UPSC Issue at a Glance | Economy and healthcare in 2024 to law and global affairs in 2025- 4 Key Questions You Must Know for Prelims and Mains

What is the issue?

As we have entered the new year 2025, it is critical to reflect on the significant transformations in the economy and healthcare that defined 2024. Additionally, let’s look ahead to see how 2025 promises to bring dynamic changes in global affairs and legal developments. Here’s what you need to know to stay ahead of the curve.

UPSC Syllabus: 

Preliminary Examination: Current events of national and international importance

Mains Examination : General Studies-II, III: International Relations, Constitution of India — evolution and basic structure. Indian Economy and issues,  Issues relating to Health, Science and Technology- developments and their applications

Question 1: What were the positive and negative aspects of the Indian economy in 2024?

To understand the current economic landscape of our nation, it is essential to assess how the Indian economy performed in 2024. We should consider both the positive and negative aspects of the economy. Let’s begin with the positives, as there are some clear upsides to the current economic situation.

Positives

1. Growth in Services: India’s services surplus as a percentage of GDP hit a record high in October 2024.This growth has been attributed to the fragmentation of global services value chains, increased cross-border telecom bandwidth, and the rise in remote work, all of which support India’s services exports to developed markets.

2. Government Spending: Fiscal spending is expected to rise as the election aftermath settles. The recent reduction in the cash reserve ratio (CRR) has released funds held by banks with the RBI. The capex cycle seems to have restarted in some sectors, boosting capital formation, says economist Neelkanth Mishra, adding that this growth will be investment-led. Also, monetary easing is expected to support growth in the coming financial year. But the government will likely have to continue to do the heavy lifting.

3. Possible MSME recovery: Corporate growth is slowing, partly due to sliding consumption growth, but there could be an upside. Former Chief Statistician Pronab Sen said Micro, Small, and Medium Enterprises (MSMEs), which have been hit repeatedly by shocks such as demonetisation, implementation of GST, and the Covid-19 lockdown, are perhaps getting back in business and competing with the corporate sector.

Negatives

1. Widening Savings-Investment Gap: The decline in the household financial savings rate poses a significant challenge. The Reserve Bank of India’s latest Financial Stability Report indicates that net financial savings of households dropped to 5.3% of GDP in FY23, down from 7.3% in FY22. 

This figure is considerably below the 8% average seen over the previous decade. Household net savings refer to the total amount of money and investments that families have, including deposits, stocks, and bonuses, minus any liabilities such as loans and other debts. Notably, a large part of savings is also entering financial markets, bypassing the banking industry, which is another worry.

2. Fiscal prudence: At the Centre, fiscal consolidation has been a consistent theme. A projected decline in fiscal deficit from 6.4% to 5.9% of GDP in FY24 will stabilise public debt at around 83% of GDP — a promising indicator of sustainability, given India’s growth outlook, according to the IMF.

But competitive loosening of purse strings by states poses a fiscal problem. The RBI has flagged concerns over a sharp increase in expenditure by states on various subsidies, including farm loan waivers and cash transfers.

3. Rise in Non-Performing Assets (NPAs): While bad loans have been coming down, there are new concerns over a significant rise in NPAs in the personal loan and credit card segments. Both these types of credit are unsecured and carry high interest rates. 

4. Sluggish Investments: Many corporations are experiencing a decline in performance, and investments are facing challenges. 

Question 2: What were the significant advancements in healthcare in 2024?

Healthcare in 2024 experienced notable advancements across various specializations. With the end of the Covid-19 pandemic, focus has shifted back to the increasing burden of non-communicable diseases (NCDs). Here are some significant advancements in healthcare that took place in 2024:

1. NexCAR19: In 2024, India launched its first homegrown CAR-T cell therapy called NexCAR19, developed as a collaboration between academia and industry. NexCAR19 is designed to treat B-cell lymphomas and B-acute lymphoblastic leukaemia in patients aged 15 and older. It is the world’s most affordable CAR-T therapy, which can make advanced cancer treatments more accessible and put Indian cell and gene therapy innovation on the global stage.

2. Cancer Vaccine Launch Pad (CVLP): In England, the NHS Cancer Vaccine Launch Pad (CVLP) has been launched, with a focus on personalised cancer vaccines made using mRNA technology. These vaccines are created by analysing a patient’s tumour to find unique mutations, helping the immune system target the cancer more effectively.

3. Ozempic & Wegovy: Highly effective weight-loss treatments have been introduced in recent years, especially in the United States and Europe. The development of glucagon-like peptide-1 (GLP-1) drugs—which have a range of beneficial effects, including helping lower blood sugar levels and promoting weight loss—has seen significant advances and expanding market potential, offering the promise of life-changing treatments for major health conditions.

Novo Nordisk’s Ozempic, containing semaglutide, which was approved by the US FDA in 2017 for treatment of type 2 diabetes, soon gained attention for off-label use in weight loss. In 2021, the Denmark-headquartered company launched Wegovy, a semaglutide pen-injection, which became the first FDA-approved drug for long-term weight management in almost a decade.

4. Casgevy and Lyfgenia: In December 2023, the FDA approved two groundbreaking treatments, Casgevy and Lyfgenia, the first cell-based gene therapies to treat sickle cell disease (SCD) in patients aged 12 and older.

In 2024, Boston-based Verve Therapeutics, a company that specialises in gene-editing medicines, announced its experimental therapies VERVE-101 and VERVE-102, which are designed to lower cholesterol by targeting the PCSK9 gene in the liver.

Thus we see that in 2024, major advancements in healthcare were evident, with exciting developments in gene editing opening new doors to address genetic disorders and enhance targeted treatments.

Question 3: What should you look into the global affairs in 2025?

The year 2024 was undoubtedly significant in terms of geopolitics. With two ongoing wars, regime changes in India’s neighbourhood and West Asia, and the remarkable return of Donald Trump to the U.S. presidency, the year has been full of crucial changes. These developments are likely to shape global affairs in 2025, which seems to be both fascinating and complex.

“From New Delhi, 2025 looks promising and challenging. India will host the Quad leaders’ summit and a possible India-EU summit; Prime Minister Narendra Modi could travel to China for the SCO summit, and President Vladimir Putin is expected to visit India. A Modi-Trump meeting is likely sooner than later in the year.”- Shubhajit Roy

Story continues below this ad

In this context, here are some important developments to follow in 2025.

Challenges in India’s Neighbourhood

In 2024, important countries in India’s neighbourhood saw regime change, which poses significant challenges for India on various fronts.

1. Bangladesh: Weeks of sustained street protests drove Sheikh Hasina from power after 16 years and forced her to flee to India. The new establishment under Chief Adviser Muhammad Yunus has asked New Delhi to send her back, even as his interim government itself faces heat on the struggling economy and for failing to protect religious minorities in Bangladesh.

2. Nepal: K P Sharma Oli, whose pro-China stand has not been comforting to India, became Prime Minister for the fourth time in July. His alliance with Sher Bahadur Deuba’s Nepali Congress, however, has had a calming influence.

Donald Trump 2.0

The US Presidential Election, the most significant election globally, has returned Donald Trump to the office he left in early 2021. Trump has come back after a break, more confident and possibly wiser — and has announced nominees for all key appointments long before inauguration day on January 20. His declared intentions of ending ongoing wars and imposing steep tariffs on trade rivals of the US have piqued curiosity and anxiety in many countries. We will need to wait and see how the decisions of the US administration under Donald Trump shape global politics.

Elections and New Leaders in Europe

Fresh elections are scheduled in Germany for 2025. Meanwhile, France is grappling with political instability. The rise of far-right groups appears unlikely to be reversed, and it may only be a matter of time before these parties come to power in both countries.

The escalating debate on immigration is creating concerns for Indians and others seeking to study, live, and work in Europe. This issue is expected to arise during negotiations for a free trade agreement between India and Europe. The United Kingdom, which has taken a strong stance on immigration under the Conservative government, is also in talks for a trade pact with India. It will be interesting to see if the British negotiators address the key sticking points. Additionally, an India-EU summit is being planned.

Bilateral Relations with Canada and the USA

The assassination of Khalistani separatist Hardeep Singh Nijjar, for which Canada has accused India, has severely damaged diplomatic ties and complicated aspects of India’s relationships with not only Canada but also the United States.

Additionally, the alleged plot targeting Gurpatwant Singh Pannun in the U.S. poses a reputational risk for India’s global image, especially among supporters of Indian democracy in the West who view India favourably in comparison to authoritarian China. This is a question that India will need to address in order to alleviate concerns across Western capitals.

Question 4: What are the key issues to follow in India’s top court in 2025? 

In 2024, the Supreme Court of India made important rulings and interventions in several significant cases. It declared the electoral bonds scheme unconstitutional, issued guidelines to prevent illegal bulldozer demolitions, and prohibited trial courts from hearing mandir-masjid cases. Additionally, the Court limited the vast powers of the Enforcement Directorate (ED) to arrest individuals and reversed the Gujarat government’s decision to grant remission to the convicts in the Bilkis Bano gang rape case.

In this context, as we begin the year 2025, it is essential to understand the important issues that will impact citizens’ personal lives, religious beliefs, and their relationships with the state and its laws. These are the matters that the Supreme Court will be addressing this year.

1. Essential Religious Practice Test: In 2020, the Supreme Court decided to review its 2018 ruling, which had determined the practice of excluding women from the Sabarimala temple unconstitutional. The ruling was sought to be reviewed by a larger bench, expanding the premise of the case to how religious practices are to be reviewed judicially. The focus of the pending appeal is to reconsider the so-called “essential religious practice test,” a contentious doctrine evolved by the court to protect only those religious practices that are essential to the religion.

Notably, this case will also affect a long-standing challenge by two Parsi women who married outside their community. They have sought permission to enter the Tower of Silence and other religious sites. Additionally, there is a separate plea calling for Muslim women to be allowed entry into mosques.

3. Places of Worship Act: Given that a larger constitutional challenge to the Places of Worship Act that froze the religious character of all places of worship except the (then) disputed structure in Ayodhya as they stood at the dawn of Independence is pending before the court, disputes over the title and religious character of certain mosques, allegedly built by razing Hindu temples, will continue to play out in 2025. The Places of Worship Act has been challenged on two main grounds.

(i) First, that it takes away the power of judicial review by abating claims that existed at the time of passing the law and prohibiting fresh claims in courts.

(ii) Second, it is arbitrary in retrospectively picking August 15, 1947, as the cut-off date for determining the religious character of a place of worship.

The other side has argued that the law fortifies the principles of secularism and non-retrogression, which are held to be part of the basic structure of the Constitution.

4. Review of ED’s powers: While granting bail to former Delhi Chief Minister Arvind Kejriwal in the money laundering case in the alleged excise policy scam, the SC raised questions on the Enforcement Directorate’s vast powers to arrest. It referred a key issue—on when an arrest is legally necessitated—to a larger bench. In a series of separate rulings since the 2022 verdict, the SC has also mandated key procedural safeguards in ED cases—the grounds of arrest must be informed in writing, and the stringent “twin conditions” for bail can now be “relaxed” if the accused has undergone a long period of incarceration.

Beyond the above-mentioned cases, new criminal laws are likely to be subject to judicial review. Notably, the Bharatiya Nyaya Sanhita, 2023; the Bharatiya Nagarik Suraksha Sanhita, 2023; and the Bharatiya Sakshya Adhiniyam, 2023, have replaced the Indian Penal Code of 1860, the Criminal Procedure Code of 1973, and the Indian Evidence Act of 1872.

While these new laws introduce several progressive elements, certain aspects have sparked controversy. For example, allowing police officers up to 14 days for a preliminary investigation before registering a First Information Report (FIR), the complete removal of Section 377 of the IPC (which previously offered protection to men and LGBTQIA+ individuals from non-consensual sexual intercourse), and extending detention periods up to 90 days have been challenged before the Supreme Court. As the significant task of adapting to the new laws continues, additional issues are likely to arise.

Undoubtedly, 2024 was a year rich with developments across various fields, including the economy, healthcare, global affairs, and the national legal landscape. In 2025, we will witness new developments in these areas. It is important to stay informed about these themes and related topics to remain ahead of the curve.

Post Read Questions 

Prelims

(1) How many of the following states share the borders with the Bangladesh?

1. Assam

2. West Bengal

3. Tripura

4. Mizoram

Select the correct answer using the codes given below:

(a) One only

(b) Two only

(c) Three only

(d) All four

(2) Consider the following statements about CAR-T cell therapy:

1. It modifies immune cells by turning them into potent cancer fighters.

2. It makes treatment easier with a one-time therapy.

3. NexCar19 is a type of CAR-T therapy developed indigenously in India.

How many of the statements given above are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

(3) ‘Exercise SAMPRITI’ is a military exercise between India and which of the following nations?

(a) Bangladesh

(b) Sri Lanka

(c) Nepal

(d) Thailand

Mains

(1) What are the emerging challenges to the Indian economy?  What initiatives have been taken by the government to promote higher private sector investment?

(2) Discuss the significance of India’s relationship with Bangladesh in the context of regional cooperation and development. Highlight the recent developments between the two countries.

(3) What is CAR-T cell therapy? Discuss how effective and different is this from other cancer treatments.

(4) Critically examine the compulsions which prompted India to play a decisive role in the emergence of Bangladesh. (UPSC CSE 2013)

(Sources: Looking at 2025, Law: Key questions of religion, society written by Apurva Vishwanath , Looking at 2025, Diplomacy: Challenges of a complex world, Looking at 2025, The Economy: Some positives, some concerns, Looking at 2025, Health: Breakthroughs of hope and promise)

For your queries and suggestions write at roshni.yadav@indianexpress.com

The Indian Express UPSC Essentials brings to you the December issue of its monthly magazine. Click Here to read. Share your views and suggestions in the comment box or at manas.srivastava@indianexpress.com

Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.

Stay updated with the latest UPSC articles by joining our Telegram channel – Indian Express UPSC Hub, and follow us on Instagram and X.