Kalam IAS Academy was founded by a team of committed individuals who believe that the traditional way of UPSC preparation needs to be changed.
Current Edge Daily Brief 1st September 2025
Quote of the Day
“The good thing about science is that it’s true whether or not you believe in it.” – NEIL DEGRASSE TYSON
What the Others Say
“The Kremlin sent a clear message with its lethal overnight raid on the Ukrainian capital. Will US heed it?” – THE GUARDIAN
Table of Contents
THE BIG PICTURE
- TH Text & Context: The importance of India’s federal design (C. B. P. Srivastava)
- IE Opinion: ‘Exports good, imports bad’ is the flawed logic driving Trump’s tariff politics (Ashok Gulati)
- IE Opinion: Modi-Xi meet reflects a thaw. But issues that have bedeviled ties for decades remain (C. Uday Bhaskar)
- IE Opinion: The Modi-Ishiba moment: Can India and Japan lead a new Indo-Pacific order? (Gurjit Singh)
NEWS IN SHORT
- Reservation in Private Educational Institutions (Article 15(5) Implementation)
- Environment (Construction and Demolition) Waste Management Rules 2025
The Big Picture
TH Text & Context: The importance of India’s federal design
Syllabus: Pre/Mains – Polity
Why in News?
Supreme Court hearing petition demanding time-bound restoration of statehood to Jammu and Kashmir, with Centre given 8 weeks to respond in August 2025.
What is the Statehood Demand About?
Current Situation
- Timeline: J&K converted from state to Union Territory in August 2019 after Article 370 abrogation
- Supreme Court Promise: December 2023 verdict directed statehood restoration “at the earliest” but no action taken in 20+ months
- Political Push: CM Omar Abdullah leading nationwide campaign, Cabinet passed resolution in October 2024 demanding restoration
- Legislative Elections: First Assembly elections in 10 years held September-October 2024, JKNC-Congress won majority
What Changes with Statehood?
- Power Shift: Lieutenant Governor’s extensive control over police, bureaucracy, anti-corruption agencies returns to elected CM
- Legislative Authority: Full state powers instead of current limited Union Territory status
- Federal Rights: Restoration of constitutional position as equal partner in Indian federation
How States Are Created in India?
Three Constitutional Methods
- Admission: New organized political units join India (like J&K in 1947 through Instrument of Accession)
- Establishment: Territory acquired through international law (like Goa, Sikkim)
- Formation: Most common – reorganizing existing states under Article 3 (expanded India from 14 to 29 states)
Article 3 Powers Allow Parliament To
- Create new states by separating territory or merging states
- Change state boundaries, areas, or names
- Key Limitation: Cannot permanently convert state to Union Territory – violates federal structure
Process Requirements
- Presidential recommendation needed
- State legislature consultation (advisory only)
- Simple parliamentary majority sufficient
Why India’s Federal Structure Matters?
Unique Design Features
- “Union of States”: Chosen over “federation” to balance unity with diversity
- Dual Character: Strong Centre for national integrity + federal distribution for welfare
- Cultural Unity: “India” shows unitary federation, “Bharat” represents composite culture
Federal Protections
- Rajya Sabha: Permanent house ensuring continuous state representation at Centre
- Power Division: Clear separation between Union, State, and Concurrent subjects
- Independent Judiciary: Resolves Centre-state disputes
- Basic Structure: Federalism protected as core constitutional principle
Why Restoration is Constitutionally Required?
- Federal Principle: States cannot be permanently downgraded to Union Territories
- Supreme Court Direction: Clear mandate for restoration given in 2023
- Democratic Rights: Current setup limits elected government’s powers in J&K
- Basic Structure: Continued Union Territory status allegedly violates constitutional federalism
Current Legal and Political Status
Court Proceedings
- Petition Filed: By J&K residents citing violation of federal structure and citizen rights
- Centre’s Response: Claims security situation needs consideration, references Pahalgam incident
- Timeline Demand: Petitioners seek 2-month deadline for restoration
Political Developments
- Government Speculation: Reports suggest possible bill introduction in Parliament (though unconfirmed)
- Cross-Party Support: CM Abdullah wrote to all national parties including BJP seeking statehood support
- Constitutional Argument: Restoration viewed as “course correction” not concession to prevent dangerous precedent
IE Opinion: ‘Exports good, imports bad’ is the flawed logic driving Trump’s tariff politics
Syllabus: Pre/Mains – Economy
Why in news?
Trump has imposed 50% tariffs on Indian goods, escalating from 25% in August 2025, primarily targeting India’s trade deficit and Russian oil purchases.
Trump’s Tariff Impact on India
- Massive export losses expected: $40-50 billion potential damage to Indian exports to US
- H-1B visa cuts threatened: India holds 70% share of H-1B visas, facing potential restrictions described as “scam” by senators
- Strategic relationship damaged: 25 years of diplomatic progress undone in two months, trust fundamentally broken
- Court challenge ongoing: Federal appeals court ruled Trump overstepped powers, but enforcement delayed till mid-October pending Supreme Court appeal
- Sectoral impact widespread: Textiles, gems, jewelry, shrimp, carpets facing 70% export decline, threatening hundreds of thousands of jobs
India’s Strategic Response Options
- No retaliation recommended: India lacks China’s leverage with rare earth minerals monopoly
- Export diversification urgently needed: Fast-track FTAs with EU, Russia, ASEAN, African Union, and CPTPP membership
- BRICS trade activation: Expanded BRICS should resurrect WTO rules-based trading system
- Pragmatic negotiations: Reduce Russian oil imports ($6-7 billion benefit) to save larger US exports ($40-50 billion)
- Domestic reforms required: Reduce import duties to counter “India tariff king” narrative
- Alternative markets: Government supporting exporters to explore China, Latin America, Middle East
The Flawed Export-Import Logic
- Political misunderstanding widespread: Most politicians globally view exports as good, imports as bad, justifying higher import duties
- Comparative advantage ignored: Politicians fail to understand trade brings prosperity among all trading nations
- Rules-based trading essential: WTO’s role critical in banning export subsidies and ensuring fair competition
- Stagflation risk for US: Economists predict high inflation and low growth within 6-12 months from Trump’s policies
Root Cause: Exchange Rate Distortions
- China’s currency manipulation: Yuan pegged at 8.28 to dollar from mid-1990s to mid-2000s, 20% undervalued as hidden export subsidy
- WTO oversight gap: Export subsidies banned but exchange rate distortions never scrutinized
- Trade deficit origins: China’s undervalued currency during trillion-dollar accumulation period created current overblown trade deficits
- Fundamental imbalance: US trade deficit reflects spending more than earning, not bilateral trade relationships
- Currency impact quantified: 20% real effective appreciation could increase Chinese purchasing power by 3%
IE Opinion: Modi-Xi meet reflects a thaw. But issues that have bedeviled ties for decades remain
Syllabus: Pre/Mains – International Relations
Why in News?
Modi and Xi Jinping met on SCO summit sidelines in Tianjin amid unexpected US-India trade tensions triggered by Trump’s 50% tariffs on Indian goods.
Key Outcomes of Modi-Xi Meeting
- Partnership Reaffirmation: Both leaders declared countries as “development partners, not rivals” with differences not turning into disputes
- Border Progress Acknowledged: Successful disengagement from 2020 Galwan clash and maintenance of peace along border areas
- Dialogue Restoration: Resumption of contact at various levels after deep freeze since 2020 military confrontation
- Direct Flights Resumed: Modi announced restoration of direct flights between countries, though details pending
- Trade Deficit Discussion: Modi raised India’s $99.2 billion trade deficit with China for reduction
Persistent Border Dispute Challenges
- Historical Root: Territorial dispute dating back to 1947-49 independence of both nations remains core security issueal
- Previous Conflicts: 1962 border war and 2020 Galwan confrontation created lasting tensions
- Ongoing Process: Border talks remain “work in progress” with Special Representatives continuing efforts
- Elusive Resolution: Repeated attempts at consensual solution have failed over seven decades
- Limited Breakthrough: Current meeting addresses symptoms but not fundamental territorial disagreements
Geopolitical Context & Strategic Implications
- US-India Strain: Trump’s 50% tariffs on Indian goods due to Russian oil purchases damaged decades of partnership
- Strategic Balancing: India historically maintained delicate balance between Washington and Moscow since 1947
- Non-Alignment Tradition: Delhi’s policy of not being camp-follower while protecting core interests
- Contra-Polar World: Major powers grappling with complex contradictions in current global order
- Japan Ties Maintained: Modi’s prior Tokyo visit reaffirmed Indo-Pacific commitment, noted by Beijing
IE Opinion: The Modi-Ishiba moment: Can India and Japan lead a new Indo-Pacific order?
Syllabus: Pre/Mains – International Relations
Why in News?
Modi’s eighth visit to Japan and the first summit with PM Ishiba signals a new phase in India-Japan ties focused on co-creating an Indo-Pacific order amid shifting US policies.
Strategic & Regional Alignment
- Indo-Pacific stability, Quad dialogue continuation
- US disengagement, rise of India-Japan-Australia trilateral importance
- ASEAN engagement: Japan cautious, potential for India-led expansion
- African trilateral: economic development, Indo-Pacific connectivity
Economic Cooperation & Trade
- Bilateral trade at $23 billion (imports: $18B, exports: $5B)
- Target for doubled Japanese investment in India: JPY 10 trillion by 2035
- New Economic Security Initiative: supply chain resilience, critical minerals, tech, energy, pharma, telecom
- Joint Fact Sheet: cooperation in new/emerging technologies
- Direct Japanese investments—Maruti Suzuki EV plant as example
- Offset US tariffs and trade friction
Critical Minerals & Supply Chains
- Joint exploration, mining, processing, stockpiling MoU
- African countries source critical minerals, processed in India, supplied to Japanese industry
- Support for Japanese semiconductors, green tech, defence electronics
- Reducing China dependency
Defence & Security Collaboration
- Joint R&D: defence electronics, naval hardware
- Unicorn antennas ready for deployment
- Japanese naval armament exports—possible warship collaboration
- Increased trust and operational partnership
Mobility & Infrastructure
- Bullet train project revived—latest E10 Shinkansen coaches supply
- Interim use of E5/Indian-made coaches
- Prospects for expanded high-speed rail based on Japanese models
- Mobility partnership for technology sharing
Investment & Business Engagement
- Growing Japanese business community presence in India
- Enthusiasm among Japanese business leaders for India-focused growth
- Incentives for Japanese visitors, professionals
- Japanese support for TICAD and Africa outreach
Core Takeaway
India-Japan ties move beyond traditional economic cooperation to a multidimensional, trilateral and strategic partnership, aiming to lead a more resilient Indo-Pacific order amid global uncertainties and US policy unpredictability
News in Short
Reservation in Private Educational Institutions (Article 15(5) Implementation)
Why in News?
Parliamentary Standing Committee unanimously recommended mandatory central legislation for SC/ST/OBC reservations in private higher education institutions on August 20, 2025.
Current Representation Crisis
- Abysmally low representation in private institutions: BITS Pilani shows 10% OBC, 0.5% SC, 0.8% ST among 5,137 students
- Three private Institutions of Eminence averaged 0.89% SC, 0.53% ST, 11.16% OBC students
- High fees creating insurmountable barriers for marginalized communities
- 3% colleges are private unaided with 517 private universities existing
- Public sector incapable of accommodating growing student population under NEP’s 50% gross enrollment target
Committee Recommendations
- Reservation percentages: 15% SC, 7.5% ST, 27% OBC in private higher educational institutions
- Central legislation: Parliament must pass law mandating Article 15(5) implementation across all private institutions
- Reimbursement model: Government should compensate private institutions similar to RTE Act’s 25% reservation mechanism
- Infrastructure support: Adequate funding, public-private partnerships, low-interest loans for seat expansion
- Quality maintenance: Increase total seats rather than reducing general category admissions
Environment (Construction and Demolition) Waste Management Rules 2025
Why in News?
New comprehensive rules notified on April 2, 2025, effective from April 1, 2026, replacing 2016 regulations with stricter Extended Producer Responsibility framework.
Scope and Application
- Coverage: All construction, demolition, remodeling, renovation, repair activities
- Exemptions: Atomic Energy Act projects, defense/strategic projects, natural disaster waste, war-related waste
- Producer definition: Projects with 20,000+ square meter built-up area requiring portal registration
- Supersession: Replaces Construction and Demolition Waste Management Rules 2016
Extended Producer Responsibility (EPR)
- Lifecycle responsibility: Producers accountable for entire waste management cycle
- EPR targets: Mandatory compliance through regulated waste management plans
- Certificate system: Purchase EPR certificates from registered recyclers for target achievement
- Debris inclusion: Cement, bricks, tiles count toward targets; iron, wood, plastic, glass excluded
Registration and Monitoring
- Mandatory registration: Producers, intermediate storage operators, recyclers, collection points
- Online portal: CPCB-developed system for registration, plan submission, compliance tracking
- Penalties: Operating without registration prohibited; false information leads to revocation and compensation charges
- Monitoring authority: CPCB and state pollution control boards oversee implementation
Recycling Framework
- Progressive targets: 5% recycled materials by 2026-27, increasing to 25% by 2030-31
- Waste management plans: Detailed documentation of expected waste generation and disposal measures
- Processing hierarchy: Deposit at processing facility or Intermediate Waste Storage Facility if unavailable
- In-situ processing: Remaining waste must reach registered processing facilities
