Raman Academy • Daily Current Affairs
Important News Articles & Editorial Analysis
The Hindu
Thursday, 04 June 2026
Edition: International
Economy Page 01 • GS III • Indian Economy
U.S. moots 12.5% tariff on India for failure to enforce ‘forced labour’ regulations
The Office of the US Trade Representative (USTR) has proposed a 12.5% tariff on 54 countries, including India, under an investigation conducted using Section 301 of the U.S. Trade Act, 1974. Washington alleges these countries failed to effectively restrict the import and sale of goods made using ‘forced labour’. The move comes even as India and the US negotiate a bilateral Interim Trade Agreement, with New Delhi saying it is actively engaging the US administration.
1. Section 301 and America’s New Stand
Key Points
- A new punitive tool: After the US Supreme Court invalidated the earlier 50% reciprocal tariffs on India, Washington is now using Section 301 as a fresh lever.
- USTR’s argument: The report claims India’s policies on enforcing forced-labour laws are “unfair” and impede U.S. commerce.
- Same bracket as rivals: The 12.5% rate places India alongside major export competitors — Bangladesh, China, Malaysia, Thailand and Vietnam.
2. Multidimensional Impact on Exports
| Dimension | Likely Effect |
|---|---|
| Labour-intensive sectors hit | Textiles & garments, carpets, leather products, brassware/handicrafts — the largest employment generators |
| Competitiveness | Per EY India, an extra 12.5% over existing duty makes Indian goods costlier in the US, eroding global competitiveness |
3. India’s Strategy & Response
Procedural Timeline
- Legal & diplomatic route: India may request participation in the public hearing by 22 June and submit written comments by 6 July 2026; public hearing on 7 July.
- Parallel negotiations: Both sides continue talks on the Bilateral Trade Agreement (BTA) and the Framework/Interim Agreement announced in February 2026; a US negotiating team visits India in early June 2026.
4. Non-Tariff Barriers & ‘Weaponization’ of Human Rights
Developing nations have long argued that Western economies use human rights, environmental and labour standards as non-tariff barriers to shield domestic industry. India’s statutory safeguards — the Bonded Labour System (Abolition) Act, child-labour prohibition, and ratified ILO conventions — make the objectivity of the US allegations questionable.
India Implications
- Evidence-driven advocacy: Present irrefutable proof of labour reforms, enforcement and supply-chain transparency before the 6 July deadline.
- Leverage the interim deal: Use the ongoing US negotiations as a bargaining chip to shelve the tariff or secure a waiver.
- Strengthen domestic standards: Make monitoring of labour standards in textile/manufacturing units more transparent and robust to pre-empt future shocks.
Conclusion: The proposal reflects the tension between a strategic Indo-Pacific partnership and clashing economic interests. India needs a mix of aggressive legal lobbying and shrewd diplomacy, making clear that trade pacts cannot be held hostage to unilateral, subjective human-rights assessments. Its commitment to SDG-8 (Decent Work and Economic Growth) cannot be sacrificed to US protectionism.
Prelims Practice
Q. Consider the following statements:
- The Bonded Labour System (Abolition) Act, 1976 was enacted to abolish bonded labour in India.
- India has accepted several ILO standards for the protection of workers.
- Bonded labour is limited to the agricultural sector only.
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
Click to reveal answer
Answer: (a) 1 and 2 only — Bonded labour is not confined to agriculture; it spans brick kilns, mining, domestic work and more.
Mains Practice
India-US relations carry strategic partnership and trade differences in parallel. Discuss in the context of the recent tariff dispute. (150 words)
Economy Page 08 • GS III • Indian Economy
Base and framework: Industrial fundamentals remain resilient, but not broad-based
The latest Index of Industrial Production (IIP) data for April 2026, released by the Ministry of Statistics and Programme Implementation (MoSPI), is significant on two counts: it is the first release under the new Base Series 2022-23, and it comes amid global oil and gas supply disruptions following the US-Israel war on Iran. Industrial output grew 4.9% year-on-year — resilient, but the recovery is not broad-based.
1. Resilient but Fragmented Growth
Key Points
- Capital goods surge (+16%): Reflects positive returns from government infrastructure capex.
- Subdued consumption: Consumer durables grew just 4.3% and non-durables (FMCG) only 2.8% — a sign that higher fuel/energy costs are squeezing middle- and lower-income household budgets.
2. Major Overhaul of the IIP
| Change | Old → New |
|---|---|
| New sector added: Water supply, sewerage & waste management | — → 2.02% weight |
| ‘Electricity’ expanded to ‘Electricity & Gas Supply’ | 7.99% → 10.87% |
| Manufacturing (still dominant) | 77.63% → 76.06% |
| Mining & quarrying | 14.37% → 11.05% |
These shifts suggest India is emerging as a component-manufacturing hub linked to value-added infrastructure and global supply chains, rather than primary extraction.
3. Move to a ‘Chain-linked Framework’
- The government signalled a future chain-linked framework with periodic, more frequent updates to sectoral weights.
- Currently base-year revisions take a decade, leaving data outdated; chain-linking lets official data track structural change in near real time.
India Implications
- Revive consumer demand: Move beyond public-capex reliance to boost purchasing power and private consumption for truly broad-based growth.
- Manage energy costs: Use Strategic Petroleum Reserves wisely and diversify energy sources amid the US-Israel-Iran conflict.
- Statistical reform: Implement the chain-linked framework early to strengthen the global credibility of Indian data.
Conclusion: The 2022-23 base year and framework changes commendably reconcile modern realities (waste management, gas grids) with measurement. A 4.9% growth despite the global energy crisis shows strong fundamentals — but inclusive growth requires the manufacturing shine to reach the consumer market and employment-oriented sectors, not just heavy industry and government spending.
Prelims Practice
Q. Consider the following statements regarding the Index of Industrial Production (IIP):
- It measures the short-term performance of industrial activities in the country.
- It is released by the Ministry of Statistics and Programme Implementation (MoSPI).
- The IIP covers only the manufacturing sector.
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
Click to reveal answer
Answer: (a) 1 and 2 only — The IIP covers Mining, Manufacturing, Electricity & Gas, and now Water supply/waste management, not manufacturing alone.
Mains Practice
The IIP base-year series has been shifted to 2022-23. Analyse the importance of this change and its role in reflecting the changing structure of the Indian economy. (150 words)
Polity / Editorial Page 08 • GS II • Indian Polity
Preserving the record: The right to be forgotten must be set against public interest
On 29 May 2026, the Delhi High Court passed a significant order on the Right to Be Forgotten (RTBF), exposing a clash between two constitutional principles: open justice (public scrutiny and preservation of historical records) and the right to informational privacy recognised under the Puttaswamy judgment (2017). Court digitisation has made old or acquitted cases permanently discoverable online, affecting personal lives.
1. Stand & Reasoning of the Delhi HC
Justice Sachin Dutta’s reasoning (favouring privacy)
- Search-engine limits: Merely ‘updating’ the official record is insufficient, as engines show context-free snippets that tarnish reputations.
- No name-based search right: Open justice does not grant the public unlimited freedom to search an accused’s case by name.
- Data dissemination: Once online, judgments are copied by private sites; updating the official version does not update them.
2. The Editorial’s Counter: the real problem is ‘incompleteness’
- Truthfulness & completeness: If a person is acquitted, the issue isn’t that the case is findable — it’s that people see the initial accusation, not the final acquittal.
- Reliability of public records: Court records are official acts of the State; tampering or concealment endangers historical credibility (echoed in the Indian Kanoon matter, 2024).
3. Global vs Indian Context
| Context | Approach |
|---|---|
| European Union (origin of RTBF) | Enforced by balancing freedom of expression and public interest |
| India | Must protect individual privacy without harming the open-justice principle |
India Implications
- Complete, updated records: Keep court records fully public, but prominently flag acquittals/appeals so the outcome is visible.
- Conditions on databases: Direct court registries (e.g., Indian Kanoon, SCC Online) and search engines to refresh data regularly.
- Contextual results: Engines should display the full legal context — from initial charge to final verdict.
Conclusion: RTBF versus open justice is a complex digital-age constitutional challenge. The HC’s tilt toward privacy is commendable, but obfuscating the judicial record strikes at democratic transparency. The solution lies not in deleting records but in making them accurate, complete and contextual — balancing judicial transparency with citizens’ fundamental rights under Article 21.
Prelims Practice
Q. The ‘Right to Be Forgotten’ (RTBF) is mainly related to which of the following fundamental rights?
- (a) Article 14 – Right to Equality
- (b) Article 19(1)(a) – Freedom of Expression
- (c) Article 21 – Right to Life and Personal Liberty
- (d) Article 32 – Right to Constitutional Remedies
Click to reveal answer
Answer: (c) Article 21 — RTBF flows from the right to informational privacy, read into the right to life and personal liberty (Puttaswamy, 2017).
Mains Practice
“In the digital age, striking a balance between the right to privacy and judicial transparency has become a major challenge of democratic governance.” Discuss. (150 words)
Polity Page 09 • GS II • Indian Polity
Why judicial holidays are necessary
The debate over judicial holidays has resurfaced amid crores of pending cases. Critics call long vacations unfair; senior advocate Kapil Sibal counters that ‘leave’ in the judiciary does not mean ‘leave from work’. The article highlights the unseen part of judicial functioning that demands intense intellectual and personal commitment.
1. The ‘Unseen Phase’ of Judicial Work
- Beyond the courtroom: The public sees only the visible work — sitting, hearing, passing orders. The real work begins after court hours.
- Overnight judgment-writing: Judges write judgments till midnight, demanding granular fact analysis, application of legal principles and precedent — where one wrong word can affect life, liberty, business or reputation.
2. Global & Indian Context
| Reference | Illustration of workload |
|---|---|
| Justice Ruth Bader Ginsburg (US SC) | Worked in chambers writing judgments till 2–3 a.m. |
| Justice D.Y. Chandrachud (50th CJI, retired Nov 2024) | Authored 600+ judgments; part of 1,200+ benches in an 8-year tenure |
3. Holidays as ‘Working Windows’
- Uninterrupted work: Vacations are not rest but “working windows” to clear pending judgments and study constitutionally important cases.
- Family/personal strain: Even on holidays, judges work with files, laptops and video calls with law clerks.
4. The Unseen Financial & Moral Cost
- Lower income than the Bar: A senior advocate can earn in one hearing what a judge earns in months of salary; many forgo lucrative practice to serve.
- Cost of conscience (ADM Jabalpur): Justice H.R. Khanna lost the CJI post over his dissent — today regarded as the most courageous judgment in Indian judicial history.
India Implications
- Staggered vacations: Rotate leave so courts stay open year-round while judges still get breaks.
- Technology & AI: Use agentic AI/software to manage files and legal research, cutting clerical load.
- Modernise infrastructure: Raise judge strength (esp. HCs and lower courts) to lower per-judge workload.
Conclusion: The debate must move beyond ‘number of working days’. The purpose of justice is not just speedy disposal but quality, thoughtful justice; an overstressed judge compromises that quality, which is more fatal to democracy. Before criticising the judiciary, society must understand the system that demands the highest intellectual and personal sacrifice.
Prelims Practice
Q. Which of the following statements about the Indian judiciary are correct?
- There is a provision for judicial leave/vacation in the High Courts and the Supreme Court.
- Vacation benches can be formed during vacations.
- Judicial leave is clearly mentioned in the Constitution.
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 1 and 3 only
- (d) 1, 2 and 3
Click to reveal answer
Answer: (a) 1 and 2 only — Vacations are governed by court rules, not expressly mentioned in the Constitution.
Mains Practice
The debate over judicial holidays is linked to broader questions of the efficiency of the Indian judiciary and access to justice. Comment. (150 words)
Economy Page 09 • GS III • Indian Economy
How India scaled its startup industry from 2016 to 2025
A decade after PM Modi’s “Startup India” call (15 August 2015), an IIT Madras Centre for Research on Startups report finds India among the top four startup nations, driven by supportive policy, spreading innovation and a positive investment climate — a major structural shift in the economy.
1. Formalisation via DPIIT Recognition
- What is a startup: Per DPIIT, startups differ from traditional business via emphasis on innovation, technology use and new market opportunities.
- Formalisation surge: DPIIT-recognised startups rose from just 3% (288) of functioning startups in 2016 to 77% by 2025 — voluntary, yet a sign of eagerness to join the official ecosystem.
2. Democratisation: Tier-1 to Tier-3
| Year | Tier-1 cities’ share | Tier-3 cities’ share |
|---|---|---|
| 2016 | 65% | 15% |
| 2025 | 18% | 71% |
The equation has reversed — entrepreneurship is no longer hostage to big metros and has reached semi-urban and rural India.
3. Demographic Dividend & 4. Women Entrepreneurship
- Young founders: ~66% of male and ~59% of female founders are under 40 — job creators over job seekers.
- Women’s growth rate: Female founders’ CAGR of 20% outpaces men’s 14%, despite women starting a little later.
5. Investment Landscape & Policy Enablers
| Metric | 2016 | 2025 |
|---|---|---|
| Total startups | 10,000 | 2,50,000 (25×) |
| Funded ventures | 2,000 | 75,000 (38×) |
Key Policy Enablers
- Simplified regulation: Tax holidays, self-certification, eased patent registration cut compliance burden.
- Digital Public Infrastructure: India Stack, UPI and ONDC gave Tier-3 startups pan-India market access.
- Fund of Funds (FFS): Government seed funding via SIDBI reduced investor risk.
India Implications
- Strengthen Tier-3 infrastructure: High-speed internet, incubation centres and logistics for the 71% now coming from smaller towns.
- Back early-stage women founders: Mentorship and collateral-free loans for the under-30 cohort.
- Pivot to deep-tech: Move beyond software/e-commerce toward deep-tech, space, defence, manufacturing and green technology.
Conclusion: 2016–2025 was India’s “Techade” — the Startup India scheme reshaped the country’s economic geography, not just minting a few unicorns. A 71% Tier-3 share and 20% women-founder CAGR prove the growth is inclusive and democratic. This ecosystem will be a key engine for a $5-trillion economy and Viksit Bharat.
Mains Practice
“The Startup India initiative has changed India’s economic geography over the last decade.” Examine, with reference to the geographic and demographic democratisation of entrepreneurship. (150 words)
Internal Security Page 08 • GS III • Editorial Analysis
After Maoism, the next battle is for Adivasi trust
On 31 March 2026, India was officially declared Maoist-free — a historic security victory. On 19 May 2026, the Home Minister released a roadmap to 2031 in Bastar (Chhattisgarh). The author’s core argument: military victory was only the first stage; the harder challenge is winning the enduring trust of Bastar’s tribals — achievable not through external development alone, but by the actual transfer of jal, jungle, zameen (water, forest, land) and constitutional rights.
1. From ‘Negative Peace’ to ‘Positive Peace’
- The difference: The end of Maoism is the mere absence of violence; positive peace means establishing justice and trust.
- New role of forces: Government plans to deliver welfare schemes to tribal doorsteps via security-run centres.
2. Structural Imbalance in Grassroots Governance
| Constitutional Channel | Reality on the ground |
|---|---|
| Elected: Panchayati Raj / Gram Sabha | Meant to be the basic unit of self-governance |
| Administrative: Tehsildar, District Collector | Bureaucratic channel has consistently dominated the elected one |
The Home Minister spoke of three-tier governance but did not address removing this basic administrative imbalance.
3. ‘Water, Forest, Land’ vs Physical Development
- Roads, schools and mobile towers ease life, but tribal identity and concerns centre on water, forest and land.
- Ignoring traditional claims over these resources means long-term trust cannot rest on physical infrastructure alone.
4. Lacklustre Implementation of the PESA Act, 1996
- State arbitrariness: With implementation left to States, Fifth Schedule States interpreted PESA conveniently, undermining its purpose.
- ‘Consent’ vs ‘Consultation’: Chhattisgarh’s 2022 attempt to replace Gram Sabha ‘consent’ with mere ‘consultation’ effectively diluted its veto power.
- Forged proposals: Allegations of fraud/forgery in Gram Sabha consents for corporate interests.
India Implications
- Empower the Gram Sabha: Treat it not as a formal body but as a decisive, legally empowered institution for community resources, dispute settlement and cultural identity.
- Redefine ‘mainstream’: Give tribals autonomy to decide which mainstream they wish to join, rather than imposing external development models.
- Honour constitutional guarantees: Sincere implementation of the Forest Rights Act, 2006 and PESA to clear doubts in tribal minds.
Conclusion: The end of Maoism is a new chapter for Bastar — a beginning, not a destination. Extremism has no fixed expiry date; if injustice and structural deficiencies persist, discontent may resurface. The path to 2031 depends on whether the State treats tribals merely as ‘beneficiaries’ or as ‘true partners’ under the Constitution. Building trust will be the real culmination of the fight against Maoism.
Mains Practice
“Military suppression of Maoist violence is necessary, but lasting solutions are possible only through inclusive governance and development.” Discuss. (250 words)
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