DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 1st July – 2025

Category: ECONOMICS

Context: Poverty estimates in India, sparked by household consumption data (2023–24) from the National Statistics Office. Reports from SBI and the World Bank suggest a significant drop in poverty.

Decoding the context:

1. Questioning Traditional Poverty Metrics:
   • Critique poverty measurement based solely on calorie intake and physiological needs, calling it outdated and inadequate in capturing real-life deprivation.
2. Introduction of the ‘Thali Index’:
   • Propose the Thali Index as a more realistic, relatable, and region-specific indicator, measuring the cost of a basic home-cooked meal.
   • It reflects actual food consumption patterns and regional variations in prices, offering a clearer picture of living costs.
3. Relevance to Policy and Subsidies:
   • The Thali Index serves as a practical tool for evaluating poverty and guiding food subsidy policies.
   • It provides a grounded economic perspective by directly connecting food costs with livelihood realities.
4. Critique of Premature Subsidy Removal:
   • There should be caution against removing food subsidies based on optimistic or debatable poverty estimates.
   • Instead, there should be rationalising subsidies, as many citizens still rely on them for basic sustenance.
5. Policy Recommendation:
   • Poverty assessment and welfare decisions should be anchored in real costs of living, like those captured by the Thali Index, rather than relying on abstract statistical estimates.

Learning Corner:

Poverty Measurement in India

Poverty measurement in India has traditionally relied on household consumption expenditure surveys to estimate the proportion of people living below a defined poverty line. The focus has largely been on ensuring a minimum calorie intake necessary for survival and work.

Traditional Approach (Calorie-based):

• Based on the Tendulkar Committee (2009) and Rangarajan Committee (2014).
• Defines poverty using a minimum daily caloric intake (e.g., 2400 kcal in rural, 2100 kcal in urban areas).
• The monetary poverty line is derived from the expenditure required to meet this intake.
• This is a physiological approach — focused on energy needs through food.

Consumption Expenditure Surveys:

• Conducted by the National Sample Survey Office (NSSO) and NSO.
• Data is used to estimate poverty headcount ratios, consumption patterns, and economic inequality.

Issues with the Current Method:

• Does not reflect nutritional quality, non-food needs, or regional variations.
• Ignores changing lifestyles, health costs, education, housing, etc.
• Urban and rural cost differences often not adequately captured.

Emerging Approaches:

• Use of “Thali Index”: Cost of a simple, home-cooked meal (thali) to reflect real food expenditure and living standards.
• Multidimensional Poverty Index (MPI): Used by NITI Aayog in line with UNDP — includes indicators like education, health, and living standards.

Policy Implications:

• Recent claims of poverty decline (SBI & World Bank reports) raise questions on how poverty is defined.
• Critics argue for more realistic, consumption-linked, and multidimensional poverty assessment.
• Emphasis is shifting from calorie-based to livelihood and dignity-based measurements.

Poverty estimation committees

Tendulkar Committee (2009):

• Chairperson: Suresh D. Tendulkar
• Objective: To revise the methodology for poverty estimation in India.

Key Features:

• Shifted from calorie-based poverty line to one based on actual private consumption expenditure, including health and education.
• Introduced a uniform poverty line basket for both rural and urban areas (earlier, calorie norms were different for each).
• Used 2004–05 NSS data and updated the poverty line accordingly.
• Recommended using Mixed Reference Period (MRP) for consumption data.
• Estimated poverty in 2004–05 as:
  • Rural: 41.8%
  • Urban: 25.7%
  • Overall: 37.2%

Significance:

• Marked a major methodological shift and was adopted by the Planning Commission until 2014.
• Faced criticism for setting a very low poverty line (₹33/day in urban areas in 2011–12).

Rangarajan Committee (2014):

• Chairperson: C. Rangarajan
• Objective: To revisit the poverty estimation methodology due to criticisms of the Tendulkar Committee.

Key Features:

• Restored calorie norms (2400 kcal rural, 2100 kcal urban) and added norms for protein and fat intake.
• Considered basic non-food expenses more comprehensively (education, housing, clothing, etc.).
• Based on 2011–12 NSS data, it set a higher poverty line:
  • Rural: ₹32/day
  • Urban: ₹47/day
• Estimated poverty in 2011–12 as:
  • Rural: 30.9%
  • Urban: 26.4%
  • Overall: 29.5%

Source: THE INDIAN EXPRESS

Category: POLITY

Context: Inclusion of the terms “secular” and “socialist” in the 42nd Constitutional Amendment (1976) during the Emergency.

Key Points:

• Background:
  • These terms were added through the 42nd Amendment by Indira Gandhi’s government and retained after the Janata government reversed most changes via the 44th Amendment (1978).

Preamble & Secularism:

• The Preamble is a vision statement, but the Supreme Court in Berubari Union (1960) held it is not a source of power.
• Secularism, although added formally later, was always inherent in the Constitution — evident through Articles 14, 15, 16, and Directive Principles.

Judicial Stand:

• Even before the 42nd Amendment, in Kesavananda Bharati (1973), the SC ruled that secularism is part of the Constitution’s basic structure.
• In Minerva Mills (1980), SC held “socialism” to be constitutionally aligned with Part IV (DPSPs).
• The SC reaffirmed secularism as a basic feature in later rulings, including SR Bommai (1994) and 2024’s Khanna ruling, stating constitutional amendments can’t dilute core principles like secularism.

Learning Corner:

Salient Features of the Indian Constitution

The Indian Constitution, adopted on 26th November 1949 and enforced from 26th January 1950, is the supreme law of the land. It is known for combining the best features of major constitutions of the world while reflecting India’s unique socio-political context.

Salient Features:

1. Lengthiest Written Constitution
   • Contains 470+ Articles, 12 Schedules, and numerous amendments.
   • Includes detailed provisions for Union, States, Fundamental Rights, Directive Principles, and more.
2. Drawn from Multiple Sources
   • Inspired by British, US, Irish, Canadian, Australian and other constitutions.
   • Blends parliamentary democracy with federalism and judicial independence.
3. Federal System with Unitary Bias
   • Division of powers between Centre and States (3 Lists: Union, State, Concurrent).
   • During emergencies, the Centre becomes more powerful.
4. Parliamentary Form of Government
   • Based on the Westminster model.
   • Real power lies with the Council of Ministers headed by the Prime Minister.
5. Secular State
   • No official state religion.
   • Equal treatment of all religions (Articles 25–28).
6. Fundamental Rights and Duties
   • Guarantees civil liberties to individuals (Articles 12–35).
   • Fundamental Duties (Article 51A) added by the 42nd Amendment.
7. Directive Principles of State Policy (DPSPs)
   • Guidelines for the government to promote social and economic welfare (Articles 36–51).
   • Inspired by the Irish Constitution.
8. Independent and Integrated Judiciary
   • Supreme Court at the top, followed by High Courts and subordinate courts.
   • Guardian of the Constitution and protector of Fundamental Rights.
9. Single Citizenship
   • All Indians are citizens of India, regardless of state.
10. Universal Adult Franchise

• Every citizen above 18 years can vote (Article 326).

1. Rigidity and Flexibility

• Some parts can be amended by a simple majority; others require a special majority or ratification by states (Article 368).

1. Special Provisions for Minorities, SCs, STs

• Reservation, cultural and educational rights to protect vulnerable groups.

Source: THE INDIAN EXPRESS

Category: ENVIRONMENT

Context : In 2024, India made significant additions to its biodiversity records. The announcements were made during the 110th Foundation Day of the Zoological Survey of India, which also marked the release of an updated checklist (Version 2.0) of Indian fauna

Faunal Discoveries (Animals):

• A total of 683 faunal species were added.
  • 459 species are new to science.
  • 224 species are new records for India.
• Insects (beetles, moths, flies, bees) dominated among invertebrates, while fish led among vertebrates.
• Kerala topped the list with 101 species, followed by Karnataka (82), Arunachal Pradesh (72), Tamil Nadu (63), and West Bengal (56).
• India’s updated faunal checklist now includes 1,05,244 species and subspecies.

Floral Discoveries (Plants):

• 433 plant taxa were added to the flora.
• These included seed plants, fungi, lichens, algae, bryophytes, microbes, and pteridophytes, with seed plants being the most prominent.

Significance:

• These discoveries reaffirm India’s status as a megadiverse country, housing about 7–8% of the world’s documented species.
• The new checklists are essential tools for research, conservation, and policymaking.

Learning Corner:

Megadiverse Countries

Megadiverse countries are a group of nations that collectively harbor the majority of Earth’s species and are therefore considered extremely rich in biodiversity. The concept was introduced by Conservation International to highlight global centers of biological wealth.

Key Features:

• These countries possess a high number of endemic species (found nowhere else in the world).
• They account for more than 70% of Earth’s biodiversity, despite covering a smaller portion of the planet’s land area.
• Recognized based on species richness, endemicity, and ecosystem diversity.

List of Megadiverse Countries (17 Total):

Some of the officially recognized megadiverse countries include:

• India
• Brazil
• Indonesia
• China
• Mexico
• Colombia
• Peru
• Australia
• Democratic Republic of Congo
• Ecuador
• South Africa
• Philippines
• Venezuela
• United States
• Papua New Guinea
• Malaysia
• Madagascar

India as a Megadiverse Country:

• Home to 7–8% of the world’s recorded species.
• Includes four global biodiversity hotspots: Western Ghats, Himalayas, Indo-Burma, and Sundaland (Nicobar Islands).
• Rich in both faunal and floral diversity, with high levels of endemic species.

Importance:

• Megadiverse countries are crucial for global biodiversity conservation.
• They face threats from habitat loss, climate change, and pollution, making conservation strategies essential.
• International cooperation and national biodiversity strategies (like India’s Biological Diversity Act, 2002) are key to preserving this wealth.

Zoological Survey of India (ZSI)

The Zoological Survey of India (ZSI) is the premier Indian organization for zoological research, exploration, and documentation of animal diversity.

Establishment:

• Founded: 1916, during British rule
• Headquarters: Kolkata, West Bengal
• Ministry: Functions under the Ministry of Environment, Forest and Climate Change (MoEF&CC)

Objectives:

• Survey, explore, and monitor the fauna of India.
• Conduct taxonomic studies of animals from different regions.
• Maintain national zoological collections of preserved species.
• Publish faunal atlases, monographs, and the annual “Animal Discoveries” report.
• Assist in biodiversity conservation, environmental impact assessments, and policy formulation.

Key Functions:

• Maintaining a comprehensive inventory of India’s faunal resources.
• Supporting scientific research and providing data for wildlife conservation and ecological planning.
• Collaborating with international bodies and Indian academic institutions.
• Recently launched Version 2.0 of the Checklist of Indian Fauna (2024) with over 1,05,000 species/subspecies.

Source :  THE HINDU

Category: HISTORY

Context: On June 30, 2024, Prime Minister Narendra Modi paid tribute to the tribal heroes of the Santhal Rebellion (1855–56) on the occasion of Hul Diwas, commemorating their courage in resisting British colonial rule.

He honored legendary leaders Sidhu-Kanhu, Chand-Bhairav, and Phoolo-Jhano, describing them as symbols of self-respect and bravery. In his ‘Mann Ki Baat’ address, PM Modi highlighted the Santhal Rebellion as one of the earliest organized uprisings against British rule—predating the Revolt of 1857.

Led by Sidhu and Kanhu Murmu in the Santhal Pargana region (now in Jharkhand), the rebellion united the tribal community in a determined fight against colonial oppression.

Hul Diwas serves as a reminder of the tribal community’s valor, unity, and enduring legacy in India’s freedom struggle.

Learning Corner:

Tribal Revolts Against British Rule in India

During British colonial rule, numerous tribal revolts erupted across India in response to land alienation, economic exploitation, forest laws, and disruption of traditional tribal life. These revolts were often localized, violent, and community-led, and they reflected the tribals’ resistance to both British authority and exploitative intermediaries like landlords and moneylenders.

Key Tribal Revolts:

1. Santhal Rebellion (1855–56)
   • Leaders: Sidhu and Kanhu Murmu
   • Region: Santhal Parganas (now in Jharkhand)
   • Cause: Exploitation by zamindars, moneylenders, and British officials.
   • Significance: One of the earliest organized tribal uprisings, predating the 1857 revolt.
2. Kol Rebellion (1831–32)
   • Region: Chotanagpur (Jharkhand)
   • Cause: British land revenue policy, encroachment by outsiders (dikus), and forced labor.
3. Bhil Rebellion (1817–19, and others)
   • Region: Western India (Rajasthan, Maharashtra)
   • Cause: Loss of autonomy, high taxation, and harsh forest laws.
4. Munda Rebellion / Ulgulan (1899–1900)
   • Leader: Birsa Munda
   • Region: Chotanagpur
   • Cause: Land alienation, Christian missionary activity, and British disruption of tribal governance.
   • Outcome: Sparked tribal identity and later inspired tribal rights movements.
5. Khond Uprising (1846–55)
   • Region: Odisha
   • Cause: Resistance to British interference in tribal customs, particularly human sacrifice.
6. Rampa Rebellion (1879–80, 1922–24)
   • Leader (1922): Alluri Sitarama Raju
   • Region: Godavari Agency (Andhra Pradesh)
   • Cause: Forest laws restricting tribal access to resources.

Common Features of Tribal Revolts:

• Led by charismatic leaders or community elders.
• Rooted in loss of land, forest rights, and cultural autonomy.
• Targeted both British officials and local intermediaries.
• Often brutally suppressed but laid the foundation for future tribal rights movements.

Significance:

Tribal revolts were early expressions of anti-colonial resistance. Though mostly localized, they highlighted the exploitation of indigenous communities and helped shape future policies and the tribal consciousness in India’s freedom struggle.

Source: PIB

Category: INTERNATIONAL

Context: Quad nations—India, Japan, the United States, and Australia—launched their first-ever ‘Quad-at-Sea Ship Observer Mission’ to enhance maritime cooperation in the Indo-Pacific.

The initiative was formalized under the Wilmington Declaration during the Quad Leaders’ Summit in Delaware.

Key Highlights:

• Participants: Two officers (including women) from each country’s coast guard have joined the USCGC Stratton, currently en route to Guam.
• Objective: To improve interoperability, maritime security, and operational coordination, supporting a free, open, and rules-based Indo-Pacific.
• Nature: A cross-embarkation mission where officers from all four nations observe and operate jointly at sea—a first for Quad maritime forces.
• Strategic Alignment:
  • Supports India’s SAGAR (Security and Growth for All in the Region) initiative.
  • Complements the Indo-Pacific Oceans Initiative (IPOI).
• Significance:
  • Marks a milestone in multilateral coast guard collaboration.
  • Builds trust and readiness through real-time maritime cooperation.
  • Expected to be an annual initiative, expanding strategic depth in Indo-Pacific partnerships.

Learning Corner:

QUAD (Quadrilateral Security Dialogue)

The Quadrilateral Security Dialogue (QUAD) is a strategic forum comprising India, the United States, Japan, and Australia, aimed at promoting a free, open, inclusive, and rules-based Indo-Pacific region.

Origins and Evolution:

• Initiated in 2007 by Japanese PM Shinzo Abe, with support from India, the US, and Australia.
• Revived in 2017, amidst growing concerns over China’s assertiveness in the Indo-Pacific.
• Elevated to the leader-level summit format in 2021, highlighting its growing importance.

Objectives:

• Ensure maritime security and freedom of navigation.
• Promote rules-based international order.
• Address regional challenges like terrorism, cyber security, climate change, critical technologies, and supply chain resilience.
• Support capacity building and infrastructure development in Indo-Pacific nations.

Key Initiatives:

• Quad Vaccine Partnership
• Critical and Emerging Technologies Working Group
• Quad Climate Working Group
• Maritime Domain Awareness (IPMDA)
• Quad-at-Sea Observer Mission (2024) – boosting coast guard cooperation.

Significance:

• Seen as a balancing force in the Indo-Pacific amidst China’s rising influence.
• Promotes multilateral cooperation among like-minded democracies.
• Enhances strategic and security partnerships in the region without forming a formal military alliance.

Source: PIB

Introduction (Context)

42nd Amendment during the emergency had introduced the word ‘secular’ in the Preamble. But secularism is inherent in the Constitution.

What is Secularism?

• Secularism refers to the separation of religion from the State. Secularism is crucial for any democratic country to function effectively because it prevents misuse of State power by religious majorities.
• The Indian Constitution mandates a secular State, meaning:

• • No religious community should dominate another.
  • No group within a religion should dominate its other members.
  • The State does not enforce any particular religion nor curtail the religious freedom of individuals.

How and why was it inserted in Preamble?

• The Preamble is a vision statement to the Constitution, or as the Supreme Court described in its 1961 ruling in In Re: The Berubari Union, “a key to open the mind of the makers” of the Constitution.
• In 1950, when the Constitution was adopted, the Preamble read: “We, the People Of India, having solemnly resolved to constitute India into a Sovereign Democratic Republic” that would secure to all its citizens “Justice… Equality… Liberty… and Fraternity”.
• The 42nd Amendment in 1976 changed this to “…Sovereign Socialist Secular Democratic Republic…” and added the expression “integrity” to the description of fraternity as a right, which now reads “assuring the dignity of the individual and the unity and integrity of the Nation…”.
• It was included:

• • To uphold India’s pluralistic society.
  • To ensure unity and integrity amidst religious diversity.
  • To protect fundamental rights and equality before law irrespective of faith.

Constitutional Provisions Related to Secularism

Secularism is a theme that permeates through the Constitution in several other provisions.

• Preamble: Declares India as a ‘Secular’ nation.
• Article 14: Equality before law and equal protection of laws.
• Articles 15-16: Prohibit discrimination on grounds of religion.
• Article 25: Freedom of conscience and right to freely profess, practice, and propagate religion (subject to public order, morality, health).
• Article 26: Freedom to manage religious affairs.
• Article 27: No compulsion to pay taxes for promotion of any particular religion.
• Article 28: No religious instruction in state-funded educational institutions.

Key Supreme Court Judgments on Secularism

• Berubari Union Case (1960):
  The Supreme Court held that the Preamble is not a part of the Constitution and does not confer any substantive powers. It is only a key to understanding its provisions.
• Kesavananda Bharati Case (1973):
  A 13-judge bench ruled that secularism is a basic feature of the Constitution, which cannot be amended or abrogated by Parliament. The judgment stated that the State shall not discriminate against any citizen solely on the ground of religion.
• Minerva Mills Case (1980):
  While primarily addressing constitutional amendments during the Emergency, the Court recognised “socialism” as a constitutional ideal. It highlighted that Part IV (Directive Principles of State Policy) outlines the socialistic goals that the State must aim to achieve to ensure social, economic, and political justice.
• S.R. Bommai Case (1994):
  The Supreme Court reaffirmed that secularism is a basic feature of the Constitution. The case, dealing with Centre-State relations and dismissal of state governments, upheld that no government can violate the secular fabric of the nation.
• Writ Petitions Dismissal (November 2024):
  A two-judge bench led by Chief Justice Sanjiv Khanna dismissed petitions challenging the insertion of “secularism” and “socialism” in the Preamble. The Court ruled that these additions have not impeded legislation or policies, as long as they do not infringe upon fundamental rights or the Constitution’s basic structure.

How does the Indian State ensure Secularism?

• The Indian State uses multiple strategies to uphold secularism:
  • Maintains distance from religion: The government is not ruled by any religious group nor does it support any one religion.
  • Neutral public spaces: Law courts, police stations, government schools, and offices are not allowed to promote or display any particular religion.
  • Education system: Government schools cannot promote any specific religion through morning prayers or celebrations.
  • Respect for religious sentiments: The State makes certain exceptions to accommodate religious practices of particular communities without promoting them officially.
  • Intervention when necessary: The State intervenes in religious practices to end those which discriminate or violate Fundamental Rights (e.g. abolition of untouchability, temple entry reforms).
  • Educational rights: Religious communities have the right to establish their own educational institutions, and the State may provide them financial aid on a non-preferential basis.

How is Indian Secularism Different from USA Secularism?

Concept of USA Secularism

• The First Amendment of the US Constitution prohibits the legislature from:
  • Making any law “respecting an establishment of religion”.
  • Making laws that “prohibit the free exercise of religion”.
• This implies:
  • The legislature cannot declare any religion as the official religion.
  • It cannot give preference to any religion over others.
  • There is a strict separation between State and religion, meaning neither can interfere in the affairs of the other.

Differences with Indian Secularism

• Strict Separation vs. Principled Intervention:
  • In the US, secularism implies strict non-interference between State and religion.
  • In India, while the State maintains distance, it can intervene in religious matters to uphold constitutional ideals such as equality, justice, and dignity.
• Constitutional Guarantees:
  • The Indian Constitution guarantees Fundamental Rights based on secular principles while permitting regulatory intervention to reform discriminatory practices within religions.

Conclusion

Indian secularism is rooted in the idea of equal respect for all religions while empowering the State to intervene when religious practices violate constitutional values. In contrast, USA secularism focuses on absolute non-interference, prohibiting State involvement in religious matters entirely.

Mains Practice Question

Q  “Indian secularism is more about equal respect for all religions than strict separation.” Elaborate with constitutional provisions and examples. (250 words, 15 marks)

Introduction (Context)

• The One Big Beautiful Bill is a 940-page tax and spending package advanced by the Republican-majority US Senate ahead of the July 4 deadline in 2025.

Aim

It aims to:

• Expand the scope of Trump’s 2017 tax cuts to the wealthy while introducing new tax breaks.
• Cut federal spending and increase defence spending.
• Raise the debt ceiling by up to $5 trillion.
• Fund mass deportations of undocumented immigrants

Key Provisions

1. Medicaid Cuts

• Medicaid is the healthcare programme extensively used by millions of low-income, elderly and disabled Americans.
• Imposes stricter eligibility requirements:
  • 80 hours of work per month mandated for childless adults without disabilities (from Dec 2026).
  • Re-enrolment every six months, requiring updated income and residency verification.
• Proposes reducing provider taxes from 6% to 3.5% by 2031, offset by a $25 billion rural hospital fund to mitigate state-level funding losses.
• Tightens requirements for adults with children aged 15+ to work or volunteer minimum 80 hours per month.

2. Social Security Taxes

• Social Security income is the monthly payments to the elderly and disabled.
• Te bill falls short of this promise.
• Temporarily increases standard deduction by up to $4,000 for those aged 65+ (2025–2028).
• Proposes $6,000 tax deductions for elderly Americans to increase financial relief.

3. Extending 2017 Trump Tax Cuts

• In 2017, Trump enacted the Tax Cuts and Jobs Act, which cut taxes for people at all income levels, and specifically benefited the rich. While the tax cuts on businesses are permanent, those on individual taxpayers are set to lapse at the end of the year. The bill permanently extends tax cuts for all individuals. 
• Permanently extends individual tax cuts enacted under the 2017 Tax Cuts and Jobs Act.
• Retains doubled standard deductions and further increases them by:
  • $2,000 for married couples,
  • $1,000 for single filers,
    leading to $32,000 for couples and $16,000 for individuals.

4. SALT Tax Ceiling

• Raises the state and local tax (SALT) deduction limit from $10,000 to $40,000 for five years (from 2025), with a 1% annual increase, before reverting to $10,000.

5. SNAP Reforms

• Reduces federal share in Supplemental Nutrition Assistance Program (SNAP) from 50% to 25% by 2027, shifting burden to states.
• Adds work requirements for able-bodied recipients without dependents.
• States with high improper payment rates must cover up to 15% of costs.

6. Clean Energy Tax Cuts

• Phases out Biden-era clean energy tax credits under the Inflation Reduction Act by 2029.
• Allows businesses building wind and solar farms to retain tax credits unless linked to foreign entities of concern (e.g. China).
• Credits decline from 100% (2025) to 60% (2026), 20% (2027), and zero (2028 onwards).

7. Overtime, Tips, and Child Tax Credit

• Ends taxes on tips and overtime pay, phased out for individuals earning above $150,000 and joint filers above $300,000.
• Revises child tax credit:
  • Senate version proposes $2,200 permanently, requiring only one parent with a Social Security number.
  • House version proposed $2,500 till 2028, requiring both parents to have SSNs.
• Allows deductions on car loans for American-made vehicles only.

8. Immigration Crackdown

• Allocates $170 billion for:
  • $46 billion on border wall and fortifications.
  • $70 billion on detention centres for deportees and their families.

9. Bolstering Defence

• Allocates $158 billion, including:
  • $25 billion for munitions and defence supply chain,
  • $329 billion for shipbuilding,
  • $34 billion for missile defence and space capabilities, including the proposed “Golden Dome” continental missile defence initiative.

Critical Analysis

• Fiscal Concerns:

• • Adds $3.3 trillion to federal debt, raising questions about long-term economic stability and intergenerational equity.
  • The US is already in huge debt ($36.2 trillion). Adding more means future generations will have to pay it back through higher taxes or reduced government services.
  • It can reduce the government’s ability to spend on emergencies like pandemics, natural disasters, or economic crises.

• Social Sector Impact:

• • Medicaid cuts: Stricter rules for getting health benefits will hurt poor, elderly, and disabled people, making healthcare unaffordable for many.
  • SNAP changes: Less federal funding for food programs will burden states and may reduce food security for over 40 million low-income Americans.

• Economic Equity:

• • The bill permanently extends tax cuts introduced earlier, which mainly benefit rich and high-income groups.
  • Some benefits like removing taxes on tips, overtime pay, or raising child tax credit will help middle-class families but not enough to balance cuts in healthcare and food aid.
  • This may increase income inequality in the US.

• Clean Energy Rollback:

• • The bill reduces tax credits for solar, wind, and other clean energy projects.
  • This weakens the US fight against climate change as it discourages investments in renewable energy.

• Immigration and Defence:

• • A huge amount is allocated for: Building the Mexico border wall and detention centres ($170 billion). Strengthening defence and missile systems ($158 billion)
  • Critics say this prioritises national security over people’s welfare needs like health and education.

Impact on India

• Global Economy: If US debt rises too high, it could affect the value of the US dollar, global interest rates, and economic stability worldwide, including India’s trade and investments.
• Clean Energy Markets: Reduction in US clean energy support could slow global climate action, affect technology sharing, and increase pollution risks, impacting India’s climate goals too.
• Defence Policies: Higher US defence spending and focus on national security may lead to increased arms sales and defence partnerships with India, which can strengthen India’s security but also push it towards higher defence spending.
• Trade Relations: If US welfare programs weaken and economic inequality rises, it may reduce demand for imported goods and services, including Indian IT and professional services exports.

Conclusion

Trump’s One Big Beautiful Bill is a comprehensive tax, spending, and debt package aimed at entrenching fiscal conservatism and national security priorities. While it offers certain tax reliefs, it risks exacerbating fiscal deficits, social inequality, and environmental rollbacks, raising debates on its long-term impact on American democracy and welfare.

Mains Practice Question

Q Discuss the ethical dimensions of large fiscal bills that reduce welfare spending to fund tax cuts and defence expansion. (250 words, 15 marks)

Today’s – Daily Practice MCQs’ will be updated in our “Daily Current Affairs Quiz” section on our website

Please click on the below link 

Daily Current Affairs Quiz for UPSC IAS Prelims | IASbaba