31st March 2025-Current Affairs

1. Calls for GST 2.0 Grow Stronger Amidst Compliance Challenges and Refund Delays – Economy

Why in News?

A recent report to Parliament has prompted the Public Accounts Committee (PAC) to recommend a comprehensive overhaul of the Goods and Services Tax (GST) system. Referred to as “GST 2.0“, the reform is being called for due to persistent implementation challenges including refund delays, compliance complexity, lack of audit transparency, and the absence of an appellate tribunal.

Background: GST at a Glance

• Launched: July 1, 2017
• Objective: To unify India’s fragmented indirect tax system into a “One Nation, One Tax” model
• Structure: Dual model — CGST (Centre) + SGST (States) + IGST (Interstate transactions)
• Subsumed Taxes: Excise, VAT, Service Tax, Entry Tax, etc.

Key Issues Identified by the PAC

1. Delayed Refunds and Compliance Bottlenecks

• MSMEs and exporters face liquidity issues due to delays in Input Tax Credit (ITC) and refund processing.
• Complex filing procedures, frequent portal glitches, and frequent registration cancellations further burden businesses.

2. GST Compensation Fund – Lack of Audit

• PAC flagged that the GST Compensation Fund hasn’t been audited by CAG for over six years.
• Reason: Inadequate financial disclosures by the government, raising concerns about transparency.

3. Absence of GST Appellate Tribunal

• Over 19,730 cases involving substantial tax disputes remain unresolved.
• Lack of a functional tribunal has created a legal vacuum, pushing cases into overburdened High Courts.

4. Confusion Over Tax Jurisdiction

• Issues with place of supply rules, particularly in e-commerce, services, and inter-state trade, leading to litigation and uncertainty.

Recommendations for GST 2.0

Implications for Economy and Federalism

🔹 Economic Impact

• Refund delays and compliance hassles hurt MSMEs, who contribute significantly to exports and employment.
• Confusion around ITC and registration cancellations impacts investment and ease of doing business.

🔹 Centre-State Relations

• States depend on GST compensation for fiscal stability.
• Delayed and non-transparent transfers erode federal trust.

Conclusion

The GST regime, while visionary in scope, continues to face operational and structural challenges even eight years after its implementation. The call for a “GST 2.0” reflects a growing consensus that the system requires more than just fine-tuning — it needs a systemic reboot. Enhancing transparency, simplifying compliance, resolving disputes quickly, and ensuring fair Centre-State revenue sharing are essential for GST to truly become the “Good and Simple Tax” it was meant to be.

Exam Connect – Possible Questions

Prelims:

1. The GST Appellate Tribunal is primarily responsible for:

A) Drafting GST laws
B) Adjudicating constitutional disputes
C) Resolving indirect tax disputes under GST
D) Monitoring GST compensation transfers

Correct Answer: C) Resolving indirect tax disputes under GST

2. Which of the following taxes were subsumed under GST?

1. Excise Duty
2. Value Added Tax (VAT)
3. Property Tax
4. Entry Tax

A) 1 and 2 only
B) 1, 2 and 4 only
C) 2, 3 and 4 only
D) All of the above

Correct Answer: B) 1, 2 and 4 only

3. Who audits the GST Compensation Fund?

A) Reserve Bank of India
B) GST Council
C) Comptroller and Auditor General of India
D) Ministry of Finance

Correct Answer: C) Comptroller and Auditor General of India

4. Which body recommends changes to GST laws and rates?

A) NITI Aayog
B) Central Board of Direct Taxes
C) GST Council
D) Finance Commission

Correct Answer: C) GST Council

Mains:

1. “GST was envisioned as a transformative tax reform. Yet, its implementation has exposed structural and procedural weaknesses.” Examine in light of the recent calls for GST 2.0.

2. Discuss the impact of refund delays and compliance issues under GST on India’s MSME sector. What reforms are needed to address these concerns?

3. “The success of GST lies in both tax harmonization and cooperative federalism.” Evaluate the challenges faced by States in the GST regime and suggest policy responses.

2. Chicken’s Neck Corridor – International Relations

Why in News?

Bangladesh’s invitation to China to participate in a river conservation initiative near the Chicken’s Neck corridor—also known as the Siliguri Corridor—has reignited strategic concerns for India. Given the region’s proximity to China, Bangladesh, Nepal, and Bhutan, the move has implications for India’s security, connectivity, and foreign policy in its northeast.

What is the Chicken’s Neck Corridor?

• Also known as the Siliguri Corridor
• A narrow strip of land in West Bengal, connecting mainland India to its Northeastern Region (NER)
• Width: Approximately 22 km at its narrowest point
• Borders:
  • Nepal to the west
  • Bhutan to the north
  • Bangladesh to the south

Strategic Importance

1. Connectivity

• The corridor is the only land link between India’s northeastern states and the rest of the country.
• Connects to the 8 NE states: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura

2. Military and Security

• Acts as a logistical artery for troop movement and supplies in case of military escalation in the northeast.
• Vulnerable in wartime: A targeted strike or blockade here could cut off the Northeast from mainland India.

3. Geopolitical Sensitivity

• Lies in a high-stakes neighborhood with proximity to China, Bhutan, Nepal, and Bangladesh.
• China’s presence in Chumbi Valley, not far from the corridor, adds to its strategic fragility.
• China’s engagement with Bangladesh near this zone could lead to strategic encirclement concerns for India.

Strategic Risks

India’s Strategic and Diplomatic Response

🔹 Infrastructure Diversification

• Alternate routes through:
  • Brahmaputra waterways
  • India-Bangladesh inland waterways
  • Kaladan Multi-Modal Transit Project (via Myanmar)
  • Trilateral Highway (India-Myanmar-Thailand)

🔹 Diplomatic Engagement

• Strengthen ties with Bangladesh, Bhutan, and Nepal
• Counter China’s growing influence in South Asia through connectivity diplomacy and development partnerships

🔹 Border Management

• Deployment of BRO, Indian Army, and ITBP for infrastructure and security enhancement
• Surveillance and monitoring systems upgraded in the region

Link to Act East Policy and National Security

• The corridor is a gateway for India’s Act East Policy, connecting the NE to Southeast Asia
• Protecting it ensures:
  • Trade linkages
  • Cultural integration
  • Strategic continuity

Conclusion

The Chicken’s Neck Corridor is more than a geographic anomaly—it is a strategic lifeline that holds the key to India’s territorial integrity, national security, and connectivity with the Northeast. With rising Chinese interest in the region, especially through Bangladesh, India must pursue a proactive strategy combining robust infrastructure, regional diplomacy, and defense readiness to secure this critical stretch. Any compromise on the Siliguri Corridor could leave India’s strategic flank dangerously exposed.

Exam Connect – Possible Questions

Prelims:

1. The Siliguri Corridor connects mainland India to which of the following?

A) Central India
B) Jammu & Kashmir
C) Northeastern Region
D) Southern India

Correct Answer: C) Northeastern Region

2. The Chicken’s Neck Corridor lies in which Indian state?

A) Assam
B) West Bengal
C) Sikkim
D) Bihar

Correct Answer: B) West Bengal

3. Which of the following countries does not border the Chicken’s Neck Corridor?

A) Bhutan
B) Bangladesh
C) Myanmar
D) Nepal

Correct Answer: C) Myanmar

4. Which of the following Indian policies is most associated with enhancing connectivity through the Northeastern region?

A) Look West Policy
B) Act East Policy
C) Strategic Autonomy Doctrine
D) Indo-Pacific Maritime Strategy

Correct Answer: B) Act East Policy

Mains:

1. “The Chicken’s Neck Corridor is India’s strategic choke point.” Analyze its geopolitical significance in the context of India’s national security and foreign policy.

2. Discuss the challenges India faces in safeguarding the Siliguri Corridor and examine the measures taken to mitigate its vulnerabilities.

3. “India’s connectivity with its Northeastern region is both a strategic and developmental imperative.” Examine with reference to the Chicken’s Neck Corridor.

3. Kasampatty Sacred Grove: A New Biodiversity Heritage Site – Environment

Why in News?

The Tamil Nadu government has declared the Kasampatty (Veera Kovil) Sacred Grove in Dindigul District as a Biodiversity Heritage Site (BHS) under the Biological Diversity Act, 2002. This recognition highlights the grove’s ecological, cultural, and religious importance, making it the second BHS in the state.

Location and Features

• Kasampatty Village, near Oddanchatram, Dindigul District, Tamil Nadu
• Area: ~4.97 hectares
• Surrounded by lush mango plantations
• Known for a Veera Kovil temple within the grove
• Rich in floral and faunal biodiversity, including:
  • Medicinal plants
  • Native trees
  • Birds, reptiles, and small mammals

What Are Biodiversity Heritage Sites (BHS)?

Definition (Under Biological Diversity Act, 2002):

• Areas that are ecologically fragile, biologically diverse, and culturally significant
• May include sacred groves, old forests, or traditional agricultural systems

Key Features of BHS:

• High endemism and presence of threatened species
• Culturally significant practices preserved by local communities
• Notification involves consultation with local Gram Sabhas or Panchayats
• Traditional practices remain undisturbed unless voluntarily altered

Significance of Sacred Groves

• Sacred groves like Kasampatty are traditional conservation models rooted in religious and cultural beliefs
• Serve as micro-reserves for endemic and medicinal plant species
• Help in maintaining microclimatic balance, groundwater recharge, and habitat continuity

India’s First Biodiversity Heritage Site

• Nallur Tamarind Grove, Bengaluru Rural, Karnataka
• Declared in 2007
• Home to ancient tamarind trees and part of a sacred temple grove

Legal Framework and Notification Process

BHS status does not restrict traditional use, but prevents commercial exploitation and habitat degradation.

Broader Relevance

Environmental Importance

• Supports in-situ conservation
• Complements larger initiatives like Biosphere Reserves, Protected Areas, and Eco-sensitive Zones

Community Benefits

• Promotes eco-tourism and livelihood opportunities
• Enhances community stewardship of natural resources
• Preserves traditional ecological knowledge

Conclusion

The declaration of Kasampatty Sacred Grove as a Biodiversity Heritage Site is a landmark in recognizing community-led conservation and traditional ecological knowledge. As India faces growing ecological challenges, such initiatives underscore the value of decentralized, culturally integrated conservation models. Biodiversity protection must not only happen in national parks and sanctuaries—but also in sacred lands that reflect the spiritual and ecological consciousness of local communities.

Exam Connect – Possible Questions

Prelims:

1. Which of the following is true regarding Biodiversity Heritage Sites (BHS)?

A) They are designated only by the central government.
B) BHS can include culturally significant sites like sacred groves.
C) BHS allow commercial logging and development.
D) Once declared, local communities lose traditional rights.

Correct Answer: B) BHS can include culturally significant sites like sacred groves.

2. The Biological Diversity Act, 2002 provides for:

A) Creation of National Biodiversity Parks
B) Conservation of wetlands only
C) Identification and management of Biodiversity Heritage Sites
D) Mining and extraction in protected forest areas

Correct Answer: C) Identification and management of Biodiversity Heritage Sites

3. Which was the first Biodiversity Heritage Site declared in India?

A) Kasampatty Sacred Grove
B) Silent Valley National Park
C) Nallur Tamarind Grove
D) Aravalli Biodiversity Park

Correct Answer: C) Nallur Tamarind Grove

4. Which of the following statements about sacred groves is/are correct?

1. They often preserve endemic and rare species.
2. They are modern urban initiatives.
3. They have traditionally been protected for religious reasons.

A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) All of the above

Correct Answer: B) 1 and 3 only

Mains:

1. “Sacred groves are living examples of community-led conservation.” Discuss their ecological and cultural importance in the context of the Biodiversity Heritage Site framework.

2. Evaluate the role of the Biological Diversity Act, 2002 in conserving local biodiversity through decentralized governance mechanisms like Biodiversity Heritage Sites.

3. Examine how integrating traditional ecological knowledge into formal conservation efforts can help India meet its biodiversity and climate goals.

4. Operation Brahma: India’s Humanitarian Response to Myanmar’s Earthquake – International Relations

Why in News?

On March 28, 2025, a 7.7-magnitude earthquake struck Myanmar, causing widespread devastation, over 1,600 deaths, and affecting neighboring Thailand. In response, India launched Operation Brahma, a major humanitarian relief mission aimed at delivering rescue, medical, and logistical support to Myanmar.

Context of the Disaster

• Magnitude: 7.7 on the Richter scale
• Epicenter: Myanmar’s central region
• Casualties: Over 1,600 fatalities, thousands injured
• Impact: Severe damage to infrastructure, hospitals, and communications networks across Myanmar and parts of Thailand

What is Operation Brahma?

Operation Brahma is a multi-agency humanitarian relief mission led by India to assist Myanmar in the aftermath of the earthquake. It showcases India’s capacity for regional disaster diplomacy and humanitarian assistance.

Key Components of the Mission

1. National Disaster Response Force (NDRF)

• 80-member team deployed
• Equipped with concrete cutters, drill machines, life detectors, and first-aid gear
• Focus on search and rescue operations in collapsed structures

2. Indian Army Medical Support

• 118-member medical team from Shatrujeet Brigade Medical Responders
• Setting up a 60-bed Medical Treatment Centre in central Myanmar
  • Services: Trauma care, orthopedic surgery, intensive care, emergency obstetrics
• Assistance to Myanmar’s overwhelmed healthcare system

3. Indian Navy Deployment

• INS Satpura and INS Savitri deployed to Yangon port
• Delivered 40 tonnes of humanitarian aid
  • Items include:
    • Tents and tarpaulins
    • Medicines and surgical kits
    • Food supplies and clean water

Significance of Operation Brahma

🔹 Humanitarian Outreach

• Aligns with India’s ethos of “Vasudhaiva Kutumbakam” (The world is one family)
• Strengthens people-to-people ties with Myanmar

🔹 Strategic Diplomacy

• Counters growing Chinese influence in Myanmar through soft power
• Reinforces India’s role as a regional first responder in Southeast Asia

🔹 Disaster Diplomacy

• Showcases India’s capability in rapid response, logistics, and field medicine
• Builds goodwill and enhances India’s global humanitarian profile

Institutional Framework Involved

Conclusion

Operation Brahma stands as a shining example of India’s regional responsibility and humanitarian leadership. By offering swift, coordinated, and multidimensional aid to Myanmar, India not only fulfills its role as a trusted neighbor, but also strengthens its geostrategic standing in Southeast Asia. Such missions reaffirm India’s image as a compassionate global player, ready to act when disaster strikes.

Exam Connect – Possible Questions

Prelims:

1. Operation Brahma was launched by India to provide humanitarian aid to which country in 2025?

A) Nepal
B) Sri Lanka
C) Myanmar
D) Bangladesh

Correct Answer: C) Myanmar

2. The Shatrujeet Brigade is associated with which branch of India’s defense forces?

A) Indian Navy
B) Indian Air Force
C) Indian Army
D) CRPF

Correct Answer: C) Indian Army

3. Which of the following Indian naval ships was NOT involved in Operation Brahma?

A) INS Satpura
B) INS Savitri
C) INS Vikrant
D) Both A and B

Correct Answer: C) INS Vikrant

4. Which of the following best describes the role of NDRF in Operation Brahma?

A) Political negotiations
B) Anti-terrorist operations
C) Search, rescue, and disaster response
D) Border patrol

Correct Answer: C) Search, rescue, and disaster response

Mains:

1. “Disaster diplomacy is a crucial tool in India’s neighborhood policy.” Discuss with reference to Operation Brahma and India’s role in regional humanitarian relief.

2. Examine the role of India’s defense forces in providing humanitarian assistance during natural disasters. Use Operation Brahma as a case study.

3. “Soft power and strategic interests often intersect in disaster relief operations.” Analyze this statement in the context of India’s humanitarian missions in South Asia.

5. India-US Civil Nuclear Deal – Commercial Implementation and Strategic Implications – International Relations

Why in News?

Two decades after its initial signing, the India-US Civil Nuclear Deal has witnessed a major breakthrough. The US Department of Energy (DoE) has granted approval under 10 CFR Part 810 to allow the transfer of Small Modular Reactor (SMR) technology from US firm Holtec International to Indian private entities like L&T and Tata Consulting Engineers. This marks a pivotal step in the commercial implementation of the deal and opens a new phase of strategic energy cooperation.

Background: What is the India-US Civil Nuclear Deal?

• Signed in 2005, finalized in 2008 as the 123 Agreement under the US Atomic Energy Act.
• Ended India’s nuclear isolation post-1974 Pokhran tests.
• Enabled civilian nuclear trade and technology transfer from the US to India.
• India gained a special exemption from the Nuclear Suppliers Group (NSG) despite not being a signatory to the NPT.

Recent Developments: Commercial Implementation (2024-25)

US DoE Authorization Under 10 CFR Part 810

• Allows Holtec International to transfer SMR technology (30–300 MWe) to Indian private sector firms.
• Authorized recipients:
  • Holtec Asia (Indian subsidiary)
  • Tata Consulting Engineers (TCE)
  • Larsen & Toubro (L&T)

Excluded Entities

• NPCIL and NTPC excluded pending non-proliferation assurances.
• Only non-governmental Indian firms permitted to receive SMR designs currently.

Terms of the Authorization

• Duration: 10 years, with 5-year reviews
• Restrictions:
  • No retransfer of tech to third countries
  • No access to enrichment/reprocessing technologies
  • No use in military or weapons applications

What are Small Modular Reactors (SMRs)?

• Compact nuclear reactors with modular design
• Capacity: 30 MWe to 300 MWe
• Safer, cost-effective, scalable for distributed energy generation
• Ideal for decarbonizing industrial clusters and remote areas

Strategic Significance for India

1. 🇮🇳 Energy Security

• Supports India’s target of 500 GW of non-fossil energy by 2030.
• Addresses baseload demand alongside solar and wind.

2. Boost to Private Sector

• First time Indian private firms are directly involved in nuclear technology acquisition.
• Encourages indigenization, manufacturing, and exports of SMR components.

3. Global Nuclear Positioning

• Strengthens India’s strategic alignment with the US.
• Enhances India’s role in the global clean energy transition and nuclear commerce.

4. Non-Proliferation Trust

• Despite not being an NPT signatory, India’s record on non-proliferation enables continued US cooperation.

Challenges Ahead

Reviving the 123 Agreement

• This development is seen as a revival of the original 123 Agreement, which had remained symbolically important but commercially dormant.
• The focus now shifts to private-led technology deployment, bypassing earlier state-to-state roadblocks.

Conclusion

The recent authorization for SMR technology transfer marks a critical milestone in operationalizing the India-US civil nuclear partnership. It opens doors for clean energy innovation, strategic cooperation, and private sector participation. However, for India to fully leverage this opportunity, it must resolve legal, regulatory, and infrastructural bottlenecks. This is not just a step toward energy security, but a move to elevate India’s status as a responsible nuclear power and strategic partner on the global stage.

Exam Connect – Possible Questions

Prelims:

1. The India-US Civil Nuclear Deal was signed under which section of the US Atomic Energy Act?

A) 10 CFR Part 900
B) Section 377
C) Section 123
D) Part III of NPT

Correct Answer: C) Section 123

2. Small Modular Reactors (SMRs) typically range in capacity from:

A) 1–5 MWe
B) 30–300 MWe
C) 500–1000 MWe
D) 1000–2000 MWe

Correct Answer: B) 30–300 MWe

3. Which of the following Indian entities were authorized to receive SMR technology from the US in 2025?

1. NPCIL
2. Larsen & Toubro
3. Tata Consulting Engineers
4. NTPC

A) 1 and 4 only
B) 2 and 3 only
C) 1, 2 and 3
D) All of the above

Correct Answer: B) 2 and 3 only

4. India is not a member of which of the following nuclear export control regimes?

A) MTCR
B) NSG
C) Wassenaar Arrangement
D) Australia Group

Correct Answer: B) NSG

Mains:

1. “The India-US civil nuclear agreement is more than an energy deal—it is a strategic partnership.” Critically analyze its implementation and impact.

2. Discuss the potential and challenges of Small Modular Reactors (SMRs) in India’s clean energy transition.

3. “Nuclear energy is critical for India’s long-term energy security, but its development requires resolving domestic legal hurdles.” Examine in light of recent developments in the India-US nuclear partnership.