01 November 2025 Indian Express Editorial


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

 

Editorial 1: Decoding India’s Projected GDP

Context:

Recently PM stated that India could become a $30 trillion economy within the next 20 to 25 years. While this vision represents the country’s growing economic ambition, a deeper analysis reveals that achieving such a target will demand unprecedented, sustained growth, robust reforms, and resilience against both domestic and global challenges.

Understanding GDP and Its Significance:

  • Gross Domestic Product (GDP) measures the total monetary value of all goods and services produced within a country over a specific period.
  • It serves as a key indicator of economic performance, influencing employment, investment, and living standards.
  • As of 2025, India’s economy stands at around $3.7 trillion, making it the fifth-largestin the world.
  • However, India’s per capita income remains relatively low; highlighting that high aggregate GDP does not necessarily translate into equitable prosperity.
  • Historically, India has maintained an average real GDP growth rate of 6–7%in the past decade.
  • While this has been commendable, sustaining higher growth for two continuous decades will be essential for reaching the $30 trillion mark.
  • To put it in perspective, India would need to grow at a nominal GDP rate of 10–11% annually (roughly 7–8% real growth plus 3% inflation) to reach the $30 trillion target by 2050.
  • Such growth would demand consistent policy execution and global economic stability.

Divergence in Growth Projections:

  • Different economic models present varied trajectories for India’s future GDP:
  • At 6% growth, India could become a $10 trillion economy by 2047.
  • At 8% growth, it could achieve $20 trillion.
  • Sustained 9–10% annual growth could make the $30 trillion target achievable within two decades.
  • However, maintaining such high rates over 20–25 years has been extremely rare.
  • Even China, during its peak industrial expansion, averaged about 9–10% for three decades driven by massive state investment and global integration.
  • Replicating such sustained acceleration would require India to overhaul productivity, employment structures, and governance mechanisms.

Key Drivers of India’s Future GDP Growth:

  • Demographic Dividend: With over 65% of the population below 35 years, India’s youthful workforce can be a massive economic asset. However, to convert this into productivity, there must be parallel investments in education, skill development, and job creationespecially in manufacturing and services.
  • Infrastructure and Industrialization: Flagship initiatives such as the Gati Shakti MissionNational Infrastructure Pipeline (NIP), and PM Gati Shakti Master Planaim to modernize logistics and connectivity. Infrastructure expansion boosts employment and multiplies economic output through higher productivity and investment efficiency.
  • Manufacturing and Export Competitiveness: Schemes like Make in Indiaand Production Linked Incentives (PLI) are critical to boosting domestic manufacturing and export potential. India’s integration into global value chains, diversification of export markets, and technological adoption will be decisive in achieving sustained growth.
  • Digital and Financial Inclusion: India’s digital transformation through UPI, JAM Trinity (Jan Dhan, Aadhaar, Mobile), and fintech innovationhas enhanced transparency, efficiency, and financial access, driving both consumption and entrepreneurship.
  • Investment and Policy Reforms: Sustaining growth requires a stable investment climate. This depends on reforms in land, labor, taxation, and ease of doing business, alongside predictable policies and institutional efficiency.

Challenges to Sustained Growth:

  • Despite its potential, India faces formidable challenges:
  • Unequal Development: Regional, gender, and income disparities hinder inclusive growth and productivity.
  • Climate and Resource Constraints: The transition toward renewable energy and sustainable growth will require heavy investment and balanced policy design.
  • Global Volatility: Geopolitical tensions, protectionist trade policies, and global inflationary pressures can disrupt export-led growth.
  • Fiscal and Institutional Limitations: High fiscal deficits, limited revenue mobilization, and bureaucratic inefficiencies may restrict long-term capital formation.
  • Employment Challenge: Jobless growth in the formal sector and dependence on agriculture continue to limit income diversification.

Steps needed to make reforms:

  • For India to achieve its $30 trillion goal, it must focus on inclusive, technology-driven, and investment-led growth.
  • Increase Investment Rate: India must sustain an investment rate of 34–36% of GDP to support 8%+ real growth.
  • Boost Productivity: Encourage innovation, digitalization, and adoption of advanced manufacturing technologies.
  • Enhance Human Capital: Focus on education, healthcare, and skill development to make the workforce globally competitive.
  • Ensure Fiscal Prudence: Improve tax compliance and rationalize subsidies to enable capital expenditure.
  • Green Growth Transition: Align growth with climate commitments, leveraging renewable energy and sustainable infrastructure.

Way Forward:

India’s aspiration to become a $30 trillion economy reflects confidence in its demographic strength, entrepreneurial spirit, and policy ambition. However, the path ahead requires sustained reforms, global integration, and inclusive growth.

 

Editorial 2: Legal Battle over MGNREGS in Bengal, what happens after SC’s Order

Context:

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), one of India’s most significant social welfare programmes, has recently become the center of a major legal and political battle in West Bengal. The Supreme Court’s intervention in the case has brought the scheme, its implementation challenges, and the Centre-State dynamics under renewed scrutiny.

Background of MGNREGS:

  • MGNREGS was launched in 2005 under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), with the objective of providing 100 days of guaranteed wage employmentper year to every rural household whose adult members volunteer to do unskilled manual work.
  • It is a demand-driven programmeand a key instrument for poverty alleviationrural asset creationand inclusive growth.
  • The Act emphasizes Right to Work as a legal guarantee, making it one of the world’s largest rights-based welfare schemes.
  • It is jointly funded by the Centre and states, with the Centre bearing 100% of the unskilled labour cost and 75% of the material cost.

The Dispute in West Bengal:

  • The conflict between the West Bengal government and the Union government stems from the stoppage of MGNREGS funds to the state.
  • The Union Ministry of Rural Development (MoRD) suspended the release of funds to Bengal in December 2021, citing large-scale irregularities and misuse of funds under the scheme.
  • According to the Centre, multiple social auditsand field verifications had revealed fake job cards, ghost beneficiaries, and diversion of funds.
  • The Ministry invoked Section 27 of the MGNREGA Act, which allows the Centre to stop funds to states that fail to comply with operational guidelines or correct irregularities.
  • The West Bengal government, however, challenged this move, alleging political vendetta and violation of federal principles.
  • It claimed that the Centre’s action had deprived lakhs of rural workers of their rightful wages, amounting to an estimated ₹7,500 crore in pending payments.

Supreme Court’s Intervention:

  • In 2025, the Supreme Court of India took cognizance of the matter and sought detailed affidavits from both the Centre and the State.
  • The Court noted that the issue involved not only financial accountabilitybut also the livelihoods of millions of rural workers.
  • The bench emphasized that non-payment of wages under a statutory scheme like MGNREGS violates Article 21 (Right to Life) of the Constitution, as it directly impacts the means of livelihood.
  • The Court has now directed the Centre to respond to the allegations and consider a structured resolution mechanism to ensure that genuine beneficiaries are not denied their entitlements due to administrative or political disputes.

Key Legal and Policy Issues Involved:

  • Federalism and Financial Relations: The case highlights the tensions between the Union and state governments in implementing centrally sponsored schemes. While the Centre controls the funding, the actual execution lies with the states, often leading to friction when political differences arise.
  • Accountability and Transparency: Both sides have raised valid concerns. The Centre’s insistence on transparency and audit complianceis vital for preventing corruptio At the same time, prolonged fund suspension without alternate mechanisms violates the rights of beneficiaries.
  • Right to Livelihood: The stoppage of payments raises serious constitutional questions under Articles 21 and 23 (prohibition of forced labour), as unpaid MGNREGS workers are effectively denied their wages for work already completed.
  • Governance and Social Justice: MGNREGS is not just a welfare measure it is an employment guarantee backed by law. Its disruption disproportionately affects marginalized communities, especially women and landless labourers, undermining rural social security.

Steps needed to ensure its effective functioning:

  • Establishing an independent grievance redressal and audit mechanismunder MGNREGA.
  • Implementing a time-bound payment systemwith automatic compensation for delays.
  • Depoliticizing fund flows and ensuring objective monitoring through the Management Information System (MIS).
  • Strengthening social auditsand local-level accountability mechanisms.
  • Promoting Centre-State cooperative federalismin welfare delivery rather than adversarial confrontation.

Way Forward:

The ongoing legal tussle over MGNREGS in West Bengal underscores the complex interplay between politics, governance, and welfare delivery in India’s federal setup. While transparency and accountability are essential, withholding funds for prolonged periods undermines the spirit of the scheme and the constitutional right to livelihood. The Supreme Court’s decision in this matter will likely set a precedent on balancing financial propriety with social justice, a key theme in India’s democratic governance.

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