20 February 2026

India’s defence modernisation efforts have accelerated in recent years amid evolving security challenges along its borders and the broader Indo-Pacific region. From large-scale procurement of indigenous platforms to reforms in defence acquisition procedures, the push toward self-reliance has gained strategic and economic significance. The emphasis on indigenous manufacturing under the Atmanirbhar Bharat initiative reflects a paradigm shift in India’s defence policy—from being one of the world’s largest arms importers to aspiring to become a major defence exporter.

Recent developments such as increased defence exports, induction of advanced missile systems, naval shipbuilding expansion, and production-linked incentives for defence manufacturing have kept the sector in the news. The policy direction is shaped by strategic assessments, particularly after border tensions with China and the need for technological superiority.

Institutions such as the Ministry of Defence, Defence Research and Development Organisation, and public sector undertakings like Hindustan Aeronautics Limited play a pivotal role in this transformation. The reforms also involve the corporatisation of the Ordnance Factory Board and greater participation of private industry.

Defence modernisation is not merely about weapons acquisition; it is about strengthening deterrence, enhancing technological capability, and fostering strategic autonomy. For UPSC aspirants, the issue intersects with national security, defence technology, economic policy, and foreign relations.

Historical Dependence and the Need for Reform

Historically, India relied heavily on imports for major defence platforms. According to global arms trade data, India has been among the top arms importers for decades. Dependence on foreign suppliers creates vulnerabilities, including supply disruptions, technology denial regimes, and strategic constraints.

The 1999 Kargil conflict highlighted gaps in equipment and surveillance systems. Subsequent reforms aimed to streamline procurement and promote indigenisation. However, bureaucratic delays and limited private participation slowed progress.

The Atmanirbhar Bharat initiative revitalised defence indigenisation by introducing negative import lists, encouraging domestic production, and simplifying procurement norms. These reforms reflect recognition that national security cannot be divorced from industrial capability.

Five Important Key Points:

• India has introduced “negative import lists” banning certain defence imports.
• Defence exports have increased significantly in recent years.
• The Ordnance Factory Board was corporatised to improve efficiency.
• Private sector participation in defence production has expanded.
• Indigenous platforms such as the Tejas fighter aircraft are being inducted.

These steps indicate a structural shift in India’s defence industrial policy.

Constitutional and Legal Framework

While defence is a Union subject under the Seventh Schedule of the Constitution (List I), parliamentary oversight remains essential. Article 246 empowers Parliament to legislate on defence matters. Budgetary allocations for defence are approved annually by Parliament, reflecting democratic accountability.

Procurement procedures are governed by the Defence Acquisition Procedure (DAP), which emphasises transparency, indigenous content, and technology transfer. The DAP categorises procurement under “Buy Indian,” “Buy and Make Indian,” and other classifications to prioritise domestic industry.

India is also a signatory to international export control regimes such as the Missile Technology Control Regime (MTCR), which influences its defence technology cooperation.

Technological Advancement and Strategic Deterrence

Modern warfare increasingly depends on advanced technologies such as artificial intelligence, cyber capabilities, drones, and space-based surveillance. Indigenous research through DRDO has produced missile systems like Agni and Akash, enhancing strategic deterrence.

The induction of the Light Combat Aircraft (LCA) Tejas represents a milestone in indigenous aerospace capability. Naval shipbuilding programmes, including aircraft carriers and submarines, underscore India’s maritime ambitions.

Space-based assets for communication and reconnaissance strengthen network-centric warfare capabilities. The establishment of the Defence Space Agency reflects recognition of space as a strategic domain.

Technological self-reliance reduces dependence on foreign suppliers and enhances operational readiness. It also fosters innovation ecosystems linking academia, startups, and defence industries.

Economic and Industrial Implications

Defence manufacturing has significant multiplier effects. It stimulates sectors such as metallurgy, electronics, software, and advanced materials. The government has set ambitious targets for defence exports, aiming to transform India into a net exporter.

The corporatisation of ordnance factories aims to enhance efficiency, accountability, and competitiveness. By converting them into government-owned corporate entities, the reform seeks to align them with modern industrial practices.

Foreign Direct Investment (FDI) limits in defence have been liberalised, allowing up to 74% through the automatic route and higher through government approval. This encourages joint ventures and technology transfer.

However, balancing foreign investment with strategic autonomy remains a delicate task. Excessive reliance on foreign capital could undermine indigenous capability.

Strategic Environment and Geopolitical Considerations

India faces a complex security environment, including unresolved border issues with China and Pakistan. The Doklam standoff and Galwan clashes underscored the need for rapid deployment and advanced equipment.

In the maritime domain, China’s increasing presence in the Indian Ocean necessitates naval modernisation. The Indo-Pacific concept has gained prominence, with India participating in multilateral forums such as the Quad alongside the United States, Japan, and Australia.

Defence cooperation agreements, including logistics and technology-sharing arrangements, complement domestic manufacturing efforts. However, strategic autonomy remains a guiding principle.

Defence modernisation thus serves both deterrence and diplomatic leverage. A robust defence industrial base enhances India’s credibility as a security partner.

Challenges and Structural Constraints

Despite progress, several challenges persist.

First, research and development expenditure as a percentage of GDP remains modest compared to advanced economies.

Second, delays in procurement processes can hamper timely modernisation.

Third, coordination between public sector units and private industry requires improvement.

Fourth, technology gaps in areas like jet engines and advanced electronics remain significant.

Fifth, export competitiveness depends on quality assurance and after-sales support.

Addressing these constraints requires long-term policy stability and sustained investment.

Way Forward

A comprehensive strategy for defence modernisation should include increased R&D spending, particularly in emerging technologies such as quantum computing and hypersonic weapons.

Strengthening collaboration between academia and industry can accelerate innovation.

Streamlining procurement timelines and enhancing transparency will improve efficiency.

Skill development programmes focused on defence manufacturing can create a specialised workforce.

Export promotion through defence diplomacy can open new markets in Africa and Southeast Asia.

Ultimately, defence modernisation must integrate strategic, technological, and economic objectives.

Relevance for UPSC and SSC Examinations

For UPSC Prelims, aspirants should understand key defence reforms, institutions like DRDO, and concepts such as negative import lists.

For UPSC Mains (GS Paper III), the topic is directly relevant under internal security, defence technology, and indigenisation of technology.

For GS Paper II, it connects with India’s foreign policy and international relations.

For SSC examinations, questions may focus on recent defence initiatives, institutions, and basic facts about indigenous platforms.

In conclusion, India’s defence modernisation under Atmanirbhar Bharat represents a strategic recalibration toward self-reliance and technological empowerment. It strengthens deterrence, stimulates economic growth, and enhances India’s standing in global security architecture. While challenges remain, sustained reforms and innovation can transform India into a formidable defence manufacturing hub, reinforcing both national security and economic resilience.

India’s push toward a green hydrogen economy has gained renewed momentum with policy incentives, pilot projects, and international partnerships under the National Green Hydrogen Mission. As countries accelerate their decarbonisation commitments under the Paris Agreement, green hydrogen is emerging as a critical pillar of long-term energy transition strategies. India, being one of the world’s fastest-growing energy consumers and the third-largest emitter of greenhouse gases, faces the dual challenge of ensuring energy security while meeting climate obligations.

The National Green Hydrogen Mission was formally approved to position India as a global hub for production, usage, and export of green hydrogen. It aligns with India’s commitment to achieve net-zero emissions by 2070, as announced at COP26. The issue is in news due to new production-linked incentive schemes, public-private investments, and bilateral agreements with countries such as Japan and Germany for hydrogen supply chains.

Green hydrogen is not merely a technological innovation; it represents a structural shift in industrial energy use, transportation, and power generation. For UPSC aspirants, the topic integrates environmental sustainability, industrial policy, renewable energy economics, and international climate diplomacy.

Understanding Green Hydrogen and Its Production

Hydrogen is the most abundant element in the universe but rarely exists freely in nature. It must be extracted from compounds such as water or hydrocarbons. The environmental impact of hydrogen depends on how it is produced.

Green hydrogen is produced by electrolysing water using electricity generated from renewable sources like solar and wind. Since the process emits no carbon dioxide, it is considered environmentally sustainable.

Five Important Key Points:

• Green hydrogen is produced through electrolysis powered by renewable energy.
• It emits zero carbon dioxide during production and usage.
• It can decarbonise hard-to-abate sectors like steel, cement, and fertilisers.
• It supports energy storage and grid balancing for intermittent renewables.
• India aims to become a major exporter of green hydrogen and derivatives like green ammonia.

The scientific principle underlying electrolysis involves splitting water (H₂O) into hydrogen (H₂) and oxygen (O₂) using electrical energy. This process is central to understanding green hydrogen’s viability.

Climate Commitments and Decarbonisation Strategy

India is a signatory to the Paris Agreement and has updated its Nationally Determined Contributions (NDCs). The energy sector accounts for a significant portion of India’s greenhouse gas emissions. Transitioning from fossil fuels to renewable energy is essential to meet climate targets.

Green hydrogen addresses sectors where direct electrification is difficult. Heavy industries such as steel manufacturing rely on coal-based blast furnaces. Replacing coal with hydrogen can significantly reduce emissions. Similarly, in long-haul transport and shipping, hydrogen-based fuels offer cleaner alternatives.

India’s renewable energy capacity expansion—particularly solar and wind—provides the foundation for green hydrogen production. The synergy between renewable energy and hydrogen strengthens grid resilience and reduces dependence on imported fossil fuels.

Economic Implications and Industrial Policy

The Green Hydrogen Mission is not solely an environmental initiative; it is also an industrial strategy. By fostering domestic manufacturing of electrolysers, India aims to create a competitive value chain. This aligns with the broader “Make in India” and Atmanirbhar Bharat initiatives.

Hydrogen production requires significant infrastructure investments, including storage facilities, pipelines, and export terminals. This infrastructure development can generate employment and stimulate ancillary industries.

However, cost remains a major challenge. Currently, green hydrogen is more expensive than grey hydrogen (produced from natural gas without carbon capture). Achieving cost parity requires economies of scale, technological innovation, and policy support.

From an economic standpoint, reducing import dependence on crude oil and natural gas enhances energy security. India imports over 80% of its crude oil needs. Developing domestic hydrogen production diversifies the energy mix and reduces vulnerability to global price volatility.

Technological Dimensions and Innovation

Electrolysis technologies include alkaline electrolysers and proton exchange membrane (PEM) electrolysers. Research is ongoing to improve efficiency and reduce costs.

Hydrogen storage poses technical challenges due to its low volumetric energy density. It can be stored as compressed gas, liquefied hydrogen, or converted into derivatives like ammonia.

India’s scientific institutions and startups are actively engaged in research and development. Collaboration between public sector enterprises and private companies is essential to accelerate technological breakthroughs.

The mission also integrates with India’s broader clean energy initiatives such as the National Solar Mission and the Production Linked Incentive (PLI) scheme for renewable components.

International Cooperation and Strategic Positioning

Hydrogen is emerging as a key element of global energy geopolitics. Countries with abundant renewable resources aim to become exporters of green hydrogen. India’s geographic location and solar potential position it favorably.

Partnerships with the European Union, Japan, and Gulf countries are shaping international hydrogen supply chains. The India–Middle East–Europe Economic Corridor (IMEC) may eventually facilitate hydrogen transport infrastructure.

Participation in global forums like the International Solar Alliance enhances India’s credibility as a clean energy leader. Hydrogen diplomacy strengthens India’s strategic partnerships and supports its aspiration to lead the Global South in climate action.

Governance and Regulatory Framework

Effective implementation of the Green Hydrogen Mission requires robust governance. Clear standards for defining “green hydrogen” are necessary to prevent greenwashing.

Regulatory mechanisms must ensure safety in storage and transportation. Hydrogen is highly flammable, and safety protocols are critical.

Financial incentives, viability gap funding, and carbon pricing mechanisms can support market development. Carbon markets under the Energy Conservation (Amendment) Act may complement hydrogen deployment.

Policy coordination between the Ministry of New and Renewable Energy, Ministry of Power, and Ministry of Petroleum and Natural Gas is essential.

Challenges and Constraints

Despite its promise, green hydrogen faces several obstacles.

First, high production costs limit competitiveness. Scaling renewable capacity is essential to reduce input costs.

Second, water availability is a concern. Electrolysis requires substantial water resources, which may pose challenges in water-stressed regions.

Third, infrastructure gaps in storage and transport need significant capital investment.

Fourth, global competition may intensify as other countries also pursue hydrogen leadership.

Fifth, skill development and technological expertise must be strengthened.

Way Forward

A phased implementation strategy is necessary. Pilot projects in refineries and fertiliser plants can demonstrate feasibility.

Investing in research and development can reduce dependence on imported electrolyser technologies.

International collaboration for technology transfer and financing can accelerate progress.

Integrating hydrogen with existing renewable energy parks optimises resource utilisation.

Ensuring environmental safeguards in water usage and land acquisition is critical for sustainable development.

Ultimately, green hydrogen must be embedded within a broader energy transition roadmap rather than treated as a standalone solution.

Relevance for UPSC and SSC Examinations

For UPSC Prelims, aspirants should understand the difference between green, blue, and grey hydrogen, key objectives of the National Green Hydrogen Mission, and India’s net-zero target.

For UPSC Mains (GS Paper III), the topic is directly relevant under environment, renewable energy, infrastructure, and science & technology. It can also be linked to climate change, industrial growth, and energy security.

For GS Paper II, it connects with international climate negotiations and global partnerships.

For SSC examinations, basic conceptual clarity about renewable energy and hydrogen production is important.

In conclusion, the Green Hydrogen Mission represents a transformative opportunity for India to align economic growth with environmental sustainability. It reflects a forward-looking strategy that integrates climate responsibility, technological innovation, and strategic autonomy. While challenges remain, a carefully calibrated policy framework can enable India to emerge as a global leader in the hydrogen economy, contributing meaningfully to both national development and global climate goals.

The announcement and subsequent diplomatic momentum around the India–Middle East–Europe Economic Corridor (IMEC) has brought connectivity diplomacy back to the centre of global geopolitics. Launched on the sidelines of the G20 Summit in New Delhi in 2023, IMEC represents a multi-modal transport and economic corridor linking India to Europe through the Middle East. The initiative involves key partners including India, Saudi Arabia, United Arab Emirates, United States, Germany, France, Italy and the European Union.

The corridor is envisioned as a network of railways, ports, shipping lanes, energy pipelines and digital connectivity infrastructure. It has both an eastern corridor connecting India to the Gulf and a northern corridor connecting the Gulf to Europe. IMEC is frequently viewed as a strategic counterweight to China’s Belt and Road Initiative (BRI), though its official narrative emphasizes cooperation, economic integration, and sustainable infrastructure.

The issue is in news due to renewed diplomatic engagements, feasibility studies, and strategic recalibrations in West Asia following evolving geopolitical developments. For UPSC aspirants, IMEC intersects with international relations, global trade architecture, energy security, maritime strategy, and India’s Act West policy.

Background and Evolution of Connectivity Diplomacy

Connectivity has become a tool of geopolitical influence in the 21st century. China’s BRI reshaped Eurasian trade routes, compelling other major powers to propose alternative connectivity models. India, wary of sovereignty concerns related to the China-Pakistan Economic Corridor (CPEC), has supported transparent, sustainable, and consultative infrastructure initiatives.

IMEC emerged as a collaborative project rather than a unilateral initiative. It aims to enhance supply chain resilience, reduce transit time between India and Europe, and integrate regional economies of West Asia. The project reflects a shift from traditional maritime-only routes via the Suez Canal toward a hybrid sea-rail model.

Five Important Key Points:

• IMEC consists of two components: an eastern corridor (India–Gulf) and a northern corridor (Gulf–Europe).
• It integrates rail, maritime, digital, and energy infrastructure.
• It seeks to reduce shipping time between India and Europe by up to 40%.
• It promotes green energy transmission, including potential hydrogen pipelines.
• It is positioned as a transparent and rules-based connectivity initiative.

This multi-dimensional design signals that IMEC is not merely a trade route but a strategic economic architecture.

Geopolitical Significance in West Asia

West Asia has historically been a theatre of geopolitical contestation. However, recent years have witnessed a trend toward regional normalization and economic diversification. The Abraham Accords and the gradual reconciliation between Gulf countries have created an environment conducive to large-scale connectivity projects.

For India, the Gulf region is critical due to energy imports, diaspora presence, and remittance flows. Countries like Saudi Arabia and the UAE are pursuing economic diversification under initiatives such as Vision 2030. IMEC aligns with their ambition to transform into logistics and financial hubs.

The participation of the United States underscores Washington’s intent to re-engage in infrastructure diplomacy. For Europe, IMEC promises supply chain diversification and reduced dependence on unstable transit chokepoints.

IMEC thus strengthens India’s strategic presence in West Asia without entangling it in regional rivalries. It enhances India’s role as a bridging power between the Global South and advanced economies.

Economic Implications for India

India’s trade with Europe constitutes a substantial portion of its external commerce. Traditionally, goods move via maritime routes passing through the Arabian Sea, Red Sea, and Mediterranean Sea. IMEC’s proposed integration of ports and rail networks in the Gulf could significantly reduce transit time and costs.

Reduced logistics costs can enhance export competitiveness, especially in sectors such as pharmaceuticals, textiles, engineering goods, and renewable energy equipment. The corridor may also attract foreign direct investment in manufacturing clusters aligned with the “Make in India” initiative.

Additionally, the digital connectivity component could facilitate cross-border data flows and fintech integration. This aligns with India’s Digital Public Infrastructure (DPI) model, which has gained international recognition.

The energy dimension is particularly significant. With global emphasis on green hydrogen, IMEC could facilitate transnational hydrogen pipelines linking renewable-rich regions of the Gulf to European markets. This supports India’s National Green Hydrogen Mission and strengthens energy security through diversification.

Strategic Maritime Dimensions

India’s maritime strategy has evolved from “Look East” to “Act East” and “Act West.” The Indian Ocean remains central to global trade, with major chokepoints such as the Strait of Hormuz and the Suez Canal.

IMEC complements India’s SAGAR (Security and Growth for All in the Region) doctrine. By strengthening port connectivity and maritime partnerships, India enhances its role as a net security provider in the Indian Ocean Region.

The corridor also intersects with initiatives like the International North-South Transport Corridor (INSTC). Together, these projects create a diversified web of trade routes reducing vulnerability to single-route disruptions.

From a defence perspective, closer strategic ties with Gulf countries may facilitate greater maritime cooperation, intelligence sharing, and naval exercises. However, IMEC is officially positioned as an economic project, not a military alliance.

Legal and Institutional Aspects

IMEC is based on a Memorandum of Understanding among participating countries. Unlike treaty-based institutions, it is currently a framework agreement emphasizing cooperation and feasibility assessment.

For UPSC aspirants, understanding the difference between MoUs and legally binding treaties is important. MoUs indicate intent but do not impose enforceable obligations under international law.

Institutionally, the project requires coordination among multiple stakeholders, including port authorities, rail operators, customs agencies, and financial institutions. Harmonization of standards, customs procedures, and regulatory norms will be critical for its success.

The World Trade Organization (WTO) framework and principles of free trade underpin such connectivity projects. Ensuring compliance with international trade norms will enhance credibility and attract private investment.

Challenges and Geopolitical Risks

Despite its promise, IMEC faces several challenges.

First, geopolitical instability in West Asia remains a risk factor. Escalations in regional conflicts could disrupt infrastructure development and investor confidence.

Second, financing such a massive project requires sustained commitment. Infrastructure corridors demand billions of dollars in investment. Ensuring financial viability without creating unsustainable debt burdens is essential.

Third, coordination among diverse political systems and regulatory frameworks may lead to delays.

Fourth, competition with existing routes such as the Suez Canal raises questions about commercial feasibility.

Finally, the perception of IMEC as a counter to China’s BRI could inject geopolitical rivalry into what is framed as an economic initiative.

Way Forward

For IMEC to succeed, a phased and pragmatic approach is necessary.

First, pilot projects should demonstrate tangible benefits in reducing transit time and costs.

Second, private sector participation must be encouraged through transparent procurement and risk-sharing mechanisms.

Third, digital integration—such as blockchain-based customs clearance—can streamline trade flows.

Fourth, India must leverage its diplomatic capital in West Asia to ensure political stability and cooperation.

Fifth, environmental sustainability should be integrated into project design, aligning with global climate commitments.

IMEC should not be seen as a zero-sum game but as part of a pluralistic global connectivity architecture.

Relevance for UPSC and SSC Examinations

For UPSC Prelims, aspirants should focus on participating countries, objectives of IMEC, and its distinction from initiatives like BRI and INSTC.

For UPSC Mains (GS Paper II), IMEC is relevant under “India and its Neighborhood,” “Bilateral, Regional and Global Groupings,” and “Effect of Policies of Developed Countries on India’s Interests.”

For GS Paper III, it relates to infrastructure, economic development, energy security, and logistics.

For SSC examinations, factual awareness of IMEC, its purpose, and participating countries may be tested in general awareness sections.

In conclusion, the India–Middle East–Europe Economic Corridor represents a transformative vision of connectivity diplomacy. It integrates economic ambition with strategic calculation, reflecting India’s evolving role in global governance. If implemented effectively, IMEC could reshape trade patterns, deepen regional integration, and reinforce India’s status as a pivotal actor in the emerging multipolar world order.

The recent judgment of the Supreme Court of India striking down the Electoral Bonds Scheme has emerged as one of the most consequential constitutional decisions in the domain of electoral reforms and political funding. In a landmark verdict, a Constitution Bench declared the scheme unconstitutional on the ground that it violated citizens’ right to information under Article 19(1)(a) of the Constitution. This judgment has triggered intense debate on transparency, corporate funding, democratic accountability, and the balance between donor privacy and public interest.

The Electoral Bonds Scheme was introduced in 2018 through amendments in the Finance Act, 2017—passed as a Money Bill. It allowed individuals and corporations to donate to political parties anonymously by purchasing bonds from designated branches of the State Bank of India (SBI). The scheme also amended key laws such as the Representation of the People Act, 1951; the Companies Act, 2013; and the Income Tax Act, 1961, to facilitate anonymous political donations.

The Supreme Court’s decision is not merely about a financial instrument; it strikes at the core of democratic theory. Political finance determines the nature of electoral competition, influences policymaking, and shapes governance outcomes. Transparency in political funding is directly connected to the integrity of elections—an essential feature of the Constitution’s basic structure as held in the landmark judgment of Supreme Court of India in Kesavananda Bharati.

Thus, the issue is not a narrow technical matter; it reflects the larger constitutional debate on free and fair elections, citizens’ right to know, and the institutional design of accountability in a representative democracy.

Background and Key Features of the Electoral Bonds Scheme

The Electoral Bonds Scheme was notified by the Government of India in 2018. Electoral bonds were bearer banking instruments, akin to promissory notes, which could be purchased by any citizen of India or body incorporated in India. These bonds were available in denominations ranging from ₹1,000 to ₹1 crore and were redeemable by eligible political parties within 15 days.

Five Important Key Points:

• Electoral bonds were bearer instruments with no donor name disclosed to the public.
• Amendments removed the 7.5% cap on corporate donations under the Companies Act, 2013.
• Companies were no longer required to disclose the names of political parties to which they donated.
• Bonds were sold exclusively by the State Bank of India in specified windows.
• Only political parties securing at least 1% of votes in the last general election could encash the bonds.

The scheme aimed, according to the government, to curb black money in political funding by channeling donations through formal banking routes. However, critics argued that it replaced opaque cash funding with opaque digital funding, without addressing the core problem of transparency.

Constitutional Questions Before the Supreme Court

The petitions challenging the scheme raised multiple constitutional issues:

First, whether the scheme violated Article 19(1)(a), which guarantees freedom of speech and expression, including the right to information as recognized in earlier judgments such as PUCL v. Union of India.

Second, whether the amendments through the Finance Act, 2017, passed as a Money Bill under Article 110, were constitutionally valid. The petitioners argued that the amendments went beyond the scope of a Money Bill and undermined bicameral scrutiny.

Third, whether unlimited corporate donations without disclosure violated the principle of political equality embedded in Articles 14 and 19.

The Supreme Court held that the right to know about political funding is an essential facet of Article 19(1)(a). In a democracy, informed voting is meaningful voting. If voters do not know who funds political parties, they cannot assess potential policy biases or quid pro quo arrangements.

The Court applied the proportionality test, a doctrine increasingly used in constitutional adjudication. It found that while donor privacy is a legitimate objective, complete anonymity without balancing mechanisms disproportionately restricts citizens’ right to information.

Impact on Corporate Funding and Governance

One of the most controversial aspects of the scheme was the amendment to the Companies Act, 2013. The earlier provision capped corporate donations at 7.5% of average net profits over three years and required disclosure of beneficiary political parties in the company’s profit and loss account.

The 2017 amendment removed both the cap and the disclosure requirement. As a result, even loss-making or shell companies could donate unlimited amounts to political parties without public scrutiny.

This had several governance implications. It increased the risk of money laundering through shell companies. It enabled the possibility of foreign-influenced entities channeling funds indirectly. It weakened shareholder democracy because shareholders could not track how corporate funds were being used for political purposes.

From a UPSC perspective, this intersects with corporate governance reforms, regulatory oversight, and the broader issue of crony capitalism. Transparent political funding is essential to prevent regulatory capture, where policymaking favors influential donors at the expense of public interest.

Basic Structure Doctrine and Free and Fair Elections

The Court reiterated that free and fair elections are part of the Constitution’s basic structure. Although the term “free and fair elections” does not explicitly appear in the text of the Constitution, it flows from Articles 324 to 329 and the democratic spirit of the Preamble.

Article 324 vests the superintendence, direction, and control of elections in the Election Commission of India. However, the Election Commission had earlier expressed concerns about the opacity of electoral bonds.

By prioritizing transparency, the Supreme Court reinforced the principle that electoral integrity cannot be compromised for administrative convenience. The judgment strengthens institutional checks and balances by ensuring that financial opacity does not distort electoral competition.

The decision also reflects judicial engagement with democratic deepening. Rather than deferring entirely to legislative wisdom, the Court exercised constitutional review to protect participatory democracy.

Economic Implications and Political Competition

Political funding influences economic policymaking. Large corporate donations may create expectations of favorable policies, regulatory relaxations, or government contracts.

An opaque system undermines competitive neutrality. Smaller parties and independent candidates may be disadvantaged if large donors prefer established parties with higher chances of forming governments.

Moreover, unlimited corporate funding risks transforming elections into capital-intensive exercises, marginalizing grassroots politics. This is particularly relevant for India, where socio-economic inequality is significant.

The judgment, therefore, has broader economic implications. It encourages a level playing field and discourages the monetization of electoral politics.

From the SSC perspective, questions may focus on the constitutional provisions involved, the concept of Money Bill, the role of the Supreme Court, and the Election Commission.

Challenges and Criticisms of the Judgment

While widely welcomed by civil society, the judgment has also faced certain criticisms.

Some argue that donor anonymity protects individuals and corporations from political retribution. In a polarized environment, public disclosure of donations could expose donors to harassment or coercion.

Others contend that eliminating electoral bonds without a robust alternative may revive cash-based funding, which is harder to track.

These concerns highlight the need for comprehensive electoral reforms rather than piecemeal changes. Transparency must be accompanied by institutional safeguards and robust auditing mechanisms.

Way Forward: Reforming Political Funding in India

The Supreme Court’s judgment opens the door for a reimagined political funding framework.

First, Parliament may consider introducing partial state funding of elections. This can reduce dependence on private donations and promote equity among parties.

Second, stricter disclosure norms should be mandated for both political parties and donors. Real-time disclosure through digital platforms can enhance transparency.

Third, corporate governance norms should require board and shareholder approval for political donations, along with detailed reporting.

Fourth, the Election Commission should be empowered with auditing powers to ensure compliance.

Fifth, a cap on corporate donations could be reinstated to prevent undue influence.

Ultimately, reform must balance three principles: transparency, donor privacy, and prevention of black money.

Relevance for UPSC and SSC Examinations

For UPSC Prelims, aspirants should focus on constitutional provisions such as Articles 19(1)(a), 110 (Money Bill), 324 (Election Commission), and key features of the Companies Act amendments.

For UPSC Mains (GS Paper II), the topic is directly relevant under “Separation of Powers,” “Judiciary,” “Representation of People’s Act,” and “Issues related to Elections.” It can also be linked to the basic structure doctrine, transparency, and governance reforms.

For GS Paper IV (Ethics), it raises questions about integrity in public life, conflict of interest, and ethical governance.

For SSC examinations, factual understanding of constitutional bodies, recent Supreme Court judgments, and electoral reforms is important.

In conclusion, the Supreme Court’s decision on electoral bonds marks a critical moment in India’s democratic evolution. By upholding citizens’ right to know, the Court reaffirmed that democracy thrives not in secrecy but in informed participation. Political funding reform remains a work in progress, but the judgment has laid a strong constitutional foundation for a more transparent and accountable electoral system.

The Election Commission of India (ECI) has announced that a Special Intensive Revision (SIR) of electoral rolls will be conducted in 22 States and Union Territories beginning April 2026. This decision assumes importance because it coincides with the commencement of the first phase of the Population Census 2027, thereby raising administrative, constitutional, and federal concerns regarding resource allocation and electoral integrity.

Electoral rolls form the foundation of representative democracy. Free and fair elections—considered part of the Basic Structure of the Constitution—are impossible without accurate voter lists. At the same time, the Census is a constitutional exercise under Article 246 read with Entry 69 of the Union List, essential for delimitation, welfare targeting, fiscal transfers, and policy planning.

The simultaneous scheduling of two large-scale exercises—both heavily dependent on government school teachers and administrative machinery—has triggered debates over logistical feasibility, federal coordination, and potential political implications.

Constitutional and Institutional Framework

Five Important Key Points

• Article 324 vests superintendence of elections in the Election Commission of India.
• Electoral rolls are prepared under the Representation of the People Act, 1950.
• Census is conducted under the Census Act, 1948.
• Free and fair elections are part of the Basic Structure doctrine (Indira Nehru Gandhi case).
• Administrative overlap raises questions of cooperative federalism.

The Election Commission derives its authority from Article 324, which grants it plenary powers in matters relating to elections to Parliament and State Legislatures. Electoral roll preparation is governed by the Representation of the People Act, 1950. The Census, meanwhile, is conducted under the Census Act, 1948 and is a Union subject.

The challenge arises because both exercises rely heavily on teachers as field-level enumerators. This creates concerns about overstretching administrative capacity and possibly compromising accuracy.

Governance and Administrative Implications

Conducting SIR ensures the removal of duplicate, deceased, and ineligible voters and inclusion of newly eligible citizens. However, critics argue that intensive revisions can sometimes become politically contentious if allegations of selective deletion arise.

The overlap with Census operations could:

1. Create human resource bottlenecks.
2. Lead to fatigue among enumerators.
3. Increase fiscal expenditure.
4. Affect school functioning.
5. Delay either exercise.

This scenario tests India’s administrative depth and coordination between constitutional authorities.

Federal Concerns and Political Sensitivities

Election administration is centralized under the ECI but executed by State machinery. Census too depends on State administrative personnel. States may perceive simultaneous exercises as burdensome.

Political parties often scrutinize voter list revisions. Allegations of “mass deletions” or “selective inclusions” can erode trust. Therefore, transparency, digital tracking, and grievance redressal mechanisms become essential.

Legal and Democratic Dimensions

Electoral rolls directly affect the Right to Vote, a statutory right but integral to democratic participation. Courts have repeatedly emphasized that voter exclusion undermines democratic legitimacy.

Simultaneously, Census data influences delimitation and reservation of seats under Articles 81 and 82. Therefore, accuracy is paramount.

Challenges

Administrative strain, data errors, political polarization, and litigation risks pose challenges. The EC must ensure due process—public notices, objections, appeals—to maintain credibility.

Way Forward

Technological integration between Census and electoral databases—while respecting privacy—could improve efficiency. However, data protection safeguards must be maintained.

Strengthening training modules, staggered scheduling, and transparent communication will be crucial.

Relevance for UPSC and SSC Examinations

For UPSC Prelims, questions may arise on Article 324, Census Act, or Representation of the People Act. For Mains (GS-II), this topic links to electoral reforms, constitutional bodies, cooperative federalism, and governance challenges.

SSC examinations may test factual knowledge regarding constitutional articles and institutional roles.