IASbaba's Daily Current Affairs Analysis
Archives
(PRELIMS Focus)
Bidriware: Karnataka’s Iconic Metalcraft Facing Economic Challenges
Art & Culture
Why in News?
Bidriware, the traditional metalcraft of Bidar, Karnataka, is facing difficulties due to the rising cost of metals, particularly silver, and declining demand. These pressures are affecting the livelihoods of traditional artisans.
Key Facts
- Origin: Associated with the Bahmani Sultanate of the Deccan, particularly the 14th–15th centuries.
- Centre: Bidar, Karnataka; the craft also has a presence in Hyderabad.
- Influences: Combines Persian, Turkish, Arabic and local Deccan artistic traditions.
- Base material: An alloy primarily of zinc and copper.
- Signature feature: Intricate silver inlay against a deep black metallic background.
- Technique: Designs are engraved into the metal surface and pure silver wire/strips are hammered into the grooves—a form of damascening/inlay work.
- Blackening: A special soil associated with the Bidar Fort is used with chemicals such as ammonium chloride to selectively darken the metal while leaving the silver bright.
- GI Tag: Bidriware received Geographical Indication (GI) status in 2006.
Major Challenges
- Increasing price and availability of silver and other raw materials
- Declining consumer demand
- Low remuneration for artisans
- Competition from cheaper/counterfeit products
- Longer production time and labour-intensive craftsmanship
Some artisans have adopted techniques such as tarkashi and screen printing to reduce production time and costs.
Sources:
Global Business Climate Survey 2026: India Ranked First
Economy
Why in News?
India has been ranked first in business climate among 41 global markets in the Global Business Climate Survey 2026, produced by Business Sweden, Swedish Chambers of Commerce and Sweden’s embassies/consulates.
About the Survey
- First conducted: 2020.
- 2026 edition: Covers 41 markets across Western Europe, Asia-Pacific (APAC), Middle East & Africa (MEA+) and the Americas.
- Captures the experiences, perceptions and outlook of Swedish companies operating overseas.
- More than 2,250 C-level representatives participated in the 2026 global survey and answered 18 standard questions.
- It assesses economic performance, business conditions, outlook, profitability, investment intentions and operating challenges.
Key Findings – 2026
- India: Ranked No. 1 in overall business climate.
- Top-performing markets: India, Ireland and Vietnam.
- India, Philippines and Poland: Among markets with the highest growth expectations.
- Asia-Pacific: Most optimistic region.
- Around 44% of Swedish companies globally planned to increase investments over the coming year.
- About 64% reported profitability across surveyed markets.
- Around 80% maintained a neutral or positive operational outlook.
Important Caveat
The survey reflects the perspectives of Swedish companies, rather than an assessment of all foreign or domestic businesses in India. Therefore, it should be understood as a business-perception survey, not a universal ranking of national economic performance.
Sources:
https://newsonair.gov.in/india-ranks-first-in-business-climate-among-40-plus-global-markets/
Battery Energy Storage System (BESS): Enabling Renewable Energy Integration
Economy
Why in News?
The Battery Energy Storage System (BESS) is gaining importance in India as the country expands solar and wind capacity. Recent data show that 2,668.54 MW / 7,785.6 MWh of BESS capacity was added during FY 2025–26. The government is supporting large-scale deployment through Viability Gap Funding (VGF) and other measures.
What is BESS?
- BESS stores electricity in rechargeable batteries and releases it when required.
- A complete BESS generally includes:
- Battery cells/modules – store energy
- Battery Management System (BMS) – monitors voltage, temperature and state of charge
- Power Conversion System (PCS) – converts DC ↔ AC
- Thermal-management and control systems.
- It can store electricity from solar, wind or the grid and discharge during periods of high demand.
Why is BESS Important?
- Addresses the intermittency of solar and wind.
- Helps maintain grid frequency and voltage stability.
- Enables peak-load management and reduces renewable-energy curtailment.
- Improves the dispatchability of renewable electricity.
- Can reduce the need for some additional transmission/grid infrastructure.
Government Support
The VGF scheme for BESS, approved in 2023, envisaged 4,000 MWh of projects by 2030–31 and financial support of up to 40% of capital cost. The initial scheme had an outlay of ₹9,400 crore, including ₹3,760 crore of budgetary support.
A subsequent 2025 VGF scheme supports another 30 GWh of BESS capacity through the Power System Development Fund (PSDF) with ₹5,400 crore financial support.
Sources:
INS Trishul: Talwar-Class Guided Missile Frigate
Science & Technology → Defence Technology;
Why in News?
The Indian Navy’s INS Trishul made a port call at Alexandria, Egypt, from 14–17 September 2026. During the visit, it conducted a Passage Exercise (PASSEX) with Egyptian Navy ship ENS Bernees, involving coordinated manoeuvring, communication drills and approaches for replenishment at sea.
Key Facts
- INS Trishul: Front-line Talwar-class guided missile frigate of the Indian Navy.
- Commissioned: 2003.
- Origin: Talwar-class frigates are modified Krivak III-class frigates developed in Russia.
- Displacement: About 3,700 tonnes.
- Length: Approximately 125 metres.
- Speed: More than 30 knots.
- Endurance: Around 30 days at sea.
- Stealth: Incorporates features designed to reduce its radar, infrared and acoustic signatures.
Armament & Capabilities
INS Trishul is designed for multi-dimensional maritime operations, including:
- Anti-surface warfare
- Anti-submarine warfare
- Air-defence operations
- Maritime surveillance and escort missions
It became the second Indian warship to incorporate the eight-cell KBSM 3S-14NE Vertical Launch System and was the first to upload the BrahMos PJ-10 supersonic cruise missile.
Sources:
https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2312509®=48&lang=1
Giant African Snail: Invasive Pest Threat in Kerala
Environment & Ecology
Why in News?
The Kerala Agricultural University (KAU) has launched a special project to eradicate the Giant African Snail (Lissachatina fulica) following a request from the Kerala Agriculture Department. The invasive snail has been spreading in parts of Kerala, particularly during wet conditions.
About Giant African Snail
- Scientific name: Lissachatina fulica; earlier known as Achatina fulica.
- Origin: East Africa.
- It is regarded as one of the world’s most damaging invasive land snails.
- It has spread internationally through pet/ornamental trade, use as a food resource and accidental transportation.
- Habitat: Warm, humid tropical environments; agricultural fields, forests, wetlands, coastal areas, riparian zones and even urban areas.
- Diet: Highly broad-ranging; can damage crops and ornamental plants and may consume decaying organic matter.
- Reproduction: Hermaphroditic, allowing individuals to reproduce without requiring separate male and female individuals.
- Appearance: Large, elongated/conical shell, generally light brown with darker vertical bands; shell may reach about 200 mm.
Health & Ecological Concerns
- It can act as a carrier of the rat lungworm (Angiostrongylus cantonensis).
- This parasite can cause eosinophilic meningitis in humans.
- Ecologically, its rapid spread can damage vegetation and compete with native organisms, making it an important invasive alien species (IAS) concern.
UPSC Static–Dynamic Linkage
Invasive Alien Species → non-native organisms that establish, spread and cause ecological, economic or health-related harm.
Sources:
Kavach 4.0: India’s Indigenous Automatic Train Protection System
Science & Technology
Why in News?
Indian Railways has approved the deployment of Kavach Version 4.0 across 607.7 Route Kilometres (RKM) of the Lucknow Division of North Eastern Railway at a cost of about ₹252 crore. The project will extend Kavach coverage to the identified remaining sections of the division.
What is Kavach?
- Kavach is an indigenously developed Automatic Train Protection (ATP) system for Indian Railways.
- It assists the Loco Pilot in maintaining prescribed speed limits.
- If the driver fails to respond appropriately, the system can automatically apply brakes.
- It is designed to help prevent Signal Passing At Danger (SPAD) and reduce the risk of train collisions.
- Kavach requires the highest railway safety certification level, Safety Integrity Level-4 (SIL-4).
Kavach 4.0 – Major Improvements
Compared with earlier versions, Version 4.0 incorporates:
- Improved location accuracy
- Better information on signal aspects, especially in large yards
- Station-to-station Kavach interface through Optical Fibre Cable (OFC)
- Direct interface with existing Electronic Interlocking systems
Current Deployment
As of 31 July 2026, Kavach 4.0 had been commissioned over 2,633 RKM, covering sections of the high-density Delhi–Mumbai and Delhi–Howrah routes.
Sources:
(MAINS Focus)
Antidote to Drugs: The Counterfeit Medicine Racket in Bengaluru
GS II – Governance / GS II – Social Justice
Public Health, Drug Regulation, and Quality Control
Introduction
The recent bust of a counterfeit medicine racket in Bengaluru has exposed a public policy issue with broad ramifications for healthcare. Relabelled or fake drugs, including cancer drugs and ICU injections, were supplied to more than 90 hospitals and clinics across Karnataka. The scam was uncovered after raids near Bidadi on August 18, 2026, at an unlicensed farmhouse where fake and expired drugs—with altered expiry dates and repackaged as expensive imported brands—were found, with a label value of ₹5 crore. A Special Investigation Team (SIT) is tracing the wider network. The impunity with which scamsters operated indicates unreliable scrutiny of drug quality in the market, with patient safety the biggest concern.
The Scam: Modus Operandi and Scale
The Operation
- Unlicensed Unit: Farmhouse near Bidadi used for repacking fake and expired drugs.
- Methods: Altered expiry dates; repackaged as expensive imported branded drugs; sold at massive discounts.
- Label Value: ₹5 crore (consignment found).
Distribution Network
- Reach: Supplied to 90+ hospitals and clinics across Karnataka.
- Complicity: In cahoots with a pharmacy in Bengaluru.
- Duration: Network thriving well before the bust.
- Investigations: Inter-State links being examined; supply chain review launched; possible complicity of private hospitals under scrutiny.
Arrests and Investigations
- Arrests: A few persons arrested; one accused abroad.
- SIT: Formed to trace wider network.
- Patient Safety: Biggest concern—drugs meant for time-sensitive, life-saving use.
The Broader Problem: Drug Quality in India
Recurring Incidents
- Alarming Regularity: Poor quality, spurious, fake, or expired drugs hit headlines.
- Contaminated Cough Syrups: Caused deaths in India and across the world.
- Impact: Immediate adverse reactions, severe disabilities, death.
The “Pharmacy of the World” Ambition
- Aspiration: India zealously aspires to be the “pharmacy of the world.”
- Reality: Struggles to match ambition with adequate and stringent monitoring and quality control systems.
- Dented Pride: Incidents consistently dent the “Make in India” campaign.
Regulatory Gaps
- Unreliable Scrutiny: Quality of drugs in the market not adequately monitored.
- Enforcement: Impunity with which scamsters operate.
- Supply Chain: Illicit channels through which private hospitals buy and use drugs.
Way Forward
Strengthen Regulation
- Tighten Monitoring: Drug production and supply chain oversight.
- Stringent Quality Control: Regular testing, certification, and audits.
- Penalties: Deterrent punishment for counterfeit drug rackets.
Supply Chain Integrity
- Track and Trace: Digital systems for drug authenticity.
- Hospital Accountability: Private hospitals must source drugs from licensed, verified suppliers.
- Inter-State Coordination: Joint investigations and information sharing.
Patient Safety
- Awareness: Educate public and healthcare providers on counterfeit drugs.
- Reporting: Easy mechanisms to report suspected fake drugs.
- Compensation: For victims of counterfeit drugs.
Institutional Reform
- Central Drug Authority: Strengthen CDSCO’s capacity.
- State Drug Controllers: Enhance technical expertise and resources.
- Pharmacovigilance: Strengthen adverse drug reaction monitoring.
Conclusion
The Bengaluru counterfeit medicine racket—supplying fake cancer drugs and ICU injections to 90+ hospitals—exposes the fragility of India’s drug quality control systems. For a nation aspiring to be the “pharmacy of the world,” the impunity of scamsters and recurring incidents of spurious drugs dent the “Make in India” campaign. The biggest concern is patient safety. India must tighten monitoring of drug production, strengthen supply chain integrity, and ensure that drugs and medical supplies meet the highest quality standards. Irrespective of global ambitions, the pressing need is to protect patients from counterfeit and substandard drugs.
Practice Question
- The Bengaluru counterfeit medicine racket exposes the fragility of India’s drug quality control systems, denting the ‘pharmacy of the world’ ambition. Critically examine the challenges of drug regulation in India and suggest measures for strengthening quality control and patient safety. (250 words, 15 marks)
India's Real Rate Moment: The Cost of Delay
GS III – Economy
Monetary Policy, Inflation, and Interest Rates
Introduction
India is approaching an uncomfortable turning point in monetary policy. With the RBI holding the repo rate at 5.25% while inflation rises, the real policy rate is steadily losing its cushion. Consumer price inflation rose to 4.82% in August 2026 (from 4.45% in July), marking the third consecutive month above the RBI’s 4% target. Food inflation is at 5.95%, and core inflation has risen to around 4.2%, suggesting price pressures are broadening beyond food. If inflation expectations move toward 5.25%, the ex-ante real policy rate becomes approximately zero—a very different monetary environment.
The Shrinking Real-Rate Cushion
Inflation Trends
- Headline CPI: 4.82% (August 2026); 4.45% (July)
- Food Inflation: 5.95%
- Core Inflation: ~4.2%
- RBI Projection (FY 2026-27): ~5%
- Consecutive Months Above Target: 3
Real Policy Rate
- Repo Rate: 5.25%
- Ex-Ante Real Rate: Approaches zero if inflation expectations move toward 5.25%
- Implication: A 5.25% repo rate may appear restrictive in nominal terms but offers little restraint in real terms.
External Inflation Shock
- West Asia Conflict: Disrupted shipping through Strait of Hormuz.
- Brent Crude: Above $100/barrel; approaching $110.
- Combination: Higher oil prices + weaker rupee + elevated global commodity prices = more difficult inflation environment.
Supply-Side Shock
- Falling Real Rates: Often stimulate demand when economy is below capacity.
- Current Situation: Demand already healthy; inflation shock originates from supply and expectations.
- Risk: The same mechanism can amplify rather than neutralise inflation.
Banking System Trends
Credit and Deposit Growth
- Bank Credit Growth: 19.1% YoY (end-August 2026)
- Deposit Growth: 17.8% (fastest in a decade)
- FCNR(B) Scheme: Contributed to deposit surge; not necessarily domestic household willingness to hold deposits.
- Credit-Deposit Ratio: ~80.3%
Household Savings and Inflation
- Alternatives: Mutual funds, equities, gold.
- Real Return on Deposits: Becomes less attractive as inflation rises.
- Historical Evidence (2010-2013): Rising inflation reduced real return on savings; household financial savings weakened; gold demand increased (correlation between gold imports and inflation expectations: 0.83).
The Question of Timing
Has the RBI Missed an Opportunity?
- Central Bank’s Dilemma: Should not raise rates simply because oil prices increased.
- But Must Consider: Risk that temporary inflation becomes embedded in expectations, wages, prices, and credit.
- Risk Looks Real: Inflation above 4% for 3 months; core at 4.2%; one-year OIS rate ~6% (signalling future tightening); GDP growth 7.8%; credit growth 19.1%.
Timing as an Instrument
- Timely 25 bps Adjustment: May cost less than a delayed 50 bps correction.
- Direction Clear: Inflation moving toward policy rate while growth and credit remain strong.
- Conclusion: “Perhaps the time has come.”
Conclusion
India’s real policy rate is losing its cushion as inflation rises (4.82% in August) while the repo rate remains at 5.25%. Food inflation (5.95%) and core inflation (4.2%) suggest broadening price pressures. External shocks—Brent crude above $100, weaker rupee—add to the difficulty. With GDP growth at 7.8% and credit growth at 19.1%, demand is hardly weak. A 5.25% repo rate offers increasingly little restraint in real terms. In monetary policy, timing is an instrument; a timely 25 bps adjustment may cost less than a delayed 50 bps correction. Perhaps the time has come.
Practice Question
- India faces a shrinking real-rate cushion as inflation rises and demand remains strong, raising the question of whether the RBI has missed an opportunity to act. Critically examine the monetary policy dilemma and suggest the appropriate course of action. (250 words, 15 marks)
https://www.thehindu.com/opinion/op-ed/indias-real-rate-moment-the-cost-of-delay/article71488504.ece
