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UPSC CARE 16th September 2025 Current Affairs

News at a Glance

Supreme Court Stays ‘Arbitrary’ Waqf (Amendment) Act Provisions

Source: The Hindu

UPSC Relevance: GS2 Polity and Governance

Context: Waqf (Amendment) Act 2025

Why in News?

The Supreme Court of India, while upholding the constitutional validity of the Waqf (Amendment) Act, 2025, stayed arbitrary provisions related to faith proof, unilateral property status change, and non-Muslim representation in waqf bodies.

Introduction

  • The Supreme Court of India delivered a landmark judgment concerning the Waqf (Amendment) Act, 2025.
  • The judgment addressed petitions challenging certain provisions of the Act that were claimed to be arbitrary and violative of constitutional principles.
  • While upholding the constitutional validity of the Waqf (Amendment) Act as a whole, the Court stayed critical provisions that risked misuse or undermined fundamental rights.

Key Provisions Stayed by the Supreme Court:

Faith Proof Requirement for Waqf Creation:

  • The 2025 Act required individuals intending to create a waqf to prove that they had been practising Islam for at least five years.
  • The Supreme Court acknowledged the risk of misuse of waqf creation as a means to illegitimately tie up property and evade creditors.
  • However, it struck down the provision for lack of a clear and fair mechanism to verify the five-year faith practice requirement.
  • Direction: The provision is to remain shelved until a proper mechanism is devised by the government.

Arbitrary Alteration of Waqf Property Status:

  • Section 3C of the Act allowed government officers to unilaterally change the status of a waqf property to government property upon a mere doubt.
  • The Court deemed this provision “totally unconstitutional” as it violated the fundamental separation of powers and deprived Mutawallis (waqf managers) of property without judicial determination.
  • Interim Relief: No waqf property shall be dispossessed, nor will records be altered unless the Waqf Tribunal decides on the matter in formal proceedings under Section 83.

Third-party Rights and Property Preservation:

  • To safeguard public interest, the Court directed that Mutawallis must not create third-party rights in disputed properties until the final tribunal decision.

(Image Source: the Hindu)

Changes to Waqf Administration Structure:

The Court imposed limits on the composition of the Central Waqf Council and State Waqf Boards:

  • Central Waqf Council: Maximum of four non-Muslims out of 22 members.
  • State Waqf Boards: Maximum of three non-Muslims out of 11 members.
  • The Chief Executive Officers (CEOs) of State Waqf Boards should preferably be from the Muslim community.
  • Rationale: The Court recognized concerns about the subordination of Muslim members within waqf administrative bodies, ensuring community representation in decision-making.

Validation of Mandatory Waqf Registration:

  • The Court upheld the Act’s requirement for waqf registration, stating that for over a century (since 1923), Indian waqf legislation has mandated waqf registration.
  • Important Observation: Mutawallis cannot claim indefinite continuation of unregistered waqfs.
  • The judgment clarified that the 1995 Waqf Act permitted registration based on available particulars without a formal deed.
  • Even after the 2025 amendment, unregistered waqfs could still apply for registration.

Protected Monuments and Religious Practice:

  • Petitioners argued that waqf properties should not lose status when declared a “protected monument”.
  • The Court rejected this claim, referencing Section 5(6) of the Ancient Monuments and Archaeological Sites and Remains Act, 1958, which allows customary religious practices to continue in protected monuments.
  • Therefore, religious practice and protection of heritage monuments were found to be reconcilable.

Impact on Tribal Communities:

  • The petitioners contended that tribal Muslims faced restrictions under the 2025 Act regarding waqf creation in tribal areas.
  • The Court referred to the Joint Parliamentary Committee’s view that unrestricted waqf declaration in tribal areas could endanger the cultural existence of these minorities.
  • Thus, the limitation was not seen as arbitrary but as a necessary protective measure.

Conclusion and Way Forward:

The Supreme Court’s interim order represents a balanced approach:

  • It affirms the constitutional presumption of legislative validity.
  • Yet, it prevents potential misuse of arbitrary provisions by suspending them until a proper mechanism is created.
  • The judgment reaffirms the role of the judiciary in property and title disputes, ensuring separation of powers.
  • The requirement of waqf registration is firmly backed to prevent perpetuation of unregulated waqfs.
  • Representation in waqf administrative bodies is structured to reflect the religious character of waqf institutions.
  • This ruling has wide implications for waqf governance, property rights, and minority protections, striking a balance between state control and individual/community rights.

CARE MCQ

Q1. Consider the following statements regarding the recent Supreme Court judgment on the Waqf (Amendment) Act, 2025:

  1. The Supreme Court stayed the provision requiring a person creating a waqf to prove their practice of Islam for five years due to the absence of a verification mechanism.
  2. The Court upheld the provision allowing the Executive to change the status of a waqf property to government property based solely on a doubt raised.
  3. The number of non-Muslim members in the Central Waqf Council is restricted to a maximum of four out of 22 members.

Which of the statements given above is/are correct?

A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2, and 3

Answer 1- B

Explanation

  • Statement 1 is correct: The Supreme Court stayed the provision in the Waqf (Amendment) Act, 2025, which required a person creating a waqf to prove that they had been practising Islam for at least five years, because the law did not provide a clear mechanism to verify such proof.
  • Statement 2 is incorrect: The Supreme Court did not uphold the provision allowing the Executive (designated officer or State government) to unilaterally change the status of a waqf property into a government property based on a mere doubt. Instead, the Court held it to be totally unconstitutional and stayed such provisions, emphasizing that the title of the property must be decided by the Waqf Tribunal.
  • Statement 3 is correct: The Supreme Court ordered that the Central Waqf Council should have no more than four non-Muslim members out of a total of 22 members, and the State Waqf Boards should have no more than three non-Muslim members out of 11, to ensure appropriate representation of the Muslim community in the management of waqf affairs.
  • Therefore, option B is the correct answer.

UPSC PYQ

Q.   What is the position of the Right to Property in India? (2021)

(a) Legal right available to citizens only

(b) Legal right available to any person

(c) Fundamental Right available to citizens only

(d) Neither Fundamental Right nor legal right

Ans: (b)

Supreme Court verdict on Aadhaar as Valid Document for Electoral Rolls

Source: The Hindu

UPSC Relevance: GS2 Polity and Governance

Context: Validity of Adhaar

Why in News?

The Supreme Court ruled that Aadhaar is a valid document under the Representation of the People Act, 1950, for voter authentication in the Special Intensive Revision (SIR) of electoral rolls.

Introduction

  • The Supreme Court of India affirmed that Aadhaar is part of the statutory framework under the Representation of the People Act, 1950 and can be used by voters for verification in the Special Intensive Revision (SIR) of electoral rolls in Bihar.
  • This judgment comes amid debates over the adequacy of Aadhaar as a proof of identity, citizenship, and residence for voter registration.

Key Provisions Cited:

  • Section 23(4) of the Representation of the People Act, 1950 empowers the Election Commission of India (ECI) to use Aadhaar to authenticate entries in electoral rolls.
  • The Court ruled that Aadhaar should be treated as the 12th document permissible for voter verification, alongside other traditional proofs such as land records, passport, driving license, etc.

(Image Source: The Hindu)

Arguments Against Aadhaar:

Petitioner-advocate Ashwini Kumar Upadhyay argued:

  • Aadhaar does not prove age, citizenship, residence, or domicile.
  • It merely serves as a proof of identity, not eligibility for voting.
  • There is no guarantee that an Aadhaar number holder is necessarily a citizen.
  • Aadhaar alone, without supporting documents (like place of birth, residence proof), dilutes the integrity of the verification process.
  • A broader “Pan-India SIR” should be implemented to root out foreign infiltrators, especially Bangladeshi nationals and Rohingyas.

Supreme Court’s Response:

Justice Joymalya Bagchi and Justice Surya Kant observed:

  • Aadhaar is part of the statutory framework governing the ECI’s role in maintaining electoral rolls.
  • It is permissible for voters to use Aadhaar for identification purposes as allowed by the law.
  • The Election Commission is best placed to determine eligibility and conduct SIR in a lawful manner.
  • ECI is competent to distinguish citizens from non-citizens in voter lists.
  • The Court emphasized that other States conducting SIR should be heard fairly, preventing the SIR process from becoming a fait accompli.

Significance of the Judgment:

Legal Validity of Aadhaar in Electoral Process:

  • Establishes Aadhaar as a valid document under the 1950 Act for authentication in electoral rolls.
  • Reinforces the statutory authority of ECI in using Aadhaar for ensuring the accuracy of voter lists.

Checks and Balances:

  • Supreme Court’s interim directive prevents misuse or arbitrary inclusion/exclusion in electoral rolls during SIR.
  • Ensures that the rights of citizens are not jeopardized by administrative overreach.

Concern over Citizenship Verification:

  • Aadhaar is not a substitute for citizenship proof.
  • The Court allowed further arguments to consider the legality of the SIR exercise itself, fixed for hearing on October 7, 2025.

Democratic Importance:

  • Voter registration and electoral roll management are fundamental to the democratic process.
  • Safeguarding the integrity of the electoral rolls helps prevent illegal voting and uphold citizens’ rights.

Conclusion:

  • The Supreme Court’s ruling is a landmark decision reinforcing that Aadhaar is not merely an identity card but part of the electoral statute in India, albeit with certain limitations.

CARE MCQ

Q2.  With reference to the Special Intensive Revision (SIR) of electoral rolls, consider the following statements:

  1. The Supreme Court has declared Aadhaar as the 12th valid document for voter verification under the Representation of the People Act, 1950.
  2. Aadhaar alone is sufficient proof of citizenship for voter registration.
  3. Section 23(4) of the Representation of the People Act, 1950 permits the Election Commission of India to use Aadhaar for authentication of electoral roll entries.

Which of the statements given above is/are correct?

A) 1 and 3 only
B) 2 and 3 only
C) 1 and 2 only
D) 1, 2 and 3

Answer 2- A

Explanation

  • Statement 1 is correct: The Supreme Court recognized Aadhaar as the 12th valid document that voters could use for verification under the Representation of the People Act, 1950 during the Special Intensive Revision (SIR) of electoral rolls in Bihar.
  • Statement 2 is incorrect: Aadhaar alone does not serve as proof of citizenship. It is merely a proof of identity, and additional documents may be needed to establish eligibility for voting.
  • Statement 3 is correct: Section 23(4) of the Representation of the People Act, 1950 explicitly permits the Election Commission of India (ECI) to use Aadhaar to authenticate entries in the electoral rolls.
  • Therefore, option A is the correct answer.

UPSC PYQ

Q.    The identity platform ‘Aadhaar’ provides open “Application Programming Interfaces (APIs)”. What does it imply? 2018

  1. It can be integrated into any electronic device.
  2. Online authentication using iris is possible.

Which of the statements given above is/are correct?

  1. 1 only
  2. 2 only
  3. Both 1 and 2
  4. Neither 1 nor 2

Ans: (c)

Involution Plaguing the Chinese Electric Vehicle (EV) Sector

Source: The Hindu

UPSC Relevance: GS3 Economy

Context: Involution

Why in News?

China’s electric vehicle (EV) sector is facing ‘involution’ due to intense domestic price wars and global trade barriers, prompting government intervention to stabilize the industry.

What is ‘Involution’?

  • The term ‘Involution’ (nêijuǎn) in the Chinese context refers to a situation where excessive competition in a sector leads to irrational and counterproductive actions by firms. Rather than promoting healthy competition, companies engage in destructive price wars, attempting to capture market share and offload oversupply of goods.
  • Key Feature: Prices fall below production costs → Firms make losses → Industry instability
  • This leads to stagnation in real incomes, despite growing efforts and production complexity, creating a vicious cycle of inefficiency and declining profitability.
  • The term was popularized by American anthropologist Clifford Geertz (1969) in his study Agricultural Involution, describing how in Java’s wet-rice economy, more labor was applied per unit of land without real growth in individual income or productivity per person.

How Did Involution Manifest in the Chinese EV Sector?

  • China’s electric vehicle sector has been one of the fastest-growing globally, fueled by state support, innovation, and high domestic demand. However, the sector is now plagued by:
  • Excessive Market Players:
    • About 120–130 EV manufacturers (OEMs) operate in China, many producing similar models.
    • Fierce competition leads firms to engage in aggressive price cuts.
    • Price Wars:
    • In an effort to expand market share amid falling export opportunities (due to tariffs), Chinese firms have competed by offering increasingly lower prices.
    • Result: EVs are sold even below production cost → Large-scale financial losses → Industry instability.
  • Global Trade Barriers Exacerbate the Problem:
    • US Tariffs (100% from 2024) and EU countervailing duties (BYD: 17%, Geely: 18.8%, SAIC: ~35%) act as effective trade barriers.
    • Turkiye imposed a 40% tariff, Mexico considered 50% tariffs.
    • These measures make exporting Chinese EVs to developed markets very difficult → Domestic competition intensified → Worsening involution.

Consequences of Involution

  • Firms make unsustainable losses → Increased risk of bankruptcy.
  • Overcapacity persists → Outdated, inefficient plants remain operational.
  • Undermines technological advancement and long-term industry health.
  • Deters investment and innovation due to shrinking profit margins.

(Image Source: The Hindu)

Chinese Government’s Response

To tackle this structural problem, the Chinese government led by President Xi Jinping and the Ministry of Industry and Information Technology (MIIT) have launched several corrective measures:

Crackdown on Price Wars:

  • Framed as a “war on price wars” by the Chinese Politburo communication.
  • Strong message against below-cost selling and algorithmic pricing abuses.

Draft Overhaul of Pricing Law (July 24, 2025):

  • To prevent unfair competition by regulating minimum prices.
  • Limit aggressive algorithm-driven price cuts that hurt competitors.

Phased Exit of Outdated Capacity:

  • Call for “orderly exit” of inefficient manufacturers and factories.
  • Encourage industry consolidation → Reduce fragmentation → Improve overall efficiency.

Global Diversification Efforts:

  • Chinese OEMs are localizing production abroad (e.g., BYD plants in Hungary and Turkiye).
  • Expand exports to emerging economies → Chinese EVs accounted for 75% of growth in EV sales in developing countries in 2024.

Promotion of Rational Competition:

  • Emphasis on maintaining a healthy industry order with sustainable pricing.
  • Restrict unbridled competition that is harmful in the long term.

Significance of Tackling Involution

  • Ensures financial stability of the EV sector → Avoids mass closures.
  • Promotes technological innovation and global competitiveness.
  • Aligns China’s EV ambitions with sustainability goals.
  • Helps prevent market distortions, paving the way for orderly industrial growth.

Conclusion

  • China’s EV sector is facing a severe involution crisis, caused by intense domestic competition, global trade barriers, and unsustainable pricing practices.
  • The Chinese government has proactively responded by imposing pricing reforms, promoting industrial consolidation, and encouraging strategic foreign localization.

CARE MCQ

Q3. In the context of the Chinese Electric Vehicle (EV) sector, the term ‘involution’ refers to:

A) Rapid technological advancement driven by increased research and development.
B) Excessive internal competition leading to irrational price wars and unsustainable losses.
C) State-led consolidation of small EV manufacturers into large public sector units.
D) Expansion of Chinese EV exports to developed markets like the US and EU.

Answer 3- B

Explanation

  • Option a is incorrect: Involution does not refer to technological progress. While Chinese EVs are technologically advanced, involution specifically describes destructive internal competition, not innovation.
  • Option b is correct: Involution in China’s EV sector refers to excessive domestic competition, where firms engage in price wars below production costs, leading to financial losses, overcapacity, and industry instability.
  • Option c is incorrect: Although the government is encouraging orderly exit and consolidation of inefficient firms, involution itself is caused by uncontrolled competition, not by state-led consolidation.
  • Option d is incorrect: Export expansion is a strategy to counter involution and tariffs, but it is not the definition of involution.
  • Therefore, option B is the correct answer.

UPSC PYQ

Q.  Despite being a high saving economy, capital formation may not result in significant increase in output due to (2018)

(a) weak administrative machinery

(b) illiteracy

(c) high population density

(d) high capital-output ratio

Ans: (a)

India’s Economic Ambitions Need Better Gender Data

Source: The Hindu

UPSC Relevance: GS3 Economy

Context: Gender Budgeting

Why in News?

The Women’s Economic Empowerment (WEE) Index launched by Uttar Pradesh provides a data-driven framework to track and improve women’s economic participation.

Introduction

  • The recent India aspires to become a $30 trillion economy by 2047. However, this ambitious goal faces a critical challenge — the persistent gender gap in economic participation.
  • Women today contribute merely 18% of India’s GDP, and a vast majority of employable women remain outside the formal workforce.
  • This structural exclusion not only limits individual potential but also acts as a brake on India’s economic growth.
  • The Government of Uttar Pradesh’s Women’s Economic Empowerment (WEE) Index provides an innovative model to address this critical issue by making gender-disaggregated data integral to governance.

(Image Source: the Hindu)

The Problem of Invisible Women in Economic Data

  • The Female Labour Force Participation Rate (FLFPR) in India is low, standing at 41.7%, with only 18% of women employed formally.
  • Approximately 196 million employable women are outside the workforce. Lack of proper data keeps this issue hidden from policy interventions.
  • Most governance indicators and economic indices — such as those related to health, infrastructure, and economic well-being — rarely disaggregate data by gender. Without this visibility, systemic barriers remain unaddressed.

The Women’s Economic Empowerment (WEE) Index: A Path-Breaking Initiative

  • Uttar Pradesh launched India’s first district-level Women’s Economic Empowerment Index, tracking women’s participation across five key economic levers:
    • Employment
    • Education and Skilling
    • Entrepreneurship
    • Livelihood and Mobility
    • Safety and Inclusive Infrastructure
  • The Index is not merely about measuring participation but identifying structural drop-offs in the life cycle of a woman’s economic journey — for example:
    • High female enrollment in skilling programs (>50%) but low representation in entrepreneurship.
    • Limited access to credit among women entrepreneurs.
  • Example of impact: In the transport sector of UP, data revealed a low percentage of female bus drivers and conductors.
  • This led to policy changes such as redesigned recruitment strategies and improved infrastructure (e.g., restrooms for women in bus terminals), which would likely not have occurred without gender-specific data.

The Need for Universal and Normative Gender-Disaggregated Data

  • To close the gender gap at scale, gender-disaggregated data must become universal and normative.
  • Every departmental Management Information System (MIS) — from MSMEs to housing and transport — must integrate gender breakdowns.
  • Data must go beyond surface-level participation to include metrics such as:
    • Retention rates
    • Leadership representation
    • Re-entry into workforce
    • Quality of employment
  • Special attention must be paid to transitions post-Class 12 and post-graduation, where dropout rates for women surge dramatically.

Reimagining Gender Budgeting

  • Gender budgeting should not remain confined to women’s welfare schemes or finance departments.
  • It must adopt a gender lens across all sectors, including education, energy, infrastructure, health, and transport.
  • Fundamental principle: “You cannot budget for what you do not measure.” Without gender-disaggregated data, planning becomes blind to systemic inequities.

Implications for Other States

  • States like Andhra Pradesh, Maharashtra, Odisha, and Telangana have set trillion-dollar economic targets.
  • The UP WEE Index offers a replicable model that enables district-wise gender action plans.
  • Such plans help in:
    • Guiding budget allocations
    • Prioritizing infrastructure developments
    • Implementing programmatic reforms for gender inclusion

Conclusion

  • India’s gender gap is longstanding, but current responses remain fragmented and insufficient. The WEE Index marks a transformational shift from invisibility to visibility in policy planning.

CARE MCQ

Q4.  Which of the following statements regarding the Women’s Economic Empowerment (WEE) Index is/are correct?

  1. It tracks women’s participation across employment, education and skilling, entrepreneurship, livelihood and mobility, and safety and inclusive infrastructure.
  2. It is implemented at the state level only without district-level analysis.
  3. The WEE Index aims to make gender-disaggregated data universal and inform gender-responsive budgeting and policy reforms.

Select the correct answer using the code below:

A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2, and 3

Answer 4- B

Explanation

  • Statement 1 is correct: The WEE Index tracks women’s participation across employment, education and skilling, entrepreneurship, livelihood and mobility, and safety and inclusive infrastructure, covering multiple aspects of economic empowerment.
  • Statement 2 is incorrect: The WEE Index is a district-level tool, not limited to state-level analysis. It maps participation and drop-offs at the district level to guide targeted interventions.
  • Statement 3 is correct: The Index aims to make gender-disaggregated data universal and normative, enabling gender-responsive budgeting and informed policy reforms across departments.
  • Therefore, option B is the correct answer.

UPSC PYQ

Q.   Which of the following gives ‘Global Gender Gap Index’ ranking to the countries of the world? (2017)

(a) World Economic Forum
(b) UN Human Rights Council
(c) UN Women
(d) World Health Organization

Ans: A

Unlocking Innovation through India’s Procurement Reforms

Source: The Hindu

UPSC Relevance: GS3 Economy

Context: Procurement Reforms

Why in News?

India’s recent procurement reforms aim to transform research and development by providing flexibility in purchasing specialized equipment and promoting innovation through global best practices.

Introduction

  • Procurement has traditionally been viewed as a cost-control function within government processes, focused primarily on transparency, procedural compliance, and minimizing public expenditure.
  • However, this narrow approach has often stifled scientific research and innovation by emphasizing rigid rules over the dynamic needs of research and development (R&D).
  • Recognizing these limitations, India recently introduced reforms to its General Financial Rules (GFR) in June 2025, particularly focusing on research procurement.
  • These reforms represent an important but cautious step towards using procurement as a strategic tool to promote innovation.

Evolution of Procurement: From Ancient Record-Keeping to Cognitive Systems

  • Globally, procurement systems have undergone a significant evolution. Initially serving as record-keeping for materials (such as in ancient Egypt for pyramid construction), procurement has transformed over millennia into complex, AI-driven ecosystems.
  • The Industrial Revolution treated procurement merely as a cost management process. Post-World War II, governments realized its strategic value—evident in contracts supporting semiconductors and space technologies.
  • Today, the frontier lies in cognitive procurement—where advanced tools, including generative AI, enable real-time analysis of global supplier ecosystems, simulate scarcity risks, and automate compliance tasks.
  • For example, Pfizer’s COVID-19 vaccine success heavily relied on AI to identify and onboard critical suppliers within days.

India’s Procurement Reforms: Key Changes and Their Rationale

India’s June 2025 GFR reforms introduced critical adjustments to ease the procedural rigidity hampering R&D. Key features include:

  • GeM Exemption for Specialized Equipment: Institutional heads can now bypass the Government e-Marketplace (GeM) when procuring specialized research equipment, preventing delays caused by GeM’s poor-quality standard items.
  • Increased Direct Purchase Limit: The direct procurement threshold has doubled from ₹1 lakh to ₹2 lakh, allowing more flexibility in purchasing research materials.
  • Decentralized Approvals for Global Tenders: Vice-Chancellors and directors can approve global tenders up to ₹200 crore, reducing bureaucratic lag and expediting critical acquisitions.
  • These changes reflect a move towards catalytic procurement, where the government leverages its purchasing power to promote advanced technologies and stimulate private R&D investments.

(Image Source: The Hindu)

Global Best Practices: Models India Can Emulate

Several countries offer valuable lessons on procurement as an innovation enabler:

  • Germany’s High-Tech Strategy: Combines rigorous procurement checks with innovation encouragement through KOINNO, an agency advising on innovative solutions and hosting cross-sector forums. This is aligned with Mariana Mazzucato’s idea of “mission-oriented procurement” where state demand shapes technological markets.
  • United States SBIR Program: Dedicates 3% of federal R&D funding to startups through phased contracts, derisking early-stage innovation while encouraging competitive vendor participation.
  • South Korea’s Pre-Commercial Procurement: Focuses on paying premium prices for prototypes addressing moonshot criteria, rather than cost-based selection.
  • India’s reforms, while important, fall short of fully integrating these best practices. The ₹200 crore limit on global tenders remains focused on cost competitiveness, rather than rewarding technical excellence or innovation potential.

Systemic Shifts for Deeper Reform

For the reforms to go beyond being merely incremental, India should consider four systemic shifts:

  • Outcome-Weighted Tenders: Adopt Finland’s practice of evaluating bids not only on cost but also on qualitative factors like R&D investment by suppliers, scalability, and alignment with strategic goals.
  • Sandbox Exemptions: Grant institutions such as Tata Institute of Fundamental Research (TIFR) or IITs the freedom to bypass GFR rules for a portion of purchases, contingent on meeting audited innovation targets.
  • AI-Augmented Sourcing: Utilize the INDIAai ecosystem to assist research institutions by automating global supplier searches, predicting customs delays, and suggesting alternatives—reducing decision cycles dramatically.
  • Co-Procurement Alliances: Emulate the EU’s Joint Procurement Agreement, where multiple labs aggregate demand for expensive equipment, achieving economies of scale.

Privatisation: A False Binary

  • The debate on privatising national research labs should not present an either/or binary. The U.S. model shows that performance-based contracts, combined with private management, led to increased patent filings and private-sector partnerships.
  • India’s CSIR laboratories could adopt a hybrid approach, blending private-sector agility in procurement with public-sector accountability and strategic oversight.

Conclusion

  • India’s recent GFR reforms mark a significant and positive step toward making procurement an enabler rather than an impediment for research and innovation. However, the reforms are only a tentative step and do not represent a paradigm shift.

CARE MCQ

Q5. Consider the following statements regarding India’s recent procurement reforms introduced:

  1. Institutional heads are allowed to bypass the Government e-Marketplace (GeM) for specialized research equipment.
  2. The direct purchase limit has been increased from ₹1 lakh to ₹5 lakh.
  3. Vice-Chancellors and directors can now approve global tenders up to ₹200 crore.
  4. The reforms fully adopt Germany’s model of mission-oriented procurement.

Which of the statements given above is/are correct?

A) 1 and 3 only
B) 1, 2, and 3 only
C) 1, 3, and 4 only
D) 1 and 4 only

Answer 5-A

Explanation

  • Statement 1 is correct: Institutional heads are indeed allowed to bypass the Government e-Marketplace (GeM) for specialized research equipment, addressing delays caused by mandatory GeM procurement for niche instruments.
  • Statement 2 is incorrect: The direct purchase limit has been increased from ₹1 lakh to ₹2 lakh, not ₹5 lakh.
  • Statement 3 is correct: Vice-Chancellors and directors can approve global tenders up to ₹200 crore, reducing bureaucratic delays and empowering institutions to procure advanced equipment.
  • Statement 4 is incorrect: The reforms do not fully adopt Germany’s mission-oriented procurement model; they only take preliminary steps toward flexibility and innovation-oriented procurement.
  • Therefore, option A is the correct answer.

UPSC PYQ

Q.    What is/are the recent policy initiative(s)of Government of India to promote the growth of the manufacturing sector? (2012)

  1. Setting up of National Investment and Manufacturing Zones
  2. Providing the benefit of ‘single window clearance’
  3. Establishing the Technology Acquisition and Development Fund

Select the correct answer using the codes given below: 

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Ans: (d)

India-US Corn Trade Dispute

Source: Indian Express

UPSC Relevance: GS2 International Relations

Context: India-US Corn Trade Dispute

Why in News?

The India-US corn trade dispute stems from India’s high import tariffs and ban on genetically modified corn, restricting US corn exports despite rising domestic demand for animal feed in India.

Introduction

  • Garden The India-US corn trade has become a subject of contention due to divergent agricultural policies, market barriers, and strategic economic interests.
  • The United States, the world’s largest producer and exporter of corn, views India as a critical potential market, especially in light of China reducing its US corn imports amid escalating trade tensions.

(Source: Indian Express)

Current Status of India’s Corn Imports (2024-25)

    • Total corn imports: 0.97 million tonnes (mt).
    • From Myanmar: 0.53 mt
    • From Ukraine: 0.39 mt
  • From the United States: only 1,100 tonnes, which is negligible compared to imports from other countries.
  • This demonstrates the minimal role of the US in India’s corn import portfolio.

Reasons for Low US Corn Imports into India

  • Tariff Structure:
  • India permits up to 0.5 mt of corn imports annually at a 15% duty.
  • Imports beyond this quantity attract a steep 50% duty, making large-scale imports economically unviable.
  • Ban on Genetically Modified (GMO) Corn:
  • India does not permit any import of genetically modified corn.
  • Approximately 94% of US corn planted in 2024 is GMO, engineered to resist herbicides and insect pests.
  • These restrictions are major points of friction for the United States.

US Interest in India as a Market

  • US Global Production and Export Trends:
    • Production in 2024-25: 377.63 mt
    • Exports in 2024-25: 71.70 mt
    • Projected production for 2025-26: 427.1 mt
    • Projected exports for 2025-26: 75 mt
  • China’s Decline as a Market:
    • Previously, China accounted for $5.21 billion in US corn exports (2022).
    • In 2024, Chinese purchases declined sharply to just $331 million.
    • By early 2025, only $2.4 million worth of US corn was exported to China due to trade tensions.
  • India’s Rising Demand:
    • Growth in the consumption of animal products such as milk, eggs, fish, and meat is expected to raise demand for feed corn.
  • US Department of Agriculture projects India’s corn consumption to increase from 34.7 mt (2022-23) to:
    • 98 mt by 2040 and 200.2 mt by 2050 under rapid income growth (6.6% per annum).
    • 62.5 mt by 2040 and 93 mt by 2050 under moderate income growth (4.6% per annum).
    • Imports needed under rapid growth scenario: 46 mt (2040) and 134 mt (2050).

India’s Position and Challenges

Domestic Production:

  • India is the third-largest maize producer globally, after Karnataka and Madhya Pradesh.
  • Bihar is also a large producer, making corn an important crop politically and economically.

Political Sensitivity:

  • Allowing GMO corn or lowering tariffs is seen as anti-farmer and politically unpopular.
  • Withdrawn Proposal from NITI Aayog:
    • A proposal suggested importing GM maize exclusively for ethanol production (industrial use), preventing it from entering the food or feed chain.
  • The proposal was later withdrawn, signaling the government’s reluctance.

Economic Implications

  • US corn is cheaper:
    • Farmgate price in July 2024: $4.29 per bushel (approximately Rs 15 per kg).
    • Indian wholesale price: Rs 22-23 per kg.
    • Indian Minimum Support Price (MSP) for 2025-26: Rs 24/kg.
  • This price differential makes US corn highly competitive, creating pressure on Indian producers.

Conclusion

  • Given political sensitivity, farmer protection, consumer concerns about GMOs, and electoral considerations, India is unlikely to relax its import restrictions or allow GMO corn imports in the near term.
  • Meanwhile, the US is under pressure to secure alternative markets as China reduces its corn imports drastically.

CARE MCQ

Q6. Consider the following statements regarding India-US corn trade dispute:

  1. India imposes a 15% tariff on corn imports up to 0.5 million tonnes and 50% on quantities beyond that.
  2. India allows import of genetically modified (GM) corn for use as animal feed.
  3. The US is the world’s largest corn producer and exporter.

Which of the above statements is/are correct?

A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) 1, 2, and 3

Answer 6- B

Explanation

  • Statement 1 is correct: India imposes a 15% tariff on corn imports up to 0.5 million tonnes. Any imports beyond this quantity attract a steep 50% duty. This policy restricts large-scale corn imports.
  • Statement 2 is incorrect: India does not allow the import of genetically modified (GM) corn, even for animal feed. A proposal to permit GM maize for ethanol production was withdrawn, and GM corn is generally banned.
  • Statement 3 is correct: The United States is indeed the world’s largest producer and exporter of corn, with the majority of its crop genetically modified.
  • Therefore, option B is the correct answer.

UPSC PYQ

Q.  With reference to the Trans-Pacific Partnership’, consider the following statements: (2017)

  1. It is an agreement among all the Pacific Rim countries except China and Russia.
  2. It is a strategic alliance for the purpose of maritime security only.

Which of the statements given above is/are correct?

a. 1 only

b. 2 only

c. Both 1 and 2

d. Neither 1 nor 2

Ans: (d)

 
UPSC CARE 17th September 2025 Current Affairs
UPSC CARE 15th September 2025 Current Affairs
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