28 February 2026

• Government released Second Advance Estimates of GDP for FY 2025–26.
• Real GDP growth projected at 7.6% (higher than earlier 7.4%).
• Base year revised to 2022–23 (earlier 2011–12).  Nominal GDP for 2023–26 revised downward, impacting fiscal ratios.
• FY26 size of economy estimated at ₹345.47 lakh crore (lower than earlier estimate).

Important Facts

1. Growth Revisions

• 2023–24: Revised to 7.2% (earlier 9.2%).
• 2024–25: Revised to 7.1% (earlier 6.5%).  
• FY26: 7.6% (Second Advance Estimate).

2. Sectoral Growth (FY26)

• Primary Sector: 2.8% (Agriculture slowdown to 2.5%)
• Secondary Sector: 9.5%
  • Manufacturing: 12.5%
• Tertiary Sector: 8.9%

3. Fiscal Implications

• Lower nominal GDP leads to higher:
  • Fiscal Deficit-to-GDP ratio
  • Debt-to-GDP ratio
• Estimated increase in deficit ratio: approximately 15–20 basis points.

Static Concepts for Prelims

• GDP at Market Price = GVA + Net Indirect Taxes  Real GDP:
• Measured at constant prices (inflation adjusted)
• Nominal GDP: Measured at current price
• Advance Estimates released by NSO:
  • First Advance Estimate: January
  • Second Advance Estimate: February
• Base Year Revision Purpose:
  • Reflect structural changes in the economy
  • Update price weights
  • Improve data coverage (GST, MCA-21 database)

Constitutional & Policy Linkages

• FRBM Act, 2003:
  • Fiscal deficit targets  Debt sustainability
  • Fiscal deficit expressed as percentage of GDP.
• Debt sustainability depends on:
  • Growth rate
  • Interest rate
  • Primary deficit

Mains Angle

• Importance of Base Year Revision
  • Improves statistical accuracy and credibility.
  • Captures formalisation and digital economy trends.
  • Aligns with international standards such as UN System of National Accounts (SNA 2008).
• Concerns
  • Downward revision increases fiscal ratios.
  • May affect fiscal consolidation roadmap.
  • Primary sector slowdown may impact rural income and demand.

Way Forward

• Strengthen agricultural productivity and climate resilience.
• Improve tax buoyancy to maintain fiscal discipline.
• Continue capital expenditure-led growth.
• Ensure transparency in statistical methodology.
• Maintain balance between growth and fiscal consolidation.

SC: JUDGES WILL NOT BE INFLUENCED

• The Supreme Court addressed concerns regarding the Special Intensive Revision (SIR) of electoral rolls in West Bengal.
• Judicial officers were deployed for verification of claims/objections of excluded voters.
• Allegations were raised that the Election Commission of India (ECI) training module might influence judicial officers.
• The Court clarified:
  • ECI can impart procedural training.
  • Documents recognized in Supreme Court orders must be accepted.
  • ECI cannot override judicial directions.
• Court directed continuous publication of supplementary voter lists until nomination for Assembly elections.

Key Constitutional & Legal Provisions

• Article 324 – Superintendence, direction and control of elections vested in ECI.
• Article 326 – Elections based on adult suffrage.  
• Representation of the People Act, 1950 –Preparation and revision of electoral rolls.  
• Representation of the People Act, 1951 – Conduct of elections.
• Judicial Review – Basic Structure (Kesavananda Bharati, 1973).
• Article 329(b) – Bar on judicial interference in electoral matters once election process begins (except through election petitions).

Governance & Institutional Issues

• Balance between ECI’s administrative authority and Judiciary’s constitutional supremacy.
• Deployment of judicial officers in non-judicial functions.
• Transparency in electoral roll verification.
• Ensuring non-discretionary acceptance of documents as per court directions.
• Maintaining free and fair elections (Basic Structure doctrine).

Static Concepts Linked

• Independence of constitutional bodies.  Separation of powers.
• Electoral integrity and procedural fairness.  
• Natural justice in administrative processes.  
• Role of supplementary electoral rolls.

Analytical Points

• Positives
  • Reinforces judicial supremacy in constitutional interpretation.
  • Protects voters against arbitrary exclusion.
  • Enhances transparency through continuous publication of supplementary lists.
  • Strengthens procedural safeguards in electoral roll revision.
• Concerns
  • Judicial officers performing executive verification tasks.
  • Potential federal friction between State government and ECI.
  • Risk of politicisation of electoral roll verification.
  • Administrative burden during election year.

Way Forward

• Clear Standard Operating Procedures aligning ECI guidelines with Supreme Court orders.
• Public disclosure of admissible documents.
• Independent grievance redressal mechanism.
• Strengthening digital verification systems with audit trails.
• Safeguarding judicial capacity from diversion.

KERALA PARADOX, GLOBAL VISION

• Kerala’s economy has historically depended heavily on international remittances, particularly from Gulf countries (Kerala Migration Survey – Centre for Development Studies).
• Remittances are estimated at around ₹1–1.5 lakh crore annually and form nearly 20–25% of State income (Kerala Economic Review).
• Recent policy discussions emphasize shifting towards a knowledge-based, innovation-driven economy focusing on biotechnology, marine economy, space-tech, fintech, and high-value agriculture.
• Commissioning of the Vizhinjam International Seaport and expansion of ISRO-linked institutions like Vikram Sarabhai Space Centre strengthen prospects for logistics and space- sector growth.
• Kerala has the highest proportion of elderly population among Indian States (Census projections; MoHFW data), indicating advanced demographic transition.
• The State lies in the ecologically fragile Western Ghats region (UNESCO World Heritage Site), necessitating sustainable development strategies.

Key Points

• Literacy Rate: 96%+ (Census 2011; NFHS-5 indicators).
• High Human Development Index (NITI Aayog SDG India Index).
• Population Density: ~860+ persons per sq km (Census 2011).
• Biodiversity: Western Ghats hosts ~5,600+ species of flowering plants (State Biodiversity Board data).
• Coastline: ~590 km, offering Blue Economy potential. Space Sector: ISRO presence; private participation enabled under IN-SPACe reforms (2020) and Indian Space Policy 2023.
• Health Infrastructure: Strong public health model; National Programme for Health Care of the Elderly applicable due to ageing trend.
• Agriculture: GI-tagged Pokkali rice; potential for protected cultivation under Mission for Integrated Development of Horticulture (MIDH).
• Energy: Scope under National Green Hydrogen Mission (2023) and rooftop solar (MNRE).

Static Linkages

• Demographic transition and dependency ratio (NCERT Population Chapter; Economic Survey).
• Federal structure: State role in industrial development (Seventh Schedule – State & Concurrent Lists).
• Sagarmala Programme for port-led development.
• Biological Diversity Act, 2002.
• FRBM Act, 2003 (fiscal constraints on States).  National Policy on Electronics, 2019.
• National Green Hydrogen Mission, 2023.
• IN-SPACe and space sector liberalization reforms.

Critical Analysis

• Advantages
  • Strong human capital base.
  • Large global diaspora network for FDI and knowledge transfer.
  • Sustainable growth aligned with SDGs.
  • Diversification reduces vulnerability to Gulf economic shocks.
• Challenges
  • Fiscal stress due to high welfare expenditure and FRBM limits.
  • Land scarcity and high population density.
  • Climate risks: floods and landslides (Western Ghats sensitivity; Gadgil and Kasturirangan reports).
  • Limited heavy industrial base.
  • Regulatory and labour-related bottlenecks.

Way Forward

• Develop innovation clusters in biotech, marine sciences, med-tech, and space-tech.
• Promote regulatory sandboxes for fintech and health- tech.
• Strengthen public-private partnerships.
• Invest in climate-resilient infrastructure and disaster management technology exports.
• Leverage diaspora bonds and green finance instruments.
• Integrate traditional medicine with evidence-based research under AYUSH.
• Promote vertical farming and high-value spice processing.
• Develop Vizhinjam into a value-addition logistics and transshipment hub.

INTERNATIONAL LAW STILL RESILIENT

• Rising tensions between the United States and Iran involving threats of use of force.
• Continuing global conflicts such as:
  • Russian invasion of Ukraine
  • Conflict in Gaza Strip
• Increasing unilateral military actions by major powers.
• Debate among scholars on whether international law, especially the prohibition on use of force under the UN Charter, is weakening.
• At the same time, new treaties like the High Seas Treaty and ongoing Pandemic Agreement negotiations show that international law- making continues.

Core Concept: Prohibition on Use of Force

• Article 2(4) of the UN Charter
  • Prohibits the threat or use of force.
  • Protects territorial integrity and political independence of states.

Exceptions:

1. Self-defence – Article
2. Action authorised by the UN Security Council under Chapter VII.

This is a cornerstone of the post-1945 international legal order.

Has International Law Collapsed?

• Historical Violations
  • Soviet intervention in Afghanistan (1979)  
  • US invasion of Iraq (2003)
  • NATO intervention in Libya (2011)  
  • Russian invasion of Ukraine
• Despite repeated violations, Article 2(4) continues to exist as a binding legal norm 

Important analytical point

• Violation of law does not mean extinction of law.
• Law continues to serve as a standard to evaluate state conduct.

International Law Beyond Security Issues

International law is not limited to the UN Charter. It regulates:

• International trade (WTO system)  
• Climate change (Paris Agreement)  
• Law of the Sea (UNCLOS)
• Human rights conventions (ICCPR, ICESCR)
• Marine biodiversity (High Seas Treaty) Judicialisation of International Relations  
• International Court of Justice
• International Criminal Court

Numerous global and regional courts continue to resolve disputes peacefully.

Static Linkages for exam

• Principle of sovereign equality of states.
• Collective security system under Chapter VII of the UN Charter.
• Customary international law and opinio juris.
• Pacta sunt servanda (agreements must be kept).  
• Responsibility to Protect (R2P).
• Article 51(c) of the Indian Constitution – Promotion of respect for international law.
• Article 253 – Parliament’s power to implement international treaties.

Critical Analysis

• Challenges
• Rise of unilateralism and populist nationalism.  
• UNSC veto politics leading to paralysis.
• Weak enforcement mechanisms in international law. 
•  Selective compliance by powerful states.

Why the “Death of International Law” Argument is Misleading

• States still justify actions in legal terms.  
• Legal norms shape diplomatic discourse.
• International trade, aviation, maritime navigation depend on legal predictability.
• Smaller states rely on international law for protection.

Way Forward

• Reform of the UN Security Council.
• Strengthening multilateral institutions.
• Clear norms for cyber warfare and emerging technologies.
• Greater representation of Global South countries in global governance.
• India to promote a rule-based international order while maintaining strategic autonomy.

• India AI Impact Summit 2026 was held in New Delhi to promote Artificial Intelligence ecosystem and innovation.
• A protest was staged by activists of the Indian Youth Congress against the India–U.S. interim trade deal.
• The Delhi Police registered multiple serious charges including rioting, unlawful assembly, criminal conspiracy, and promoting enmity.
• Inter-state friction reportedly occurred between Delhi and Himachal Pradesh police.
• The episode triggered debate over criminalisation of peaceful dissent and proportionality of police action.

Key Points

• Article 19(1)(a) – Freedom of speech and expression.
• Article 19(1)(b) – Right to assemble peacefully without arms.
• Article 19(2) & 19(3) – Reasonable restrictions (sovereignty, public order, security of state, etc.).
• Public Order – State List (List II, Seventh Schedule).
• Police is a State subject.
• Doctrine of Proportionality – Applied by Supreme Court to test validity of restrictions on Fundamental Rights.
• Democracy and Rule of Law – Part of Basic Structure doctrine.

Static Linkages

• Basic Structure doctrine (Kesavananda Bharati case).
• Right to Protest recognised but subject to regulation (Supreme Court jurisprudence).
• Federalism – Division of legislative & executive powers (Articles 245–246).
• Criminal law & maintenance of public order – State domain.
• Separation of powers & judicial review.

Critical Issues

• Criminalisation of Dissent
  • Peaceful dissent is integral to democracy.
  • Excessive charges may create chilling effect on free speech.
• Proportionality in Police Action
  • Restrictions must be reasonable and proportionate.
  • Preventive policing vs suppression of democratic rights.
• Federal Concerns
  • Inter-state police coordination challenges.
  • Political overtones affecting administrative functioning.
• Technology & Governance
  • Politicisation of tech summits undermines credibility.
  • Need for transparent innovation ecosystem.

Way Forward

• Clear SOPs for handling peaceful protests.
• Strict adherence to doctrine of proportionality.
• Judicial scrutiny of FIRs involving dissent.
• Strengthening federal coordination mechanisms.
• Promote constitutional literacy among enforcement agencies.
• Depoliticise scientific and technological platforms.