UPSC Mains Current Affairs for 8 June 2025

Urban Consumer Sentiment in India: RBI Survey Reflects Confidence and Optimism for the Future

June 8, 2025

Urban Consumer Confidence Survey Latest News

The Reserve Bank of India's latest Urban Consumer Confidence Survey (UCCS) shows that urban consumers maintain stable sentiments about the current economic situation.

Background

The Reserve Bank of India’s (RBI) latest Urban Consumer Confidence Survey (UCCS), conducted in May 2025, highlights a steady if cautious optimism among urban households.
While sentiments about the present remain subdued, expectations for the future are notably upbeat, particularly in terms of income, employment, and inflation control.

Overview of the Urban Consumer Confidence Survey

The UCCS is a bi-monthly exercise conducted by the RBI to capture household perceptions across major urban centres regarding economic conditions, employment, income, inflation, and spending.
As of May 2025, the survey collected insights from 6,090 respondents across 19 cities.
This round marks the first time the RBI formally renamed its Consumer Confidence Survey to the Urban Consumer Confidence Survey, separating it from the newly introduced Rural Consumer Confidence Survey.

Understanding the Indices: CSI and FEI

The two key metrics derived from the UCCS are:
- Current Situation Index (CSI): Measures how households perceive their present economic condition.
- Future Expectations Index (FEI): Gauges the optimism about the next 12 months in areas like income, employment, and price levels.
In May 2025, the CSI slightly declined from 95.5 in March to 95.4, staying below the benchmark of 100, indicating continued pessimism about current conditions.
However, the FEI increased from 122.4 in March to 123.4 in May, reflecting growing hope among consumers about future improvements.

Cooling Inflation and Rising Consumer Optimism

One of the survey’s most noteworthy findings is the decline in inflation concerns. Urban households reported a perceptible easing in the perception of current price levels and inflation.
A separate RBI inflation expectations survey supported this, revealing that urban households’ perceived current inflation dropped by 10 basis points to 7.7% in May. Expectations for inflation one year ahead also declined by 20 basis points to 9.5%.
This shift is significant as persistent inflation has long been a pain point for household budgets.
The RBI’s findings suggest that two consecutive rounds of reduced inflation concern may indicate a meaningful change in consumer perception and could support demand-side recovery in the near term.

Income, Employment, and Spending Trends

While current perceptions about income and employment remained largely unchanged from the March 2025 levels, optimism about future income remained high.
Urban consumers are looking forward to improved earnings, which in turn is expected to influence future spending behaviour.
There was a slight dip in current spending on both essential and non-essential goods.
However, this is counterbalanced by expectations of increased spending in the near future, reflecting a typical consumer behaviour pattern where positive economic expectations stimulate deferred purchases.

Comparison with Rural Sentiment

The newly launched Rural Consumer Confidence Survey conducted in April and May 2025 provides a comparative backdrop.
The rural CSI declined marginally from 100.1 to 100.0 but remains more optimistic than its urban counterpart. The rural FEI was even more upbeat at 126.2, reflecting growing optimism in rural India, buoyed by a favourable monsoon and easing food inflation.
This divergence in sentiment reveals a promising trend of broader-based recovery across both urban and rural sectors, albeit with nuanced variations driven by regional inflation sensitivity and employment contexts.

Policy Relevance and Economic Outlook

From a policy perspective, these findings provide useful insights for the RBI and the government.
Anchoring inflation expectations is crucial to ensuring macroeconomic stability, and the current trend indicates that the RBI’s monetary policy actions may be achieving their desired effect.
RBI Governor Sanjay Malhotra recently emphasized that “urban demand is improving while rural demand remains steady,” aligning well with the UCCS and rural survey outcomes.
The data underscores the importance of maintaining momentum on inflation control, employment generation, and income growth to reinforce consumer confidence across both demographics.

Urban Consumer Confidence Survey FAQs

Q1. What does the Urban Consumer Confidence Survey measure?

Ans. It measures urban households' perceptions about the current and future economic situation, including inflation, employment, and income.

Q2. What were the key findings of the May 2025 Urban Consumer Confidence Survey?

Ans. The survey showed stable present sentiment (CSI at 95.4) and improved future optimism (FEI at 123.4), with easing concerns over inflation.

Q3. How have inflation expectations changed in urban India?

Ans. Perceived current inflation dropped to 7.7% and one-year-ahead expectations fell to 9.5%, showing reduced inflationary pessimism.

Q4. What does a CSI or FEI value below or above 100 indicate?

Ans. A value below 100 reflects pessimism, while a value above 100 indicates optimism about the economic situation.

Q5. How does rural sentiment compare to urban sentiment?

Ans. Rural households are slightly more optimistic, with a CSI of 100.0 and a higher FEI of 126.2 in May 2025.

Source: IE | ET

How Chinese Dams May Affect the Brahmaputra’s Flow in India

June 8, 2025

Chinese Dams on Brahmaputra Latest News

Recently, Assam Chief Minister downplayed concerns over Chinese dams on the Brahmaputra, stating that 65–70% of the river’s flow originates within India. He added that any reduction in flow from China might even help control Assam’s annual floods.
Originating as the Yarlung Tsangpo in Tibet, the Brahmaputra enters India in Arunachal Pradesh as the Siang, flows through Assam, and becomes the Jamuna in Bangladesh

Proposed Chinese Interventions on the Brahmaputra

India continues to monitor China’s infrastructure projects along the Brahmaputra, most of which are hydropower-based with minimal water storage.
These are located far upstream and currently pose no significant impact on Arunachal Pradesh or Assam.

The Medog Hydropower Project: A Potential Game-Changer

The proposed 60,000-MW Medog project near the ‘Great Bend’ in Medog County is of major concern.
If built, it would be the world’s largest hydropower facility—three times the capacity of China’s Three Gorges Dam.
While specific details are scarce, it is believed to have limited water storage, reducing its potential downstream impact.

South-North Water Diversion (SNWD): Long-Term Speculations

China’s long-term SNWD plan, especially its Western Route, is rumored to include diversion of water from the Yarlung Tsangpo to arid northern regions.
However, there is no official confirmation or detailed study available on these diversion plans.

Water Yield of the Brahmaputra: India’s Dominant Contribution

Despite covering only 34.2% of the Brahmaputra basin, India contributes over 80% of its total water yield.
This disproves the perception that China’s Tibetan Plateau is the river’s primary source.

Climatic Differences Drive Yield Disparity

The Tibetan Plateau receives scant rainfall (around 300 mm annually), while India’s portion of the basin receives an average of 2,371 mm, with very few areas getting less than 1,200 mm.

Tributaries and Monsoon Boost Indian Contribution

The Brahmaputra gains volume through numerous tributaries in India, especially during the monsoon (June–September).
Snowmelt from the Indian Himalayas also adds significantly to the river’s yield.

Impact of Upstream Interventions on the Brahmaputra’s Flow

Due to substantial rainfall, monsoon-fed tributaries, and snowmelt in Indian territory, upstream interventions by China are unlikely to significantly reduce the Brahmaputra’s total flow in India.

Seasonal Flow Variations Pose Challenges

Changes in flow patterns may impact hydropower projects on the Siang, especially during the dry season or peak power demand periods.

Strategic Mitigation through Storage Projects

India can manage flow variability by building storage infrastructure.
Projects like the Upper Siang Hydropower Project can serve dual purposes—energy generation and flow regulation.

Risk of Sudden Flooding Events

Unexpected floods may result from reservoir mismanagement, dam failure, landslides, or seismic activity in Tibet, posing downstream risks.

Ecological Implications

Alterations in natural flow can affect river morphology, impacting aquatic ecosystems and biodiversity along the Brahmaputra.

India’s Utilisation of the Brahmaputra’s Water Potential

The Brahmaputra and its tributaries hold over 30% of India’s total water resources and 41% of its hydropower potential, according to the CWC-ISRO Brahmaputra Basin Atlas.

Hydropower Development Focused in Arunachal Pradesh

Arunachal Pradesh remains the primary site for hydropower development.
However, progress has been slow due to land acquisition issues and concerns over forest submergence.

Inter-Basin Water Transfer Proposals

India has proposed two major river-linking projects to transfer Brahmaputra basin water to water-scarce regions of the Ganga basin:
- Manas-Sankosh-Teesta-Ganga Link
- Jogighopa-Teesta-Farakka Link

No Major Threat from Upstream Chinese Projects

These proposed water transfer links are unlikely to be significantly affected by China’s upstream interventions in Tibet.

Impact of Chinese Dams on the Indus and Sutlej Rivers

China has constructed and planned hydropower projects on the Sutlej and Indus, both of which originate in Tibet.

Limited Impact on Sutlej Due to Indian Storage Capacity

The Bhakra Dam (Gobind Sagar reservoir) in Himachal Pradesh provides a buffer, absorbing flow variations in the Sutlej.
However, generation patterns at projects like Nathpa Jhakri may still be affected.

Minimal Consumptive Use on the Indus

India's use of the Indus is largely non-consumptive.
While there may be minor impacts on run-of-the-river plants like Nimoo Bazgo in Ladakh, overall risks remain limited.

India’s Strategic Approach on the Brahmaputra Issue

Strengthen Scientific Assessment and Monitoring
- India must invest in detailed, multi-disciplinary studies to evaluate the impact of upstream interventions and develop adaptive, evidence-based strategies.
Enhance Diplomatic Engagement
- Continuous diplomatic efforts are needed to secure hydrological and project-specific data from China for informed downstream impact assessments.
Establish Robust Data-Sharing Mechanisms
- India should push for formal data-sharing protocols with China to ensure early warnings, improve disaster preparedness, and reduce flood-related risks.

Chinese Dams on Brahmaputra FAQ’s

Q1. Where do Chinese dams affect Brahmaputra?

Ans. China’s dams are upstream in Tibet with limited storage; most pose minimal direct impact on Indian territory for now.

Q2. What is the Medog Dam project?

Ans. It’s a proposed 60,000-MW project near the Great Bend, potentially the world’s largest hydropower dam.

Q3. How much of Brahmaputra’s flow comes from India?

Ans. Over 80% of the river’s yield comes from Indian territory, despite only 34.2% of basin area lying in India.

Q4. What risks do Chinese dams pose to India?

Ans. They could affect flow patterns, flood risks, and ecology; dam failure or mismanagement may cause sudden flooding downstream.

Q5. How is India responding?

Ans. India plans strategic storage projects, like Upper Siang, and seeks data-sharing agreements with China for better preparedness.

Source: IE | GoA

Government Eases Procurement Norms for Research Labs

June 8, 2025

Boosting Scientific Research in India Latest News

In a significant policy shift to promote ease of doing research in India, the Government has amended the General Financial Rules (GFR) to increase procurement limits for scientific institutions.
This reform is aimed at reducing procedural delays, enhancing autonomy, and accelerating innovation.

Key Amendments in GFR Related to Research Procurement

Increased procurement limits without quotation:
- Earlier limit: ₹1 lakh
- Revised limit: ₹2 lakh
- Applicability: Scientific instruments and consumables used for research.
- Benefit: Faster and simpler procurement for smaller purchases.
Purchase committee empowered further:
- Earlier limit for procuring goods: ₹10 lakh
- Revised limit: ₹25 lakh
- Significance: Greater flexibility and quicker decision-making at institutional level.
Enhancement in limited tender enquiry (LTE) and advertised tender enquiry:
- The financial limits for procuring goods using the LTE and advertised tender enquiry have been increased to ₹1 crore from the existing ₹50 lakh.
- Impact: Facilitates smoother medium-scale procurement processes.
Approval powers for global tender enquiry:
- Vice Chancellors and directors have been designated as competent authorities to approve the issuance of a global tender enquiry up to ₹200 crore.
- Condition: Procurement must be exclusively for scientific research purposes.

Other Key Reform Measures Announced

Exemption from Government e-Marketplace (GEM):
- Previous rule: Mandatory procurement through GEM, prioritising the cheapest available Made-in-India options.
- Problem: Scientists reported quality issues and delays due to lack of customisation and limited high-grade scientific vendors on GEM.
- Revised rule: Directors, Vice-Chancellors, and Chancellors now permitted non-GEM procurement for scientific equipment and consumables.
Enhanced procurement autonomy for research heads: Institute heads regain pre-GEM level autonomy in selecting vendors and managing purchases. Seen as a restoration of trust in institutional judgment.

Strategic Objective Behind the Amendments

Promote ease of doing research: By simplifying research procedures.
Reduce bureaucratic delays: Simplified GFR norms reduce red tape and administrative delays in the procurement process.
Encourage autonomy and innovation: Institutions gain more financial freedom to prioritize research goals without being hindered by restrictive financial ceilings.
Supports objectives of Atmanirbhar Bharat: By enabling domestic institutions to access world-class tools.

Wider Applicability Across Scientific Sectors

Departments benefiting from revised GFR:
- Department of Science and Technology (DST)
- Department of Biotechnology (DBT)
- Council of Scientific and Industrial Research (CSIR)
- Department of Atomic Energy (DAE)
- Department of Space, etc.
Institutions benefited:
- Defence Research and Development Organisation (DRDO)
- Indian Council of Medical Research (ICMR)
- Indian Council of Agricultural Research (ICAR)
- Universities and Educational Institutions conducting PG and doctoral research

Conclusion

The revised General Financial Rules (GFR) mark a progressive policy move to empower India's scientific community, streamline procurement processes, and catalyze indigenous innovation across strategic sectors like defence, space, health, and education.
These steps are aligned with India’s broader vision of becoming a global leader in science and technology.

Boosting Scientific Research in India FAQs

Q1. What is the primary objective behind the recent amendments to the General Financial Rules (GFR) concerning research procurement?

Ans. The amendments aim to promote ease of doing research by reducing delays, enhancing institutional autonomy, and accelerating innovation in scientific institutions.

Q2. What are the revised financial limits for procurement without quotation and through the Purchase Committee under the new GFR norms?

Ans. The limit without quotation has been increased from ₹1 lakh to ₹2 lakh, and the Purchase Committee limit has been raised from ₹10 lakh to ₹25 lakh.

Q3. Which authorities have been empowered to approve global tender enquiries up to ₹200 crore, and for what purpose?

Ans. Vice Chancellors and Directors of research institutions can now approve global tender enquiries up to ₹200 crore exclusively for procuring scientific equipment and consumables for research.

Q4. Name at least three scientific or research institutions that will benefit from the revised GFR provisions.

Ans. DRDO, ICMR, and ICAR, along with universities conducting postgraduate and doctoral research, will benefit from the revised norms.

Q5. How do the amended GFR rules align with India’s broader goals in science and technology policy?

Ans. The reforms support India’s aim to become a global scientific leader by fostering an ecosystem of innovation, autonomy, and efficient resource utilization.

Source: TH

Census 2026–27 May Trigger NPR and NRC Rollout

June 8, 2025

National Population Register (NPR) Latest News

The Census, scheduled in two phases during 2026 and 2027, will enable delimitation, implementation of the Women’s Reservation Bill.
It will also facilitate updates to the National Population Register (NPR), potentially laying the groundwork for a nationwide National Register of Citizens (NRC) exercise.

Census 2026–27: Implications Beyond Population Count

Census to Enable Key Constitutional Exercises
- The upcoming Census, scheduled in two phases across 2026 and 2027, is expected to facilitate the delimitation of constituencies and the implementation of the Women’s Reservation Bill.
NPR Update Likely During House Listing Phase
- Sources indicate that the National Population Register (NPR) will likely be updated during the house listing phase, but a decision on advancing to a nationwide National Register of Citizens (NRC) is pending.
NPR-NRC: Politically Sensitive Terrain
- The NPR-NRC issue triggered nationwide protests following the Citizenship Amendment Act (CAA) in 2019.
- In 2020, 10 states and two Union Territories passed Assembly resolutions opposing the NPR and NRC.
No Official Mention in Latest Announcement
- While the government’s latest Census announcement is silent on NPR and NRC, both were approved by the Cabinet in 2019 with an allocated budget of nearly ₹4,000 crore.
- The exercise was deferred due to the pandemic.

Legal Framework Governing NPR and NRC

NPR as a Legal Precursor to NRC
- The National Population Register (NPR) is governed by the Citizenship (Registration of Citizens and Issue of National Identity Cards) Rules, 2003, framed under Section 18 of the Citizenship Act, 1955.
- NPR serves as the foundation for preparing the National Register of Citizens (NRC).
Rules Define Process and Authority
- Rule 3(4): The Centre can order the preparation of the Population Register.
- Rule 3(5): NRC will be based on verified NPR data.
- Rule 4(4): People with doubtful citizenship are to be flagged and informed during verification.
- Rule 7 & 17: Heads of families must provide accurate data or face a fine of up to ₹1,000.
NPR and NRC History
- NPR data was first collected in 2010 and updated in 2015.
- Though the Modi government later prioritised Aadhaar for welfare delivery, NPR was revived in 2019 by the Registrar General of India (RGI), who also digitised the 2015 data.
Political Backdrop and Public Anxiety
- The NPR revival coincided with nationwide protests against the Citizenship Amendment Act (CAA) and fears of a nationwide NRC, especially after the exclusion of 19 lakh people in Assam's NRC.
- Statements by Union Home Minister Amit Shah linking CAA and NRC increased public concern.
- Later, PM Modi and the MHA clarified that no decision on NRC had been taken.
Legal Basis for NRC in the Citizenship Act
- The 2003 amendment to the Citizenship Act inserted Section 14A, empowering the Central Government to compulsorily register every Indian citizen and issue a national identity card.
- It also designated the Registrar General of India as the National Registration Authority.

National Population Register (NPR) FAQs

Q1. What is the NPR?

Ans. NPR is a registry of usual residents, forming the foundation for NRC under the Citizenship Rules, 2003.

Q2. How is the NRC related to NPR?

Ans. The NRC is built from NPR data after verification and marks individuals with doubtful citizenship for further scrutiny.

Q3. Why is the NPR controversial?

Ans. It gained attention post-CAA 2019, sparking protests over fears of exclusion and concerns about citizenship verification.

Q4. When was NPR last updated?

Ans. NPR was last updated in 2015; its revival began in 2019 but was postponed due to the COVID-19 pandemic.

Q5. Is NRC currently being implemented?

Ans. No, the government has not officially decided on a nationwide NRC, despite prior statements suggesting future implementation.

Source: IE