PrepDoseDay 2 · 1/11
Polity & GovernancePriority2025-10-08

Draft National Labour and Employment Policy Released

In News

What Happened

The Ministry of Labour and Employment released the draft National Labour and Employment Policy (Shram Shakti Niti 2025) on October 8, 2025, for public consultation. Rooted in the concept of 'śrama dharma' (dignity of labour), the policy outlines a digital-first approach to integrate existing schemes like EPFO, ESIC, PM-JAY, and e-SHRAM into a Universal Social Security Account (USSA) by 2030.

Why It Matters

With nearly 90% of India's 500 million-strong workforce in the informal sector and a rapidly expanding gig economy, existing labour laws fail to provide adequate safety nets. This policy marks a historic shift in governance from mere regulatory enforcement to active employment facilitation, aiming to provide portable benefits, achieve a 35% female labour force participation rate, and ensure future-ready social protections.

Background

History & Context

India's labour governance was historically fragmented across 29 central laws, leading the 2nd National Commission on Labour (Ravindra Varma Committee, 2002) to recommend comprehensive consolidation. This culminated in the passage of four Labour Codes between 2019 and 2020 (Wages, Industrial Relations, Social Security, and Occupational Safety, Health and Working Conditions). However, nationwide implementation stalled because 'Labour' is in the Concurrent List (Entry 55), requiring aligned rules from state governments. Concurrently, the Supreme Court's directives during the pandemic prompted the August 2021 launch of the e-SHRAM portal, which registered over 290 million unorganised workers. Despite this data milestone, a cohesive framework to translate registration into actual benefits was missing. The draft Shram Shakti Niti 2025 bridges this gap by providing a definitive technological and institutional blueprint to operationalise the inclusive vision of the Labour Codes.

What Changed

  • ▶

    Role of the Ministry: The MoLE has officially shifted its mandate from a traditional regulatory/enforcement agency to a proactive 'National Employment Facilitator'.

  • ▶

    Universal Social Security Account (USSA): Replaced siloed welfare schemes by mandating the integration of EPFO, ESIC, PM-JAY, e-SHRAM, and State welfare boards into a single, portable digital account for all workers.

  • ▶

    Digital Public Infrastructure (DPI) for Employment: The existing National Career Service (NCS) is being upgraded into a DPI, acting as an AI-driven digital marketplace for multilingual job matching, skill alignment, and verified credentialing via a unified National Labour Stack.

  • ▶

    Compliance and Inspections: Transitioned from physical, discretionary inspections to a single-window digital compliance portal allowing self-certification for MSMEs, alongside AI-based risk inspections to enforce the OSH Code 2020 and achieve 'near-zero' workplace fatalities.

  • ▶

    Institutional Framework: Mandated the creation of District Labour Resource Centres (DLRCs) to serve as one-stop grassroots hubs for worker registration, grievance redressal, and skilling support.

  • ▶

    Accountability Architecture: Introduced the Labour & Employment Policy Evaluation Index (LPEI) to benchmark States' performances, accompanied by an Annual National Labour Report to be tabled in Parliament.

  • ▶

    Phased Implementation: Established a timeline with Phase I (2025-27) for institutional setup, Phase II (2027-30) for the nationwide USSA rollout, and Phase III (Beyond 2030) for predictive analytics and continuous policy renewal.

What Did NOT Change

Despite its progressive digital architecture, the draft policy does not legally reclassify gig and platform workers as formal 'employees', meaning they continue to be excluded from traditional industrial relations rights like unionisation and collective bargaining. Furthermore, it leaves the funding mechanism for the Universal Social Security Account ambiguous, failing to clearly mandate compulsory financial contributions from platform aggregators or employers in the unorganised sector.

Prelims Angle

NCERT Connection

Class 11 Indian Economic Development, Chapter 7 (Employment: Growth, Informalisation and other issues). The chapter discusses the 'informalisation' of the Indian workforce, where millions work without social security benefits typical of the formal sector. Shram Shakti Niti 2025 acts as a direct policy intervention against the vulnerabilities of informalisation. By leveraging digital tools like the Universal Social Security Account, it seeks to extend formal-sector protections (health, pension, insurance) to informal and gig workers without necessarily altering their legal employment classification.

Common Misconceptions

✗ The policy formally classifies gig workers (like food delivery partners) as regular 'employees' of the tech aggregators.

✓ The policy extends portable social security benefits to gig workers through the USSA but explicitly avoids redefining the legal employer-employee relationship, keeping them outside the purview of formal employment contracts.

Media headlines often equate 'granting social security' with 'granting employee status', blurring the distinction between welfare provisions and legal industrial classification.

✗ Shram Shakti Niti 2025 replaces the four Labour Codes passed in 2019-2020.

✓ The policy does not replace any legislation. Instead, it serves as the executive roadmap and digital architecture (like the National Labour Stack) required to actually implement the provisions of the stalled Labour Codes.

The comprehensive scope and transformative language of the policy make it sound like new overarching legislation, rather than an implementation framework.

Practice Questions

Q1

How Many Correct

Consider the following statements regarding the Draft National Labour and Employment Policy (Shram Shakti Niti 2025): 1. It proposes to upgrade the National Career Service (NCS) into a Digital Public Infrastructure (DPI) for Employment. 2. It guarantees legal 'employee' status and collective bargaining rights to all registered platform and gig workers. 3. It introduces the Labour & Employment Policy Evaluation Index (LPEI) to benchmark the performance of States in labour governance. How many of the above statements are correct?

Q2

Match the Following

Match the institutional concepts proposed under Shram Shakti Niti 2025 (List I) with their respective functions (List II): List I: A. Universal Social Security Account (USSA) B. District Labour Resource Centres (DLRCs) C. National Career Service (NCS) D. LPEI List II: 1. Digital Public Infrastructure for AI-driven job matching 2. Integration of EPFO, ESIC, PM-JAY, and e-SHRAM 3. Benchmarking tool to foster cooperative federalism among States 4. Grassroots one-stop hubs for registration and grievance redressal

Q3

Assertion & Reason

Assertion (A): The Shram Shakti Niti 2025 redefines the primary role of the Ministry of Labour and Employment from regulatory enforcement to acting as a 'National Employment Facilitator'. Reason (R): The policy seeks to entirely deregulate occupational safety standards for MSMEs by exempting them from the Occupational Safety, Health and Working Conditions (OSH) Code 2020.

PrepDoseDay 2 · 2/11
JudiciaryImportant2024-12-10

SC Rules Maintenance Rights Supersede IBC and SARFAESI Creditors

In News

What Happened

On December 10, 2024, the Supreme Court ruled in the case of Apurva v. Dolly that the right to maintenance for a wife and children overrides the statutory claims of creditors. The bench, comprising Justices Surya Kant and Ujjal Bhuyan, declared that maintenance is an extension of the fundamental right to life and dignity. Consequently, it takes absolute precedence over recovery proceedings initiated under the Insolvency and Bankruptcy Code (IBC) and the SARFAESI Act.

Why It Matters

This is a landmark judgment for gender justice and human rights in India, ensuring that financial bankruptcy or business distress cannot be used as a shield to deny basic sustenance to dependents. It establishes a clear legal hierarchy where fundamental human dignity legally trumps corporate or banking debt recovery processes.

Background

History & Context

Previously, banking and insolvency laws like the SARFAESI Act, 2002, and the Insolvency and Bankruptcy Code (IBC), 2016, gave secured and financial creditors the highest priority in asset recovery through a strict 'waterfall mechanism'. Spouses and children seeking maintenance often struggled to recover their dues when a primary earner's assets were attached or liquidated by banks. This specific case reached the Supreme Court when a businessman defaulted on bank loans, prompting creditors to claim his assets under business laws while his family sought the recovery of their enhanced maintenance arrears.

What Changed

  • ▶

    BEFORE: Secured and financial creditors had overriding priority in attaching and liquidating a defaulter's assets under the IBC's Section 53 waterfall mechanism and the SARFAESI Act. NOW: The charge of arrears of maintenance has a preferential right over the defaulter's assets, completely superseding the statutory rights of secured creditors.

  • ▶

    BEFORE: Maintenance was primarily viewed as a standard civil or statutory obligation under Section 125 of the CrPC, competing unequally against institutional debt recovery. NOW: The Supreme Court explicitly elevated the right to maintenance to a subset of the fundamental right to a dignified life under Article 21, making it constitutionally superior to ordinary business laws.

Prelims Angle

NCERT Connection

This ruling directly applies concepts from Class 11 Political Science Chapter 2 - 'Rights in the Indian Constitution'. It illustrates the judiciary's power to expansively interpret the Right to Life and Personal Liberty (Article 21) to include the right to sustenance and dignity, demonstrating that fundamental Constitutional rights hold a superior position over ordinary statutory laws like the IBC.

Practice Questions

Q1

Correct Statement(s)

Which of the following statements is/are correct regarding the Supreme Court's December 2024 judgment on maintenance rights?

PrepDoseDay 2 · 3/11
Economy & BudgetPriority2026-01-29

Economic Survey 2025-26 Tabled in Parliament

In News

What Happened

On January 29, 2026, Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025-26 in Parliament ahead of the Union Budget. Prepared by the Department of Economic Affairs under Chief Economic Adviser V. Anantha Nageswaran, the document officially assessed India's macroeconomic performance, estimating a real GDP growth of 7.4% for FY26.

Why It Matters

The Survey validates India's position as the fastest-growing major economy amid global geopolitical fragmentation. By highlighting a rare 'Goldilocks' moment of high growth alongside historically low retail inflation (1.7%), it signals India's strategic shift from merely building resilience to becoming systemically indispensable in global value chains.

Background

History & Context

The Economic Survey of India was first presented in 1950-51 as part of the Union Budget documents. In 1964, it was de-linked from the Budget to serve as a standalone, objective economic report card. It is prepared annually by the Economic Division of the Department of Economic Affairs (DEA), Ministry of Finance, under the guidance of the Chief Economic Adviser (CEA). In recent years, under CEA V. Anantha Nageswaran, the Survey has evolved from a simple statistical compilation to a narrative-driven document. The 2025-26 edition arrives against a backdrop of complex global headwinds—including trade fragmentation and higher US tariffs—seeking to demonstrate how domestic demand and structural reforms have insulated the Indian economy.

What Changed

  • ▶

    GDP Growth & Potential: Real GDP growth for FY26 is estimated at 7.4% (up from 6.5% in FY25), and the Survey officially revised India's medium-term potential growth rate upward to 7.0%.

  • ▶

    Inflation Paradigm: Retail inflation (CPI) saw a dramatic decline to a historic low of 1.7% between April-December FY26, vastly improving consumers' real purchasing power.

  • ▶

    Consumption Surge: Private Final Consumption Expenditure (PFCE) reached 61.5% of GDP, recording its highest share since 2011-12, driven by healthier household balance sheets.

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    Fiscal Consolidation: The Centre contained the FY25 fiscal deficit at 4.8% of GDP (better than budgeted), setting an ambitious target of 4.4% for FY26 without compromising capital expenditure.

  • ▶

    Agricultural Shift: The Survey formally recognized a major structural shift in agriculture, noting that horticulture production (362.08 MT) has now sustainably surpassed traditional foodgrain production.

  • ▶

    External Buffers: Foreign Exchange reserves breached a historic milestone, reaching USD 701.4 billion (covering 11 months of imports and 94% of external debt).

  • ▶

    Poverty Reduction: Highlighting NITI Aayog's Multidimensional Poverty Index (MPI), the Survey reported a sharp decline in poverty from 55.3% in 2005-06 to 11.28% in 2022-23.

What Did NOT Change

Despite robust macroeconomic indicators, India's external vulnerability to volatile capital flows and currency pressures remained a persistent risk, with the Rupee underperforming in 2025. Furthermore, the Survey highlighted that structural challenges in state-level finances have not improved, explicitly warning that populist unconditional cash transfers by states continue to crowd out productive infrastructure capital expenditure.

Prelims Angle

NCERT Connection

This event directly applies concepts from Class 12 Macroeconomics (Chapter 5: Government Budget and the Economy) and Class 11 Indian Economic Development (Chapter 2 & 3). The Survey's tracking of Gross Fixed Capital Formation (GFCF) as a percentage of GDP (30%) is a real-world application of measuring an economy's investment rate. Furthermore, the Survey's vision of transitioning India to 'Strategic Indispensability' in global trade illustrates the modern evolution of India's external sector policies originally discussed in the 1991 LPG reforms.

Common Misconceptions

✗ The policy recommendations made in the Economic Survey are legally binding on the Union Budget.

✓ The Survey serves strictly as an advisory and analytical review document; the Government is not obligated to implement its policy recommendations in the ensuing Union Budget.

Because it is tabled exactly one day before the Budget by the same Finance Minister, leading citizens to assume it acts as a legal blueprint.

✗ The Economic Survey is drafted by the Reserve Bank of India (RBI) or the Finance Commission.

✓ It is prepared by the Economic Division of the Department of Economic Affairs (DEA) within the Ministry of Finance, under the supervision of the Chief Economic Adviser (CEA).

The RBI releases similar macroeconomic forecasts and manages inflation targeting, blurring the lines of authorship for laypersons.

✗ A decrease in Private Final Consumption Expenditure (PFCE) is always good because it means citizens are saving more money.

✓ In a developing macroeconomic framework like India's, a high or rising PFCE (like the 61.5% highlighted in the Survey) is highly positive as it indicates robust domestic demand, which drives corporate revenue, investment, and GDP growth.

People confuse personal household frugality (saving money in a bank) with macroeconomic consumption dynamics, where spending is the engine of economic expansion.

Practice Questions

Q1

How Many Correct

Consider the following statements regarding the Economic Survey 2025-26: 1. It reported that Private Final Consumption Expenditure (PFCE) fell to its lowest level since 2011-12 due to inflationary pressures. 2. It described the macroeconomic situation as a 'Goldilocks' moment characterized by high GDP growth and historic low retail inflation. 3. It noted a structural agricultural shift where horticulture production has surpassed total foodgrain production. How many of the statements given above are correct?

Q2

Match the Following

Match List I (Macroeconomic Indicator in Economic Survey 2025-26) with List II (Reported Value/Observation): List I: A. Real GDP Growth (FY26 Est.) B. Retail Inflation (Apr-Dec FY26) C. Foreign Exchange Reserves D. Medium-term potential growth rate List II: 1. ~ USD 701.4 Billion 2. 7.4% 3. 7.0% 4. 1.7% Select the correct answer using the code given below:

Q3

Assertion & Reason

Assertion (A): The Economic Survey 2025-26 explicitly warned against the rapid expansion of unconditional cash transfers by state governments. Reason (R): In revenue-deficit states, excessive expenditure on unconditional cash transfers crowds out productive capital expenditure, thereby risking fiscal sustainability. Select the correct answer:

PrepDoseDay 2 · 4/11
Environment & ClimateImportant2025-08-22

India Constitutes National Designated Authority For Carbon Markets

In News

What Happened

On August 22, 2025, the Ministry of Environment, Forest and Climate Change (MoEFCC) issued a gazette notification under the Environment (Protection) Act, 1986, establishing the National Designated Authority (NDA). The NDA is a 21-member committee chaired by the Environment Secretary. It is tasked with implementing Article 6 of the Paris Agreement, which governs international carbon markets.

Why It Matters

The creation of the NDA allows India to officially participate in the global carbon market by evaluating, approving, and authorizing carbon credit projects. It ensures that international trading of emission reduction units brings financial incentives for green projects while aligning with India's Nationally Determined Contributions (NDCs) and preventing double counting.

Background

History & Context

Article 6 of the 2015 Paris Agreement provides a framework for international carbon markets, the rules for which were finalized at COP29 in Baku in 2024. Establishing a National Designated Authority is a mandatory UNFCCC requirement for any country wishing to participate in Article 6 mechanisms. Previously, India's carbon framework operated under a May 2022 notification, but the August 2025 gazette formally replaces it to align with the newly finalized global trading rules.

What Changed

  • ▶

    BEFORE: India's carbon market governance relied on a May 2022 transitional notification that predated the finalized international rules for the Paris Agreement Crediting Mechanism. NOW: The new NDA provides a comprehensive institutional framework under the Environment (Protection) Act, 1986, specifically tailored to the Article 6 rules finalized at COP29.

  • ▶

    BEFORE: There was ambiguity regarding how carbon credits sold to other countries would affect India's domestic climate targets. NOW: The NDA officially applies "corresponding adjustments" to ensure that emission reduction units exported internationally are deducted correctly, preventing them from compromising India's own NDC commitments.

  • ▶

    BEFORE: India lacked a fully integrated ledger for international Article 6 trades. NOW: The NDA is tasked with maintaining a robust registry of approved projects and emission reductions in coordination with the Indian Carbon Market's administrator.

Prelims Angle

NCERT Connection

This relates to Class 12 Biology, Chapter 16 (Environmental Issues), specifically the sections on the greenhouse effect, global warming, and international initiatives to reduce emissions. The establishment of the NDA is a real-world institutional application of these concepts, regulating carbon trading to incentivize greenhouse gas reduction and fulfill international climate pledges.

Practice Questions

Q1

Correct Statement(s)

With reference to the National Designated Authority (NDA) for Carbon Markets constituted in August 2025, consider the following statements: 1. It was established under the provisions of the Environment (Protection) Act, 1986. 2. It is a 21-member committee chaired by the Prime Minister of India. Which of the statements given above is/are correct?

PrepDoseDay 2 · 5/11
Science & TechnologyPriority2026-02-12

WHO Prequalification for nOPV2 Vaccine

In News

What Happened

On February 12, 2026, the World Health Organization (WHO) granted Phase II Prequalification to India's Biological E. Limited for its novel oral polio vaccine type 2 (nOPV2). This elevates the company from merely bottling the vaccine to fully manufacturing both the active drug substance and the final product at a single site in Hyderabad. Biological E is now the world's second full end-to-end manufacturer of this vaccine.

Why It Matters

This breakthrough provides a massive, reliable global supply of nOPV2, with Biological E expected to produce 600 million doses annually. It gives United Nations agencies like UNICEF and the Global Polio Eradication Initiative (GPEI) a critical, stabilized tool to fight circulating vaccine-derived poliovirus type 2 (cVDPV2) outbreaks, predominantly in Africa, while cementing India's status as a leader in global vaccine manufacturing.

Background

History & Context

The global fight against polio achieved a major milestone in 2015 when wild poliovirus type 2 was declared eradicated. Consequently, in 2016, the world switched from trivalent to bivalent oral polio vaccine (OPV) for routine immunization to avoid the risks associated with the live-attenuated type 2 Sabin strain. However, in areas with low immunization, the older Sabin type 2 vaccine virus mutated and regained neurovirulence, causing escalating circulating vaccine-derived poliovirus type 2 (cVDPV2) outbreaks. To counter this, a consortium including PATH, the Bill & Melinda Gates Foundation, and NIBSC developed nOPV2, a genetically stabilized version. In late 2020, nOPV2 became the first vaccine ever to receive a WHO Emergency Use Listing (EUL). Indonesia's PT Bio Farma became the first manufacturer to receive full WHO prequalification in January 2024. Biological E joined the effort, receiving Phase I prequalification in June 2024 before advancing to full Phase II status in early 2026.

What Changed

  • ▶

    Manufacturing Scope: BEFORE, under its June 2024 Phase I prequalification, Biological E only performed 'fill-finish' operations using bulk drug substance imported from Indonesia's PT Bio Farma. NOW, under Phase II, Biological E manufactures both the Drug Substance and Drug Product at a single integrated site in India.

  • ▶

    Global Supply Chain Vulnerability: BEFORE, the world relied heavily on a single full manufacturer (PT Bio Farma) for end-to-end production of nOPV2. NOW, global production is diversified with two independent suppliers, highly reducing bottleneck risks during sudden outbreaks.

  • ▶

    Production Capacity for Outbreak Response: BEFORE, the Global Polio Eradication Initiative (GPEI) faced potential supply constraints for specialized vaccines. NOW, Biological E's expanded approval allows it to pump an additional 600 million doses per year into the global stockpile.

  • ▶

    Viral Stability in the Field: BEFORE (using older mOPV2), outbreak response vaccines frequently lost their attenuating mutations in the gut, seeding new vaccine-derived outbreaks. NOW, the widespread use of nOPV2 provides a tool that is 80% less likely to revert to neurovirulence due to targeted genetic modifications.

What Did NOT Change

The fundamental mechanism of action of the vaccine remains unchanged; nOPV2 is still a live, attenuated oral vaccine that replicates in the human gut to induce critical primary intestinal mucosal immunity, unlike injectable killed vaccines. Furthermore, nOPV2 remains strictly categorized as an outbreak response tool—it has not replaced bivalent OPV or IPV in the daily, routine Universal Immunization Programme globally.

Prelims Angle

NCERT Connection

This event directly applies the concepts found in Class 12 Biology, Chapter 8 (Human Health and Disease), specifically the section on 'Immunity' and 'Vaccination and Immunisation'. The chapter explains how vaccines use weakened (attenuated) pathogens to generate memory B and T cells. The development of nOPV2 takes this a step further: scientists genetically engineered the primary attenuation sites of the live Sabin virus so that while it still triggers the immune response described in NCERT, it is structurally blocked from mutating back into a disease-causing pathogen in the host's body.

Common Misconceptions

✗ Vaccine-derived poliovirus outbreaks are caused by the Inactivated Polio Vaccine (IPV) mutating in children's bodies.

✓ Vaccine-derived poliovirus ONLY arises from the Oral Polio Vaccine (OPV), which contains a live, weakened virus capable of replicating and mutating in the gut. IPV contains a dead/killed virus that cannot mutate or cause disease.

The general public often assumes all vaccines work the same way and carry the risk of causing the disease they are meant to prevent, failing to distinguish between live-attenuated and inactivated mechanisms.

✗ nOPV2 is now being given to all children globally as part of routine daily immunization.

✓ nOPV2 is strictly reserved as an outbreak-response tool, deployed only in targeted regions actively experiencing circulating vaccine-derived poliovirus type 2 (cVDPV2) outbreaks.

People confuse specialized emergency stockpiles with routine Universal Immunization Programme (UIP) vaccines, which currently rely on bivalent OPV and IPV for daily prevention.

Practice Questions

Q1

How Many Correct

Consider the following statements regarding the Novel Oral Polio Vaccine type 2 (nOPV2) and its WHO Prequalification: 1. nOPV2 holds the distinction of being the first vaccine in history to receive a WHO Emergency Use Listing (EUL). 2. India's Biological E. Limited is the first company in the world to receive end-to-end Phase II manufacturing WHO prequalification for nOPV2. 3. nOPV2 eliminates the risk of vaccine-derived poliovirus by utilizing an inactivated, killed virus that cannot replicate in the human gut. How many of the statements given above are correct?

Q2

Match the Following

Match List I (Vaccine Type) with List II (Characteristic/Use) regarding the global polio eradication strategy: List I: A. mOPV2 (Monovalent OPV2) B. nOPV2 (Novel OPV2) C. IPV (Inactivated Polio Vaccine) D. bOPV (Bivalent OPV) List II: 1. Replaced the trivalent vaccine in routine global immunization schedules in 2016. 2. First vaccine to ever receive the WHO Emergency Use Listing (EUL). 3. Traditional outbreak response tool that was frequently prone to seeding new cVDPV2 outbreaks. 4. Administered via injection; provides excellent systemic immunity but poor gut mucosal immunity. Select the correct answer using the code given below:

Q3

Assertion & Reason

Assertion (A): The traditional Sabin monovalent oral polio vaccine type 2 (mOPV2) is currently the preferred tool by the WHO for routine response to circulating vaccine-derived poliovirus type 2 (cVDPV2) outbreaks. Reason (R): The live attenuated virus in traditional OPV can genetically mutate in under-immunized populations, regain neurovirulence, and cause paralysis. Select the correct answer from the codes given below:

PrepDoseDay 2 · 6/11
Economy & BudgetImportant2025-11-11

Municipal Bonds Permitted in RBI Repo Transactions

In News

What Happened

On November 11, 2025, the Reserve Bank of India (RBI) updated its Master Direction on Repurchase Transactions to allow municipal debt securities as eligible collateral for repo and reverse repo transactions. This permits banks and money market participants to use municipal bonds to borrow or lend funds in the overnight market.

Why It Matters

This policy aims to deepen the secondary market for municipal bonds and enhance liquidity for urban local bodies (ULBs). By increasing the acceptability of local-body debt, it lowers borrowing costs for municipalities, enabling them to finance public infrastructure and smart city projects more efficiently.

Background

History & Context

Municipal bonds in India have historically faced limited institutional participation due to poor secondary market liquidity and the weak fiscal positions of many local bodies. To address this, the Central Government issued a notification in October 2025 under Section 45U of the RBI Act, 1934, formally recognizing municipal debt as an eligible security. Subsequently, the RBI updated its repo framework to integrate these bonds into the broader money market ecosystem.

What Changed

  • ▶

    Eligible Collateral: BEFORE, repo collateral was primarily limited to instruments like government securities, listed corporate bonds, commercial papers, and certificates of deposit. NOW, municipal debt securities are officially permitted as eligible collateral.

  • ▶

    Risk Margins (Haircuts): BEFORE, no repo haircut framework existed for municipal bonds as they were ineligible for such transactions. NOW, municipal bonds pledged in repo operations carry a mandated minimum haircut of 2 percent.

  • ▶

    Eligible Participants: BEFORE, unlisted companies faced stricter hurdles in participating in repo markets. NOW, unlisted companies holding special Government-issued securities are formally recognized as eligible participants to transact using those specific securities as collateral.

Prelims Angle

NCERT Connection

This update links directly to the 'Liquidity Adjustment Facility (LAF)' and credit control mechanisms detailed in Class 12 Macroeconomics Chapter 3 (Money and Banking). By expanding the list of eligible collateral to include municipal bonds, the central bank broadens the avenues through which commercial banks can access short-term liquidity, thereby influencing the broader money market.

Practice Questions

Q1

Correct Statement(s)

With reference to the RBI's updated Master Direction on Repurchase Transactions (Repo) Directions, 2025, consider the following statements: 1. Municipal debt securities are now permitted as eligible collateral for repo transactions. 2. Municipal bonds pledged as collateral in repo transactions are subject to a minimum haircut of 2%. Which of the statements given above is/are correct?

PrepDoseDay 2 · 7/11
Environment & ClimateImportant2025-02-16

Sikhna Jwhwlao National Park Approved in Assam

In News

What Happened

On February 16, 2025, the Assam Cabinet approved the creation of Sikhna Jwhwlao National Park, which was subsequently notified in March 2025. Covering 316.29 square kilometers across the Chirang and Kokrajhar districts, the park was carved out of the Chirang-Ripu Elephant Reserve. It is the eighth national park in Assam and the third within the Bodoland Territorial Region (BTR).

Why It Matters

The park secures a critical wildlife corridor connecting Manas National Park and Raimona National Park, facilitating safe animal movement across the Greater Manas Conservation Landscape. It provides strict legal protection to flagship endangered species like the Golden Langur, while honoring indigenous Bodo heritage by naming the park after a legendary local warrior.

Background

History & Context

The creation of the park was first announced by Assam Chief Minister Himanta Biswa Sarma during his Independence Day speech in August 2024. The Assam Cabinet formally approved the measure on February 16, 2025, and it was officially notified under the Wildlife (Protection) Act, 1972 on March 5, 2025. The park is named after Sikhna Jwhwlao (also known as Jaolia Dewan), a revered Bodo warrior who fought against British colonial forces during the 1860s Duar War, thereby integrating ecological conservation with cultural identity.

What Changed

  • ▶

    BEFORE: The 316 sq km area functioned as parts of the Chirang and Manas Reserve Forests within the Chirang-Ripu Elephant Reserve, which allowed certain human activities. NOW: It is classified as a National Park under the Wildlife (Protection) Act 1972, granting it the highest level of strict legal protection as an inviolate space.

  • ▶

    BEFORE: Assam had seven national parks, with the contiguous forest stretch between Manas and Raimona lacking the highest tier of legal protection. NOW: Assam has eight national parks, and Sikhna Jwhwlao establishes a fully protected ecological corridor between Raimona (west) and Manas (east), extending to Bhutan's Phibsoo Wildlife Sanctuary.

  • ▶

    BEFORE: The endemic Golden Langur and over 460 butterfly species resided in reserve forests susceptible to habitat fragmentation. NOW: These species are safeguarded in a dedicated national park, complemented by conservation initiatives like the new Butterfly Museum and Research Centre inaugurated in nearby Ultapani.

Prelims Angle

NCERT Connection

In NCERT Class 11 Geography (India Physical Environment), Chapter 5 'Natural Vegetation' outlines the establishment of National Parks and Biosphere Reserves for in-situ wildlife conservation. The notification of Sikhna Jwhwlao applies these concepts by elevating a reserve forest to a National Park under the Wildlife Protection Act of 1972, securing contiguous habitats (wildlife corridors) that are crucial for the genetic viability of large mammals like elephants and tigers.

Practice Questions

Q1

Correct Statement(s)

With reference to the newly declared Sikhna Jwhwlao National Park, consider the following statements: 1. It serves as a contiguous wildlife corridor connecting Kaziranga National Park to Dibru-Saikhowa National Park. 2. It is a major habitat for the endangered Golden Langur and is located within the Bodoland Territorial Region (BTR). Which of the statements given above is/are correct?

PrepDoseDay 2 · 8/11
Polity & GovernancePriority2025-08-21

Passage of the Indian Ports Act, 2025

In News

What Happened

On August 21, 2025, the President of India gave assent to the Indian Ports Act, 2025, completely replacing the colonial-era Indian Ports Act of 1908. The new legislation provides statutory backing to the Maritime State Development Council (MSDC) and empowers State Maritime Boards to govern non-major ports. It was passed by the Lok Sabha and Rajya Sabha earlier in August 2025 as part of a sweeping maritime governance overhaul.

Why It Matters

This law is a critical catalyst for India's 'blue economy', shifting port governance from a highly fragmented, outdated system to one of cooperative federalism. By decentralizing non-major port management while enforcing global environmental treaties and modern dispute resolution, it drastically improves the ease of doing business and prepares India's 7,500 km coastline for integrated global trade.

Background

History & Context

For over a century, India's maritime sector was governed by the Indian Ports Act of 1908, a colonial law that failed to address modern environmental challenges, digital operations, or cooperative federalism. While major ports were streamlined under the Major Port Authorities Act, 2021, the 200+ non-major ports remained under fragmented state policies. To address this, the Ministry of Ports, Shipping and Waterways drafted the Indian Ports Bill, which underwent multiple iterations and state consultations. Introduced in the Lok Sabha in March 2025 by Minister Sarbananda Sonowal, it was passed by both houses in August 2025. The legislation aligns India's infrastructure with the goal of becoming a top global maritime power, working in tandem with the concurrent Merchant Shipping Act, 2025.

What Changed

  • ▶

    Maritime State Development Council (MSDC): BEFORE: Functioned as an executive advisory body without formal legal backing. NOW: Section 3 grants the MSDC statutory status. Chaired by the Union Minister, it prepares the National Perspective Plan and ensures tariff transparency across all coastal states.

  • ▶

    State Maritime Boards (SMBs): BEFORE: Governed haphazardly by differing state legislations. NOW: Section 13 mandates the establishment and statutory recognition of SMBs, empowering them to administer, grant licenses, and fix tariffs for all non-major ports within their states.

  • ▶

    Dispute Resolution Committees (DRCs): BEFORE: Commercial port disputes faced heavy delays in standard civil courts. NOW: Section 16 requires State Governments to establish DRCs for conflicts at non-major ports. Section 17 explicitly bars civil court jurisdiction, routing appeals directly to the High Court.

  • ▶

    Environmental and Green Norms: BEFORE: Basic and vague pollution guidelines. NOW: Chapter VIII legally enforces global maritime conventions, specifically MARPOL (1973) and the Ballast Water Management Convention (2004), mandating central audits for disaster readiness and waste reception facilities.

  • ▶

    Port Conservator Powers: BEFORE: A fragmented hierarchy of port officers. NOW: The Act designates the government-appointed Conservator as the principal Port Officer, consolidating supervisory authority over vessel movement, disease prevention, and penalty adjudication.

What Did NOT Change

Despite the comprehensive overhaul, the administrative distinction between Major and Non-Major ports remains entirely intact. Major ports continue to be governed exclusively by the central government under the separate Major Port Authorities Act, 2021. Furthermore, while the Act allows the central government to notify 'mega ports', it does not create a distinct regulatory framework for them, leaving them to be governed by their existing major/non-major classification.

Prelims Angle

NCERT Connection

In NCERT Class 12 India People and Economy, Chapter 10 (Transport and Communication), the text discusses the classification of Indian ports into Major and Minor/Intermediate ports and their role in international trade. The Indian Ports Act, 2025, is the direct real-world administrative application of this distinction. It formally structures how the Minor/Intermediate (non-major) ports are governed through State Maritime Boards under the Concurrent List, complementing the Union government's exclusive control over Major ports (Union List) mentioned in the textbook.

Common Misconceptions

✗ The Indian Ports Act, 2025 sets the tariffs and administrative rules for all ports in India, including Major Ports.

✓ Tariffs and administration for Major Ports are still strictly governed by the Major Port Authorities Act, 2021. The 2025 Act primarily empowers State Maritime Boards to fix tariffs and regulate Non-Major ports.

Aspirants conflate the broad title 'Indian Ports Act' with universal control, missing the constitutional distinction where Major Ports are under the Union List and Non-Major ports fall under the Concurrent List.

✗ The newly statutory Maritime State Development Council (MSDC) gives the Central Government absolute control over non-major ports.

✓ The MSDC is a cooperative, consultative body that includes state ministers-in-charge of ports. Actual administration, licensing, and day-to-day regulation of non-major ports are decentralized to the State Maritime Boards.

The establishment of a centralized national council (MSDC) sounds like a centralizing move, but its mandate is cooperative planning (National Perspective Plan) rather than direct administration.

✗ Disputes under the new Act are resolved by the National Green Tribunal or standard Civil Courts.

✓ The Act explicitly bars civil courts from hearing disputes related to non-major ports. It creates dedicated, specialized Dispute Resolution Committees (DRCs) at the state level, with appeals going directly to the High Court.

Standard commercial or environmental disputes usually go to Civil courts or the NGT, but the 2025 Act created a specialized adjudicatory mechanism specifically to bypass the backlog of civil courts.

Practice Questions

Q1

How Many Correct

Consider the following statements regarding the Indian Ports Act, 2025: 1. It provides statutory recognition to the Maritime State Development Council (MSDC) to prepare a National Perspective Plan. 2. It mandates the Central Government to set up Dispute Resolution Committees (DRCs) for both major and non-major ports. 3. It legally enforces compliance with the MARPOL Convention and the Ballast Water Management Convention. How many of the above statements are correct?

Q2

Match the Following

Match List I (Features/Roles under the Indian Ports Act, 2025) with List II (Respective Authority): List I A. Administration and tariff fixing for Non-Major Ports B. Formulation of the National Perspective Plan C. Appellate authority for DRC orders D. Administration of Major Ports List II 1. High Court 2. Maritime State Development Council (MSDC) 3. State Maritime Board 4. Board of Major Port Authority Select the correct code:

Q3

Assertion & Reason

Assertion (A): The Indian Ports Act, 2025 explicitly bars civil courts from entertaining commercial and operational disputes related to non-major ports. Reason (R): The Act establishes state-level Dispute Resolution Committees (DRCs) to ensure specialized and expedited adjudication of port-related conflicts. Select the correct answer:

PrepDoseDay 2 · 9/11
Science & TechnologyImportant2025-07-31

ISRO Inaugurates HOPE Analog Mission Setup in Ladakh

In News

What Happened

On July 31, 2025, ISRO inaugurated the Himalayan Outpost for Planetary Exploration (HOPE) analog mission in the high-altitude Tso Kar Valley of Ladakh. Operated in collaboration with academic and industry partners, the facility consists of interconnected habitat and utility modules to house a crew in total isolation. The 10-day mission simulates the harsh, extraterrestrial conditions of the Moon and Mars.

Why It Matters

This is India's first full-scale analogue simulation mission, marking a strategic leap in indigenous human spaceflight capabilities. It generates crucial data on human psychological resilience, life support systems, and equipment performance, directly supporting the upcoming Gaganyaan mission, the Bharatiya Antariksh Station (BAS), and future crewed interplanetary missions.

Background

History & Context

The HOPE mission is spearheaded by ISRO's Human Space Flight Centre (HSFC) in partnership with the space startup Protoplanet and institutions like IIST and IITs. It builds upon foundational pilot projects, including the Ladakh Human Analogue Mission (LHAM) in November 2024 and the 10-day 'Anugami' isolation study in July 2025 which involved Gaganyatri astronaut trainees. Tso Kar Valley was specifically selected as a testing site because its sub-zero temperatures, low atmospheric pressure, high UV radiation, and arid terrain closely mirror Martian and Lunar environments.

What Changed

  • ▶

    BEFORE: Human isolation and physiological testing for Indian astronauts were primarily conducted in indoor laboratory settings or smaller-scale studies like Anugami. NOW: ISRO possesses a full-scale, Earth-based analog facility with interconnected living and utility modules in a harsh natural environment.

  • ▶

    BEFORE: India lacked indigenous field data on how long-term isolation in extraterrestrial-like extremes impacts crew teamwork, epigenetics, and cognitive function. NOW: Researchers are actively gathering real-time, localized data on human physical and mental adaptation to low-oxygen, high-stress analogue conditions.

  • ▶

    BEFORE: Prototype spacesuits, life support, and biomedical monitoring tools were validated mainly in standard testing facilities. NOW: These critical technologies are undergoing rigorous field testing and emergency crisis drills in Earth's harshest, most Mars-like terrains.

Prelims Angle

NCERT Connection

This event connects to Class 11 Biology (Chapter: Breathing and Exchange of Gases), specifically the concepts of hypoxia and high-altitude acclimatization. The HOPE mission practically applies these concepts by monitoring the crew's physiological responses (such as changes in breathing rate and red blood cell production) to the low-oxygen environment of Ladakh, simulating the stress of deep-space travel.

Practice Questions

Q1

Correct Statement(s)

With reference to the Himalayan Outpost for Planetary Exploration (HOPE) analog mission, consider the following statements: 1. It is located in the Tso Kar Valley of Ladakh to utilize its high-altitude, low-oxygen, and high-UV environment that mimics Martian conditions. 2. It is exclusively an unmanned robotic testing facility for ISRO's future Mars rovers. Which of the statements given above is/are correct?

PrepDoseDay 2 · 10/11
Polity & GovernancePriority2026-03-15

ECI Announces 2026 Assembly Poll Schedule

In News

What Happened

On March 15, 2026, the Election Commission of India (ECI) announced the schedule for the Legislative Assembly elections in Assam, Kerala, Tamil Nadu, West Bengal, and Puducherry. Alongside the schedule announcement, which immediately enforced the Model Code of Conduct (MCC), the ECI explicitly invoked Section 135B of the Representation of the People Act, 1951, directing employers to grant a mandatory paid holiday to all workers on polling day.

Why It Matters

This ensures that economic constraints do not disenfranchise the working class. By legally protecting the daily wages of vulnerable workers while they cast their ballot, the state practically operationalizes the constitutional ideal of universal adult franchise, promoting higher voter turnout and a more inclusive democratic process.

Background

History & Context

The right to vote is guaranteed to every adult Indian citizen under Article 326, but historically, working-class citizens, especially daily wagers, faced a difficult choice between exercising their franchise and losing a day's income. Recognizing this indirect disenfranchisement, the Parliament passed Act 21 of 1996, which came into effect on August 1, 1996. This amendment inserted Section 135B into the Representation of the People Act, 1951. The provision legally bound all businesses, trades, and industrial undertakings to declare a paid holiday on voting day. The judiciary has repeatedly backed this; for instance, the Madras High Court in the 'Raptakos Brett Employees Union' case explicitly rejected the argument that private employers have no public duty to grant paid leave on poll days.

What Changed

  • ▶

    Mandatory Paid Leave (Sec 135B(1)): Every person employed in any business, trade, or industrial undertaking must be granted a holiday on the day of the poll.

  • ▶

    Protection for Daily Wagers (Sec 135B(2)): Workers who ordinarily do not receive wages for days they do not work (like daily wagers and casual laborers) are legally entitled to receive their full daily wage for the poll day.

  • ▶

    Out-of-Constituency Workers Covered: Electors who are registered to vote in the poll-bound states but work in establishments located outside their constituency are also entitled to this paid holiday to travel and vote.

  • ▶

    Penalty for Contravention (Sec 135B(3)): Any employer who refuses to grant the holiday or deducts wages can be penalized with a fine extending up to Rs. 500.

  • ▶

    Immediate MCC Application: The announcement immediately barred the ruling governments at both the state and central levels (for matters concerning the poll-bound states) from announcing new schemes, financial grants, or major official transfers.

What Did NOT Change

Section 135B(4) maintains a critical exemption: the mandate does not apply to any elector whose absence may cause "danger or substantial loss" in respect of the employment they are engaged in (such as essential continuous-process industries). Furthermore, the statutory fine for violating this rule remains capped at a nominal Rs. 500, a figure that has not been adjusted for inflation since 1996.

Prelims Angle

NCERT Connection

This event directly applies concepts from Class 11 Political Science ('Indian Constitution at Work'), Chapter 3: 'Election and Representation'. The chapter details Universal Adult Franchise (Article 326) and the mechanisms for ensuring free and fair elections. Section 135B of the RPA, 1951 is the crucial statutory bridge that translates the abstract constitutional right of Universal Adult Franchise into a practical reality for the economically vulnerable, ensuring poverty does not act as a barrier to voting.

Common Misconceptions

✗ Daily wage and casual workers lose their pay if they take the day off to vote.

✓ Under Section 135B(2) of the RPA 1951, daily wage and casual workers are legally entitled to receive their wages for the poll day, exactly as if they had worked.

Because labor laws are poorly enforced in the unorganized sector, workers and employers often falsely assume statutory leave benefits only apply to salaried corporate or government employees.

✗ The Model Code of Conduct (MCC) comes into force only when the official election notification is issued by the President/Governor.

✓ The MCC comes into force immediately upon the press announcement of the election schedule by the Election Commission of India.

People confuse the statutory notification of elections (which formally starts the nomination phase) with the ECI's press announcement of the schedule.

Practice Questions

Q1

How Many Correct

Consider the following statements regarding the grant of a paid holiday to employees on polling day under the Representation of the People Act (RPA), 1951: 1. This provision has been an integral part of the RPA since its original enactment in 1951. 2. The law explicitly mandates that employers cannot deduct wages of daily-wage workers who take leave to vote. 3. The law provides an absolute mandate with no exemptions for any category of employment or industry. How many of the above statements are correct?

Q2

Match the Following

Match the following constitutional and legal provisions with their specific functions in the Indian electoral system: List I: A. Article 326 B. Section 135B of RPA, 1951 C. Model Code of Conduct (MCC) D. Article 324 List II: 1. Extends a statutory paid holiday to all workers on voting day 2. Establishes the principle of Universal Adult Suffrage 3. Vests the power to conduct elections in the Election Commission 4. A set of non-statutory norms agreed upon by political parties Select the correct code:

Q3

Assertion & Reason

Assertion (A): The Model Code of Conduct (MCC) restricts the ruling government from announcing new financial grants immediately after the Election Commission announces the poll schedule. Reason (R): The Model Code of Conduct derives its legal and punitive backing directly from Section 135B of the Representation of the People Act, 1951. Select the correct answer from the codes below:

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