UTTARAKHAND'S UNIFORM CIVIL CODE
2. The objective of a Uniform Civil Code (UCC) in India
- A Uniform Civil Code (UCC) aims to establish a consistent set of laws to replace the diverse personal laws associated with different religions. These laws pertain to crucial aspects like marriage, divorce, adoption, and inheritance. The constitutional basis for the UCC is found in Article 44, which directs the state to "endeavour to secure for the citizens a uniform civil code throughout the territory of India." This provision falls under the Directive Principles of State Policy, playing a significant role in governance, even though it is not legally enforceable.
- The inclusion of the UCC provision sparked intense debates during the deliberations of India's Constituent Assembly. There was a profound discussion on whether it should be considered a fundamental right or a directive principle. Opponents raised concerns that implementing a UCC might compromise the rights of religious minorities and erode India's cultural diversity. Some argued that it could conflict with the freedom of religion guaranteed under Article 19 (now Article 25) of the draft Constitution.
- While some, like Member K.M. Munshi, advocated for the UCC, emphasizing its potential to promote gender equality and eliminate discriminatory practices against women, others, like Member Naziruddin Ahmad, expressed reservations. Ahmad highlighted the need for community consent for implementing such a uniform set of laws.
- Dr. B.R. Ambedkar, taking a more ambivalent stance, expressed the desirability of a UCC but recommended that it be "purely voluntary" in its initial stages. He argued that since the provision was recommendatory and not mandatory, it should not be imposed on all citizens.
- The matter was ultimately settled with a 5:4 majority vote, led by the sub-committee on fundamental rights headed by Sardar Vallabhbhai Patel. The decision was that the establishment of a UCC should not be categorized as a fundamental right.
3. Development of Uttarakhand's Uniform Civil Code (UCC)
- In June 2022, the Uttarakhand government established an expert committee led by former Supreme Court judge Justice Ranjana Prakash Desai to explore avenues for implementing a Uniform Civil Code (UCC). This initiative to implement a UCC in the state if re-elected. Despite the Chief Minister's announcement in June of that year that a draft UCC was prepared, the committee faced delays in submitting its report. The original deadline in November 2022 was extended multiple times.
- Right from the outset, the proposal encountered opposition from rival political parties, with Congress representatives in the state claiming that the UCC initiative was merely a political strategy to influence voters in the lead-up to the general elections. The tribal community, constituting 2.9% of the population, had not given consent to the UCC. Additionally, the Van Gujjar tribe, a Muslim nomadic group with around 60,000 members, expressed concerns about the proposed law.
- The controversies surrounding community consent and political motivations added complexity to the discussions surrounding the proposed implementation of the UCC in the state.
4. Anticipated Changes in Uttarakhand's Uniform Civil Code (UCC)
- The forthcoming draft of the Uniform Civil Code (UCC) in Uttarakhand is poised to bring about significant changes, primarily focusing on gender equality within legal frameworks. Notable provisions include equal treatment of men and women, particularly in matters related to inheritance. The UCC is expected to eliminate practices associated with marriage and divorce, such as polygamy, iddat (mandatory waiting period for women after the dissolution of a Muslim marriage), and triple talaq. Furthermore, the proposed Code is likely to ensure an equal property share for Muslim women, surpassing the current 25% share stipulated by Muslim personal law.
- Despite these amendments, the minimum age for marriage is anticipated to remain unchanged, with 18 years for women and 21 years for men. The UCC is set to encompass a range of issues, including divorce, marriage registrations, adoption, and provisions for the social security of ageing parents. Additionally, the committee has recommended the mandatory registration of live-in relationships.
- In clarifying the intentions behind the UCC, the proposed changes are not geared towards appeasing any specific community but rather aim to empower all sections of society. The implementation of the UCC would not impact reservations, marital rights, customs, or any other class-specific considerations. The emphasis is on fostering equality and empowerment across diverse segments of the population.
5. Supreme Court's Stance on Uniform Civil Code (UCC) and Related Petitions
Over the years, the Supreme Court has engaged in discussions on the Uniform Civil Code (UCC) through various judgments. However, it has consistently refrained from issuing directives to the government, emphasizing that law-making falls exclusively within the domain of Parliament. In the 1985 Shah Bano Begum case, the Court expressed regret over Article 44 remaining a "dead letter" and urged its implementation. This sentiment was echoed in subsequent cases like Sarla Mudgal versus Union of India (1995) and John Vallamattom versus Union of India (2003).
Petitions for Uniformity in Laws
Between 2021 and 2022, six petitions were filed in the Supreme Court seeking uniformity in divorce, maintenance, and alimony laws, asserting that existing laws discriminated against women and thereby violated constitutional provisions under Article 14 (right to equality) and Article 15 (right against discrimination based on religion and gender). In March of the previous year, a Bench led by Chief Justice of India (CJI) D.Y. Chandrachud dismissed these petitions, emphasizing that such matters are within the exclusive legislative purview of Parliament.
Dismissal of Petition Challenging Uttarakhand's UCC Committee
In January of the same year, the Supreme Court dismissed a petition challenging the Uttarakhand government's establishment of an expert committee on the UCC. The Court highlighted that Article 162 permits the exercise of executive powers, stating, "Article 162 of the Constitution indicates that the executive power of a State extends to matters concerning which the Legislature of the State has power to make laws." The order emphasized that the constitution of such a committee, as per Entry 5 of the Concurrent List, dealing with "marriage and divorce; infants and minors; adoption; wills, intestacy, and succession," could not be challenged as ultra vires.
6. Law Commission's Perspective on the Uniform Civil Code (UCC)
- In 2016, the government sought the Law Commission of India's guidance on formulating a Uniform Civil Code (UCC) due to the diverse personal laws existing in the country. In response, the 21st Law Commission, led by former Supreme Court judge Justice Balbir Singh Chauhan, submitted a 185-page consultation paper in August 2018 titled "Reforms of family law." The paper concluded that, at that stage, the formulation of a UCC was deemed "neither necessary nor desirable." It emphasized that a unified nation did not inherently require "uniformity" and that secularism should not contradict the diverse cultural and religious practices prevailing in the country. While rejecting the immediate need for a UCC, the commission recommended amendments to eliminate discriminatory practices and stereotypes present in the existing personal laws.
- On June 14 of the following year, the 22nd Law Commission, led by Justice (Retd) Rituraj Awasthi, issued a notification seeking input from various stakeholders, including the public and religious organizations, on the UCC. Notably, Justice Awasthi, during his tenure as Chief Justice of the Karnataka High Court, had ruled in favour of the Karnataka government's order prohibiting the wearing of hijab in educational institutions.
- The Law Commission's transition from deeming a UCC as unnecessary in 2018 to actively seeking public opinion in 2022 signifies a shift in perspective. While the 2018 report emphasized the importance of maintaining cultural and religious diversity, the subsequent move to engage stakeholders suggests a willingness to reconsider and evaluate the need for a UCC, taking into account diverse viewpoints and societal changes.
7. Future Developments in the Uniform Civil Code (UCC) Landscape
- Following Uttarakhand's lead, Madhya Pradesh and Gujarat have also established committees to kickstart the formulation of a Uniform Civil Code (UCC). This push for a UCC was included in the BJP's election manifesto for the Karnataka Assembly polls, although the Congress eventually secured a significant victory in that election.
- The question of whether the central government will propose a UCC on a pan-India level remains a topic of debate. The central government will likely proceed cautiously, observing the outcomes of the initiatives undertaken by individual states. The awaited report from the 22nd Law Commission is anticipated to carry persuasive weight in shaping the discourse.
- The renewed momentum towards a UCC may also be influenced by a pending query before the Supreme Court concerning the "scope and ambit of the right to freedom of religion under Article 25 of the Constitution." This question originated in the Sabarimala case and was framed by a Constitution Bench for reference to a larger bench. Despite three years passing, there has been no substantial progress on this matter.
- The evolving landscape of UCC initiatives in various states, coupled with the legal and political considerations at the national level, indicates a complex and dynamic situation. The outcome of these state-level efforts, coupled with the pending Supreme Court query, will likely influence the trajectory of discussions on the UCC at both the state and national levels. The UCC debate continues to be shaped by legal, political, and societal dynamics, with potentially far-reaching implications for India's legal framework and cultural diversity.
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For Prelims: Uniform Civil Code, Article 44, Article 14, Article 15, Article 25, Shah Bano Begum Case, Law Commission
For Mains:
1. Discuss the potential impact of the UCC on the rights of religious minorities in India. How can their concerns be addressed while simultaneously pursuing the goal of gender equality? (250 Words)
2. Discuss the possible scenarios for the future of the UCC in India, considering the initiatives in Uttarakhand and other states, as well as the pending Supreme Court query. What are the potential challenges and opportunities? (250 Words)
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Previous Year Questions
1. The purpose of Uniform Civil Code incorporated in Article 44 of Indian Constitution is for: (OPSC OAS 2021)
A. National Security B. Cultural Integration C. National Unity D. Welfare of Minorities
2. Consider the following provisions under the Directive Principles of State Policy as enshrined in the Constitution of India: (2012)
Which of the above are the Gandhian Principles that are reflected in the Directive Principles of State Policy? (a) 1, 2 and 4 only (b) 2 and 3 only (c) 1, 3 and 4 only (d) 1, 2, 3 and 4
3. A legislation that confers on the executive or administrative authority an unguided and uncontrolled discretionary power in the matter of the application of law violates which one of the following Articles of the Constitution of India? (a) Article 14 (b) Article 28 (c) Article 32 (d) Article 44 Answer: 1-C, 2-B, 3- A Mains1. Discuss the possible factors that inhibit India from enacting for its citizen a uniform civil code as provided for in the Directive Principles of State Policy. (UPSC 2015) |
PERIODIC LABOUR FORCE SURVEY (PLFS)
1. Context
2. About The Periodic Labour Force Survey (PLFS)
- The Periodic Labour Force Survey (PLFS) is a sample survey conducted by the National Sample Survey Office (NSSO) of India to provide information on the labour force and employment situation in the country.
- The survey is conducted annually in all the states and union territories of India.
- The PLFS provides data on various employment indicators, including the labour force participation rate (LFPR), unemployment rate (UR), worker population ratio (WPR), and employment by industry and occupation.
- The PLFS sheds light on the proportion of individuals seeking employment, the unemployment rate, gender disparities in employment and wages, and the sectoral distribution of workers.
- Additionally, it details the types of employment, such as casual labour, self-employment, and regular salaried jobs.
- This comprehensive data is crucial for understanding the dynamics of the Indian labour market and formulating effective employment strategies.
- The Periodic Labour Force Survey (PLFS) collects employment data using two methods: Usual Status (US) and Current Weekly Status (CWS).
- In the US method, respondents are asked to recall their employment details for the past year, while in the CWS method, they are asked to recall their employment details for the past week.
- The labour force estimate derived from the US method includes individuals who worked or were seeking/available for work for a significant portion of the past year, as well as those who worked for at least 30 days during the reference period.
- Conversely, the labour force estimate based on the CWS method encompasses those who worked for at least one hour or sought/were available for work for at least one hour on any day during the past week.
- The global trend has shifted towards a greater emphasis on CWS data due to the improved accuracy of recall for shorter reference periods.
4. Latest findings of the Report
Unemployment Rate (UER)
- The UER is often the most talked about metric in popular discourse. Simply put, it refers to the proportion of people who demanded work over the past year and failed to get it.
- As the data in Table 1 shows, for the population above 15 years of age, the UER has fallen significantly from 6.6% to 5.1% over the last year (that is, July to June cycle).
- Simply put, 5.1% of all the people above 15 years of age who demanded work failed to get one.
Labour Force Participation Rate (LFPR)
- The Unemployment Rate (UER) is calculated as a proportion of the population that is demanding work.
- However, this population also fluctuates for various reasons. The Labor Force Participation Rate (LFPR) is a measure of the total population demanding work, expressed as a proportion of the total population above 15 years of age.
- As seen in Table 1, India's LFPR, which had been gradually increasing, has experienced a significant surge in the past year.
- As of 2022-23, 54.6% of all Indians above the age of 15 were actively seeking employment.
LFPR for women
- This metric looks at LFPR among women to ascertain where the additional demand for jobs is coming from.
- The data shows that female LFPR has gone up over the years but there were two discrete step-ups one in 2019-20 (when India’s GDP growth rate had slowed down to less than 4% and this was before the Covid pandemic hit) and the second in 2022-23 when it rose to 31.6%.
Worker Population Rate
- Since the proportion of people demanding work (the LFPR) goes up and down and the percentage of those failing to get a job (the UER) is expressed as a proportion of the former, it can throw off analysis.
- As such, there is another way to look at the labour market: Worker Population Ratio (WPR).
- The WPR is the percentage of persons employed among the persons in the population.
- Thus, instead of looking at how many demand a job and how many fail to get it, the WPR simply gives a measure of how many people have a job as a proportion of the total population.
- This metric too has been going up and especially noteworthy are the two discrete
step-ups in 2019-20 and 2022-23.
WPR among women
Monthly earnings
Distribution of workers
5. Key Trends in PLFS 2022-23
- Upon initial analysis, the Periodic Labour Force Survey (PLFS) for 2022-23 reveals several encouraging trends. The unemployment rate is on a downward trajectory, and both the Labor Force Participation Rate (LFPR) and Workforce Participation Rate (WPR) exhibit substantial increases. A particularly heartening development is the notable rise in the participation of women in the workforce. This suggests a positive correlation between economic recovery and the creation of more employment opportunities, especially for women.
- However, a closer examination of the nature and remuneration of these new jobs alters the understanding. The predominant trend is the emergence of jobs falling under the category of "self-employment." Typically, in a growing economy, businesses tend to hire more employees. Conversely, during economic challenges, individuals often transition from regular employment to "self-employed" status. This nuanced perspective prompts a reconsideration of the quality and sustainability of the employment being generated.
- Analyzing the trends among women across various metrics reveals an interesting dynamic. The data suggests that economic strains on household finances have led more women, previously outside the workforce, to join in. However, a noteworthy observation is the prevalence of women taking up roles as "unpaid helpers in household enterprises," highlighting a complex interplay between economic conditions and women's workforce participation.
- Furthermore, an examination of the sectoral landscape indicates a regressive shift in India's employment patterns. Notably, there has been an increase in the proportion of Indians employed in agriculture over the past year, while the numbers in manufacturing have witnessed a decline. This shift underscores the evolving economic dynamics and sectoral preferences shaping the employment scenario.
- In a thriving economy, one would expect an improvement in monthly incomes. However, the Indian scenario deviates from this expectation. Despite positive indicators in other areas, the data suggests that the overall economic boom is not translating into significant improvements in monthly incomes for individuals in India. This anomaly prompts a closer examination of the factors contributing to this divergence.
6. The WayForward
While there are positive signals in the headline indicators, a more nuanced analysis reveals complexities like job creation, women's participation dynamics, sectoral shifts, and income patterns. This holistic perspective is essential for a comprehensive understanding of the multifaceted impact of economic trends on the labour market in India.
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For Prelims: Periodic Labour Force Survey, National Sample Survey Office, labour force participation rate, worker population ratio
For Mains:
1. Examine the changing nature of employment in India, as reflected in the increasing share of self-employment and the declining proportion of regular salaried jobs. Discuss the implications of this shift for the quality and sustainability of employment. (250 Words)
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Previous Year Questions 1. Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R). (UPPSC 2019)
Assertion (A): The labour force participation rate is falling sharply in recent years for females in India.
Reason (R): The decline in labour force participation rate is due to improved family income and an increase in education.
Select the correct answer from the codes given below:
Codes:
A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true
2. Which of the following statements about the employment situation in India according to the periodic Labour Force Survey 2017-18 is/are correct? (UPSC CAPF 2020)
1. Construction sector gave employment to nearly one-tenth of the urban male workforce in India
2. Nearly one-fourth of urban female workers in India were working in the manufacturing sector
3. One-fourth of rural female workers in India were engaged in the agriculture sector
Select the correct answer using the code given below:
A. 2 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3
3. Disguised unemployment generally means (UPSC 2013)
(a) large number of people remain unemployed
4. Assertion (A): Workers - population ratio in India is low in contrast to that in developed countries. Reason (R): Rapid growth of population, low female worker population rate and omission of unpaid family workers lead to low worker-population ratio. Choose the correct answer: (Telangana Police SI Mains 2018) A. (A) is true, but (R) is false.
B. (A) is false, but (R) is true.
C. Both (A) and (R) are true, but (R) is not a correct explanation of (A).
D. Both (A) and (R) are true, but (R) is the correct explanation of (A).
Answers: 1-C, 2-B, 3-C, 4-D Mains1. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (UPSC 2023) |
Source: The Indian Express
INDIA'S LABOUR MARKET
- India’s labour market indicators remain strong, with the Labour Force Participation Rate recorded at 59%, the Workforce Participation Rate at 57%, and unemployment at only 3%.
- Youth unemployment has shown a downward trend since 2024 in both rural and urban regions. In addition, successive Monthly PLFS reports during 2025 highlight a steady rise in women’s workforce participation.
- Rural female LFPR continued to improve through September 2025, reaching the highest level observed since May, indicating a consistent positive trend across multiple survey cycles.
- Employment quality has likewise improved over time. The proportion of workers engaged in regular salaried jobs increased from 22% to 24%, benefiting both men and women. At the same time, the share of self-employed workers declined from 58% to 56%.
- Since salaried employment generally offers greater income stability and social security benefits, this transition represents one of the most significant developments reflected in the 2025 labour data.
- Income patterns further support these improvements, especially for women workers. Earnings among women in regular salaried jobs rose by 7%, slightly higher than the 6% increase recorded for men.
- In self-employment, women’s earnings increased by 9% compared to 8% for men. Similarly, women engaged in casual labour witnessed a 5% rise in wages, whereas male wages in this category remained largely stagnant.
- Despite these gains, gender disparities in earnings continue to persist. Available data suggests that women receive nearly 76% of male earnings in salaried occupations, about 69% in casual work, and only 36% in self-employment.
- Although significant gaps remain, the growing movement toward salaried employment is gradually generating more meaningful economic benefits for women.
- Economic transformation is also reshaping employment patterns. Agriculture now accounts for 43% of total employment, while manufacturing and services contribute roughly 12% and 13%, respectively.
- Increasing numbers of young workers, especially women, are joining manufacturing and service industries.
- Moreover, occupational segregation based on caste and gender is less pronounced among younger generations than older ones, reflecting the long-term impact of improved educational access and greater social mobility, which are now contributing to more inclusive labour market outcomes
- A major concern continues to be the transition from education to employment. India has greatly increased access to higher education, enabling students from a wider range of economic backgrounds to pursue tertiary studies.
- However, important gaps still persist. Between 2004 and 2023, nearly 5 million graduates entered the labour market every year, yet only around 2.8 million were able to obtain employment of any form.
- Insufficient access to structured skill development remains another obstacle. Merely 4% of people in the 15–59 age group have undergone formal vocational or technical training.
- At the same time, labour force participation among trained individuals is considerably higher — about 83% for men and 51% for women — highlighting the strong connection between skill acquisition and employment opportunities. This demonstrates the need to expand and strengthen skill-training initiatives on a much larger scale.
- Ensuring long-term participation of women in the workforce is another critical issue. While men outside the labour force mostly identified education as the reason for non-participation, women largely pointed to childcare and domestic responsibilities.
- This reflects deeper structural inequalities arising from the unequal burden of unpaid household work.
- For example, self-employed urban men work nearly 17.5 hours more per week than women, while among regular salaried employees the gap stands at roughly 7.9 hours weekly, illustrating the disproportionate dual burden of paid and unpaid labour carried by women.
- A further concern relates to the NEET population — youth who are neither in education, employment, nor training. Approximately one-fourth of individuals aged 15–29 belong to this category.
- Since they are excluded from official unemployment statistics, the scale of the issue often remains understated. If not addressed promptly, prolonged disengagement may push many young people into long-term detachment from the labour market
- The Periodic Labour Force Survey (PLFS) is India’s main survey for understanding the condition of employment and unemployment in the country. It is conducted by the National Statistical Office under the Ministry of Statistics and Programme Implementation.
- The survey was introduced in 2017 to provide regular and reliable information about the labour market, replacing the earlier employment surveys conducted by the National Sample Survey Office.
- The need for PLFS arose because India’s economy and labour market were changing rapidly, but employment data was not available frequently enough.
- Policymakers required updated information to understand how many people were working, how many were unemployed, and how labour patterns were changing across rural and urban areas.
- To address this gap, PLFS was designed to provide both annual and quarterly estimates on employment-related indicators.
- The survey studies the participation of people in economic activities. It measures how many individuals are employed, how many are actively searching for work, and how many remain outside the labour force.
- Through this, it calculates important indicators such as the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR). These indicators help in assessing the overall health of the economy and the availability of jobs.
- PLFS also provides detailed insights into the nature of employment in India. It classifies workers into categories such as self-employed persons, regular salaried employees, and casual labourers.
- This distinction is important because different forms of employment offer different levels of income security, social protection, and job stability. For example, regular salaried employment is generally considered more secure than casual labour.
- Another important feature of PLFS is that it captures differences across gender, age groups, education levels, and regions.
- It highlights issues such as women’s participation in the workforce, youth unemployment, rural–urban disparities, and shifts in employment from agriculture to manufacturing and services. Because of this, the survey has become an essential tool for analysing structural changes in the Indian economy.
- The survey uses different approaches to measure employment status. The “Usual Status” method examines a person’s employment situation over a longer reference period, while the “Current Weekly Status” method looks at whether a person worked for at least one hour during the previous seven days. These methods help provide a broader and more accurate picture of employment conditions.
- Today, PLFS serves as the most important official source of labour market data in India. Governments, economists, researchers, and policymakers rely on it to formulate employment policies, assess economic performance, design welfare programmes, and evaluate the impact of reforms on workers and livelihoods
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Female Labour Force Participation (FLFP)
Female Labour Force Participation (FLFP) refers to the proportion of women in the working-age population who are either employed or actively seeking employment. In simple terms, it measures how many women are participating in economic activities within a country. It is usually expressed through the Female Labour Force Participation Rate (FLFPR), which indicates the percentage of women who are part of the labour force compared to the total female population within a specified age group. Women who are working in jobs, self-employment, farming, business activities, or even looking for work are included in the labour force. However, women who are neither working nor searching for employment are considered outside the labour force. Female labour force participation is considered an important indicator of economic development, gender equality, and social progress. A higher participation rate generally reflects better access to education, employment opportunities, skill development, mobility, and financial independence for women. It also contributes to higher household incomes, poverty reduction, and overall economic growth. In India, female labour force participation has traditionally remained lower than that of men due to several social, cultural, and economic factors. Many women are engaged in unpaid domestic work such as childcare, cooking, and household responsibilities, which are not counted as economic activities in official surveys. Other factors such as lack of safe transportation, limited access to formal jobs, wage inequality, social norms, and interruptions caused by marriage or motherhood also affect women’s participation in the workforce. |
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For Prelims: Periodic Labour Force Survey, National Sample Survey Office, labour force participation rate, worker population ratio
For Mains:
1. Examine the changing nature of employment in India, as reflected in the increasing share of self-employment and the declining proportion of regular salaried jobs. Discuss the implications of this shift for the quality and sustainability of employment. (250 Words)
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Previous Year Questions 1. Given below are two statements, one is labeled as Assertion (A) and the other as Reason (R). (UPPSC 2019)
Assertion (A): The labour force participation rate is falling sharply in recent years for females in India.
Reason (R): The decline in labour force participation rate is due to improved family income and an increase in education.
Select the correct answer from the codes given below:
Codes:
A. Both (A) and (R) are true and (R) is the correct explanation of (A)
B. Both (A) and (R) are true and (R) is not the correct explanation of (A)
C. (A) is true, but (R) is false
D. (A) is false, but (R) is true
2. Which of the following statements about the employment situation in India according to the periodic Labour Force Survey 2017-18 is/are correct? (UPSC CAPF 2020)
1. Construction sector gave employment to nearly one-tenth of the urban male workforce in India
2. Nearly one-fourth of urban female workers in India were working in the manufacturing sector
3. One-fourth of rural female workers in India were engaged in the agriculture sector
Select the correct answer using the code given below:
A. 2 only B. 1 and 2 only C. 1 and 3 only D. 1, 2 and 3
3. Disguised unemployment generally means (UPSC 2013)
(a) large number of people remain unemployed
4. Assertion (A): Workers - population ratio in India is low in contrast to that in developed countries. Reason (R): Rapid growth of population, low female worker population rate and omission of unpaid family workers lead to low worker-population ratio. Choose the correct answer: (Telangana Police SI Mains 2018) A. (A) is true, but (R) is false.
B. (A) is false, but (R) is true.
C. Both (A) and (R) are true, but (R) is not a correct explanation of (A).
D. Both (A) and (R) are true, but (R) is the correct explanation of (A).
Answers: 1-C, 2-B, 3-C, 4-D Mains1. Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements. (UPSC 2023) |
Source: The Hindu
FOREIGN EXCHANGE RESERVES
- Foreign exchange reserves are the stock of foreign money and other external assets kept by a country’s central bank, in India’s case the Reserve Bank of India (RBI). You can think of it as the country’s financial emergency fund in foreign currencies.
- Imagine India as a large household. Just as a family keeps savings in the bank for emergencies, the country keeps a reserve of foreign assets so that it can meet international payments whenever required.
- Since India imports many essential goods—especially crude oil, electronics, machinery, and gold—it has to pay other countries mostly in US dollars or other international currencies. This is where foreign exchange reserves become extremely important.
- These reserves are mainly held in the form of US dollars, euros, pounds, yen, gold, and assets such as US government bonds and treasury bills. They may also include Special Drawing Rights (SDRs) and the reserve position with the IMF.
- To understand it more clearly, suppose India wants to import crude oil from another country. The payment cannot usually be made in Indian rupees because international trade is largely settled in dollars. The RBI uses the country’s foreign exchange reserves to ensure that sufficient dollars are available in the system for such payments.
- Foreign exchange reserves also play a major role in protecting the value of the rupee. For example, if the rupee starts falling sharply against the dollar, the RBI may sell dollars from its reserves in the market and buy rupees.
- This increases the supply of dollars and helps stabilize the exchange rate. Recently, the RBI has used reserves to reduce volatility in the rupee during global tensions and oil price shocks.
- In simple terms, foreign exchange reserves act as the country’s economic shield and confidence booster. They help India continue imports during crises, repay external debt, stabilize the currency, and reassure investors that the country is financially strong
- The central bank introduced this ceiling at a time when the Indian rupee had slipped to a historic low of 94.81 against the US dollar, marking a depreciation of nearly 4 percent since the conflict began in late February.
- This measure was primarily intended to arrest the rupee’s slide by restricting the extent of foreign currency exposure that banks are allowed to hold within the domestic market.
- Moreover, as pressure on the domestic currency intensified, the Reserve Bank of India deployed dollars from its foreign exchange reserves to support the rupee and contain excessive volatility.
- Consequently, India’s forex reserves have declined by more than $30 billion, falling to around $698.34 billion since the onset of the conflict. This move reflects the central bank’s growing concern over exchange-rate instability and its efforts to prevent sharp and disorderly fluctuations in the currency market.
- Large-scale outflows by foreign investors have further intensified downward pressure on the rupee, causing it to breach the ₹92, ₹93, and now ₹94 per dollar levels within the same month.
- The currency had already weakened beyond the ₹90 and ₹91 marks in December 2025, and it is now hovering dangerously close to the ₹95 per dollar threshold, underscoring the severity of the ongoing external and financial pressures
- The largest component is Foreign Currency Assets (FCA). This forms the bulk of India’s reserves—usually around 80–85 percent. It includes assets held in major international currencies such as US dollars, euros, pounds, and yen.
- These are not just bundles of cash; most of them are invested in safe foreign assets such as US Treasury bonds, sovereign securities, deposits with foreign central banks, and commercial banks. This is the main pool the RBI uses when it wants to stabilize the rupee in the forex market.
- The second component is gold reserves. India holds a significant quantity of gold as part of its reserves. Gold acts as a store of value and a hedge during times of global uncertainty, inflation, or geopolitical tensions. Unlike paper currencies, gold retains intrinsic value and strengthens confidence in the country’s reserve position
- The third component is Special Drawing Rights (SDRs). These are international reserve assets created by the International Monetary Fund.
- SDRs are not a currency in themselves, but they can be exchanged for freely usable currencies like the US dollar. They act as an additional source of international liquidity for member countries.
- The fourth component is the Reserve Tranche Position (RTP) in the IMF. This refers to the amount India can immediately withdraw from the IMF without any conditions, based on its quota contribution to the Fund. It is like India’s readily available claim with the IMF
- Bankers are showing growing concern over the proposed regulatory changes, as these measures could have immediate operational and financial implications. A key issue being raised is the pace of implementation.
- Several banks have requested the Reserve Bank of India to provide a transition period of nearly three months so that existing foreign exchange positions can be gradually reduced or restructured in an orderly manner.
- According to market analysts tracking the developments, sudden enforcement would leave limited scope for effective risk management and could result in avoidable losses.
- The magnitude of existing exposure has further heightened these concerns. Estimates suggest that individual banks currently hold significant dollar positions, making the cumulative exposure across the banking system quite large.
- If the revised limits are introduced without any transition period, banks may be forced to unwind these positions quickly, potentially leading to dollar sales worth nearly $11–15 billion across the sector, according to market assessments.
- Such rapid unwinding could also expose banks to mark-to-market losses, particularly if positions have to be exited at unfavourable exchange rates.
- These losses would be reflected in their treasury books for the ongoing March quarter, thereby exerting pressure on profitability and quarterly earnings.
- Market observers also note that if the rupee continues to weaken, the RBI may introduce additional measures to support the currency and preserve foreign exchange reserves.
- A similar approach was witnessed during the global financial crisis and the taper tantrum, when then RBI Governor Raghuram Rajan responded to pressure on the rupee by encouraging foreign currency inflows.
- One notable intervention was the FCNR(B) scheme, which offered subsidized swap rates and successfully attracted more than $30 billion, significantly strengthening India’s forex reserves
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For Prelims: Current events of national and international importance
For Mains: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
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Previous Year Questions
1.Which of the following has/have occurred in India after its liberalization of economic policies in 1991? (UPSC CSE, 2017)
1. Share of agriculture in GDP increased enormously. 2. Share of India’s exports in world trade increased. 3. FDI inflows increased. 4. India’s foreign exchange reserves increased enormously. Select the correct answer using the codes given below: (a) 1 and 4 only (b) 2, 3 and 4 only (c) 2 and 3 only (d) 1, 2, 3 and 4 Answer (b)
2. With reference to the Indian economy, consider the following statements: (UPSC CSE, 2022)
1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities. 2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market. 3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars. 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 Answer (b)
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SOLID WASTE MANAGEMENT (SWM)
The Solid Waste Management Rules, 2026, disregard federalism and embody a technocratic vision of environmental governance, insufficiently attentive to ground realities; as framed, they risk producing blurred accountability, unproductive compliance work, and paper reporting rather than cleaner cities and villages
Urban Local Bodies (ULBs) are institutions of local self-governance that manage the affairs of urban areas, such as cities and towns. They play a crucial role in the administration and development of urban areas. ULBs are established to ensure efficient delivery of civic amenities and services to urban residents. Here are the key aspects of Urban Local Bodies:
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Types of Urban Local Bodies:
- Municipal Corporations: These are established in larger urban areas with significant populations and are responsible for providing a wide range of services. They have a Mayor, a municipal commissioner, and elected representatives. Examples include the Municipal Corporation of Greater Mumbai and the Delhi Municipal Corporation.
- Municipal Councils: These are set up in medium-sized urban areas. They provide a narrower range of services compared to municipal corporations and are headed by a Chairperson. Examples include the Mysore City Municipal Council.
- Nagar Panchayats: These are found in smaller urban areas or transitional areas that are in the process of becoming urbanized. They are smaller than municipal councils and serve as a basic unit of local governance.
| Urban Local Bodies (ULBs) levy user fees or SWM cess as per the provisions of Solid Waste Management Rules, 2016. According to these guidelines, ULBs must collect user fees/cess for SWM services provisions provided. ULBs typically charge about ₹30-50 per month as SWM cess, which is collected along with property tax. ULBs are now considering revising these rates and imposing higher charges on bulk waste generators to meet a portion of the costs incurred in providing SWM services |
- Providing Solid Waste Management (SWM) services is a complex and resource-intensive task. Urban Local Bodies (ULBs) typically allocate around 80% of their workforce and up to 50% of their annual budgets to deliver SWM services to city residents.
- In a city like Bangalore, each urban resident generates approximately 0.6 kg of waste per day, amounting to 0.2 tonnes per person annually. Overall, Bangalore produces about 5,000 tonnes of solid waste daily. Managing this volume requires around 5,000 door-to-door waste collection vehicles, 600 compactors, and roughly 20,000 sanitation workers (Paurakarmikas).
- SWM services consist of four main components: collection, transportation, processing, and disposal. ULBs often combine collection and transportation into one package, and processing and disposal into another. Collection and transportation are particularly resource and labor-intensive, consuming about 85-90% of the SWM budget, while only 10-15% is allocated to processing and disposal of waste
Solid Waste Management (SWM) in India involves a systematic approach to managing the collection, transportation, processing, and disposal of waste generated in urban areas. Here is an overview of the SWM mechanism in India:
Regulatory Framework
India's SWM practices are governed by several key regulations:
- Municipal Solid Waste Management Rules, 2016: These rules provide comprehensive guidelines for urban local bodies (ULBs) on managing solid waste, emphasizing segregation at source, decentralized processing, and safe disposal.
- Plastic Waste Management Rules, 2016: These rules regulate the use, manufacture, and recycling of plastic products.
- Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016: These rules address the management and handling of hazardous waste.
Components of SWM
Collection
- Door-to-Door Collection: ULBs often implement door-to-door waste collection systems to ensure all household waste is collected efficiently.
- Segregation at Source: Residents are encouraged to segregate waste into biodegradable (wet) and non-biodegradable (dry) categories.
- Community Bins and Collection Points: Strategically placed bins and collection points are used in areas where door-to-door collection is not feasible.
Transportation
- Primary Collection Vehicles: These include handcarts, auto tippers, and tricycles used for door-to-door collection.
- Secondary Collection Vehicles: Larger vehicles like compactors and trucks transport waste from collection points to processing facilities.
Processing
- Composting: Biodegradable waste is processed into compost, which can be used as organic fertilizer.
- Vermiculture: Organic waste is converted into vermicompost using earthworms.
- Recycling: Dry waste such as plastics, paper, and metals are sorted and sent to recycling units.
Disposal
- Sanitary Landfills: Engineered landfills are designed to safely dispose of residual waste while minimizing environmental impact.
- Waste-to-Energy Plants: These facilities convert non-recyclable waste into energy through incineration or other processes.
- Swachh Bharat Mission (Clean India Mission): Launched in 2014, this mission aims to achieve universal sanitation coverage and promote cleanliness, including effective SWM.
- Smart Cities Mission: Focuses on sustainable and inclusive development, including modernizing urban infrastructure for better SWM.
- Atal Mission for Rejuvenation and Urban Transformation (AMRUT): Aims to provide basic services (e.g., water supply, sewerage) to households and build amenities in cities, promoting sustainable urban development, including SWM
- Solid waste in Indian cities comprises approximately 55-60% wet biodegradable material and 40-45% non-biodegradable material.
- Only about 1-2% of the dry waste is recyclable, with the majority being non-recyclable and non-biodegradable.
- While 55% of the wet waste has the potential to be converted into organic compost or biogas, the actual yield is as low as 10-12%, making these processes financially unfeasible.
- Typically, the operational revenue from waste processing facilities covers only 35-40% of operational expenses, with the remainder subsidized by Urban Local Bodies (ULBs).
- In addition to financial constraints, ULBs encounter several challenges in Solid Waste Management (SWM) services.
- These include managing open dumping sites and drains, preventing littering, dealing with seasonal variations in waste generation, and conducting sweeping operations.
- Disposing of non-compostable and non-recyclable dry waste, such as single-use plastics, textile waste, and inert materials, is costly because these materials must be transported to cement factories or waste-to-energy projects located 400-500 km from cities.
- In large cities like Bangalore, about 15% of the budget is allocated to SWM—around ₹1,643 crore out of a total ₹11,163 crore budget—while the revenue from SWM services is minimal, at approximately ₹20 lakh per year.
- Smaller cities may spend up to 50% of their budgets on SWM but also generate negligible revenue. As a result, ULBs impose an SWM cess to cover a portion of these costs
PUBLIC INTEREST LITIGATION (PIL)
Public Interest Litigation (PIL) covers a wide range of matters that are entertained by courts to address issues affecting the public interest.
Here are some common categories of matters that are often entertained under PIL:
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Environmental Protection: Cases related to pollution control, deforestation, conservation of natural resources, protection of wildlife, and sustainable development.
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Human Rights Violations: Cases involving violations of fundamental rights, such as police brutality, custodial torture, discrimination based on race, gender, or religion, and protection of the rights of marginalized communities.
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Corruption and Governance: PIL can be used to address issues of corruption in government institutions, misuse of public funds, lack of transparency, and accountability in governance.
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Public Health: Matters concerning access to healthcare services, sanitation, vaccination programs, and public health infrastructure.
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Consumer Rights: Cases related to product safety, misleading advertising, unfair trade practices, and protection of consumer rights.
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Education: PIL can address issues related to access to education, quality of education, implementation of government policies in education, and discrimination in educational institutions.
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Social Welfare: Matters concerning welfare schemes for disadvantaged groups, implementation of social welfare programs, and protection of the rights of vulnerable populations such as children, women, and the elderly.
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Urban Development and Planning: Cases related to illegal construction, encroachment on public land, urban sprawl, and planning violations.
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Media Freedom: Cases concerning freedom of speech and expression, censorship, media regulations, and protection of journalists' rights.
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Public Safety and Security: Matters related to disaster management, fire safety, road safety, and measures to ensure public safety and security.
The genesis and evolution of Public Interest Litigation (PIL) in India can be traced back to the 1970s when the Supreme Court of India expanded the scope of locus standi (the right to bring legal action) to allow individuals and organizations to file cases on behalf of those who are unable to approach the court due to social, economic, or other disabilities.
Here are some landmark judgments that played a crucial role in the development of PIL in India:
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S.P. Gupta v. Union of India (1981): This case, commonly known as the "Judges Transfer case," is considered a landmark in the evolution of PIL in India. The Supreme Court held that any member of the public or social action group could approach the court seeking enforcement of public duties. The court also recognized the concept of "epistolary jurisdiction," allowing letters or postcards addressed to the court to be treated as writ petitions.
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Bandhua Mukti Morcha v. Union of India (1984): In this case, the Supreme Court addressed the issue of bonded labor in various industries and held that Article 21 (Right to Life) of the Constitution includes the right to live with dignity. The court issued guidelines for the rehabilitation of bonded laborers and directed the government to take necessary measures for their release and rehabilitation.
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Vishaka v. State of Rajasthan (1997): This case dealt with the issue of sexual harassment at the workplace. The Supreme Court laid down guidelines, known as the Vishaka Guidelines, for preventing and redressing sexual harassment at workplaces. The court held that it is the duty of the employer to provide a safe working environment for women employees.
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MC Mehta v. Union of India (1986): In this case, the Supreme Court addressed the issue of pollution in the Ganga river. The court issued several directions to control pollution and ensure the cleanliness of the river. This case led to the establishment of the National Ganga River Basin Authority (NGRBA) to oversee the conservation and management of the Ganga river.
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M.C. Mehta v. Union of India (1996): This case, commonly known as the "Oleum Gas Leak case," involved a gas leak from a factory in Delhi. The Supreme Court held that the "polluter pays" principle applies, and directed the factory to pay compensation to the victims of the gas leak. The court also laid down guidelines for the handling of hazardous substances to prevent similar incidents in the future
- Traditionally, only aggrieved parties had the standing to approach the court. However, the Supreme Court of India broadened the concept of locus standi to allow any individual or organization to file PIL on behalf of those who are unable to approach the court due to social, economic, or other disabilities. This expansive interpretation increased access to justice for marginalized groups and encouraged the filing of PILs
- The growth of civil society organizations, NGOs, and social activists in India has raised awareness about various social, environmental, and governance issues. These groups play a significant role in initiating PILs and mobilizing public support for legal interventions to address public interest concerns
- The Indian judiciary, particularly the Supreme Court, has shown a proactive approach in addressing socio-economic and environmental issues through PILs. The judiciary's willingness to intervene in matters of public interest and provide remedies has encouraged the filing of PILs by individuals and organizations
- In many cases, PILs are filed when executive or legislative institutions fail to address pressing issues adequately. When there is a perceived lack of action or inefficiency on the part of the government, PILs serve as a mechanism to hold authorities accountable and seek judicial intervention
- The Indian Constitution enshrines principles of social justice, equality, and the protection of fundamental rights. PILs serve as a means to enforce these constitutional mandates and ensure that government actions are consistent with constitutional principles
- The role of the media in highlighting social issues and bringing them to the public's attention cannot be overstated. Media coverage often serves as a catalyst for PILs by generating public interest and support for legal interventions
- The growth of PIL in India is also influenced by global legal trends and precedents. Indian courts often refer to international conventions, treaties, and judgments from other jurisdictions when adjudicating PIL cases, contributing to the evolution of PIL jurisprudence in the country
- PILs can be filed in any court of law, including the Supreme Court, High Courts, and lower courts. The relatively simple procedural requirements and the availability of pro bono legal assistance encourage individuals and organizations to approach the courts with public interest concerns
In India, Public Interest Litigation (PIL) can be filed by any individual, organization, or group of persons acting in the public interest. Unlike traditional litigation where only aggrieved parties have the standing to file cases, PIL allows any concerned citizen or entity to approach the court on behalf of those who may be unable to do so due to social, economic, or other disabilities.
Here are some examples of who can file a PIL:
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Individual Citizens: Any individual citizen who has a genuine concern about an issue affecting the public interest can file a PIL. They do not need to have a direct personal interest in the matter but must demonstrate that the issue has broader societal implications.
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Non-Governmental Organizations (NGOs): NGOs working in areas such as human rights, environmental conservation, consumer protection, and social welfare often file PILs to address systemic issues and advocate for policy changes.
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Social Activists: Social activists who are passionate about specific causes or issues may file PILs to bring attention to violations of rights, corruption, environmental degradation, or other matters of public concern.
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Lawyers and Legal Aid Organizations: Lawyers and legal aid organizations often take up PILs on behalf of marginalized communities or disadvantaged groups who lack access to justice or resources to pursue legal remedies.
As for whom a PIL can be filed against, there are various potential respondents, including:
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Government Authorities: PILs can be filed against government authorities at the central, state, or local levels for their failure to perform their duties, violation of laws, or infringement of fundamental rights.
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Private Entities: PILs can also be filed against private entities, such as corporations, businesses, or individuals, if their actions or policies have a significant impact on public interest or violate legal provisions.
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Public Institutions: PILs can target public institutions like regulatory bodies, educational institutions, or healthcare facilities if they are not fulfilling their mandated roles or if there are systemic issues affecting public welfare.
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Other Entities: PILs can be directed against any entity whose actions or omissions have a bearing on the public interest, including environmental polluters, public utilities, or entities involved in unethical practices
- One of the significant challenges is the filing of frivolous PILs or PILs with mala fide intentions. Some PILs are filed for personal gain, publicity, or to harass opponents rather than addressing genuine public interest concerns. This misuse clogs the judicial system and undermines the credibility of PILs
- There is often a lack of proper screening mechanisms to filter out frivolous or politically motivated PILs at the initial stage. As a result, courts may waste time and resources hearing PILs that do not serve the public interest
- PILs require substantial judicial time and resources, which can strain the already overburdened judicial system. The high volume of PILs, coupled with lengthy court proceedings, may lead to delays in the disposal of cases and affect the timely delivery of justice
- While PIL allows any concerned citizen or organization to approach the court, there can be challenges related to the standing and locus standi of the petitioner. Courts often grapple with determining whether the petitioner has a genuine interest in the matter and whether they are the appropriate party to bring the case
- Although PIL is intended to provide access to justice for marginalized groups, there can still be significant costs associated with legal proceedings, including court fees, lawyer fees, and other expenses. This can deter individuals or organizations with limited resources from filing PILs
- In some cases, PILs may encroach upon the domain of the executive and legislative branches of government, leading to tensions between the judiciary and other arms of the state. While the judiciary plays a crucial role in upholding constitutional values, excessive judicial activism through PILs can disrupt the balance of power between the branches of government
- There are concerns that judicial activism through PILs may lead to judicial overreach, where courts venture into areas that are traditionally within the purview of the executive or legislature. This can raise questions about the separation of powers and the democratic legitimacy of judicial interventions
