UPSC Key: New legal metrology rules, Chinese overcapacity, and AI vs Copyright Law

Preliminary Examination: Current events of national and international importance; Indian and World Geography – Physical, Social, Economic Geography of India and the World.

Mains Examination: General Studies III: Science and Technology- Developments and their Applications and Effects in Everyday Life.

What’s the ongoing story: The Union Consumer Affairs Ministry on August 27 notified new rules that make Indian Standard Time (IST) the legally enforceable reference for official and commercial use. 

Key Points to Ponder:

— Which longitude is used as the basis for Indian Standard Time (IST), and why was this longitude selected? 

— Locate it on the map and identify the important places through which it passes.

— What is a meridian? Distinguish between meridians of longitude and parallels of latitude. 

— What is the Prime Meridian? Where does it pass? 

— Recall the relationship between longitude, Earth’s rotation and time.

— Why is IST 5 hours 30 minutes ahead of UTC?

— Read about GNSS, GSP, and NavIC. 

— Why do some countries maintain multiple time zones?

— Why does India have a single time zone despite its wide east- west geographical extent? 

Key Takeaways:

— The Legal Metrology (Indian Standard Time) Rules, 2026 now require time-dependent systems in government and critical sectors to use a “traceable”, authorised IST reference, with 180 days for compliance. But India has already followed IST for decades. Why were the new rules needed and what changes with them?

— People obtain time from many sources, often indirectly from GPS. A telecom provider provides the time maintained in its data centre, but there may be a lag of seconds or even minutes as people and organisations refer to different sources.

— “It is like each person establishing their own starting point; you then cannot properly compare events or measurements,” said Poonam Arora, Head of the Time & Frequency Metrology Division at the Council Of Scientific And Industrial Research (CSIR)-National Physical Laboratory.

— The Department of Legal Metrology enforces measurements such as mass and volume. Inspectors can check the gauges at a petrol pump or verify the weights used by an establishment. They did not have an equivalent capability for time — until now. The new rules seek to give time a legal status and make it comparable to these physical measurements.

— The broader purpose of the new rules, that call for “traceability”, is to make IST the country’s common legal time reference for commercial and other purposes, including the display of time. “This can also improve cybersecurity, reduce crime and make critical infrastructure more resilient,” said Arora.

— In the context of time, traceability means showing that a clock or time source is ultimately linked to IST maintained by NPL.

Do You Know:

— The CSIR-NPL is mandated to maintain the country’s scientific standards, such as mass and volume. Maintaining (or “realising”) and disseminating IST is also part of its mandate.

— A bank of extremely precise atomic clocks helps the NPL maintain the country’s time within a few nanoseconds of the international reference, Coordinated Universal Time (UTC). According to the NPL website, these clocks are so accurate that they would lose or gain one second in about three lakh years.

— “IST is a registered trademark of CSIR-NPL,” Arora said. “The NPL maintains UTC (NPLI), India’s realisation of UTC. Indian Standard Time is UTC (NPLI) plus five hours and 30 minutes.”

Other Important Articles Covering the same topic:

📍Knowledge Nugget | White Rabbit Technology: Why it can be a game changer for India’s timekeeping

📍Exclusive | Why India is making IST legally enforceable: An expert explains

Previous year UPSC Prelims Questions Covering similar theme:

(1) Which of the following statements is/are correct with respect to Time Zone in India? (UPSC CDS-II, 2021) 

1. There is one standard time for the whole country.

2. Andaman and Nicobar Islands and Lakshadweep Islands have different Time Zones.

3. Indian Standard Time (IST) is five and half hours behind GMT.

Select the correct answer using the codes given below.

(a) Only 1

(b) Only 2

(c) 1 and 2

(d) 1 and 3

(2) Consider the following countries: (UPSC CSE, 2025) 

1. United Kingdom

2. Denmark

3. New Zealand

4. Australia

5. Brazil

How many of the above countries have more than four time zones?

(a) All the five

(b) Only four

(c) Only three

(d) Only two

Can AI claim copyright for original work? A question of authorship

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies III: Awareness in the fields of IT, Space, Computers, Robotics, Nano-technology, Bio-technology and issues relating to Intellectual Property Rights.

What’s the ongoing story: Can AI companies use copyrighted material to build their systems? And can something an AI creates be copyrighted in turn?

Key Points to Ponder:

— What is Artificial Intelligence (AI)? How is it different from conventional computer programmes?

— What is Generative AI? How is it different from other forms of AI?

— What are Large Language Models (LLMs)? How do they work at a basic level?

— What are the major applications of Artificial Intelligence?

— What are the limitations and risks associated with Artificial Intelligence?

— What is Intellectual Property Rights (IPR)? What are its major components?

— What is copyright? What kinds of works can be protected under copyright law?

— Identify the major provisions of India’s copyright law.

— How does copyright protection balance the interests of creators and the wider public?

— What is the difference between copyright infringement and fair dealing?

— How can Artificial Intelligence create new challenges for copyright law?

— Can a work created using Artificial Intelligence receive copyright protection? Examine the issue in the context of recent developments in India.

— Can copyrighted material be used to train Artificial Intelligence systems? What legal issues arise?

— How should copyright law address the use of copyrighted works for AI training?

Key Takeaways:

— The Copyright Office answered the second question on August 31, rejecting an application filed by American computer scientist Stephen Thaler seeking copyright registration for an artwork generated by his AI system, DABUS.

— The Office found the artwork original because nothing on record showed it was copied from any specific existing work, not because AI-made works are inherently original. 

— And the human-authorship requirement doesn’t disappear either. Even if a work is original, someone still has to be identifiable as the person who “caused” it to be created.

— It said that the person who creates something “refers to the person who brings about, or is responsible for, the coming into existence of the work. The emphasis is upon responsibility for the work’s origination, rather than upon the instrument, mechanism or tool through which its final expression is generated.”

— The order is among the first decisions in India to address a question that is becoming increasingly important: if an AI system generates a work, who, if anyone, is its author?

Do You Know:

— Conventional use of the terms AI and generative AI refers to a subset of artificial intelligence called large language models (LLMs). These models learn statistical patterns from enormous volumes of text input and generate textual (or visual) output based on the quality of data fed into them.

— The Turing Test, proposed by British mathematician Alan Turing in the 1950s, is a test of a machine’s ability to exhibit intelligent behaviour that a human evaluator cannot distinguish from that of a human. To date, it is considered a benchmark for AI.

Other Important Articles Covering the same topic:

📍How India proposes to deal with legal challenges posed by AI to copyright law

📍Is training an AI model ‘public interest’? Delhi HC verdict goes to heart of copyright debate

📍Expert Explains | Why ‘lawful access’ may not be required for AI training in India

Previous year UPSC Prelims Question Covering similar theme:

(3) With the present state of development, Artificial Intelligence can effectively do which of the following? (UPSC CSE, 2020) 

1. Bring down electricity consumption in industrial units

2. Create meaningful short stories and songs 

3. Disease diagnosis 

4. Text-to-Speech Conversion 

5. Wireless transmission of electrical energy

Select the correct answer using the code given below:

(a) 1, 2, 3 and 5 only

(b) 1, 3 and 4 only

(c) 2, 4 and 5 only

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

Previous year UPSC Mains Questions Covering similar theme:

(1) Introduce the concept of Artificial Intelligence (AI). How does AI help clinical diagnosis? Do you perceive any threat to the privacy of the individual in the use of AI in healthcare? (UPSC CSE, 2023) 

(2) What is agentic Artificial Intelligence (AI)? Explain its working. Describe its applications with suitable examples. Discuss the advantages, risks and challenges associated with agentic AI systems. (UPSC CSE, 2026) 

(3) Owing to paucity of time, a university professor generates a Ph.D. evaluation report using Artificial Intelligence and submits it with some modifications. Discuss this from the perspective of accountability and integrity. (UPSC CSE, 2026) 

Fragile ecology, competing interests: the red flags in building Himalayan Dams

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies I and III: Changes in critical geographical features (including water-bodies and ice-caps) and in flora and fauna and the effects of such changes; Disaster and Disaster Management.

What’s the ongoing story: Five days after a glacier collapse near the China-Tibet border triggered floods, over 734 people have died, and over 3,000 others remain missing, including nearly 320 Indians.

Key Points to Ponder:

— What are the major physical features of the Himalayas?

— What are the major natural hazards associated with the Himalayan region?

— What is a glacier? How are different types of glaciers classified?

— Identify and understand different types of glacial landforms. 

— What is a hanging glacier?

— What factors can cause glacier instability?

— How can climate change affect glaciers and glacial lakes in the Himalayas?

— What is the carrying capacity of a fragile ecosystem? How can it be assessed in the Himalayan region? 

— What are Glacial Lake Outburst Floods (GLOFs)?

— How can India and other Himalayan countries improve early warning and disaster preparedness?

Key Takeaways:

— The large-scale fallout, however, does not mean that the event was a rare occurrence. The Himalayan region is all too familiar with other similarly destructive phenomena. The event has also led experts to reiterate concerns about recent man-made changes, ranging from infrastructure buildup to high tourist volumes, all occurring amid quickly changing climatic conditions.

— Y Nithiyanandam, a professor and the head of the Geospatial Programme at The Takshashila Institution, Bengaluru, told The Indian Express, “The Himalayas are a naturally fragile mountain system, already prone to earthquakes, landslides, avalanches and flash floods. What climate change may be doing is increasing the underlying vulnerability.”

— The Himalayan topography includes lakes formed by melting glaciers, fast-flowing rivers and steep slopes. They dot a region highly vulnerable to strong earthquakes and disproportionately affected by climate change.

— In a 2022 article for Nature, researchers highlighted that “High Mountain Asia (HMA), the Earth’s most important and vulnerable water tower, is warming at a rate that is double the global average (0.32°C per decade compared with the global average of 0.16°C per decade).” The HMA includes the Tibetan Plateau and surrounding ranges, like the Himalayas.

— Temperature changes affect the pace and frequency of natural processes, including the melting and thawing of snow and glacial lake outburst floods (GLOFs) or when water collected from melting glaciers overflows. 

Do You Know:

— A study by Ashim Sattar of the School of Earth, Ocean and Climate Sciences, Indian Institute of Technology, Bhubaneswar and Nandu Krishnan of the Divecha Centre for Climate Change, Indian Institute of Science, Bengaluru, alongside two colleagues — flagged that Himalayan glaciers are increasingly exhibiting “geometric and dynamic instability” owing to rapid warming and climate variability.

— Unstable glaciers are essentially those whose velocity may change by an order of magnitude and more during a comparatively short period of time. The result is redistribution of ice, accompanied by geometric and structural-and-tectonic shifts.

— This instability then leads to the development of hanging glaciers on steep slopes. While these glaciers have been extensively studied in the Alps, basin-scale assessments in the Himalayas remain limited. Hanging glaciers pose a significant risk of break-offs. 

Other Important Articles Covering the same topic:

📍What are ‘hanging glaciers’ and why are they a major risk for India?

📍Shyam Saran writes | From Nepal to Uttarakhand and China, the mountains are warning us

📍Nepal flash floods: As glacial collapse emerges as likely trigger, is India prepared?

Previous year UPSC Mains Question Covering similar theme:

Bring out the relationship between the shrinking Himalayan glaciers and the symptoms of climate change in the Indian sub-continent. (UPSC CSE, 2014)

THE EDITORIAL PAGE

Cauvery needs a distress-sharing pact 

Syllabus:

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

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 opening of the Mettur Dam’s sluice gates by Tamil Nadu Chief Minister C Joseph Vijay on Tuesday will provide some relief to Cauvery Delta farmers. In a normal year, the dam opens on June 12, and its gates are shut on January 28, giving the region’s agriculturists a 230-day irrigation window. This schedule is, however, contingent on the monsoon and the release of water in the Cauvery’s upstream by Karnataka.

Key Points to Ponder:

— What is the Cauvery water dispute?

— What is the Mekedatu project and the dispute surrounding it?

— Why is the Cauvery water-sharing dispute resurfacing?

— Cauvery Water Management Authority (CMA)-Know in brief

— How is the Cauvery water being shared?

— Read about the Mettur Dam.

— What does the Indian Constitution say about water sharing?

— How many interstate water disputes are there in India?

— The resolution of the water dispute is governed by which act?

— Inter-State River Water Disputes (ISRWD) Act, 1956-Know the highlight.

— Map Work: Cauvery River (Source, drainage pattern, tributaries, distributaries, delta etc.)

Key Takeaways:

— The Tamil Nadu government has ascribed this year’s delay to the deficit in the southwest monsoon and Karnataka’s failure to honour its water-sharing obligation under the Supreme Court’s 2018 verdict. 

— The dispute between the lower and upper riparian states ignited political tensions in the past three months, and the matter went to the Supreme Court, but the impasse wasn’t resolved. With the rainfall deficit narrowing in August, the Tamil Nadu government has leeway to release water for 45 days.

— The Cauvery Management Authority, set up to oversee the implementation of the 2018 verdict, has worked during normal monsoon years. But the Court did not codify a formula for water-sharing in years when the rains play truant. Its emphasis on sustainable water use was lost on the two states, and the dispute flared up again in 2023 — the first below-par monsoon after 2018.

— The Tamil Nadu government has said that it will continue legal efforts to secure its share of the Cauvery’s waters. Karnataka’s push for the Mekedatu Dam on the river has reignited old fears . The D K Shivakumar government’s argument that the dam would primarily serve Bengaluru’s water needs while allowing better regulation of releases hasn’t found any takers in Tamil Nadu. 

— The fact is, the Cauvery today has to meet the competing demands of agriculture and urbanisation. Therefore, rather than lean on the judiciary, Cauvery-dependent states would do well to come together and plan for the efficient use of the river’s waters. 

— Solutions ranging from disincentivising water-intensive crops to encouraging decentralised water management will require inputs of hydrologists, economists, agri-scientists and farmers’ organisations. Representatives of the two states will need to sit together, understand each other’s fears and shed confrontationist attitudes.

Do You Know:

— The Mekedatu dam project is located in Ramanagaram district, about 100 km south of Bengaluru, close to where the Cauvery enters Tamil Nadu. The dam has a proposed capacity of 48 TMC (thousand million cubic feet) and an estimated cost of Rs 6,000 crore.

— The proposed project has been contentious for years. Tamil Nadu maintains that increased upstream storage could enable Karnataka to regulate flows in a manner detrimental to downstream releases during dry years.

— Article 246 of the Constitution provides a framework to distribute legislative powers between the states and the Centre through the Seventh Schedule, which includes the Union List, the State List and the Concurrent List.

— Entry 17 of the State List deals with water – covering water supplies, irrigation and canals, — drainage and embankments, water storage and water power – subject to the provisions of entry 56 of the Union list. 

— Entry 56 of the Union List provides that the regulation and development of inter-State rivers and river valleys is declared by Parliament by law. 

— Article 262 further provides Parliament with powers related to the adjudication of inter-state river water disputes related to its use, control, distribution, etc. 

— In addition, under Article 262, Parliament has enacted the Inter-State River Water Disputes (ISRWD) Act, 1956, for the adjudication of disputes relating to waters of inter-state rivers and river valleys. The act has been amended four times, with the last amendment being in 2002. 

— Under Section 3 of the Act, in the case of river water dispute between two or more states, any state can approach the Centre. If the Centre is of the opinion that the given dispute cannot be settled by negotiations, it can constitute a Water Disputes Tribunal for the adjudication.

Other Important Articles Covering the same topic:

📍What’s the Cauvery dispute and how does the Mekedatu dam feature in it?

📍Cauvery water dispute: All you need to know

Previous year UPSC Prelims Question Covering similar theme:

(4) Which of the following Protected Areas are located in the Cauvery basin? (UPSC CSE, 2020)

1. Nagarhole National Park

2. Papikonda National Park

3. Sathyamangalam Tiger Reserve

4. Wayanad Wildlife Sanctuary

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 3 and 4 only

(c) 1, 3 and 4 only

(d) 1, 2, 3 and 4 

Previous year UPSC main Question Covering similar theme:

Constitutional mechanisms to resolve the inter-state water disputes have failed to address and solve the problems. Is the failure due to structural or process inadequacy or both? Discuss. (UPSC CSE 2013) 

 

The IDEAS PAGE

Shashi Tharoor writes– Mountains bind India, China, Nepal to a shared destiny. They need to honour it 

Syllabus: 

Preliminary Examination: Indian and World Geography – Physical, Social, Economic Geography of India and the World.

Mains Examination: General Studies III: Disaster and Disaster Management.

What’s the ongoing story: The recent catastrophe that struck Nepal offers a devastating reminder of the fragile, interconnected ecological reality of Himalayan Asia. A sudden collapse of ice and rock high in the mountains above the border region transformed within minutes into a violent surge of water, mud, and debris, sweeping through settlements, crushing critical infrastructure, and claiming over a thousand lives. 

Key Points to Ponder:

— What are the major physical divisions of the Himalayas?

— Why are the Himalayas tectonically unstable?

— What are the major characteristics of young fold mountains?

— Identify the major parallel ranges of the Himalayas.

— Why are Himalayan rivers prone to floods and flash floods?

— How does climate change affect the Himalayan cryosphere?

— What is the significance of the Himalayas for the climate and water resources of South Asia?

— Identify the major transboundary rivers shared by India, Nepal and China.

— What is the role of early warning systems in reducing disaster risk?

— How can remote sensing and satellite technology help in monitoring Himalayan hazards?

— How can unplanned tourism and infrastructure development increase disaster vulnerability in the Himalayas?

— What is climate justice? Why is it relevant to countries vulnerable to climate change despite having low emissions?

Key Takeaways:

— During a high-profile conclave hosted in the capital by a leading Indian television news channel, the gravity of the situation completely reshaped the agenda.

— Addressing the audience, Rabi Lamichhane, the leader of the ruling Rashtriya Swatantra Party, made a poignant observation that cut through standard diplomatic platitudes.

— He noted, almost in passing, that whatever the prevailing geopolitical frictions, strategic rivalries, or sovereign boundary disputes among India, China, and Nepal, all three nations unavoidably share a single, unified mountain system.

— His remarks underscored a shared sentiment reverberating across Kathmandu: This tragedy was not merely an isolated localised accident, but a stark manifestation of accelerated global warming.

—  It is a bitter irony that Nepal, whose greenhouse gas emissions are virtually negligible, bears the most brutal, immediate consequences of global climate change, while its vast, highly industrialised neighbours, especially to the north, account for a substantial portion of the atmospheric warming driving Himalayan glacial collapse. 

Do You Know:

— India has had several major flash flood incidents in recent years, including the Kedarnath tragedy in 2013, the Chamoli disaster in 2021, the Sikkim lake burst in 2023 and in Dharali last year. These incidents claimed hundreds of lives and caused large-scale damage.

— Advanced preparation via remote seismic monitoring and high-altitude early warning systems then takes on greater importance.

— Experts also note the need for correctly zoning critical infrastructure like hydropower plants so they are not erected in high-risk areas. Events like the Nepal floods also point to the need for international cooperation so that upstream glacial instability is communicated downstream before disaster strikes.

Other Important Articles Covering the same topic:

📍Nepal did not create today’s climate crisis. Why should it pay the price?

Previous year UPSC Prelims Question Covering similar theme:

(5) When you travel in Himalayas, you will see the following: (UPSC CSE, 2012) 

1. Deep gorges

2. U-turn river courses

3. Parallel mountain ranges

4. Steep gradients causing land sliding

Which of the above can be said to be the evidences for Himalayas being young fold mountains?

(a) 1 and 2 only                         

(b) 1, 2 and 4 only

(c) 3 and 4 only                         

(d) 1, 2, 3 and 4

Chinese overcapacity is a problem for the world 

Syllabus:

Preliminary Examination: Current events of international importance.

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

What’s the ongoing story: Surendar Singh writes- “The world bemoans Chinese overcapacity as a global structural challenge. China is, after all, the world’s largest trade-surplus economy, with a value of $1.2 trillion, and accounts for roughly 30 per cent of global manufacturing output. Its rise in global manufacturing is largely driven by government subsidies and a state-directed financial system that provides cheap credit.” 

Key Points to Ponder:

— How has China’s manufacturing dominance created both opportunities and vulnerabilities for the global economy?

— How is China’s manufacturing dominance a matter of concern for India?

— What is the status of India-China trade?

— What are the challenges in the path of building a competitive manufacturing ecosystem in India?

— Why is reducing its dependence on Chinese imports a challenge for India?

— What steps should be taken for making India self-reliant in manufacturing

Key Takeaways:

— “State-backed industrial subsidies have enabled Chinese firms to expand without being concerned about profits and returns vis-à-vis their international competitors.”

— “China’s rise has created a form of “absolute advantage” in manufacturing. Its success reflects not only low-cost production but also scale, supplier networks, infrastructure, technological capabilities, and state-supported industrial ecosystems. This allows it to manufacture goods ranging from textiles and machinery to electronics, solar PV, batteries, and EVs at competitive prices. This has far-reaching implications.”

— “First, China’s rise has produced significant economic gains for both developed and developing countries. Low-cost Chinese manufactured goods reduce the prices of consumer goods, machinery, clean technology products and intermediate inputs, thereby supporting industrial transformation and infrastructure development in developing economies.”

— “Second, China’s low-cost mass manufacturing advantage creates asymmetric pressures on developing countries to build domestic manufacturing capabilities. Producers in developing countries face challenges in competing with Chinese producers, creating a “late industrialisation dilemma”. However, this gradually weakens incentives and capabilities to foster domestic upstream industries.”

— “Third, China’s absolute advantage in both low-cost and high-end manufacturing is transforming the geography of global value chain networks. Today, it occupies a dominant and critical position across multiple stages of the manufacturing value chain networks.”

— “Fourth, China’s excess industrial capacity poses challenges for India in its quest for self-reliance. Chinese imports have impacted MSME-led domestic manufacturing, undermining India’s manufacturing imperatives.”

— “A global dialogue is needed on gradually rebalancing the Chinese economy in partnership with the US and other major economies. Given the scale of the challenge and the Chinese economy’s size and broader international ramifications, a globally coordinated approach, similar to the 1985 Plaza Accord, could be considered.”

Other Important Articles Covering the same topic:

📍How India can build stronger manufacturing economy 

Previous year UPSC Prelims  Question Covering similar theme:

(6) “Belt and Road Initiative” is sometimes mentioned in the news in the context of the affairsof :(UPSC CSE 2016) 

(a) African Union   

(b) Brazil   

(c) European Union   

(d) China

Previous year UPSC Mains Question Covering similar theme:

The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate reasons why India has distanced itself from the same. (UPSC CSE 2018) 

 

ECONOMY 

Govt rejects GDP criticism, expects ‘informed debate’ once methods understood

Syllabus:

Preliminary Examination: Economic and Social Development – Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Mains Examination: General Studies III: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.

What’s the ongoing story: With questions being raised about the higher-than-expected GDP growth rate of 7.8% in the April-June quarter, the statistics ministry on Wednesday issued a six-point rebuttal to the questions being raised about the numbers, asserting that its methods and the numbers released on Monday were correct. 

Key Points to Ponder:

— What is GDP? How is it different from GNP and GVA?

— What is the difference between real GDP and nominal GDP? Why is real GDP used to measure economic growth?

— How is India’s GDP calculated? 

— What are the changes recently introduced in the method of GDP calculation?

— What is a base year? Why is it important in measuring economic growth?

— What is the new Producer Price Index (PPI)?

— Know about the updated Index of Industrial Production.

— What is the double deflation methodology?

Key Takeaways:

— Saurabh Garg, Secretary in the Ministry of Statistics and Programme Implementation (MoSPI), added that he expects a “more informed debate” to happen once the new methods used to calculate India’s GDP are understood.

— On Monday, MoSPI data showed India’s GDP grew 7.8% in April-June, much faster than what most economists expected and significantly higher than the Reserve Bank of India’s forecast of 7%. Revisions were also made to past data, including to the growth rate for January-March, which was raised from 7.8% to 8.6%.

— These revisions were caused by the use of the new Producer Price Index (PPI) series, the updated Index of Industrial Production (IIP) data series, and the Banking Services Price Index released earlier this year.

— However, certain economists, former bureaucrats, and politicians have raised questions about the numbers. While some economists have been unconvinced by the figure used to ‘deflate’ the manufacturing sector’s gross value added (GVA) in current prices to arrive at the ‘real’, or inflation adjusted estimates, former finance secretary Subhash Chandra Garg has criticised the data, saying nominal GDP growth in April-June should be 2.6% and “in real terms close to 0”.

— Speaking to reporters on Wednesday, MoSPI Secretary Saurabh Garg said the double deflation practice is “new for everyone”. “So, the lack of familiarity was there all round, whether it is within the statistical community or the economist community. But I am sure as people get used to the double deflation methodology, as they understand it better, there will be a more informed debate,” Garg said.

— To find the value added by a sector – or the Gross Value Added (GVA) – the value of inputs it uses is subtracted from the value of output it produces. This is GVA in current prices, or nominal terms. 

— To find the GVA after accounting for changes in prices – or real GVA – the output and input values are adjusted by their respective inflation rates. This is called double deflation.

— Prior to the new GDP series, which has 2022-23 as the base year, that was released earlier this year in February, one of the biggest criticisms of Indian data was MoSPI used double deflation only for agriculture and mining and quarrying sectors. For the others, input and output values were ‘deflated’ by the same number, with the Wholesale Price Index and Consumer Price Index being used. This can be problematic when input and output prices change at different rates.

— With the new GDP series using the double-deflation method for all sectors, there have been revisions to past estimates of GDP and growth. These revisions have also been accentuated by the use of the new Producer Price Index numbers for inputs and outputs, which is used internationally. 

— According to MoSPI’s Garg, the PPI has more than 300 deflators for different parts of the GDP to compute real values from nominal ones, up from around 180 under the old series. This makes the new series’ estimates more accurate.

— Without naming Subhash Chandra Garg, MoSPI released ‘additional information’ on the GDP data, specifically refuting the former bureaucrat’s claim that growth was much lower than 7.8% in April-June.

— It argued that the downward revision in the April-June 2025 nominal GDP from Rs 86.05 lakh crore in the old series to Rs 80.00 lakh crore in the new series was the result of “successive revisions to the GDP series arising from the change in base year, incorporation of improved data sources and methodologies, and updation of available indicators”. 

— As such, it is “incorrect to interpret the difference as a deliberate downward revision of last year’s GDP to mechanically increase the current year’s growth rate”. It added that one cannot compare GDP numbers from different series to arrive at the growth rate, as Garg had done.

— Changing the base year of economic indicators and improving the methods of calculating them is an international practice that is performed regularly, with India usually doing it every five years or so. Apart from GDP, the Consumer Price Index and Index of Industrial Production data series have also been updated this year. New indicators such as the PPI have also been released to better capture India’s economic performance.

 From the IDEAS page: Controversy over GDP numbers is unwarranted

— Soumya Kanti Ghosh writes- “India’s first-quarter GDP numbers have been caught in a crossfire, with a slugfest of unending salvos between die-hard supporters and opponents on issues such as the interpretation of the base year. Globally, GDP revisions typically occur for two major reasons: Periodic baseline changes to reflect modern economic structures, and retrospective data updates after economic events.”

— “While developed economies generally experience minor routine adjustments, emerging markets frequently witness dramatic revisions due to the inclusion of informal or rapidly expanding techno-digital sectors and ever-changing consumer preferences.”

— “While the Ministry of Statistics and Programme Implementation (MoSPI) has come out with its set of explanations, we provide some more food for thought for settling this issue. Last year, when the NSO had released the first quarter FY26 GDP numbers (base: 2011-12), the nominal GDP for the quarter was Rs 86.1 lakh crore. In the latest release (base: 2022-23), the Q1 FY26 GDP number has been revised downwards to Rs 80 lakh crore. Alongside, the latest Q1 FY27 GDP number is at Rs 88.3 lakh crore.”

— “Some are now ascribing a 2.6 per cent growth in nominal GDP for the latest quarter instead of 10.3 per cent by calculating the yearly growth rate using Rs 88.3 lakh crore (we call it series A for the sake of clarity) over Rs 86.1 lakh crore (we call it series C). This is a sign of intellectual dishonesty.”

— “If anyone truly wants to compare current nominal GDP numbers over the previous unrevised base of the first quarter of last year, then Rs 88.3 lakh crore (new base, series A released in August) should be estimated over Rs 80.4 lakh crore (new base, released in June), which comes out to 9.7 per cent growth (as against 10.3 per cent). Hypothetically, even with this nominal growth (by adjusting the deflator), the real growth for Q1 FY27 would be 7.4 per cent (as against the released 7.8 per cent), still good enough in view of the exogenous challenges during the quarter.”

— “Comparisons need to be made on the same base, using the same method. The 2.6 per cent number being touted is neither the official real growth rate nor a like-for-like comparison. It is a hybrid comparison between a current-year level of the new-series with an old-series previous-year level. That may make for a dramatic talking point, but it does not provide a meaningful growth rate for a reality check. Another situation may arise when instead of being revised downwards, the numbers are revised upwards.”

Other Important Articles Covering the same topic:

📍After Q1 GDP surprise, economists raise FY27 growth forecasts beyond 7%

📍Knowledge Nugget: New series of GDP estimates with base year 2022-23 released. What you need to know for UPSC exam

UPSC Prelims Practice Question Covering similar theme:

(7) Consider the following statements:

1. The new base year for the GDP series is 2023-24.

2. The GDP series is released by the RBI.

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

 

ALSO IN NEWS

Cold pains after chemo: The ‘brain circuit’ causing it

— A team of researchers from the Indian Institute of Science (IISc), Bengaluru, and Kolkata-based institute TCG-CREST have identified the “brain circuit” that involves the sensations associated with a certain side effect of chemotherapy known as “cold allodynia”. 

— Cold allodynia is a condition in which the sufferer may feel pain or distress from even a regular level of cold temperatures. It is one of the side effects that are part of “chemotherapy-induced peripheral neuropathy”, which includes many chemotherapy-induced neural side effects such as temperature sensitivity, a feeling of pins and needles, or pain etc.

— Cold allodynia specifically is known to be one of the side effects of oxaliplatin, a commonly used chemotherapy drug that contains platinum. 

Private players seek ‘green energy’ status for N-power to raise funds

— Private players are seeking green energy status for nuclear power to enable access to green bonds, green loans and blended financing for nuclear projects.

— During a stakeholder consultation by NITI Aayog, they also sought review of existing green finance frameworks, including the Ministry of Finance’s Sovereign Green Bond Framework, the RBI’s framework for acceptance of green deposits and SEBI’s framework for green debt securities.

— India opened the tightly regulated civil nuclear sector last year for private participation and targets 100 gigawatt-electric (GWe) nuclear power by 2047. 

At $127bn, FCNR(B) push RBI’s forex drive beyond $136 bn

— Far exceeding the expectations of bankers and policymakers, the Reserve Bank of India’s special US dollar-rupee forex swap facility has drawn provisional foreign exchange inflows of $136.377 billion through August 31.

— The surge in inflows have come through Foreign Currency Non-Resident (Bank), or FCNR(B), deposits, Overseas Foreign Currency Borrowings (OFCBs) and External Commercial Borrowings (ECBs), according to data reported by authorised dealer banks.

— FCNR(B) deposits are fixed-term deposits that can be maintained by non-resident Indians, Overseas Citizens of India and Persons of Indian Origin in designated foreign currencies.

— Unlike ordinary rupee deposits, these deposits allow overseas Indians to retain their savings in currencies such as the US dollar, pound sterling, euro, Japanese yen, Australian dollar and Canadian dollar. Interest earned on FCNR(B) deposits is exempt from income tax in India as long as the depositor qualifies as a non-resident under Indian tax laws.

Japan Agency upgrades India’s ranking to A- , Fin Min says reflects solid growth 

— Noting steady implementation of policies for productivity growth and economic development and India’s maintenance of 7% growth, the Japan Credit Rating Agency (JCRA) upgraded India’s sovereign rating from BBB+ to A- with stable outlook on Wednesday.

— Welcoming the decision by JCRA, the Ministry of Finance in a statement said the upgrade reflects India’s “solid economic growth, the effectiveness of economic policies in strengthening the foundations for growth, and the improved soundness of the financial system”.

— While upgrading the rating, the JCRA noted certain structural challenges for India on the fiscal front: complex intergovernmental fiscal relations; fiscal transfer arrangements and fiscal management that is susceptible to electoral cycles.

— Pointing out that the Indian economy has maintained a high growth rate of around 7%, the JCRA said the country’s growth is supported by robust private consumption and public investment. 

PRELIMS ANSWER KEY

1.(a)  2.(b)  3.(b)  4.(c)  5.(d)  6. (d)  7.(d)

🚨 Click Here to read the UPSC Essentials magazine for August 2026. Share your views and suggestions in the comment box or at manas.srivastava@indianexpress.com🚨 

Subscribe to our UPSC newsletter. Stay updated with the latest UPSC articles by joining our Telegram channel – IndianExpress UPSC Hub, and follow us on Instagram and X.