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China-Pakistan Economic Corridor (CPEC) and Forest Cover in India and its significance for the UPSC Exam? Why are topics like Index of Industrial Production (IIP) , Foreign direct investment (FDI) important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for May 23, 2025 |
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Critical Topics and Their Significance for the UPSC CSE Examination on May 23, 2025
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CHINA-PAKISTAN Economic Corridor (CPEC)
For Preliminary Examination: Current events of national and international significance
For Mains Examination: General Studies-II: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora
Context:
THE CHINA-PAKISTAN Economic Corridor (CPEC) is set to be expanded to Afghanistan with the foreign ministers of the three countries agreeing on it as part of broader efforts to boost “trilateral” cooperation.
Read about:
China-Pakistan Economic Corridor (CPEC)
What is the Belt and Road Initiative?
Key takeaways:
— The China-Pakistan Economic Corridor (CPEC) forms a key component of China's broader Belt and Road Initiative (BRI).
— In 2023, China commemorated the tenth anniversary of its extensive global infrastructure strategy, the Belt and Road Initiative, originally proposed by President Xi Jinping.
— The concept of the Silk Road Economic "Belt" was introduced by President Xi during his 2013 visit to Kazakhstan. The goal was to rejuvenate historic trade and infrastructure networks connecting Asia and Europe, with a particular emphasis on routes passing through Central Asia.
— Later, Xi unveiled a complementary maritime initiative, termed the "Road," aimed at enhancing sea trade connectivity between China and regions such as Southeast Asia, Europe, and Africa. This segment has emphasized the construction of ports, bridges, industrial zones, and other infrastructure across Southeast Asia and the Indian Ocean.
— Initially known as the One Belt One Road (OBOR) initiative, the project has been more commonly referred to as the BRI since 2015.
— Since its inception, India has consistently expressed concerns over the BRI, primarily due to sovereignty issues stemming from CPEC's route through Pakistan-occupied Kashmir (PoK), as well as broader strategic concerns regarding China's activities in the Indian Ocean.
— A recent announcement on the expansion of CPEC followed a trilateral meeting in Beijing involving Chinese Foreign Minister Wang Yi, Pakistan’s Foreign Minister Ishaq Dar, and Afghanistan's Acting Foreign Minister Amir Khan Muttaqi, as per a Pakistani official statement.
— India has strongly objected to the CPEC, given its passage through PoK, and has extended this criticism to the BRI as a whole due to its inclusion of the corridor.
— The trilateral talks took place at the conclusion of Dar’s three-day trip to Beijing, marking the first high-level engagement since India launched Operation Sindoor on May 7 — a counter-terror strike in response to the deadly April 22 Pahalgam terror attack that claimed 26 lives
Follow Up Question
1.Belt and Road Initiative’ is sometimes mentioned in the news in the context of the affairs of (UPSC CSE 2016)
(a) African Union
(b) Brazil
(c) European Union
(d) China
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Answer (d)
The Belt and Road Initiative (BRI) is a global infrastructure and economic development strategy launched by China in 2013. It aims to enhance connectivity and cooperation between China and countries across Asia, Europe, and Africa through investments in infrastructure like roads, railways, ports, and industrial parks. It is also referred to as the 21st Century Silk Road. This initiative is often in the news due to its geopolitical and economic implications |
For Preliminary Examination: Current events of national and international significance
For Mains Examination: GS III - Environment and ecology
Context:
India lost 18,200 hectares of primary forest in 2024 compared to 17,700 hectares in 2023, according to new data from Global Forest Watch (GFW), a global collaboration of over 100 organisations.
Read about:
What is the status of forest cover in India?
What are the reasons for deforestation?
Key takeaways:
— On December 21, Environment Minister Bhupender Yadav unveiled the 18th edition of the biennial India State of Forest Report (ISFR-2023) at the Forest Research Institute in Dehradun. This report, released every two years, utilizes satellite imagery to assess the nation's forest cover.
— According to the latest report, India's green cover has crossed the 25% mark, with a total of 8,27,357 sq km, comprising 21.76% forest cover and 3.41% tree cover. Out of this, dense forests account for 4,10,175 sq km.
— Forest area has expanded by 156.41 sq km between 2021 and 2023, bringing the total forest cover to 7,15,342.61 sq km, which now constitutes 21.76% of the country's total land area. However, this reflects only a marginal growth of 0.05 percentage points compared to the 2021 data.
— Between 2003 and 2013, forest cover increased by 0.61 percentage points (from 20.62% to 21.23%). In the following decade, from 2013 to 2023, the increase was even slower, at 0.53 percentage points, reaching the current 21.76%.
— The 2023 report highlights a loss of 3,913 sq km of dense forest over the last two years — an area larger than Goa. This continues a troubling trend: from 2013 to 2023, 17,500 sq km of dense forest vanished, while 7,151 sq km was lost between 2003 and 2013.
— Data from the Global Forest Watch (GFW) reveals that between 2002 and 2024, India saw a reduction of 3,48,000 hectares (around 5.4%) of humid primary forest, contributing to 15% of the country's total tree cover loss during this timeframe.
— From 2019 to 2024, India lost approximately 1,03,000 hectares of humid primary forest, representing 1.6% of such forests and 14% of the nation’s total tree cover loss during these years.
— Annual data further indicates that India lost 16,900 hectares in 2022, 18,300 hectares in 2021, 17,000 hectares in 2020, and 14,500 hectares in 2019 of its humid primary forest
Follow Up Question
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Answer (D)
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Index of Industrial Production (IIP)
For Preliminary Examination: Current events of national and international significance
For Mains Examination: GS III - Economy
Context:
India’s key infrastructure-linked industries in April showed a sharp deceleration, with their output rising just 0.5 per cent from a year ago, the commerce ministry said on Tuesday
Read about:
What is the Index of Industrial Production (IIP)?
What is the significance of IIP?
Key takeaways:
— The Index of Industrial Production (IIP) tracks changes in the output levels of various industrial sectors in India. It does this by selecting a representative set of goods from sectors such as manufacturing, mining, and electricity, assigning specific weights to each, and then measuring their monthly production.
— The index's monthly value is then compared with its value from the same month in the previous year to assess the performance and overall health of the industrial sector.
— In April, the growth rate of the eight core industries—which include coal, crude oil, natural gas, petroleum products, fertilizers, steel, cement, and electricity—dropped to 0.5%, a sharp decline from 4.6% in March, marking the weakest performance in the past eight months.
— While part of the decline may be due to statistical base effects, there are deeper concerns about the actual slowdown in infrastructure output. Six of the eight core industries showed weaker performance in April than in March, with refinery products experiencing the steepest drop, down 4.5%, their lowest output since November 2022.
— The sluggish start to the financial year may partly be attributed to global instability, particularly the "unprecedented economic uncertainty" caused by U.S. tariff-related tensions, as noted by Paras Jasrai, economist and associate director at India Ratings and Research.
— The Ministry of Statistics and Programme Implementation is scheduled to release the IIP data for April on May 28. Based on the weak performance of the eight core sectors—which constitute 40% of the IIP—analysts expect that the overall industrial growth, which had slightly improved to 3.0% in March, may have fallen significantly in April
Index of Industrial Production (IIP)
The Index of Industrial Production (IIP) is a key economic indicator that measures the growth and performance of various industrial sectors in an economy over a specified period. It serves as a crucial barometer for policymakers, economists, and businesses to assess industrial activity, gauge economic health, and make informed decisions.
Concept and Purpose
The IIP tracks the volume of production in industrial sectors such as manufacturing, mining, and electricity generation, comparing current output levels to a fixed base year. By doing so, it provides insights into short-term industrial trends, helping to identify expansions, contractions, or stagnation in production. Governments and central banks use this data to formulate monetary, fiscal, and industrial policies, while businesses rely on it for investment and operational planning.
Components of IIP
The index is typically divided into three broad sectors:
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Manufacturing – The largest component, covering goods production across industries like automobiles, textiles, chemicals, and machinery.
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Mining – Includes extraction activities related to coal, metals, crude oil, and other minerals.
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Electricity – Measures power generation and distribution, reflecting energy demand and industrial consumption.
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Answer (C)
The Eight Core Industries in India, which constitute 37.90% of the Index of Industrial Production (IIP), are:
Textiles (Option 5) are not part of the Eight Core Industries. Verification of Options:
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What is the need of the hour in autism care?
For Preliminary Examination: Current events of antional and international significance
For Mains Examination: GS III - General Science
Context:
Last month, U.S. Health Secretary Robert F. Kennedy Jr. announced a massive testing and research effort to identify the “environmental toxins” that he said were behind the growing “epidemic” of autism in the U.S. He said the Department of Health and Human Services would launch a series of new studies focusing on environmental substances.
Read about:
Autism Spectrum Disorder (ASD)
Key takeaways:
- According to the World Health Organization (WHO), Autism Spectrum Disorders (ASD) encompass a wide range of conditions marked by challenges in social interaction and communication. Individuals with ASD may also exhibit unusual behavioral patterns and activity preferences. Although signs of autism often appear in early childhood, many cases are diagnosed much later.
- Research suggests that multiple factors, likely both genetic and environmental, contribute to autism. The belief that the MMR (measles, mumps, rubella) vaccine causes autism originated from a study that has since been thoroughly discredited, and further studies confirm that neither the MMR nor other childhood vaccines are linked to autism.
- When it comes to prevention, the approach is complex. Dr. Sheffali Gulati, a pediatric neurologist at AIIMS, New Delhi, explains that since autism results from a combination of unknown variables rather than a single gene or environmental trigger, primary prevention (avoiding the onset of the condition) is not currently feasible.
- Instead, the focus should be on secondary and tertiary prevention, which involve early detection, timely diagnosis, and intervention to manage symptoms and improve outcomes.
- The incidence of ASD is on the rise, says Dr. Ennapadam S. Krishnamoorthy, neuropsychiatrist and founder of the Buddhi Clinic in Chennai. This increase can be attributed to broader diagnostic criteria and greater awareness. Previously, only severe cases were typically diagnosed, but now milder forms of autism are also being recognized under the ASD umbrella.
- In addition to genetic factors, modern environmental influences may also be contributing to the increasing number of cases, potentially acting as triggers for the condition
Follow Up Question
1“Autism Spectrum Disorders (ASD) are rising in prevalence due to a combination of genetic, environmental, and diagnostic factors.”
Discuss the challenges in early diagnosis and intervention of ASD in India. Suggest measures to improve awareness, early detection, and support systems for individuals with autism. (250
Net FDI slumps 96% in FY25 to $353 mn, gross FDI robust
For Preliminary Examination: Current events of national and international Significance
For Mains Examination: GS III - Economy
Context:
Net foreign direct investment (FDI) into India plunged by more than 96% to just $353 million in 2024-25 compared with the previous year, latest data from Reserve Bank of India shows.
Read about:
Foreign direct investment (FDI)
FII (Foreign Institutional Investor)
Key takeaways:
- India's net foreign direct investment (FDI) dropped sharply by over 96%, reaching only $353 million in 2024–25, according to the most recent data released by the Reserve Bank of India (RBI).
- Net FDI is calculated by subtracting the outflow of funds—such as repatriated earnings by foreign companies operating in India and overseas investments made by Indian firms—from the total incoming foreign investments (gross FDI).
- Although gross FDI inflows into India remained relatively robust, the net figure declined significantly due to a surge in profit repatriation by multinational companies and an increase in outbound investments by Indian enterprises.
- The information, published in the May issue of the RBI’s monthly bulletin, indicates that both these factors—profit repatriation and Indian outward investment—have been consistently contributing to the decline in net FDI since the COVID-19 pandemic.
- To illustrate this trend: net FDI stood at $44 billion in 2020–21, fell to $38.6 billion in 2021–22, further declined to $28 billion in 2022–23, then $10.1 billion in 2023–24, and has now plummeted to just $353 million in 2024–25
Foreign Direct Investment (FDI)
- Foreign Direct Investment (FDI) refers to the investment made by a person or entity based in one country into business interests located in another country. Unlike portfolio investments, which involve merely purchasing equities or financial assets, FDI implies a long-term interest and significant degree of control or influence in the management of the enterprise. Typically, FDI involves the acquisition of assets, setting up of production facilities, or establishing joint ventures and partnerships.
- In the Indian context, FDI plays a critical role in supplementing domestic capital, enhancing technological capabilities, creating employment opportunities, and integrating the economy with global markets.
- India has historically attracted FDI in sectors such as services, telecommunications, automobiles, pharmaceuticals, and IT due to its large market, young workforce, and ongoing economic reforms.
- FDI can be classified as gross FDI and net FDI. Gross FDI represents the total inflow of foreign investment into the country. However, not all of this remains within the economy. Some of the money is repatriated—meaning foreign companies send profits back to their home countries—or is offset by outward investments made by Indian companies abroad.
- Therefore, net FDI is calculated by subtracting these outflows from the gross inflows. It gives a clearer picture of the actual volume of foreign capital retained in the country’s economy.
- A rising net FDI is generally seen as a positive indicator of investor confidence and economic stability. However, as seen in recent years, especially post-pandemic, India’s net FDI has been declining due to increased repatriation of profits by foreign firms and greater outbound investment by Indian corporates.
- While gross inflows remain strong, the narrowing of net FDI raises questions about the sustainability of foreign investment and the long-term retention of foreign capital in the domestic economy
Follow Up Question
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Answer (B)
Why the other options are incorrect:
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Environment Impact Assessment (EIA)
For Preliminary Examination: General issues on Environmental Ecology, Biodiversity and Climate Change – that do not require subject specialisation
For Mains Examination: General Studies-III: Conservation, environmental pollution and degradation, environmental impact assessment
Context:
The Supreme Court on Friday (May 16) struck down and held illegal a 2017 notification of the Ministry of Environment, Forest and Climate Change (MoEF&CC), which introduced a regime of granting ex-post facto clearances to projects – after work had already begun. The judgment followed a clutch of petitions challenging the notification
Read about:
What is the objective of EIA?
What is the Environment Impact Assessment (EIA) notification of 2006?
Key takeaways:
- The Supreme Court recently overturned a 2021 office memorandum that had introduced a standard operating procedure to streamline the process for granting post-facto environmental clearances. The Court also prohibited the central government from issuing similar directives that seek to regularize violations of the 2006 Environment Impact Assessment (EIA) notification.
- Earlier, in March 2017, the Ministry of Environment, Forest and Climate Change (MoEF&CC) had released a notification offering a one-time six-month window for industries to seek environmental clearance, even if they had already started operations, expanded production beyond approved limits, or altered their product line without prior approval.
- Under the EIA notification of 2006, obtaining environmental clearance beforehand is mandatory. This process evaluates the potential effects of a project on the environment, public health, natural resources, and social infrastructure like schools and hospitals.
- A bench led by Justices Abhay S. Oka and Ujjal Bhuyan criticized the Centre for using office memoranda to shield violators who had damaged the environment. The Court questioned the rationale behind pursuing development at the cost of environmental protection.
- The judgment stressed that the government had overstepped in protecting those responsible for ecological harm. The Court emphasized its constitutional duty under Article 21 — the right to life and personal liberty — which includes the right to a clean and safe environment, and declared it would not allow such efforts to go unchallenged.
- Historically, the Supreme Court has interpreted Article 21 to encompass the right to live in a pollution-free and ecologically balanced environment. The 2017 notification and the 2021 memorandum were deemed to violate both Article 21 and Article 14, the right to equality before the law. These measures attempted to benefit project proponents who had knowingly flouted environmental regulations.
- To reinforce its stance, the Court referenced earlier rulings such as Common Cause v. Union of India (2017) and Alembic Pharmaceuticals v. Rohit Prajapati (2020), which had already established that post-facto environmental clearances contradict fundamental environmental principles.
- The Court took strong exception to the 2021 memorandum, asserting that it effectively legalized the commencement of projects without mandatory prior clearance — a direct violation of prior rulings.
- In the Alembic case, Justices D.Y. Chandrachud and Ajay Rastogi had already clarified that granting clearance after a project has begun is against the foundational principles of environmental law and contradicts the objectives of the EIA notification.
- The situation becomes even more concerning in light of the rapid pace of industrialisation and urban expansion, which have significantly contributed to forest degradation. As per data from the Union Environment Ministry, around 1,73,300 hectares of forest land were lost to development projects between 2014-15 and 2023-24.
- States rich in minerals like Chhattisgarh, Jharkhand, and Odisha have witnessed massive deforestation due to mining activities, with over one lakh hectares of forest area cleared for nearly 500 mining projects by 2018.
- In the northeastern hill states, factors like shifting cultivation (Jhum), agricultural expansion, and heavy logging have led to a significant reduction in green cover. Between 2021 and 2023, states such as Arunachal Pradesh, Manipur, and Nagaland saw some of the highest rates of forest loss.
- Additionally, the rise in forest fires—often driven by human activities and extended dry periods—has worsened forest degradation. Climate change exacerbates these risks by creating hotter and drier conditions.
- From November 2023 to June 2024 alone, the Forest Survey of India documented 2,03,544 incidents of forest fires. These worrying statistics highlight the urgent need for a robust legal and regulatory framework to safeguard India's forest ecosystems
Follow Up Question
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Answer (b)
The Environment (Protection) Act, 1986 was enacted under Article 253 of the Constitution of India in response to the Bhopal Gas Tragedy and to implement decisions made at the United Nations Conference on the Human Environment (Stockholm, 1972).
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For Preliminary Examination: Current events of national and international significance regarding general science
For Mains Examination: GS III - Science and technology
Context:
IN WHAT could set the stage for an unprecedented opening up of the civil nuclear sector, the government is likely to move two crucial amendments in the laws governing the country’s atomic energy sector in the upcoming monsoon session of Parliament, according to sources aware of the developments.
Read about:
What is Nuclear Energy?
What are the types of nuclear reactors?
Key takeaways:
- India has long faced regulatory hurdles in acquiring the necessary ‘10CFR810’ authorization under the U.S. Atomic Energy Act of 1954, which governs nuclear exports. This regulation, while allowing American companies like Holtec to export nuclear equipment under stringent safeguards, strictly prohibits them from carrying out manufacturing or nuclear design work within India.
- From New Delhi’s perspective, this restriction posed a significant obstacle, as India was keen on jointly producing Small Modular Reactors (SMRs) and manufacturing nuclear components domestically to support its own energy infrastructure.
- In a major policy shift, the Union Budget for 2025–26 signaled a strong commitment to expanding India’s nuclear energy program as a cornerstone of its long-term clean energy strategy.
- The government has announced a bold target of reaching 100 GW of nuclear power capacity by 2047, aligning with the broader vision of Viksit Bharat (Developed India). This move aims to ensure energy security while cutting reliance on fossil fuels. To make this vision a reality, the government is focusing on indigenous nuclear technology, infrastructure upgrades, and increased collaboration with the private sector.
- As part of this renewed push, a new initiative titled the Nuclear Energy Mission for Viksit Bharat has been launched. This mission seeks to strengthen domestic capabilities in the nuclear sector, foster private participation, and speed up the adoption of advanced technologies like SMRs.
- To implement this mission, the government plans to amend key legislations, including the Atomic Energy Act and the Civil Liability for Nuclear Damage Act. These changes are intended to attract private investment in nuclear energy by removing legal uncertainties.
- One proposed amendment aims to limit the liability of equipment suppliers in the event of a nuclear accident, potentially capping it at the original contract value and introducing a timeframe for claims.
- Another proposed reform would allow private firms, including foreign players with minority stakes, to operate nuclear power plants in India—an area traditionally reserved for state-owned entities like NPCIL and NTPC.
- India’s atomic energy sector has long remained closed to private and foreign investment. These twin amendments are being seen as a significant reform effort, potentially revitalizing the commercial potential of the Indo-U.S. civil nuclear agreement signed nearly two decades ago.
- New Delhi also sees these developments as an opportunity to integrate nuclear cooperation into a broader trade and investment partnership with the United States, which could eventually lead to a comprehensive trade deal currently under discussion.
- The proposed legislative changes aim to resolve lingering legal concerns that have deterred foreign companies from entering India’s nuclear sector.
- The Civil Liability for Nuclear Damage Act, 2010, which outlines compensation mechanisms for nuclear accidents and assigns liability, has been viewed by companies like GE-Hitachi, Westinghouse, and Areva (now Framatome) as a major barrier.
- Meanwhile, the government is also initiating amendments to the Atomic Energy Act, 1962, to open up nuclear power generation to private companies—and eventually foreign operators. As of now, only government-owned corporations are allowed to manage such projects.
- The Union Budget reaffirmed the government’s commitment to getting both pieces of legislation passed, though the path to enacting them—particularly one of the two—is expected to be politically and procedurally complex.
- These policy shifts come shortly after a significant breakthrough: On March 26, the U.S. Department of Energy (DoE) granted a key regulatory clearance to Holtec International, based in Camden, New Jersey. This unprecedented approval allows the company to move forward with its business plans under the Indo-U.S. civil nuclear framework.
- Specifically, the authorization (SA IN2023-001) under 10CFR810 permits Holtec to conditionally transfer its unclassified Small Modular Reactor technology to its Indian affiliate, Holtec Asia, as well as to Tata Consulting Engineers Ltd and Larsen & Toubro Ltd, marking a crucial step forward in bilateral nuclear cooperation
Follow Up Question
1.To meet its rapidly growing energy demand, some opine that India should pursue research and development on thorium as the future fuel of nuclear energy. In this on text, what advantage, does thorium hold over uranium? (UPSC 2012)
- Thorium is far more abundant in nature than uranium.
- On the basis of per unit mass of mined mineral, thorium can generate more energy compared to natural uranium.
- Thorium produces less harmful waste compared to uranium.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
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Answer (d)
All three statements about thorium are correct and reflect the advantages it holds over uranium in the context of nuclear energy: 1. Thorium is far more abundant in nature than uranium – Correct 2. On the basis of per unit mass of mined mineral, thorium can generate more energy compared to natural uranium – Correct 3. Thorium produces less harmful waste compared to uranium – Correct |
| Subject | Topic | Description |
| Polity | Legislature | Legislature |
| Polity | Fundamental rights | Fundamental rights |
| Modern Indian History | Governor Generals | Governor Generals of India |
| Art & Culture | Architecture | Mauryan art and Architecture |
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