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General Studies Paper – II: Governance, Constitution, Polity, Social Justice and International Relations
Context
In the present times, education is no longer seen merely as a ‘degree’, but as one of the most powerful means of social empowerment. Even today, there exists a large section in Indian society where there is no shortage of talent, but the lack of financial resources becomes a barrier in achieving their aspirations. Especially for the youth of second- and third-tier cities, pursuing higher education is not just an academic choice, but a ‘financial risk’. The harsh reality is that many meritorious students are left behind simply due to the lack of ‘capital’ and ‘access’ for enrolment. In an era where India is moving towards becoming a ‘knowledge-based economy’, investment in education should not be limited to infrastructure alone; investing in students has become the need of the hour.
What is Gross Enrolment Ratio (GER)?
Gross Enrolment Ratio (GER) is a statistical measure used to determine the level of enrolment in education.
- In the context of higher education, it represents the percentage of students enrolled in higher education institutions relative to the total population in the age group of 18 to 23 years.
- A low GER indicates that a large section of the population is deprived of higher education.
- The Government of India, under the National Education Policy 2020, has set a target to increase GER to 50% by 2035.
Why is it in Discussion?
Based on recent reports (AISHE 2021-22) and discussions, the following points bring it to focus:
- Institutions increased, enrolment stagnant: The number of institutions has increased from 51,534 in 2014-15 to over 70,000, yet GER remains at 28.4%.
- Cost and risk: Rising fees and uncertainty of employment after education have created hesitation among students.
- Importance of scholarships: Experts now view scholarships not merely as financial aid, but as a core pillar of the education system.
From Historical to Contemporary Perspective
Education financing in India has always been a social responsibility:
- Ancient Period (Takshashila and Nalanda): Merit was paramount. Students had multiple options—service to the teacher, donations, patronage by rulers, or deferred payment. Lack of resources was never a barrier.
- Colonial Period: Education became restricted to certain sections, but social reformers like Savitribai Phule and Dr. B.R. Ambedkar used scholarships as tools of social justice.
- Post-Independence: Scholarships were seen merely as support, but in the 21st century, they are now viewed as strategic investments driving economic mobility.
Government Initiatives
The Government of India has taken several steps to make higher education accessible:
- National Scholarship Portal (NSP): A common platform for various scholarship schemes.
- Central Sector Scheme of Scholarships: Provides financial assistance up to ₹20,000 for undergraduate and postgraduate students.
- Interest Subsidy on Education Loans: Makes loans affordable for economically weaker sections.
- PM-USP (Prime Minister’s Uchchatar Shiksha Protsahan): Provides financial support to meritorious students.
- Special Schemes: PMRF (Prime Minister’s Research Fellowship) for research and pre/post-matric scholarships for minorities and backward classes.
Scholarship Programmes: Importance and Impact
Scholarships are not just financial support but act as catalysts for student development:
- Academic Continuity: Prevents dropouts.
- Diversity: Ensures representation from all sections of society.
- Mental Stability: Multi-year scholarships reduce financial stress.
- Career Guidance: Modern scholarships include mentorship and leadership development.
Constitutional and Legal Provisions
- Article 21A: Recognizes the right to education (broadly interpreted).
- Article 46 (DPSP): Directs the state to promote educational and economic interests of weaker sections, especially SC/ST.
- Article 15: Allows special provisions for socially and educationally backward classes.
- National Education Policy 2020: Emphasizes expanding scholarships and involving the private sector.
Analytical Evaluation
A fair analysis shows that building institutions alone is not enough:
- Access vs Affordability: Institutions exist, but many students cannot afford them.
- Quality and Employment: Enrolment is meaningful only if it leads to quality education and employment.
- Social Mobility: Scholarships are one of the most cost-effective tools for upward mobility.
International Perspective: Global Models of Higher Education and Scholarships
Country | Model | Impact and Reality |
Germany | Publicly funded model with minimal/no tuition fees | Ensures wider access and supports a strong industrial and research base |
Nordic Countries (Norway, Finland) | Fully state-funded education with living grants | Low inequality and high social mobility |
USA | Philanthropy and merit-based scholarships (Harvard/MIT model) | Attracts global talent, though student debt remains a challenge |
China | Government-funded scholarships (CSC) | Improved global visibility and skilled workforce |
Australia | Income-contingent loans (HECS-HELP) | Reduces immediate financial burden and improves access |
Key Findings from Global Reports
- OECD (Education at a Glance): Investment in education leads to higher individual earnings and economic growth, though outcomes vary by context.
- UNESCO (GEM Report 2020): Financial inclusion and scholarships play a crucial role in promoting gender equality and inclusion.
Way Forward
- Decentralisation of Scholarships: Extend beyond elite institutions to rural colleges.
- Private Sector Participation: Link CSR and philanthropy with scholarships through tax incentives.
- Multi-Year Commitment: Ensure scholarships for the entire course duration.
- Skill Integration: Align scholarships with sectors like manufacturing, digital services, and healthcare.
Conclusion
India’s journey towards becoming a ‘knowledge-based economy’ is hindered by socio-economic inequalities and rising costs of higher education, turning it into a ‘financial risk’ for many meritorious students. Nation-building cannot rely solely on physical infrastructure; it requires student-centric investment to ensure equitable access. Therefore, making the education system inclusive, affordable, and student-friendly is an essential necessity for the holistic development of human capital.
General Studies Paper – II: Governance, Constitution, Polity, Social Justice and International Relations
Context
In the past decade, India has established a significant paradigm in the field of women empowerment, where policies have not been confined merely to ‘theoretical intent’ but have been transformed into ‘ground-level infrastructure’. In the current policy framework, placing women at the centre of the development mainstream is not just a social reform, but a well-planned national strategy. It acknowledges the fact that the pace of a nation’s progress cannot be comprehensive without the active participation of women.
Statistical Achievements and Structural Transformation
The role of women in India’s developmental journey can be understood through the following key pillars:
- Financial Inclusion: Out of more than 57 crore accounts opened under the Jan Dhan Yojana, over 55% belong to women. This has ensured their access to the formal banking system.
- Entrepreneurship and Self-employment: Around 70% of ‘MUDRA’ loans being received by women entrepreneurs and the organisation of over 10 crore women through more than 90 lakh Self-Help Groups (SHGs) signifies a silent revolution in the rural economy.
- Social Security and Health: Initiatives such as Ujjwala Yojana and Ayushman Bharat have not only improved the ‘quality of life’ of women but have also empowered them by providing protection from health-related risks.
- Labour Force Participation: The increase in female labour force participation rate to around 37% is a positive sign, addressing a long-standing decline.
Challenges: From Policy Formulation to Policy Penetration
Although the scale of schemes is vast, ‘last-mile delivery’ still remains a challenge. For district-level administration, the primary task now is to convert ‘eligibility’ into ‘access’.
- Awareness Gap: Many women are still deprived of the benefits of schemes due to lack of information.
- Outcome-based Monitoring: There is a need to measure not just ‘expenditure’ or ‘numbers’, but the actual ‘impact’ on society.
Nari Shakti Vandan Act: From Representation to Authority
The Nari Shakti Vandan Act is not merely a legislative reform, but a means to incorporate ‘lived experiences’ into the policy-making process. As women’s participation in policymaking increases, policies will become more sensitive, practical, and inclusive. This reform will generate a ‘multiplier effect’, creating a new pipeline of leadership in the future.
Way Forward: Towards 2047
As India aims to become a ‘Developed Nation’ by its centenary year of independence (2047), women-led development must be its cornerstone. For this, the following areas require focus over the next five years:
- Leadership in STEM: India already has a high proportion of women in STEM education, which now needs to be translated into leadership in governance and innovation.
- Institutional Support: Women must be prepared not only as elected representatives but also as institutional leaders through training and mentorship.
- Simplified Processes: Access to policies must be simplified so that even the most marginalised sections of society can benefit without barriers.
Conclusion
Empowerment is no longer just an option, but a prerequisite for India’s economic stability and social strength. Entrusting ‘Nari Shakti’ with authority will redefine India’s development trajectory. For policymakers and administrators, the message is clear: achieving the ‘saturation point’ of policy implementation is the pathway to a developed India.
Context
The Pradhan Mantri Mudra Yojana has established a new milestone in the direction of financial inclusion by achieving a historic disbursal of ₹5.64 lakh crore in the financial year 2026. This achievement not only reflects the empowerment of micro enterprises but also demonstrates improvement in asset quality (reduction in NPA), indicating strengthening trends in the banking system.
Key News Points: Current Progress
- Peak Disbursal: A total loan of ₹5,64,784 crore was disbursed in the financial year ending March 31, 2026, which is higher than ₹5.41 lakh crore of the previous year.
- Loan Statistics: The total sanctioned amount stood at ₹5,74,389 crore, under which 4,57,01,308 loans were provided.
- Improvement in Asset Quality (NPA): The biggest success of the scheme is the reduction in non-performing assets (NPA), which has declined from 4.86% five years ago to around 2% now.
- Loan Categories:
- Shishu: Up to ₹50,000
- Kishore: ₹50,000 to ₹5 lakh
- Tarun: ₹5 lakh to ₹10 lakh
- Tarun-Plus (New): Introduced in FY 2025, ₹10 lakh to ₹20 lakh
- Dominance of Small Loans: More than 60% of loans are below ₹30,000, indicating effectiveness at the grassroots level.
- Women Participation: Increased outreach among poor women due to public sector bank initiatives.
- Credit Guarantee: Guarantee cover provided through CGFMU is enabling banks to lend confidently.
What is Pradhan Mantri Mudra Yojana (PMMY)?
- Launch: The scheme was launched on April 8, 2015.
- Nodal Ministry: Under the Ministry of Micro, Small and Medium Enterprises, Government of India.
- Objective: “Funding the Unfunded” — to provide financial assistance to small entrepreneurs who were outside the formal banking system.
- Institutional Framework: Under this, MUDRA (Micro Units Development & Refinance Agency Ltd.) functions as a non-banking financial institution, providing refinance to banks, NBFCs, and micro-finance institutions.
- Target Group: Small manufacturing units, service sector enterprises, shopkeepers, vegetable vendors, and individuals engaged in allied agricultural activities.
Growth in PMMY Loans
Financial Year | Loans Disbursed (₹ crore) |
2021-22 | 3,31,402 |
2022-23 | 4,50,423 |
2023-24 | 5,32,358 |
2024-25 | 5,41,802 |
2025-26 | 5,64,784 |
As of March 2026, a total of ₹40.07 lakh crore has been disbursed under the scheme since its inception.
Significance of the Scheme
- Financial Inclusion: Integrates marginalized sections and micro entrepreneurs into the formal credit system.
- Employment Generation: Promotes self-employment and expands livelihood opportunities.
- Women Empowerment: A large share of beneficiaries are women, enhancing socio-economic independence.
- Strengthening Credit Ecosystem: Credit guarantee cover and declining NPAs have improved confidence in micro-lending.
- Economic Diversification: Encourages decentralized economic activity in rural and semi-urban areas.
Conclusion
The Pradhan Mantri Mudra Yojana has not only strengthened India’s micro-credit ecosystem but has also established a balance between financial discipline and inclusive growth. The enhanced loan limit up to ₹20 lakh (Tarun-Plus) and declining NPA levels indicate improving repayment discipline among micro-entrepreneurs. In the future, this scheme will serve as a cornerstone in achieving the vision of a ‘Viksit Bharat’.
Context
The World Bank, in its recent 'India Development Update' report, has issued a significant warning regarding India's economic future. In view of the ongoing conflict in West Asia and the global energy crisis, the Bank has revised downwards India's growth rate estimates. This report presents an analysis of the balance between India's economic resilience and its vulnerability to external shocks.
Key News Points
All important figures and information obtained from the report are as follows:
- Cut in Growth Rate: India’s GDP growth forecast for FY 2026-27 has been reduced from 7.2% to 6.6%.
- Industrial Slowdown: Industrial activity is likely to fall from 8.8% in FY26 to 7.5% in FY27.
- Sectoral Performance: Manufacturing (especially electronics and automobiles) will support growth, but higher input costs and declining global demand remain concerns.
- Inflation: Consumer Price Index (CPI) based inflation is estimated to rise to 4.9% in FY27 from 2.3% in FY26.
- Foreign Investment (FDI): Net FDI inflow is estimated to be 0.6% of GDP (which was 0.5% last year).
- Impact on Service Sector: Due to the global slowdown, business services and food & accommodation services (due to the LPG crisis) will be affected.
Key Findings of the World Bank Report
- Impact of War: The report clarifies that in the absence of the conflict in West Asia, India’s growth rate of 7.2% was assured.
- Energy Crisis: Disruptions in global oil and gas supply are feared to persist until the end of 2026, which is unfavorable for India.
- South Asian Scenario: Growth across South Asia is projected to fall to 6.3% in 2026 from 7% in 2025.
- Suggestion: According to World Bank Director Paul Procee, India should focus on private sector-led growth and integrating youth into the workforce for economic strengthening.
Potential Impact of the Report
- Pressure on Fiscal Position: To avoid high oil prices, if the government cuts excise duty or increases subsidies, the goal of 'fiscal consolidation' could be affected.
- Reduction in Remittances: 38% of India's total remittances come from Gulf countries. Instability in the labor market there will lead to a decrease in foreign funds coming to India.
- Rupee and Current Account Deficit: Lower foreign exchange inflows and expensive imports could weaken the Rupee and increase the Current Account Deficit (CAD).
- Increase in Costs: Rising costs of raw materials and fuel for industries may lead to a decline in domestic demand.
Conclusion
This report by the World Bank is a wake-up call for India. Although the Indian economy remains strong due to internal reforms and policy buffers, global geopolitical tensions and energy insecurity are hindering its pace of growth. In the coming times, India's economic stability will depend on how much it diversifies its import sources and how much private investment it can attract.