GS2/International Relations
US Tariffs at 15%: Why Most Countries Remain Better Off - And Where India Stands
Why in News?
The recent ruling by the US Supreme Court has led to a reimposition of tariffs by President Donald Trump under a rarely used provision of the Trade Act. Initially set at 10%, the tariffs on all imports have been raised to 15%, which is the maximum limit permitted. This measure is temporary and will last for about five months unless Congress approves it.
Key Takeaways
- The new 15% tariff impacts several major economies differently, leading to lower duties for some and higher for others.
- India's tariffs are expected to decrease significantly after recent trade agreements.
- The Supreme Court's decision has curtailed Trump's tariff powers, leading to new legal and political challenges.
Additional Details
- Impact of the New 15% US Tariff: Countries like India, China, Japan, South Korea, and others now benefit from lower tariffs compared to the previous higher rates.
- Countries Facing Higher Tariffs: Nations such as Russia, Australia, and the UK are now subject to increased tariffs due to the new measures.
- India's Position: Previously facing tariffs as high as 50%, India's current trade framework has allowed for a reduction to 25%, with expectations of further decline to 18%.
- China's Position: China faced cumulative tariffs of around 45%. The flattening of tariffs to 15% puts India and China on a similar level temporarily.
- Legal and Political Challenges: The Supreme Court's ruling limits unilateral tariff impositions by the President and necessitates detailed justifications for future tariffs from government agencies.
- Future Prospects: The administration may need to refund previously collected tariffs, complicating future trade negotiations.
- Political Risks: Tariffs may increase inflation, affecting voter sentiment and posing risks to upcoming elections.
- Revenue Impact: The elimination of IEEPA tariffs could significantly reduce the effective tariff rate, prompting reliance on other sections of the Trade Act.
- Trade Leverage Weakens: Experts suggest that reducing reciprocal tariffs diminishes US negotiating power in trade discussions.
The evolving tariff landscape underscores a shift from executive-driven policy to one that requires legislative oversight, with India strategically assessing its trade relations in light of these changes.
GS2/Polity
Parliament's Historic Law, An Extended Wait for Women
Why in News?
The Women's Reservation Act, enacted in September 2023, aims to reserve one-third of seats for women in both the Lok Sabha and State Assemblies. This significant legislation seeks to address the historical underrepresentation of women in Indian politics. However, its implementation is delayed, linking it to future constitutional processes, which raises concerns about the actual pace of democratic reform.
Key Takeaways
- The Act promises one-third reservation for women in the Lok Sabha and State Assemblies.
- Implementation is contingent on a national Census and a delimitation exercise, creating a delay until around 2034.
- The Act reflects political calculations to avoid immediate displacement of current male incumbents.
Additional Details
- Constitutional Framework:The Act ties reservation to two essential processes:
- A national Census scheduled after 2026.
- A delimitation exercise based on the Census data.
- Census Timeline: The next Census is anticipated in 2027, with data verification taking an additional 12-18 months.
- Delimitation Process: Following the Census, the President will establish a Delimitation Commission to redraw parliamentary constituencies, which historically takes several years, delaying implementation beyond 2032-2033.
- Political Logic: Immediate implementation would result in women-only seats displacing existing male incumbents, leading to electoral costs for political parties.
- Historical Context: Efforts for women's reservation began in 1996, with previous attempts failing, making the 2023 Act a culmination of nearly three decades of struggle.
- Design Gaps: The Act excludes upper houses and does not provide separate quotas for OBC women, raising questions about its comprehensiveness.
- Possible Solutions: Alternative options for early implementation include constitutional amendments, temporary reservations in existing constituencies, or the immediate expansion of Lok Sabha seats reserved for women.
The Women's Reservation Act signifies a substantial step toward women's political participation, yet its linkage to future Census and delimitation processes transforms a reform into a deferred constitutional project. The ultimate success of this measure relies not just on its enactment but also on its timely execution. Until women can occupy the promised seats, the representation remains unfulfilled, illustrating that delayed representation equates to denied representation in a democratic framework.
GS2/Governance
Street Dogs, Law and Compassion - The Need for Evidence-Based Urban Animal Management
Why in News?
Recent incidents of violence against citizens who feed street dogs, including serious assaults in cities like Raipur, Gwalior, and Kolkata, have brought attention to the growing animosity towards animal caregivers. This situation raises critical issues concerning animal welfare laws, urban governance, public health, and the rights of citizens.
Key Takeaways
- Increasing violence against animal caregivers highlights intolerance towards lawful activities related to street dog welfare.
- Legal frameworks, such as the Animal Birth Control (ABC) Rules, 2023, aim to manage free-roaming dog populations humanely.
- Judicial interventions have created confusion regarding the management of street dogs, complicating municipal responsibilities.
- Evidence-based approaches are essential for sustainable urban animal management and public health.
Additional Details
- Rising Violence Against Animal Caregivers: Citizens involved in feeding, sterilizing, and vaccinating street dogs have faced physical assaults despite their actions being legal. This reflects a breakdown in civic tolerance and an emboldened attitude in perpetrators due to weak law enforcement.
- Legal Framework for Street Dog Management: The ABC Rules, framed under the Prevention of Cruelty to Animals Act, 1960, emphasize humane methods for managing dog populations, including sterilization and anti-rabies vaccination.
- Judicial Interventions and Policy Confusion: Recent Supreme Court rulings have added uncertainty, directing municipalities to remove street dogs, which critics argue contradicts existing humane laws.
- Ecological Reality: Policies aimed at eliminating street dogs often fail due to the "vacuum effect," where removed dogs are quickly replaced by others, demonstrating the resilience of street dog populations in urban settings.
- Evidence-Based Solutions: Effective management strategies include large-scale sterilization, encouraging adoption of Indian-breed dogs, and providing legal protections for caregivers to mitigate harassment and violence.
- Major Challenges: Key issues include policy ambiguity, administrative weaknesses, social polarization against dog feeders, and significant public health risks related to rabies.
The issue of street dogs in India demands approaches that are rooted in evidence, legality, and compassion rather than elimination. It is crucial to develop a balanced strategy that promotes both public safety and animal welfare through effective governance and community engagement.
GS3/Economy
India's Leap, From Back Office to Global Brain Trust
Why in News?
The transformation of India's role in the global economy has been significant, evolving from a low-cost outsourcing destination to a strategic hub for corporate decision-making and innovation. This shift is exemplified by the rise of Global Capability Centres (GCCs), which have become pivotal in redefining India's economic landscape.
Key Takeaways
- India has transitioned from being seen as a back office to a leader in global innovation.
- The evolution of GCCs has progressed through several phases, culminating in the current era of GCC 4.0.
- Indian GCCs now play a crucial role in R&D, product development, and advanced technology deployment.
- Challenges such as talent shortages and cybersecurity risks must be addressed to sustain growth.
Additional Details
- Evolution of GCCs:The development of GCCs in India can be categorized into four phases:
- Phase One: Focused on labour arbitrage and routine operations.
- Phase Two: Expanded to include specialized operational processes.
- Phase Three: Involved knowledge integration and participation in product development.
- Phase Four (GCC 4.0): Characterized by strategic ownership and innovation, including R&D leadership and the deployment of advanced technologies.
- Strategic Benefits for MNCs: GCCs offer access to a vast talent pool and enable continuous development cycles through a follow-the-sun operational model.
- Socio-Economic Impact: The GCC boom has led to high-value employment opportunities and regional economic diversification, benefiting Tier-II and Tier-III cities.
- Challenges: Key issues like talent gaps, cybersecurity risks, and taxation uncertainties pose threats to the GCC ecosystem.
India's shift from an outsourcing hub to a global leader in innovation highlights its growing significance in the global economy. To maintain this momentum, it is essential to address challenges and enhance collaboration between industry and academia. If managed well, India's GCC revolution could secure its position as a frontrunner in the global innovation economy.
GS3/Economy
Apple Traders in J&K Are Worried About Recent Trade Deals
Why in News?
Apple traders and political leaders in Jammu & Kashmir have expressed concerns regarding the reduction of import duties on U.S. and EU apples as a result of recent trade agreements.
Key Takeaways
- India has lowered the basic customs duty on imported apples from the U.S. from 50% to 25%.
- The import duty on fresh fruits from the EU has been reduced to 20% under a Tariff Rate Quota system.
- Apple production is vital to the economy of Jammu & Kashmir, accounting for 50% of the region's horticulture output.
- Political leaders are demanding safeguards to protect local apple growers from the effects of cheaper imports.
Additional Details
- Background of the Trade Decisions: The controversy stems from India's decision to reduce customs duties, allowing a quota of 50,000 tonnes of apples at reduced rates, which will increase to 1,00,000 tonnes over a decade.
- Importance of Apple Production in J&K:
- 50% of total horticulture output.
- Generates approximately Rs. 10,000 crore in revenue.
- Supports around 35 lakh people and seven lakh families.
- In 2024, apple production in J&K was estimated at 21 lakh metric tonnes.
- Structural Challenges:
- Small landholdings with an average size of 0.40 hectares compared to over 50 hectares in developed countries.
- Lower productivity levels (7-8 tonnes/hectare in India vs. 40-70 tonnes/hectare abroad).
- Quality gaps in apple varieties, with popular types like Gala apples not yet reaching optimal quality in India.
- Impact on Cold Storage and Off-Season Prices:
- J&K has invested heavily in cold storage for price stabilization.
- Cheaper imports could undermine local stored apples, leading to reduced profitability for farmers.
- Political and Policy Demands:
- Call for the exclusion of apples from trade deals.
- Request for interest-free loans and expansion of high-density apple cultivation.
The situation highlights a significant conflict in international trade policy, as lower tariffs may benefit consumers but pose competitive challenges for domestic producers. It underscores the necessity for technological advancements and modernization within Indian agriculture to ensure competitiveness against higher-quality imports.
GS3/Science and Technology
Can India's Power Grid Handle the Data Centre Boom
Why in News?
India's power system is poised for a significant transformation as the rapid expansion of AI-driven data centres necessitates vast amounts of electricity. Currently, India's data centre capacity is approximately 1.2 GW, which is projected to increase to about 8-10 GW by 2030 due to the surge in AI-led computing.
Key Takeaways
- The expansion of data centres will significantly reshape grid planning and operations.
- Data centres are complex loads that require extensive electricity and direct connectivity to transmission networks.
- Without strategic planning, the growth of these centres could lead to instability in the power grid.
Additional Details
- Rising Grid Risks from Data Centre Expansion: Data centres are characterized by sharp variability and can exhibit sudden load changes, which can destabilize grid operations.
- Planning and Resource Adequacy: Proactive infrastructure planning is essential, including robust transmission networks and compliance with resource adequacy norms.
- Evolving Standards and Storage Integration: India's grid codes must adapt to accommodate the large, dynamic loads associated with hyperscale data centres.
- Mixed Energy and Storage Solutions: Experts recommend integrating grid supply with renewable energy and long-duration battery storage to enhance reliability.
- Semiconductor-Level Efficiency Gains: Innovations in semiconductor technology can improve efficiency and reduce energy consumption in AI applications.
- Hyperscalers' Key Requirements: For large investments, hyperscalers prioritize assured renewable power, grid reliability, and regulatory clarity.
In conclusion, as India moves towards a data-centric future, careful planning and strategic investments are crucial to ensure that the power grid can accommodate the anticipated load from AI-driven data centres without compromising stability and efficiency.
GS2/ Governance
SANKALP Scheme

Why in News?
- The Public Accounts Committee (PAC) of Parliament is worried about the planning gaps and the slow implementation of the Skill Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) scheme.
- This concern comes from a report by the Comptroller and Auditor General (CAG) of India, which revealed that the SANKALP scheme used only 44% of its allocated funds, with a large portion of World Bank assistance remaining unspent. This indicates problems with financial planning and fund absorption capacity.
What is the SANKALP Scheme?
Launch and Purpose: Initiated in January 2018 by the Ministry of Skill Development and Entrepreneurship, the SANKALP scheme is a Centrally Sponsored initiative designed to operationalize the National Skill Development Mission. Its primary focus is on strengthening the institutional framework for short-term skill training and expanding access to quality training, particularly for marginalized communities.
Funding: The scheme has a total budget of Rs 4,455 crore, primarily backed by a World Bank loan of Rs 3,300 crore, with additional support from state contributions and industry involvement.
Timeline: Initially set to conclude by March 2023, the scheme's deadline has been extended to March 2024.
Core Objectives:
- Institutional Strengthening: Enhancing capacity at the National, State, and District levels, including support for District Skill Committees and the Mahatma Gandhi National Fellowship.
- Quality Assurance: Standardizing certification processes, universalizing the National Skills Qualification Framework, and developing a pool of quality trainers.
- Inclusion: Increasing the participation of women, Scheduled Castes, Scheduled Tribes, and Persons with Disabilities in vocational training programs.
Key Achievements:
- Strengthened District Skill Committees, facilitating demand-driven implementation of the Pradhan Mantri Kaushal Vikas Yojana.
- Promoted Recognition of Prior Learning and certification at the Gram Panchayat level.
- Funded the development of the Skill India Portal, an IT system for capturing data related to skilling activities nationwide.
GS1/Geography
Rapti River

Why is it News?
The National Green Tribunal (NGT) has instructed the Uttar Pradesh government to amend official records, changing the status of the Suav, a significant tributary of the Rapti River, from a "drain" to a "river" in both revenue records and the gazetteer.
About the Rapti River
- Importance: The Rapti River is the most significant left-bank tributary of the Ghaghra River. It was historically known as the Iravati.
- Origin: The river originates in Nepal, near Rukumkot in the Mahabharat range of the Lesser Himalayas, at an elevation of 3,050 meters.
- Topography: The basin features a diverse topography, including tall mountains, the inner and outer Tarai regions, and rolling plains. There are two climatic regions: the mountainous area has a temperate climate, while the plains have a subtropical climate.
- Tributaries: Major left-bank tributaries of the Rapti include the Burhi Rapti and the Rohini.
- Course: After flowing through Nepal, the Rapti River enters Eastern Uttar Pradesh.
Key Facts about the National Green Tribunal (NGT)
- Establishment: The NGT was established under the National Green Tribunal Act in 2010.
- Purpose: It is a specialized body with the expertise to handle environmental disputes that involve multiple disciplines.
- Principles: The Tribunal operates based on the principles of natural justice.
- Mandate: The NGT aims to dispose of applications or appeals within six months of filing.
- Locations: The principal office is in New Delhi, with additional locations in Bhopal, Pune, Kolkata, and Chennai.
Composition of the NGT
- Chairperson: A retired judge of the Supreme Court.
- Judicial Members: Retired judges of High Courts.
- Expert Members: Professionals with at least 15 years of experience in environmental or forest conservation fields.
Related Reading for GS 1: Drainage System