PYQ Relevance:
Q) Distinguish between Capital Budget and Revenue Budget. Explain the components of both these Budgets. (UPSC CSE 2021) |
Mentor’s Comment: UPSC mains have always focused on the Capital Budget and Revenue Budget (2021), and the objectives of Union-Budget (2017).
The Union Budget’s forecast of 10.1% nominal GDP growth for 2025-26 seems reasonable, based on the Economic Survey’s prediction of 6.3%-6.8% real GDP growth. Although capital spending has gone up, it’s similar to last year’s budget. The Budget aims to drive growth towards becoming a developed nation, though some measures, like tax relief, could have come sooner.
Today’s editorial talks about the measures taken in the Budget. This content would help in GS paper 3 in the economy section.
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Let’s learn!
Why in the News?
Some measures in the Budget should have been introduced earlier and replacing ‘fiscal deficit’ as a key indicator is a wrong decision.
How realistic are the government’s tax revenue growth assumptions?
- Gross Tax Revenue (GTR) Trends: The growth in the Government of India’s GTR has been trending downwards in recent years. The buoyancy of GTR has fallen for three successive years from 1.4 in 2023-24 to 1.15 in 2024-25 (RE) and then to 1.07 in 2025-26 (BE). As a result, growth in the Government of India’s GTR has kept falling from 13.5% in 2023-24 to 11.2% in 2024-25 (RE), and to 10.8% in 2025-26 (BE). Within the government’s tax revenues, the growth rate of Goods and Services Tax (GST) has also fallen from 12.7% in 2023-24 to 10.9% in 2025-26 (BE).
- Shift to Direct Taxes: The structure of the government’s taxation has moved from indirect to direct taxes, with the share of direct taxes in the government’s GTR increasing from 52% in 2021-22 to 59% in 2025-26 (BE).
- Personal Income Tax: There has been a fall in growth from 25.4% in 2023-24 to 20.3% in 2024-25 (RE) and 14.4% in 2025-26 (BE). This fall in growth in 2025-26 (BE) is partly due to the announced income-tax concessions.
- Corporate Income Tax: The growth in 2024-25 (RE) is quite low at 7.6%. This growth has been raised to 10.4% in 2025-26 (BE).
Is the level of government expenditure appropriate, and is its composition efficient?
- Overall Expenditure: The government is estimated to spend Rs 50,65,345 crore in 2025-26, 7.4% higher than the revised estimate of 2024-25. The size of government expenditure as a percentage of GDP has been reduced from 14.6% in 2024-25 (RE) to 14.2% in 2025-26 (BE). Growth in total expenditure, at 7.6% in 2025-26 (BE), is lower than the budgeted nominal GDP growth at 10.1%.
- Capital Expenditure: Capital expenditure has been raised from 11.11 lakh crore rupees in the current fiscal year to 11.21 lakh crore rupees for the oncoming fiscal year1. There has been a steady improvement in the quality of government expenditure as the share of capital expenditure in total expenditure has been improving. This share has improved by 10% points over the period from 2020-21 to 2025-26 (BE).
- Investment in Key Areas: Investment remains a central theme in the Budget, categorized into three key areas—people, economy, and innovation.
- Investment in people: Includes the establishment of Atal Tinkering Labs, broadband connectivity for schools and health centers, Centers of Excellence for Skilling, and initiatives for Gig workers.
- Investment in the economy: Focuses on infrastructure projects, interest-free loans to states for capital expenditure, asset monetization, and urban redevelopment projects.
- Investment in innovation: Allocates funds to private sector-driven R&D initiatives and missions to support urban planning and knowledge systems.
- AI Infrastructure: The Government of India has to build up large-scale Artificial Intelligence (AI) infrastructure in order to facilitate the adoption of emerging technologies.
Is the shift away from using fiscal deficit as a primary indicator of fiscal prudence a positive step?
- Change in Indicator: One measure introduced in the Budget is to move away from fiscal deficit as an indicator of fiscal prudence. The practice of giving a glide path in terms of fiscal deficit is being discontinued. It has been stated that from now on, the focus will be on reducing the debt-GDP ratio annually.
- New Target: The central government aims to reduce its outstanding liabilities to around 50% of GDP by March 2031.
- Debt-GDP Ratio: In the 2025-26 Budget, the practice of giving a glide path in terms of fiscal deficit is being discontinued. Alternative paths of the debt-GDP ratio with nominal GDP growth assumptions of 10.0%, 10.5% and 11.0% are given.
- The glide paths are indicated in terms of alternative growth assumptions and alternative assumptions regarding mild, moderate, and high degrees of fiscal consolidation. This makes the whole exercise vague and non-transparent.
- Fiscal Deficit Target: The fiscal deficit target for FY26 is set at 4.4% of GDP, revised down from 4.8% in the current financial year.
Way forward:
- Restore Fiscal Deficit Transparency: Reintroduce clear fiscal deficit targets with specific timelines, instead of focusing solely on the debt-GDP ratio. This would ensure greater clarity and accountability in fiscal management.
- Enhance Investment Efficiency: Prioritize strategic investments in key areas like AI infrastructure, R&D, and innovation, while ensuring these investments align with long-term growth goals and contribute to overall economic resilience.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Forest Right; Forest Cover;
Why in the News?
On December 18, 2024, the Supreme Court ordered Rajasthan’s Forest Department to map all sacred groves using satellite and ground surveys based on their cultural and ecological importance, regardless of their size.
| Note: In Rajasthan, sacred groves, locally known as ‘orans’, are estimated to number around 25,000, covering approximately 6 lakh hectares across the state. |
What are the implications of the December 18 order?
- Conflict with the Forest Rights Act (FRA), 2006 – The order contradicts the FRA, which was enacted to recognize and vest forest rights with gram sabhas. Instead, the decision shifts control from communities to the Forest Department.
- Loss of Community Autonomy – Sacred groves, which have been traditionally protected by local communities, will now be governed by state authorities, potentially disrupting cultural conservation practices.
- Potential Erosion of Traditional Governance Systems – The transfer of management could weaken customary laws and traditional conservation practices that have preserved these groves for generations.
- Legal Precedence for Future Cases – By prioritizing the Wildlife Protection Act (WLPA), 1972, over the FRA, this order may set a precedent for other community-managed lands to be taken over by the Forest Department.
- Impact on Livelihoods and Religious Practices – Communities that depend on sacred groves for religious, medicinal, and cultural purposes may face restrictions under the new classification as ‘community reserves’.
What did T.N. Godavarman v. Union of India establish about the definition of ‘forest land’?
- Broad Definition: The Supreme Court established that ‘forest land’ includes not only areas understood as forests in the dictionary sense but also any area recorded as forest in government records, regardless of ownership.
- Expert Committees: The ruling directed state governments to form expert committees to identify areas that fit this definition of ‘forest land’.
How are sacred groves traditionally conserved by communities?
- Watershed & Ecological Functions: Many sacred groves protect natural water sources, prevent soil erosion, and regulate local climate. Example: Orans (Rajasthan) – These groves support perennial water streams and serve as critical grazing lands for livestock.
- Strict Protection through Customary Laws & Taboos: Communities impose strict prohibitions on tree felling, hunting, or resource extraction in sacred groves. Example: Sarpa Kavu (Kerala) – These groves are dedicated to serpent deities, and cutting trees is considered a bad omen.
- Religious & Cultural Practices for Conservation: Rituals, festivals, and community prayers reinforce the spiritual importance of these groves. Example: Devara Kadu (Karnataka) – Annual worship ceremonies maintain local participation in conservation efforts.
- Community Governance & Management: Local elders, priests, or village councils oversee the maintenance and enforcement of protection norms. Example: Jahera (Odisha, Chhattisgarh) – Tribal communities like the Gonds and Santhals manage these groves as sacred spaces.
- Role in Biodiversity Preservation: The groves act as biodiversity hotspots, protecting endemic flora, fauna, and medicinal plants. Example: Law Kyntang (Meghalaya) – Khasi communities conserve these forests, which shelter rare orchids and medicinal herbs.
Way forward:
- Harmonizing Legal Frameworks – Amend policies to ensure the Forest Rights Act (FRA), 2006, and Wildlife Protection Act (WLPA), 1972, work in tandem, recognizing gram sabhas’ authority in managing sacred groves while ensuring ecological conservation.
- Community-Centric Conservation – Strengthen traditional governance systems by legally empowering local communities to manage sacred groves, integrating scientific conservation methods with cultural practices.
Mains PYQ:
Q Examine the status of forest resources in India and its resultant impact on climate change. (UPSC IAS/2020)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Health Sector;
Why in the News?
Recently, the Budget has acknowledged health care as a cornerstone of national growth and development.
What are India’s steps towards healthcare transformation in Budget 2025-26?
- Increased Healthcare Spending: The budget includes a substantial allocation of ₹99,859 crore to the healthcare sector, marking a 9.8% increase from the previous fiscal year.
- Expansion of Medical Education: The budget allocates resources to add 10,000 new seats in medical colleges across India in FY26, with plans to add 75,000 seats over the next five years. This expansion aims to address the rising demand for skilled healthcare professionals.
- Strengthening Healthcare Infrastructure: There is an increase of ₹1,000 crore allocation under the PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), which aims to strengthen health infrastructure at all levels.
- Digital Health Focus: The budget emphasizes the expansion of digital health portfolios, including telemedicine and AI-driven diagnostic solutions, to bridge care gaps and offer efficient healthcare solutions to underserved regions.
- Promoting Medical Tourism: With the launch of the ‘Heal in India’ initiative, the budget aims to position India as a top medical tourism destination by introducing on-arrival visas for international patients and streamlining visa norms.
- Healthcare Coverage for Gig Workers: The budget extends Ayushman Bharat coverage to one crore gig workers, recognizing their contribution to the new-age services economy.
- Support for AI in Healthcare: The budget announces the establishment of India’s Centre of Excellence for AI, and the expansion of the Atal Tinkering Labs (ATL) initiative, will further propel research within the Indian healthcare sector.
What would be the implications of Customs duty exemptions?
- Cost Reduction: The budget includes a full exemption of customs duty on 36 life-saving drugs used to treat cancer, rare diseases, and other severe chronic conditions. This measure will significantly reduce the cost of these essential medications, making them more accessible to patients, especially those from economically disadvantaged backgrounds.
- Improved Access to Medications: The exemption extends to specific drugs under Patient Assistance Programs run by pharmaceutical companies, along with adding 37 new medicines and 13 new patient assistance programs by next year. This will improve access to critical medications for patients, particularly those with chronic conditions.
What are the objectives of synergy – ‘Heal in India’?
- Promote Medical Tourism: The ‘Heal in India’ initiative aims to promote medical tourism by simplifying visa procedures for international patients.
- Establish India as a Global Healthcare Destination: By enhancing hospital infrastructure and streamlining visa processes, India is poised to become the preferred medical destination for international patients.
What are the challenges in India?
- Inadequate Infrastructure: India faces a shortage of healthcare infrastructure, particularly in rural areas, leading to unequal access to services.
- For example, India has only 0.9 beds per 1000 population, with only 30% of these beds located in rural areas. This is significantly lower than the WHO’s suggested norm of 3.5 beds per 1000 population.
- The underdeveloped state of roads and railways, along with erratic power supply, further complicates the establishment of rural health facilities.
- Financial Barriers: A significant portion of the population faces affordability issues, with many households bearing healthcare expenses out-of-pocket.
- For instance, a large proportion of the Indian population lacks health insurance coverage, exacerbating the financial burden and limiting access to necessary healthcare services.
- High costs of intensive care units (ICUs), averaging ₹60,000-90,000 per day, are beyond the reach of most Indians.
- Shortage of Healthcare Professionals: There is a shortage of trained healthcare professionals, including doctors, nurses, and specialists.
- For example, shortages of surgeons, obstetricians and gynaecologists, general physicians, and paediatricians range from 74.2% to 81.6% of the required strength in Community Health Centers (CHCs). The doctor-patient ratio is significantly low, especially in rural areas.
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Way forward:
- Strengthen Rural Healthcare Infrastructure – Increase investments in rural hospitals, improve transport and power infrastructure, and incentivize private sector participation to bridge accessibility gaps.
- Expand Medical Workforce & Insurance Coverage – Enhance training programs for doctors and nurses, increase medical seats, and extend affordable health insurance schemes to reduce out-of-pocket expenses for low-income groups.
Mains PYQ:
Q Public health system has limitation in providing universal health coverage. Do you think that private sector can help in bridging the gap? What other viable alternatives do you suggest? (UPSC IAS/2015)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: India-USA relations;
Why in the News?
The U.S. deporting dozens of Indians for being illegal immigrants is not unexpected or new.
What are the reasons behind it?
- Illegal Immigration Enforcement: The deportations are part of intensified Immigration and Customs Enforcement (ICE) operations aimed at identifying, detaining, and deporting individuals who are in the U.S. without proper documentation.
- Large-Scale Illegal Migration – Many Indians, particularly from Gujarat, Punjab, and Haryana, attempt to enter the U.S. illegally through Mexico and Canada due to economic distress and job shortages.
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What is the potential impact of US immigration policies on Indian students and professionals?
- Legal Migration Channels: The Indian government is keen on ensuring that legal migration channels to the U.S. for Indian nationals are not restricted by the U.S. administration. These legal routes include H-1B visas for skilled workers and visas for students.
- Deterrence of Illegal Migration: Both the U.S. and India are engaged in deterring illegal migration while creating more avenues for legal migration from India to the U.S.
- Increased Deportations: Deportation of Indian nationals from the United States surged by 400% in the past three years. In 2024, 1,529 Indians were deported, a significant jump from 292 in 2021.
- Impact on Undocumented Indians: Approximately 725,000 undocumented Indians reside in the U.S., primarily from Punjab and Gujarat. As of November of the previous year, 20,407 undocumented Indians were either facing final removal orders or were held in detention centers of U.S. Immigration and Customs Enforcement.
How will this impact the USA?
- Labour Market Disruptions: Deportations can create labor shortages in sectors reliant on immigrant workers, such as construction and hospitality. (Example: Indian workers contribute significantly to the U.S. IT and service industries.)
- Diplomatic Tensions: Large-scale deportations may strain U.S.-India relations, especially if handled insensitively. (Example: The use of military flights for deportations sparked protests from other countries like Colombia.)
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How might the deportation of Indian nationals affect the political landscape in India?
- Domestic Political Fallout: The deportation of thousands of Indians could become a political issue, with opposition parties blaming the government for failing to create adequate job opportunities at home.
- Diplomatic Challenges: The mass deportations could strain India-U.S. relations, particularly if deportees face harsh treatment, triggering diplomatic interventions.
- Public Backlash: The use of military flights and reports of inhumane treatment, such as shackling, may create anti-U.S. sentiment among the Indian public.
- State-Level Political Implications: States with high numbers of deportees (Gujarat, Punjab, Haryana) may experience political unrest, with local governments facing pressure to provide jobs and reintegration support.
- Rise in Anti-Illegal Migration Policies: The Indian government may be compelled to introduce stricter measures against illegal immigration and human trafficking networks, affecting those attempting to migrate illegally.
- Impact on Indian Diaspora Relations: The large-scale return of undocumented migrants could impact remittances, economic support for families, and the broader perception of Indian migrants globally.
What should India do? (Way forward)
- Strengthen Domestic Employment Opportunities: Implement targeted economic reforms, boost job creation in high-migration states (Gujarat, Punjab, Haryana), and address the root causes driving illegal migration, such as agricultural distress and unemployment.
- Enhance Public Awareness & Legal Migration Channels: Conduct awareness campaigns on the risks of illegal immigration while expanding safe and legal pathways for skilled migration through bilateral agreements with the U.S. and other countries.
- Engage in Diplomatic & Policy Advocacy: Strengthen diplomatic efforts to ensure fair treatment of deported individuals, negotiate favourable visa policies for Indian professionals and students, and collaborate with the U.S. on workforce mobility solutions.
Mains PYQ:
Q ‘Indian diaspora has a decisive role to play in the politics and economy of America and European Countries’. Comment with examples. (UPSC IAS/2020)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM Surya Ghar Muft Bijli Yojana
Why in the News?
The Union Budget 2025 has significantly increased the allocation for the PM Surya Ghar Muft Bijli Yojana (SGMBY) to ₹20,000 crore, up from ₹11,100 crore in the FY25 Revised Estimates (RE) and ₹6,250 crore in the FY25 Budget Estimates (BE).
About PM Surya Ghar Muft Bijli Yojana:
- It is a flagship initiative launched by Prime Minister on February 15, 2024, under the Ministry of New and Renewable Energy (MNRE).
- It aims to provide free electricity up to 300 units per month by facilitating the installation of rooftop solar panels in 1 crore households across India.
- The scheme has a budget outlay of ₹75,021 crore and is planned for implementation until FY 2026-27.
- The initiative is part of India’s clean energy transition, reducing dependency on fossil fuels and promoting sustainable energy solutions.
- Key Features:
- 40% subsidy on installation costs through Central Financial Assistance (CFA).
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- 1 kilowatt: 30,000 rupees
- 2 kilowatts: 60,000 rupees
- 3 kilowatts: 48,000 rupees
- 3 kilowatts or more: 78,000 rupees
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- National Programme Implementation Agency (NPIA) at the national level and State Implementation Agencies (SIAs) at the state level.
- Two Solar Installation Models:
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- RESCO Model – Third-party ownership, with consumers paying only for electricity used.
- Utility-Led Aggregation (ULA) Model – DISCOMs or state agencies install solar panels for households.
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- Model Solar Village: ₹1 crore incentive for the top-performing village in each district.
- Payment Security Mechanism (PSM): ₹100 crore fund to encourage private investment in solar energy.
Significance
- Reduces Electricity Bills: Households can save ₹15,000 to ₹1,80,000 annually.
- Boosts Renewable Energy: Helps achieve 40 GW of rooftop solar capacity, bridging the gap from 10.4 GW (as of November 2023).
- Strengthens Energy Security: Expands access to sustainable and decentralized power.
- Environmental Impact: Reduces carbon emissions and reliance on fossil fuels.
- Empowers Rural India: 50% of projects are expected in Tier-2 and Tier-3 cities, promoting economic growth and electrification.
PYQ:
[2020] India has immense potential for solar energy though there are regional variations in its developments. Elaborate. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Ocean Coordination Mechanism (OCM)
Why in the News?
The Ocean Coordination Mechanism (OCM) was recently announced by the Intergovernmental Oceanographic Commission (IOC) of UNESCO on January 14, 2025.
What is Ocean Coordination Mechanism (OCM)?
- The OCM, launched by the Intergovernmental Oceanographic Commission (IOC) of UNESCO, aims to enhance marine conservation and resource management.
- It focuses on the Caribbean and North Brazil Shelf, regions with rich biodiversity, coral reefs, and fisheries generating $610 million annually.
- The OCM promotes Blue Carbon Projects, using coastal ecosystems for carbon storage, benefiting both climate resilience and local communities.
- It has secured $15 million in funding from the Global Environment Facility (GEF) under the UNDP/GEF PROCARIBE+ Project, with an additional $126.02 million in co-financing.
Intergovernmental Oceanographic Commission (IOC) of UNESCO
- Established in 1961, the IOC/UNESCO promotes marine science cooperation for sustainable ocean governance.
- It operates in key areas:
- Ocean science research: Supports studies on climate change, biodiversity, and sustainability.
- Tsunami warning systems: Maintains early warning mechanisms to mitigate risks.
- Ocean observations: Collects and analyzes oceanographic data for policy-making.
- The IOC leads the UN Decade of Ocean Science for Sustainable Development (2021-2030), known as the “Ocean Decade”, advancing global marine conservation efforts.
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About the Caribbean Sea
- The Caribbean Sea is part of the North Atlantic Ocean, located south of the Gulf of Mexico and southwest of the Sargasso Sea.
- Bordering Nations:
- Greater Antilles – Cuba, Jamaica, Hispaniola (Haiti & Dominican Republic), Puerto Rico.
- Lesser Antilles – Includes islands from Virgin Islands to Trinidad & Tobago.
- South America – Borders Venezuela & Colombia.
- Central America – Includes Panama, Costa Rica, Nicaragua, Honduras, Guatemala, Belize.
- Key Features:
- Deepest Point – The Cayman Trough, at 7,686 meters below sea level.
- Mesoamerican Barrier Reef – Second-largest barrier reef globally, stretching 1,000 km.
- Major Gulfs and Bays – Includes Gulf of Venezuela, Gulf of Honduras, and Gulf of Darién.
- The Caribbean Sea supports rich biodiversity but faces threats from climate change, pollution, and overfishing, making conservation efforts like OCM essential for sustainability.
PYQ:
[2021] Consider the following statements :
1. The Global Ocean Commission grants licences for seabed exploration and mining in international waters.
2. India has received licences for seabed mineral exploration in international waters.
3. ‘Rare earth minerals’ are present on seafloor in international waters.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Guru-Shishya Parampara Scheme
Why in the News?
The Ministry of Culture implements a Central Sector scheme by the name of ‘Financial Assistance for Promotion of Guru-Shishya Parampara (Repertory Grant)’.
What is the Guru-Shishya Parampara Scheme?
- The Ministry of Culture launched this scheme in 2003-04.
- It aims to preserve and promote India’s traditional performing arts.
- It provides financial assistance to Gurus (mentors) and Shishyas (students) in music, dance, theatre, and folk arts, ensuring structured training under the age-old mentorship system.
- Aims and Objectives:
- Preserve and revive rare art forms through direct knowledge transfer.
- Support traditional artists by providing financial aid for sustainable livelihoods.
- Encourage young talent by facilitating training under experienced Gurus.
- Promote classical, folk, and tribal art forms through structured mentorship.
Features and Significance:
- Financial Assistance
- Guru – ₹7,500/month | Accompanist – ₹3,750/month
- Shishyas – ₹1,500/month (up to four per Guru)
- Repertory Grant – Guru: ₹15,000/month | Shishya: ₹2,000 – ₹10,000/month
- Eligibility
- Indian citizens engaged in traditional performing arts.
- Gurus aged 45-70 years with national-level recognition.
- Implementation & Monitoring
- Each Guru trains 5-8 Shishyas, focusing on rural and tribal artists.
- Periodic reviews and expert evaluations ensure proper fund utilization.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Nuclear Energy Mission
Why in the News?
The Union Budget 2025-26 introduced the Nuclear Energy Mission, aiming to develop at least 5 indigenous Small Modular Reactors (SMRs) by 2033.
About Nuclear Energy Mission (NEM):
| Details |
- A flagship initiative announced in Union Budget 2025-26 to accelerate India’s nuclear power capacity towards the target of 100 GW by 2047.
- It focuses on Small Modular Reactors (SMRs), expansion of Bharat Small Reactors (BSRs), and policy reforms to attract private and foreign investment in nuclear energy.
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| Key Highlights of the NEM |
- 100 GW Nuclear Target by 2047 as part of India’s clean energy transition.
- ₹20,000 crore allocated for R&D and deployment of Small Modular Reactors (SMRs).
- Public-Private Collaboration for setting up Bharat Small Reactors (BSRs) and advanced nuclear technologies.
- Amendments to Atomic Energy Act, 1962 to allow private sector participation.
- Changes to Civil Liability for Nuclear Damage Act, 2010 to attract foreign investment.
- Deployment of BSRs (220 MWe) and SMRs (30-300 MWe) to replace coal plants and power remote regions.
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| Other Initiatives for Enhancing India’s Nuclear Capacity |
Expansion of Nuclear Power Capacity:
- Current capacity: 8,180 MW → Target by 2031-32: 22,480 MW.
- 10 reactors under construction (8,000 MW) across Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh.
- Approval for 6 x 1208 MW AP1000 reactors (USA collaboration) at Kovvada, Andhra Pradesh.
Deployment of Advanced Nuclear Reactors:
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- Bharat Small Reactors (BSRs): 220 MWe PHWRs for industrial decarbonization.
- Prototype Fast Breeder Reactor (500 MWe) at Kalpakkam achieved milestones in 2024.
- High-Temperature Gas-Cooled Reactors (HTGRs) & Molten Salt Reactors (MSRs) under development using India’s thorium reserves.
Recent Developments:
- New uranium deposit discovered at Jaduguda Mines (extends mine life by 50+ years).
- Operationalization of first two 700 MWe PHWR units at Kakrapar, Gujarat (KAPS-3 & 4).
- NPCIL-NTPC Joint Venture (ASHVINI) launched to build nuclear plants.
- Rajasthan Atomic Power Project-7 (RAPP-7) reached criticality in 2024.
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PYQ:
[2018] With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. (250 Words, 15 Marks)
[2011] The function of heavy water in a nuclear reactor is to:
(a) Slow down the speed of neutrons
(b) Increase the speed of neutrons
(c) Stop the nuclear reaction
(d) None of the above |
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PYQ Relevance:
Q) Critically examine the role of WHOin providing global health security during the Covid-19 pandemic. (UPSC CSE 2020) |
Mentor’s Comment: UPSC mains have always focused on Bridging Healthcare Gaps (2015), and WHO Initiatives (2020).
The US is the largest contributor to WHO, providing about 18% of its funding. The withdrawal is expected to jeopardize critical health programs, particularly those addressing tuberculosis, HIV/AIDS, and other health emergencies.
Today’s editorial emphasizes the need for member states to collaborate more effectively in light of reduced US involvement, ensuring that global health priorities remain addressed despite funding challenges. This content can be used to present the significance of multilateral collaboration and its impact on international policy and governance with respect to Health.
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Let’s learn!
Why in the News?
After the USA’s withdrawal from WHO, it is time for the countries in the global south to support WHO and initiate collaborative actions to reshape the global health agenda.
What are the Potential Impacts of the US Withdrawal from WHO?
- Disruption of Funding and Programs: The US contributes nearly 18% of WHO’s budget (~$1 billion annually), supporting critical health programs like immunization, tuberculosis control, and pandemic preparedness.
- The withdrawal will likely disrupt ongoing projects aimed at combating health challenges such as HIV/AIDS and polio eradication.
- Weakened Global Health Response: WHO’s ability to coordinate responses to health crises will be significantly impaired without US support. This includes reduced resources for disease surveillance and emergency operations in regions facing outbreaks or health threats.
- Impact on Global Health Leadership and Collaboration: The absence of the US may create a leadership vacuum within WHO, allowing other nations (e.g., China) to increase their influence.
- This shift could alter international collaboration dynamics and lead to fragmented approaches to public health challenges.
- Repercussions for Low-Income Countries: Marginalized communities in low-income countries may face disproportionate impacts due to reduced funding from WHO. These communities rely heavily on WHO for access to essential health services, and the withdrawal signals a deprioritization of global health initiatives, exacerbating existing inequalities.
- The overall effectiveness of global health initiatives may decline as WHO struggles with funding constraints and could slow long-term progress toward key health goals, such as disease eradication and comprehensive vaccination programs, ultimately affecting global health security.
How might the withdrawal reshape international health diplomacy?
- Shift in Global Health Leadership: The absence of the US may create a leadership vacuum within WHO, potentially allowing countries like China to increase their influence in global health governance.
- This shift could alter the dynamics of international collaboration, with other nations stepping up to fill the void left by the US.
- Increased Geopolitical Tensions: The withdrawal could intensify competition between the US and China for influence in global health matters.
- China’s initiatives, such as the Health Silk Road, may gain traction as it seeks to position itself as a leader in global health, thereby reshaping alliances and partnerships among countries.
- Impact on Multilateral Cooperation: The US’s exit may weaken multilateral cooperation on critical health issues, leading to fragmented responses to global health challenges.
- Countries may become less willing to collaborate on shared health threats without US leadership, which could hinder effective pandemic preparedness and response efforts.
- Loss of Diplomatic Leverage: By withdrawing, the US relinquishes its role as a key influencer in shaping global health policies and initiatives.
- This could diminish its ability to advocate for public health programs that align with its interests and values, allowing other nations to take a more prominent role in setting global health agendas.
- Disproportionate Effects: The low-income countries that rely heavily on WHO for support may face greater challenges without US involvement.
What reforms or changes might be necessary within WHO in light of this withdrawal?
- Diversification of Funding Sources: WHO should encourage member states to increase their assessed contributions, which currently cover less than 20% of its budget. This could help reduce reliance on any single donor, particularly the US.
- WHO can seek to expand its voluntary contributions from other countries and private organizations to fill the financial gap left by the US withdrawal.
- Strengthening Governance and Accountability: Implementing more transparent financial management practices can help restore trust among member states and ensure that funds are allocated effectively.
- Establishing an independent oversight body to review WHO’s operations and decision-making processes may help address concerns about political influence and enhance accountability.
What opportunity do India have in this situation?
- Increased Leadership Role: India can take a prominent leadership position within WHO, representing the Global South.
- For Example, through the Vaccine Maitri initiative, India facilitated vaccine exports during the COVID-19 pandemic, demonstrating its commitment to global health equity and influencing health policies.
- Strengthening Domestic Capabilities: The withdrawal allows India to bolster its healthcare infrastructure and research capabilities.
- For Example, significant investments in indigenous vaccine production, such as Covaxin and Covishield, have positioned India as a major player in global vaccine supply chains, enhancing self-reliance and healthcare outcomes.
- Enhanced Collaboration with Emerging Economies: India can forge stronger partnerships with other emerging economies to collaboratively address global health challenges.
- For Example, engagement with countries like Brazil and South Africa through the IBSA Dialogue Forum can focus on shared issues like antimicrobial resistance and maternal health, enhancing collective responses to public health threats.
- Leveraging Pharmaceutical Strength: India’s robust pharmaceutical industry can fill gaps left by reduced WHO funding.
- Known as the “pharmacy of the world,” India supplied affordable vaccines during the pandemic, reinforcing its reputation as a key player in global healthcare by continuing to produce low-cost medications.
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Way Forward: India can not only mitigate the impacts of the US withdrawal but also can significantly contribute to shaping a more equitable global health landscape.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Impact of Cancer;
Why in the News?
The financial strain of cancer is often ignored but can be the most harmful. It not only impacts the patient but also their family and future generations.
What is the extent of financial toxicity faced by cancer patients in India?
- High Treatment Costs: Cancer treatments, especially advanced options like immunotherapy, can be prohibitively expensive. For instance, a patient with oral cancer may face annual costs of approximately ₹10 lakh, adding to previous expenses that can total ₹25 lakh over several years. This financial strain often forces families to deplete savings or sell assets to afford care.
- Impact on Families: Financial toxicity extends beyond the patient to their families, leading to severe economic consequences. Families may resort to selling properties or skipping meals to manage treatment costs, which can entrap them in a cycle of generational poverty.
- Out-of-Pocket Expenses: A significant portion of healthcare costs is borne out-of-pocket by patients. For example, outpatient expenses can account for nearly 50% of total healthcare costs, which are not covered by insurance schemes like Ayushman Bharat.
What are the contributing factors to financial toxicity in cancer care?
- Inadequate Public Health Funding: India’s public health expenditure has historically been below 2% of GDP, resulting in insufficient healthcare infrastructure and personnel in public hospitals. This leads to delays in diagnosis and treatment, particularly for advanced cancer cases that require more costly interventions.
- Limited Insurance Coverage: Existing insurance schemes primarily cover inpatient costs, leaving patients responsible for outpatient diagnostics and follow-up treatments. This gap significantly contributes to the financial burden on patients and their families.
- Economic Disparities: Patients from low and middle-income backgrounds face additional hurdles in accessing cutting-edge treatments due to their high costs and limited availability in public health systems.
What are the steps taken by the Indian Government?
- Health Minister’s Cancer Patient Fund (HMCPF): Established in 2009 under the Rashtriya Arogya Nidhi, this fund provides financial assistance up to ₹5 lakh for cancer treatment at designated Regional Cancer Centers (RCCs).
- In emergency cases, assistance can go up to ₹15 lakh. The fund aims to support patients living below the poverty line.
- Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-JAY): This scheme offers health coverage of up to ₹5 lakh per family per year for secondary and tertiary care hospitalization, including cancer treatments. It is designed for low-income families and is operational across India.
- State-Specific Schemes: Various states have their own initiatives:
- Arogyasri Scheme in Andhra Pradesh: Provides free cancer treatment for families with an annual income below ₹5 lakh.
- Free Chemotherapy in Odisha: Offers free chemotherapy treatment at district hospitals for poor cancer patients.
- Financial Assistance in Punjab: Up to ₹1.5 lakh is provided for cancer treatment to eligible residents.
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What strategies can be implemented to mitigate financial toxicity? (Way forward)
- Strengthening Public Healthcare: Increasing government investment in public health could improve access to affordable cancer care.
- States like Delhi and Kerala have initiated schemes to support direct medical costs, but broader implementation is needed across India.
- Supportive Measures for Non-Medical Costs: Initiatives such as discounted travel fares for cancer patients can alleviate some financial burdens associated with non-medical expenses. Expanding these programs could provide significant relief.
- Role of Nonprofits and CSR: Nonprofit organizations play a crucial role in reducing out-of-pocket expenses through various support services. Increased funding from corporate social responsibility (CSR) initiatives could help these organisations expand their reach and impact.
- Promoting Philanthropy: Encouraging individual philanthropy among wealthier segments of society could provide critical funding for cancer care initiatives and nonprofits focused on assisting low-income patients.
- Policy Advocacy: Advocating for policies that address the gaps in insurance coverage and promote equitable access to cancer treatments is essential for reducing financial toxicity in the long term.
Mains PYQ:
Q What are the research and developmental achievements in applied biotechnology? How will these achievements help to uplift the poorer sections of the society? (UPSC IAS/2021)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Trade war;
Why in the News?
In 2025, the United States’ imposition of a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Chinese goods, exemplifies modern beggar-thy-neighbour policies.
What is Beggar-Thy-Neighbor Policy?
- Beggar-thy-neighbor policies refer to protectionist economic policies in which economic strategies are adopted by a country to improve its own economic situation at the expense of other nations.
- These policies often involve protectionist measures such as tariffs, quotas, or currency devaluation, which can lead to negative repercussions for trading partners. For example, recently the USA imposed tariffs on China.
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What are the positive implications of this policy?
- Domestic Economic Boost: Proponents argue that these policies can stimulate the domestic economy by protecting local industries and jobs. For example, tariffs on imports can encourage consumers to buy domestic products, potentially reducing unemployment in key sectors.
- National Security: Supporters often cite national security concerns, suggesting that certain industries need protection from foreign competition to maintain a robust domestic economy.
- Encouragement of Exports: By depreciating the national currency, a country can make its exports cheaper and more competitive in international markets, which is believed to enhance demand for domestic goods abroad.
What do the critics say?
- Global Economic Decline – The U.S.-China Trade War (2018-Present) illustrates how protectionist policies can escalate into retaliatory actions.
- The U.S. imposed tariffs on Chinese goods, prompting China to retaliate with its own tariffs, disrupting global supply chains and reducing international trade volumes.
- Higher Consumer Prices – The U.S. Tariffs on Steel and Aluminum (2018) under Section 232 increased production costs for American industries relying on these metals, such as automobile and construction sectors.
- A study by the Federal Reserve found that these tariffs cost U.S. consumers and businesses over $1.4 billion per month.
- Historical Warnings – The Smoot-Hawley Tariff Act (1930) in the U.S. significantly raised tariffs on imports, leading to retaliation from trading partners like Canada and European nations.
- This contributed to a sharp decline in global trade and worsened the Great Depression. Global exports fell by nearly two-thirds between 1929 and 1934, demonstrating the adverse effects of widespread protectionism.
- Reduced Innovation and Efficiency – India’s License Raj (1947–1991) is a prime example of how excessive protectionism stifled innovation. The heavily regulated economy limited foreign competition, leading to inefficiencies, outdated technology, and slow economic growth.
- Post-1991 economic liberalization, which reduced trade barriers, spurred competition, efficiency, and innovation across various industries.
Which countries use this policy?
- U.S. Tariffs and Trade War – Under the “America First” policy, the U.S. imposed tariffs on $250 billion worth of Chinese goods in 2018 to shield domestic industries. In response, China introduced retaliatory tariffs on U.S. products, escalating a trade war that disrupted global markets.
- China’s Currency Policies – China has been accused of currency manipulation to maintain trade advantages. In 2019, the U.S. Treasury labeled China a currency manipulator after the People’s Bank of China allowed the yuan to depreciate, making Chinese exports cheaper and imports more expensive.
- Japan’s Currency Interventions – To boost exports during economic stagnation, Japan’s central bank has weakened the yen through market interventions. While this makes Japanese exports more competitive, it raises import costs for domestic consumers and affects trading partners negatively.
- Germany’s Eurozone Trade Advantage – Germany’s strong export-driven economy, supported by fiscal discipline and manufacturing strength, has been seen as creating imbalances within the Eurozone. During financial crises, weaker European economies struggle to compete, intensifying economic disparities.
Does India use this policy?
In recent times, India has indeed engaged in practices that can be characterized as beggar-thy-neighbor policies, particularly in the context of trade and economic strategy.
- Tariffs on Imports: India has imposed tariffs on various goods to protect its domestic industries.
- For instance, in 2018, India raised import duties on a range of products, including electronics and agricultural goods, to encourage local manufacturing and reduce reliance on foreign imports. Such measures can be seen as attempts to bolster India’s economy at the expense of exporting countries.
- Restrictions on Chinese Imports: Following geopolitical tensions, India has implemented stricter regulations and tariffs on imports from China.
- This includes bans on several Chinese apps (like tiktok) and increased scrutiny of Chinese investments.
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Way forward:
- Balanced Trade Policies: Countries should adopt a mix of strategic protectionism and open trade to safeguard domestic industries while preventing trade wars.
- Strengthening WTO mechanisms and engaging in fair trade negotiations can ensure economic stability.
- Focus on Competitiveness: Instead of relying on protectionist measures, nations should invest in innovation, skill development, and infrastructure to enhance global competitiveness, ensuring sustainable economic growth without harming trading partners.
Mains PYQ:
Q What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially keeping in mind the interest of India? (UPSC IAS/2018)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Issues related to the Judiciary;
Why in the News?
The Union Budget offers a major tax cut, benefiting taxpayers earning above ₹7 lakh. Rebates and exemptions have increased to reduce liabilities, though it may lead to an estimated ₹1 lakh crore revenue loss.
What is the logic behind the tax rebates?
- Boosting Household Consumption: Taxpayers earning ₹7–12 lakh/year now qualify for a full rebate (earlier limited to sub-₹7 lakh earners), saving ₹70,000–₹1.1 lakh annually.
- This exemption limit was raised from ₹3 lakh to ₹4 lakh for those earning above ₹12 lakh, reducing tax burdens across income groups.It will Increase disposable income to drive consumption, savings, and private investment.
- With weak private investment and uncertain global demand, tax rebates are aimed at stimulating domestic consumption.
- Leveraging Tax Buoyancy for Revenue Growth: Despite an 8% tax rate reduction, the government anticipates a 14% rise in direct tax revenue (₹14.3 lakh crore), requiring a 24% income growth among taxpayers. It Simplified tax slabs and phased out the old regime to improve compliance and widen the taxpayer base.
- Focus on Middle-Class Welfare: The overarching goal of these tax rebates is to support the middle class, which constitutes a significant portion of the electorate and plays a vital role in the economy. By alleviating their tax burden, the government seeks to enhance their financial well-being and foster a more equitable economic environment.
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What are the implications if tax buoyancy does not work out?
- Revenue Shortfalls: A failure in tax buoyancy would lead to lower than expected tax revenues, resulting in budget deficits. This could force the government to cut essential services and social programs, negatively impacting the welfare of vulnerable populations.
- Pro-Cyclical Fiscal Policy: Insufficient tax revenue may compel the government to adopt a pro-cyclical fiscal policy, reducing public spending during economic downturns instead of stimulating growth. This can exacerbate economic slowdowns and hinder recovery efforts.
- Increased Tax Burden on Compliant Taxpayers: To compensate for revenue shortfalls, the government might increase taxes on those who continue to pay taxes, placing a heavier burden on compliant taxpayers and potentially discouraging further compliance and economic activity.
Is it ‘Fiscal Consolidation’ or ‘Fiscal Contraction’?
- The current approach appears to lean more towards fiscal contraction rather than fiscal consolidation. The Finance Minister has set a lower deficit target of 4.4% for 2025-26, down from 4.8% in the previous year. This suggests a tightening of fiscal policy rather than an expansion aimed at stimulating growth.
- Critics argue that such contractionary measures are ill-timed given the current economic slowdown, as they limit the government’s ability to invest in growth-promoting initiatives. The expectation seems to hinge on corporate investment and export growth to drive recovery, which may not be sufficient if domestic demand remains weak due to reduced government spending.
| Aspect |
Consolidation Argument |
Contraction Criticism |
| Deficit Target |
Lowered to 4.4% of GDP (from 4.8% in FY24), aiming for 3% by FY29 |
Aggressive deficit cuts during slowing growth (projected 10.1% nominal GDP) risk stifling recovery |
| Revenue Strategy |
Bank on ₹28.37 trillion net tax receipts (+11% YoY) via compliance gains and income growth |
No compensatory taxes for high earners (30% slab unchanged) or wealth assets, risking ₹1.26 lakh crore shortfall |
| Expenditure Focus |
Capital expenditure raised to ₹11.2 lakh crore (+17.4% YoY) for infrastructure multipliers |
Social sector allocations remain stagnant, with FY24 revised spending 15% below initial estimates. |
Way forward:
- Balanced Fiscal Approach – Instead of aggressive fiscal contraction, the government should adopt a gradual deficit reduction strategy while maintaining targeted public spending, especially in infrastructure and social sectors, to sustain domestic demand and economic growth.
- Enhancing Revenue without Burdening Taxpayers – Strengthen tax compliance through digital tracking, rationalize subsidies, and explore progressive taxation on wealth and high-income segments to ensure fiscal stability without increasing the burden on the middle class.
Mains PYQ:
Q Comment on the important changes introduced in respect of the Long-term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018-2019. (UPSC IAS/2018)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Customs Duty
Why in the News?
The Budget proposes to remove 7 customs tariff rates for industrial goods, following a similar step in Budget 2023-24. This will leave only 8 tariff rates, including a zero rate, making customs duty structure more transparent and predictable.
What is Customs Duty?
- Customs Duty is a tax imposed on goods that cross international borders to regulate their movement.
- It helps protect a country’s economy, jobs, environment, and residents by controlling imports and exports.
- It prevents illegal trade, ensures fair competition, and generates government revenue.
- The Customs Act, 1962, which defines and regulates customs duty in India.
- The Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance manages customs duties.
- Types of Customs Duties in India:
- Basic Customs Duty (BCD): Levied on imported goods (0-100%).
- Countervailing Duty (CVD): Imposed to balance foreign subsidies (0-12%).
- Social Welfare Surcharge (SWS): 10% surcharge to support welfare projects.
- Anti-Dumping Duty: Imposed on goods sold below market price to prevent unfair trade.
- Compensation Cess: Levied on items like tobacco and pollution-causing goods.
- Integrated GST (IGST): Imposed on imports at 5%, 12%, 18%, or 28% rates.
- Safeguard Duty: Applied when excessive imports harm domestic industries.
- Customs Handling Fee: 1% charge for customs processing.
- Customs Duty Calculation: Based on product value, origin, composition, and international trade agreements.
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Key Changes Announced to Customs Tariffs:
- Tariff rates reduced from 15 to 8, Social Welfare Surcharge was removed on 82 items.
- 36 new life-saving medicines exempted, 5% duty on six more drugs.
- Full BCD exemption on 35 EV battery capital goods, 28 mobile battery items, and key minerals like cobalt & lithium.
- 10-year duty exemption for shipbuilding materials; Ethernet Switch duty cut from 20% to 10%.
- 20% export duty on crust leather removed, handicraft export timeline extended to 1 year.
- Frozen fish paste duty cut from 30% to 5% to boost seafood exports.
- Customs assessments limited to 2 years, quarterly importer reporting instead of monthly.
How India is Protecting Its Economy from Trade War Impact?
- Rupee-based trade settlements with Russia, UAE & Sri Lanka to reduce dollar dependence.
- Stockpiling essential imports like semiconductors, rare earth metals, and crude oil.
- Attracting companies shifting from China with PLI incentives for manufacturing.
- Paperless customs clearance, AI-driven trade monitoring, and blockchain documentation for smoother trade.
- Strengthening global trade alliances like IPEF (Indo-Pacific Economic Framework) and Supply Chain Resilience Initiative (SCRI) (Japan-Australia) for supply chain stability.
PYQ:
[2018] Consider the following statements
1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.
2. The Government does not impose any customs duty on all the imported edible oils a special case.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GARBH-INi-DRISHTI
Why in the News?
India’s first Ferret Research Facility, GARBH-Ini-DRISHTI, was inaugurated at Translational Health Science and Technology Institute (THSTI) in Faridabad to boost vaccine development and infectious disease research.
About GARBH-INi-DRISHTI
- GARBH-INi-DRISHTI is a data repository and information-sharing hub designed to provide comprehensive clinical and biological insights into maternal and child health.
- Developed under the GARBH-INi program, it is one of South Asia’s largest pregnancy cohort datasets, offering access to clinical data, medical images, and bio-specimens.
- The platform includes data from over 12,000 pregnant women, newborns, and postpartum mothers, enabling extensive research into maternal and neonatal health outcomes.
- It is a collaborative initiative, involving India’s top research institutions and hospitals, ensuring scientific synergy in maternal healthcare.
- Aims:
- To enhance maternal and neonatal healthcare research through large-scale data accessibility.
- To support global researchers in conducting transformative studies that can improve birth outcomes.
- To provide early insights into pregnancy-related complications, fostering better diagnostic and preventive measures.
- To develop predictive tools for conditions like preterm birth, ensuring better maternal health interventions.
- Features:
- Comprehensive Data Repository: Houses clinical, imaging, and bio-specimen data from thousands of pregnant women and newborns.
- Advanced Data Access: Researchers can explore detailed datasets to study pregnancy outcomes, foetal health, and postnatal development.
- Secure and Controlled Access: Provides clear guidance on data usage and approvals, ensuring ethical research practices.
- Global Research Platform: Enables nationwide and international collaboration, allowing researchers to work on common healthcare challenges.
- Supports Policy and Decision-Making: The data can be leveraged to shape maternal health policies, improve diagnostic protocols, and design effective interventions.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Gyan Bharatam Mission
Why in the News?
The Union Budget 2025-26 has introduced the Gyan Bharatam Mission, a comprehensive initiative for surveying, documenting, and conserving India’s manuscript heritage.
What is Gyan Bharatam Mission?
- It is a nationwide initiative launched in the Union Budget 2025-26 to survey, document, and conserve India’s manuscript heritage.
- The mission aims to cover over one crore manuscripts, ensuring the systematic preservation of ancient texts housed in academic institutions, museums, libraries, and private collections.
- It is a revival and expansion of the National Manuscripts Mission (NMM), which was originally established in 2003 but had limited impact due to inadequate funding and structural challenges.
- The mission aligns with India’s broader cultural conservation goals and is expected to create a centralized repository for India’s rich textual and intellectual heritage.
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- Survey and document manuscripts across institutions and private collections.
- Digitize rare texts and create a centralized repository for research and preservation.
- Restore and conserve fragile manuscripts using modern preservation techniques.
- Features and Significance:
-
- Budget Allocation Increased: Funding for NMM raised from ₹3.5 crore to ₹60 crore.
- Digital Preservation: AI-driven archiving, metadata tagging, and translation tools for easy access.
PYQ:
[2023] With reference to Indian History, Alexander Rea, A. H. Longhurst, Robert Sewell, James Burgess and Walter Elliot were associated with (2023)
(a) archaeological excavations
(b) establishment of English Press in Colonial India
(c) establishment of Churches in Princely States
(d) construction of railways in Colonial India |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Hollongapar Gibbon WLS
Why in the News?
Exploratory drilling for oil and gas has been approved within the eco-sensitive zone surrounding the Hollongapar Gibbon Wildlife Sanctuary.
About the Hollongapar Gibbon WLS
- Hollongapar Gibbon Wildlife Sanctuary was initially established as Hollongapar Reserve Forest in 1997 and renamed in 2004.
- It is the only habitat for hollock gibbons in India.
- Located in Assam, with the Bhogdoi River along its northern boundary.
- Biome classified as plains alluvial semi-evergreen forests with patches of wet evergreen forests.
- Flora:
- Upper canopy: Dominated by Hollong trees (Dipterocarpus macrocarpus), Sam, Amari, Sopas, Bhelu, Udal, and Hingori.
- Middle canopy: Features Nahar trees.
- Lower canopy: Composed of evergreen shrubs and herbs.
- Fauna:
- Primates: Includes Hoolock Gibbons, Bengal Slow Loris (only nocturnal primate in Northeast India), stump-tailed macaques, northern pig-tailed macaques, eastern Assamese macaques, rhesus macaques, and capped langurs.
- Other mammals: Indian elephants, tigers, leopards, jungle cats, wild boars, civets, squirrels, and more.
About the Hoolock Gibbons:
- Gibbons are the smallest and fastest apes, and they inhabit tropical and subtropical forests across Southeast Asia.
- It is the only ape specie found in India.
- They possess high intelligence, exhibit distinct personalities, and have strong familial bonds, reflecting characteristics similar to other ape species.
- The current population of hoolock gibbons is estimated at around 12,000, found primarily in Northeast India, Bangladesh, Myanmar, and southern China.
- Two distinct species, the eastern hoolock gibbon (Hoolock leuconedys) and the western hoolock gibbon (Hoolock hoolock), were previously reported in India.
- Conservation Status
- IUCN Red List: the western hoolock gibbon is classified as Endangered, and the eastern hoolock gibbon is classified as Vulnerable.
- Both gibbon species in India are placed under Schedule I of the Wildlife (Protection) Act, 1972.
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PYQ:
[2010] Consider the following pairs:
Protected Area:: Well-known for
1. Bhitarkanika, Orissa :: Salt Water Crocodile
2. Desert National Park, Rajasthan :: Great Indian Bustard
3. Eravikulam, Kerala :: Hoolock Gibbon
Which of the pairs given above is/are correctly matched?
(a) 1 only
(b) 1 and 2 only
(c) 2 only
(d) 1, 2 and 3 |
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PYQ Relevance:
Q) ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC CSE 2017)
Q) The Gati-Shakti Yojana needs meticulous co-ordination between the government and the private sector to achieve the goal of connectivity. Discuss. (UPSC CSE 2022) |
Mentor’s Comment: UPSC mains have always focused on Sustainable Development (2016, 2017, 2018 and 2022), and Budget Initiatives (2017 and 2021).
Currently, India holds only about 0.05% of the global market share in shipbuilding, significantly lower than competitors like China (47%), South Korea (30%), and Japan (17%). This disparity highlights that without addressing inefficiencies in container movement and logistics integration, infrastructure growth alone will not lead to meaningful progress.
The editorial discusses the recent positive developments in India’s shipping industry, particularly following the government’s announcements in the Union Budget 2025-26. This content can be used to present challenges in the Maritime Sector.
_
Let’s learn!
Why in the News?
The Union Budget 2025-26 appears to have met most of the shipping industry’s demands; but it has missed an opportunity to address tax disparities.
What specific government initiatives are being introduced to support the shipping industry?
- Maritime Development Fund (MDF): This initiative is the establishment of a MDF with an initial corpus of ₹25,000 crore which aims to provide long-term financing for the shipbuilding and maritime sectors, facilitating investment and growth within the industry.
- Shipbuilding Financial Assistance Policy: The government has announced a revamp of the Shipbuilding Financial Assistance Policy (SBFAP) which aims to address cost disadvantages faced by domestic shipyards by providing direct financial subsidies, thereby encouraging local shipbuilding and enhancing competitiveness.
- Customs Duty Exemptions and Incentives: This Budget extends customs duty exemptions on inputs and components used for manufacturing ships for more than 10 years.
- Additionally, credit notes will be issued for shipbreaking activities, promoting a circular economy within the industry in order to make shipbuilding and recycling more competitive.
- Extension of Tonnage Tax Scheme: The benefits of the existing tonnage tax scheme, which previously applied only to sea-going ships, will now be extended to inland vessels registered under the Indian Vessels Act, 2021.
- This change aims to promote inland water transport and enhance the overall efficiency of the maritime sector.
- Establishment of Shipbuilding Clusters: The Indian shipping industry has been advocating for the extension of the Shipbuilding Financial Assistance Policy (SBFAP) for another 10 years under the Amritkaal Maritime Vision 2047.
- The government plans to facilitate the creation of shipbuilding clusters to increase capacity and capabilities in ship manufacturing.
How can these initiatives impact India’s position in the global shipping market?
- Enhanced Global Competitiveness: By establishing the Maritime Development Fund and revamping financial assistance policies, India aims to boost its shipbuilding capabilities and reduce costs associated with ship construction and repair.
- This could elevate India’s ranking in global shipbuilding from 22nd to potentially within the top 10 by 2030 and top 5 by 2047, thereby increasing its share of global ship tonnage from less than 1% to around 5%.
- Improved Infrastructure and Efficiency: The government’s focus on port modernization through initiatives like the Sagarmala Programme and Maritime India Vision 2030 is set to enhance port infrastructure, logistics efficiency, and multimodal connectivity.
- These improvements will reduce turnaround times for vessels and lower logistics costs, making Indian ports more attractive for international shipping lines and increasing cargo handling capacity significantly.
- Attracting Foreign Investment: With a favorable investment climate that allows 100% Foreign Direct Investment (FDI) in port development, India is positioned to attract significant foreign capital into its shipping sector.
- This influx of investment can lead to technological advancements, better operational practices, and increased capacity, further solidifying India’s role as a key player in global maritime trade.
What challenges does the Indian shipping industry face despite these positive developments?
- High Costs and Financial Constraints: Indian shipyards face significant cost disadvantages compared to global competitors, particularly in terms of higher material and labor costs, as well as expensive financing options.
- This results in a 25-30% cost disadvantage for Indian shipyards compared to those in countries like China and South Korea.
- Additionally, the imposition of a 5% Goods and Services Tax (GST) on ship imports, which is not refunded for international operations, further strains financial resources for shipping companies.
Does the SARFAESI Act impact loan availability?
- Under Section 31(d) of the SARFAESI Act, banks and financial institutions cannot create a security interest in vessels as defined by the Merchant Shipping Act, 1958.
- This limitation means that lenders cannot easily seize and auction ships in case of loan defaults, which reduces their willingness to extend credit to shipowners.
- The ongoing discussions about amending the SARFAESI Act to include provisions for ships indicate a recognition of these challenges.
- By allowing banks to hold security interests in vessels, the government can enhance loan availability and create a more favorable environment for financing within the maritime sector.
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- Infrastructure Bottlenecks: Major Indian ports are grappling with issues such as congestion, inefficiency, and inadequate infrastructure to support increasing traffic volumes.
- The growth in cargo traffic has outpaced the development of port facilities, leading to delays and higher operational costs.
- For example, backlogs for rail freight have increased significantly, impacting the timely movement of goods.
- Furthermore, labor strikes and outdated technology contribute to lower productivity at ports, making them less attractive to global shipping lines.
- Dependence on Foreign Suppliers: Indian shipyards heavily rely on foreign suppliers for critical components and technology, which increases costs and complicates supply chains.
- This dependency results in longer lead times for procurement and vulnerability to supply chain disruptions.
- The lack of a robust domestic supply chain for high-tech maritime components further exacerbates these challenges, limiting the competitiveness of Indian shipbuilding firms.
Way Forward:
To realize its aspirations under the Amritkaal Maritime Vision 2047, India must prioritize investments in infrastructure, streamline regulatory processes, and foster a skilled workforce.
- The path forward requires a concerted effort from all stakeholders to transform these challenges into opportunities for sustainable development in the maritime sector.
- Establish a National Port Grid Authority to coordinate development across major and minor ports, promoting specialization and eliminating inter-port competition.
- Implementing a hub-and-spoke model with mega ports acting as transshipment hubs can optimize cargo movement and efficiency.
- Deploy Smart Port Infrastructure Management Systems (SPIMS) and introduce blockchain-based Port Community Systems to facilitate paperless and IoT based trade.
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Issues related to employment;
Why in the News?
With the Union Budget now presented, this is the right time to focus on three important types of jobs India needs: climate-friendly jobs, jobs that can adapt to AI, and jobs that match people’s aspirations.
Why must long-term structural reforms in India focus on creating climate-resilient, AI-resilient, and aspiration-centric jobs?
- Economic Stability & Climate Adaptation: Climate change threatens agriculture, infrastructure, and livelihoods. Structural reforms must promote green jobs in renewable energy (e.g., solar panel manufacturing, e-rickshaw deployment) and climate adaptation (e.g., afforestation, water conservation projects) to ensure sustainable economic growth.
- Future-Proofing Against Automation: With AI disrupting traditional jobs, reforms should focus on AI-resilient employment by upskilling workers for roles in healthcare, education, and creative industries (e.g., AI-assisted medical diagnostics, digital marketing). This will help maintain workforce relevance and prevent large-scale job losses.
- Inclusive & Aspirational Workforce: Youth and marginalized groups need jobs that match their ambitions. So, reforms should enhance opportunities in high-growth sectors like tourism, food processing, and local manufacturing (e.g., PM Vishwakarma Yojana for artisans, National Manufacturing Mission in textiles and electronics) to drive social mobility and economic dynamism.
What are the recent allocation of the budget for Jobs creation?
- Skill Development Boost: The budget for the skill development ministry has nearly doubled to ₹6,017 crore for FY26, with ₹3,000 crore allocated for upgrading Industrial Training Institutes (ITIs) to enhance vocational training.
- Targeted Job Creation: Over 21 lakh direct and indirect jobs are planned in fisheries, tourism, food processing, textiles, and electronics including 11 lakh under PM Matsya Sampada Yojana and 5.8 lakh under the PM Employment Generation Programme.
- Sector-Specific Focus: Labor-intensive industries like footwear, leather, textiles, and electronics receive significant support, with initiatives like the Footwear Development Programme (₹350 crore) and the National Manufacturing Mission aiming to create 2-3 million jobs.
- Support for Artisans: The PM Vishwakarma Yojana will uplift over 61 lakh artisans, promoting self-employment and economic inclusion for marginalized communities.
- Infrastructure & Innovation: Five National Centres of Excellence for skilling will be established, alongside a ₹200 billion allocation for private sector-led R&D to drive technological advancements and job creation.
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What types of jobs are necessary for achieving Viksit Bharat?
- Manufacturing Jobs: Increasing the contribution of manufacturing to GDP from approximately 16% to 25% by 2030 is crucial. This requires creating jobs in various manufacturing industries, enhancing productivity, and reducing operational costs.
- MSMEs are vital for employment generation. Policies aimed at supporting these enterprises can create millions of jobs by fostering entrepreneurship and innovation within local communities.
- Boosting Rural Demand and Agricultural Reforms: Jobs that focus on modernizing agriculture through technology and sustainable practices can enhance productivity and create employment in rural areas. This includes initiatives that support local farmers and agricultural workers.
- Skill Development Initiatives: With a strong emphasis on skilling the workforce, there is a need for jobs that require specialized training in sectors like technology, healthcare, and renewable energy.
- Climate-Resilient Employment: As India faces significant challenges due to climate change, creating jobs focused on sustainability—such as in renewable energy sectors (solar, wind) and environmental conservation—will be critical for long-term resilience.
- AI and Digital Economy Roles: With the rise of artificial intelligence and digital transformation, there is a growing demand for jobs that leverage technology. This includes roles in IT services, software development, data analysis, and digital marketing.
- Service Sector Jobs: The service sector continues to be a significant contributor to employment in India. Focused efforts on improving service delivery in healthcare, education, and hospitality can create numerous job opportunities.
How can structural reforms in the economy facilitate job creation?
- Enhancing Government Investment: Increased funding in infrastructure, education, and healthcare sectors directly correlates with job creation.
- For instance, investments in rural infrastructure can stimulate local economies and create jobs in construction and services.
- Promoting Industry Participation: Collaborating with industries for training programs ensures that the skills developed align with market needs, thereby improving employability. This approach can help bridge the gap between educational outcomes and industry requirements.
- Supporting MSMEs: Strengthening micro, small, and medium enterprises (MSMEs) through financial incentives and easier access to credit can drive job creation. MSMEs are crucial for employment as they account for a significant portion of India’s workforce.
What role does government policy play in bridging the gap between formal and informal economies? (Way Forward)
- Implementing Employment Schemes: Programs such as the Employment Linked Incentives (ELI) aim to create jobs through targeted financial support for employers who hire new employees.
- This encourages formal employment while providing a safety net for workers transitioning from informal sectors.
- Facilitating Skill Development: Policies focused on skill development ensure that workers are equipped with relevant skills for emerging sectors like technology and renewable energy.
- This not only helps integrate informal workers into the formal economy but also enhances overall productivity.
- Encouraging Entrepreneurship: By fostering an environment conducive to startups and small businesses through grants, tax incentives, and simplified regulations, the government can stimulate job creation across various sectors, particularly in rural areas where traditional job opportunities may be limited.
Mains PYQ:
Q The nature of economic growth in India in recent times is often described as a jobless growth. Do you agree with this view? Give arguments in favour of your answer. (UPSC IAS/2015)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Mental Health;
Why in the News?
The Ministry of Labour and Employment’s 2024 report indicates that all States and Union Territories must complete harmonization and pre-publication of draft rules for new Labour Codes by March 31, 2025, allowing for mental health provisions.
How does social inequality impact mental health access and outcomes?
- Disparity in Access to Care: Social inequality leads to significant disparities in access to mental health care services. Individuals from lower socio-economic backgrounds, particularly blue-collar workers, often face barriers such as lack of awareness, stigma, and inadequate healthcare infrastructure, resulting in a treatment gap of 70% to 92% for mental disorders in India.
- Workplace Conditions: Blue-collar workers frequently endure demanding jobs with poor working conditions, job insecurity, and inadequate pay, which can exacerbate mental health issues. These conditions contribute to higher rates of stress and mental disorders among this demographic compared to their white-collar counterparts.
- Limited Legislative Protections: The existing labor laws primarily focus on physical safety and do not adequately address mental health concerns. This legislative gap perpetuates the marginalization of blue-collar workers in accessing mental health resources and support.
What legislative and policy changes are necessary to promote inclusivity in mental health care?
- Rights-Based Framework: Establishing a rights and duty-based legislative framework that mandates employers to ensure both physical and mental well-being is crucial. This framework should include clear definitions of occupational diseases that encompass mental health issues arising from work conditions.
- Inclusion of Mental Health in Labor Codes: The upcoming labor codes should explicitly incorporate provisions for mental health, creating a liability-based framework for employers to prioritize the mental well-being of their employees. This includes recognizing stress-related conditions as occupational hazards eligible for compensation.
- Awareness and Accessibility Initiatives: Legislative measures should mandate employers to promote awareness of available mental health resources, such as helplines and support programs like Tele Manas, ensuring that blue-collar workers are informed and encouraged to seek help without stigma.
What are the steps taken by the government?
- Implementation of National Mental Health Policies: The Indian government has implemented policies such as the National Mental Health Policy (2014), which emphasizes the integration of mental health services into primary healthcare.
- Launch of Mental Health Initiatives and Helplines: Initiatives like Tele Manas, a government-run mental health support service, have been introduced to provide confidential telephonic counselling for individuals.
- Increased Mental Health Awareness through Education and Campaigns: Programs like the “Mental Health Awareness Campaign” and partnerships with organizations like WHO have aimed to educate the public about mental health.
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How can societal attitudes towards mental health be transformed to reduce stigma? (Way forward)
- Education and Awareness Campaigns: Raising awareness through national and local campaigns can help normalize mental health discussions. For example, the “It’s Okay to Not Be Okay” campaign in India aimed at addressing mental health issues in the workplace.
- Media Representation and Positive Portrayal: The media plays a significant role in shaping public attitudes. Portraying individuals with mental health issues as strong, resilient, and capable of leading successful lives can help shift negative perceptions. For instance, Bollywood movies like “Dear Zindagi”.
- Involvement of Influential Figures: Public figures such as celebrities, politicians, and community leaders can be instrumental in reducing stigma by sharing their personal mental health stories. When Virat Kohli, an Indian cricketer, spoke openly about struggling with mental health issues, it made a powerful impact and encouraged others.
Mains PYQ:
Q ”Economic growth in the recent past has been led by increase in labour productivity.” Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity. (UPSC IAS/2022)
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Ethanol production ;
Why in the News?
Union Minister Nitin Gadkari announced that India will reach its goal of blending 20% ethanol with petrol in the next two months, a year earlier than planned. This will require producing about 1,100 crore litres of ethanol in a year.
Does India’s ethanol distillery industry have the capacity to produce large ethanol?
- Current Production Capacity: India’s ethanol distillery capacity has significantly increased to 1,600 crore litres as of 2024-25, up from 423 crore litres in 2019-20. This expansion has been driven by government incentives and a stable market for ethanol.
- Projected Production: To meet the target of 20% blending of ethanol in petrol, approximately 1,100 crore litres of fuel ethanol will be produced annually, with sugarcane expected to contribute around 400 crore litres this ethanol year.
- Diverse Feedstocks: Ethanol production is now utilizing not just sugarcane but also high-grade molasses, broken rice, and maize, indicating a shift towards a more diversified feedstock strategy.
- Government Support: The Indian government has implemented various measures to boost ethanol production, including reducing the Goods & Services Tax on ethanol and encouraging the establishment of grain-based distilleries.
Why have maize imports increased substantially in the past year?
- Rising Demand for Ethanol: The increase in maize imports can be attributed to the government’s restrictions on using sugar and high-quality molasses for ethanol production, leading to a greater reliance on maize as an alternative feedstock for ethanol.
- Import Figures: From April to June 2024, approximately ₹100 crore worth of maize was imported. For the fiscal year 2023-24, maize imports reached about $33 million, with total imports from April to November 2024 valued at $188 million.
- Impact on Domestic Production: As farmers shift towards maize cultivation due to its lucrative potential for ethanol production, maize output is projected to reach around 42 million tonnes for the 2024-25 ethanol year, with an estimated 9 million tonnes available for ethanol production.
- Market Adjustments: The growth in maize cultivation is expected to continue without necessitating further imports due to favourable conditions for Kharif crops this year. Farmers are increasingly diverting maize from traditional uses to meet the demands of the ethanol market.
What are the significance of the ethanol distillery industry?
- Energy Security and Reduced Import Dependence: The ethanol distillery industry plays a crucial role in enhancing India’s energy security by reducing reliance on imported fossil fuels. By blending ethanol with petrol, India aims to substitute a significant portion of its crude oil imports, which account for over 87% of its needs.
- Environmental Benefits: Ethanol production and blending contribute to significant reductions in carbon emissions and urban air pollution. Ethanol’s chemical properties allow for more complete combustion, which lowers harmful emissions such as carbon monoxide and particulate matter.
- Economic Growth and Rural Development: The ethanol industry stimulates economic growth by providing additional income streams for farmers through the cultivation of sugarcane, maize, and other biofuel crops. This has led to increased investments in distilleries and agro-processing industries, creating jobs and revitalizing rural economies.
- The government’s initiatives, such as the PM-JI-VAN Yojana, further incentivize ethanol production, ensuring stable farmer incomes and promoting diversification in agricultural practices.
Way forward:
- Enhancing Domestic Maize Production: Strengthen R&D in high-yield maize varieties, improve irrigation infrastructure, and provide financial incentives to farmers to ensure a stable domestic supply for ethanol production, reducing import dependency.
- Sustainable Feedstock Diversification: Promote second-generation (2G) biofuels using agricultural waste and non-food biomass to minimize food security concerns while maintaining ethanol production growth.
PYQ:
Q With reference to the usefulness of the by-products of sugar industry, which of the following statements is/are correct? (UPSC IAS/2022)
- Bagasse can be used as biomass fuel for the generation of energy.
- Molasses can be used as one of the feed stocks for the production of synthetic chemical fertilizers.
- Molasses can be used for the production of ethanol.
Select the correct answer using the codes given below.
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
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