12-March-2025-Daily-Current-Affairs

RISING CONSUMER CREDIT: A CAUSE FOR CONCERN?

TOPIC: (GS3) INDIAN ECONOMY: THE HINDU

The Reserve Bank of India (RBI) released the Financial Stability Report (FSR) 2024, highlighting concerns over rising household debt and increasing consumer loans. While borrowing has shifted towards prime borrowers, a growing proportion of loans are being used for consumption rather than asset creation, raising macroeconomic risks.

Rising Household Debt Trends

• Household debt has increased from 36.6% of GDP in June 2021 to 42.9% in June 2024.
• Despite being lower than many emerging economies, the growing debt-to-GDP ratio is a concern.
• Borrowing is shifting towards prime and super-prime borrowers, but consumption loans are rising.

Shift in Borrowing Patterns

• Traditionally, loans are used for asset creation, such as housing or vehicles.
• However, household assets have declined from 110.4% of GDP in June 2021 to 108.3% in March 2024.
• A rise in consumer credit signals that households are increasingly borrowing for day-to-day expenses rather than long-term investments.

Factors Contributing to Debt Growth

• Increased Borrower Base: More people are taking loans, but overall indebtedness per borrower remains stable.
• Fewer Sub-Prime Borrowers: The share of risky borrowers has declined, with two-thirds of debt now held by prime borrowers.
• Post-Pandemic Trends: Borrowing has been a key driver of credit growth since the pandemic.

Concerns Over Rising Consumption Loans

• Decline in Asset Creation: More loans are being used for consumption rather than investment in homes or businesses.

• Super-prime borrowers (higher-income groups): 64% of their loans go towards asset creation.
• Sub-prime borrowers (lower-income groups): Nearly 50% of their loans are for consumption.
• Low-income groups rely more on credit cards and personal loans for daily expenses. Rising delinquencies in these categories indicate financial stress.

Macroeconomic Risks of Rising Consumer Credit

• Debt Stress & Loan Defaults: Nearly half of all borrowers with credit card or personal loans also have housing or vehicle loans.

• Defaults in unsecured loans can lead to all debts being classified as non-performing assets (NPAs).

• Weakening Economic Growth: Higher consumer debt means lower spending power, reducing overall economic growth potential.

• Low-income households, which usually contribute more to consumption, are forced to allocate a larger share of their income to debt repayment.

Concerns Over Financial Innovations

• Easier Credit Access: Financial innovations, such as easy credit availability, have led to more borrowing.
• Risk of Over-Indebtedness: Low-income households may fall into a debt trap due to increased reliance on unsecured loans.

Way Forward

• Strengthening Financial Regulation: Ensure responsible lending to prevent excessive household debt.
• Encouraging Asset-Based Borrowing: Promote credit for housing, education, and business investments rather than consumption.
• Enhancing Financial Literacy: Educate borrowers, especially low-income groups, on managing credit effectively.
• Monitoring Unsecured Loans: Banks and regulators should closely track rising delinquencies in personal and credit card loans.

FINANCIAL LIABILITIES AND FINANCIAL ASSETS Financial Liabilities: Financial liabilities refer to the obligations or debts that an individual, business, or government owes to others. These require future payments, either in the form of money or services. Examples: Loans, credit card debt, bonds issued by companies or governments, unpaid bills, and mortgages. Impact: High financial liabilities can reduce financial stability and increase financial risk. Financial Assets: Financial assets are resources that hold monetary value and can generate income or be converted into cash in the future. These assets provide economic benefits to the owner. Examples: Bank deposits, stocks, bonds, mutual funds, real estate, and cash holdings. Impact: Owning financial assets improves financial security, generates returns, and helps in wealth accumulation.

Conclusion

While India’s borrowing patterns are shifting towards healthier borrowers, the increasing share of consumer credit and unsecured loans poses risks to financial stability.

Practice Question

1. Which of the following reports are released by the Reserve Bank of India (RBI)?

1. Financial Stability Report (FSR)
2. Economic Survey of India
3. Monetary Policy Report (MPR)

Select the correct answer using the codes below:

1. 1 and 3 only
2. 1 and 2 only
3. 2 and 3 only
4. 1, 2, and 3

Answer: A

Explanation:

• Financial Stability Report (FSR) – Assesses risks to financial stability and the banking sector.
• Monetary Policy Report (MPR) – Released twice a year, analyzing inflation trends and monetary policy stance.
• Economic Survey of India – Not released by RBI; it is prepared by the Ministry of Finance.

STEPS TOWARDS SIMPLIFYING COMPLIANCE RULES

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The India Business Corruption Survey 2024 reveals that 66% of businesses have paid bribes, with 54% being coerced for approvals and compliance. To address these issues, the government has introduced Jan Vishwas 2.0 to simplify regulations and decriminalize business laws further.

Compliance Framework:

• A Compliance Framework is a structured system of policies, procedures, and controls designed to ensure that an organization follows legal, ethical, and regulatory requirements.
• It helps prevent corruption, fraud, and misconduct by promoting transparency, accountability, and adherence to laws.

Key Components of a Compliance Framework:

• Regulatory Guidelines – Ensures adherence to laws like the Prevention of Corruption Act, Companies Act, and Whistleblower Protection Act in India.
• Risk Assessment – Identifies areas vulnerable to corruption and establishes preventive measures.
• Monitoring and Auditing – Implements regular inspections, financial tracking, and real-time reporting mechanisms.
• Whistleblower Protection – Encourages employees to report unethical activities without fear of retaliation.

Challenges in Compliance and Corruption

• Widespread Bribery: Many businesses are forced to pay bribes for approvals, permits, and compliance.
• Affected Sectors: Labour laws, GST, income tax, pollution control, property registration, and drug regulations are most impacted.
• Impact on Foreign Investment: High levels of corruption deter foreign direct investment (FDI), making India less attractive to global businesses.
• Slow Progress in Reform: The Jan Vishwas Act, 2023 decriminalized 180 provisions, but over 20,000 provisions with imprisonment clauses remain.

Issues with the Compliance System

• Frequent Rule Changes: Over 9,400 compliance updates in 2023 (an average of 36 per day) make adherence difficult.
• Regulatory Exploitation: Officials misuse compliance provisions to demand bribes, leading to unfair business practices.
• Pending Labour Reforms: Despite replacing 29 colonial-era laws with four labour codes, implementation is still delayed.

Government Measures to Combat Corruption

• Jan Vishwas 2.0: Aims to decriminalize 100 additional provisions and simplify regulatory requirements.
• Simplified Approval Process: The government is working on streamlining compliance procedures to reduce bureaucratic delays.
• Anti-Corruption Laws: Laws like the Prevention of Corruption Act, 1988, and the Lokpal and Lokayuktas Act, 2013, strengthen oversight.
• Whistleblower Protection: The Whistle Blowers Protection Act, 2014, encourages reporting of corruption cases without fear of retaliation.

How to Avoid Corruption in Business Compliance

• Adopt Digital Processes: Using digital transactions and e-filing systems reduces direct contact with officials, minimizing bribery risks.
• Transparent Documentation: Keeping all business records organized and legally compliant prevents exploitation by regulatory authorities.
• Report Corruption: Businesses should report bribery demands through anti-corruption helplines and online portals.

Need for a Digital-First Approach

• Reducing Paperwork: Businesses currently submit multiple notarized documents across 40+ departments, creating inefficiencies.
• Digi Locker for Businesses: A centralized digital repository can simplify approvals and prevent document tampering.
• One Nation, One Business Identity: A unified business identifier can streamline regulatory processes and reduce corruption.

Jan Vishwas 2.0 Jan Vishwas 2.0 is a government initiative aimed at making business and daily activities easier by reducing unnecessary legal hurdles. It focuses on: ·         Reducing Criminal Penalties – Small mistakes in business or daily activities will no longer lead to harsh punishments but will have easier fines instead. ·         Updating Old Laws – Many outdated rules that create confusion or delays are being changed to match current needs. ·         Faster and Fair Governance – By removing unnecessary legal cases, courts can focus on important issues, and businesses can grow without fear of minor legal troubles.

Conclusion

To strengthen India’s business environment, eliminating corruption and simplifying compliance is crucial. The success of Jan Vishwas 2.0 depends on swift implementation and continuous monitoring of reforms.

PROPOSED INCOME TAX BILL, 2025: PRIVACY CONCERNS OVER DIGITAL SEARCH AND SEIZURE

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Income Tax Bill, 2025, has raised privacy concerns as it expands the powers of tax authorities to access and override digital security measures during search and seizure operations.

Key Highlights of the Bill

• The proposed bill grants tax authorities the right to bypass digital access controls, including passwords on mobile devices, emails, social media accounts, and cloud storage.
• It allows officials to use password-breaking software or seek assistance from service providers to access encrypted data.
• This significantly expands the government’s authority over private digital information compared to existing tax laws.

Implications for Digital Privacy

• Broader Search Powers: Unlike the current law, which permits seizure of electronic records, the new bill extends search powers to private digital platforms and encrypted communication.
• Exemptions from Privacy Protections: The Digital Personal Data Protection Act does not apply to tax authorities, creating a legal gap where personal data can be accessed without strict oversight.
• Potential for Misuse: Critics argue that this bill could enable harassment, government surveillance, and violation of fundamental privacy rights.

Legal and Constitutional Concerns

• Conflict with Right to Privacy: The Supreme Court’s 2017 ruling established privacy as a fundamental right. Legal experts warn that the bill lacks proportionality safeguards, making digital searches excessive.
• Lack of Transparency: There are no clear provisions outlining how data will be stored, protected, or used after seizure, raising risks of data misuse.
• No Independent Oversight: The bill does not require judicial approval before accessing private digital data, increasing the risk of unchecked government power.

Reactions from Civil Society

• Legal and tax professionals stress the need for clear guidelines to prevent the abuse of power.
• The Internet Freedom Foundation (IFF) has urged lawmakers to ensure digital searches follow minimal intrusion principles, in line with constitutional protections.
• Privacy advocates warn that the bill could normalize government surveillance, setting a dangerous precedent for future regulations.

ARTICLE 21 AND RIGHT TO PRIVACY Article 21: Protection of Life and Personal Liberty Part of Fundamental Rights: Article 21 of the Indian Constitution guarantees that “No person shall be deprived of his life or personal liberty except according to procedure established by law.” Expansive Interpretation: Over the years, courts have interpreted “life and liberty” broadly to include dignity, privacy, and autonomy. Right to Privacy as a Fundamental Right Recognized by Supreme Court: In the K.S. Puttaswamy v. Union of India (2017) case, the Supreme Court ruled that the right to privacy is an intrinsic part of Article 21. Impact of the Judgment: Strengthened data protection, restricted unreasonable surveillance, and influenced laws on Aadhaar, digital rights, and personal freedoms.

Conclusion

The Income Tax Bill, 2025, marks a major shift in digital governance, raising concerns over privacy violations and misuse of data. Experts and civil rights groups are calling for stronger safeguards to balance enforcement powers with constitutional rights.

Practice Question:

1. Which of the following rights are protected under Article 21 of the Indian Constitution?

1. Right to Life
2. Right to Education
3. Right to Privacy

Select the correct answer using the codes below:

1. 1 and 3 only
2. 1 and 2 only
3. 1, 2, and 3
4. 2 and 3 only

Answer: A

Explanation:

Right to Life – Guaranteed under Article 21, ensuring the protection of life and personal liberty.

Right to Privacy – Recognized as a fundamental right under Article 21 by the Supreme Court (Puttaswamy judgment, 2017).

Right to Education – Not under Article 21 but provided separately under Article 21A, inserted by the 86th Constitutional Amendment Act, 2002.

DELHI RANKED WORLD’S MOST POLLUTED CAPITAL FOR THE SIXTH YEAR

TOPIC: (GS3) ENVIRONMENT: THE HINDU

The World Air Quality Report 2024 by IQAir ranked Delhi as the most polluted capital city globally for the sixth consecutive year.

Findings of the Global Air Quality Report 2024

• Delhi continues to be the most polluted national capital, based on PM2.5 levels.
• Byrnihat (on the Assam-Meghalaya border) was reported as the world’s most polluted city, with PM2.5 concentration at 128.2 µg/m³.
• The study examined air quality data from 40,000 monitoring stations across 138 countries.

Global Pollution Scenario

• Most of the world’s population breathed air exceeding the WHO safety limit of PM2.5 (5 µg/m³) in 2024.
• Only 12 countries and regions, mainly in Latin America, the Caribbean, and Oceania, met the recommended safe air quality levels.
• Top five most polluted countries in 2024:

• Chad – 91.8 µg/m³
• Bangladesh – 78 µg/m³
• Pakistan – 73.7 µg/m³
• Congo –2 µg/m³
• India – 50.6 µg/m³

Air Pollution in India

• India’s average PM2.5 level in 2024 was 50.6 µg/m³, which is 7% lower than in 2023 (54.4 µg/m³).
• Despite the decline, six Indian cities ranked among the top 10 most polluted cities worldwide.
• Delhi’s PM2.5 levels remained high, averaging 91.6 µg/m³, only slightly lower than 92.7 µg/m³ in 2023.

Major Causes of Pollution in India

• Crop stubble burning – accounts for nearly 60% of peak pollution levels.
• Vehicle emissions – major contributor, especially in urban areas.
• Industrial pollutants – from factories and power plants.
• Construction dust – rising due to infrastructure projects.

Seasonal Pollution Trends

• January – Delhi and Himachal Pradesh witnessed severe air quality deterioration.
• November – Extreme pollution in Delhi, Punjab, Haryana, and Chandigarh, mainly due to stubble burning.

Health Consequences of Air Pollution

• Respiratory diseases, such as asthma and lung infections.
• Heart problems, including stroke and heart attacks.
• Cancer risk due to prolonged exposure to fine particulate matter.
• Chronic kidney disease and other long-term health issues.

MAJOR POLLUTANTS CAUSING AIR POLLUTION IN INDIA

Particulate Matter (PM2.5 & PM10)

• PM2.5 (fine particles smaller than 2.5 microns) can penetrate deep into the lungs and cause severe health issues.
• PM10 (particles smaller than 10 microns) leads to respiratory illnesses and cardiovascular diseases.

Nitrogen Oxides (NOx)

• Emitted from vehicles, industries, and power plants.
• Causes respiratory problems and contributes to the formation of ground-level ozone and smog.

Sulphur Dioxide (SO₂)

• Released from coal-fired power plants, refineries, and industrial activities.
• Leads to acid rain, which damages crops, buildings, and aquatic ecosystems.

Carbon Monoxide (CO)

• A toxic gas released from vehicle exhaust, burning of fossil fuels, and incomplete combustion.
• Reduces the oxygen-carrying capacity of blood, leading to breathing difficulties and heart diseases.

Ozone (O₃) (Ground-level Ozone)

• Formed by a reaction between sunlight and pollutants like NOx and VOCs (Volatile Organic Compounds).
• Causes breathing issues, lung inflammation, and worsens asthma.

Volatile Organic Compounds (VOCs)

• Released from industrial emissions, vehicular exhaust, and chemical solvents.
• Contributes to the formation of photochemical smog, affecting air quality.

Ammonia (NH₃)

• Emitted mainly from agricultural activities, such as fertilizer use and livestock waste.
• Reacts with other pollutants to form secondary particulate matter, worsening air pollution.

Key Measures by the Indian Government to Reduce Air Pollution

• National Clean Air Programme (NCAP) (2019): Aims to reduce PM2.5 and PM10 levels by 40% by 2026 in 131 cities. Focuses on city-specific action plans, improving air quality monitoring, and promoting public awareness.
• Graded Response Action Plan (GRAP) (2017): Implemented in Delhi-NCR to take emergency measures based on pollution levels.
• Promotion of Cleaner Fuels and Technologies: BS-VI fuel standards (2020) introduced for low-emission vehicles.
• Push for electric vehicles (EVs) through the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme.

Conclusion

Despite a slight decline in PM2.5 levels, India remains one of the most polluted countries globally. Stronger pollution control measures, including curbing crop burning, vehicle emissions, and industrial pollution, are essential to improve air quality and public health.

Practice Question:

1. Which of the following are considered major air pollutants contributing to air pollution in India?

1. Sulphur Dioxide (SO₂)
2. Particulate Matter (PM2.5 and PM10)
3. Chlorofluorocarbons (CFCs)

Select the correct answer using the codes below:

1. 1 and 2 only
2. 2 and 3 only
3. 1, 2, and 3
4. 1 and 3 only

Answer: C

Explanation:

Sulphur Dioxide (SO₂): Emitted from industries, thermal power plants, and vehicles, leading to acid rain and respiratory issues.

Particulate Matter (PM2.5 and PM10): Fine particles suspended in the air that cause lung diseases and cardiovascular problems.

Chlorofluorocarbons (CFCs): Although phased out under international agreements, they were major contributors to air pollution and ozone layer depletion.

TRUMP’S STEEL AND ALUMINIUM TARIFFS AND THEIR GLOBAL IMPACT

TOPIC: (GS3) ENVIRONMENT: THE HINDU

U.S. President Donald Trump has reimposed and expanded tariffs on steel and aluminium imports, raising duties on aluminium to 25%. This move is expected to impact global trade, including India’s steel sector, which is already struggling with rising imports.

What are Tariffs?

• Tariffs are taxes imposed by a country on imported goods to protect domestic industries, regulate trade, and generate revenue.

• Higher tariffs make foreign goods more expensive, encouraging local production.

Background of the Tariffs

• Trump initially imposed tariffs on steel and aluminium imports in 2018.
• Exemptions granted earlier have now been removed, increasing aluminium tariffs from 10% to 25%.
• Countries such as Canada, Mexico, China, the European Union, Brazil, and South Korea will be affected.

Rationale Behind the Tariffs

• Trump believes that increasing import duties will encourage foreign manufacturers to shift production to the U.S.
• His administration aims to strengthen domestic manufacturing and create more factory jobs.
• The tariffs are also expected to generate revenue for the U.S. government.

Global Reactions and Economic Impact

• Australia termed the tariffs as “unjustified” and against the spirit of friendship.
• The European Union plans to impose counter-tariffs worth €26 billion on U.S. goods.
• The U.S. stock market has suffered losses due to fears of an economic slowdown.

Impact on India

• India’s steel sector is already facing an import surge, especially from China.
• The Indian government is considering imposing a 25% duty on steel imports.
• Indian steel stocks, including SAIL and JSW Steel, have declined due to market concerns.

India’s Recent Tariff Issues:

• S. Tariff Pressure – The U.S. is urging India to lower import tariffs, especially on automobiles, for better market access.
• Reciprocal Tariff Threats – The U.S. has warned of imposing tariffs on Indian goods in response to India’s tariff policies.
• Global Trade Uncertainty – India’s exports face risks due to potential tariff hikes by major economies.

Trade Measures and Safeguards

• Several countries have implemented trade restrictions in response to the U.S. tariffs.
• India’s Ministry of Commerce has launched an investigation into safeguard duties on steel.
• Between 2019 and 2023, around 129 trade remedy measures were imposed worldwide.

India’s Position in Steel & Aluminium

Steel Industry:

• India is the second-largest producer of crude steel globally after China.
• Major steel producers include SAIL, Tata Steel, and JSW Steel.
• India is a net exporter of steel, but imports have increased due to global supply shifts.

Aluminium Industry:

• India is the second-largest producer of aluminium after China.
• Major aluminium producers include Hindalco, NALCO, and Vedanta.
• The country depends on imports for high-grade aluminium and bauxite.

Government Measures for Self-Reliance

• Production-Linked Incentive (PLI) Scheme: Provides financial incentives to boost domestic steel and aluminium production.
• National Steel Policy (NSP) 2017: Aims to make India self-sufficient by increasing production capacity to 300 million tonnes by 2030.
• Atmanirbhar Bharat Initiatives: Promotes domestic manufacturing and reduces dependence on imports through infrastructure development and import restrictions.

Conclusion

Trump’s tariff hike has triggered trade tensions worldwide, affecting markets and industries, particularly in India. The situation may lead to further countermeasures from affected nations.

FOREIGN AID AND ITS GLOBAL IMPACT

TOPIC: (GS2) INTERNATIONAL RELATIONS: THE HINDU

A recent analysis highlights a significant gap between public perception and actual foreign aid spending by developed nations, particularly in the U.S. Despite foreign aid being a small fraction of national income, it has played a key role in global health and development efforts.

Foreign aid?

• Foreign aid refers to financial and humanitarian assistance provided by developed countries to support healthcare, poverty reduction, and economic development in other nations.

Foreign Aid Spending and Public Perception

• In 2023, the U.S. spent only 0.24% of its Gross National Income (GNI) on foreign aid, yet surveys showed that Americans believed it was as high as 31%.
• Norway is the only country that spends more than 1% of its GNI on foreign aid.
• A survey in 2015 found that Americans overestimated their government’s aid spending and believed it should be 10 times higher.

Role of Foreign Aid in Global Health

• In the 1980s, polio paralyzed nearly 500,000 people annually, mostly children. By 2023, global cases had reduced to just a fraction.
• Foreign aid programs played a crucial role in eradicating polio and funding vaccinations.
• Other healthcare programs supported by aid include:
  • PEPFAR: U.S. program saving 25 million lives from HIV.
  • Malaria control: Donations for bed nets and treatments helped reduce malaria deaths.
  • Tuberculosis (TB): The Global Fund and USAID significantly reduced TB deaths.

Sources of Foreign Aid

• In 2023, 95% of foreign aid came from national governments, with only 4.5% contributed by private philanthropies.
• A 20% reduction in the U.S. aid budget alone would have wiped out all private donations worldwide.

Way Forward:

The UN recommends developed countries allocate 0.7% of their GNI to foreign aid, but in 2023, only five countries met this target:  Norway, Luxembourg, Sweden, Germany, and Denmark.

• If all developed nations met this goal, global aid could nearly double, adding $216 billion to international assistance efforts.
• Public awareness and support are crucial in ensuring governments allocate more funds for global development.

The U.S. government provides financial and strategic aid to various agencies and international organizations through:

• Foreign Aid & Development Assistance – Funding through USAID for global health, education, economic development, and humanitarian relief.
• Military & Security Assistance – Support to allied nations via arms sales, training programs, and direct funding through the Foreign Military Financing (FMF) program.
• Contributions to International Organizations – Financial aid to the UN, WHO, IMF, and World Bank for global stability, peacekeeping, and economic recovery efforts.
• Emergency & Disaster Relief – Humanitarian aid for disaster-stricken regions through the Federal Emergency Management Agency (FEMA) and global crisis response funds.

Conclusion

Foreign aid has transformed global health and development despite being a small fraction of national income. Increasing public awareness and government contributions can further amplify its impact.

INDIA-MAURITIUS STRATEGIC PARTNERSHIP: STRENGTHENING TIES IN THE INDIAN OCEAN

TOPIC: (GS2) INTERNATIONAL RELATIONS: INDIAN EXPRESS

Prime Minister Narendra Modi recently visited Mauritius to strengthen India-Mauritius relations, focusing on security, trade, and development. The visit comes at a time of rising geopolitical competition in the Western Indian Ocean.

Strategic Relations Between India and Mauritius

• India and Mauritius have a long-standing partnership based on shared cultural and historical ties, with nearly 70% of Mauritius’s population being of Indian origin.
• Modi’s visit after almost a decade signifies India’s commitment to strengthening cooperation.
• India’s SAGAR (Security and Growth for All in the Region) vision emphasizes maritime security and development in the Indian Ocean.

Mauritius’s Colonial Past and Sovereignty Issues

• Mauritius was ruled by colonial powers like the Portuguese, Dutch, French, and British before gaining independence in 1968.
• The Chagos archipelago was separated from Mauritius by Britain and leased to the US for a military base at Diego Garcia.
• A 2019 International Court of Justice (ICJ) ruling confirmed Mauritius’s sovereignty over Chagos.
• The recent UK-Mauritius agreement settles sovereignty issues and allows the continued US military presence, benefiting India’s regional security interests.

Geopolitical Significance of the Chagos Agreement

• Mauritius’s decision to extend the lease for Diego Garcia strengthens the US presence in the Indian Ocean, countering Chinese expansion.
• The agreement aligns with India’s regional security goals and prevents China from gaining influence in the strategic region.

India’s Infrastructure Development on Agaléga Island

• India has invested in logistics and infrastructure on Agaléga Island, boosting its maritime presence.
• The island’s location makes it vital for trade, security, and military strategy in the Indian Ocean.
• Increased Chinese activities have revived the strategic importance of Mauritius.

China’s Expanding Influence in the Indian Ocean

• China relies on African and Middle Eastern resources, increasing its involvement in the Indian Ocean.
• Infrastructure investments, port developments, and a military base in Djibouti highlight China’s growing presence.
• China has built strong economic and diplomatic ties with Mauritius.

Mauritius’s Role in Global Geopolitics

• European nations, Gulf countries, and Russia are also increasing their presence in the region.
• Mauritius’s ability to maintain strategic autonomy while engaging with multiple powers makes it a key regional player.

Key Areas of India-Mauritius Cooperation

• Defence and Maritime Security: A proposed agreement on white-shipping information sharing will improve maritime security and safeguard trade routes.
• Infrastructure and Development Projects: India has provided $1.1 billion in development assistance, including grants and credit lines. Key projects include Metro Express and multiple small-scale infrastructure developments.
• Disaster Response and Humanitarian Assistance: India has consistently supported Mauritius in crises, including the Covid-19 pandemic and natural disasters.
• Trade and Investment: Mauritius is a major FDI source for India, second only to Singapore. The 2021 Comprehensive Economic Cooperation and Partnership Agreement (CECPA) enhanced trade relations.
• Space Cooperation: India and Mauritius have collaborated in space research since 1986. A 2023 MoU between ISRO and MRIC aims to develop a joint satellite.
• Cultural and Historical Bonds: Mauritius celebrates Indian festivals like Maha Shivratri and maintains ties to Indian heritage sites.

Conclusion

India’s deepening ties with Mauritius reinforce its strategic presence in the Indian Ocean. By supporting Mauritius’s sovereignty and development, India strengthens regional security while countering China’s growing influence.

IMMIGRATION AND FOREIGNERS BILL, 2025: KEY CONCERNS AND IMPACT

TOPIC: (GS2) INDIAN POLITY: THE HINDU

The Immigration and Foreigners Bill, 2025, was introduced in Lok Sabha to update and consolidate immigration laws. However, opposition parties have raised concerns over privacy, fundamental rights, and the absence of an appeal process against decisions by immigration officers.

Objective and Scope

• The bill grants the Central Government authority to regulate immigration and foreign nationals in India.
• It sets rules for:
  • Entry and exit requirements, including passports and travel documents.
  • Visa regulations and mandatory registration for foreigners.
  • Monitoring foreign nationals through institutions such as hospitals, universities, and workplaces.
• The bill aims to replace outdated laws, including:
  • Passport (Entry into India) Act, 1920
  • Registration of Foreigners Act, 1939
  • Foreigners Act, 1946
  • Immigration (Carriers’ Liability) Act, 2000

Government’s Justification

• The Home Ministry argues that the bill will:
  • Strengthen national security and sovereignty.
  • Formalize existing rules requiring hospitals and other institutions to report foreign nationals.
  • Eliminate confusion and overlap in old immigration laws.

Concerns Raised by the Opposition

• Violation of Fundamental Rights: Critics argue that the bill may restrict individual freedoms and lacks a clear appeal process against immigration officers’ decisions.
• Impact on Foreign Talent: The bill could create barriers for foreign professionals, especially in academics, healthcare, and research, affecting global collaboration.
• Questionable Necessity: Some opposition leaders claim that current laws are sufficient, making the new bill unnecessary and redundant.
• Lack of Safeguards: The bill grants broad discretionary powers to immigration authorities without adequate safeguards or a grievance redressal mechanism.

• This raises fears of misuse, bias, or harassment of foreigners and those interacting with them.

Potential Impact

• Simplifies immigration laws, making rules clearer and easier to enforce.
• Helps monitor and regulate foreign nationals, ensuring national security.

• May lead to arbitrary decisions due to the lack of an appeal system.
• Raises privacy concerns with mandatory reporting by institutions like hospitals and universities.

Conclusion

The Immigration and Foreigners Bill, 2025, aims to modernize India’s immigration system, but it has raised serious concerns over privacy, human rights, and administrative overreach. To ensure a balanced and effective law, parliamentary scrutiny and stronger safeguards are necessary.