CURRENT-AFFAIRS

Context

The foundation of Indian democracy rests on 'free and fair elections', for which an error-free electoral roll is mandatory. In recent times, the 'Special Intensive Revision' (SIR) process launched by the Election Commission of India (ECI) has sparked a new constitutional debate. This debate revolves around finding a balance between the nature of the right to register in the electoral roll and the continuous verification of citizenship.

What is Article 326?

Article 326 of the Indian Constitution is the basis of 'adult suffrage'. It primarily makes the following provisions:

• Eligibility: Every person who is a citizen of India and is not less than 18 years of age (originally 21 years, reduced by the 61st Amendment 1988) is entitled to be registered as a voter.
• Disqualification: No person can be deprived of the right to vote unless they are disqualified under law on grounds of non-residence, unsoundness of mind, crime, or corrupt practice.

Why in Discussion?

On January 27, 2026, during the hearing in the Supreme Court against petitions filed against the Special Intensive Revision (SIR), the Election Commission gave a historic statement:

• Commission’s Statement: "Finding a place in the electoral roll is a 'qualified right', not an absolute right."
• Supreme Court’s Stance: The Court said that the process of revision of the electoral roll must be in accordance with the principles of 'natural justice'. The Court directed the Commission to make public the names against whom 'logical discrepancies' have been found, so that they can present their side.

What is Special Intensive Revision?

SIR is a time-bound and door-to-door verification campaign conducted by the Election Commission.

• Objective: To remove names of fake voters, deceased persons, shifted individuals, and especially 'illegal immigrants'.
• Process: Booth Level Officers (BLO) personally visit homes and verify data through enumeration forms.

Article 326 and SIR

When SIR is viewed in conjunction with Article 326, some serious analytical points emerge:

• Condition of Continuity: The Commission argues that citizenship is not just a condition at the time of registration, but it is necessary to fulfill it "continuously" to remain a voter.
• Verification vs. Determination: The Commission clarified that SIR is not for the determination of citizenship (which is the task of the Central Government), but it is merely a process of verification.

Constitutional and Legal Basis

The basis of this entire process lies in the following legal pillars:

• Article 324: Grants wide powers of superintendence, direction, and control of elections to the Election Commission.
• Representation of the People Act (RPA), 1950 (Sections 16 and 19): These sections respectively define the conditions of disqualification and registration.
• Registration of Electors Rules, 1960: Provides the detailed procedure for the preparation and amendment of the electoral roll.

Importance of the Case and Impact on Democracy

This case is not just paperwork; it has deep democratic implications:

• Democratic Purity: A flawed list can influence election results, weakening the principle of 'one person-one vote'.
• Right vs. Security: It reflects the conflict between individual rights and national security (preventing illegal infiltration).
• Inclusivity: The fear is that in this process, genuine and poor citizens (who lack documents) might be deprived of their right to vote.

Historical Perspective

Has Article 326 been used before?

• 1951-52: Before the first general election, intensive revision was conducted for the registration of migrants and refugees.
• 1989 (61st Amendment): After the age limit was reduced, a nationwide revision of electoral rolls was conducted.
• Assam (2014-19): Along with the NRC, interpretations of Article 326 were used for the matching of electoral rolls.

Analysis

• Due to the SIR process being called an 'indirect NRC', it has become politically sensitive.
• The Commission technically has the power to match data, but when notices are issued to 20% of the population (as happened in Bengal), it raises the question of 'administrative overreach'.

Way Forward

According to the instructions of the Supreme Court, the future strategy should be:

• Transparency: Lists with discrepancies should be displayed at the block and ward levels.
• Acceptance of Proofs: Documents issued by the state (such as admit cards or local body certificates) should be accepted as evidence.
• Use of Technology: Complete security and privacy should be ensured in the linking of Aadhaar and Voter ID cards.
• Training of BLOs: Officers should be sensitized to make the process non-discriminatory.

Conclusion

The right to register in the electoral roll is indeed a 'qualified constitutional right'. The objective of SIR is to build a flawless democracy, but its success will depend on how just and transparent it is. As the Supreme Court stated, "The process must not only be fair, but must also be seen to be fair." For the strengthening of democracy, it is mandatory for the name of every eligible citizen to be on the list and for every ineligible person to be out.

Context

India's trade journey is moving from 'protectionism' towards 'strategic openness'. After the economic reforms of the 1990s, India signed trade agreements with South-East Asia (ASEAN), Japan, and South Korea. In recent years, India has changed its strategy, as evidenced by the India-UAE (CEPA) and India-Australia (ECTA) agreements.

• Negotiations for the India-EU FTA began in 2007, but were suspended in 2013 due to a 'mismatch of ambitions'.
• Negotiations were revived in 2022 and finalized on January 27, 2026. This agreement is a reflection of India's policy of 'Act East' to 'Look West' and now 'Grow Global'.

What is the 'Mother of All Deals'?

It is being called the 'Mother of All Deals' because it is the world's largest trade agreement in terms of economic weight.

• It connects the world's fastest-growing economy (India) and the world's largest trading bloc (EU).
• It covers a combined market of $24 trillion and a population of 2 billion people, which is approximately 25% of the global GDP.

Why in Discussion?

• Recently, India and the European Union successfully concluded negotiations for a Free Trade Agreement (FTA) after 19 years of ups and downs.
• This historic moment was announced by Prime Minister Modi and European Commission President Ursula von der Leyen.
• Currently, the 'legal scrubbing' (legal refinement) of the document is underway, after which it will be ratified by the European Parliament.

Key Points of the Agreement

• Asymmetric Tariff Concessions: The EU will immediately or very soon impose zero duty (0% Duty) on 99.5% of Indian products. In return, India will give concessions on 97.5% of the EU's traded value.
• Impact on Specific Products: Prices of European luxury cars (reducing from 110% to 10%) and wine (reducing from 150% to 20-30%) will decrease.
• Protection of Sensitive Sectors: India has kept agricultural sectors such as dairy, grains, and poultry out of this to protect the interests of Indian farmers.

Why this agreement and why now?

• Global Turmoil: Amidst the protectionist policies of the US and the Russia-Ukraine war, both powers needed a stable and reliable partner.
• 'De-risking' from China: Both the EU and India want to reduce their supply chain dependence on China.
• Economic Complementarity: Europe has capital and technology, while India has large-scale manufacturing capacity and a skilled young workforce.

Impact in Indian Context

• Job Creation: Millions of new jobs will be created in labor-intensive sectors like textiles, leather, and gems-jewelry due to zero-duty access to the European market.
• Make in India: Cheap imports of European high-tech machinery will modernize India's domestic production.
• Boosting MSMEs: The agreement includes a special chapter for MSMEs, providing a digital platform to connect small industries with the global value chain.

International Relations and Diplomacy

• USA: This agreement sends a message to the US that India is not dependent on only one bloc. It enhances India's 'strategic autonomy'.
• China: The increasing proximity between India and the EU is a major challenge to China's economic dominance, as the EU now views India as 'China Plus One' for its supply chain.
• Neighboring Countries: India's growing economic stature will make its 'Neighborhood First' policy more effective in South Asia.

Open Market:

At a time when institutions like the World Trade Organization are weakening, this agreement serves as a 'beacon' for 'rules-based trade'. It proves that two democracies with different economic levels can set rules through mutual cooperation. It reflects a global commitment to 'open trade'.

Breaking Barriers:

India's biggest victory lies in 'Mode 4':

• Movement of Professionals: Rules and visa procedures for Indian IT experts, engineers, and healthcare workers to work in the European Union have been simplified.
• Flow of Talent: This agreement is not just about trade in goods, but also in 'human resources', which will address Europe's 'skill shortage' and increase India's 'remittances'.

Analysis

There are also some challenging aspects of this agreement that require analysis:

• CBAM (Carbon Border Adjustment Mechanism): The EU's carbon tax could become a challenge for Indian steel and aluminum exporters.
• Non-Tariff Barriers: Despite lower tariffs, the EU's stringent Sanitary and Phytosanitary (SPS) standards could pose an obstacle to Indian agricultural exports.
• IPR (Intellectual Property Rights): The EU's demand for data exclusivity for medicines could be a matter of concern for India's generic drug industry.

Way Forward

• Capacity Building: Training and technical assistance should be provided to Indian exporters, especially MSMEs, to align with European standards.
• Improvement in Logistics: India must reduce its logistics costs to compete with countries like Vietnam and Bangladesh in the EU market.
• Continuous Dialogue: Continuous conversation with the EU should be maintained regarding CBAM and regulatory standards.

Conclusion

The India-EU FTA is not just a trade document, but a new blueprint for the 'strategic partnership' of the 21st century. This agreement will act as a catalyst in achieving the goals of 'Atmanirbhar Bharat' and 'Viksit Bharat @2047'. It will not only bring economic prosperity but also establish India as a decisive power in global geo-politics.

Context

The role of 'Logistics' is extremely vital in India’s growing economy. Currently, a major portion of e-commerce and urban freight is managed by Light Commercial Vehicles (LCVs)—small trucks weighing less than 3.5 tonnes. While the government had already implemented strict standards like 'CAFE' for passenger vehicles, LCVs remained outside any regulatory framework until now. To fill this void, the Central Government has drafted a new and comprehensive policy framework.

What is e-LCV?

• e-LCV stands for 'Electric Light Commercial Vehicle'. These are freight vehicles that operate entirely on batteries and electric motors. They are considered the most suitable option for the future to ensure pollution-free and low-cost delivery within cities.

Why in News?

• The Bureau of Energy Efficiency (BEE) shared an official proposal for fuel consumption standards for LCVs.
• This proposal will be applicable for the period from 2027 to 2032. This news is a subject of discussion because, for the first time, small commercial vehicles have been brought under the ambit of stringent emission targets, which will directly compel a shift from diesel vehicles to electric vehicles.

Targets and Standards

The following standards have been set under the proposed rules:

• Emission Target: The target is to reduce the average carbon emission of the LCV fleet to less than 115 g CO2/km.
• Fuel Efficiency: Companies will have to reduce their average fuel consumption by approximately 22% to 30% compared to the 2022-23 baseline.
• Timeline: These rules will be effective from April 1, 2027, and will prepare the industrial roadmap for the next five years (until 2032).

Why is this a "Spark" for the e-LCV Transition?

This policy is not just a regulatory limit but will act as a 'catalyst' (spark) for electric vehicles:

• Super Credit System: Companies manufacturing electric LCVs will receive additional 'credits', making it easier for them to meet the overall fleet emission targets.
• Economic Compulsion: Increasing the efficiency of diesel engines by 30% is very expensive, making the manufacturing of electric vehicles a more financially viable option for companies.

Necessity and Importance

• Energy Security: To reduce dependence on crude oil imports.
• Environmental Impact: To control increasing air pollution and 'Particulate Matter' (PM) in urban areas.
• Logistics Cost: Lower operating costs will benefit small traders and the e-commerce sector.

Impact Across All Dimensions

• Economic: Massive savings on fuel expenditure for small businesses.
• Social: Freedom from noise and smoke in urban areas, leading to improved public health.
• Strategic: Emergence of India as a global automobile export hub.

Challenges and Industrial Process

• High Initial Cost: The purchase price of electric trucks is still significantly higher than diesel trucks.
• Charging Infrastructure: A severe lack of large and fast-charging stations for commercial vehicles.
• Technical Limitations: 'Range' is a major concern for electric vehicles when carrying heavy loads.

Previous Government Policies

Prior to this, the government has taken the following steps to promote manufacturing:

• FAME-II and PM E-DRIVE: Subsidies on electric vehicles.
• PLI Scheme: Production Linked Incentives for Automobiles and Advanced Chemistry Cell (ACC).
• Scrappage Policy: Policy to remove old and polluting commercial vehicles.

Analysis

An analysis of the Budget and these BEE proposals makes it clear that India is now moving from 'voluntary change' to 'mandatory transformation'. Until now, manufacturing electric vehicles was an option for companies, but the target of 115 g CO2/km will make it a necessity.

Way Forward

• Battery Swapping: Expanding battery swapping centers for LCVs to save time during working hours.
• Ease of Credit: Arrangement of 'Green Loans' at lower interest rates for small transporters.
• Skill Development: Training mechanics and technicians for electric motor and battery repair.

Conclusion

The fuel standards of 2027-2032 will prove to be a milestone in the history of Indian transport. This policy will not only protect the environment but also place India among the rank of developed nations with modern, clean, and affordable transport systems. This 'spark' of e-LCVs is ready to provide new energy to India’s manufacturing sector.

Context

The month of January 2026 has been highly volatile for the Indian currency market. Amidst global economic uncertainty and geopolitical shifts, the Indian Rupee (INR) reached its lowest level ever against the US Dollar. This situation arose at a time when India was preparing to present its Union Budget and Economic Survey.

Falling Rupee

Around January 27, 2026, the Rupee crossed the psychological level of ₹91.80 to ₹92.00 against the Dollar. By January 30, it closed at a record low of ₹91.99 before recovering. This weakness of the Rupee not only increased investors' concerns but also put pressure on import costs.

Why in News?

• Historical Decline: The Rupee touched the level of ₹92 per Dollar for the first time.
• Economic Survey 2026: In the Economic Survey presented by the Finance Minister, this decline of the Rupee was described as 'temporary', stating that the Rupee is performing below its actual potential.
• US Tariffs: Announcements of trade duties imposed on various countries by President Donald Trump made the Dollar extremely powerful in the global currency market.

Main Causes of the Decline

Several multi-dimensional factors have been responsible for this weakness of the Rupee:

• Capital Outflow (FPI Outflow): In January 2026, foreign investors withdrew approximately $4 billion from the Indian stock market.
• Strong Dollar Index: The announcement of the new Chairman of the US Federal Reserve (Kevin Warsh) and the US policy to keep the Dollar strong put pressure on other currencies.
• Trade Deficit: The increase in India's merchandise trade deficit and pressure on exports (especially due to the 50% tariff imposed by the US) weakened the Rupee.
• Geopolitical Tension: Instability in West Asia and fears of a trade war turned investors toward the 'safe' Dollar.

Impacts and Signals of Currency Depreciation

When the value of the Rupee falls, it gives mixed signals for the economy:

• Negative Impact: Imports (petrol, diesel, electronics) become expensive, leading to an increase in 'imported inflation'.
• Positive Impact: Indian exports (IT, Textiles, Pharma) become cheaper and more competitive in the global market.
• Signal: It indicates that the global demand for the Dollar exceeds India's supply and investors are currently cautious regarding the Indian market.

Steps Taken by the Government and RBI

• Market Intervention: The Reserve Bank of India (RBI) sold Dollars from the foreign exchange reserves to prevent excessive volatility of the Rupee.
• Budget 2026 Stimulus: An attempt was made to restore the confidence of foreign investors by increasing expenditure on infrastructure (12.2 lakh crore).
• Trade Negotiations: Active diplomacy for a 'Trade Deal' with the US to reduce the fear of tariffs.

Economic Survey

• According to the Economic Survey 2026, the decline of the Rupee is not just a piece of negative news.
• It is being seen as a "Silver Lining" because if the Rupee remains slightly weak, it partially offsets the impact of the 50% tariff imposed by the US.
• A weaker Rupee makes Indian goods more competitive in the US, providing relief to exporters.

'Depreciation' vs 'Devaluation': Subtle Difference

Although the value of the currency falls in both situations, the process behind them is different:

Way Forward

• Export Diversification: Looking for new markets (Africa, South-East Asia) instead of relying solely on the US.
• Reducing Dependence on Dollar: Promoting the use of the Rupee in international trade.
• Energy Self-reliance: Increasing investment in EV and renewable energy to reduce crude oil imports.

Conclusion

The decline of the Rupee on January 27, 2026, was a challenging moment for the Indian economy, but it is not a crisis. Given India's strong foreign exchange reserves and stable GDP growth rate, the Rupee has the potential to return to its actual position soon. News of the recent India-US trade agreement has already started a record recovery in the Rupee, which is a testament to the resilience of the Indian economy.

Context

The Indian economy is currently undergoing a major transition, where a flexible work culture has evolved in place of traditional '9 to 5' jobs. This is known as the 'Gig Economy'. Today, India is emerging as one of the world's largest gig markets. The increasing reach of information technology and smartphones has revolutionized the service sector, providing employment to millions of youth in sectors like e-commerce, logistics, and food delivery. This changing perspective is not only accelerating economic growth but also challenging the traditional framework of the labor market.

What are Gig Workers?

A gig worker is an individual who works outside of a traditional employer-employee relationship.

• These individuals are independent contractors, online platform workers, or temporary employees.
• They are commonly referred to as 'partners' (e.g., delivery partners, driver partners).
• Their earnings are based on the volume of work (piece-rate) rather than a monthly salary. Example: Delivery boys, Uber/Ola drivers, freelance plumbers or beauticians from Urban Company, etc.

Reasons for Discussion

• Recently, the Karnataka government issued a notification for the constitution of the 'Karnataka Platform-Based Gig Workers Welfare Development Board'.
• This step has been taken under the 'Karnataka Platform-Based Gig Workers (Social Security and Welfare) Act, 2025'.
• This is a subject of discussion because Karnataka has now become the second state after Rajasthan to create a dedicated board to provide statutory protection to gig workers.

Gig Workers Welfare Board

The board constituted by Karnataka is a statutory body aimed at protecting the interests of gig workers.

• Leadership: The State Labour Minister will be the ex-officio Chairman.
• Composition: It includes senior government officials, representatives from aggregator companies (Zomato, Uber, etc.), and members of labor unions.
• Welfare Fund: Companies will have to pay a 'welfare fee' of 1% to 1.5% on every transaction. Initially, it has been kept low so as not to burden the companies, but if necessary, it can be increased up to 5%.
• Registration: All gig workers will be registered with the board and provided with a Unique ID.
• Functions: The board will formulate schemes for workers such as insurance, health facilities, assistance for children's education, and compensation in case of accidental death.

Rules for Companies

• Companies must register themselves and all their workers with the board within 45 days.
• Companies must maintain transparency in their algorithms and methods of assigning work.
• Now, companies must provide a written reason before terminating a worker, and a 14-day notice period is mandatory.

Why was it needed?

Gig workers had to work for long periods without any protection. The main reasons for the necessity of the board are as follows:

• Lack of Social Security: They received neither pension nor PF (Provident Fund) or health insurance.
• Uncertain Income: Due to algorithm-based work, their income does not remain stable.
• Arbitrary Deductions: Companies would increase commissions or block a worker's ID without any prior notice.
• Work Risks: Despite working in road accidents and bad weather, they had no legal protection.

Statistics of Gig Workers and Gig Economy in India

• Current Number: According to NITI Aayog estimates and 2026 data, there are currently more than 1 crore gig workers in India.
• Future Projection: This number is likely to increase to 2.35 crore by 2030.
• Income Level: According to the Economic Survey 2025-26, the monthly income of about 40% of gig workers is less than ₹15,000.

Contribution to Economy and Future Direction

• Contribution: The contribution of the gig economy to India's GDP is continuously increasing. It has specifically become the backbone of urban consumer services.
• Signs of Rising Numbers: This indicates that India's labor market is now moving from "salaried employment" to "skill-based freelancing." It reflects the spirit of entrepreneurship and the demand for flexibility in work among the youth.

Constitutional Provisions

The Constitution of India protects the rights of gig workers directly and indirectly:

• Article 21: Right to live with dignity.
• Article 39: Directive Principles of State Policy for equal pay for equal work for both men and women and health protection.
• Article 42: Ensuring just and humane conditions of work.
• Article 43: Ensuring a living wage for workers.

Global Status vs. Company Rules in India

• Global Status: In countries like the UK and Spain, courts have granted gig workers the status of 'employees', giving them the right to a minimum wage.
• Company Rules in India: In India, companies consider them 'independent partners', thereby avoiding liabilities under labor laws (such as gratuity, bonus). However, through the new Social Security Code 2020, India is now trying to grant them recognition.

Key Features and Workers' Rights (Karnataka Model)

• Right to Information: Workers have the right to know how the algorithm is tracking their work.
• Mandatory Notice: A worker's ID cannot be blocked without a 14-day notice and a valid reason.
• Grievance Redressal: In case of a dispute, the worker has the legal right to appeal to the board.
• Transfer Protection: The continuity of their social security will be maintained even when moving from one platform to another.

Analysis

The constitution of the Gig Workers Board is a progressive step. It is an attempt to create a balance between 'digital platforms' and 'labor rights'. While on one hand it fixes the accountability of companies, on the other hand, it ensures that workers are not exploited in the name of innovation and technology. However, a 1.5% cess for aggregator companies may increase their costs, the impact of which may ultimately fall on the consumers.

Way Forward

• Legislation at National Level: Instead of being limited only to states (Rajasthan, Karnataka), the Central Government should effectively implement the 'Social Security Code' across the country.
• Skill Development: Instead of limiting gig workers to only delivery, they should be taught digital skills so that they can find better opportunities in the future.
• Data Security: Ensuring the protection of workers' personal data is also a major challenge.

Conclusion

The gig economy is a reality of modern India. The constitution of the 'Gig Workers Welfare Board' by Karnataka is a revolutionary milestone in providing dignity and security to this invisible workforce. If this model is successfully implemented, it will not only improve the living standards of workers but also help in making India an inclusive and equitable digital economy.