Daily Current Affairs 22 September 2026 – IAS Current Affairs

Current Affairs 22 September 2026 focuses on the Prelims-Mains perspective. Major events are :

India’s New GDP Series

Source: Indian Express
GS III: Indian Economy

Why in the News?

The Ministry of Statistics and Programme Implementation (MoSPI) has released “Sources and Methods for Compilation of National Accounts Statistics”, explaining the methodology behind India’s new GDP series.

News in Brief

• Greater use of company-level filings, GST records and LLP data for estimating private corporate-sector activity.
• ASUSE and PLFS are used for more direct estimation of the household and unincorporated sector.
• MGT-7/MGT-7A filings help distribute value added across different activities of multi-activity companies.
• The methodology also improves deflation, Supply and Use Tables (SUT), economic classifications and revision practices.

Key Highlights

Base Year 2022-23

• The GDP base year has been revised from 2011-12 to 2022-23, making the national accounts more representative of the present structure of the Indian economy.
• This is the eighth base-year revision of India’s National Accounts Statistics.
• A base-year revision is important because the consumption of an economy changes over time.
• New industries emerge, consumption patterns evolve, and the relative importance of different sectors changes.
• Using a more recent base year therefore helps ensure that economic growth is measured against a more relevant economic structure.

Corporate Data

• Corporate filings and LLP records are used to improve industry classification, measure economic activity and allocate output among companies operating across multiple sectors.
• Earlier, diversified companies were largely assigned to their principal activity.
• The new methodology uses activity-wise turnover information from MGT-7/MGT-7A filings for more accurate allocation of value added.
• This provides a more detailed picture of the activities undertaken by companies and helps capture the changing nature of India’s corporate sector.
• It is particularly relevant as formal enterprises and organised economic activity have expanded over the years.

GST Data

• GST data is used for,
  • • allocating private corporate-sector estimates across States
    • cross-checking annual estimates
    • quarterly national accounts estimation and
    • validating estimates from other sources.
• Thus, GST provides an important administrative-data source alongside traditional surveys.
• The use of GST data also reflects the increasing formalisation of economic activity.
• Since GST records generate information on registered businesses and transactions, they can complement survey-based information and provide additional evidence for national accounts estimation.

Unincorporated Sector

• The new framework uses Annual Survey of Unincorporated Sector Enterprises (ASUSE) and Periodic Labour Force Survey (PLFS) for direct estimation of the household and unincorporated sector, reducing dependence on proxy indicators.
• This is significant because a large number of enterprises in India operate outside the organised corporate sector.
• Better measurement of this segment can provide a more comprehensive picture of employment, production and income generation across the economy.

Double Deflation

• The new series uses double deflation, particularly for manufacturing.
• It separately adjusts output and input prices, helping obtain a more accurate measure of real value added.
• The framework also uses more granular price indices.
• Double deflation is important because changes in input and output prices may not move at the same rate.
• Separately accounting for these changes can improve the measurement of real economic activity.

Supply and Use Tables

• Supply and Use Tables (SUT) help reconcile production and expenditure estimates by matching the supply of goods and services with their uses.
• This improves the internal consistency of national accounts.
• They provide a framework for examining how goods and services produced in different parts of the economy are ultimately used by households, businesses, government and other sectors.

Updated Classification

• The new series uses National Industrial Classification (NIC)-2025, improving coverage of contemporary economic activities, including service-sector and IT/ITES activities.
• An updated classification helps statistical systems capture newer forms of economic activity and better reflect the transformation of India’s production strucutre.

Why is it important?

• India’s economic structure has changed considerably since 2011-12, with the expansion of digital businesses, formal enterprises, GST- registered firms and modern services.
• Using GST records. corporate filings, surveys and high-frequency indicators can improve the coverage, consistency and timeliness of GDP estimates.
• The greater use of administrative and corporate data also reflects the growing formalization and digitalization of the Indian economy.
• At the same time, combining different sources can help cross-check estimates and reduce excessive dependence on a single data source.
• However, administrative-data-based estimation also makes data quality, validation, consistency, and confidentiality, important considerations.

Revision of GDP Estimates

• GDP estimates are revised as additional and more comprehensive data become available.
• MoSPI states that its revision policy follows international practices, including SNS 2008 and the IMF Quarterly National Accounts Manual.
• Such revisions are a normal part of national accounting.
• Initial estimates are often prepared using available information and are subsequently updated when more complete datasets become available.
• A transparent revision process is therefore important for maintaining the credibility and usefulness of national income statistics.

Conclusion

The revised framework seeks to make national accounts more responsive to the evolving nature of economic activity in India. Its effectiveness will ultimately depend on reliable data, methodological transparency and regular improvements in statistical capacity, enabling GDP estimates to better support evidence-based policymaking and economic planning.

UPSC Prelims and Mains Practice Question

Consider the following statements:

1. The base year for the new GDP series is 2022–23.
   GST data has no role in GDP estimation.
2. ASUSE and PLFS improve estimation of the household and unincorporated sector.
3. Corporate filings are increasingly used to estimate private corporate-sector activity.

Which of the statements given above are correct?

A. 1, 3 and 4 only
B. 1 and 2 only
C. 2 and 3 only
D. 1, 2, 3 and 4

Answer: A

Mains Practice Question

Q) The revision of India’s GDP methodology reflects the changing structure of the Indian economy. Discuss with particular reference to the role of formalization, services and digitalization. (250 words)

Article 371K For Ladakh: Special Constitutional Provisions

Source: Indian Express
GS II: Indian Polity and Governance- Constitution, Federalism, Devolution of powers, Regional Aspirations and Special Constitutional Provisions.

Why in the News?

The Union government has proposed introducing a new Article 371K in the Constitution to provide special constitutional safeguards for Ladakh.

News in Brief

• Article 371 and Articles 371A–371J provide special constitutional arrangements for particular States and regions based on their historical, social, cultural and administrative circumstances.
• The original Article 371 was not created specifically for tribal or cultural protection. It initially emerged as a transitional administrative arrangement for former Part B States after Independence.
• Over time, Parliament added different provisions- 371A to 371J-to address the distinctive concerns of States such as Nagaland, Assam, Maharashtra, Gujarat, Manipur, Andhra Pradesh, Telangana, Sikkim, Mizoram, Arunachal Pradesh and Karnataka.
• The proposed Article 371K would be different because it is being considered for a Union Territory without a legislative assembly, namely Ladakh.

What is Article 371?

• Article 371 is part of Part XXI of the Constitution, dealing with Temporary, Transitional and Special Provisions.
• At Independence, India consisted not only of British-administered provisions but also numerous princely States that had acceded to India under different historical and administrative circumstances.
• The Constitution initially classified several such territories, including Hyderabad, Mysore and Rajasthan, as Part B States.
• The Constitution-makers therefore adopted transitional arrangements to facilitate their integration into the Indian Union.
• The original Article 371 provided a transitional framework under which the President had special responsibilities relating to the administration of these States.
• Later constitutional amendments transformed Article 371 into a broader framework for region-specific constitutional arrangements.

Significance

• The evolution of Article 371 demonstrates the principle of asymmetric federalism, the idea that all units of the Union need not have identical constitutional arrangements when historical, geographical, cultural or administrative circumstances are different.

Why were different forms of Article 371 created?

• India’s constitutional system had to accommodate regions with very different,
  • Historical experiences
  • Social and cultural practices
  • Tribal institutions
  • Administrative arrangements
  • Developmental needs
  • Regional political aspirations
• Therefore, Parliament repeatedly created bespoke constitutional arrangements instead of applying one uniform model everywhere.
• This is an example of asymmetric federalism, where different regions can receive different degrees or forms of constitutional protection while remaining part of the same Union.

Constitutional Flexibility and Regional Aspirations

• The special provisions under Article 371 have evolved in response to the specific historical, cultural and developmental circumstances of different regions.
• Article 371A (16-Point Agreement of 1960) protects Naga religious and social practices, customary law and ownership of land and its resources, while Article 371G (Mizoram Peace Accord of 1986) provides similar safeguards for Mizoram.
• Other provisions address regional representation and development.
• Article  371B (22nd Constitutional Amendment Act, 1969) provides for a special committee of the Assam Legislative Assembly for special tribal areas, giving tribal representatives a distinct institutional voice.
• Article 371C provides for a Hill Areas Committee in Manipur, while Article 371D seeks equitable opportunities in education and public employment in Andhra Pradesh and Telangana.
• The provisions also reflect India’s ability to accommodate distinct historical circumstances.
• Article 371E enables the establishment of a Central University in Andhra Pradesh.
• Article 371H gives the Governor of Arunachal Pradesh a special responsibility for law and order, reflecting the region’s distinctive administrative requirements.
• Article 371I provides a special provision concerning the composition of the Legislative Assembly of Goa.
• Article 371J (98th Constitutional Amendment Act, 2012)  focuses on development, education and employment opportunities in Kalyana Karnataka.
• Thus, special provisions have been designed according to the particular needs of each region.

Balancing Unity with Regional Aspirations

• Such arrangements are significant because regional aspirations, when institutionally accommodated, can become part of the constitutional framework rather than remaining outside it.
• The experience of Nagaland and Mizoram illustrates how constitutional safeguards can protect cultural identity and customary institutions within the Indian constitutional system.
• Article 371F similarly reflected its distinctive historical circumstances during Sikkim’s integration into India as a State.
• Therefore, Indian federalism is not based solely on identical powers for every State or region.
• Instead, it combines a common constitutional framework with flexibility wherever historical or regional circumstances demand it.

Proposed Article 371K for Ladakh

• The proposed Article 371K for Ladakh represents a contemporary example of this constitutional approach.
• Ladakh became a Union Territory without a legislature after the 2019 reorganisation of the erstwhile State of Jammu and Kashmir.
• Its subsequent demands have included greater protection for land, employment, culture, natural resources, environment and political representation.
• The proposed arrangement envisages a directly elected Union Territory-level governing body with powers over areas such as land, culture, language, forests, environment and natural resources.
• The exact distribution of legislative, executive, financial, administrative and law-and-order powers would determine the actual extent of autonomy.
• The Ladakh case is distinct because existing Articles 371A–371J largely concern States, whereas Ladakh is a Union Territory without a Legislative Assembly.
• Hence, Article 371K could create a sui generis constitutional arrangement tailored to the region.

Balancing Autonomy and National Integration

• Special provisions can strengthen federalism by giving regions meaningful participation in decisions affecting their social, economic, and cultural interests.
• At the same time, clearly defined institutional boundaries are necessary to prevent conflicts between elected local institutions and the Union administration.
• For Ladakh, this becomes particularly relevant because Article 240 currently provides an important basis for the President’s regulatory powers over certain Union Territories.
• Any new institutional arrangement would therefore need to clarify the relationship between the proposed elected body and the existing UT governance framework.

Challenges and Way Forward

• Special constitutional arrangements, however, need to maintain a balance between regional autonomy and national administrative coherence.
• Excessive centralization may weaken meaningful local participation, while poorly defined or overlapping powers can create institutional conflicts.
• The Ladakh proposal is particularly significant because it concerns a Union Territory without a Legislative Assembly, unlike most existing Article 371 arrangements that apply to States.
• It could therefore evolve as a distinct constitutional model rather than simply replicating the Sixth Schedule or provisions applicable elsewhere.
• The way forward should involve clearly defining the powers of elected institutions, ensuring adequate financial resources, protecting local cultural and environmental interests, and maintaining effective coordination with the Union government.

Conclusion

Article 371 shows how the Constitution accommodates regional diversity through flexible and region-specific safeguards. By balancing local aspirations with national unity, these provisions strengthen cooperative and asymmetric federalism and help integrate diverse regions within the constitutional framework.

UPSC Prelims and Mains Practice Question

Consider the following statements regarding the special provisions under Article 371 of the Constitution:

1. Article 371A provides special protection to certain customary and land-related matters in Nagaland.
2. Article 371H gives the Governor of Arunachal Pradesh a special responsibility regarding law and order.
3. Article 371J provides special provisions for the Kalyana Karnataka region.
4. The proposed Article 371K is intended to provide special constitutional safeguards to Ladakh.

Which of the statements given above are correct?

(a) 1 and 2 only
(b) 1, 2 and 3 only
(c) 2, 3 and 4 only
(d) 1, 2, 3 and 4

Answer: (d)

Mains Practice Question

Q) Constitutional provisions for accommodating regional diversity are essential for strengthening Indian federalism. Discuss. (250 words)

Swaraj And Democracy: Challenges And Reforms

Source: Indian Express
GS II: Indian Polity and Governance- Democracy, Decentralization, Local Governance, Constitutionalism 

Why in the News?

An Indian Express article examines the need to rethink modern democracy and highlights the Gandhian idea of Swaraj as a framework for strengthening citizen participation, decentralization, fraternity and democratic accountability.

News in Brief

• The idea of Swaraj, as interpreted by Mahatma Gandhi, goes beyond choosing rulers and includes self-regulation, shared norms, dialogue and responsible citizenship.
• Democratic renewal requires not only strong institutions but also everyday democratic practices based on participation, patience, vigilance and community engagement.
• The article highlights the need to rethink the scale and structure of democratic governance, including greater decentralisation and decision-making closer to citizens.
• Indian thinkers such as Mahatma Gandhi and B.R. Ambedkar offer ideas such as Swaraj and fraternity that can contribute to discussions on strengthening democratic life.

Swaraj and Democracy

• The conventional understanding of democracy as self-rule mainly concerns the relationship between citizens and rulers.
• Citizens have an equal right to choose their representatives and subsequently hold them accountable.
• However, this approach does not adequately address another important question: How should citizens relate one another and to themselves?
• Mahatma Gandhi gave the idea of Swaraj a broader meaning.
• It was not merely rule of the self, but also rule over the self.
• Thus, democracy is not simply about changing rulers through elections; it also requires citizens capable of self-regulation, dialogue, cooperation and responsible participation in community life.
• This connects with Dr B.R. Ambedkar’s emphasis on fraternity as an essential condition for a successful democracy.
• Therefore, democracy requires not only good institutions but also democratic practices and a democratic culture.

Democracy as a Culture of Continuous Cultivation

• In Mukulika Banerjee’s work Cultivating Democracy, the metaphor of cultivation suggests that democracy cannot simply be established once and then left to function automatically.
• Like agriculture, democracy requires continuous nurture, patience, vigilance, hope, community participation and development of shared norms.
• A democratic society therefore needs strong community bonds and fraternity.
• Democracy also requires developing political leaders and creating a shared vision that can be renewed and rearticulated for every generation.
• Political participation should not become the preserve of a small class of professional politicians; citizens should participate as active members of the democratic community.

Indian Thinkers and Democratic Renewal

• Several Indian political thinkers of the 20th century questioned conventional models of democracy and provide ideas for rethinking its institutional design.
• Dr. B.R.Ambedkar
  • Ambedkar emphasised fraternity as a precondition for democracy.
  • Political equality cannot remain meaningful when society continues to be divided by deep social hierarchies.
• M.N. Roy
  • Roy advocated the idea of party-less democracy, questioning the excessive role of political parties in democratic governance.
• Jayaprakash Narayan
  • Narayan advocated the reconstruction of Indian polity, with greater emphasis on decentralisation and people’s participation.
• Rammanohar Lohia
  • Lohia proposed the idea of Chaukhamba Raj (Four-Pillar State), which envisioned political power distributed across different levels rather than being concentrated at the centre.
  • Although these proposals did not receive complete acceptance in their own times and cannot simply be adopted in their original form today, they provide a basis for questioning some of the assumptions of modern democracy.

Four defects in institutional design of modern democracy

• Excessive Scale
  • Modern democracies operate on a scale that can make meaningful self-rule difficult.
  • Nation-states and even their federal units can become too large and distant from ordinary citizens.
  • This creates a gap between citizens and decision-making institutions.
• Mismatch Between Problems and Power
  • There is often a mismatch between where a problem emerges and where the power to solve it is located.
  • A local problem may require a local solution, but decision-making authority may remain concentrated at a higher level.
  • Therefore, it is necessary to build the architecture of democracy from the bottom up, beginning with:

Village/local councils → higher levels of government → national governance → global governance

• • This should follow the principle of subsidiarity:
    • Matters that can be decided at a lower level should not unnecessarily be transferred to a higher level.
• Problems with the Electoral Calendar
  • Elections held every five, four or even two years can be simultaneously too short and too long.
  • They can be too short for governments to pursue and demonstrate the results of long-term policies.
  • They can be too long for citizens to effectively check arbitrary or excessive use of power.
  • This creates a challenge for continuous democratic accountability.
• Majoritarianism and Concentration of State Power
  • A simple electoral majority can provide a government with control over the enormous coercive and administrative power of the modern state.
  • According to the article, majoritarian outcomes should therefore be understood in relation to the institutional design of modern democracy rather than simply as an accidental problem.

Three Structural Problems of Democracy

• Caste, Class and Economic Inequality
  • The social hierarchy of caste and class can undermine the principle of one person, one vote.
  • Formal political equality may coexist with substantial social and economic inequality.
  • The caste system and capitalist economic structures can contribute to the concentration of social and economic power, making equal citizenship difficult to realise fully.
• Corporate-Controlled Mass Media
  • The contemporary media system can affect the possibility of an informed democratic public opinion.
  • Concentrated ownership and corporate control may contribute to:
    • Under-information
    • Misinformation
    • Unequal access to information
    • Manipulation of public opinion
    • Possibility of democratic capture
  • A healthy democracy therefore requires an informed citizenry and diverse information sources.
• Political-Party Oligarchies
  • Political parties can become dominated by entrenched leadership groups, creating barriers for new entrants.
  • Such party oligarchies can perpetuate the influence of a small political elite and reduce responsiveness to ordinary citizens.
  • A 21st-century constitutional framework should therefore consider institutional mechanisms dealing with:
    • Concentration of economic power in corporations
    • Flow of information through mass media
    • Political decision-making within political parties

Rebuilding Democracy from the Bottom Up

• The crisis of democracy cannot be addressed merely by changing constitutional text.
• Democracy needs both institutional reform and democratic social practices.
• A renewed democratic architecture could focus on
  • Decentralisation of power
  • Stronger village and local councils
  • Application of the principle of subsidiarity
  • Continuous rather than purely electoral accountability
  • Greater citizen participation
  • Reduction of excessive concentration of economic power
  • More diverse and accountable media
  • Greater internal democracy within political parties
  • Promotion of fraternity and social cohesion
  • Development of a culture of self-regulation and responsible citizenship
• The broader lesson from Swaraj is that democracy should not be understood merely as choosing governments.
• It should also involve citizens having meaningful control over matters affecting their lives and developing the social relationships and institutions necessary for collective self-rule.

Conclusion

The idea of Swaraj offers a broader understanding of democracy by linking political freedom with responsible citizenship, decentralization and community participation.

Strengthening local institutions, ensuring wider participation and addressing social, economic and informational inequalities can help make democracy more inclusive, accountable and participatory.

UPSC Prelims and Mains Practice Question

Consider the following statements,

1. The Gandhian idea of Swaraj extends beyond political self-rule to include self-regulation, responsible citizenship and community participation.
2. The principle of subsidiarity implies that decisions should, as far as practicable, be taken at the lowest level capable of addressing the issue effectively.
3. The idea of Swaraj is primarily concerned with strengthening centralised state authority to ensure uniform governance.

Which of the statements given above is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

Answer: A. 1 and 2 only

Mains Practice Question

Q) Democracy is not merely a system for choosing rulers but also a culture of self-rule, fraternity and continuous citizen participation. Discuss in the context of the Gandhian idea of Swaraj and the challenges facing modern democracies. (250 words)

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