02 July 2025: Indian Express Editorial Analysis
1. Passing the Test
(Source: Editorial Page, The Indian Express)
| Topic: GS Paper 3 – Indian Economy: Banking Sector, Financial Stability, Household Debt |
| Context |
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Resilient Indian Banking System
- RBI’s Financial Stability Report affirms strong bank health.
- Capital to risk-weighted assets ratio rose to 17.3%.
- Gross NPAs declined to 2.3% in March 2025.
- Liquidity and capital buffers remain robust.
Concerns Over Rising Household Debt
- Household debt surged to 41.9% of GDP by Dec 2024.
- High debt raises worries amid global uncertainty.
- Non-housing loans have grown faster than housing ones.
- Retail unsecured lending shows early signs of stress.
Stress Pockets in the Credit Market
- Microfinance loans past due have risen to 6.2%.
- Private banks show more stress than public ones.
- Slippages in retail loans are a concern area.
- RBI flags retail segment for close monitoring.
Need for Vigilance Amid Global Risks
- RBI stress tests account for geopolitical and market shocks.
- Indian banks meet minimum capital norms even in stress scenarios.
- Sound regulation has built long-term system resilience.
- Continued vigilance is vital amid volatile global outlook.
Conclusion and Way Forward
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While the overall banking sector is strong, targeted monitoring of high-risk areas like unsecured lending and microfinance is essential.
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The RBI should intensify its regulatory oversight and ensure data-driven risk mitigation.
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Banks must adopt stricter lending norms and build counter-cyclical buffers to address rising debt vulnerability.
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Policymakers must align lending incentives with long-term economic sustainability rather than short-term consumption booms.
| Practice Question: (GS-3 | 15 Marks | 250 Words)
Despite global headwinds, the Indian banking system remains resilient. |
Also Read: The Hindu Editorial Analysis- 02 June 2025
2. Nuts and Bolts Diplomacy
(Source: Editorial Page, The Indian Express)
| Topic: GS Paper 2 – International Relations: India’s Foreign Policy, Strategic Groupings like BRICS, Quad, Global Diplomacy |
| Context |
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India’s Shift to Interest-Based Diplomacy
- India is moving away from ideological alliances like BRICS or NAM.
- Focus is now on securing national interests in a turbulent global order.
- Multi-alignment replaces bloc-centric diplomacy.
- Modi’s foreign trips emphasize bilateral gains over group loyalty.
BRICS’ Internal Contradictions
- Tensions between India and China weaken BRICS coherence.
- Rejection of the summit by Argentina shows cracks in unity.
- Russia’s closeness to China undercuts BRICS’ multipolar claim.
- India is cautious about being boxed into a China-led bloc.
U.S.-China Rivalry and India’s Dilemma
- Trump’s overtures to Pakistan caused unease in Delhi.
- India avoids choosing sides between the U.S. and China.
- Delhi engages with both powers to maintain balance.
- Strategic autonomy remains central to Indian diplomacy.
Quad and the Indo-Pacific Strategy
- Quad offers India a counterweight to China in the region.
- Promoting a “multipolar Asia” aligns with Delhi’s vision.
- Quad’s rising relevance is seen in security and trade.
- India leverages Quad to assert Indo-Pacific leadership.
Conclusion:
- India is shifting from ideological blocs to pragmatic, interest-based diplomacy.
- Strategic autonomy is guiding its balanced ties with both the West and Global South.
- Focus is now on regional stability and economic opportunities, not symbolic leadership.
- This signals India’s maturing role as a key player in a multipolar world.
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Practice Question: (GS-3 | 10 Marks | 150 Words) “India’s foreign policy must be guided more by strategic interests than ideological alignments.” Discuss this in light of India’s role in BRICS, Quad, and regional forums. |
Read more – 01 July 2025 : Indian Express Editorial Analysis
