Journalism of Courage
Advertisement
Premium

UPSC Key: Tiger corridors, Definition of Forest, and RBI’s paper on monetary policy

How is the NTCA limiting the tiger corridor to the minimum requirement relevant to the UPSC exam? What significance do topics such as the Monsoon session of Parliament, SIR in Bihar, and the definition of forests have for both the preliminary and main exams? You can learn more by reading the Indian Express UPSC Key for August 22, 2025.

tiger corridors, upsc key,Tiger corridors are vital wildlife pathways that connect tiger habitats, enabling animal movement, gene flow, and long term survival. Know more in our UPSC key. (File photo)

Important topics and their relevance in UPSC CSE exam for August 22, 2025. If you missed the August 21, 2025, UPSC CSE exam key from the Indian Express, read it here.

EXPRESS NETWORK

NTCA limits tiger corridors to minimal requirement, multiple projects to benefit

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies-II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

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

What’s the ongoing story: In a volte-face less than a month after it affirmed before the Bombay High Court that the identification of tiger corridors must take cognizance of multiple scientific studies and parameters, the National Tiger Conservation Authority (NTCA) issued a clarification yesterday, limiting the number of such corridors, primarily, to only 32 “least cost pathways” identified in 2014.

Key Points to Ponder:

— What is the role and function of the NTCA?

— What is the importance of the Tiger Corridor?

— How are Tiger corridors decided?

— Why is it important to protect Tiger corridors?

— What are the major tiger reserves in India?

— What is the conservation status of Tiger?

Key Takeaways:

— Tiger corridors are vital wildlife pathways that connect tiger habitats, enabling animal movement, gene flow, and long term survival.

— Under the Wildlife Protection Act, 1972, development projects requiring land in or around tiger reserves or corridors require statutory clearance from the standing committee of the National Board for Wildlife (SC-NBWL).

Story continues below this ad

— Among the potential beneficiaries of the new limited definition of tiger corridors are Western Coalfields Limited (Durgapur open cast mines) and Lloyds Metals & Energy (Surajgarh iron ore mines) in Maharashtra.

— In July 2025, NTCA told the Bombay High Court that tiger corridors must be defined using:

* Protected Areas occupied by tigers,

* Least cost pathways identified in 2014,

* Corridors marked in Tiger Conservation Plans (TCPs) of each reserve,

* Corridors identified by Wildlife Institute of India (WII) — “Tiger corridors of eastern Vidarbha landscape” — in 2016,

Story continues below this ad

* Corridors identified by WII — “Telemetry based tiger corridors of Vidarbha” landscape” — in 2021, and

* Distribution of tigers based on quadrennial all-India Tiger Estimations (AITEs)

— However, at today’s hearing, the NTCA modified that stand by placing on record the clarification it issued yesterday. This reduced the benchmarks for tiger corridors only to the “least cost pathways” identified in its 2014 report and the ones recorded by tiger reserves in their individual TCPs.

— This July, researchers from Nagpur-based LRC Foundation applied contemporary Circuitscape modelling, which reflects multiple probable paths of animal movement—not just the “shortest route” – to come up with 192 corridors form a dense network across 10 central Indian states, enabling tiger movement across 30 tiger reserves and around 150 protected areas.

Do You Know:

Story continues below this ad

— India has 58 tiger reserves with the latest addition of Madhya Pradesh’s Madhav National Park.

— A tiger reserve in India is a designated area established under the Project Tiger initiative to ensure the conservation of tigers and their habitats. These reserves are part of the government’s efforts to protect the tiger population, maintain biodiversity, and restore ecological balance.

— The National Tiger Conservation Authority (NTCA) is a statutory body under the Ministry of Environment, Forests and Climate Change constituted under enabling provisions of the Wildlife (Protection) Act, 1972, for strengthening tiger conservation, as per powers and functions assigned to it under the said Act.

— The NTCA conducts the All India Tiger Estimation to track the big cat numbers, usually in cycles of four years. As per the 5th cycle summary report of 2022, India has a minimum of 3,167 tigers and is home to more than 70% of the world’s wild tiger population.

Story continues below this ad

— The IUCN status of the tiger is endangered, and it is protected under Schedule I of the Wildlife Protection Act, 1972.

Other Important Articles Covering the same topic:

📍UPSC Issue at a Glance | Why Tigers Matter: Environmental, cultural, and economic significance of India’s apex predator

📍Maharashtra to translocate tigers to Sahyadri reserve: Role of wildlife corridors in tiger conservation

Previous year UPSC Prelims Question Covering similar theme:

(1) Among the following Tiger Reserves, which one has the largest area under “Critical Tiger Habitat”? (UPSC CSE 2020)

(a) Corbett

(b) Ranthambore

(c) Nagarjunasagar-Srisailam

(d) Sundarbans

Story continues below this ad

(2) The term ‘M-STrIPES’ is sometimes seen in the news in the context of (UPSC CSE 2017)

(a) Captive breeding of Wild Fauna

(b) Maintenance of Tiger Reserves

(c) Indigenous Satellite Navigation System

(d) Security of National Highways

 

FRONT

In Bihar 2003, EC took longer, allowed EPIC, checked citizenship selectively

Syllabus:

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

Mains Examination: General Studies-II: Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies.

Story continues below this ad

What’s the ongoing story: DEFENDING THE ongoing Special Intensive Revision (SIR) of Bihar’s electoral rolls, the Election Commission of India (ECI) not only held up the 2002–03 roll as the benchmark of voter eligibility, but strongly backed its three-month timeline, and refused to accept the Supreme Court’s suggestion to consider the voter ID card as proof of eligibility.

Key Points to Ponder:

— How is the 2002–03 intensive revision different from the Special Intensive Revision of 2025?

— What is the role and function of the ECI?

— Why is SIR conducted in Bihar?

— What is the constitutional backing for conducting the SIR?

— What are the concerns raised by the opposition on the ongoing SIR?

— What are the powers and extent of the ECI in conducting intensive revisions of the electoral roll?

Key Takeaways:

Story continues below this ad

— In 2002-03, seven states — Bihar, Jharkhand, Uttarakhand, Uttar Pradesh, Madhya Pradesh, Chhattisgarh and Punjab — had eight months, more than double the time allowed now, to complete the process.

— No proof of citizenship was sought then from existing electors in 2002 rolls.

— The Elector’s Photo Identity Card (EPIC) was the backbone of verification of existing voters then.

— In effect, with these criteria and not where one of 11 documents are required, the process for those who got on the 2003 list — about 4.96 crore — was, in both letter and spirit, much more inclusive.

— These differences lie at the heart of the petitions now before the Supreme Court. The petitioners argued that the three-month window (June 25–September 30, 2025) is unreasonably short in a state headed for polls in October–November, where many voters struggle to procure documents.

— They also contended that the ECI is straying into questions of nationality, which is beyond its mandate. The Court will resume hearing the matter on Friday.

— In its counter affidavit before the Supreme Court, the ECI dismissed concerns over timelines as “misconceived, erroneous and unsustainable,” and said its order provides “adequate time” for completion.

— “The last such exercise was undertaken in Bihar in 2002-2003, and the period of enumeration was from 15.07.2002 to 14.08.2002. The current SIR has an enumeration period from 25.06.2025 to 26.07.2025.

— In fact, the 2002–03 instructions made clear that enumerators were not to determine citizenship. Their role was limited to verifying qualifications of age and ordinary residence.

— In the 2002–03 intensive revision, the voter ID card or EPIC was the backbone of verification of existing electors — enumerators were told to check it at every household and correct the particulars on that basis.

— Two decades later, the Commission has taken a different position. In the ongoing Special Intensive Revision in Bihar, it didn’t accept the Supreme Court’s suggestion to consider EPIC cards as proof of eligibility for existing electors of Bihar.

(NOTE: It is a sub-judice matter so keep a track on developments.)

Do You Know:

— Article 324(1) of the Constitution gives the ECI the power of “superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of” elections to Parliament and state legislatures.

— Under Section 21(3) of The Representation of the People Act, 1950, the ECI “may at any time…  direct a special revision of the electoral roll for any constituency or part of a constituency in such manner as it may think fit”.

— The Registration of Electors’ Rules, 1960, says the revision of rolls can be carried out “either intensively or summarily or partly intensively and partly summarily, as the [ECI] may direct”. In an intensive revision, the electoral roll is prepared afresh; in a summary revision, the roll is amended.

— Special summary revisions take place every year, and the electoral roll is updated before each Lok Sabha and state Assembly election. Intensive revisions have been carried out in 1952-56, 1957, 1961, 1965, 1966, 1983-84, 1987-89, 1992, 1993, 1995, 2002, 2003 and 2004.

Other Important Articles Covering the same topic:

📍Bihar SIR: As voters scramble for one of 11 identity documents, officials hit on a workaround — the family tree as 12th document 

📍Election Commission of India: Composition, powers and functions

Previous year UPSC Prelims Question Covering similar theme:

(3) Consider the following statements: (UPSC CSE 2021)

1. In India, there is no law restricting the candidates from contesting in one Lok Sabha election from three constituencies.

2. In 1991 Lok Sabha Election, Shri Devi Lai contested from three Lok Sabha constituencies.

3. As per the existing rules, if a candidate contests in one Lok Sabha election from many constituencies, his/her party should bear the cost of bye-elections to the constituencies vacated by him/her in the event of him/her winning in all the constituencies.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) 1 and 3 only

(d) 2 and 3 only

Previous year UPSC Mains Question Covering similar theme:

To enhance the quality of democracy in India the Election Commission of India has proposed electoral reforms in 2016. What are the suggested reforms and how far are they significant to make democracy successful? (UPSC CSE 2017)

EXPLAINED

Why environmentalists have criticised Haryana govt’s definition of ‘forest’

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: The Haryana government on Monday (August 18) officially defined the “dictionary meaning of forest”.

Key Points to Ponder:

— Why has the Supreme Court directed all States and Union Territories to define what constitutes a “forest”?

— What are Core, buffer, and eco-sensitive zones of protected areas?

— How is forest defined under the Forest Conservation Act (FCA)?

— Where is Aravallis located?

— Know about the key terms: forest cover, dense forest, open forest, and tree cover.

— Why is it important to conserve a forest?

Key Takeaways:

— Officials say that the state’s definition of a forest “references precedents from Supreme Court rulings” and is aligned with “judicial expectations”.

— Environmentalists, however, say that it is a narrow definition which will exclude the ecologically sensitive Aravalli ridge from protection, and make it vulnerable to unchecked development, illegal mining and real estate encroachment.

— In its notification dated August 18, Haryana’s Environment, Forest and Wildlife department stated: “A patch of land shall be deemed to be ‘forest as per dictionary meaning’ if it fulfils following conditions:

* It has a minimum area of five hectares, if it is in isolation, and a minimum area of two hectares, if it is in contiguity with the government notified forests; and

* It has a canopy density of 0.4 (40%) or more”.

— The Haryana government’s notification came after the Supreme Court on March 4 directed all States and Union Territories to define what constitutes a “forest” and commence surveys to identify forest areas in their respective jurisdictions.

— The court further said that “the process must strictly follow the 2011 Lafarge Umiam Mining guidelines, mandating a GIS-based decision-support database that includes — district-wise plots that may qualify as “forest” under the Forest (Conservation) Act, 1980 (FCA); Core, buffer, and eco-sensitive zones of protected areas; important wildlife migratory corridors; lands diverted from forest use in the past; and supporting maps like TOPO-sheets and Forest Survey of India maps”.

— These directives were made in the challenge to the 2023 amendment to the FCA (Ashok Kumar Sharma, IFS (Retd) & Ors. vs. Union of India) that the apex court is currently hearing. At the heart of both the amendment and the challenge to it is the question: “what constitutes a forest?”

— The FCA of 1980 restricted “the dereservation of forests or use of forest land for non-forest purpose”. The Act barred the diversion of forest land for non-forest purposes without the prior approval of the Centre.

— But environmentalists have been critical of Haryana’s definition which, they say, creates “a very high threshold” for a land to be classified as forest.

— “It is a pity that Haryana has blindly followed the lead of states like Goa in choosing a minimum threshold of 40% forest canopy cover to identify an area as a deemed forest,” forest analyst Chetan Agarwal told The Indian Express.

— “The minimum area threshold of 2 and 5 hectares is also unreasonably high for such a dry state and should have been kept at 1 and 2 hectares, respectively”, Agarwal added.

Do You Know:

— In 1996, in T N Godavarman, the Supreme Court asked whether the FCA was being consistently applied to all forests. There are pockets across the country where land covered by natural forest has not been officially recorded as “forest” under any law, so its diversion was not being regulated under the FCA.

— By one estimate, this could be as much as 25 per cent of the country’s forest cover. The Court brought this land under the ambit of the FCA by ordering that the actual vegetation should determine FCA applicability. This eventually led to the creation of a new legal category called “deemed forest” land.

— Forest cover: It refers to all lands, more than or equal to one hectare in area, with a tree canopy of more than or equal to 10%, irrespective of ownership and legal status; and includes orchards, bamboo, and palm. It indicates the presence of trees on any land, irrespective of ownership of land; and irrespective of the fact whether the land is notified as forest land or not.

— Tree cover: It is the area covered by trees but outside the forest area. It records tree patches smaller than 1 hectare because the tree cover of more than 1 hectare is already recorded as forest cover.

— Dense Forests: Areas with a canopy density of 40% and above are considered dense forests.

— Open Forests (OF): Areas with a canopy density of 10-40 % are open forests (OF).

Other Important Articles Covering the same topic:

📍Knowledge nugget of the day: India State of Forest Report 2023

📍Forest law amendments: Rich in rhetoric, poor in substance

UPSC Prelims Question Covering similar theme:

(4) Which one of the following regions of India has a combination of mangrove forest, evergreen forest and deciduous forest? (UPSC CSE 2017)

(a) North Coastal Andhra Pradesh

(b) South-West Bengal

(c)Southern Saurashtra

(d) Andaman and Nicobar Islands

 

IN PARLIAMENT

Stormy Monsoon session ends: 12 bills passed, No SIR discussion, low productivity

Syllabus:

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

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: Sloganeering, displaying placards and planned deadlock are not in accordance with the dignity of Parliament, Lok Sabha Speaker Om Birla said Thursday as the turbulent Monsoon session came to an end. Both Lok Sabha and Rajya Sabha were adjourned sine die Thursday.

Key Points to Ponder:

— What do you understand by sine die?

— What are the various parliamentary sessions?

— How are Bills introduced in the House?

— How does a Bill become an Act?

— What is the Parliamentary system of Governance?

— What is the significance of Parliament?

Key Takeaways:

— The Monsoon Session, which commenced on July 21, saw the introduction of 14 Bills and the passing of 12 of them. The first day of the session also saw the surprise resignation of Jagdeep Dhankhar as Vice-President.

— For large parts of the session, the Opposition held vociferous protests demanding a discussion on the special intensive revision of rolls (SIR) in Bihar. However, the government maintained that the House cannot discuss matters related to the Election Commission, citing a previous ruling by the Chair.

— A special discussion was held on Operation Sindoor on July 28 and 29. This was the only full fledged-discussion in the House which saw the participation of the Opposition. Another special discussion, on the achievements of India’s space programme on August 18, ended abruptly amid Opposition protests.

— The Deputy Chairman informed the House that 15 Government Bills were passed or returned during the session.

— Sixty-four members participated in the two-day discussion on Operation Sindoor, Harivansh said.

Do You Know:

Ravindra Garimella and Rajas Kolhatkar write “Parliament is meant to be more than a platform for speeches. It should be a space where serious questions are asked and real answers are found. But how can lawmakers do that without the tools to prepare?”

“Members of Parliament are expected to reflect the concerns of their constituents, scrutinise legislation, and hold the government accountable. At the same time, they must navigate the demands of party politics, constituency responsibilities, and an increasingly complex policy landscape. Yet, what they are rarely given is structured and institutional research support.”

— The President inaugurates the formal parliamentary year with an address outlining the government’s agenda following a successful election.

— India does not have a fixed parliamentary calendar. Conventionally though, Lok Sabha convenes in three sessions annually. The question of establishing fixed dates for these sessions was deliberated by the General Purposes Committee of Lok Sabha during a meeting on April 22, 1955.

— According to the proposed schedule:

1. The Budget Session would commence on February 1 and terminate on May 7.

2. The Autumn Session would begin on July 15 and end on September 15.

3. The Winter Session would start on November 5 or four days after Diwali (whichever is later) and conclude on December 22.

—  A parliamentary system of governance is a democratic form of government in which the executive branch derives its legitimacy from and is accountable to the legislature or parliament.

— As a result, it is also known as a responsible government. In this system, the Prime Minister is usually the head of government and the leader of the party or coalition with the majority of seats in Parliament.

Other Important Articles Covering the same topic:

📍The historical journey of parliamentary sessions in India

📍What is parliamentary system of governance, why has India adopted it

Previous year UPSC Prelims Question Covering similar theme:

(5) Consider the following statements: (UPSC CSE 2020)

1. The President of India can summon a session of the Parliament at such place as he/she thinks fit.

2. The Constitution of India provides for three sessions of the Parliament in a year, but it is not mandatory to conduct all three sessions.

3. There is no minimum number of days that the Parliament is required to meet in a year.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) 1 and 3 only

(d) 2 and 3 only

Previous year UPSC Mains Question Covering similar theme:

To what extent, in your view, the Parliament is able to ensure accountability of the executive in India? (UPSC CSE 2021)

 

EDITORIAL

The skills check

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, mobilisation, of resources, growth, development and employment.

What’s the ongoing story: Farzana Afridi and Arjita Chandna write: With a volatile external sector increasing the challenge of demand-driven growth, the Prime Minister unveiled a slew of proposed reforms from the Red Fort’s ramparts on August 15.

Key Points to Ponder:

— What is the significance of skill training?

— What are the challenges of the Vocational Education and Training (VET) system in India?

— What are the government schemes related to skill development?

— With the focus on skill development, India can rip the benefit from the demographic dividend. What do you understand about this?

— How is the National Education Policy integrating VET?

Key Takeaways:

— Our traditional education system — academic and rote-based — is unlikely to deliver a workforce equipped for the future of work.

— In India and across the world, formal vocational or skill training is associated with higher chances of an individual being employed and obtaining a job in the formal sector.

— Yet, only 4 per cent of India’s workforce is formally trained, even though the institutional coverage of the Vocational Education and Training (VET) system is extensive — with over 14,000 Industrial Training Institutes (ITIs) and 25 lakh sanctioned seats.

— Our VET system struggles with not only low uptake but also modest employment rates for those who undergo training. In 2018, the employment rate among ITI graduates was 63 per cent, whereas countries with robust VET systems such as Germany, Singapore, and Canada reported employment rates ranging between 80 and 90 per cent.

— Countries that introduce VET earlier in the schooling system show a stronger association with better labour market outcomes. In Germany, for example, VET is integrated at the upper secondary level through a dual system, combining school education with paid apprenticeships. In contrast, in India, VET is an afterthought…

— A second aspect is the absence of a defined pathway to higher (or academic) education via vocational skilling. For instance, Singapore offers VET either as technical education at the post-secondary level or via polytechnics at the tertiary level through dual vocational tracks, but has defined pathways from VET to traditional university education.

— India, in contrast, offers no formal academic progression from VET to mainstream higher education, nor does our education system offer credit transfers between systems.

— Third, and possibly most important, is the perception and quality of VET in India. Singapore has industry-led curriculum design, high instructor quality, regular audits and a mechanism that seeks constant feedback from employers and trainees.

— Singapore also has a Skill Future Programme, where the government offers subsidies to upskill throughout one’s career. In India, in contrast, many courses are outdated and misaligned with industry needs

— ITIs depend heavily on government funding, with minimal private sector investment in infrastructure and training apparatus. Medium and Small Scale Enterprises drive local job creation, but have low engagement with ITIs due to capacity constraints.

— First, integrate VET into early schooling. The National Education Policy (NEP), 2020 recommends such integration, but progress has been slow.

— Second, fast-track reforms to implement the National Credit Framework that defines clear progression pathways and aims to have a board for nationally recognised certifications.

— Third, to improve training quality, align VET courses with local industry demand through regular market assessments, expand NSTIs and fast-track instructor recruitment to address capacity gaps, and strengthen ITI grading by incorporating trainee feedback.

— Fourth, scale models like the Private Training Partner approach by leveraging public infrastructure and private expertise. Involve MSMEs, and strategically use CSR funding to boost industry relevance.

— Fifth, increase public spending on VET and ensure the financial viability of institutions by linking public funding to their performance and granting them autonomy to generate their own revenue.

— We must invest more in human capital. India allocates around 3 per cent of total education expenditure to VET, compared to 10-13 per cent in countries like Germany, Singapore, and Canada.

Do You Know:

— Recent government schemes — such as the Employment Linked Incentive (ELI) scheme, the PM Internship Scheme, and the ITI Upgradation Initiative — reflect an increased focus on employment outcomes.

— ELI Part A offers up to Rs 15,000 for first-time EPFO-registered workers, while the revised ELI, Part B gives employers Rs 3,000 a month for every new hire. Both ELI schemes push formalisation of jobs but have no skilling components.

— The Prime Minister Internship Scheme aims to provide one-year placements to youth in top companies, but lacks pathways to permanent jobs. The ITI Upgradation Scheme focuses on modernising 1,000 government ITIs in partnership with industry, but not necessarily the quality of training.

— Policy initiatives, thus far, have either tinkered on the margins of our existing education system or are afterthoughts. They are unlikely to transform the level of productivity and employability of our workforce unless we overhaul a system that is becoming increasingly outdated. Such an overhaul is crucial for making vocational training a pathway to jobs — an essential step towards a Viksit Bharat.

Other Important Articles Covering the same topic:

📍Skilling India — for the world 

Previous year UPSC Mains Question Covering similar theme:

“Earn while you learn scheme needs to be strengthened to make vocational education and skill training meaningful.” Comment (2021)

 

ECONOMY

RBI paper on monetary policy says raising inflation target above 4% could erode policy gains

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, mobilisation, of resources, growth, development and employment.

What’s the ongoing story: The Reserve Bank of India (RBI) on Thursday released its keenly awaited discussion paper on the country’s monetary policy framework, warning that raising the inflation target at the current juncture could be seen as a dilution of the framework and lead to the loss of policy gains made over the last decade or so.

Key Points to Ponder:

— What is the role of the RBI in controlling inflation in the economy?

— What are the various monetary policies of the RBI?

— What is core inflation?

— What is the inflation targeting framework of the RBI?

— Low and stable inflation is crucial for foreign investors. Why?

— What is the flexible inflation targeting?

Key Takeaways:

— In its discussion paper, the Indian central bank has sought feedback by September 18 on four key questions:

* if monetary policy should target headline or core inflation,

* if the current 4 per cent target remains optimal to balance growth and stability,

* whether the tolerance band of 2-6 per cent needs to be revised or even dropped, and

* if the target rate of 4 per cent should be removed and only a range be maintained.

— Last week, while upgrading India’s rating to BBB from BBB-, S&P Global Ratings had praised the RBI, saying its record of inflation management had been burnished by headline retail inflation staying broadly within the 2-6 per cent target range.

— Low and stable inflation is crucial for foreign investors as sharp increases in prices can erode their investments, weaken growth and the domestic currency, and create social unrest — all factors that can lead to a rating downgrade.

— The RBI formally adopted the flexible inflation targeting framework in late 2016. As per the framework agreed with the central government, the target is valid for a period of five years, after which it must be reviewed.

— Since the framework’s inception, the medium-term target for the RBI has been 4 per cent in terms of the Consumer Price Index (CPI)-based inflation, within a band of 2-6 per cent.

— The target, which is valid until March 2026, must be notified again for a five-year period starting April 2026. Earlier this month on August 6, Governor Sanjay Malhotra had said the RBI was preparing the discussion paper, with a final view to be taken by the government.

— The debate on whether monetary policy should target headline or core inflation – which is inflation without taking into account food and fuel items, whose prices can be rather volatile – came to the fore over the last year after the Economic Survey for 2023-24.

Do You Know:

— On India’s inflation targeting framework, the Economic Survey said inflation targeting should be considered, excluding food, as higher food prices are, more often, not demand-induced but supply-induced.

— Short-run monetary policy tools are meant to counteract price pressures arising out of excess aggregate demand growth, it said, adding that it is “worth exploring whether India’s inflation targeting framework should target the inflation rate excluding food”.

— Inflation refers to the rate at which the general price level for goods and services increases over a period of time, causing a decrease in purchasing power of money or real income. In other words, as inflation rises, each unit of currency can buy fewer goods and services than before.

— Rising inflation affects the financial well-being of households, especially those with lower incomes or fixed incomes. As the cost of goods and services increases, it reduces the quantity of goods and services that can be purchased with the same nominal income, thereby affecting households’ cost of living.

— There are different methods for measuring inflation such as Consumer Price Index (CPI), Wholesale Price Index (WPI), GDP deflator, Producer Price Index (PPI), and wage inflation, with each focusing on a specific aspect of price changes.

Other Important Articles Covering the same topic:

📍Rising inflation: A growing concern for policymakers

📍How inflation affects cost of living

Previous year UPSC Prelims Question Covering similar theme:

(6) In India, which one of the following is responsible for maintaining price stability by controlling inflation? (2022)

(a) Department of Consumer Affairs

(b) Expenditure Management Commission

(c) Financial Stability and Development Council

(d) Reserve Bank of India

ALSO IN NEWS

Back from Hong Kong, Piprahwa gems may return to original site in UP Piprahwa relics — repatriated to India recently, nearly 127 years after they were taken out of the country — would be brought back to Uttar Pradesh to their original extraction site in Piprahwa village.

Located in Uttar Pradesh’s Siddharthnagar district, along India’s international border with Nepal, Piprahwa village lies just south of Lumbini, believed to be the birthplace of Lord Gautam Buddha.

How Trump’s tariffs are hurting the US economy Trump and his supporters have claimed that far from the apocalyptic collapse many mainstream economists foresaw under the new tariff regime, the US economy has remained robust. We evaluate this claim over key macroeconomic variables and assess if, and how far, have tariffs hurt the US economy.

The first economic impact of tariffs is that they raise prices. This can happen in two broad ways. One, the direct impact of higher tariffs is that consumers have to pay more to buy (import) the same goods. Two, the indirect impact is that, more often than not, the prices of all domestic substitutes of the imported goods also go up.

 

PRELIMS ANSWER KEY
1. (c)  2. (b)  3. (b)   4. (b)  5. (c)  6. (d)

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.

🚨 Click Here to read the UPSC Essentials magazine for August 2025. Share your views and suggestions in the comment box or at manas.srivastava@indianexpress.com🚨

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

Tags:
  • Current Affairs Express Premium government jobs Sarkari Naukri UPSC UPSC Civil Services UPSC Civil Services Exam UPSC Key
Edition
Install the Express App for
a better experience
Featured
Trending Topics
News
Multimedia
Follow Us
Express PremiumHow Durga Puja emerged in British-ruled Bengal
X