What to Read in The Hindu Editorial( Topic and Syllabus wise)

Editorial 1: ​​​Powering up the Australia-India clean energy partnership

Context

Blending Australia’s rich resources with India’s skilled workforce can create a stronger, more self-reliant clean energy system rooted in the Indo-Pacific region.

Introduction

At a time when both India and Australia are chasing big clean energy goals, Australia’s Climate and Energy Minister, Chris Bowen, is visiting Delhi today (October 15) to meet India’s New and Renewable Energy Minister, Pralhad Joshi. His visit comes as both countries face growing worries about global supply chains and the struggle to reach clean energy targets. The key issue is clear: how to expand renewable energy fast while reducing dependence on China, which controls most processing and manufacturing of critical materials.

• The India–Australia Renewable Energy Partnership (REP), started last year by Prime Ministers Narendra Modi and Anthony Albanese, now needs to shift from vision to action.
• For real success, both nations must work together on joint clean energy projects, critical mineral cooperation, and capacity building.
• These steps can help turn their climate ambitionsinto practical and lasting results.
• Minister Chris Bowenwill get a chance to stress the importance of this partnership during the Australia India Institute’s Annual Oration in New Delhi this week.

A climate change vulnerable region

• The Indo-Pacific regionis among the most climate-vulnerable areas in the world. From 1970 to 2022, it faced about 10 climate disasters every month, causing thousands of deaths and billions in damages.
• By 2050, nearly 89 million peoplemay be displaced, and 80% of the population could feel the direct impact of climate change.
• To face this, Indiaaims for 500 GW of non-fossil electricity capacity by 2030, including 280 GW from solar power. It is already five years ahead of schedule, with half of its power capacity now from non-fossil sources(as of July 2025).
• Australiahas pledged a 62%–70% cut in emissions below 2005 levels by 2035, showing stronger commitment toward net-zero goals.
• Minister Chris Bowencalled this target “ambitious and achievable, but also investable.” However, targets alone are not enough. The global clean-energy shift still relies heavily on critical minerals, solar components, batteries, and hydrogen technologies.

The risks of single country dependence

• Much of the global clean energy value chaindepends on one country — China. It refines over 90% of rare earth elements and makes about 80% of the world’s solar modules, giving it major control over renewable energy supplies.
• For India, this dependence shows up in electric mobilityand wind power, where imports of rare earth magnets and battery materials are hard to avoid.
• For Australia, the issue is different but linked. It is a top producer of lithiumand has large reserves of cobalt and rare earths, but lacks refining and manufacturing capacity.
• The COVID-19 pandemicexposed how fragile these supply chains Component shortages disrupted production worldwide. Later, China’s export limits on rare earths again highlighted this vulnerability.
• In India, such limits slowed electric vehicle production. One major EV scooter companymade only 10,824 units in July, nearly half of last year’s output. For Australia, these events showed the risks of staying only a raw-material supplier.
• These lessons make diversification, downstream processing, and supply chain resiliencenot just helpful but strategic needs.
• The India–Australia Renewable Energy Partnership (REP)offers a shared framework to tackle these risks. It promotes cooperation in solar technology, green hydrogen, energy storage, supply chains, circular economy, two-way investment, and capacity building.
• It also introduces a Track 1.5 Dialogue, joining governments, industries, and researchersto build practical clean-energy collaboration.

A strong basis for collaboration

• Australiabrings rich natural resources and stable regulations to the partnership. It can supply critical minerals like lithium and rare earths to India. But the real strength lies in co-investing in refining and processing units, giving both nations more control over the clean energy value chain.
• Australia’s new Net Zero Jobs Planalso focuses on building a skilled green workforce, making it a natural fit for collaboration with India.
• India’s advantagelies in its scale and youth. With two-thirds of its people under 35, India’s young workforce can drive clean energy manufacturing, installation, and maintenance through initiatives like Skill India.
• Its rising demandfor solar, storage, and hydrogen, supported by Production-Linked Incentive (PLI) schemes, opens the door for Australian firms to invest and diversify supply chains.
• Together, Australia’s resourcesand India’s workforce can build a strong, regional clean energy system that is both resilient and self-reliant.
• Minister Chris Bowen’s visit to Delhicomes at a critical time. Joint efforts in clean energy can show how two democracies can face climate threats and create stable, regional energy networks for a safer future.

Conclusion

The India–Australia clean energy partnership stands at a turning point. Both nations can blend Australia’s rich resources with India’s skilled workforce to build a resilient, self-reliant energy future. By focusing on joint investments, critical minerals, and green technology, they can move from promises to performance – proving how two democracies can power the region’s sustainable transformation together.

 

Editorial 2: ​​Inflation lessons

Context

The Reserve Bank of India needs to make its forecasts more precise and reliable.

Introduction

India’s retail inflation hit a 99-month low of 1.54% in September 2025, giving the Reserve Bank of India (RBI) both relief and a new challenge. While this reflects price stability, it also hints at weak consumer demand. The situation calls for balanced policy action to sustain growth, investment, and wage improvement across key sectors.

Record Low Inflation: Policy Implications for the RBI

• Retail inflationin September 2025 fell to a 99-month low of 1.54%, marking a major shift for India’s economy.
• Apart from August, inflation has slowed every monththis financial year, averaging 2%, which sits comfortably within the RBI’s 2–6% target band.
• Earlier, when inflation was high, the RBI aimed for 4%as its ideal target. Now, with inflation below that level, it may need to rethink its approach to maintain balance.

Falling Prices and Weak Demand

• Persistent low inflationsignals that supply is outpacing demand in the economy.
• For instance, clothing and footwear inflationwas just 3% in September 2025, continuing a steady two-year decline.
• This trend mirrors China’s oversupply issue, though China offsets it with strong export demand—something India has struggled with, especially amid tariff tensions.

Government Efforts and Consumption Challenges

• The government has tried to boost demandthrough income-tax cuts and lower GST rates.
• However, households saved or repaid loansinstead of spending more, while GST cuts only led to short-term buying spurts.
• What India truly needs is a steady rise in real wages, driven by private sector job growth and investment.

Investment and Policy Response

• Encouragingly, private investment announcementshave risen in early 2025, but these must turn into real projects soon.
• The RBI can support thisby cutting interest rates at its December MPC meeting to stimulate borrowing and growth.
• With inflation lowand private investment lagging, the RBI should favor growth rather than play it too safe.

Need for Better Forecast Accuracy

• The RBI’s inflation forecastshave been inconsistent this year.
• In April, it predicted 4% inflation, but by September, it revised it down to 6%—a sharp correctionin just six months.
• While economic conditions change, such large forecast errors show flawsin the RBI’s estimation model.
• Since accurate inflation predictionis central to monetary policy, the RBI must improve its forecasting methodsto guide future decisions more reliably.

Conclusion

With inflation below target and investment yet to pick up, the RBI must act decisively. A rate cut could boost private investment and consumer spending. Yet, the central bank also needs accurate forecasting to guide policies better. Sustained growth, higher real wages, and resilient demand should now anchor India’s monetary strategy in this low-inflation phase.