UPSC CARE 23rd September 2025 Current Affairs
News at a Glance
- International Relations: India, Morocco Sign Defence Cooperation MoU to Boost Strategic Partnership
- Burkina Faso, Mali and Niger Withdraw from International Criminal Court
- Science and Technology: India’s Strategy for Protecting Satellites in Space and Security Measures
- India Open to Encouraging SMR-Led Nuclear Energy Push to Power AI Data Center Boom
- Economy: GST 2.0: Implications of India’s Tax Overhaul for Consumers and Industry
- Environment and Ecology: Fossil Fuel Plans Overshoot Paris Target by 120%
India, Morocco Sign Defence Cooperation MoU to Boost Strategic Partnership
Source: The Hindu
UPSC Relevance: GS2 International Relations
Context: India-Morocco relations
Why in News?
India and Morocco signed a Defence Cooperation MoU establishing a framework for joint exercises, military training, defence industry collaboration, and capacity building.
Introduction
- India and Morocco signed a Memorandum of Understanding (MoU) on Defence Cooperation in Rabat.
- Defence Minister Rajnath Singh announced the opening of a new Defence Wing at the Embassy of India in Morocco’s capital, further institutionalising bilateral defence ties.
Background of India–Morocco Relations
- India and Morocco share historical civilisational linkages and have gradually strengthened political, economic, and cultural ties.
- Morocco is a key player in North Africa and strategically located between the Atlantic Ocean and the Mediterranean Sea, making it significant for India’s West Asia and Africa outreach.
- In recent years, cooperation has expanded in areas such as fertilizer trade, renewable energy, counter-terrorism, and defence.
- Both countries face common security challenges such as terrorism, piracy, and cyber threats, and share an interest in peacekeeping and maritime security.
Key Features of the MoU
- The MoU establishes a robust institutional framework to deepen defence partnership across multiple domains:
- Defence Industry Cooperation
- Collaboration in co-development and co-production of defence systems.
- Opportunities for Indian companies to meet Morocco’s defence requirements, particularly in drones, counter-drone systems, and military medicine.
- Joint Exercises & Training
- Regular bilateral military exercises to enhance interoperability.
- Specialised training programmes for Moroccan armed forces in Indian defence institutions.
- Capacity Building
- Technology transfer and skill development in defence-related sectors.
- Establishing mechanisms for expert exchanges between armed forces.
- Thematic Cooperation Areas
- Counter-terrorism
- Maritime security (Indian Ocean–Atlantic corridors)
- Cyber defence
- Peacekeeping operations (UN framework)
- Military medicine and logistics support
- Institutional Mechanism
- Establishment of a Defence Wing at the Embassy of India in Rabat for smooth coordination and implementation of the roadmap.
(image Source: The Hindu)
Significance of the Agreement
- For India
- Strategic Outreach to Africa & Atlantic: Strengthens India’s presence in North Africa and enhances cooperation in Atlantic maritime security.
- Defence Exports & Industry Promotion: Provides opportunities for Indian defence firms in weapons, drones, cyber systems, and logistics solutions.
- Counter-terrorism Synergy: Cooperation with Morocco, which has experience in deradicalisation programmes, complements India’s counter-terrorism efforts.
- Energy & Fertilizer Security Linkages: Deepens trust in a country that is a major phosphate and fertilizer supplier to India.
- For Morocco
- Access to Indian Defence Expertise: Leverages India’s cost-effective defence technologies for modernisation.
- Military Training & Capacity Building: Gains from Indian defence institutions and peacekeeping experience.
- Diversification of Partnerships: Reduces dependency on Western suppliers by engaging with India.
- For Bilateral & Global Security
- Enhances South–South cooperation in defence.
- Strengthens multilateral collaboration in UN peacekeeping operations.
- Supports stability in the wider Indo–Atlantic region, countering piracy, terrorism, and maritime threats.
Broader Geostrategic Context
- India’s defence outreach aligns with the India–Africa Defence Dialogue (IADD) and Defence Expo Africa participation.
- Morocco, as a gateway to Europe, Africa, and the Middle East, becomes a critical partner in India’s Africa policy and Indo-Atlantic vision.
- The partnership complements India’s growing engagement with other African states (Kenya, Tanzania, Seychelles) in the maritime domain.
Way Forward
- Operationalise the Defence Wing: Ensure seamless coordination of joint programmes.
- Institutionalise Joint Exercises: Regular naval and counter-terrorism drills to build interoperability.
- Encourage Defence Industry Linkages: Facilitate joint ventures between Indian and Moroccan firms.
- Expand Multilateral Cooperation: Work together in UN peacekeeping missions, counter-piracy operations, and cyber defence frameworks.
- Integrate with Wider Indian Ocean–Atlantic Strategy: Use Morocco’s location to strengthen India’s maritime connectivity and security architecture.
CARE MCQ
Q1. Consider the following statements regarding the India–Morocco Defence Cooperation MoU (2025):
- The MoU includes cooperation in counter-terrorism, maritime security, cyber defence, and peacekeeping operations.
- India announced the opening of a Defence Wing at its embassy in Rabat to facilitate the partnership.
- The agreement allows for joint development and co-production of defence equipment.
- Morocco will participate in India’s domestic GST reforms as part of the MoU.
Which of the statements given above is/are correct?
A) 1, 2, and 3 only
B) 1 and 4 only
C) 2 and 3 only
D) All of the above
Answer 1- A
Explanation
- Statement 1 is correct: The MoU explicitly covers counter-terrorism, maritime security, cyber defence, peacekeeping operations, military medicine, and expert exchanges.
- Statement 2 is correct: Defence Minister Rajnath Singh announced the opening of a Defence Wing at the Embassy of India in Rabat to support implementation and coordination of the MoU.
- Statement 3 is correct: The agreement provides for co-development and co-production of defence equipment, highlighting defence industry collaboration.
- Statement 4 is incorrect: Morocco is not involved in India’s domestic GST reforms; this is unrelated to the defence cooperation MoU.
- Therefore, option A is the correct answer.
UPSC PYQ
Q. The term “two-state solution” is sometimes mentioned in the news in the context of the affairs of (2018)
(a) China
(b) Israel
(c) Iraq
(d) Yemen
Ans: (b)
Burkina Faso, Mali and Niger Withdraw from International Criminal Court
Source: The Hindu
UPSC Relevance: GS2 International Relations
Context: International Criminal Court
Why in News?
Burkina Faso, Mali, and Niger, citing neo-colonial bias and ICC ineffectiveness, announced their withdrawal from the International Criminal Court.
Introduction
- The military-led West African nations of Burkina Faso, Mali, and Niger announced their withdrawal from the International Criminal Court (ICC).
- The three countries, which have experienced coups between 2020 and 2023, criticized the court as a “neo-colonial instrument in the hands of imperialism” in a joint statement.
- They also declared their intention to establish indigenous mechanisms for peace and justice.
(Image Source: the Hindu)
International Criminal Court (ICC):
- Established in 2002, the ICC is based in The Hague, Netherlands, and is the world’s first permanent international court to prosecute individuals for war crimes, crimes against humanity, genocide, and crimes of aggression.
- The ICC operates on the principle of complementarity, meaning it intervenes only when national courts are unwilling or unable to prosecute such crimes.
- Over the years, the ICC has faced criticism for perceived bias against African nations, as most of its investigations and prosecutions have focused on Africa.
Political Situation in the Three Countries:
- Burkina Faso, Mali, and Niger are part of the Sahel region, plagued by terrorism from jihadist groups linked to Al-Qaeda and ISIS.
- Military juntas came to power through coups between 2020 and 2023, citing failures of civilian governments to ensure security.
- The three countries have formed a confederation called the Alliance of Sahel States (AES), aiming to cooperate on security and political matters independently of Western influence.
- Relationship with the West and Russia:
- These countries have distanced themselves from traditional Western partners, especially France, the former colonial ruler in the region.
- They have increasingly strengthened ties with Russia, a country also at odds with the ICC, with President Vladimir Putin under an ICC arrest warrant since March 2023 for the war in Ukraine.
Reasons for Withdrawal
- Accusations of Neo-Colonialism: The three nations labeled the ICC as an “instrument of neo-colonialist repression”, reflecting a broader resentment in Africa over Western influence in continental affairs.
- Perceived Ineffectiveness: The governments argued that the ICC has failed to prosecute proven war crimes and crimes against humanity effectively. They claim the court has been selective in its focus, disproportionately targeting African nations while overlooking serious crimes elsewhere.
- Desire for Indigenous Mechanisms: The countries emphasized the creation of local frameworks for peace and justice, seeking solutions tailored to their cultural, social, and political contexts rather than relying on an international institution.
Legal and Procedural Aspects
- According to the Rome Statute (the ICC’s founding treaty), a country’s withdrawal takes effect one year after the official notification to the UN Secretary-General.
- Until that period ends, the country remains bound by obligations under the ICC statute, including ongoing investigations and cases.
Implications
For the ICC:
- This marks a significant challenge to the legitimacy and universality of the ICC, as multiple African nations have previously criticized or threatened withdrawal.
- It highlights ongoing tensions between global justice mechanisms and national sovereignty.
For the Sahel Region:
- The move signals a shift away from Western-led interventions toward alternative international alignments.
- It may embolden the military regimes, but it also raises concerns about impunity for crimes committed by state forces, as local mechanisms may lack the independence and resources of the ICC.
For Global Politics:
- The countries’ closer alignment with Russia could reflect a broader geopolitical strategy to counterbalance Western influence in Africa.
- It underscores the growing contest between Western legal norms and regional sovereignty claims in international law.
Human Rights Concerns:
- While the countries cite sovereignty and neo-colonial concerns, human rights groups worry that withdrawal may weaken accountability for atrocities, particularly in regions affected by jihadist violence and military operations.
CARE MCQ
Q2. Consider the following statements regarding the recent withdrawal of Burkina Faso, Mali, and Niger from the International Criminal Court (ICC):
- The ICC is based in The Hague and prosecutes individuals for war crimes, genocide, crimes against humanity, and crimes of aggression.
- A State’s withdrawal from the ICC takes immediate effect upon notification to the UN Secretary-General.
- The three countries have expressed interest in establishing indigenous mechanisms for peace and justice.
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 2- B
Explanation
- Statement 1 is correct: The ICC, established in 2002, is headquartered in The Hague, Netherlands, and prosecutes individuals for war crimes, crimes against humanity, genocide, and crimes of aggression.
- Statement 2 is incorrect: According to the Rome Statute, a State’s withdrawal from the ICC takes one year after official notification to the UN Secretary-General, not immediately.
- Statement 3 is correct: Burkina Faso, Mali, and Niger have declared their intention to create indigenous mechanisms for peace and justice, reflecting their desire to handle accountability domestically rather than through the ICC.
- Therefore, option B is the correct answer.
UPSC PYQ
Q. Consider the following countries: (2025)
I. Austria
II. Bulgaria
III. Croatia
IV. Serbia
V. Sweden
VI. North Macedonia
How many of the above are members of the North Atlantic Treaty Organization?
(a) Only three
(b) Only four
(c) Only five
(d) All the six
Ans(b)
India’s Strategy for Protecting Satellites in Space and Security Measures
Source: The Hindu
UPSC Relevance: GS3 Science and Technology
Context: About Bodyguard Satellites
Why in News?
India is planning multi-layered measures, including bodyguard satellites, SSA infrastructure, cyber protection, and redundancy,
Introduction
- Satellites have become indispensable to modern society. They support navigation (GPS/NavIC), communications, climate monitoring, disaster management, agriculture, defence surveillance, and internet connectivity.
- For India, whose space economy is growing rapidly with increasing civilian and military reliance on space, the protection of satellites has emerged as a strategic imperative.
- However, the orbital domain is increasingly congested, contested, and vulnerable — with risks ranging from collisions with debris, cyberattacks, jamming, spoofing, hostile manoeuvres, and natural phenomena such as solar storms.
- In response, India is pursuing a multi-layered strategy combining technology, regulation, international cooperation, and advanced defensive measures such as “bodyguard satellites.”
(Image Source: The Hindu)
Why Protecting Satellites is Critical
- Economic Dependence – Banking, e-commerce, logistics, aviation, shipping, and telecom rely heavily on satellites.
- Strategic Security – The armed forces depend on them for navigation, secure communications, and ISR (Intelligence, Surveillance, Reconnaissance).
- High Costs & Logistical Challenges – Replacing damaged satellites is expensive and time-consuming.
- Geopolitical Risks – Near misses and proximity operations by foreign satellites (as seen in 2024) highlight the possibility of hostile actions in orbit.
Major Threats to Satellites
- Space Debris & Collisions – Even a screw-sized object at 28,000 km/h can destroy a satellite.
- Radio Frequency Interference – Jamming and spoofing disrupt communications and navigation.
- Cybersecurity Breaches – Ground stations and user terminals are prime hacking targets.
- Hostile Manoeuvres – “Inspector” satellites from adversaries can shadow or disable assets.
- Natural Hazards – Solar storms and increased drag from atmospheric changes can shorten satellite lifespans.
India’s Strategy for Satellite Protection
1. Space Situational Awareness (SSA) & Collision Avoidance
- IS4OM (Indian Space Situational Awareness and Management Centre) – Bengaluru-based hub tracking satellites and issuing collision warnings.
- Project NETRA – Expanding SSA through radars and telescopes.
- Multi-Object Tracking Radar at Sriharikota.
- New radar/telescope sites planned across India.
- Collision-Avoidance Manoeuvres – Over 10 manoeuvres executed in 2023 alone.
- Future Plans – LiDAR satellites for higher precision monitoring; private start-ups developing SSA satellites.
2. “Bodyguard Satellites”
- Proposed spacecraft that accompany high-value satellites, monitor close approaches, detect hostile manoeuvres, and intervene if necessary.
- Concept aligns with global trends where major powers experiment with rendezvous and proximity operations (RPOs).
- Still in planning/discussion stage, but reflects India’s seriousness about orbital defence.
3. Strengthening Communications Security
- Anti-jamming & Anti-spoofing technologies:
- NavIC testing Navigation Message Authentication (NMA).
- Likely use of beam-steering antennas, spread-spectrum signals in military satellites.
- Learning from global counterparts:
- US: Protected Tactical Waveform, M-code for GPS.
- Europe: Galileo OSNMA authentication system.
4. Cybersecurity of Space Assets
- 2022 Viasat cyberattack in Ukraine showed vulnerabilities.
India’s Response:
- CERT-In Guidelines (2025): Encryption, network segmentation, secure credentials, patching, incident reporting.
- IN-SPACe Licensing Framework: Private satellite operators must adopt strong cyber hygiene.
- Protection from Natural Hazards
- Aditya-L1 Mission – Provides early warnings of solar activity and coronal mass ejections.
- Collaboration with NOAA (US), ESA, and CESSI (IISER Kolkata) for space weather forecasts.
- Satellite controllers can place spacecraft in safe mode or adjust orbits to reduce risks.
- End-of-Life & Debris Management
- India’s pledge: “Debris-Free Space Missions by 2030” announced at the 2024 IADC meet.
- Controlled re-entry and passivation of satellites post-life.
- Expansion of Satellite Fleet for Redundancy
- Govt. approved a ₹27,000-crore programme to launch ~52 surveillance satellites (from 2026).
- Ensures redundancy and strengthens Earth observation and security coverage.
- International Cooperation & Norms
- Participation in UN COPUOS guidelines (2019) for long-term space sustainability.
- Hosted IADC (2024), showing leadership in debris mitigation.
- Engagement in multilateral forums like Combined Space Operations Initiative (CSpO).
Challenges
- Technological Gaps – India still lacks continuous SSA monitoring capability.
- NavIC Vulnerability – Multiple atomic clock failures and launch anomalies risk system reliability.
- High Costs – Protecting satellites demands major capital and R&D investment.
- Global Governance Vacuum – No binding treaty on anti-satellite weapons or RPO conduct.
Way Forward
- Accelerate SSA Infrastructure – Ensure round-the-clock tracking and integrate private SSA satellites.
- Operationalise Bodyguard Satellites – With autonomous AI-based threat detection.
- Enhance Cybersecurity Ecosystem – Build dedicated Space Cyber Command under Defence Cyber Agency.
- Harden NavIC & Military Satellites – Deploy authentication and anti-jamming protocols fully.
- Strengthen Global Rules – Actively push for binding “Code of Conduct in Space” at UN forums.
- Promote Public-Private Partnerships – Encourage start-ups in debris tracking, secure communication, and satellite hardening.
CARE MCQ
Q3. Consider the following statements regarding India’s measures to protect its satellites:
- India is planning “bodyguard satellites” to accompany and monitor high-value satellites.
- India relies solely on international treaties and norms for the protection of its space assets.
- Space Situational Awareness (SSA) through IS4OM and Project NETRA helps track debris and avoid collisions.
- The Aditya-L1 mission provides early warnings of solar storms to safeguard satellites.
Which of the statements given above is/are correct?
A. 1 and 2 only
B. 1, 3, and 4 only
C. 2 and 4 only
D. All of the above
Answer 3- B
Explanation
- Statement 1 is correct: India is planning “bodyguard satellites” that can monitor the surroundings of critical satellites and potentially respond to suspicious manoeuvres.
- Statement 2 is incorrect: India does not rely solely on international treaties; it is actively deploying technological and operational measures like SSA, collision-avoidance manoeuvres, and cyber protection.
- Statement 3 is correct: SSA initiatives such as IS4OM and Project NETRA track space debris and warn operators to perform collision-avoidance manoeuvres.
- Statement 4 is correct: The Aditya-L1 mission monitors solar activity, providing early warnings to protect satellites from space weather hazards.
- Therefore, option B is the correct answer.
UPSC PYQ
Q. For the measurement/estimation of which of the following are satellite images/remote sensing data used? (2019)
- Chlorophyll content in the vegetation of a specific location
- Greenhouse gas emissions from rice paddies of a specific location
- Land surface temperatures of a specific location
Select the correct answer using the code given below.
(a) 1 only
(b) 2 and 3 only
(c) 3 only
(d) 1, 2 and 3
Ans: (d)
India Open to Encouraging SMR-Led Nuclear Energy Push to Power AI Data Center Boom
Source: Indian Express
UPSC Relevance: GS3 Science and Technology
Context: SMR-Led Nuclear Energy
Why in News?
India is promoting Small Modular Reactors (SMRs) to provide reliable, round-the-clock, low-emission power for AI data centers, supporting energy security, industrial growth, and sustainable digital infrastructure.
Introduction
- India is actively exploring Small Modular Reactors (SMRs) as a strategic solution to meet the growing energy demands of AI-driven data centers.
- This aligns with the nation’s broader goals of achieving energy security, reducing carbon emissions, and supporting the digital economy.
India’s Nuclear Energy Ambitions
- The Union Budget for 2025–26 announced the “Nuclear Energy Mission for Viksit Bharat,” aiming to increase India’s nuclear power capacity to 100 GW by 2047.
- This represents a significant expansion from the current 8.8 GW capacity and highlights India’s long-term focus on nuclear energy as a reliable power source.
What Are Small Modular Reactors (SMRs)?
- SMRs are compact nuclear reactors with a capacity ranging from less than 30 MWe to over 300 MWe. They offer several advantages:
- Scalability: Modular design allows incremental capacity additions.
- Safety: Enhanced passive safety features reduce accident risks.
- Flexibility: Suitable for industrial power supply and off-grid applications.
- India’s Department of Atomic Energy is developing several SMR models, including the Bharat Small Modular Reactor (BSMR-200), a 200 MW scaled-down Pressurized Heavy Water Reactor optimized for captive power in industries like steel, cement, and aluminum.
(Image Source: Indian Express)
Powering the AI Data Centre Boom
- AI technologies are driving a surge in data center operations, which are energy-intensive and require continuous, round-the-clock power. Traditional renewable sources like solar and wind are intermittent and cannot always meet this demand.
- SMRs provide a reliable, low-emission power source that can operate continuously. Their compact and modular design makes them ideal for integration with data centers, especially in areas with limited land availability.
Government Initiatives and Industry Collaboration
- India is encouraging public-private partnerships to accelerate SMR deployment. Legal frameworks are being amended to facilitate private sector participation in nuclear energy.
- NTPC, India’s largest power utility, is in discussions with international firms to develop SMR projects.
- These collaborations aim to expand India’s nuclear infrastructure and support AI data centers’ energy needs.
Global Trends
- Globally, tech giants are exploring nuclear energy to power data centers. This trend highlights the growing importance of sustainable, reliable energy sources for high-performance computing and AI applications.
CARE MCQ
Q4. Small Modular Reactors (SMRs) are significant for India’s energy strategy because they:
A) Replace all renewable energy sources permanently
B) Provide scalable, safe, and continuous power suitable for industrial and data center needs
C) Can only be used for military purposes
D) Are identical to traditional large nuclear reactors
Answer 4- B
Explanation
- Statement 1 is incorrect: SMRs do not replace all renewable energy sources permanently; they complement renewables by providing reliable base-load power.
- Statement 2 is correct: SMRs offer scalable, safe, and continuous power, making them suitable for industrial use and AI data centers that require round-the-clock electricity.
- Statement 3 is incorrect: SMRs are not limited to military applications; they are primarily intended for civilian industrial and energy needs.
- Statement 4 is incorrect: SMRs are smaller and modular, unlike traditional large nuclear reactors, allowing incremental capacity additions and easier deployment.
- Therefore, option B is the correct answer.
UPSC PYQ
Q. In India, why are some nuclear reactors kept under “IAEA safeguards” while others are not? (2020)
(a) Some use uranium and others use thorium
(b) Some use imported uranium and others use domestic supplies
(c) Some are operated by foreign enterprises and others are operated by domestic enterprises
(d) Some are State-owned and others are privately owned
Ans: (b)
GST 2.0: Implications of India’s Tax Overhaul for Consumers and Industry
Source: Indian Express
UPSC Relevance: GS3 Economy
Context: About GST 2.0
Why in News?
GST 2.0, termed GST Bachat Utsav, rationalises tax rates, resolves classification issues, and corrects inverted duty structures to boost consumption and simplify compliance.Introduction
- The GST 2.0, also referred to as GST Bachat Utsav by Prime Minister Narendra Modi, represents a significant rationalisation of GST rates in India, effective September 22, 2025.
- The reforms aim to simplify taxation, resolve classification issues, correct inverted duty structures, and stimulate consumption.
- Increase Disposable Income: By reducing GST rates on essential, aspirational, and lifestyle goods and services, consumers are left with more disposable income, which can boost household consumption and, indirectly, investments.
- Resolve Classification Disputes: Previous GST rules created confusion over how similar goods were taxed (e.g., roti vs. parotta, salted vs. caramelised popcorn). GST 2.0 aligns similar goods under the same tax slab to simplify compliance.
- Inverted duty structure occurs when inputs are taxed higher than final goods.
- Example: Previously, raw inputs might have had 18% GST while finished products had 5–12% GST. GST 2.0 addresses these anomalies.
- Simplification and Rationalisation: Fewer GST slabs, clearer classifications, and lower disputes reduce litigation and make the tax system more business-friendly.
(Image Source: Indian Express)
Major Rate Changes
Category
Previous GST Rate
New GST Rate
Notes
Health & Life Insurance (individuals)
18%
Exempt
Encourages personal financial security
Beauty & Well-being services
18%
5%
Promotes the personal care sector
Aspirational goods (ACs, refrigerators, large TVs)
28%
18%
Makes high-cost consumer goods more affordable
Indian bread (roti, paratha, khakhra)
Varied
Exempt
Standardises tax on staple foods
- Note: The reform is broad-based, touching almost every aspect of a household consumption basket.
- Reduced Tax Burden: Consumers pay lower GST on multiple essential and lifestyle goods, increasing purchasing power.
- Simplified Understanding: Clear slabs reduce confusion over GST applicability on everyday goods and services.
- Better Access to Aspirational Goods: Reduced rates on ACs, refrigerators, and big screens encourage consumer spending.
- Reduced Litigation: Clear classification rules lower disputes between taxpayers and authorities regarding GST applicability.
- Improved Cash Flow: Rationalised rates reduce compliance costs and potential credit mismatches.
- Boost to Domestic Demand: Lower taxes can increase consumption, benefiting sectors such as electronics, appliances, and personal care.
- Simplified Compliance: Fewer GST slabs and standardisation make filing easier for businesses.
- Macro-Economic: Encourages consumption-driven growth, which is crucial for GDP expansion during periods of slowing investment.
- Political: Directly benefits households and middle-class voters by putting more money in their pockets—hence termed “GST Bachat Utsav.”
- Fiscal: While short-term revenue may reduce, higher consumption and formalisation could offset revenue losses over time.
- Revenue Impact: Reducing GST on high-value items may affect central and state revenues initially. Fiscal balance needs monitoring.
- Implementation: Enforcement and awareness among small businesses is crucial to avoid errors in compliance.
- Sector-Specific Issues: Some industries may see a temporary surge in demand that could disrupt supply chains.
- GST 2.0 is both an economic and fiscal reform: it simplifies the tax system, increases household disposable income, and attempts to resolve structural inefficiencies in the GST framework.
- GST 2.0 has exempted all forms of Indian bread such as roti, paratha, and khakhra.
- The reform aims to correct the inverted duty structure, where the tax rate on inputs is higher than on final products.
- GST 2.0 introduces more GST slabs to accommodate diverse goods and services.
- Statement 1 is correct: GST 2.0 exempts Indian bread in all forms — roti, paratha, khakhra — resolving earlier classification disputes and bringing uniformity.
- Statement 2 is correct: A major objective of GST 2.0 is to correct the inverted duty structure, where inputs had higher GST rates than outputs, leading to credit accumulation and inefficiency.
- Statement 3 is incorrect: GST 2.0 does not add more slabs; rather, it reduces and rationalises the slabs to simplify the system.
- Therefore, option A is the correct answer.
- Cereal grains hulled
- Chicken eggs cooked
- Fish processed and canned
- Newspapers containing advertising material
Fossil Fuel Plans Overshoot Paris Target by 120%
Source: Down To Earth
UPSC Relevance: GS3 Environment and Ecology
Context: Production Gap Report 2025
Why in News?
The Production Gap Report 2025 warns that global fossil fuel production plans for 2030 exceed levels compatible with the Paris Agreement’s 1.5°C target by over 120%.
Introduction
- A decade after the Paris Agreement (2015), which set the global framework to limit temperature rise to well below 2°C and ideally 1.5°C, governments worldwide continue to plan fossil fuel production at levels far exceeding these targets.
- The Production Gap Report 2025 (PGR 2025), released on 22 September 2025, highlights the alarming mismatch between countries’ climate commitments and their energy production plans.
- The report is a collaborative effort by the Stockholm Environment Institute (SEI), Climate Analytics, and the International Institute for Sustainable Development (IISD), supported by the United Nations.
Key Findings of the Report
Global Fossil Fuel Production Exceeds Paris Limits
- Planned production of coal, oil, and gas in 2030 exceeds levels consistent with limiting global warming to 1.5°C by more than 120% and to 2°C by 77%.
- Coal is the most misaligned: global output in 2030 is projected to be 500% above the 1.5°C pathway and 330% above the 2°C benchmark.
- Oil and gas production also exceeds targets: oil by 31% and gas by 92% compared to Paris-aligned levels.
Countries Driving Fossil Fuel Expansion
- Major producers ramping up fossil fuel extraction include China, the United States, Saudi Arabia, Brazil, and Nigeria.
- Nigeria doubled its 2030 oil production target; Brazil anticipates a 47% increase.
- State-owned companies in China and India are slowing coal phase-outs compared to previous projections.
Lost Time and Steeper Cuts Needed
- Fossil fuel production has continued to grow instead of peaking in the early 2020s.
- To align with Paris targets:
- Coal use must be nearly phased out by 2040.
- Oil and gas production must fall by around 75% by 2050 compared to 2020 levels.
- Current trajectories suggest 2050 fossil fuel production will be 4.5 times higher than levels compatible with 1.5°C.
Fiscal and Policy Contradictions
- Governments continue to support fossil fuels with subsidies near record highs, despite international pledges to phase out inefficient support.
- While some countries like Colombia, Germany, and Brazil have begun aligning production with net-zero targets, most major producers are still expanding fossil fuel exploration.
Legal and Ethical Imperatives
- The International Court of Justice (ICJ) warned that failing to curb fossil fuel expansion may constitute an internationally wrongful act, adding legal pressure on states.
- Report authors stress the human and environmental costs, particularly for vulnerable populations who are most affected by climate change.
Renewables as the Future
- The report acknowledges that renewables are leading the energy transition, but governments are “blundering backward” by supporting fossil fuels.
- A just transition is essential to protect workers and communities dependent on fossil fuel industries.
(Image Source: Indian Express)
Recommendations from the Report
- Immediate Policy Reforms
- No new fossil fuel exploration or production projects.
- Redirect investments from fossil fuels to renewable energy and clean industries.
- Nationally Determined Contributions (NDCs)
- Governments must submit third-round NDCs that explicitly reverse fossil fuel expansion plans.
- Include production cuts in broader energy transition strategies to meet Paris targets.
- Community-Centered Energy Transition
- Policies must ensure equity and justice, supporting communities affected by the shift from fossil fuels to renewables.
- Implement retraining, social protection, and economic diversification for fossil fuel-dependent regions.
COP30 Commitments
- Rapid reductions in coal, oil, and gas investments.
- Expansion of renewable energy capacities.
- Management of energy demand to avoid further emissions growth.
- Integration of climate goals into broader economic and social planning.
Significance for India and the World
- India’s Context: As a major coal and renewable energy player, India’s energy transition strategy is critical to global climate targets. Delayed coal reductions or expansion of fossil fuel production can have regional and global impacts.
- Global Implications: Continuing current fossil fuel plans will lock in long-term emissions, worsen climate impacts, and increase the economic and social costs of future climate mitigation.
Conclusion
- The Production Gap Report 2025 underscores a widening chasm between government climate pledges and actual fossil fuel production plans.
CARE MCQ
Q6. Which of the following is a reason for considering isobutanol instead of ethanol for blending with diesel?
A. Isobutanol has a lower flash point than ethanol
B. Isobutanol blends better with diesel and has a higher flash point
C. Ethanol is produced only from grains, not sugarcane
D. Isobutanol has a higher cetane number than diesel
Answer: B
Explanation
- Statement A is incorrect: The report does not primarily focus on renewable energy investments in developing countries; instead, it highlights the mismatch between fossil fuel production and climate targets.
- Statement B is correct: The Production Gap Report 2025 emphasizes that planned global fossil fuel production for 2030 exceeds the Paris Agreement’s 1.5°C target by over 120%, signaling a major threat to climate goals.
- Statement C is incorrect: Rising global nuclear energy production is not a central concern of the report; its focus is on fossil fuels.
- Statement D is incorrect: The report does not discuss declining global energy demand due to technology efficiency; on the contrary, fossil fuel production continues to grow, locking in higher emissions.
- Therefore, option B is the correct answer.
UPSC PYQ
Q. The term ‘Intended Nationally Determined Contributions’ is sometimes seen in the news in the context of (2016)
(a) pledges made by the European countries to rehabilitate refugees from the war-affected Middle East
(b) plan of action outlined by the countries of the world to combat climate change
(c) capital contributed by the member countries in the establishment of Asian Infrastructure Investment Bank
(d) plan of action outlined by the countries of the world regarding Sustainable Development Goals
Ans: (b)
