India is witnessing a significant demographic transition, as revealed in the latest Sample Registration Survey (SRS) 2024 bulletin released by the Registrar General of India. Over the past decade, the country has recorded a consistent decline in both Crude Birth Rate (CBR) and Infant Mortality Rate (IMR). This reflects substantial improvements in healthcare access, maternal and child nutrition, sanitation, female education, and family planning awareness. The data indicates India’s gradual shift from a high fertility-high mortality regime towards a low fertility-low mortality stage.

• Crude Birth Rate (CBR): Declined from 21 births per 1,000 population in 2014 to 18.3 in 2024.
• Crude Death Rate (CDR): Marginal decline from 6.7 to 6.4 per 1,000 population.
• Infant Mortality Rate (IMR): Sharp fall from 39 deaths per 1,000 live births in 2014 to 24 in 2024.

Other notable trends include declining Total Fertility Rate (TFR), rising institutional deliveries, improved immunisation coverage, and better sanitation outcomes under Swachh Bharat Mission.

The decline in birth rate is driven by deep socio-economic transformations:

1. Rising Female Literacy and Education Educated women tend to marry later, have better awareness of reproductive health, and prefer smaller families. Female literacy has emerged as one of the strongest correlates of fertility decline.
2. Urbanisation and Changing Aspirations Rapid urbanisation has increased the cost of living, education, and housing, leading to preference for nuclear families and quality over quantity of children.
3. Improved Access to Family Planning Services Widespread availability of contraceptives, birth spacing methods, and reproductive health counselling through National Health Mission.
4. Economic Factors Rising aspirations for better education and living standards for children, along with increasing participation of women in the workforce.
5. Social and Cultural Shifts Delayed marriages, greater gender equality, and changing societal norms regarding family size.

The reduction in IMR from 39 to 24 is a major public health achievement. It demonstrates success in neonatal and postnatal care.

Important Contributing Factors:

• Higher rate of institutional deliveries under Janani Suraksha Yojana (JSY).
• Expanded immunisation coverage through Mission Indradhanush.
• Improved maternal nutrition via POSHAN Abhiyaan.
• Better access to clean drinking water and sanitation.
• Strengthened network of ASHA workers and rural healthcare infrastructure.

• National Health Mission (NHM)
• POSHAN Abhiyaan (National Nutrition Mission)
• Janani Suraksha Yojana (JSY)
• Mission Indradhanush
• Ayushman Bharat – PMJAY
• Integrated Child Development Services (ICDS)
• Swachh Bharat Mission

Despite overall progress, significant gaps persist:

Urban Areas: Faster decline in IMR and fertility due to better infrastructure, higher literacy, and access to quality healthcare.

Rural Areas: Higher IMR and fertility rates due to shortage of doctors, poor connectivity, anaemia among mothers, and limited emergency services.

State-wise Variation: Southern states like Kerala (IMR ~8), Tamil Nadu, and Andhra Pradesh have achieved low fertility and low mortality. Northern states like Uttar Pradesh, Bihar, and Rajasthan still show relatively higher indicators.

Kerala Model: With an IMR of 8, Kerala stands as a shining example of how high female literacy, robust public health system, and social development can drive superior demographic outcomes.

• Ageing Population: Southern states may soon face rising old-age dependency ratios.
• Regional Imbalances: Skewed population growth between North and South may affect political representation and resource allocation.
• Future Workforce Concerns: Sustained low birth rates may lead to shrinking working-age population after 2040s.
• Pressure on Urban Resources: Increased migration and urbanisation strain housing, employment, and infrastructure.

• Bridge rural-urban and inter-state disparities in healthcare delivery.
• Increase public health expenditure to 2.5% of GDP.
• Focus on quality of human capital through education, skill development, and nutrition.
• Prepare for demographic dividend utilisation and future ageing challenges.
• Promote balanced regional development.

India’s demographic transition, marked by falling birth rates and infant mortality, signals a positive shift towards improved human development. However, the journey remains incomplete due to persistent inequalities. The real test lies in converting these gains into inclusive and sustainable development by investing in health, education, and women’s empowerment.

Prelims

• Key Terms: Sample Registration System (SRS), Crude Birth Rate, Infant Mortality Rate, Total Fertility Rate, Demographic Dividend, Demographic Transition.

GS-1 (Society)

• Population and associated issues, demographic dividend.

GS-2 (Governance & Social Justice)

• Government policies and interventions for health, education, and vulnerable sections.

GS-3 (Economy)

• Inclusive growth, human capital formation, and economic implications of demographic changes.

Essay / Interview

• “Demographic Dividend is a Window of Opportunity that must not be missed.”
• “Health and Education are the twin pillars of India’s Demographic Transition.”
• “Falling Fertility Rates: Opportunities and Challenges for India.”

1. With reference to India’s demographic transition, consider the following statements:
   1. According to SRS 2024, India’s Crude Birth Rate has declined to 18.3 per 1,000 population.
   2. Infant Mortality Rate is defined as the number of infant deaths per 1,000 live births.
   3. Kerala has the lowest Infant Mortality Rate among all Indian states.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements:

1. A decline in Infant Mortality Rate is a strong indicator of improvement in maternal and child healthcare.
2. Rising female literacy is one of the most important factors behind declining fertility rates in India.
3. Southern states of India have generally achieved replacement level fertility earlier than northern states.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (d)

3. How many of the following are major factors behind the declining birth rate in India?

1. Rising female education and workforce participation
2. Urbanisation and increasing cost of living
3. Successful implementation of family planning programmes
4. Improvement in infant and child survival rates

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (d)

4. Which of the following is not a correct statement regarding India’s demographic transition?

(a) Declining birth rate may lead to an ageing population in the long term
(b) Northern states have higher fertility rates compared to southern states
(c) Infant Mortality Rate in India has increased between 2014 and 2024
(d) Kerala is a model state in achieving low IMR and low fertility

Answer: (c)

1. “India is undergoing a significant demographic transition.” Discuss the key drivers and challenges of this transition and suggest measures to harness the demographic dividend effectively. (15 Marks)

2. Examine the factors responsible for the decline in Infant Mortality Rate in India. Also, analyse why rural-urban and regional disparities continue to persist despite various government schemes. (10 Marks)

Recently, the Indian Navy launched its next-generation Offshore Patrol Vessel (OPV) ‘Sanghmitra’ at the Garden Reach Shipbuilders & Engineers (GRSE) shipyard in Kolkata. This launch is a significant milestone in India’s push towards self-reliance in warship construction under the Atmanirbhar Bharat initiative. ‘Sanghmitra’ is the first of the 11 Next Generation Offshore Patrol Vessels (NGOPVs) being constructed indigenously.

• Type: Next Generation Offshore Patrol Vessel (NGOPV)
• Built by: Garden Reach Shipbuilders & Engineers (GRSE), Kolkata
• Project: Part of an ambitious Indian Navy programme to construct 11 NGOPVs at two major shipyards (GRSE and another private shipyard)
• Naming: Named after ‘Sanghamitra’ (also spelled Sanghmitra), the daughter of Emperor Ashoka of the Mauryan Empire, symbolising India’s ancient maritime and cultural heritage.
• Crest Design: Features the constellation of Ursa Major (Saptarishi) and a red-and-white coloured lighthouse, representing guidance, vigilance, and maritime tradition.

This vessel is designed for extended deployments in India’s maritime zones, including the Indian Ocean Region (IOR).

Key Features

• Dimensions: Length — 113 metres, Width — 14.6 metres
• Displacement: Approximately 3,000 tonnes
• Speed: Maximum speed of 23 knots; cruising speed of 14 knots
• Endurance: 8,500 nautical miles (capable of operating for several weeks without refuelling)
• Propulsion: Advanced diesel engines with high efficiency and manoeuvrability
• Indigenisation Level: High degree of indigenous content, in line with the Navy’s indigenous warship building policy

The vessel is equipped with state-of-the-art sensors, communication systems, and weapons for multi-role operations:

• Maritime surveillance and reconnaissance in India’s Exclusive Economic Zone (EEZ)
• Defence of offshore assets (oil rigs, EEZ resources)
• Search and Rescue (SAR) operations
• Humanitarian Assistance and Disaster Relief (HADR)
• Anti-piracy and anti-smuggling missions
• Coastal and offshore patrol duties

It can operate helicopters and carry multiple rigid inflatable boats for rapid response.

• Strengthens India’s maritime security architecture in the Indo-Pacific.
• Enhances presence in the Indian Ocean Region amid growing Chinese naval activities.
• Promotes self-reliance in defence manufacturing.
• Supports ‘ SAGAR’ (Security and Growth for All in the Region) vision.
• Reflects India’s growing shipbuilding capability and export potential in the defence sector.

Prelims

• Key Terms: NGOPV, GRSE, Atmanirbhar Bharat, SAGAR Vision, Maritime Security, Ursa Major (Saptarishi).

GS-2 (International Relations)

• India’s maritime diplomacy, Indo-Pacific strategy, and neighbourhood-first policy.

GS-3 (Internal Security & Defence)

• Defence indigenisation, modernisation of Indian Navy, coastal security, and blue economy.

Essay / Interview

• “Atmanirbhar Bharat in Defence: From Import Dependence to Indigenous Warship Building.”
• “Maritime Security is Integral to India’s Rise as a Global Power.”
• “Ancient Indian Heritage and Modern Naval Capabilities: Symbolism of INS Sanghmitra.”

1. With reference to the ‘Sanghmitra’ Patrol Vessel, consider the following statements:

1. It is an indigenously built Next Generation Offshore Patrol Vessel (NGOPV).
2. It was launched at the Mazagon Dock Shipbuilders Limited in Mumbai.
3. It is named after Sanghamitra, daughter of Emperor Ashoka.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (b) 1 and 3 only

2. Consider the following statements regarding the Sanghmitra Patrol Vessel:

1. It has an endurance of 8,500 nautical miles at a cruising speed of 14 knots.
2. It is primarily designed for anti-submarine warfare operations.
3. It forms part of a project to build 11 Next Generation Offshore Patrol Vessels.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (b) 1 and 3 only

3. How many of the following are key capabilities of the Sanghmitra Patrol Vessel?

1. Maritime surveillance and reconnaissance
2. Humanitarian Assistance and Disaster Relief (HADR)
3. Anti-piracy operations
4. Protection of offshore assets

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (d)

4. Which of the following is not correct about the Sanghmitra Patrol Vessel?

(a) It was built at GRSE, Kolkata
(b) Its crest features the Ursa Major constellation
(c) It is India’s first indigenously designed aircraft carrier
(d) It is capable of achieving a maximum speed of 23 knots

Answer: (c)

1. “Indigenous warship building is a cornerstone of India’s maritime security and Atmanirbhar Bharat vision.” In the light of the launch of INS Sanghmitra, discuss the progress and challenges of defence indigenisation in India. (15 Marks)

2. Analyse the strategic importance of Next Generation Offshore Patrol Vessels for India’s maritime interests in the Indian Ocean Region. How do they contribute to India’s SAGAR vision? (10 Marks)

A tragic incident occurred on Staten Island in New York City where a civilian lost his life and around 36 people were injured following a major fire and two powerful explosions at a shipyard facility. The blast caused significant damage to the shipyard infrastructure and raised concerns over industrial safety and emergency response mechanisms in densely populated urban areas of the United States.

• Location: Staten Island is one of the five boroughs of New York City, United States. It is located in New York Harbor, south of Manhattan, between New Jersey and Brooklyn.
• Geographical Features: It is roughly triangular in shape with approximately 56 km of waterfront and covers an area of nearly 155 sq. km.
• Connectivity:
  • Connected to Manhattan via the iconic Staten Island Ferry (which carries both passengers and vehicles).
  • Linked to New Jersey by several bridges.
  • Connected to Brooklyn by the Verrazano-Narrows Bridge (one of the longest suspension bridges in the world).
• Historical Background: Originally inhabited by the Native American Lenape people, it was later colonised by the Dutch and English in the 17th century. The historic Richmond Town on the island features over 30 restored buildings dating back to the 17th century, including homes, farms, and schools.
• Significance: Often called the “Borough of Parks” due to its large green cover, forests, and parks, which make up a significant portion of its land. It is known for its relatively suburban character compared to other bustling boroughs of New York City.

• A major fire broke out at a shipyard facility on Staten Island.
• Two powerful explosions occurred during the firefighting operations, leading to casualties and injuries.
• Emergency services, including fire department and medical teams, responded swiftly, but the incident highlighted vulnerabilities in industrial safety protocols.
• Investigations are underway to determine the exact cause — whether it was due to hazardous material storage, mechanical failure, or operational negligence.

• It serves as a key maritime and industrial hub in the New York metropolitan area.
• The island plays an important role in logistics, ship repair, and port-related activities.
• Its location makes it critical for regional maritime trade and emergency response planning in the densely populated New York–New Jersey region.

Prelims

• Key Terms: Staten Island, New York City Boroughs, Verrazano-Narrows Bridge, Lenape People, Industrial Safety.

GS-1 (World History & Geography)

• Urban geography of major global cities and historical settlements.

GS-2 (International Relations)

• Urban disasters in developed countries and lessons for India’s industrial safety.

GS-3 (Disaster Management & Internal Security)

• Industrial accidents, fire safety regulations, disaster response mechanisms, and urban infrastructure vulnerabilities.

Essay / Interview

• “Rapid Urbanisation and Industrial Growth often come at the cost of Human Lives.”
• “Lessons from Global Urban Disasters for India’s Smart Cities Mission.”
• “Balancing Economic Development with Public Safety in Metropolitan Regions.”

1. With reference to Staten Island, consider the following statements:

1. It is one of the five boroughs of New York City.
2. It is connected to Manhattan by the Staten Island Ferry.
3. It was originally inhabited by the Native American Lenape people.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements regarding the recent Staten Island shipyard incident:

1. A civilian died and around 36 people were injured due to fire and explosions.
2. The incident occurred at a shipyard facility in New York City.
3. Staten Island is known as the “Borough of Parks” due to its extensive green cover.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (d)

3. How many of the following are correct about Staten Island?

1. It lies between New Jersey and Brooklyn.
2. It has an area of approximately 155 sq. km.
3. It is connected to Brooklyn by the Verrazzano-Narrows Bridge.
4. It has no historical significance.

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (c)

4. Which of the following is not correct regarding Staten Island?

(a) It is one of the boroughs of New York City
(b) It was colonised by the Dutch and English
(c) It is the smallest borough of New York City by area
(d) It is famous for its large number of parks and green spaces

Answer: (c)

1. “Urban industrial accidents continue to pose serious challenges to public safety even in developed countries.” Discuss the Staten Island shipyard incident in the context of industrial safety, disaster management, and urban planning. What lessons can India learn from such incidents? (15 Marks)

2. Analyse the geographical and strategic importance of Staten Island in the New York metropolitan region. Also, examine the vulnerabilities associated with industrial activities in densely populated urban coastal areas. (10 Marks)

Tamil Nadu Chief Minister recently visited the Secretariat campus and several iconic heritage structures within the historic Fort St. George complex in Chennai. The visit highlighted the cultural and historical importance of the site and focused on its preservation, restoration, and development as a major heritage landmark of Tamil Nadu.

• Location: Chennai (formerly Madras), Tamil Nadu, along the Coromandel Coast.
• Built by: British East India Company in 1644.
• Significance: It was the first English fortress in India and served as both a trading post and a military stronghold for the British.
• Historical Role: The fortified settlement that developed around the fort became the nucleus of the city of Madras, which later evolved into the modern metropolis of Chennai.

• Architecture: Constructed using brick and stone with thick, high walls designed for defence against attacks. It has a rectangular layout with strong, tall gates at the entrance.
• Important Structures:
  • St. Mary’s Church: The oldest Anglican church in India, built in 1680.
  • Fort Museum: Houses a rich collection of artefacts from the colonial period, including weapons, uniforms, coins, and documents.
• Current Status: Serves as the administrative headquarters of Tamil Nadu. It houses the Tamil Nadu Secretariat, Legislative Assembly, and several important government offices.

• Played a crucial role in the early expansion of British power in South India.
• Witnessed several conflicts between the British, French, and local rulers during the 18th century.
• Symbolises the beginning of British colonial presence on the eastern coast of India.
• Declared as a protected monument and continues to be an important heritage site.

• Represents the fusion of colonial history with modern governance.
• Acts as a living heritage site where history and administration coexist.
• Important tourist attraction and a symbol of Chennai’s colonial legacy.

Prelims

• Key Terms: Fort St. George, British East India Company, Coromandel Coast, St. Mary’s Church, Madras Presidency.

GS-1 (History & Culture)

• Modern Indian History – European commercial and colonial expansion, beginning of British rule in India.

GS-1 (Geography)

• Historical cities and their evolution (Madras to Chennai).

Essay / Interview

• “Colonial Architecture as a Living Heritage in Modern India.”
• “From Trading Post to Administrative Capital: The Evolution of Chennai.”
• “Preservation of Colonial Heritage Sites in Independent India.”

1. With reference to Fort St. George, consider the following statements:

1. It was built by the British East India Company in 1644.
2. It is located in Chennai and serves as the administrative headquarters of Tamil Nadu.
3. St. Mary’s Church inside the fort is the oldest Anglican church in India.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements:

1. Fort St. George was the first English fortress in India.
2. The fortified settlement around it became the nucleus of the city of Madras.
3. It is built entirely of marble and limestone.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a)

3. How many of the following are correct about Fort St. George?

1. It is situated on the Coromandel Coast.
2. It houses the Tamil Nadu Legislative Assembly.
3. It was a major centre during the Anglo-French rivalry in South India.
4. It was built by the Portuguese.

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (c)

4. Which of the following is not correct regarding Fort St. George?

(a) It was constructed in 1644
(b) It is the oldest Anglican church site in India (St. Mary’s Church)
(c) It was built by the French East India Company
(d) It served as the nucleus for the development of Madras city

Answer: (c)

1. “Fort St. George symbolises the beginning of British colonial presence in India.” Discuss its historical significance and examine how colonial-era structures continue to serve as administrative centres in independent India. (15 Marks)

2. Analyse the role of European trading companies in the urban development of coastal India with special reference to Fort St. George and the emergence of Chennai as a major metropolis. (10 Marks)

After nearly a decade of erratic rainfall, prolonged heatwaves, and severe drought that caused critically low water levels, Lake Kariba is now witnessing a significant recovery. Fresh inflows from the upper Zambezi River basin are gradually raising the water level of the reservoir, bringing relief to millions dependent on it for electricity, fisheries, and livelihoods in Zambia and Zimbabwe.

• Location: Situated in central Africa along the border between Zambia and Zimbabwe on the Zambezi River.
• Geographical Position: Located approximately halfway between the source and mouth of the Zambezi River, around 1,300 km upstream from the Indian Ocean.
• Significance: It is the world’s largest artificial lake by volume and the fourth largest by surface area.

• Dimensions: Over 220 km long and up to 40 km wide, covering a total surface area of approximately 5,200 sq. km.
• Construction: Created between 1958 and 1963 after the completion of the Kariba Dam, which flooded the Kariba Gorge.
• Dam Structure: The Kariba Dam is a double-curvature arch dam, 128 metres high and 617 metres long.
• Islands: The lake contains 102 islands, including prominent ones like Chete Island and Spurwing Island. Chete Island is notable for hosting the world’s largest expanse of protected wetlands and the largest single population of African elephants.

• Provides a major source of hydroelectric power to both Zambia and Zimbabwe.
• Supports a thriving commercial fishing industry.
• Plays a vital role in tourism, irrigation, and regional water security.
• Symbolises post-colonial infrastructure development in Africa.

• The lake has faced severe stress due to climate change-induced erratic rainfall, prolonged droughts, and heatwaves.
• Low water levels in previous years threatened power generation and aquatic ecosystems.
• Recent inflows have raised hopes for improved hydroelectric output and ecological restoration.

Prelims

• Key Terms: Lake Kariba, Kariba Dam, Zambezi River, Artificial Lake, Hydroelectric Power, Climate Change Impact on Water Bodies.

GS-1 (Geography)

• Major lakes and rivers of the world, transboundary water resources.

GS-3 (Environment & Ecology)

• Climate change impact on water bodies, environmental conservation, and sustainable development in Africa.

GS-2 (International Relations)

• Transboundary river water management and cooperation between African nations.

Essay / Interview

• “Climate Change is Severely Impacting Transboundary Water Resources.”
• “Large Dams: Engineering Marvels or Ecological Disasters?”
• “Water Security as a Driver of Regional Cooperation in Africa.”

1. With reference to Lake Kariba, consider the following statements:

1. It is the world’s largest artificial lake by volume.
2. It is located on the Zambezi River between Zambia and Zimbabwe.
3. It was formed after the construction of the Kariba Dam in the 1960s.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements:

1. Lake Kariba is the fourth largest artificial lake by surface area.
2. Chete Island in Lake Kariba hosts the largest single population of African elephants.
3. The Kariba Dam is a gravity dam.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a)

3. How many of the following are correct about Lake Kariba?

1. It covers an area of approximately 5,200 sq. km.
2. It provides hydroelectric power to Zambia and Zimbabwe.
3. It was filled between 1958 and 1963.
4. It lies 1,300 km upstream from the Indian Ocean.

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (d)

4. Which of the following is not correct regarding Lake Kariba?

(a) It is an artificial reservoir on the Zambezi River
(b) It is the largest artificial lake by surface area in the world
(c) It supports a significant commercial fishing industry
(d) It contains over 100 islands

Answer: (b)

1. “Large artificial reservoirs like Lake Kariba are both engineering achievements and ecological challenges.” Discuss the significance of Lake Kariba and analyse the impact of climate change on such transboundary water bodies. (15 Marks)

2. Examine the importance of Lake Kariba for the economies of Zambia and Zimbabwe. What lessons can be drawn for transboundary water management and climate resilience in developing countries? (10 Marks)

Recently, India and Ethiopia signed the bilateral accession protocol in Geneva, paving the way for Ethiopia’s formal accession to the World Trade Organization (WTO). This development marks a significant step in strengthening bilateral economic ties and reflects India’s growing engagement with African nations under its broader South-South cooperation strategy.

• Location: Landlocked country located in the Horn of Africa, East Africa.
• Geographical Position: Lies entirely within tropical latitudes.
• Capital: Addis Ababa (also the headquarters of the African Union).
• Bordering Countries: Six countries — Eritrea (North), Djibouti (Northeast), Somalia (East), Kenya (South), South Sudan and Sudan (West).

Ethiopia is one of the oldest independent nations in Africa and is often referred to as the “Cradle of Humanity” due to its rich archaeological and historical significance.

• Topography: The country features highly diverse terrain including the Rift Valley, Western and Eastern Highlands, and Western and Eastern Lowlands. The highlands form the core of the country and are known for their fertile plateaus.
• Climate: Predominantly tropical climate, though significantly modified by altitude. The highlands experience temperate conditions while lowlands are hot and arid.
• Highest Point: Mount Ras Dejen (4,533 metres) located in the Simien Mountains.
• Major Rivers:
  • Blue Nile (originates in Ethiopia and is a major tributary of the Nile River)
  • Omo River
  • Awash River
• Major Lakes: Lake Tana (largest lake in Ethiopia), located in the northwest Ethiopian Highlands and the source of the Blue Nile.
• Natural Resources: Rich in precious metals and minerals including gold, potash, natural gas, copper, and platinum. It also has significant hydropower potential.

• Ethiopia is the second most populous country in Africa.
• It is a founding member of the African Union and plays a key role in regional peace and security.
• The economy is primarily based on agriculture, with coffee being a major export.
• Recent focus on industrialisation, infrastructure development, and joining the WTO to integrate more deeply into global trade.

Prelims

• Key Terms: Horn of Africa, Blue Nile, Lake Tana, African Union, WTO Accession, Rift Valley.

GS-1 (Geography)

• Physical geography of Africa, major rivers and lakes, topographic diversity.

GS-2 (International Relations)

• India-Africa relations, South-South cooperation, multilateral trade institutions (WTO), regional organisations (African Union).

GS-3 (Economy)

• Economic integration of African countries, resource-based economy, and trade agreements.

Essay / Interview

• “Africa’s Strategic Importance in India’s Foreign Policy.”
• “WTO Accession and Economic Reforms in Developing Countries: The Case of Ethiopia.”
• “Water Diplomacy and Transboundary River Conflicts in Africa.”

1. With reference to Ethiopia, consider the following statements:

1. It is a landlocked country in the Horn of Africa.
2. It shares borders with six countries including Eritrea, Djibouti, and Kenya.
3. Lake Tana is the source of the Blue Nile River.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements:

1. Mount Ras Dejen is the highest peak in Ethiopia.
2. Ethiopia is the headquarters of the African Union.
3. The country lies entirely within tropical latitudes.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (d)

3. How many of the following are correct about Ethiopia?

1. It is rich in natural resources such as gold and potash.
2. The Rift Valley passes through the country.
3. It is one of the oldest independent nations in Africa.
4. It has direct access to the sea through the Gulf of Aden.

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (c)

4. Which of the following is not correct regarding Ethiopia?

(a) It is bordered by Somalia to the east
(b) Blue Nile originates in Ethiopia
(c) It is a coastal country with access to the Red Sea
(d) Addis Ababa is its capital city

Answer: (c)

1. “Ethiopia holds immense strategic importance in the Horn of Africa.” Discuss its geographical significance and analyse the opportunities and challenges in deepening India-Ethiopia bilateral relations. (15 Marks)

2. Examine the economic and developmental challenges faced by landlocked countries like Ethiopia. How can accession to the WTO help Ethiopia integrate better into the global economy? (10 Marks)

India successfully conducted a training cum test launch of the short-range ballistic missile Agni-1 from the Integrated Test Range (ITR) in Balasore, Odisha. The test was carried out by the Strategic Forces Command (SFC) of the Indian Army as part of routine training exercises to validate the operational readiness of the missile system. This successful test reaffirms India’s credible minimum deterrence posture.

• Type: Single-stage, solid-fuelled, road-mobile Short-Range Ballistic Missile (SRBM).
• Range: 700 km to 1,200 km (can function as Medium-Range Ballistic Missile (MRBM) with lighter payload).
• Propulsion: Powered by a solid-propellant rocket motor based on ISRO’s SLV-3 technology.
• Payload: Capable of carrying both conventional and nuclear warheads.
• Launch Platform: Can be launched from road-mobile Transporter Erector Launchers (TELs) as well as rail-based platforms, providing high mobility and survivability.
• Deployment: First deployed by the Indian Army’s Strategic Forces Command in 2007.

• High accuracy and quick reaction time due to solid fuel propulsion.
• Can be kept in a ready-to-fire state for longer periods.
• Designed primarily for tactical and strategic deterrence against regional threats.
• Part of the Agni series of missiles developed under the Integrated Guided Missile Development Programme (IGMDP).

India’s Agni series forms the backbone of its land-based nuclear deterrent:

• Agni-1: 700–1,200 km
• Agni-2: 2,000 km
• Agni-3: 3,000 km
• Agni-4: 4,000 km
• Agni-5: 5,000+ km (Intercontinental Ballistic Missile)
• Agni-P (Prime): Advanced, canisterised version with improved mobility and accuracy.

• Strengthens India’s nuclear triad and second-strike capability.
• Enhances deterrence against adversaries in the region.
• Demonstrates India’s indigenous missile technology prowess.
• Supports the policy of Credible Minimum Deterrence and No First Use.

Prelims

• Key Terms: Agni-1, IGMDP, Strategic Forces Command, Ballistic Missile, Credible Minimum Deterrence, Solid Propellant.

GS-2 (International Relations)

• India’s defence diplomacy and nuclear posture.

GS-3 (Internal Security & Science & Technology)

• Missile technology, defence indigenisation, strategic weapons systems.

Essay / Interview

• “Indigenous Defence Technologies are Critical for India’s Strategic Autonomy.”
• “Nuclear Deterrence in a Multipolar World with Special Reference to India.”
• “From IGMDP to Advanced Missile Systems: Evolution of India’s Defence Capabilities.”

1. With reference to the Agni-1 Missile, consider the following statements:

1. It is a single-stage, solid-fuelled short-range ballistic missile.
2. It was first deployed by the Indian Army in 2007.
3. It has a maximum range of up to 1,200 km.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements:

1. Agni-1 missile is part of the Integrated Guided Missile Development Programme (IGMDP).
2. It can be launched from both road-mobile and rail-based platforms.
3. It is India’s longest-range ballistic missile.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a)

3. How many of the following are correct about the Agni series of missiles?

1. Agni-1 is a short-range ballistic missile.
2. Agni-5 is an Intercontinental Ballistic Missile.
3. All Agni missiles use solid propellant.
4. Agni-P is a canisterised version with improved features.

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (d)

4. Which of the following is not correct regarding the Agni-1 Missile?

(a) It has a range of 700–1,200 km
(b) It uses liquid propellant technology
(c) It is nuclear capable
(d) It was developed under IGMDP

Answer: (b)

1. “The Agni series represents the cornerstone of India’s land-based nuclear deterrence.” Discuss the evolution and strategic significance of the Agni missile programme in the context of India’s national security. (15 Marks)

2. Analyse the importance of indigenous development of ballistic missiles for India’s strategic autonomy. How does the successful test of Agni-1 contribute to India’s defence preparedness? (10 Marks)

Myopia has emerged as a major global public health concern. According to recent studies, nearly half of the world’s population is expected to be myopic by 2050. The rising prevalence, especially among children and young adults in urban areas, has raised serious concerns over increased risk of vision impairment and related complications. India is also witnessing a sharp rise in myopia cases due to excessive screen time, reduced outdoor activities, and changing lifestyles.

• Definition: Myopia, commonly known as nearsightedness, is a common vision condition in which close objects appear clear, but distant objects look blurry.
• Medical Cause: In a normal eye, light passes through the cornea and lens and focuses directly on the retina. In myopic eyes, the eyeball is elongated from front to back, causing light rays to focus in front of the retina instead of directly on it.
• Onset: It usually begins in childhood or adolescence and tends to worsen during the growing years. In some cases, it may stabilise in adulthood.

• The eyeball grows too long axially.
• The cornea or lens may have excessive curvature.
• As a result, light entering the eye focuses too far forward, leading to blurred vision for distant objects.
• The longer the eyeball, the higher the degree of myopia.

Experts believe myopia results from a combination of hereditary and environmental factors such as excessive near-work (reading, screens), limited outdoor time, and poor lighting conditions.

• Squinting to see distant objects
• Eyestrain and headaches
• Difficulty seeing far-away objects clearly
• Frequent rubbing of eyes
• In children: Poor academic performance due to inability to see the blackboard

• Corrective Lenses: Spectacles or contact lenses with negative (minus) power are the most common and safe method.
• Refractive Surgery (for adults): LASIK, PRK, SMILE, and Implantable Collamer Lens (ICL).
• Preventive Measures: Increased outdoor time (at least 2 hours daily), following the 20-20-20 rule for screen use, proper lighting, and regular eye check-ups.
• Myopia Control in Children: Special contact lenses (Ortho-K), atropine eye drops, and multifocal lenses.

• Rapid increase in cases among school-going children due to digital device usage.
• High myopia can lead to serious complications like retinal detachment, glaucoma, and macular degeneration later in life.
• WHO has recognised myopia as an emerging public health challenge.

Prelims

• Key Terms: Myopia, Nearsightedness, Refractive Error, Retina, LASIK, Public Health Concern.

GS-2 (Governance & Social Justice)

• Public health issues, non-communicable diseases, and healthcare awareness programmes.

GS-3 (Science & Technology)

• Human physiology, vision-related disorders, and medical technologies.

Essay / Interview

• “Rising Myopia: The Hidden Cost of Digital Revolution and Urbanisation.”
• “Preventive Healthcare is more important than Curative Healthcare.”
• “Impact of Lifestyle Changes on Human Health in 21st Century.”

1. With reference to Myopia, consider the following statements:

1. It is a condition in which distant objects appear blurry while near objects are seen clearly.
2. It occurs when the eyeball is elongated from front to back.
3. It can be corrected using negative (minus) power lenses.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements:

1. Myopia usually begins in childhood or adolescence.
2. Excessive screen time and reduced outdoor activities are major environmental risk factors.
3. Myopia can be completely cured through refractive surgeries in all age groups.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a)

3. How many of the following are potential complications of high myopia?

1. Retinal detachment
2. Glaucoma
3. Macular degeneration
4. Cataract

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (c)

4. Which of the following is not correct about Myopia?

(a) It is also known as nearsightedness
(b) Light focuses in front of the retina in myopic eyes
(c) It can be corrected by positive (plus) power lenses
(d) Outdoor activities help in reducing its progression in children

Answer: (c)

1. “Myopia has transitioned from a mere vision problem to a serious public health challenge.” Discuss the causes behind the rising prevalence of myopia and suggest a multi-pronged strategy to address it in the Indian context. (15 Marks)

2. Examine the impact of modern lifestyle and digital technology on eye health with special reference to myopia. What measures should be taken at school and community levels to prevent its progression among children? (10 Marks)

The Union Government has intensified its efforts under the National Sickle Cell Anaemia Elimination Programme (NSCAEP) to eradicate Sickle Cell Disease by 2047. Recent data highlights that India has a high burden of this genetic disorder, particularly in tribal-dominated regions. Several states have launched large-scale screening and awareness campaigns as part of the mission to eliminate the disease.

• Definition: Sickle Cell Disease (SCD) is an inherited genetic blood disorder in which red blood cells become rigid, sticky, and sickle-shaped (crescent-shaped) instead of round and flexible.
• Cause: It is caused by a mutation in the haemoglobin beta gene (HBB gene). A person inherits the defective gene from both parents (homozygous HbSS).
• Types:
  • Sickle Cell Anaemia (most severe form)
  • Sickle Cell Trait (carrier – usually asymptomatic)

• Normal red blood cells are flexible and can move easily through blood vessels.
• In SCD, abnormal haemoglobin (HbS) causes red blood cells to become sickle-shaped under low oxygen conditions.
• These sickle cells block small blood vessels, leading to severe pain, organ damage, and increased risk of infections.

• Severe episodes of pain (Sickle Cell Crisis)
• Chronic anaemia and fatigue
• Swelling in hands and feet
• Frequent infections
• Delayed growth in children
• Vision problems and organ damage (lungs, kidneys, heart, brain) in severe cases

• India has the second highest number of sickle cell disease patients in the world after Nigeria.
• The disease is highly prevalent among tribal populations in states like Chhattisgarh, Madhya Pradesh, Maharashtra, Odisha, Gujarat, Rajasthan, and Jharkhand.
• It is estimated that around 1 in 86 births in tribal areas may carry the sickle cell trait.

• National Sickle Cell Anaemia Elimination Programme (2023): Aims to eliminate the disease by 2047.
• Universal screening of newborns and tribal populations.
• Free testing, counselling, and treatment under Ayushman Bharat and state health schemes.
• Hydroxyurea therapy and blood transfusion support.
• Awareness campaigns and genetic counselling.

• Low awareness in tribal and rural areas.
• Limited availability of advanced treatment facilities.
• Social stigma and late diagnosis.
• High cost of lifelong management.

Prelims

• Key Terms: Sickle Cell Disease, National Sickle Cell Anaemia Elimination Programme, Haemoglobinopathy, Genetic Disorder, Tribal Health.

GS-2 (Governance & Social Justice)

• Health schemes for vulnerable sections, tribal welfare programmes.

GS-3 (Science & Technology)

• Genetic disorders, biotechnology applications in healthcare.

Essay / Interview

• “Genetic Diseases and Public Health: The Case of Sickle Cell Anaemia in India.”
• “Eliminating Sickle Cell Disease by 2047: Challenges and Roadmap.”
• “Tribal Health is Central to India’s Inclusive Development Agenda.”

1. With reference to Sickle Cell Disease, consider the following statements:

1. It is an inherited genetic blood disorder caused by a mutation in the haemoglobin gene.
2. It is more prevalent among tribal populations in India.
3. The National Sickle Cell Anaemia Elimination Programme aims to eliminate the disease by 2047.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements:

1. In Sickle Cell Disease, red blood cells become sickle-shaped and block blood vessels.
2. Sickle Cell Trait (carrier) usually shows severe symptoms.
3. Hydroxyurea is used in the treatment of Sickle Cell Disease.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (b)

3. How many of the following states are considered high-burden states for Sickle Cell Disease in India?

1. Chhattisgarh
2. Madhya Pradesh
3. Odisha
4. Kerala

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (c)

4. Which of the following is not correct about Sickle Cell Disease?

(a) It is caused by a genetic mutation
(b) It can be cured completely through vaccination
(c) It is more common in tribal communities
(d) Early screening and counselling are important preventive strategies

Answer: (b)

1. “Sickle Cell Disease poses a significant public health challenge in India, particularly among tribal populations.” Discuss the causes, impact, and steps taken by the government to eliminate the disease by 2047. (15 Marks)

2. Examine the socio-economic and health implications of genetic disorders like Sickle Cell Anaemia. Suggest a comprehensive strategy for their prevention and management in India. (10 Marks)

India recently gifted a special type of sandalwood (Chandan) to the Nepal government to be used at the Pashupatinath Temple in Kathmandu. This gesture highlights the deep cultural and religious ties between India and Nepal. The sandalwood will be used for anointing the Shiva Linga and other religious rituals at the temple. The development comes amid continued efforts to strengthen bilateral cultural cooperation.

• Location: Situated on the banks of the sacred Bagmati River in Kathmandu, Nepal.
• Dedicated to: Lord Shiva in his form as Pashupatinath (Lord of All Animals).
• Significance: One of the holiest Hindu temples in the world and a major centre of Shaivism. It is revered by millions of devotees, especially from India and Nepal.
• UNESCO Status: Declared a UNESCO World Heritage Site in 1979 as part of the Kathmandu Valley.

• History: The temple’s origins trace back to the 5th century, with the present structure built in the 17th century by the Malla kings.
• Architecture: Built in the traditional Nepali Pagoda style with a two-tiered golden roof and intricately carved silver doors. The main shrine houses a four-faced (Chaturmukha) Shiva Linga.
• Complex: Spread over a vast area including temples, ashrams, and cremation ghats along the Bagmati River.
• Unique Tradition: The head priest (Mool Bhatta) is traditionally selected from South Indian Shaivite Brahmin families.

• India gifted high-quality sandalwood to Nepal for use in daily rituals and special ceremonies at Pashupatinath Temple.
• This reflects India’s soft power diplomacy and shared cultural heritage.
• Sandalwood holds special religious importance in Shaivite traditions for its fragrance and purity.

• Major pilgrimage site during Maha Shivratri, Teej, and other festivals.
• Symbolises civilizational and religious connect between India and Nepal.
• Represents religious syncretism as it is also respected by Buddhists in the region.

Prelims

• Key Terms: Pashupatinath Temple, Bagmati River, Jyotirlinga (in belief), UNESCO World Heritage Site, India-Nepal Cultural Ties.

GS-1 (History & Culture)

• Cultural heritage, temple architecture, and spread of Indian culture in neighbourhood.

GS-2 (International Relations)

• India-Nepal bilateral relations, cultural diplomacy, and people-to-people ties.

Essay / Interview

• “Shared Religious Heritage as a Pillar of India-Nepal Relations.”
• “Cultural Diplomacy in Neighbourhood First Policy.”
• “Preserving Civilizational Links in an Era of Geopolitical Challenges.”

1. With reference to Pashupatinath Temple, consider the following statements:

1. It is located on the banks of the Bagmati River in Kathmandu, Nepal.
2. It is dedicated to Lord Shiva as Pashupatinath.
3. Recently, India gifted special sandalwood to Nepal for use in the temple.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements:

1. Pashupatinath Temple is a UNESCO World Heritage Site.
2. The head priest of the temple traditionally comes from South Indian Brahmin families.
3. The temple follows the Dravidian style of architecture.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a)

3. How many of the following are correct about Pashupatinath Temple?

1. It was rebuilt in the 17th century by the Malla kings.
2. It lies along the Bagmati River.
3. It is primarily a Vaishnavite temple.
4. It attracts a large number of Indian pilgrims.

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (c)

4. Which of the following is not correct regarding Pashupatinath Temple?

(a) It is a UNESCO World Heritage Site
(b) It is dedicated to Lord Shiva
(c) It is located in Varanasi, India
(d) It has Pagoda-style architecture

Answer: (c)

1. “Pashupatinath Temple is a living symbol of civilizational and cultural bonds between India and Nepal.” Discuss its religious significance and evaluate the role of cultural diplomacy in strengthening bilateral relations. (15 Marks)

2. Examine the importance of shared religious heritage in India-Nepal relations. How can such cultural linkages be leveraged for greater people-to-people cooperation? (10 Marks)

India and Cyprus have elevated their bilateral relationship to a Strategic Partnership during the visit of Cyprus President Nikos Christodoulides to New Delhi. Both countries signed key agreements on defence cooperation, counter-terrorism, and connectivity. This upgrade reflects growing convergence between the two nations on strategic, economic, and security issues in the Indo-Mediterranean region.

• Location: Island nation in the Eastern Mediterranean Sea, south of Turkey.
• Capital: Nicosia.
• Significance: Strategically located at the crossroads of Europe, Asia, and Africa. It is a member of the European Union (EU) and the Commonwealth.
• India-Cyprus Relations: Diplomatic relations established in 1962. Cyprus has consistently supported India on key issues at international forums.

• Elevation to Strategic Partnership: First formal strategic partnership between the two countries.
• Major Agreements Signed:
  • Defence and Security Cooperation (including joint exercises and maritime security).
  • Counter-Terrorism and Intelligence Sharing.
  • Connectivity and Infrastructure (focus on ports, logistics, and digital connectivity).
  • Economic and Investment Cooperation.
  • Cultural and People-to-People Ties.

• Defence: Collaboration in training, capacity building, and possible defence equipment cooperation.
• Counter-Terrorism: Joint efforts against terrorism, radicalisation, and organised crime.
• Connectivity: Exploring opportunities in shipping, ports, and digital infrastructure linking Europe and Asia.
• Economy: Focus on trade, investment, and Cyprus as a gateway for Indian companies into the European Union.
• Multilateralism: Coordination on UN, EU, and other international platforms.

• Cyprus provides India an important foothold in the Mediterranean and EU region.
• Strengthens India’s outreach in the Mediterranean and West Asia.
• Supports India’s broader Indo-Pacific and Indo-Mediterranean strategy.
• Cyprus gains from India’s growing economic and defence capabilities.

Prelims

• Key Terms: Strategic Partnership, Cyprus, Mediterranean Region, India-EU Relations, Counter-Terrorism Cooperation.

GS-2 (International Relations)

• Bilateral relations, Strategic Partnerships, India’s foreign policy towards Europe and Mediterranean, Neighbourhood & Extended Neighbourhood policy.

GS-3 (Economy & Security)

• Defence cooperation, economic diplomacy, connectivity initiatives.

Essay / Interview

• “Strategic Partnerships are the New Building Blocks of India’s Foreign Policy.”
• “India’s Expanding Footprint in the Mediterranean: Opportunities and Challenges.”
• “Counter-Terrorism Cooperation in a Multipolar World.”

1. With reference to India–Cyprus relations, consider the following statements:

1. India and Cyprus have recently elevated their bilateral ties to a Strategic Partnership.
2. Cyprus is an island nation in the Eastern Mediterranean Sea.
3. Cyprus is a member of the European Union.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements:

1. The recent agreements between India and Cyprus include defence cooperation and counter-terrorism.
2. Cyprus lies at the crossroads of Europe, Asia, and Africa.
3. India and Cyprus established diplomatic relations in the 1960s.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (d)

3. How many of the following are correct about the India–Cyprus Strategic Partnership?

1. It includes cooperation in connectivity and infrastructure.
2. Cyprus is a member of the European Union.
3. It is India’s first strategic partnership in the Mediterranean region.
4. The partnership was elevated during the visit of the President of Cyprus to India.

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (d)

4. Which of the following is not correct regarding Cyprus?

(a) It is located in the Eastern Mediterranean
(b) It is a member of the European Union
(c) It shares a land border with Turkey
(d) It is an island nation

Answer: (c)

1. “The elevation of India-Cyprus relations to a Strategic Partnership marks a new chapter in India’s engagement with the Mediterranean region.” Discuss the strategic importance of this partnership in the context of India’s broader foreign policy objectives. (15 Marks)

2. Analyse the significance of defence, counter-terrorism, and connectivity cooperation in India’s strategic partnerships with smaller European nations like Cyprus. (10 Marks)

The Reserve Bank of India (RBI) has approved a record surplus transfer of ₹2.87 lakh crore to the Central Government for the financial year 2025–26. This is one of the highest surpluses ever transferred by the RBI. The decision comes at a critical time when the government is facing challenges due to rising geopolitical tensions in West Asia, volatile global crude oil prices, and pressure on the Indian rupee.

• Meaning: The surplus transferred by the RBI to the government is essentially the profit earned by the central bank from its operations, including interest income from foreign exchange reserves, government securities, and other investments.
• Legal Basis: Governed by Section 47 of the Reserve Bank of India Act, 1934.
• Mechanism: The surplus is decided by the RBI’s Central Board after accounting for contingency funds, asset development funds, and other provisions.
• Record Transfer: The ₹2.87 lakh crore transfer for FY 2025-26 surpasses previous highs and provides significant fiscal space to the government.

• Fiscal Support: Helps the government in meeting its fiscal deficit target, funding welfare schemes, and capital expenditure without increasing borrowing.
• Economic Context: Comes amid global uncertainties — Red Sea crisis, West Asia tensions, rising oil import bill, and rupee depreciation.
• Inflation Management: Allows the government to maintain fiscal prudence while supporting growth.
• Market Impact: Positive signal for bond markets and may help in lowering borrowing costs for the government.

• Higher returns on foreign exchange reserves due to elevated global interest rates.
• Increased income from rupee depreciation (revaluation gains).
• Strong performance in government securities portfolio.
• Efficient liquidity management operations.

• Heavy dependence on RBI surplus may reduce incentives for better tax collection and expenditure discipline.
• Global uncertainties may impact future surpluses.
• Balancing between RBI’s financial stability mandate and government’s fiscal requirements.

Prelims

• Key Terms: RBI Surplus Transfer, Contingency Fund, Section 47 of RBI Act, Fiscal Deficit, Revaluation Gains.

GS-2 (Governance)

• Functioning of RBI, Centre-State financial relations, economic governance.

GS-3 (Economy)

• Monetary-Fiscal coordination, RBI’s role in economic stability, impact of global events on Indian economy, fiscal policy.

Essay / Interview

• “RBI-Government Coordination is Crucial for India’s Economic Resilience.”
• “Surplus Transfer vs Institutional Autonomy: Balancing Act for the RBI.”
• “Global Uncertainties and India’s Fiscal Management.”

1. With reference to the RBI surplus transfer, consider the following statements:

1. The RBI has approved a record surplus transfer of ₹2.87 lakh crore to the Central Government for FY 2025–26.
2. The surplus is transferred under Section 47 of the RBI Act, 1934.
3. It primarily comes from revaluation gains on foreign exchange reserves and interest income.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements:

1. A higher RBI surplus transfer helps the government in reducing its fiscal deficit.
2. It reduces the government’s dependence on market borrowings.
3. Surplus transfer is decided solely by the Finance Ministry.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (a)

3. How many of the following are major sources of RBI’s surplus?

1. Interest on government securities
2. Revaluation gains on foreign currency assets
3. Fees and penalties from regulated entities
4. Profit from printing currency notes

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (d)

4. Which of the following is not correct regarding RBI surplus transfer?

(a) It provides fiscal space to the government
(b) It is a regular annual practice
(c) It is decided by the RBI’s Central Board
(d) It has no impact on monetary policy

Answer: (d)

1. “The record surplus transfer by the RBI to the government highlights the strong monetary-fiscal coordination in India.” Discuss the significance of this transfer in the current global economic scenario and its implications for fiscal management. (15 Marks)

2. Critically examine the pros and cons of large RBI surplus transfers to the Union Government. Should there be a fixed formula for such transfers to maintain the autonomy of the Reserve Bank? (10 Marks)

Governments across the world are witnessing a sharp rise in borrowing costs as interest rates on government bonds have surged to their highest levels since the 2008 Global Financial Crisis. The increase in global bond yields has emerged as a major challenge for both developed and developing economies because it raises debt servicing burdens, weakens fiscal stability, and threatens economic growth recovery. Policymakers and central banks are increasingly concerned that prolonged high interest rates may trigger financial instability, sovereign debt stress, and slower global growth.

Rising global borrowing costs refer to the increasing interest rates governments, businesses, and individuals must pay while borrowing money from financial markets.

Borrowing cost is the interest paid on loans or debt instruments such as government bonds, corporate bonds, and bank loans. When lenders perceive higher inflation, uncertainty, or financial risks, they demand higher interest rates.

Government bonds are debt instruments issued by governments to finance fiscal deficits and expenditure needs. Bond yield refers to the return earned by investors on these bonds.

When:

• Bond prices fall → Bond yields rise
• Bond prices rise → Bond yields fall

The yield on 10-year government bonds is considered a key indicator of economic confidence and borrowing conditions globally.

After the COVID-19 pandemic, most countries adopted ultra-loose monetary policies:

• Very low interest rates
• Massive liquidity infusion
• Large government stimulus packages

These policies initially supported economic recovery. However, excessive liquidity and supply-side disruptions later triggered high inflation across the world. To control inflation, central banks started aggressively increasing policy interest rates, leading to higher borrowing costs globally.

1. Persistent Global Inflation

Inflation in major economies remained stubbornly high due to:

• Supply chain disruptions
• Rising energy prices
• Food inflation
• Labour shortages
• Geopolitical conflicts

To contain inflation, central banks like the US Federal Reserve, European Central Bank, and Bank of England increased policy rates aggressively.

Impact:

• Higher benchmark interest rates pushed up bond yields globally.
• Investors demanded higher returns to compensate for inflation risks.

2. Aggressive Monetary Tightening

Central banks shifted from easy monetary policy to tight monetary policy.

Measures Taken:

• Increase in repo rates/policy rates
• Reduction in liquidity support
• Withdrawal of pandemic-era stimulus

Consequences:

• Cost of borrowing increased worldwide.
• Credit availability tightened.
• Investment activity slowed down.

3. Heavy Government Borrowing

Governments increased spending on:

• Infrastructure
• Defence
• Social welfare schemes
• Green transition policies
• Energy subsidies

This widened fiscal deficits and forced governments to borrow heavily from markets.

Result:

Greater supply of government bonds reduced bond prices and increased yields.

4. Quantitative Tightening (QT)

During the pandemic, central banks purchased government bonds under Quantitative Easing (QE). This kept borrowing costs artificially low.

Now central banks are:

• Selling bonds
• Reducing bond holdings
• Stopping fresh bond purchases

Impact:

• Bond supply in markets increased.
• Yields surged due to reduced demand.

5. Geopolitical Tensions and Global Uncertainty

Major conflicts such as:

• Russia–Ukraine War
• West Asia conflict
• US–China strategic tensions

have disrupted:

• Global trade
• Energy markets
• Commodity supply chains

This created uncertainty in financial markets and increased investor risk perception.

6. Shift in Investor Sentiment

Investors are now demanding:

• Higher risk premiums
• Safer investments
• Better returns on long-term bonds

As uncertainty increases, governments must offer higher yields to attract investors.

When investors expect:

• High inflation
• Fiscal instability
• Slow growth
• Currency depreciation

they sell government bonds.

This leads to:

• Fall in bond prices
• Rise in bond yields
• Increase in borrowing costs

Thus, bond yields become an important indicator of market confidence in an economy.

United States

• US Treasury yields touched multi-year highs.
• Strong labour markets and persistent inflation forced the Federal Reserve to keep rates elevated.
• Rising US yields attracted global capital flows toward dollar assets.

Global Impact:

Higher US yields increase borrowing costs globally because US Treasuries are considered benchmark safe assets.

Europe

Several European economies face:

• High debt burdens
• Sluggish growth
• Rising fiscal stress

Countries with weak fiscal positions are witnessing rising debt servicing costs.

Japan

Japan maintained ultra-loose monetary policy for a long period, but gradual policy normalization is increasing global market volatility.

Emerging economies are particularly vulnerable because:

• Foreign investors may withdraw capital.
• Currency depreciation increases external debt burden.
• Imported inflation rises.

Countries with weak forex reserves face higher financial risks.

A. Impact on Governments

1. Higher Debt Servicing Burden

Governments must allocate larger portions of budgets toward:

• Interest payments
• Debt repayments

This reduces funds available for:

• Education
• Healthcare
• Infrastructure
• Welfare schemes

2. Fiscal Stress and Deficits

Rising borrowing costs widen fiscal deficits because governments spend more on servicing debt.

Risks:

• Sovereign debt crisis
• Fiscal instability
• Credit rating downgrades

3. Reduced Fiscal Space

Governments may be forced to:

• Cut developmental expenditure
• Delay infrastructure projects
• Reduce subsidies

This can weaken economic growth momentum.

B. Impact on Businesses

1. Increased Cost of Capital

Higher interest rates make loans expensive for firms.

Result:

• Lower investment
• Reduced industrial expansion
• Slower job creation

2. Decline in Corporate Profits

Companies face:

• Higher financing costs
• Weak consumer demand
• Reduced profitability

C. Impact on Citizens

1. Higher Loan EMIs

Interest rates on:

• Home loans
• Vehicle loans
• Education loans
• Personal loans

increase significantly.

Impact:

Household financial stress rises.

2. Slower Employment Growth

Reduced business investment may lead to:

• Lower hiring
• Wage pressures
• Economic slowdown

D. Impact on Developing Countries

Developing nations are among the worst affected because they depend heavily on external financing.

Major Challenges:

• Capital outflows
• Currency depreciation
• External debt pressure
• Imported inflation
• Declining investor confidence

Low-income countries face heightened risks of debt distress and balance of payments crises.

India remains relatively resilient compared to many emerging economies due to:

• Strong foreign exchange reserves
• Stable banking system
• Better growth prospects
• Prudent fiscal management

However, India still faces several risks.

1. Pressure on Rupee

Higher US interest rates attract capital toward dollar assets, weakening the Indian rupee.

Consequences:

• Imported inflation rises
• Oil import bill increases

2. Higher Government Borrowing Cost

The Indian government may need to pay higher yields on government securities (G-Secs).

Impact:

• Increased fiscal burden
• Pressure on public finances

3. Impact on Capital Expenditure

Higher debt servicing may reduce government spending on:

• Infrastructure
• Railways
• Energy transition
• Social schemes

4. Pressure on Private Investment

Higher domestic interest rates may discourage:

• Industrial borrowing
• Real estate investment
• MSME expansion

5. External Sector Vulnerability

Volatile capital flows may affect:

• Exchange rate stability
• Balance of payments
• Financial markets

Monetary Measures by RBI

• Inflation targeting
• Maintaining liquidity balance
• Stabilizing financial markets
• Managing rupee volatility

Fiscal Measures

Government aims to:

• Reduce fiscal deficit gradually
• Maintain capital expenditure
• Improve tax collection
• Ensure debt sustainability

Structural Reforms Needed

• Strengthening domestic manufacturing
• Improving export competitiveness
• Expanding bond markets
• Reducing dependence on external financing

Fiscal Deficit

Difference between government expenditure and revenue excluding borrowings.

Public Debt

Total liabilities accumulated by governments over time.

Monetary Tightening

Central bank actions aimed at reducing inflation by increasing interest rates and reducing liquidity.

Debt Sustainability

Ability of a government to manage debt without default or severe fiscal stress.

India’s ability to manage rising borrowing costs will determine:

• Fiscal stability
• Infrastructure growth
• Welfare spending
• Investment climate
• Long-term economic resilience

Prudent macroeconomic management is therefore essential.

1. Fiscal Prudence

Governments must control excessive deficits and prioritize productive expenditure.

2. Inflation Control

Central banks should maintain price stability without severely hurting growth.

3. Strengthening Domestic Bond Markets

Developing deeper domestic financial markets can reduce external vulnerabilities.

4. Diversification of Energy Sources

Reducing dependence on imported energy can lower inflationary pressures.

5. Structural Economic Reforms

Boosting productivity and exports can improve economic resilience.

Rising global borrowing costs represent one of the most serious economic challenges facing the world today. Persistent inflation, aggressive monetary tightening, geopolitical tensions, and high fiscal deficits have created a difficult global financial environment. While developed economies face debt servicing pressures, developing countries remain especially vulnerable to capital outflows and fiscal instability. India has managed the situation relatively better due to strong macroeconomic fundamentals, but sustained high global interest rates can still impact growth, fiscal stability, and investment. Therefore, maintaining fiscal discipline, controlling inflation, and strengthening economic resilience will be crucial for navigating this evolving global financial landscape.

Prelims

• Key Terms: Government Bond Yields, Fiscal Deficit, Monetary Policy Tightening, Global Financial Crisis 2008, Debt Sustainability.

GS-2 (Governance)

• Government budgeting and fiscal policy challenges.

GS-3 (Economy)

• Monetary and Fiscal Policy coordination, impact of global economic trends on India, public debt management.

Essay / Interview

• “High Global Interest Rates: A Test of Economic Resilience for Developing Nations.”
• “Fiscal Prudence is Essential in an Era of Volatile Global Finance.”
• “The Return of Inflation and its Impact on Global Economic Stability.”

1. With reference to rising global borrowing costs, consider the following statements:

1. Government bond yields have reached their highest levels since the 2008 Global Financial Crisis.
2. Persistent inflation and aggressive monetary tightening are major contributing factors.
3. Higher borrowing costs reduce fiscal space for governments.

Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 2 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (d)

2. Consider the following statements:

1. Rising bond yields increase the cost of fresh government borrowing.
2. Emerging economies are completely insulated from global interest rate movements.
3. Quantitative Tightening by central banks contributes to higher borrowing costs.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (b)

3. How many of the following are consequences of rising global borrowing costs?

1. Increased pressure on government budgets
2. Higher EMIs for citizens
3. Reduced private investment
4. Capital outflows from emerging markets

(a) Only one
(b) Only two
(c) Only three
(d) All four

Answer: (d)

4. Which of the following is not a reason for the recent spike in global borrowing costs?

(a) Persistent global inflation
(b) Aggressive rate hikes by central banks
(c) Ultra-loose monetary policy worldwide
(d) Geopolitical uncertainties

Answer: (c)

1. “Rising global interest rates and borrowing costs pose serious challenges to fiscal management across the world.” Discuss the causes of this trend and its implications for India’s economy. (15 Marks)

2. Analyse the impact of high global bond yields on developing economies. What policy measures should the Indian government adopt to manage fiscal stress in this environment? (10 Marks)