GST Reforms Benefits

•  Recent GST rate rationalisation has led to mixed sectoral responses.
• Major beneficiaries: auto, insurance, consumer appliances, pharmaceuticals, renewable energy.
• Discontent from: airlines, edible oil producers, small entrepreneurs, textile sector (for garments >₹2,500).

•  Airlines: Criticism of higher GST on non-economy seats (luxury service burden).
• Vegetable oil producers: Demand resolution of inverted duty structure (raw material taxed more than finished product).
• Fertiliser & man-made textiles: Inverted duty structure corrected.
  Labour charges: GST increased from 12% →
  18%, hurting small entrepreneurs & service sector.

Textile industry:

• Welcomed rationalisation for man-made fibre & cotton.
• Criticised 18% GST on garments >₹2,500, which affects common manCs woollens, traditional clothes, handlooms,
  embroidered wear.

• Positive: GST Compensation Cess removed, rate cuts on cars.
• Entry & mid-segment cars (<₹14 lakh): up to 13 percentage points cut.
• High-end cars (>1200 cc engines): 8–10 percentage points cut.
• Concern: uncertainty about vehicles purchased pre- change but unsold.
• Renewable energy: GST reduced 12% →5% on solar cells & devices, boosting clean energy transition.
• Consumer appliances: Rate cuts expected to stimulate festive demand.

• Initial optimism, but ended nearly flat.
• Sensex rose just 0.2%, reflecting mixed sentiment.

IIT-M TOP NIRF RANKING

•  Launched: 2015, by the Ministry of Education (earlier MHRD).
• Purpose: Ranking of Higher Education Institutions (HEIs) in India.
• Parameters (Overall Category):
  a. Teaching, Learning, and Resources (TLR)
  b. Research and Professional Practice (RP)
  c. Graduation Outcomes (GO)
  d. Outreach and Inclusivity (OI)
  e. Peer Perception (PP) – 10% weightage (criticised).

 IIT Madras:

•  Retained 1st position Overall (7th consecutive year).
• Best Engineering Institute (10th consecutive year).

IISc Bengaluru:

• Universities Category – 1st (10th consecutive year). Research Institutions – 1st (5th consecutive year).
• Research Institutions – 1st (5th consecutive year).

IIM Ahmedabad:

• Best in Management (6th consecutive year).
• AIIMS New Delhi: Best in Medical (8th consecutive year).
• Jamia Hamdard (New Delhi): Best in Pharmacy.
• IIT Roorkee: Best in Architecture & Planning.
• Hindu College (Delhi): Best among Colleges, 2nd consecutive year (replacing Miranda House).
• NLSIU Bengaluru: Best in Law (8th consecutive year).

24 – State Universities
22 – Private Deemed Universities
19 – IITs
9 – Private Universities
8 – NITs
7 – Central Universities
5 – Medical Institutions
4 – IISERs
1 – College
1 – Indian Agriculture Research Institute

• Union Education Minister’s criticism:
• Questioned ‘peer perception’ parameter (10% weightage).
• Suggested ensuring government-funded institutions are not disadvantaged.
• Regional Bias Allegation: State-run institutions claim metros benefit more from peer perception.
• Future Plans:
• Add new parameters (e.g., entrepreneurs created by institutions).
• More data-driven approaches.
• “One Nation, One Data” policy for ranking framework.

ILLEGALLY FELLED TREES WASHED UP BY FLOOD

• SC expressed anguish over illegal felling of Himalayan forests evidenced by visuals of logs floating in floodwaters.
• Warned: “If this goes on, we will be left with no forests.”
• Concerned about repeated landslides, floods, and ecological imbalance in Himalayan States.

• Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Punjab affected by recurrent floods and landslides.
• Forest destruction and unplanned development cited as major triggers.

• Solicitor-General assured immediate discussion with Environment Secretary and Chief Secretaries of affected States.
• SC issued notice to NHAI over tunnels (e.g., 14 tunnels on Chandigarh–Manali route) turning into “death traps” during floods.

GST 2.0 REFORMS BUNDLE OF HAPPINESS

• GST 2.0: New simplified tax rate structure of 5% and 18% announced.
• Effective from the first day of Navratri (symbolic timing with festivals).
• Marketed as a “double dose of support and growth” for the nation.

• Savings for common households: reduction in GST on essential and consumer items.
• Boost to economy: enhanced consumption, ease of doing business, and employment generation.
• Inclusive targeting: poor, neo-middle class, women, students, farmers, and youth highlighted as beneficiaries.

• Earlier (pre-2014, UPA govt): multiple indirect taxes on essentials (cooking items, medicines, agri goods, insurance).
• Now (BJP govt): rationalized GST rates to reduce burden.
• Example:
  A)Cement: 29% ➝ 18%
  B)AC, TV, fans: 31% ➝ 18%
  C)Agricultural items: heavily taxed ➝ 12–14%
  D)Clothes, shoes, gyms, fitness, salons, yoga: cheaper.

• Framed as “next-generation reform” after 2017 GST introduction.
• Positioning GST 2.0 as both: 
• Household relief measure (lower prices).
• Economic stimulus (boost consumption & investment).
• Linked to festive season promises (Deepavali, Chhath, Dhanteras).

(i) Improvement in quality of life.
(ii) Boost to consumption and growth.
(iii) Enhanced ease of doing business.
(iv) Increased investment and employment.
(v) Strengthening cooperative federalism for a developed India.

TRUMP’S TARIFFS: A THREAT TO THE GLOBAL SOUTH

• Current world order marked by economic, geopolitical, and technological disruptions.
• Necessitates strategic recalibration by India to insulate itself and contribute to an equitable multipolar order.

Domestic Politics:

•  Appeals to America’s “silent majority” disillusioned with neoliberal globalisation.
• Pushes xenophobic, protectionist, populist politics instead of structural reform.

Economic Strategy:

• Tariffs & sanctions →70+ nations impacted.
• Coercive protectionism: subsidies, industrial policies, unilateral climate stances.
• Dollar primacy reinforced; hypocrisy in pressuring India while protecting U.S. markets (e.g., dairy, tobacco).

•  Tariffs as leverage in Ukraine crisis and containment of China.
• Bipartisan consensus in U.S. on reversing deindustrialisation and checking China’s rise.

• Namibia: first African nation to adopt India’s Unified Payments Interface (UPI).
• Potential transfer of regulatory frameworks, institutional design, user- centric digital architecture.
• Represents knowledge-driven South-South cooperation

•  Discriminatory Tariffs:
• Target sectors →textiles, jewellery, auto components, metals.
• Strategic Strain:
  Disruption of 25 years of India-U.S. partnership.
• U.S. renewing ties with Pakistan, reluctance in Quad participation, resistance to tech/manufacturing
  cooperation.
• India forced to concede to China to avoid a two-front challenge.

Modi Doctrine Critique:

•  Over-personalised diplomacy, diaspora optics, symbolic prestige →not delivering strategic gains.
• Sacrificed multi-alignment for U.S. tilt →resulted in China-Pakistan “iron-clad alliance”.

• Complied with U.S. demands (oil imports from Iran & Venezuela stopped; cotton duty waiver).

Lessons & Way Forward for India

Defend Sovereignty & National Interest:

• Be assertive with U.S.; avoid compliance without reciprocity.
• Recognise U.S.’s selective leniency toward China.

Strategic Recalibration:

• Revive multi-alignment →balance ties with U.S., China, Russia, Global South.
• Push for multipolar world order and equitable New Economic Deal.

Domestic Reforms for Global Role:

• Address structural weaknesses →low manufacturing share, high unemployment, stagnant private investment,
  weak research.
• Mobilise PSUs strategically (Chinese SOE model).
• Restore trust in economic stakeholders→equitable growth as foundation of strategic influence. India’s economic sectors exposed to U.S. tariffs without reciprocal concessions.

GST RATE CUT IN TIME

Context & Timing

• 56th GST Council Meeting (Sept 3, 2025) – landmark reform.
• Rate cuts follow the income-tax cuts in Budget 2025 →double boost to demand.

Announced by PM in Independence Day speech before Council’s formal deliberation (possible constitutional/federal propriety
question).
Nature of Reforms

• Simplification of slabs: Downward revision across most sectors.
• High-end motorcycles & luxury apparel →
  only categories seeing hikes.
• 40% GST bracket kept narrow →
  prevents inflationary impact.
• Duty inversions removed →
  addresses refund & compliance burden.
• Paperwork eased →towards a simplified GST 2.0.

•  Consumption stimulus →demand revival when exports & private investment are weak.
• Revenue loss estimated at ₹48,000 crore annually (2023–24 data), but likely understated.
•  Boost to “Viksit Bharat 2047” vision → growth-oriented tax structure.

• GST Council as a federal body →States equally responsible (they did not propose cuts earlier).
• No compensation cess retained →Opposition-ruled States opposed, but Centre prioritised rate rationalisation.
• States to depend on their own revenues + recommendations of the 16th Finance Commission for fiscal gap management.

• National Anti-Profiteering Authority (NAA) →needs revival (at least temporarily) to ensure benefits of tax cuts reach consumers.
• GST Council’s efficiency →decisions finalised on Day 1 of a 2-day meet, indicating consensus.

• Demand boost (short term).
• Simplification of structure.
• Federal consensus achieved.

Concerns:

• Long-term revenue sustainability uncertain.
• States’ fiscal autonomy pressures (loss of cess).
• GST still “more complicated than it needs to be.”
• Pre-announcement by PM raises issues of propriety.

PROCESS AS PANISHMENT

 Unlawful Activities (Prevention) Act (UAPA):

•  Section 43D(5) →Bail barred if accusations appear prima facie true.
• SC’s Watali judgment (2019) →Hardened this bar, restricting judicial scrutiny at bail stage.
• Effect →Courts compelled to rely largely on prosecution’s narrative, turning pre-trial detention into de facto punishment.

• 2021 Bail Order (Different Bench):
• Noted state’s attempt to blur distinction between protest and terrorism. Asserted: peaceful protest ≠ terrorist activity.
• 2025 Bail Denial (Current Bench):
  Treated protest-related speech & organisational activity as potential terrorism.
  Justified slow pace of trial as “natural”.
  Effect →Punishes dissent, erodes constitutional liberty.

•  Article 19: Right to free speech & peaceful assembly →diluted under UAPA.
• Article 21: Protection of life & personal liberty →undermined by prolonged incarceration.
• Judicial deference to executive →weakens checks & balances.

•  Section 152 BNS: Vague wording may invite misuse similar to UAPA.
• Broad definitions risk equating dissent with subversion.

•  Risk of criminalising dissent →Shrinking democratic space.
• Judicial passivity →strengthens state power, weakens individual rights.
• Public perception: accused “punished” before trial →erosion of rule of law.

• Justice vs Security Dilemma: Balancing national security with constitutional freedoms.
• Judicial responsibility: Active role needed to prevent misuse of draconian laws.
• Moral hazard: Allowing indefinite incarceration without conviction normalises state overreach.

PM,EU DISCUSS FTA

 India–eU Partnership:

•  Built on trust, shared values, and rules-based order.
• Seen as crucial for fostering global stability and prosperity.

• PM Modi held talks with Ursula von der Leyen (President, european Commission) and Antonio Costa (President, european
  Council).
• Parallel talks: eAM S. Jaishankar with Ukrainian FM Andrii Sybiha.

• India–EU FTA Negotiations:
•  Both sides reaffirmed commitment to conclude negotiations by end of 2025.
• Next India–EU Summit likely in early 2026.
• Trade Chief Maroš Šefčovič expected to visit New Delhi (Commerce Minister Piyush Goyal confirmed).
• Areas of focus: trade, technology, investment, innovation, sustainability, defence, supply chain resilience.

 India–Middle East–Europe Economic Corridor (IMEEC):

•  Key point of discussion; reaffirmed for early implementation.
• Seen as a counterbalance to China’s BRI and important for India–EU connectivity.

 India’s stand:

• Consistent call for peaceful resolution, early end to conflict, and restoration of stability.
• India seeks to play role as an authoritative voice for peace.

India–eU Partnership:

•  Built on trust, shared values, and rules-based order.
• Seen as crucial for fostering global stability and prosperity.

High-Level Conversations:

• PM Modi held talks with Ursula von der Leyen (President, european Commission) and Antonio Costa (President, european
  Council).
• Parallel talks: eAM S. Jaishankar with Ukrainian FM Andrii Sybiha.

Free Trade Agreement (FTA)

India–EU FTA Negotiations:

• Both sides reaffirmed commitment to conclude negotiations by end of 2025.
• Next India–EU Summit likely in early 2026.
• Trade Chief Maroš Šefčovič expected to visit New Delhi (Commerce Minister Piyush Goyal confirmed).

Connectivity: IMEEC Corridor 

India–Middle East–Europe Economic Corridor (IMEEC):

• Key point of discussion; reaffirmed for early implementation.
• Seen as a counterbalance to China’s BRI and important for India–EU connectivity.

Ukraine Conflict and India’s Position

India’s stand:

• Consistent call for peaceful resolution, early end to conflict, and restoration of stability.

India seeks to play role as an authoritative voice for peace.