UPSC Mains Current Affairs for 2 August 2025

Digital Firms Raise Alarm Over Mobile Number Validation Rules in India

August 2, 2025

Digital Firms Latest News

Digital firms have raised concerns over India's draft Telecom Cyber Security Rules, 2025, citing jurisdictional overreach and high compliance costs due to proposed mobile number validation requirements.

Introduction

India’s digital economy may soon face new compliance burdens due to a draft rule under the Telecommunications (Telecom Cyber Security) Amendment Rules, 2025.
Proposed by the Department of Telecommunications (DoT), the new framework mandates mobile number validation to ensure subscribers are legitimate users.
While intended to strengthen cyber security, the rule has sparked serious concerns among tech companies about its legal scope, cost implications, and regulatory overreach.

Scope of the Draft Telecom Cyber Security Rules, 2025

The draft rule introduces the concept of a Telecommunication Identifier User Entity (TIUE), defined broadly as any person or entity (excluding licensed telecom operators) that uses telecom identifiers like mobile numbers for delivering services or identifying users.
This wide definition has triggered alarm among digital firms, as it could include virtually every online platform, from fintech and social media to e-commerce and ride-hailing services.
The proposed framework enables telecom operators to charge up to Rs 3 per validation request, providing confirmation of the subscriber’s legal identity linked to a mobile number.

Industry Concerns on Jurisdiction and Regulatory Overreach

The Internet and Mobile Association of India (IAMAI), representing global players like Google, Apple, and Amazon, has called the move a case of legislative overreach.
In its submission to the DoT, IAMAI argued that the draft rules extend telecom-style regulation to entities that neither provide telecom services nor control telecom infrastructure.
The association warned that this expansion of regulatory authority could have widespread consequences for digital service providers, especially in sectors such as:
- Fintech and digital payments
- Mobility and e-commerce platforms
- OTT content providers and social media
- Micro, Small and Medium Enterprises (MSMEs)
IAMAI emphasised that such rules were not envisioned under the Telecommunications Act, 2023, making their extension to unrelated sectors legally questionable.

Financial Burden and Operational Disruption

Although Rs 3 per mobile verification may seem nominal, IAMAI warned that it would add up quickly for platforms handling millions of users.
For startups and MSMEs, these recurring costs could reshape business models or compel platforms to pass the burden onto consumers via price hikes or service restrictions.
CUTS International, a policy think tank, echoed these concerns.
It noted in its regulatory impact assessment that the net benefit of the draft rules could be negative, especially when alternative cybersecurity initiatives are already underway.
CUTS advised the government to focus on streamlining existing cyber safety frameworks rather than introducing fragmented and potentially burdensome mechanisms.

Potential for Mandatory Enforcement in Specific Sectors

While the DoT has hinted that the validation framework may remain optional for private entities, the draft language leaves room for later mandatory adoption.
Experts pointed out that the vagueness around implementation adds to business uncertainty.
Legal analysts questioned whether the DoT even had the authority to mandate such rules across non-telecom sectors, suggesting that the proposal may violate the separation of regulatory domains.

The Broader Debate on Digital Regulation in India

This controversy comes amid a larger push by the Indian government to tighten digital security through legislation. Recent moves like:
- The Digital Personal Data Protection Act, 2023
- The Digital India Act (in draft stage)
- Expanded roles for CERT-In and the MeitY
reflect an assertive approach to securing India’s growing digital landscape.
However, concerns about regulatory overlap, business costs, and innovation slowdowns are increasingly surfacing.
As India aims to be a global digital innovation hub, the challenge lies in balancing national security objectives with ease of doing business, especially for small tech enterprises and startups.

Source : TH

Digital Firms FAQs

Q1: What is the purpose of the draft Telecom Cyber Security Rules, 2025?

Ans: The rules aim to validate mobile numbers' lawful ownership to enhance telecom cybersecurity.

Q2: Who would be affected by the new mobile validation rules?

Ans: Any digital platform using mobile numbers for user services, including fintech and e-commerce, may fall under its scope.

Q3: What is the main concern raised by digital companies?

Ans: Firms argue that the rules represent jurisdictional overreach and could significantly increase operational costs.

Q4: Will the validation framework be mandatory for private platforms?

Ans: While optional for now, the draft allows future enforcement in specific sectors.

Q5: How much would telecom operators charge per mobile number validation?

Ans: The proposed charge is up to ₹3 per validation request.

India’s Economic Growth vs Trump’s “Dead Economy” Remark: The Reality Check

August 2, 2025

India's Economic Growth Latest News

U.S. President Donald Trump's remarks calling India a “dead economy” and announcing a 25% tariff, along with penalties for India’s military and energy purchases from Russia, have ignited a political exchange in India.
Opposition leaders agreed with Trump’s criticism, blaming the government for “killing” India’s economy.
On the other hand, the govt defended India’s economic performance, highlighting its rise from the “fragile five” to one of the world’s top five economies.

Data Contradicts Trump’s Dead Economy Remark on India

Contrary to U.S. President Donald Trump’s claim of India being a “dead economy,” data from the International Monetary Fund (IMF) over the past 30 years presents a starkly different picture.
From 1995 to 2025, India’s GDP has grown nearly 12 times, ranking it among the fastest-growing major economies, second only to China.
In comparison, the U.S. economy has grown fourfold, while key allies like the United Kingdom and Germany have expanded by less than three times and less than two times, respectively.
Notably, Japan’s GDP in 2025 is lower than its 1995 level, reflecting economic stagnation.
The data underscores that India and even Russia, despite facing challenges, have exhibited robust economic growth, debunking the narrative of them being “dead” economies.

India Among Few Economies Growing Faster Than the U.S.

When comparing economic growth relative to the U.S., only three countries—China, India, and Russia—have expanded their share of the global economy over the past 30 years.
India, which was less than 5% the size of the U.S. economy in 1995, has grown to nearly 14% by 2025.
In contrast, America's traditional allies and trade partners, including the United Kingdom, Germany, and Japan, have all seen their economies shrink in size relative to the U.S.
This highlights India’s impressive economic ascent, defying claims of being a “dead” economy.

India’s Economic Growth Masks Deep-Rooted Structural Challenges

While India is far from being a “dead” economy, its robust GDP growth conceals several persistent structural issues.
Since 2011-12, India’s growth rate has slowed, failing to replicate the 8-9% surge seen before the 2008 global financial crisis, with recent years hovering around 6%.
Unlike China’s rapid expansion, India’s GDP has grown at a much slower pace.
In global trade, India holds a modest 1.8% share in goods exports and 4.5% in services.
The economy remains protectionist in sectors like agriculture, which is plagued by distress and subsistence-level farming due to the failure of manufacturing to absorb surplus rural labour.
Manufacturing growth has lagged behind agriculture since 2019-20.
Additionally, economic growth has been highly unequal, with 24% of the population still below the poverty line and alarming rises in income inequality.
Human development indicators, particularly in health, education, and employment quality, remain poor.
High-skilled unemployment and low female workforce participation further highlight deep-rooted socio-economic challenges that need urgent attention.

Source: IE

India's Economic Growth FAQs

Q1: How has India’s economy performed over the past 30 years?

Ans: India’s GDP has expanded nearly 12 times, ranking as one of the fastest-growing major economies globally.

Q2: Which countries have grown faster than the U.S. since 1995?

Ans: Only China, India, and Russia have increased their global economic share relative to the U.S.

Q3: What are the key structural challenges in India’s economy?

Ans: Sluggish manufacturing growth, rural distress, widening inequality, high-skilled unemployment, and poor human development indicators.

Q4: How does India’s trade performance compare globally?

Ans: India holds just 1.8% share in global goods exports and 4.5% in services, highlighting competitiveness issues.

Q5: Is India’s economic growth inclusive and equitable?

Ans: No, growth has been skewed, with rising poverty, inequality, and low-quality employment, especially for women and youth.

India’s Apparel Exporters Seek Government Relief as U.S. Tariffs Hurt Competitiveness

August 2, 2025

Indian Apparel Exporters Latest News

Domestic apparel exporters have raised serious concerns over the United States’ decision to impose a 25 per cent tariff on Indian textile and apparel products.
This rate is significantly higher than that imposed on key competitors like Bangladesh (20%), Vietnam (20%), Indonesia (19%), and Cambodia (19%).
The new tariffs, set to take effect from August 7, have left Indian exporters at a severe disadvantage in their largest export market.

Indian Apparel Exporters Seek Urgent Government Support

With the U.S. imposing a steep 25% tariff on Indian apparel, Indian textile and apparel exporters have raised alarm over their diminishing competitiveness in the U.S. market.
The new tariffs are expected to severely impact India’s export margins, forcing manufacturers to sell below cost to sustain operations and avoid mass layoffs.
Industry experts have called for immediate government intervention to offset this setback.
They warned that the duty disadvantage will further compound existing challenges faced by Indian exporters.
They urged the government to ensure easier access to raw materials and support measures to mitigate the adverse impact of these tariffs on India’s textile and apparel sector.

India’s Apparel Market Share in U.S. on the Rise Despite Challenges

While China remains the largest exporter of textiles and apparel to the U.S., its market share has declined from 27.4% in 2020 to 21.9% in 2024.
In contrast, India’s share in the U.S. garment import market has grown from 4.5% to 5.8% during the same period.
The U.S. is a crucial market for India’s Ready-Made Garments (RMG), accounting for 33% of India’s total garment exports in 2024.
India currently ranks as the fourth-largest RMG exporter to the U.S. Among India’s top exports to the U.S. are cotton T-shirts (9.71% share), women’s or girls’ cotton dresses (6.52%), and babies’ cotton garments (5.46%).
These products command a significant share in the U.S.’s total imports of these items globally, reflecting India’s steadily growing footprint in a competitive market.

Government Measures to Boost Textile Exports

India's textile and handicrafts exports grew by 5% in FY25, reaching $37.7 billion compared to $35.8 billion in the previous fiscal year, according to the Ministry of Textiles.
To further strengthen the sector, the government is implementing the Scheme for Integrated Textile Park (SITP) to develop world-class infrastructure in textile hubs across the country.
Additionally, the government has finalized the establishment of seven PM Mega Integrated Textile Region and Apparel (PM-MITRA) parks in Tamil Nadu, Telangana, Gujarat, Karnataka, Madhya Pradesh, Uttar Pradesh, and Maharashtra.
These parks, with a total outlay of ₹4,445 crore, aim to enhance India's textile manufacturing ecosystem over the next seven years, up to 2027-28.

India-U.S. Trade Talks Stalled Over Agriculture and GM Crop Imports

India-U.S. trade negotiations are facing a deadlock over sensitive sectors like agriculture and automobiles, with discussions expected to resume after mid-August.
A major sticking point is the U.S. demand for India to allow imports of genetically modified (GM) agricultural products such as corn and soya, which India is unlikely to accept.
Agriculture has long been a contentious issue in bilateral trade relations, with the United States Trade Representative (USTR) previously criticizing restrictions on GM products by other countries as discriminatory.
This ongoing impasse continues to hinder progress on a broader trade agreement.

Source: IE

Indian Apparel Export FAQs

Q1: Why are Indian apparel exporters seeking government support?

Ans: Due to the U.S. imposing a 25% tariff, making Indian products costlier than competitors like Bangladesh and Vietnam.

Q2: How has India’s apparel market share in the U.S. changed?

Ans: India’s share rose from 4.5% in 2020 to 5.8% in 2024, despite global challenges.

Q3: What government initiatives aim to support India’s textile sector?

Ans: Schemes like SITP and PM-MITRA parks are enhancing infrastructure and boosting India’s textile manufacturing competitiveness.

Q4: What is hindering India-U.S. trade negotiations currently?

Ans: Talks are stalled over U.S. demands for India to accept genetically modified (GM) agricultural product imports.

Q5: What products form the bulk of India’s garment exports to the U.S.?

Ans: Cotton T-shirts, women’s cotton dresses, and babies’ garments are India’s top export items to the U.S. market.