26th May 2025-Current Affairs

1. Draft Space Activities Bill Finalised – Polity

Why in News?

• India is in the final stages of drafting the Space Activities Bill.
• Objective: Establish a legal framework to regulate and promote private sector participation in India’s space sector.
• Grants statutory authority to IN-SPACe (Indian National Space Promotion and Authorisation Centre).

Key Highlights of the Draft Space Activities Bill

1. Why the Bill is Needed

• Current Situation:
  • India lacks a dedicated, updated law for space activities.
  • The 2017 draft space policy wasn’t finalised.
  • IN-SPACe was set up in 2020 to encourage private participation, but lacks full legal backing.
• International Obligations:
  • India is a signatory to treaties like the Outer Space Treaty (1967), which mandates responsible and lawful use of outer space.

2. Purpose and Objectives

• Provide a legal framework for private sector involvement in space.
• Empower IN-SPACe with legal authority to:
  • Regulate and authorise private space activities.
  • Ensure compliance with international obligations.
• Ensure India’s intellectual property (IP) generated from space activities remains with the government.
• Foster affordable insurance mechanisms for startups.

3. Key Provisions

4. Economic Vision

• India’s current space economy: $8.4 billion (2022).
• Target for 2033: $44 billion (including $11 billion exports).
• The bill is expected to catalyse private sector investment and innovation.

5. Consultation and Approval Process

• After internal review, the draft will:
  • Be released for public feedback.
  • Be submitted to the Prime Minister, then to the Cabinet and Parliament for approval.

6. State-Level Initiatives

• Plans for 4–5 manufacturing hubs across India.
• States like Tamil Nadu, Gujarat, Karnataka are developing their own space policies.

Broader Context and Significance

International Obligations

• India must adhere to global treaties like:
  • Outer Space Treaty, 1967 (peaceful use of outer space).
  • Liability Convention, 1972 (responsibility for damage caused by space objects).
• A clear legal framework ensures compliance and accountability on the global stage.

Why Legal Backing Matters

• Legal clarity = More private investments.
• Prevents legal disputes over ownership, liability, and IP.
• Supports startups and SMEs in entering the space sector.

Global Aspirations

• Competing with space powers like the USA, China, EU.
• Harnessing space technology for communication, remote sensing, climate monitoring, etc.

Summary

The Draft Space Activities Bill is a landmark initiative aimed at modernising India’s space governance. It empowers IN-SPACe, creates a robust legal framework for private sector participation, and aligns India’s space activities with global norms. The bill is a step towards India becoming a major player in the global space economy, fostering innovation, entrepreneurship, and compliance with international treaties.

Exam Connect – Possible Questions

Prelims

1.Consider the following statements regarding the Draft Space Activities Bill:

• It provides statutory authority to IN-SPACe to regulate private space activities.
• The bill proposes that intellectual property generated in space activities will belong to private entities.
• The bill is in compliance with India’s obligations under the Outer Space Treaty of 1967.

Which of the statements is/are correct?
a) 1 and 2
b) 1 and 3
c) 2 and 3
d) 1, 2 and 3
Answer: b) 1 and 3
Statement 2 is incorrect: IP generated in space will belong to the Government of India.

2. IN-SPACe, recently in news, is:
a) India’s premier space research agency.
b) A statutory body for regulating private space activities.
c) A private consortium of space startups.
d) A division under ISRO for launching military satellites.
Answer: b) A statutory body for regulating private space activities.

Mains

1. Discuss the significance of the Draft Space Activities Bill in promoting private sector participation in India’s space economy.

2. How does the Draft Space Activities Bill align India’s space activities with international legal obligations? Explain.

3. Critically evaluate the potential of India’s space sector to achieve the $44 billion target by 2033 in light of the Draft Space Activities Bill.

2. 10th NITI Aayog Governing Council Meeting – Polity

Why in News?

• The 10th Governing Council meeting of NITI Aayog, chaired by Prime Minister Narendra Modi, was recently held in New Delhi.
• The meeting focused on collaborative strategies between the Centre and States to achieve the vision of a Viksit Bharat (Developed India) by 2047.
• PM Modi emphasised a “Team India” approach to governance and development.

NITI Aayog: Background & Significance

Key Highlights from the 10th Governing Council Meeting

1. Vision of Viksit Bharat (Developed India) by 2047

• PM Modi called on states to contribute actively towards India’s goal of becoming a developed nation by 2047 (100 years of independence).
• Emphasis on:
  • Economic growth.
  • Social inclusion.
  • Sustainable development.

2. Strengthening Centre–State Relations: Team India Approach

• Cooperative federalism: Both Centre and States must act as equal partners in the nation’s development journey.
• Focus on:
  • Sharing best practices.
  • Joint problem-solving.
  • Capacity building for governance.

3. Strategic Areas Discussed

Broader Significance

Cooperative Federalism in Action

• NITI Aayog serves as a platform where states and the Centre collaborate on national priorities.
• Example: Sharing state-level innovations in health, education, or agriculture that can be replicated elsewhere.

Alignment with National Goals

• The “Viksit Bharat 2047” vision ties into:
  • SDGs (Sustainable Development Goals).
  • India’s global commitments like climate action.
  • National priorities like self-reliance (Aatmanirbhar Bharat) and inclusive growth.

Summary

The 10th Governing Council meeting of NITI Aayog emphasised the “Team India” approach to governance, aiming for a Viksit Bharat by 2047. PM Modi urged states to work collaboratively with the Centre, focusing on leveraging Free Trade Agreements, strengthening local manufacturing, and improving disaster preparedness. NITI Aayog continues to play a vital role in promoting cooperative federalism and ensuring evidence-based policy-making for India’s long-term growth.

Exam Connect – Possible Questions

Prelims

1. Which of the following statements about NITI Aayog is correct?
a) It replaced the Planning Commission in 2014.
b) It is a statutory body under the Ministry of Finance.
c) It promotes cooperative federalism and evidence-based policy-making.
d) It has constitutional status under Article 280.
Answer: c) It promotes cooperative federalism and evidence-based policy-making.

2. The Governing Council of NITI Aayog consists of:
a) The Prime Minister, Union Cabinet Ministers, and Chief Ministers.
b) The Prime Minister, Chief Ministers, Lt. Governors, Union Ministers, and senior officials.
c) The President, Prime Minister, and Governors of States.
d) The Prime Minister, Vice President, and Chief Ministers.
Answer: b) The Prime Minister, Chief Ministers, Lt. Governors, Union Ministers, and senior officials.

Mains

1. Discuss the significance of the NITI Aayog as an instrument for promoting cooperative federalism in India.

2. Critically examine how the ‘Team India’ approach advocated in the 10th Governing Council meeting can help achieve the vision of a ‘Viksit Bharat’ by 2047.

3. How can states leverage Free Trade Agreements and local manufacturing opportunities to contribute to India’s economic growth?

3. Permanent Consumer Redressal Bodies – Polity

Why in News?

• The Supreme Court (SC) of India has urged the Centre to establish permanent adjudicatory bodies for resolving consumer disputes.
• The call comes due to:
  • Persistent delays.
  • Rising digital-era complaints.
  • The need for a stable framework to uphold constitutionally backed consumer rights.

Why Do We Need Permanent Consumer Dispute Resolution Bodies?

1.Judicial Endorsement for Permanency

• SC’s Concern:
  • Temporary appointments in consumer forums lead to:
    • Disruptions in functioning.
    • Inconsistency in decisions.
    • Backlog of cases (over 5.5 lakh pending as of 2023 – NCDRC data).
• SC Recommendation:
  • Permanent bodies with full-time presiding officers (preferably sitting judges) and dedicated staff.
  • Professionalisation = Better justice delivery.

2. Challenges in the Current System

3. Need for Experts & Digital Focus

• Permanent bodies = Panels of judges + experts (tech, digital law, consumer rights).
• Addresses evolving challenges in:
  • Cross-border commerce.
  • Data protection.
  • Online frauds.

Legal and Constitutional Foundation for Consumer Protection in India

Constitutional Backing

Key Consumer Protection Laws

Challenges in Consumer Protection Framework

Way Forward: Supreme Court’s Recommendations

• Establish Permanent Consumer Redressal Bodies:
  • Full-time judges (sitting or retired).
  • Staff trained in consumer laws, digital laws, data protection.
• Improve infrastructure, digital access, and funding.
• Enhance legal education on consumer rights at grassroots.
• Strengthen Alternative Dispute Resolution (ADR) before litigation.
• Follow 2nd ARC recommendations for efficient grievance redressal.

Summary

The Supreme Court’s call for permanent consumer dispute redressal bodies reflects the growing need for a robust system that can handle modern challenges like e-commerce, digital fraud, and cross-border disputes. Consumer protection, rooted in the Constitution’s DPSPs and expanded through laws like the Consumer Protection Act, 2019, requires systemic reforms: better staffing, training, digital infrastructure, and public awareness. A permanent redressal mechanism is key to ensuring timely, expert-driven justice and real consumer empowerment.

Exam Connect – Possible Questions

Prelims

1. Which of the following rights is NOT explicitly recognized under the Consumer Protection Act, 1986?
   a) Right to Safety
   b) Right to Consumer Education
   c) Right to Privacy
   d) Right to Choose
   Answer: c) Right to Privacy

2. Consider the following statements about the Consumer Protection Act, 2019:

1. It introduced the concept of product liability and covers e-commerce.
2. It mandates the establishment of the Central Consumer Protection Authority (CCPA).
3. It is based on the Directive Principles of State Policy in the Indian Constitution.

Which of the above are correct?
a) 1 and 2 only
b) 2 and 3 only
c) 1 and 3 only
d) 1, 2, and 3
Answer: d) 1, 2, and 3

Mains

1. Discuss the need for establishing permanent consumer redressal bodies in India. How can they address the challenges of a digital economy?

2. Examine the constitutional and legal foundations of consumer protection in India. How does the Consumer Protection Act, 2019 modernise the framework?

3. Suggest measures to improve consumer awareness and access to redressal mechanisms, especially in rural India.

4. Sources of the RBI’s Surplus – Economy

Why in News?

• The Reserve Bank of India (RBI) has announced a record surplus transfer of ₹2.11 lakh crore to the Central Government for FY 2024–25.
• This is a 27% increase over the previous year’s transfer (₹87,416 crore).
• The surplus transfer exceeds the budgeted estimate of ₹1.02 lakh crore, giving the government additional fiscal space.

What is the RBI Surplus Transfer?

• Under the RBI Act, 1934, the RBI transfers its surplus (profit) to the Central Government after:
  • Covering its operating expenses.
  • Allocating funds for reserves and risk buffers.

Why It Matters:

• The RBI’s surplus helps bridge the government’s fiscal deficit and finance expenditure.

Sources of the RBI’s Surplus

Contingent Risk Buffer (CRB) and Flexibility in Transfers

• The CRB is a reserve set aside by the RBI for unforeseen risks (e.g., currency volatility, market crashes).
• The Jalan Committee (2019) recommended:
  • CRB range: 5.5%–6.5% of RBI’s balance sheet.
  • Adjusting CRB allows RBI to release surplus funds in certain years, even if profits are lower.
• In 2024–25, the high surplus transfer was enabled by:
  • Forex sale gains.
  • Liquidity operations.
  • Adjustments in CRB.

Sustainability Concerns

• Experts caution:
  • Forex sale gains may not be consistent.
  • Surplus transfers depend on external factors like global interest rates, exchange rates, and inflation.
  • Over-reliance on surplus transfers may impact RBI’s financial stability in the long term.

RBI–Government Relationship: Autonomy vs. Fiscal Needs

• Tensions in the past over:
  • Size of surplus transfers.
  • Autonomy of RBI in monetary policy.
• Jalan Committee Recommendations (2019):
  • Introduced rules-based framework for surplus transfers.
  • Helped reduce friction between the RBI and the Ministry of Finance.

Summary

The RBI’s surplus comes from diverse sources like seigniorage, foreign investments, and liquidity operations. The record surplus transfer for FY 2024–25 was primarily driven by forex sale gains and liquidity management profits. While this provides fiscal relief to the government, there are concerns about the sustainability of such high transfers. The Jalan Committee framework has provided a more structured approach, balancing RBI’s autonomy and the government’s fiscal needs.

Exam Connect – Possible Questions

Prelims

1. Which of the following is NOT a source of surplus income for the RBI?
a) Seigniorage from currency issuance
b) Interest on foreign assets
c) Corporate tax collection
d) Income from liquidity management
Answer: c) Corporate tax collection

2. The Contingent Risk Buffer (CRB) of the RBI is primarily meant to:
a) Support government fiscal deficit.
b) Manage unforeseen risks like currency volatility.
c) Fund government social sector schemes.
d) Control inflation directly.
Answer: b) Manage unforeseen risks like currency volatility.

Mains

1. Discuss the key sources of the RBI’s surplus and the factors influencing the size of surplus transfers to the government.

2. Examine the implications of high surplus transfers from the RBI to the government. How does the Jalan Committee’s framework balance RBI autonomy with fiscal needs?

3. Analyse the sustainability challenges of relying on surplus transfers from the RBI to manage fiscal deficits in India.

5. Regional Fallout of Land Port Closures – InternationaI Relations

Why in News?

• India’s Directorate General of Foreign Trade (DGFT) has mandated the closure of all land ports with Bangladesh for certain exports and imports, including apparel and goods from the northeastern states.
• This move reflects strained India-Bangladesh relations, especially following the fall of the Hasina government and diplomatic tensions regarding India’s northeast and Bangladesh’s strategic realignments.

Key Developments and Trade Restrictions

Why is This Significant?

1. Economic Impact

• Trade Disruption:
  • India-Bangladesh bilateral trade = $14 billion+.
  • 80% of this trade is land-based; closures hit border economies in India’s northeast.
• Northeast Impact:
  • Exports from Assam, Meghalaya, Mizoram, Tripura (fruits, plastics, processed food) face setbacks.
• Bangladesh’s Economy:
  • Its garment sector (key export to India) faces a blow, risking job losses and production disruptions.

2. Geopolitical Fallout

• Reflects strained ties post-Hasina government’s fall:
  • Bangladesh’s shift towards Pakistan and China for strategic alignment.
  • Recent statements by Bangladeshi officials on India’s northeast raise sovereignty and security concerns.
• Could impact regional connectivity projects:
  • BBIN (Bangladesh, Bhutan, India, Nepal) initiatives.
  • Regional supply chains and Act East Policy ambitions.

3. Diplomatic Signalling

• India’s trade restrictions act as a pressure tactic:
  • A response to Bangladesh’s unilateral trade actions.
  • A message of reciprocity: India demands balanced, fair trade terms.

Wider Regional Implications

Strategic and Policy Dimensions

Summary

The closure of India’s land ports with Bangladesh for key goods reflects deteriorating bilateral relations, with economic, strategic, and geopolitical ramifications. It disrupts border economies, complicates regional trade involving Nepal and Bhutan, and signals India’s diplomatic stance in response to Bangladesh’s actions. While aimed at asserting reciprocity, the move risks escalating tensions and could undermine long-term regional connectivity and integration goals.

Exam Connect – Possible Questions

Prelims

1. Consider the following statements about recent India-Bangladesh trade developments:

1. India has banned all imports from Bangladesh, including fish and LPG.
2. The trade restrictions primarily affect land ports in the northeastern region.
3. The closures were partly in response to Bangladesh’s unilateral trade actions.

Which of the above are correct?
a) 1 and 2
b) 2 and 3
c) 1 and 3
d) All of the above
Answer: b) 2 and 3
Statement 1 is incorrect: Imports of fish, LPG, etc., are still allowed.

2. Which of the following ports is currently allowed for India-Bangladesh trade post land port closures?
a) Agartala Land Port
b) Petrapole Land Port
c) Kolkata Seaport
d) Dawki Land Port
Answer: c) Kolkata Seaport

Mains

1.Discuss the economic and geopolitical implications of the closure of land ports between India and Bangladesh on regional trade and India’s northeast.

2.Examine the importance of border trade for India’s Act East Policy. How do trade disruptions with Bangladesh affect India’s regional connectivity goals?

2.India-Bangladesh relations have seen periods of both cooperation and tension. In light of recent trade restrictions, critically analyse the challenges and opportunities in the bilateral relationship.

6. World Hydrogen Summit 2025 & Green Hydrogen – Environment

Why in News?

• At the World Hydrogen Summit 2025 in Rotterdam, Netherlands, India showcased its ambitious plans to become a global leader in Green Hydrogen (GH2) production.
• The Ministry of New & Renewable Energy (MNRE) highlighted:
  • India’s targets under the National Green Hydrogen Mission.
  • Steps like Green Hydrogen Certification, infrastructure development, and global partnerships.

What is Green Hydrogen (GH2)

Applications of Green Hydrogen

Types of Hydrogen: The Hydrogen Color Spectrum

India’s Green Hydrogen Initiatives

Why Green Hydrogen Matters for India

Summary

The World Hydrogen Summit 2025 highlights the global pivot towards green hydrogen (GH2) as a clean energy solution. India’s leadership through the National Green Hydrogen Mission focuses on large-scale GH2 production, certification schemes, and international partnerships. Green hydrogen’s potential spans across transport, industry, and energy sectors, contributing to India’s net zero ambitions and energy independence. However, scaling up will require overcoming challenges like infrastructure gaps, cost reductions, and global technology access.

Exam Connect – Possible Questions

Prelims

1. Which of the following is NOT correctly matched?
a) Green Hydrogen – Produced via electrolysis using renewable energy.
b) Blue Hydrogen – Produced via natural gas reforming with carbon capture.
c) Gray Hydrogen – Produced via coal gasification with carbon storage.
d) Turquoise Hydrogen – Produced via pyrolysis of methane, yielding hydrogen and solid carbon.
Answer: c) Gray Hydrogen – Produced via coal gasification with carbon storage.
Correction: Gray Hydrogen is produced via natural gas reforming without carbon capture.

2.The National Green Hydrogen Mission of India aims for what annual production capacity by 2030?
a) 2 million tonnes
b) 5 million tonnes
c) 10 million tonnes
d) 15 million tonnes
Answer: b) 5 million tonnes

Mains

1. Discuss the role of green hydrogen in India’s clean energy transition and the steps taken by the government to promote it.

2. Compare and contrast different types of hydrogen based on their production methods and environmental impact.

3. Evaluate the challenges and opportunities for India in becoming a global hub for green hydrogen production.