December 10th Current Affairs
Table of Contents
Dramaturgy
Home / Dramaturgy Dramaturgy is a sociological perspective developed by Erving Goffman, which views social life as a theatrical performance.
Symbolic Interactionism
Home / Symbolic Interactionism Symbolic Interactionism is a major sociological perspective associated primarily with George Herbert Mead and Charles Horton
UPSC Current Affairs – December 10
December 10th Current Affairs Home / Table of Contents INDIA bloc MPs move motion to impeach HC judge Relevance to
Ethnomethodology
Home / Ethnomethodology Ethnomethodology, introduced by Harold Garfinkel, examines how people use everyday, common-sense knowledge to interpret situations, organise interactions,
Phenomenology in Sociology
Home / Phenomenology in Sociology Phenomenology argues that the subject matter of social sciences fundamentally differs from that of natural
UPSC Current Affairs – December 8
December 08th Current Affairs Home / Table of Contents Parliament approves Bill to levy higher excise duty on tobacco Relevance
Interpretive Sociology
Home / Interpretive Sociology Interpretive sociology examines how individuals construct and attach meaning to their social realities. It stresses that
UPSC Current Affairs – December 4
December 04th Current Affairs Home / Table of Contents Law Commission to brief joint committee of Parliament on simultaneous polls
Non-Positivist Methodologies in Social Research
Home / Non-Positivist Methodologies in Social Research Shift from Positivism to Non-Positivism As sociologists recognized that social realities cannot be
UPSC Current Affairs – December 3
December 03rd Current Affairs Home / Table of Contents Govt ready to talk about electoral reforms in Parliament, but not
INDIA bloc MPs move motion to impeach HC judge
Relevance to UPSC
GS Paper-II: Polity & Governance | Judiciary & Constitutional Provisions
- Illustrates the constitutional mechanism for removal of judges — the check on judicial misconduct through impeachment under Articles 124 & 217 of the Constitution.
- Relevant for understanding judicial accountability, separation of powers, and the role of Parliament in safeguarding judicial integrity.
GS Paper-II: Federal Institutions & Oversight
- Highlights interplay between Legislature and Judiciary — how parliamentary oversight can act when there are serious allegations against a sitting judge.
- Useful for analysis of constitutional safeguards, misuse of judicial power, and institutional checks.
More About the News
- On 9 December 2025, 107 — and by some counts 120 — MPs from INDIA bloc parties submitted a formal notice to the Speaker seeking impeachment proceedings against G.R. Swaminathan, a judge of the Madras High Court (Madurai bench).
- The notice invokes Articles 217 read with 124 of the Constitution and alleges that Justice Swaminathan’s conduct raised serious questions on impartiality, transparency and secular functioning of judiciary.
- It accuses him of showing undue favouritism towards certain advocates and deciding cases on political/communal lines, violating constitutional secular principles.
- The immediate trigger is his recent order allowing the lighting of a religious lamp during a festival at a hill-top site which houses a temple and a dargah — a verdict that sparked communal tensions and government resistance.
- The notice, along with earlier letters to the President and the Chief Justice of India, was handed over to the Lok Sabha Speaker by senior INDIA bloc leaders.
- The move has provoked contrasting reactions: supporters justify it on grounds of judicial accountability and upholding secular values; critics argue it threatens judicial independence and amounts to political pressure on courts.
IMPEACHMENT OF HIGH COURT JUDGES IN INDIA
Judges of High Courts enjoy constitutional protection to ensure judicial independence. However, when there are proven allegations of misconduct or incapacity, the Constitution provides a detailed procedure for their removal (popularly called impeachment) under Articles 217 and 124(4). The process is deliberately stringent to prevent political misuse and to uphold the dignity of the judiciary.
Constitutional Provisions
Article 217(1)(b)
- Provides that a High Court Judge may be removed in the manner provided for Judges of the Supreme Court in Article 124(4) & 124(5).
Article 124(4)
A judge can be removed only on:
- Proved misbehaviour, or
- Incapacity,
through a motion passed by each House of Parliament by: - Special majority (majority of total membership + 2/3rd of members present and voting).
Article 124(5)
- Parliament may make laws to regulate the investigation and proof of misbehaviour or incapacity.
→ Judges (Inquiry) Act, 1968 (now superseded).
Judges (Inquiry) Act, 2023
Governs the detailed process of inquiry and ethical standards.
Grounds for Removal
Grounds are not exhaustively defined, but broadly include:
Misbehaviour
- Corruption or bribery
- Abuse of judicial office
- Partiality or bias
- Conduct unbecoming of a judge
- Violation of constitutional values
- Persistent neglect of duty
Incapacity
- Physical or mental inability to discharge duties.
Initiation of Removal Process
Who can initiate?
- Lok Sabha: Notice signed by 100 MPs
- Rajya Sabha: Notice signed by 50 MPs
Step 1: Admission of Motion
- Motion is submitted to the Speaker (LS) or Chairman (RS).
- They may either:
- Admit, or
- Reject the motion.
This discretion ensures immunity from frivolous or politically motivated attempts.
Constitution of the Inquiry Committee
Once the motion is admitted, the Presiding Officer constitutes a three-member Inquiry Committee comprising:
- A Supreme Court Judge
- A Chief Justice of a High Court
- A distinguished jurist
Functions:
- Examine charges
- Hear judge’s defence
- Summon records and witnesses
- Give a findings report on whether the charges are proven
This investigation mirrors quasi-judicial standards.
Parliamentary Stage
If the Committee finds the judge guilty:
The motion is taken up for debate in both Houses.
It must be passed in:
Lok Sabha: Special majority
Rajya Sabha: Special majority
If the Committee finds the judge not guilty:
The motion is dropped; no further action.
Presidential Assent
After both Houses pass the motion:
- The address is sent to the President,
- The President issues an order removing the judge.
This final step formalises the removal.
Safeguards Ensuring Judicial Independence
- High thresholds (100 or 50 MPs).
- Discretionary filtering by Speaker/Chairman prevents harassment.
- Independent, quasi-judicial committee.
- Special majority requirement in both Houses.
- President’s final approval.
These safeguards reflect the need to keep judges insulated from political pressures.
Past Impeachment Cases
Justice V. Ramaswami (1993) – Supreme Court
- First judge against whom impeachment was attempted.
- Motion failed in Lok Sabha due to abstentions.
Justice Soumitra Sen (2011) – Calcutta HC
- Rajya Sabha passed impeachment motion.
- Justice Sen resigned before Lok Sabha could vote.
- Resignation ended proceedings.
Justice P.D. Dinakaran (2011) – Sikkim HC
- Faced inquiry for land-grab allegations; resigned before motion.
Justice J.B. Pardiwala (2015)
- Motion initiated; later withdrawn after he expunged controversial remarks.
Note: No High Court judge has been formally removed till date, though proceedings have been initiated multiple times.
Current Issues & Debates
1. Political misuse vs genuine accountability
- Balance between protecting independence and preventing impunity.
2. Lack of clear definition of “misbehaviour”
- Leaves scope for subjective interpretation.
3. Slow process
- Investigation and parliamentary procedures are lengthy.
4. Resignation loophole
- Judges often resign to escape impeachment proceedings.
5. Need for institutional mechanisms
- Ethics committees, judicial performance review, or independent oversight bodies.
Suggested Reforms
- Clearer standards for “misbehaviour”
- A permanent Judicial Complaints Commission
- Restrict resignation during inquiry
- Time-bound impeachment process
- Strengthen in-house judicial disciplinary mechanisms
- Greater transparency in judicial appointments to reduce future misconduct risks
Impeachment of High Court judges, though rare, represents a vital constitutional safeguard ensuring judicial accountability while preserving judicial independence. Strengthening transparency, tightening procedures, and modernising oversight mechanisms can help balance judicial autonomy with public trust in India’s higher judiciary.
Prelims MCQ
Q. Consider the following statements regarding the removal of a High Court judge in India:
1. A High Court judge can be removed by the President of India after an address is passed by each House of Parliament by a special majority.
2. The grounds for removal are “proved misbehaviour” and “incapacity” as provided in the Constitution.
3. The procedure for investigation into charges and presentation of the removal motion is given in the Judges (Inquiry) Act, 1968.
4. The motion for removal of a High Court judge can be initiated only by the Union Government.
How many of the above statements are correct?
Mains Question
Q. The Constitution provides a stringent process for the removal of High Court judges to preserve judicial independence. Critically examine the impeachment process in India and discuss the challenges associated with its implementation.
Trump mulls tariffs on Indian rice; move may hit U.S. more
Relevance to UPSC
GS Paper-II / GS Paper-III: International Relations & Economy
- Sheds light on trade policy, protectionism, and import-export dynamics — important for understanding how major powers use tariffs as economic (and sometimes political) tools.
- Highlights issues around global trade tensions, market access for agricultural goods, and the role of domestic agricultural lobby & subsidy regimes in shaping foreign policy.
- Useful for debates on trade diplomacy, trade war effects on global supply chains, and economic interdependence vs protectionism.
GS Paper-III: Agriculture & External Sector
- Draws attention to how global demand shifts and tariff barriers can affect agricultural export markets — relevant for India’s agrarian economy, export policies, farmer welfare, and diversification of export destinations.
- Offers a case study in how export-oriented agriculture interacts with international policy and external economic pressures.
More About the News
- Trump has signalled that the U.S. may impose fresh tariffs on rice imports from India, alleging “dumping” of Indian rice into the American market.
- This comes amid a $12-billion aid package for American farmers who claim cheaper imports are undercutting their prices.
- The existing high tariff regime on Indian rice (including premium basmati) is already in place. Exporters warn that additional duties may not significantly dent Indian exports because global demand remains diversified.
- However, the likely outcome is higher prices for rice in U.S. retail markets — meaning American consumers, not Indian exporters, may bear the brunt.
- The announcement triggered a drop in share prices of Indian rice exporting firms, reflecting market anxiety over future trade friction and uncertainty.
GROWING OF RICE IN INDIA
Rice is India’s most important food crop, feeding over half the population and contributing significantly to food security, rural employment, and agricultural GDP. India is the 2nd-largest producer and consumer of rice globally, and the largest exporter of rice varieties. The crop plays a decisive role in India’s agrarian economy and socio-cultural life.
Geographic & Climatic Requirements for Rice Cultivation
(a) Temperature
- Requires warm and humid climate.
- Ideal temperature: 21O C to 37O C
(b) Rainfall
- Optimal rainfall: 100–200 cm annually.
- Rice thrives in areas with assured water supply due to its high water requirement.
(c) Soil
- Grows in a variety of soils: alluvial, red, black, lateritic, deltaic.
- Prefers deep, fertile, clayey or loamy soil that retains water.
- Ideal pH: 5.5 – 7.0.
(d) Topography
- Best suited for:
- Lowlands & floodplains
- Deltas and coastal regions
- Terraced fields in hilly areas (e.g., NE states, Uttarakhand)
Major Rice-Growing Seasons in India
1. Kharif (June–November)
- Major season, accounts for 85% of total production.
- Sown with monsoon onset; harvested in autumn.
2. Rabi (November–March)
- Grown in southern and eastern India where irrigation/winter rains support it.
- States: Tamil Nadu, Andhra Pradesh, Odisha, West Bengal, Kerala.
3. Summer / Boro (January–May)
- Popular in Eastern India: West Bengal, Assam, Odisha.
- Highly irrigation-dependent.
Major Rice-Growing Regions in India
1. Eastern Region
- States: West Bengal, Bihar, Jharkhand, Odisha, Assam, Eastern UP.
- High rainfall, fertile alluvial soils.
- West Bengal is the largest producer.
2. Southern Region
- Andhra Pradesh, Telangana, Tamil Nadu, Karnataka, Kerala.
- Large irrigation networks; high productivity.
3. Northern Region
- Punjab, Haryana, Western UP.
- HYV seeds + assured canal & tube-well irrigation → highest productivity.
4. Central & Western Region
- Chhattisgarh (“Rice Bowl”), Madhya Pradesh, Maharashtra.
- Chhattisgarh and MP improving due to irrigation and hybrid varieties.
Production, Productivity & Export Overview
- India’s major producing states: West Bengal, UP, Punjab, Odisha, Andhra Pradesh, Telangana, Chhattisgarh.
- Highest productivity: Punjab, Haryana, Telangana due to HYV seeds and irrigation.
- India is the largest exporter of Basmati and non-Basmati rice, driven by high global demand.
Methods of Rice Cultivation in India
1. Transplantation Method
- Traditional and widely used.
- Seedlings grown in nursery → transplanted in flooded fields.
- High yield but labour- and water-intensive.
2. Broadcasting Method
- Seeds scattered manually.
- Requires less labour but yields are lower.
3. Drilling Method
- Used mainly in peninsular India, especially Tamil Nadu.
4. SRI (System of Rice Intensification)
- Uses less water and younger seedlings, wider spacing, weeding with cono-weeder.
- Increases productivity; promoted under sustainable agriculture programmes.
5. Direct-Seeded Rice (DSR)
- Seeds sown directly into the field using seed drills.
- Saves irrigation water and labour; encouraged in Punjab & Haryana.
Inputs Required for Rice Cultivation
Seeds
- HYVs: IR-64, PR-113, MTU-1010, BPT-5204.
- Hybrids: KRH-2, PA-6444.
Fertilizers
- Balanced application: N:P:K ratio based on soil tests.
- Use of organic manures improves soil health.
Irrigation
- Critical during tillering, panicle formation, and grain filling.
- 3,000–5,000 litres of water needed per kg of rice (varies by method).
Pest & Disease Management
- Major pests: stem borers, leaf folders.
- Diseases: blast, sheath blight, bacterial leaf blight.
- IPM and resistant varieties important.
Government Schemes Supporting Rice Cultivation
- NFSM–Rice (National Food Security Mission) – Enhances productivity in focus districts.
- PMKSY – Supports irrigation and micro-irrigation adoption.
- PMFBY – Crop insurance against climatic risks.
- PM-AASHA – MSP-based procurement for rice.
- RKVY – Supports state-level innovations in rice cultivation.
- ICAR initiatives – Development of stress-tolerant varieties (drought-, flood-, and salinity-resistant).
Challenges in Rice Cultivation
1. Water Stress
- Heavy irrigation demand leading to groundwater depletion (Punjab, Haryana).
2. Climate Change
- Erratic monsoons, floods (Assam, Bihar), droughts (MP, Maharashtra) affect yields.
3. Low Productivity in Eastern India
- Fragmented landholdings, poor irrigation, low mechanisation.
4. Post-Harvest Losses
- Poor storage, milling inefficiencies.
5. Environmental Concerns
- Methane emissions from flooded fields.
- Stubble burning in North India.
6. Market Issues
- MSP dependency, export restrictions, fluctuating global demand.
Way Forward
- Promote water-saving techniques: DSR, SRI.
- Introduce climate-resilient varieties suited to local conditions.
- Improve irrigation efficiency and micro-irrigation.
- Strengthen storage, procurement, and milling infrastructure.
- Encourage diversification from rice in water-scarce states.
- Expand precision agriculture, soil testing, and mechanisation.
Rice cultivation remains central to India’s food security, livelihoods, and rural economy. However, sustainable methods, climate-resilient practices, and efficient resource use are crucial to address water stress, productivity gaps, and environmental challenges, ensuring long-term resilience of India’s rice-growing ecosystem.
Prelims MCQ
Q. Consider the following statements regarding rice cultivation in India:
1. Rice is predominantly grown in areas receiving more than 100 cm of annual rainfall.
2. West Bengal has the highest production of rice in India, while Punjab has the highest yield.
3. The System of Rice Intensification (SRI) method reduces water use and increases per-hectare productivity.
4. Rice can be cultivated in both kharif and rabi seasons in India.
How many of the above statements are correct?
Mains Question
Q. Rice cultivation in India is heavily influenced by agro-climatic factors, technological adoption, and water availability.” Discuss the geographical conditions required, major cultivation regions, challenges, and policy measures needed to improve rice productivity in India.
Embrace simplicity in administration, Supreme Court advises governments
Relevance to UPSC
GS Paper-II: Polity & Governance | Judiciary & Administrative Law
- Deals with judicial oversight over executive / administrative actions, especially in public dealings and governance.
- Illustrates how courts ensure rule of law, access to justice, and ease of administration — showing the balance between legal-bureaucratic procedure and citizens’ rights.
- Relevant for topics on administrative reforms, bureaucratic red tape, ease of doing business, and judicial review of executive action.
GS Paper-II / GS Paper-III: Public Administration & Governance Reform
- Emphasizes need for efficient, citizen-friendly administrative procedures.
- Relevant for debates on governance reforms, public service delivery, reducing procedural delays, and improving transparency and accountability.
More About the News
- The Supreme Court recently held that “simplicity in public transactions is good governance” and is a constitutional value.
- It struck down a 2009 directive by a State government which imposed an extra recommendation requirement — over and above a valid registration — for cooperative societies seeking stamp-duty exemption. The Court found the extra requirement superfluous, redundant and unnecessary.
- The bench (Justices P. S. Narasimha and Atul S. Chandurkar) observed that administrative procedures must avoid complexity, redundant requirements, and unnecessary burdens on citizens — as these waste time, money, and disturb “peace of mind”.
- The Court held that executive actions which impose unjustified procedural hurdles — not required by statute — amount to illegality, warranting judicial intervention and being set aside.
- It emphasised that good governance and access to justice depend on clear, straightforward rules and processes, and not on unnecessary bureaucratic layering.
GOOD GOVERNANCE
Good governance refers to the effective, efficient, transparent, and accountable functioning of public institutions to promote public welfare. In India, it derives legitimacy from the Constitutional vision of justice, liberty, equality, and fraternity and aligns with principles of democratic governance, social justice, and participatory development.
Constitutional Basis of Good Governance in India
- Preamble: Social, economic, and political justice; equality and dignity.
- Fundamental Rights: Assurance of freedoms, equality before law, protection from arbitrary state action — foundation of accountable governance.
- Directive Principles of State Policy: Social welfare, decentralisation, just economic order, welfare state.
- Fundamental Duties: Promote civic responsibility essential for good governance.
- Separation of Powers: Ensures checks and balances.
- Rule of Law: Ensures fairness and non-discrimination.
Core Principles of Good Governance
(a) Transparency
- Open processes, proactive information disclosure, RTI Act, digital governance.
(b) Accountability
- Multi-level oversight: Parliament, judiciary, CAG, Lokpal, vigilance bodies, social audits.
(c) Efficiency & Effectiveness
- Timely service delivery, improved administrative systems, evidence-based policymaking.
(d) Responsiveness
- Quick grievance redressal, citizen charters, e-governance platforms.
(e) Rule of Law
- Equal treatment, speedy justice, police reforms, independent judiciary.
(f) Participation & Inclusiveness
- Panchayati Raj, Gram Sabhas, stakeholder consultations, inclusion of marginalised groups.
(g) Equity
- Affirmative action, welfare programmes, inclusive growth.
(h) Consensus-Oriented Decision-Making
Cooperative federalism, NITI Aayog, stakeholder dialogues.
Components of Good Governance in India
1. Administrative Reforms
- Lateral entry, Mission Karmayogi, performance appraisal reforms, simplification of procedures.
2. E-Governance
- Digital India, Aadhaar, DBT, UMANG, Jan Dhan-Aadhaar-Mobile (JAM) trinity.
3. Fiscal Governance
- FRBM Act, GST Council principles, transparent budgeting.
4. Social Sector Governance
- Health (Ayushman Bharat), Education (NEP 2020), Nutrition (POSHAN Abhiyaan), Social security codes.
5. Judicial Governance
- E-Courts, alternate dispute resolution, fast-track courts.
6. Local Governance
- Strengthening PRIs and ULBs, women’s reservation, finance devolution.
Challenges to Good Governance in India
1. Bureaucratic Inefficiency
- Red-tapism, outdated procedures, capacity deficits.
2. Corruption
- Leakages in welfare schemes, procurement inefficiencies, collusion.
3. Weak Accountability Mechanisms
- Delays in disciplinary action, weak enforcement of service rules.
4. Judicial Delays
- Case pendency, inadequate judge-to-population ratios.
5. Centre–State Friction
- Political competition affecting cooperative federalism.
6. Social Inequities
- Caste, gender, regional imbalances affecting service access.
7. Implementation Gaps
- Policy–practice mismatch, poor monitoring, inadequate funds.
8. Low Citizen Awareness
- Lack of awareness about rights, schemes, grievance redressal.
Government Initiatives Promoting Good Governance
1. e-Governance & Transparency
- RTI Act (2005), Digital India, e-Office, Government e-Marketplace (GeM), Open Government Data Platform.
2. Accountability Measures
- Lokpal & Lokayuktas Act, Social Audit under MGNREGA, CAG’s enhanced audit mechanisms.
3. Service Delivery Reforms
- Sevottam model, CPGRAMS, citizen charters, doorstep delivery.
4. Financial Reforms
- PFMS, DBT, Jan Dhan Yojana reducing intermediaries.
5. Governance Modernisation
- National Centre for Good Governance (NCGG), Mission Karmayogi for civil service capacity building.
6. Federal Governance
GST Council consensus building, NITI Aayog’s cooperative & competitive federalism.
Way Forward
- Civil Service Reforms: Performance-linked incentives, clarity of roles, depoliticisation.
- Judicial Reforms: More judges, AI-enabled case management, localised courts.
- Police Reforms: Independent oversight, modernisation, community policing.
- Strengthening Decentralisation: Greater financial and administrative autonomy to PRIs and ULBs.
- Data-Driven Governance: Evidence-driven policies, improved data quality.
- Improving Social Accountability: Social audits, public hearings, transparency in procurement.
- Bridging the Digital Divide: Equal access to digital governance infrastructure.
Good governance is essential for realising India’s constitutional vision and ensuring inclusive development. While significant reforms have advanced transparency, accountability, and digital delivery, persistent structural gaps demand sustained administrative, judicial, and institutional reforms to build a citizen-centric, responsive, and efficient governance system.
Prelims MCQ
Q. Consider the following statements regarding Good Governance in India:
1. Accountability is a core component of good governance and is explicitly mentioned in the Preamble of the Constitution of India.
2. Citizen Charters are legally enforceable documents that mandate service delivery timelines for all government departments.
3. The Second Administrative Reforms Commission (2nd ARC) emphasised improving ethics, transparency, and people-centric administration as pillars of good governance.
4. e-Governance enhances good governance by reducing discretion, improving transparency, and strengthening service delivery.
How many of the above statements are correct?
Mains Question
Q. Good governance is essential for inclusive development in India. Examine the core principles of good governance and critically analyse the major challenges that undermine these principles. Suggest key reforms to strengthen citizen-centric governance.
RBI raises FY26 GDP growth projection to 7.3%
Relevance to UPSC
GS Paper-III: Economy & Macroeconomic Policy
- Shows how monetary policy (via the central bank) influences macroeconomic growth projections.
- Helps understand interplay of growth, inflation, liquidity, and interest-rate policy — central to fiscal-monetary coordination.
- Useful for studying concepts like output gap, aggregate demand management, inflation targeting, and business cycle management.
GS Paper-III: Public Finance & Policy Implications
- Reflects how macro projections shape fiscal expectations, government revenue, public expenditure and planning.
- Growth forecasts influence investment climate, credit availability, public debt sustainability, and capital formation — crucial for infrastructure & welfare programmes.
More about the News
- The RBI revised India’s FY26 real GDP growth estimate upward from 6.8% to 7.3%, citing stronger-than-expected domestic demand.
- The central bank highlighted that recent quarterly growth trends — including a robust 8%+ expansion in early FY26 — indicate sustained economic momentum.
- A 25 bps repo rate cut was announced simultaneously, signalling monetary support for growth amid easing inflationary pressures.
- RBI also lowered the FY26 inflation projection to around 2%, enabling a more accommodative policy stance.
- Growth expectations for Q3 and Q4 FY26 were revised to 7.0% and 6.5% respectively.
- Drivers of the revision include front-loaded capex, resilient consumption, government reforms, improved GST efficiency, and stable financial conditions.
- The RBI, however, flagged risks such as global slowdown, external demand weakness, and geopolitical uncertainties, which may affect export-led sectors in the second half of the fiscal.
GDP & ITS MEASUREMENT IN INDIA
Gross Domestic Product (GDP) is the monetary value of all final goods and services produced within a country’s borders in a given period. It is the most widely used indicator to measure economic performance, growth, and development trajectories. In India, GDP estimation is carried out by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
GDP: Concept and Components
Approaches to Calculating GDP
India follows three internationally accepted methodologies:
- Production (Value Added) Method
GDP = GVA of all sectors + Product taxes – Product subsidies- Agriculture
- Industry (Manufacturing, Mining, Electricity)
- Services (Trade, Communication, Finance, Public Administration)
- Expenditure Method
GDP = C + I + G + (X – M)- Private Consumption
- Investment
- Government Expenditure
- Net Exports
- Income Method
GDP = Compensation to employees + Operating surplus + Mixed income of self-employed.
Key GDP Terms
- GVA (Gross Value Added): Value of output minus intermediate consumption.
- GDP at Factor Cost vs Market Price: India now uses GDP at market prices, aligning with global standards.
- Real vs Nominal GDP: Adjusted vs unadjusted for inflation.
- GDP Deflator: Measures inflation in overall economy.
Per Capita GDP: GDP divided by population.
GDP Measurement in India
Agencies
- National Statistical Office (NSO): Estimates GDP.
- CSO (now merged into NSO): Historically compiled GDP.
- RBI: Provides supporting data (banks, prices, etc.).
Data Sources
- Annual Survey of Industries (ASI)
- Index of Industrial Production (IIP)
- NSS household surveys
- Agriculture statistics (DES)
- Corporate filings (MCA21)
- GST & tax data
- Financial data from RBI
Base Year Revision
Base year revisions improve accuracy by incorporating structural changes.
- Current base year: 2011–12
- Proposed revision: 2017–18 (pending)
Frequency of Estimates
- Monthly: IIP, CPI, WPI (indirectly used)
- Quarterly: GDP (Provisional Estimates)
- Annually:
- Advance Estimates (AE1: Jan, AE2: Feb)
- Provisional Estimates (PE: May)
- Revised Estimates (1st, 2nd, 3rd revisions)
Challenges in GDP Measurement in India
Dominance of Informal Sector
- Nearly 85–90% of workforce works in informal sector.
- Data scarcity leads to reliance on imputed estimates.
Quality & Timeliness of Data
- Agricultural, small-scale & service sector data often delayed or incomplete.
- MCA21 corporate database issues: “active vs shell companies”, missing filings.
Base Year Delay
- Economy has structurally changed (digital economy, gig work, services boom).
- Current data may not fully capture new models.
Mis-measurement of Services
- Services contribute ~55%+ to GDP; many digital/platform services are unaccounted.
Use of Proxy Indicators
- Quarterly GDP relies on IIP, core sector index, tax collections → less accurate for a diversified economy.
Price Indices
Deflator issues: WPI vs CPI differences distort estimation.
Significance of GDP in India
Policy Making & Budgeting
- Used for fiscal projections, tax-GDP ratio, borrowing targets.
Monetary Policy
- RBI uses GDP trends for inflation-growth balance.
Federal Transfers
- Finance Commission calculations rely on GSDP.
Investment Decisions
- FDI, FPI, and domestic investors track growth prospects.
Welfare Assessment
- Used as denominator for public expenditure indicators:
- Health-to-GDP, Education-to-GDP
- Fiscal deficit-to-GDP
Criticisms and Limitations of GDP
- Does not measure income distribution, inequality.
- Ignores quality of life, environmental costs.
- Fails to capture unpaid household labour.
- Does not reflect sustainability.
Reforms Needed
Update Base Year Frequently
- Reflect digital economy, gig economy, renewable energy, crypto assets.
Improve Data Ecosystems
- Better GST, MCA21, digital payments datasets.
- Integration of big data (satellite imagery, remote sensing).
Strengthening Informal Sector Data
- Regular NSS surveys.
- Digital enumeration of small enterprises.
Productivity and Regional Data
- Stronger GSDP estimation by states.
Complementary Indicators
- HDI, GPI, Green GDP, multidimensional poverty index (MPI).
GDP remains a critical but incomplete indicator of India’s economic performance. While India has significantly improved its national accounts methodology—aligning with SNA 2008—the challenges of a fast-evolving, diverse, and partially informal economy continue to affect measurement accuracy. Strengthening data systems, regularly updating the base year, and supplementing GDP with broader welfare indicators are essential for informed policy-making and inclusive development.
Prelims MCQ
Q. Consider the following statements:
1. India’s GDP is calculated both at Factor Cost and Market Prices, but GDP at Factor Cost is the official headline GDP reported in national accounts.
2. Real GDP is calculated by adjusting nominal GDP for inflation using a GDP deflator.
3. The base year for GDP calculation in India is fixed permanently to avoid frequent revision and maintain consistency.
4. Gross Value Added (GVA) at Basic Prices measures sectoral output, while GDP at Market Prices is obtained by adding net taxes on products to GVA.
How many of the above statements are correct?
Mains Question
Q. GDP growth is a necessary but insufficient indicator of economic well-being. Discuss the methods of GDP measurement in India and critically evaluate their limitations in capturing the true picture of development.
