MAINS Current Affairs includes India’s Growth Paradox: Economic Rise Amid Persistent Regional Disparities & Meta’s New Teen Safety Rules

Economy

1. India’s Growth Paradox: Economic Rise Amid Persistent Regional Disparities

Context: India has emerged as one of the world’s major economies since the 1991 economic reforms, but substantial differences in per capita income and development continue to exist across States.

India’s Growth: From the 1991 Reforms Till Now

• The LPG Reforms of 1991 — Liberalisation, Privatisation and Globalisation — integrated India more closely with the global economy and accelerated economic growth.
• India is now the world’s sixth-largest economy in nominal terms, behind the United States, China, Germany, Japan and the United Kingdom.
  • It is the third-largest economy in PPP terms.
• Economic activity tends to concentrate in regions having better infrastructure, markets, skilled labour and established industrial networks.
• As a result, economic growth has frequently changed the composition of leading States rather than producing sustained convergence between developed and lagging regions.

Growth in India’s Per Capita Income

• India’s per capita income has increased substantially since the reform period, reflecting economic transformation and reduction in poverty.
  • However, India continues to be a lower-middle-income economy, with per capita income below that of many countries.
• According to the International Monetary Fund (IMF), India’s per capita income has increased by more than 40 times in three and a half decades.
  • Despite this growth, India ranks behind more than 140 countries in terms of per capita income.
• India’s large population means that rapid growth in aggregate GDP does not automatically translate into high average incomes.
• For achieving developed-country status by 2047, sustained growth in per capita income will therefore be as important as overall GDP expansion.

Other Achievements

• India’s post-reform economic journey has witnessed:
  • Expansion of the services and digital economy;
  • Growth of the middle class and improvement in consumption;
  • Greater integration with global trade and investment;
  • Development of globally competitive capabilities in IT, pharmaceuticals, space and Digital Public Infrastructure; and
  • Improvement in infrastructure and financial inclusion.
• These achievements demonstrate the transformative impact of economic reforms, although their benefits have not been distributed evenly across regions.

Concerns and Issues: Challenge of Regional Disparities

• The most persistent challenge is inter-State inequality in income and development.
• Bihar and Uttar Pradesh have remained among the lower-income States, with their per capita incomes declining significantly relative to the national average over the long term.
  • Jharkhand has also continued to remain a relatively lagging State.
• In contrast, Delhi, Goa and Karnataka have remained or emerged among the higher-income economies.
• Maharashtra and Punjab demonstrate that historical economic advantages do not necessarily guarantee continued relative leadership.
  • Population growth, structural constraints, dependence on agriculture and external shocks can influence a State’s relative economic performance.
• The destination-based GST structure may have benefited consumption-based revenue collection in poorer States, but GST alone cannot guarantee structural economic convergence.
• Other factors contributing to regional disparities include:
  • Weak human capital;
  • Inadequate infrastructure;
  • Underdeveloped industrial ecosystems;
  • Climate vulnerability; and
  • Limited employment opportunities.

Way Ahead: Road to Viksit Bharat@2047

• India needs to move beyond simply pursuing high GDP growth towards broad-based, inclusive and regionally balanced development.
• Key priorities should include:
  • Place-based development strategies designed according to the specific needs of lagging regions;
  • Greater investment in education, healthcare and skill development to raise productivity;
  • Improved connectivity and industrial clusters to overcome geographical disadvantages;
  • Strengthening cooperative federalism and outcome-based fiscal transfers;
  • Promoting employment-intensive manufacturing and MSMEs; and
  • Developing climate-resilient and sustainable infrastructure.

Conclusion

• India’s post-1991 journey demonstrates that rapid economic growth can transform the national economy without automatically eliminating regional disparities.
• The challenge for Viksit Bharat@2047 is therefore to ensure that growth is not concentrated in a few regions but translates into higher incomes, productive employment and better human development across all States.
• Sustainable development will ultimately depend on converting India’s aggregate economic strength into more equitable and regionally balanced prosperity.

Governance

2. Meta’s New Teen Safety Rules

Context: Meta is introducing default safety restrictions for teenagers on Instagram and Facebook in the US following an $18 billion settlement with 52 state attorneys general.

• The settlement requires Meta to adopt additional measures aimed at protecting young users from potential harms associated with social-media platforms.

About

• The settlement follows several lawsuits concerning the alleged harmful effects of social-media platforms on children and teenagers.
• State authorities alleged that Meta:
  • Designed Facebook and Instagram to encourage compulsive engagement among young users;
  • Was aware of significant risks associated with its platforms but did not adequately address them; and
  • Collected personal information from children below 13 years without complying with the Children’s Online Privacy Protection Act (COPPA).

New Safety Features for Teenagers on Instagram and Facebook

• Two-hour daily usage limit: A cumulative limit across Facebook and Instagram will apply to teenagers.
  • Teens can disable the limit only with parental permission.
  • Messaging will not be included in the two-hour limit.
• Night Mode: Teenagers will not be able to access features such as Feed, Stories and Reels between midnight and 6 a.m.
  • Messaging will continue to remain available.
• Disable Autoplay: Teens or parents can turn off autoplay.
  • Users will then have to tap or swipe to view additional content.
• Removal of Engagement Statistics: Like and reaction counts will no longer be displayed on posts.
• Non-Algorithmic Feed: Teens and parents can opt for a feed that is not personalised through recommendation algorithms.
  • It will display content only from accounts that the teenager follows or is otherwise connected with.
• Stronger Age Assurance: Enhanced age-verification technology will be used to:
  • Remove users below 13 years; and
  • Ensure that users aged 13–17 years receive age-appropriate versions of the platforms.
• The agreement is also connected with Meta’s efforts to encourage similar safety restrictions across other social-media platforms.

Ban of Social Media for Underage Children in India

• India has not yet introduced a central-level regulatory restriction on social-media access based on age.
• However, preliminary discussions regarding age-based restrictions are reportedly underway within the IT Ministry.
• The Economic Survey 2025–26 recommended considering age-based restrictions on social-media use by children as well as limits on digital advertisements targeted at them.
• These recommendations are linked to broader concerns regarding digital addiction among young users.

Need for Regulation of Social Media for Underage Users in India

• Protection from Cyberbullying and Online Harassment: Children may face cyberbullying, trolling and online abuse, potentially affecting their psychological and social well-being.
• Mental Health and Psychological Well-being: Algorithm-driven content and excessive scrolling can contribute to addictive behaviour, unrealistic body-image expectations and peer pressure.
• Protection from Harmful Content: Children may be exposed to violent, explicit, misleading or otherwise age-inappropriate material.
• Protection from Online Predators: Young users can be vulnerable to online grooming, exploitation and trafficking-related risks.
• Reducing Screen Addiction: Excessive social-media use can reduce study time, concentration, physical activity and overall engagement in offline activities.
• Protection of Personal Data and Privacy: Children may unknowingly disclose personal information, exposing them to data misuse, identity theft and targeted manipulation.
• Combating Misinformation and Radicalisation: Young users may have difficulty distinguishing reliable information from fake news, propaganda and harmful online challenges.

Challenges in Implementing Social-Media Restrictions for Underage Users in India

• Difficulty in Age Verification: Many platforms depend on self-declared age, allowing minors to create accounts using incorrect information.
  • Stronger verification could require identity documents, creating additional privacy concerns.
• Technical and Enforcement Challenges: Implementing age restrictions across millions of users and multiple platforms would be technically and administratively complex.
• Policy Inconsistency: Different age restrictions across States could create legal and operational complications.
• Digital Rights and Freedom of Expression: A blanket prohibition could affect children’s right to information, expression and participation in digital spaces.
• Migration to Unsafe Platforms: Restrictions on mainstream platforms could push teenagers towards less regulated or anonymous services, potentially increasing their exposure to online risks.
• Risk of Widening the Digital Divide: Social media can also serve educational, informational and communication purposes. Excessive restrictions could disproportionately affect disadvantaged children who depend on digital platforms for access to information.

Conclusion

• India needs a balanced and rights-sensitive approach rather than relying solely on a blanket ban.
• Effective protection should combine age-appropriate regulation, stronger platform accountability, privacy-preserving age assurance, digital literacy and parental involvement.
• The objective should be to create a safer digital environment for children while preserving their legitimate access to information, education and digital participation.

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