GK One-Liners

What: China commenced construction of the massive Motuo Hydropower Station on the Yarlung Tsangpo River (known as Brahmaputra downstream in India) in Tibet, with an estimated project cost of $167 billion. This mega dam is planned to be the world’s largest hydroelectric facility, with generating capacity potentially exceeding Three Gorges Dam’s 22.5 gigawatts. The project raises significant downstream concerns for India and Bangladesh regarding water flow alterations, flood control, ecological impacts on riverine ecosystems, and potential use as a strategic leverage tool by China.

How: The Yarlung Tsangpo flows through Tibet before entering Arunachal Pradesh as the Siang River and becoming the Brahmaputra in Assam, eventually merging into Bangladesh’s river systems. China’s dam will create massive water storage capacity upstream, giving it control over river flow timing and volume affecting downstream agriculture, fisheries, drinking water supplies, and monsoon flood patterns. The project involves tunneling through the Himalayas at the Great Bend location where the river makes a dramatic U-turn, creating steep gradients ideal for hydropower generation but also extreme engineering challenges including seismic risks in this geologically active zone.

Why: This is critical for UPSC Mains GS II (International Relations, India-China Relations) and GS III (Water Resources). Questions cover transboundary river management under international water law, India’s lack of a water-sharing treaty with China unlike the Indus Waters Treaty with Pakistan, the strategic implications of upstream control as a pressure tactic during border disputes, environmental concerns about altered sediment flow affecting Sundarbans delta formation, and India’s counter-strategies including its own hydroelectric projects in Arunachal Pradesh and engagement through mechanisms like Expert Level Mechanism for data sharing on flood season flows.

What: State Bank of India (SBI) was recognized as the World’s Best Consumer Bank 2025 by Global Finance magazine, a prestigious international publication covering banking and finance. The award acknowledges SBI’s comprehensive digital transformation, innovative retail banking services, and inclusive approach to serving India’s diverse customer base ranging from urban metros to remote rural areas. SBI’s achievement reflects India’s rapid digitalization of financial services and the competitiveness of Indian banks on global benchmarks despite operating in a complex, heterogeneous market.

How: SBI’s recognition stems from multiple innovations: the YONO (You Only Need One) super-app integrating banking, shopping, and investment services crossed 60 million users; expansion of digital lending through pre-approved loan offers using data analytics; contactless payment adoption across its 450+ million customer base; AI-powered customer service through chatbots reducing transaction times; and maintaining financial inclusion through 22,000+ branches and business correspondents in unbanked areas. The bank successfully balanced technology adoption with human touch for segments requiring assisted banking, particularly senior citizens and rural customers.

Why: This is relevant for UPSC Prelims (Banking Sector) and Banking/RBI Grade B exams. Questions cover public sector bank reforms under Enhanced Access and Service Excellence (EASE) agenda, how digital banking platforms improve operational efficiency while reducing costs, SBI’s role as India’s largest lender with 23% market share influencing monetary policy transmission, challenges of cybersecurity and fraud prevention in digital banking, and how India’s UPI ecosystem supports inclusive digital payments enabling even small banks to offer competitive services through interoperable infrastructure.

What: As of March 31, 2025, Public Sector Banks (PSBs) reported 1,629 wilful defaulters owing ₹1.62 trillion (₹1.62 lakh crore) in outstanding dues. Wilful defaulters are distinct from regular defaulters—they are borrowers who have the capacity to repay but deliberately refuse, divert borrowed funds for unauthorized purposes, or dispose of assets without informing lenders, representing intentional fraud rather than business failure. Banks pursue recoveries through the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, Insolvency and Bankruptcy Code (IBC), and credit bureau disclosures that restrict future borrowing.

How: RBI’s Master Circular on Wilful Defaulters requires banks to identify and report such cases, triggering consequences including criminal complaints, debarment from accessing capital markets for securities issuance, restrictions on promoters from floating new ventures, and public disclosure of names deterring other financial institutions from lending. Recovery mechanisms include SARFAESI allowing asset seizure without court intervention for secured loans above ₹1 lakh, IBC enabling creditors to initiate insolvency proceedings forcing resolution or liquidation, and Fugitive Economic Offenders Act permitting asset confiscation for those fleeing the country to evade prosecution.

Why: This is crucial for UPSC Prelims (Banking) and Banking exams covering NPA resolution. Questions focus on distinguishing wilful default from genuine business failure requiring restructuring support, how lax enforcement historically allowed borrowers like Vijay Mallya and Nirav Modi to siphon funds and flee abroad, the effectiveness of recent legal frameworks in improving recovery rates (IBC has achieved ~43% recovery versus ~15% under earlier mechanisms), ethical dimensions of loan write-offs benefiting corporate defaulters versus small farmer loan waivers, and systemic reforms needed in credit appraisal and monitoring to prevent diversion of funds before defaults occur.

What: The Asian Development Bank (ADB) projected India will remain the fastest-growing major economy globally with Gross Domestic Product (GDP) growth of 6.5% in 2025 and 6.7% in 2026, outpacing other large economies including China (projected around 4.5-5%), United States (approximately 2%), and European economies. The growth is supported by robust domestic consumption driven by rising middle-class incomes, a normal monsoon season ensuring agricultural stability, government infrastructure investment under capital expenditure programs, and potential monetary policy easing as inflation moderates allowing the Reserve Bank of India to reduce interest rates stimulating credit growth.

How: India’s growth resilience despite global headwinds reflects structural advantages: a large domestic market of 1.4 billion people reducing dependence on export demand volatility, demographic dividend with 65% of population under 35 years providing productive workforce and consumption base, ongoing digital infrastructure expansion (5G rollout, fintech penetration) improving economic efficiency, and formalization of the economy through GST and digital payments broadening the tax base. Government reforms including Production Linked Incentive (PLI) schemes attract manufacturing investment, while improving ease of doing business rankings facilitate entrepreneurship and FDI inflows.

Why: This is relevant for UPSC Mains GS III (Economic Growth, Development) and RBI Grade B exams. Questions cover factors enabling India to sustain 6-7% growth when global economy faces slowdown risks, the shift from investment-led to consumption-led growth model implications for sustainability, how monetary policy easing must balance growth support against inflation risks (RBI’s flexible inflation targeting mandate of 4% ±2%), challenges of unemployment and job quality despite GDP growth (jobless growth concerns), and whether India can achieve developed country status by 2047 if maintaining this growth trajectory.

What: India’s passport ranking improved from 85th position to 77th in the Henley Passport Index 2025, which measures the number of destinations accessible to passport holders without requiring a prior visa. Indian passport holders now enjoy visa-free access or visa-on-arrival privileges to 59 destinations worldwide, up from approximately 54 in the previous assessment. While this represents progress, India remains significantly behind global leaders like Singapore, Japan, and European nations whose passports provide access to 190+ destinations, reflecting India’s still-developing diplomatic leverage and bilateral relationship depth.

How: Passport power rankings reflect a country’s diplomatic relationships, economic strength, security concerns, and reciprocity agreements. India’s improvement stems from expanding bilateral ties through free movement agreements (like those with Nepal, Bhutan), visa liberalization initiatives with countries seeking Indian tourists and business travelers, and improved global perception of India as a stable, growing economy. However, challenges persist: many developed countries maintain visa requirements for Indians citing overstay risks, illegal migration concerns, and lack of reciprocal visa-free access for their citizens to India, limiting the bilateral give-and-take that facilitates visa liberalization.

Why: This is relevant for UPSC Mains GS II (International Relations, Soft Power) and questions on India’s global standing. Topics include how passport rankings correlate with economic development and diplomatic influence, the growing importance of visa facilitation for Indian diaspora (18 million overseas Indians) and business expansion, India’s strategic use of e-visa schemes to boost tourism revenue, challenges in negotiating visa liberalization when developed nations view India as a migration risk, and whether improved rankings reflect genuine diplomatic gains or simply visa-on-arrival provisions that still require documentation and fees unlike truly visa-free travel.

What: Income Tax Day is observed annually on July 24 to commemorate the introduction of income tax in India in 1860 by British colonial administrator Sir James Wilson to offset revenue losses from the 1857 uprising. The day highlights India’s tax system evolution from colonial revenue extraction to a democratic nation’s primary revenue source funding welfare programs, infrastructure, and public services. Modern observance emphasizes recent transformative reforms including faceless assessments eliminating taxpayer-officer interaction to reduce harassment and corruption, digital compliance tools simplifying return filing, and pre-filled returns using data from employers and financial institutions.

How: India’s direct tax system has undergone dramatic digitalization: the e-filing portal processes over 8 crore annual returns with automated processing reducing human intervention, faceless assessment and appeal schemes use random allocation and video conferencing ensuring anonymity preventing rent-seeking behavior, real-time TDS credit matching and Form 26AS provide taxpayers visibility into tax deductions, and recent reforms like updated return provisions (filing within 2 years) and vivad se vishwas schemes (one-time settlement) balance compliance with taxpayer convenience. The Income Tax Department leverages AI and data analytics for risk-based scrutiny targeting high-risk cases rather than random harassment.

Why: This is important for UPSC Mains GS III (Taxation Reforms, Revenue Mobilization) and questions on fiscal policy. Topics include India’s low tax-to-GDP ratio (around 11% versus 25-30% in developed economies) despite large population base, the challenge of expanding tax base beyond 8 crore return filers when productive workforce exceeds 50 crore, how digital reforms improve compliance while simplifying procedures, the shift from retrospective taxation controversies to predictable tax regime attracting investment, and balancing revenue mobilization needs against maintaining competitive corporate tax rates (22% standard, 15% for new manufacturing) in global tax competition.