UPSC Mains Current Affairs for 4 October 2025

India to Mandate AVAS in EVs from 2026 for Safer Roads

October 4, 2025

Acoustic Vehicle Alerting System Latest News

The Ministry of Road Transport and Highways (MoRTH) has proposed mandatory Acoustic Vehicle Alerting Systems (AVAS) in electric cars, buses, and trucks to curb road accidents.
AVAS will generate artificial sound when EVs move at 0–20 kmph, alerting pedestrians and other road users to their presence.
As per the draft notification, all new EV models manufactured after October 1, 2026, must be fitted with AVAS, while existing models must comply by October 1, 2027.
The move addresses safety concerns caused by the near-silent operation of EVs at low speeds, ensuring better audibility and reducing accident risks.

Acoustic Vehicle Alerting System (AVAS)

AVAS is a safety feature designed to generate an audible warning sound for electric and hybrid vehicles, which are often nearly silent when operating at low speeds.
It's intended to alert pedestrians, cyclists, and other vulnerable road users to the vehicle's presence, helping to prevent accidents.

Working of AVAS

AVAS operates automatically based on the vehicle's driving condition:
- Activation
  - The system is typically mandated to activate when the vehicle is moving at low speeds, generally from startup up to a threshold like 20 km/h (about 12 mph) or 30 km/h depending on the specific regulations.
  - It also usually activates when the vehicle is in reverse gear, regardless of speed.
- Sound Generation
  - The AVAS uses an external speaker (often mounted beneath the bodywork) to generate an artificial, continuous sound.
  - This sound is usually designed to resemble that of a conventional internal combustion engine vehicle or a distinct, recognizable warning signal.
- Speed Synchronization
  - The system is connected to the vehicle's electronic control unit (ECU) or CAN-Bus to get real-time data on speed and gear.
  - The pitch (frequency) and sometimes the volume of the generated sound automatically vary in proportion to the vehicle's speed.
  - This change in characteristic helps pedestrians to perceive the vehicle's acceleration, deceleration, and distance.
- Deactivation
  - When the vehicle exceeds the low-speed threshold (e.g., above 20 km/h or 30 km/h), the AVAS typically deactivates.
  - At higher speeds, the natural noise generated by the vehicle's tires on the road and aerodynamic drag becomes sufficiently loud to alert other road users.

Why India Needs Acoustic Alert Systems in EVs

Electric vehicles (EVs) running below 20 kmph produce minimal sound, making them harder to detect and raising the risk of accidents, especially for pedestrians and cyclists.
To address this safety gap, the MoRTH has proposed Acoustic Vehicle Alerting Systems (AVAS), which will generate sound to warn road users of an approaching EV.
The move comes amid a rapid surge in EV adoption.
According to MoRTH’s e-Vahan portal, 19.5 lakh EVs were sold in 2024, accounting for 7.44% of all vehicles sold that year.
India’s EV share has grown from just 0.01% in 2014-15 to 7.31% in 2024-25, with over 56.75 lakh EVs registered by February 2025.
The government sees AVAS as crucial, especially since EV penetration is expanding beyond metros into suburbs and small colonies, driven by the popularity of e-rickshaws and two- and three-wheelers for last-mile connectivity.

AVAS Rules Exclude Two- and Three-Wheelers for Now

The draft notification on Acoustic Vehicle Alerting Systems (AVAS) currently applies only to electric cars, buses, and trucks — not to two-wheelers, three-wheelers, e-rickshaws, or e-carts.
Analysts, however, caution that excluding these vehicles, which often operate in congested urban and suburban areas, could raise accident risks.
While EVs generate tyre noise at speeds above 20 kmph, they remain nearly silent below this threshold.
Experts suggest AVAS should cover all categories of EVs, as seen in countries like the US and Japan, to ensure comprehensive road safety.

Source: IE | ToI

AVAS FAQs

Q1: What is AVAS in electric vehicles?

Ans: AVAS is a sound-emitting safety device that alerts pedestrians and road users when EVs move silently at speeds below 20 kmph.

Q2: When will AVAS become mandatory in India?

Ans: All new electric cars, buses, and trucks must have AVAS from October 1, 2026, while existing models must comply by October 1, 2027.

Q3: Why does India need AVAS for EVs?

Ans: Since EVs are nearly silent at low speeds, AVAS reduces accident risks by alerting pedestrians, cyclists, and other vulnerable road users.

Q4: Are two- and three-wheelers included in AVAS rules?

Ans: Not yet. The draft mandates AVAS only for electric cars, buses, and trucks, though experts urge inclusion of two- and three-wheelers for safety.

Q5: How does AVAS work in EVs?

Ans: AVAS uses external speakers linked to the vehicle’s ECU to emit artificial sounds, which change with speed, making EVs more audible to pedestrians.

NITI Aayog Proposes Presumptive Taxation for Foreign Companies

October 4, 2025

Presumptive Taxation Latest News

NITI Aayog has proposed an optional presumptive taxation regime for foreign companies to reduce tax disputes, simplify compliance, and attract greater foreign direct investment into India.

Introduction

India has emerged as one of the most attractive investment destinations in the world, with cumulative foreign direct investment (FDI) inflows crossing USD 1 trillion between April 2000 and March 2025.
However, persistent taxation disputes, particularly around Permanent Establishment (PE) rules and profit attribution, have been a recurring concern for multinational companies.
To address these issues, NITI Aayog has proposed an optional presumptive taxation regime for foreign companies, aiming to reduce litigation, improve compliance, and encourage higher FDI inflows.

Understanding Presumptive Taxation

Presumptive taxation is a simplified tax regime where taxable income is calculated as a fixed percentage of gross revenue, rather than through detailed accounting.
This mechanism reduces the compliance burden, avoids prolonged disputes, and provides certainty to businesses.
India already uses presumptive taxation in limited sectors such as:
- Electronics manufacturing services: 25% of gross payments are deemed as profit.
- Non-resident cruise operators: 20% of gross receipts deemed as profit.
NITI Aayog’s proposal seeks to extend this principle across sectors, particularly those involving digital services, technology, and offshore supply, where disputes are more common.

Key Features of NITI Aayog’s Proposal

The proposed presumptive tax system introduces several reforms designed to simplify taxation for foreign companies:
- Optional Participation - Foreign companies may choose between the presumptive regime and continue under the regular tax framework.
- Sector-Specific Rates - Profit attribution percentages would vary across industries, ranging between 5% and 30%. For example, in technology, 5% of offshore supply and 20% of onshore services could be deemed profitable.
- Safe Harbour Protection - Companies opting for presumptive taxation would not face litigation over the existence of a PE for those activities.
- Reduced Compliance Burden - Firms would not need to maintain exhaustive local books or undergo prolonged audits.
- Flexibility - Companies could revert to the regular regime if their actual profit is lower than the presumptive rate.

Rationale Behind the Proposal

Tackling PE and Profit Attribution Disputes
- Determining whether a foreign company has a Permanent Establishment in India has often been subjective, especially in the digital economy. Disputes on profit attribution can last 6-12 years, increasing costs for businesses. A presumptive taxation regime provides certainty and sidesteps prolonged litigation.
Aligning with Global Practices
- The proposal suggests codifying PE and profit attribution rules in domestic law while aligning them with OECD and UN tax models. This ensures India remains internationally competitive while protecting its source-based taxing rights.
Enhancing FDI and Ease of Doing Business
- By offering clarity, predictability, and a reduced compliance burden, the regime is expected to attract higher-quality FDI, particularly in digital and service-based industries.

Industry Reactions

Experts say that the scheme provides a clear path forward by eliminating ambiguities around PEs, reducing disputes, and lowering the costs of doing business.
Also, sector-specific benchmarks allow businesses to plan operations efficiently, offering both clarity and reduced litigation risks.

Challenges in Implementation

Revenue Concerns - The government must ensure that the regime does not lead to significant revenue leakage.
Sector-Specific Rates - Determining fair presumptive percentages for multiple industries will be complex.
Centre–State Coordination - While direct taxes fall under the Centre, some coordination with states will be required.
Data Privacy Issues - Safe harbour provisions may raise concerns about handling corporate financial data.

Way Forward

The NITI Aayog report recommends a multi-pronged approach, including:
- Expanding Advance Pricing Agreements (APA) and Mutual Agreement Procedures (MAPs) for quicker dispute resolution.
- Establishing a formal consultation framework with industry bodies before major tax reforms.
- Considering binding arbitration for international disputes.
The Finance Ministry is expected to examine the proposal and may include it in future budgetary reforms, potentially constituting a working group to draft provisions and consult stakeholders.

Source : FE | BS

Presumptive Taxation FAQs

Q1: What is presumptive taxation?

Ans: It is a simplified tax regime where a fixed percentage of gross revenue is deemed as profit, reducing compliance and litigation.

Q2: Why has NITI Aayog proposed presumptive taxation for foreign companies?

Ans: To address disputes on Permanent Establishment and profit attribution, while attracting more foreign investment.

Q3: What range of profit attribution has been suggested under the new proposal?

Ans: Between 5% and 30% of gross revenues, depending on the sector.

Q4: How will foreign companies benefit from this regime?

Ans: They will gain safe harbour protection, reduced compliance costs, and greater tax certainty.

Q5: What challenges does the proposal face?

Ans: Concerns include revenue protection, sector-specific rate determination, Centre–State coordination, and data privacy.

India’s IIAS Presidency – Proposal to Introduce an International Governance Index

October 4, 2025

India’s IIAS Presidency Latest News

India, as the current president of the International Institute of Administrative Sciences (IIAS), has proposed the development of a new International Governance Index.
This initiative comes amid India’s declining rankings in several existing global indices, which the government has often criticized for being perception-based and lacking transparency.

International Institute of Administrative Sciences (IIAS)

About:
- The IIAS is an international non-profit organization created in 1930.
- It is a Federation of 31 Member Countries (including India, Japan, China, Germany and Saudi Arabia), 20 National Sections and 15 Academic Research Centres jointly collaborating for scientific research on public administration.
Working relationship with the UN: While the Brussels (Belgium)-based IIAS is not a formally affiliated body of the UN, it actively engages with the UN’s work in public administration.
India’s participation: The Department of Administrative Reforms and Public Grievances (DARPG) represents India as a Member State of the IIAS since 1998.

India’s IIAS Presidency

Many firsts: This is the first time in the history of IIAS that the election to the post of President was held by ballot process and it is the first time that India has secured the historic mandate for the Presidency (for 2025-2028) of the IIAS.
DARPG involvement: It is spearheading the proposal, with IIAS President V. Srinivas highlighting the agenda for strengthening scientific strategy in governance measurement.

Key Developments

Proposal of International Governance Index:
- Plans to leverage existing frameworks of the World Bank (WB), OECD (Organisation for Economic Cooperation and Development) and UN DESA (United Nations Department of Economic and Social Affairs).
- A working group will be formed, and the agenda will be part of the IIAS Annual Conference 2026.
India’s criticism of existing indices:
- In its reports, the Varieties of Democracy (V-Dem) Institute of the University of Gothenburg, Sweden, has listed India as an electoral autocracy since 2017. The latest report (2025) ranked India 100 out of 179 countries.
- Freedom in the World Index and EIU Democracy Index placed India at levels comparable to the emergency period.
- Economic Advisory Council to PM (2022) highlighted lack of transparency in methodologies.
World Governance Indicators (WGI):
- It covers over 200 economies with 6 parameters - voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, and control of corruption.
- The 2023 WGI gives India the percentile rank of -
  - 51.47 for voice and accountability;
  - 21.33 for political stability;
  - 67.92 for government effectiveness;
  - 47.17 for regulatory quality;
  - 56.13 for rule of law and
  - 41.51 for control of corruption.

Concerns with Current Global Indices

Subjectivity: Reliance on perception-based data and expert opinions without adequate on-ground presence.
Transparency issues: Unclear weighting in credit rating agency assessments.
Bias: Concentration of assessment by Western institutions, raising questions of contextual accuracy.

India’s Strategic Objectives

Rebalancing narratives: Challenge dominance of Western-centric governance assessments.
Bridging North-South divide: Promote inclusivity and balanced representation of developing nations.
Governance reform agenda: Align with the Indian government’s vision of “maximum governance, minimum government.”

Way Forward

Establishing methodology: Ensure evidence-based, transparent, and inclusive metrics for governance.
International collaboration: Engage with global bodies (World Bank, OECD, UN DESA) for credibility.
Strengthening domestic research: Encourage Indian think tanks to develop independent indices.
Promoting inclusivity: Incorporate perspectives from both developed and developing nations.

Conclusion

India’s proposal for an International Governance Index under its IIAS presidency reflects its bid to shape global governance discourse and reduce dependence on Western perception-based indices.
If implemented effectively, this initiative could strengthen transparency, inclusivity, and credibility in global governance rankings, providing a balanced platform for both developed and developing countries.

Source: IE

India’s IIAS Presidency FAQs

Q1: Why has India proposed the creation of a new International Governance Index under its presidency of IIAS?

Ans: To counter the dominance of perception-based global indices that portray India negatively and to establish a transparent global governance assessment framework.

Q2: What criticisms has India raised against existing governance indices?

Ans: India has argued that these indices carry Western bias, and influence credit ratings without contextual accuracy.

Q3: What is the significance of India’s presidency of the IIAS?

Ans: It provides India an opportunity to advance inclusive governance research, bridge the North-South divide, etc.

Q4: What parameters are covered under the World Governance Indicators (WGI)?

Ans: WGI covers six parameters—voice & accountability, political stability, government effectiveness, etc. India shows mixed performance with high effectiveness but low political stability.

Q5: How can developing nations benefit from India’s initiative of proposing an International Governance Index?

Ans: It could provide balanced representation, reduce Western institutional monopoly, and ensure more inclusive and context-sensitive governance assessments.

Decline of Maoist Movement in India: Six Decades of Insurgency Nears End

October 4, 2025

Maoist Insurgency Latest News

Nearly six decades after the Naxalbari uprising, India’s Maoist insurgency is witnessing deep internal rifts and sustained government pressure.
Union Home Minister Amit Shah has pledged to end the insurgency by March next year, intensifying state action.
Amid this backdrop, CPI (Maoist) ideological head Mallojula Venugopal Rao has twice urged the group to consider ending armed struggle to save the party.
While Rao insists he has support from senior cadres and grassroots members, other leaders strongly rejected his stance, reaffirming commitment to armed rebellion.
The contrasting positions highlight a weakening movement at odds over whether to persist with armed conflict or adapt to survive.

Decline of the Maoist Movement

The Maoist movement has been severely weakened by continuous operations of central armed forces and elite state police units.
Top leaders like former General Secretary Nambala Keshav Rao (Basvaraj) and several Central Committee members have been killed this year, alongside many cadres.
Maoist strongholds are now restricted to small pockets in Bastar, Dandakaranya, and the Chhattisgarh-Telangana border, with dwindling supplies of arms and ammunition.

Shrinking Recruitment Base

Recruitment challenges have deepened the crisis. Non-tribal recruits disappeared over a decade ago, and even tribal youth today are reluctant to join.
The growing impact of government welfare schemes, free education, and digital connectivity has reduced the appeal of the Maoist cause.
Young people, exposed to modern opportunities, are disinterested in the harsh, uncertain life of a guerrilla fighter.

Aging Leadership and Surrenders

Most surviving Maoist leaders are now elderly and battling serious illnesses.
Many find surrendering attractive, given the government’s rehabilitation packages.
Several leaders’ wives and partners have already surrendered, reinforcing the trend toward disengagement from armed struggle.

Ideological Disconnect

The inability of Maoist ideology to adapt to social and material changes in its former bastions has eroded its resonance.
As tribal communities integrate into mainstream opportunities, the once formidable insurgency now appears to be in irreversible decline.

The Possible End of the Maoist Insurgency

Despite recent surrender offers from senior Maoist leaders, both the Centre and state governments remain skeptical.
Past attempts at peace — notably the 2004 talks with Andhra Pradesh under Y. S. Rajashekara Reddy — collapsed quickly due to mistrust, leading to a renewed surge in violence.
Officials caution that peace overtures may simply be a tactic to buy time and regroup, given the Maoist ideology’s deep commitment to armed struggle.
Some security officials, however, note a shift in perspective among senior leaders who fear complete annihilation of the movement if current crackdowns continue.
They believe surrendering and joining the mainstream may now be the only viable path to preserve remnants of the party and its ideology.

Maoist Insurgency: From Naxalbari to Decline (1967–2025)

The Maoist-Naxal movement began in Naxalbari, West Bengal, on May 18, 1967, when armed peasants attacked landlords and seized land.
Its ideologue, Charu Mazumdar, framed the “Historic Eight Documents,” calling the Indian state bourgeois and urging a protracted revolutionary war on the model of Mao and Castro.
The uprising split CPI(M), leading Mazumdar and Kanu Sanyal to form CPI(ML) in 1969.
- CPI(M) had opposed armed struggle.
However, a strong government crackdown saw leaders killed, arrested, or underground. Mazumdar died in police custody in 1972.

Spread Beyond Bengal

Though it weakened in Bengal, the movement spread to Andhra Pradesh, Srikakulam, and later across central India — Maharashtra, Odisha, Bihar, Jharkhand, Chhattisgarh, and parts of Bengal.
The leadership became Telugu-dominated, mobilising youth and students, particularly from Warangal’s Regional Engineering College in the 1970s, where many went underground to join the armed struggle.

Organisational Growth (1980s–2000s)

In 1980, Kondapalli Seetaramaiah founded CPI(ML) People’s War, strengthening guerrilla warfare tactics.
The Maoists engaged in armed violence, extortion, destruction of infrastructure, and forced recruitment, including of children.
The insurgency peaked in the 2000s, with the People’s Liberation Guerrilla Army (2000) and the formation of CPI(Maoist) in 2004 after merging factions like People’s War and the Maoist Communist Centre.
By the late 2000s, left-wing extremism affected nearly 180 districts across 92,000 sq km.

Government Counter-Offensive and Decline

Government strategy combining security operations, development, and community engagement steadily weakened the insurgency.
By April 2024, only 38 districts remained affected, of which six were deemed districts of concern.
According to Union Home Minister Amit Shah, in 2025 alone, 270 Naxalites were killed, 680 arrested, and 1,225 surrendered.

The Road Ahead

After nearly six decades, the Maoist insurgency stands at a crossroads.
Once widespread and feared, it is now confined to shrinking strongholds, weakened leadership, and declining recruitment, marking what could be its final chapter.

Source: IE | TH

Maoist Movement FAQs

Q1: What is causing the decline of the Maoist movement in India?

Ans: Relentless security crackdowns, loss of leadership, poor recruitment, and government welfare schemes reducing tribal dependence on insurgents have weakened the movement.

Q2: Where are Maoist strongholds still active?

Ans: Maoist activity is now confined to small pockets in Bastar, Dandakaranya, and the Chhattisgarh-Telangana border with dwindling resources.

Q3: Why is Maoist recruitment declining?

Ans: Young people benefit from welfare schemes, free education, and digital access, making the austere jungle life of Maoist guerrillas unattractive.

Q4: What role has the government played in weakening Maoists?

Ans: The government’s combined strategy of security enforcement, development programs, and community engagement reduced Maoist-affected districts from 180 to just 38.

Q5: Could the Maoist insurgency end soon?

Ans: Yes. With 270 killed, 680 arrested, and 1,225 surrendered in 2025 alone, the insurgency appears in irreversible decline, though officials remain cautious about peace talks.