SC Tells EC Feed Fround Facts | India-Oman Pact Boosts Trade | SC Okays Kolhapur HC Bench | Rural Lifetimes And Directives | Bold Step for Nuclear Goals | Temporary Relief | FM tables Securities Code Bill | MGNREGA: Ground Slipping Away | Delhi Air Needs Local Plan | RBI Shoring Rupee? Let It Be
SC TELLS EC HEED GROUND FACTS
- The Supreme Court asked the Election Commission of India (ECI) to take a “sympathetic view” on requests to extend the enumeration phase of the Special Intensive Revision (SIR) of electoral rolls.
- Petitioners from Uttar Pradesh and Kerala argued that even revised timelines were too short and risked exclusion of genuine voters.
- Revised timelines:
- Kerala: Enumeration till 18 December; draft roll on 23 December.
- Uttar Pradesh: Enumeration extended till 26 December.
- The Court did not issue mandatory directions, respecting ECI’s autonomy.
- The constitutional validity of SIR will be heard on 6 January 2026.
Key Points
- SIR: A non-routine, intensive exercise to verify and update electoral rolls beyond annual summary revision.
- Petitioners’ concern:
- No urgency as UP Assembly elections are due in 2027.
- Possibility of large-scale voter exclusion (claimed ~25 lakh in Kerala).
- ECI’s stand:
- Extensions already granted based on feedback.
- Judicially imposed deadlines may undermine constitutional independence.
- SC declined to examine issues related to data sharing with volunteers at this stage.
Static Linkages
- Article 324: ECI’s plenary powers over elections (subject to law made by Parliament).
- Representation of the People Act, 1950:
- Governs preparation and revision of electoral rolls.
- Provides for intensive and special revisions.
- Universal Adult Franchise (NCERT Polity):
- Requires inclusion, accuracy, and fairness in voter lists.
Critical Analysis
- Advantages
- Improves credibility and purity of electoral rolls.
- Removes duplicates, deceased, and ineligible voters.
- SC’s restraint preserves separation of powers.
- Concerns
- Short timelines may violate the substantive right to vote.
- Risk of procedural arbitrariness and wrongful deletions.
- Data handling by volunteers raises privacy and trust issues.
Way Forward
- Follow state-specific timelines based on population and migration.
- Strengthen appeal and correction mechanisms during SIR.
- Ensure trained enumerators and clear data- protection protocols.
- Increase voter awareness drives before intensive revisions.
INDIA-OMAN PACTS BOOSTS TRADE
KEY HIGHLIGHTS
- India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) in 2025.
- It aims to deepen trade, services, investment and labour mobility.
- It is India’s 2nd CEPA in the GCC (after UAE, 2022).
- Oman’s first bilateral trade agreement since 2006 (US–Oman FTA).
Key Trade Commitments
- Oman → India
- Duty-free access on 98.08% tariff lines
- Covers 99.38% of India’s exports
- India → Oman
- Liberalised tariffs on 77.79% tariff lines
- Covers 94.81% of imports from Oman
- Trade Data (2024–25)
- India’s exports to Oman: $4.06 billion
- India’s imports from Oman: $6.5 billion
- Oman accounts for ~1% of India’s total trade
Sectoral Impact
- Full tariff elimination for Indian exports in:
- Gems & jewellery
- Textiles, leather, footwear
- Engineering goods, automobiles
- Pharmaceuticals & medical devices
- Plastics, furniture, agricultural products
- Sensitive sectors excluded by India:
- Dairy, tea, coffee, rubber, tobacco
- Gold & silver bullion, jewellery
- Footwear, sports goods, metal scrap
Services & Labour Mobility
- Major highlight: Mode 4 commitments (movement of professionals)
- Intra-Corporate Transferees quota increased from 20% to 50%
- Contractual Service Suppliers stay extended:
- 90 days → 2 years (+ 2-year extension)
- Liberalised entry for skilled professionals in key sectors
Strategic Significance
- Strengthens India’s engagement with West Asia & GCC
- Acts as a gateway to GCC, Africa, Central Asia & Eastern Europe
- Supports India’s export diversification strategy Enhances India’s role in regional value chains
Static Concept Linkage
- FTAs/CEPAs → Preferential trade under WTO rules
- Services trade → GATS Modes of Supply Trade creation vs trade diversion
- Economic diplomacy as foreign policy tool
Critical Analysis
- Positives
- Near-complete market access for Indian exports
- Boost to labour-intensive manufacturing
- Strong services and mobility commitments
- Enhances India’s economic footprint in Gulf
- Concerns
- Persistent trade deficit with Oman
- Implementation challenges in services mobility
- Limited gains if MSMEs fail to integrate
- Exposure to external economic shocks
Way Forward
- Effective implementation and dispute- resolution mechanisms
- MSME onboarding and export facilitation
- Mutual recognition of qualifications
- Use CEPA as a template for India–GCC FTA
- Strengthen logistics and trade facilitation
SC OKAYS KOLHAPUR HC BENCH
KEY HIGHLIGHTS
Context of the News
- The Supreme Court (Justices Aravind Kumar and N.V. Anjaria) dismissed a petition challenging the establishment of a Circuit Bench of the Bombay High Court at Kolhapur.
- The Bench upheld the decision as consistent with the constitutional vision of bringing justice closer to the people.
- The Circuit Bench was notified on August 1 under Section 51(3) of the States Reorganisation Act, 1956.
Key Facts
- Legal basis: Section 51(3), States Reorganisation Act, 1956.
- Authority: Chief Justice of the High Court, with Governor’s approval, can appoint additional places of sitting.
- Challenge: Petition alleged violation of Article 14 (arbitrariness and discrimination), citing demands from other regions like Pune and Solapur.
- Supreme Court ruling:
- No constitutional requirement to satisfy all regional demands simultaneously.
- Article 14 does not mandate absolute uniformity in administrative decisions.
- Differential treatment is valid if based on objective criteria.
- Rationale for Kolhapur:
- Serves contiguous districts.
- Located at a substantial distance from the principal seat.
- Chosen after assessing accessibility, feasibility, litigation needs, and institutional capacity.
- Finding: No evidence of mala fides or extraneous considerations.
Static Constitutional & Legal Linkages
- Article 214: High Courts for States. Article 225: Jurisdiction and powers of High Courts.
- Article 14: Equality before law → allows reasonable classification, not mechanical equality.
- Article 21: Access to justice as part of the right to life (Hussainara Khatoon case).
- States Reorganisation Act, 1956 – Section 51(3):
- Enables decentralised judicial sittings within a State.
- Doctrine of Reasonable Classification:
- Intelligible differentia
- Rational nexus with objective (here: access to justice).
Constitutional Significance
- Reinforces judicial decentralisation without constitutional amendment.
- Balances institutional autonomy with citizen- centric justice delivery.
- Clarifies limits of Article 14 in administrative and judicial governance.
- Aligns with transformative constitutionalism focusing on substantive access, not formal equality.
Critical Analysis
- Pros
- Improves access to justice for remote regions.
- Reduces cost, delay, and travel burden for litigants.
- Decongests principal High Court seat.
- Concerns
- Possibility of competitive regional demands.
- Requires adequate judicial manpower and infrastructure to avoid dilution.
Way Forward
- Frame objective, transparent criteria for future circuit benches.
- Periodic review based on pendency, accessibility, and performance.
- Complement physical benches with e-courts and digital access.
- Strengthen judge strength and infrastructure as recommended by Law Commission and Economic Survey.
RURAL LIFETIME AND DIRECTIVES
KEY HIGHLIGHTS
Context of the News
- Parliament has introduced the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 to replace MGNREGA, 2005.
- The Bill proposes a structural shift from a rights-based, demand-driven employment guarantee to a centrally controlled, allocation- based framework.
- The move has raised concerns regarding constitutional values, federalism, decentralisation, and social justice.
Key Points
- MGNREGA provides a legal guarantee of 100 days of wage employment to rural households.
- Employment is universal, voluntary, and demand-driven.
- Entire wage cost is borne by the Union government; States share limited costs.
- The new Bill:
- Replaces demand-driven employment with normative financial allocations.
- Removes the legal obligation of the Centre to provide work beyond allocated funds.
- Increases State governments’ financial burden to ~40%.
- Centralises project design, audits, and monitoring.
- Prohibits employment during peak agricultural seasons.
- Makes Aadhaar linkage and digital attendance mandatory.
- In 2024–25, ~8.9 crore workers demanded work, but ~1 crore were denied.
- Average employment remains below 50 days, despite statutory entitlement.
- Rural employment spending has stayed below 0.2% of GDP
Static Linkages
- State obligation towards livelihood security.
- Directive Principles as instruments of economic democracy.
- Federal distribution of fiscal and administrative powers.
- Decentralised governance through local institutions.
- Equality in wages and access to work.
- Social justice for historically marginalised groups.
Critical Analysis
- Concerns
- Dilutes the right to work by removing legal enforceability
- Converts welfare from entitlement-based to budget-limited assistance.
- Greater fiscal stress on States undermines cooperative federalism.
- Centralisation weakens Panchayati Raj Institutions.
- Seasonal work ban reduces workers’ bargaining power, especially women.
- Digital conditions risk exclusion due to connectivity and authentication failures.
- Disproportionate impact on SCs, STs, and women, who form the majority of beneficiaries.
- Possible Rationale
- Fiscal predictability for the Centre.
- Greater monitoring through digitisation.
- Alignment with broader livelihood missions.
Way Forward
- Refer the Bill to a Parliamentary Standing Committee.
- Retain the demand-driven, rights-based core of rural employment.
- Ensure adequate, need-based funding, indexed to rural distress.
- Strengthen Panchayat autonomy in planning and execution.
- Use digital tools as enablers, not eligibility barriers.
- Integrate employment support with skill development and livelihood diversification.
BOLD STEP FOR NUCLEAR GOALS
KEY HIGHLIGHTS
Context of the News
- Parliament passed the SHANTI Bill, 2025 to enable large-scale expansion of nuclear energy.
- It consolidates provisions of the Atomic Energy Act, 1962 and Civil Liability for Nuclear Damage Act, 2010.
- Objective: support high human development, energy security, and decarbonisation.
- India targets 100 GW nuclear capacity by mid- century pasted
Key Points
- HDI rises with per capita energy consumption (income, health, education).
- To reach HDI ~0.9, India may need ~24,000 TWh/year energy generation.
- Current electricity generation (2023–24): ~1,950 TWh.
- Electricity share in Final Energy Consumption:~22% → needs major rise.
- Solar & wind:
- Intermittent
- Storage-intensive
- Land-constrained
- Nuclear power:
- Low-carbon
- 24×7 baseload
- Essential for industry & green hydrogen
- India’s strengths:
- Indigenous 700 MW PHWRs
- Fuel fabrication, heavy water, waste reprocessing
- SHANTI Bill:
- Statutory recognition to nuclear regulator Primary safety & liability on licensee
Static Linkages
- Energy–development relationship
- Baseload vs intermittent power
- Three-stage nuclear programme
- Polluter pays principle
- Independent regulation in high-risk sectors
- Sustainable development
Critical Analysis
- Pros
- Reliable baseload decarbonised power
- Supports heavy industry & hydrogen economy
- Reduces fossil fuel dependence
- Builds on indigenous capability
- Concerns
- High capital cost & long gestation
- Uranium import dependence
- Safety perception & regulatory strength
Way Forward
- Nuclear–renewable balanced energy mix
- Strengthen regulator autonomy
- Invest in advanced reactors & waste handling
- Improve public risk communication
- Secure uranium through diplomacy
TEMPORARY RELIEF- Merchandise exports grew 19.4% to $38.1 bn (Nov 2025) – highest November in 10 years.
- Exports to U.S. rose 22.6% to $6.98 bn despite 50% U.S. tariffs.
- Merchandise imports fell 1.9% to $62.7 bn, narrowing trade deficit.
- Export growth driven by tariff absorption, not competitiveness.
- Order slowdown expected from January; sustainability at risk.
Key Points
- Exporters absorbing tariffs to retain markets – short-term strategy.
- MSMEs dominate U.S.-bound exports → limited capacity to bear losses.
- Rupee depreciation offers partial, temporary relief.
- Import contraction signals weak domestic demand, not strength.
- Export Promotion Mission announced, schemes not yet notified.
Static Linkages
- Trade balance as a determinant of Current Account Deficit (CAD).
- Limited effectiveness of exchange rate depreciation under high tariff regimes.
- MSMEs as key drivers of employment-intensive export growth.
- Relationship between import contraction and aggregate demand slowdown.
- WTO principles on tariff barriers and trade distortions.
Why Export Growth Is Misleading
- The export surge reflects price sacrifice, not productivity or competitiveness gains.
- Exporters absorbing tariffs leads to:
- Margin erosion
- Liquidity stress
- Reduced reinvestment capacity
- Such growth cannot be sustained once balance sheets weaken.
Import Decline: Why It Is a Red Flag
- India remains import-dependent for:
- Capital goods
- Intermediate inputs
- Energy resources
- Import contraction suggests:
- Slackening domestic consumption and investment demand
- Possible post-GST rate cut demand weakness
- Unlike export growth, import decline does not automatically signal economic strength.
Stakeholder-wise Impact
- Exporters: Credit stress, shrinking margins, order uncertainty.
- Workers: Risk of layoffs in labour-intensive MSME sectors.
- Government: Pressure on fiscal resources and trade diplomacy.
- Economy: Risk of export slowdown feeding into GDP growth.
Policy Evaluation
- What the Government Is Doing
- Announced Export Promotion Mission.
- Considering loan moratoriums.
- Gaps
- Delay in notifying schemes.
- Moratorium helps cash flow but does not improve credit access.
- No targeted mechanism for tariff-affected exporters yet.
Way Forward
- Operationalise Export Promotion Mission immediately with sector-specific support.
- Introduce export-focused credit guarantee scheme (on the lines of ECLGS).
- Target support to MSMEs in labour-intensive export sectors.
- Diversify export markets to reduce U.S. concentration risk.
- Strengthen trade diplomacy and dispute resolution mechanisms.
- Reduce structural export costs via logistics, GST rationalisation and compliance simplification.
FM TABLES SECURITIES CODE BILL
KEY HIGHLIGHTS
- Securities Market Code Bill, 2025 tabled in Lok Sabha by the Finance Minister.
- Referred to the Standing Committee on Finance.
- Proposal announced earlier in Union Budget 2021–22.
Purpose of the Bill
- To consolidate multiple securities market laws into a single code.
- To simplify regulation and remove overlaps.
- To strengthen investor protection and capital market efficiency.
- Laws Proposed to be Merged
- Securities Contracts (Regulation) Act, 1956
- SEBI Act, 1992
- Depositories Act, 1996
Major Provisions
- SEBI Board Restructuring
- Board strength increased from 9 to 15 members.
- Composition includes :
- Chairperson
- 2 Central Government nominees
- 1 RBI nominee
- 11 other members
- Minimum number of whole-time members raised to 5.
- Decriminalisation of Offences
- Minor, procedural and technical violations shifted to civil penalties.
- Objective is to reduce compliance burden and improve ease of doing business.
- Retention of Criminal Punishment
- Serious market offences such as insider trading and market manipulation remain criminally punishable.
- Civil Penalty Framework
- Unlawful gains or losses to be dealt with through monetary penalties.
- Focus on faster adjudication rather than imprisonment.
- Limitation on Inspection
- No inspection can be initiated after 8 years from the date of violation.
- Conflict of Interest Measures
- SEBI members must disclose direct or indirect interests before decision-making.
- Concerns and Criticism
- Opposition expressed concern over concentration of powers in SEBI.
- Questions raised on separation of powers and regulatory accountability.
Static Linkages for Answers
- Role of independent regulators in a liberalised economy.
- Quasi-judicial bodies and delegated legislation.
- Principles of natural justice and transparency.
- Post-1991 financial sector reforms.
- Advantages
- Simplifies securities regulation.
- Reduces litigation and delays.
- Improves investor confidence.
- Aligns with international regulatory practices.
- Challenges
- Risk of excessive regulatory centralisation.
- Effectiveness of civil penalties as deterrence.
- Time limit may restrict investigation of complex frauds.
Way Forward
- Strong parliamentary and judicial oversight.
- Clear distinction between minor and serious offences.
- Periodic review of regulatory framework.
MGNREGA: GROUND SLIPPING AWAY
KEY HIGHLIGHTS
Context of the News
- The VB-G RAM G Bill proposes replacing MGNREGA, altering its core design and governance.
- The Bill shifts focus from a demand-driven legal entitlement to a more centralised, supply-driven framework.
- This has triggered debate on employment guarantees, decentralisation, and federal balance.
- Evidence from academic studies and crisis periods (COVID-19) highlights MGNREGA’s systemic role beyond welfare pasted
Key Points
- MGNREGA guarantees employment on demand through a self-targeting mechanism.
- Empirical outcomes:
- ~14% rise in household earnings.
- ~26% reduction in rural poverty.
- No evidence of employment loss despite higher wages.
- Strengthened labour bargaining power and rural demand.
- Women account for 57%+ of employment days nationally (up to ~80% in some states).
- Acted as an employer of last resort during COVID-19.
- VB-G RAM G Bill:
- Proposes 125 days of work (nominal).
- Moves towards budget-capped, centrally guided allocation.
- Increases State fiscal responsibility.
Static Linkages
- Employment guarantees as instruments of inclusive growth.
- Self-selection preferred over targeting in informal economies.
- Wage floors can correct labour market distortions.
- Decentralisation improves accountability.
- Counter-cyclical public spending stabilises demand.
Critical Analysis
- Merits of MGNREGA
- Legal entitlement ensures accountability.
- Self-targeting limits exclusion and manipulation.
- Major boost to women’s labour participation.
- Macroeconomic stabiliser in crises.
- Empowers Panchayati Raj Institutions.
- Issues with VB-G RAM G Bill
- Dilutes demand-driven guarantee.
- Centralised planning weakens local autonomy.
- Seasonal pauses reduce effective workdays.
- Wage concerns ignore positive spillovers.
- Fiscal burden on States may widen regional disparities.
Way Forward
- Retain legal, demand-driven employment guarantee.
- Improve wage timeliness and asset quality.
- Use scheme as a counter-cyclical safety net.
- Strengthen Panchayat autonomy.
- Reform incrementally using evidence, not dilution.
DELHI AIR NEEDS LOCAL PLAN- Parliamentary replies (Nov 29, 2021; July 18, 2022) and CPCB data show COVID lockdowns failed to ensure clean air in Delhi.
- 2020 (lockdown year): 49 Very Poor, 15 Severe AQI days.
- 2021 (economic revival): 41 Very Poor, 12 Severe days → pollution declined despite higher activity.
- Indicates meteorology + geography > short- term emission curbs.
Key Points
- Lockdowns disproved emission-only theory of air pollution control.
- Indo-Gangetic plains: low wind speed, temperature inversion, low mixing height.
- Meteorology dominates AQI outcomes (CPCB, IMD studies).
- GRAP is reactive, often implemented after thresholds are crossed.
- Delhi functions as an airshed pollution reservoir, not an isolated city.
Static Linkages
- Right to clean environment under Article 21.
- Pollution as a negative externality requiring state intervention.
- Airshed approach recognised under NCAP.
- Prevention principle preferred over ex-post regulation.
- Environmental governance needs cooperative federalism.
Critical Analysis
- Pros
- Better real-time AQI monitoring.
- Judicial and policy attention to clean air.
- Cons
- Over-reliance on emergency measures.
- Weak use of weather-based prediction.
- Fragmented NCR governance.
- Health and livelihood losses due to delayed action.
Way Forward
- Shift from reactive to predictive GRAP.
- Integrate weather forecasting + AI models.
- Implement airshed-level authority for NCR.
- Ensure reliable power to end diesel generator use.
- Dust-proof roads, green vacant land, cap landfills.
- Promote citizen participation through transparency.
- Adjust work hours to align with better mixing periods.
RBI SHORING RUPEE? LET IT BE
KEY HIGHLIGHTS
- Rupee recorded its best single-day gain in 7 months after RBI intervention.
- RBI sold dollars in the forex market.
- Exchange rate appreciated from ₹91.05/$ to ₹90.09/$ (~0.7% by close; >1% intraday).
- Rupee had depreciated >6% in one year, 2–3× faster than historical trend.
- Sharp fall of ~3% in 10 days since mid- November triggered concerns of excessive volatility.
- RBI reiterated market-determined exchange rate; intervention only to curb abnormal volatility.
Key Points
- Dollar sales increase dollar supply, strengthening the rupee.
- RBI does not target any exchange rate level or band.
- Rapid depreciation risks panic and self- fulfilling expectations.
- Low domestic inflation and subdued crude prices reduce inflationary risks of depreciation.
- Long-term rupee value depends on exports, imports, and capital flows, not intervention.
Static Linkages
- Managed floating exchange rate regime. Forex demand–supply mechanism.
- Balance of Payments dynamics. Inflation pass-through.
- Forex reserves as buffer. Impossible Trinity.
Critical Analysis
- Pros
- Prevents disorderly markets.
- Anchors investor confidence.
- Limits short-term volatility.
- Cons
- Cannot alter fundamentals.
- Prolonged use may erode reserves.
- May distort price discovery.
Way Forward
- Allow fundamentals-based adjustment of the rupee.
- Use intervention only for volatility smoothing.
- Boost exports through competitiveness, not currency support.
- Prefer stable FDI inflows.
- Maintain reserves as insurance, not target.