon fees to support sustainable development through redirected revenues.
- China and other major maritime nations pushed for minimal levies, favouring strategies that support investments in cleaner fuels while protecting competitiveness. Norway and its Scandinavian neighbours advocated for mechanisms that acknowledge their early investments in decarbonisation through surplus credit systems.
- Brazil promoted the quick adoption of methanol as the primary marine fuel. Meanwhile, some countries, citing the lack of viable green technologies, pushed for more time before implementation.
- Even after the vote, many shipowners, particularly in maritime powerhouses like Greece, remained sceptical of the feasibility and necessity of green levies. This broad spectrum of opinions highlights the formidable task the IMO faces in creating a universally acceptable emissions policy
Shipping's Environmental Footprint
- While not often visible to everyday consumers, the global shipping sector has a significant environmental impact. It is responsible for nearly one billion metric tonnes of GHG emissions annually, which is about 2.8% of global emissions. If international shipping were a country, it would be the sixth-largest emitter, positioned between Germany and Japan.
- Without intervention, emissions from shipping could increase by 50–250% by 2050. Although shipping currently emits less than road transport, its global nature attracts stricter international regulation.
- To address this, the IMO began introducing emissions reduction policies in 2011, followed by the Initial GHG Strategy in 2018 and an updated strategy in 2023. These strategies incorporate technical measures like the Energy Efficiency Design Index (EEDI) and operational tools such as the Ship Energy Efficiency Management Plan (SEEMP). Mandatory recording and reporting of fuel oil consumption are also in place.
- In alignment with the Paris Agreement, the IMO has adopted ambitious reduction targets: lowering carbon intensity by 40% by 2030 (relative to 2008 levels), 70% by 2040, and achieving net-zero emissions by 2050.
- These targets are more specific than those set by the International Civil Aviation Organization, which has only pledged a general aspiration for net-zero emissions by 2050 without clear interim goals.
- However, the principle of Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC)—a core tenet of the UNFCCC, Kyoto Protocol, and Paris Agreement—has seen reduced influence. CBDR-RC recognizes that all nations share responsibility for climate action but accounts for differing capacities and historical emissions.
- Recent IMO negotiations show a trend of shifting more responsibility onto developing countries, despite stark contrasts in wealth and industrial history
India's Strategic Position and Potential Gains
- Although the IMO’s emissions levy and reduction goals may bring short-term difficulties for some Indian industries, the country stands to benefit in the long run from the MBM framework. According to the UN Conference on Trade and Development, the near-term increase in India’s maritime logistics costs will be manageable—between 5% to 8% by 2030 for imports and exports. By 2050, this could rise to around 33–35%, but the actual impact on trade volumes is expected to be negligible.
- India has a fleet of roughly 236 ships over 5,000 gross tonnage, with 135 involved in international shipping. Since MBMs only apply to international routes, the domestic fleet will remain unaffected.
- Currently, India spends about $400 million annually on fuel for its international fleet, and this is projected to increase by $108 million by 2030, which is manageable relative to the size of the sector.
- More importantly, the new framework could enable India to become a global hub for green energy exports. With heavy investments in green hydrogen under the National Hydrogen Mission, companies like Reliance, Adani, and JSW are scaling up production. Additionally, three Indian ports are being prepared for green hydrogen bunkering.
- According to the mission’s standards, Indian green hydrogen must emit no more than 2 kg COâ‚‚e per kilogram (or 16.7 g COâ‚‚e per megajoule) over its entire lifecycle. These levels fall within the IMO’s current reward thresholds of 19.0 g COâ‚‚e/MJ (until 2034) and 14.0 g COâ‚‚e/MJ thereafter—making Indian hydrogen eligible for international incentives and competitive in global markets
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Answer (D)
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How the judiciary maintains accountability?
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS II - Indian Polity & Governance
Context:
The recent comments by the Vice-President of India on the role of judges has caused much anxiety and is a matter of serious concern that needs to be analysed properly. It is a well-known fact that with power comes responsibility. The position of the Vice-President is second in the order of precedence in India and therefore, anybody holding such a post needs to be extremely cautious before speaking, as his views might send wrong signals to the people
Read about:
Organisational structure of the Supreme Court of India
Process of appointment of Judges of the Supreme Court of India
Key takeaways:
- Recent remarks made by the Vice-President of India concerning the judiciary's role have sparked considerable unease and warrant a thorough and reasoned analysis. It's a widely acknowledged principle that great authority brings with it a proportionate responsibility.
- As the second-highest constitutional authority in India, the Vice-President holds a position of immense significance, and thus, any statements made in this capacity must be measured, as they can influence public perception.
- Vice-President Jagdeep Dhankhar, responding to the Supreme Court's directives regarding timelines for Presidents and Governors to act on Bills passed by the legislature, criticized the judiciary by suggesting that it behaves like a "super parliament."
- He also asserted that judges are not subject to legal accountability and claimed that judicial directions to the President are inappropriate. However, the term "super parliament" lacks any constitutional relevance.
- Parliament, as the embodiment of the people's will, holds ultimate legislative authority under the framework of popular sovereignty. No institution, including the judiciary, has the right to supersede Parliament’s authority.
- To guard against any misuse of judicial independence, the framers of the Constitution carefully embedded all judicial powers within the Constitution itself. This was affirmed by the Supreme Court in L. Chandra Kumar v. Union of India (1997), where it reiterated that while judicial powers originate from the Constitution, the independence of the judiciary is guaranteed through the principle of separation of powers.
- If judges act arbitrarily or exceed their constitutional boundaries, it would be a serious breach of Article 50, and the Parliament—where the people’s mandate rests—holds the authority to begin proceedings for the removal of such a judge.
- Regarding the Vice-President’s claim that courts cannot direct the President, it’s important to understand the President’s constitutional role. As per Articles 1 and 52, the President is the head of the Indian State, elected under Articles 54 and 55, and symbolizes the Republic of India.
- Additionally, Articles 53(1), 53(2), and 79 outline the President's roles as head of the Executive, the armed forces, and Parliament, respectively. However, the President's actions must align with the principles of popular sovereignty.
- The power to assent to Bills is part of the President's constitutional duty, but undue delay in this regard undermines democratic processes and the authority of the people's representatives. Thus, judicial directions ensuring timely assent are not an attack on presidential dignity, but rather a reinforcement of democratic values.
- The Vice-President's assertion that the law does not apply to judges is unfounded. Such a statement, coming from a top constitutional figure, contradicts the very principle of rule of law, which is rooted in constitutional supremacy.
- Judges operate strictly within the framework of the Constitution. If they transgress those boundaries, they can be subjected to removal for misconduct, which includes constitutional violations. Moreover, Parliament retains the legislative power to nullify judicial decisions by enacting new laws, thereby upholding the principle of people’s sovereignty.
- Lastly, the Constitution empowers the judiciary to scrutinize the actions of the State and its agencies to uphold the rule of law and safeguard citizens’ rights. Article 142 of the Constitution further enables the Supreme Court to deliver complete justice in cases where existing laws or constitutional provisions fall short. In such instances, the Court becomes the ultimate interpreter and guardian of the Constitution
Follow Up Question
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Answer (C)
Statement 1:
Correct. Statement 2:
Correct. |
| Subject | Topic | Description |
| Polity | Citizenship | Citizenship Amendment Act |
| Polity | Special Provision for Scheduled Caste(SC) and Scheduled Tribe (ST) | Special Provision for Scheduled Caste(SC) and Scheduled Tribe (ST) |
| Economy | International Monetary Fund (IMF) | International Monetary Fund (IMF) |
| Environment | Evolution of Life | Evolution of Life |
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