On 3 September 2025, three important articles in The Hindu are highly relevant for UPSC GS Paper 3 under the Economy section. These articles cover Banking & Financial Inclusion, Atmanirbhar Bharat & Local Goods, and Power Sector Regulatory Challenges. Below is a comprehensive summary in simple, human-friendly language.
1. Banking Industry as a Key Driver of India’s Growth
President Droupadi Murmu highlighted the critical role played by the banking sector in India’s economic development during her recent address. She pointed out that banks are the backbone of financial inclusion and economic stability. Over the last decade, India has taken major steps to bring every citizen into the formal financial system. The Pradhan Mantri Jan Dhan Yojana (PMJDY) has been a game changer, opening over 56 crore bank accounts, ensuring access to basic banking services even in rural areas.
Digital technology has further transformed banking. Tools like UPI (Unified Payments Interface), mobile banking, and Aadhaar-enabled services have created a seamless digital payment ecosystem. This has reduced dependency on cash and increased transparency in transactions.
The banking sector has also supported the MSME (Micro, Small, and Medium Enterprises) sector, which is a major contributor to job creation and innovation. Credit flows to MSMEs have improved under various government schemes, ensuring that small businesses receive timely financial support.
The President emphasized that banks should not just focus on profitability but also on social responsibility, ensuring inclusive growth. The role of cooperative banks and regional rural banks remains vital for rural development.
Key Takeaways for UPSC:
PMJDY: 56 crore accounts opened.
UPI and mobile banking as pillars of digital economy.
Banking sector’s role in MSME growth.
Linkage to financial inclusion and sustainable development.
2. Atmanirbhar Bharat and Promotion of Local Goods amid Global Trade Tensions
Another significant article discussed how NDA-ruled States plan to promote local goods following the recent U.S. tariff hike on Indian exports. This move aligns with the vision of Atmanirbhar Bharat (Self-Reliant India) and the ‘Vocal for Local’ campaign initiated by the government.
The article explains that import dependency poses economic and strategic challenges for India. By promoting local goods, the government aims to boost domestic manufacturing, reduce trade deficits, and create more jobs within the country.
The push for swadeshi products is also seen as a cultural and economic revival strategy. States will run campaigns encouraging consumers to buy Indian-made products. This policy is not just about reducing imports but also about creating a strong domestic supply chain.
Atmanirbhar Bharat covers multiple sectors including defense manufacturing, electronics, agriculture, and infrastructure. By encouraging indigenous production, India aims to achieve resilience in global trade uncertainties and reduce vulnerability to tariff wars and geopolitical disruptions.
Key Takeaways for UPSC:
U.S. tariff hikes as a trigger for local goods promotion.
Atmanirbhar Bharat and ‘Vocal for Local’ as economic strategies.
Impact on trade policy, industrial growth, and employment.
Connection to Make in India and global supply chain diversification.
3. Supreme Court Order on Power Sector Regulatory Assets and DISCOM Stress
The third important article focuses on the financial stress of DISCOMs (Distribution Companies) and the recent Supreme Court directive. The Court ordered that regulatory assets created by DISCOMs should be liquidated within four years. Regulatory assets represent the gap between Actual Cost of Supply (ACS) and Average Revenue Realized (ARR), which often arises due to delayed tariff revisions or subsidies promised by state governments.
This unresolved gap leads to massive financial stress on DISCOMs, forcing them to borrow heavily to cover operational costs. The Supreme Court ruling aims to ensure timely cost recovery, thereby improving the financial health of the power sector.
The article explains that India’s power sector is under severe stress due to high AT&C (Aggregate Technical & Commercial) losses, poor bill recovery, and inadequate tariffs. These issues discourage investment in the energy sector and delay infrastructure modernization.
The judgment also calls for better regulatory compliance and accountability from state electricity regulatory commissions. This is essential for a sustainable power sector, especially as India transitions to renewable energy.
Key Takeaways for UPSC:
Regulatory assets must be cleared within 4 years.
ACS-ARR gap and its economic implications.
Challenges in power distribution: AT&C losses, subsidy delays.
Link to infrastructure development and energy security.
Integrated Analysis for GS Paper 3
All three articles collectively highlight the importance of inclusive banking, self-reliant industrial policy, and infrastructure reforms for India’s economic stability. For UPSC aspirants, these topics intersect with key themes like:
Inclusive Growth & Financial Inclusion (Banking)
Industrial Policy & Trade (Atmanirbhar Bharat)
Energy & Infrastructure (Power sector)
On 3 September 2025, these three articles stand out as essential reading for understanding the structural reforms and policy measures shaping India’s economy.
