Schemes | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Note4Students
From UPSC perspective, the following things are important :
Prelims level: PM E-Drive Scheme
Why in the News?
The Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) Scheme with an outlay of ₹10,900 crore over two years.
About PM E-DRIVE Scheme:
Details
Name
PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme
Total Outlay
₹10,900 crore for two years
Goal
Promote electric mobility, reduce pollution, and enhance fuel security
Reduce range anxiety by providing charging infrastructure in cities and highways.
Incentives
Direct subsidies for e-2Ws, e-3Ws, e-buses, e-ambulances, and e-trucks
Key Components
₹3,679 crore for demand incentives for e-2Ws, e-3Ws, e-ambulances, and e-trucks.
₹500 crore for e-ambulances.
₹4,391 crore for e-buses.
Other components:
E-Vouchers
Aadhaar-authenticated e-voucher for EV buyers;
Signed by both buyer and dealer for claiming incentives.
E-Bus Procurement
₹4,391 crore for 14,028 e-buses in 9 major cities (Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, Hyderabad)
Charging Infrastructure
₹2,000 crore for 72,300 public EV charging stations, including fast chargers for e-4Ws, e-buses, e-2Ws, and e-3Ws
Incentivizing E-Trucks
₹500 crore tied to scrapping certificates from MoRTH-approved scrapping centres
Testing and Upgradation
₹780 crore for upgradation of MHI’s test agencies for green mobility technologies
PYQ:
[2019] How is efficient and affordable urban mass transport key to the rapid economic development in India?
From UPSC perspective, the following things are important :
Prelims level: All phases of PMGSY
Why in the News?
The Union Cabinet has approved Phase IV of the Pradhan Mantri Gram Sadak Yojana (PMGSY-IV) to build 62,500 km of all-weather roads, connecting villages across India.
AboutPradhan Mantri Gram Sadak Yojana (PMGSY)
Details
Launch
In 2000 by former PM Late Atal Bihari Vajpayee.
To provide connectivity to unconnected habitations.
Nodal Agency
Ministry of Rural Development
Type
Centrally Sponsored Scheme
Phases
Phase I: Focus on connecting unconnected habitations.
Phase II: Upgrading roads built in Phase I to enhance rural infrastructure.
Phase III: Consolidation of 1.25 lakh km of rural roads connecting habitations to Gramin Agricultural Markets, Higher Secondary Schools, and Hospitals. Cost: ₹80,250 crore (2019-2025). Funding: 60:40 (Centre), 90:10 for North-East and Himalayan States.
Phase IV: Aims at constructing 62,500 km of all-weather roads to provide connectivity to 25,000 unconnected habitations with focus on Left-Wing Extremism (LWE) areas, tribal areas, and remote regions.
Road Length and Coverage
62,500 km of all-weather roads covering 25,000 unconnected habitations.
Benefits of PMGSY-IV
Road Connectivity for 25,000 Villages:All-weather roads will provide reliable access to previously unconnected rural habitations, improving transportation and accessibility.
Socio-Economic Transformation: These roads will act as catalysts for socio-economic development in rural areas, enabling access to government educational institutions, health services, markets, and growth centers.
Enhanced Infrastructure: The construction will adopt international benchmarks and best practices, such as using Cold Mix Technology, Waste Plastic, Full Depth Reclamation, and materials like Fly Ash and Steel Slag, contributing to eco-friendly construction.
PYQ:
[2020] In rural road construction, the use of which of the following is preferred for ensuring environmental sustainability or to reduce carbon footprint?
Copper slag
Cold mix asphalt technology
Geotextiles
Hot mix asphalt technology
Portland cement
Select the correct answer using the code given below:
From UPSC perspective, the following things are important :
Prelims level: Agricultural Infrastructure Fund (AIF) Scheme
Why in the News?
The Union Cabinet has approved the expansion of the Agricultural Infrastructure Fund (AIF) scheme.
It will now include financial support for Farmers’ Producers Organizations (FPOs) to enhance their financial security and creditworthiness.
About Agriculture Infrastructure Fund (AIF) Scheme:
Details
Launch
July 2020, Central Sector Scheme
Nodal Ministry
Ministry of Agriculture and Farmers Welfare, Government of India
Fund Allocation
Rs. 1 lakh crore, with disbursements planned until 2025-26; interest subvention and credit guarantee assistance extended till 2032-33.
Aim
To mobilize medium to long-term debt financing for investment in viable projects relating to post-harvest management infrastructure and community farming assets, to enhance agricultural infrastructure in India.
Key Features
– Interest Subvention: 3% on loans up to Rs. 2 crore, with additional rate reductions for NABARD loans for PACS.
– Credit Guarantees: Under the CGTMSE scheme for loans up to Rs. 2 crore.
– Fund Usage: Supports up to 25 projects per beneficiary across different locations.
Target Beneficiaries
Farmers, Farmer Producer Organizations (FPOs), Primary Agricultural Credit Societies (PACS), entrepreneurs, startups, Self Help Groups, Agricultural Produce Market Committees, and federations.
Management
Managed through an online MIS platform with national, state, and district level monitoring committees for real-time monitoring and feedback.
Lending Institutions
Includes 24 commercial banks, 40 cooperative banks, and NABARD among others.
Hassle-Free Process
Supported by a user-friendly online portal to facilitate speedy loan sanctions.
Key changes introduced:
Description
Support for FPOs
Includes financial support for Farmers’ Producers Organizations (FPOs) to improve financial security and creditworthiness.
Broader Eligible Projects
Expand the scope to cover more types of agricultural infrastructure projects.
Community Farming Assets
Allows the creation of community farming assets to enhance productivity and sustainability.
Integrated Processing Projects
Adds integrated primary and secondary processing projects as eligible activities; standalone secondary projects remain under MoFPI schemes.
Alignment with PM-KUSUM
Converges AIF with PM-KUSUM Component-A for joint development of agricultural infrastructure and clean energy solutions.
Extended Credit Guarantee
Extends credit guarantee coverage to FPOs through NABSanrakshan, in addition to CGTMSE, to boost investment confidence.
PYQ:
[2015] With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?
1. It is an organ of NITI Aayog.
2. It has a corpus of 4,00,000 crore at present.
Select the correct answer using the codes given below:
From UPSC perspective, the following things are important :
Prelims level: Pradhan Mantri Jan Dhan Yojana (PMJDY)
Why in the News?
PM Modi launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) on 28th August 2014. It has now completed a decade of successful implementation.
About PMJDY
Details
Objective
• Banking the Unbanked: Open basic savings bank deposit (BSBD) accounts with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges.
• Securing the Unsecured: Issue Indigenous Debit cards with free accident insurance coverage of ₹2 lakh.
• Funding the Unfunded: Provide micro-insurance, overdraft, micro-pension, and micro-credit facilities.
Initial Features
• Universal Access to Banking Services: Access through branches and BCs.
• Basic Savings Bank Accounts: With an overdraft facility of up to ₹10,000 for every eligible adult.
• Financial Literacy Program: Promote savings and credit usage.
• Insurance: Accident cover up to ₹1 lakh and life cover of ₹30,000 for accounts opened between Aug 2014 to Jan 2015.
• Pension Scheme: For the unorganized sector.
• Creation of Credit Guarantee Fund.
Key Provisions
• Inter-operability: Through RuPay debit card or Aadhaar-enabled Payment System (AePS).
• Fixed-point Business Correspondents.
• Simplified KYC / e-KYC.
Extension and New Features (Post-2018)
• Focus Shift: From ‘Every Household’ to ‘Every Unbanked Adult’.
• RuPay Card Insurance: Increased accidental insurance cover to ₹2 lakh for new accounts.
• Overdraft Facilities Enhanced: Limit doubled from ₹5,000 to ₹10,000; up to ₹2,000 without conditions.
• Increase in upper age limit for OD: From 60 to 65 years.
Eligibility for Other Programs
PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY).
Successes of PMJDY
Financial Inclusion: PMJDY is recognized as the largest financial inclusion initiative globally, with over 53 crore bank accounts opened as of August 2024.
It has facilitated access to credit for individuals without a formal financial history, as evidenced by the rise in Mudra loan sanctions at a compounded annual rate of 9.8% from FY 2019 to FY 2024.
Social Empowerment: 55.6% of Jan Dhan account holders are women, and 66.6% of accounts are in rural and semi-urban areas, demonstrating the program’s reach among marginalized communities.
Deposit Growth: The total deposits in PMJDY accounts have reached Rs. 2.31 lakh crore, showing a 15-fold increase since August 2015.
Digital Transaction Growth: Digital transactions under PMJDY have surged, with UPI financial transactions growing from 535 crore in FY 2018-19 to 13,113 crore in FY 2023-24.
Effective DBT Mechanism: The Jan-Dhan Aadhaar Mobile (JAM) trinity has enabled a diversion-proof subsidy delivery mechanism, with subsidies and social benefits directly transferred into the bank accounts of the underprivileged.
Savings and Financial Discipline: The average deposit in the PMJDY account has increased 4 times since August 2015, indicating improved saving habits among account holders.
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.
[2016] Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.
From UPSC perspective, the following things are important :
Prelims level: Unified Pension Scheme (UPS)
Why in the News?
The Union Cabinet approved the Unified Pension Scheme (UPS) for 23 lakh central government employees.
About Unified Pension Scheme (UPS):
Explanation
Implementation Date
Effective from April 1, 2025.
Eligibility
Central government employees with at least 10 years of service.
Assured Pension
50% of average basic pay over the last 12 months prior to retirement for employees with 25+ years of service.
Proportionate benefits for 10-25 years of service.
Assured Minimum Pension
₹10,000 per month for employees with at least 10 years of service.
Assured Family Pension
60% of the pension that the employee was drawing before their death.
Inflation Protection
Pensions indexed to inflation;
Dearness Relief (DR) based on the All India Consumer Price Index for Industrial Workers (AICPI-IW).
Government Contribution
18.5% of basic pay and DA, increased from 14% under the National Pension System (NPS).
Employee Contribution
10% of basic pay and DA (same as under NPS).
Lump Sum Payment on Superannuation
One-tenth of the last drawn monthly pay (including DA) for every 6 months of completed service, in addition to gratuity.
Option to Choose
Employees can choose between UPS and NPS starting from the upcoming financial year; the choice is final once made.
Beneficiaries
Initially benefits 23 lakh central government employees;
May extend to 90 lakh if adopted by state governments.
Difference from NPS
Unlike the market-dependent NPS, UPS provides a guaranteed pension amount, a minimum pension, increased government contribution, fixed family pension, and a lump sum payment at superannuation.
Significance of the UPS
Financial Security: Guarantees a pension and family pension for stable post-retirement income.
Minimum Pension: Ensures at least ₹10,000 per month for retirees, supporting lower-income employees.
Inflation Protection: Indexes pensions to inflation, maintaining purchasing power over time.
Increased Benefits: Raises government contribution to 18.5%, enhancing employee retirement benefits.
Flexibility: Allows choice between UPS and NPS based on personal financial needs.
Family Support: Provides 60% of the pension to the spouse if the employee passes away.
Employee Welfare: Aligns with government goals to improve employee welfare and post-retirement life quality.
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.
From UPSC perspective, the following things are important :
Prelims level: REACHOUT Scheme
Why in the News?
The Indian student team, supported by the REACHOUT (Research, Education, Training and Outreach) scheme, achieved remarkable success at the 17th edition of the International Earth Sciences Olympiad (IESO) held in Beijing, China.
The scheme aims to enhance the understanding and dissemination of Earth system sciences through research, education, and outreach activities.
About the International Earth Sciences Olympiad (IESO)
The IESO was established in 2003 during the International Geoscience Education Organization Council Meeting in Calgary, Canada.
The competition focuses on promoting interest in earth system sciences, particularly in addressing climate change, environmental challenges, and natural disasters.
India’s Participation:
India has participated in the IESO since 2007 and hosted the 10th edition in Mysore.
The Indian National Earth Science Olympiad (INESO) serves as a national-level prelude to the IESO, held across schools in India.
Top-performing students from INESO represent India at the IESO, with support from MoES and the Geological Society of India.
PYQ:
[2019] Atal Innovation Mission is set up under the
(a) Department of Science and Technology
(b) Ministry of Labour and Employment
(c) NITI Aayog
(d) Ministry of Skill Development and Entrepreneurship
From UPSC perspective, the following things are important :
Prelims level: Model Solar Village
Why in the news?
The Ministry of New and Renewable Energy has issued operational guidelines for the Implementation of ‘Model Solar Village’ under PM-Surya Ghar Muft Bijli Yojana.
The centre recently allocated ₹800 crore for the same.
About PM Surya Ghar Muft Bijli Yojana
Description
Purpose
To provide 300 units of free electricity per month to beneficiaries through an investment of ₹75,000 crores.
Deadline
Extended the deadline from 2022 to 2026.
Announcement
Initially announced in an Interim Budget 2024-25 speech by the Finance Minister.
Target
Aimed to light up 1 crore households.
Implementation
Urban Local Bodies and Panchayats are incentivised to promote rooftop solar systems.
Financial Support
Average Monthly Electricity Consumption (units)
Suitable Rooftop Solar Plant Capacity
Subsidy Support
0-150
1-2 kW
₹ 30,000 to ₹ 60,000
150-300
2-3 kW
₹ 60,000 to ₹ 78,000
> 300
Above 3 kW
₹ 78,000
Features of the ‘Model Solar Village’ Initiative:
Details
Comprehensive Solarization
Solarize all households and public areas with home lighting, water systems, pumps, and streetlights.
Seeks to create one Model Solar Village per district.
Implementing Agency
State Renewable Energy Development Agency (SREDA) or another entity nominated by the State/UT Government will implement the scheme.
24×7 Solar-Powered Village
Develop villages powered entirely by solar energy, promoting self-reliance in meeting energy needs.
Central Financial Assistance (CFA)
₹1 crore grant per village based on a Detailed Project Report (DPR) by the Implementing Agency.
The total financial allocation for this initiative is ₹800 crore.
Eligibility Criteria
Revenue village with a population over 5,000 (or 2,000 in special category states).
Based on installed renewable energy capacity, overseen by the District Level Committee (DLC) 6 months after the declaration.
Fund Disbursement
40% on the award of works, 40% after completion, 20% after 6 months of operation.
PYQ:
[2018] With reference to solar power production in India, consider the following statements:
1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.
2. The solar power tariffs are determined by the Solar Energy Corporation of India.
Which of the statements given above is/are correct?
From UPSC perspective, the following things are important :
Prelims level: Nandini Sahakar Yojana
Why in the News?
The Minister of Cooperation has provided some information about the Nandini Sahakar Yojana.
NCDC has cumulatively disbursed financial assistance amounting to Rs. 6426.36 crore for the development of cooperative societies exclusively promoted by women across the country.
About Nandini Sahakar Yojana
The Nandini Sahakar Scheme was initiated by the National Cooperative Development Corporation (NCDC) in 2010.
It is a women-focused framework providing financial assistance, project formulation, hand-holding, and capacity development.
The scheme aims to assist women cooperatives in undertaking business model-based activities under the purview of NCDC.
Features of the Scheme
Any cooperative society with at least 50% womenas primary members and a minimum of three months in operation is eligible to apply.
Assistance is provided in the form of credit linkage for infrastructure term loans and working capital, along with subsidies or interest subvention from other government schemes.
There is no minimum or maximum limit on financial assistance for projects by women cooperatives.
NCDC offers a 2% interest subventionon its rate of interest on term loans for new and innovative activities.
A 1% interest subvention is provided on term loans for all other activities, resulting in lower borrowing costs for women cooperatives.
From UPSC perspective, the following things are important :
Prelims level: CIL ASHIS Scheme; CSR Initiatives
Why in the News?
Coal India Limited (CIL) has launched a CSR initiative named CIL ASHIS to provide scholarships to children who lost their parents to COVID-19 and were unable to continue their studies.
What is CIL ASHIS Scheme?
The CIL ASHIS Scheme, launched by Coal India Limited (CIL), stands for Ayushman Shiksha Sahayata.
The scheme aims to provide financial support for the education of children who lost their parents to COVID-19, ensuring they can continue their studies and achieve their dreams.
Features of the CIL ASHIS Scheme
Each eligible child receives a scholarship worth ₹45,000 per year.
The scholarship is provided for a period of 4 years.
The scheme targets 1,645 children who have been identified as needing assistance.
Compassionate Appointment for:
Dependents of CIL employees who lost their lives while in service.
Beneficiaries need to apply for compassionate appointments through CIL’s established procedures.
PYQ:
[2024] With reference to Corporate Social Responsibility (CSR) rules in India, consider the following statements:
CSR rules specify that expenditures that benefit the company directly or its employees will not be considered as CSR activities.
CSR rules do not specify minimum spending on CSR activities.
Which of the statements given above is/are correct?
From UPSC perspective, the following things are important :
Prelims level: Features of the Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA)
Why in the News?
An Extended Pradhan Mantri Surakshit Matritva Abhiyan (E-PMSMA) strategy was launched to ensure quality Antenatal Care (ANC) for pregnant women.
The strategy focuses on individual tracking of high-risk pregnancies (HRP) and provision of additionalPMSMA sessions beyond the 9th of every month.
AboutHigh-Risk Pregnancy:
A high-risk pregnancy involves greater risk of health complications for the mother, the foetus, or both, due to pre-existing medical conditions, conditions that develop during pregnancy, or foetal issues.
Common Factors:
Maternal Health Conditions: Pre-existing diabetes, hypertension, HIV, kidney disease, or conditions arising during pregnancy like gestational diabetes and preeclampsia.
Obstetric Factors: Previous caesarean section, history of preterm labor, multiple pregnancies, and congenital malformations.
About Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA)
Details
About
An initiative to provide quality antenatal care (ANC) to all pregnant women.
Launch
October 2016
Target Group
All pregnant women, especially those in their second and third trimesters.
Frequency
Services provided on the 9th of every month at government health facilities.
Objective
Ensure safe motherhood by providing comprehensive and quality antenatal care universally.
Key Functions
General Check-Up: Physical and clinical examinations by medical professionals.
Laboratory Investigations: Routine blood tests, urine tests, and other necessary laboratory investigations.
Ultrasound: Ultrasound examination to monitor foetal growth and development.
Counseling: Nutritional and lifestyle counseling to ensure a healthy pregnancy.
High-Risk Identification: Screening and identification of high-risk pregnancies and appropriate referrals for specialized care.
Key Features
Free of Cost: All services under PMSMA are provided free of cost.
Fixed Day ANC Services: Antenatal care services are provided on a fixed day every month.
Lab Investigations: Basic investigations like Hb, urine albumin, RBS, malaria test, VDRL test, blood grouping, CBC, ESR, and USG.
Public-Private Partnership: Encourages participation of private sector healthcare providers in providing ANC services.
Incentives: Incentives for healthcare providers who participate in the program.
Categorization of Pregnant Women
Green Sticker – for women with no risk factor detected
Red Sticker – for women with high risk pregnancy
BlueSticker – for women with Pregnancy Induced Hypertension
YellowSticker – pregnancy with co-morbid conditions such as diabetes, hypothyroidism, STIs
Benefits
Improved Maternal Health: Regular and comprehensive ANC helps in early detection and management of complications, improving maternal health outcomes.
Reduced Mortality Rates: Timely and quality care reduces maternal and infant mortality rates.
Health Education: Provides health education and counseling to pregnant women, promoting better health practices.
High-Risk Management: Identifies and manages high-risk pregnancies effectively, ensuring specialized care for those who need it.
PYQ:
[2024] With reference to the ‘Pradhan Mantri Surakshit Matritva Abhiyan’, consider the following statements:
1. This scheme guarantees a minimum package of antenatal care services to women in their second and third trimesters of pregnancy and six months post-delivery health care service in any government health facility.
2. Under this scheme, private sector health care providers of certain specialities can volunteer to provide services at nearby government health facilities.
Which of the statements given above is/are correct?
From UPSC perspective, the following things are important :
Prelims level: SGB Scheme
Why in the News?
Recent reports suggest that the government might reduce or discontinue the Sovereign Gold Bond (SGB) scheme due to its high cost.
Decline in Popularity of SGB:
This speculation follows the Union budget’s decision to slash customs duties on gold and silver from 15% to 6%.
The reduction in customs duties is expected to decrease demand for SGBs, which has already led to a 2-5% drop in their prices on the National Stock Exchange (NSE).
About Sovereign Gold Bonds (SGBs)
Details
Launch
2015
Nature
Government securities denominated in grams of gold.
Issued by RBI.
Objective
Reduce dependence on gold imports and shift savings from physical gold to paper form.
Eligibility
Resident in India, including individuals, HUFs, trusts, universities, and charitable institutions.
Denomination and Tenor
Denominated in multiples of grams of gold, with a basic unit of 1 gram.
Tenor of 8 years with an exit option from the 5th year on interest payment dates.
Investment Limits
Minimum: 1 gram of gold.
Maximum: 4 kg for individuals and HUFs,
20 kg for trusts and similar entities per fiscal year.
Benefits
Quantity of gold protected, receiving market price at redemption.
Eliminates storage risks and costs.
Assured market value at maturity and periodic interest.
Free from making charges and purity issues.
Held in RBI books or demat form, eliminating scrip loss risk.
Add-ons
Can be used as collateral for loans.
Loan-to-value (LTV) ratio set equal to ordinary gold loans.
PYQ:
[2016] What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?
To bring the idle gold lying with Indian households into the economy
To promote FDI in the gold and jewellery sector
To reduce India’s dependence on gold imports
Select the correct answer using the codes given below:
The Reserve Bank of India (RBI) has broadened the regulations governing remittances to International Financial Services Centres (IFSCs) under the Liberalised Remittance Scheme (LRS). The RBI’s circular authorizes “authorised persons” to facilitate remittances for all permissible purposes under LRS to IFSCs.
About Liberalised Remittance Scheme (LRS)
LRS is governed by the Foreign Exchange Management Act (FEMA) 1999, regulated by the Reserve Bank of India (RBI).
The scheme was introduced by the RBI in 2004 to facilitate outward remittances from India.
LRS allows resident individuals, including minors, to remit a specified amount of money abroad each financial year (April – March).
Currently, individuals are allowed to remit up to USD 250,000 per financial year under LRS.
Funds remitted under LRS can be used for permissible current or capital account transactions, or a combination of both.
Permissible Uses:
Expenses related to travel (private or for business).
Medical treatment abroad.
Payment of fees for education abroad.
Gifts and donations.
Maintenance of close relatives.
Investment in shares, debt instruments, and immovable properties overseas.
Accounts: Individuals can open and maintain foreign currency accounts with banks outside India for transactions permitted under LRS.
Exclusions: LRS is NOT available to corporations, partnership firms, Hindu Undivided Families (HUFs), trusts, etc.
Prohibited Transactions:
Remittances for activities prohibited under Schedule-I of FEMA, such as purchase of lottery tickets, sweepstakes, proscribed magazines, etc.
Trading in foreign exchange abroad.
Remittances to countries identified as non-cooperative by the FATF.
Remittances to individuals/entities identified as posing a terrorism risk by the RBI.
Significance of the move
The RBI’s decision reinforces GIFT IFSC’s position as a prominent international financial services hub.
By broadening the scope of LRS, GIFT IFSC aims to attract more diverse investments and transactions, contributing to the growth of India’s financial sector.
From UPSC perspective, the following things are important :
Prelims level: GAINS Scheme
Why in the News?
The Defence Ministry has launched the “GRSE Accelerated Innovation Nurturing Scheme (GAINS 2024)” of Garden Reach Shipbuilders & Engineers Limited (GRSE) in Kolkata.
About GAINS 2024
GAINS aims to address challenges in shipyards and promote technology development through startups nurtured in the country.
It aligns with the ‘Make in India’ and ‘Start-up India’ policies of the Government of India.
Objective: To seek solutions for shipyard-related problems and promote technological advancements.
Target Audience: MSMEs and Start-Ups encouraged to develop innovative solutions.
Significance of the Scheme
GAINS aims to strengthen maritime security and air defence through technological advancements.
It leverages MSMEs and Start-Ups to achieve self-reliance in ship design and construction.
Various defence production indigenisation initiatives in India:
From UPSC perspective, the following things are important :
Prelims level: NFlES Scheme
Why in the News?
The Union Cabinet, chaired by PM Narendra Modi, approved the National Forensic Infrastructure Enhancement Scheme (NFIES).
Do you know?
Central sector schemes: They are 100% funded by the Union government and implemented by the Central Government machinery. It covers subjects from Union List (central subjects).
Centrally Sponsored Scheme (CSS): It has a certain percentage of the funding borne by the States and the implementation is by the State Governments.It covers subjects from Concurrent List (shared subjects).
States have some flexibility to modify schemes to suit local needs within central guidelines.
About National Forensic Infrastructure Enhancement Scheme (NFlES)
The Central Sector Scheme NFIES aims to strengthen national forensic infrastructure, expand NFSU’s reach, and establish CFSLs to meet growing forensic demands.
It aligns with India’s goals of enhancing forensic capabilities and securing robust criminal justice outcomes.
Key Components of NFlES:
Campuses of NFSU: Establishing campuses of the National Forensic Sciences University (NFSU) across India.
Central Forensic Science Laboratories (CFSLs): Setting up new CFSLs nationwide.
Delhi Campus Enhancement: Upgrading infrastructure at the Delhi Campus of NFSU.
Financial outlay: Rs. 2254.43 crore for 2024-25 to 2028-29, funded by the Ministry of Home Affairs.
Objectives:
Enhancing the criminal justice system with timely and scientific forensic examinations.
Addressing the increased workload due to new criminal laws requiring forensic investigation for serious offences.
Mitigating the shortage of trained forensic professionals in Forensic Science Laboratories (FSLs).
From UPSC perspective, the following things are important :
Prelims level: PM-KISAN, Rythu Bandhu Scheme
Why in the News?
The Prime Minister will release the 17th installment of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), amounting to over ₹20,000 crore, for 92.6 million beneficiary farmers across the country.
About the PM-KISAN Scheme
The PM-KISAN is a Central Sector Scheme with 100% funding from the Government of India.
It is being implemented by the Ministry of Agriculture and Farmer’s Welfare.
Launched: In February 2019.
Aim: To help procure various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of each crop cycle.
Objective: To provide eligible farmers with an annual financial assistance of ₹6,000.
This assistance is distributed in three equal instalments of ₹2,000 each every 4 months, via Direct Benefit Transfer (DBT) into beneficiaries’ bank accounts.
Beneficiaries:
Farmer families that hold cultivable land can apply for the benefits of this plan.
Small and Marginal Farmers (SMFs) (a farmer who owns cultivable land up to 2 hectare as per land records of the concerned State/UT.).
The entire responsibility of identification of beneficiary farmer families rests with the State / UT Governments.
Do you know?
The PM-KISAN scheme was first conceived and implemented by the government of Telangana as the Rythu Bandhu scheme.
Rythu Bandhu Scheme
It is also known as the Farmer’s Investment Support Scheme (FISS).
It is a welfare programme for farmers started in 2018 by the Telangana government.
Under the scheme, the state government provided the 58 lakh farmers in Telangana with ₹5,000 per acre of their land as a farm investment for two crops.
There is no ceiling on the number of acres held by a farmer.
So, a farmer who owns two acres of land would receive Rs 20,000 a year, whereas a farmer who owns 10 acres would receive Rs 1 lakh a year from the government.
This investment is made twice a year, once for the kharif harvest and once for the Rabi harvest.
It is the country’s first direct farmer investment support scheme where cash is paid directly to the beneficiary.
Impact of the Scheme
Beneficiaries outreach: Over 11 crore farmers (with more than 3 crore women farmers) across the country have availed of the PM-Kisan scheme, indicating its widespread reach and impact.
Financial Support: This financial aid helps farmers meet their agricultural expenses, purchase seeds, fertilizers, and other inputs, and support their families’ livelihoods.
Improved Agricultural Practices: This contributes to food security and boosts the agricultural sector’s growth.
Poverty Alleviation: The scheme plays a crucial role in alleviating poverty among small and marginal farmers by providing them with a steady source of income just like Universal Basic Income (UBI).
Enhanced Livelihoods: PM-Kisan supports farmers’ livelihoods, by providing a safety net during times of agricultural distress or economic uncertainties, ensuring a better quality of life for rural communities.
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:
From UPSC perspective, the following things are important :
Prelims level: PM-KISAN Scheme
Why in the News?
Prime Minister has approved the 17th instalment of the PM Kisan scheme. This move will benefit 9.3 crore farmers, amounting to a distribution of approximately Rs 20,000 crore.
About the PM-KISAN Scheme
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a Central Sector Scheme with 100% funding from the Government of India.
It is being implemented by the Ministry of Agriculture and Farmer’s Welfare.
Launched: In February 2019.
Aim: To help procure various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of each crop cycle.
Objective: To provide eligible farmers with an annual financial assistance of ₹6,000.
This assistance is distributed in three equal instalments of ₹2,000 each every 4 months, via Direct Benefit Transfer (DBT) into the bank accounts of beneficiaries.
Beneficiaries:
Farmer families that hold cultivable land can apply for the benefits of this plan.
Small and Marginal Farmers (SMFs) (a farmer who owns cultivable land up to 2 hectares as per land records of the concerned State/UT.).
The entire responsibility of identification of beneficiary farmer families rests with the State / UT Governments.
Significance for Farmers
Beneficiaries outreach: Over 11 crore farmers (with more than 3 crore women farmers) across the country have availed of the PM-Kisan scheme, indicating its widespread reach and impact.
Financial Support: This financial aid helps farmers meet their agricultural expenses, purchase seeds, fertilizers, and other inputs, and support their families’ livelihoods.
Improved Agricultural Practices: This contributes to food security and boosts the agricultural sector’s growth.
Poverty Alleviation: The scheme plays a crucial role in alleviating poverty among small and marginal farmers by providing them with a steady source of income just like Universal Basic Income (UBI).
Enhanced Livelihoods: PM-Kisan supports farmers’ livelihoods, by providing a safety net during times of agricultural distress or economic uncertainties, ensuring a better quality of life for rural communities.
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:
From UPSC perspective, the following things are important :
Prelims level: PM-JANMAN Scheme
Mains level: Government initiatives and Programs; Technical Challenges in the implementation; PM JANMAN Housing Scheme;
Why in the News?
The PM JANMAN presents a new opportunity to transform the lives of India’s Particularly Vulnerable Tribal Groups.
About PVTGs:
India has numerous Adivasi groups, with 75 identified as Particularly Vulnerable Tribal Groups (PVTGs). These comprise around 14.6 lakh households and live in scattered, remote, and often inaccessible areas. Their livelihoods rely on methods and tools that predate agriculture. PVTGs have low literacy rates, economic backwardness, and stagnant populations.
In 1960-61, the Dhebar Commission identified disparities among Scheduled Tribes, leading to the creation of the “Primitive Tribal Groups” (PTG) category. In 2006, this category was renamed Particularly Vulnerable Tribal Groups (PVTGs).
Government Initiatives:
Pradhan Mantri PVTG Development Mission. Announced for the fiscal year 2023-24 to improve socio-economic conditions of PVTGs.
Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) launched in November 2023.
Pradhan Mantri Adi Adarsh Gram Yojana, Integrated Tribal Development Project (ITDP) and Tribal Sub-Plan (TSP).
PM JANMAN Objectives:
Provide essential services to PVTGs, including safe housing, clean drinking water, and sanitation.
The largest Direct Benefit Transfer (DBT) scheme in the initiative.
Aims to reach 4.90 lakh PVTG households by 2026.
Households to receive ₹2.39 lakh each in three instalments.
Technical Challenges in the PM JANMAN Housing Scheme
App Functionality and Data Gathering:
Data Collection Areas: The ‘Awaas+’ app records geographical locations, household profiles with geo-tagging, and bank account details for cash transfers.
Mandatory Jobcard: Registration requires a jobcard, but many have been deleted, affecting PVTGs’ eligibility.
Jobcard Issues:
Deletion of Jobcards: Widespread deletion of over eight crore MGNREGA jobcards in the past two years has led to many PVTGs being ineligible for the scheme.
Jobcard Misuse: Cases of fraudulent registrations with someone else’s job cards further complicate the registration process.
Village List Discrepancies:
Inconsistent Data: The pre-populated list of villages in the app does not match the MGNREGA Management Information System (MIS). For example, the app lists 22 villages while the MIS lists 31 villages for ‘Vanjari’ Panchayat in Andhra Pradesh, causing confusion.
Aadhaar-related Issues:
Name Matching: The app requires names as per Aadhaar records but does not guide what to do if Aadhaar is absent.
PVTG Identification: The app does not explicitly identify PVTGs, using a default ‘ST’ option, leading to non-PVTG registrations.
Certification Issues:
Local Certification: Ineligible registrations prompt local officials to ask PVTGs for certification from sarpanches/mukhiyas.
Conflict of Interest: Non-PVTG sarpanches/mukhiyas in mixed communities may act against the interests of PVTGs, complicating the certification process.
Geo-tagging Problems:
Network Issues: Geo-tagging required for planned construction locations faces chaos due to poor network connectivity, hindering accurate data capture.
Bank Selection Complexity:
Overwhelming Options: The app’s dropdown lists for banks are excessively long. For example, selecting ‘Commercial Bank’ shows over 300 options, and choosing ‘State Bank of India’ in Andhra Pradesh presents over 500 branches, adding unnecessary complexity for both PVTGs and officials.
Opportunity/Way Forward for PM JANMAN Housing Scheme
Simplify App Interface: Update the ‘Awaas+’ app to have a more user-friendly interface and reduce unnecessary complexities, such as the long dropdown lists for banks.
Clear Guidelines for Aadhaar: Provide explicit instructions on what names to use in the absence of Aadhaar, ensuring all eligible PVTGs can register.
Verify Jobcard Authenticity: Introduce robust mechanisms to prevent fraudulent registrations using others’ jobcards.
Improve Network Infrastructure: Invest in better network infrastructure in remote areas to support the geo-tagging feature.
Mains PYQ:
Q Given the diversities among tribal communities in India, in which specific contexts should they be considered as a single category? (UPSC IAS/2022)
From UPSC perspective, the following things are important :
Prelims level: Retail Direct Scheme
Mains level: NA
Why in the news?
The RBI has decided to introduce a Mobile App of its RBI Retail Direct scheme aimed at facilitating seamless investment in government securities by retail investors.
What is Retail Direct Scheme?
Retail Direct Scheme was rolled out in November 2021, giving access to individual investors to maintain gilt accounts with RBI and invest in government securities.
Using this app, investors can buycentral and state government bonds as well as Treasury bills.
It enables investors to buy securities in primary auctions as well as buy/sell securities through the Negotiated Dealing System-Order Matching system (NDS-OM) platform.
A Gilt Account can be compared with a bank account, except that the account is debited or credited with treasury bills or government securities instead of money.
Treasury Bills:
They are promissory notes issued by the RBI on behalf of the government as a short term liability and sold to banks and to the public.
The maturity period ranges from 14 to 364 days.
They are the negotiable instruments, i.e. they are freely transferable.
No interest is paid on such bills but they are issued at a discount on their face value.
How does it work?
Under the scheme, small investors can buy or sell government securities (G-Secs), or bonds, directly without an intermediary like a mutual fund.
However, the same tax rules apply to income from G-Secs.
The minimum amount for a bid is ₹10,000 and in multiples of ₹10,000 thereafter.
Payments may be made through Net banking or the UPI
Benefits of RDS
With the government being the borrower, there is a sovereign guarantee for the funds and hence zero risk of default.
Also, government securities may offer better interest rates than bank fixed deposits, depending on prevailing interest rate trends.
How can individuals access G-Sec offerings?
Investors wishing to open aRetail Direct Giltaccount directly with the RBI can do so through an online portal set up for the purpose of the scheme.
Once the account is activated with the aid of a password sent to the user’s mobile phone, investors will be permitted to buy securities either in the primary market or in the secondary market.
PYQ:
[2018] Consider the following statements:
1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities.
2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
3. Treasury bills offer are issued at a discount from the par value.
Which of the statements given above is/are correct?
