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

Editorial 1: ​Limited gains

Context

A brief dip in inflation offers little lasting benefit.

Introduction

India’s inflation landscape has shifted dramatically in recent years, moving from levels above the RBI’s comfort bandto well below it. July 2025 retail inflation reached its lowest point since 2017, driven mainly by a drop in food prices. While this provides short-term relief, underlying growth challenges and structural weaknesses mean the economic picture remains mixed.

Shift in Inflation Dynamics

• Two years ago, inflation was above the RBI’s 2%–6% comfort band; now it is below the lower limit.
• July 2025 retail inflation: 55%, the lowest since June 2017.
• Drop largely driven by a contraction in food prices, not a statistical fluke.

Significance of the Base Effect

• Base effect in July was low: food inflation in July 2024 was already at a 13-month low.
• A further contraction this year means genuine price reductionrather than an effect of high prior-year prices.

Drivers of Continued Low Inflation

• Improved sowing
• Good monsoon
• Favourable base effectfrom late 2024’s inflation surge.
• Core inflation(excluding food and fuel) at 1%, matching RBI’s target.

External Risks to Price Stability

• Possible risk if India shifts from Russian crudeto costlier Gulf oil, though government says national interest comes first.
• The Trump–Putin meetingcould ease recent tariff-related pressures.

RBI’s Inflation Forecast

• Inflation expected to start rising only from January 2026.
• Short-term outlook is positive, but complacency is discouraged.

Signs of Economic Growth Slowdown

• Index of Industrial Productionat a 10-month low; capital and consumer goods output is weak.
• GST revenuegrowth slowed to single digits in June–July 2025.
• Gross direct tax collectionscontracted this financial year.
• Car salesto dealers hit an 18-month low in June.
• UPI transactionsfell month-on-month three times in 2025, signalling weak demand.

Risks to GDP Outlook

• RBI still projects 5% GDP growthfor FY2025–26, but this may be overly optimistic.
• Even if the U.S. removes new 25% tariffs, the existing 25% duties could still cut GDP by 2 percentage points.
• Growth remains too fragile to ignore such potential losses.

Structural and Demand-Side Challenges

• Persistent structural issuesin the economy.
• Subdued demanddespite low inflation.
• Temporary price relief won’t translate into long-term growthwithout deeper reforms.

Conclusion

India’s low inflation offers breathing space for monetary policy and household budgets, but it cannot mask economic fragility. Weak demand, sluggish industrial output, and structural bottlenecks pose risks to sustained growth. Without addressing these challenges, the current price stability may prove temporary, and the nation’s growth momentum could falter despite favourable short-term economic conditions.

 

Editorial 2: Aid and advice

Context

L-G’s unchecked nominations could undermine J&K’s polls.

Introduction

The Union Ministry of Home Affairs’ stand on the Lieutenant-Governor’s nomination powers in Jammu & Kashmir raises critical concerns about democratic accountability. Allowing five nominated members with voting rightswithout the aid and advice of the elected government risks undermining the Constitution’s basic structure by enabling administrative discretion to alter legislative majorities and potentially overturn the people’s mandate.

Ministry’s Assertion and Democratic Concerns

• MHA’s Stand: The Union Ministry of Home Affairs told the J&K High Court that the Lieutenant-Governor (L-G) can nominate five Assembly members without the “aid and advice” of the elected government.
• Accountability Question: Such nominations, especially when they carry voting rights, must be rooted in a democratic mandate, not administrative discretion.
• Core Constitutional Issue: The High Court is examining whether the 2023 amendmentsto the J&K Reorganisation Act—allowing the L-G to nominate five members—violate the Constitution’s basic structure by enabling shifts in legislative majority.
• Potential Impact: These powers could allow nominated members to convert a minority government into a majorityor vice versa.

Legal Arguments and Precedents Invoked

• Ministry’s Approach: Focuses on technical legal pointsrather than the constitutional principle at stake.
• Scope of Authority: Argues nominations are outside the elected government’s remit.
• Puducherry Precedent: Cites  Lakshminarayanan vs The Union of Indiacase to support the L-G’s nomination powers.
• Statutory Justification: References Section 12 of the 1963 Union Territories Act(on voting procedures) to argue nominations can bypass democratic consultation.
• Sanctioned Strength Argument: Claims “sanctioned strength” includes both elected and nominated members—downplaying the risk of altering government stability in a 119-member Assembly.

Implications, Historical Context, and Contradictions

• Amendment Details: Sections 15A and 15B of the 2019 Act permit the L-G to nominate:
  • Two Kashmiri migrants (including one woman).
  • One person from Pakistan-occupied J&K.
  • Two women if underrepresented in the Assembly.
• Historical Example: In Puducherry (2021), nominated members and defecting MLAs contributed to the fall of the Congress-led government.
• Democratic Fragility in J&K: Transition to Union Territory occurred without elected representatives’ consultation. Promise of Statehood restoration remains unfulfilleddespite widespread support and Supreme Court acknowledgment.
• Supreme Court’s Position: In Delhi services cases (2018, 2023), SC held that the L-G should generally act on the elected government’s advice, with discretionary powers as rare exceptions.
• Contradiction: The Ministry’s argument undermines this jurisprudence, risking a subversion of electoral verdictsthrough appointed nominees.

Conclusion

Empowering the Lieutenant-Governor to nominate members without democratic consultation risks weakening the representative nature of governance in Jammu & Kashmir. Given the region’s fragile political history, unresolved Statehood restoration, and Supreme Court’s guidance on limiting discretionary powers, any framework enabling appointed officials to alter legislative majorities directly challenges the democratic essence and constitutional integrity of India’s parliamentary system.