Content:
- Not worth the risk
- A Budget that is mostly good but with one wrong move
- A green signal for India to assert its health leadership
Not worth the risk
Context and Concerns
- The U.S. has intensified Immigration and Customs Enforcement (ICE) operations, leading to a sharp rise in deportations.
- In 2024 alone, over 1,60,000 individuals were deported globally, with India among the key affected nations.
- The use of military flights for deportation under Donald Trump’s presidency underscores a no-compromise stance.
- With an estimated 7,25,000 undocumented Indians in the U.S., India must brace for a surge in returnees.
Relevance : GS 2(International Relations)
Practice Question: The recent increase in deportations of illegal Indian immigrants from the U.S. highlights the need for a balanced approach to migration. Discuss the causes of illegal emigration from India, its impact, and the steps the government can take to address this issue. (250 words)
Why is Illegal Emigration a Growing Problem?
- Economic Push Factors:
- High unemployment rates, particularly in Punjab, Haryana, and Gujarat, push youth to seek better opportunities abroad.
- Agrarian distress and limited industrial growth reduce viable employment prospects.
- Social Aspirations:
- Migration is often seen as a status symbol, with families investing heavily in illegal routes via agents.
- The perception that illegal work in the U.S. or Canada is still lucrative, despite risks, fuels emigration.
- Organized Human Smuggling Networks:
- Many Indians take dangerous routes via Mexico and Canada, facilitated by illegal agents.
- These networks exploit legal loopholes and use fake documentation to facilitate illegal entry.
- Inadequate Awareness and Policy Gaps:
- Lack of awareness about the dangers of illegal migration, including detention and deportation.
- Limited access to legal migration pathways for semi-skilled and unskilled workers.
Implications for India
- Diplomatic and Bilateral Strains:
- Mass deportations could become a friction point in India-U.S. relations.
- Prime Minister Modi’s upcoming U.S. visit will likely involve discussions on migration policies.
- Humanitarian and Socioeconomic Challenges:
- Returnees face difficulties reintegrating into society due to stigma and lack of employment.
- The government must support rehabilitation efforts to prevent repeat attempts at illegal migration.
- Security and Law Enforcement Concerns:
- Stronger border controls and tighter scrutiny of illegal immigration networks are needed.
- Crackdowns on fraudulent visa agents and smuggling rackets must be prioritized.
Way Forward: A Multi-Pronged Approach
Awareness and Prevention
- Large-scale awareness campaigns in high-migration states.
- Promotion of legal migration routes and overseas job opportunities.
Strengthening Domestic Employment Opportunities
- Skill development programs aligned with global job markets.
- Boosting economic growth in states with high illegal emigration rates.
Diplomatic Engagement
- Negotiations with the U.S. for more work visas under H-1B and other categories.
- Enhanced cooperation with Mexico and Canada to curb illegal transit.
Strict Crackdown on Illegal Networks
- Identifying and dismantling human smuggling operations.
- Stringent penalties for agents involved in visa fraud and illegal migration.
A Budget that is mostly good but with one wrong move
Context :The Union Budget 2025-26 focuses on growth and fiscal prudence but weakens transparency by shifting from fiscal deficit targets to ambiguous debt-GDP scenarios.
Relevance : GS 2(Governance), GS 3(Economy)
Practice Question :The Union Budget 2025-26 takes several positive steps towards economic growth but falters in fiscal transparency. Critically analyze. (250 words)
Positive Aspects of the Budget
Realistic Economic Projections
- Nominal GDP growth for 2025–26 is projected at 10.1%, which aligns with the Economic Survey’s real GDP growth range of 6.3%-6.8%.
- Provides a buffer for potential economic upturns.
Capital Expenditure Focus
- Increased by ₹1.03 lakh crore over 2024-25 (RE), totaling ₹11.2 lakh crore.
- Share of capital expenditure in total government spending has improved significantly over the last five years, indicating an emphasis on infrastructure-driven growth.
Direct Taxation Shift
- The share of direct taxes in gross tax revenues (GTR) has risen from 52% in 2021-22 to 59% in 2025-26 (BE).
- Personal income tax (PIT) growth, though declining, remains robust.
Tax Relief for Middle-Class
- Concessions in personal income tax provide relief, though their demand-side impact depends on the marginal propensity to consume of beneficiaries.
Improvement in Revenue Assumptions
- Government revenue growth appears realistic, with GTR expected to grow at 10.8% in 2025-26 (BE).
- Non-tax revenues, primarily from RBI and PSU dividends, have increased by ₹35,715 crore over revised estimates.
Investment in Emerging Technologies
- Recognition of AI as a crucial domain; however, the Budget does not match the large-scale investments seen in China or the US.
- Suggestion to incentivize private-sector R&D through tax concessions is notable.
The Major Flaw
Move Away from Fiscal Deficit as the Key Indicator
- Previous Glide Path: The Medium-Term Fiscal Policy Strategy aimed to reduce fiscal deficit to below 4.5% by 2025-26.
- New Approach: Shift towards focusing on the debt-to-GDP ratio with different scenarios, rather than a fixed deficit reduction path.
Why is this a Concern?
- Transparency is reduced as fiscal deficit is a clear, measurable indicator, while debt-GDP ratios under multiple scenarios introduce ambiguity.
- Investors and rating agencies rely on fiscal deficit trends to assess macroeconomic stability.
- A higher government claim on investible resources may crowd out private sector investment.
Fiscal Responsibility and Budget Management (FRBM) Act Implications
- The FRBM targets for fiscal deficit reduction now lack specific timelines, making it unclear when fiscal prudence goals will be met.
- Adopting vague fiscal consolidation paths weakens fiscal discipline.
A green signal for India to assert its health leadership
Introduction : The Union Budget 2025-26 has laid a strong foundation for India’s leadership in global healthcare by focusing on medical infrastructure, workforce expansion, and cutting-edge technology. With a ₹90,958 crore healthcare allocation and initiatives such as ‘Heal in India’ and ‘Heal by India,’ the country is set to become a hub for medical tourism and global healthcare support.
Relevance : GS 2(Health)
Practice Question : The Union Budget 2025-26 has laid the foundation for India to assert its leadership in global healthcare. Critically examine the key initiatives and their impact on India’s healthcare sector. (250 words)
Important Budgetary Allocations and Their Significance
Strengthening Medical Education
- The addition of 75,000 medical seats over five years, with 10,000 seats in FY26, aims to address India’s doctor-patient ratio and support global demand for healthcare professionals.
- Expansion in medical education aligns with the ‘Heal by India’ initiative, facilitating the deployment of Indian medical talent abroad.
Boosting Medical Infrastructure
- 200 day-care cancer centres in district hospitals will provide early diagnosis and specialized treatment, critical for tackling rising non-communicable diseases (NCDs).
- Investment in public-private partnerships (PPP) enhances accessibility and affordability of quality healthcare.
Reducing Healthcare Costs
- Customs duty exemptions on 36 life-saving drugs (cancer, rare diseases, chronic illnesses) will make treatments more affordable.
- 13 new patient assistance programs improve access to critical medications for chronic conditions.
India’s Global Healthcare Leadership
‘Heal in India’ – Medical Tourism Expansion
- Streamlined visa processes, improved hospital infrastructure, and a skilled workforce position India as a top destination for international patients.
- Facilities such as Proton Therapy for advanced cancer care at Apollo Hospitals attract patients from developed nations like the UK and Australia.
‘Heal by India’ – Addressing the Global Healthcare Workforce Shortage
- India is exporting trained doctors, nurses, and paramedics to countries facing a healthcare workforce crisis.
- Strengthening India’s role in global healthcare diplomacy by filling critical skill gaps abroad.
Technological Advancements in Healthcare
Artificial Intelligence & Digital Health
- Establishment of National Centres of Excellence for AI-driven diagnostics, research, and treatment innovation.
- Digital healthcare solutions will enhance efficiency, accessibility, and precision in medical care.
Leveraging India’s Strength in Innovation
- Private sector contribution, including hospitals like Apollo, has played a key role in introducing cutting-edge treatments and attracting international patients.
- The integration of telemedicine and digital consultations further expands India’s healthcare reach.
Challenges and the Way Forward
Challenges:
- Infrastructure Gaps: While initiatives are robust, rural areas still lack adequate healthcare infrastructure.
- Affordability Concerns: Even with customs exemptions, out-of-pocket healthcare expenses remain high.
- Implementation Hurdles: Effective execution of AI-based healthcare and medical tourism policies will require strong regulatory frameworks.
Way Forward:
- Expanding insurance coverage and public healthcare spending.
- Strengthening the last-mile delivery of quality medical services in rural India.
- Promoting R&D in pharmaceuticals and medical devices to reduce dependence on imports.
