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DAILY CURRENT AFFAIRS, 14 JULY 2026

RETAIL INFLATION

 

1. Context

India’s retail inflation has crossed the Reserve Bank of India’s 4% target for the first time since January 2025, touching 4.4% in June, an 18-month-high. It stood at 3.93% in May.

2. What is Inflation?

  • It is the rise in prices of goods and services within a particular economy wherein consumers' purchasing power decreases, and the value of the cash holdings erodes.
  • In India, the Ministry of Statistics and Programme Implementation (MoSPI) measures inflation.
  • Some causes that lead to inflation are demand increases, reduction in supply, demand-supply gap, excess circulation of money, increase in input costs, devaluation of the currency, and rise in wages, among others.

3. Retail Inflation

Consumers often directly buy from retailers. So, the inflation experienced at retail reflects the actual price rise in the country. It also shows the cost of living better. In India, the index that reflects the inflation rate at the retail level is known as Consumer Price Index (CPI). Unlike WPI, CPI includes both goods and services. CPI is used to calculate the Dearness Allowance (DA) for government employees.

4. How Inflation is measured?

  • In India, inflation is primarily measured by two main indices- WPI (Wholesale Price Index) and CPI (Consumer Price Index), Which measures Wholesale and retail-level price changes, respectively.
  • The CPI calculates the difference in the price of commodities and services such as food, medical care, education, electronics, etc, which Indian consumers buy for use.
  • On the other hand, the goods or services sold by businesses to smaller businesses for selling further are captured by the WPI.
  • Both WPI (Wholesale Price Index) and CPI (Consumer Price Index) are used to measure inflation in India. 

5. What is the Inflation Target?

  • Under Section 45ZA, in consultation with the RBI Act, the Central Government determines the inflation target in terms of the Consumer Price Index (CPI), once in five years and notifies it in the Official Gazette.
  • Accordingly, on August 5, 2016, the Central Government notified in the Official Gazette 4 percent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016, to March 31, 2021, with the upper tolerance limit of 6 percent and the lower tolerance limit of 2 percent.
  • On March 31, 2021, the Central Government retained the inflation target and the tolerance band for the next 5-year period-April 1, 2021 to March 31, 2026.
  • Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target.

6. Monetary Policy Committee (MPC)

  • The MPC is a statutory and institutionalized framework under the RBI Act, of 1934, for maintaining price stability, keeping in mind the objective of growth. It was created in 2016.
  • It was created to bring transparency and accountability in deciding monetary policy.
  • MPC determines the policy interest rate required to achieve the inflation target.
  • The committee comprises six members and Governor RBI acts as an ex-officio chairman. Three members are from RBI and three are selected by the government. The inflation target is to be set once every five years. It is set by the Government of India, in consultation with the Reserve Bank of India.
  • The current inflation target is pegged at 4% with -2/+2 tolerance till March 31, 2021.

7. What Caused the drop in Inflation?

  • Retail Inflation or price gains based on the Consumer Price Index, slowed to 6.77 % last month, from September's 7.41%, aided by an appreciable deceleration in food price inflation.
  • The year-on-year inflation based on the Consumer Food Price Index eased by almost 160 basis points in October, to 7.01%, from the preceding month's 8.60%, helped by a 'decline in prices of vegetables, fruits, pulses and oils, and fats', the Government said.
  • With the food and beverages sub-index representing almost 46% of the CPI's weight, the slowdown in food price gains understandably steered overall inflation lower even as price gains in three other essential categories, namely clothing, and footwear, housing, and health remained either little changed from September or quickened.
  • Inflation at the Wholesale Prices Level also continued to decelerate, with the headline reading easing into single digits for the first time in 19 months. A favorable base effect along with a distinct cooling in international prices of commodities including crude oil and steel amid gathering uncertainty in advanced economies was largely instrumental in tempering wholesale price gains.

8. Recent Measures by the Government

To soften the prices of edible oils and pulses, tariffs on imported items have been rationalized from time to time. The stock limits on edible oils are also maintained, to avoid hoarding.
The Government has taken trade-related measures on wheat and rice to keep domestic supplies steady and curb the rise in prices.
The impact of these measures is expected to be felt more significantly in the coming months.

For Prelims & Mains

 

For Prelims: Inflation, MPC, CPI, WPI, food Inflation, RBI, Headline inflation, Core inflation

For Mains: 
 1. Explain the concept of inflation and its impact on an economy. Discuss the various causes of inflation and the measures that can be taken to control it, with specific reference to India. (250 Words)
2. What are the challenges and opportunities associated with managing inflation in India? Evaluate the effectiveness of recent policy measures in addressing inflationary pressures and maintaining price stability. Suggest strategies for sustainable economic growth while managing inflation risks. (250 Words)
 
 
Previous Year Questions
 
1. Consider the following statements:  (UPSC 2021)
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in the public interest.
3. The Governor of the RBI draws his natural power from the RBI Act.
Which of the above statements is/are correct? 
A. 1 and 2 only    B.  2 and 3 only     C. 1 and 3 only     D. 1, 2 and 3
 
 
2. Concerning the Indian economy, consider the following: (UPSC 2015)
  1. Bank rate
  2. Open Market Operations
  3. Public debt
  4. Public revenue

Which of the above is/are component(s) of Monetary Policy?

(a) 1 only   (b) 2, 3 and 4    (c) 1 and 2     (d) 1, 3 and 4

 

3. An increase in Bank Rate generally indicates: (UPSC 2013)

(a) Market rate of interest is likely to fall.
(b) Central bank is no longer making loans to commercial banks.
(c) Central bank is following an easy money policy.
(d) Central bank is following a tight money policy.
 

4. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (UPSC 2017) 

1. It decides the RBI's benchmark interest rates.
2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

A. 1 only      B.  1 and 2 only      C. 3 only      D. 2 and 3 only

 
5. Read the following passage and answer the question that follows. Your answers to these items should be based on the passage only.
Policymakers and media have placed the blame for skyrocketing food prices on a variety of factors, including high fuel prices, bad weather in key food producing countries, and the diversion of land to non-food production. Increased emphasis, however, has been placed on a surge in demand for food from the most populous emerging economics. It seems highly probable that mass consumption in these countries could be well poised to create a food crisis.
With reference to the above passage, the following assumptions have been made: (UPSC 2021)
1. Oil producing countries are one of the reasons for high food prices.
2. If there is a food crisis in the world in the near future, it will be in the emerging economies. Which of the above assumptions is/are valid?
A. 1 only        B. 2 only           C. Both 1 and 2         D.  Neither 1 nor 2
 
 
6. India has experienced persistent and high food inflation in the recent past. What could be the reasons? (UPSC 2011)
1. Due to a gradual switchover to the cultivation of commercial crops, the area under the cultivation of food grains has steadily decreased in the last five years by about 30.
2. As a consequence of increasing incomes, the consumption patterns of the people have undergone a significant change.
3. The food supply chain has structural constraints.
Which of the statements given above are correct? 
A. 1 and 2 only          B. 2 and 3 only        C. 1 and 3 only          D. 1, 2 and 3
 
 
7. With reference to inflation in India, which of the following statements is correct? (UPSC 2015) 
A. Controlling the inflation in India is the responsibility of the Government of India only
B. The Reserve Bank of India has no role in controlling the inflation
C. Decreased money circulation helps in controlling the inflation
D. Increased money circulation helps in controlling the inflation
 
 
8. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
A. 1 and 3 only     B.  2 only        C. 2 and 3 only        D. 1, 2 and 3
 
Answers: 1-C, 2-C, 3-D, 4-A, 5-D, 6-B, 6-C, 7-B
 
 
Source: The Hindu
 
 
 

TRADE DEFICIT

 
 
1. Context
 
India’s trade deficit grew over fourfold to $15.3 billion in June 2026 primarily due to high growth in merchandise imports, which were skewed by a spurt in the value of imports of crude oil, electronic and electrical goods, and gold, according to official data.
 
2. What is the Trade balance?
 
  • Trade balance is a measure of how much a country earns from selling goods to other countries compared to how much it spends on buying goods from abroad. It tells us whether a nation is bringing in more money through exports or sending out more money due to imports.
  • If a country exports more than it imports, it has a trade surplus, meaning it earns extra foreign currency and its economy may appear stronger in terms of external trade.
  • On the other hand, if imports are higher than exports, the country experiences a trade deficit, which means it is spending more on foreign goods than it is earning through exports.
  • The trade balance is an important part of a country’s Balance of Payments because it reflects the health of international trade, affects the value of its currency, and influences economic policies.
  • In simple terms, it shows whether a country is “selling more than it buys” or “buying more than it sells” in the global market
  • The trade balance refers to the gap between a country’s exports and imports. When a nation buys more goods from abroad than it sells, the situation is known as a trade deficit.
  • Conversely, when export earnings are higher than import spending, it results in a trade surplus. In October 2025, India’s trade deficit rose sharply to $21.8 billion, compared to $9.05 billion in the same month the previous year.
  • A trade deficit can widen for several reasons — exports may decline, imports may rise, or imports might simply grow at a faster pace than exports.
  • In October 2025, India saw both higher imports and a slight dip in exports. This shift was driven largely by the performance of India’s merchandise trade rather than its services sector

 

3. India's Exports

 

  • India’s overall exports in October 2025 dipped by 0.7%, settling at $72.9 billion. This decline was mainly driven by a significant fall in merchandise exports, which dropped by 11.8% to $34.4 billion. In contrast, the services sector performed strongly, registering an 11.9% increase during the same month.
  • However, this weak merchandise performance in October did not substantially alter the broader trend.
  • When viewed across the April–October 2025 period, India’s total exports still posted a 4.8% rise. During these seven months, merchandise exports inched up by 0.6%, while services exports expanded by 9.75%.
  •  India achieved its highest-ever quarterly export levels in both the first and second quarters. This led to the strongest export showing in the first half of any financial year, driven largely by robust growth in services exports.
  • It is also worth noting that the major challenges India currently faces—particularly the 50% tariffs imposed by the United States—impact only merchandise exports and not the services sector

 

 4. Sectors that are affected by this trend

 
  • In October 2025, many labour-intensive industries experienced sharp declines in their export figures.
  • Shipments of leather and related goods dropped by 15.7%, gems and jewellery fell by 29.5%, exports of organic and inorganic chemicals were down by 21%, engineering goods declined by 16.7%, cotton yarn by 13.3%, man-made yarn by 11.8%, and jute by 27.8%, among others.
  • Since the United States is a major buyer of most of these products, the recently imposed tariffs have dealt a heavy blow to these sectors.
  • Although exporters are attempting to move into new markets and broaden their global reach, reworking supply chains is a slow process, meaning these challenges are likely to continue for some more months
 
5. What are the Disadvantages of Trade Deficits?
 
 
  • A trade deficit can create several challenges for a country, affecting both its economy and long-term growth prospects. When a nation imports more than it exports, money flows out of the economy, and this imbalance can have a range of consequences.
  • One disadvantage is the increased reliance on foreign capital. To finance a persistent trade deficit, a country may have to borrow from abroad or attract foreign investment.
  • Over time, this can lead to rising external debt and greater vulnerability to global financial fluctuations. If investors lose confidence, the country may face sudden capital outflows or currency instability.
  • A large trade deficit can also put downward pressure on the domestic currency. As more foreign currency is demanded to pay for imports, the value of the national currency may depreciate.
  • A weaker currency makes imports costlier, contributing to inflation, which in turn can reduce purchasing power and increase the cost of living.
  • Another drawback is the potential harm to domestic industries. When imports surge, local producers may struggle to compete with cheaper or higher-quality foreign goods.
  • This can lead to reduced production, job losses, and even the closure of certain industries. Over time, the country might become less self-reliant, depending heavily on imported goods and services.
  • Moreover, a sustained trade deficit can signal deeper structural problems—such as low productivity, limited export diversification, or a lack of competitiveness in global markets. These issues can slow economic growth and hinder future development if not addressed through policy measures
 
6. What Measures are Needed for a Balanced Trade? 
 
  • Achieving a balanced trade—where exports and imports remain reasonably aligned—requires a mix of policy interventions, structural reforms, and long-term economic strategies. Here is an explanatory, non–bullet-point answer:
  • A balanced trade situation can be fostered by strengthening a country’s export capacity while ensuring that imports remain sustainable. One of the most important steps is improving the competitiveness of domestic industries.
  • This involves investing in better infrastructure, reducing logistics costs, enhancing technology adoption, and supporting innovation so that Indian products can match or outperform global competitors. When goods become competitive in quality and price, export growth naturally strengthens.
  • At the same time, diversification of export markets and products is crucial. Relying too heavily on a few countries or sectors makes trade vulnerable to external shocks such as tariffs, geopolitical tensions, or global demand fluctuations.
  • By expanding into new regions and promoting high-value sectors—like pharmaceuticals, electronics, engineering goods, and services—India can reduce risk and stabilize export earnings.
  • Another measure is encouraging domestic manufacturing to reduce unnecessary imports. Policies such as “Make in India,” production-linked incentives, and support for MSMEs help develop local supply chains that can replace imported goods. This not only saves foreign exchange but also boosts employment and industrial growth.
  • Trade agreements also play a major role. Negotiating fair and strategic free trade agreements can open new markets for Indian exporters while ensuring that local industries are protected from excessive import competition.
  • Clear, stable trade policies help build confidence among exporters and attract investment into export-oriented sectors.
  • Improving ease of doing business is equally important. Simplified customs procedures, faster clearances, efficient ports, and digital trade facilitation make exporting smoother and cheaper. Reducing compliance burdens encourages more firms—especially small and medium enterprises—to participate in global trade.
  • Finally, macroeconomic stability supports balanced trade. A stable currency, controlled inflation, and prudent fiscal policies make exports more predictable and imports manageable. When the domestic economy is stable, it creates an environment where trade can grow without creating imbalances
 
7. Way Forward
 

This issue can be examined from different angles. On the export front, India’s merchandise shipments are likely to remain under strain for as long as the 50% U.S. tariffs continue. Even so, the trade friction between India and the United States has begun to ease somewhat. Both countries completed the sixth round of negotiations on a Bilateral Trade Agreement (BTA) in October, signalling renewed progress.

Officials from both sides have once again started expressing optimism about finalising at least the initial phase of the BTA. Such discussions had paused right after the steep tariffs were imposed, so their revival is a positive development. If the question of tariffs is resolved in the early part of the agreement, India’s merchandise exports could regain momentum.

 

For Prelims: Trade Deficit, Balance of Payments (BoP), Exports, Imports
 
For Mains: GS III - Economy
 
 
Previous Year Questions
 
1. Consider the following countries:
1. Australia
2. Canada
3. China
4. India
5. Japan
6. USA
Which of the above are among the free-trade partners' of ASEAN? (UPSC 2018)
A. 1, 2, 4 and 5          B.  3, 4, 5 and 6      C.  1, 3, 4 and 5       D.  2, 3, 4 and 6
 

2. Increase in absolute and per capita real GNP do not connote a higher level of economic development, if (UPSC 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.

 

3. The SEZ Act, 2005 which came into effect in February 2006 has certain objectives. In this context, consider the following: (2010)

  1. Development of infrastructure facilities.
  2. Promotion of investment from foreign sources.
  3. Promotion of exports of services only.

Which of the above are the objectives of this Act?

(a) 1 and 2 only     (b) 3 only         (c) 2 and 3 only           (d) 1, 2 and 3

4. A “closed economy” is an economy in which (UPSC 2011)

(a) the money supply is fully controlled
(b) deficit financing takes place
(c) only exports take place
(d) neither exports nor imports take place

5. With reference to the “G20 Common Framework”, consider the following statements: (UPSC 2022)
1. It is an initiative endorsed by the G20 together with the Paris Club.
2. It is an initiative to support Low Income Countries with unsustainable debt.
Which of the statements given above is/are correct?
(a) 1 only         (b) 2 only            (c) Both 1 and 2          (d) Neither 1 nor 2
 
Answers: 1-C, 2-C, 3-A, 4-D, 5- C
Source: The Hindu
 
 
 

ELECTION COMMISSION OF INDIA (ECI)

 
 
1. Context
 
The Election Commission of India’s (ECI) online voter registration portal, ECINET, now requires applicants to provide details of their parents’ status in the last Special Intensive Revision (SIR) of electoral rolls — down to the polling booth number and the individual elector’s serial number on that roll.
 
2. Election Commission of India (ECI)
 
  • The Election Commission of India (ECI) is a permanent and independent constitutional body tasked with ensuring the conduct of free and fair elections across the Union and States of India.
  • The ECI has the authority to supervise, direct, and manage elections to the Parliament, state legislatures, and the offices of the President and Vice President of India. However, since the ECI does not manage elections for state-level urban bodies such as municipalities and panchayats, a separate State Election Commission exists for this purpose.
  • Notably, based on Dr. B. R. Ambedkar's guidance at the Constituent Assembly, a committee tasked with addressing Fundamental Rights suggested that the independence of elections and the protection from executive interference in legislative elections should be considered a fundamental right and included in the chapter on Fundamental Rights.
  • While the idea was generally accepted, some members proposed that it be placed in a different section of the Constitution. Consequently, the Drafting Committee, following the House's decision, moved this provision from the Fundamental Rights chapter to another part of the Constitution
 
3. Constitution and Election Commission of India
 

The Constitution includes a series of articles (Articles 324–329) that grant powers to the Election Commission and outline its possible roles and responsibilities.

  • Article 324: Grants the authority for overseeing, directing, and controlling the preparation of electoral rolls and the conduct of all elections to Parliament, state legislatures, and the offices of the President and Vice-President.

  • Article 325: Prohibits exclusion from electoral rolls based on religion, race, caste, sex, or any of these factors.

  • Article 326: Establishes adult suffrage as the foundation for elections to the House of the People and State Legislative Assemblies.

  • Article 327: Allows Parliament to pass laws, in accordance with the Constitution, regarding all matters related to elections to Parliament and State Legislative Assemblies.

  • Article 328: Empowers state legislatures to enact laws concerning all matters related to elections to the state's legislative bodies.

  • Article 329: Prevents courts from interfering in electoral matters

4. ECI Responsibilities and Functions
 

The responsibilities and functions of the Election Commission of India (ECI) can be categorized into advisory, quasi-judicial, and administrative roles.

  • Advisory: The Constitution grants the ECI the authority to advise on the post-election disqualification of sitting members of Parliament and State Legislatures. The ECI is also consulted in cases where individuals are found guilty of corrupt practices during elections, as brought before the Supreme Court and High Courts, to decide if they should be disqualified from contesting future elections and for how long. In such matters, the President or, where applicable, the Governor, is required to follow the ECI's advice.
  • Quasi-Judicial: The ECI has the power to disqualify a candidate who fails to submit their election expense accounts within the legally required timeframe and format. It also has the authority to remove or reduce other legal disqualifications. Additionally, the ECI resolves disputes related to the recognition of political parties and the allocation of election symbols. The commission sets a model code of conduct and ensures compliance by all candidates and political parties during elections.
  • Administrative: The ECI's administrative duties include delimiting electoral constituencies and managing the registration of eligible voters, as well as regularly updating electoral rolls. The commission is responsible for announcing election schedules and dates, reviewing nomination documents, recognizing political parties, and assigning them election symbols. The ECI can also nullify voting in cases of violence, booth capturing, tampering, or other irregularities. It oversees the financial expenditure of political parties on candidates' campaigns impartially.

The ECI also designates specific roles to register political parties for elections and grants them the status of national or state parties based on their performance in the polls. These roles include the person in charge of elections, the District Election Officer, and the Election Registration and Returning Officer

 

5. Composition of Election Commission of India

  • Since its inception in 1950, the Chief Electoral Commissioner (CEC) was the sole member of the Election Commission of India (ECI). However, after the voting age was lowered from 21 to 18 in 1989, a large influx of new voters was added. To manage this increased workload, two additional commissioners were appointed, expanding the ECI to include three commissioners.
  • In January 1990, some changes were made to the structure of the ECI, but it was soon reverted to its original form. Following discussions and debates in the political sphere, the President ultimately reconstituted the commission in 1993, adding two more commissioners, establishing the current structure of the ECI.
  • The Chief Election Commissioner and the other election commissioners are appointed by the President, who also determines their terms of office and service conditions. All commissioners, including the CEC, receive the same salary, benefits, and powers as judges of the Supreme Court.
  • If there is a disagreement among the three members, decisions are made by a majority vote. Commissioners serve a term of up to six years or until they reach the age of 65, whichever comes first. They hold a status equivalent to that of Supreme Court justices in India.
  • The Chief Election Commissioner can only be removed from office through the same process used to remove a Supreme Court judge. This involves the President dismissing the CEC based on a resolution supported by a special majority in both Houses of Parliament, on grounds of proven misconduct or incapacity.
  • In conclusion, as outlined by the Constitution, the ECI is responsible for supervising, directing, and conducting elections for the offices of President, Vice President, state legislatures, and Parliament.
  • For elections to state-level urban bodies like municipalities and panchayats, a separate State Election Commission exists. The ECI plays a crucial role in upholding the democratic process by ensuring free and fair elections for key political positions in the country
 
For Prelims: Election Commission of India, Chief Election Commissioner, Election Commission (Conditions of Service of Election Commissioners and Transaction of Business) Act, 1991, State Election Commission, Article 324, Electronic Voting Machines (EVMs) and Voter Verified Paper Audit Trails (VVPATs).
For Mains: 1. Discuss the powers and functions of the Election Commission of India. How does the Election Commission ensure the conduct of free and fair elections in the Country? (250 words).
 

Previous year Question

1. Consider the following statements: (UPSC 2017)
1. The Election Commission of India is a five-member body.
2. Union Ministry of Home Affairs decides the election schedule for the conduct of both general elections and bye-elections.
3. Election Commission resolves the disputes relating to splits/mergers of recognized political parties.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 only
C. 2 and 3 only
D. 3 only
Answer: D
 
2. Consider the following statements : (UPSC 2021)
1. In India, there is no law restricting the candidates from contesting in one Lok Sabha election from three constituencies.
2. In the 1991 Lok Sabha Election, Shri Devi Lal contested from three Lok Sabha constituencies.
3. As per the- existing rules, if a candidate contests in one Lok Sabha election from many constituencies, his/her party should bear the cost of bye-elections to the constituencies vacated by him/her in the event of him/her winning in all the constituencies.
Which of the statements given above is/are correct?
A. 1 only
B. 2 only
C. 1 and 3
D. 2 and 3
Answer: B
Source: Indianexpress
 
 

REUSABLE LAUNCHING VEHICLES (RLV)

 
 
1. Context
 
China on Friday successfully landed a reusable rocket for the first time — a milestone for the country’s space programme that will challenge American companies’ dominance in the technology.
 
2.What is a reusable launch vehicle (RLV)?
 

A reusable launch vehicle (RLV) is a type of spacecraft designed to be launched, recovered, and then launched again multiple times. The primary advantage of RLVs over traditional expendable launch vehicles (ELVs) is their potential to significantly reduce the cost of access to space by reusing major components of the vehicle.

Here are key features and concepts associated with RLVs:

  • The main distinguishing feature of RLVs is their ability to be used for multiple missions, reducing the cost per launch by spreading the vehicle's development and production costs over many flights
  •  RLVs can come in various designs, including single-stage-to-orbit (SSTO) and multi-stage configurations. Multi-stage RLVs can have stages that are all reusable or a combination of reusable and expendable stages
  • Effective RLVs are designed for rapid turnaround, meaning they can be refurbished and prepared for another flight in a short amount of time. This involves quick maintenance, inspection, and refueling processes
  • RLVs employ various methods for recovery and landing. These include vertical landing (such as SpaceX's Falcon 9), horizontal landing on runways (like the Space Shuttle), and sometimes splashdown in the ocean
  • Developing RLVs involves addressing numerous technical challenges, such as thermal protection systems for re-entry, lightweight but durable structures, and efficient propulsion systems that can be reused multiple times without significant degradation
  • The ability to reuse launch vehicles has the potential to lower the cost of access to space, making space exploration and satellite deployment more affordable.
  • This can lead to increased commercial activity in space, including satellite launches, space tourism, and interplanetary missions
3. What is the RLV Landing EXperiment (LEX)?
 
The RLV Landing Experiment (RLV-LEX) is a program initiated by the Indian Space Research Organisation (ISRO) to demonstrate and validate the technologies required for a reusable launch vehicle. The goal of the RLV-LEX is to develop and test a winged reusable launch vehicle that can perform autonomous landing operations, similar to an aircraft.
 
Here are key aspects of the RLV-LEX program:
  • The primary objective is to demonstrate key technologies needed for a reusable launch vehicle, including autonomous landing, aerodynamic control, and thermal protection.
  • By developing reusable technologies, ISRO aims to reduce the cost of access to space, making it more affordable for various missions
  • The program provides ISRO with valuable experience in designing, testing, and operating reusable vehicles, which can be applied to future missions
  • The RLV-LEX vehicle has a winged configuration, allowing it to glide and land horizontally on a runway, much like an airplane
  • The vehicle is designed to perform autonomous landing maneuvers, using onboard systems to control descent and touchdown
  • To withstand the high temperatures during re-entry, the RLV is equipped with a robust thermal protection system
  • Advanced navigation, guidance, and control systems are integrated to ensure precise and safe landing.
4. Puspak Reusable Launch Vehicle
  • The landing experiment took place this morning at the Aeronautical Test Range in Chitradurga, Karnataka. According to an ISRO tweet on the social media platform X, the RLV LEX-03 (Reusable Launch Vehicle Landing Experiment 3) successfully demonstrated its autonomous landing capability under harsher wind conditions. The Chinook helicopter released the Reusable Launch Vehicle Pushpak from an altitude of 4.5 kilometers.
  • Following its aerial release, Pushpak autonomously performed cross-range correction maneuvers, approached the runway, and achieved a precise horizontal landing on the runway centerline.
  • Pushpak approached the runway at a speed of 320 km/h, which is higher than the typical 280 km/h speed of fighter aircraft due to its low lift-to-drag ratio aerodynamic design. Upon touchdown, Pushpak's speed was reduced to nearly 100 km/h with the help of its brake parachute, after which the landing gear brakes were applied to bring it to a complete stop on the runway.
  • Pushpak utilized its rudder and nose wheel steering system to autonomously maintain a stable and accurate ground roll along the runway. According to ISRO, this experiment has reaffirmed its capability to acquire critical technologies for developing a reusable launch vehicle, which will reduce launch costs and advance space exploration in the coming years.
  • Pushpak employed multi-sensory fusion, incorporating an inertial sensor, radar altimeter, flush air data system, Pseudolite system, and NavIC navigation system
 
 
 
For Prelims: Current events of national and international importance
For Mains: GS-III: Awareness in the field of Space
 
 
Previous Year Questions

1.With reference to India’s satellite launch vehicles, consider the following statements: (UPSC CSE 2018)

1. PSLVs launch the satellites useful for Earth resources monitoring whereas GSLVs are designed mainly to launch communication satellites.

2. Satellites launched by PSLV appear to remain permanently fixed in the same position in the sky, as viewed from a particular location on Earth.

3. GSLV Mk III is a four-staged launch vehicle with the first and third stages using solid rocket motors; and the second and fourth stages using liquid rocket engines.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 and 3 only

(c) 1 and 2 only

(d) 3 only

 Answer (a)
 
Source: Indianexpress
 
 

DISTRICT DEVELOPMENT COUNCILS (DDC)

 
1. Context
 
The restructuring of Jammu and Kashmir’s political and administrative framework through the constitution of District Development Councils (DDCs) has remained the subject of legal and constitutional debate. Formed in 2021, the DDCs completed their five-year term on February 24, 2026
 
 
2. What do the 73rd and 74th Amendments provide for?
 
 
  • The 73rd and 74th Constitutional Amendment Acts, 1992 are regarded as landmark reforms in India's democratic framework because they provided constitutional status to local self-government institutions.
  • These amendments were enacted with the objective of decentralizing power, promoting grassroots democracy, and ensuring greater participation of people in governance.
  • While the 73rd Constitutional Amendment deals with rural local self-government through Panchayati Raj Institutions, the 74th Constitutional Amendment focuses on urban local self-government through Municipalities.
  • The 73rd Amendment came into effect on 24 April 1993, whereas the 74th Amendment became effective on 1 June 1993.
  • The 73rd Constitutional Amendment Act, 1992 inserted Part IX (Articles 243 to 243-O) into the Constitution and added the Eleventh Schedule, which contains 29 subjects that may be devolved to Panchayats.
  • The amendment established Panchayati Raj Institutions as the third tier of government in rural India and sought to strengthen democratic decentralization.
  • It envisages a three-tier Panchayati Raj system, consisting of the Gram Panchayat at the village level, the Panchayat Samiti at the intermediate or block level, and the Zila Parishad at the district level. However, states with a population of less than twenty lakh are not required to establish the intermediate tier.
  • An important feature of the 73rd Amendment is the recognition of the Gram Sabha as the foundation of village democracy.
  • The Gram Sabha comprises all registered voters in a village and serves as the primary forum through which people participate directly in local governance.
  • The amendment also mandates direct elections to all seats in Panchayats and provides for the reservation of seats for Scheduled Castes and Scheduled Tribes in proportion to their population.
  • Additionally, it reserves not less than one-third of the total seats and offices of Chairpersons for women, although several states have subsequently increased this reservation to fifty percent.
  • To ensure continuity and accountability, the amendment fixes the tenure of Panchayats at five years and requires fresh elections to be held within six months if a Panchayat is dissolved prematurely.
  • It also provides for the establishment of an independent State Election Commission to supervise, direct, and conduct elections to Panchayats.
  • Furthermore, every state is required to constitute a State Finance Commission every five years to recommend the distribution of financial resources between the State Government and local bodies, thereby strengthening their financial autonomy.
  • The 74th Constitutional Amendment Act, 1992 extended similar constitutional recognition to Urban Local Bodies by inserting Part IXA (Articles 243P to 243ZG) into the Constitution and adding the Twelfth Schedule, which lists 18 subjects related to urban governance.
  • The amendment aims to make urban local institutions more democratic, representative, and accountable while enabling them to manage the increasing challenges of urbanization effectively.
  • The amendment provides for three categories of urban local bodies depending on the size and nature of the urban area.
  • A Nagar Panchayat is established for transitional areas moving from rural to urban status, a Municipal Council is constituted for smaller urban areas, and a Municipal Corporation is created for larger urban areas.
  • Members of these bodies are elected directly by the people. Similar to the provisions under the 73rd Amendment, seats are reserved for Scheduled Castes, Scheduled Tribes, and not less than one-third of the seats for women, ensuring inclusive participation in urban governance.
  • The 74th Amendment also prescribes a five-year tenure for Municipalities and requires elections to be conducted within six months if a municipality is dissolved before completing its term.
  • It entrusts the State Election Commission with the responsibility of conducting municipal elections and requires the State Finance Commission to recommend measures for improving the financial position of urban local bodies.
  • Recognizing the need for coordinated planning, the amendment provides for the constitution of District Planning Committees (DPCs) to integrate rural and urban development plans at the district level.
  • It also mandates the establishment of Metropolitan Planning Committees (MPCs) in metropolitan areas to prepare comprehensive development plans by integrating the plans prepared by various municipalities and Panchayats within the metropolitan region.

 

3. Structure of Local Governance in India

 

  • India's constitutional framework establishes a well-defined multi-level system of local governance in which citizens elect their representatives directly at different tiers. This arrangement is intended to deepen democratic participation by bringing decision-making closer to the people.
  • In urban areas, local administration is carried out through Municipal Corporations, Municipal Councils, and Nagar Panchayats, each catering to different categories of urban settlements based on their size and stage of development.
  • In rural areas, governance is organised through a three-tier Panchayati Raj system consisting of the Gram Panchayat at the village level, the Block Development Council (or Panchayat Samiti) at the intermediate level, and the Zila Parishad at the district level. Together, these institutions are responsible for addressing local developmental needs and promoting participatory governance.
  • To ensure integrated planning at the district level, Article 243ZD of the Constitution provides for the establishment of a District Planning Committee (DPC). The DPC is entrusted with the responsibility of consolidating development plans prepared by both Panchayats and Municipalities and formulating a coordinated development strategy for the entire district.
  • Rather than functioning as an independent executive body, the District Planning Committee serves as a coordinating institution that harmonises the priorities and proposals emerging from elected rural and urban local bodies.
  • Its primary purpose is to encourage decentralised planning by incorporating local aspirations into district-wide development plans, thereby reinforcing the principles of democratic decentralisation.
  • Despite the constitutional importance accorded to District Planning Committees, their performance has varied considerably across states. In many parts of the country, DPCs have remained weak or inactive, limiting their effectiveness in district planning.
  • However, some states, particularly Kerala, have demonstrated more effective utilisation of these committees by integrating local planning with broader developmental objectives.

 

4. How are District Development Councils (DDCs) different from District Planning Committees (DPCs)?
 
 
  • The District Development Councils (DDCs) in Jammu and Kashmir were created through an executive order rather than by a legislative enactment.
  • Although the government describes DDCs as directly elected institutions intended to deepen democratic participation at the grassroots, their structure has generated considerable debate regarding their compatibility with the existing system of local governance.
  • One of the principal criticisms is that the DDC framework operates alongside, rather than through, constitutionally recognised local institutions such as Zila Parishads and Urban Local Bodies.
  • In contrast, the District Planning Committee (DPC), envisaged under Article 243ZD of the Constitution, is designed to consolidate development plans prepared by Panchayats and Municipalities into a unified district development strategy.
  • The DPC functions primarily as a coordinating body and does not exercise independent executive authority.
  • By comparison, DDCs have been vested with administrative and developmental responsibilities, creating a parallel layer of governance that alters the conventional relationship between elected local institutions and decision-making powers.
  • Another significant distinction lies in their approach to decentralisation. The DPC represents a bottom-up planning mechanism, where district-level priorities emerge from plans prepared by local elected bodies.
  • DDCs, on the other hand, are often viewed as following a top-down model, with authority flowing from higher levels of administration.
  • Critics contend that this arrangement places DDCs in competition with existing local institutions and reinforces bureaucratic oversight instead of promoting genuine democratic decentralisation.
  • Questions have also been raised regarding the principle of equal representation within the DDC system. Each district is allotted the same number of DDC constituencies irrespective of population size, resulting in disparities in the value of individual votes across districts.
  • For example, Srinagar, with a population of approximately 12 lakh, and Kishtwar, with nearly 2.5 lakh residents, are represented by an identical number of DDC members.
  • As a result, citizens in smaller districts enjoy relatively greater representation than those living in more populous districts, leading to concerns about unequal political representation.
  • Some analysts have likened DDCs to the Special Purpose Vehicles (SPVs) established under the Smart Cities Mission.
  • According to this view, while both structures appear to promote decentralised governance, they are largely administered through bureaucratic mechanisms and may override or sideline initiatives approved by elected local bodies. Consequently, DDCs are perceived by some as replacing, rather than complementing, constitutionally recognised local institutions.
  • The establishment of 280 elected DDC members across Jammu and Kashmir has also been interpreted by some observers as creating a parallel representative structure at the district level.
  • Historically, in regions experiencing political instability, higher levels of government have sometimes relied on district-based institutions to reduce the influence of state-level representative bodies.
  • In the context of Jammu and Kashmir, where the Legislative Assembly remained absent or functionally weakened for an extended period, critics argue that the DDC framework enabled several planning, developmental, and financial functions that would ordinarily be exercised by elected state representatives and local self-government institutions to remain under the influence of the Union administration.
 
 
5. Way Forward
 
Effective local self-governance extends beyond merely establishing administrative institutions or creating legal frameworks; it is essentially rooted in democratic political empowerment. Meaningful decentralisation can be achieved only by revitalising the District Planning Committee (DPC) framework envisioned under the 73rd and 74th Constitutional Amendments. This requires strengthening local governments with adequate financial resources, institutional autonomy, and accountability to the electorate of the State. Such an approach promotes governance that is responsive to local aspirations, rather than a centrally directed administrative system in which decision-making remains concentrated under the control of the Union government
 
 
 
 
For Prelims: Panchayat Raj institutions, Local Governance
 
For Mains: GS II - Indian Polity & Governance
 

 

Previous year Question

 
1. Consider the following statements: (UPSC 2016)
1. The minimum age prescribed for any person to be a member of Panchayat is 25 years.
2. A Panchayat reconstituted after premature dissolution continues only for the remainder period.
Which of the statements given above is/are correct? 
A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
Answer: B
 
2. In areas covered under the Panchayat (Extension to the Scheduled Areas) Act, 1996, what is the role/power of Gram Sabha? (UPSC 2012)
1. Gram Sabha has the power to prevent the alienation of land in the Scheduled Areas.
2. Gram Sabha has the ownership of minor forest produce.
3. Recommendation of Gram Sabha is required for granting a prospecting license or mining lease, for any minerals in the Scheduled Areas.
Which of the statements given above is/are correct?
A. 1 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: B
 
3.The Government enacted the Panchayat Extension to Scheduled Areas (PESA) Act in 1996. Which one of the following is not identified as its objective? (UPSC 2013)
A. To provide self-governance
B. To recognize traditional rights
C. To create autonomous regions in tribal areas
D. To free tribal people from exploitation
Answer: C
 
 
Source: The Hindu
 
 
 

ECOLOGICALLY SENSITIVE AREA (ESA)

 
 
1. Context
 
Twelve years after it issued the first draft notification, the Centre is finally ready to finalise and notify the demarcation of Ecologically Sensitive Areas (ESA) in the Western Ghats region, at least in the three states in which contentious issues have more or less been resolved
 
 
2. What is an ecologically sensitive area?
 
 
  • An Ecologically Sensitive Area (ESA) is a region that possesses unique and fragile environmental characteristics and therefore requires special protection from activities that could cause irreversible ecological damage.
  • These areas are rich in biodiversity, provide important ecosystem services, and often support rare or endangered species of plants and animals.
  • Because of their ecological significance, any developmental activities in such regions need to be carefully regulated to ensure that economic growth does not come at the cost of environmental degradation.
  • The idea behind declaring an area as ecologically sensitive is not to completely stop human activities, but to strike a balance between conservation and development.
  • Certain activities that can have severe environmental impacts—such as mining, quarrying, large-scale industries, thermal power plants, or extensive deforestation—are either prohibited or strictly regulated.
  • At the same time, sustainable activities like agriculture, horticulture, eco-tourism, and traditional livelihoods are generally encouraged so that local communities can continue to benefit from the resources without destroying them.
  • In India, the concept of Ecologically Sensitive Areas derives from the provisions of the Environment (Protection) Act, 1986. The Central Government can notify such areas to provide them with an additional layer of protection.
  • A notable example is the Western Ghats, one of the world's eight “hottest hotspots” of biodiversity.
  • Parts of the Western Ghats have been proposed and notified as Ecologically Sensitive Areas to preserve their rich flora and fauna, maintain water security, regulate climate, and ensure the long-term sustainability of the ecosystem
 
3. Which state has the highest number of ecologically sensitive zones in India?
 
  • Maharashtra has the highest number of Eco-Sensitive Zones (ESZs) in India. The Ministry of Environment, Forest and Climate Change (MoEFCC) has identified and notified the maximum number of ecologically sensitive zones in the state under the provisions of the Environment (Protection) Act, 1986.
  • This is primarily because Maharashtra has a large number of protected areas, including national parks, wildlife sanctuaries, and tiger reserves, many of which lie within the biodiversity-rich Western Ghats.
  • The state's varied landscapes and rich flora and fauna necessitate the creation of numerous buffer zones to protect these ecosystems from harmful developmental activities
 
4. Who declares ecologically sensitive areas?
 
 
  • The Forest Survey of India (FSI) is the apex national institution functioning under the Ministry of Environment, Forest and Climate Change (MoEFCC) and is entrusted with the periodic assessment and monitoring of the country’s forest resources.
  • Besides conducting forest inventories, the organization also undertakes training, research, and extension activities.
  • Established on June 1, 1981, FSI replaced the Pre-investment Survey of Forest Resources (PISFR), which had been launched in 1965 by the Government of India with support from the Food and Agriculture Organization (FAO) and the United Nations Development Programme (UNDP).
  • In November 2013, acting on the recommendations of the Kasturirangan Committee, the Central Government invoked the provisions of the Environment (Protection) Act, 1986 to restrict the establishment and expansion of activities such as mining, quarrying, sand extraction, thermal power projects, large-scale construction, townships, and highly polluting red-category industries.
  • The issuance of final Ecologically Sensitive Area (ESA) notifications further strengthens the legal framework aimed at safeguarding these environmentally fragile regions.
 
 
5. Which are the states where the areas to be demarcated as ESA?
 

The proposed Ecologically Sensitive Area (ESA) in the Western Ghats spans six states. Based on the recommendations of the Kasturirangan Committee, approximately 56,825 sq. km of the Western Ghats has been identified for demarcation as ESA. These states are:

  • Gujarat
  • Maharashtra
  • Goa
  • Karnataka
  • Kerala
  • Tamil Nadu

Among these, the largest proposed ESA area lies in Karnataka (20,668 sq. km), followed by Maharashtra (17,340 sq. km) and Kerala (about 9,993 sq. km)

 

6. Where do the Western Ghats stretch from?

 

  • The Western Ghats, also known as the Sahyadri Hills, form a continuous mountain chain running parallel to the western coast of India.
  • They stretch for about 1,600 kilometres from the Tapti (Tapi) River valley in Gujarat in the north to Kanyakumari in Tamil Nadu at the southern tip of the Indian peninsula.
  • Along their course, they pass through six states—Gujarat, Maharashtra, Goa, Karnataka, Kerala, and Tamil Nadu.
  • The mountain range covers an area of approximately 1,60,000 sq. km and acts as a major watershed, giving rise to several important peninsular rivers such as the Godavari, Krishna, Kaveri, and Tungabhadra.
  • Owing to their exceptional biodiversity and high degree of endemism, the Western Ghats are recognized as one of the world's eight "hottest hotspots" of biodiversity and have been designated as a UNESCO World Heritage Site
 
 
7. Significance of Western Ghats
 
The Western Ghats, a UNESCO World Heritage Site, hold immense ecological, climatic, cultural, and economic significance:
 
  • The Western Ghats are one of the world's eight "hottest hotspots" of biological diversity. They host over 7,400 species of flowering plants, 139 mammal species, 508 bird species, 179 amphibian species, 6,000 insect species, and 290 freshwater fish species, many of which are endemic.
  • A significant proportion of the species found in the Western Ghats are endemic, meaning they are not found anywhere else in the world. This includes many unique species of plants, animals, and microorganisms
  • The region provides crucial ecosystem services, such as water purification, climate regulation, soil stabilization, and carbon sequestration
  • The Western Ghats play a critical role in the Indian monsoon system. They intercept the moisture-laden winds from the southwest, causing heavy rainfall on the western side, which supports lush forests and agriculture
  • The forests of the Western Ghats act as a climate buffer, moderating temperatures and maintaining regional climate stability
  • The Western Ghats are the source of numerous rivers, including the Godavari, Krishna, and Cauvery, which provide water to millions of people in peninsular India. These rivers are crucial for drinking water, irrigation, and hydropower
  • The Western Ghats are home to numerous indigenous communities and tribal groups who have lived in harmony with the environment for centuries. These communities have rich cultural traditions and knowledge systems linked to the forests and biodiversity
  • Many areas in the Western Ghats are considered sacred by local communities and host numerous temples, shrines, and pilgrimage sites.
  • The Western Ghats support diverse agricultural systems, including spice plantations (pepper, cardamom), tea, coffee, and rubber. These crops are economically significant both domestically and for export
 
8.Way forward
 
Though the negotiations with Kerala and Karnataka are continuing, the Centre is learnt to be preparing to notify the ESA in the states where an agreement on this issue has either been achieved, or is close to being finalised. This is different from the previous attempts in which the Centre had issued draft notifications for ESAs in all the states together
 
 
 
For Prelims: Western Ghats, Eastern Ghats, Landslides, Flash floods
For Mains: GS 1 - Indian Geography
 

 

Previous year questions

1. Which of the following statements in respect of landslides are correct? (NDA 2022)

1. These occur only on gentle slopes during rain.
2. They generally occur in clay-rich soil.
3. Earthquakes trigger landslides.

Select the correct answer using the code given below.

A. 1 and 2         B. 2 and 3            C. 1 and 3              D. 1, 2 and 3

 Answer: (B)

For Mains:

1. Describe the various causes and the effects of landslides. Mention the important components of the National Landslide Risk Management Strategy. (250 words) (2021)
 
 
Source: indianexpress

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