24 September 2025 The Hindu Editorial
What to Read in The Hindu Editorial( Topic and Syllabus wise)
Editorial 1: Right to state
Context
Recognition of Palestine carries real political weight
Introduction
The Israel-Palestine conflict remains one of the most enduring crises in modern history. While Israel was swiftly recognised in 1948, Palestine struggled for global legitimacy. The recent recognition by Western powers signals cracks in long-standing pro-Israel consensus. Though immediate change is unlikely, it reflects growing demands for a two-state solution and international justice.
Historical Context
- 1948: Israel was declared in Palestine on May 14, 1948, and recognised by the U.S. within 11 minutes.
- Soon after, most UN members extended recognition; Israel became a UN member in 1949.
- 1988: The Palestine Liberation Organisation (PLO)declared the state of Palestine.
- Much of the Global Southrecognised Palestine, but Western nations withheld recognition, insisting it must come only through a negotiated two-state solution.
Recent Shift in Recognition
- At the UN General Assembly (2025), the K., France, Canada, and Australiarecognised Palestine.
- This marks a shift away from unconditional support for Israeland reflects waning belief in a coercion-free diplomatic process.
Impact on Palestinians
- Recognition offers diplomatic respite, but comes too late:
- Gazahas been devastated by Israeli forces.
- Jewish settlementsand checkpoints expanded in the West Bank.
- Settler violencedisplaced thousands in the last two years.
- Israeli Prime Minister Benjamin Netanyahuinsists there will never be a Palestinian state, with Washington’s full backing.
Symbolism vs Reality
- Recognition may not immediately change ground realities.
- Israel’s ruling coalition cannot stop the war in Gaza or revive a two-state solution.
- Yet, recognition signals cracks in the post-1948 Western pro-Israel consensus.
Historical Responsibility of Western Powers
- K.: Played a decisive role in creating Israel.
- France: Armed Israel in its early years and helped develop nuclear weapons.
- These powers share historical responsibilityto help resolve the conflict.
Policy Recommendations
- Palestinians’ right to an independent, sovereign stateis internationally recognised.
- Europe should:
- Demand an end to the Gaza war.
- Impose an arms embargoon Israel if settlement expansion continues.
- Treat annexation of the West Bankas a red line.
Future Prospects
- Netanyahu and his extremist allies may remain defiant but isolated.
- They will not rule forever — a future Israeli leadermay move away from militarism.
- Endless war and the “genocidal” imageharm Israel’s long-term interests, despite Netanyahu’s short-term political gains.
- Current recognition should act as a stepping stonetowards the creation of a Palestinian state.
- This is the best chance for peacein Palestine, Israel, and West Asia.
Conclusion
Western recognition of Palestine may not end the Gaza war or halt settlements, but it marks a crucial step in challenging Israel’s militarism. For sustainable peace in West Asia, recognition must evolve into action — including arms embargoes, protection of Palestinian rights, and revival of a genuine two-state framework. Only then can justice and coexistence be achieved.
Editorial 2: Getting GST 2.0 to run like a well-oiled machine
Context
The success of GST 2.0 rests on the foundation of trust shared by the government, industry, and consumers.
Introduction
The clearance of GST reforms by the GST Council at its 56th meeting on September 3, 2025, has significantly transformed India’s indirect tax framework. In discussions with industry leaders, both large and small, it becomes increasingly evident that the depth of this change is profound, prompting a renewed examination of its evolving dimensions. This marks a historic step in the simplification of GST. With decades of experience in indirect taxation, it is clear that the scale of reform and its far-reaching implications for consumers, micro, small and medium enterprises (MSMEs), industry, and the broader economy are monumental.
Consistent advocacy
Aspect | Details |
CII’s Role | – Advocacy since Dec 2024 through reports, studies, and engagements with Centre & States. – Highlighted need for rate rationalisation, simpler classification, and reduced compliance friction. – Issued press releases pressing for reforms. |
MSME Concerns | – Classification disputes. – High taxes on essentials. – Inverted duty structures. – Cumbersome procedures. – Many of these addressed in Sept 3, 2025 reforms. |
Revised Tax Structure | – Old four-slab system (5%, 12%, 18%, 28%) collapsed. – New three-tier system: • ~5% for essentials. • 18% as the standard rate. • 40% for luxury & sin goods. |
Impact on Goods | – Daily-use items (household goods, toiletries, small appliances) shifted to lower slabs. – Relief especially for middle- and lower-income households. |
Procedural Simplifications | – Stock adjustments without relabelling. – Clearer classification norms. – Faster refunds. – Simpler compliance for small firms. |
Consumer Benefits | – Goods earlier taxed at 12% or 18% now down to 5% or less. – Finance Minister: “99% of goods and services will fall under zero, 5% or 18%; only 1% in luxury/sin categories.” – Results in real household savings and helps moderate inflation. |
Benefits for Industry and MSMEs
- Lower input costs, reduced litigation, and lighter compliance burdens.
- Major relief for FMCG, textiles, small vehicles, appliances, cement, and farm equipmentsectors that faced inverted duties or higher rates.
- CII member-companiespledged to pass on savings to consumers, with some offering benefits beyond GST cuts.
- CII engagementswith authorities on labelling and packaging adjustments for smoother transition.
- Nationwide awareness sessions(virtual and physical) to ensure clarity for businesses of all sizes.
- Economic Survey findingson slab multiplicity, compliance delays, and classification disputes now addressed through GST 2.0 reforms.
Wider Economic Impact
- Finance Ministerdescribed the process as “rigorous but rewarding,” guided by the PM’s call for a simplified, not simplistic GST.
- Public sector insurerspledged to extend benefits to policyholders, setting a benchmark for industries.
- Expected boost in consumption, especially of non-luxury goodsin rural and semi-urban areas due to high price sensitivity.
- Likely moderation of inflationin goods that had seen steep price increases.
- MSMEsto benefit from improved margins, better liquidity, and a clearer tax regime.
- Analysts project reforms may add over one percentage pointto GDP growth through rising demand.
- Short-term revenue lossfor Centre and States (in tens of thousands of crores) could be offset by higher compliance, increased consumption, formalisation, and fiscal buoyancy.
Ensuring Effective Implementation of GST 2.0
- Tax cuts must reach consumers, not get captured upstream.
- Administrative readinessis vital: GSTN, State revenue departments, metrology, and labelling authoritiesmust function seamlessly.
- Special focus on MSMEs, which often lack advanced accountingor legal support.
- CII to build capacityamong smaller firms for smoother adjustment.
- Strong feedback loopsneeded to resolve classification confusions and transition issues (unsold stocks, labelling, packaging, old inventory).
- Success depends on trustbetween government, industry, and consumers, with industry pledging to partner in delivery.
Conclusion
GST 2.0 represents a historic reform with far-reaching benefits for consumers, MSMEs, and the broader economy. Its ultimate success depends on effective implementation, administrative readiness, and sustained trust between the government, industry, and consumers. By partnering actively and addressing transitional challenges, India can ensure that GST 2.0 not only simplifies taxation but also boosts growth, consumption, and fiscal stability.