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UPSC Key: Engaging with Taliban, Light pollution, and Base year revision of IIP

Why is the first legally binding emission-cut target for four sectors important for your UPSC exam? What significance do topics such as the Sawalkote Hydroelectric Project, the base year revision of the IIP, and Bihar’s economy have for both the Preliminary and Main exams? You can learn more by reading the Indian Express UPSC Key for October 11, 2025.

India, taliban, kabul. upsc keyIn this image posted on Oct. 10, 2025, Union External Affairs Minister S Jaishankar during a meeting with his Afghani counterpart Amir Khan Muttaqi, in New Delhi. Know more in our UPSC Key. (@HafizZiaAhmad/X)

Important topics and their relevance in UPSC CSE exam for October 11, 2025. If you missed the October 10, 2025, UPSC CSE exam key from the Indian Express, read it here.

FRONT

India resets ties with Taliban-ruled Kabul, to upgrade ‘technical mission’ to embassy

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-II: India and its neighbourhood- relations; Bilateral, regional and global groupings and agreements involving India and/or affecting

India’s interests

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What’s the ongoing story: As a first step towards normalising diplomatic ties with the Taliban since the group seized power in Afghanistan after the withdrawal of the US-led forces in 2021, India on Friday said it would upgrade its “technical mission” in Kabul to the status of an embassy.

Key Points to Ponder:

— What were the reasons for India to close its embassy in Kabul?

— Know the history of India-Afghanistan relationship and how has it changed in the recent times

— What are the reasons for India’s initiatives at normalising diplomatic ties with the Taliban?

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— The series of engagements with Taliban acknowledge that, in a highly competitive neighbourhood, maintaining ties with the Taliban is a geostrategic necessity. Elaborate.

— What is the strategic significance of Afghanistan for India?

Key Takeaways:

— Muttaqi, on his part, said Kabul would send diplomats to India as part of step-by-step efforts to improve bilateral relations.

— India closed its embassy in Kabul after the Taliban seized power in August 2021. In June 2022, India re-established its diplomatic presence in the Afghan capital by deploying a “technical team”.

— Welcoming the Taliban-led delegation on Friday, Jaishankar said the visit marks an “important step in advancing our ties and affirming the enduring friendship between India and Afghanistan.”

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— A joint statement issued after the meeting said: “Both sides unequivocally condemned all acts of terrorism emanating from regional countries. They underscored the importance of promoting peace, stability and mutual trust in the region.

— Muttaqi has got UNSC approval to visit India from October 9 to 16. He will also travel to Agra and the Deoband seminary in the next few days.

— “Both sides emphasised respect for each other’s sovereignty and territorial integrity.” External Affairs Minister appreciated Afghan side’s understanding of India’s security concerns.

— “As part of India’s ongoing healthcare cooperation with Afghanistan, several projects are being undertaken, including the establishment of a thalassemia centre, a modern diagnostic centre, and replacement of the heating system at the Indira Gandhi Institute of Child Health (IGICH) in Kabul”, the joint statement said.

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— Saying that the plight of “forcibly repatriated Afghan refugees is a matter of deep concern”, Jaishankar said, “India agrees to help construct residences for them and continue providing material aid to rebuild their lives.”

— The Afghan side invited Indian companies to invest in the mining sector, which would help strengthen bilateral trade and commercial relations, the joint statement said.

— Appreciating India’s assistance in construction and maintenance of India-Afghanistan Friendship Dam (Salma Dam) in Herat, both sides also underscored the importance of sustainable water management and agreed to cooperate on hydroelectric projects with a view to addressing Afghanistan’s energy needs and support its agricultural development, the joint statement said.

Do You Know:

— Since Taliban captured Kabul in 2021, the global situation has changed. Taliban’s ally, Pakistan, has turned into an adversary; Iran has been weakened; Russia is fighting its own war; the US is behaving differently under Trump 2.0; and China is making inroads by exchanging ambassadors with Taliban.

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— This explains India’s move to upgrade the level of official engagement with Taliban — or it will lose out on years of investment in Afghanistan, which is significant to its security calculations.

Express View:  The series of engagements confirms that New Delhi recognises the ground reality that the Taliban is the only force, for now, that appears capable of controlling all of Afghanistan. It is also an acknowledgement that, in a highly competitive neighbourhood, maintaining ties with the Taliban is a geostrategic necessity.

— The Jaishankar-Muttaqi meeting makes it clear that the Taliban wants India to engage more with Afghanistan, citing “long civilisational and people-to-people ties for centuries.” To be sure, this growing entente coexists with a disquieting reality: The Taliban remains an autocratic regime with scant regard for human rights, particularly those of women.

— As recently as Monday, the UN Human Rights Council agreed to establish an “ongoing, independent investigative mechanism” to probe abuses in Afghanistan. This is also why, despite greater engagement, India still refrains from formally recognising the Taliban government.

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— To not talk, however, carries its own risks. Beijing has already signed major investment and security agreements with the Taliban, and India cannot afford to let Afghanistan, a country of immense regional importance, drift entirely into China’s orbit.

— New Delhi must therefore maintain a cautious engagement with Kabul, balancing pragmatic interests with its commitment to the well-being of Afghanistan’s people.

Other Important Articles Covering the same topic:

📍Express View on engaging with Taliban: A necessity

📍With new Great Game, India must engage with the Taliban and Kabul

Previous year UPSC Prelims Question Covering similar theme:

(1) Consider the following countries: (UPSC CSE 2022)

1. Azerbaijan

2. Kyrgyzstan

3. Tajikistan

4. Turkmenistan

5. Uzbekistan

Which of the above have borders with Afghanistan?

(a) 1, 2 and 5 only

(b) 1, 2, 3 and 4 only

(c) 3, 4 and 5 only

(d) 1, 2, 3, 4 and 5

Previous year UPSC Mains Question Covering similar theme:

The proposed withdrawal of the International Security Assistance Force (ISAF) from Afghanistan in 2014 is fraught with major security implications for the countries of the region. Examine in light of the fact that India is faced with a plethora of challenges and needs to safeguard its own strategic interests. (UPSC CSE 2013)

 

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GOVT & POLITICS

Govt notifies first legally binding emission cut targets for 4 sectors

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-III: Infrastructure: Energy, Ports, Roads, Airports, Railways etc.

What’s the ongoing story: The Centre has notified the first legally binding Greenhouse Gas Emission Intensity (GEI) Target Rules, 2025, for four high-emission sectors—aluminium, cement, chlor-alkali, and pulp and paper.

Key Points to Ponder:

— What are carbon credits?

— What is the domestic carbon market? What is the mechanism?

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— What are India’s climate commitments under the Paris Climate Agreement of 2015?

— What is the Carbon Border Adjustment Mechanism (CBAM)?

— What are the efforts taken by the government to reduce carbon emissions from various industrial sectors?

— What is the significance of a legally binding GEI target?

Key Takeaways:

— The Rules set targets on greenhouse gas (GHG) emissions per unit of product output—for example, the gases released in the production of a tonne of cement or aluminium. Industries will earn carbon credits in lieu of meeting emissions targets, while those that fail to do so will have to buy credits or pay environmental compensation.

— The Rules will help operationalise the country’s domestic carbon market under the Carbon Credit Trading Scheme (CCTS), 2023, which was launched to create a framework to trade carbon credits, facilitate slashing of carbon dioxide (CO2) emissions and back India’s climate commitments under the Paris Climate Agreement of 2015.

— India has committed to reducing the emissions intensity of its gross domestic product (the amount of energy used per unit of GDP) by 45 per cent by 2030 compared to 2005 levels, as part of its domestic commitments under the global agreement.

— Under the GEI Rules, 282 high-emission industrial units will have to comply with the mandatory targets for two years, 2025-26 and 2026-27. These 282 units consist of 186 cement units, 13 aluminium units, 30 chlor-alkali units and 53 pulp and paper units. Greenhouse gas (GHG) emissions intensity or GEI is the amount of GHGs that are emitted per unit of product output. For instance, the gases released in the production of a tonne of product, such as cement or aluminium.

— The Rules define GEI targets in terms of tCO2e per equivalent output or product. tCo2e or tonnes of carbon dioxide equivalent is the standard unit used to measure the impact of all GHGs and not just CO2, based on their potential to warm the planet.

— The reduction of the planet-warming CO2 gas will get the industries carbon credits in return, as part of the carbon credit trading scheme. These credits can then be traded on the domestic carbon market. The Bureau of Energy Efficiency will issue the carbon credits certificate.

— Industries that do not achieve their targeted emissions reduction will have to plug the shortfall by buying carbon credits from the carbon market. In case the industries fail to comply or contravene with the provisions of the GEI Rules, the Central Pollution Control Board is mandated to impose environmental compensation.

— As per an analysis by Down to Earth magazine, in 2025-26, the targets require modest reductions averaging roughly 2-3 per cent, and increase to up to 7.5 per cent by 2026-27. Targets for the cement sector, such as ordinary Portland cement units, range from 4.7 per cent to 7.6 per cent and in pulp and paper, they reach up to 15 per cent over two years.

Do You Know:

— According to the World Bank, “a carbon tax directly sets a price on carbon by defining a tax rate on greenhouse gas emissions or – more commonly – on the carbon content of fossil fuels”. It is a type of carbon pricing, and the other type of carbon pricing is the emissions trading systems (ETS). The CBAM is a form of carbon pricing system.

— The CBAM or Carbon Tax was first introduced by the European Union in 2021.  It taxes certain products coming in from other countries based on their carbon emissions footprint in their production process.

Other Important Articles Covering the same topic:

📍How draft Greenhouse Gases Emissions Intensity Targets aim to help India meet climate goals by Nikhil Ghanekar

📍Knowledge Nugget: What is Carbon Tax and why is it important for UPSC exam?

Previous year UPSC Prelims Question Covering similar theme:

(2) Consider the following statements: (UPSC CSE 2023)

Statement-I: Carbon markets are likely to be one of the most widespread tools in the fight against climate change.

Statement-II: Carbon markets transfer resources from the private sector to the State.

Which one of the following is correct in respect of the above statements?

(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(c) Statement-I is correct but Statement-II is incorrect

(d) Statement-I is incorrect but Statement-II is correct

EXPRESS NETWORK

Govt panel recommends green approval for Sawalkote hydel project in Indus basin

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

General Studies-III: Security challenges and their management, Conservation, environmental pollution and degradation, environmental impact assessment.

What’s the ongoing story: Stalled for nearly four decades, the Sawalkote hydroelectric project on the Chenab river in the Indus basin has received a push, with the Union Environment Ministry’s expert panel on hydropower projects recommending it for environmental clearance, according to minutes of a recent meeting.

Key Points to Ponder:

— Know about the Sawalkote project and its significance.

— What are the issues and concerns associated with the Sawalkote project?

— What are the provisions of the Indus Waters Treaty (IWT)?

— Why is the Environmental Impact Assessment important for these projects?

— What do you understand about the project of “strategic importance”?

— What is the provision for passing such projects?

— What is the role and function of the Forest Advisory Committee (FAC)?

Key Takeaways:

— The 1,865 MW project, to be built by NHPC Ltd in Jammu and Kashmir’s Ramban district, will be one of the largest on the west-flowing Chenab. It entails a 192.5-metre-high concrete gravity dam with a reservoir capacity of 530 million cubic metres spread over 1,159 hectares. The installed capacity will be 1,406 MW in Stage I and 450 MW in Stage II.

— The Centre expedited the project, first initiated in 1984, after putting the Indus Waters Treaty (IWT) in abeyance following the Pahalgam terror attack in April this year. Under the IWT, the west-flowing Chenab, Indus and Jhelum rivers are under Pakistan’s control.

hydel project

— Interestingly, the EAC minutes did not mention whether cumulative impact assessment (CIA) and carrying capacity studies (CCS) for the Chenab basin were considered before recommending clearance. Such studies are generally required under ministry norms to assess the long-term ecological and social impacts of large hydropower projects.

— The question of exemption from these studies was addressed earlier by the Environment Ministry’s Forest Advisory Committee (FAC) while considering forest clearance. The FAC had held that since the project was initiated in 1984, the CIA and CCS guidelines introduced in 2013 would not apply retrospectively. It also took note of letters from the Ministries of Power and Home Affairs seeking exemption on strategic grounds.

— In its letter, the Home Ministry said the project was of “strategic importance” and that swift construction was “essential for leveraging the Chenab river’s potential”. The Power Ministry stated that in the “current geopolitical scenario”, undertaking the studies could delay approvals and affect implementation of key hydel projects in Jammu and Kashmir.

— The Chenab basin already hosts three operational projects — the 390 MW Dulhasti in Kishtwar, the 890 MW Baglihar in Ramban, and the 690 MW Salal in Reasi.

Do You Know:

— The IWT was signed in Karachi on September 19, 1960, following nine years of negotiations between India and Pakistan. The Treaty has 12 Articles and 8 Annexures (from A to H).

— According to the provisions of the Treaty, all the water of the “Eastern Rivers” of the Indus system — Sutlej, Beas and Ravi — shall be available for the “unrestricted use” of India. Pakistan shall receive water from the “Western Rivers” — Indus, Jhelum, and Chenab.

— The Chenab River, the largest tributary of the Indus, has a length of 1,180 km in India. It is formed by the confluence of the Chandra and Bhaga rivers at Tandi in Keylong, Himachal Pradesh.

Other Important Articles Covering the same topic:

📍Sawalkote dam: Panel to weigh green nod for Chenab Project

📍Indus River system and the debate on Indus Water Treaty

Previous year UPSC Prelims Question Covering similar theme:

(3) With reference to the Indus river system, of the following four rivers, three of them pour into one of them which joins the Indus directly. Among the following, which one is such a river that joins the Indus direct? (UPSC CSE 2021)

(a) Chenab

(b) Jhelum

(c) Ravi

(d) Satluj

‘Artificial light exposure leads to early dementia symptoms’

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-III: Conservation, environmental pollution and degradation, environmental impact assessment.

What’s the ongoing story: A study by researchers at Delhi University (DU) shows how light pollution disrupts sleep and speeds up neurodegeneration.

Key Points to Ponder:

— What is the natural circadian rhythm?

— What is light pollution?

— What are age-related brain disorders?

— What is the impact of artificial light on human health?

— What are the other forms of pollution?

Key Takeaways:

— Findings of the study have been published in the international neuroscience journal ‘Neurochemistry International’. Prof Sarkar said their findings suggest managing sleep properly could significantly delay or reduce the impact of these debilitating diseases, highlighting the importance of sleep for brain health.

— Dementia and other age-related brain disorders have become a major global health challenge with Alzheimer’s disease alone responsible for over three-quarters of all cases among older adults worldwide. In India, the number of people living with dementia is expected to surge to around 14.3 million by 2050, according to studies.

— The study found that disrupted sleep, triggered by continuous exposure to artificial light or “light pollution”, can hasten the early onset and worsen the severity of dementia-related symptoms.

— According to Prof Sarkar, these findings shed new light on how modern lifestyles, especially in brightly lit urban environments, may be quietly undermining brain health.

— But in today’s world, where city lights never dim and screens glow late into the night, the brain’s delicate balance is being disrupted. This constant exposure to artificial illumination, they warn, is taking a hidden toll, particularly on people already vulnerable to neurodegenerative conditions such as Alzheimer’s and Parkinson’s disease.

— In their study, researchers Prerna Aggarwal, Virender and Prof Sarkar used genetically engineered fruit flies (Drosophila melanogaster) carrying the human form of the toxic tau protein, a hallmark of Alzheimer’s disease.

— The team discovered that when these flies were exposed to continuous artificial light, disrupting their normal sleep patterns, their brain cells degenerated much faster. The flies showed early signs of movement difficulties and clear structural damage in brain regions that control memory, learning and sleep.

— Researchers found that unhealthy light exposure acted like an accelerator pedal for tau-related disease. It significantly increased the stickiness of the tau protein, promoting the formation of large, toxic clumps that choke neurons at a much faster rate.

— Although abnormal light exposure has long been linked to disrupted circadian rhythms and disturbed sleep-wake cycles, the latest study points to its possible role in worsening the molecular and cellular changes that drive neurodegeneration.

— The researchers, however, said more research is needed to fully understand how light pollution intensifies disease progression at the cellular level. “From night-shift workers and late-night students to anyone scrolling endlessly through their phones, many of us are now living under near-constant artificial light,” Prof Sarkar cautioned.

Do You Know:

— Light pollution is the human-made alteration of outdoor light levels from those occurring naturally.

— When we over-light, fail to use timers and sensors, or use the wrong color of light, we can negatively affect many parts of our world, including migratory birds, pollinators, sea turtles, and mammals, including humans.

— Alzheimer’s is the most common type of dementia, an umbrella term for a range of conditions that involve the loss of cognitive functioning. It involves the formation of plaques and tangles in the brain, and the accelerated aging of certain neurons concerned with storage and processing of memory.

— According to WHO estimates from 2023, more than 55 million people suffer from dementia worldwide, with Alzheimer’s contributing to around 75% of these cases. Anywhere between 3 and 9 million Indians are believed to suffer from the disease, a number that is set to grow as India’s population ages.

Other Important Articles Covering the same topic:

📍Night time light pollution linked to increased Alzheimer’s risk: what a new study says

Previous year UPSC Prelims Question Covering similar theme:

(4) Consider the following statements regarding mercury pollution:

1. Gold mining activity is a source of mercury pollution in the world.

2. Coal-based thermal power plants cause mercury pollution.

3. There is no known safe level of exposure to mercury.

How many of the above statements are correct?

(a) Only one

(b) Only two

(c) All three

(d) None

EXPLAINED

Revisiting India’s industrial barometer: Base year revision of IIP

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-III: Indian Economy and issues relating to planning, mobilisation, of resources, growth, development and employment

What’s the ongoing story: As nations grow, their economies undergo a structural change: some sectors lose importance, others gain. Such structural transformation often accompanies long-term economic growth, marked by a progressive shift in the economic structure — from a high reliance on agriculture to increased industrial activity, and ultimately to the predominance of the services sector.

Key Points to Ponder:

— What is the Index of Industrial Production (IIP)?

— What is the significance of the IIP data?

— What are the schemes launched by the government to boost industrial growth?

— Know about these schemes: Make in India, Production Linked Incentive schemes, and ease of doing business reforms

— Recent GST rate cuts will further shore up consumption and support industrial recovery. Analyse.

— What are the reasons for revising base year?

— What is the new proposed base year for IIP?

Key Takeaways:

— In India, with brisk growth in services, the sector’s share in Gross Value Added (GVA) has doubled since the early 1950s, averaging 62.5% over the first half of this decade. Agriculture and allied activities, while still essential, now contribute to about 15% of the GVA. But industry, at around 22% of the GVA, leaves scope for improvement.

— Initiatives like Make in India, Production Linked Incentive schemes, ease of doing business reforms, and industrial corridors, among others, are efforts to boost industrial growth. They have helped improve growth rates in each of the three sectors covered under the Index of Industrial Production (IIP) — mining, manufacturing, and electricity — in the post-Covid period, compared to before the pandemic.

— Recent GST rate cuts will further shore up consumption and support industrial recovery. Furthermore, developments related to deregulation, liberalisation and the emergence of new industries signal healthy dynamism.

— Why revise base year: With a more market-oriented economy, the need for quick and symmetric information has grown. Therefore, the statistical systems must adapt to capture full and correct information of the economy.

— The Ministry of Statistics and Programme Implementation (MoSPI) has been working on multiple fronts to ensure and improve data quality amid rapid changes. Towards this end, one of the steps was to constitute a Technical Advisory Committee for Base Year Revision of the All-India Index of Industrial Production (TAC-IIP).

— Apart from the government and the Reserve Bank of India, numerous stakeholders, from businesses to financial analysts, use IIP data. The IIP is a crucial input for quarterly GVA, used in planning and research.

— The compilation of IIP in India commenced with the base year 1937. To capture economic and technological shifts, it has undergone nine subsequent base year revisions. The TAC-IIP has now recommended a base year revision to 2022-23, in alignment with the new base year proposed for the GDP.

— Note that the methodology for compiling the IIP is very much aligned with the International Recommendations for the Index of Industrial Production (IRIIP), 2010, with suitable adaptations to reflect national requirements and data availability.

— The new series will incorporate updates to the product basket, improved data sources, and reworked sectoral weights. The following are some key improvements proposed:

* Expansion of scope, coverage: For the first time, the new IIP aims to cover minor minerals and gas supply with information captured from key producing states/ ministries.

* Treatment of ‘not elsewhere classified’ items: The new index ensures that 95% of their weights are assigned to specific items, with only 5% redistributed, thus significantly enhancing information content.

* Substitution of factories: The new IIP series proposes to introduce a systematic methodology for substituting factories that have shut down or altered production lines.

* Seasonally-adjusted series: The Ministry is working in collaboration with TAC-IIP towards putting in place a system to additionally provide a de-seasonalised IIP, in line with international practice.

Do You Know:

— The IIP maps the change in the volume of production in Indian industries. More formally, it chooses a basket of industrial products — ranging from the manufacturing sector to mining to energy, creates an index by giving different weight to each sector and then tracks the production every month.

Other Important Articles Covering the same topic:

📍Explained: What is IIP and why does it matter?

Previous year UPSC Prelims Question Covering similar theme:

(5) In the ‘Index of Eight Core Industries’, which one of the following is given the highest weight? (UPSC CSE 2015)

(a) Coal production

(b) Electricity generation

(c) Fertilizer production

(d) Steel production

Previous year UPSC Mains Question Covering similar theme:

“Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period” Give reasons. How far the recent changes in Industrial Policy are capable of increasing the industrial growth rate? (UPSC CSE 2017)

Where Bihar’s economy stands

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-III: Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment.

What’s the ongoing story: In just over a month from now, the residents of Bihar will know who will shape their fortunes for the next five years. And while every election is important, the votes tallied on November 14 could shape the next decade or more, considering the current Chief Minister, Nitish Kumar, has led the state for nearly 20 years.

Key Points to Ponder:

— What is the Labour Force Participation Rate (LFPR)?

— What is the purpose of the e-Shram portal?

— What is out-migration?

— What is the Poverty Line?

— How has the Rangarajan committee defined the Poverty line?

Key Takeaways:

— Like every other Indian state, Bihar needs to create jobs for its residents – 3.16 crore Biharis have registered on the government’s e-Shram portal in search of jobs, second only to Uttar Pradesh.

— And if jobs are not found within the state, they will keep looking for employment elsewhere. This continued out-migration in search of work reduces the possibility of the state being able to reap a return on its investments.

— As per latest data from the government’s Periodic Labour Force Survey (PLFS), while Bihar’s unemployment rate in the April-June quarter was a fairly low 5.2 per cent, compared to the all-India average of 5.4 per cent for those aged 15 years and above, this was largely due to the Labour Force Participation Rate (LFPR) in the state being just 48.8 per cent.

— It means that less than half the working-age population of the state was actively looking for work. Only Haryana and Delhi had lower LFPRs.

— It gets worse when one considers the youth, or those falling in the 15-29 age bracket – in Bihar, only 33.9 per cent of them are looking for jobs. This is not only significantly lower than the all-India average of 42 per cent, but also the lowest in the country.

— As per Bihar’s budget for 2025-26, the state expects to spend Rs 1.12 lakh crore on salaries, pensions, and interest on its loans. These expenses are called ‘committed expenditure’ – they cannot be postponed. The problem is that these committed expenses make up nearly 40 per cent of the government’s total expenditure.

— Of course, there are several states that use up more than 40 per cent of their total expenditure on salaries, pensions, and interest payments. But it is safe to say the addition of a guaranteed government job per household will not burnish the state’s finances.

— Government jobs have not been the only promise offered to voters so far. Cash transfers to women, which worked exceedingly well for the ruling BJP-led National Democratic Alliance (NDA) in previous state elections, have appeared in Bihar as well.

— Whether or not these schemes are ‘freebies’ – the word has no legal definition – is irrelevant; what we do know is that they will all add to the state’s expenditure, specifically, revenue expenditure.

— At a time when the central government is pushing hard on capital expenditure and calling on the private sector to invest more, it should be a concern if Bihar’s revenue expenditure as a percentage of total expenditure rises.

— The sector powering the rest of the country – services – has shrunk in Bihar. According to statistics ministry data, the net value added by Bihar’s services sector has reduced as a percentage of the total net state value added to 54.8 per cent in 2024-25 from 61.2 per cent in 2019-20.

— While a rising share of the secondary sector is good for Bihar, India’s growth story over the last two decades or so has been about the services sector, which can offer high-paying jobs – which is key to retaining good local talent.

Do You Know:

— According to the NITI Aayog, at 33.76 per cent, Bihar had the highest proportion of multidimensionally poor people in the country in 2019-21. Even if measured in consumption terms, an updated version of the Rangarajan poverty line – constructed by economists from the Reserve Bank of India (RBI) – shows that for urban Bihar, the minimum Monthly Per Capita Consumption Expenditure (MPCE) needed to not qualify as poor in 2022-23 was Rs 2,277 – the third lowest in the country. For rural areas, the figure was Rs 1,724, which was the sixth-lowest.

— Labour force participation rate refers to the part of the population that supplies or offers to supply labour for pursuing economic activities for the production of goods and services and therefore, includes both ‘employed’ and ‘unemployed’ persons. Under the CWS approach, labour force refers to the number of persons either employed or unemployed on an average in a week before the date of the survey. LFPR is defined as the number of persons/ person-days in the labour force per 1000 persons /person-days.

Other Important Articles Covering the same topic:

📍Knowledge Nugget: What are key highlights of Periodic Labour Force Survey (PLFS) and why is it UPSC essential

ALSO IN NEWS
Nobel Peace Prize 2025 The Norwegian Nobel committee has announced Maria Corina Machado, a Venezuelan politician, as this year’s Nobel Peace Prize winner for her work in for promoting democratic rights. The laureate receives a cash prize worth 11 million Swedish kronor (around USD 1.17 million), a diploma and a medal.

 

PRELIMS ANSWER KEY
1. (c)   2. (b)   3. (d)    4. (b)   5. (b)

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Khushboo Kumari is a Deputy Copy Editor with The Indian Express. She has done her graduation and post-graduation in History from the University of Delhi. At The Indian Express, she writes for the UPSC section. She holds experience in UPSC-related content development. You can contact her via email: khushboo.kumari@indianexpress.com ... Read More

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