News at a Glance
- Polity and Governance: EPFO withdrawals and Draining Employees’ Retirement Corpus
- Economy: Solar Industry in India
- International Relations: A Test of the ‘ASEAN Way’ and a New Chapter in Regional Integration
- Protest over China-backed Teesta Plan in Bangladesh: A Red Flag for Delhi
- Awards: Journalists Imprisoned in Belarus and Georgia Win EU’s Top Human Rights Award
- Science and Technology: India Proposes Strict Rules to Label AI Content Amid Growing Deepfake Risks
EPFO withdrawals and Draining Employees’ Retirement Corpus
Source: Indian Express
UPSC Relevance: GS 2 Polity and Governance, Social Security
Context: EPFO Withdrawal Issue
Why in News?
Frequent premature withdrawals from EPFO accounts are eroding retirement savings, with nearly half of members having less than ₹20,000 at final settlement.
Introduction
- The Employees’ Provident Fund Organisation (EPFO), India’s largest social security body, was designed to ensure financial security for formal sector employees’ post-retirement. However, recent data and trends show that frequent and premature withdrawals are significantly depleting members’ retirement corpus.
- The EPFO’s recent proposals to reform withdrawal norms — including introducing a 25% minimum balance requirement — stem from growing concern that members are exhausting their savings long before retirement.
The Core Issue: Erosion of the Retirement Corpus
- According to EPFO data reviewed by The Indian Express, nearly half of EPFO members have less than ₹20,000 at the time of final settlement, despite years of contributions. Moreover, 75% of members have less than ₹50,000, and 87% have less than ₹1 lakh when closing their accounts.
- This pattern shows that what is meant to be a retirement fund has effectively become a short-term financial cushion, defeating its intended purpose.
Understanding the Employment Profile of EPFO Members
- The structure of EPFO membership further explains this trend:
- Over 65% of members contribute at or below the wage ceiling of ₹15,000 per month (mandatory coverage limit).
- The remaining 35% contribute voluntarily with wages above ₹15,000.
- EPFO currently manages over 30 crore accounts, of which 7 crore are active contributing members, managing a corpus exceeding ₹26 lakh crore.
- This profile highlights the predominance of lower-income formal workers within the EPFO framework — individuals more likely to face income insecurity during unemployment or emergencies, prompting early withdrawals.
The Premature Withdrawal Pattern
- A striking 95% of total final settlement claims in 2024–25 were made prematurely — that is, before actual retirement.
- Key data points include:
- Out of 52.95 lakh final settlements, 24.21 lakh members (46%) were later found to have rejoined employment, suggesting withdrawals were made simply to access funds during short employment breaks.
- Around 66% of the total withdrawal amount was attributed to unemployment-related premature settlements under Para 69(2) of the EPF Scheme, 1952, which permits full withdrawal after two months of unemployment.
- This shows how frequent exits and re-entries have become systemic, eroding members’ long-term benefits.
(Image Source: Indian Express)
Consequences of Premature Settlements
- The EPFO has warned that frequent final settlements have severe implications:
- Loss of pension benefits: Members who withdraw from the Employees’ Pension Scheme (EPS) before completing 10 years of pensionable service lose future pension eligibility.
- Ineligibility for family pension: Breaks in service mean that dependents are deprived of family pension in case of the member’s death.
- Diminished corpus: Members end up with meagre retirement savings, undermining financial security in old age.
- The trend of declaring temporary unemployment to withdraw funds, followed by rejoining the same or similar employment, is particularly damaging in the long run.
Rising Partial Withdrawals: Post-Covid Surge
- Apart from final settlements, partial withdrawals have also surged across categories, especially after the Covid-19 pandemic:
(a) Illness Claims
- 2024–25: 3.25 crore claims worth ₹52,633.92 crore
- 2023–24: 2.10 crore claims worth ₹33,696.54 crore
- This marks a 55% year-on-year rise, reflecting growing use of EPF funds for health emergencies.
- Between 2017–2025, around 58% of members availed illness advances more than once, and 25% did so four times.
(b) Housing Withdrawals
- 2024–25: 15.52 lakh claims worth ₹23,712.46 crore
- 2017–18: 4.91 lakh claims worth ₹8,437.33 crore
- Indicates steady increase as housing remains a key aspiration for middle-income earners.
(c) Special Circumstances
- 2024–25: 6.99 lakh claims worth ₹1,016.73 crore (highest in 7 years)
- 2023–24: 3.99 lakh claims worth ₹588.77 crore
- These trends show the EPF’s growing role as a short-term relief instrument rather than a long-term pension asset.
EPFO’s Recent Reforms
- To address these distortions, EPFO has streamlined withdrawal categories from 13 to three major groups:
- Essential needs (illness, education, marriage)
- Housing needs
- Special circumstances
- Key changes include:
- Introduction of a minimum balance requirement of 25% in members’ accounts.
- Increased withdrawal flexibility:
- Up to 10 times for education during membership.
- Up to 5 times for marriage.
- Withdrawals under illness or special circumstances allowed 3 and 2 times per financial year, respectively.
- Raised waiting period for premature final settlement after unemployment from 2 months to 12 months (although up to 75% can still be withdrawn earlier).
Public Response and Clarifications
- These reforms sparked criticism, particularly from lower-income workers and political leaders who argued that the restrictions curb access to their own savings during crises.
- Following the backlash, the Ministry of Labour and Employment clarified:
- Members can withdraw 75% of their balance immediately after job loss.
- The remaining 25% can be withdrawn after 12 months of unemployment.
This ensures liquidity for workers while retaining a base for long-term retirement security.
The Policy Dilemma: Immediate Need vs. Long-term Security
- EPFO’s dilemma highlights the tension between:
- Short-term financial needs of workers, especially during job loss or illness, and
- Long-term pension adequacy for an ageing workforce.
- Frequent withdrawals, though understandable in a low-income context, compromise future financial stability. A senior EPFO official summarized this concern:
- “Every provident fund member should be a pensioner if they work for 30 years. But multiple withdrawals reduce corpus and pension. We must prepare for an ageing population that will depend on its own savings.”
Broader Implications for India’s Social Security System
- The data underlines a larger structural challenge:
- India lacks robust social protection mechanisms like universal health coverage or unemployment insurance.
- Consequently, the EPF serves as a default social safety net, even though it was not designed for that purpose.
- The erosion of EPF balances thus reflects both income insecurity and weak social safety architecture in the formal sector.
Conclusion
- The EPFO’s findings reveal a worrying reality: India’s formal sector workers are depleting their retirement savings prematurely, often due to economic vulnerabilities rather than imprudence.
- However, for these measures to be effective, they must be supported by broader labour reforms, income stability, and expanded social security nets beyond the EPF framework. Only then can India’s retirement system truly serve its intended purpose — ensuring dignity and security in old age.
CARE MCQ
Q1. Consider the following statements regarding Employees’ Provident Fund (EPF) withdrawals in India:
- Nearly 95% of final settlement claims in 2024–25 were made prematurely, often after a short unemployment spell.
- Partial withdrawals for illness, housing, and education have significantly increased post-Covid due to relaxed norms.
- Premature EPF withdrawals do not affect eligibility for pension under the Employees’ Pension Scheme (EPS).
- EPFO has introduced a minimum balance requirement of 25% to preserve long-term retirement corpus.
Which of the statements given above is/are correct?
(A) 1 and 2 only
(B) 1, 2 and 4 only
(C) 2 and 3 only
(D) 1, 3 and 4 only
Answer 1- B
Explanation
- Statement 1 is correct: Nearly 95% of final settlement claims in 2024–25 were made prematurely, often after a short period of unemployment, reflecting frequent depletion of retirement savings.
- Statement 2 is correct: Partial withdrawals for illness, housing, and education have increased significantly, particularly post-Covid, due to relaxed norms and easier claim processes.
- Statement 3 is incorrect: Premature withdrawals do affect eligibility for pension under the Employees’ Pension Scheme (EPS) if the member does not complete the required 10 years of pensionable service. Therefore, this statement is not correct.
- Statement 4 is correct: EPFO has introduced a minimum balance requirement of 25% to ensure that members retain a base corpus for long-term retirement security.
- Therefore, option B is the correct answer.
UPSC PYQ
Q. With reference to casual workers employed in India, consider the following statements: (2021)
- All casual workers are entitled for Employees Provident Fund coverage.
- All casual workers are entitled for regular working hours and overtime payment.
- The government can by a notification specify that an establishment or industry shall pay wages only through its bank account.
Which of the above statements are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans: (d)
Solar Industry in India
Source: The Hindu
UPSC Relevance: GS3 Economy, Renewable Energy
Context: Solar Industry in India
Why in News?
India has become the world’s third-largest solar power producer, but high domestic module costs and limited exports necessitate exploring new markets like Africa to sustain its solar manufacturing industry.
Introduction
- India’s solar energy sector has emerged as one of the most dynamic and transformative components of its renewable energy landscape. Over the past decade, India has made remarkable strides in both the generation and manufacturing of solar power.
- However, sustaining this growth and ensuring long-term competitiveness in the global market requires strategic interventions, particularly as the domestic market faces cost challenges and international competition.
(Image Source: IBEF)
India’s Solar Energy Growth Story
- India’s solar revolution began in earnest during the mid-2010s, following the sharp decline in the cost of solar power generation. Around 2017, the per-unit cost of solar electricity fell below that of coal, making solar a commercially viable and environmentally sustainable option.
- By 2024-25, India had achieved significant milestones:
- Generation: 1,08,494 GWh of solar power, surpassing Japan (96,459 GWh), making India the third-largest solar energy producer globally after China and the United States.
- Manufacturing capacity: Solar module manufacturing capacity rose dramatically from 2 GW in 2014 to a projected 100 GW in 2025, as per the Ministry of New and Renewable Energy (MNRE).
- Installed capacity: As of September 2025, India’s installed solar capacity reached 117 GW, a major contribution to its renewable energy mix.
- However, the effective production capacity remains around 85 GW, indicating the gap between installed capacity and actual operational output.
Climate Commitments and Future Targets
- India’s ambitious climate commitments under the Paris Agreement and subsequent COP meetings aim to source 50% of its power requirements from non-fossil fuel sources by 2030, roughly 500 GW of power capacity.
- Out of this, 250–280 GW is expected to come from solar energy alone.
- To achieve this, India must add approximately 30 GW annually till 2030.
- However, the actual addition in recent years has been between 17–23 GW per year, reflecting a considerable shortfall.
International Solar Alliance (ISA)
Objectives
Membership
Key Initiatives
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Challenges in Domestic Solar Manufacturing
While India’s internal capacity appears promising on paper, its solar manufacturing ecosystem faces critical structural constraints:
- High Production Costs:
- Indian solar modules are 1.5–2 times more expensive than Chinese modules.
- This is due to China’s economies of scale, control over key raw materials (such as polysilicon), and superior production technology.
- Dependence on Imports:
- Despite rising domestic capacity, India imports a large share of components—including wafers, cells, and inverters—from China and Southeast Asia.
- Limited Export Competitiveness:
- India managed to export around 4 GW of solar modules to the U.S. in 2024, primarily due to temporary U.S. restrictions on Chinese imports.
- In contrast, China exported around 236 GW in the same year—illustrating the scale gap.
- Domestic Demand Constraints:
- Schemes such as PM Kusum (for rural solar pumps) and PM Surya Ghar (for rooftop solar systems) have yet to achieve substantial nationwide adoption, limiting the internal demand base.
The Need for External Markets
- Given the potential supply glut in the coming years due to new manufacturing capacity, India’s solar industry must look outward for markets. Without external demand, the large domestic production base could face underutilization.
- In this context, Africa emerges as a strategic partner:
- Africa’s limited electrification, especially in rural areas, presents a major opportunity for solar-powered irrigation and decentralized energy systems.
- The International Solar Alliance (ISA)—jointly initiated by India and France—can serve as a diplomatic and institutional platform to promote India as a reliable solar partner for African nations.
- India’s PM Kusum and PM Surya Ghar models could be adapted for African conditions to expand access to clean energy and irrigation, boosting both agricultural productivity and India’s export prospects.
Strategic Implications
- Energy Security and Climate Leadership:
- Strengthening the solar industry enhances India’s energy independence and supports its Net Zero by 2070 goal.
- Becoming a solar supplier to the Global South aligns with India’s aspiration to be a leader in climate justice and sustainable development.
- Economic and Industrial Benefits:
- Expanding solar exports would create new jobs, enhance manufacturing competitiveness, and generate foreign exchange earnings.
- It could also attract foreign investment and technology collaborations under initiatives such as Make in India and Atmanirbhar Bharat.
- Diplomatic Leverage: Through the ISA and bilateral projects, India can strengthen South–South cooperation and geopolitical influence, particularly across Africa and Asia-Pacific regions.
Policy Measures Needed
- To sustain and expand its solar growth, India must adopt a mix of domestic and international strategies:
- Boost R&D and innovation in solar cell efficiency and energy storage technologies.
- Provide targeted subsidies or tax incentives to make domestic modules more competitive.
- Diversify raw material sources and build domestic capacity in polysilicon, wafers, and cells.
- Facilitate export linkages through the ISA, EXIM Bank financing, and diplomatic missions.
- Accelerate domestic adoption by streamlining rooftop solar approvals, improving grid integration, and enhancing financing for rural and small-scale installations.
Conclusion
- India’s solar story has reached a turning point — from adoption to leadership, from import dependence to export potential. The challenge now is to translate capacity into competitiveness, and ambition into lasting sustainability.
CARE MCQ
Q2. Consider the following statements regarding India’s solar power industry:
- India’s solar module manufacturing capacity is projected to reach 100 GW in 2025.
- Indian solar modules are currently cheaper than Chinese modules due to domestic production.
- The International Solar Alliance (ISA) can help India expand solar exports to Africa.
- Schemes like PM Kusum and PM Surya Ghar have achieved substantial domestic adoption.
Which of the above statements are correct?
A. 1 and 3 only
B. 2 and 4 only
C. 1, 3, and 4 only
D. All of the above
Answer 2- A
Explanation
- Statement 1 is correct: India’s manufacturing capacity is projected at 100 GW by 2025, though effective production is about 85 GW.
- Statement 2 is incorrect: Indian modules are 1.5–2 times more expensive than Chinese modules.
- Statement 3 is correct: The ISA can serve as a platform for promoting Indian solar exports to Africa.
- Statement 4 is incorrect: PM Kusum and PM Surya Ghar schemes are yet to achieve substantial domestic adoption.
- Therefore, option A is the correct answer.
UPSC PYQ
Q. Consider the following statements: (2016)
- The International Solar Alliance was launched at the United Nations Climate Change Conference in 2015.
- The Alliance includes all the member countries of the United Nations.
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: (a)
A Test of the ‘ASEAN Way’ and a New Chapter in Regional Integration
Source: The Diplomat
UPSC Relevance: GS2 International Relations
Context: ASEAN
Why in News?
- Timor-Leste’s accession to ASEAN tests the bloc’s consensus-based “ASEAN Way” and presents both economic and strategic opportunities for the country.
Introduction
- The expected admission of Timor-Leste into the Association of Southeast Asian Nations (ASEAN) marks a historic and transformative moment for both parties.
- For Timor-Leste, the youngest and one of the poorest nations in Asia, ASEAN membership represents an avenue for economic integration, political affirmation, and regional visibility.
- For ASEAN, this admission tests the limits of its long-held consensus-based approach — often called the “ASEAN Way” — and opens the door for institutional introspection and possible reform.
Historical Background: From Independence to Integration
- Timor-Leste’s path to regional inclusion has been long and complex.
- Early aspirations: Even before Indonesia’s invasion in 1975, East Timor’s nationalist leaders envisioned a state with close ties to ASEAN.
- Post-occupation context: Following decades of resistance and the 1999 New York Agreements, the United Nations Transitional Administration guided the country toward independence in 2002.
- Formal engagement: Timor-Leste signed the ASEAN Treaty of Amity and Cooperation (2007) and applied formally for membership in 2011.
- Strategic goals: Its Strategic Development Plan (2011–2030) highlighted ASEAN membership as vital to geographic, economic, and cultural integration.
- By 2014, the country met the Article 6 admission criteria of the ASEAN Charter — including geographic location, recognition by member states, adherence to ASEAN principles, and willingness to fulfill obligations. However, membership was delayed for over a decade due to internal hesitations within ASEAN.
ASEAN’s Hesitation and the ‘ASEAN Way’
ASEAN’s reluctance to admit Timor-Leste revealed the limits of its decision-making framework — the “ASEAN Way”, characterized by:
- Consensus-based decision-making
- Non-interference in internal affairs
- Respect for sovereignty and gradualism
- While this approach has ensured unity among diverse members since 1967, it has also constrained institutional reform and timely decision-making.
- Some members, particularly Singapore and Myanmar, expressed reservations about Timor-Leste’s readiness, citing weak infrastructure and limited administrative capacity.
- The final breakthrough came with ASEAN’s “in-principle” admission of Timor-Leste in 2022, followed by a full decision to admit it as the 11th member in May 2025.
- This prolonged process became a stress test for ASEAN’s flexibility, showing how consensus can delay progress even when political will exists.
Timor-Leste’s Strategic Motivations
- Timor-Leste’s pursuit of ASEAN membership is rooted in both economic necessity and strategic foresight:
- Economic Diversification:
- The nation’s economy is heavily dependent on oil and gas, which account for the bulk of its revenues.
- Membership in ASEAN and the Regional Comprehensive Economic Partnership (RCEP) offers opportunities to expand trade, attract investment, and foster non-oil sectors such as agriculture and tourism.
- Reduced External Dependence:
- Declining U.S. aid and Washington’s imposition of 10% tariffs on Timorese exports increased its economic vulnerability.
- In contrast, a 2023 Comprehensive Strategic Partnership with China deepened its participation in the Maritime Silk Road, though raising concerns about dependency on Beijing.
- Human Resource Development:
- ASEAN integration demands regulatory harmonization and skilled governance.
- Programs like Singapore’s E-Stars initiative are helping Timorese officials build the necessary administrative and diplomatic capacity.
- Regional Stability and Visibility:
- Membership provides an institutional platform to engage in broader security and diplomatic dialogues, including the ASEAN Regional Forum (ARF) and East Asia Summit (EAS).
ASEAN’s Institutional and Political Challenges
- Timor-Leste’s entry also mirrors ASEAN’s own internal contradictions.
- The bloc’s consensus rule has often paralyzed decision-making, evident in its muted response to crises such as Myanmar’s military coup and South China Sea disputes.
- Many within ASEAN now advocate for qualified majority voting in technical and economic matters — a reform resisted by traditionalists citing sovereignty concerns.
- The “ASEAN-X” formula, allowing flexible participation by willing members, is being discussed to avoid gridlock.
- Hence, Timor-Leste’s accession symbolizes not just expansion, but the need to modernize ASEAN’s institutional architecture to remain relevant amid great power rivalry.
(Image Source: The Diplomat)
Economic Implications and Developmental Challenges
While ASEAN membership opens new economic avenues, it also poses structural challenges for Timor-Leste:
Capacity and Infrastructure Gaps:
- Timor-Leste has the lowest GDP per capita in Southeast Asia and a fragile bureaucracy.
- Its integration into the ASEAN Free Trade Area (AFTA) will likely be gradual, as was the case with Vietnam and Laos.
Trade and Investment Potential:
- Over 60% of Timor-Leste’s imports already come from ASEAN states.
- Harmonizing customs regulations and improving fiscal management can attract FDI, particularly in agriculture, fisheries, and small-scale industries.
Human Capital and Employment:
- Unemployment, especially among youth (~20%), remains a pressing issue.
- Increased intra-ASEAN mobility could provide opportunities for the workforce, but also demands improved education and vocational skills.
Economic Diversification and Sustainability:
- ASEAN integration may stimulate non-oil sectors, especially value-added agriculture and sustainable tourism — essential for long-term stability.
Geopolitical Context and the U.S.–China Factor
- Timor-Leste’s accession occurs amid intensifying U.S.–China rivalry in Southeast Asia.
- The country’s strategic partnership with China strengthens its infrastructure base but also raises ASEAN’s concerns over potential Chinese leverage.
- Timor-Leste’s foreign policy emphasizes neutrality and non-alignment, consistent with ASEAN’s preference for maintaining regional autonomy amid global polarization.
- ASEAN’s challenge is to maintain centrality and avoid fragmentation in a multipolar environment — a goal complicated by differing member alignments.
ASEAN at a Crossroads: Reform and Reflection
- As ASEAN approaches its 60th anniversary in 2027, internal debates about the relevance of its model are intensifying.
- The “ASEAN Community Vision 2045”, adopted in May 2025, recognizes the need for structural reforms to enhance efficiency, adaptability, and inclusiveness.
- Timor-Leste’s admission thus serves as a catalyst for introspection, urging the bloc to reconcile sovereignty concerns with the imperatives of regional integration.
Conclusion
- Timor-Leste’s long-awaited ASEAN membership represents far more than a diplomatic milestone — it is a test case for ASEAN’s adaptability and Timor-Leste’s nation-building capacity. As President José Ramos-Horta aptly stated, “We would have to be really dumb and lazy if we do not benefit because there is potential for taking advantage of ASEAN membership.”
CARE MCQ
Q3. Which of the following statements correctly describe ASEAN’s enlargement process?
- Vietnam joined in 1995, Laos and Myanmar in 1997, and Cambodia in 1999.
- ASEAN applies differentiated integration to accommodate varying levels of development among new members.
- Membership decisions are based solely on economic readiness.
Code:
(A) 1 and 2 only
(B) 1 and 3 only
(C) 2 and 3 only
(D) 1, 2, and 3
Answer 3: A
Explanation
- Statement 1 is correct: Vietnam joined ASEAN in 1995, Laos and Myanmar in 1997, and Cambodia in 1999. This sequence reflects ASEAN’s historical enlargement process.
- Statement 2 is correct: ASEAN applies differentiated integration to accommodate varying levels of development among new members, allowing gradual participation in economic and institutional commitments.
- Statement 3 is incorrect: Membership decisions are not based solely on economic readiness; political, strategic, and cultural factors also play a significant role.
- Therefore, option A is the correct answer.
UPSC PYQ
Q. Consider the following countries: (2018)
- Australia
- Canada
- China
- India
- Japan
- USA
Which of the above are among the ‘free-trade partners’ of ASEAN?
(a) 1, 2, 4 and 5
(b) 3, 4, 5 and 6
(c) 1, 3, 4 and 5
(d) 2, 3, 4 and 6
Ans: (c)
Protest over China-backed Teesta Plan in Bangladesh: A Red Flag for Delhi
Source: India Today
UPSC Relevance: GS 2 International Relations, India’s neighbourhood relations
Context: Teesta River issue
Why in News?
Protests in Bangladesh demand the implementation of the China-backed Teesta Master Plan amid stalled water-sharing talks with India, raising strategic concerns for New Delhi near the Siliguri Corridor.
Background
- Recent protests in Bangladesh demanding the implementation of the China-backed Teesta River Master Plan have triggered fresh concerns in New Delhi. The development comes at a time when Teesta water-sharing negotiations between India and Bangladesh remain stalled for over a decade.
- The involvement of China—through infrastructure investments and proposed river management projects—adds a strategic dimension to what was primarily a bilateral water-sharing issue.
- For India, the Teesta River is not merely a matter of water diplomacy but also of national security, given the river’s geographical proximity to the Siliguri Corridor (Chicken’s Neck) — a critical and narrow land bridge connecting mainland India to the Northeastern states.
Origin and Course of the Teesta River
- The Teesta River originates from the Tso Lhamo Lake in the eastern Himalayas of Sikkim, India.
- It flows through Sikkim and West Bengal, covering around 315 km in India before entering Bangladesh.
- In Bangladesh, it traverses about 121 km through Rangpur division, ultimately joining the Brahmaputra (Jamuna) River near Chilmari.
- The river is vital for irrigation, drinking water, and livelihoods in both countries, especially in northern Bangladesh and northern West Bengal.
(Image Source: India Today)
Background: The Stalled Teesta Water-Sharing Agreement
- Efforts to formalize the Teesta water-sharing deal between India and Bangladesh date back to the 1980s.
- In 2011, a draft agreement proposed that India would get 42.5% and Bangladesh 37.5% of Teesta’s waters.
- However, the deal was never signed due to political opposition from the West Bengal government, which feared that sharing additional water would harm the state’s agriculture during the lean season.
- Since then, negotiations have stalled, creating frustration in Bangladesh, which claims it faces severe water shortages during the dry months (December–May) and flooding during monsoons, due to lack of coordinated management.
China’s Entry: The Teesta River Master Plan
- In response to India’s prolonged inaction, Bangladesh has been considering a $1 billion Chinese-backed Teesta River Comprehensive Management and Restoration Project, also called the Teesta Master Plan.
Key Features of the Chinese Proposal
- River Dredging and Embankment Construction to prevent floods and improve navigation.
- Irrigation Infrastructure to enhance agricultural productivity in northern Bangladesh.
- Water Reservoirs and Canals to ensure year-round water supply.
- Hydropower and Economic Zones along the river basin.
- China has proposed implementing the plan under its Belt and Road Initiative (BRI) framework, which has already seen major investments in ports and infrastructure across South Asia.
Recent Developments: Protests and Public Sentiment in Bangladesh
- In October 2025, large rallies and torchlight processions were held in Chattogram and across the Rangpur division, demanding immediate implementation of the Teesta Master Plan.
- Protesters accused India of “water injustice” and urged the Bangladesh government to move ahead with China’s plan.
- Organizers claimed the project could transform northern Bangladesh, improve agriculture, and generate employment opportunities.
- These protests indicate a growing domestic pressure on Dhaka to act independently of New Delhi’s concerns, particularly as water scarcity becomes a politically sensitive issue ahead of national elections.
Why China’s Role Raises Red Flags for India
1. Strategic Proximity to the Siliguri Corridor
- The Teesta River Basin lies close to India’s Siliguri Corridor—a narrow, 20–22 km wide stretch that connects India’s Northeast with the rest of the country.
Any Chinese presence or infrastructure development in the nearby Bangladeshi region could pose security threats or surveillance risks, especially during geopolitical tensions.
2. Expansion of Chinese Influence in South Asia
- China’s deepening footprint through the Teesta project mirrors its strategy in other South Asian countries—such as the Hambantota Port in Sri Lanka and Gwadar Port in Pakistan—where economic projects have evolved into strategic assets.
For India, this represents another step in Beijing’s encirclement strategy under the so-called “String of Pearls” framework.
3. Undermining India-Bangladesh Bilateral Mechanisms
- Water cooperation has been a cornerstone of India-Bangladesh relations. A Chinese role could bypass bilateral frameworks like the Joint Rivers Commission (JRC), undermining trust and diplomatic engagement between the two neighbours.
Security and Environmental Risks
- Chinese involvement in hydrological and engineering works near shared river systems may affect water flow patterns, sedimentation, and ecological balance.
- India fears potential data asymmetry and strategic manipulation of river management information.
Timing Amid Ganga Treaty Expiry
- The protests and Chinese push coincide with the upcoming expiry of the 1996 Ganga Water Sharing Treaty in 2026.
- Bangladesh’s pursuit of an alternative water deal with China could signal a shift in its diplomatic orientation, complicating future negotiations with India on shared rivers.
India’s Concerns and Policy Challenges
- For New Delhi, the Teesta issue involves balancing multiple objectives:
- Maintaining strategic influence in South Asia amid China’s assertiveness.
- Preserving security of the Siliguri Corridor.
- Ensuring domestic consensus with the West Bengal government on water-sharing.
- Sustaining trust-based cooperation with Dhaka, which has been a key partner in counterterrorism, trade, and connectivity.
- India has recently explored alternative projects, including offering grant-based assistance for Teesta basin development, but implementation delays have weakened its position vis-à-vis China’s ready financing.
Conclusion
- The China-backed Teesta Master Plan represents more than a river management project—it is a test case for India’s regional influence and strategic resilience in South Asia.
CARE MCQ
Q4. Consider the following statements regarding the Teesta River issue:
- The Teesta River originates in Sikkim, flows through West Bengal, and joins the Brahmaputra in Bangladesh.
- The Teesta Master Plan, backed by China, aims to address water scarcity and flood management in northern Bangladesh.
- India has expressed strategic concerns because of the Teesta Master Plan’s proximity to the Siliguri Corridor.
- The 1996 Ganga Water Sharing Treaty governs the sharing of Teesta River waters between India and Bangladesh.
Which of the statements given above is/are correct?
A) 1 and 2 only
B) 1, 2 and 3 only
C) 2, 3 and 4 only
D) 1, 2, 3 and 4
Answer 4- B
Explanation
- Statement 1 is correct: The Teesta originates in Sikkim and flows through West Bengal into Bangladesh.
- Statement 2 is correct: The China-backed Teesta Master Plan aims to improve water management and agricultural productivity in northern Bangladesh.
- Statement 3 is correct: India is concerned due to the plan’s proximity to the strategic Siliguri Corridor.
- Statement 4 is incorrect: The 1996 Ganga Water Sharing Treaty pertains to the Ganga River, not the Teesta; Teesta’s water-sharing agreement is still pending.
- Therefore, option B is the correct answer.
UPSC PYQ
Q. With reference to river Teesta, consider the following Statements (2017)
- The source of river Teesta is the same as that of Brahamputra but it flows through Sikkim
- River Rangeet originates in Sikkim and it is a tributary of river Teesta.
- River Teesta flows into Bay of Bengal on the border of India and Bangladesh.
Which of the statements given above is/are correct?
- 1 and 3 only
- 2 only
- 1 and 3 only
- 1, 2 and 3
Ans: (b)
Journalists Imprisoned in Belarus and Georgia Win EU’s Top Human Rights Award
Source: The Hindu
UPSC Relevance: Awards and Honours, GS2 International Relations
Context: EU’s Top Human Rights Award
Why in News?
Two imprisoned journalists from Belarus and Georgia, Andrzej Poczobut and Mzia Amaghlobeli, won the EU’s Sakharov Prize 2025 for defending human rights and press freedom.
Introduction
- The European Union’s prestigious Sakharov Prize for Freedom of Thought 2025 has been jointly awarded to Andrzej Poczobut from Belarus and Mzia Amaghlobeli from Georgia — two journalists imprisoned for their commitment to truth, press freedom, and democratic ideals.
- Their recognition underlines the EU’s continued emphasis on defending freedom of expression and supporting journalists persecuted under authoritarian regimes.
(Image Source: The Hindu)
About the Sakharov Prize
- Full Name: Sakharov Prize for Freedom of Thought
- Established: 1988 by the European Parliament
- Named After: Andrei Sakharov, Soviet physicist, dissident, and Nobel Peace Prize laureate, known for his human rights activism.
- Objective: To honour individuals or groups who have made exceptional contributions in defending human rights and fundamental freedoms.
- Reward: €50,000 and recognition by the European Parliament at a ceremony in Strasbourg.
- The prize is considered the highest tribute paid by the EU to human rights defenders and is often seen as a precursor to the Nobel Peace Prize, with several past recipients later winning that honour.
The 2025 Laureates
1. Andrzej Poczobut (Belarus)
- Profession: Correspondent for the Polish daily Gazeta Wyborcza and representative of the Polish minority in Belarus.
- Charges: Convicted of “harming Belarus’ national security.”
- Sentence: Eight years imprisonment in the Novopolotsk penal colony.
- Background:
Poczobut is a long-time critic of the Alexander Lukashenko regime, known for suppressing dissent and restricting media freedom. His reporting on political repression and minority rights made him a target of state persecution. - His imprisonment is emblematic of Belarus’s broader crackdown on independent media following the disputed 2020 presidential elections, where protests were violently suppressed and journalists were arrested en masse.
2. Mzia Amaghlobeli (Georgia)
- Profession: Founder of two of Georgia’s leading independent media outlets.
- Charges: Convicted in August 2025 for allegedly slapping a police chief during an anti-government protest.
- Sentence: Two years imprisonment.
- Context:
- Rights organizations denounced her conviction as a politically motivated attempt to silence dissent. Amaghlobeli’s work has focused on government accountability and corruption, often challenging the ruling establishment.
- Her case reflects growing concerns about democratic backsliding in Georgia, where the independence of the press and judiciary has been increasingly questioned.
European Parliament’s Statement
- European Parliament President Roberta Metsola described both laureates as “symbols of the struggle for freedom and democracy,” adding that they were imprisoned on trumped-up charges simply for “doing their work and speaking out against injustice.”
- This recognition serves as a strong message of solidarity from the EU toward journalists and activists facing oppression across Europe and its neighbourhood.
Significance of the Award
- Defense of Press Freedom: The award underscores the EU’s commitment to safeguarding media independence as a core democratic value.
- Symbolic Support for Political Prisoners: By honouring imprisoned journalists, the EU highlights the plight of those who resist state censorship and endure persecution for truth-telling.
- Geopolitical Signal: Awarding figures from Belarus and Georgia — two countries at the intersection of European and Russian influence — carries a political message about EU’s support for democratic movements in its Eastern neighbourhood.
- Past Laureates and Legacy
- Notable recipients of the Sakharov Prize include:
- Nelson Mandela (1988) – South African anti-apartheid leader.
- Malala Yousafzai (2013) – Pakistani education activist.
- Denis Mukwege (2014) – Congolese doctor and Nobel Peace laureate.
- Nadia Murad (2016) – Yazidi activist and Nobel laureate.
- Sviatlana Tsikhanouskaya and Belarusian opposition (2020).
- María Corina Machado (2024) – Venezuelan opposition leader and 2025 Nobel Peace Prize winner.
- Such recognition often amplifies global awareness about human rights crises and increases international pressure on repressive governments.
CARE MCQ
Q5. The 2025 Sakharov Prize for Freedom of Thought was awarded to journalists Andrzej Poczobut and Mzia Amaghlobeli primarily for:
(A) Promoting EU integration in Eastern Europe
(B) Strengthening media-business partnerships
(C) Defending human rights and press freedom under authoritarian pressures
(D) Reporting on climate change initiatives
Answer 5- C
Explanation
- The Sakharov Prize honours individuals or groups defending human rights and fundamental freedoms. Poczobut (Belarus) and Amaghlobeli (Georgia) were recognized while imprisoned for their journalistic work exposing injustice and advocating democratic values.
- Therefore, option C is the correct answer.
UPSC PYQ
Q. Consider the following statements: (2024)
Statement-I: The European Parliament approved The Net-Zero Industry Act recently.
Statement-II: The European Union intends to achieve carbon neutrality by 2040 and therefore aims to develop all of its own clean technology by that time.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
(b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-1
(c) Statement-I is correct, but Statement-II is incorrect
(d) Statement-I is incorrect, but Statement-II is correct
Ans: C
India Proposes Strict Rules to Label AI Content Amid Growing Deepfake Risks
Source: Reuters
UPSC Relevance: GS 3 Science and Technology, Artificial Intelligence
Context: AI Content
Why in News?
India proposes mandatory labelling of AI-generated content to combat deepfakes, misinformation, and ensure transparency in digital media.
Introduction
- In a significant move towards regulating artificial intelligence (AI) and combating misinformation, the Government of India has proposed new rules mandating that all AI-generated content be clearly labelled.
- The proposal, announced on October 22, 2025, seeks to address the growing misuse of generative AI tools such as deepfakes, which have emerged as major threats to social harmony, election integrity, and individual privacy.
- The draft guidelines place India among the few countries—alongside the European Union and China—actively pursuing legal frameworks to ensure transparency and accountability in AI deployment.
Background and Rationale
- India, with nearly one billion internet users, is one of the largest digital ecosystems in the world. This vast and diverse online space is prone to the rapid spread of fake news, misinformation, and manipulated content.
- The rise of AI-generated deepfakes—highly realistic but fabricated videos or images—has intensified these risks, particularly during politically sensitive periods like elections.
- Instances of AI tools being used to impersonate public figures, spread false narratives, or manipulate social media discourse have prompted the government to strengthen oversight mechanisms.
- Courts in India are already witnessing cases related to AI misuse, including a petition filed by Bollywood actors Abhishek Bachchan and Aishwarya Rai Bachchan seeking removal of AI-generated videos violating their intellectual property rights.
Key Provisions of the Proposed Rules
- The draft proposal released by the Ministry of Electronics and Information Technology (MeitY) introduces several key measures aimed at ensuring traceability, accountability, and transparency in AI-generated content:
Mandatory Labelling of AI-Generated Content
- AI-generated visuals, videos, or images must include a visible label covering at least 10% of the surface area of the display.
- For audio clips, AI-generated segments must be labelled for at least the initial 10% of the duration.
- This labelling ensures users can easily identify synthetic or manipulated content.
User Declarations and Verification
- Social media and content-sharing platforms must obtain a declaration from users indicating whether the content uploaded is AI-generated.
- Platforms are required to deploy technical measures and algorithms to verify these declarations and prevent misuse.
Metadata Traceability and Transparency
- All AI-generated media must include metadata markers to trace the origin and modification history of the content.
- This enables authorities and platforms to track the source of misinformation and identify responsible entities.
Public Consultation and Compliance Timeline
- The government has invited public and industry feedback on the draft proposal by November 6, 2025, after which a final version is expected to be notified.
- Once implemented, compliance will be mandatory for global and domestic AI firms operating in India, including OpenAI, Meta, X (formerly Twitter), and Google.
(Image Source: reuters.com)
Government’s Concerns and Policy Objectives
- The Indian government has emphasized that the potential misuse of generative AI to cause harm—such as spreading misinformation, manipulating elections, or impersonating individuals—has grown “significantly.”
- Hence, the proposed regulations aim to:
- Protect citizens from misinformation and identity theft.
- Preserve democratic integrity, especially during elections.
- Promote responsible innovation by ensuring AI is used ethically.
- Enhance digital literacy and transparency in public communication.
Global Context
India’s proposal aligns with global efforts to regulate AI transparency:
- The European Union’s AI Act seeks mandatory disclosures for AI-generated content.
- China has already introduced rules requiring clear identification of synthetic media.
- The United States is discussing similar initiatives to counter deepfake-related electoral risks.
- By taking early action, India positions itself as a regulatory leader in AI governance, balancing innovation with safety and ethics.
Economic and Technological Implications
- India is emerging as a major market for AI companies. OpenAI CEO Sam Altman revealed in February 2025 that India is the company’s second-largest market by user base, which has tripled over the past year.
- These regulations, while increasing compliance costs for AI firms, could also:
- Foster trust and reliability in digital platforms.
- Encourage ethical AI startups aligned with transparency norms.
- Create new opportunities in AI auditing, content verification, and cybersecurity sectors.
- However, critics caution that excessive regulation might slow innovation or burden small developers unless accompanied by supportive frameworks for responsible AI development.
Judicial Dimension: Deepfakes and Legal Accountability
The judiciary’s engagement with AI-related disputes reflects growing awareness of digital rights and IP protection. In recent cases, Indian courts have:
- Addressed intellectual property violations arising from unauthorized use of AI-generated celebrity likenesses.
- Considered legal liability of platforms hosting such content. These developments signal a shift toward integrated legal-technical governance of AI systems.
Conclusion
- India’s move to mandate clear labelling of AI-generated content marks a proactive and necessary step in safeguarding public trust in the digital information ecosystem. By setting quantifiable and transparent standards, the proposal seeks to balance innovation with accountability.
CARE MCQ
Q6. Consider the following statements regarding India’s proposed rules on AI-generated content:
- AI-generated visuals must have a visible label covering at least 10% of the display surface.
- Social media platforms must obtain a declaration from users about AI-generated content.
- Metadata traceability is required to track the origin and modification of AI-generated media.
- The rules are mandatory only for domestic AI firms, not global platforms operating in India.
Which of the statements given above is/are correct?
(A) 1 and 2 only
(B) 1, 2 and 3 only
(C) 2, 3 and 4 only
(D) 1, 3 and 4 only
Answer 6-B
Explanation
- Statement 1 is correct: The draft proposal requires that AI-generated visuals cover at least 10% of surface area with a label.
- Statement 2 is correct: Platforms must obtain a user declaration on whether uploaded content is AI-generated.
- Statement 3 is correct: Metadata traceability is required to track the source and modifications of AI content.
- Statement 4 is incorrect: The rules apply to all AI platforms operating in India, including global firms such as OpenAI, Google, and Meta.
- Therefore, option B is the correct answer.
UPSC PYQ
Q. With the present state of development, Artificial Intelligence can effectively do which of the following? (2020)
- Bring down electricity consumption in industrial units
- Create meaningful short stories and songs
- Disease diagnosis
- Text-to-Speech Conversion
- Wireless transmission of electrical energy
Select the correct answer using the code given below:
(a) 1, 2, 3 and 5 only
(b) 1, 3 and 4 only
(c) 2, 4 and 5 only
(d) 1, 2, 3, 4 and 5
Ans: (b)