What to Read in Indian Express Editorial ( Topic and Syllabus wise)

 

Article 1: Agri Value Chain Reforms

Why in News: Farmers in Haryana protested against the newly introduced biometric verification system in mandis (2026), citing inconvenience and procedural hurdles.

Key Details

Haryana introduced Aadhaar-based biometric verification for farmers selling crops in mandis.

Integrated with Meri Fasal-Mera Byora portal for farmer registration and crop tracking.

Triggered after the 2025 Karnal paddy scam, which exposed procurement fraud.

Farmers allege harassment, while the government defends it as a step towards transparency and accountability.

Agricultural Marketing System in India

APMC Mandis Framework: Agricultural produce is primarily sold through APMC mandis, where state-regulated markets ensure price discovery and procurement, especially for MSP-backed crops like wheat and paddy.

Role of MSP Procurement: Government procurement (mainly by FCI and state agencies) ensures income security for farmers, particularly in states like Punjab and Haryana with high MSP dependence.

Issues in Traditional Mandis: Problems such as middlemen dominance, lack of transparency, and manual record-keeping have historically led to inefficiencies and corruption.

Reform Initiatives: Platforms like e-NAM aim to create a unified digital market, improving price transparency and interstate trade.

Haryana’s Biometric Procurement System

Aadhaar-Based Verification: Farmers must authenticate identity through fingerprint-based Aadhaar verification before selling produce, ensuring genuine beneficiaries.

Digital Integration: Linked with Meri Fasal-Mera Byora, which records land, crop details, and farmer identity, enabling accurate procurement records.

Geofencing & Tracking: Over 400+ mandis and 1,300+ storage points have been geofenced, with vehicle tracking to prevent unauthorized procurement.

Operational Impact: The government claims that by April 2026, ~75% wheat arrivals were verified, indicating large-scale adoption.

Rationale Behind the Reform

Karnal Paddy Scam (2025): Fake procurement using paddy from other states led to large-scale financial fraud involving officials and traders.

Leakages in Subsidy System: According to policy reports, inefficiencies in procurement can lead to significant fiscal losses, affecting subsidy targeting.

Need for Transparency: Digital verification aims to eliminate ghost beneficiaries, duplicate entries, and fake gate passes.

Alignment with Digital India: The reform aligns with broader governance initiatives like Digital India, promoting technology-driven service delivery.

Farmers’ Concerns and Protests

Operational Difficulties: Farmers report long queues, slow biometric authentication, and technical glitches, causing delays in selling crops.

Exclusion Issues: Elderly or sick farmers face challenges as physical presence is required, raising concerns of accessibility.

Trust Deficit: Farmers argue that corruption is due to official-trader collusion, not farmers, and view the policy as misplaced accountability.

Federal & Political Dimension: Opposition leaders criticize the move as bureaucratic overreach, highlighting tensions between governance reforms and ground realities.

Governance vs Welfare Debate

Transparency vs Ease of Doing Farming: While digitization ensures accountability, excessive compliance may increase transaction costs for farmers.

Digital Divide: Limited digital literacy and infrastructure gaps in rural areas hinder effective implementation of such reforms.

Balancing Efficiency & Inclusion: Policies must ensure last-mile delivery without excluding vulnerable farmers, a key challenge in welfare governance.

Lessons from Past Reforms: Experiences from farm laws (2020–21 protests) show the need for stakeholder consultation and gradual implementation.

Conclusion

Biometric procurement reflects the state’s push for transparency and accountability, but its success depends on farmer-centric implementation. Simplifying procedures, ensuring technological reliability, and building trust through consultation are essential. A balanced approach combining digital governance with social sensitivity will determine whether such reforms strengthen or strain India’s agricultural system.

EXPECTED QUESTIONS FOR UPSC CSE

Prelims MCQ

Consider the following statements:

APMC mandis are regulated by the Central Government.

e-NAM aims to create a unified national agricultural market.

MSP procurement is mandatory for all crops in India.

Which of the above is/are correct?

1 and 2 only

2 only

1 and 3 only

1, 2 and 3

Answer: (b)

Descriptive Question

1. Examine the role of technology in improving agricultural procurement in India. Highlight the associated challenges and suggest measures. (150 Words, 10 Marks)

 

Article 2: Currency Stability & Credibility

Why in News: The Indian Rupee is under pressure amid persistent Balance of Payments (BoP) concerns and volatile global capital flows, raising questions about economic credibility and policy response.

Key Details

The rupee has faced depreciation pressures due to BoP deficit, FPI outflows, and weak FDI inflows in recent years.

Economic theory shows that excessive depreciation leads to inflation, capital flight, and reduced investor confidence.

Historical episodes like the 2008 Global Financial Crisis and 2013 Taper Tantrum highlight India’s policy responses.

The rupee is not just a price indicator but a reflection of macroeconomic stability and policy credibility.

Exchange Rate as an Economic Indicator

Barometer of Credibility: The exchange rate reflects investor confidence, macroeconomic stability, and policy consistency. Persistent depreciation signals weak fundamentals and credibility concerns.

Determinants of Exchange Rate: Factors such as inflation differential, interest rates, current account deficit (CAD), and capital flows influence currency valuation in open economies.

Rupee Regime in India: India follows a managed floating exchange rate system, where the Reserve Bank of India (RBI) intervenes to curb excessive volatility.

External Sector Linkages: A weaker rupee increases the cost of imports like crude oil (India imports ~85% of oil needs), thereby widening CAD and inflationary pressures.

Myth of Competitive Devaluation

Export Competitiveness Argument: Currency depreciation is often seen as a tool to boost exports by making goods cheaper globally. However, gains are often short-lived and limited.

Import-Dependent Economy: India’s industries rely heavily on imported inputs (energy, electronics), so depreciation raises production costs, offsetting export advantages.

Inflationary Impact: Depreciation leads to imported inflation, especially in fuel and food, which reduces real income and domestic demand.

Investor Confidence Erosion: Global investors factor currency risk; a 10% depreciation can wipe out returns, discouraging foreign investment inflows.

Economic Theories Explaining Currency Movements

Dornbusch Overshooting Model: Due to sticky prices and flexible financial markets, exchange rates overshoot their equilibrium value during shocks, causing excessive volatility.

Mundell-Fleming Model (Impossible Trinity): A country cannot simultaneously maintain:

Fixed exchange rate

Free capital mobility

Independent monetary policy

Policymakers must choose trade-offs, especially during crises.

Capital Flight Dynamics: Loss of confidence leads to self-fulfilling depreciation, where investors exit rapidly, further weakening the currency.

Exchange Rate Pass-Through: Depreciation impacts domestic prices through imports, highlighting the link between currency and inflation targeting.

Lessons from Global and Indian Experiences

Global Financial Crisis (2008-09): India responded with monetary easing (repo cut from 9% to ~4.75%) and fiscal stimulus (~3% of GDP), stabilising growth and liquidity.

2013 Taper Tantrum: Rupee depreciated ~20%; RBI used interest rate hikes, FCNR(B) deposits, and dollar swaps, while fiscal consolidation reduced CAD from 4.8% to 1.3% of GDP.

Emerging Market Experience: Countries like Turkey and Brazil faced high inflation and instability, showing that depreciation cannot substitute structural strength.

China’s Strategy: China maintained competitiveness through industrial strength and export diversification, not just currency manipulation.

Current Challenges for Indian Rupee

BoP Deficit Pressure: India is witnessing consecutive years of BoP deficit, indicating external sector stress despite moderate CAD levels.

Weak Capital Inflows:

FPI flows have been volatile

Net FDI turned negative post-2025

This creates a financing challenge for CAD.

Global Headwinds: Rising geopolitical tensions, trade wars, and monetary tightening in advanced economies increase currency volatility.

Structural Issues: Dependence on energy imports, supply-side constraints, and global demand slowdown affect rupee stability.

Policy Response: Monetary, Fiscal and Structural Measures

Monetary Measures (RBI): RBI uses tools like forex intervention, swap windows, sterilisation, and liquidity management to stabilise the rupee.

Interest Rate Dilemma: Raising rates supports the rupee but slows growth, while lowering rates boosts growth but weakens currency.

Fiscal Measures: Rationalising subsidies, managing oil prices, and adhering to FRBM targets help maintain macroeconomic stability.

Structural Reforms:

Energy security and diversification

Inclusion of petroleum products under GST

Ease of Doing Business reforms.

These improve long-term investor confidence.

Rupee and Investor Confidence

Signal to Global Markets: Stable currency indicates policy credibility and economic resilience, attracting long-term investment.

Impact on External Debt: Depreciation increases the burden of external commercial borrowings (ECB), affecting corporate balance sheets.

Sovereign Rating Implications: Persistent currency weakness may influence credit ratings, increasing borrowing costs.

Confidence Multiplier Effect: Stable rupee enhances trust in India’s growth story, supporting Make in India and export-led growth.

Conclusion

The Indian rupee must be viewed not merely as an exchange rate but as a reflection of macroeconomic credibility and institutional strength. While limited depreciation can act as a shock absorber, sustained weakness leads to inflation, reduced investment, and economic instability. A coordinated policy approach—combining monetary prudence, fiscal discipline, and structural reforms—is essential to ensure currency stability. Ultimately, credibility, not depreciation, is the true driver of sustainable growth.

EXPECTED QUESTIONS FOR UPSC CSE

Prelims MCQ

1. Which of the following is associated with the “Impossible Trinity”?
   (a) Inflation targeting
   (b) Exchange rate stability, capital mobility, monetary independence
   (c) Fiscal deficit management
   (d) Balance of trade equilibrium
   Answer:(b)

Descriptive Question

1. Critically examine whether currency depreciation can ensure export competitiveness in emerging economies like India. (150 Words, 10 Marks)

 

Article 3: Global Health Governance

Why in News: Recent institutional instability and policy shifts in the US Food and Drug Administration have raised concerns over excessive global dependence on a single regulatory authority.

Key Details

The FDA has long acted as a global benchmark regulator for drugs, vaccines, and medical devices.

Many countries rely on FDA approvals through accelerated or reliance-based regulatory pathways.

Recent issues like leadership turnover and policy changes have created uncertainty globally.

Countries like India are now focusing on strengthening domestic regulatory capacity.

FDA as Global Regulatory Benchmark

Gold Standard Regulator: The FDA is globally regarded as a highly credible authority, setting standards for drug safety, efficacy, and quality, influencing regulators worldwide.

Wide Scope of Regulation: It regulates pharmaceuticals, biologics, vaccines, medical devices, and diagnostics, making it central to global healthcare innovation.

Global Influence: Regulatory bodies across Asia, Africa, and Latin America often align their standards with FDA guidelines to maintain international credibility.

Market Access Significance: FDA approval is crucial for companies as the US is the largest pharmaceutical market, influencing global commercialization strategies.

Reliance-Based Regulatory Systems

Accelerated Approval Pathways: Many countries adopt reliance models, where they partially depend on FDA or EMA decisions to speed up approvals.

Efficiency for Developing Nations: This reduces regulatory burden for countries with limited capacity, ensuring faster access to life-saving drugs and vaccines.

Global Regulatory Harmonisation: Reliance systems promote uniform safety standards, improving trust in medical products across borders.

Risks of Overdependence: Any delay or change in FDA processes can create cascading delays in multiple countries simultaneously.

Impact on Clinical Trials and Innovation

Standardisation of Clinical Trials: FDA-approved protocols influence trial design, endpoints, and safety norms globally.

Pharmaceutical Industry Alignment: Companies design trials to meet FDA requirements to ensure global market acceptance.

Emerging Technologies Regulation: FDA policies on AI in healthcare, digital health tools, and gene therapy shape innovation trends worldwide.

Research Ecosystem Dependence: Changes in FDA expectations can alter global R&D investments and innovation pathways.

Recent Challenges within FDA

Leadership Instability: Frequent changes in leadership, especially in biologics divisions, create uncertainty in regulatory priorities.

Budgetary and Political Pressures: Funding constraints and policy debates have impacted decision-making efficiency.

Controversial Approvals: Some recent drug approvals have raised concerns regarding transparency and scientific rigour.

Impact on Global Systems: These issues create ripple effects in countries dependent on FDA decisions, affecting drug availability timelines.

India’s Regulatory Framework and Challenges

Role of CDSCO: Central Drugs Standard Control Organisation is India’s primary regulator responsible for drug approvals and safety.

Growing Pharmaceutical Sector: India is known as the “pharmacy of the world”, supplying over 60% of global vaccines and a large share of generic medicines.

Dependence on Global Benchmarks: Despite improvements, India often refers to FDA or EMA approvals for regulatory validation.

Need for Capacity Building: Strengthening regulatory science, infrastructure, and manpower remains essential for self-reliance.

Need for Multipolar Global Health Governance

Diversification of Regulatory Authority: Reducing dependence on a single regulator ensures resilience and stability in global health systems.

Role of WHO and Global Mechanisms: World Health Organization initiatives like prequalification programmes support global quality assurance.

Regional Cooperation Models: Platforms like African Medicines Agency (AMA) and regional harmonisation efforts promote collective regulatory strength.

Equity in Global Health: A multipolar system ensures fair access to medicines, especially for low- and middle-income countries.

Implications for India

Atmanirbhar Bharat in Healthcare: Strengthening domestic regulation aligns with India’s goal of self-reliance in pharmaceuticals.

Strategic Global Positioning: India can emerge as a regulatory leader in the Global South.

Public Health Security: Robust national systems reduce vulnerability to external regulatory shocks.

Policy Reforms Needed: Emphasis on transparency, digitalisation, and skilled manpower is essential.

Conclusion

Global health governance must evolve from FDA-centric dependence to a multipolar regulatory framework. Strengthening national regulators like CDSCO, promoting regional cooperation, and enhancing global institutional mechanisms will ensure equitable, efficient, and resilient healthcare systems. For India, this is both a challenge and an opportunity to emerge as a global leader in pharmaceutical regulation.

EXPECTED QUESTIONS FOR UPSC CSE

Prelims MCQ

1. Which of the following best describes “reliance-based regulatory pathways”?
   (a) Independent drug approval without external reference
   (b) Partial reliance on decisions of trusted global regulators
   (c) Exclusive WHO-based approvals
   (d) Trade-based pharmaceutical approvals
   Answer:(b)

Descriptive Question

1. “Overdependence on a single regulatory authority like the FDA can undermine global health governance.” Discuss with reference to India. (150 Words, 10 Marks)