GST 2.0 Reforms: Two-Slab Structure Introduced Alongside Major Rate Cuts

At its 56th meeting, the Goods and Services Tax (GST) Council approved a sweeping overhaul of the indirect tax framework, marking the next phase of GST reforms. A simplified two-slab rate structure—5% and 18%—was introduced, replacing the earlier multi-tiered system. Additionally, a 40% "demerit rate" will apply exclusively to sin and luxury goods, streamlining what has been an evolving indirect taxation regime over the past eight years.

Purpose and Vision of GST 2.0

The restructured GST framework is aimed at easing the burden on ordinary citizens while enhancing economic efficiency. The reforms are designed to:

• Lower the tax burden on essential items and services used by the common people.
• Reduce the number of tax slabs for greater simplicity and clarity.
• Address working capital constraints for businesses.
• Improve operational efficiency by enabling automated registrations and refunds.

The GST Council’s decision reflects a broader effort to make the tax regime more people-centric, business-friendly, and predictable.

Implementation Timeline and Governance

All revised GST rates—except those related to tobacco—will come into effect starting September 22, coinciding with the first day of Navratri. Despite initial concerns raised by some states over potential revenue losses, the council meeting, chaired by Finance Minister Nirmala Sitharaman and attended by representatives from 31 states and Union Territories, reached a consensus in a single day.

Structural Changes: Two-Slab and Demerit System

The previous slab structure of 5%, 12%, 18%, and 28% has now been rationalised. The new system consists of:

• A lower slab of 5% for essential goods and services.
• A standard slab of 18% for most other taxable items.
• A 40% demerit slab designated exclusively for sin and super-luxury goods.

This streamlining aims to eliminate complexities like the inverted duty structure and reduce litigation and compliance-related disputes.

Focus on Household and Daily-Use Goods

Several key consumer goods and household items have seen significant tax reductions under the 5% slab, offering direct benefits to middle-class families and daily wage earners:

• Essential packaged foods such as butter, cheese, juices, coconut water, pasta, and nuts now attract 5% GST.
• Household products including soaps, shampoos, hair oil, bicycles, and kitchenware have also been moved to the 5% category.
• Widely consumed food products such as ultra-high temperature milk, paneer, chapatis, khakra, and pizza bread are now GST-exempt.

Healthcare and Essential Services: Major Relief

The reforms provide critical tax relief in the healthcare sector:

• GST on medical essentials like gauze, bandages, diagnostic kits, and oxygen equipment has been reduced from 12% to 5%.
• A set of 33 life-saving drugs has been exempted entirely from GST.
• Spectacles for vision correction will now attract only 5%, down from 28%.
• Health and life insurance products—including term, ULIP, endowment, and family floater policies—are now fully GST-exempt.

White Goods and Automobile Sector Benefits

Substantial rate cuts in the white goods and automobile sectors aim to boost consumer spending and demand:

• Air conditioners, televisions, and dishwashers have moved from 28% to 18%.
• Small cars (petrol up to 1200cc/diesel up to 1500cc), motorcycles under 350cc, and all auto parts are now taxed at 18%.
• Commercial vehicles including buses, trucks, and ambulances will also see the benefit of the 18% slab.
• Electric vehicles remain taxed at a concessional 5%.
• Luxury vehicles, private-use helicopters, yachts, and high-end motorcycles (above 350cc) will fall under the new 40% demerit rate.

Insurance and Personal Services Reformed

The Council has extended tax relief to several personal and lifestyle services:

• Life and health insurance products are now GST-exempt.
• Services such as gym memberships, salons, barbershops, and yoga classes will now attract only 5% GST, down from 18%.

Key Sector-Specific Reforms

The reforms also deliver targeted relief for key industrial and agricultural sectors:

• Textiles: GST on manmade fibre has been reduced from 18% to 5%, and yarn from 12% to 5%, supporting employment-intensive segments.
• Fertilisers: Key inputs like sulphuric acid, nitric acid, and ammonia have seen their tax rate cut from 18% to 5%, lowering the cost of fertiliser production.

Financial Implications and State-Level Concerns

While some states expressed concerns about potential revenue losses estimated between ₹80,000 crore and ₹1.5 lakh crore, the Centre has projected a net fiscal impact of ₹48,000 crore based on 2023–24 consumption levels. Despite differing views, the states and the Centre reached consensus, prioritising broader economic and social goals.

Reception and Industry Response

The reforms have been met with widespread approval from industry stakeholders. Bodies like the Confederation of Indian Industry (CII) have termed the reforms "pathbreaking," expecting:

• Greater consumer demand through lower end prices.
• Reduced litigation and tax-related disputes.
• Improved compliance due to simpler rate structures.
• Boosts in job creation and supply chain efficiency.

Prime Minister Narendra Modi described the reforms as a “pro-people” move that will benefit farmers, MSMEs, the youth, and middle-class families, especially women-led households.

GST 2.0 and the Road Ahead

Looking forward, the new two-slab GST model seeks to align the tax system with India’s long-term growth goals while keeping it responsive to public needs. The 40% slab for sin and luxury goods ensures continued revenue from non-essential items, even as essential goods and services become more affordable for the average Indian. Over time, this structure is expected to provide greater stability, transparency, and inclusivity in India’s tax system.

Mounting Pressures on India’s Export Landscape

India''s merchandise exports are currently facing significant headwinds, most notably a major tariff escalation by the United States, which has imposed a 50% levy on a substantial share of Indian goods. This is particularly concerning given that the US constitutes nearly one-fifth of India’s export market. The tariff move, which undermines global trade norms under the World Trade Organization (WTO), arrives at a time when India''s overall share in global exports has remained largely stagnant, despite some earlier advances.

Tracing India''s Export Journey: Gains, Stagnation, and Missed Potential

·       India’s export trajectory has seen phases of rapid expansion followed by prolonged stagnation. From the early 1990s through to 2010, India witnessed robust growth in its export-to-GDP ratio, which climbed from 7.1% in 1990 to 20.4% in 2010. This growth was fuelled by globalisation, domestic reforms, and a simultaneous surge in both merchandise and services exports.

·       However, this momentum did not continue into the next decade. Between 2010 and 2020, India’s export-to-GDP ratio fell to 17.7%, only to recover marginally to 21.2% by 2024—levels similar to those recorded in 2016. In terms of global merchandise export share, India has increased its presence from 0.51% in 1990 to 1.81% by 2024, although most of this progress occurred in the earlier two decades.

·       On a sectoral level, agriculture has seen moderate gains, increasing its global share from 0.85% in 1990 to 2.22% in 2024. Fuel and mining exports have expanded more sharply, from 0.32% to 2.62%, primarily driven by petroleum products. In manufacturing, although the sector has tripled its global share to 1.73%, this is still considered underwhelming. Nonetheless, pockets of strength remain in textiles (5.77%), pharmaceuticals (2.56%), and steel (2.64%).

·       By contrast, services exports have outperformed goods. From holding 2.9% of the global services export market in 2010, India now commands a 4.2% share in 2024. This growth has been largely powered by sectors such as IT-BPM, telecom, and business services, while many other service categories continue to underperform.

Core Structural Constraints and Emerging Global Risks

·       India’s export challenge is no longer simply about external demand—it reflects deeper structural issues. The recent tariff shock from the United States highlights the weaponisation of trade policy and presents a severe threat to India''s most lucrative market. Combined with a wider global slowdown, this could sharply reduce demand for Indian exports.

·       Beyond external shocks, India''s declining merchandise export share suggests eroding competitiveness. High input costs, inadequate logistics infrastructure, and complex regulatory processes hinder the growth of export sectors. Compounding the problem is India’s increasing reliance on services exports, which now contribute more than twice the value of merchandise exports. Yet this services dominance is built on a narrow base: IT/ITES form the core, with telecom and business services accounting for around 40% of total services exports. Other areas remain significantly underdeveloped.

·       In manufacturing, competitive strength is limited to a handful of industries such as textiles, pharmaceuticals, steel, chemicals, and telecom equipment. High-value manufacturing sectors—electronics, precision engineering, advanced materials—continue to be underrepresented, curtailing India’s potential in global value chains.

·       External risks also loom large. The global trend towards protectionism, the rise of tariff and non-tariff barriers, and strategic shifts such as reshoring and nearshoring are redefining trade flows. Moreover, the weakening of the WTO’s dispute resolution system has curtailed India’s ability to contest such actions, reducing its recourse in international trade disputes.

Recent Measures to Address Export Constraints

·       India has rolled out several initiatives to address its export bottlenecks. The flagship Export Promotion Mission (EPM) launched under the 2025 strategy includes sector-specific programmes such as Niryat Protsahan, which aims to ease credit availability for exporters, and Niryat Disha, which focuses on improving market access, branding, and logistics.

·       The Remission of Duties and Taxes on Export Products (RoDTEP) scheme has been expanded in 2025 to include sectors like steel, pharmaceuticals, and chemicals—even covering Domestic Tariff Area (DTA) units. This scheme is designed to refund previously non-rebatable central, state, and local taxes embedded in exports.

·       Additionally, the Export Promotion Capital Goods (EPCG) scheme has been simplified. Under 2025 reforms, compliance requirements have been eased, deadlines extended, and fees reduced for struggling industries seeking to import capital goods duty-free for export production.

·       To support agriculture, the BHARATI initiative has been launched by the Agricultural and Processed Food Products Export Development Authority (APEDA). This 2025 programme seeks to incubate 100 agri-food startups, leveraging AI-driven quality checks and blockchain-based traceability systems to enhance export readiness.

·       The creation of E-Commerce Export Hubs is another noteworthy step. These hubs provide essential warehousing, customs clearance, and logistics infrastructure. A raised courier export threshold further benefits MSMEs and small-scale exporters, facilitating their integration into global supply chains.

Consequences for Growth, Employment, and Economic Stability

·       A prolonged stagnation in exports poses serious risks to India''s broader economic trajectory. A slowdown in external trade growth will directly impact GDP, which is already heavily reliant on domestic demand. Export weakness also curtails employment opportunities, especially in labour-intensive manufacturing sectors such as textiles, leather, and light engineering, which traditionally serve as large job creators.

·       From a macroeconomic perspective, India’s rising import bill—especially in energy and electronics—combined with sluggish exports, could undermine the country’s balance of payments and external stability. Additionally, India’s diminishing role in global trade may weaken its geopolitical influence, reducing its leverage in international negotiations and trade agreements.

Strategic Priorities for a Renewed Export Push

·       To revive export momentum, India must take a multi-pronged approach. Enhancing the competitiveness of its manufacturing sector is crucial. This involves upgrading logistics infrastructure to bring costs down from the current 13–14% of GDP to the global benchmark of 8%. Reducing regulatory hurdles and integrating Indian firms more effectively into global value chains are equally important. Targeted investment in emerging sectors such as electronics, electric vehicles (EVs), green technologies, and semiconductors should form the bedrock of future industrial strategy.

·       India also needs to diversify its export markets. Reducing dependence on the US and European Union requires strategic expansion into under-tapped regions such as Africa, Latin America, and ASEAN countries. This can be supported by leveraging free trade agreements already in place (such as those with the UAE and Australia) and fast-tracking negotiations with key partners like the United Kingdom.

·       In services, the narrow IT-centric base must be broadened. Potential lies in developing sectors such as healthcare, education, tourism, financial services, and creative industries, all of which can contribute meaningfully to export revenues.

·       Policymakers must also focus on institutional and policy frameworks. India should play an active role in advocating for WTO reform, while simultaneously strengthening bilateral and multilateral trade agreements. Incentivising research and development, along with encouraging quality and standards compliance among MSMEs, will be vital for long-term export growth.

·       In agriculture and fuels, the shift must be towards value-added exports. This includes moving from the export of raw commodities to branded, processed agricultural goods and promoting higher value addition in the petrochemicals sector.

Conclusion

India’s export sector is facing a dual challenge of external trade disruptions and internal inefficiencies. While global shocks such as tariffs and protectionism are beyond its control, much of the stagnation also stems from eroded domestic competitiveness. Reinvigorating exports will require deep structural reforms in manufacturing, a strategic reorientation of markets, and a broader base of services exports. Only through such a comprehensive strategy can India regain its export momentum and secure its place in the rapidly evolving global trade architecture.

Debate on Exceeding the 50% Reservation Limit in India

The ongoing discourse around the 50% reservation ceiling in India has gained renewed momentum amid fresh legal challenges and political demands. With petitions before the Supreme Court and proposals such as an 85% reservation in Bihar, the debate has reignited longstanding tensions between affirmative action policies and the constitutional principles of equality.

Revisiting the Reservation Framework

·       At the heart of this debate is the question of whether the State should be allowed to exceed the judicially determined cap of 50% on reservations in public education and employment. The issue has become increasingly contentious as various social and political groups demand a reassessment of how benefits are distributed, both in terms of percentage and reach.

·       The constitutional framework allows for positive discrimination through Articles 15 and 16. These provisions guarantee equality before the law and equal opportunities in public employment while simultaneously empowering the State to make special provisions for the advancement of socially and educationally backward classes, as well as Scheduled Castes (SCs) and Scheduled Tribes (STs).

Currently, at the central level, reservations are allocated as follows:

• OBCs: 27%
• SCs: 15%
• STs: 7.5%
• Economically Weaker Sections (EWS): 10%

This aggregates to a total reservation share of 59.5%, which already surpasses the 50% cap. However, this has been rationalised on the grounds that the EWS quota targets a distinct category not covered under the "backward classes" umbrella.

Judicial Landmarks Shaping the Cap

·       The reservation ceiling has been significantly shaped by the judiciary, which has attempted to balance formal equality—where every citizen is treated alike—and substantive equality, which promotes equity through affirmative action.

·       In Balaji v. State of Mysore (1962), the Supreme Court asserted that reservations must stay within "reasonable limits," thereby proposing the 50% threshold. The State of Kerala v. N.M. Thomas (1975) case, however, redefined the interpretation of equality by noting that reservations are not exceptions but extensions of the right to equality.

·       The landmark Indra Sawhney v. Union of India (1992) decision upheld the 27% quota for OBCs while explicitly affirming the 50% ceiling. This case also introduced the concept of the ‘creamy layer’—a mechanism to exclude the more affluent within OBCs from reservation benefits.

·       The 2022 verdict in Janhit Abhiyan v. Union of India validated the 10% EWS quota, emphasizing that the 50% ceiling applies specifically to reservations for backward classes, and not to economically weaker sections.

·       Most recently, in State of Punjab v. Davinder Singh (2024), a seven-judge Constitution Bench stressed the importance of implementing creamy layer provisions even within SC and ST categories, a move that could significantly alter the existing framework of reservations.

Rising Demands and Emerging Complexities

·       The present demands for exceeding the reservation cap are not merely political, but are also backed by calls for better demographic representation and data-driven policymaking. Some political leaders argue that the percentage of reserved seats should correspond to the actual population share of backward classes, which, according to estimates, is significantly higher than 50%. These arguments have intensified demands for a comprehensive caste census to generate reliable data on population and social backwardness.

·       Adding another layer to the debate is the skewed distribution of benefits within reserved categories. The Rohini Commission’s findings revealed that approximately 97% of OBC reservation advantages have been captured by just 25% of eligible castes, while nearly 1,000 OBC communities have seen little to no representation. Parallel concerns exist within the SC and ST categories, prompting calls for sub-categorisation to ensure equitable access across different groups.

·       A critical point of contention is the absence of a creamy layer filter for SCs and STs. While this mechanism exists for OBCs, its lack for other groups has led to claims that relatively well-off sections monopolise the benefits, leaving more vulnerable sub-groups excluded. On the other hand, opponents of this idea argue that excluding the creamy layer could be counterproductive, especially since many SC and ST positions remain vacant due to systemic recruitment failures rather than saturation of beneficiaries.

·       Indeed, government records suggest a significant backlog of vacancies in reserved positions—estimated to range between 40% and 50% across SC, ST, and OBC categories. These unfilled posts indicate structural inefficiencies in recruitment and capacity-building mechanisms, rather than a lack of eligible candidates.

Navigating the Balance Between Equality and Social Justice

·       The broader dilemma remains one of balancing two competing constitutional ideals: ensuring equality of opportunity for all citizens, and delivering social justice to historically disadvantaged communities. Expanding reservations beyond the 50% limit is often seen as diluting meritocracy and eroding the principle of equal treatment. Yet, persistent underrepresentation of marginalized groups suggests that affirmative action policies, in their current form, may not be adequately meeting their intended objectives.

·       Experts and policy analysts have proposed several reforms to recalibrate the system without abandoning its foundational goals. These include sub-categorisation within OBC and SC/ST communities to prevent monopolisation of benefits, and the development of a “two-tier” approach that prioritises the most disadvantaged within each category.

·       Furthermore, many advocate for a shift in focus from reservations alone to broader socio-economic development strategies. This includes enhanced investment in skill development, education, and job creation, which would reduce the excessive reliance on public-sector reservations as the primary route for social mobility.

·       Ultimately, the debate on whether to breach the 50% reservation limit is not merely a legal or political question—it is a deeper examination of how India conceptualizes fairness, equity, and inclusion in a rapidly evolving socio-economic landscape.

UGC Draft Undergraduate Curriculums: Core Features and Federal Objections

The University Grants Commission (UGC) has recently circulated draft undergraduate curriculum frameworks for public consultation. These proposals, intended to align with the National Education Policy (NEP) 2020, have received pushback from certain Opposition-ruled states, most notably Karnataka and Kerala. Both states have established expert committees to examine the drafts and prepare official responses. Although the UGC has invited feedback from across the country, the resistance from these states underscores growing concerns over federal balance, academic autonomy, and the ideological tone of higher education content.

The Learning Outcomes-Based Curriculum Framework (LOCF)

·       At the centre of the new drafts lies the Learning Outcomes-Based Curriculum Framework (LOCF), an educational model designed to reform higher education by emphasizing learning outcomes over mere content delivery. Developed by the UGC and similar bodies, LOCF aims to foster academic excellence through skill-based, flexible, and holistic education.

·       The LOCF approach defines education through key hierarchical components: "graduate attributes" outlining broad intellectual and ethical qualities; "programme outcomes" that specify what students are expected to achieve over the course of an entire degree; and "course outcomes" that describe the measurable achievements for individual subjects.

·       The intent is to move the focus of undergraduate learning away from rote memorisation and passive absorption of information, instead fostering active knowledge construction and real-world application. By recasting the teacher’s role from that of an instructor to a facilitator, the framework encourages students to take ownership of their learning journey. LOCF also prioritises essential 21st-century skills such as critical thinking, problem-solving, and analytical reasoning, preparing students for a technology-driven and knowledge-based economy.

·       In doing so, it seeks to increase employability while ensuring holistic development that encompasses not just academic proficiency but also values, ethics, and a commitment to lifelong learning.

Key Elements of the UGC’s Proposed Undergraduate Framework

·       The UGC’s new draft LOCFs cover nine subjects: anthropology, chemistry, commerce, economics, geography, home science, mathematics, physical education, and political science. These curriculums are framed around clearly defined learning outcomes and are meant to deliver not only conceptual knowledge but also practical and interdisciplinary skills.

·       These proposed courses support the NEP 2020 vision by promoting flexible, four-year multidisciplinary undergraduate programmes with multiple exit and entry points. A key feature of the drafts is the integration of Indian Knowledge Systems (IKS) into mainstream higher education, reflecting an effort to harmonise traditional Indian scholarship with modern academic frameworks.

·       For instance, mathematics electives include topics like ‘Kala Ganana,’ a course that explores India’s timekeeping traditions through its lunar, solar, and lunisolar calendars. Another course, ‘Philosophy of Indian Mathematics,’ introduces students to ancient Indian texts such as the Vedas, Vedangas, Puranas, and Darshanas, recognising these as foundational sources of mathematical and philosophical knowledge. The aim is to offer a fusion of traditional insights with contemporary scientific and analytical learning.

Emphasis on ‘Bharatiya’ Knowledge Systems

·       A distinguishing feature of the new draft LOCFs is their deliberate emphasis on Indian Knowledge Systems across multiple disciplines. In chemistry, for example, a new unit under "food chemistry" introduces students to traditional Indian dietary principles derived from Ayurveda. Suggested texts for this course include works like Ayurvedic Cooking for Self-Healing.

·       In commerce, a new course has been proposed on Indian management practices, drawing from sources such as the Bhagavad Gita, Ramayana, and Vedantic philosophy. These components are meant to supplement rather than replace modern management theories, creating a hybrid model of learning.

·       While earlier LOCFs—issued since 2019 under the Choice-Based Credit System (CBCS)—did not feature such content, the rollout of NEP 2020 has prompted a revision that integrates more indigenous perspectives. Under NEP, a future Higher Education Commission of India (HECI) will serve as the authority responsible for formulating outcome-based frameworks, although this body has not yet been formally constituted.

State-Level Opposition to the Draft Curriculums

·       The proposed curriculum has attracted sharp criticism from opposition-ruled states, particularly Kerala and Karnataka. Kerala’s Higher Education Minister dismissed the drafts as “unscientific,” “obsolete,” and ideologically skewed towards Hindutva narratives. Experts from the state have questioned the inclusion of references such as "Ram Rajya" in the commerce curriculum under corporate social responsibility topics. They have also criticised the political science draft for recommending The Indian War of Independence by V. D. Savarkar as essential reading, alongside the introduction of a separate elective focused on Savarkar’s ideology.

·       Karnataka’s Higher Education Minister has echoed these concerns, alleging that the draft frameworks reflect central government ideologies and represent an infringement on the academic autonomy of state governments. The state has expressed objections to what it sees as unilateral attempts by the UGC to influence or standardise curricula across diverse regional and educational contexts.

·       In response, the UGC has clarified that while it provides national-level academic guidelines, universities retain full autonomy to adapt, modify, or redesign individual modules according to their own institutional needs and regional relevance. The Commission also pointed out that during earlier LOCF implementations, several universities—including the University of Kerala—had already revised their courses in alignment with UGC recommendations, signalling a precedent for cooperative adaptation rather than enforced conformity.

Conclusion

The UGC’s new draft undergraduate curriculums represent a significant attempt to reframe higher education in India around learning outcomes, interdisciplinary flexibility, and the inclusion of indigenous knowledge systems. While the integration of Indian traditions into modern education has been welcomed in some quarters as a move towards cultural rootedness, the objections from Kerala, Karnataka, and other opposition-led states highlight underlying tensions over federalism, academic freedom, and ideological neutrality in education policy. As the consultation process continues, the final shape of the curriculum will depend not only on academic merit but also on the resolution of these broader political and constitutional concerns.

Incentive Scheme to Promote Critical Mineral Recycling

·       The Union Cabinet has given its approval to an Incentive Scheme amounting to ₹1,500 crore, aimed at establishing domestic recycling capacity for the separation and recovery of critical minerals from secondary sources. This scheme forms an integral part of the National Critical Mineral Mission (NCMM), which seeks to strengthen domestic capabilities and enhance supply chain resilience for critical minerals.

·       The scheme will be implemented over a six-year period, beginning in the financial year 2025–26 and continuing until 2030–31. With a total financial outlay of ₹1,500 crore, the initiative targets the development of a sustainable ecosystem for critical mineral recycling. Eligible feedstock under the scheme includes electronic waste (e-waste), Lithium-Ion Battery (LIB) scrap, and other forms of scrap distinct from e-waste and LIB.

·       The beneficiaries of the scheme will include both large, well-established recyclers and smaller or emerging recyclers, including start-ups. To foster inclusivity and encourage participation by new entrants, one-third of the total financial outlay has been reserved specifically for small recyclers.

·       Investments eligible for support under this scheme encompass the establishment of new recycling units as well as the expansion, modernization, and diversification of existing facilities. However, the incentive is strictly targeted at the recycling value chain engaged in the actual extraction of critical minerals, and not at operations limited to the production of black mass.

·       Incentives under the scheme include a 20% capital subsidy on the cost of plant and machinery for those projects that begin production within the defined timeline. An additional operational subsidy, based on incremental sales, will be disbursed in two tranches—40% in the second year and 60% in the fifth year—subject to the fulfillment of defined sales benchmarks.

·       To ensure widespread participation and equitable distribution of benefits, the total incentive available per entity has been capped. Large entities are eligible for a maximum of ₹50 crore, while small entities can avail up to ₹25 crore. The operational subsidies are further limited to ₹10 crore for large entities and ₹5 crore for smaller participants.

·       Through the scheme, the government aims to establish a minimum of 270 kilotons of annual recycling capacity, leading to the production of approximately 40 kilotons of critical minerals each year. This is expected to attract investments worth ₹8,000 crore and generate nearly 70,000 direct and indirect employment opportunities.

Securities Appellate Tribunal (SAT)

In a recent legal move, the US-based trading firm Jane Street Group has approached the Securities Appellate Tribunal (SAT) to contest an order by the Securities and Exchange Board of India (SEBI) in connection with a suspected case of market manipulation.

About the Securities Appellate Tribunal

·       The SAT is a statutory and quasi-judicial body established under the Securities and Exchange Board of India Act, 1992. It primarily adjudicates appeals against the decisions or orders issued by SEBI or by its adjudicating officers. With jurisdiction extending across India, the SAT is headquartered in Mumbai.

·       Besides SEBI-related appeals, the SAT also hears cases involving orders from the Insurance Regulatory and Development Authority of India (IRDAI) and the Pension Fund Regulatory and Development Authority (PFRDA), provided such matters have been filed before the Tribunal.

·       Any individual or entity adversely affected by SEBI’s actions—including market participants, listed companies, financial intermediaries, or investors—can appeal to SAT.

Composition and Eligibility

The Tribunal comprises one Presiding Officer along with a varying number of judicial and technical members, as determined by the Central Government.

The eligibility criteria for these roles are as follows:

• Presiding Officer must be a retired or sitting judge of the Supreme Court, the Chief Justice of a High Court, or a High Court judge with at least seven years of judicial service.
• Judicial Members must have served as High Court judges for a minimum of five years.
• Technical Members must be either:
• Secretaries or Additional Secretaries in the Central or State Government; or
• Individuals with a proven track record, integrity, and a minimum of 15 years’ experience in financial sectors such as securities markets, insurance, pension funds, or commodities.

The Central Government appoints the Presiding Officer and Judicial Members in consultation with the Chief Justice of India or their designated nominee.

Tenure and Powers

·       All members, including the Presiding Officer, are appointed for a term of five years, with eligibility for reappointment for an additional term of up to five years. However, no member may hold office beyond the age of 70.

·       As a quasi-judicial authority, SAT holds powers similar to a civil court, including the authority to summon witnesses, record testimonies under oath, receive evidence, and mandate the production of relevant documents.

Appeals from SAT

Any person dissatisfied with SAT''s ruling may appeal to the Supreme Court of India. However, such appeals are restricted strictly to questions of law.

Unique Disability ID (UDID) Card

·       As per recent data, less than 40% of India’s estimated population of Persons with Disabilities (PwDs) have been issued a Unique Disability ID (UDID) Card, despite its pivotal role in accessing a range of government benefits.

·       The UDID card serves as a standardized, nationwide identification document for PwDs. Mandated under the Rights of Persons with Disabilities (RPwD) Act, 2016, the card can be issued by the hospital in the home district of the PwD or by the medical facility where the person is receiving treatment.

·       Comprising 18 alphanumeric characters, the UDID has a defined structure: the first two characters denote the state code, followed by two for the district code, one for the CMO code, two for the type of disability, four for the year of birth, six for a running serial number, and a final checksum character for added security.

The UDID card is color-coded to reflect the severity of disability:

• White Card: For PwDs with disability below 40%
• Yellow Card: For those with 40% to 80% disability
• Blue Card: For those with disability above 80%

·       The UDID Project is an initiative of the Department of Empowerment of Persons with Disabilities under the Ministry of Social Justice & Empowerment. Its primary objective is to build a centralized national database of PwDs and issue a single, universally accepted identification card.

·       The initiative facilitates seamless data integration across village, block, district, state, and national levels to track both physical and financial progress of beneficiaries.

It aims to create a comprehensive, end-to-end system encompassing:

• Centralized web-based access to PwD data
• Online and offline application systems for Disability Certificates/UDID cards
• Medical evaluation to determine disability percentage
• Elimination of duplicate records
• Easy renewal and update of records
• Management Information System (MIS) for reporting
• Integration of benefits across government schemes
• Provision for new disabilities (currently 21 recognized types)

Karma Puja

·       The Prime Minister of India recently extended his greetings to the nation, particularly to the tribal communities, on the occasion of Karma Puja.

·       Also known as Karam or Karam Parab, Karma Puja is among the most significant festivals celebrated by tribal communities in India. The festival is intrinsically linked to agricultural cycles and involves reverence to the Karam tree, which symbolizes fertility, prosperity, and auspiciousness.

·       Karma Puja is observed with great enthusiasm in Jharkhand, Chhattisgarh, Odisha, Bihar, Madhya Pradesh, West Bengal, and Assam. It holds cultural and spiritual importance especially among tribal groups such as the Munda, Ho, Oraon, Baiga, Kharia, and Santhal.

·       The festival is celebrated on Ekadashi, the eleventh day of the lunar fortnight, typically falling between August and September.

·       In the week leading up to the festival, young women collect clean river sand and plant seven varieties of grains. On the day of the celebration, a branch of the Karam tree is ceremoniously planted in the community space or courtyard known as the akhra. Worship rituals are performed by a tribal priest, or pahan, accompanied by singing and dancing of traditional Karam songs. Devotees offer jawa (hibiscus flowers), and the festival concludes with the immersion of the Karam tree branch in a river or pond.

·       To seek divine blessings for their harvests, branches from sal or bhelua trees are often planted in farmlands following the festival, with the belief that the Karam Devta will safeguard their crops.

Self-Respect Movement

The year 2025 marks the centenary of the Self-Respect Movement, a radical reform initiative launched in Tamil Nadu in 1925 by social reformer E.V. Ramasamy, popularly known as Periyar.

What was the Self-Respect Movement?

·       The Self-Respect Movement was a transformative social movement aimed at dismantling caste-based oppression, patriarchy, and religious orthodoxy. Emphasizing rationalism, individual dignity, and equality over ritualism and social hierarchy, the movement sought to empower the marginalized, particularly the non-Brahmin communities.

·       Launched through the Tamil weekly Kudi Arasu (meaning “Republic”), the movement found its roots in the socio-political climate of early 20th-century Tamil Nadu. It drew inspiration from the work of earlier reformers such as Iyothee Thass, Jyotirao Phule, and B.R. Ambedkar. Initially supported by the Justice Party, the movement later evolved into the Dravidar Kazhagam under Periyar’s leadership.

Objectives and Features

·       The movement aimed to eradicate the entrenched caste system and Brahmanical dominance, promote social justice, and champion gender equality. Unlike previous reform efforts, it shifted the focus from elite non-Brahmins to the broader populace.

·       Key features of the movement included the promotion of “self-respect marriages” devoid of priests and caste rituals; advocacy for women’s rights, including widow remarriage, property rights, divorce, and abortion; and support for inter-caste unions. The movement offered a sharp critique of religious dogma, superstition, and male dominance in society.

·       Periyar and his followers rejected the Indian National Congress’s “religion-tinted nationalism” and criticized Gandhian orthodoxy for its conservative stance on caste and religion. They instead advanced a rationalist, Dravidian identity.

Significance

The Self-Respect Movement played a pivotal role in instilling a sense of dignity, political awareness, and social consciousness among the non-Brahmin masses. Its ideals laid the foundation for the emergence of Dravidian politics in Tamil Nadu and influenced the state’s progressive, welfare-oriented governance model.

Guidelines for Co-location of Anganwadi Centres (AWCs) with Schools

Context:

The Ministry of Education, in collaboration with the Ministry of Women & Child Development, has issued guidelines for the co-location of Anganwadi Centres (AWCs) with schools. This aligns with the vision of the National Education Policy (NEP) 2020, which highlights Early Childhood Care and Education (ECCE) as the foundational stage in a child’s learning journey.

Objectives of Co-location:

The co-location strategy is designed to prepare children for formal schooling and ensure a smooth transition from AWCs to Grade 1. It enables better use of existing infrastructure, strengthens collaboration between the education and nutrition sectors, and enhances learning and developmental outcomes.

Current Scenario:

Out of more than 14 lakh AWCs and 9.16 lakh schools with Grade 1, approximately 2.9 lakh AWCs are already co-located with schools.

Key Recommendations:

In urban areas, the distance between co-located schools and AWCs should not exceed 500 meters, while in rural areas the limit is set at 1 kilometer. Priority should be given to co-locating AWCs serving children from marginalized backgrounds, such as economically weaker sections, tribal communities, and migrant families. Preference should be given to schools with Grade 1 that do not yet have a Balvatika (pre-primary class). Co-located AWCs should also feature separate entry and exit points for safety and accessibility.

ECCE Initiatives:

·       Anganwadi services are delivered under Mission Saksham Anganwadi and Poshan 2.0, offering six core services: Supplementary Nutrition, Pre-school Non-formal Education, Nutrition and Health Education, Immunization, Health Check-ups, and Referral Services.

·       The Samagra Shiksha framework has made specific budgetary provisions to establish pre-school education facilities in government schools and to enhance the quality of AWCs situated within school premises.

Niveshak Didi Initiative

·       The Investor Education and Protection Fund Authority (IEPFA) has recently inaugurated Phase II of its flagship financial literacy initiative, Niveshak Didi, in Hyderabad.

·       The objective of Niveshak Didi is to enhance financial awareness and empower rural populations, with a special focus on women. The initiative operates on a “women for women” approach, recognizing that rural women are more comfortable engaging with female educators when discussing financial matters.

·       Launched by the Ministry of Corporate Affairs through IEPFA, the initiative plays a crucial role in addressing knowledge gaps and fostering financial confidence at the grassroots level.

·       The IEPFA was established in 2016 under the Companies Act, 2013. It is responsible for managing the Investor Education and Protection Fund, promoting financial literacy, and facilitating the return of unclaimed shares, dividends, and matured financial instruments.

·       In addition to Niveshak Didi, IEPFA undertakes various outreach programmes, including Niveshak Panchayat and Niveshak Shivir, all aimed at equipping individuals with the knowledge required to make informed financial decisions and protect their investments.

Solar Orbiter Mission

·       A recent study has highlighted new findings from the European Space Agency’s (ESA) Solar Orbiter Mission, which has successfully traced the origins of Solar Energetic Electrons (SEEs) that are emitted by the Sun.

·       The Solar Orbiter is a collaborative mission between ESA and NASA, launched in 2020. Its primary aim is to study the Sun and the heliosphere from close quarters and from positions outside the ecliptic plane.

·       Equipped with ten scientific instruments—six for remote sensing and four for in-situ measurements—the orbiter observes the solar corona, solar wind, high-energy particles, and electromagnetic fields.

·       Solar Energetic Electrons are high-energy particles generated by the Sun and are crucial to the dynamics of the space environment. These particles can originate either from intense solar flares—sudden, explosive outbursts from small solar regions—or from large-scale Coronal Mass Ejections (CMEs).

·       Between November 2020 and December 2022, the Solar Orbiter recorded over 300 instances of SEE bursts. The new findings reveal that different types of SEEs stem from distinct solar phenomena, offering fresh insights into their behavior and origin.

·       The mission holds great significance for enhancing the understanding of space weather, which can have critical implications for satellite operations, communications, navigation systems, and astronaut safety.

Graphite Spyware

In a recent development, the Trump administration has lifted a freeze on a previously stalled Biden-era contract with Paragon Solutions, an Israeli-founded firm known for its spyware technology called Graphite.

What is Graphite Spyware?

Graphite is a form of sophisticated spyware engineered to remotely infiltrate and assume control of mobile devices. Once embedded in a device, the spyware enables its operator to access a user’s personal data, such as photographs and messages, monitor encrypted communications on platforms like WhatsApp and Signal, and even track the user''s location in real-time. Additionally, it can covertly activate the mobile phone’s microphone, effectively converting the device into a remote listening tool.

Understanding Spyware

Spyware, by definition, is a type of malicious software designed to secretly gather information from a user''s computer or device and transmit it to external parties, typically without the user''s knowledge or consent. This harvested data, often of a personal or sensitive nature, is commonly monetized by selling it to advertisers, data brokers, or other malicious actors.

There are several major categories of spyware, each with its unique method of operation:

• Adware monitors user activity, collects behavioral data, and sells this information to advertisers or malicious third parties. It may also serve intrusive and malicious advertisements.
• Infostealer is a class of spyware that scans devices for specific types of information, including login credentials and instant messaging conversations, and transmits this data externally.
• Keyloggers, also known as keystroke loggers, belong to the infostealer category and work by recording every keystroke made by the user, enabling the extraction of passwords, personal messages, and other sensitive inputs.

Majorana Particles

In the quest to build stable quantum computers, scientists are increasingly focusing on Majorana particles, as their extraordinary properties hold the potential to overcome the persistent challenge of qubit decoherence. Recent experimental results in condensed matter physics, particularly in superconducting nanowires, have indicated signals that align with what are believed to be Majorana modes.

Understanding Majorana Particles:

·       A Majorana particle is a unique, hypothetical particle characterized by the rare trait of being its own antiparticle. Unlike conventional particles such as electrons or protons—which annihilate upon contact with their antimatter counterparts—Majorana particles exhibit perfect symmetry and do not destroy themselves when they meet. This distinct self-mirror nature sets them apart in the world of particle physics.

·       Originally proposed in 1937 by Italian physicist Ettore Majorana, these particles were first conceptualized in the realm of theoretical particle physics. However, contemporary exploration has shifted toward condensed matter systems, where they are investigated as quasiparticles rather than free particles.

Key Characteristics:

·       Majorana particles are electrically neutral, making them inherently difficult to detect using standard experimental techniques. They typically manifest in specialized materials such as superconductors and only under extremely low-temperature conditions. These particles do not exist freely in nature but rather appear within laboratory environments as quasiparticles.

·       A particularly fascinating property is that Majorana particles come in paired “halves,” with each half representing part of a single quantum state. What makes them so compelling for quantum computing is that these halves can be spatially separated, offering a form of natural protection against environmental noise and error. They also belong to an exotic category of particles known as non-Abelian anyons. When these particles are exchanged or “braided,” the overall quantum state transforms in a distinctive and predictable way, unlike traditional particles.

·       Despite several experimental claims, scientists remain cautious, as many of the signals that suggest the presence of Majorana particles can be mimicked by other effects in the system.

Applications:

Majorana particles hold considerable promise in multiple scientific domains. In quantum computing, they are being explored as the basis for topological qubits, which are inherently resistant to decoherence and environmental noise. In particle physics, the search continues for fundamental Majorana fermions, with neutrinos often considered a prime candidate. In condensed matter physics, they have spurred advances in superconductors, nanowires, and next-generation quantum materials.

Senna Spectabilis

Kerala has recently undertaken India''s first science-based, community-led eradication effort targeting the invasive tree species Senna spectabilis, a move considered a significant step toward the ecological restoration of South India''s forests.

About Senna spectabilis

·       Native to tropical regions of the Americas, Senna spectabilis is a fast-growing tree known by various common names, including Popcorn Bush Cedar, Archibald''s Cassia, Calceolaria Cassia, Golden Shower, Scented Shower, and Fetid Cassia. The tree typically grows between 7 and 18 meters in height and forms a dense, expansive canopy.

·       Although frequently cultivated for fuelwood, ornamental purposes, or shade in agroforestry systems, Senna spectabilis is now considered invasive in several regions. It forms thick, sterile thickets that outcompete native flora, alter soil chemistry, and deprive herbivorous wildlife of food sources. Notably, it resembles Kerala’s state flower, Cassia fistula (locally called kanikkonna), adding to the confusion during its identification.

·       The species is listed as "Least Concern" on the IUCN Red List. However, its aggressive growth patterns and ecosystem-disrupting nature have posed significant challenges for land and forest management in southern India.

What are Invasive Species?

·       Invasive species are organisms that, when introduced to new ecosystems, cause environmental or economic harm. These species often lack natural predators in the new environment, allowing them to proliferate unchecked. Their introduction may occur through various pathways such as ballast water discharge from ships, aquaculture escapes, or releases from aquariums.

·       The ecological consequences of invasive species are severe. They can drive native species to extinction, reduce biodiversity, and disrupt food webs and ecosystem functions.

Debrigarh Wildlife Sanctuary

·       Odisha’s Debrigarh Wildlife Sanctuary has received approval from the National Tiger Conservation Authority (NTCA) to be designated as India’s latest tiger reserve. This marks a significant achievement, stemming from a successful ecological transformation and a community-led conservation model.

·       Debrigarh, a protected area located in western Odisha near Sambalpur, is now formally recognized as a tiger reserve. Its ecological significance lies in its biodiversity, thriving eco-tourism initiatives, and a strong emphasis on community participation in conservation efforts. The sanctuary is bordered by the Hirakud Reservoir, enhancing its unique habitat diversity.

Historical Significance:

Debrigarh also holds historical relevance. During India’s colonial period, freedom fighter Veer Surendra Sai used its rugged terrain as a strategic base for resisting British rule. One of the notable landmarks inside the sanctuary, Bara Bakra, remains a pilgrimage site linked to his legacy. Initially declared a sanctuary in 1985, Debrigarh was officially approved as a tiger reserve in 2025.

Key Features:

·       The sanctuary spans 804 square kilometers, of which approximately 347 square kilometers constitute its core area. It includes adjoining wetlands and features a unique amphi-terrestrial ecosystem comprising forests, grasslands, and wetlands. The nearby Hirakud Wetland is a Ramsar site.

·       The fauna includes Indian bison (gaur), sambar, wild boars, leopards, wild dogs, and the rare four-horned antelope (chousingha), along with over 300 bird species—120 of which are migratory.

·       Innovative eco-tourism initiatives include India’s first dark sky tourism hub for stargazing, 53 safari vehicles, kayaking, cycling, and birding trails.

Significance:

·       Debrigarh''s transformation is considered a conservation success. The prey base has expanded significantly, gaur populations are growing, and nearly 40% of new animal herds are newborns. Importantly, the model emphasizes community involvement: around 400 families voluntarily relocated with full rehabilitation, and 155 villages are actively engaged as partners in conservation.

·       This sanctuary exemplifies a national model that integrates wildlife conservation, sustainable tourism, and heritage preservation, providing a replicable framework for other reserves across the country.

Sudan

Context: In a devastating natural disaster, a massive landslide in the Darfur region of Sudan has claimed the lives of over 1,000 people and completely flattened a mountain village in the Marra Mountains.

Geographic and Political Overview:

·       Sudan is a country located in northeastern Africa. Historically referred to as bilād al-sūdān or “land of the blacks” by medieval Arab geographers, Sudan gained independence in 1956. It is currently governed by a transitional administration headed by President General Abdel Fattah al-Burhan.

·       Strategically positioned at the crossroads of Africa and the Arab world, Sudan reflects a blend of Mediterranean and African cultural influences. Once the largest country in Africa, Sudan underwent territorial reduction following the secession of South Sudan in 2011.

·       The national capital is Khartoum, located at the confluence of the White Nile and Blue Nile rivers. Sudan shares its borders with Egypt, the Red Sea, Eritrea, Ethiopia, South Sudan, the Central African Republic, Chad, and Libya.

Key Physical Features:

·       Sudan’s geography is marked by diverse terrains. The Marra Mountains in Darfur form volcanic highlands with elevations reaching up to 3,000 meters. Other significant formations include the Nuba Mountains, characterized by isolated rocky hills known as inselbergs.

·       The Nile River system is the most dominant hydrological feature, with the White Nile and Blue Nile converging at Khartoum. The northern region consists of vast deserts, particularly the Qawz region with its rolling sand dunes. In the northeast, the Red Sea Hills rise prominently, while the south-central area features clay plains.

·       Soil types vary across the country, from fertile alluvial clays in the agriculturally significant Gezira plain to the sandy and rocky soils of the arid northern deserts.

Environment Audit Rules, 2025

The Ministry of Environment, Forest and Climate Change has introduced the Environment Audit Rules, 2025. These rules aim to institutionalize environmental auditing nationwide, enhancing compliance monitoring while simultaneously supporting ease of doing business across India.

Key Provisions:

·       The newly established Environment Audit Designate Agency (EADA) is responsible for certifying, registering, overseeing, and training environmental auditors.

·       Only Registered Environment Auditors (REAs) are authorized to conduct environmental audits. Their certification will depend either on the scrutiny of their qualifications and experience or through an examination. To ensure neutrality, auditors will be randomly assigned to projects.

·       REAs are tasked with sampling and analysis, assessing environmental damage and compensation, verifying green credit claims, and conducting audits under waste management and other environment-related laws.

A two-tier system has been introduced:

• Tier 1: Continuation of regulator-led compliance reviews by agencies such as CPCB, SPCBs, and regional offices of the ministry.
• Tier 2: Incorporation of audits led by REAs, bringing in independent expertise.

The ministry remains the primary oversight authority, while CPCB/SPCB/regional offices support inspections and implementation. A steering committee chaired by an Additional Secretary from the ministry monitors implementation and suggests reforms.

200th Birth Anniversary of Dadabhai Naoroji

Dadabhai Naoroji, often referred to as the "Grand Old Man of India" and the "Official Ambassador of India", was a pioneering figure in India’s freedom struggle. Born in 1825, he was an Indian Parsi scholar, trader, and politician whose contributions left a lasting impact on India’s social, economic, and political awakening. He was a founding member of the Indian National Congress (INC) and served as its president three times—in 1886, 1893, and 1906.

Key Contributions of Dadabhai Naoroji (1825–1917)

·       Social Reform: Dadabhai Naoroji was deeply committed to social upliftment, particularly in the area of education and community reform. He actively promoted women’s education, and in 1848, founded the Literary and Scientific Society, which, by 1849, had established six schools for girls—a remarkable step for its time. He also worked to reform social attitudes within his own Parsi community. To spread progressive and rationalist thought, he founded the newspaper Rast Goftar, which means "Truth Teller." In 1851, he co-founded the Rahnumai Mazdayasan Sabha, an organization dedicated to social and religious reform among Parsis.

·       Economic Contributions: Dadabhai Naoroji’s most influential work was in the field of economic critique of British colonialism. He is best known for formulating the ‘Drain of Wealth’ theory, which argued that British economic policies were systematically transferring India’s wealth to Britain. This drain, he argued, occurred through excessive taxation, inflated administrative costs, high salaries paid to British officials, pensions paid in England, and remittances. His major literary works include "Poverty of India" (1876) and "Poverty and Un-British Rule in India" (1901). These publications offered detailed statistical and economic analysis to expose the exploitative nature of British rule. He also used platforms like the East India Association to highlight the economic injustices being inflicted on India, making Indian issues visible in international forums.

Political Contributions

·       Naoroji was a moderate leader who believed in constitutional methods of political engagement, such as petitions, peaceful protests, and dialogue. He laid the foundations for early Indian nationalism by establishing the London Indian Society in 1865 and the East India Association in 1866, both of which played key roles in connecting Indian concerns with British lawmakers.

·       In 1892, Dadabhai Naoroji achieved a historic milestone by becoming the first Indian elected to the British Parliament, representing the Liberal Party from Finsbury Central. From this position, he consistently advocated for Indian self-governance and brought Indian grievances directly to the British political arena.

·       He also played a pivotal role in shaping the Indian National Congress’s political ideology. At the 1906 INC session, Naoroji made a landmark declaration by explicitly stating Swaraj (self-government) as the Congress’s political objective, giving the freedom movement a clear direction.

·       His influence extended beyond his own leadership. He acted as a mentor to several prominent Indian leaders, including Bal Gangadhar Tilak, Gopal Krishna Gokhale, and Mahatma Gandhi, guiding them during their formative years in public life.