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
- 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
- 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
- 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
- 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.