CURRENT-AFFAIRS

Introduction

India celebrated its 77th Republic Day at a time when India’s role on the global stage has become highly decisive. President Droupadi Murmu’s address to the nation was not merely an account of achievements but a resolution towards India’s democratic journey and 'Constitutional Nationalism'.

Tribute to the Nation and Cultural Pride

The President gave special importance to India’s unity and cultural consciousness:

• Sardar Patel and Vande Mataram: Mentioning the 150th birth anniversary of Sardar Vallabhbhai Patel and the 150th year of the composition of 'Vande Mataram', she emphasized the unity and integrity of the nation.
• Civilizational Pride: She presented India as a messenger of peace and stability, acting as a balanced voice in a war-torn world.

Economic and Defence Achievements: Towards Self-reliant India

Practical aspects of India’s growing power were highlighted in the address:

• Economic Superpower: Appreciation was shown for India’s progress toward becoming the world’s third-largest economy and for structural reforms like GST and new Labour Codes.
• Defence Autonomy (Operation Sindoor): The mention of 'Operation Sindoor'—a precise military action against terror infrastructure—was cited as evidence of India’s self-reliance in the defence sector and its 'pro-active' security policy.

Social Justice and Inclusive Development

The speech gave special honor to those sections which are the invisible foundation of nation-building:

• Nari Shakti (Women Power): The increasing participation of women from space to agriculture and their role as decisive 'voters' was praised.
• The Person at the Last Mile: The contributions of farmers, sanitation workers, teachers, and healthcare professionals were described as the main drivers of national progress.

Analytical Review: Achievement vs. Challenges

While the government’s achievements are inspiring, there are also some significant challenges:

• Constitutional Nationalism: The President called for loyalty to the Constitution, but real progress should be measured not just by military or economic power, but by the protection of citizens' rights.
• Federal Structure: For the strength of the Republic, it is essential to maintain balanced relations between the Center and the States. Sectarian politics and corruption are major obstacles to these constitutional ideals.

Critical Perspective: What is Missing?

Critics argue that in a posture of 'self-congratulation', the government should not ignore the daily struggles of citizens such as increasing inequality, unemployment, and social polarization. Civilizational pride should not be used as a ruse to overshadow the material problems of the present.

Way Forward

As a vibrant Republic, India must focus on the following points:

• Implementation of Constitutional Principles: Merely praising the Constitution is not enough; the State must ensure its accountability towards protecting the fundamental rights of its citizens and grounding the Directive Principles. The scale of development should not just be GDP, but the happiness of the last person.
• Promoting Constitutional Nationalism: 'Civilizational pride' should not be allowed to become a substitute for current real problems (such as poverty, unemployment, and inequality). True nationalism is one that is inclusive and safeguards democratic values at every level.
• Strengthening the Federal Structure: India’s diversity and its strength lie in its federal character. Cooperative federalism between the Center and States should be promoted so that decentralization of power remains and regional aspirations are respected.
• Institutional Integrity and Strike on Corruption: Corruption and narrow politics weaken the roots of democracy. The ideals of the Republic can only be saved through a transparent governance system and the strengthening of independent institutions.
• Self-reflection and Reform: The government should engage in self-reflection on its shortcomings along with its achievements. Instead of ignoring the voices of civil society and the opposition, they should be viewed as opportunities for reform.

Conclusion

The 77th Republic Day is a proud moment for India. India’s military power and economic growth are commendable, but the real success of the Republic lies in how deeply it enables every citizen to experience justice, liberty, and equality. The path to 'Viksit Bharat' passes not only through economic statistics but through the successful implementation of constitutional ideals.

Context

The 'Mahatma Gandhi National Rural Employment Guarantee Act' (MGNREGA), 2005 was a historic step towards the eradication of rural poverty and unemployment in India. It provided a legal guarantee of 100 days of unskilled work per year to rural households. Recently, the Central Government has proposed a new Act by making fundamental changes to this system, which has ignited a new debate among the country's policy-makers and economists.

What is the VB – G RAM G Act?

The 'Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act' (VB – G RAM G Act) has been introduced by the government as a replacement for MGNREGA. Its objective is to not limit rural employment merely to 'subsistence' but to link it with the broader goal of 'Viksit Bharat 2047'. It emphasizes technical innovation, increased working days, and the creation of productive assets.

Why in News?

• This subject has recently come into the spotlight following an article by the renowned economist Jean Drèze.
• He has argued that the new Act is weakening the "rights-based framework" of the employment guarantee.
• Additionally, the arguments presented by the Union Minister for Rural Development in favor of this law have made this discourse even more relevant.

Major Objections of Jean Drèze

Jean Drèze, who has been one of the architects of MGNREGA, argues that this new law is effectively ending the "guarantee" of employment. His primary concerns are as follows:

• 'Switch-off' Provision (Section 5(1)): According to Section 5(1) of the new law, this employment guarantee will apply only in those rural areas notified by the Central Government. This means the Central Government can shut down this scheme in any area whenever it wishes. Drèze says this is like a "guarantee without a guarantee."
• 60-Day 'Blackout': The new law provides that no work will be given for 60 days a year during the peak agricultural season (sowing and harvesting). This has been done so that farmers can find laborers, but it will snatch away the rights of those laborers who do not have agricultural work.
• Funding Burden on States: In MGNREGA, the Center bore 100% of the expenditure on laborers' wages. In the new law, this has been changed to 60:40 (meaning 40% of the expenditure will have to be borne by the states). It will be difficult for poor states to bear this financial burden, which could lead to the scheme stalling.
• Excessive Use of Digitization: The new law places great emphasis on technologies such as AI, biometrics, and facial recognition. According to Drèze, due to poor internet and lack of technical understanding in rural areas, many laborers may be deprived of work and wages.

Government's Stand

According to the government, this change is the need of the hour:

• Increase in Working Days: The government has promised to provide 125 days of employment instead of 100.
• Check on Corruption: Technology and Aadhaar-based systems will stop 'fake attendance' and embezzlement of funds.
• Asset Creation: The focus of the new law is on creating assets (such as check dams, canals) that benefit the rural economy in the long run, rather than just digging pits.

Comparison between Old and New Schemes

Review and Relevance

Jean Drèze's side is focused on the 'protection of workers' rights,' while the government's side is on 'administrative efficiency.'

• Relevance: During times of rural distress, MGNREGA has always acted as a 'Safety Net'. If this flexibility ends with the new law, it will be critical. However, the government's idea of increasing productivity is essential for long-term development.

Analysis

This change will have a deep impact on the rural labor market. While the provision of 125 days is attractive, the 'switch-off' clause makes it a matter of the government's 'discretion' rather than a right. Increasing the financial burden on states may increase regional inequality. Digitization is good, but it should be implemented keeping in mind the access of the person at the last mile.

Way Forward

The path to success should be a middle ground:

• Legal Obligation should remain: Instead of limiting the employment guarantee to notified areas, it should be kept universal.
• Technical Simplification: Instead of making biometrics mandatory, it should be kept optional so that a laborer does not go hungry due to technical flaws.
• Cooperation of States: The financial burden should be divided in such a way that poor states are not discouraged.

Conclusion

Therefore, any new scheme can be welcomed only if it enhances the old rights instead of snatching them away. To strengthen the backbone of rural India, it is imperative to create a balance between productivity and empowerment.

Context

Recently, the Reserve Bank of India (RBI) released a significant report on the financial condition of India’s states and their changing population structures. This report comes at a time when India takes pride in having the world’s largest youth population, yet its states are undergoing a demographic transition at vastly unequal rates. This article analyzes how India's demographic dividend is on the verge of turning into an 'elderly burden' in certain regions.

What is Demographic Dividend?

Demographic dividend refers to the potential for economic growth that arises when the share of the working-age population (15 to 64 years) in a population is larger than the dependent population (children and the elderly). Simply put, when there are more working hands and fewer people depending on them, the country's productivity and savings rates increase.

Why is it in the News?

• The primary reason for the discussion is the RBI’s January 2026 report, which warns that southern states like Kerala and Tamil Nadu will become 'Ageing States' by 2036.
• While the number of youth is increasing in North Indian states, the proportion of the elderly in South India is set to cross 20% of the total population.
• This disparity is presenting new challenges to the country's federal structure and economy.

Significance of Demographic Dividend

For India, its significance is two-dimensional:

• Economic Growth: A massive workforce means higher production and consumption.
• Investment Opportunity: Increased savings make more capital available for investment.
• Global Supply Chain: As populations in countries like China decline, India can become the world's 'workshop'.
• Risk: If this workforce does not receive education and skills, this very dividend could turn into a 'demographic disaster'.

State-wise Distribution in India

India appears demographically divided into two parts:

• Leading States (Towards Ageing): Kerala, Tamil Nadu, Himachal Pradesh, and Andhra Pradesh. Here, the Total Fertility Rate (TFR) has fallen well below the replacement level (2.1).
• Youthful States (Towards Dividend): Bihar, Uttar Pradesh, Jharkhand, and Madhya Pradesh. Here, the working-age population will continue to rise even after 2031.
• Intermediate States: States like Karnataka and Maharashtra are currently in a state of balance.

Concerns of States and Deep Impact

Southern states fear being punished for their own success:

• Tax Devolution: Due to success in population control, the share of these states in the Finance Commission's formula may decrease, as population is given higher weightage.
• Limited Workforce: A shortage of local laborers for industries, leading to increased dependence on migrant workers.
• Rising Expenditure: A massive surge in spending on healthcare and geriatric care.

Transition from Dividend to 'Elderly Burden'

When a state reaches the final stage of demographic transition:

• Decline in Workforce: Tax revenue begins to decrease.
• Pension Burden: The burden of pensions and gratuities on the government treasury increases.
• Health Infrastructure: Instead of general hospitals, specialized 'Geriatric Care' (elderly medicine) is required.
• Reduction in Savings: The elderly population consumes its savings, reducing the capital available for investment.

Multi-dimensional Impact of Population on States

• Political Perspective:
  • Delimitation: After the upcoming delimitation, there are fears that the allocation of seats based on population will reduce the political power of South India and increase the dominance of North India.
• Economic Perspective:
  • Fiscal Pressure: Ageing states will have to rationalize subsidies to provide social security.
  • Productivity: Due to a lack of education in youthful states, their productivity is low, increasing the risk of "getting old before getting rich."
• Social Perspective:
  • Feminization: Women tend to live longer than men but possess fewer assets, making them more vulnerable.
  • Family Structure: Due to nuclear families and migration, the traditional 'familial safety net' is breaking down.

RBI’s Advice

The RBI has suggested adopting a balanced financial approach:

• For Ageing States: Rationalize subsidies and divert resources toward pensions and healthcare services.
• For Youthful States: Invest heavily in human capital (education and health) so that they have a sufficient financial base when they grow old in the future.
• Labour-Intensive Sectors: Promote sectors that can provide employment to more people even in the era of AI and automation.

Steps Taken by the Government

• National Education Policy (NEP 2020): For skill development and quality education.
• Ayushman Bharat: To reduce healthcare expenses for the elderly.
• Atal Pension Yojana: Social security for the unorganized sector.
• PM Kaushal Vikas Yojana: To enhance the employability of the workforce.

Deep Analysis

India’s challenge is 'unique'. Western countries grew rich before they grew old, whereas many states in India are facing the problem of 'ageing' while still in a developing stage.

• Uneven Development: If the youthful workforce of northern states migrates to the ageing states of the south, it could increase the possibility of linguistic and cultural conflicts.
• Threat of AI: With automation entering the manufacturing sector, job creation for the youth population has become even more difficult.

Way Forward

• Care Economy: Millions of jobs can be created by investing in the elderly care sector.
• Fiscal Federalism: The Finance Commission should reward states that have performed well in population control and social development.
• Women Empowerment: Special financial and social security schemes for elderly women are mandatory.
• Industrial Policy: Exploring employment opportunities in new sectors like green energy.

Conclusion

India’s demographic dividend is not a guaranteed benefit; rather, it is an opportunity that can only be harnessed through correct policies. Ignoring the pace of population ageing and its economic consequences would be suicidal. If we want our elderly to live a life of dignity and our youth to contribute to nation-building, we must develop a robust public 'Geriatric Care' system and a skill-based education framework today.