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04 December 2025

Govt. Withdraws Sanchar Saathi Order | Environmental Rules Weakened | Climate Breaks Urban Metrics | Sting In The Tail | Taking The Leap | Rupee Hits 90 Amid US Deal Woes | A Seven-Point Climate Plan | Don’t Rush to Prop Up Rupee | Rupee Breaches 90: Why the Slide

GOVT. WITHDRAWS SANCHAR SAATHI ORDER

KEY HIGHLIGHTS

Context of the News

  • DoT withdrew its directive requiring smartphone makers to pre-install Sanchar Saathi from 2025 after strong public and industry pushback.
  • The rollback followed a 10× surge in voluntary app downloads (6 lakh in one day).
  • The mandate was one of three orders issued under amended Telecom Cyber Security Rules, 2024, expanding DoT oversight to TIUEs (entities using telecom identifiers).
  • Other directives included restricting messaging apps when the registered SIM isn’t in the device and forcing frequent logout of web-linked accounts.

KEY POINTS

  • Original order leaked, not publicly released, triggering controversy over privacy and state overreach.
  • DoT highlighted app benefits:
    • 1.5 crore fake mobile connections disconnected,
    • 26 lakh lost phones traced.
  • Messaging platforms must:
    • Ensure account access only if SIM is present.
    • Auto-logout Web sessions every 6 hours.
  • Platforms must integrate DoT’s Fraud Risk Indicator and blacklist to deactivate high-risk accounts.
  • Orders issued by DoT’s AI & Digital Intelligence Unit.

STATIC LINKAGES

  • Article 21 & Right to Privacy; proportionality doctrine (Puttaswamy, 2017).
  • Union List Entry 31: Centre’s power over telecommunications.
  • IT Act 2000: cybersecurity & platform obligations.
  • Principles of consent, data minimisation, and due process.

CRITICAL ANALYSIS

  • Pros
    • Stronger defence against SIM fraud, spoofing, and financial scams.
    • Increased voluntary adoption shows rising citizen trust.
    • Fraud databases enhance cross-platform detection.
  • Cons
    • Mandatory installation risked privacy violations.
    • Lack of transparency around orders reduces accountability.
    • Executive overreach concerns due to DoT’s expanded TIUE powers.
    • Forced logouts disrupt users and affect business use.
    • Automatic account deactivation challenges due process norms.

WAY FORWARD

  • Publish directives transparently and seek consultation.
  • Ensure consent-based adoption and privacy-by- design.
  • Create appeal mechanisms before account deactivation.
  • Strengthen statutory backing for cybersecurity governance.
  • Expand digital literacy to promote voluntary uptake.

ENVIRONMENTAL RULES WEAKENED

KEY HIGHLIGHTS

Context of the News

  • On 18 Nov 2025, the Supreme Court (2:1 majority) recalled its May 2025 judgment that had struck down ex post facto Environmental Clearances (ECs).
  • Majority held that retrospective ECs may serve public interest by preventing demolition/closure of completed projects.
  • Justice Ujjal Bhuyan’s dissent criticised this as circular logic rewarding illegality.
  • The issue is now reopened for fresh hearing.

Key Points

  • Review judgment prioritises economic expediency over strict environmental compliance.
  • May 2025 judgment had invalidated MoEFCC 2017 notification and 2021 SOP, both allowing post-facto ECs.
  • Earlier rulings (Common Cause 2017, M.C. Mehta) affirmed that EC must be prior, as EIA ensures prevention—not validation—of harm.
  • Dissent warns that violations becoming “grounds for regularisation” destroys deterrence and hollows out the EIA regime.

Static Linkages

  • Article 21 → Right to a clean and healthy environment.
  • EPA 1986 → Legal basis for EIA notifications.
  • Precautionary Principle, Polluter Pays → Recognised in Indian jurisprudence.
  • Stockholm (1972) → Foundation of India’s modern environmental framework.
  • Judicial Review & Article 137 → SC’s power to review judgments.

Critical Analysis

  • Pros
    • Prevents economic loss from stopping/demolishing completed projects.
    • Provides flexibility where procedural lapses are not environmentally harmful.
  • Cons
    • Undermines rule of law and weakens deterrence.
    • Erodes precautionary principle and meaningful public participation.
    • Encourages project developers to bypass EC, expecting later regularisation.
    • Dilutes environmental safeguards despite rising climate risks.

Way Forward

  • Limit retrospective ECs to rare, clearly-defined exceptions.
  • Strong penalties for illegal construction to remove incentives.
  • Strengthen EIA via transparent audits and community participation.
  • Digital monitoring (GIS, compliance dashboards).
  • Legislative clarification on boundaries of retrospective ECs.

CLIMATE BREAKS URBAN METRICS

KEY HIGHLIGHTS
Context of the News
  • Recent extreme floods in Sri Lanka, Indonesia, Thailand, Philippines exposed how global city indices fail to capture climate resilience.
  • Secondary cities like Hat Yai, Cebu, Colombo’s hinterlands suffered heavy casualties despite being key economic nodes.
  • Highlights mismatch between what indices measure and what actually protects urban residents in a climate-stressed world.

Key Points

  • Cyclone-induced rains triggered hundreds of deaths and massive displacement across Asia.
  • Major indices (CPI, Global Liveability, Resilience Index) underweight drainage, slope stability, informal housing safety.
  • High-risk secondary cities often excluded from rankings → weak visibility and low investment.
  • Indices influence capital allocation, prioritising showcase infrastructure over risk-mitigation and maintenance.
  • City-wide averages mask deep inequities in exposure and adaptive capacity.

Static Linkages

  • NCERT: Urbanisation challenges, unregulated peri-urban growth.
  • DMA 2005: Institutional mechanisms for risk management.
  • Sendai Framework: Exposure reduction, early warning, resilience planning.
  • NITI Aayog Urban Planning Reforms (2021): Drainage, risk mapping, municipal capacity deficits.
  • Precautionary Principle & Sustainable Development (SC jurisprudence).

Critical Analysis

  • Strengths
    • Multi-dimensional metrics; fosters benchmarking and governance transparency.
  • Limitations
    • Climate-blind metrics: no assessment of drainage, landslide risk, wetland loss.
    • Exclusion bias: many vulnerable towns not assessed.
    • Investment distortion: incentives favour optics over resilience.
    • Equity blindspot: averages hide vulnerability of informal settlements.
    • Weak municipal capacities in planning and enforcement.
  • Stakeholders
    • Governments: prefer visible projects.
    • Poor communities: face highest exposure.  
    • Investors: rely on incomplete risk signals.
    • International agencies: emphasise plans/indicators over on-ground action.

Way Forward

  • Integrate climate-risk metrics (drainage load, hazard maps) into indices.
  • Use ward-level vulnerability assessments.
  • Include secondary and peri-urban towns in evaluations.
  • Incentivise maintenance, building-code enforcement, desilting.
  • Expand resilience financing (bonds, green funds).
  • Build municipal technical capacity in planning, GIS, hydrology.
  • Promote nature-based solutions and risk- sensitive land-use.
STING IN THE TAIL
KEY HIGHLIGHTS
Context of the News
  • Cyclone Ditwah stalled over Sri Lanka, causing major flooding (14 lakh affected; 474 deaths).
  • Re-intensified over Bay of Bengal and delivered heavy rain to TN–AP.
  • By Dec 1, its remnant deep depression near Chennai dropped ~18 cm in 24 hours, triggering city-wide inundation.
  • Despite drain upgrades post-2015 & 2023 floods, several neighbourhoods remained waterlogged.
  • Key vulnerabilities: flat terrain, rising paved areas, weakened rivers (encroachments/desilting gaps), and incomplete drainage links.
  • The 600-page Thiruppugazh Committee Report on flood mitigation remains unpublished.

Key Points

  •  ₹5,200 crore spent; 1,100 km drains added, ~75% complete.
  • Network designed for short intense bursts—not prolonged rainfall from slow cyclones.
  • Rivers (Cooum, Adyar, Kosasthalaiyar) draining from upstream basins cause quick urban flooding when catchments saturate.
  • Reverse flow forced GCC to shut drains and rely on pumps.
  • Existing flood maps/elevation models not integrated into planning or enforcement.

Static Linkages

  • Role of wetlands/floodplains as natural buffers.
  • Impact of urbanisation on runoff and drainage.
  • Municipal duties (12th Schedule): water supply, drainage, environmental protection.
  • NDMA’s Urban Flooding Guidelines: basin-based management, real-time modelling.
  • Backwater effect and basic hydrological concepts.

Critical Analysis

  • Strengths
    • Major investments in drainage and basin planning.
    • Efforts toward Integrated Urban Flood Management.
  • Persistent Gaps
    • Lack of transparency: Thiruppugazh Report not public; no unified implementation roadmap.
    • Encroachments and poor desilting shrink river capacity.
    • Partially upgraded drains create chokepoints.
    • Scientific tools (hazard maps, elevation data) not used for zoning or approvals.
    • Climate-induced slow-moving cyclones outpace existing design norms.
  • Stakeholder Concerns
    • Residents face disruption and losses.
    • State & ULBs face capacity constraints and rising expectations.
    • Environmental groups highlight wetland destruction.

Way Forward

  • Release Thiruppugazh Report and publish a time- bound implementation tracker.
  • Make hazard maps public and legally binding for planning.
  • Establish basin-level flood management coordination.
  • Remove encroachments; restore wetlands as retention buffers.
  • Deploy smart pumps, tidal gates, anti-backflow valves.
  • Strengthen ULB finances and maintenance systems.
  • Expand nature-based solutions and real-time modelling.

TAKING THE LEAP

KEY HIGHLIGHTS

Context of the News

  • Supreme Court is hearing petitions challenging discriminatory provisions against persons affected by leprosy.
  • NHRC informed the Court that 97 Central and State laws still contain discriminatory clauses.
  • These laws restrict access to public transport, public spaces, employment, business, and even electoral participation.
  • India accounts for ~57% of global leprosy cases, despite the disease being curable and non-infectious after treatment.
  • Court has directed all States/UTs to submit reports on steps taken to amend such laws.
  • NHRC (since 2021) recommended legal reform, rehabilitation, early detection, and replacing derogatory terminology.

Key Points

  • Leprosy is fully curable through WHO- recommended MDT, provided free under NLEP.
  • Existing laws reflect outdated beliefs and deny patients equality and dignity.
  • NHRC suggestions:
    • Remove derogatory terms and discriminatory clauses
    • Promote iris-based Aadhaar enrolment (due to fingerprint damage)
    • Ensure rehabilitation and social integration.
    • Supreme Court emphasizes eliminating stigma rooted in misinformation and historic fear.

Static Linkages

  • Fundamental Rights: equality, non- discrimination, dignity.
  • DPSPs: improvement of public health and welfare of vulnerable groups.
  • Role of statutory bodies (NHRC) in rights protection.
  • Disease control systems and public health administration.
  • Epidemiology: infectious diseases and social determinants of health.

Critical Analysis

  • Positives
    • SC push accelerates long-pending legal reforms.
    • Corrects structural discrimination and protects constitutional rights.
    • Reinforces scientific understanding that treated leprosy is not infectious.
    • Improves access to welfare through Aadhaar inclusion.
  • Challenges
    • Amending 97 different laws requires coordinated Centre–State action.
    • Deep-rooted stigma persists despite medical advances.
    • Weak rehabilitation mechanisms in several States.
    • Low awareness among officials and communities about curability.
  • Stakeholders
    • Patients: seek dignity, social acceptance, opportunities.
    • Governments: face administrative and legislative coordination challenges.
    • NHRC/Civil society: push for reforms and awareness.

Way Forward

  • Repeal/amend all discriminatory provisions swiftly.
  • Enact a unified anti-discrimination law for persons affected by leprosy.
  • Strengthen early detection, MDT access, and rehabilitation under NLEP.
  • Promote nationwide awareness on curability and non-infectious nature.
  • Ensure accessible Aadhaar enrolment through iris scanners.
  • Train frontline officials to reduce stigma and support reintegration.

RUPEE HITS 90 AMID US DEAL WOES

KEY HIGHLIGHTS

Context of the News

  • Rupee fell past ₹90 per USD for the first time, closing at ₹90.19 on Dec 3, 2025.
  • Depreciation driven by FPI sell-off, India–US trade deal uncertainty, and high importer dollar demand.
  • RBI intervened to limit volatility but avoided defending any specific level.
  • Forward premiums surged, showing higher hedging costs and expectations of continued weakness.

Key Points

  • Rupee down 5.35% in 2025, vs 2.88% (2024) and 0.57% (2023).
  • FPIs sold ₹1.52 lakh crore equities in 2025;₹8,369 crore in first three days of December.
  • Stop-loss triggers above 90 deepened the fall.  
  • One-year forward premium increased 12+ bps in three sessions; one-month tenor at 7-month high.
  • India–US 10-year yield spread widened to ~250 bps, signalling higher currency risk.
  • REER model suggests 2–3% annual depreciation may be needed to retain export competitiveness.

Static Linkages

  • India follows a managed float exchange rate regime.
  • Exchange rate influenced by: capital flows, inflation differential, interest rate spreads, current account balance.
  • Depreciation effects: boosts exports marginally but raises imported inflation.
  • RBI tools: spot intervention, forwards, swaps, and liquidity management.
  • Yield spread indicates relative attractiveness and risk perception of domestic assets.

Critical Analysis

  • Pros
    • Slight improvement in export competitiveness.  
    • Market-led adjustment reflects true demand– supply conditions.
  • Cons / Risks
    • Higher imported inflation, especially crude and electronics.
    • Costlier hedging and pressure on corporate margins.
    • Weaker FPI sentiment due to elevated currency risk.
    • Widened yield spread raises sovereign risk premium.
  • Stakeholders
    • RBI: Balances stability with reserve preservation.
    • Exporters: Gain mildly.
    • Importers/MSMEs: Face higher input costs.
    • Investors: Turn cautious amid global uncertainty.

Way Forward

  • Diversify exports; move to higher-value products.
  • Strengthen domestic capital markets to reduce dependence on FPIs.
  • Promote local currency invoicing in trade.
  • Build energy security via renewables.
  • Maintain strong forex buffers and calibrated RBI intervention.
  • Provide clarity on trade negotiations to ease uncertainty.

A SEVEN-POINT CLIMATE PLAN

KEY HIGHLIGHTS

Context of the News

  • India will soon submit its updated NDCs up to 2035 under the Paris Agreement.
  • Existing NDC goals—45% emissions intensity reduction by 2030 and 50% non-fossil electricity capacity—are on track.
  • A seven-point strategy has been proposed to guide India’s transition toward Net Zero by 2070.

Key Points

  • Higher Emission Intensity Target
  • New goal: 65% emissions intensity reduction by 2035 (2005 baseline).
  • India’s total emissions expected to peak around 2035, strengthening its climate credibility. 80% Non-Fossil Electricity Capacity
  • Total capacity to rise to ~1,600 GW by 2035; 1,200 GW from solar + wind.
  • Storage to scale from <1 GW to ~170 GW.  Major grid expansion required.
  • Phasing Down Unabated Coal
  • No new coal plants after 2030 without CCS.
  • Coal capacity to peak at 293 GW (2030) → decline to 230 GW (2040).
  • Coal states need just transition plans— retraining, diversification, social protection.
  • Faster Electrification of Transport
  • Indian Railways to achieve near-100% electric traction by 2035.
  • 50% electric buses across cities; 100% electric 3-wheelers possible soon.
  • EV norms for other categories after industry consultation
  • Carbon Credit Trading Scheme (CCTS)
  • Operational from April 2026; to be included in NDCs.
  • Review after two years; possible expansion to power and medium industries.
  • Emission targets must tighten progressively.
  • Electricity Pricing & Market Reforms
  • High RE share demands dynamic pricing:
    • Shift from PPAs → exchange-based trading  
    • Time-of-day tariffs for consumers
  • Public acceptance and grid flexibility will be crucial.
  • Financing Requirements
  • Annual investment: $62 billion (0.84% of GDP) during 2026–2035.
  • 80% domestic, 20% international capital.
  • MDBs must expand risk-mitigation lending.
  • A strong growth outlook improves foreign capital inflow.

Static Linkages

  • Paris Agreement: NDCs, no binding coal phase-out.
  • Energy Conservation Act 2022: Legal basis for carbon markets.
  • Just Transition: ILO-backed framework for coal- region shift.
  • Electricity Act 2003: Foundation for open-access and competitive markets.
  • Grid integration: Stability, variability, storage needs.

Critical Analysis

  • Pros:
    • Strengthens climate leadership, boosts investor confidence.
    • Cuts pollution & fossil imports; aligns with global technology trends.
  • Challenges:
    • Large financing gap; uneven state readiness.  Grid instability risk with high RE share.
    • Social costs of coal transition; consumer resistance to tariff changes.
  • Stakeholders:
    • Government—policy clarity
    • Industry—investment certainty  
    • States—revenue & job concerns
    • Citizens—cleaner air, tariff reforms
    • Global community—expects stronger mitigation

Way Forward

  • Implement just transition policy for coal states.  Accelerate battery & storage ecosystem.
  • Strengthen national grid corridors & forecasting tools.
  • Expand green finance, sovereign bonds, MDB- backed risk tools.
  • Revive PM’s Council on Climate Change for coordination.

DON’T RUSH TO PROP UP RUPEE

KEY HIGHLIGHTS

Context of the News

  • Indian rupee fell past 90 per USD, declining over 6% this year.
  • Driven by a wider trade deficit, FPI outflows, and uncertainty over the India–US trade deal.
  • Merchandise exports fell 12% in October; gold imports surged from USD 4.9 bn → USD 14.7 bn, widening the trade deficit to USD 41.7 bn.
  • FPIs withdrew USD 17 bn; forex reserves dipped USD 6.4 bn in H1.
  • Debate grows on whether RBI should intervene aggressively or allow calibrated depreciation.

Key Points

  • Exchange rate acts as a shock absorber; defending a level is counterproductive.
  • Weak rupee improves export competitiveness during global slowdown.
  • Very low inflation (CPI 0.25%) reduces concerns of imported inflation.
  • RBI’s role is to manage volatility, not defend a fixed rate.
  • Capital outflows + rising imports continue pressure on reserves.

Static Linkages

  • India follows a managed float regime.
  • BoP framework: trade deficit + capital flows determine currency movement.
  • Marshall–Lerner condition & J-curve explain depreciation–trade balance dynamics.
  • RBI uses OMO, LAF, CRR/SLR to balance liquidity while managing volatility.
  • Imported inflation pass-through remains weak when global prices soften.

Critical Analysis

  • Pros
    • Enhances export competitiveness.  Helps correct external imbalances.
    • Reduces excessive reliance on reserves.
  • Cons
    •   May raise import costs (oil, electronics).
    • Increases external debt servicing burden.
    • Disorderly depreciation can hurt investor sentiment.
  • Challenges
    • High import dependence (gold, energy).
    • Sustained FPI outflows amid global tightening.  
    • Structural weaknesses in export sectors.

Way Forward

  • Speed up trade agreements to boost market access.
  • Reduce import dependency via domestic manufacturing (PLI).
  • Strengthen export diversification and logistics efficiency.
  • Maintain flexible exchange rate, intervene only to curb volatility.
  • Build stable long-term capital flows (FDI over FPI).

RUPEE BREACHES 90: WHY THE SLIDE

KEY HIGHLIGHTS
Context of the News
  • Rupee fell below ₹90/USD, despite benign macro indicators (soft crude, <1% inflation, 8.2% GDP growth).
  • Pressure driven by widening trade deficit, heavy FPI outflows, surging gold imports, and delay in India–US trade deal.
  • RBI letting rupee adjust gradually amid US tariffs and global uncertainty.

Key Points

  • Exports down 11.8% (Oct), hitting $34.4 bn; imports up 16.6% to $76.1 bn.
  • Gold imports tripled to $14.7 bn; non-oil exports contracted across major sectors.
  • FPIs withdrew ₹1.52 lakh crore in 2025; India seen as a liquidity source.
  • Forex reserves fell $12.1 bn (Sep–Nov) to $688 bn; FCA declined $21.2 bn.
  • RBI intervention muted; rupee near undervalued REER; conserving reserves.
  • Market sentiment weighed down by US trade deal delay and speculative gold demand.

Static Linkages

  • Determinants of exchange rate: forex demand– supply, capital flows, trade balance.
  • BoP structure: CAD influenced by gold/oil imports; capital account reflects FPI flows.
  • RBI forex tools: spot/forward operations affect reserves & domestic liquidity.
  • Gold imports → higher CAD (Economic Survey).  Tariffs alter export competitiveness.

Critical Analysis

  • Pros
    • Depreciation boosts export competitiveness.
    • Limited RBI intervention preserves reserve adequacy.
    • Soft crude limits imported inflation.
  • Cons
    • Weak exports expose structural issues.
    • Gold import spike worsens CAD and volatility.
    • FPI outflows weaken markets and rupee.
    • Delay in US deal adds policy uncertainty.
  • Stakeholders
    • Exporters gain; importers face cost pressures.
    • RBI balances stability vs. reserves.
    • Govt faces pressure on trade strategy.

Way Forward

  • Conclude India–US trade deal quickly.
  • Curb speculative gold demand via digital/monetisation schemes.
  • Strengthen manufacturing competitiveness & PLIs.
  • Deepen domestic capital markets to reduce FPI dependence.
  • RBI to maintain calibrated intervention to avoid disorderly volatility.