The Hindu Editorial Analysis- 30th August 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Rational Response

Why is it News?

 India is responding steadily and rationally to the U.S. tariffs. 

Introduction

The Indian government has reacted to the 50% tariffs imposed by the U.S. with a practical and measured approach. Instead of being provoked by controversial remarks from U.S. officials, India is focusing on strategic preparation to safeguard its trade interests, maintain macroeconomic stability, and keep diplomatic channels open. This response reflects a balanced strategy, addressing immediate challenges while building long-term economic resilience.

India’s Response to U.S. Tariffs

• The Indian government is handling the 50% tariffs from the U.S. with maturity and practicality.
• Despite provocative comments from U.S. officials, India is maintaining its position and not reacting emotionally. For instance, when U.S. Trade Adviser Peter Navarro made controversial remarks linking the Russia-Ukraine war to India, the Indian government remained composed.
• The focus is on developing strategies to cope with the high tariffs rather than reacting impulsively.

Trade Negotiations with the U.S.

• Talks regarding a trade deal with the U.S. are currently on hold but not completely abandoned.
• The additional 25% penalty tariff, while significant, is not seen as a deal-breaker.
• The approach is practical, avoiding a complete stop to negotiations, which could be more damaging for India.
• The government is communicating to the industry the importance of preparation and reassurance rather than denial.

Focus on Practical Solutions

• The government is prioritizing effective solutions over flashy measures.
• Recognizes that large fiscal incentives would not significantly counterbalance the 50% tariffs, especially compared to competitors facing lower tariffs.
• Focused on immediate issues, such as improving liquidity for exporters.

Macroeconomic Considerations

• Exports make up about one-fifth of India’s GDP, with the U.S. accounting for roughly one-fifth of that.
• Approximately 40% of India’s exports to the U.S. will not be impacted by the tariffs.
• While certain sectors may experience considerable challenges, the overall macroeconomic impact is expected to be manageable.

Mitigation Strategies

• The government is adopting a dual strategy to mitigate the impact of tariffs:
• Reinitiating dialogues with China to improve trade relations.
• Enhancing domestic consumption through potential GST rate reductions.
• Considering a controlled easing of COVID-era Press Note 3 to facilitate Chinese foreign direct investment, with necessary national security precautions.
• Coordination between the Centre and States on GST cuts is crucial to avoid compromising the fiscal health of the States.

Policy Philosophy

• The government is prioritizing rational and measured actions over emotional responses.
• The aim is to protect the economy through realistic and practical measures that are feasible and targeted.

Conclusion

 India’s strategy showcases a practical approach, focusing on specific issues like improving exporters’ liquidity and boosting domestic consumption. By integrating trade negotiations with thoughtful policy measures and careful economic planning, the government aims to soften the impact of tariffs while ensuring economic growth, national priorities, and long-term stability, steering clear of hasty or merely symbolic actions.

 Detoxifying India’s Entrance Examination System

 Why in News?

 Every year, around 70 lakh students in India compete for undergraduate seats through entrance examinations like the JEE, NEET, CUET, and CLAT. The intense competition and limited number of seats have led to a thriving coaching industry and a culture of relentless pressure. Recent issues, including branch closures, financial misconduct at a major JEE coaching centre, an Enforcement Directorate raid, and student suicides, highlight the problems within the system. It is time to rethink undergraduate admissions, focusing on fairness, equity, and student well-being. 

 The Coaching Crisis and Its Impact 

Scale of Aspirants. Every year, approximately 15 lakh students vie for around 18,000 seats in the Indian Institutes of Technology (IITs), leading to fierce competition. 

Coaching Industry. Coaching centres charge between ₹6-7 lakh for two-year programmes, with students beginning their preparation as young as 14 years old. 

• Excessive Workload. Students are expected to solve complex problems from advanced books like Irodov and Krotov, which are far beyond the requirements for a B.Tech degree. 
• Psychological Effects. The intense competition leads to stress, depression, and alienation, adversely affecting social bonds and normal adolescent development. 
• Regulatory Attempts. Some state governments have attempted to regulate coaching centres, but the fundamental issue lies in the entrance exam system itself. 
• Unreasonable Distinctions. The current system creates unnecessary distinctions between students with 91% vs 97% in Class 12 or 99.9 percentile in JEE, when a score of 70%-80% in Physics, Chemistry, and Mathematics is sufficient for B.Tech admission. 
• False Hierarchy. The system advantages those who can afford coaching, marginalizes capable students, and exacerbates urban-rural, gender, and regional disparities. 
• Illusory Meritocracy. Wealthier families gain an unfair advantage, fostering a toxic obsession with superiority while overlooking factors like luck and privilege. 
• Global Perspective. Philosopher Michael Sandel advocates for lotteries in elite admissions (e.g., Stanford, Harvard. to mitigate the excesses of meritocracy. 

 The Dutch Lottery System and Its Implications 

Learning from the Netherlands. The Netherlands employs a weighted lottery system for medical school admissions. This system, first introduced in 1972 and reinstated in 2023, allows applicants meeting a minimum academic threshold to enter a lottery, with higher grades improving their odds. This approach aims to reduce bias, foster diversity, and alleviate pressure, addressing the limitations of overly precise metrics. It aligns with Sandel’s critique of meritocratic excess, demonstrating the viability of lotteries when capacity is limited. 

China’s “Double Reduction” Policy. Introduced in 2021, this policy banned for-profit tutoring for school subjects and nationalized coaching overnight. The initiative aims to reduce financial burdens, address inequalities, and safeguard student well-being, tackling challenges similar to India’s unregulated coaching industry and its adverse effects on youth. 

 Proposed Admissions Approach for India 

• Simplification of Admissions. Trusting the school system to assess B.Tech readiness by using Class 12 board examinations as the primary criterion. 
• Minimum Eligibility Threshold. Establishing a baseline requirement, such as 80% in Physics, Chemistry, and Mathematics, to ensure a minimum standard for applicants. 
• Weighted Lottery System. Categorizing students based on their performance (e.g., 90%+ and 80%-90%. and allocating seats through a weighted lottery. This system would incorporate reservations for gender, region, and rural students, ensuring fair opportunities for all. 
• Enhancing Odds with Higher Grades. While higher grades would improve chances in the lottery, the system would ensure equitable opportunities for all applicants, reducing cut-throat competition. 

 Enhancing Equity and Diversity 

• Reservation for Rural Students. Allocating 50% of IIT seats for rural students educated in government schools, promoting social mobility and addressing regional disparities. 
• Regulation of Coaching. If entrance exams continue, banning or nationalizing coaching with the provision of free online resources to level the playing field. 
• Annual Student Exchange Programmes. Introducing programmes for IIT students to exchange between institutions annually, fostering national integration and exposure to diverse cultures. 
• Professor Transfers between IITs. Encouraging transfers of professors between IITs to maintain consistent academic standards and dismantle artificial hierarchies within institutions. 

 Conclusion 

 Abolishing undergraduate entrance examinations in favour of a lottery-based system would free students from the coaching treadmill, enabling them to concentrate on school, sports, and overall development. This change would lower financial barriers, providing every qualified student, regardless of wealth or privilege, an equal opportunity at top institutions. Most importantly, it would allow young people to be themselves, rather than turning them into machines pursuing percentiles at a young age. India’s education system is at a pivotal point: it can either continue a harmful race that damages students and society or adopt fairness, sanity, egalitarianism, and equal opportunity. The choice is clear.