26 December 2025 Indian Express Editorial
What to Read in Indian Express Editorial( Topic and Syllabus wise)
Editorial 1 : Inter-State Economic Convergence
Context
Recent data indicate that after years of divergence, India’s lower-income states have begun growing faster in the post-pandemic period, signalling early signs of economic convergence.
Introduction
India’s economic strength is fundamentally linked to the performance of its states, as national GDP is the aggregate of State Gross Domestic Products. Historically, poorer states have struggled to catch up with richer ones, raising concerns about regional inequality and uneven development. However, post-pandemic trends suggest a shift, with several lower-income states registering higher growth rates. This emerging convergence has important implications for sustained national growth, fiscal federalism, and long-term development strategy.
Core Argument
- Pre-pandemic period (FY13–FY19):Lower-income states grew more slowly than richer states, leading to divergence.
- Post-pandemic period (FY19–FY25):Evidence of convergence has emerged, with states like Uttar Pradesh, Bihar, Rajasthan, and Assam growing faster than the national average.
- This turnaround is notable because lower-income states were expected to be more vulnerable during the pandemic.
Key Factor Driving Convergence: Public Capital Expenditure
- Among various factors (human capital, infrastructure, technology, governance), state-level public capital expenditure (capex)stands out as the most significant driver.
- Higher capex:
- Strengthens physical infrastructure (roads, logistics, urban assets).
- Crowds in private investment (as noted by RBI and Economic Survey findings).
- Signals reform intent and governance credibility.
- This aligns with the Economic Survey (multiple editions)which highlights the high multiplier effect of capital expenditure compared to revenue expenditure.
Fiscal Support and Role of the Centre
- After the pandemic:
- Higher central transfersand
- Capex loans to states schemehelped states sustain infrastructure spending even after GST compensation ended.
- The scheme is:
- Ring-fencedfor capital expenditure,
- Non-divertible to welfare or revenue spending,
- Complementary to central capex (e.g., Centre builds highways; states develop urban and feeder infrastructure).
- Outlays have increased sharply from ₹12,000 crore in FY21 to ₹1.5 lakh crore in FY26, reflecting its growing importance.
Emerging Risks
- Revenue Stress
- Slower nominal GDP growth and tax cuts are weakening Centre’s tax revenues.
- Since 41% of the divisible tax poolgoes to states (as per Finance Commission formula), state revenues are also under pressure.
- States have so far protected capex by widening fiscal deficits, but this is fiscally unsustainable in the long run.
- Rising Revenue Expenditure
- Expansion of cash transfer and welfare schemes, especially before elections, has raised current expenditure.
- Persistent revenue spending can crowd out capital expenditure.
Way Forward
- For the Centre
- Expand and provide multi-year clarity on the capex loans to states programme.
- Ensure predictability in transfers to enable long-term infrastructure planning.
- For the States
- Leverage labour law reforms, especially provisions under the Industrial Relations Codeallowing higher thresholds for layoffs without prior permission.
- Implement state-level deregulation reforms suggested by the Centre.
- Position themselves as hubs for labour-intensive, mid-tech manufacturing(textiles, footwear, furniture, toys).
- Global Context
- With global supply chains diversifying away from concentration, India’s lower-income states have a wage advantage.
- Experiences of countries like Vietnamshow that combining low wages with infrastructure and regulatory ease can rapidly boost manufacturing-led growth.
- This aligns with World Bank and UNIDO assessments on industrialisation and export-led development.
Conclusion
India’s emerging states are showing early but significant signs of economic convergence, driven largely by sustained public capital expenditure. If supported by stable fiscal transfers, continued infrastructure investment, regulatory reforms, and integration into global manufacturing chains, these states can become powerful engines of national growth and strengthen India’s long-term economic position.
Editorial 2 : ISRO set for big leaps
Context
ISRO has achieved multiple technological milestones this year, demonstrating its growing capabilities in heavy-lift launches, international collaboration, and human spaceflight.
Introduction
The Indian Space Research Organisation (ISRO) has successfully closed the year with landmark missions, including the LVM3-M6 heavy-lift launch and the collaborative NISAR mission with NASA. These missions highlight India’s steady evolution into a major space power, showcasing incremental yet strategic technological advancements. ISRO’s achievements span from commercial satellite launches to experimental docking in space, reflecting a long-term vision of human spaceflight and space exploration. The upcoming Gaganyaan missions further underscore India’s ambition to establish an independent human spaceflight program and strengthen its global space presence.
Key Achievements Highlighted
- Heavy-lift Launch Capability
- The successful LVM3-M6 mission carrying a 6,100 kg commercial satellite marks ISRO’s highest payload to Low Earth Orbit (LEO).
- Consecutive missions (LVM3-M5 and M6) demonstrate ISRO’s growing capability to launch heavy satellites to both LEO and Geosynchronous Orbit (GEO)—a domain earlier dominated by a few global space agencies.
- Commercial Space Leadership
- ISRO has launched 434 foreign satellites from 34 countries, underlining India’s role as a reliable and cost-effective launch destination.
- This aligns with the IN-SPACe and NSIL reforms, aimed at increasing private sector participation and commercialisation of space activities.
- Technological Maturity through Incremental Innovation
- Each mission demonstrates a new capability—docking, heavier payloads, advanced sensors—reflecting a systems engineering approachrather than isolated successes.
- This gradual evolution is consistent with ISRO’s philosophy of risk-managed innovation.
Strategic and Scientific Significance
- SpaDeX Mission (Satellite Docking Experiment)
- Docking and undocking are critical for:
- Future Indian Space Station (Bharatiya Antariksha Station)
- On-orbit servicing and interplanetary missions
- This places India among a small group of nations with autonomous docking capability.
- Docking and undocking are critical for:
- NISAR Mission (India–US Collaboration)
- A joint ISRO–NASA mission using dual-frequency Synthetic Aperture Radar.
- Applications include:
- Disaster management
- Climate change monitoring
- Agriculture and water resource management
- Reflects India’s growing stature as a trusted partner in high-end space science.
- Gaganyaan Programme
- Upcoming uncrewed missions are crucial for validating:
- Crew module safety
- Life-support systems
- Human-rated launch vehicles
- Supports India’s long-term goal of independent human spaceflight capability.
- Upcoming uncrewed missions are crucial for validating:
Broader Policy and Governance Dimensions
- Alignment with National Space Policy 2023: Focus on capacity-building, private sector participation, and global competitiveness.
- Strategic Autonomy: Enhanced launch and satellite capabilities reduce dependence on foreign systems for communication, navigation and security.
- Economic Potential: According to global estimates, the space economy could exceed $1 trillion by 2040, and India aims to increase its share through downstream applications and startups.
Challenges Ahead
- Mission Safety and Frequency Balance
- Scaling up the number of launches, including human-rated missions like Gaganyaan, increases operational risk. Ensuring high reliability while maintaining an ambitious launch scheduleremains a key challenge.
- Integration of Private Sector
- While IN-SPACe and NSIL frameworks encourage private participation, regulatory oversight, intellectual property protection, and strategic security concernsmust be carefully managed.
- Space Sustainability and Debris Management
- Increasing satellite launches contribute to space congestion and orbital debris, necessitating robust debris mitigation policies and compliance with global norms under the Outer Space Treaty and UN COPUOS guidelines.
- Resource and Infrastructure Constraints
- Heavy-lift and deep-space missions require advanced propulsion, cryogenic technology, and ground support infrastructure, which demand continuous investment and human resource development.
- Global Competition and Strategic Pressure
- Competing with nations like the US, China, and Europe in commercial, defense, and scientific space domains poses strategic and technological pressures. India must maintain a balance between cost-effectiveness and high-end technological advancement.
Way Forward
- Strengthen Human Spaceflight Readiness
- Prioritize robust testing of crewed modules and life-support systemsfor Gaganyaan, followed by progressive expansion into longer-duration human missions.
- Foster Private Sector Innovation
- Encourage startups and MSMEsin satellite manufacturing, launch vehicle development, and space applications, while maintaining strong policy and regulatory oversight.
- Invest in Reusable and Heavy-lift Technologies
- Develop reusable rockets, cryogenic engines, and high-thrust propulsion systemsto reduce costs and enhance mission frequency.
- Enhance Space Diplomacy and International Collaboration
- Leverage partnerships like NISAR to strengthen India’s role in global space science, Earth observation, and climate monitoring, while adhering to emerging norms on space governance.
- Implement Space Sustainability Measures
- Formulate national guidelines on orbital debris mitigation, end-of-life satellite disposal, and active debris removal, aligning with UN and international best practices.
- Capacity Building and Human Resource Development
- Invest in advanced research institutes, skill development, and collaborative academic programsto ensure a steady pipeline of scientists, engineers, and mission specialists.
Conclusion
ISRO’s recent successes reflect not isolated achievements but a systematic and strategic rise in technological depth and operational confidence. With heavy-lift capability, human spaceflight ambitions and global collaborations converging, India is positioning itself as a major space power in the coming decade.
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