Important topics and their relevance in UPSC CSE exam for February 21, 2025. If you missed the February 20, 2025 UPSC CSE exam key from the Indian Express, read it here THE WORLD US withholds co-sponsorship of UN motion backing Ukraine Syllabus: Preliminary Examination: Current events of national and international importance. Main Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests What’s the ongoing story: The U.S. is refusing to co-sponsor a draft U.N. resolution marking three years since Moscow's invasion of Ukraine that backs Ukraine's territorial integrity and again demands Russia withdraw its troops, three diplomatic sources told Reuters, in a potential stark shift by Ukraine's most powerful Western ally. Key Points to Ponder: • Discuss the geopolitical implications of the US refusing to co-sponsor a UN motion backing Ukraine. • Analyse the role of the United Nations in conflict resolution. • How effective has the UN been in addressing the Russia-Ukraine war, considering the positions of key global players? • Why US position on Ukraine-NATO changed? • India has maintained a balanced diplomatic stance on the Russia-Ukraine conflict—Comment on India's approach, its strategic interests, and the implications of its neutrality in global geopolitics. Key Takeaways: • Washington has also objected to a phrase in a statement the Group of Seven nations was planning to issue next week that would condemn Russian aggression, two other sources told Reuters. • The U.S. refusal to agree to language that has been regularly used by the U.N. and G7 since February 2022 comes amid a widening rift between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump. • Trump is trying to rapidly end the war in Ukraine and sent a team to hold talks with Russia this week in Saudi Arabia without the involvement of Kyiv. • Ukraine's allies have used the previous two Feb. 24 anniversaries of the war to reiterate their condemnation of Russia's invasion but this year it is unclear how the United States will approach it. • At the U.N. countries can decide to co-sponsor a resolution up until a vote. The 193-member General Assembly is due to vote on Monday, diplomats said. General Assembly resolutions are not binding but carry political weight, reflecting a global view on the war. Do You Know: • On Apr 3, 2008, NATO’s Bucharest Summit Declaration said “NATO welcomes Ukraine’s and Georgia’s Euro-Atlantic aspirations for membership in NATO. We agreed today that these countries will become members of NATO.” • On Feb 12, 2025, United States Secretary of Defense Pete Hegseth told the Ukraine Defense Contact Group in Brussels that “…The United States does not believe that NATO membership for Ukraine is a realistic outcome of a negotiated settlement [of the war]…” • The possibility of Ukraine becoming part of NATO has been Moscow’s declared casus belli. Though the US and its European allies have never committed to when Ukraine might join the alliance, the statements by Trump and Hegseth mark a fundamental shift in America’s Ukraine policy. • The expansion of NATO presents Russia with a classic “security dilemma”, a situation in which the actions of one state to make itself more secure tends to make another state less secure, and prompts them to respond in ways that result in a spiral of hostility. • Article 5 in the NATO Charter of 1949 establishes the principle of collective defence, such that “an armed attack” against any NATO member is to be considered as “an attack against them all”, and all NATO members would be obligated to defend the one who has been attacked. • Putin’s Russia sees NATO as a tool of Western hegemony, and its expansion eastward appears as the US creeping up on its Cold War enemy, which Moscow perceives as a threat to its national security. Other Important Articles Covering the same topic: 📍How Trump’s pro-Russia turn has left Ukraine, Europe ‘stunned’ UPSC Prelims Practice Question Covering similar theme: 1. The principle of "territorial integrity" in international law refers to: a) The right of a country to determine its own government without external influence. b) The prohibition of using force to alter internationally recognized borders. c) The establishment of international trade agreements between nations. d) The right of indigenous communities to self-govern within a sovereign state. FRONT PAGE ‘Very, very disturbing’: SC stays Lokpal decision to probe HC judges Syllabus: Preliminary Examination: Indian Polity and Governance Main Examination: • General Studies II: Statutory, regulatory and various quasi-judicial bodies. • General Studies II: Important aspects of governance, transparency and accountability, What’s the ongoing story: Calling it “something very, very disturbing”, the Supreme Court Thursday stayed the Lokpal’s January 27 order which held it had the power to look into complaints against sitting judges of High Courts. Key Points to Ponder: • The Lokpal and Lokayuktas Act, 2013-What are its key features? • What is the difference between Lokayukta and Lokpal? • Do judges come under Lokpal? • ‘The Supreme Court recently stayed a Lokpal decision to probe sitting High Court judges’—How this will impact the balance between judicial independence and accountability in India? • Discuss the limitations of the Lokpal and Lokayuktas Act, 2013, in investigating allegations of corruption against judges. Key Takeaways: • The top court had taken suo motu cognizance of the January 27 order and listed it for hearing before a bench headed by Justice B R Gavai and also comprising Justices Surya Kant and A S Oka. • “Something very, very disturbing,” Justice Gavai said as the bench issued notice to the Centre, Lokpal and the complainant in the matter. • It directed its registrar judicial “to mask the identity of the complainant and serve him through the Registrar Judicial of the High Court where the complainant resides”. It injuncted the complainant from disclosing the name of the judge against whom the complaint had been filed, or from disclosing contents of the complaint. • Solicitor General Tushar Mehta, appearing for the Centre, said that according to his interpretation of the relevant provisions in the Lokpal and Lokayuktas Act, 2013, which the Lokpal had relied upon, “the High Court judge would never fall within the ambit of the Lokpal Act. There are constitutional provisions and some judgements to show this.” Do You Know: • The order of the Lokpal, headed by former Supreme Court judge Justice A M Khanwilkar, came on two complaints against a sitting Additional Judge of a High Court, “alleging that the named judge had influenced the concerned Additional District Judge,” in a state “and a Judge of the same High Court who had to deal with the suit filed against the complainant by a private company, to favour that company. It… alleged that the private company was earlier a client of the named High Court Judge, while he was practising as an advocate at the Bar”. • Deciding this, the Lokpal order said that unlike the Supreme Court, established under Article 124 of the Constitution of India, the High Court concerned was established by an Act of Parliament and therefore “it will be too naive to argue that a Judge of a High Court will not come within the ambit of expression ‘any person’ in clause (f) of Section 14 (1) of the Act.” • The ruling referred to the majority view in the 1991 judgment K Veeraswamy vs. Union of India, and said that according to this, “a Judge of the superior court cannot… be excluded from the definition of public servant and would squarely fall within the purview of the Prevention of Corruption Act, 1947”. • The Lokpal also noted that as per the Veerswami decision, no criminal case shall be “registered” against a judge of the High Court, Chief Justice of High Court or judge of the Supreme Court, unless the Chief Justice of India is consulted in the matter. Other Important Articles Covering the same topic: 📍Meet the new ‘Lokpal of India’: Justice A M Khanwilkar, who penned several orders key for Modi govt UPSC Previous Year Mains Question Covering similar theme: 📍‘A national Lokpal, however strong it may be, cannot resolve the problems of immorality in public affairs.’ Discuss (2013) I&B ministry issues warning on ‘vulgar content’ amid Allahbadia row Syllabus: Preliminary Examination: Indian Polity and Governance—Rights and Issues Main Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. What’s the ongoing story: Following the Ranveer Allahbadia ‘obscene’ speech row, the IT Ministry could respond to the Parliamentary Standing Committee on Information Technology by next week on the current legal framework to regulate online speech on social media platforms and the need to make further changes to them to “to bring such platforms under legal scrutiny so as to safeguard the societal values and protect the dignity of women and children,” The Indian Express has learnt. Key Points to Ponder: • What is Section 66A of IT (Amendment) Act, 2008 which was declared ‘Unconstitutional’ by the Supreme Court in the case of Shreya Singhal Vs Union of India in 2015 ? • Analyse the implications of the recent controversy involving YouTuber Ranveer Allahbadia on India's digital content regulation framework. • Discuss the potential challenges and benefits of amending existing laws to bring social media and OTT platforms under stricter legal scrutiny. • Evaluate the role of the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, in regulating online content in India. • Discuss the constitutional and legal challenges associated with regulating content on digital platforms in India. Key Takeaways: • In an internal communication prepared by the ministry to formulate a response for the Committee, it has referenced the now revoked Section 66A of the Information Technology Act, which was deemed “unconstitutional” by the Supreme Court in 2015, this paper has learnt. • This comes in reference to the row that erupted over allegedly ‘obscene’ remarks made by online influencer Ranveer Allahbadia in the popular comedy show ‘India’s Got Latent’ hosted by Samay Raina. • Last week, the Standing Committee on IT also held a meeting on the issue, where they called for stringent measures to curb such speech on social media platforms. The IT Ministry is preparing a brief note to send to the Committee by February 25. • The internal communication prepared by the ministry noted the remarks made by the Supreme Court against Allahbadia, and ‘drew attention’ to Section 66A of the IT Act. • Following the backlash against speech made by Allahbadia, which has also drawn sharp criticism from the Supreme Court, many digital rights activists remain concerned over the potential of a heavy handed regulatory response from the government, which could further curtail the freedom of expression. Do You Know: • “…attention of the Ministry is drawn to the Section 66A of IT (Amendment) Act, 2008 (Section 66A of the Information Technology (IT) Act, 2000, was amended in 2008) which was intended to provide protection against offensive or insulting message, speech or information made online by granting powers to the Government to make arrests in such cases of misuse of freedom of speech. The Section was however declared ‘Unconstitutional’ by the Hon’ble Supreme Court in the case of Shreya Singhal Vs Union of India in 2015 citing the reasons that the said Section did not fall within the reasonable exceptions of freedom of speech and expression,” the note is learnt to have said. • The ministry will inform the Committee of the efficacy of existing laws to deal with such cases and need to amend the existing laws/IT Act, 2000 “in order to bring such platforms under legal scrutiny so as to safeguard the societal values and protect the dignity of women and children,” while adhering to the creative expression and freedom of speech guaranteed under Article 19 (1)(a) of the Constitution. Other Important Articles Covering the same topic: 📍The Ranveer Allahbadia controversy: Why we enjoy jokes at others’ expense and the psychology of roast humour UPSC Prelims Practice Question Covering similar theme: 2. Which of the following organizations oversees social media regulations and compliance in India? a) Telecom Regulatory Authority of India (TRAI) b) Ministry of Electronics and Information Technology (MeitY) c) National Cyber Security Coordinator (NCSC) d) Central Bureau of Investigation (CBI) UPSC Previous Year Mains Question Covering similar theme: 📍Examine the scope of Fundamental Rights in the light of the latest judgement of the Supreme Court on Right to Privacy. (2017) GOVT & POLITICS Modi to open SOUL conclave today, Bhutan PM is Guest of Honour Syllabus: Preliminary Examination: Current events of national and international importance. What’s the ongoing story: Prime Minister Narendra Modi will inaugurate the first SOUL Leadership Conclave in Delhi on Friday. The two-day conclave will set the ball rolling for periodic events that will bring together leaders from across various fields to share their life experiences, successes and failures with the youth to foster young leadership for a vibrant public life in diverse fields. Key Points to Ponder: • What is School of Ultimate Leadership (SOUL)? • Why the establishment of the School of Ultimate Leadership (SOUL) is significant? • What is the key theme of the SOUL conclave? • What is the significance of initiatives like the SOUL Conclave in shaping future leadership in India? Discuss with reference to global leadership challenges. • How does the SOUL Conclave contribute to India's regional diplomacy and soft power strategy? Key Takeaways: • This will be the first conclave of SOUL, the upcoming Gandhinagar-based School of Ultimate Learning, which will be formally launched at the event. • Bhutan PM Dasho Tshering Tobgay will deliver the keynote address as the Guest of Honour. Union Ministers Bhupender Yadav and Ashwani Vaishnaw, former CJI D Y Chandrachud, former RBI governor Shaktikanta Das, former Puducherry LG Kiran Bedi, industrialist Sunil Bharti Mittal, reigning world chess champion Gukesh Dommaraju, among others, will speak at the event. • SOUL envisages medium to long-term training sessions beginning in 2027, when the sprawling campus is constructed. • “About 300 students, entrepreneurs and young professionals from across the country and from various disciplines will be part of the audience,” said a government source. Do You Know: • Prime Minister Narendra Modi on Friday said that the country needs leadership across different fields with a global outlook and a local upbringing that reflects a national vision. “For nation-building, the development of better citizens is essential. To achieve any great heights or attain vastness, the foundation must be laid from the very beginning… We need people who move forward, understanding the international mindset with an Indian mind,” he said at the School of Ultimate Leadership conclave. “The development of exceptional leaders in every field is crucial and a necessity of the times. That is why the establishment of the School of Ultimate Leadership (SOUL) is a significant and major step in India’s journey towards a developed future. The very name ‘SOUL’ is not a coincidence—this institution will become the soul of India’s social life,” the Prime Minister said. Other Important Articles Covering the same topic: 📍Need leaders who understand international mindset, with an Indian mind: PM Modi THE IDEAS PAGE India can ensure Ukraine at the table Syllabus: Preliminary Examination: Current events of national and international importance. Main Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests What’s the ongoing story: Manav Sachdeva Writes: As the United States and Russia engage in high-level negotiations over Ukraine’s future — without Ukraine at the table — India cannot help but see a painful parallel to its own history. Key Points to Ponder: • India has been balancing its relations with Russia and Western countries amid the Ukraine conflict. Analyse the strategic challenges and opportunities this presents for India’s foreign policy. • What role can India play in global diplomacy to ensure that Ukraine's concerns are represented in key international forums while maintaining its strategic autonomy? • Discuss the impact of a potential US-Russia rapprochement under Donald Trump on India's geopolitical and economic interests. • Donald Trump’s foreign policy approach has been characterized by a shift away from multilateralism. Discuss the implications of such a shift for India’s diplomatic engagements. • How can India maintain a balanced approach between the U.S., Russia, and China in a rapidly changing world order? Key Takeaways: Manav Sachdeva Writes: • The exclusion of Ukraine from its fate is a stark reminder of how great powers have, time and again, decided the destinies of nations without regard for the people whose lives are at stake. The manner in which Ukraine is being sidelined in these discussions mirrors the colonial arrogance that defined the Partition of India in 1947, when Britain, in its hurried and careless retreat, drew arbitrary borders with little understanding of the human and geopolitical consequences. For India, the exclusion of Ukraine from these talks is more than just a diplomatic misstep — it is an act of profound historical injustice. The message is clear: Big powers dictate the futures of smaller nations, regardless of their sovereignty or self-determination. • In practical terms, India can push for four strategic points through a combination of diplomatic channels, international forums, and bilateral engagements. First, India should use BRICS, IBSA (India-Brazil-South Africa), and SCO to push for a collective demand that Ukraine must be part of the negotiations. It should quietly pressure Moscow by warning that a flawed peace will lead to long-term instability, affecting Russia’s future standing. • Second, India can use its growing relationship with Saudi Arabia and the UAE, both of whom have engaged in peace efforts, to insist that Ukraine be present in all negotiations. As a major energy importer, India can work with Gulf states to signal that a stable Ukraine is critical for global economic security. Third, as a key voice in the UN General Assembly, Security Council debates, and G20 summits, India can publicly oppose any settlement that does not respect Ukraine’s sovereignty. Finally, India should use its major arms purchases from Russia and trade ties with the West as leverage to ensure a fair settlement. Do You Know: Anil Wadhwa Writes in Delhi should be practical, reset ties: • The transatlantic alliance has been knocked off its axis. The pronouncements by US Vice President J D Vance at the AI Summit in Paris and the Munich Security Conference, and the “stark strategic realities” outlined by US Secretary of Defence Peter Hegseth at the NATO headquarters — that the US “will prioritise empowering Europe to own responsibility for its own security” — have left no doubt that the alliance is considerably weakened. • At the Riyadh meeting, US and Russian high-level officials, in the absence of Europe and Ukraine, have agreed that Ukraine cannot be a part of NATO, even while leaving open “negotiations” to Russia and Ukraine under Washington’s watch, conceding that it would be unrealistic for Russia to return to the status quo with respect to territory, and that sanctions on Russia will need to end following a peace deal. • Going forward, therefore, it is imperative for India to reset its diplomatic sights and anticipate the imponderables. A few trends are clear. Europe will likely turn more inward, and it will reciprocate on US tariffs. New avenues could open up for countries like China, India, Vietnam and other labour-intensive manufacturing countries. • India also has a real chance to forge ahead with digital partnerships with Europe and the US and find common ground on AI regulation, e-commerce and data storage norms with Europe, since both favour a middle path. Other Important Articles Covering the same topic: 📍China’s hopes to be Ukraine peacemaker collide with its goals on Trump, trade EXPLAINED Remission without application: What Supreme Court held, why Syllabus: Preliminary Examination: Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc. Main Examination: General Studies II: Structure, organization and functioning of the Executive and the Judiciary What’s the ongoing story: • What is the law on remission? • What did the SC rule? • Did the SC issue any other directions? • What is the prison population in India? Key Takeaways: • With exceptions for certain kinds of convicts, states are empowered to release prisoners before the completion of their sentence under the Bharatiya Nyaya Suraksha Sanhita, 2023 (BNSS) and the Code of Criminal Procedure, 1973 (CrPC). • A bench of Justices Abhay S Oka and Ujjal Bhuyan delivered this judgment in the case of “In Re: Policy Strategy for Grant of Bail”. This is a suo motu case that the court itself instituted in 2021 to tackle issues related to overcrowding in prisons. • This decision marks a significant shift in the SC’s approach to remission. In two separate decisions from 2013, the court held that states cannot remit sentences suo motu (of their own volition) and the prisoner must first make an application. Do You Know: • The power of remission refers to the power to reduce the period of a sentence for a person who has been found guilty of a crime. Section 473 of the BNSS (and Section 432 of the CrPC) grants state governments the power to remit sentences “at any time”. States can also choose whether to impose conditions that the convict must meet for her sentence to be remitted, such as agreeing to report to a police officer at regular intervals. —If any of these conditions are not fulfilled, the provision states that the states may cancel the remission granted and arrest the convict again without a warrant. This is separate from the power of the President and the Governor to remit sentences under Articles 72 and 161 of the Constitution respectively. • One of the restraints placed on the state government’s power of remission can be found under Section 475 of the BNSS (and Section 433A of the CrPC). For convicts serving a life sentence and have been found guilty of an offence punishable by death, the state cannot release them from prison until at least 14 years imprisonment have been served. • The BNSS and the CrPC mention that the remission process starts “Whenever an application is made to the appropriate Government”. However, the SC has now ruled that this application is not strictly necessary now that most states have remission policies which prescribe eligibility conditions. • According to the latest data published by the National Crime Records Bureau, as of December 31, 2022, prisons in India have a 131.4% occupancy rate, with 5,73,220 inmates while the total capacity was 4,36,266. The Supreme Court’s directions may put a dent in this figure, although a vast majority of prisoners in India are undertrials (75.8%) and are still awaiting a final decision in their cases. Other Important Articles Covering the same topic: 📍Supreme Court’s big relief for convicts: States must consider release even without application ARTICLE 101(4) Syllabus: Preliminary Examination: Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc. Main Examination: General Studies II: Indian Constitution—historical underpinnings, evolution, features, amendments, significant provisions and basic structure. What’s the ongoing story: Incarcerated Khadoor Sahib MP Amritpal Singh on Wednesday (February 19) moved the Punjab and Haryana High Court to attend the ongoing Parliament session, lest he lose his seat because of his prolonged absence from the House. Key Points to Ponder: • What Article 101(4) of the Indian Constitution says? • If an MP is absent from all meetings of the House for 60 days without permission, who has the authority to declare their seat vacant under Article 101(4)? • Discuss the provisions of Article 101(4) of the Indian Constitution concerning the vacation of seats in Parliament. • In what circumstances can an MP's seat be declared vacant due to absence? • Analyse the safeguards provided in Article 101(4) to ensure that an MP's seat is not declared vacant unjustly. • Examine the role of parliamentary permissions in the context of Article 101(4). Key Takeaways: • Amritpal, who faces charges under the stringent National Security Act, has been detained in Dibrugarh since April 2023. He contested and won the 2024 Lok Sabha election from prison, but thus far has an attendance of only 2%, according to PRS Legislative Research data. • Past leave application reports list illness — their own or some relative’s — as the most common reason for MPs being granted leave. That said, members have requested and been granted leave on the count of being imprisoned as well. • In 2023, then Ghosi MP Atul Rai of the Bahujan Samaj Party sought permission to remain absent on 23 consecutive sittings of Parliament as he was in jail. His application was granted. • Even if an MP is absent for more than 60 days, the House has to “declare” the seat vacant, meaning the matter has to be put to vote. This makes it even less likely that Amritpal will end up losing his seat simply because he is unable to attend proceedings. Do You Know: • “If for a period of sixty days a member of either House of Parliament is without permission of the House absent from all meetings thereof, the House may declare his seat vacant,” Article 101(4) says. The 60 days, however, do not account for “any period during which the House is prorogued or is adjourned for more than four consecutive days”. • Effectively, the period of absence is only calculated based on the actual sittings of Parliament. Amritpal, for instance, only attended one sitting of the Lok Sabha — the one in which he was sworn in last July. Since then, he has remained in detention in Assam. This has amounted to nearly 50 absences thus far. • However, as former Lok Sabha Secretary General P D T Achary told The Indian Express, he does not recall a single instance in which Article 101(4) was invoked, and an MP lost her seat as a result. • The operative term in Article 101(4) is “without permission of the House”. For long absences, MPs write to the ‘Committee on Absence of Members from the Sittings of the House’, the parliamentary panel that deals with this issue. • The committee makes recommendations on each leave application, which are then ratified by the House concerned. In practice, however, applications are seldom rejected. “Amritpal as an MP has every right to write to the panel and request permission to be absent on the grounds that he is in jail and is not getting bail,” Achary said. Other Important Articles Covering the same topic: 📍Decode Politics: Is Amritpal Singh’s concern justified — can MPs lose their seat due to prolonged absence? What mineral resources does Ukraine have – and can the US take them? Syllabus: Preliminary Examination: Current events of national and international importance. Main Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests. What’s the ongoing story: US President Donald Trump has accused Ukraine of “breaking” a deal over the use of its mineral resources. While the deal had never been signed, Trump on Wednesday (February 19) told reporters, “They broke that deal.” Key Points to Ponder: • Examine the strategic importance of Ukraine’s mineral resources in the context of the US-China technological rivalry. • Analyse the geopolitical challenges faced by the US in securing critical minerals from Ukraine. • Discuss the role of critical minerals in shaping the global energy transition and economic policies of major powers like the US, China, and the EU. • Evaluate the impact of war and political instability on Ukraine’s ability to leverage its mineral resources for economic development. • How do international supply chain disruptions of critical minerals impact India’s energy security and manufacturing sectors? Suggest policy measures India can adopt to mitigate such risks. Key Takeaways: • He claimed that when US Treasury Secretary Scott Bessent travelled to Kyiv last week, the Ukrainians “agreed to it more or less” but then Bessent “was treated rather rudely because essentially they told him no.” • The US has proposed that it be allowed access to 50 per cent of Ukraine’s important mineral resources in return for support against Russia. While Ukraine’s President, Volodymyr Zelenskyy, is open to the deal, he wants more favourable terms. • While the details of the deal are not in public domain, broadly, while Ukraine sees the deal as a means to secure future assistance, Trump wants payment for the help the US has already provided. • According to a Financial Times report, Trump has said the US is owed $500 billion worth of Ukraine’s resources (including mineral deposits, fuel, and infrastructure such as ports) in exchange for military assistance provided against Russia. “That is significantly more than the total $69.2bn in military assistance Washington has given since 2014, according to State Department statistics,” the report says. • American officials have said that if the US were to get economic stakes in Ukraine — like a mining licence or other arrangements to extract minerals — that in itself would be a security guarantee, as the US would defend its interests against an attack. However, Zelenskyy wants a more concrete assurance of military and economic aid. Do You Know: • Ukraine has rich resources of minerals that are critical in manufacturing a variety of products, from high-end weapon systems to clean energy solutions like Electrical Vehicles to electronic gadgets and semiconductors. These minerals are not found widely and are also difficult to extract, making them valuable. What makes them even more important for the US and the West is that China has large sources of them. Mineral resources are part of the reason Trump wants to buy Greenland, too. • Two classifications are important when talking about these resources — rare earth elements, and critical minerals. There are 17 rare earth elements, including 15 Lanthanides (atomic numbers 57 — which is Lanthanum — to 71 in the periodic table), Scandium (atomic number 21) and Yttrium (39). • Minerals are defined as ‘critical’ by countries based on their needs, broadly using two parameters: their importance for economic development and national security, and their lack of availability. India in 2023 identified 30 critical minerals. • According to a report by Ukraine’s Ministry of Environmental Protection and Natural Resources and the Ukrainian Geological Survey, “Ukraine holds 22 of the 50 strategic materials identified by the US as critical, and 25 out of the 34 recognised by the EU as critically important. Particularly, Ukraine holds very competitive positions in five key ones: graphite, lithium, titanium, beryllium and uranium.” Other Important Articles Covering the same topic: 📍Trump calls Zelenskyy a ‘dictator’, deepens rift between Washington and Kyiv amid Russia-Ukraine war ECONOMY Defending rupee: RBI forward dollar sales touch $67.93 bn as of Dec 31 Syllabus: Preliminary Examination: Economic and Social Development Main Examination: General Studies II: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment. What’s the ongoing story: The Reserve Bank of India’s (RBI) outstanding net forward sales of the dollar have surged to $67.93 billion as of December 31, 2024, as the central bank intensified its efforts to stabilise the rupee. This marks a significant increase in outstanding forward dollar sales of $14.58 billion just three months ago in September 2024, and a substantial rise from $541 million during the year ended March 2024. Key Points to Ponder: • Analyse the reasons behind the Reserve Bank of India's decision to engage in forward dollar sales amounting to $67.93 billion as of December 31, 2024. • Critically evaluate the effectiveness of forward dollar sales as a tool for the Reserve Bank of India to defend the rupee. • Discuss the impact of the Reserve Bank of India's forward dollar sales on the liquidity conditions in the domestic banking system. • Examine the challenges faced by the Reserve Bank of India in managing the rupee's exchange rate through forward dollar sales, considering the global economic environment and India's external sector dynamics. • The Reserve Bank of India's substantial forward dollar sales reflect its approach to currency management. Key Takeaways: • The high forward dollar sales position indicates that the RBI has been actively selling dollars in the forward market to defend the rupee amid concerns over US trade policies, sluggish domestic growth, and FPI outflows. In the spot market, the RBI’s dollar sales stood at $45 billion in the third quarter—$15.15 billion in December 2024, $20.22 billion in November and $9.27 billion in October—while it bought dollar worth $9.63 billion in September 2024, according to RBI data. • The RBI also conducted a dollar-rupee buy/sell swap for $5 billion on December 31, with the transaction set to be reversed on August 4. This move aims to manage the impact of the RBI’s spot market interventions on rupee liquidity. • However, while higher dollar sales in the forward market may not impact the forex kitty immediately, it can lead to a decrease in forex reserves subsequently since the RBI is expected to repurchase the dollars in the forward market on the prescribed dates. By selling more dollars in the forward market, the RBI is effectively reducing the demand for dollars in the spot market, which helps to stabilise the rupee. • The rupee depreciated by 1.5 per cent month-on-month (m-o-m) in January 2025, in line with movements in most major currencies, amid growing global uncertainties. It had fallen to a low of 87.95 earlier this month. Do You Know: • A rising US dollar and FPI outflows from emerging market economies (EMEs) amid growing global uncertainties exerted significant pressure on emerging market currencies during January 2025. • In an environment of heightened global market turbulence, the rupee exhibited relatively low volatility. In terms of the 40-currency real effective exchange rate (REER), the INR depreciated by 2.2 per cent (m-o-m) in January 2025, due to depreciation of the INR in nominal effective terms and negative relative price differentials, the RBI said in its ‘State of the economy’ report released on Wednesday. • As of February 7, 2025, India’s foreign exchange reserves stood at $638.3 billion, providing a cover for 10.8 months of imports and 89.7 per cent of external debt outstanding at end-September 2024. The RBI noted that strong macroeconomic fundamentals and improvements in various measures of external sector vulnerability have helped India navigate the ongoing wave of global uncertainty. Other Important Articles Covering the same topic: 📍India is vulnerable to a currency crisis PRELIMS ANSWER KEY 1. (b) 2. (b) For any queries and feedback, contact priya.shukla@indianexpress.com Subscribe to our UPSC newsletter. 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