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

Editorial 1 : Judicial Pragmatism and Economic Sustainability in India’s Telecom Sector

Context:
The Supreme Court (SC) has allowed reconsideration of Adjusted Gross Revenue (AGR) dues of Vodafone, softening the impact of the 2019 SC verdict that imposed massive financial liabilities on telecom operators.

Introduction:

The telecom sector in India has been a key driver of economic growth, providing affordable connectivity and digital access. However, the 2019 SC judgment in Union of India vs Association of United Telecom Service Providers imposed a staggering liability of nearly ₹93,000 crore, including principal, interest, and penalties, largely due to a broad definition of AGR. The recent SC direction to reconsider AGR dues and waive interest and penalties is a welcome step to restore financial stability in the sector.

Key Issues:

• AGR Definition and Dispute:
  • AGR initially meant revenue earned by telecom operators, excluding discounts, rebates, and commissions.
  • The 2019 SC verdict expanded AGR to include “notional revenue,” making operators liable to pay licence fees on unrealised revenue.
  • This approach contradicted standard accounting principles (AS-9) and globally accepted practices, which consider revenue as actual inflows received.
• Economic Impact of the 2019 Verdict:
  • Principal liability: ₹23,000 crore; Interest & penalties: ₹70,000 crore (~75% of total demand).
  • The verdict threatened the financial viability of telecom companies, especially private operators, potentially affecting competition and consumer tariffs.
  • Delays and compounding interest under Clause 20.5 aggravated the sectoral burden.
• Judicial Oversight:
  • The 2019 judgment did not adequately consider economic consequences, even though SC has previously highlighted that penalties should follow conscious statutory violations.
  • The recent SC directive aligns with the principle of proportionality and economic rationality in judicial decisions.

Policy and Sectoral Implications:

• For the Telecom Sector:
  • Relief from interest and penalties will help revive liquidity and reduce stress on debt-laden operators.
  • Encourages further investment and sustainable growth, crucial for India’s Digital India initiatives.
• For Governance and Regulation:
  • Emphasises the importance of TDSAT’s role as a sector-specific adjudicator and the need for courts to consider sectoral realities.
  • Signals a more pragmatic approach by the judiciary in balancing strict legal interpretation with economic consequences.
• For Legal and Accounting Norms:
  • Reinforces that accounting standards (AS-9, Companies Act, 2013) are crucial in defining revenue and cannot be ignored in regulatory disputes.
  • Promotes clarity in public-private contractual obligations, avoiding ambiguities in future policy frameworks.

Conclusion:

The SC’s reconsideration of AGR dues is a corrective step that restores fairness in the telecom sector, ensuring that legal interpretations align with accounting norms and economic reality. It highlights the need for regulatory clarity, judicial pragmatism, and policy predictability, essential for sustaining investor confidence and the growth of India’s digital infrastructure.

 

Editorial 2 : Reforming the Global Climate-Finance Architecture

Context:

Focusing on the operational autonomy of the National Investigation Agency (NIA), the institutional mechanisms of the India-Africa Forum Summit (IAFS), and crucial facts about the India-Bangladesh border.

Introduction:

It highlights that the existing global climate-finance architecture is outdated, opaque, and inadequate to meet the scale of current climate challenges. Despite rising climate risks, financial flows to developing countries remain slow, uneven, and highly conditional. India, through its G20 Presidency, has pushed for reforming multilateral development banks and creating transparent, equitable climate-finance mechanisms. The piece argues that clear definitions, improved governance, and mobilisation of both public and private finance are essential for achieving global climate goals. Ultimately, India positions itself as a leader in advocating a fair, accountable, and ambitious climate-finance system.

Global Climate Governance

• UNFCCC COP – Apex Body:
  • The Conference of Parties (COP) is the supreme decision-making body of the UNFCCC, reviewing progress toward climate goals and Paris Agreement commitments.
  • Distinction is crucial: UNFCCC COP ≠ CBD COP, as the former focuses on climate, while the latter focuses on biodiversity.
  • COP30 (Belém, 2025) is part of UNFCCC events, underlining ongoing global climate negotiations.
• Paris Agreement – Core Target:
  • Adopted in 2015, it sets the global temperature rise limit to “well below 2°C”, with efforts to limit to 5°Cabove pre-industrial levels.
  • Nationally Determined Contributions (NDCs) of countries are framed in alignment with this global goal.
• India’s Global Role – CDRI:
  • The Coalition for Disaster Resilient Infrastructure (CDRI), launched by India in 2019, strengthens infrastructure resilience against climate and disaster risks.
  • Secretariat is located in New Delhi, highlighting India’s leadership in providing global public goods.
  • Reinforces India’s image as a responsible and proactive actor in global climate governance.

Regional Diplomacy and Act East Policy

• BIMSTEC – Strategic Connector:
  • BIMSTEC bridges South Asia (India, Nepal, Sri Lanka)and Southeast Asia (Myanmar, Thailand), making it central to India’s Act East Policy.
  • Membership clarity is essential: Myanmar and Thailand are BIMSTEC but not SAARC members, enhancing operational relevance for regional integration.
  • Secretariat in Dhaka, Bangladeshreflects the multilateral commitment and geographic centrality in Bay of Bengal cooperation.
• Policy Implication:
  • Understanding BIMSTEC’s structure and mandate is critical to grasp India’s regional balancing and economic-diplomatic strategyin a multipolar Asia.

Geography and Geo-political Hotspots

• Khartoum – Strategic Importance:
  • Capital of Sudan, located at the confluence of the White and Blue Nile, giving it dominance over vital water resources.
  • Historically, control over Khartoum meant administrative, economic, and military advantage, explaining its centrality in contemporary conflicts.
• Geopolitical Insight:
  • Physical geography often dictates strategic and political outcomes; understanding river systems, terrain, and trade routes is critical for analyzing global hotspots.

Conclusion:

The analysis highlights the importance of integrating institutional knowledge, India’s strategic diplomacy, and geographical insights for UPSC preparation. Understanding global governance structures like UNFCCC COP, India-led initiatives like CDRI, regional groupings like BIMSTEC, and strategic geography such as Khartoum’s Nile confluence equips aspirants to answer questions analytically rather than superficially. UPSC success depends on connecting static facts with contemporary relevance, ensuring a comprehensive grasp of India’s role in global affairs and its strategic environment.