India to grow at 6.7% for next two years: World Bank
- India is projected to sustain its position as the fastest-growing major economy, with a growth rate of 6.7% in both FY26 and FY27, according to the World Bank’s latest Global Economic Prospects (GEP) report, outpacing a global growth projection of 2.7% for 2025-26.
- The GEP report attributes India’s robust growth to a thriving services sector and a revitalized manufacturing base, driven by transformative government initiatives. From modernizing infrastructure to streamlining taxes, these measures are fueling domestic growth while positioning India as a cornerstone of global economic stability. As China’s growth slows to 4% next year, India’s ascent represents not just an economic milestone but a powerful narrative of innovation, ambition, and unmatched potential.
- Complementing the World Bank’s insights, the International Monetary Fund’s (IMF) latest World Economic Outlook (WEO) forecasts a similarly strong trajectory for India, with growth projected at 6.5% for both 2025 and 2026.
- These consistent predictions underline the nation’s stable economic fundamentals and its ability to navigate global uncertainties effectively. Together, the World Bank and IMF projections underscore India’s growing prominence as a key driver of global economic growth.
- The GEP report is a flagship publication of the World Bank that examines global economic trends and challenges, particularly in emerging markets and developing economies. The January 2025 edition marks a milestone, providing a comprehensive review of these economies’ progress since 2000 and their prospects for the next quarter-century.
- India’s growth story stands out prominently in the report. Key findings include a stable annual growth rate of 6.7% for FY26 and FY27, robust performance in the services sector, and strengthening manufacturing activity supported by government efforts to enhance logistics and tax reforms. Private consumption is set to increase due to a stronger labor market, improved access to credit, and lower inflation, while investment growth remains robust, buoyed by rising private investments, better corporate balance sheets, and favorable financing conditions.
- Globally, emerging markets and developing economies (EMDEs) now account for 45% of global GDP, up from 25% at the start of the century. India, alongside China and Brazil, has collectively driven approximately 60% of annual global growth since 2000, emphasizing the transformative role of these economies.
- India’s impressive economic performance is underpinned by visionary government schemes. Infrastructure projects like the PM GatiShakti National Master Plan and initiatives like Startup India and the Production Linked Incentive Scheme are transforming key sectors. These reforms are fostering innovation, enhancing manufacturing capabilities, and promoting financial inclusion, reflecting India’s commitment to building a resilient and globally competitive economy.
- India’s economic trajectory highlights its commitment to inclusive growth and innovation-driven development. With forward-thinking policies, a robust infrastructure, and digital transformation, the nation is redefining its global standing.
- As the fastest-growing large economy, with consistent growth projected at 6.7% over the next two fiscal years, India continues to outpace its global peers. By fostering entrepreneurship, enhancing manufacturing, and streamlining governance, India is setting an example of resilience and strategic progress.
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Centre implements steps to stabilize prices of essential commodities
- The central government has introduced a series of measures to stabilize prices and ensure the availability of essential food items.
- These efforts are aimed at maintaining consumer affordability while safeguarding farmer profitability. The strategy encompasses boosting domestic production, revising trade policies, and ensuring the alignment of market supplies with demand.
- Recent policy initiatives, coupled with favorable weather conditions, are expected to support the production of key crops during the 2024-25 agricultural year. Tur (arhar) production is projected to rise by 2.5%, reaching 35.02 lakh metric tons (LMT), up from 34.17 LMT last year.
- Similarly, Kharif Moong output is expected to grow by 20%, reaching an estimated 13.83 LMT.
- The government’s proactive steps have also bolstered onion production during the Kharif and late Kharif seasons, with Rabi onion sowing reported to be progressing well.
- Additionally, favorable climatic conditions have spurred optimism for a healthy potato yield this season, marking an improvement over the previous year’s output decline.
- These initiatives have started reflecting positively on the country’s inflation trends. Retail inflation fell to 5.22% in December 2024, down from 6.21% in October.
- Food inflation also declined, dropping from 10.87% in October to 8.39% in December. On a broader scale, the average retail inflation rate for 2024 stood at 4.95%, significantly lower than 6.69% in 2022 and 5.65% in 2023.
- This turnaround comes in the wake of challenges posed by two consecutive years of below-average monsoon rains. Adverse weather during the 2022-23 and 2023-24 periods had reduced agricultural output, including a sharp 20% decline in onion production and a 5% decrease in potato yields, contributing to price instability.
- To mitigate such challenges, the government has focused on incentivizing domestic pulse production.
- Procurement limits under the Price Support Scheme (PSS) for Tur, Urad, and Masur were removed for 2024-25, enabling 100% procurement at Minimum Support Prices (MSP). The distribution of high-quality seeds and cultivation campaigns in non-traditional pulse-growing areas further aim to increase output.
- To complement domestic efforts, the Centre extended duty-free import policies for pulses, including Tur, Urad, Masur, and Yellow Peas, until March 2025. Additionally, duty-free Chana imports were allowed from May 2024 through March 2025. Retail interventions, such as the sale of affordable dals under the Bharat brand, have effectively reduced the consumer price index (CPI) for pulses, which fell sharply from 19.54% in January 2024 to 3.83% by December.
- In the onion sector, the government procured 4.7 LMT during 2024-25, paying farmers higher prices compared to the previous year.
- Buffer stock onions were released at controlled rates to manage market prices, while export restrictions were imposed to ensure adequate domestic supply. Despite these restrictions, improved yields allowed onion exports to rise from 0.72 LMT in September 2024 to 1.68 LMT by December.
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Gaza ceasefire deal - India welcomes ceasefire and hostage release agreement in Gaza
- India expressed its support for the recently announced ceasefire and hostage release agreement between Israel and Hamas, with the Ministry of External Affairs (MEA) emphasizing the hope that the deal would facilitate the safe and sustained delivery of humanitarian aid to Gaza.
- “We welcome the announcement of the agreement for the release of hostages and a ceasefire in Gaza. We hope this will lead to a safe and sustained supply of humanitarian assistance to the people of Gaza,” the MEA said in a statement.
- Israel and Hamas reached a deal for a ceasefire in Gaza that mediators said would take effect on January 19 and include a release of hostages held there during 15 months of bloodshed that devastated the Palestinian enclave and inflamed the Middle East.
- The complex phased accord outlines a six-week initial ceasefire with the gradual withdrawal of Israeli forces from the Gaza Strip.
- Even as thousands across Gaza celebrated the ceasefire announcement, the territory’s civil defence rescue agency said that fresh Israeli strikes had killed at least seven people in the Gaza City area.
Over 46,000 people killed in war
- Israeli troops invaded Gaza after Hamas-led gunmen broke through security barriers and burst into Israeli border-area communities on October 7, 2023, killing 1,200 soldiers and civilians and abducting over 250 foreign and Israeli hostages.
- Israel’s air and ground war in Gaza has since killed over 46,000 people, according to Gaza health ministry figures, with hundreds of thousands of displaced people struggling through the winter cold in tents and makeshift shelters.
Key points of the deal:
- The pact follows months of negotiations conducted by Egyptian and Qatari mediators, with the backing of the United States, and comes just ahead of Trump’s presidential inauguration on January 20.
- During the initial 42-day ceasefire, 33 hostages would be released, including civilian women and female recruits, children, elderly people, as well as civilian ill people and wounded. Also in the first phase, Israeli forces would withdraw from Gaza’s densely populated areas to allow for the exchanges, as well as the return of the displaced people to their residences.Negotiators are working with Israel and Hamas on steps implementing the deal.Israel’s acceptance of the deal will not be official until it is approved by the country’s security cabinet and government.
- The agreement caps months of fruitless negotiations to end the deadliest war in Gaza’s history. If successful, the ceasefire will halt fighting that has razed much of heavily urbanised Gaza and displaced most of the tiny enclave’s pre-war population of 2.3 million.
- That in turn could defuse tensions across the wider Middle East, where the war has stoked conflict in the Israeli-occupied West Bank, in Lebanon, Syria, Yemen and Iraq, and raised fears of all-out war between arch regional foes Israel and Iran.
- In a latest development, Hamas agreed to a draft ceasefire plan, which aims to end the conflict. However, it still requires final approval from the Israeli Cabinet. The plan was developed with the help of the US, Qatar, and Egypt.
Background of the Conflict:
- The ongoing conflict between Israel and Hamas started in October 2023, with Hamas launching attacks on Israel, resulting in over 1,200 Israeli casualties.
- In retaliation, Israel launched military operations in Gaza, leading to more than 64,000 Palestinian deaths, according to reports.
- The conflict between Israel and the Palestinian people is rooted in a complex history of territorial disputes, wars, and political struggles that date back over a century.
Key events :
Creation of Israel (Pre-1948)
- Before 1948, the area known as Palestine was under British control following World War I and the defeat of the Ottoman Empire.
- Palestine had a Jewish minority and Arab majority, along with other ethnic groups.
- Tensions escalated after Britain supported the idea of establishing a "national home" for Jewish people in Palestine, particularly after World War II, when many Jews fled to the area due to the Holocaust.
- In 1947, the United Nations proposed a plan to divide Palestine into separate Jewish and Arab states. Jerusalem was to be an international city. The Jewish leaders accepted the plan, but the Arab states rejected it.
- In 1948, after British withdrawal, Jewish leaders declared the State of Israel. Israel was recognized by the UN in 1949.
- The 1948 Arab-Israeli War: Immediately after Israel’s declaration of independence, it was attacked by five Arab nations. This became known as the Arab-Israeli War of 1948. Israel survived and gained control over much of the territory, including parts of Jerusalem.
- The 1967 Six-Day War: In 1967, Israel fought Egypt, Syria, and Jordan in the Six-Day War. Israel launched a preemptive strike fearing attacks. By the end of the war, Israel had captured significant territories: Sinai Peninsula and Gaza from Egypt, Golan Heights from Syria, and West Bank and East Jerusalem from Jordan. This expanded Israeli control over areas that Palestinians view as part of their future state.
The West Bank and Gaza
- The West Bank and Gaza Strip are considered Occupied Palestinian Territories. The West Bank is home to about 3 million Palestinians.
- Israel controls the West Bank but allows the Palestinian Authority to govern most towns and cities there. Israeli settlements in the West Bank are considered illegal under international law, but Israel disputes this.
- Gaza is controlled by Hamas, a Palestinian militant group that governs the area since 2007, after defeating the rival Palestinian faction Fatah in a civil war.
- Jerusalem: Both Israel and Palestinians claim Jerusalem as their capital. Israel controls the entire city, including East Jerusalem, which it captured in the 1967 war. Palestinians seek East Jerusalem as the capital of a future Palestinian state.
What is the Draft Ceasefire Agreement?
- The draft ceasefire plan has three phases.
- Phase 1: Immediate Ceasefire and Hostage Release (6 weeks)
- A complete ceasefire will be implemented, halting all military operations.
- Israeli forces will withdraw from all populated areas of Gaza.
- 33 Israeli hostages, including women, the elderly, and the wounded, will be released by Hamas in exchange for hundreds of Palestinian prisoners held by Israel.
- Palestinian civilians will be allowed to return to their homes and neighborhoods, particularly in northern Gaza.
- Humanitarian aid will be provided, with 600 trucks delivering food and medical supplies daily.
- Phase 2: Further Hostage Exchange and Israeli Withdrawal
- In the second phase, Hamas will release the remaining living Israeli captives, mainly male soldiers.
- This release will be in exchange for more Palestinian prisoners.
- The full withdrawal of Israeli forces from Gaza will take place.
- Details of this phase will be negotiated during the first phase.
- Phase 3: Gaza Reconstruction and Final Hostage Return
- A major reconstruction plan for Gaza will begin.
- Any remaining deceased hostages will be returned to their families.
Why This Matters?
- The conflict has caused immense destruction and loss of life, particularly in Gaza.
- The ceasefire deal represents a potential turning point in the conflict but remains uncertain due to political disagreements within Israel.
- The deal is expected to halt the most deadly and destructive war between Israel and Hamas.
- It would bring respite to the Gaza Strip, where 90% of the population of 2.3 million have been displaced during nearly a year and a half of war and many are at risk of famine.
- The involvement of global actors like the US, Qatar, and Egypt shows the international significance of the issue.
- Hamas is a Palestinian armed group and political movement in the Gaza Strip.
- In 2023, it attacked Israel, killing about 1,200 people and taking more than 250 hostages.Hamas started as an offshoot of the Muslim Brotherhood in 1987. Its name means Islamic Resistance Movement.
- It is opposed to the existence of Israel on what it says is Palestinian land. It wants a state based on Islam in its place and across the occupied West Bank, East Jerusalem and Gaza.
- It has, however, signalled its willingness to accept an interim Palestinian state in just the West Bank, East Jerusalem and Gaza, without renouncing its claim to all of historic Palestine.
- Hamas has been the sole ruler in the Gaza Strip since 2007, after winning Palestinian elections and violently ousting rivals.Hamas''s most important allies are Iran (biggest backer in terms of funds, weapons and political support), Syria and Qatar.
Gaza Strip
- The Gaza Strip is a 41km (25-mile) long and 10km-wide territory between Israel, Egypt and the Mediterranean Sea.
- It was part of a proposed Arab state under the original UN partition plan in 1947.Gaza was then occupied by Egypt in the war that followed Israel''s creation, then captured by Israel during the 1967 Six-Day War.
- Israel withdrew its troops and about 7,000 settlers from the territory in 2005, though the UN still considers the land to be occupied.Gaza is one of the world''s most densely populated places.
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‘Ayurveda brings fresh hope for Alzheimer’s treatment’
- The integration of traditional wisdom with modern science is showing promise in the battle against Alzheimer’s disease and other neurodegenerative disorders.
- A new study from the Bose Institute in Kolkata has sparked optimism by demonstrating the potential of Ayurvedic medicine alongside chemically synthesized solutions to combat the damaging effects of amyloid beta aggregation, a critical factor in Alzheimer’s progression.
- Alzheimer’s disease is often associated with the buildup of amyloid proteins in the brain, which form toxic clumps that disrupt normal function.
- Professor Anirban Bhunia and his team have focused on addressing this issue using two innovative strategies.
- They synthesized small peptides to prevent the aggregation of these proteins and repurposed an Ayurvedic formulation called Lasunadya Ghrita (LG), known for its benefits in treating depression-related illnesses, to target the same problem.
- The team focused on characterizing the non-toxic compounds of LG and isolating a water-soluble extract, termed LGWE, to evaluate its effects.
- LGWE demonstrated remarkable capabilities by not only inhibiting the early formation of toxic amyloid aggregates but also disrupting the elongation stage of fibrillation, where harmful plaques tend to form. Most notably, the compounds exhibited greater efficacy in breaking down amyloid aggregates into smaller, non-toxic fragments compared to synthetic peptides, opening up new avenues for effective treatments.
- The findings gained recognition, highlighted the safety and stability of chemically designed peptides, showing their effectiveness in inhibiting and disaggregating amyloid beta proteins.
- Meanwhile, a complementary study underscored the unparalleled efficiency of LG compounds in mitigating the effects of amyloid toxicity.
- The research paints a hopeful picture for patients and families grappling with Alzheimer’s disease. It not only validates the therapeutic potential of Ayurveda but also underlines the importance of merging traditional medicine with modern advancements.
- By fostering a holistic approach to some of the most pressing healthcare challenges, this study has set the stage for further exploration into natural remedies that could improve the quality of life for millions worldwide.
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The Road to Affordable Green Hydrogen: A Path to Clean Energy
- Green hydrogen is often referred to as the “fuel of the future.” Alongside renewable energy sources and expanded electricity coverage across industries, green hydrogen is poised to play a critical role in reducing carbon emissions and combating global warming.
- Currently, the cost of producing green hydrogen, a clean and sustainable form of energy, is significantly higher than grey hydrogen, which dominates the market today.
- However, green hydrogen is essential to meeting the objectives of the Paris Agreement to limit global warming, owing to hydrogen’s abundance and its unique attributes. Unlike fossil fuels, green hydrogen can be used in gaseous or liquid forms, and its only by-product is water, not carbon dioxide (CO₂), a major greenhouse gas.
- According to an analysis published in ScienceDirect, a database of journal articles, the adoption of green hydrogen could reduce decarbonisation costs by 15% to 22%.
- Another report from the International Renewable Energy Agency (IRENA) further highlights that clean hydrogen could contribute 10% of the total mitigation measures needed to keep global warming under control.
- A study underscores green hydrogen as a long-term solution for achieving climate control targets.
- It projects a substantial reduction in production costs over time, driven by advancements in technology and economies of scale. Currently, the global production cost of green hydrogen ranges between USD 3.7 and USD 9.87 per kilogram, varying by region due to differences in input material and energy costs.
- The production process is carbon-neutral, involving the electrolysis of water powered by renewable energy sources like wind and solar.
Growth Projections
- Global demand for green hydrogen is expected to grow modestly until 2030, with significant acceleration after 2035. By 2050, demand could rise to 500 million metric tonnes per year, a dramatic increase from current negligible levels.
- Projections suggest that future demand will vary between 150 and 500 million metric tonnes annually, depending on regional needs and industrial adoption.
- Presently, most hydrogen production comes from grey hydrogen, which is derived from fossil fuels using a carbon-intensive process.
- Grey hydrogen production costs range from USD 1.23 to USD 2.47 per kilogram, making it far cheaper than green hydrogen.
- However, according to an analysis by Wood Consulting, a leading engineering consultancy firm, grey hydrogen production accounts for approximately 3% of global greenhouse gas emissions, underscoring the urgent need for a shift to cleaner alternatives.
Production Cost Projected to Come Down Significantly
- According to PwC Study , technological advancements, increased production scales, and ongoing research are expected to reduce green hydrogen production costs by nearly 50% by 2030. By 2050, these costs could fall further to a range of USD 1.23 to USD 1.85 per kilogram, making green hydrogen as affordable as grey hydrogen is today.
- A report by the Organisation for Economic Co-operation and Development (OECD) projects similar cost declines, driven by reductions in electrolyser and renewable energy costs.
- The levelised cost of hydrogen (LCOH) or the cost of the producing green hydrogen depends on electrolyser capital costs and electricity costs. Currently, electrolyser costs are high. According to the International Energy Agency, alkaline electrolysers cost USD 500-1,400/kW, PEM units cost USD 1,100–1,800/kW, and SOEC units cost USD 2,800-5,600/kW.
- However, these costs are expected to decrease significantly to USD 500/kW by 2030. Combined with renewable power at USD 0.02/kWh, green hydrogen production costs could reach USD 3 per kg.
Industry Applications and Future Opportunities
- Hydrogen is a key ingredient for fertiliser production with grey hydrogen being a key input for urea synthesis. This process alone contributes 3% of global greenhouse gas emissions.
- Grey hydrogen is also extensively used in steel manufacturing, methanol production, petrochemicals, and electronics.
- Replacing grey hydrogen with green hydrogen in these industries presents a significant opportunity for emissions reduction.
- Green hydrogen is also seen as a game-changer decarbonizing solution for other sectors, including transportation, shipping, power generation, and heating systems.
- Its potential further extends to providing energy independence in remote areas, where microgrids powered by green hydrogen can serve as reliable and sustainable energy sources.
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RBI introduces some changes to FEMA.
- The Reserve Bank of India (RBI) has introduced changes to the Foreign Exchange Management Act (FEMA) regulations.
- These modifications aim to facilitate cross-border transactions and strengthen the Indian rupee amid various economic pressures. The adjustments reflect India’s commitment to enhancing its global trade framework and promoting the use of the rupee in international transactions.
- The recent amendments allow residents outside India to utilise their balances in repatriable Indian rupee (INR) accounts for foreign investments.
- This includes foreign direct investment (FDI) in non-debt instruments. The changes were made to boost the Indian rupee’s position in the global market.
- Overseas branches of banks, authorised to deal in foreign exchange, can now open INR accounts for non-residents.
- This enables the settlement of current and capital account transactions with Indian residents. The move aims to enhance the flow of funds and promote economic activities involving the Indian rupee.
- Residents outside India can settle genuine transactions with other non-residents using balances in their repatriable INR accounts. This includes Special Non-resident Rupee Accounts and Special Rupee Vostro Accounts (SRVA). These accounts facilitate smoother transactions and provide a framework for investment and trade.
- Indian exporters can now open accounts in any foreign currency overseas. This change simplifies the settlement of trade transactions.
- Exporters can receive proceeds from exports and use these funds to pay for imports seamlessly. This flexibility is expected to enhance the competitiveness of Indian exporters in the global market.
- The RBI has signed Memorandums of About (MoUs) with central banks from countries such as the United Arab Emirates, Indonesia, and Maldives. These agreements aim to promote cross-border transactions in local currencies, thereby reducing reliance on the US dollar and enhancing bilateral trade relations.
- The introduction of the Special Rupee Vostro Account in July 2022 was a strategic move to encourage the use of the rupee for trade.
- Several foreign banks have since established SRVAs with Indian banks, indicating a growing acceptance of the rupee in international trade.
- In December 2023, the Foreign Exchange Management (Manner of Receipt and Payment) Regulations were revised.
- This allows cross-border transactions in all foreign currencies, including local currencies of trading partners. These revisions are intended to simplify and enhance the efficiency of international trade transactions.
- The changes to FEMA regulations represent step towards integrating the Indian economy with global markets. They aim to enhance the use of the rupee in international transactions and provide greater flexibility for non-residents and Indian exporters.
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Prospects for Children in 2025 – Building Resilient Systems for Children’s Futures” UNICEF Report
- The world is facing a new and intensifying era of crisis for children. Many of these crises – including climate change, conflict and economic instability – are closely interconnected.
- They reflect a world of rising geopolitical tensions and competition among nations, which are hindering the implementation of solutions.
- To uphold children’s rights and well-being, action is needed to rethink and strengthen systems. Systems approaches (i.e., approaches that go beyond mere service delivery) are essential to build resilience into every area of children’s lives, whether it is disaster preparedness frameworks that safeguard schools and communities, education systems that can adapt during emergencies, or inclusive health-care systems that respond to immediate needs while planning for future risks.
- The United Nations Children’s Fund (UNICEF) released a critical report titled “Prospects for Children in 2025 – Building Resilient Systems for Children’s Futures.”
- This report outlines the escalating crises affecting children globally, driven by climate change, economic instability, armed conflict, and digital inequality.
- The findings indicate that urgent actions are necessary to strengthen systems that protect children and ensure their access to essential services.
- The report puts stress on that 2025 will see increase in crises for children worldwide. Armed conflicts are at their highest levels in decades, impacting over 473 million children.
- This marks a troubling rise, with nearly 19% of children living in conflict zones, compared to about 10% in the 1990s. The consequences of these conflicts extend beyond immediate danger; children face displacement, starvation, disease, and severe psychological distress.
- The economic landscape for children is deteriorating. Governments are struggling to finance essential services due to persistent inflation, declining development assistance, and low domestic tax revenues. Approximately 400 million children reside in countries burdened by debt.
- This situation hampers investments in critical sectors like education and healthcare. In some African nations, debt servicing exceeds education spending, leading to reduction in resources available for child welfare.
- The report reveals that only 2.4% of multilateral climate finance is directed towards child-responsive initiatives. This lack of funding is eroding the climate resilience of essential services for children.
- To combat this, targeted financing is needed to restore services disrupted by climate events. The integration of child rights into national climate policies is crucial for ensuring that children’s needs are met during and after climate crises.
- Technological advancements are reshaping children’s lives, yet disparities in digital access persist.
- The emergence of digital public infrastructure (DPI) has the potential to provide equitable access to services. However, in least-developed countries, many children remain offline. In Africa, only 53% of youth aged 15-24 are connected to the internet. Notably, adolescent girls and children with disabilities face the greatest barriers to digital access
Key issues to watch in 2025
1) Geopolitics
- Children’s lives, rights and well-being are increasingly under threat in conflict. Over 473 million children — more than one in six globally — lived in areas affected by conflict in 2023, a number that is likely to have risen in 2024.
- The percentage of children affected by conflict has almost doubled to almost 19 per cent in 2024 from around 10 per cent in the 1990s.
- • Amid growing geopolitical rivalries and the paralysis of multilateral institutions, both state and non-state actors appear increasingly willing to flout international laws designed to protect civilian populations, with attacks on civilian infrastructure like schools and hospitals becoming ever more common.
- This unravelling of decades of efforts to safeguard civilians is taking a heavy toll on children. As well as the risks to their lives, children face displacement and the threat of starvation and disease. There are also substantial risks to their psychological wellbeing.
- Challenges to respect for legal norms in armed conflict reflect a weakening in the ability of multilateral systems to respond. Core mechanisms of the United Nations have faced escalating challenges, with the United Nations Security Council effectively deadlocked.
- United Nations peacekeeping and special political missions are also in steep decline. These issues reflect seismic power shifts at the global level.
- Strong legal frameworks foster an environment where compliance with child-rights law and international humanitarian law is non-negotiable and accountability inevitable. For these to be realised, international standards need to be translated into enforceable national law, policy and security-sector practice.
2) Economics
- Economic prospects in emerging markets are discouraging, with growth well below the 7 per cent target set in the Sustainable Development Goals (SDGs). A mix of pandemic scarring, climate shocks, and resource constraints means emerging markets’ growth prospects have fallen from historical averages of 5.6 per cent to just 4 per cent by 2026–2029.
- Governments’ coffers are being hit by a mix of weak tax revenues, declining aid and rising debt. Tax revenues of around 11 per cent of Gross Domestic Product (GDP) in many developing economies are
- lower than the 15 per cent considered necessary to fund basic services.
- Although Overseas Development Assistance (ODA) has hit record levels, it increasingly targets humanitarian crises rather than long-term development funding. And rising debt is creating unprecedented budget pressures. Developing countries now spend 14 per cent of government revenues on interest payments alone — double what they spent 15 years ago.
- Nearly 400 million children live in countries where debt distress hinders vital investments essential for their development and well-being. Among the 34 African Union countries with available data, 15 now allocate more to debt servicing than to education. Over 40 low-income countries
- globally spend twice as much on debt servicing as on health, including some countries with very large child populations. In social protection, debt service now consumes 11 times as much as social protection spending across developing countries.
- The failure to invest in children not only harms children’s lives today (and their lifetime prospects), but also undermines countries’ long-term capacity to repay their debts.
3) Environment and climate change
- The outlook for children is increasingly worrying in a world that is now on track to see global temperatures rise by at least 2°C by 2100. Children are disproportionately impacted by climate change due to their unique physiological and developmental characteristics. Children under five years of age bear 88 per cent of the global disease burden associated with climate change.
- Opportunities for progress for children are evident in four areas of governance — national planning, climate financing, business regulation and climate litigation.
- Revisions to Nationally Determined Contributions (NDCs) have potential to take stronger account of children’s critical vulnerabilities and needs. NDCs are expected to evolve to demonstrate how governments will increase both the pace and scale of ambition and advance implementation to achieve it.
- Financing mechanisms are critical enablers for the NDCs, but – despite progress at the 2024 Conference of the Parties of the United Nations Framework Convention on Climate Change (COP29) – financing needs are far from being met. Only 2.4 per cent of multilateral climate finance is characterized as being child-responsive, and additional and targeted finance is critical to address loss and damage.
- To address the critical intersection of climate action and child rights, action is needed to ensure national policy frameworks more explicitly incorporate child rights through dedicated commitments, timelines and funding allocations.
- On funding, climate finance should include earmarked funding for child-centred climate initiatives.
- On regulation, strengthening legally backed climate reporting and monitoring are key to effective climate action for children.
- 2025 presents crucial opportunities to make progress towards global climate goals. This means comprehensive and robust policymaking, adequate and equitable financing and investments, strong regulatory and accountability frameworks, and effective monitoring systems.
4) Technology
- Several digital trends are poised to shape our future in 2025 and beyond. Rapid advancements in emerging technologies will continue to shape all spheres of children’s lives from education to communication to participation in the digital economy.
- Amid rapid adoption around the world, Digital Public Infrastructure (DPI) can fundamentally shift how governments engage with citizens.
- DPI is sometimes compared to physical infrastructure: just as roads and railways connect people and allow them to access goods and services, DPI provides the basis for the large-scale delivery of digital public services, including for children and their families.
- DPI can play a crucial role in advancing children’s well-being by ensuring equitable access to essential services such as education, health care and social protection.
- For example, digital IDs linked to electronic civil registration and vital statistics (CRVS) systems can help people throughout their lives by providing a single source of identification across systems.
- Digital payment infrastructures can facilitate seamless disbursement of financial support for families and children, and reduce risks associated with theft or loss.
- DPI represents far more than a technological advance. It is becoming a critical enabler of inclusive digital transformation. It can also be central to providing effective digital governance, promoting rules that drive development, inclusion, trust, innovation, and respect for human rights.
- But DPI is not inherently inclusive. Persistent inequalities in digital access, particularly in the least developed countries, are a major barrier to ensuring DPI serves every child and community.
- While most young people are connected to the internet in high-income countries, only 53 per cent of youth (15–24-year-olds) are online in Africa. Adolescent girls are particularly affected, as are children with disabilities, with 9 out of 10 adolescent girls and young women (aged 15–24 years) offline in lowincome countries.
- DPI systems have immense potential to transform public services for children and families. In doing so, they must prioritise children’s rights and truly serve the best interests of every child.
- Key priorities include enabling seamless, safe and secure data exchange between health, education and social services to create a holistic support system for child development; factoring in the needs and sensitivities of vulnerable and marginalised groups; and empowering children, youth and their families through digital financial inclusion and literacy.
5) Global governance
- New and ongoing crises will continue to challenge the future of global governance. In 2025, nations and institutions must address the critical question of whether the global multilateral framework will unify to form a cohesive response to our shared challenges or fragment further, risking a loss of collective action.
- Progress for children requires stronger alignment between global and national priorities. Strengthening national systems and aligning them with global frameworks is central to achieving shared global goals in areas such as health, education, safety, poverty eradication and climate adaptation.
- Such alignment creates a foundation of resilience, by harmonising standards and approaches, pooling resources and integrating responses to crises.
- Robust national systems are key to ensuring that interventions can be brought to scale. They provide the infrastructure, governance and accountability required to expand successful initiatives nationally or even regionally. Well-functioning systems standardize processes and policies, enabling consistent and equitable implementation across diverse contexts while fostering innovation and adaptability.
- In 2025, nations and institutions must address the critical question of whether the global multilateral framework will unify to form a cohesive response to our shared challenges or fragment further, risking a loss of collective action. The direction we take will deeply impact efforts to protect children’s rights and well-being across the world.
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SC to hear pleas challenging constitutional validity of law on appointment of CEC, ECs
- A bench of Justices Surya Kant, Dipankar Datta and Ujjal Bhuyan was informed by advocate Prashant Bhushan, representing an NGO, the incumbent Chief Election Commissioner (CEC) Rajiv Kumar was set to superannuate on February 18, and a new CEC would be appointed under the new law, if the court didn''t intervene.
- The retirement of Chief Election Commissioner Rajiv Kumar in February 2025 has brought renewed attention to the Supreme Court regarding the validity of the Chief Election Commissioner and other Election Commissioners (Appointment, Conditions of Service, and Term of Office) Act, 2023.
- This legislation, which alters the appointment process for the Election Commission of India (ECI), is being scrutinised for potentially undermining the court’s authority and principles of institutional independence.
The law to regulate appointments of CEC, election commissioners
- On December 28, 2023, the President gave assent to the Chief Election Commissioner and Other Election Commissioners (Appointment, Conditions of Service and Term of Office) Bill, 2023.
- The Chief Election Commissioner and other election commissioners shall be appointed from amongst persons who are holding or have held a post equivalent to the rank of secretary to the government of India and shall be persons of integrity, who have knowledge of and experience in management and conduct of elections.
- A search committee headed by the Minister of Law and Justice and comprising two other members not below the rank of secretary to the government of India, shall prepare a panel of five persons for consideration of the selection committee, for appointment as the Chief Election Commissioner and other election commissioners.
- The Chief Election Commissioner and other election commissioners shall be appointed by the President on the recommendation of a selection committee consisting of:
- a) Prime Minister - chairperson
- b) Leader of Opposition in the House of the People - member
- c) A Union Cabinet Minister to be nominated by the PM - member.
- The Chief Election Commissioner and other election commissioners shall be paid a salary which is equal to the salary of a judge of the Supreme Court.
- The Chief Election Commissioner and other election commissioners shall hold office for a term of six years from the date on which he assumes his office or till he attains the age of 65 years, whichever is earlier.
- The Chief Election Commissioner and other election commissioners shall not be eligible for re-appointment.
- Where an election commissioner is appointed as Chief Election Commissioner, his term of office shall not be more than six years in aggregate as the election commissioner and the Chief Election Commissioner.
- The Chief Election Commissioner shall not be removed from his office except in like manner and on the like grounds as a judge of the Supreme Court.
Key issues in question
- A bench of Justices Surya Kant, Dipankar Datta and Ujjal Bhuyan was informed by advocate Prashant Bhushan, representing an NGO, the incumbent Chief Election Commissioner (CEC) Rajiv Kumar was set to superannuate on February 18, and a new CEC would be appointed under the new law, if the court didn’t intervene.
- Bhushan said the top court in its March 2, 2023 verdict set up a panel comprising the Prime Minister, the Leader of Opposition and the CJI to appoint the CEC and election commissioners (EC).
- However, under the new law the selection committee will comprise the Prime Minister, a Union Cabinet minister, the Leader of Opposition or the leader of the largest opposition party in Lok Sabha. They have removed CJI from the selection committee, submitted Bhushan.
- Judicial Authority vs Legislative Power: Justice Surya Kant emphasized that the core legal test lies in determining whether the legislative powers of Parliament can be used to dilute or circumvent binding judicial decisions under Article 141 of the Constitution.
- Conflict with Constitution Bench Judgment: Petitioners argue that the 2023 Act contravenes the Supreme Court’s March 2023 judgment in the Anoop Baranwal case, which mandated a diverse and independent selection committee for appointments to the ECI.
- The judgment was aimed at ensuring the ECI’s independence by eliminating the government’s exclusive control over appointments.
Changes introduced by the 2023 Act
- Revised Selection Committee: The Act replaces the Chief Justice of India with a Union Cabinet Minister nominated by the Prime Minister. This move is seen as tipping the balance in favor of the Executive.
Criticism from petitioners
- Advocate Prashant Bhushan argued that this change reintroduces government monopoly over the ECI’s appointments, contrary to the Constitution Bench’s intent.
- Senior advocate Gopal Sankaranarayanan called the law a threat to democracy, asserting that any such change in the ECI’s appointment process requires a constitutional amendment, not ordinary legislation.
Election Commissioners
- The first Chief Election Commissioner (Sukumar Sen) was appointed on March 21, 1950.
- Originally, the commission had only a Chief Election Commissioner. It currently consists of the Chief Election Commissioner and two Election Commissioners.
- Two additional commissioners were first appointed on October 16, 1989, but they had a very short tenure till January 1, 1990. Later, on October 1, 1993, two additional election commissioners were appointed.
- The concept of multi-member Commission has been in operation since 1993, with decision making power by majority vote.
- The Chief Election Commissioner can be removed from office only through impeachment by Parliament.
Election Commission of India
- The Election Commission of India (EC) is a permanent independent constitutional body created under Article 324 of the Indian Constitution.
- The EC was set up on January 25, 1950, on the eve of India becoming a sovereign democratic republic with its headquarters in New Delhi.
- EC is vested with the powers and responsibilities of superintendence, direction and control of the entire process of preparation and revision of electoral rolls for, and conduct of, elections to the houses of Parliament and Legislatures of the states and the Union Territories and of elections to the offices of President and Vice-President.
- Elections are conducted according to the constitutional provisions, supplemented by laws made by Parliament and rules and orders made thereunder.
- The major laws are:
- The Presidential and Vice-Presidential Elections Act, 1952.
- The Representation of the People Act, 1950.
- The Representation of the People Act, 1951.
- EC prepares, maintains and periodically updates (new registration, modification and deletion as per guidelines) the electoral rolls, registers political parties/candidates, supervises the whole process of conducting election, monitors the election campaigns, including funding and expenditure of candidates, maintaining Model Code of Conduct (MCC) to make the entire electoral process free fair democratic and accessible for all its stakeholders.
- It also facilitates coverage of the election process by the media, carries out the voter education and awareness measures, organises the polling stations/ booths where voting takes place, and oversees under stringent surveillance mechanisms the counting of votes and the declaration of results.
- All political parties are required to get themselves registered with the Election Commission. Based on performance criteria laid down in the Election Symbols (Reservation & Allotment) Order 1968, the EC grants recognition to political parties as national or state parties. It also decides disputes relating to splits/mergers of recognised political parties.
- At the state level, the election work is supervised, subject to overall superintendence, direction and control of the Commission, by the Chief Electoral Officer of the State, who is appointed by the Commission from amongst senior civil servants proposed by the concerned state government. He is, in most of the States, a full time officer and has a small team of supporting staff.
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Children in Syria continue to suffer brutal impact of unexploded ordnance: UN
- The UN Children''s Agency (UNICEF) said that Syrian children continue to suffer the brutal impact of unexploded ordnance (UXO) at an alarming rate, noting that in December alone, it received reports of 116 children killed or injured by UXO, an average of nearly four a day.
- "Over the past 9 years, at least 422,000 incidents involving UXO were reported in 14 Governorates across the country, with half estimated to have ended in tragic child casualties. Across Syria, children face this lurking, often invisible, and extremely deadly threat," UNICEF Communication Manager Ricardo Pires told a UN press conference via video link.
- "In December of last year alone, UNICEF received reports of 116 children killed or injured by UXO, an average of nearly four per day. This is believed to be an underestimate given the fluidity of the humanitarian situation on the ground," Pires said.
- Syria’s conflict broke out in early 2011 and left nearly half a million people dead and millions displaced, including many who are now refugees.
- The war caused wide destruction that will need tens of billions of dollars to rebuild.
- In the last nine years, at least 422,000 incidents involving unexploded ordnance (or UXO) were reported in 14 governorates across Syria, with half estimated to have ended in tragic child casualties. In December 2024, as many as 116 children were killed or injured by UXO, an average of nearly four per day.
- Over a decade of devastating conflict has left communities across Syria littered with deadly remnants of war, including an estimated 324,000 pieces of unexploded ordnance scattered across the country.
- The danger affects some five million children living in areas contaminated with the lethal explosives, for whom every step they take carries the risk of an unimaginable tragedy. For the displaced and those trying to return home, the peril of UXO is constant and unavoidable.
- The threat has only intensified since the fall of the Assad regime on December 8, as many weapons, including explosive weapons, have been left behind.
- Life-changing injuries and disabilities often mean children cannot return to school or might find it harder to access proper health care and face stigma.
- The UNICEF called for increased humanitarian demining efforts, mine-risk education and support for survivors.
UN human rights chief visits Syria
- The United Nations human rights chief Volker Turk called for a Syrian national reconciliation process to ensure justice for crimes committed over the past five decades of iron-fisted rule by the Assad family.
- President Bashar al-Assad was toppled by a rebel offensive in December 2024, ending 54 years of domination by his family.
- In the first visit ever by a UN rights commissioner to Damascus, Turk met with Ahmad al-Sharaa, who leads Hayat Tahrir al-Sham (HTS), the group leading the new authority in Syria.
- Turk called for the lifting of Western sanctions imposed on Syria over its years-long civil war, now that former leader Bashar al-Assad has been ousted and sent into exile.
- European countries and the United States imposed sanctions on Assad’s government shortly after the conflict started.
Syria crisis
- Less than a year after pro-democracy protests in March 2011 (which swept much of the Arab world in what was widely referred to as the First Arab Spring) led to a violent crackdown by the Syrian authorities.
- Teenagers were arrested for anti-government graffiti in the southern town of Daraa.
- The arrests sparked public demonstrations throughout Syria which were violently suppressed by government security forces. The conflict quickly escalated and the country descended into a civil war that forced millions of Syrian families to flee their homes.
- The crisis in the Syrian Arab Republic is extending into its fourteenth year – with more people than ever sliding into deeper poverty and 16.7 million people in need of humanitarian assistance and protection.
- After over a decade of conflict, Syria remains the world’s largest refugee crisis. Since 2011, more than 14 million Syrians have been forced to flee their homes in search of safety. More than 7.2 million Syrians remain internally displaced in their own country.
- Adding to the suffering, Syria is grappling with the aftermath of the catastrophic earthquakes in February 2023, which inflicted severe human and material damage.
- Approximately 5.5 million Syrian refugees live in the five countries neighbouring Syria — Turkey, Lebanon, Jordan, Iraq and Egypt. Germany is the largest non-neighbouring host country with more than 850,000 Syrian refugees.
- Over half a million people have fled Israeli airstrikes in Lebanon and crossed into Syria since late September, and there remains a steady flow of movement, with thousands of people driven across the border into Syria every day.
- President Bashar al-Assad, who rose to power in 2000 after the nearly three-decade authoritarian rule of his father, Hafez al-Assad, saw his regime collapse on December 8, 2024 under the weight of a rapid offensive by Hayat Tahrir al-Sham (HTS) and allied factions. He fled to Moscow and received asylum from his longtime ally
- Following the fall of the Bashar al-Assad regime, Syria has entered a period of profound uncertainty.
- Syria has a population of approximately 25 million. The country borders Turkey, Iraq, Jordan, Lebanon and Israel.
- The border with Israel comprises the Golan region of southwest Syria. Two-thirds of the territory has been occupied by Israeli authorities since 1967, and the remainder was occupied after the fall of the Bashar al-Assad regime in December 2024.
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