Assessment of Earthquake for GNIP

The Environmental Impact Assessment (EIA) for the Great Nicobar Infrastructure Project (GNIP) has come under scrutiny for underestimating the region’s high seismic risk. GNIP’s scope includes a transshipment port, an international airport, and power infrastructure. The project has received initial environmental and forest clearances but is challenged for potentially downplaying risks in a zone marked as the highest seismic category (Zone V). Located along the Andaman Trench, where the Indian Plate subducts beneath the Burmese Plate, the area is historically vulnerable, as seen in the devastating 2004 Indian Ocean tsunami. India’s vulnerability map classifies 58.6% of its land as earthquake-prone. As development expands into fragile ecosystems like the Nicobar Islands, the emphasis on resilient design and inclusive environmental review becomes more critical than ever.

Studying in Mother Tongue Instils Strong Values: CJI

The Chief Justice of India has strongly advocated for education in one’s mother tongue, calling it foundational to cognitive development, identity formation, and ethical grounding. Drawing from India’s rich linguistic heritage, where over 1,300 mother tongues are spoken, the CJI highlighted how colonial policies marginalized native languages. The NEP 2020, supported by NIPUN Bharat and CBSE’s regional language push, seeks to restore language equity by advocating native-language instruction until Grade 5 (preferably till Grade 8). While this improves foundational literacy and reduces dropout rates, challenges persist in resource allocation, trained teachers, and later-stage transition to English. The way forward lies in promoting bilingual education, investing in teacher training, and respecting regional diversity in implementation.

17th BRICS Summit in Brazil

At the 17th BRICS Summit in Brazil, Prime Minister Modi emphasized multipolarity, AI ethics, and equitable global governance. India advocated for reforms in international institutions, support for the Global South, and a BRICS Science Repository. The summit’s declaration addressed terrorism, development finance, and AI. India’s push for “AI for All” framed tech not as a threat but as a tool for inclusive growth. With the inclusion of six new nations like Iran and Saudi Arabia, BRICS now represents almost half the world’s population. While this increases its voice globally, challenges of coherence, power asymmetries (notably with China), and lack of institutional structure continue to hinder BRICS from reaching its full potential. India’s opportunity lies in leveraging the expanded BRICS to balance China’s dominance and advocate for UNSC reform and a rules-based global order.

India Ranks 4th Among the World’s Most Equal Societies

India has ranked fourth in the World Bank’s latest Gini Index update with a score of 25.5, indicating one of the most equal income distributions globally. This places India after Slovakia, Slovenia, and Belarus—well ahead of China (35.7) and the USA (41.8). India’s success is attributed to key schemes like PM Jan Dhan Yojana, Ayushman Bharat, DBT, PMGKAY, and Stand-Up India. Over 171 million Indians exited extreme poverty between 2011–23. The Gini Index, measured using the Lorenz Curve, reflects narrowing income disparities in India. However, sustained policy innovation, labour market formalization, and rural-urban parity will be essential to retain and deepen this progress.

Cooperatives: The Economic Backbone of India

The foundation stone for Tribhuvan Sahkari University in Gujarat highlights the growing national emphasis on cooperatives as vehicles for economic empowerment. Cooperatives like Amul and PACS have long supported farmers, artisans, and marginalized communities by providing access to credit, marketing, and decision-making autonomy. India’s legal support through the 97th Constitutional Amendment (2011) and the formation of a dedicated Ministry of Cooperation in 2021 has strengthened the sector. However, challenges such as weak governance, politicization, and limited access to capital persist. Moving forward, digital infrastructure, professional capacity building, and cooperative-led FPOs (Farmer Producer Organisations) can help revitalize this third economic pillar alongside the public and private sectors.

Concern Over Falling Household Savings in India

India is witnessing a worrisome trend: a steep decline in household financial savings, now at just 5.1% of GDP (2022–23), down from 11.5% in 2020–21. Simultaneously, household liabilities have surged to a 17-year high. Structural factors—low real wages, inflation, and aspirational consumption—are driving this fall. Post-COVID shifts in financial behavior have also led to increased investment in mutual funds and equities, but this financialisation hasn’t translated into secure long-term savings. Policymakers must address this through tax incentives, improved financial literacy, auto-enrollment in NPS, and tailored savings products for informal sector workers. Failure to reverse the trend could reduce domestic capital formation, strain banking stability, and undermine old-age security.

‘Invisible Hand’ in India’s Foreign Trade

India’s trade surplus increasingly depends on “invisibles” such as services exports and remittances rather than goods. Services contribute over 55% of India’s GVA and employ 30% of the workforce. Key sectors include IT, finance, and education, with India ranking 7th globally in services exports. Computer services alone account for 70% of this. As India positions itself as the “office of the world,” services have kept the current account deficit in check. However, to fully unlock this potential, India must address digital infrastructure gaps, upskill its youth, ease regulations, and expand global access. Government schemes such as the Champion Services Sector Action Plan and liberalized FDI norms support this transition, but real gains lie in policy harmonization and trade diversification.

News In Short – 7 July 2025

Helgoland
A small island in the North Sea, Helgoland is the birthplace of quantum mechanics. In 1925, Werner Heisenberg developed matrix mechanics here, revolutionizing physics and laying the foundation for technologies like semiconductors and lasers.

Taiwan Strait
Taiwan condemned China’s opening of a new aviation route across the Taiwan Strait, citing heightened regional tensions. The strait is a crucial maritime link separating mainland China and Taiwan and a frequent flashpoint in Indo-Pacific geopolitics.

Blue Nile
Ethiopia has completed the Grand Ethiopian Renaissance Dam (GERD), the largest hydro project in Africa, on the Blue Nile. The dam has been a source of friction with Egypt and Sudan due to downstream water security concerns.

National Commission for Minorities (NCM)
The NCM remains non-functional since April 2025 due to a vacant Chairperson post. The statutory body is responsible for safeguarding the rights of six recognized religious minority groups. Its temporary inactivity raises concerns about minority representation.

NMC Relaxes Medical Education Norms
The National Medical Commission (NMC) has introduced the Medical Institutions (Qualifications of Faculty) Regulations, 2025 to address faculty shortages and expand MBBS/MD seats. It allows faculty appointments in 220+ bedded non-teaching hospitals and relaxes residency rules. While it broadens eligibility, experts warn of a possible dilution in teaching standards.