India Policy Forum 2025

The 22nd India Policy Forum (IPF) 2025 volume comprises papers and brief details of the proceedings of the IPF Conference held during June 26-27 2025. In addition to the five papers presented at the IPF in 2025, the Conference included two lectures, titled, “Unleashing India’s Growth: Talent, Delegation, and the Scaling of Firms”, and “India’s Role in the New World Disorder”, chaired by Nandan Nilekani, Chairman, NCAER, and delivered by Ufuk Akcigit, Professor, University of Chicago, and Martin Wolf, Chief Economics Commentator, Financial Times, respectively. The IPF 2025 also featured several panel discussions, including ‘Trump’s Trade Wars and the Future of the International Trade System’; ‘Global Economic Outlook’; ‘Geopolitical Turmoil and its Potential Impact on the Indian Economy’; and ‘India’s Multiple Transitions—Financing a Big Investment Push’.

2025, Volume 22, Papers  





Neet’s digital transition must be matched by equal access to technology

As the debate over the National Eligibility cum Entrance Test (Neet) continues, the government’s decision to shift the undergraduate medical entrance examination to a computer-based format from 2027, replacing the current pen-and-paper mode, marks a significant reform.

The move seeks to strengthen security, enhance transparency, and restore public confidence in the wake of the paper leak. These are important because a competitive examination draws its legitimacy from being secure and credible, and has to be trusted by those whose future depends on it.

Each year, millions of students compete for a limited number of medical seats through Neet, the most for any competitive exam, making its credibility critical to the country’s education system. This year, over 2.2 million candidates took the test.

The transition from pen-and-paper to computer-based testing changes the nature of preparation itself. Familiarity with navigating digital interfaces, reviewing questions on screen, managing time electronically, and responding confidently under examination pressure can develop only through repeated exposure. These are not skills acquired suddenly.

Rather, they are built gradually through opportunities to practice. Once the examination goes digital, access to computers becomes part of the preparation process.

The success of this transition also depends on the readiness of the examination system. Although several major competitive examinations are already conducted in a computer based format, Neet will be the largest to make this shift and may require multiple shifts over several days, posing the challenge of ensuring comparable difficulty levels in question paper sets across sessions and appropriate score normalisation later. While these administrative and logistical challenges are critical to preserving the integrity of the examination, the more fundamental question is whether every candidate has had an equal opportunity to prepare for a digital test.

Evidence from the recent NCAER-Quantum Hub report based on the India Human Development Survey (IHDS-III, 2022-24) (Ganguly et al., 2026) shows a large gap in technology ownership across the urban-rural divide. Only 4.7 per cent of rural households own a desktop computer or laptop, compared with 14.9 per cent of urban households. The digital divide is equally stark across economic groups, with computer or laptop ownership at just 1.2 per cent among the poorest households and 23.1 per cent among the richest. For some students, computer-based mock tests at home will be part of their daily routine; for many others, however, computers will remain beyond reach.

Owning a computer or laptop is only part of the problem. Digital preparedness remains equally uneven. IHDS-III shows that only 32.4 per cent of men and 19.1 per cent of women aged 18-30 knew how to use a computer. Even among younger generations expected to participate in an increasingly digital education system, familiarity with computers remains far from universal. The country’s digital transition has been remarkable, but digital preparedness has not progressed uniformly across regions, gender, and socio-economic groups.

Those with computers at home can enjoy an unfair advantage in the digital interface by building familiarity, speed, and confidence at no extra cost. Students who do not have a computer at home may still compensate by purchasing a device or enrolling in coaching institutes, or using private computer centres, if they can afford to do so. But for students from financially constrained families, it could impose an additional educational cost. They may have to travel farther and pay for access to computers or prepare with fewer opportunities to practise. They may therefore be disadvantaged, compared with their relatively affluent and urban counterparts.

Competitive examinations are meant to identify the most capable candidates, not those with greater access to resources. A computer-based examination introduces a new prerequisite for demonstrating merit: Familiarity with a digital interface. Students, familiar with computers, are likely to navigate the examination interface with greater speed, ease, and confidence than equally capable students with limited exposure to the device.

Every technological reform carries transition costs, and those costs are rarely distributed equally. Sustained investments in digital preparedness should therefore go hand in hand with the transition to computer-based testing. Expanding computer laboratories in government schools, providing free computer-based mock examinations, establishing district-level digital practice centres, and strengthening computer literacy well before students reach the examination halls could be some of the steps taken to provide a level playing field. These investments are essential to ensuring that the transition to computer based testing remains fair, not only for Neet, but for all high-stakes examinations adopting the format.

The move towards computer-based examinations is both inevitable and desirable. But the transition to digital examinations should be accompanied by equal opportunities to prepare. As Neet enters the digital era, it is important that every student, regardless of their geographical location or socio-economic background, has an equal opportunity to adapt to the new system. Computer-based testing can make the examination more secure and transparent. Ensuring equal opportunities to prepare will make it fair as well. India needs both.

The writer is an associate fellow at the NCAER-National Data Innovation Centre. The views are personal

NCAER News: July 2026

NCAER News is a monthly digest where you can learn about NCAER’s research outputs, its latest events, and offerings.

India needs to rethink the way it approaches environmental compensation

As the country enters an era of unprecedented infrastructure expansion and climate uncertainty, the real measure of success will not be how many trees are planted.

India’s journey towards becoming a developed nation by 2047 will require unprecedented investments in highways, railways, renewable energy, irrigation systems, industrial corridors and urban infrastructure. These investments are indispensable for sustaining economic growth, improving connectivity and enhancing the quality of life for millions. At the same time, every major infrastructure project raises an unavoidable environmental question: how should society compensate for the forests that are diverted for development?

For more than three decades, India has addressed this challenge through compensatory afforestation. The principle is straightforward. When forest land is diverted for non-forest purposes, an equivalent area is afforested elsewhere. Supported by the Forest (Conservation) Act, the Compensatory Afforestation Fund Management and Planning Authority (CAMPA), and substantial financial resources, this approach has become one of the cornerstones of India’s environmental governance.

There is little doubt that compensatory afforestation has strengthened environmental safeguards. It has institutionalised the important principle that economic development should not proceed without accounting for ecological losses. It has also mobilised substantial investments in afforestation and landscape restoration. Yet the environmental challenges confronting India today are fundamentally different from those that shaped forest policy several decades ago.

Climate change, biodiversity loss, landscape fragmentation and increasing pressure on natural resources require us to ask a more fundamental question: Is planting trees the same as restoring forests?

The answer is increasingly no.

A mature natural forest is far more than a collection of trees. It is a living ecosystem built over decades through interactions among vegetation, wildlife, soils, microorganisms, hydrological processes and human communities. Such forests regulate water flows, recharge groundwater, stabilise soils, store carbon, moderate local climates, support biodiversity and sustain the livelihoods of millions of forest-dependent people. These ecological functions cannot be recreated simply by planting saplings on another piece of land.

This distinction between tree cover and ecosystem functionality is becoming increasingly important as India expands its infrastructure while simultaneously pursuing ambitious climate and biodiversity commitments. Success can no longer be judged solely by the number of hectares afforested or the amount of money spent on plantation programmes. What ultimately matters is whether ecological functions have been restored.

The experience of the Indira Sagar Multipurpose Project in Madhya Pradesh illustrates why this broader perspective is necessary. Commissioned in 2005 as one of India’s largest river valley projects, it involved the diversion of more than 41,000 hectares of forest land and required an extensive Environmental Management Plan that included compensatory afforestation, catchment area treatment, wildlife management and long-term environmental monitoring. At the time, the project represented one of India’s earliest large-scale efforts to integrate environmental safeguards into infrastructure development.

Two decades later, however, the project offers a valuable opportunity to revisit how ecological compensation should be evaluated. The relevant question today is no longer whether compensatory afforestation was carried out according to regulatory requirements. Rather, it is whether the ecological functions lost through forest diversion have been meaningfully restored. Have watersheds become more resilient? Have wildlife habitats recovered? Have degraded landscapes regained ecological integrity? These are the questions that increasingly define successful environmental restoration.

Historical evidence also suggests that forest sustainability depends on much more than plantation activity. Forest outcomes are shaped by interactions among livelihood dependence, community institutions, education, climatic conditions and ecological processes. This broader understanding reinforces an important policy lesson: ecological restoration is as much a social and institutional challenge as it is an ecological one.

India therefore needs to rethink the way it approaches environmental compensation.

One possible way forward is what may be termed Modest Ecological Compensation. The emphasis on “modest” is deliberate. It recognises that mature natural forests cannot be fully recreated within human planning horizons. Rather than lowering environmental ambition, the concept calls for the meaningful recovery of essential ecosystem functions through scientifically informed and context-specific restoration.

Under such a framework, compensatory afforestation would remain an essential component of environmental mitigation. However, it would become one element within a broader ecological restoration strategy. Environmental compensation would increasingly encompass biodiversity conservation, groundwater recharge, watershed restoration, wildlife connectivity, carbon sequestration, community participation and long-term ecological monitoring. In other words, compensation would be evaluated not simply by the number of trees planted but by the extent to which ecological resilience has been restored.

Crucially, this approach does not seek to replace India’s existing legal framework. The institutions established under CAMPA and related legislation remain indispensable. Rather, the proposal is to build upon these foundations by expanding the definition of ecological success. Measuring environmental outcomes through ecosystem functionality would better reflect both contemporary ecological science and India’s international commitments on climate change, biodiversity conservation and ecosystem restoration.

Such an approach would also strengthen public confidence in environmental decision-making. Infrastructure development and environmental conservation are too often portrayed as competing objectives. In reality, both depend upon healthy ecosystems. Roads, reservoirs, industries and cities ultimately rely on functioning watersheds, stable climates, resilient landscapes and sustainable natural resources. Investing in ecological restoration is therefore not an obstacle to development but a prerequisite for making development more durable.

India has already demonstrated considerable leadership in developing institutions for environmental compensation. The next step is to ensure that these institutions evolve alongside advances in ecological science. Moving beyond area-based compensatory afforestation towards function-based ecological compensation would represent an important evolution in environmental governance.

As India enters an era of unprecedented infrastructure expansion and climate uncertainty, the objective should no longer be merely to replace the forests that are diverted, but to restore the ecological systems upon which both economic prosperity and environmental sustainability ultimately depend.

The real measure of success will not be how many trees are planted. It will be whether those restored landscapes continue to provide clean water, healthy soils, biodiversity, climate resilience and secure livelihoods for generations to come. 

Saurabh Bandopadhyay is Senior Fellow at NCAER, New Delhi.Views expressed are the author’s own and don’t necessarily reflect those of Down To Earth

India Human Development Survey: July 2026

The IHDS Forum is a monthly update of socio-economic developments in India by the IHDS research community, based on the India Human Development Survey, jointly conducted by NCAER and the University of Maryland. While two earlier rounds of the survey were completed in 2004-05 and 2011-12, respectively. Fieldwork for the third round was undertaken in 2022-24 and the data is currently being cleaned and processed.

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