Note4Students
From UPSC perspective, the following things are important :
Prelims level: Soil Health Cards Scheme
Why in the News?
It has been 10 years since the Soil Health Card Scheme was introduced by Prime Minister Shri Narendra Modi on 19th February 2015 at Suratgarh, Rajasthan.
What is the Soil Health Card Scheme?
- The SHC Scheme was launched to analyze soil quality and provide personalized recommendations to farmers for nutrient management and soil fertility improvement.
- The scheme is implemented by the Department of Agriculture & Farmers’ Welfare.
- It has been integrated into Rashtriya Krishi Vikas Yojana (RKVY) since 2022-23 under the Soil Health & Fertility component.
Key Features of the Soil Health Card Scheme:
- SHC evaluates 12 parameters, including:
- Macronutrients: N, P, K, S.
- Micronutrients: Zn, Fe, Cu, Mn, B.
- Physical & Chemical Properties: pH, EC, OC.
- Samples collected twice a year (post-Rabi and Kharif).
- Grid-based sampling: 2.5 ha in irrigated areas, 10 ha in rain-fed areas.
- SHC Portal & Mobile App enable online tracking, GPS-tagged samples, and QR-coded test results.
- Village-Level Soil Testing Labs (VLSTLs): 665 VLSTLs established across 17 states for local soil testing.
- School Soil Health Programme: Implemented in 1020 schools, with 1000 soil testing labs and 125,972 students enrolled.
Successes and Limitations of SHC:
Success:
- Crop Yields & Productivity Increased (8-10%) through optimized fertilizer application.
- Farmers saved up to ₹5,000 per hectare by using balanced fertilizers.
- 665 Village-Level Soil Testing Labs (VLSTLs) established, improving soil testing accessibility.
- Technological integration (SHC Portal & Mobile App) ensures real-time monitoring.
- Encouraged sustainable farming practices, reducing soil degradation and nutrient depletion.
Limitations and Challenges:
- Many farmers are unaware of SHC benefits and continue traditional farming methods.
- Reports often reach farmers too late for implementation.
- Limited soil testing labs and trained staff in remote areas.
- Farmers need training to interpret SHC reports and apply recommendations.
|
PYQ:
[2017] Consider the following statements:
The nation-wide ‘Soil Health Card Scheme’ aims at-
1. expanding the cultivable area under irrigation.
2. enabling the banks to assess the quantum of loans to be granted to farmers on the basis of soil quality.
3. checking the overuse of fertilizers in farmlands.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 3 only
(c) 2 arid 3 only
(d) 1, 2 and 3 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Project NAKSHA
Why in the News?
Union Minister of Rural Development has inaugurated the National Geospatial Knowledge-based Land Survey of Urban Habitations (NAKSHA) in 152 Urban Local Bodies (ULBs) across 26 States and 3 Union Territories (UTs).
What is Project NAKSHA?
- It is an AI-driven urban land survey and digitization initiative launched by the Department of Land Resources under the Ministry of Rural Development.
- Announced in the Union Budget 2024-25, the project aims to modernize urban land records through geospatial mapping, drone technology, and AI.
- Launched in February 2025, the initiative will digitize and update land records in 152 Urban Local Bodies (ULBs) across 26 States and 3 Union Territories (UTs) in its pilot phase.
- Survey of India is the technical partner, conducting aerial mapping and high-resolution imaging to create accurate, tamper-proof property records.
- The Madhya Pradesh State Electronic Development Corporation (MPSEDC) is developing an end-to-end web-GIS platform.
- National Informatics Centre Services Inc. (NICSI) will provide storage and data security.
- The Survey of India will provide orthorectified imagery for accurate mapping.
- Project NAKSHA builds on:
- Digital India Land Records Modernization Programme (DILRMP) for digitizing rural land records.
- SVAMITVA Scheme, using drone technology to map village properties.
-
- Pilot phase funding: ₹194 crore, fully financed by the Government of India.
- Overall Phase 1 budget: ₹5,000 crore for nationwide expansion.
Aims and Objectives of Project NAKSHA:
- Standardizing urban property ownership details to eliminate land disputes.
- Ensuring fraud-proof, legally valid land documentation.
- Drone surveys and satellite imagery for precision mapping.
- Detecting encroachments, illegal constructions, and land use changes.
- Providing spatial data for urban expansion and infrastructure projects.
- Digital land records enable seamless property transactions and ownership transfers.
Features and Provisions:
- 150+ cities covered in the first year, with full urban coverage in five years.
- AI-enabled classification to identify disputed, encroached, or illegal land parcels.
- Web-GIS Platform for Land Record Management to be developed by MPSEDC, ensuring real-time data access and updates.
- States and UTs to conduct field surveys and ground verification.
PYQ:
[2019] With reference to land reforms in independent India, which one of the following statements is correct?
(a) The ceiling laws were aimed at family holdings and not individual holdings.
(b) The major aim of land reforms was providing agricultural land to all the landless.
(c) It resulted in cultivation of cash crops as a predominant form of cultivation.
(d) Land reforms permitted no exemptions to the ceiling limits. |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Prime Minister Dhan-Dhaanya Krishi Yojana (PMDKY)
Why in the News?
Finance Minister while presenting the Union Budget announced the launch of the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDKY).
About the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDKY):
- The PMDKY aims to enhance agricultural productivity, crop diversification, storage infrastructure, irrigation, and credit access.
-
- Identifies 100 districts with low productivity, moderate cropping intensity, and below-average credit access.
- Develops panchayat/block-level storage and expands irrigation coverage.
- Ensures affordable short-term & long-term loans for farmers.
- Uses data-driven governance & district rankings.
-
- Implementation: Jointly executed by Central & State Governments.
- Funding: Drawn from existing schemes under the Ministry of Agriculture & Farmers’ Welfare and the Ministry of Fisheries, Animal Husbandry & Dairying.
- Evaluation: Assessed based on yield improvements, credit flow, and irrigation expansion.
PYQ:
[2015] ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for:
(a) providing housing loan to poor people at cheaper interest rates
(b) promoting women’s Self-Help Groups in backward areas
(c) promoting financial inclusion in the country
(d) providing financial help to the marginalized communities |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SASCI Scheme
Why in the News?
The Government of India has sanctioned 40 projects across 23 states, allocating ₹3295.76 crore under the ‘Special Assistance to States for Capital Investment (SASCI) Scheme for the Financial Year 2024-25.
What is the SASCI Scheme?
- The SASCI Scheme was launched in FY 2020-21 to support state capital expenditure and drive economic growth.
- Initially introduced as a post-COVID recovery measure, it has been expanded in FY 2023-24 with an allocation of ₹1.3 lakh crore.
- The scheme funds infrastructure projects, urban reforms, tourism development, and sustainability initiatives.
- Structural Mandate: The scheme has eight parts based on states’ share of central taxes:
- General Capital Assistance (₹1 lakh crore): Allocated based on states’ share of central taxes.
- Vehicle Scrappage & Testing Facilities: Incentives for phasing out old vehicles & setting up automated testing centers.
- Urban Planning Reforms: Encourages modern land-use planning & governance improvements.
- Urban Finance Reforms: Strengthens municipal revenue models & financial sustainability.
- Housing for Police Personnel: Funds residential units for police & their families.
- Cultural & Economic Development (Unity Malls): Promotes One District One Product (ODOP), Make in India & local entrepreneurship.
- Digital Libraries at Panchayat/Ward Levels: ₹5,000 crore for library infrastructure & digital learning access.
- Development of Iconic Tourist Centres: Global-scale branding & infrastructure for major tourism hubs.
Features & Significance:
- Boosts capital investment to stimulate demand and job creation.
- Encourages reforms in urban governance, infrastructure, and sustainability.
- Promotes responsible tourism and global branding of iconic destinations.
- Strengthens local industries through One District One Product (ODOP).
- Improves public services like policing, water supply, and rural roads.
PYQ:
[2016] Which of the following is/are included in the capital budget of the Government of India?
- Expenditure on acquisition of assets like roads, buildings, machinery, etc.
- Loans received from foreign governments
- Loans and advances granted to the States and Union Territories
Select the correct answer using the code given below:
(a) 1 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: GREAT Scheme
Why in the News?
As of February 4, 2025, 4 startups have been approved under the ‘Grant for Research & Entrepreneurship across Aspiring Innovators in Technical Textiles (GREAT)’ Scheme.
About GREAT Scheme:
- The GREAT Scheme is a government initiative under the National Technical Textiles Mission (NTTM).
- Launched by the Ministry of Textiles, it provides financial support to startups working in technical textiles.
- The scheme focuses on Medical Textiles, Industrial Textiles, and Protective Textiles, fostering innovation, research, and entrepreneurship.
- It aims to promote entrepreneurship in technical textiles by funding early-stage innovations.
-
- Financial Support: Startups receive grants of up to ₹50 lakh for up to a period of 18 months.
- No Royalty Requirement: Unlike private funding, the government does not take a share of the startup’s profits.
- Upfront Contribution: Startups must deposit 10% of the allocated grant (e.g., ₹5 lakh for a ₹50 lakh grant).
- Sector Focus: Covers Medical, Industrial, and Protective Technical Textiles.
- Budget Allocation: Part of the ₹375 crore funding for FY 2025 under NTTM.
Back2Basics: National Technical Textiles Mission (NTTM)
- Launched in 2020 to make India a global leader in technical textiles through research and innovation.
- Budget of ₹1,480 crore, focusing on medical, industrial, protective, and geo-textiles.
- Supports R&D, skill development, and investment in high-performance textiles for defense, healthcare, and infrastructure.
- Includes Production-Linked Incentives (PLI), PM MITRA Parks, and quality control regulations to boost manufacturing.
- Aims to increase India’s technical textiles market to $40-50 billion with 15-20% annual growth.
|
PYQ:
[2013] Analyse the factors for highly decentralized cotton textile industry in India. |
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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).
-
-
- 1 kilowatt: 30,000 rupees
- 2 kilowatts: 60,000 rupees
- 3 kilowatts: 48,000 rupees
- 3 kilowatts or more: 78,000 rupees
-
- National Programme Implementation Agency (NPIA) at the national level and State Implementation Agencies (SIAs) at the state level.
- Two Solar Installation Models:
-
-
- 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.
-
- 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: 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.
|
| 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.
|
| 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:
-
- 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.
|
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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Note4Students
From UPSC perspective, the following things are important :
Prelims level: National Manufacturing Mission (NMM)
Why in the News?
The Union Finance Minister, while presenting the Union Budget 2025-26, announced the launch of the National Manufacturing Mission (NMM) to boost India’s manufacturing sector under the Make in India initiative.
What is the National Manufacturing Mission?
- The NMM was announced in Union Budget 2025-26 to boost India’s manufacturing sector under the Make in India initiative.
- It covers small, medium, and large industries and aims to strengthen domestic production capabilities, enhance competitiveness, and create jobs.
- The mission provides policy support, execution roadmaps, and governance frameworks for both central ministries and state governments.
- It promotes Clean Tech manufacturing and focuses on developing an ecosystem for critical industrial components such as solar PV cells, EV batteries, wind turbines, and high-voltage transmission equipment.
- Aims and Objectives:
- Boost domestic production to reduce import dependence.
- Enhance MSME sector growth with credit expansion (₹10 crore from ₹5 crore).
Key Features & Significance:
- Infrastructure & Industrial Clusters to strengthen supply chains.
- National Action Plan for Toys to make India a global toy hub.
- New footwear & leather industry scheme to create 22 lakh jobs and boost exports.
- National Institute of Food Technology in Bihar to increase farmer incomes through food processing.
Back2Basics: National Manufacturing Policy (NMP)
- Launched in 2011 to boost India’s manufacturing sector.
- Aims to increase GDP share to 25% and create 100 million jobs in a decade.
- Focuses on National Investment and Manufacturing Zones (NIMZs) to attract investment and enhance productivity.
- Promotes technology advancement, skill development, and sustainable growth with fiscal & infrastructure incentives.
- Key areas: Ease of doing business, labor law reforms, export growth, and global competitiveness.
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PYQ:
[2012] What is/are the recent policy initiative(s) of Government of India to promote the growth of manufacturing sector?
1. Setting up of National Investment and Manufacturing Zones
2. Providing the benefit of ‘single window clearance’
3. Establishing the Technology Acquisition and Development Fund
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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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bharatiya Bhasha Pustak Scheme
Why in the News?
In the Union Budget 2025-26, Finance Minister, has introduced the Bharatiya Bhasha Pustak Scheme to provide digital textbooks in Indian languages.
What is Bharatiya Bhasha Pustak Scheme?
- Aims and Objectives:
- It will provide digital textbooks and study resources for students at the school and university levels, promoting regional languages in the education system.
- The scheme aims to bridge the language gap by providing digital textbooks and study materials in multiple Indian languages.
- It ensures that students from diverse linguistic backgrounds can study subjects in their mother tongue, improving comprehension and retention.
- It aligns with the NEP 2020 vision to promote multilingualism in education.
- It complements the ASMITA (Augmenting Study Materials in Indian Languages through Translation and Academic Writing) initiative.
- 22,000 books in Indian languages will be developed in the next five years under ASMITA.
Criteria and Provisions:
- The scheme will be implemented in schools, colleges, and universities across India.
- Institutions affiliated with UGC, AICTE, and other regulatory bodies will be part of the initiative.
- The scheme will focus on STEM (Science, Technology, Engineering, and Mathematics), Social Sciences, Commerce, and Humanities.
- Special emphasis on technical education in Indian languages.
- The digital books will be available on government-supported e-learning platforms like DIKSHA, e-PG Pathshala, and National Digital Library of India.
- AI-based tools will be used to facilitate translations, voice-assisted learning, and personalized study materials.
PYQ:
[2016] ‘SWAYAM’, an initiative of the Government of India, aims at:
(a) Promoting the Self Help Groups in rural areas
(b) Providing financial and technical assistance to young start-up entrepreneurs
(c) Promoting the education and health of adolescent girls
(d) Providing affordable and quality education to the citizens for free |
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Note4Students
From UPSC perspective, the following things are important :
Mains level: Ethanol Production ;
Why in the News?
The Cabinet Committee on Economic Affairs (CCEA) has approved a revision in the ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25.
What is the significance of the Price Revision?
The recent revision of the ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) is significant for several reasons:
- Price Stability and Remuneration: The increase from ₹56.58 to ₹57.97 per litre ensures price stability and provides a more remunerative rate for ethanol suppliers, which is crucial for maintaining a steady supply of ethanol.
- Support for Sugarcane Farmers: The separate payment of Goods and Services Tax (GST) and transportation charges will benefit sugarcane farmers, enhancing their income and encouraging production.
- Meeting Blending Targets: The 3% increase in the price is aimed at ensuring adequate availability of ethanol to meet the ambitious blending target of 20% by 2025-26, advancing from the original target of 2030.
- Reducing Crude Oil Dependency: This initiative is part of a broader strategy to reduce India’s dependency on crude oil imports, leading to substantial foreign exchange savings and environmental benefits.
What is Ethanol Blended Petrol (EBP)?
The Ethanol Blended Petrol (EBP) Programme is a government initiative aimed at promoting the blending of ethanol with petrol to create a more sustainable and environmentally friendly fuel option.
- OMCs are currently blending up to 20% ethanol with petrol, which helps reduce reliance on imported crude oil and lowers carbon emissions.
- Ethanol blending has dramatically increased from 38 crore litres in the Ethanol Supply Year (ESY) 2013-14 to 707 crore litres in ESY 2023-24, achieving an average blending rate of 14.60%.
- The programme has resulted in estimated savings of over ₹1,13,007 crore in foreign exchange and has substituted approximately 193 lakh metric tonnes of crude oil over the past decade.
What are other initiatives taken to promote biofuels?
- National Policy on Biofuels (2018): This policy aims to reduce dependency on fossil fuels and promote sustainable development by encouraging the production and use of biofuels from various feedstocks such as sugarcane, broken rice, and maise.
- Pradhan Mantri JI-VAN Yojana: This initiative focuses on accelerating the development of second-generation (2G) ethanol capacity in India, providing viability gap funding to support the establishment of 2G ethanol projects.
- Global Biofuels Alliance (GBA): Launched in September 2023, this alliance aims to accelerate the global adoption of cleaner fuels and support decarbonization goals. It involves collaboration with multiple countries to enhance biofuel deployment.
- Repurpose Used Cooking Oil (RUCO) Initiative: Launched by the Food Safety and Standards Authority of India (FSSAI) in 2018, this initiative aims to convert used cooking oil into biofuel, thereby preventing its reuse in food preparation and promoting sustainability.
- Biodiesel Production Targets: India has set a biodiesel blending target of 5% by 2030. The government is mobilizing production through policies that support feedstock availability, including used cooking oil and non-edible industrial oils.
- Sustainable Aviation Fuel (SAF) Initiatives: The National Biofuel Coordination Committee has established targets for blending SAF in domestic flights, aiming for 1% by 2025 and 5% by 2030.
- Ethanol Blending Advancements: The target for ethanol blending has been advanced from 2030 to 2025, with plans to achieve 20% blending. This includes signing long-term off-take agreements with dedicated ethanol plants to ensure a steady supply.
|
Way forward:
- Strengthen Feedstock Supply Chain: Enhance agricultural productivity and diversify feedstock sources including maize and non-food biomass, to ensure a stable and sustainable ethanol supply.
- Expand Infrastructure and Investments: Develop ethanol storage, blending, and distribution networks while encouraging private sector participation through financial incentives and policy support.
Prelims PYQ:
[2013] With reference to the usefulness of the by-products of the sugar industry, which of the following statements is/are correct?
- Bagasse can be used as biomass fuel for the generation of energy.
- Molasses can be used as one of the feedstocks 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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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Mutual Credit Guarantee Scheme (MCGS)
Mains level: Challenges in MSMEs;
Why in the News?
The government approved a Mutual Credit Guarantee Scheme (MCGS) for micro, small, and medium enterprises (MSMEs).
What is MCGS-MSME?
- The Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME) is a government initiative aimed at enhancing financial accessibility for micro, small, and medium enterprises in India.
What are the Provisions and Salient Features of MCGS-MSME?
- Eligibility and Loan Coverage: The MCGS-MSME is available to MSMEs with a valid Udyam Registration Number, providing loan guarantees of up to Rs 100 crore for purchasing equipment and machinery.
- Guarantee Coverage: The scheme offers 60% guarantee coverage by the National Credit Guarantee Trustee Company Limited (NCGTC) for loans sanctioned to Member Lending Institutions (MLIs).
- Project Cost Requirements: While the guaranteed loan amount is capped at Rs 100 crore, the total project cost can exceed this amount, provided that at least 75% of the project cost is allocated for equipment or machinery.
- Repayment Terms: Loans up to Rs 50 crore have a repayment period of up to 8 years, including a moratorium of up to 2 years on principal repayments. For loans above Rs 50 crore, longer repayment schedules may be considered.
- Scheme Duration and Fees: The MCGS-MSME will be in effect for four years from the issuance of operational guidelines or until cumulative guarantees of Rs 7 lakh crore are issued. The initial guarantee fee is waived for the first year, followed by a fee of 1.5% per annum for the next three years, and then reduced to 1% per annum thereafter.
What are the other steps taken to ease access to Credit for MSMEs?
In addition to the MCGS-MSME, several other measures have been implemented to facilitate easier access to credit for MSMEs:
- Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): This scheme provides collateral-free loans up to Rs 2 crore, offering up to 85% guarantee coverage, thereby reducing lender risk.
- Raising and Accelerating MSME Performance (RAMP) Program: This initiative involves an investment of Rs 6,000 crore over five years, aimed at enhancing MSME growth and performance.
- Trade Receivables Discounting System (TReDS): An online platform that enables MSMEs to receive faster payments from larger companies, improving cash flow and liquidity.
- Emergency Credit Line Guarantee Scheme (ECLGS): Introduced during COVID-19, this scheme provided a Rs 3 lakh crore relief package, offering a 100% government-backed guarantee for loans.
- Priority Sector Lending (PSL) Norms: These regulations require banks to allocate a portion of their loans specifically for MSMEs, ensuring that they receive necessary financial support.
What are the challenges faced by MSMEs in accessing finance?
- Access to Finance: One of the most significant challenges faced by MSMEs is obtaining timely and affordable financing. For example, The Bank of Baroda reported that over 50% of MSMEs in India could not access formal credit.
- Lack of Financial Knowledge: Many MSMEs lack awareness of available financial schemes and products, which restricts their ability to access funding. For example, Many business owners remain unaware of the Shishu, Kishor, and Tarun loan schemes.
|
Way forward:
- Enhanced Financial Literacy and Awareness Campaigns: There is a need for targeted outreach programs to educate MSMEs about available financial schemes, including loan products and government initiatives like Shishu, Kishor, and Tarun schemes, to ensure they are aware and can leverage them effectively.
- Streamlined Loan Processes and Collateral-Free Options: Simplifying the loan application process and expanding collateral-free loan schemes like CGTMSE, along with improving credit rating systems, will ensure quicker and easier access to funds, especially for smaller MSMEs.
Mains PYQ:
Q Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Rythu Bharosa Scheme
Why in the News?
The Telangana government has started distributing funds under the Rythu Bharosa Scheme, also known as the Farmer’s Investment Support Scheme (FISS).
About the Rythu Bharosa Scheme:
- The Rythu Bharosa Scheme, also known as the Farmer’s Investment Support Scheme (FISS), was launched by the Telangana government in 2018 to provide direct financial assistance to farmers.
- It is the first direct investment support scheme in India, where cash is transferred directly to farmers before each crop season to help them with agricultural expenses.
- Objective: To reduce financial burden, improve agricultural productivity, and prevent farmers from falling into debt traps due to high input costs.
- Provisions:
- Under the scheme, every farmer receives ₹5,000 per acre per crop season, ensuring ₹10,000 per acre annually for two crop seasons.
- The financial assistance is provided before the sowing season, allowing farmers to plan their investments efficiently.
- There is no limit on the size of landholdings, meaning both small and large farmers can benefit.
- Criteria:
- The scheme is available only to resident farmers of Telangana who own agricultural land in the state.
- Scheduled Tribe (ST) farmers cultivating land with Record of Forest Rights (ROFR) documents are eligible for assistance.
- Tenant farmers, commercial farmers, and those farming under contractual agreements are not eligible to receive benefits under this scheme.
- The funds are disbursed through bank bearer cheques under the supervision of Agriculture Extension Officers to ensure transparent distribution.
PYQ:
[2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
- Working capital for maintenance of farm assets
- Purchase of combine harvesters, tractors and mini trucks
- Consumption requirements of farm households
- Post-harvest expenses
- Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:
(a) 1, 2 and 5 only
(b) 1, 3 and 4 only
(c) 2, 3, 4 and 5 only
(d) 1, 2, 3, 4 and 5 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Unified Pension Scheme
Why in the News?
The Finance Ministry has announced the operationalization of the Unified Pension Scheme (UPS) for Central Government employees under the National Pension System (NPS), effective from April 1, 2025.
Salient features of the Unified Pension Scheme (UPS)
- Effective from April 1, 2025.
- Eligibility: Applicable to Central Government employees with at least 10 years of service.
- Assured Pension:
- 50% of average basic pay over the last 12 months before retirement for employees with 25+ years of service.
- Proportionate benefits for employees with 10–25 years of service.
- Assured Minimum Pension: ₹10,000 per month for eligible employees.
- Assured Family Pension: 60% of the pension drawn by the employee prior to their death.
- Inflation Protection:
- Pensions indexed to inflation.
- Dearness Relief (DR) linked to the All India Consumer Price Index for Industrial Workers (AICPI-IW).
- Government Contribution: Increased to 18.5% of basic pay and DA (up from 14% under NPS).
- Employee Contribution: 10% of basic pay and DA (same as NPS).
- Lump Sum Payment:
- One-tenth of last drawn pay (including DA) for every six months of completed service, in addition to gratuity.
- Choice of Scheme: Employees can choose between UPS and NPS starting from the upcoming financial year, with the choice being final once made.
- Beneficiaries: Initially benefits 23 lakh Central Government employees, with potential extension to 90 lakh employees if adopted by state governments.
Differences between UPS, NPS and OPS (Old Pension Scheme)
|
Unified Pension Scheme (UPS) |
National Pension Scheme (NPS) |
Old Pension Scheme (OPS) |
| Pension Amount |
50% of average basic pay over last 12 months; proportional for service <25 years. |
Market-linked, dependent on contributions and market performance. |
50% of last drawn salary, increases with DA hikes. |
| Family Pension |
60% of employee’s pension after their death. |
Based on accumulated corpus and annuity plans. |
Continued benefits to family after retiree’s death. |
| Employee Contribution |
10% of basic salary. |
10% of basic salary. |
None; entirely government-funded. |
| Government Contribution |
18.5% of basic salary. |
14% of basic salary. |
Entire cost borne by the government. |
| Inflation Indexation |
Linked to AICPI-IW. |
Not applicable (market-linked returns). |
Indexed; pension increases with DA hikes. |
PYQ:
[2017] Who among the following can join the National Pension System (NPS)?
(a) Resident Indian citizens only
(b) Persons of age from 21 to 55 only
(c) All State Government employees joining the services after the date of notification by the respective State Governments
(d) All Central Government employees including those of Armed Forces joining the services on or after 1st April, 2004 |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Sukanya Samriddhi Yojana
Why in the News?
Sukanya Samriddhi Yojana (SSY) has completed 10 years on January 22, 2025. As of November 2024, over 4.1 crore SSY accounts have been opened, highlighting the scheme’s success and its role in fostering inclusivity and progress.
About Sukanya Samriddhi Yojana (SSY):
- Launched on January 22, 2015, under Beti Bachao, Beti Padhao Campaign.
- It is a small deposit scheme by the Ministry of Finance for a girl child
- Over 4.1 crore accounts opened as of November 2024.
- Aims and Objectives:
- To meet the education and marriage expenses of a girl child.
- Promote financial independence and secure futures for girl children.
Criteria and Provisions:
- Eligibility: For girl children under 10 years; max 2 accounts per family (exceptions for twins/triplets).
- Deposits: Minimum: ₹250; Maximum: ₹1.5 lakh annually; deposits for 15 years.
- Withdrawals:
- Partial: Up to 50% after age 18 or completion of 10th standard for education.
- Full: Allowed for marriage (minimum age 18).
- Interest Calculation: Monthly on the lowest balance; credited annually.
- Premature Closure: Allowed for medical emergencies or death of guardian.
- Interest: ate of interest 9.2% Per Annum (wef 1-4-2015), calculated on yearly basis, yearly compounded.
- Tax Benefits: Quarterly rates compounded annually; investments and returns are tax-free under Section 80C.
Structural Mandate and Implementation
- Managed by guardian till age 18; account matures in 21 years.
- Can be opened/transferred at post offices or banks.
- Early closure for marriage requires proof of age and marriage documents.
PYQ:
[2014] What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas?
- It enables the beneficiaries to draw their subsidies and social security benefits in their villages.
- It enables the beneficiaries in the rural areas to make deposits and withdrawals.
Select the correct answer using the code given below:
(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: Diamond Imprest Authorization (DIA) Scheme
Why in the News?
The Department of Commerce under the Ministry of Commerce and Industry has launched the Diamond Imprest Authorization (DIA) Scheme to bolster the global competitiveness of India’s diamond sector.
About the Diamond Imprest Authorization (DIA) Scheme
- The DIA Scheme permits duty-free import of natural cut and polished diamonds for export purposes.
- It mandates an export obligation with a value addition of 10%.
- Objective: To retain India’s leadership in the global diamond industry value chain by facilitating ease of doing business.
- It will be implemented starting April 1, 2025.
- Features of the Scheme:
- Duty-Free Import: Allows duty-free import of natural cut and polished diamonds of less than ¼ Carat (25 Cents).
- Export Obligation: Requires a minimum 10% value addition to ensure beneficiation.
- Eligibility: Open to Two Star Export Houses and above; Exporters with annual exports of at least USD 15 million are eligible.
- Support for MSMEs: Provides a level playing field for smaller exporters, enabling them to compete with larger players.
- Global Beneficiation Practices: Inspired by beneficiation policies in diamond-mining countries like Botswana, Namibia, and Angola, where manufacturers must establish cutting and polishing facilities.
India’s Diamond Industry: Current Status
- India processes over 90% of the world’s diamonds and provides jobs to approximately 5 million people.
- India contributes 19% of total global diamond exports.
Challenges:
- Exports Decline:
- 2022: Exports valued at $23 billion.
- 2023: Declined to $16 billion, with further declines anticipated.
- Rough Diamond Imports: Fell by 24.5%, from $18.5 billion (FY 2021-22) to $14 billion (FY 2023-24).
- Exports of Cut and Polished Diamonds: Dropped by 34.6%, from $24.4 billion (FY 2022) to $13.1 billion (FY 2024).
- Inventory Challenges: The gap between net imports of rough diamonds and net exports of cut and polished diamonds widened from $1.6 billion (FY 2022) to $4.4 billion (FY 2024).
- Returns of Unsold Diamonds: The percentage of unsold diamonds returned to India rose from 35% to 45.6% between FY 2022 and FY 2024.
|
PYQ:
[2018] Which one of the following foreign travellers elaborately discussed about diamonds and diamond mines of India?
(a) Francois Bernier
(b) Jean-Baptiste Tavernier
(c) Jean de Thevenot
(d) Abbe Barthelemy Carre |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: IGICB Scheme, NIXI
Why in the News?
The National Internet Exchange of India (NIXI) has introduced the Internet Governance Internship and Capacity Building Scheme, aiming to enhance awareness and develop expertise in Internet Governance (IG) among Indian citizens.
About Internet Governance Internship and Capacity Building (IGICB) Scheme:
|
Details |
| About the Scheme |
- Launched by National Internet Exchange of India (NIXI) under MeitY.
- Aims to build expertise in Internet Governance (IG) and enable global participation.
Aims and Objectives:
- Develop Expertise: Build Indian talent in Internet Governance.
- Enhance Global Participation: Collaborate with organisations like ICANN, ISOC, and IETF.
- Promote Digital Inclusivity: Ensure India’s representation in global forums.
- Foster Leadership: Shape future tech policy leaders.
|
| Structural Mandate |
- Tracks: Six-month and three-month internship programs.
- Mentorship: Guided by experts from ICANN, APNIC, and academic advisors.
- Support Mechanism: Stipend of ₹20,000/month and support for outreach programs.
- Online Portal: Applications via NIXI Scheme Portal, with biometric verification.
|
| Features of the Scheme |
- Global Exposure: Collaboration with leading organisations like ICANN, ISOC, and IEEE.
- Capacity Building: Focus on cybersecurity, Internet Governance, and digital policy.
- Mentorship: Hands-on guidance by seasoned professionals.
- Youth Engagement: Attracts young talent passionate about Internet Governance.
- Policy Impact: Strengthens India’s voice in global Internet Governance forums.
|
What is National Internet Exchange of India (NIXI)?
- Establishment: Founded on June 19, 2003, under the Ministry of Electronics and Information Technology (MeitY).
- Purpose: A not-for-profit organisation facilitating increased internet penetration and adoption across India.
- Key Services:
- Internet Exchange Points (IXPs): Builds infrastructure for internet exchange points.
- .IN Registry: Promotes .in domain digital identity.
- IRINN: Facilitates adoption of IPv4 and IPv6 addresses.
|
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Startup India Initiative
Why in the News?
On January 16 (National Startup Day), 2025, India marks 9 successful years of Startup India, a flagship initiative that has revolutionized the entrepreneurial ecosystem in the country.
About the Startup India Initiative
- Startup India is a flagship initiative launched by the Government of India on January 16, 2016, to create a robust ecosystem for nurturing startups and innovation.
- It aims to drive economic growth and generate large-scale employment opportunities, with a focus on empowering entrepreneurs through innovation and regulatory support.
- The PM first announced the initiative on August 15, 2015, during his Independence Day address at Red Fort, New Delhi.
- The program aims to establish 75+ startup hubs across India and encourages entrepreneurship in Tier-2 and Tier-3 cities.
- A related scheme, Stand-Up India, was launched on April 5, 2016, to facilitate loans between ₹10 lakh to ₹1 crore for SCs, STs and women entrepreneurs to establish Greenfield enterprises.
- The program emphasizes the 3 Cs—Capital, Courage, and Connections, which Prime Minister Modi identifies as essential for entrepreneurial success.
- It seeks to eliminate restrictive policies, including those related to License Raj, foreign investment proposals, and land permissions, ensuring ease of doing business.
Definition of a Startup (as per DPIIT)
- A startup must be registered as a private limited company, partnership firm, or limited liability partnership (LLP) in India.
- The entity must not have completed 10 years since its incorporation.
- Annual turnover should not exceed ₹100 crore in any financial year since incorporation.
- The startup should focus on innovative products or services and demonstrate scalability, potential for wealth creation, or employment generation.
- Entities formed through splitting or restructuring of existing businesses are not classified as startups.
- Startup related terminologies analogously used in India:
- Unicorn: A startup valued at over $1 billion.
- Decacorn: A startup valued at over $10 billion.
- Hectocorn: A startup valued at over $100 billion.
- Soonicorn: A rapidly growing startup expected to become a unicorn soon.
- Mincorn: A startup valued at less than $1 billion.
|
Key Achievements of Startup India
- India is the third-largest startup hub globally, following the United States and China.
- DPIIT-recognized startups grew from 500 in 2016 to 1,59,157 by January 2025.
- Women-led startups accounted for 73,151 entities as of October 2024, with 48% of startups having at least one woman director by December 2023.
- Startups have generated 16.6 lakh direct jobs from 2016 to October 2024.
- Over 50% of startups originated from Tier-2 and Tier-3 cities, including emerging hubs like Indore, Jaipur, and Ahmedabad.
Key Government Initiatives for Startups:
- Startup India Seed Fund Scheme (SISFS), 2021: Provides financial assistance to early-stage startups for proof of concept, prototype development, product trials, market entry, and commercialization.
- Total allocated amount: ₹945 crore for startups over a four-year period.
- Credit Guarantee Scheme for Startups (CGSS), 2022: Offers collateral-free loans to startups through Scheduled Commercial Banks, NBFCs, and SEBI-registered AIFs.
- Covers loans up to ₹10 crore for eligible startups.
- Fund of Funds for Startups (FFS), 2016: Established with a ₹10,000 crore corpus to provide funding support to startups through SEBI-registered Venture Capital Funds.
- By 2024, ₹7,980 crore was committed to 99 Alternative Investment Funds (AIFs), benefiting over 800 startups.
- BHASKAR (Bharat Startup Knowledge Access Registry), 2024: A centralized platform aimed at streamlining interactions within India’s entrepreneurial ecosystem.
- Fosters innovation, collaboration, and startup growth through knowledge-sharing and networking.
- Startup Village Entrepreneurship Program (SVEP): A sub-component of the National Rural Livelihood Mission (NRLM), implemented by the Ministry of Rural Development.
- Supported 3,02,825 enterprises as of 2024, creating 6,26,848 jobs.
- TIDE 2.0 (Technology Incubation and Development of Entrepreneurs): Focuses on supporting startups in emerging technologies like AI, IoT, and Blockchain.
- Established 51 incubators and supported 1,235 startups.
- GENESIS (Gen-Next Support for Innovative Startups), 2024: Aims to boost startups in Tier-II and Tier-III cities.
- Total outlay: ₹490 crore over five years, targeting over 1,500 startups.
- Atal Innovation Mission (AIM): Operates under NITI Aayog to foster innovation and entrepreneurship through the establishment of Atal Incubation Centers (AICs).
- Provides physical infrastructure and mentorship for startups to scale effectively.
- Startup Mahakumbh: A flagship event organized to bring together startups, unicorns, investors, and industry leaders.
- First edition in 2019 saw over 500 participants; the fifth edition is scheduled for March 7-8, 2025, in New Delhi.
PYQ:
[2014] What does venture capital mean?
(a) A short-term capital provided to industries
(b) A long-term start-up capital provided to new entrepreneurs
(c) Funds provided to industries at times of incurring losses
(d) Funds provided for replacement and renovation of industries |
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: PLI Scheme 1.1
Why in the News?
Union Minister for Steel and Heavy Industries has inaugurated the second round of the Production Linked Incentive (PLI) Scheme for Specialty Steel, termed PLI Scheme 1.1.
About the PLI Scheme 1.1
- It is built upon the earlier round of the PLI scheme to enhance domestic manufacturing of high-value steel, reduce imports, and boost India’s global steel market position.
- 5 specialty steel categories are considered:
- Coated/Plated Steel Products for appliances, construction, and automotive sectors.
- High Strength/Wear-Resistant Steel for infrastructure, mining, and heavy machinery.
- Specialty Rails for railways and metros.
- Alloy Steel Products and Steel Wires for industrial uses.
- Electrical Steel (CRGO and others): Cold-Rolled Grain-Oriented Steel, essential for power transformers and electrical applications.
- It covers production from FY 2025-26 to FY 2029-30 and operates within the original budget of ₹6,322 crore.
- Changes introduced in PLI Scheme 1.1:
-
- Investment and capacity thresholds reduced:
- For CRGO Steel: Investment threshold lowered to ₹3,000 crore; capacity threshold to 50,000 tonnes.
- Encourages CRGO production as a strategic priority under Atmanirbharta.
- Carry-forward provision: Excess production in one year can offset shortfalls in another, ensuring optimal incentive distribution.
- Companies investing in capacity augmentation can participate; thresholds reduced to 50% of original requirements.
- Simplified guidelines: Revised to improve accessibility and encourage industry participation.
Bakc2Basics: PLI Schemes 1.0 and 2.0
PLI Scheme 1.0
- Launched in March 2020, it aimed to boost domestic manufacturing, reduce imports, and create jobs in key sectors.
- Initially focused on three industries (mobile manufacturing, electrical components, and medical devices) but later expanded to 14 sectors, including electronics, pharmaceuticals, and textiles.
- Provided 1%–4% incentives on incremental sales over the base year, with a ₹7,350 crore outlay for IT hardware.
- Had an estimated investment target of ₹2,500 crore (IT hardware) but did not specify details on job creation.
- Served as a cornerstone for Atmanirbhar Bharat, promoting self-reliance and innovation in India’s manufacturing ecosystem.
PLI Scheme 2.0
- Launched in May 2023, it specifically focuses on IT hardware (laptops, tablets, servers, PCs) to enhance global competitiveness.
- Comes with a higher budget of ₹17,000 crore (for IT hardware) over a 6-year duration.
- Incentivizes local manufacturing with ~5% incentives on incremental sales, alongside additional benefits for components like memory modules and SSDs.
- Targets ₹2,430 crore in investment, ₹3.35 lakh crore in production, and $12–17 billion in exports by 2025–26.
- Seeks to create 75,000 direct jobs and up to 2 lakh indirect jobs, offering different incentive caps for global, hybrid, and domestic companies.
|
PYQ:
[2023] Consider, the following statements:
Statement-I: India accounts for 3.2% of global export of goods.
Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.
Which one of the following is correct in respect of the above statements?
(a) Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I
(b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I
(c) Statement-I is correct but Statement-II is incorrect
(d) Statement-I is incorrect but Statement-II is correct |
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|
PLI 1.0
|
PLI 2.0
|
| Launch Year |
March 2020 |
May 2023 |
| Objective |
Promote domestic manufacturing, reduce imports, create jobs |
Enhance IT hardware manufacturing, increase global competitiveness |
| Budget |
₹7,350 crore (for IT hardware) |
₹17,000 crore (for IT hardware) |
| Duration |
4 years |
6 years |
| Incentive Structure |
1% – 4% of incremental sales over the base year |
~5% of incremental sales over six years |
| Sectors Covered |
- Initially focused on 3 sectors: Mobile manufacturing, electrical components, and medical devices.
- Later expanded to 14 sectors, including: Specified electronic components, critical key starting materials (pharma), auto components, pharma drugs, specialty steel, telecom and networking, electronics/technology products, white goods (ACs, LEDs), food products, textiles (MMF/technical textiles), high-efficiency solar PV modules, advanced chemistry cell (ACC) batteries, drones
|
Primarily IT hardware (laptops, tablets, servers, PCs) |
| Component Incentives |
No additional incentives for specific components |
Additional incentives for local component manufacturing (e.g., memory modules, SSDs) |
| Expected Investment |
₹2,500 crore (estimated) |
₹2,430 crore (estimated) |
| Employment Generation |
Not specified in detail |
75,000 direct jobs, up to 2 lakh indirect jobs |
| Production and Export Targets |
Not explicitly stated |
₹3.35 lakh crore production; $12-17 billion exports by 2025-26 |
| Eligibility and Caps |
Domestic companies with minimum investment of ₹20 crore |
Global, hybrid, and domestic companies with caps (₹4,500 crore for global, ₹2,250 crore for hybrid, ₹500 crore for domestic) |
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