The Hindu Editorial Analysis : 31st January 2026

The Hindu Editorial Analysis

We understand the significance of reading The Hindu newspaper for enhancing reading skills, improving comprehension of passages, staying informed about current events, enhancing essay writing, and more, especially for banking aspirants who need to focus on editorials for vocabulary building. This article will explore today’s editorial points, along with practice questions and key vocabulary.

Survey Shows Optimism for India Amid Global Uncertainty

• The Economic Survey 2025–26, presented on Thursday, gave a fairly positive picture of India’s future growth. It increased India’s medium-term growth estimate to 7%, compared to the earlier estimate of 6.5%.
• At the same time, the Survey painted a worrying picture of the global economy. It said there is a 10%–20% chance that the world could face a serious economic crisis in 2026, which could be even worse than the 2008 global financial crisis.
• Even if the global situation turns out to be the best possible, the Survey said that conditions similar to 2025 are likely to continue, but in a world that is becoming more unstable and uncertain.
• The Survey was written by Chief Economic Adviser V. Anantha Nageswaran and was presented in Parliament by Union Finance Minister Nirmala Sitharaman. It said that all three global situations it discussed could create risks for India in different ways.
• The improvement in India’s medium-term growth estimate is mainly because of increased investment in capital, more people joining the workforce, and better use of both workers and capital.
• For the current financial year 2025–26, the Survey referred to the government’s growth estimate of 7.4%. It also said that its own estimate for the third quarter (October–December 2025) shows growth at around 7%.
• For the year 2026–27, the Survey expects economic growth to be between 6.8% and 7.2%.
• The Survey reminded readers that in its 2022–23 edition, India’s medium-term growth was estimated at 6.5%, with the possibility of increasing to 7%–8% only if long-term reforms were continued.
• Over the last three years, the Survey said that reform efforts have gained strength in many important areas that affect long-term growth.
• The Survey pointed to steps taken to support manufacturing, such as production-linked incentive (PLI) schemes, easier rules for foreign direct investment (FDI), and improvements in logistics, which have helped create more production capacity.
• These steps were supported by continued government spending on roads, railways, and digital infrastructure, simpler tax laws, and special measures to help small and medium businesses get easier access to credit.
• The Survey also said that these reforms have gone hand in hand with healthier company balance sheets, stronger banks and financial institutions, more formal jobs, and better tax collection systems.
• Taken together, the Survey argued that these developments clearly show that India’s potential medium-term growth has increased to around 7%.
• The Survey described three possible global situations that could develop in 2026. The worst-case situation, which could have effects even more serious than the 2008 crisis, was given a 10%–20% chance.
• In this worst-case situation, problems related to finance, technology, and global politics could all happen together and worsen each other instead of remaining separate.
• One major risk mentioned was the large amount of borrowing and investment happening in artificial intelligence (AI).
• The Survey warned that many AI-related businesses depend on very optimistic timelines, a small number of customers, and investments that take a long time to recover.
• If there is a major slowdown or correction in the AI sector, the Survey said that technology use would still continue, but financial conditions could become tighter, investors could become more cautious, and the impact could spread to the broader financial markets.
• If this situation happens along with increased global tensions or problems in international trade, it could lead to a sharp fall in global money flows, reduced investment across countries, and governments turning towards more defensive economic policies.
• Although this worst-case situation is less likely, the Survey stressed that its impact would be very uneven and could cause economic damage worse than what was seen during the 2008 crisis.
• The best-case global situation was given a 40%–45% chance. In this case, global conditions similar to 2025 would continue into 2026, but would remain fragile.
• The third situation, also given a 40%–45% chance, involves a major increase in global instability due to growing rivalry between powerful countries.
• In this situation, conflicts like the Russia–Ukraine war would remain unresolved in a way that keeps creating instability, and global security arrangements would become weaker.
• The Survey said that in all three situations, India would be in a better position than many other countries, but it would still face challenges.
• One common risk for India in all scenarios is disruption in foreign investment and money flows, which could affect the value of the rupee. The difference would only be in how serious and how long-lasting the impact is.
• The Survey warned that the effects of such disruptions may not end within a single year and could continue for a longer period.
• To deal with this, the Survey said India needs to attract enough investment and earn sufficient foreign currency through exports to pay for its rising imports.
• It added that even if India becomes more self-reliant, higher incomes will naturally lead to more imports, making it important to maintain this balance.

SC puts 2026 UGC campus equity norms on hold, says provisions are “overly broad”

• Amid widespread protests, the Supreme Court on Thursday put the University Grants Commission (Promotion of Equity in Higher Education Institutions) Regulations, 2026 on hold.
• The Court said the regulations appear to recognise discrimination only against Scheduled Castes (SCs), Scheduled Tribes (STs), and Other Backward Classes (OBCs), while not offering similar protection to students from the general or upper-caste categories.
• Chief Justice of India Surya Kant, heading a Bench that also included Justice Joymalya Bagchi, said the 2026 Regulations could have serious consequences and might divide society.
• The Supreme Court agreed that the regulations need a more detailed examination.
• The Court ordered that, for now, the older University Grants Commission (Promotion of Equity in Higher Education Institutions) Regulations, 2012 will continue to apply.
• Senior advocate Indira Jaising and advocate Prasanna S. opposed the stay order. They argued that putting the regulations on hold was like “calling a fully able person as disabled.”
• The Chief Justice questioned whether, after 75 years of effort to build a society without caste divisions, the country was moving towards policies that could take it backward.
• The Court issued notices to the Union government and the UGC on petitions that specifically challenged Regulation 3(c) of the 2026 Regulations.
• Regulation 3(c) defined “caste-based discrimination” as discrimination “only on the basis of caste or tribe against members of the Scheduled Castes, Scheduled Tribes and Other Backward Classes.”
• A lawyer representing the petitioners said ragging is a serious problem on college campuses. He gave an example where a general category student who resists ragging by a Scheduled Caste senior could be accused under the 2026 Regulations, while the fresher would have no legal protection.
• The petitioners argued that such a case could quickly turn into a police matter, where the fresher could be arrested, sent to jail, and have his future damaged, possibly on his very first day in college.
• Indira Jaising replied that the regulations were meant to deal with the real and ongoing discrimination faced by Dalit and historically disadvantaged students in higher education.
• Prasanna S. added that discrimination does not happen only because of caste.
• Justice Bagchi said that instead of focusing only on caste, the regulations should address discrimination in a more inclusive way.
• Justice Bagchi also warned against a situation where schools and hostels become divided, saying that India’s unity should be reflected within its educational institutions.
• Chief Justice Kant asked how people would behave outside campuses if such divisions were encouraged within campuses.

Bihar Cabinet Approves Extra ₹2 Lakh Assistance for Women Entrepreneurs

• The Bihar Cabinet on Thursday approved providing additional financial help of up to ₹2 lakh to women entrepreneurs so they can run businesses of their choice under the Mukhyamantri Mahila Rojgar Yojana.
• This scheme was first launched in August 2025.
• Arvind Kumar Choudhary, Additional Chief Secretary in the Cabinet Secretariat Department, told reporters after the Cabinet meeting that approval has been given to extend extra financial support to women already benefiting from the scheme.
• The Nitish Kumar-led State government introduced this scheme last August with the aim of economically empowering women across Bihar.
• The scheme is believed to have played a major role in helping the National Democratic Alliance (NDA) win 202 out of 243 Assembly seats in the most recent election.
• Under the scheme, one woman from each family receives an initial amount of ₹10,000 to start a business of her choice, with the goal of creating employment within the State.
• Since the scheme was launched in September 2025, the State government has transferred ₹10,000 each into the bank accounts of 1.56 crore women beneficiaries.
• Chief Minister Nitish Kumar, in a post on X, said he was happy to announce that the process of providing additional financial assistance of up to ₹2 lakh to selected beneficiaries has begun.
• He said the extra money will be given in stages and only after it is confirmed that the earlier amount was properly used.
• The Cabinet also approved the Bihar Government Servants’ Conduct (Amendment) Rules 2026, which aim to regulate the behaviour of government employees.
• These new rules include clear instructions about how government employees should use social media and will apply across the entire State.
• Rajender, Additional Chief Secretary of the General Administration Department, said that under the new code of conduct, government employees are not allowed to use government symbols, official phone numbers, job titles, or similar details on social media accounts, whether the account is real or under a fake name.
• He also said that employees must avoid sharing personal opinions or commenting on political, government, or other sensitive matters online.
• The Cabinet also approved the Bihar Semiconductor Policy 2026, which aims to attract private companies to invest in the State.
• Industries Department Secretary Kundan Kumar said that companies investing under this policy will receive a subsidy of 60% of their capital investment.
• He explained that while the Central government provides a 50% subsidy, the Bihar government will cover 60% of the remaining amount.

Important Questions

1. Why did the Economic Survey 2025–26 raise India’s medium-term growth forecast to 7%?
2. What risks does the Survey identify in the worst-case global scenario for 2026?
3. Why did the Supreme Court keep the University Grants Commission Regulations, 2026 in abeyance?
4. How did Regulation 3(c) of the 2026 UGC Regulations, defining caste-based discrimination, raise concerns about ragging, legal remedies, and campus division?
5. What decision did the Bihar Cabinet take regarding additional financial assistance of up to ₹2 lakh under the Mukhyamantri Mahila Rojgar Yojana for women entrepreneurs?
6. How does the Bihar Semiconductor Policy 2026, including a 60% capital expenditure subsidy, aim to attract private investment into the State?

Important Vocabulary

1. Bleak – showing little hope or positivity.
2. Asymmetric – unequal or uneven in impact.
3. Indigenisation – producing goods within the country instead of importing.
4. Liquidity – availability of money in the financial system.
5. Abeyance – temporarily stopped or put on hold.
6. Provisions – specific rules or clauses in a law.
7. Intervened – stepped in to take part in a legal case.
8. Segregated – separated into different groups.
9. Empowerment – gaining economic or social strength.
10. Beneficiaries – people who receive benefits from a scheme.
11. Subsidy – financial support given by the government.
12. Pseudonym – a fake or assumed name.

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