UPSC Mains Current Affairs for 25 August 2026

India’s Youth Unemployment Crisis Runs Deeper Than the Jobless Rate

August 25, 2026

Youth Unemployment Latest News

Recent data show that around 9.2 crore young Indians are neither in education, employment nor training, a figure the falling unemployment rate does not capture.

The Official Picture

The government has often cited the Unemployment Rate (UER) to suggest India is doing well on jobs.
The UER measures the number of unemployed people as a share of the total labour force, those currently working or actively looking for work.
By this measure, the trend looks positive. Data from the Periodic Labour Force Surveys (PLFS) shows the UER falling steadily from 6.1% in 2017-18, a 45-year high, to just 3.1% in 2025, for those aged 15 and above.
However, relying only on this headline figure obscures three significant problems.

Problem One: Youth Unemployment Remains High

Unemployment among young Indians aged 15 to 29 is far higher than the overall rate.
It fell from almost 18% in 2017-18 to around 10% in 2022-23, but has since stayed stuck at that level.
More troubling is that unemployment rises with educational attainment. Graduates aged 25 face the highest unemployment rate, close to 40%.
This means roughly four out of every ten graduates aged 25 who are looking for work fail to find it.
Analysis in the State of Working India (SWI) 2026 report by researchers at Azim Premji University found that unemployment among young Indians with education up to graduation or more was actually higher in 2023 than in 1983.
Educated unemployment is not new in India, but the situation appears to be worsening over time.

Problem Two: The Quality of Jobs Created

India's workforce has undoubtedly expanded. The total number of people employed rose from 43.3 crore in 2017-18 to around 61 crore by December 2025. But a closer look at where these jobs came from raises concerns.
The SWI 2026 report found that between 2021-22 and 2023-24, India's employed population grew from 49 crore to 57.2 crore. Employment rates rose from 71% to 74% for men and from 26% to 34% for women.
However, of the 8.3 crore jobs added in this period, 4 crore were in agriculture, with women accounting for a large share at 3.8 crore.
Agriculture is typically low-productivity, low-paying work, and a shift towards it is generally a sign of distress rather than progress.
The pattern is similar for women's employment overall. The number of women in the workforce rose sharply from 9.4 crore in 2017-18 to 18.6 crore in 2023-24. But the report notes that the number of women in own-account self-employment has increased nearly fourfold since 2017, while self-employment earnings for women and salaried earnings for both men and women have largely stagnated.
More people are working, in other words, but not necessarily earning more.

Problem Three: The UER Understates the Problem

In a developing economy like India, using the unemployment rate to assess labour market stress can be deeply misleading.
The UER counts only those who are willing to work and actively searching for a job. In India, however, many people who could work do not register in surveys as looking for work.
They are therefore counted outside the labour force altogether, and never appear in the unemployment figure.
As one of the SWI report's authors explains, this happens particularly with women. Regardless of their education, even after completing graduation, many are not recorded as looking for work, and thus fall out of the labour force entirely.
If these individuals were counted as unemployed, they would enter the labour force and the unemployment rate would be considerably higher.
The UER is therefore best understood as the lowest possible estimate of people not being mobilised into the workforce.
Beyond it lies a large pool of people outside the labour force, either discouraged workers who have given up searching, or those kept out by social norms, most often women.

The Better Measure: NEET

A different metric captures this reality more accurately: NEET, or Not in Employment, Education, or Training.
The logic behind NEET is straightforward. Those pursuing education cannot reasonably be expected to be working. NEET therefore measures how many people are in none of these three categories, not studying, not training, and not working.
As the SWI report describes it, NEET is a comprehensive measure of labour under-utilisation that excludes those in education or training. It includes not just the unemployed, but also those of working age who are neither in education nor in training nor in employment.

The Scale of the Problem

According to official PLFS data released in March this year, 25% of Indian youth were classified as NEET.
Applying this proportion to current population figures produces a striking number.
Based on Ministry of Health and Family Welfare projections, India's youth population in 2026 stands at 36.8 crore, the largest youth population in the world.
At 25%, this means roughly 9.2 crore young Indians are currently neither in education, nor skilling, nor any form of employment. That is a figure almost equal to the entire population of Iran.

Why This Matters

The combination of high youth unemployment and an enormous absolute NEET population helps explain the growing youth unrest in the country.
What makes it more striking is the context. These figures coexist with government satisfaction over the pace of economic growth based on GDP figures, a period some have described as a "goldilocks" phase for the Indian economy.
The disconnect is the core issue. Headline growth and a falling unemployment rate can both look healthy while a very large share of young people remain entirely disconnected from productive activity.

Source: IE

Youth Unemployment FAQs

Q1: What is the Unemployment Rate and what does it measure?

Ans: The UER measures the number of unemployed people as a share of the labour force — those working or actively looking for work.

Q2: What is India's current unemployment rate?

Ans: The UER fell from 6.1% in 2017-18 to 3.1% in 2025 for those aged 15 and above.

Q3: What is the unemployment rate among 25-year-old graduates?

Ans: It is close to 40%, meaning about four out of ten graduates aged 25 looking for work fail to find it.

Q4: How many young Indians are estimated to be NEET?

Ans: Around 9.2 crore, based on 25% of a youth population of 36.8 crore in 2026.

Q5: Why is NEET considered a better measure than the unemployment rate?

Ans: Because the UER excludes discouraged workers and those kept out of the labour force by social norms, while NEET captures all working-age people outside education, training and employment.

Tracing Ashoka in Ujjain: Vaishya Tekri Excavation and History

August 25, 2026

Tracing Ashoka in Ujjain Latest News

The Madhya Pradesh government has begun restoring Buddhist monuments linked to the Mauryan emperor Ashoka, starting with a fresh excavation at Vaishya Tekri in Ujjain.
The initiative has renewed scholarly interest in Ashoka's connection to the city and raised questions about how much the site can actually confirm historically.

The Vaishya Tekri Stupa: Scale and Earlier Findings

According to academic Peter Skilling's 2011 paper, Vaishya Tekri — the largest stupa at the site — measures about 350 feet at its base and 100 feet high, notably larger than the 54-foot stupa at Sanchi.
Nearby stands a smaller structure called Kumbhar (or Kumhar) Tekri; both remain relatively undisturbed, save for a power line and pylon running through the area.
Initial excavations by the Department of Archaeology of the erstwhile Gwalior State in 1938-39 uncovered large bricks and punch-marked coins, leading archaeologists to date the structures to the Mauryan period.
However, historians have urged caution, noting that this excavation report is decades old and its interpretation was shaped by earlier accounts — particularly Alexander Cunningham's writings on Ashoka.
They argue that further investigation beyond the 1938-39 findings is needed before drawing firm conclusions.

Ashoka's Years in Ujjain

Ujjayini (modern Ujjain), located on the Sipra river (a tributary of the Chambal), was the capital of the Avanti kingdom and a major commercial centre.
Historian Romila Thapar notes that Ujjain linked trade routes to western coastal ports like Broach and Sopara, as well as to Pataliputra — Ptolemy referred to it as "Ozene."
Ashoka was sent to Avanti as viceroy by his father, Emperor Bindusara. Unlike his brief posting in Taxila, he is believed to have spent nearly a decade in Avanti, headquartered at Ujjain — reportedly in recognition of his earlier work at Taxila.
Historians call Ujjain the "Greenwich of India," since Hindu astronomers calculated the prime meridian of longitude from the city.
They suggest Ashoka arrived around 282 BCE, roughly a decade before Bindusara's death, by which time Ujjain was already an urban centre with 300 years of history along the Sipra.
Mud fortifications first appeared around Ujjain in the 7th century BCE, and by the 6th century BCE, Avanti had emerged as a powerful independent kingdom.

Where Ashoka Met Devi

En route to Ujjain, Ashoka stopped at Vidisha, where he met and married Vedisadevi (Devi), daughter of a local merchant — though Thapar notes historical records do not confirm a legal marriage. The couple had two children: Mahinda and Samghamitta.
Evidence for Ashoka's Ujjain posting includes his own edicts, issued later as emperor, which mention a prince (kumara) stationed at Ujjain.
Experts also note that Vidisha, where Ashoka met Devi, lies directly on the route from Pataliputra to Ujjain.
However, scholars disagree on physical evidence: while Skilling considers it plausible that Ashoka erected pillars or edicts at such an important site, they point out that no Ashokan pillars have been found in Ujjain, particularly near the stupas, and that the excavations reveal little about Ujjain's political structure during Ashoka's time.

The Stupa and the 'Hell'

Local traditions in Sri Lanka associate Vaishya Tekri with Devi — its name reportedly deriving from her merchant (Vaishya) family background.
In contrast, Kumhar Tekri carries a starkly different association: Chinese scholar-pilgrim Xuanzang, who visited Ujjain in the 7th century, recorded a stupa marking the site where "King Ashoka made a hellish prison."
Thapar notes that earlier excavations at Kumhar Tekri revealed a burial-cum-cremation ground dating to the 3rd century BCE, corroborating Xuanzang's account.
About a decade into his Ujjain viceroyalty, Ashoka returned to Pataliputra after Bindusara fell critically ill — setting the stage for his subsequent, and violent, struggle for the Mauryan throne.

The Fresh Excavation: Promise and Caution

Scholars have welcomed the government's renewed funding for excavation, noting archaeology typically receives limited financial support.
However, they caution that the focus should extend beyond the stupa structure itself to the broader cultural landscape — drawing a parallel with Sanchi, where the ashes of Buddhist teachers were found buried in cemeteries surrounding the stupas.
They suggest the excavation should aim to understand how the site evolved over time, including other structures and the monks associated with it, rather than treating the stupa as an isolated monument.
Concerns have also been raised about encroaching urbanisation, with the once-rural site now bordered by an expanding industrial zone around Ujjain.

Conclusion

The Vaishya Tekri excavation offers a valuable opportunity to deepen understanding of Ashoka's decade-long Ujjain viceroyalty and early Buddhist history in Malwa.
Yet, as historians caution, the site's grand scale and evocative local traditions must be weighed against the limits of decades-old evidence — making a broader, landscape-level investigation essential for the fresh dig to yield historically reliable conclusions rather than reinforce old assumptions.

Source: IE

Tracing Ashoka in Ujjain FAQs

Q1: What does Tracing Ashoka in Ujjain reveal about Vaishya Tekri?

Ans: Tracing Ashoka in Ujjain highlights Vaishya Tekri as a massive Buddhist stupa whose earlier discoveries suggest Mauryan origins, though historians urge caution.

Q2: Why is Ujjain important while Tracing Ashoka in Ujjain?

Ans: Tracing Ashoka in Ujjain is important because Ashoka reportedly served nearly a decade as viceroy of Avanti, headquartered at this major commercial centre.

Q3: What is Devi's connection with Tracing Ashoka in Ujjain?

Ans: Tracing Ashoka in Ujjain examines traditions linking Vaishya Tekri with Devi, whom Ashoka reportedly met at Vidisha before proceeding towards Ujjain.

Q4: What archaeological limits affect Tracing Ashoka in Ujjain?

Ans: Tracing Ashoka in Ujjain remains difficult because earlier excavations are decades old, no Ashokan pillars have been found, and evidence requires fresh investigation.

Q5: Why is the fresh excavation important for Tracing Ashoka in Ujjain?

Ans: Tracing Ashoka in Ujjain may gain stronger historical evidence through broader landscape-level excavation examining stupas, surrounding structures, cultural evolution and Buddhist communities.

Press Note 3 Relaxations: Impact on FDI Inflows into India

August 25, 2026

Press Note 3 Relaxations Latest News

The Union government announced that India received foreign direct investment (FDI) worth ₹4,895.65 crore over the last few months from companies benefiting from recent relaxations to India's FDI rules.
These changes were designed to ease the flow of investments that had earlier been restricted under Press Note 3.

About Press Note 3

The Union government issued Press Note 3 in April 2020, amending India's FDI policy.
Previously, entities from Bangladesh and Pakistan required prior government approval to invest in India.
Press Note 3 extended this requirement to all countries sharing a land border with India — thereby covering Pakistan, China, Bangladesh, Nepal, and Bhutan.
While popular perception links this decision to the India-China border clashes at Galwan, the timeline contradicts this: Press Note 3 was issued in April 2020, a month before the Galwan clashes occurred in May 2020.
The actual trigger was the COVID-19 pandemic — India and several other countries observed Chinese companies acquiring majority stakes in firms whose valuations had collapsed due to the pandemic.
The rule aimed to prevent such opportunistic, hostile takeovers. The subsequent tightening and continuation of this restriction over the years was indeed shaped by the deteriorating India-China relationship.

What Changed in March 2026?

In March 2026, the Centre eased the Press Note 3 restrictions.
Under the revised norms, FDI from entities would be permitted through the automatic route — without requiring explicit government approval — provided these entities had less than 10% ownership stake held by investors based in land-bordering countries.
This meant companies with minority, non-controlling stakes from these countries could now access the simpler automatic route for investment.
The government justified this move by noting that substantial investment had been stalled because even companies with negligible Chinese ownership faced the same stringent approval requirements as those with majority Chinese control.
The stated objective was to provide regulatory clarity, ease of doing business, and to facilitate FDI inflows, technology access, domestic value addition, and stronger integration with global supply chains.

Impact So Far

As of August 10, 2026, the Ministry of Commerce and Industry reported that 29 FDI projects worth ₹4,895.65 crore had been received under the revised framework.
These investments span diverse sectors — information technology, artificial intelligence, information and communication, manufacturing, pharmaceuticals, data centres, and transport services.
The investments originated from countries including Mauritius, the U.S., the Republic of Korea, Japan, Singapore, Luxembourg, and the Cayman Islands.
While the announcement signals policy success, the scale remains modest — the reported investment amounts to less than 1% of India's total FDI inflows in 2025-26.
However, given that the relaxation is barely months old, this is still an early indicator rather than a conclusive trend.

Conclusion

The Press Note 3 relaxation reflects India's calibrated approach to balancing security concerns over land-border-country investments with the need to ease compliance burdens and attract capital.
Although the reported FDI gains remain marginal relative to India's overall inflows, the diversity of source countries and sectors suggests the policy may unlock previously stalled investment over time — making sustained monitoring essential to assess its long-term impact.

Source: IE

Press Note 3 Relaxations FAQs

Q1: What are Press Note 3 Relaxations?

Ans: Press Note 3 Relaxations allow eligible companies with less than 10% ownership from land-bordering countries to access India's automatic FDI route without prior government approval.

Q2: Why were Press Note 3 Relaxations introduced in 2026?

Ans: Press Note 3 Relaxations were introduced to reduce compliance burdens and prevent companies with negligible Chinese or other land-bordering ownership from facing unnecessarily stringent approval requirements.

Q3: How have Press Note 3 Relaxations affected FDI inflows?

Ans: Press Note 3 Relaxations facilitated 29 FDI projects worth ₹4,895.65 crore by August 10, 2026, although the amount remains less than 1% of total inflows.

Q4: Which sectors have benefited from Press Note 3 Relaxations?

Ans: Press Note 3 Relaxations have supported investments in information technology, artificial intelligence, manufacturing, pharmaceuticals, data centres, information and communication, and transport services.

Q5: Can Press Note 3 Relaxations be considered a complete policy success?

Ans: Press Note 3 Relaxations show early positive results, but their long-term success remains uncertain because the policy is new and investment gains are still modest.