India's economic growth rate accelerated to a five-quarter high of 7.8% in the April-June quarter (Q1) of the current financial year, surpassing the Reserve Bank of India's prediction of 6.5%. This robust growth was primarily propelled by strong performances in the manufacturing, construction, and services sectors. Chief Economic Adviser V. Anantha Nageswaran expressed confidence in continued momentum despite concerns over U.S. tariffs, attributing the resilience to government decisions on indirect tax rates. However, the Rupee depreciated to an all-time low against the USD, influenced by additional U.S. tariffs.
India's GDP grew by 7.8% in the first quarter (April-June) of the current financial year, marking a five-quarter high.
The growth exceeded the Reserve Bank of India's projection of 6.5% for the same period.
Key drivers of this economic expansion include strong performances in the manufacturing, construction, and services sectors.
Exam Points
India's GDP growth for April-June 2025 (Q1) was 7.8%.
The Reserve Bank of India (RBI) had predicted a Q1 growth of 6.5%.
The public administration, defence, and other services sector grew at a three-year high of 9.8%.
Prime Minister Narendra Modi, addressing the India-Japan Economic Forum in Tokyo, asserted that India is poised to become the world's third-largest economy 'very soon'. Amidst trade uncertainties with the U.S., Modi advocated for increased investment in India, highlighting its role as a 'springboard' to the Global South. Japan announced a ¥10 trillion private investment target for India over the next decade. The two nations also launched initiatives like the India-Japan AI Initiative and an Economic Security Initiative, alongside a Joint Credit Mechanism for green energy, reinforcing cooperation in critical sectors and mineral resources.
Prime Minister Modi declared India would soon become the world's third-largest economy during his visit to Tokyo.
Japan committed a private investment target of ¥10 trillion for India over the next decade.
India and Japan launched an AI Initiative and an Economic Security Initiative to bolster supply chain resilience.
Exam Points
Prime Minister Narendra Modi made the statement at the India-Japan Economic Forum in Tokyo.
Japan announced a private investment target of ¥10 trillion for India over the next decade.
India and Japan launched an India-Japan AI Initiative and an Economic Security Initiative.
Eight states have proposed levying an additional cess on sin and luxury goods, over and above a proposed 40% GST rate, to safeguard their revenues. This proposal comes ahead of the GST Council meeting, in response to the Centre's plan to rationalise tax slabs by removing 12% and 28% rates and moving most items to 5% and 18%. The states, all non-BJP ruled, anticipate a 15-20% revenue reduction from the Centre's rationalisation and argue for the cess proceeds to be fully distributed among them to discourage sin goods and promote public health, citing their heavy dependence on GST revenue.
Eight states have proposed an additional cess on sin and luxury goods beyond the 40% GST rate.
The proposal aims to protect state revenues from potential losses due to the Centre's GST rate rationalisation plan.
The Centre's plan includes removing 12% and 28% GST slabs, shifting items to 5% and 18%, and setting a 40% rate for some sin/luxury items.
Exam Points
Eight states proposed a cess on sin and luxury goods above the proposed 40% GST rate.
The Centre proposed removing 12% and 28% GST tax slabs.
The proposed new GST rates for most items in these slabs are 5% and 18%.
India, heavily reliant on crude oil and natural gas imports, faces significant energy security risks amidst global instability. The article highlights historical energy shocks and proposes a doctrine of energy sovereignty anchored in domestic capacity, diversified technology, and resilient systems. Five foundational pillars are outlined: coal gasification for indigenous energy, biofuels for rural empowerment and national security, nuclear power as a zero-carbon baseload, green hydrogen for self-reliance, and pumped hydro storage for grid balancing. This strategy aims to build an uninterrupted, affordable, and indigenous energy future, reducing vulnerability to geopolitical shifts and external dependencies.
India's high dependence on imported crude oil and natural gas poses a significant national risk.
Global energy security has been reshaped by five major historical shocks, emphasizing the need for resilience.
India must adopt an energy sovereignty doctrine based on domestic capacity, diversified technology, and resilient systems.
Exam Points
India imports over 85% of its crude oil and more than 50% of its natural gas.
Russia accounts for roughly 35%-40% of India's total crude imports in 2024-25.
India has over 150 billion tonnes of coal reserves.
India's entrance examination system, exemplified by JEE and NEET, is criticized for fostering intense competition, a burgeoning coaching industry, and severe student stress, leading to suicides and exacerbating socio-economic imbalances. The current system, which overqualifies students and distorts merit, sidelines capable individuals who cannot afford coaching. Drawing inspiration from global models like the Dutch weighted lottery and China's 'double reduction' policy, the article proposes reforms. Solutions include simplifying admissions by trusting Class 12 board examinations, implementing a weighted lottery with reservations, vertically reserving IIT seats for rural students, and potentially nationalizing coaching to ensure fairness and student well-being.
India's entrance examination system is criticized for intense competition, a thriving coaching industry, and negative impacts on student mental health.
The current system creates an illusory meritocracy, favoring wealthier families and exacerbating urban-rural and gender imbalances.
International models, such as the Dutch weighted lottery for medical admissions and China's ban on for-profit tutoring, offer potential solutions.
Exam Points
Nearly 70 lakh students compete for undergraduate seats in India annually.
15 lakh aspirants compete for 18,000-plus seats in the Indian Institutes of Technology (IIT).
The Netherlands uses a weighted lottery for medical school admissions, reinstated in 2023.
India's Environment Ministry and Japan have signed a Memorandum of Cooperation (MoC) on a Joint Crediting Mechanism (JCM) to advance low-carbon technology projects. Under JCM, Japan invests in low-carbon technologies in developing countries like India, earning carbon credits for its national emission reduction targets. This initiative aims to boost investment, technology transfer, and localization of low-carbon technologies in India, fostering a domestic ecosystem. The MoC will also facilitate international trading of carbon credits under Article 6.2 of the Paris Agreement, aligning with India's Nationally Determined Contribution (NDC) commitments to reduce emission intensity and increase non-fossil fuel capacity by 2030.
India and Japan signed a Memorandum of Cooperation (MoC) on a Joint Crediting Mechanism (JCM).
The JCM allows Japan to invest in low-carbon technologies in India and receive carbon credits for its emission reduction targets.
The initiative aims to promote investment, technology transfer, and localization of low-carbon technologies in India.
Exam Points
India's Environment Ministry signed an MoC with Tokyo on a Joint Crediting Mechanism (JCM).
The JCM is a Japanese initiative for carbon credit generation.
The agreement facilitates international trading of carbon credits under Article 6.2 of the Paris Agreement.
The Supreme Court of India has regained its full sanctioned strength of 34 judges with the swearing-in of Justices Alok Aradhe and Vipul M. Pancholi. Chief Justice B.R. Gavai administered the oath. Justice Pancholi is slated to become Chief Justice of India in 2031. Their appointment process saw a rare dissent from Justice B.V. Nagarathna, who questioned Justice Pancholi's seniority ranking and suggested other meritorious judges could be considered. Despite this, the Collegium recommended the appointments by a 4:1 majority, which were subsequently notified within 48 hours.
The Supreme Court of India has reached its full sanctioned strength of 34 judges.
Justices Alok Aradhe and Vipul M. Pancholi were sworn in by Chief Justice B.R. Gavai.
Justice Vipul M. Pancholi is in line to become the Chief Justice of India in 2031.
Exam Points
The Supreme Court's full sanctioned strength is 34 judges.
Justices Alok Aradhe and Vipul M. Pancholi were sworn in.
Justice Vipul M. Pancholi is in line to become CJI from October 3, 2031, till May 27, 2033.
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