Current Affairs – February 22, 2025

{GS2 – IR – Asia} India’s Strategic Imperatives in the Indian Ocean

• Context (IE): India, along with Singapore and Oman, is hosting the 8th Indian Ocean Conference (IOC) in Muscat to discuss regional security and economic cooperation.

Historical Significance of the Indian Ocean

• Naming & Cultural Influence: Named after India due to its historical and cultural dominance; known as “Hind Mahasagar” for centuries.
• Ancient Trade Networks: Indian merchants like the Manigramam Chettis and Nanadesis engaged in extensive trade with Arab and Southeast Asian regions.
• Maritime Presence in Texts: Kautilya’s Arthashastra emphasized maritime trade; Chinese traveler Fa-Hien recorded India’s naval strength in 415 CE.
• Colonial Disruption: India lost its maritime dominance to European colonial powers like the Portuguese, Dutch, French, and British.

India’s Historical Neglect of Maritime Power

• Colonial Legacy: The British, despite their naval dominance, did not develop a blue-water navy for India.
• Post-Independence Priorities: Leadership prioritized land-based threats, neglecting maritime strategy.
• Shipbuilding Lag: India ranks 20th in the global shipbuilding industry, with just 0.06% market share.
• Strategic Oversight: K M Panikkar (1945) warned that India’s security and trade relied on naval power, but policies remained land-focused.

Strategic Importance of the Indian Ocean Today

• Global Trade Hub: Facilitates 70% of global container traffic, 80% of India’s external trade, and 90% of its energy imports.
• Access for Landlocked Nations: Vital trade route for Nepal and Bhutan.
• Cultural and Trade Nexus: Unlike the geopolitically tense Indo-Pacific, the Indian Ocean fosters economic and cultural ties.

Emerging Challenges in the Indian Ocean

• Big Power Rivalry: US, UK, France & China have significant naval presence, creating security complexities.
• Maritime Security Threats: Includes piracy, sea-borne terrorism, illegal fishing, arms trafficking, and climate-induced crises.
• Undersea Network Control: European firms and China’s Huawei dominate critical undersea communication cables.

India’s Maritime Strategy and Initiatives

• SAGAR Initiative (2015): Ensures Security And Growth for All in the Region through stability and economic cooperation.
• Blue-Water Policy: India is working toward establishing itself as a dominant naval power and voice of the Global South.
• Strategic Partnerships: Strengthening naval and diplomatic ties with key nations like Oman and Singapore for regional security.
• Indian Ocean Conference (IOC): A strategic platform for regional collaboration, ensuring collective control over maritime security.

Way Forward

• Strengthening Naval Infrastructure: Invest in shipbuilding, naval expansion, and maritime surveillance.
• Enhancing Regional Cooperation: Deepen engagement with IORA, QUAD, and BIMSTEC for collective security and governance.
• Boosting Blue Economy: Sustainable fisheries, ocean-based industries & clean energy solutions.
• Countering External Influence: Safeguard undersea communication network & regional trade interests.
• Climate Resilience & Disaster Preparedness: Develop early warning systems and relief mechanisms for climate-induced disasters.

{GS2 – Polity – IC – Federal Structure} Federalism & Education

• Context (IE | TH | TH | TH): Tamil Nadu’s central share of Samagra Shiksha funds has been withheld due to its rejection of National Education Policy (NEP) 2020, highlighting federal tensions in education policy.

About the Tamil Nadu issue

• TN has flagged non-disbursal of ₹2,152 Cr for Samagra Shiksha Scheme, affecting 40 lakh students and 32,000 staff. Union Education Minister insists funds will be released only if NEP is implemented.
• NEP 2020 proposes uniform policies, but States seek autonomy in implementation.
• Tamil Nadu has historically resisted Centre-imposed educational policies, particularly on language.

Larger Concerns

• 42nd Amendment (1976): Shifted education from State to Concurrent List; reduced state autonomy.
• Seventh Schedule of Constitution: Education requires Union-state consultation, often overlooked.
• NEP 2020 and Federalism: Lacks parliamentary debate; states not consulted on its impact.
• Article 351: Mandates Hindi promotion but contradicts Tamil Nadu’s linguistic policy.
• Denial of Samagra Shiksha Funds: Centre’s decision links funds to NEP compliance, raising concerns over federal fairness.
• National Opposition: Other states (West Bengal and Northeastern states) also oppose Hindi imposition.

Tamil Nadu’s Stand

Historical Background of Tamil Nadu’s Language Resistance

• Pre-Independence Opposition (1937-1940): Protests against Rajaji’s compulsory Hindi order; led by Periyar’s Self-Respect Movement and Justice Party.
• Constituent Assembly Debates (1948): TT Krishnamachari opposed ‘Hindi imperialism’; Munshi-Ayyangar formula retained English alongside Hindi.
• Official Languages Act, 1963: CN Annadurai demanded indefinite continuation of English, opposing Hindi imposition.
• 1965 Anti-Hindi Protests: Student-led agitation turned violent; 70 killed; forced PM Shastri to assure continuation of English.
• Political Impact (1967 Elections): Congress lost Tamil Nadu; DMK came to power; state adopted Two-Language Policy (Tamil-English).

Past Precedents

• Navodaya Schools (1986): Rajiv Gandhi’s policy clashed TN’s stance, but education funds not denied.
• Emergency and Federal Rights: Tamil Nadu views Centre’s NEP enforcement as undermining state rights, akin to Emergency-era actions.

Tamil Nadu’s Objections to NEP

• NEP’s three-language formula: Tamil Nadu follows a two-language system (Tamil and English) and opposes the potential inclusion of Hindi or Sanskrit.
• Issue of constitutional autonomy: Tamil Nadu argues that linking SSA funds to NEP compliance infringes upon the state’s constitutional autonomy in education.
• Say of states: TN government emphasises the need for states to have a say in implementing educational policies due to regional differences in socio-economic conditions, infrastructure, and resources.
• Perceived elitism of NEP: The TN government have claimed that the NEP caters to elites and neglects social justice, federalism, and pluralism. They argue it imposes a one-size-fits-all approach to education.
• Threats: Fishery Interactions, Environmental Contaminants, Hunting etc.

Opposition to PM SHRI Scheme

• PM SHRI aims to establish model schools implementing NEP across India.
• TN opposes PM SHRI as it conflicts with its existing education framework & 5+3+3+4 NEP structure.

Implications of Fund Withholding

• Withholding funds undermines cooperative federalism, pressuring States to comply.
• Constitution grants States autonomy in language and education policy.
• NEP implementation must consider regional diversity and avoid a one-size-fits-all approach.

Impact on Tamil Nadu’s Education System

• Non-release of SSA funds affects primary education, teachers’ salaries, and school infrastructure.
• Delay in funds jeopardizes academic continuity for millions of students.
• Tamil Nadu plans to introduce its own State Education Policy as an alternative.

Way Forward

• Delink Samagra Shiksha and PM SHRI funding from NEP compliance.
• Allocate funds based on performance indicators, not policy adoption.
• Promote dialogue between Centre and States to ensure policy flexibility.
• Strengthen federal principles by respecting regional education policies.

{GS2 – Polity – IC – FRs} SC Directives on the Remission of Sentences for Convicts

• Context (TH): In the Re: Policy Strategy for Grant of Bail case, the SC emphasized the need for a fair and transparent remission policy by issuing significant directions.

Key Highlights of SC Directives

• Proactive Consideration of Remission: States and UTs with remission policy must consider eligible cases for remission without requiring applications from convicts or their relatives.
• Remission Policy: States and UTs that do not have a remission policy have to formulate a policy within two months.
• Reasonable Conditions: If conditions imposed are arbitrary, the conditions will stand vitiated due to a violation of Art 14 and the convict’s rights under Art 21 of the IC.
• Reasoned Order: Order granting or refusing the relief of permanent remission must contain brief reasons and must be immediately communicated to the convict through the prison office.
• Right to Challenge: It is the duty of the prison authorities to inform the convict that he has the right to challenge the order of rejection of remission.
• Opportunity to be heard: An order granting permanent remission cannot be withdrawn or cancelled without giving an opportunity of being heard to the convict.

Significance of the Ruling

• Prisoners’ Rights Protection: This ruling marks a crucial step in protecting the rights of prisoners and ensuring that the remission system functions efficiently.
• State Responsibility for Remission: Removes barriers that delay release of deserving convicts aligning with the broader goal of decongesting prisons and promoting rehabilitative justice.
• Reduces burden on the Judiciary: By minimizing unnecessary litigation related to remission denials.

Challenges and Implementation

• Lack of Awareness: Many prisoners may not be aware of their eligibility for remission, making proactive assessment by authorities crucial.
• Bureaucratic Delays: State governments and prison departments must streamline their processes to ensure compliance with the Supreme Court’s orders.
• Need for Regular Monitoring: There must be periodic checks to ensure that the remission policy is being implemented fairly and that no eligible convict is overlooked.

Read More: Remission in India

{GS2 – Polity – IC – FRs} SC Test on Rights

• Context (IE): In 1952, V G Row challenged Criminal Law Amendment Act, 1908, leading the Supreme Court to strike it down, affirming that restrictions on rights must be “reasonable.”

SC’s Reasonableness Test

• Need for the Test: SC ruled that laws restricting fundamental rights must meet certain criteria to prevent excessive limitations.
• Key Parameters:
  • Nature of the Right Infringed: Identifying which fundamental right is impacted.
  • Purpose of the Restriction: Ensuring the law addresses a legitimate concern.
  • Extent of the Evil: Evaluating the necessity of the restriction.
  • Proportionality of Restriction: Preventing excessive curtailment of rights.
  • Prevailing Conditions: Considering the socio-political context at the time.

• Impact: The test evolved into the “Structured Proportionality Test,” now used to evaluate laws affecting fundamental rights.

Impact on Future Laws & Legal Precedents

• Influence on Legislation: Set a precedent that laws restricting rights must pass strict judicial scrutiny.
• Similar Laws Over Time: The ruling shaped interpretations of laws like Unlawful Activities (Prevention) Act (1967), Terrorist and Disruptive Activities (Prevention) Act (1987), Prevention of Terrorism Act (2002).
• Continued Legal Battles: The test remains central in cases challenging laws such as Section 124A (sedition law) and the Aadhaar Ordinance.

Who Was V G Row?

• V G Row (born 1907) studied law in London, co-founded Row & Reddy law firm, and defended workers’ rights in major constitutional cases.
• Led key trade unions (SBI, RBI, Lipton Tea, AIBEA), influenced labor law reforms, and, despite early communist ties, resigned from the party in 1964 while continuing pro-labor advocacy.
• Landmark Cases: Represented A K Gopalan in first constitutional case heard by SC. Won significant cases for labor rights, including early demands for worker bonuses before Payment of Bonus Act (1965).
• Negotiation Expertise: Used financial insights to secure fair wages and benefits for workers.

Source: IE

• Legislative Influence: Helped shape the Tamil Nadu Shops and Establishment Act (1947), which later became a model for national labor laws.
• Judicial Foresight: Advocated for workers’ profit-sharing long before it became law.
• Lost hearing due to an adverse reaction to anti-malaria medication, preventing him from arguing cases.

{GS2 – Social Sector – Education} Need for Inclusive Education

• Context (TH): Student suicides have raised concerns over mental well-being of students.

Causes of Student Suicides

• Academic Stress: Intense pressure to succeed, unrealistic expectations, and the fear of failure contribute significantly to student suicides.
• Caste-Based Discrimination: Marginalization due to caste issues often leads to isolation, worsened by a reactive complaint-based approach.
• Social Pressure: FOMO syndrome, peer comparison & pressure to succeed exacerbate mental struggles.
• Stigma: Stigma around mental illness discourages seeking help, leading to isolation & despair.
• Reactive Institutional Policies: They tend to address problems after they occur, rather than prevention.
• High Expectations: Even academically successful students, including Olympiad winners, have fallen victim to the pressures of achieving excellence.

Recent Statistics

• Suicide Rates: 13,044 student suicides in India in 2022, with 2,095 linked to examination failure (NCRB).
• IIT & Coaching Institute Suicides: Over 100 suicides in IITs from 2014-2024, with cases continuing.
• Mental Illness Reporting: Less than 1% self-reporting of mental illness in India due to societal stigma (IIT Jodhpur study).

Existing Measures and Their Limitations

• Counseling: Helps with general wellness but ineffective during critical moments (escalating depression).
• Complaint-Driven Approaches to Discrimination: These often delay action or cause fear of retaliation, worsening the situation.
• Remedial Classes: Labeling students as “academically weak” isolates them, often leading to further mental health struggles.
• Increased Load of Academic Reforms: While intended to alleviate stress, these measures unintentionally isolate vulnerable students.

Way Forward

• Inclusive Support Systems: Integrate students into the system rather than labeling them to reduce stigma and fear.
• Early Detection & Flexible Assessment: Identify academic struggles early and offer tailored assessments to boost confidence.
• Proactive Inclusion: Focus on caste-based inclusion rather than reactive complaints, with caste labels removed post-admission.
• Independent Grievance Redressal: Ensure instant online complaint resolution by third-party bodies for empathetic intervention.
• Community-Oriented Living: Encourage mutual support, shared responsibility, and emotional well-being in student environments.
• Promoting Socialization: Strengthen peer interactions to reduce isolation & build emotional resilience.
• Compassionate Education System: Foster inclusion, care, and collective action to ensure no student feels left behind.

{GS2 – Vulnerable Sections – Minorities} Rethinking Social Justice for Muslims

• Context (IE): The debate on social justice for Muslims is often confined to reservations, but a broader affirmative action approach is needed.

Background and Demand for Reservation

• The demand for Muslim reservation intensified after the Sachar Committee Report (SCR) 2006, which highlighted their severe educational and economic disadvantages.
• The National Commission for Linguistic and Religious Minorities (2007) proposed a 15% quota for minorities, including 10% for Muslims.
• Despite no immediate implementation, the demand remains relevant amid increasing socio-political challenges.

Key Arguments Against Blanket Reservation

• Legal-constitutional Issues: Indian Constitution does not allow reservations solely based on religion; courts have rejected such classifications.
• Sociological Diversity: Muslims comprise diverse biradaris with varying socio-economic conditions; a uniform reservation policy overlooks this complexity.
• Political Ramifications: Blanket reservation could trigger nationwide counter-mobilization, worsening communal and political tensions.

Alternative Policies for Muslim Affirmative Action

• Religion-Agnostic Quota Approach: Recognize all backward Muslim communities under OBCs; sub-categorize OBCs; allow Dalit Muslims in SC lists.
• Anti-Discrimination Measures: Establish an Equal Opportunity Commission; enforce laws ensuring fair treatment in education, jobs, and housing.
• Infrastructure & Sectoral Support: Improve public infrastructure in Muslim-majority areas; support industries with high Muslim employment.
• Private Sector Engagement: Promote diversity through incentives; link government subsidies and contracts to diversity compliance.
• Community-led Initiatives: Strengthen NGOs, SHGs, localized education & economic programs for empowerment.

Way Forward

• Reservations alone cannot address the complex socio-economic challenges faced by Muslims.
• A multi-dimensional approach, focusing on education, economic empowerment, and anti-discrimination, is a more sustainable path to social justice.
• Policies must be evidence-based, inclusive and politically feasible to ensure lasting impact.

  Also refer to Constitutional Debate on Caste Reservation and Minority Status

{GS3 – DM – Laws} Bill to Amend Disaster Management Act

• Context (TH): A DMK MP proposed amendments to the Disaster Management Act, 2005, to ensure fair relief distribution and restructure the National Disaster Management Authority (NDMA).

Need for Amendment

• Inadequate Relief Funds: States like Tamil Nadu have faced back-to-back natural disasters but received insufficient funds from the Centre, affecting recovery efforts.
• Delayed Disbursal: Fund disbursal delays hinder timely relief and restoration.
• Increased Disaster Frequency: Extreme weather events have intensified, necessitating a more responsive and decentralized disaster management system.
• Centre’s Stand on Fund Allocation: Relief funds follow a fixed formula under the 14th Finance Commission ensuring uniform state treatment with upfront disaster aid.
• Equitable Allocation: Existing fund distribution mechanisms do not account for varying degrees of disaster impact across states.

Key Provisions of Disaster Management (Amendment) Bill, 2024

• Replacement of NDMA: The Bill proposes replacing the NDMA with a National Disaster Management Council (NDMC).
• NDMC Composition:
  • Chaired by the Prime Minister or a nominated Minister.
  • Each State nominates a Minister as a member.
  • Decision-making based on a voting system where the PM holds 15% of votes, and states share 85% based on Rajya Sabha representation.

• Fair Fund Distribution: NDMC will set guidelines for NDRF (National Disaster Relief Funds) allocations.
• Priority-Based Funding: Allocations will depend on disaster severity and states’ emergency needs.

Concerns with the Bill

• Top-Down Approach: Uses authoritative terms like ‘monitor’ instead of inclusive governance principles like ‘supervise’ or ‘direct.’
• Limited Community Engagement: Fails to recognize local communities as first responders, ignoring global frameworks like the Sendai Framework.
• Weak Recognition of Local Roles: Does not integrate Panchayats, NGOs, and local bodies despite their critical role in initial disaster response.
• Neglect of Vulnerable Groups: Overlooks intersectional vulnerabilities of marginalized communities, failing to provide inclusive data collection.
• Lack of Performance Evaluation: No provision to assess the effectiveness of district-level authorities in disaster preparedness.
• Removal of Relief Standards: Deletes sections mandating minimum relief standards and loan repayment assistance.
• Weakened Enforcement Measures: Removes sections ensuring mandatory disaster preparedness and compliance.
• Absence of Animal Welfare Provisions: Ignores measures to protect animals affected by disasters.
• Lack of Regional Cooperation: Fails to incorporate disaster response frameworks from regional bodies like SAARC and BIMSTEC.

Additional Amendments Proposed in the Bill

• Urban Disaster Management Authorities: Establishes city-level disaster authorities led by Municipal Commissioners for better coordination in metropolitan areas.
• Mandatory SDRF Formation: Requires every state to establish a State Disaster Response Force (SDRF) to enhance preparedness.
• Legal Status to NCMC: Grants legal recognition to the National Crisis Management Committee (NCMC) to handle national-level disasters.
• Shift in Disaster Plan Responsibilities: Moves disaster plan preparation from executive committees to NDMA and SDMAs.
• Creation of Disaster Databases: Mandates NDMA and SDMAs to maintain comprehensive disaster-related databases.
• Standardized Relief Guidelines: NDMA to recommend relief compensation for affected individuals, including loss of lives, property, and livelihoods.
• Expanded Role of NDMA: Includes assessment of emerging disaster risks.
• Refined Definition of Disasters: Excludes law-&-order incidents (eg. riots) from disaster relief provisions.

Disaster Management Act, 2005

Institutional Framework

• National Disaster Management Authority (NDMA): Chaired by the Prime Minister, formulates disaster policies, guidelines, and best practices.
• National Executive Committee (NEC): Chaired by the Home Secretary, assists NDMA in policy implementation and disaster planning.
• National Institute of Disaster Management (NIDM): Conducts disaster-related training, research, and documentation.
• National Disaster Response Force (NDRF): Specialized force for rapid disaster response, working under NDMA’s supervision.

State & District-Level Institutions

• State Disaster Management Authority (SDMA): Chaired by the Chief Minister, responsible for state disaster policies and implementation.
• State Executive Committee (SEC): Drafts state disaster plans and ensures compliance with NDMA guidelines.
• District Disaster Management Authority (DDMA): Chaired by the District Magistrate, coordinates and implements disaster response at the district level.

Funding Mechanism

• National Disaster Response Fund (NDRF): Centrally funded for immediate relief, governed by NDMA guidelines.
• State Disaster Response Fund (SDRF): Jointly funded by Centre and States to handle localized disasters.
• Disaster Mitigation Fund: Established at the national, state, and district levels for proactive disaster risk reduction.

Significance for Disaster Preparedness & Risk Reduction

• Holistic Approach: Integrates disaster risk reduction into national and state policies.
• Resource Allocation: Ensures financial support for preparedness, mitigation, and rehabilitation.
• Impact on Response & Recovery: Strengthens preemptive measures, enhances post-disaster rehabilitation, and minimizes damage.

• National Policy on Disaster Management, 2009: Aims for a holistic, technology-driven, and proactive approach to disaster resilience and risk reduction.

{GS3 – IE – Banking} Rupee Depreciation and Threat of Currency Crisis

• Context (IE): India’s economic structure makes the rupee vulnerable to long-term depreciation and potential currency crises.

Rupee Depreciation 

• Rupee depreciation is the fall in the value of the Rupee against the dollar, implying that the Rupee has become less valuable and weaker against the dollar.
• In the last six months, the rupee has depreciated by 4%, recently breaching ₹86 per USD, primarily due to foreign investor exits from India.

The Role of the RBI

• RBI intervenes in the forex market to prevent excessive volatility and stabilize the rupee. It uses its foreign exchange reserves to buy or sell dollars, thereby influencing supply and demand.
• The RBI’s challenge is to balance exchange rate stability without exhausting its reserves or creating adverse market expectations.
• While the RBI has managed to prevent extreme volatility, it has not been able to halt the long-term trend of rupee depreciation.
• Exchange rate has steadily weakened, from ₹45.56 per USD in 2010-11 to ₹86.95 per USD in Feb 2025.

Impact of Rupee Depreciation

• Increased Import Costs: Imports become more expensive, which can lead to higher prices for goods and services in India, contributing to inflation.
• Impact on Exports: Theoretically, a weaker rupee can make Indian exports more competitive in the global market. However, India’s dependence on crude oil, gas etc. import limits advantages.
• Impact on Foreign Debt: Depreciating rupee makes it more expensive for India to pay its foreign debt.
• Impact on Foreign Travel and Education: It becomes more expensive for Indians to travel abroad, and for students to study in foreign countries.

Risk of Currency Crisis

• A currency crisis occurs when a currency undergoes a sudden and sharp depreciation, often triggered by massive capital flight.
• While India has so far avoided such a crisis, the risk remains due to its structural & policy-related issues.

India’s Vulnerability to Currency Crisis

• Market-determined exchange rate system: Makes Indian rupee more volatile and dependent on global economic conditions.
• Persistent Inflation Differentials: India’s higher inflation than international market erodes the rupee’s purchasing power faster, causing gradual depreciation.
• Current Account Deficit (CAD): India’s trade deficit persists as export earnings fall short of import expenses, making India reliant on capital inflows for currency stability.
• Volatile Capital Inflows: Global economic uncertainties, interest rate hikes in advanced economies, and shifts in investor sentiment can lead to sudden capital outflows from India.

Way Forward

• Diversifying Exports: It can enhance foreign exchange earnings and reduce the trade deficit.
• Promoting self-reliance: Especially in essential commodities, can lessen import dependence.
• Strengthening Foreign Exchange Reserves: Can provide a buffer against external shocks and bolster investor confidence.
• Prudent Fiscal Management: It can help manage inflation and support currency stability.

{GS3 – IE – Industry} Enhanced Economic Data Releases from FY26

• Context (IE): Govt to introduce new capex survey, monthly labour data, and revised industrial output release from FY26 for better policy formulation.

April- Private Capex Survey

• Purpose: Assess capital investment trends in the private corporate sector, covering both financial and non-financial enterprises.
• Scope: Covers capex expenditure of the past three years and projections for the next two years.
• Coverage: Includes financial and non-financial corporations across industries and asset types.
• Significance: Provides insights into investment trends and key sectors attracting major investments.
• Implementation: Set for release on April 30, 2025 by the Ministry of Statistics and Programme Implementation (MoSPI).

Importance of Private Capex

• Drives economic growth by increasing demand and employment.
• Boosts infrastructure development in transport, housing, and industry.
• Leads to higher corporate profits and overall economic expansion.

Monthly- Periodic Labour Force Survey (PLFS)

• Launched in 2017 by NSSO (National Sample Survey Organisation).
• Key Indicators: Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR).
• Back Series Data: Adjustments for higher standard error due to smaller sample sizes to ensure comparability with past data.
• New Frequency: Monthly PLFS reports to be released on the 15th of every month from May 2025.
• Quarterly Data will be published one month after the end of each quarter.

Significance

• Comparison: Currently, rural PLFS data is annual, urban data is quarterly, a combined report by merging urban and rural data annually and Centre for Monitoring Indian Economy (CMIE) publishes similar employment data on a weekly and monthly basis.
• The shift towards timely, high-frequency economic data will support better planning, investment decisions, and economic policy formulation.

28^th of Every Month- Factory Output Data

• Index of Industrial Production (IIP): Measures short-term industrial production changes relative to a base period.
• Current Schedule: Released on the 12th of each month, with a 42-day lag.
• New Schedule: From April 2025, data will be released on the 28th of every month reducing the time lag and aligning with other economic indicators like retail inflation.

Impact

• Crucial for calculating the manufacturing sector’s Gross Value Added (GVA) in GDP and aligning economic indicators like retail inflation.
• Will improve policymaking by the govt and RBI through better synchronization of economic data.