¯

Upcoming Mentoring Sessions

Current Affairs
Dec. 6, 2025

Organization for Security and Cooperation in Europe
Recently, Foreign Minister of Ukraine said at the Organization for Security and Cooperation in Europe that Ukraine wants "real peace, not appeasement" with Russia.
current affairs image

About Organization for Security and Cooperation in Europe:

  • It is a dynamic organization that is dedicated to promoting peace, stability, and security throughout Europe and Central Asia. 
  • It is the world’s largest regional security organization.
  • Conference on Security and Co-operation in Europe (CSCE), in 1994, was renamed the Organization for Security and Cooperation in Europe (OSCE).
  • India is not a member country.
  • Objective: It works for stability, peace and democracy through political dialogue about shared values and through practical work that makes a lasting difference.
  • Decision-making bodies of OSCE: There are four decision-making bodies with delineated, distinct mandates namely;
    • Summits: It is the highest decision-making body of the OSCE
    • Ministerial Councils: The OSCE’s central decision-making and governing body
    • Permanent Council: It is responsible for the day-to-day business of the Organization
    • Forum for Security Co-operation: It deals with the politico-military dimension of security
  • Leadership: The OSCE’s leadership includes the Chairperson-in-Office, the Secretary General, and the heads of its institutions and field operations.
  • Headquarter: Vienna.
International Relations

Current Affairs
Dec. 6, 2025

Exercise Harimau Shakti
Recently, the Fifth edition of “Exercise Harimau Shakti -2025” commenced in Mahajan Field Firing Range, Rajasthan.
current affairs image

About Exercise Harimau Shakti:

  • It is a joint military exercise conducted between India and Malaysia.
  • The Indian contingent is being represented mainly by troops from the DOGRA Regiment.
  • The aim of the exercise is to jointly rehearse conduct of Sub Conventional Operations under Chapter VII of United Nations Mandate.
  • Both sides will practice tactical actions such as cordon, search and destroy missions, heliborne operations, etc.
  • Key Facts about Exercise Harimau Shakti – 2025:
    • In this exercise both sides will rehearse drills to secure helipads and undertake casualty evacuation during counter-terrorist operations.
    • Both sides will exchange views and practices of joint drills on a wide spectrum of combat skills that will facilitate the participants to mutually learn from each other.
    • Sharing of best practices will further enhance the level of defence cooperation between Indian Army and Royal Malaysian Army.
  • Significance: The exercise will also foster strong bilateral relations between the two nations.
International Relations

Current Affairs
Dec. 6, 2025

AstroSat
Recently, the Indian Institute of Astrophysics (IIA) celebrated a decade of successful operation of the UltraViolet Imaging Telescope (UVIT) on AstroSat.
current affairs image

About AstroSat:

  • It is the first dedicated Indian astronomy mission aimed at studying celestial sources in X-ray, optical and UV spectral bands simultaneously.
  • The payloads cover the energy bands of Ultraviolet (Near and Far), limited optical and X-ray regime.
  • It enables the simultaneous multi-wavelength observations of various astronomical objects with a single satellite.
  • Payloads of Astrosat: Ultra Violet Imaging Telescope (UVIT), Large Area X-ray Proportional Counter (LAXPC), Cadmium–Zinc–Telluride Imager (CZTI), Soft X-ray Telescope (SXT) and Scanning Sky Monitor (SSM).
    • UVIT consists of two telescopes: one dedicated to near-ultraviolet and visible wavelengths, and the other to far-ultraviolet observations.
  • Objectives of AstroSat:
    • To understand high energy processes in binary star systems containing neutron stars and black holes.
    • Estimate magnetic fields of neutron stars.
    • Study star birth regions and high energy processes in star systems lying beyond our galaxy.
    • Detect new briefly bright X-ray sources in the sky.
    • Perform a limited deep field survey of the Universe in the Ultraviolet region.
  • The spacecraft control centre at Mission Operations Complex (MOX) of ISRO Telemetry, Tracking and Command Network (ISTRAC), Bengaluru manages the satellite during its entire mission life.
Science & Tech

Current Affairs
Dec. 6, 2025

INTERPOL Red Notice
Recently, the Madhya Pradesh State Tiger Strike Force in a coordinated operation with the Wildlife Crime Control Bureau has successfully apprehended an international wildlife offender wanted under an INTERPOL Red Notice (RN).
current affairs image

About INTERPOL Red Notice:

  • A Red Notice is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.
  • It is based on an arrest warrant or court order issued by the judicial authorities in the requesting country.
  • Red Notices are issued for fugitives wanted either for prosecution or to serve a sentence in relation to serious ordinary law crimes such as murder, rape and fraud. 
  • Member countries apply their own laws in deciding whether to arrest a person.
  • Purpose: International alert for a wanted person, but it is not an arrest warrant.
  • It contains two main types of information:
    • Information to identify the wanted person, such as their name, date of birth, nationality, hair and eye colour, photographs and fingerprints if available.
    • Information related to the crime they are wanted for, which can typically be murder, rape, child abuse or armed robbery.
  • Issuance: Red Notices are published by INTERPOL at the request of a member country, and must comply with INTERPOL’s Constitution and Rules.
  • Interpol cannot compel the law enforcements authorities in any of the countries to arrest someone who has a RN issued.
  • The Central Bureau of Investigation is India's National Central Bureau (NCB) for INTERPOL, handling Red Notices for all crimes, including wildlife offenses.
International Relations

Study Material
48 minutes ago

The Analyst Handout 06th December 2025
Current Affairs

Article
06 Dec 2025

A Big Leap in Pilot Safety: DRDO’s Rocket-Sled Ejection Test

Why in news?

The DRDO successfully conducted a high-speed rocket-sled test on December 2 to evaluate a fighter aircraft’s escape (ejection) system under controlled conditions. This milestone places India among the few nations with the capability to test such systems indigenously and at high speeds.

The test demonstrates India’s growing self-reliance in advanced aerospace safety technologies and highlights the importance of having a dynamic test facility to validate and improve pilot-escape mechanisms essential for fighter aircraft operations.

What’s in Today’s Article?

  • How DRDO Conducted the Rocket-Sled Ejection Test?
  • Why Dynamic Ejection Tests Are More Challenging?
  • A Major Strategic Leap in Fighter Aircraft Safety
  • Advanced RTRS Capabilities Already Supporting National Missions

How DRDO Conducted the Rocket-Sled Ejection Test

  • The test was jointly carried out by DRDO, the Aeronautical Development Agency (ADA), and Hindustan Aeronautics Limited (HAL) at DRDO’s Rail Track Rocket Sled (RTRS) facility in Chandigarh.
  • The rocket-sled system replicates high-speed, in-flight aerodynamic conditions on the ground.
  • Using a dual-sled setup, the forebody of the indigenous LCA was mounted and accelerated along rail tracks.
  • Through the phased firing of multiple solid rocket motors, the system achieved a precisely controlled speed of 800 km/h, enabling accurate evaluation of the aircraft’s escape system under realistic conditions.

Why Dynamic Ejection Tests Are More Challenging

  • Dynamic ejection tests simulate real flight conditions, unlike static tests conducted at zero altitude and zero speed.
  • They are the true benchmark for validating pilot escape systems because they must replicate complex, high-speed aerodynamic forces.
  • These tests evaluate:
    • Ejection seats powered by explosive cartridges and rocket motors
    • Canopy severance systems that safely clear the cockpit before ejection
    • Perfect sequencing of seat firing, stabilisation, and parachute deployment
  • Survival depends on millisecond-level precision, making the process extremely sensitive.
  • Extreme Aerodynamic Forces and Real-World Scenarios
    • Emergency ejections may occur during:
      • Low or high altitude
      • Zero speed or supersonic flight
      • Aircraft spin or inverted flight
    • The systems must function flawlessly across all conditions, as incorrect sequencing or timing can cause severe injuries.
    • Hence, flight-like testing is essential to meet global safety standards.
  • Use of Human-Like Test Dummies for High-Fidelity Data
    • The test employed instrumented anthropomorphic dummies equipped with sensors to measure:
      • Physical loads
      • Rotational forces (moments)
      • Accelerations experienced during ejection
    • This helps simulate the full sequence of pilot ejection and recovery under realistic conditions.

A Major Strategic Leap in Fighter Aircraft Safety

  • India’s successful indigenous test of a fighter aircraft escape system marks a significant strategic milestone.
  • Ejection systems are among the most critical life-saving mechanisms in combat aircraft, directly determining pilot survivability during emergencies.
  • Reduced Dependence on Foreign Testing Ecosystems
    • Previously, India relied on foreign test facilities to assess ejection systems—an expensive and time-consuming process.
    • Indigenous testing now costs one-fourth to one-fifth of overseas testing, making development more economical and efficient.
  • Faster Development and Certification for Current and Future Aircraft
    • By possessing an in-house dynamic ejection test facility, India can now:
      • Design and certify escape systems domestically
      • Upgrade mechanisms for future fighter platforms
      • Shorten development cycles and reduce external bottlenecks
    • This enhances India’s aerospace self-reliance.
  • High-Fidelity Safety Data Through Realistic Simulation
    • Instrumented anthropomorphic dummies allow India to precisely measure:
      • Loads
      • Accelerations
      • Impact forces
    • Such data is crucial for optimising pilot safety across different emergency scenarios.

Advanced RTRS Capabilities Already Supporting National Missions

  • The Rail Track Rocket Sled (RTRS) at TBRL, operational since 2014, can test systems at supersonic speeds.
  • Earlier in February, the facility successfully tested Gaganyaan drogue parachutes, firing two parachutes simultaneously to simulate real descent conditions.
  • The upgraded escape system test facility now includes:
    • High-speed cameras
    • State-of-the-art measurement systems
    • A dynamic test environment matching global benchmarks
Science & Tech

Article
06 Dec 2025

RBI Cuts Rates Again as Economy Enters ‘Goldilocks’ Phase

Why in news?

As the current RBI Governor completes his first year, the Indian economy finds itself in an unexpectedly strong position despite global turmoil — including trade wars, steep U.S. tariffs, and geopolitical conflicts.

The Governor described the moment as a “rare goldilocks period,” with inflation at just 2.2% and GDP growth at 8% in the first half of 2025–26. Reflecting this strength, the Monetary Policy Committee cut the repo rate by 25 bps to 5.25%.

This favourable phase has been building over time: retail inflation has fallen for three consecutive years, and GDP growth has averaged 8.2% over four-and-a-half years.

Even excluding the high-base recovery year of 2021–22, growth has averaged 7.8% between 2022–23 and Q2 of 2025–26.

What’s in Today’s Article?

  • Goldilocks Conditions: Low Inflation, Strong Growth, and Policy Consistency
  • Why Inflation Trends Created Room for Aggressive Easing
  • RBI’s Strategic Logic Behind the Additional Rate Cut
  • More Rate Cuts Likely as Inflation Eases and Growth Set to Slow
  • RBI’s New Approach to the Rupee: More Flexibility, Less Intervention
  • Balancing Growth Momentum and Future Risks

Goldilocks Conditions: Low Inflation, Strong Growth, and Policy Consistency

  • India’s economy is enjoying a rare goldilocks phase with falling inflation and robust growth, even though the rupee has weakened over 5% in 2025 and recently crossed the 90-per-dollar mark.
  • Economists say the depreciation is not a monetary policy concern, and the RBI has rightly avoided the temptation to defend the currency.
  • By cutting the repo rate by 25 bps — bringing total easing in 2025 to 125 bps — the RBI has demonstrated policy consistency.
  • Analysts note that just as the central bank would tighten policy if inflation stayed above 6% for six months, it should ease when inflation remains below 2% for a similar period.
  • With inflation currently well under the lower tolerance limit of the RBI’s 2–6% target band, the rate cut aligns with the central bank’s mandate to anchor inflation around 4% in the medium term.

Why Inflation Trends Created Room for Aggressive Easing?

  • The document shows that inflation in 2025 collapsed faster than expected, breaching the lower tolerance band for the first time under the flexible inflation-targeting framework.
  • This broad-based disinflation expanded the RBI’s policy space dramatically, allowing the MPC to cut rates without risking overheating.
  • The December cut was positioned as a continuation of measured easing, not the start of an open-ended cycle.

RBI’s Strategic Logic Behind the Additional Rate Cut

  • Disinflation Is Durable, Not Temporary - The RBI believes the sharp decline in inflation is structural enough to justify further easing.
  • Support Domestic Demand Amid Global Weakness - With global trade slowing, financial volatility rising, and geopolitical tensions persisting, the RBI used its policy room to buffer the economy.
  • Maintain Policy Consistency - After pausing in October to confirm the durability of disinflation, the December cut aligns cumulative easing with evolving macro data.

More Rate Cuts Likely as Inflation Eases and Growth Set to Slow

  • Despite stronger-than-expected 8.2% GDP growth in July–September, the RBI delivered a unanimous rate cut, lowered its 2025–26 inflation forecast to 2%, and signalled flexibility in its forward guidance.
  • This prompted economists to expect another rate cut in February.
  • RBI Governor Malhotra noted that underlying price pressures are even weaker than headline inflation suggests.
  • Economists anticipate growth moderation in the second half of 2025–26 due to factors such as reduced government spending and the impact of the 50% U.S. tariff on Indian exports.
  • RBI also acknowledged that growth will “soften somewhat”. It now projects GDP growth to drop to 7% in Q3 and 6.5% in Q4 of 2025–26.

RBI’s New Approach to the Rupee: More Flexibility, Less Intervention

  • While growth and inflation have been favourable, the rupee’s sharp depreciation remains a challenge.
  • RBI Governor avoided commenting directly on the currency’s slide during his policy statement, insisting that market fluctuations are normal and the RBI intervenes only to curb “abnormal” volatility.
  • Despite his remarks, India’s exchange rate management has shifted significantly under his tenure.
  • The IMF recently reclassified India’s regime from “stabilised” to a “crawl-like arrangement,” noting that increased flexibility will help the economy absorb external shocks.
  • Economists broadly agree that the RBI need not aggressively defend the rupee.
  • However, whether the current growth–inflation goldilocks phase will persist once India unveils its new GDP and inflation series in February 2026 remains an open question.

Balancing Growth Momentum and Future Risks

  • The document emphasises that the RBI’s move is best understood against a backdrop of:
    • Tariff-related risks from the U.S.
    • Ongoing geopolitical tensions
    • Volatile global markets
    • Potential balance-of-payments pressures
  • By cutting rates now, the RBI strengthened domestic demand while acknowledging uncertain global headwinds.
Economics

Article
06 Dec 2025

India’s Labour Codes - Reforming a Restrictive Legacy for a Modern Workforce

Context:

  • India’s labour market has long been shaped by post-Independence labour laws aimed at protecting workers but which eventually discouraged formalisation, scaling of enterprises, and labour-intensive manufacturing.
  • The government’s consolidation of 29 labour laws into four labour codes seeks to simplify compliance, expand social protection, and create a flexible and growth-oriented labour ecosystem.

Background - A Legacy of Rigid Labour Regulation:

  • Industrial Disputes Act (IDA), 1947: It created powerful disincentives for firms to expand, leading to sub-optimal firm size, and resulted in -
    • Fragmentation into micro and small informal units.
    • Low productivity and limited access to technology and capital.
    • Benefits accruing only to a small minority of formal, unionised workers, leaving most workers outside legal protection.
  • Contract Labour Act (CLA), 1970, and Amendments (1976, 1982):
    • It increased compliance requirements for contract labour.
    • Lowered thresholds for government permission for layoffs.
    • Reinforced the rigid regulatory environment even after 1991 economic liberalisation.

Structural Consequences of Past Laws:

  • India became a country of numerous informal, small-scale enterprises.
  • Firms avoided hiring due to fear of crossing regulatory thresholds.
  • Job creation lagged behind economic growth, widening the informal sector.

The Four Labour Codes - A Paradigm Shift:

  • Code on Wages, 2019 – Universal wage protection:
    • Key provisions:
      • Establishes a uniform national framework for minimum wages.
      • Ensures timely wage payments across all sectors.
      • Mandatory appointment letters to boost formalisation and transparency.
    • Significance: Extends wage protection to workers previously excluded (informal sector, unorganised segments).
  • Code on Social Security, 2020 – Inclusive social protection:
    • Key provisions:
      • Extends social security to gig workers, platform workers, and other modern workforce categories.
      • Recognises delivery workers, ride-share drivers, and freelancers in labour law.
    • Significance: Modernises the safety net in line with changing work patterns in a digital economy.
  • Industrial Relations Code, 2020 – Flexibility with safeguards:
    • Key provisions:
      • Simplifies procedures for layoffs and retrenchment for medium-sized firms.
      • Provides dispute-resolution mechanisms.
      • Maintains worker protection against arbitrary dismissal.
    • Significance: Reduces uncertainty and encourages scaling and formal hiring.
  • Occupational Safety, Health and Working Conditions Code, 2020 – Safer workplaces:
    • Key provisions:
      • Consolidates fragmented safety and working condition norms.
      • Applicable across sectors like construction, mining, and manufacturing.
    • Significance: Promotes safer workplaces, investment in modern technology, and worker dignity.

Simplified Compliance and Ease of Doing Business:

  • Merges multiple registrations, licences, inspections, and returns into -
    • One registration
    • One licence
    • One return
  • Reduces bureaucratic friction, particularly benefiting MSMEs. Encourages formalisation and scaling.

Role of States in Labour Reform Outcomes:

  • Empirical evidence - States implementing flexible labour reforms benefited more from trade liberalisation.
  • Most state-level reforms historically have been limited.
  • Full implementation of labour codes by states will determine investments, job creation, and industrial competitiveness.

Challenges:

  • Implementation delays: States have been slow to finalise rules, limiting the nationwide rollout of the codes.
  • Capacity constraints: Smaller firms may struggle to adapt to digital compliance systems.
  • Balancing flexibility and worker protection: Ensuring that flexibility does not lead to worker exploitation.
  • Awareness and outreach: Gig/platform workers often lack awareness of their new entitlements under the codes.
  • Political economy constraints: Labour is a Concurrent List subject; state-level political variations hinder uniform adoption.

Way Forward:

  • Fast-track state-level implementation: Harmonise rules across states for predictable labour regulation.
  • Strengthen digital infrastructure: User-friendly compliance portals for MSMEs.
  • Robust social security systems for gig workers: Clear mechanisms for contributions, benefits, and dispute resolution.
  • Employer–worker dialogue: Strengthen industrial relations bodies for faster dispute resolution and trust-building.
  • Continuous monitoring: Real-time evaluation of the codes’ impact on hiring, productivity, and formalisation.

Conclusion:

  • India’s labour codes mark a historic shift from rigid, protectionist labour laws to a modern, flexible, and inclusive labour governance framework.
  • By simplifying compliance, expanding social protections, recognising new forms of work, and enabling firms to scale, the codes aim to unlock India’s employment and industrial growth potential.
  • Successful implementation—particularly by states—will determine whether India can transition from a fragmented, informal labour system to a productive, formal, and globally competitive labour market, thereby harnessing the full potential of its vast workforce.
Editorial Analysis

Article
06 Dec 2025

India-Russia Summit - Strengthening Trade, Energy and Mobility Ties

Why in the News?

  • Russian President Vladimir Putin’s official state visit to India has resulted in major breakthroughs in areas like labour mobility, trade expansion, nuclear energy cooperation, defence manufacturing and tourism.

What’s in Today’s Article?

  • India-Russia Strategic Partnership (Background, Key Announcements, e-Tourist Visas, Technology / Space / Energy Sectors, Geopolitical Significance, etc.)

India-Russia Strategic Partnership

  • India and Russia share a long-standing strategic partnership built on defence cooperation, energy security, and technological collaboration.
  • The 2025 summit reaffirmed the relevance of this relationship amid shifting global geopolitics.
  • Despite Western sanctions on Russia, bilateral trade between the two nations crossed USD 65 billion in 2024, driven largely by discounted Russian crude oil imports.
  • The summit aimed to rebalance trade, diversify cooperation, and build long-term frameworks that benefit India’s economic and strategic interests.

Key Announcements from the India-Russia Summit

  • New Labour Mobility Pathway
    • One of the most significant outcomes of the summit was the signing of a labour mobility agreement, enabling Indian workers, particularly from construction, healthcare and services sectors, to take up jobs in Russia under regulated frameworks. This initiative is expected to
      • provide safer migration pathways,
      • address Russia’s labour shortages, and
      • generate new employment opportunities for Indian youth.
    • The agreement mirrors India’s wider strategy of formalising migration channels with key partner nations.
  • Advancement in Nuclear Energy Cooperation
    • India and Russia are committed to expanding cooperation in the nuclear energy sector, including:
      • joint development of small modular reactors (SMRs),
      • progress on additional units at Kudankulam, and
      • collaboration in fuel supply, nuclear safety, and training.
    • SMRs are seen as central to India’s long-term low-carbon energy strategy, making Russia a valuable technological partner.
  • Boost to Defence Production and Technology Sharing
    • Defence remained a core pillar of the summit. Major takeaways included:
      • proposals for the co-production of military equipment in India,
      • discussions on supply chain stabilisation for spare parts, and
      • a roadmap for long-term defence industrial cooperation.
    • With India diversifying its procurement sources, Russia emphasised readiness for deeper technology sharing and joint manufacturing under ‘Make in India’.
  • Focus on Expanding Bilateral Trade
    • Both leaders acknowledged that trade remains heavily skewed in Russia’s favour due to oil imports. To correct this imbalance, the summit saw discussions on:
      • expanding Indian exports of pharmaceuticals, textiles, machinery, automotive parts and food products,
      • establishing a bilateral payment settlement mechanism insulated from geopolitical disruptions,
      • promoting direct shipping routes via the Chennai-Vladivostok maritime corridor.
    • Industry bodies noted that the agreements could unlock new market opportunities for textiles, engineering goods, FMCG and agritech companies.

India Announces Free 30-Day e-Tourist Visa for Russians

  • A major policy announcement was India’s decision to grant a free 30-day, double-entry e-tourist visa to all Russian nationals. Expected Benefits:
    • Increased Russian tourist inflow to India’s coastal and wellness destinations.
    • Strengthening people-to-people ties amid rising Russian outbound travel.
    • Support to India’s hospitality and retail sectors.
  • The move comes at a time when visa-friendly tourism policies are becoming a tool of economic diplomacy.
  • Russia is also expected to ease travel norms for Indian tourists as part of reciprocal arrangements.

Technology, Space and Energy-Sector Outcomes

  • Technology Collaboration
    • India and Russia discussed joint projects in cybersecurity, digital public infrastructure, and artificial intelligence. Russian firms expressed interest in collaborating with Indian IT and fintech start-ups.
  • Space Cooperation
    • The summit reaffirmed cooperation in space research, satellite navigation, and training of Indian astronauts, continuing a decades-long partnership.
  • Energy Security
    • Beyond nuclear energy, both sides reviewed:
      • long-term crude oil supply agreements,
      • LNG procurement possibilities, and
      • Indian investments in Russian petroleum projects.
    • Energy remains the backbone of bilateral engagement and a critical factor in India’s economic strategy.

Geopolitical Significance of the Summit

  • The India-Russia summit showcased India’s strategic autonomy. India continues to maintain strong ties with Russia while deepening relations with the United States, Europe and East Asia.
  • The agreements signalled:
    • India’s need for stable energy access,
    • Russia’s search for reliable economic partners, and
    • A shared interest in building multipolar global institutions.

 

International Relations

Article
06 Dec 2025

Chile’s Lesson for India’s Coal Conundrum

Context

  • India’s sharp drop in the Climate Change Performance Index (CCPI) underscores a central contradiction in its energy landscape: significant renewable-energy growth alongside continued deep dependence on coal.
  • This dependence has become India’s largest obstacle to decarbonisation, with severe implications for climate, health, and economic stability.
  • A comparison with Chile highlights both possibilities and constraints in accelerating a coal phaseout.

India’s Coal Conundrum

  • Despite rapid expansion of clean energy, coal remains the dominant source of India’s electricity.
  • Renewables represent half of installed capacity but produce only one-fifth of total electricity, while coal accounts for nearly 75% of power generation.
  • Domestic coal production continues to increase, reinforcing the dependence.
  • This creates a severe policy dilemma. Phasing out coal risks job losses and higher electricity costs for coal-dependent States.
  • Yet retaining it heightens the threat of climate-induced economic damage, projected to cut 3%-10% of India’s GDP by 2100, and worsens public health risks.
  • A one-gigawatt increase in coal-fired capacity corresponds to a 14% rise in infant mortality in nearby districts.
  • Coal phaseout is therefore a no regrets strategy essential for protecting long-term economic and social welfare.

Chile’s Accelerated Shift: A Contrast and a Lesson

  • Chile demonstrates how clear policy signals and market reform can drive rapid energy transformation.
  • Between 2016 and 2024, coal’s share in electricity generation fell from 43.6% to 17.5%, while renewables, mainly solar and wind, exceeded 60% of the power mix.
  • This shift was enabled by a carbon tax, strict emission standards that increased coal-plant costs by 30%, and competitive renewable auctions that delivered cheaper clean power.
  • Large-scale investments in storage strengthened grid reliability, and the country committed to a complete coal phaseout by 2040.
  • Chile’s transition was made easier by a smaller coal sector, fewer workers to reskill, and a political context that supported swift reforms.
  • Pre-existing alternative industries helped absorb displaced labour. In contrast, India’s coal sector spans entire districts of Jharkhand, Chhattisgarh, Odisha, and West Bengal, making transition more complex and socially sensitive.

A Road Map for India’s Decarbonisation

  • Strengthening Renewable Integration
    • Addressing renewable limitations is essential for reducing coal dependence.
    • This includes expanding storage capacity, modernising the grid, and supporting electrification of transport, industry, and households to increase renewable power demand.
  • Reforming Energy Markets and Regulations
    • Market reform must disincentivise coal and reward clean energy.
    • Priority steps include carbon pricing, removal of coal subsidies, clean-dispatch rules that prioritise renewable power, and procurement contracts that favour flexible, clean-energy supply.
    • Such reforms can replicate the competitive environment that accelerated Chile’s transition.
  • Ensuring a Just Transition for Workers and Regions
    • A coal exit must be socially inclusive. This requires reskilling programmes, income support, and new livelihood opportunities for workers in coal-dependent regions.
    • A national mechanism such as the Green Energy Transition India Fund can coordinate support efforts, while the District Mineral Foundation can promote local entrepreneurship and diversification in mining districts.
  • Financing the Transition
    • A blended finance model will be crucial. Public funds should target community welfare, worker protection, and enabling infrastructure, while private capital drives renewables deployment, storage expansion, and technological innovation.
    • Aligning financial incentives with decarbonisation will strengthen execution and investor confidence.

Conclusion

  • India’s renewable-energy progress provides a strong foundation, but without a clear and actionable coal-exit plan, climate ambition will remain incomplete.
  • A national coal phaseout road map must now be a top political priority, integrating timelines, financing mechanisms, regulatory reform, and robust social protection.
  • Learning from Chile’s experience, India can build a transition that is economically resilient, socially just, and aligned with its long-term climate goals.
Editorial Analysis
Load More...

Enquire Now