The 16th Finance Commission has highlighted that power subsidies in Tamil Nadu flow disproportionately to higher-consumption households, labeling them as "regressive." Over 2.3 crore consumers in the state receive up to 100 units of free electricity bimonthly, regardless of their income or consumption levels. In contrast, states like Kerala, Goa, and Gujarat provide targeted access, restricting free power to specific groups like SC/ST or low-consumption households (under 30 units). The Commission suggests that such targeted arrangements allow states to support vulnerable populations with a relatively lower fiscal impact while improving their quality of life.
Tamil Nadu's free power scheme is criticized for being non-targeted, benefiting high-income households as much as low-income ones.
The 16th Finance Commission identified the scheme as 'regressive' because subsidies flow disproportionately to high-consumption households.
States like Kerala, Goa, and Gujarat are cited as better models for restricting free power to specific vulnerable groups or very low usage tiers.
Exam Points
16th Finance Commission report Volume I
Tamil Nadu free power scheme active since May 2016
2.3 crore consumers in TN receive 100 units free bimonthly
Shrikant Madhav Vaidya argues that global industrial competitiveness is shifting from 'molecules' (fossil fuels) to 'electrons' (clean electricity). While China leads with nearly half of its industrial energy coming from electricity, India lags at 27%. Electrification offers higher efficiency, better process control, and easier decarbonization. To remain competitive in a carbon-conscious global market, India must launch a national mission on industrial electrification, mandate clean energy in new industrial parks, and provide targeted finance for MSMEs to transition to electric-based processes like electric-arc furnaces in steel manufacturing.
Industrial energy is shifting from combustion-based 'molecules' to clean and reliable 'electrons' (electrification).
China's industrial electrification stands at 47%, significantly higher than India's 27% and the global average of 30%.
Electric motors are highly efficient, converting over 90% of energy into work, compared to less than 35% for internal combustion engines.
A recent trade deal between India and the U.S. has brought relief to Indian industries, particularly with the announcement of U.S. tariffs on Indian imports being slashed from 50% to 18%. This move benefits labor-intensive sectors like textiles, leather, and engineering. However, the deal comes with significant geopolitical strings, including U.S. assertions that India will stop buying Russian oil and instead purchase more Venezuelan crude. While the tariff reduction enhances competitiveness, the lack of clarity on implementation timelines and the potential strain on Indo-Russian relations remain critical concerns for Indian policymakers.
U.S. tariffs on Indian imports are set to be reduced from 50% to 18%, boosting sectors like textiles and engineering.
The deal involves a strategic shift, with the U.S. claiming India has agreed to stop purchasing Russian oil.
Switching from Russian to Venezuelan crude presents significant refining and logistical challenges for India.
Exam Points
Tariff reduction from 50% to 18%
Commerce Minister: Piyush Goyal
Targeted announcements in Union Budget 2026 expected to bridge competitiveness gaps
The artificial intelligence industry is transitioning from a focus on infrastructure (chips, data centers) to practical applications. In 2025, investment in AI infrastructure reached $320 billion, but foundation model businesses face thin profit margins and high competition. Conversely, AI applications are showing real market demand, with spending reaching $19 billion. The article emphasizes that real value lies in departmental AI tools, such as coding assistants and specialized solutions for healthcare or finance. Policymakers are urged to balance regulation with room for experimentation while addressing concerns like copyright, privacy, and anti-competitive acquisitions.
AI investment is moving from building foundational models to creating revenue-generating applications.
Foundation models face sustainability challenges due to high inference costs and intense competition.
Copyright and privacy are emerging as primary legal concerns regarding the source of AI training data.
Exam Points
AI infrastructure investment in 2025: $320 billion
AI application spending in 2025: $19 billion
OpenAI annual revenue reached $13 billion by August 2025
Despite controversies regarding the misuse of funds, the Members of Parliament Local Area Development Scheme (MPLADS) remains a vital tool for local development. Launched in 1993, it allows MPs to recommend projects creating durable community assets like schools and roads. Critics argue the funds are poorly utilized, but data shows high utilization rates in previous Lok Sabhas (e.g., only 0.99% remained unused in the 14th Lok Sabha). The article suggests that instead of scrapping the scheme, improvements should focus on better guidance for MPs and transparency through geotagged images and public dashboards.
MPLADS is a Central Sector Scheme fully funded by the Government of India since 1993.
Each MP can recommend developmental projects worth ₹5 crore annually within their constituency.
The scheme enables the creation of durable community assets like roads, schools, and water facilities.
The Supreme Court of India is examining whether messaging platforms like WhatsApp can share and commercially exploit user data. A three-judge Bench led by the Chief Justice compared the unauthorized sharing of private data to a 'decent way of committing theft.' The court is scrutinizing the Digital Personal Data Protection (DPDP) Act of 2023, noting that it primarily addresses privacy but may lack sufficient provisions regarding the 'rent-sharing' or monetary value of user data. The Bench emphasized that once data is shared, its value remains, and users should have a say in its commercial use.
The SC is hearing petitions against a ₹213.14-crore penalty imposed on Meta by the Competition Commission of India (CCI).
The court highlighted that the DPDP Act 2023 focuses on privacy but not necessarily on the commercial value of data.
Concerns were raised about whether rural or poor users can navigate complex privacy consent language.
Exam Points
Digital Personal Data Protection (DPDP) Act of 2023
A report reveals that the Supreme Court of India has not confirmed a single death penalty in the past three years (2023-2025). In 2025, the top court acquitted 10 death row prisoners, the highest in a decade. While lower courts (Sessions Courts) handed down 1,310 death sentences over the last ten years, the high rate of acquittals at the appellate level raises serious concerns about wrongful convictions and procedural violations during sentencing. The report also notes a growing trend of using life imprisonment without remission as an alternative to the death penalty.
The Supreme Court has not confirmed any death sentences in the last three years.
Sessions courts sentenced 128 individuals to death in 2025 alone, showing a gap between trial and appellate courts.
High acquittal rates suggest errors in lower court judgments and a lack of proper psychological evaluations during sentencing.
Exam Points
1,310 death sentences by Sessions Courts in the last decade
574 prisoners on death row as of Dec 31, 2025
Manoj vs State of Madhya Pradesh (SC guidelines on sentencing)
The Union government's first-ever enumeration of waste-pickers under the NAMASTE scheme reveals that 84.5% belong to Scheduled Castes (SC), Scheduled Tribes (ST), or Other Backward Classes (OBC). Out of 1.52 lakh profiled workers, the majority are from these marginalized communities, while only 10.7% are from the General category. The NAMASTE scheme, originally for sewer and septic tank workers, now includes waste-pickers to formally recognize them and provide protective equipment. The goal is to eradicate hazardous cleaning practices and deaths, with 859 deaths reported since 2014 due to cleaning sewers.
84.5% of profiled waste-pickers are from SC, ST, or OBC communities, highlighting the intersection of caste and labor.
The NAMASTE scheme aims to formally recognize and protect waste-pickers and sanitation workers through urban local bodies.
The scheme's primary objective is to eradicate deaths due to hazardous cleaning of sewers and septic tanks.
Exam Points
NAMASTE scheme: National Action for Mechanised Sanitation Ecosystem
Suborbital tourism involves space travel where passengers fly to the edge of space but do not complete a full orbit around the Earth. These flights typically reach an altitude of approximately 100km, known as the Kármán line, which is the internationally recognized boundary of space. Unlike orbital missions (like those to the ISS), suborbital vehicles follow a parabolic path and do not reach the high speeds required to stay in orbit. Passengers experience several minutes of weightlessness and can see the Earth's curvature before the craft returns to the atmosphere.
Suborbital flights reach the Kármán line (100km altitude) but do not orbit the Earth.
Companies like Blue Origin and Virgin Galactic are key providers of these experiences.
Suborbital travel requires less energy and less complex heat shielding than orbital missions.
The 2026-2027 Budget for the space sector shows a 5.3% increase from pre-pandemic levels, indicating a shift towards sustained growth. While the budget supports state-led programs like ISRO, private sector bodies like ISpA and SIA-India have expressed concerns. Key issues include the lack of a dedicated Production Linked Incentive (PLI) scheme for space-grade components and the 18% GST on manufacturing, which creates cash-flow problems. Although a ₹1,000 crore Venture Capital fund was established, industry experts argue for more structural reforms, such as low-interest lending and tax credits for R&D, to bridge the 'death valley' between prototype and commercial scale.
The space budget has grown by 182% since 2013, but recent growth has slowed.
Private players are calling for GST rationalization and a PLI scheme for space manufacturing.
A ₹1,000 crore VC fund has been set up to support space startups over the next decade.
Exam Points
₹1,000 crore Venture Capital fund for space sector
18% GST on space manufacturing
India's global space market share target: 10% by 2030
The Union Budget 2026-27 has announced a record ₹7,84,678 crore for the Ministry of Defence, reflecting a focus on modernization and 'Aatmanirbhar Bharat.' Capital outlay, which is used for purchasing new equipment like ships and aircraft, has risen to 27.9% of the total defence budget. This increase is driven by the need to replenish stocks after Operation Sindoor and address geopolitical tensions with China and Pakistan. However, challenges remain in absorption capacity and ensuring that the 'Buy (Indian-IDDM)' procurement route is flexible enough to meet urgent operational requirements.
Defence budget for FY 2026-27 is ₹7.84 lakh crore, accounting for 14.7% of total government expenditure.
Capital expenditure has seen a significant jump to ₹2.19 lakh crore to support modernization.
The share of pensions in the defence budget has decreased to 21.8% in FY27 from 26% in FY20.
Exam Points
Total Defence Budget FY27: ₹7,84,678 crore
Capital Outlay FY27: ₹2,19,306.47 crore
Operation Sindoor mentioned as a driver for stock replenishment
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