UPSC Key: Nepal crisis, India’s 15th Vice-President, and Gyanex

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-II: India and its neighbourhood- relations.

What’s the ongoing story: Amid a deepening political crisis in Nepal, following a sharp escalation in the anti-government “Gen Z protests” a day after 20 youths were killed in police action, Prime Minister K P Sharma Oli resigned on Tuesday. 

Key Points to Ponder:

— Know in detail about Nepal’s GenZ Protest.

— What led to the anti-government “Gen Z protests” in Nepal?

— Why are the ongoing demonstrations in Nepal being called the Gen Z protests?

— Compare the Bangladesh crisis and the Nepal crisis?

— What can be the implications of blanket bans on social media platforms?

— What can be the regional implications of Nepal’s ongoing political churn?

— What can be the impact of political instability in Nepal on India-Nepal relations?

Key Takeaways:

From the Front Page “Oli-garchy falls: PM quits, President offers to talk to protesters as Parliament set ablaze”

— Defying curfew orders, protesters hit the streets for the second day in Kathmandu, blocking roads, storming government buildings — including Parliament, the President’s office, Supreme Court and political party offices — and setting them on fire, targeting the private residences of President Ram Chandra Poudel, Oli and some former Prime Ministers among others, and also, in some cases, attacking political leaders. Protests were also reported from other parts of the country.

— As the protests intensified, Oli announced that he was stepping down. The President accepted the resignation and appointed Oli to lead a caretaker government until a new one is in place. But with both Poudel and Oli in hiding, Nepal has drifted into a situation of unprecedented chaos and uncertainty.

— In a video message, Nepal Army Chief General Ashok Raj Sigdel also urged protesters to stop the demonstrations, prevent further loss of life and property, and engage in dialogue. Later at night, the Army took control of the Kathmandu airport as well as the government’s main secretariat building.

— Meanwhile, ‘Next Gen Nepal’, one of the outfits behind the ongoing protests, called for “calm and discipline” and said while they were ready for dialogue, Parliament would have to be dissolved first. 

From the Explained Page “Why is Kathmandu burning?”

— A couple of months ago, some Facebook pages, including one called Next Generation Nepal, began to post on the grim political situation in Nepal and the massive corruption in high places.

— No specific individuals appeared to be promoting the posts, but it was clear that most of them belonged to a generation that was born between 1996 and 2012, the cohort known as “Generation Z”, or ‘Gen Z’.

— The young people, teens and those in their 20s, expressed their anger and frustration at the corrupt political system — and the immunity that politicians who have run Nepal by turns since the republic was created in 2008, have given themselves from investigation or accountability.

— The criticism especially targeted the extravagant lifestyles of the children and wards of senior politicians, and expressions like ‘Nepo Babies’ and ‘Nepo Kids’ trended online.

— A couple of weeks ago, the government banned 26 social media platforms, including prominent ones like Facebook, WhatsApp, Instagram, X, and YouTube, for failing to register with the authorities by a certain deadline.

— The digital ban took away the primary avenue that Gen Z was using to vent, comment, and seek solidarity among themselves, and greatly aggravated their anger.

— The frustration boiled over on Monday, when large numbers of young people came out on the streets, and 19 were killed after police and security forces opened fire.

— The protesters did not put forth any specific demands other than the lifting of the ban on social media, which was fulfilled on Monday evening. In more general terms, they sought an end to corruption, social inequality, and the lack of job opportunities.

With the government having resigned, who is in charge in Nepal now?

— No clear way forward was visible on Tuesday. There were demands for the dissolution of Parliament. The unprecedented situation pointed to a further deepening of the constitutional crisis and potentially, the collapse of the current system and the constitution.

— Nepal’s Army said it would take charge of security operations from Tuesday evening, and appealed to the public to cooperate with the forces.

— It is unlikely that the Army will step into a direct political role. However, it will probably have to take the responsibility of facilitating dialogues among the political players, along with maintaining peace and tranquility in the absence of the government.

— The protesters have targeted almost all senior political leaders in the country. Balen Shah, a former rapper in his 30s, and RSP leader Lamichhane, a former television anchor, have expressed support for the GenZ protesters. The pro-monarchy Rastriya Prajatantra Party (RPP) is considering resigning from parliament.

— The former King, Gyanendra Shah, has sent a message of commiseration to the families who have lost one or more members in the violence, and he has wished a speedy recovery to those who have been injured.

— He has also issued an urgent appeal to all sides to sit together and find a solution to the crisis, which suggests that he may be willing to play a role similar to the one envisaged for the monarch by the country’s pre-republic Constitution.

How is India looking at this situation?

— India will be deeply concerned as its next-door neighbour burns. But it will find itself facing a delicate situation, as it is seen as being aligned more closely with some sides of Nepal’s body politic. India lost its traditional goodwill with the monarchy and the Nepali Congress when it led the international initiative to abolish the monarchy, and bring the Maoists to the centrestage of Nepali politics.

— Late on Tuesday evening, Prime Minister Narendra Modi chaired a meeting of India’s Cabinet Committee on Security, which discussed the developments in Nepal.

From the page Nepal Crisis “Jobs to inequality to corruption: What lit the fuse in Nepal”

— The country’s biggest slow-burning crisis centers on jobs. Getting one is a herculean task in Nepal, a mountainous nation of 30 million sandwiched between India and China. According to the Nepal Living Standard Survey published by the National Statistics Office in 2024, the unemployment rate was 12.6 per cent, more than a point higher than it was five years earlier.

A protester celebrates standing at the top of the Singha Durbar, the seat of Nepal’s government’s various ministries and offices, after it was set on fire in Kathmandu, Nepal, Tuesday, Sept. 9, 2025. (AP Photo/Niranjan Shrestha)

— Those figures tend to understate the severity of the problem. They represent only participants in the formal economy, leaving out the majority of Nepalis, who work without officially reported jobs, mostly in farming. And unemployment is heavily concentrated among younger adults who hold out hope for real jobs.

—  If there were one thing to blame for this cluster of economic problems, many Nepalis, especially those active in this Gen Z protest, would point to corruption. They recoil at the spectacle of a small number of elite Nepalis accumulating vast estates for their children. Transparency International has ranked Nepal as one of the most corrupt countries in Asia.

— A steady drumbeat of scandals, typically involving collusion among elected politicians and supposedly independent officials, feeds this resentment. Very few accusations result in successful prosecutions. Health and education expenses are high. Farmers lack critical fertiliser during the rice-planting season. Inflation makes it tough for anyone to survive in Kathmandu, where young people move to pursue higher education and jobs.

Do You Know:

From The Editorial Page “Quake in Nepal”

— This is not the first time in the recent past that youth-led movements have toppled regimes in India’s neighbourhood. Last year in Bangladesh, anti-quota protests snowballed into a full-fledged anti-government uprising that ended Sheikh Hasina’s 15-year rule. 

— In Sri Lanka, in 2022, corruption and economic mismanagement that led to soaring inflation and acute food and fuel shortages sparked a revolt that brought down the Rajapaksa family. 

— India should continue to monitor the situation in its neighbourhood and remain vigilant. In the wake of the turmoil in Nepal, New Delhi should keep a close watch on how the political situation in the country unravels. It should be alert to a Bangladesh-like regime change and be ready to safeguard India’s interests amid the flux.

Other Important Articles Covering the same topic:

📍Jobs to inequality to corruption: What lit the fuse in Nepal

📍What next? Army says will protect, new govt up in air

📍Listen to Gen Z next door

Previous year UPSC Prelims Question Covering similar theme:

(1) Consider the following pairs: (UPSC CSE 2016)

	Community sometimes mentioned in the news	In the affairs of
1.	Kurd	Bangladesh
2.	Madhesi	Nepal
3.	Rohingya	Myanmar

Which of the pairs given above is/are correctly matched?

(a) 1 and 2 only

(b) 2 only

(c) 2 and 3 only

(d) 3 only

Radhakrishnan is new V-P, Opp falls short of own tally amid invalid votes, cross-vote 

Syllabus:

Preliminary Examination: Current events of national importance, Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.

Mains Examination: General Studies-II: Parliament and State legislatures—structure, functioning, conduct of business, powers & privileges and issues arising out of these.

What’s the ongoing story: Chandrapuram Ponnusami Radhakrishnan was elected India’s 15th Vice-President on Tuesday, defeating B Sudershan Reddy by a margin of 152 votes. The outcome came as a jolt to the Opposition bloc, whose hopes of securing at least 320-plus votes appeared to have been dashed by cross-voting. 

Key Points to Ponder:

— How is the Vice-President of India elected?

— What are the constitutional provisions regarding the office of the Vice-President of India?

— What are the eligibility criteria for Vice-Presidential candidates?

— What is the term of office of Vice-President?

— What are the powers and functions of the Vice-President of India, especially as the ex-officio Chairman of the Rajya Sabha?

— What is the procedure for the removal of the Vice-President of India?

Key Takeaways:

— NDA nominee Radhakrishnan, 67, an old-time RSS and BJP leader, secured 452 of the 752 valid votes polled – with 15 declared invalid – against Reddy’s 300.

— The BJP-led NDA had on paper 427 MPs, plus the support of the YSRCP’s 11 MPs. Some MPs representing smaller parties also backed him. This made Radhakrishnan’s victory a foregone conclusion, way above the halfway mark of 377. But the final tally surpassed the expectations of the BJP, which hoped for around 440 votes for Radhakrishnan.

— The Congress’s confidence, on the other hand, evaporated quickly. Soon after the voting ended at 5 pm, Jairam Ramesh said: “The Opposition has stood united. All of its 315 MPs have turned up for voting. This is an unprecedented 100 per cent turnout.”

— The electoral college for the V-P election comprises members of the two Houses of Parliament. Together, they number 788 – 245 MPs in the Rajya Sabha and 543 in the Lok Sabha. Of these, six seats are vacant in the Rajya Sabha and one in the Lok Sabha. Of the 781 who comprised the electorate Tuesday, 767 cast their votes (98.2% turnout), of which 752 votes were found to be valid, Rajya Sabha Secretary General P C Mody, the Returning Officer for the election, said.

— Incidentally, the same number of votes, 15, were found invalid in the 2022 vice-presidential election too, when Jagdeep Dhankhar was elected.

— This was the second narrowest margin of victory in terms of votes in the V-P election. The narrowest so far has been the 2002 contest between NDA nominee Bhairon Singh Shekhawat vs Opposition candidate Sushilkumar Shinde, when Shekhawat won by 149 votes.

— A two-time Lok Sabha MP from Tamil Nadu’s Coimbatore, Radhakrishnan is currently the Maharashtra Governor, having moved from the Jharkhand Raj Bhavan in July last year.

Do You Know:

— The Vice-President’s office is a unique feature of India’s parliamentary system and has no exact parallel in other democratic countries, including the Commonwealth.

— The second-highest constitutional authority after the President, the Vice-President draws his/her powers from Article 63 of the Constitution of India, which states that “there shall be a Vice-President of India.”. 

— Article 64 goes on to confer upon the post the power to be “ex officio Chairman of the Council of States (the Rajya Sabha).” Thus, we see that Vice-President discharges the duties of both the Vice-President and Rajya Sabha chairperson.

Other Important Articles Covering the same topic:

📍UPSC Issue at a Glance | Office of Vice-President of India: 5 Key Questions You Must Know for Prelims and Main

Previous year UPSC Prelims Question Covering similar theme:

(2) Consider the following statements: (UPSC CSE 2013)

1. The Chairman and the Deputy Chairman of the Rajya Sabha are not the members of that House.

2. While the nominated members of the two Houses of the Parliament have no voting right in the presidential election, they have the right to vote in the election of the Vice-President.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Previous year UPSC Mains Question Covering similar theme:

Discuss the role of the Vice-President of India as the Chairman of the Rajya Sabha. (UPSC CSE 2022)

 

GOVT & POLITICS

SC underlines ‘reasonable time’ for nod to Bills, flags ‘risk’ in fixing time limit

Syllabus:

Preliminary Examination: Indian Polity and Governance – Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues

Mains Examination: General Studies-II: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure, devolution of powers and finances up to local levels and challenges therein.

What’s the ongoing story: The Supreme Court on Tuesday said Governors were expected to give assent to Bills passed by the state legislatures within “reasonable time” but fixing time limits for the President and Governor will throw up a lot of litigation. The top court also said the fear is that the court is being dragged into a situation to monitor the legislative process.

Key Points to Ponder:

— What are the constitutional provisions related to the Governor and President?

— How is the Governor appointed in a state?

— What are the various powers of the Governor? 

— What are the discretionary powers of the Governor?

— Read about Articles 200 and 201.

— What is article 143(1) of the Constitution?

— What are the powers of the President of India?

— What was the April 8 decision given by the Supreme Court?

Key Takeaways:

— The bench presided by CJI B R Gavai and also comprising Justices Surya Kant, Vikram Nath and A S Chandurkar is hearing the reference made by President Droupadi Murmu in the wake of the SC fixing time limits for President and Governors to act on Bills.

— Meanwhile on Tuesday, opposition-ruled Punjab, Karnataka and Kerala argued that the Governor of a state does not have any discretion with respect to Bills presented to him by a state legislature, except those expressly conferred by the Constitution.

— Senior Advocate Gopal Subramanium, appearing for Karnataka, told the bench that “Governor is not conferred with any discretion by or under the constitution in relation to Article 200. Under Article 200 the Governor is bound to act in accordance with ministerial advice while deciding to grant assent, or withhold assent for the purpose of returning a Bill to the House or Houses for reconsideration or reserve a Bill for the President’s consideration. The sole exception is found in Article 200(2) which entitles the Governor to exercise discretion in reserving any Bill for the President’s consideration if in the opinion of the Governor, the Bill would derogate from the powers of the High Court as to endanger its constitutional position.”

— Subramanium said the “Governor does not act as a representative of the President or agent of the Centre. The Governor swears an oath under Article 159 to devote himself to the service and wellbeing of the people of the state. This commitment clearly indicates that the Governor is intended to act in the interest of the state.”

— He said that the Centre’s argument “in support of an absolute power to veto” that a Governor can withhold a Bill without returning it to the state legislature “will render the state elections completely futile. It is contrary to letter and spirit of the constitution”. He added that “constituent Assembly debates firmly demonstrate that the founders intended the Governor to only be a titular head acting on ministerial advice.”

— Senior Advocate K K Venugopal for Kerala said the Constitution requires the Governor to act “as soon as possible” and this meant to act “forthwith” and not “as soon as convenient”. He said “Even if the phrase was not there, if a money Bill is presented to him along with other Bills, he has to deal with the money Bill forthwith because the consequences of not assenting to a money Bill will be stupendous.” The hearing will continue Wednesday.

Do You Know:

— In a reference to the Supreme Court, President Droupadi Murmu has posed 14 crucial questions over the top court’s April 8 verdict that fixed timelines for Governors and the President to act on Bills passed by state Assemblies.

— Seeking the Supreme Court’s opinion under Article 143(1), Murmu sought to know whether the actions of the Governors and President are justiciable and whether such timelines can be imposed on them in the absence of any such provision in the Constitution.

— The reference pointed out that “there are conflicting judgments of the Supreme Court as to whether the assent of the President of India under Article 201 of the Constitution of India is justiciable or not”.

— Under Article 145 (3), when the President makes a reference for the court’s opinion, it is placed before a five-judge bench. 

Other Important Articles Covering the same topic:

📍Knowledge Nugget: Why is the Governor’s right to withhold assent to a Bill important for UPSC Exam?

📍President asks SC on assent to Bills: Can court impose timelines to decide?

Previous year UPSC Prelims Question Covering similar theme:

(3) Which one of the following statements is correct? (UPSC CSE 2013)

(a) In India, the same person cannot be appointed as Governor for two or more States at the same time

(b) The Judges of the High Court of the States in India are appointed by the Governor of the State just as the Judges of the Supreme Court are appointed by the President

(c) No procedure has been laid down in the Constitution of India for the removal of a Governor from his/her post

(d) In the case of a Union Territory having a legislative setup, the Chief Minister is appointed by the Lt. Governor on the basis of majority support

 

EXPRESS NETWORK

Gaganyaan: ISRO conducts simulation missions

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies-III: Science and Technology- Achievements of Indians in science & technology; indigenization of technology and developing new technology; Awareness in the fields of IT and space.

What’s the ongoing story: Before it sends the actual human spaceflight mission under the Gaganyaan programme, the ISRO has been conducting simulation missions — known as ‘analog’ experiments — during which selected astronauts are spending several days in confined spacecraft-like conditions.

Key Points to Ponder:

— What is the Gaganyaan mission?

— What are the key features of India’s Manned Mission to Space?

— What are Gaganyaan Analog Experiments, or Gyanex?

— What is the significance of the Gaganyaan mission? 

— What are the other important space missions of the ISRO? 

— Read about the Indian Space Research Organisation.

— What are the challenges India faces in establishing a long-term human spaceflight program?

Key Takeaways:

— Apart from getting the astronauts accustomed to space-like conditions, these experiments are meant to help ISRO develop protocols for processes such as communication and resource management for a human space mission.

— The only thing missing in these Gaganyaan Analog Experiments, or Gyanex, is the absence of gravity.

— During the Gyanex missions, the astronaut designates, and others, live in a confined crew module and space station, carrying out all activities that the astronauts would have to do in space, including following the routine and conducting scientific experiments. The participants have access to only things that would be available on the space station or crew module. And, during this period, they eat the food developed by DRDO.

— These experiments are being conducted in a static mock-up simulator, a model of the spacecraft, in Bangalore.

— The first in the series of these experiments, Gyanex-1, was conducted in July, during which Group Captain Angad Pratap along with two others, remained confined in the simulator for 10 days. The crew members conducted 11 science experiments during this period.

— The first human spaceflight mission under Gaganyaan is slated for 2027.

Do You Know:

— Analog space missions are field tests in locations on Earth that have physical similarities to the extreme space environments and play a significant role in problem-solving for spaceflight research.

— To launch human space missions, the necessary Indian subject data are required for addressing various physiological, psychological and operational challenges associated with the missions. In this regard, according to the ISRO, ground based analog missions in the environment simulating certain aspects of a typical human space mission provide an opportunity to understand the human health and performance risks.

Other Important Articles Covering the same topic:

📍What the success of Gaganyaan could mean for Indian science

Previous year UPSC Prelims Question Covering similar theme:

(4) Consider the following space missions: (UPSC CSE 2025)

I. Axiom-4

II. SpaDeX

III. Gaganyaan

How many of the space missions given above encourage and support micro-gravity research?

(a) Only one

(b) Only two

(c) All three

(d) None

 

ECONOMY

RBI cuts holdings in US Treasury securities: Why Trump’s tariffs could further the trend

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: Ahead of US President Donald Trump’s decision to slap a 50 per cent tariff on Indian imports, India had pared down its exposure to US Treasury Bills (T-bills) over the past year, signalling a cautious shift in the Reserve Bank of India’s (RBI) foreign exchange reserve strategy. This trend could get more pronounced going forward, even though there are multiple factors that could come into play as the trade-off is debated in the policy circles.

Key Points to Ponder:

— What are Treasury Bills (T-bills)?

— Why do Central banks and sovereign wealth funds invest in US Treasury securities?

— What are the key investors in US Treasury securities?

— Read about India’s forex reserves.

— What are the functions of RBI?

— Why does the RBI invest in US Treasury Bills?

— What are the major components of India’s foreign exchange reserves?

— Why is diversification important in the management of India’s foreign exchange reserves?

Key Takeaways:

— According to US Department of Treasury data, India’s holdings in US securities had peaked at $247.2 billion in September 2024, before sliding gradually to about $219.1 billion by December 2024. 

— India, the 10th-largest investor in T-bills, held around $227 billion in US Treasury securities as of June 2025, compared with $242 billion in June 2024. The decline of about $20 billion since September last year reflects a measured reduction spread over several months.

— Analysts say that the US has the ability to freeze or restrict access to Treasury securities in exceptional cases, typically driven by geopolitical or national security concerns. Following Russia’s invasion of Ukraine, Washington and its allies blocked Moscow’s access to a significant share of its foreign reserves held overseas, including dollar- and euro-denominated assets. 

— The episode underscored that, in extreme circumstances, the US can effectively cut off a country’s access to its Treasury holdings through the US financial system. A rare event with little precedent, but a theoretical possibility.

— The RBI’s own data does reflect a moderation of sorts. India’s overall holdings in global securities and T-bills fell to $485.35 billion in March 2025, from $515.24 billion in September 2024, leading to a decline in overall foreign currency assets to $ 567.55 billion. The RBI is yet to publish data as of August 2025.

— At the same time, the central bank has adjusted its gold reserves. RBI data shows that gold held abroad declined to 348.62 tonnes in March 2025, compared with 387.26 tonnes a year earlier. Domestically, the RBI held 511.99 tonnes in March 2025, a sharp rise from 408.10 tonnes in March 2024. This rebalancing highlights the RBI’s dual approach of diversifying assets while maintaining sufficient liquidity.

— Central banks and sovereign wealth funds invest significantly in US Treasury securities, viewing them as among the world’s safest and most liquid assets. Backed by the US government, Treasuries form part of the largest and most active bond market globally.

— The RBI’s foreign exchange reserve management continues to prioritise safety, liquidity, and return—in that order. Investments in T-bills and government bonds represent the debt obligations of highly rated sovereigns, central banks, and supranational institutions.

— Treasury securities are particularly attractive because of their depth and liquidity. As the RBI itself notes, these instruments can often be liquidated in large volumes without causing sharp price distortions in the market, making them ideal vehicles for managing reserves.

— With foreign exchange reserves touching new highs in 2025, the RBI’s calibrated reduction in US T-bills and realignment of gold holdings reflects its cautious approach amid global financial uncertainty. By spreading investments across sovereign debt, supranational bonds, deposits, and gold, the RBI aims to strike a balance between liquidity, security, and returns while safeguarding the nation’s financial stability.

Do You Know:

— While the US remains the largest destination for India’s reserve investments, the RBI also holds high-rated government securities from countries such as Japan, Germany, France, and the UK. Additionally, a portion of reserves is parked in bonds issued by multilateral institutions like the World Bank, the International Monetary Fund (IMF), and the Asian Development Bank (ADB).

— Other allocations include deposits with central banks and the Bank for International Settlements (BIS), alongside physical gold. This broad diversification ensures that India’s reserves are not overly dependent on one asset class or geography.

— Japan is the largest investor in US Treasury securities at $1,147 billion, followed by the UK at $858.1 billion and China at $756.4 billion, as per US Treasury Department’s TIC data. 

Other Important Articles Covering the same topic:

📍UPSC Issue at a Glance | RBI Explained – History, tools of monetary policy, and surplus transfer

Previous year UPSC Prelims Question Covering similar theme:

(5) Which of the following are the sources of income for the Reserve Bank of India? (UPSC CSE 2025)

1. Buying and selling Government bonds

2. Buying and selling foreign currency

3. Pension fund management

4. Lending to private companies

5. Printing and distributing currency notes

Select the correct answer using the code given below.

(a) I and II only

(b) II, III and IV

(c) I, III, IV and V

(d) I , II and V

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