ECONOMY…
Banking, Currency and Crypto…
- Rupee at
- Currency Swaps…
- OMO Purchases…
- G-Secs…
- GENIUS Act - Stablecoins…
- Crypto Transactions…
- KYC for Crypto…
- RBI’s Surplus…
- Monetary Policy…
- Expansionary Monetary Policy…
- Banks Performance…
- Gross NPAs of SCBs…
- Loan Recovery…
- Aapki Poonji Aapka Adhikar…
- Master Directions…
- RBI Norms for Digital Banking…
- NPCI - NIPL - Malaysia’s PayNet…
- Payment System Operators…
- Gold Loan Rules…
- Post Offices Digital Payments…
- Bank Mitras…
- Small Finance Bank…
- UPI Intensity…
- UPI Expansion…
- Lead Bank Scheme…
Indian Economy…
- Economic Indicators…
- Goldilocks Economy…
- Economic Survey Predicts Bright India…
- PMI…
- IIP…
- Net FDI Inflow…
- 100% FDI in Insurance…
- Chinese investments…
- Southern States - FDI…
- PN
- FPIs Withdraw…
- 4th Largest Economy…
- World Bank Income Classification…
- CPI Inflation…
- MoSPI CPI Proposals…
- Govt. Unveils New CPI Series…
- Flexible Inflation Targeting…
- IMF - National Accounts Statistics (NAS)…
- GDP Growth…
- New Base Year…
- New GDP…
- Revised GDP and GVA…
- Income Survey…
- HCES…
- Household Stability…
- Household Finance Surveys…
- MSME Facts… Decode Current Affairs - By Mudit Jain Decode Civils Android App Decode Civils iOS App
- MSMEs & QCOs…
- Loans to MSMEs…
- CHAKRA…
- Taxpayer Base…
- Lower Beedi Taxes…
- National Monetisation Pipeline (NMP) 2.0…
- Economic Stabilisation Fund…
Trade…
- Export Concentration…
- Fiscal Deficit…
- Gold…
- Silver…
- RoDTEP…
- Export Promotion Mission…
- India’s Pharma Future…
- Export Promotion Mission Expansion…
- 7 New Measures under Export Promotion Mission…
- Credit Guarantee Scheme for Exporters (CGSE)…
E-Commerce…
- Country of Origin…
- Dark Patterns…
Manufacturing, Skill Development and Trade…
- Dutch Disease…
- Self-reliant India…
- SEZ Norms - Electronics…
- Quality Control Orders…
- Factories (Gujarat Amendment) Ordinance…
- Employment-Linked Incentive…
- Women - STEM…
- Chemical Exports…
- PM - Random…
- SASCI…
- India’s gem, jewellery industry…
- Bharat Audyogik Vikas Yojna (BHAVYA)…
GST…
- GST on Online Gaming…
- NITI Aayog & GST…
- Tax Contribution vs Devolutions…
- Tobacco Control…
- GST Compensation Cess…
- GST Reforms
- Apparel GST…
Workforce…
- Jobs…
- SPREE - ESIC…
- IT Sector…
- Digital Labour Chowk…
- Menstrual Leaves…
- PLFS…
- Unemployment - PLFS…
- Global Unemployment…
- Gig Workers…
- CII Partnership Summit-2025…
- Workplace Accidents… Decode Current Affairs - By Mudit Jain Decode Civils Android App Decode Civils iOS App
- Labour Codes…
- Rules for four Labour Codes…
- Shram Shakti Niti,
- Banks - Pension - NPS…
- PMKVY (Pradhan Mantri Kaushal Vikas Yojana)…
- India’s Skilling Facts…
- Global Access to Talent from India (GATI)…
- Bonded Labour…
Financial Markets…
- Short Selling…
- SEBI Conflict of Interest…
- Reforms…
- Securities Market Code Bill
- Cat Bonds…
- Tier I & II Bonds…
- KIIFB Masala Bond Probe…
- Various Bonds…
- Qualified Institutional Placement…
- Domestic r/t FPI…
- Gold ETF…
- SEBI Intraday Regulations…
- US Treasury Securities…
- Securities Transaction Tax…
- Small Savings Scheme…
- Mutual Funds Regulations…
- SEBI Broadens MF…
- Official Action Indicated (OAI)…
- Financial Conditions Index…
- Insolvency and Bankruptcy Code (IBC)…
- Gold ETFs…
- Systematic investment plans (SIPs)…
- Adani - SEC…
Resources, Minerals and Energy…
- Energy and Efficiency…
- Clean Energy Share…
- Power Generation Capacity…
- Captive power generation…
- Coal stock…
- Grid Emission Factor…
- Oil and Gas…
- Oil and Gas - $100 bn Investments…
- OALP-X…
- India’s Oil Sources…
- Oil-Gas Imports - Solutions…
- Global Oil Dynamics…
- Oil Prices…
- Special Petroleum Reserve (SPR)…
- Oil release from strategic reserves…
- Essential Commodities Act (ECA),
- Natural gas supply…
- India’s LPG dependence…
- LPG output rises 25%…
- LPG deficit…
- LPG Imports… Decode Current Affairs - By Mudit Jain Decode Civils Android App Decode Civils iOS App
- LPG carriers…
- Piped natural gas (PNG)…
- India’s thermal independence…
- Ethanol Blending…
- E20 - RON
- Bamboo-based Ethanol…
- Ethanol - Cooperatives…
- Isobutanol + Diesel…
- Green Ammonia and Green Methanol…
- Blue-green Ammonia…
- Green Ammonia Route…
- Extracting and Producing Nickel…
- AC Temperature…
- Copper Wire…
- Energy Stack…
- Building-Integrated Photovoltaics…
- Silicon PVs - Green Hydrogen…
- Revamped Distribution Sector Scheme (RDSS)…
- RTS…
- Panchet Solar Issue…
- Global Solar Expo–Rajasthan
- Solar Rise…
- Solar Modules…
- Solar Ingot…
- Battery Energy Storage Systems…
- Sodium-ion Technology…
- ACC-PLI…
- Aadhaar-like Number for EV batteries…
- Decade of Hydropower…
- Geothermal Pilots…
- Local Sourcing Norms…
- Wind Energy vs Birds…
- New Wind Energy Capacity…
- Nuclear Energy Targets…
- SMRs…
- Clean Core Thorium Energy (CCTE)…
- HALEU-Th fuel…
- Private Players in Nuclear…
- China’s Reactor Density Limit…
- DISCOMs and The Road Ahead…
- 300 critical mineral exploration projects…
- Rare earth MoU with Brazil…
- Plastic product prices…
- Ethyl chloroformate…
- Land Reforms…
Textiles…
- India’s Sector…
- Quality Control Order…
- Textiles Focused Research, Assessment, Monitoring, Planning and Start-up…
- National Technical Textiles Mission (NTTM)…
- National Handloom Day…
Infrastructure - Telecom & Power…
- Starlink…
- Satellite Internet Service Rules… Decode Current Affairs - By Mudit Jain Decode Civils Android App Decode Civils iOS App
- Satellite Phones…
- Telecom Policy Draft…
- Regulatory Assets…
- Internet Access…
- Right of Way…
- Telecom Subscriptions…
- Source Code of Smartphones…
- 6GHz Band for WiFi…
- Telecom Spectrum…
- Google India, U.S. Link…
- Cable cuts…
Infrastructure- Railways…
- Aizawl Rail Link…
- Kashmir Rail Link…
- Amrit Bharat Station Scheme…
- Aabhar Online Store…
- DRISHTI System…
- Ticket Booking…
- Hydrogen-powered Train…
- Removable Solar Panel…
- Green Railways…
- Metro Network…
- Kavach…
- Bio-plastic on Trains…
- Rudrastra…
- First Vande Bharat Sleeper…
- Bullet Train…
- Kerala’s High-speed Rail Corridor…
- Connect NE…
Infrastructure - Ports and Shipping…
- Australia Ship…
- Vizhinjam Port…
- Maritime Development Fund…
- Shipping Regulations…
- Shipping Decarbonization…
- Indian Carriage of Goods by Sea Act,
- LPG carrier Sahyadri…
- Kaleshwaram Project…
- Shipbuilding…
- Adani Ports…
- New Maritime Initiatives…
- Bureau of Port Security (BoPS)…
- Shipping Corporation of India (SCI)…
- Upgrading Shipyards…
- India Maritime Week…
- Yamuna River Cruise Project…
- MSC Irina…
Infrastructure- Roads and Highways…
- Road Accidents…
- Road Accidents…
- Actionable Intelligence for Sustainable Traffic Management…
- FASTag…
- Cash at Toll Plazas…
- Network Survey Vehicles… Decode Current Affairs - By Mudit Jain Decode Civils Android App Decode Civils iOS App
- Toll Collection…
- Steel Truss Bridges…
- Bharat Taxi…
- Musical Path…
Infrastructure - Aviation…
- AI‑ 171 Dreamliner…
- IndiGo…
- Flight Duty Time Limitation…
- Airport Tariff…
- SAF National Policy…
- Automatic Message Switching System (AMSS)…
- Internet on Aeroplanes…
- Airbus A320 Aircraft…
- Navi Mumbai International Airport…
- Bhogapuram…
- Airports Privatisation…
Automobile…
- EV Manufacturing…
- EV Growth - Niti Aayog…
- EV…
- Auto PLI…
- e-LCV Transition…
- Scheme to Promote Manufacturing of Electric Passenger Cars (SPMEPC)…
- China - India - WTO - EV - PLI…
- Involution - Chinese EV Sector…
- Draft CAFE Rules…
- New Fuel Emission Rules…
Fishing…
- Fishing Limit…
- Fisherwomen’s Day…
- Deep-sea Fishing…
- Fisheries Schemes…
- Fish Export Issues…
Regional and International Bodies…
- WTO - PLI Scheme…
- IMF - EFF…
- Retaliatory Tariffs…
Budget…
- Customs Duty…
- STT…
- Capital Markets…
- Data Centres…
- Textile, MSMEs…
- Biopharma…
- Mental Health; AYUSH…
- Semiconductors, REEs…
- New Rural Jobs Scheme…
- Coconut, Cocoa, Sandalwood…
- Boost for Defence…
- Livestock, Fisheries Sectors…
- Budget Analysis…
- Education and Skilling…
- Persons with Disabilities…
- Jal Jeevan Mission… Decode Current Affairs - By Mudit Jain Decode Civils Android App Decode Civils iOS App
- Rare Earth Corridors…
- Clean Energy…
- Semiconductor Mission 2.0 - ECMS…
- CCUS…
- Seven Rail Corridors…
- Container-making, Inland Waterways…
- Training Aircraft, Seaplane Operations…
- Buddhist Circuits, Hiking Trails…
- Champion MSMEs…
- Rakhigarhi…
- Fiscal Deficit…
- Solar…
- NRIs…
- Infrastructure…
- Gender…
- Budget - Formulation…
Reports and Misc…
- RBI’s Remittances Survey…
- World Inequality Report…
- Gini Index…
- Hurun India Wealth Report
- Financial Sector Assessment (FSA) Report…
- Meghalaya Filmmaking…
- Homestays in Uttarakhand…
- Nobel Economics Prize…
- Indian Institute of Packaging…
- HDI…
- Extreme Poverty Eradication Programme…
- World Bank Poverty and Equity Brief
- GIFT City…
- Start-ups - DSIR…
- 44,000 Start-ups Added…
- Deep Tech Start-ups…
- Live Events Development Cell…
- Creator’s Corner…
- GATT - WTO…
AGRICULTURE…
Food & Crops…
- Genome Edited Rice…
- GM Maize Trials…
- Clustering Maize…
- GM Mustard…
- Neera Production…
- Turmeric…
- Beej Utsav…
- Eggs…
- Bamboo…
Policies & Misc…
- Climate Resilient Agriculture…
- CROPIC…
- Dairy’s Circular Economy…
- Wheat - Desertification…
- BHARATI…
- Mayonnaise… Decode Current Affairs - By Mudit Jain Decode Civils Android App Decode Civils iOS App
- Ethanol - Food vs Fuel…
- Sugar - Ethanol Sourcing…
- Biohappiness…
- Biostimulants…
- Women in Agriculture…
- Prime Minister Dhan-Dhaanya Krishi Yojana…
- Fisheries Sustainability…
- Terrace cultivation…
- CIMMYT…
- World Food Prize…
- M.S. Swaminathan…
- Farmer Suicides…
- Pulses Self-Reliance Mission…
- Tractor Exports…
- Paddy Procurement…
- PLISFPI…
- Draft Pesticides Management Bill…
- Herbicides…
- Fake Fertilizers…
- Fertilizer Prices…
- Fertilizer Effects…
- Food Systems - Emissions…
- Draft Seeds Bill…
- Crop Loss Norms…
- Plant Varieties Act…
- PDS…
- Natural Farming…
- Food Colouring…
- International Treaty on Plant Genetic Resources for Food and Agriculture…
- Animal Blood Bank Network…
- Globally Important Agricultural Heritage Systems…
SECURITY…
Illegal Immigrants…
- Deportation vs Pushback…
- Mizoram - Myanmar Refugees…
- Demography Mission…
Border Management…
- Northeast…
- Assam Indigenous Communities…
- Nagas…
- AFSPA…
- Reserved Areas…
- Village Guards…
- Infiltrators…
- Vibrant Village Programme-2…
Left Wing Extremism…
- LWE Measures…
- Naxalism 11 Districts…
- Bastar & Naxalism…
- Abujhmad…
Cyber Security…
- DDoS…
- Cyberbullying…
- CoinDCX Breach… Decode Current Affairs - By Mudit Jain Decode Civils Android App Decode Civils iOS App
- Quantum Cyber Readiness…
- APK Scam…
- 2FA…
- Scam Hubs in Southeast Asia…
- GPS Spoofing…
- Mule Bank Accounts…
- Sachet Portal…
- WiFi Signals for Surveillance…
- VPN…
- NATGRID…
Terrorism and Organized Crime…
- Multi Agency Centre…
- Fugitives…
- Delhi Terror Attack - Ricin…
- Delhi Terror Attack - FTIR…
- Delhi Terror Attack - Misuse of Technology…
- National Counter-Terrorism Policy and Strategy - PRAHAAR…
- FATF…
- FATF Report…
- FATF Asset Recovery Framework…
- Laundromat…
- Drone-driven Drug Smuggling…
- Operation MED MAX…
- Operation Crystal Fortress…
Defense Policies…
- Inter-Services Organisations (Command, Control and Discipline) Act,
- 22nd Shangri-La Dialogue…
- Agniveers…
- Emergency Procurement…
- Defence Production…
- Drone Industry…
- Homegrown Dual-use AI Systems…
- Military AI - REAIM…
- Women in Forces…
- Tri-services Education Corps…
- CMS-03 (GSAT-7R)…
- Seventh NSG Hub…
- Security Categories…
- Comprehensive Nuclear-Test-Ban Treaty Organization…
- DPSUs - Miniratna Status…
- Rashtrapati Bhavan - Param Vir Chakra…
- Military in Lakshadweep…
- Border Infrastructure…
- Biosecurity…
- DAC Approvals…
- Japan’s Record Defense Budget…
- 78th Army Day…
- Indian Coast Guard…
- ITBP - LAC…
- Security Regulations for Seaports…
- Reservation for Agniveers…
- BvS10 Sindhu…
- National IED Data Management System…
- Defence Budget… Decode Current Affairs - By Mudit Jain Decode Civils Android App Decode Civils iOS App
- Defence Personnel Books…
- Aeronautics
Air Based Weapons…
- Dhruv Helicopter…
- Dhruv NG Helicopter…
- MH-60R…
- Apache Helicopters…
- UH-3H Helicopter…
- H125 Helicopters…
- Seahawks…
- Aircraft Carriers - Rafale-M…
- Operation Sindoor Weapons…
- Army scales up induction of drones, aims to make every soldier a drone operator…
- Saksham…
- ‘Ghost Bat’ Drone…
- Heron Mk II UAVs…
- IAF’s Fighter Jets…
- Fighter Jet Acquisitions…
- HAL - Fighter Jets…
- AMCA…
- HAL - 97 LCA…
- Decoys & Deceptions…
- IAF 93rd Anniversary…
- HAL - GE - Fighter Jet Engines…
- 1971 Victory…
- Fighter Escape System…
- C-390 Planes…
- Hansa-3 Plane…
- SJ-100…
- F-35B…
- Jaguar…
- Hawk Mk-132 jets…
- Falcon 2000 Civilian Planes…
- P-81, HAPS etc…
- Golden Dome…
- Patriot Air Defence…
- THAAD…
- Javelin Missiles…
- Tomahawk…
- Typhon Missile…
- Oreshnik Missile…
- Burevestnik Missle…
- Astra Missile…
- Agni-Prime Missile…
- Akash Prime Missile…
- Long-range Missiles…
- Multi-layered Defence…
- Pralay and Akash Prime Missiles…
- Agni-5 missile…
- ATACMS Missiles…
- NASAMS Air Defence Missile System…
- Akash Missile…
- Scramjet Combustor Test…
- Solid Fuel Ducted Ramjet (SFDR) Technology… Decode Current Affairs - By Mudit Jain Decode Civils Android App Decode Civils iOS App
- Suryastra…
- MPATGM…
- HAMMER…
- NAMIS & GBMES…
- Iran-USA Weapons in News…
Water Based Weapons…
- Arnala, ASW-SWC…
- Adamya…
- Stealth Frigate INS Tamal…
- INS Tabar…
- INS Udaygiri & INS Himgiri…
- INS Guldar…
- INS Nistar…
- Extended Range Anti-Submarine Rocket…
- Khabarovsk…
- INS Ikshak…
- Fujian…
- INS Mahe…
- Anjadip…
- INS Taragiri Commissioned…
- Nuclear Attack Submarines (SSN) & SSBN…
- Samudra Pratap Vessel…
- ICG Ship Sarthak…
- INS Vaghsheer…
Nuclear Weapons…
- French Nuclear Umbrella…
- Technology Perspective and Capability Roadmap…
- Nuclear Warheads…
Military Exercises…
- Golden Dragon…
- Nomadic Elephant…
- Khaan Quest…
- Shakti…
- Achook Prahar…
- Bright Star…
- Bold Kurukshetra…
- SIMBEX…
- Talisman Sabre…
- Jaa Mata…
- National Cybersecurity Exercise (Bharat NCX 2025)…
- SLINEX…
- MILMEDICON…
- Indian Ocean Naval Symposium…
- Exercise Siam Bharat…
- Vajra Ghaat…
- Maritime Security Belt
- International Fleet Review & MILAN…
- LAMITIYE-2026…
- Yudh Kaushal 3.0…
- Zapad…
- 21st Yudh Abhyas…
- Cold Start…
- Konkan-25…

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Tri-services Exercise Trishul......................................................................................................................................................................................... 138
EKUVERIN.................................................................................................................................................................................................................... 139
SURYAKIRAN................................................................................................................................................................................................................ 139
Desert Cyclone-II......................................................................................................................................................................................................... 139
NATPOLREX-X.............................................................................................................................................................................................................. 139
Samudra Pradakshina.................................................................................................................................................................................................. 139
United Nations Troop Contributing Countries............................................................................................................................................................. 140
Siliguri Corridor........................................................................................................................................................................................................... 140
Swavlamban 2025 ....................................................................................................................................................................................................... 140
Operation Pawan......................................................................................................................................................................................................... 140
Samudra Utkarsh - Maritime Capabilities.................................................................................................................................................................... 140
Chanakya Defence Dialogue-2025............................................................................................................................................................................... 140
International Fleet Review.......................................................................................................................................................................................... 140

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ECONOMY…

Banking, Currency and Crypto…

Rupee at

● Rupee’s movement depends on what’s happening in
the market and how the RBI responds.
● At sharp depreciation of 4.3% against USD in this
calendar year, Rupee has become worst performing
currency in Asia compared with peers like the Chinese
Yuan and the Indonesian Rupiah. Faring better than
structurally weak currencies like Yen, Korean Won.
● India is facing twin shocks: U.S. tariffs and high
precious metal prices. The combination of adverse
geo-economic and geopolitical environments is
weighing upon India’s merchandise trade deficit.
● US 50% tariff on India led to a record $41.7bn trade
deficit in October , triggering rupee slide (import surge
is partly due to the depreciating rupee and also
suggests increased use of cheaper imported
intermediate goods rather than domestic).
● A sharp spike in gold price this year has triggered huge
investment in gold and Gold ETFs, leading to a 200%
increase in demand for gold in October , causing the
gold import bill to spike to $14.72 billion in October. To
finance bullion purchases, businesses sold rupees to
buy dollars , creating a ‘dollar drain’.
● FPIs pulling out in large numbers from Indian equity. When foreign investors exit, they sell rupees to take dollars.
● Domestic investors , spooked by volatility, are pulling money out of the stock market and parking it in bullion.
RBI’s Changed Approach
● Earlier, RBI was selling dollars to arrest slide of rupee. This year, RBI has decided to intervene less. It reflects RBI’s
policy of maintaining a managed-float. RBI’s intervention record is reflected in Balance of Payments data , under
‘Reserve Assets’. RBI’s calculated gamble is that weak rupee will make Indian goods cheaper abroad and offset tariff
pain. Depreciation of the nominal exchange rate does not guarantee real exchange rate depreciation.
● Low inflation has recently helped the Real Exchange Rate fall.
● Thus, Rupee is weakening against dollar even as dollar is weakening against other currencies!
Sovereign Gold Bonds:
● Debt securities issued by RBI on behalf of the government , with each unit denoting a gram of gold. SGBs offer trading
in the secondary market, allowing investors to accrue capital gains.
● SEBI was constituted as a non-statutory body in 1988 through GoI resolution. Statutory body in 1992.
● Commodities traded on Indian commodity exchanges are classified into hard and soft commodities. Hard
commodities include metals and energy. Soft commodities include agriculture and agricultural-processed.
Balance of Payments (BoP) :
● A ledger of a country’s transactions with the rest of the world. Shows how much money went out of the country and
how much money came in. In the BoP table , a minus sign points to a deficit.
● Captures the relative demand of the rupee vis-à-vis the demand for foreign currencies.
● If an Indian wanted to buy an American good or service , or to invest in US , they would have to buy dollars. The
exchange rate would be determined by the relative demand of the two currencies. If Indians demanded more dollars
than Americans demanded rupees , the exchange rate of the dollar relative to the rupee would go up.
● NEER and REER are indices similar to CPI. CPI is the weighted
average retail price of a representative consumer basket of goods and
services for a given month or year, relative to a fixed base period.
● The NEERs/REERs are indices of the weighted average of the rupee’s
exchange rates vis-à-vis the currencies of India’s key trading partners.
Basket comprises 40 currencies and the base year (used as a
reference for comparison with its value set at 100 ) is taken as 2015-.
● The currency weights are derived from the share of the individual
countries in India’s total foreign trade , just as the weight of each
commodity in the CPI is based on its relative importance in the overall
consumption basket. The 40 currencies are of countries accounting for
about 88% of India’s annual trade flows.
● Any increase in the NEER/REER indicates the rupee’s effective appreciation against the 40-currency basket and

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decreases point to its overall exchange rate depreciation.
● The extent of the rupee’s recent depreciation is even more if one looks at the REER. The NEER is a summary index
capturing movements in the external value of the rupee against a basket of global currencies. But it doesn’t factor in
inflation.
● If a currency’s nominal exchange rate falls less than the domestic inflation rate , it has actually appreciated in “real”
terms. REER is basically the NEER index adjusted for the inflation differentials between the home country and its
trading partners. REER is, in that sense, a true gauge of whether a currency is undervalued, overvalued or fairly
valued relative to that of other countries.
● If the rupee’s nominal exchange rates stay the same , but prices in India rise faster than in other countries, the REER
goes up , making Indian products relatively more expensive and less competitive in the global market.
Depreciation & its Effects:
● A weak rupee makes it harder to achieve income growth targets and reduces the ability to attract overseas capital
when returns are moderate. It pushes domestic wealth towards dollar assets under the Liberalised Remittance
Scheme (LRS) or gold.
● A depreciated rupee reduces the overall capital available for the economy and makes capital more expensive. The
rupee depreciation is largely triggered by tariffs and external forces like global market volatility. India’s
macroeconomic fundamentals remain robust.
● Depreciation creates an opportunity for investment as Indian Government Bonds (IGBs) have become 6% cheaper.
Rupee has also depreciated against the euro , yen , British pound , Swedish krona , and Swiss franc.
● Pressure on the currency is being driven by three key factors : sentiment, capital flows, and the global macro
backdrop. Rising U.S. bond yields and expectations of a Bank of Japan rate hike have triggered an unwinding of the
yen carry trade. This has led to risk aversion across equities , credit , crypto , and some commodities , adding
speculative pressure on emerging-market currencies , including the rupee.
Internationalisation of Rupee
● Internationalisation is a process that involves increasing the use of the rupee in cross-border transactions.
● It involves promoting the rupee for import and export trade and other current account transactions , followed by its
use in capital account transactions. These are transactions between residents in India and non-residents.
● Interlinked with nation’s economic progress , requires further opening up of the currency settlement and a strong
swap and forex market.
● Require full convertibility of currency on capital account and cross-border transfer of funds without any restrictions.
India has allowed only full convertibility on the current account as of now.

Currency Swaps…

● The RBI used its first longer-term currency-swap as a systemic liquidity check. In 2019 , it completed a $5 billion
three-year dollar/rupee swap. In February 2025 , it carried out a $10 billion dollar/rupee buy-sell swap auction to
infuse long-term rupee liquidity into the banking system under global stress.
● Such swaps are a standard tool by central banks to supply liquidity, shore up forex reserves , and prevent disorderly
currency depreciation when the dollar surges or capital flows reverse.
● Under floating-but-managed regime , the RBI can only “smoothen volatility” rather than fix the exchange rate.
● Between November last year and now , the RBI sold a net of roughly $50 billion in forex to stabilise the rupee. Even so,
the slide has continued, highlighting the external pressures. India’s forex are comfortable — $693 billion.
● This gives the RBI space to tolerate modest currency depreciation without triggering aggressive rate hikes, especially
as India transitions from cheaper Russian crude to relatively costlier U.S. oil imports.
● With crude accounting for over a fifth of total imports in FY25 , rupee depreciation combined with costlier oil imports
could exert upward pressure on inflation.

OMO Purchases…

● In view of evolving liquidity conditions , RBI announced OMO purchases of government securities worth ₹1,00,
crore and a three-year USD/INR Buy-Sell swap of $5 billion to inject durable liquidity.
● The RBI said it is committed to providing sufficient durable liquidity to the banking system. The dollar-rupee swap
was clarified as a liquidity measure and not to support the depreciating rupee.

G-Secs…

● The Reserve Bank of India (RBI) conducted Open Market Operations (OMO) to buy ₹1,00,000 crore Government
securities (G-Secs). OMOs are monetary policy tools used to regulate money supply.
● Aim to inject liquidity into the banking system.
● Intended to offset liquidity constraints due to advance tax outflows.
● The Indian rupee fell to a record low of 92.36 per U.S. dollar. Fall linked to West Asia conflict and crude oil prices
rising above $110 per barrel. Rising oil prices pose risks to India’s trade deficit, GDP growth and inflation.

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GENIUS Act - Stablecoins…

Why in news: Guiding and Establishing National Innovation for U.S. Stablecoins passed by the U.S. Senate.
● Proposes compliances for stablecoins including anti-money laundering norms, full reserve backing, monthly audits.
● Stablecoins are commodity-backed cryptocurrencies & aims to strengthen the U.S. dollar by encouraging crypto use
pegged to the greenback.

● Hong Kong will enforce its new Stablecoins Ordinance , introducing a
licensing regime for fiat-referenced stablecoins (FRS).
What are stablecoins?
● Cryptocurrencies pegged to fiat currencies, commodities, or other
assets such as metals to maintain stable value. Pegging strategies
include fiat reserves, commodities, crypto collateral, or algorithms.
● Different from CBDCs , as they are privately issued and can be
pegged to foreign currencies.
● Used widely in crypto trading, remittances, and savings. Despite
pegging, can depeg due to technical or global events. US, Japan &
Singapore have introduced specific stablecoin regulations.
● India has not legalised cryptocurrencies , though it taxes transactions
involving them. RBI has advocated banning virtual digital assets, while
also piloting its Central Bank Digital Currency. CBDCs are digital currencies issued by central banks.
Types of Stablecoins
● Fiat-backed stablecoins are backed by traditional currencies like the U.S. dollar or Euro, held in regulated banks or
institutions. Examples include USDT (Tether) and USDC (USD Coin).
● Crypto-backed stablecoins collateralised by other cryptocurrencies such as Ethereum.
● Algorithmic stablecoins maintain stability using automated algorithms that control supply and demand without actual
reserves, though they are highly experimental and risky, as shown by TerraUSD.

Crypto Transactions…

● The value of cryptocurrency transactions in India crossed ₹51,000 crore in 2024-25, up 41% over the previous year,
an analysis of data shared with Parliament showed.
● Government collected ₹511.8 crore as TDS on transactions. The rate of TDS is 1% on every transaction.
● Under the Finance Act 2022, the government introduced a provision in the Income Tax Act 1961, retained in the I-T
Act 2025, mandating a 1% TDS on any transfer of Virtual Digital Assets (VDAs) or cryptocurrencies. In 2018 , RBI
banned banks from dealing with crypto firms, but this was overturned in 2020 by Supreme Court.

KYC for Crypto…

● Selfie with liveness detection , recording of geographical coordinates , and verification of bank account by the
‘penny-drop’ method are among the mandatory new measures under the anti-money laundering and terrorist
financing KYC protocols for cryptocurrency exchanges while onboarding users.
● The directives also discourage Initial Coin Offerings and Initial Token Offerings , equivalent to IPOs.
● Guidelines brought out by the FIU , a body that functions under the Union Finance Ministry , for reporting entities
providing services related to virtual digital assets (cryptocurrency).
● FIU is single-point regulator for cryptocurrency exchanges operating in India under the provisions of PMLA.
● All crypto exchanges must register with FIU as reporting entities and submit regular reports on suspicious
transactions and maintain records of their clients.
● Crypto , in India, has not identified as a legal tender but is taxed under the Income-Tax law.
● Exchanges should “mandatorily” obtain PAN , selfie with liveness detection , and latitude and longitude coordinates of
the onboarding location with date and timestamp, along with the IP address of the customer as part of the ‘client due
diligence’ measures.

RBI’s Surplus…

Why in news: ₹2.69 lakh crore transferred by the RBI to the Central Government as surplus for FY 2024–25 , the
highest ever. This is 27% higher than transferred in 2023–.
● RBI’s transfers are not called dividends as it is not a company with shareholders.

● A cryptocurrency is a digital medium of exchange that uses encryption techniques to control the creation of units
and verify transactions. It operates on a distributed network of computers, making it nearly impossible to
counterfeit or double-spend. Most cryptocurrencies are decentralised and use blockchain technology.
● In traditional financial systems , central banks or third-party institutions authenticate and record transactions
involving fiat currency. In contrast, cryptocurrency transactions are verified by a network of private computers
solving cryptographic puzzles. The process of verifying transactions and earning cryptocurrency is called mining.
● Blockchain powers these transactions, maintaining a secure and transparent ledger.

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● Sources of RBI's revenue : Seigniorage (difference between face value and printing cost of currency), Interest income
from loans to government & banks and Returns from foreign bond investments & currency exchange gains.
● As per RBI Act, 1934 , profits after provisioning are transferred to the Central Government.
● Contingent Risk Buffer (CRB) is RBI’s safety net for financial stability crises. Bimal Jalan Committee (2018)
recommended CRB be 5.5–6.5% of balance sheet. In 2024-25 , CRB range revised to 4.5–7.5%.
● FY25 surplus due to : Higher forex sales, Strong earnings on forex assets, Returns from liquidity management tools.

Monetary Policy…

Why in news: RBI’s Monetary Policy Committee ( MPC ) cut the repo rate to 5.50%, aimed at spurring growth.
● The repo rate cut will reduce the interest burden for borrowers but also lower the interest earned by depositors.
● The RBI also decided to reduce the Cash Reserve Ratio ( CRR ) by 100 basis points to provide liquidity. The reduction
in CRR will lower the cost of funding for banks and improve monetary policy transmission to the credit market.
● Objective is achieving the medium-term CPI inflation target of 4% within a +/- 2% band while supporting growth.
● Real GDP growth for 2025-26 has been projected at 6.5%.

Expansionary Monetary Policy…

Why in news: The RBI cut the repo rate twice in 2025 bringing it to 5.5%.
● This indicates expansionary monetary policy stance, supported by low inflation and GDP growth forecast of 6.5%.
Simultaneously, fiscal policy has turned expansionary , with income tax cuts announced in February 2025. Both tools
are pushing up aggregate demand and could fuel inflation.
● Monetary policy affects demand via interest rates , while fiscal policy operates through taxation & government
spending. Expansionary fiscal policy could be neutralized by contractionary monetary policy, and vice versa.

● Under Economic Capital Framework , RBI transfers surplus (not dividend) to the Central Government annually.
Bimal Jalan Committee recommended that the ECF be reviewed every five years.
● RBI is a full-service central bank , responsible for monetary policy , government borrowings , bank and NBFC
regulation , and managing currency and payment systems.
● Unlike commercial entities, RBI doesn’t pay dividends but transfers surplus income to the government.
● Surplus is calculated after provisions for bad debts, asset depreciation, staff funds , and other banking
contingencies are accounted for.
RBI
● Established on April 1, 1935 under RBI Act, 1934. Central Office initially in Kolkata , moved to Mumbai in 1937.
● Originally privately owned, RBI was fully nationalised in 1949, making it fully owned by the Government of India.
● Section 48 of RBI Act, 1934 provides exemption from income-tax, super-tax, wealth tax to RBI.
● Preamble of RBI outlines its functions: regulate issue of Bank notes, maintain reserves for monetary stability,
operate currency and credit system for the country’s advantage.

● Under Section 45ZB of the amended RBI Act, 1934 , the central government is empowered to constitute a
6-member MPC to determine the policy interest rate required to achieve the inflation target. The first such MPC
was constituted in 2016. 6 Members: RBI Governor as its ex officio chairperson, the Deputy Governor in charge of
monetary policy, an officer of the Bank to be nominated by the Central Board and three persons to be appointed
by the central government.
● RBI uses several direct and indirect instruments to maintain price stability while keeping objective of
growth .cThe instruments are Cash Reserve ratio (CRR) , Repo rate , reverse repo rate , Statutory Liquidity Ratio
(SLR) , Standing Deposit Facility (SDF) Rate , Bank rate , and Liquidity Adjustment Facility (LAF).
● Monetary policy deals with the supply and cost (interest rates) of money in an economy.
● MPC meets every two months and may tweak the repo rate to control inflation and price fluctuations.
● The policy stance of the RBI is currently ‘Neutral’. This shift from an earlier ‘Accommodative’ stance reflects a
recalibrated approach to balance between inflation control and economic growth , allowing the RBI flexibility to
either raise or cut interest rates depending on evolving economic data.
● Repo Rate : Interest rate at which RBI lends to commercial banks under the Liquidity Adjustment Facility (LAF)
against government and approved securities.
● Standing Deposit Facility (SDF) Rate : Rate at which RBI accepts uncollateralised overnight deposits; 25 basis
points below the policy repo rate; introduced in 2022 and replaced the fixed reverse repo rate as LAF floor.
● Marginal Standing Facility (MSF) Rate : Penal rate for overnight borrowing by banks dipping into SLR portfolio up
to 2% limit; 25 basis points above the repo rate. Liquidity Adjustment Facility (LAF) : RBI’s mechanism to
inject/absorb liquidity via overnight and term repo/reverse repo, SDF, MSF, OMOs, forex swaps, and MSS.
● Reverse Repo Rate : Interest rate at which RBI absorbs liquidity from banks against government securities under
LAF; its use is now at RBI’s discretion post SDF introduction. Bank Rate : At which RBI buys or rediscounts
commercial bills; aligned with MSF rate; published under Section 49 of the RBI Act, 1934.
● Cash Reserve Ratio (CRR) : Average daily balance banks (Cash) must maintain with RBI as a percentage of their
net demand and time liabilities (NDTL). Statutory Liquidity Ratio (SLR) : Banks must maintain specified assets
(government securities, cash, gold) as a percentage of their demand and time liabilities.
● Open Market Operations : RBI's purchase/sale of govt securities to inject/absorb liquidity from banking system.

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● Inflation has fallen to a six-year low of ~3% in June 2025 , aided by early monsoons and strong harvests. However,
credit growth is at a 3-year low (9%) and unemployment rose to 5.6% in May 2025. Despite increased disposable
income from tax cuts, consumer spending hasn’t surged , reflecting demand-side stress.
● If output doesn’t rise , tax collections fall , leading to
a widening fiscal deficit. Government may be forced
to cut spending to maintain deficit targets, risking a
reduction in welfare expenditure.

Banks Performance…

● Capital buffers strengthened : CRAR rose from
13.5% (2015) to 17.5% (2025) with CET-1 increasing
from 10.43% to 14.73% during the same period. Asset quality improved : GNPA and NNPA reduced to 2.3% and 0.5% in
2025 after rising to highs of 11.2% and 5.96% in 2018. Profitability of banks has enhanced significantly.
● Return on Assets increased to 1.37% , and Return on Equity to 14%.
● Regulatory measures such as Asset Quality Review (AQR) initiated in 2015 and the Prompt Corrective Action (PCA)
framework (supervisory tool used by RBI to monitor and address financial health of banks. It aims to identify banks
with weak financial metrics and intervene early to prevent further deterioration.) had been balanced and appropriate.
● With the financialisation of the economy, India’s Credit-Deposit (CD) ratio has been increasing since 2000-01 from
53% to 82% , which signifies better financial development and strong economic growth.

Gross NPAs of SCBs…

● The gross NPA ratio of SCBs for domestic operations was at a historic low of 2.15% as of 2025-end, lower than
2010-11 level. Gross NPA has been continuously declining during the last eight financial years.
● This continuous decline in gross NPAs of SCBs, including PSBs , has led to reduced provisioning by them, which in
turn has improved their profitability , thereby causing a positive impact on the business growth.
● Asset quality , underwriting has improved in PSBs supported by a strong balance sheet and profitability.
● RBI initiated Asset Quality Review in 2015, post which the government initiated 4R’s strategy of recognising NPAs,
resolving and recovering value from stressed accounts through clean and effective laws and processes, recapitalising
PSBs, and reforms in banks and the financial ecosystem to address the problem of growing loan default.

Loan Recovery…

● RBI proposed to restrain bank employees or recovery agents to desist from employing harsh methods towards loan
recovery. They would be prohibited from making excessive calls to the borrower or guarantor, and calling outside
prescribed hours and making threatening or anonymous calls.
● All banks must have a dedicated mechanism for redressal of recovery related grievances.
● To be called the RBI (Commercial Banks – Responsible Business Conduct) Second Amendment Directions, 2026 ,
these directions will come into effect from July 1, 2026.

Aapki Poonji Aapka Adhikar…

● The Ministry of Finance is working with RBI to develop a unified portal to help savers and retail investors claim
unclaimed assets. The portal will cover bank deposits , pension fund , shares , and dividends.
● Mega camp on “Aapki Poonji Aapka Adhikar” (WASSEMoney Your Right) organised by PNB.

Master Directions…

● RBI issued 244 consolidated Master Directions after reviewing around 3,500 directions, circulars and guidelines to
reduce compliance burden on Regulated Entities (REs). The 11 regulated entities include: commercial banks, small
finance banks, payments banks, local area banks, RRBs, urban cooperative banks, rural cooperative banks, all India
financial institutions, NBFCs, asset reconstruction companies, and credit information companies.

RBI Norms for Digital Banking…

● Mandatory for banks to obtain explicit customer consent for providing digital banking services. Banks cannot make it
mandatory for customers to opt for any digital banking channel to avail facilities like debit cards.
● Banks can continue to obtain and record mobile numbers to send transaction alerts and for KYC requirements.
● Banks must put in place risk mitigation measures such as transaction limits (per transaction, daily, weekly, monthly),
transaction velocity limits , and fraud checks , depending on their risk perception.
● Banks shall ensure continuous compliance with instructions issued by DPSS under the Payment and Settlement
Systems Act, 2007.
● In September 2025, RBI established a six-member Payments Regulatory Board (PRB) to oversee and regulate all
payment systems in India, including digital and traditional, under the Payment and Settlement Systems Act, 2007.

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Chaired by the RBI Governor, the board strengthens governance by replacing the former Board for Regulation and
Supervision of Payment and Settlement Systems (BPSS).

NPCI - NIPL - Malaysia’s PayNet…

● NPCI International Payments Ltd. , the international arm of NPCI , has signed an agreement with Payments Network
Malaysia Sdn Bhd (PayNet) to enable QR based merchant payments between India and Malaysia.
● Indians visiting Malaysia will be able to use UPI apps to make payments.

Payment System Operators…

● RBI has recognised the payment system operators’ association as a self-regulated organisation (SRO).
● The recognition is in line with the RBI’s 2024 Omnibus Framework for Recognition of SROs for Regulated Entities.
The move reflects a shared vision based on good governance, transparency, and innovation.

Gold Loan Rules…

Why in news: RBI released draft directions to harmonise rules for loans against gold across banks and NBFCs, citing
rapid portfolio growth and lending irregularities. The combined gold loan portfolio grew over 50% in FY24. RBI's
objectives include ensuring borrower protection , enforcing clarity in credit processes , and promoting transparency.
● Loan-to-Value (LTV) ratio remains at 75% , but for consumption-based bullet loans, accrued interest will be included
in LTV, lowering disbursable amounts.
● Proof of ownership of gold collateral is mandated; gold must be valued using 22-carat price; standardised purity
assessment procedures to be implemented. Concurrent loans (for consumption + income generation) will be
prohibited. Loan renewal/top-ups only allowed if the existing loan is standard and within LTV norms.
● Borrowers must repay full principal + interest before taking a new loan; delay in returning collateral beyond 7 days will
attract ₹5,000/day compensation to the borrower.
● Implications on NBFCs and Borrowers: NBFCs’ flexibility in seamless renewals will be curtailed; operational costs &
compliance burden will rise. May raise interest rates for borrowers.

Post Offices Digital Payments…

Why in news: India Post is phasing out its Registered Post service and merging it with Speed Post.
● A key initiative is integrating UPI payments at the time of booking Speed Post. Advanced Postal Technology (APT)
system is being rolled out in phases, already active in Delhi, Chennai , and large parts of Mumbai. Over 86,000 post
offices (more than half of India’s postal network) have been upgraded so far.
● The APT system includes UPI “collect mechanism”, OTP-based authentication etc.

Bank Mitras…

Why in news: Business Correspondent Resource Council has appealed to Parliamentary Committee on Finance to
review Bank Mitras’ remuneration. Bank Mitras’ commissions , last revised in 2014.
● Business Correspondents (BC), are local agents who act as intermediaries between banks and customers in
underserved or unbanked areas. They are a critical pillar of the Pradhan Mantri Jan Dhan Yojana (PMJDY).r

Small Finance Bank…

Why in news: RBI has decided to grant ‘in-principle’ approval to AU Small Finance Bank Ltd. (AUSFB) to transition to a
Universal Bank. Universal bank status allows offering a wide range of financial services and products under one roof
without many restrictions , unlike an SFB.
● Small Finance Banks (SFBs) in India created by RBI under guidance of Government for financial inclusion. Supply of
credit to : Small business units, Small & marginal farmers, MSMEs and Other unorganised sector entities.
● Basic banking activities : Acceptance of deposits, Lending to unserved and underserved sections.
● RBI Guidelines for SFBs (2014): Minimum paid-up equity capital: Rs. 100 crore (now 200cr); At least 25% branches in
unbanked rural centres; At least 50% loan portfolio: loans & advances of up to Rs. 25 lakh; At least 75% of adjusted net
bank credit to priority sector (now 60%). Latest:
Eligibility Criteria for SFBs to Transition into a Universal Bank

Scheduled status with satisfactory track record of minimum 5 years.
Listing on recognised stock exchange + minimum net worth Rs. 1,000 crore (previous audited quarter).
Net profit in last two financial years + Gross NPA ≤ 3% and Net NPA ≤ 1% (last two years).
Must meet prescribed CRAR requirements for SFBs. ● NBFC (Non-Banking Financial Company): company registered under Companies Act, 1956/. ● Engaged in loans & advances, acquisition of securities (shares, stocks, bonds, debentures, govt/local authority securities), leasing, hire-purchase as principal business. ● Excludes institutions engaged in agriculture, industry, trade (other than securities), services, real estate sale/purchase/construction. Residuary NBFC: company whose principal business = accepting deposits (lump

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UPI Intensity…

Why in news: Usage intensity of UPI transactions — measured in per capita volume terms — is highest in Telangana
among all Indian States. The average value of a single UPI transaction (the ‘ticket size’ ) has been declining over time ,
indicating broader adoption for small payments.
● Cash withdrawal intensity remains high in several northeastern States, as well as in Kerala, Goa, and Delhi. This pattern
is linked to factors such as tourism, service-led cash usage, remittance inflows, continued rural cash dependence, and
limited digital infrastructure.

UPI Expansion…

● India is talking to countries, including those in East Asia , to make UPI payments acceptable.
● It is accepted in at least 8 countries : Bhutan, Singapore, Qatar, Mauritius, Nepal, UAE, Sri Lanka, and France.
● Overseas acceptability of India’s digital payment network enables Indian tourists to make UPI payments abroad.
● UPI interface accounted for a majority share in transaction volume , while real time gross settlement accounted for
the largest share in value terms.
● During 2024-25 , digital payments grew by 17.9% in value terms , accounting for 97.6% of India’s total payments.
● Paper-based instruments (cheques) declined during the year, representing the remaining 2.4%.

Lead Bank Scheme…

● RBI issued the draft circular on the revised guidelines for the Lead Bank Scheme (LBS) to fine-tune the objectives of
the scheme; the structure, membership and agenda of various fora; delineation of roles and responsibilities of key
functionaries; to strengthen the State Level Bankers’ Committee and Lead District Manager offices, among others.
● First introduced in 1969 based on Nariman Committee (and Gadgil Study Group recommendations), designates
individual banks to lead efforts for regional development in specific districts.
● Each district is assigned to a public sector bank or select private banks (except in certain metro areas) to act as a
leader for other financial institutions.
● Service Area Approach (SAA) : Added in 1989 , designating specific branches (15-25 villages) for ordered lending.
Objectives: Improve financial inclusion , increase Credit-Deposit (CD) ratios (mandate a 60% CD ratio for rural and
semi-urban branches), and support government-sponsored schemes.

Indian Economy…

Economic Indicators…

● S&P Global upgraded India’s sovereign rating to BBB (Stable) after 18 years , citing growth, monetary credibility, and
fiscal consolidation. (The upgrade lowers borrowing costs and widens
investor base).
● Between 2013-14 and 2022-23, 24.82 crore Indians exited multidimensional
poverty.
● India is the third-largest energy consumer , fourth-largest refiner , and
fourth-largest LNG importer. Ethanol blending rose from 1.5% (2014) to 20%
today, saving ₹1.25 lakh crore forex and paying ₹1 lakh crore to farmers.
● 300 compressed biogas plants being set up under SATAT, with 5% blending
mandate by 2028.
● The government’s renewed focus on boosting consumption marks a policy
re-prioritisation, as other engines of economic growth — private investment
and net exports — remain sluggish or uncertain.
● With the economy’s four key components — household consumption, private investment, government expenditure,
and net exports — only government expenditure has shown strong momentum in recent years.
● GST rate reforms :
○ Rural households: Over 75% of monthly expenditure now falls under nil or 5% GST, up from 56% earlier.
○ Urban households: Coverage under nil or 5% GST increased from 50% to two-thirds of spending.
● Despite record corporate profits, private investment levels remain stagnant.
● Fiscal stress : Fiscal deficit projected to decline from 6.4% (2022-23) to 4.4% (2025-26), but still high.
● Debt-to-GDP ratio : ~81%, far above FRBM target (60%).
● Economic Survey 2024–25 highlighted rising corporate profits and stagnant wages, widening income inequality. In
2023–24, profits hit a 15-year high, while real wages lagged.

sum/installments/contributions/other manner).
● Difference between Banks & NBFCs: NBFCs cannot accept demand deposits; NBFCs not part of payment &
settlement system, cannot issue cheques on itself; No DICGC insurance facility for NBFC depositors.
● NBFCs & NRIs: Can accept deposits from NRIs ; Must comply with FEMA (Deposit) Regulations, 2016 (as
amended) ; Interest rate ceiling = cannot exceed RBI-specified rate for scheduled commercial banks.

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● India’s gross expenditure on R&D stands at 0.64% of GDP. Government funding dominates , whereas in the U.S.,
China, Japan, and South Korea, private enterprises fund over 70% of R&D.
● Startup sector expanded to over 2 lakh govt-recognised startups.
● Open Network for Digital Commerce (ONDC) processed over 326mn orders. It is GoI’s initiative launched in 2022 to
"unbundle" e-commerce landscape. Unlike Amazon or Flipkart, which are closed marketplaces, ONDC is an
open-source network that allows any seller to reach any buyer across different participating apps.
● The PM GatiShakti National Master Plan was opened to the private sector.
● The Project Monitoring Group portal onboarded over 3,000 projects valued at more than ₹76 lakh crore.
● Nearly 95% of India’s trade by volume and about 70% by value moves through maritime routes. The Indian Ports Act,
2025 replaced a colonial-era framework. It introduced state-level dispute resolution, a statutory coordination council,
and stronger norms on safety and environmental preparedness.
● The Oilfields (Regulation and Development) Amendment Act, 2025 reduced investor risk. The Petroleum and Natural
Gas Rules 2025 emphasised stability of terms and clearer timelines on approvals. Open Acreage Licensing Policy
Round X offered 25 blocks across about 0.2 million square kilometres.
● The National Deep Water Exploration Mission signalled focus on domestic resources and technology.
FRBM
● Mandates the government to limit the fiscal deficit, typically targeting 3% of GDP, and manage public debt.
● NK Singh Committee (2016): Recommended using debt-to-GDP ratio as the primary anchor, proposing 60% for
general government (40% Centre, 20% States) by 2023.
● Recent Targets: The government has aimed for a fiscal deficit under 4.5% of GDP by 2025-26.

Goldilocks Economy…

● A Goldilocks economy refers to an ideal economic state that is neither too hot nor too cold , but just right.
● It features full employment , economic stability , and steady growth without major expansion or contraction.
● Growth is sufficient to avoid recession but not excessive to trigger inflation.
● It maintains a balanced relationship between growth, employment, and inflation.
● The Union government has estimated that real growth in the GDP of the country will stand at 7.4% in the current
financial year 2025-26 , up from 6.5% recorded the previous year.
● First Advance Estimates (FAE) of GDP for 2025-26 , released by the MoSPI.
● UN DESA’s World Economic Situation and Prospects 2026 said consumption and public investment can “largely
offset” the impact of tariffs imposed by the U.S. and enable India to grow by 7.2% this fiscal.
● In “Global Economic Prospects” , World Bank also said growth in India is projected to slow to 6.5% in 2026-27.
● IMF has revised upwards its estimate of India’s GDP growth in the current financial year 2025-26 to 7.3% , from its
earlier prediction of 6.6% , in its January 2026 World Economic Outlook update.

Economic Survey Predicts Bright India…

● Economic Survey 2025-26 painted rosy picture of India’s domestic growth outlook, raising the country’s
medium-term forecast to 7% from the earlier estimate of 6.5% , amid grim outlook for the global economy.
● The Survey , authored by Chief Economic Adviser V. Anantha Nageswaran and tabled in Parliament by Union FM , says
that the drivers of a higher medium-term growth outlook are the growth of capital , improved labour participation ,
and greater efficiency in the deployment of these two factors of production.
● Over the past three years , reform momentum has strengthened across several areas relevant for medium-term
growth. Manufacturing-oriented initiatives , such as the production-linked incentive schemes, FDI liberalisation , and
logistics reforms , have supported capacity creation.
● Economic Survey argued in favour of a delay in strict fiscal targets for the Centre, such as those that had been set
under FRBM Act , saying the government currently needs flexibility due to geopolitical environment.
● Survey noted that Centre had stuck to its commitments to reduce its fiscal deficit , but also cautioned States about
worsening finances brought on by lower revenues and higher expenditure , including on cash transfers.
● After spiking to 9.2% of GDP during the pandemic year of 2020-21 , the Centre’s fiscal deficit was on target to be
4.4% at the end of the current financial year.
● FRBM Act’s fiscal deficit target of 3% of GDP by March 2020 has been repeatedly deferred by the government.
● Since the FRBM Act was first enacted in 2003 , the 3% target has been achieved only once.
● The number of States in revenue surplus reduced from 19 in 2018-19 to 11 in 2024-25 , leading to an overall increase
in the collective revenue deficit of States to 0.7% from 0.1% of GDP over this time period.

PMI…

● The seasonally-adjusted HSBC India Manufacturing Purchasing Managers’ Index fell to 56.6 in November from 59.2 in
October , marking the slowest improvement in operating conditions since February.
● PMI is measured on 0-100 scale & reading > 50 indicates expansion , < 50 denotes contraction and 50 denotes no
change. It is a monthly indicator with subtypes; manufacturing, service & composite (manufacturing + service).
● It is considered a leading indicator , meaning it provides early insight into the health of an economy before official
government data like GDP or industrial production are released.

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● The index is derived from monthly surveys sent to senior executives at private sector companies. Manufacturing PMI
is a weighted average of five main survey areas: New Orders (30%), Output/Production (25%), Employment (20%),
Supplier Delivery Times (15%) (inverted, as longer wait times often signal higher demand) and Stock of Items
Purchased/Inventories (10%).
● Expansion in India’s services sector slowed to a 11-month low in December 2025.
● Expansion in India’s manufacturing performance slowed to a two-year low in December.

IIP…

Why in news: Growth in industrial activity during the first half of the financial year has been the slowest in at least five
years , according to official data. The Index of Industrial Production (IIP) , released by MoSPI.
● Released By: NSO (formerly CSO) under the MoSPI. Frequency: Published monthly with a six-week time lag.
● Base Year: Currently 2011-12 (assigned a value of 100). Update: The government plans to update the base year to
2022-23 by May 2026. 3 Sectors: Manufacturing: 77.63%, Mining: 14.37% and Electricity: 7.99%.
● Eight Core Industries: Constitute 40.27% of the total IIP weight. Decreasing order of weightage: Refinery Products
(Highest), Electricity, Steel, Coal, Crude Oil, Natural Gas, Cement and Fertilizers (Lowest).

Net FDI Inflow…

Why in news: As per RBI , India received $81 billion in gross FDI inflows , while net FDI was only $353 million.
● Gross FDI-to-GDP ratio declined from 3.1% (2020-21) to 2.1% (2024-25) , and net FDI-to-GDP ratio dropped to
nearly zero. Gap is explained by the rise in outward FDI (OFDI) and disinvestment , indicating capital outflows.
● OFDI includes investments in tax havens like Singapore & Mauritius , which are also top sources of India’s inward FDI.
This raises concerns over “hot money” and global tax arbitrage , with flows not boosting domestic investment.
● Nearly 56% of India’s outward FDI was routed through low-tax jurisdictions like Singapore, Mauritius, the UAE, the
Netherlands, the U.K., and Switzerland. Singapore (22.6%) , Mauritius (10.9%) , UAE (9.1%) together accounted for over
40% not solely for tax avoidance, but also for strategic business advantages.
● Private Equity (PE) and Venture Capital (VC) termed Alternative Investment Funds dominate FDI inflows. These
mostly involve brownfield FDI , targeting existing firms. Greenfield FDI has declined.
● FDI inflows form a modest share of Gross Fixed Capital Formation ( peaked at 7.5% in FY21 , declined thereafter).
● Since FY21, both net and gross FDI as a percentage of GDP have declined steadily.
● Rising OFDI suggests India may be used as a transit point for tax avoidance by international capital.
● FDI is showing signs of decline and volatility , marked by rising disinvestments, shrinking net inflows , and increasing
capital outflows by Indian firms.
● Manufacturing , once a major FDI sector, saw its share drop to 12% , replaced by financial and service sectors.
● The capital flight weakens domestic job creation , industrial growth , and innovation capacity.
● Headline FDI figures are misleading , as a large portion comes via financial centres like Singapore and Mauritius ,
indicating tax-driven flows rather than productive capital. Traditional FDI sources such as the U.S., Germany, and the
U.K. have scaled back their involvement.

100% FDI in Insurance…

● Sabka Bima Sabki Raksha Act passed.
● 100% FDI would enable capital infusion, better technology, and better insurance
products. It would allow global companies to enter the Indian insurance market without
domestic partners & invite more reinsurers to India.
● All Indian laws will apply and companies will be regulated like other insurance entities.
● The Bill proposes changes to the Insurance Act, 1938, LIC Act, 1956, and IRDAI Act, 1999.
● The FDI limit was earlier raised from 26% to 49% in 2015 and from 49% to 74% in 2021.
The amendment reduces net owned fund requirement for foreign reinsurance branches
from ₹5,000 crore to ₹1,000 crore.
● The Bill empowers IRDAI to disgorge wrongful gains from insurers and intermediaries.
● The maximum penalty on insurance intermediaries is proposed to be increased from ₹1 crore to ₹10 crore.
● Premium collected from Indians by foreign insurance companies will be kept in the country. With more companies ,
competition would increase and premiums should drop.

Chinese investments…

● The Union Cabinet has amended its 2020 rules on foreign direct investment from countries sharing a land border
with India. The amendment incorporates a provision of ‘beneficial ownership’.
● Companies with non-controlling stake belonging to entities from these countries can invest without first seeking
Government approval.
● Press Note 3 (2020) specified that any entity of a country sharing a land border with India can invest only after
securing Government approval. Earlier, this rule applied only to Bangladesh and Pakistan.

Net FDI negative for second straight month in September. These figures refer to direct investment , which
constitutes investment into assets , rather than portfolio investment , which has to do with shares in a company.

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● 2020 rule expanded this to other countries sharing a land border with India , with China being the biggest investor.
● The Union Cabinet chaired by Prime Minister approved changes in guidelines on investments from countries
sharing land border with India (LBCs). Investors with non-controlling LBC beneficial ownership up to 10% shall be
permitted under the automatic route.
● Such investments will follow applicable sectoral caps, entry routes and attendant conditions.
● Such investments shall be subject to reporting of relevant information by the investee entity to the Department for
Promotion of Industry and Internal Trade (DPIIT).
● Proposals for LBC investments in specified sectors such as manufacture of electronic capital goods, electronic
components, polysilicon and ingot-wafer shall be processed within 60 days.
● The Committee of Secretaries under the Cabinet Secretary may revise the list of specified sectors.

Southern States - FDI…

● Doubling of FDI inflows into IT sector in first half of FY26 (H1FY26) helped the southern States of Karnataka and Tamil
Nadu raise their share in total FDI even as Maharashtra and Gujarat saw their shares shrink.
● FDI into India stood at $35.2 billion in H1FY26 (April-September 2025), up 18% from $29.8 billion in the same period
last fiscal. FDI growth was driven by a twofold jump in inflow into the IT sector (categorised as Computer Software &
Hardware ) to $9 billion in H1FY26.
● With this, the sector’s share rose up to 25% of the total FDI flow.
● Maharashtra , still at the top, saw a reduction in share of total FDI in H1FY26 to 30% vs 45% ($10.6 billion). Gujarat’s
share halved to 6.4% while Karnataka with $9.4 billion and Tamil Nadu with $3.6 billion were at second and third spot.
● Change in FDI shares of States was a function of India receiving more services FDI compared with manufacturing.
● GCCs and new-age technology firms were concentrated in the Southern states.
● Sectorally, the Services sector and non-conventional energy saw a decline in the FDI inflows.
● Singapore led with $12 billion accounting for 34% of total FDI.
● The U.S. and Mauritius followed with $6.6 billion and $3.5 billion respectively.

PN 3

● Press Note 3 , issued in 2020 , specified that any entity of a country that shared a land border with India can invest in
the country only after securing Government approval.
● Earlier, this rule had applied only to entities in Bangladesh and Pakistan. The revised rules expanded the curbs to
include investments from China, Bhutan, and Nepal.
● Department for Promotion of Industry and Internal Trade (DPIIT) handles it.
● Budget announcement regarding the person’s residence outside India ; the route that was earlier available only to NRIs
and OCIs, the portfolio investment scheme route has been liberalised and that route is now available to all persons
resident outside India.
● Government relaxed Press Note 3 (2020) FDI rules, allowing investments from land-bordering countries (including
China) without prior approval if the beneficial ownership is below 10% in select non-strategic manufacturing sectors.
● Automatic Route Eligibility: Investments from land-bordering countries (LBCs) under 10% beneficial ownership in
select manufacturing sectors (e.g., electronic components, solar components, capital goods) no longer require prior
government approval.
● Threshold Criteria: The 10% threshold applies to the total combined shareholding of multiple investors from LBCs, not
just individual stake. Focus Sectors: Relaxation primarily applies to manufacturing, aimed at boosting "Make in India"
and reducing dependency in critical supply chains.
● Exceptions (Approval Required): Investments over 10%, those resulting in change of control, or any investments in
strategic sectors (semiconductors, defense, etc.) still require mandatory, strict government approval.
● Beneficial Ownership Test: The policy aligns with Prevention of Money Laundering (PML) Rules.

FPIs Withdraw…

Why in news: FPIs withdrew ₹23,885 crore from Indian stocks in 2025 , marking three consecutive months of net
outflows , according to NSDL data.
● FPIs have been withdrawing funds from the Indian stock market intermittently since 2024 due to to tariff
uncertainties, weak corporate earnings, high valuations, and rupee depreciation, which reduces dollar returns.
● India’s share in these funds was 21% in 2024 , but funds are now rotating towards China.
● China’s allocation increased to 28.8%, marking a reversal in global emerging market investment trends.
● Analysts predict continued volatility in FPI flows due to the H1-B visa fee hike, 100% U.S. tariff on branded
pharmaceuticals, and increased Chinese investments in AI.
● On a PE basis , Indian markets remain relatively expensive compared to global peers. PE ratio , which measures
whether a stock’s price justifies its earnings, shows Indian stocks trading at 22 times their earnings.
● Over the past year, Indian market returns have been weak , while other global markets performed better.
● Total foreign investment (portfolio + direct) as a share of GDP fell to a 25-year low in 2024–25.
● Weak private capital expenditure and slowing household incomes have reduced private demand and lending growth.
World Bank’s World Development Report 2024 stressed the need for sweeping institutional reforms.

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4th Largest Economy…

Why in news: India overtook Japan as 4th largest economy in the world with a nominal GDP of USD 4 trillion.
(US>China>Germany>India). India is also the world’s fastest-growing major economy.
● As per IMF’s April World Economic Outlook , India’s GDP is $4.19 trillion, marginally ahead of Japan. Only the US,
China, and Germany are now ahead of India; India aims to become the 3rd largest economy in 2.5–3 years.
● India’s per capita income has doubled from $1,438 in 2013-14 to $2,880 in 2025, per IMF. GDP per capita is still 12
times lower than Japan’s. Poland’s GDP is 4 times smaller than India’s, yet its GDP per capita is 9 times higher.
● At current rates, $1 = ₹85.69 , India’s nominal GDP is converted to USD for global ranking. As per this method, India
became the 5th largest economy in 2021 , projected to be 4th in 2025 and 3rd in 2028. Exchange rate fluctuations
hinder stable comparisons over time. This method ignores differences in purchasing power across countries.
Purchasing Power Parity (PPP) Method
● PPP exchange rates equalise the cost of a typical basket of goods across countries. Using PPP, India’s GDP in 2024
was only 1.8 times smaller than the U.S., compared to 7.5 times with market rates.
● India became 3rd largest economy by PPP in 2009. PPP-based comparisons can inflate GDP in poorer nations due to
lower wages-prices. A large informal sector, underemployment, and unpaid female labour also skew PPP figures.
Per Capita GDP Reality Check
● India’s per capita GDP (2024) was $2,711, placing it in the lower-middle-income group. Sri Lanka and Bhutan had
higher per capita GDPs at $4,325 and $3,913 respectively.
● India’s global per capita GDP rank in 2024 was 144th (market rate) and 127th (PPP) among 196 countries.
● 45% of India’s workforce remained in agriculture. The share of wage and salaried workers in formal jobs was 23.9%.
Gross enrolment rate in higher education was 32.7%. Life expectancy in 2023 was 72 years in India. IMR in 2023 was
24.5 in India. India’s HDI stood at 0.685 in 2023, indicating ‘medium development’.
● Viksit Bharat @ 2047 paper envisions India as a USD 30 trillion economy and a high-income nation (defined as >
$14,005 per capita income by World Bank). Six strategic building blocks under the Viksit Bharat plan:
Macro-Economic Goals, Empowered Citizens, Sustainable Economy, Technology Leadership, Global Leadership
(Vishwa Bandhu), and Enabling Governance, Security, Justice.

World Bank Income Classification…

Why in news: World Bank’s income classification system groups countries into four categories based on GNI per
capita : low, lower-middle, upper-middle, and high income.
● GNI per capita = average income of residents including income earned abroad. Reported in local currencies,
converted to U.S. dollars via exchange rates. Low income : $1,135 or less, Lower-middle income : $1,136 – $4,495,
Upper-middle income : $4,496 – $13,935, High income : More than $13,935 (2024).
● Introduced in late 1980s , aligned with World Bank lending policies.
● Countries move between groups if GNI per capita crosses a threshold, due to : Real income growth or decline,
Exchange rate shifts, Population updates.
● 2004 : 37% lived in low-income countries. 2024 : less than 10% in low-income , 35% in upper-middle income.

CPI Inflation…

Why in news: Retail inflation fell to more than 8-year low of 1.54% in September (.25% in October) due to falling food
and fuel prices , according to official data. The rate is below the Reserve Bank of India’s lower comfort bound of 2%.
● Consistently low inflation indicates that supply is comfortably outstripping demand. The current inflation rate is too
low, breaching the lower bound of the flexible inflation targeting regime, especially if gold is excluded.
● Low inflation would squeeze profit margins and increase the real value of debt and interest rates for the private
sector. Inflation has been below the 4% target for the last nine months , averaging 2.3%.
● What is needed is a sustained increase in real wages , which requires the private sector to take the lead.
● RBI can support this by cutting interest rates significantly in the next Monetary Policy Committee meeting.

● Only final goods and services are included in GDP. Intermediate goods that are used as inputs in the production of
other goods are excluded to avoid double counting.
● There are two main measures of GDP: Nominal GDP and Real GDP. Nominal GDP: It refers to the value of goods
and services evaluated at current market prices without factoring in inflation or deflation. Real GDP: An
inflation-adjusted measure that reflects both the value and quantity of goods and services produced by an
economy in a given year.
● GDP is measured using three major approaches: Expenditure , Income , and Product.
○ Expenditure approach sums up consumption (C), investment (I), government spending (G), net exports (X-M).
○ Income approach totals income from wages, self-employment, rents, corporate profits, net interest, and adds net
indirect taxes, depreciation, statistical discrepancy, and net ROW payments.
○ Product approach or value-added method adds market value of final goods and services, excluding intermediates.
● India’s GDP is estimated by CSO using two methods. One is based on economic activity (at factor cost, this does
not include taxes), and the second is on expenditure (at market prices, this includes taxes).
● OECD brings economic outlook report.

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● Core inflation (non-food, non-fuel items). CPI inflation reflects the rate of inflation faced by consumers, distinct from
WPI. As per MoSPI , CPI measures changes in prices of a fixed basket of 299 goods and services.
● Separate indices are constructed for rural and urban consumers, apart from an all-India aggregate index.
● Base year for the current CPI series is 2012 , with a base index value of 100.
● CPI has six main components : Food & beverages, Pan/tobacco/intoxicants, Clothing & footwear, Housing, Fuel & light,
and Miscellaneous (services).
● Food articles carry the highest weight—45% —in the total CPI index. Miscellaneous services component is the
second-largest category in CPI. Within food, cereals have the highest sub-weight at 9.67% of the total index.
● A rise in prices of food items like cereals, vegetables, milk, and pulses has the largest impact on CPI inflation. Food has
high weightage in CPI because Indian consumers spend a significant portion of income on food needs.

MoSPI CPI Proposals…

● Monthly rent data collection will now be done in both rural and urban areas,
instead of the current practice of collecting it every 6 months only in urban.
● Government and employer-provided accommodations will be excluded from
housing index because they do not reflect actual rental market transactions.
● In the current CPI , housing has a weight of 21.67% in urban areas and 10.07% at
the all-India level. The new housing index will expaned sample coverage by
collecting rent data from all selected dwellings every month, instead of only
one-sixth of the sample.
● For the CPI revision , 2024 has been selected as the new base year , with item
baskets and weightages to be determined from HCES 2023–24.

Govt. Unveils New CPI Series…

● MoSPI released CPI data based on a new series with 2024 as base year.
● The total number of items covered under the new series has increased to 358 from 299. Goods covered increased to
308 from 259, and the number of services has gone up to 50 from 40.
● The updated CPI series gives new weights to goods and services based on HCES 2023-24.
● Consumption behaviour , market structures, and compositions of household expenditure have evolved. New CPI
structure reflects the changes & collects data from more rural and urban sources across the country.
● CPI-based inflation is primary indicator for RBI to help guide it in decisions such as interest rates.
● The adoption of computer-assisted price collection in the new series has reduced manual errors and allowed
real-time checks , improving the quality and timeliness of price data.
● In the new base year , the CPI draws more on official data from government sources, railfares, postal charges, fuel
prices, and items sold through the public distribution system.

Flexible Inflation Targeting…

● The present Flexible Inflation Targeting
framework in India (4% (+/-) 2% ) is ending
in March 2026 and is under review. The RBI
has released a discussion paper seeking
views on key issues.
● High inflation is a regressive consumption
tax that affects poorer households more
disproportionately , hurts savings and
misdirects investments.
● Since dismantling automatic monetisation
(1994) , RBI gained functional autonomy in
monetary policy. In 2016 , India adopted the FIT framework , giving institutional autonomy.
What to Target: Headline or Core Inflation
● If the objective is to promote savings, investments and protect the poor , headline inflation should be targeted.
● The assumption that ‘food inflation’ is only due to supply shocks is not necessarily true. Past episodes show food
inflation under expansionary monetary policy rises more than under contractionary conditions.

● Food inflation in India refers to rate at which prices of food items increase over a period of time. As inflation rises ,
each unit of currency can buy fewer goods and services.
● Favourable soil moisture , replenished groundwater , and higher reservoir levels from abundant rainfall supported
agriculture. The effects of the monsoon were best seen in wheat production and lower inflation.
● In India, food inflation is commonly measured using price indices , notably CPI for food.
● Inflation formula : ((CPI x+1 – CPI x )/CPI x ) × 100. ( CPI x is the value of CPI in the base year x).
● A base year is the first year of a series in an economic or financial index , typically set at 100.
● New base years are introduced periodically to keep data current.
● A base year is used for comparison in measuring business activity or economic indices.

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● When aggregate demand does not change, food inflation only causes relative price changes.
Acceptable Level of Inflation
● Phillips Curve studies argued growth–inflation trade-off.
● Low inflation may facilitate growth in short run, but high inflation hurts growth → threshold inflation concept.
● Data show that beyond 6% inflation , growth rate declines sharply.
● Historically, high inflation (1970s–80s) resulted from monetisation of fiscal deficit.

IMF - National Accounts Statistics (NAS)…

● IMF’s annual review has given India’s NAS including GDP and GVA a grade of ‘C’ , the second-lowest rating.
● This grade means the data available “have some shortcomings that somewhat hamper surveillance”.
● The IMF noted that national accounts data are available with adequate frequency and timeliness and provide broadly
adequate granularity. However, methodological weaknesses somewhat hamper surveillance , warranting an overall
sectoral rating of C for national accounts.
● Across all data categories, India received a grade ‘B’ ; the four grades are A, B, C, and D.
● IMF highlighted an outdated base year of 2011-12 and use of wholesale price indices as deflators due to lack of
producer price indices. Pointed discrepancies between production and expenditure approaches of measuring GDP.
● 2011–12 series included granular data from India’s corporate sector through the MCA-21 database, replacing the
Annual Survey of Industries. Proposed inclusion of GST data in GDP estimation in next year’s series is welcome.
● Need to enhance the coverage of expenditure approach data and informal sector. India has historically used income
approach to measure GDP, but also provides an estimate based on the expenditure approach. Due to differing data
sources and their coverage, 2 estimates of GDP often differ , attracting criticism.

GDP Growth…

● Data released by the MoSPI. The sharply higher-than-expected GDP came on the back of a very low deflator.
● The lower nominal GDP growth would make it more difficult for the government to achieve its fiscal deficit target of
4.4% , which had been pegged to a nominal growth of 10.1%.
● There has been no upswing in Gross Fixed Capital Formation , and high GDP growth rates are not sustainable without
renewed momentum in private investment.
● The unrealistically low GDP deflator , implying inflation of only 0.5% , is at complete variance with the experience of
households facing crushing price rise.
● Outdated base year and high weightage of food in CPI have prevented India from accurately capturing price
movements , impairing the RBI’s monetary policy.
● The biggest issue with national accounts statistics is the inability to accurately capture the informal sector because it
consists of unregistered and cash-based entities.
● Services sector , contributing 60% of GDP , grew by 9.2%.

IMF’s Rating
● IMF’s ratings range from A to D. An A rating is given when the data is adequate for IMF surveillance.
● B is used for data that has “some” shortcomings but is “broadly adequate”.
● C rating is for data with “some” shortcomings which “somewhat hamper surveillance”.
● D rating is used when the data has “serious shortcomings that significantly hamper surveillance”.
● Set up in 1945 , the IMF works to achieve sustainable growth and prosperity for all of its 191 member countries. It
does so by supporting economic policies that promote financial stability and monetary cooperation , which are
essential to increase productivity, job creation, and economic well-being.
GDP
● Only final goods and services are included in GDP. Intermediate goods are those goods which are used as inputs in
the production of other goods are excluded to avoid double counting.
● Nominal GDP : It refers to the value of goods and services evaluated at current market prices without factoring in
inflation or deflation. Real GDP : An inflation-adjusted measure that reflects both the value and quantity of goods
and services produced by an economy in a given year.
Annual Survey of Industries
● Primary source of industrial statistics. By NSO under MoSPI, as per Collection of Statistics (Amendment) Act, 2017.
● Coverage Registered factories: Units with ≥10 workers (with power) or ≥20 workers (without power) under the
Factories Act, 1948. Bidi & cigar units: Registered under the Bidi & Cigar Workers Act, 1966. Electricity units: Not
registered with the Central Electricity Authority (CEA). Large establishments (BRE): Units with ≥100 employees in
State Business Registers. Sectors covered: Manufacturing, repair services, gas & water supply, and cold storage.

● GDP Deflator is the "ultimate" inflation gauge that shows how much the prices of everything produced in a country
have risen. CPI (Retail Inflation) only tracks a "basket" of goods consumers buy (like milk, rent, and fuel). GDP
Deflator tracks every single thing produced in the economy—including machinery, bridges, exports, and
government services. GDP Deflator = (Nominal GDP/Real GDP)*100.
● GFCF is a measure of the total investment made in an economy toward "fixed assets" i.e. buildings, infra etc. High
GFCF indicates that businesses and the government are confident about the future. In India, GFCF has been the
"heavy lifter" of GDP, currently hovering around 34-35% of GDP.

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New Base Year…

Why in news: MoSPI is revising the base year for GDP, IIP, and CPI as part of a broader data indicator expansion.
● The new GDP series will be released in 2026, using FY 2022-23 as the base year.
● For IIP , the revised base is tentatively 2022-23 , and the new series will be published from 2026-27.
● For CPI , the new base year will be 2024 , with data derived from the HCES 2023-24. The new CPI series will be
released from Q1 of 2026 , based on updated item basket and weightage. Initially, HCES 2022-23 was to be used for
CPI weights, but now the latest HCES 2023-24 data will be used. MoSPI will source data from online platforms
(airfare, rail fare, OTT services) and administrative records for petrol, diesel, LPG prices. MoSPI is also exploring
scanner data and web scraping to improve accuracy, efficiency, and comprehensiveness of price data.
● GDP calculation will now include GST data, UPI transactions, and E-Vahan portal data in addition to traditional
sources like RBI, CGA, and MCA-21. NSO is using GSTN data to conduct the new Annual Survey of Service Sector
Enterprises (ASSSE) , a first in the NSS ecosystem.
● The next HCES will be held in 2027-28 and will now occur every three years instead of every five.
● MoSPI launched the National Household Travel Survey (NHTS) and Domestic Tourism Expenditure Survey (DTES).
The NHTS will assess origin-destination patterns, mode choice factors, and price elasticity of travel demand. DTES will
capture data on tourism spending, trip purpose, transport mode, accommodation, destination etc.

New GDP…

● The new series of national accounts data will incorporate several methodological and statistical upgrades that will
make GDP and GVA data more accurate. These upgrades include better methodologies, and the inclusion of new data
sets, such as GST data. Base year will be updated from 2011-12 to 2022-23.
● The activity-wise revenue share for a company is being used to calculate the value added in each business activity.
New series will also include value of housing services provided by governments to their employees.
● For households, the new series will use the Annual Survey of Unincorporated Sector Enterprises (ASUSE) and PLFS on
an annual basis instead of extrapolating data as was done in the 2011-12 series.
● PFCE will also be measured in a more granular manner through the enhanced use of Household Consumer
Expenditure Surveys and direct estimation based on production and other data sources.
● The new series will also include new data sources and will use existing sources better.
● GST data will be used to better estimate regional output of private corporations. GST data will also be used to identify
active private companies to improve accuracy of estimating value added by non-reporting companies.
● The new series will use the Statistical Table Related to Banks in India (STRBI) published by RBI to estimate the
activity of both public sector banks as well as private sector banks.

Revised GDP and GVA…

● The recently released GDP series with 2022-23 as the base year acquired considerable significance. The release of
the revised National Accounts Statistics (NAS) was eagerly awaited as it was issued after 11 years.
Key Methodological Improvements
● Several methodological improvements and new data sources for greater robustness.
● Adoption of the double-deflator approach to ascertain the real value added of India’s production.
● Allocation of multi-sector company output proportionately improving sectoral data accuracy.
● Household data to be obtained from Annual Survey of Unincorporated Sector Enterprises (ASUSE) and Periodic
Labour Force Survey (PLFS) on an annual basis.
● Use of Goods and Services Tax (GST) data as a major data source.
● New methods of estimation for agricultural sector and informal sector.
GDP and base year revision
● Annual gross domestic product (GDP) is the sum of the final value of all goods and services produced during a
year, net of material inputs. It is the most widely used measure of a country’s economic size.
● GDP or gross value added (GVA) is an estimate prepared using a wide range of data on physical outputs and their
prices.

● ICOR (Incremental Capital Output Ratio) tells how much extra investment is needed to produce one extra unit of
output. A lower ICOR means investment turns into growth more efficiently. While the GFCFR does not fluctuate too
much, the ICOR is very volatile. The probable reason is that ICOR is not estimated independently and is derived
from dividing the real GFCFR by real GDP growth rate. Technology and management ultimately determine ICOR.
● Hindu Growth Rate: According to The New Oxford Companion to Economics in India, economist Raj Krishna coined
the expression as “a polemical device” intended to draw attention to the meagre 3.5 per cent growth rate
experienced by India over the long run.

A base year is the first year in an economic or financial index, typically set to a level of 100. Base years are updated
periodically to keep the index data current and relevant. A base year enables comparison in measuring business
activity or economic indices. Any year can serve as a base year, but analysts usually choose a recent year. For
example, to calculate inflation from 2016 to 2024, 2016 is used as the base year. A base year also serves as a starting
point for growth measurement or same-store sales comparisons.

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● Estimates broadly follow the global templates of the UN System of National Accounts (UNSNA).
● Latest revision with base year 2022-23 follows its 2025 edition. Roughly every five to ten years , the base year for
National Accounts Statistics (NAS) is revised.
● Includes GDP estimates and aggregates such as national savings , consumption , and investment.
● Revision accounts for changes in what an economy produces and its prices. Revising the NAS is undertaken
periodically by the National Statistical Office (NSO).
Key findings of new GDP series
● GDP absolute size has shrunk by about 3-4% in the new series. Annual growth rates of new and old series not very
different ( plus or minus one percentage point ).
● GDP shares of agriculture and industry have increased. Share of services has declined.
● Share of manufacturing increased to 14.7% from 14.3%. Absolute size of manufacturing sector shrunk by about
1.5-1.6%.
● Share of non-financial private corporate sector (PCS) declined from 35.4% to 33.9% (2022-23). Drop steeper for
2023-24 with gap of 3.4 percentage points.
● Household or informal sector share increased marginally. Increase of 0.7 percentage points (2022-23) and 2.7
percentage points (2023-24). Rise partly or entirely on account of agriculture.

Income Survey…

● The Household Income Survey, 2026 , India’s first-ever comprehensive income survey , aims to provide a clear picture
of how Indian households are earning, spending, and coping with economic changes.
● To capture direct household income data , offering insights into income distribution and class dynamics.
● Existing tools like the PLFS , HCES , and the RBI’s Consumer Confidence Survey have provided only partial or indirect
income insights. PLFS focuses on labour market earnings, while HCES uses consumption patterns as a proxy for
income. The new survey is designed to measure income directly.
Scope and Coverage
● The survey will record information on social group, religion, and occupation , along with details of agricultural and
non-agricultural activities. It includes data on land ownership, dwelling type and size, loans, and property holdings.
○ Regular salaries , including allowances, overtime pay, bonuses, stock options, and severance pay.
○ Casual workers’ earnings , including days worked, average daily wages, and tips.
○ Self-employed income , including type, quantity, and value of crops or goods sold.
○ Non-agricultural business receipts and sector details.
● The survey will help identify income disparities across social and occupational groups. It will track loan repayments as
a share of income, crucial for understanding urban EMI-based spending patterns.
● The survey will record pension payments , family transfers (like alimony or child support), and remittances.
● For the first time , it will capture funds received through State-specific and Union schemes.

HCES…

● Household Consumption Expenditure Survey by MoS&PI captures spending pattern of households across various
consumption categories. Conducted every 5 years , HCES provides estimates of Monthly Per Capita Expenditure
(MPCE) for both rural and urban populations, covering a wide range of goods and services.
● Decline in MPCE share on food and beverages for both urban and rural areas confirms Engel’s Law , which states that
as real income rises, the proportion of income spent on food declines, even if absolute expenditure increases.
● Further, a fall in expenditure on cereals , alongside higher spending on fruits , eggs, fish, and processed foods , signals
a shift from staple-heavy diets to more varied, protein-rich diets.
● The reduction in per capita fuel spending reflects policy successes, such as Saubhagya (rural electrification) and PM
Ujjwala Yojana (LPG access).
● The urban housing rent share rose significantly, aligning with urbanisation , rental stress , and migration.

Household Stability…

● Households are saving much less and borrowing more, especially among vulnerable and low-income groups.
● RBI comes up with Financial Stability Report and Annual Reports.
● Household debt stood at 41.3% of GDP as of March 2025 , far lower than levels observed in many emerging markets
peers, including China , Malaysia , and Thailand. Additionally, the increase has been gradual rather than abrupt.
● Debt-to-GDP ratios demonstrate the extent of household borrowing in relation to the economy, but they do not
explain why households are taking on debt or whether they will be able to repay it over time.
● Financial liabilities accounted for 41.3% of GDP in March 2025 , while gross household financial assets stood at
106.6% of GDP. There is no indication that liabilities have surpassed assets , and households continue to be net
holders of financial wealth. It is simple to conclude that household finances are sound.
● Although households continue to save , a growing portion of that savings is being offset by new borrowing.
● Committed expenditures — interest payments , pensions , and salaries — now account for between 30 and 32% of
State revenue receipts , leaving little space for income support or countercyclical transfers.
● Private consumption accounts for close to 60% of GDP , making household spending economy’s primary stabiliser.

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Household Finance Surveys…

Why in news: MoSPI will conduct two key economic surveys — the All-India Debt and Investment Survey (AIDIS) and
the Situation Assessment Survey (SAS) of Agricultural Households between 2026 and 2027.
● The AIDIS is aimed at measuring household indebtedness and asset ownership across rural and urban areas.
● SAS of Agricultural Households launched in 2003 to assess the economic conditions of farming communities.
● The AIDIS findings are crucial for shaping national accounts, assessing inequality in asset distribution, understanding
credit markets, and informing policies of the RBI, MoSPI, and other government institutions.
● The SAS survey gathers data on agricultural household income and expenditure, indebtedness and credit access, land
and livestock ownership, crop and livestock production etc. The findings are used by the Ministry of Agriculture and
Farmers Welfare, NITI Aayog, researchers, and financial institutions.

MSME Facts
Why in news: MSMEs contributed nearly 30% to GDP in 2024 , with the target of 35% for the current year.
● Women-owned MSMEs constitute 20% of all registered MSMEs, yet contribute only 10% of total turnover and receive
just 11–15% of total investment.
● Under Pradhan Mantri MUDRA Yojana (PMMY) , 64% of loan accounts are owned by women.
● Udyam Assist Portal was launched to bring Informal Micro-Enterprises into the priority sector lending net through
formal recognition. In 2024, 1.86 crore IMEs were registered, 70.5% owned by women.
● MSMEs account for 35.4% of manufacturing , 48.58% of exports , and 31.1% of GDP in the country.

MSMEs & QCOs…

Why in news: In the last three years, the Bureau of Indian Standards (BIS) has issued 84 QCOs based on the
recommendations of various ministries and departments, which is almost 45% of all 187 QCOs administered by it.
● QCOs are legal orders issued by departments or ministries under the BIS Act , which make it mandatory for domestic
and imported products to conform with certain quality standards. The products cannot be sold unless they get a
certification from the BIS.
● MSMEs have complained to the government that the QCOs are akin to non-tariff barriers and have raised cost.

Loans to MSMEs…

● RBI asked banks not to insist on collateral security for loans up to ₹20 lakh extended to units in MSME financed under
the Prime Minister Employment Generation Programme (PMEGP) administered by KVIC.
● RBI said so in its Lending to MSME Sector (Amendment) Directions, 2026.
● Banks may, on the basis of good track record and financial position of the MSE units , increase the limit to dispense
with the collateral requirement for loans up to ₹25 lakh.
● Accepting gold and silver as collateral pledged voluntarily by borrowers for loans sanctioned by the banks up to the
collateral-free limit will not be construed as a violation of the above mandate.
● It has been decided to enhance the collateral-free loans limit to MSEs from ₹10 lakh to ₹20 lakh.

CHAKRA…

● SBI unveiled ‘CHAKRA’ – Centre of Excellence for financing sunrise sectors critical to economic development.
● The Centre will focus on renewable energy , advanced cell chemistry & battery storage, electric mobility, green
hydrogen, semiconductor, decarbonisation, smart infrastructure and data centre infrastructure.

Mudra Yojna (Last Year’s Update)
● Limit of Mudra loans will be enhanced to ₹20 lakh from current ₹10 lakh for those entrepreneurs who have availed
and successfully repaid previous loans under ‘ Tarun category’.
● Loans for amounts up to ₹20 lakh will be provided under Credit Guarantee Fund for Micro Units (CGFMU).
● Launched: In April 2015 to promote micro and small enterprises. Loans are offered by Commercial Banks, RRBs,
Small Finance Banks, MFIs, and NBFCs. Beneficiaries: Entrepreneurs, small vendors, artisans, women, and
SC/ST/OBC businesses. Regulator: It is under the Ministry of Finance.
● Loans are refinanced by MUDRA Ltd., a subsidiary of SIDBI. Categories of MUDRA Loans: Shishu: Loans up to
₹50,000 – for startups and early-stage businesses. Kishor: Loans from ₹50,001 to ₹5 lakh – for growing
enterprises. Tarun: Loans from ₹5 lakh to ₹10 lakh – for well-established businesses ready to scale.
● (RRB: The "One State, One RRB" policy officially came into effect on May 1, 2025. This reform, initiated by the
Department of Financial Services (DFS) under the Ministry of Finance, represents the fourth phase of
consolidation for Regional Rural Banks (RRBs) in India.

● In India, BIS formulates Indian Standards for different products. BIS certification scheme is voluntary in nature , but
for several products, compliance to Indian Standards is made compulsory by the Central Government.
● This is done under considerations of quality imports, public interest, protection of human, animal or plant health,
safety of environment, prevention of unfair trade practices, and national security.
● BIS Act, 2016 empowers the government to mandate standardisation through compulsory certification.

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Taxpayer Base…

● Time-series data released by the IT Department indicates tax-base expansion.
● Taxpayers , defined as persons who either filed a return of income or in whose case tax was deducted at source,
increased from 5.26 crore to 12.13 crore. Individual taxpayers remain the drivers of expansion & rose from 4.96 crore
in 2013-14 to 11.61 crore in 2024-25.
● In absolute terms , the non-individual taxpayer base increased but growth has been more moderate than among
individuals, but also more stable.
● There is improvement in tax administration efficiency as cost of collecting direct taxes fell from 1.36% to 0.41% (2000
to 2024). The temporary rise in the cost ratio around 2020-21 reflects pandemic-related disruptions.
● Tax administration has relied on digital filing systems , pre-filled returns, faceless assessments, and expanded
third-party information reporting. These measures have reduced compliance frictions and enabled the system to
manage a larger taxpayer base without increase in administrative resources.

Lower Beedi Taxes…

● While most tobacco products are taxed at the highest GST slab of 40% , beedis are taxed at just 18%.
● Beedis are no less lethal than cigarettes. Cancer incidence is often higher among beedi smokers.
● Tobacco use in India is concentrated among men. As of 2019–21, about 13.3% of men smoked cigarettes, while 7.8%
smoked beedis. Among women, smoking rates were around 0.1% or lower.
● Beedi smoking was almost twice as prevalent in rural areas (8.3%) compared to urban areas (4.5%).
● While beedi smokers represent a relatively smaller share of the population than cigarette smokers , their frequency of
consumption is significantly higher.
● One puff of a cigarette infuses bloodstream with nicotine ; acutely addictive and carcinogenic chemical in tobacco.
● Nicotine binds to the brain’s cellular receptors , sparking the dopaminergic reward system to keep smokers hooked.
And then there are additives in cigarettes, such as menthol , which gets nicotine to linger longer in the body, affecting
the central nervous system.
● India happens to be the world’s second largest consumer and producer of tobacco.
● The additional excise duty , starting February 1 , pushed up the price of cigarettes by 15–30% yet still fell short of the
WHO’s benchmark on how much taxes should make up the retail price.
● Taxes on cigarettes in India account for 53% of the retail price. That is well below the 75% benchmark recommended
by WHO. WHO Framework Convention on Tobacco Control (WHO FCTC) COP-11 was held in Geneva, Switzerland.

National Monetisation Pipeline (NMP) 2.0…

● The government’s focus has shifted from disinvestment to asset monetisation and dividend extraction , highlighted
by the launch of the National Monetisation Pipeline (NMP) 2.0.
Shift in Disinvestment Policy
● The Public Sector Enterprises Policy (2021) stated the government would exit non-strategic sectors and retain
minimum presence in strategic sectors.
● Revenue from disinvestment has been falling every year except a surge in 2022-23.
● Policy changes such as removing a separate heading for disinvestment in the Budget indicate a shift towards better
utilisation of existing assets.
Reasons for Slow Disinvestment
● Private sector reluctance due to large employee headcounts and loss-making assets in PSEs.
● Disinvestment proceeds now classified under Miscellaneous Capital Receipts.
● Government no longer sets annual disinvestment targets.
Dividend-Focused Strategy
● DIPAM asked CPSEs to follow a consistent dividend policy. Emphasis on paying higher dividends based on
profitability, capex needs and reserves.
● Revised Guidelines on Capital Restructuring (2024) aimed at maximising returns and improving efficiency.
● Dividend receipts increased from ₹39,750 crore (2020-21) to ₹74,128.6 crore (2024-25). Stands at ₹59,730.6
crore (2025-26) so far.
National Monetisation Pipeline
● NMP (2021) aimed to lease brownfield assets to the private sector without transfer of ownership.
● Target of ₹6 lakh crore (2021-22 to 2024-25) with about 90% achieved.
Policy Rationale
● Strategic disinvestment based on the principle that government should minimise presence in sectors where private
sector is mature. Aim to maximise economic potential through strategic investors.

Economic Stabilisation Fund…

● Amid the $100-per-barrel oil shock and fears of energy shortage and supply chain disruptions due to the West
Asia conflict , the Centre allocated ₹57,381 crore for an Economic Stabilisation Fund.
● The allocation was announced by Finance Minister. The fund would provide fiscal space to address global
headwinds.

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● The Centre would meet its fiscal deficit target for 2025-26 despite the fresh allocations. Policy initiatives
undertaken post COVID-19 helped the economy recover well. These initiatives helped strengthen the
macroeconomic framework.
● This enabled India to absorb economic shocks without deviating from the fiscal consolidation road map.
● The Economic Stabilisation Fund will provide fiscal headroom to respond to global headwinds. The fund will help
address supply chain disruptions and unexpected shocks to sub-sectors. It will also address events with significant
fiscal implications.

Trade…

Export Concentration…

Why in news: India’s trade deficit contracted by over 54% to $9.9 billion in 2025, compared to $21.7 billion in 2024.
● Driven by merchandise exports, strong services exports, and a decline in merchandise imports.
● As per the RBI, India’s total exports (Merchandise + Services) have reached $824.9 billion in 2024-25.
India’s Export Centralisation
● RBI Handbook of Statistics on Indian States 2024-25 revealed top 5 exporters : Maharashtra, Gujarat, Tamil Nadu,
Karnataka, Uttar Pradesh command nearly 70% of the national export basket.
● Firms are increasingly benefitting from spatial clustering , not expanding to newer regions.
● 5 years ago , the top five States contributed about 65% of national exports; this has risen to nearly 70%.
● The Herfindahl-Hirschman Index (HHI) of India’s export geography is rising , indicating increasing concentration.
● UNCTAD 2023 estimates show the top 10 global exporters control around 55% of world merchandise trade.
● PLFS data shows manufacturing employment share stuck at 11.6%–12%.
● Gujarat alone contributes over 33%. UP, Bihar, and MP together account for barely 5% of outbound trade.
● 8 northeastern States, with over 5,400 km of international borders, account for just 0.13% of national exports.
● The Prime Minister’s Economic Advisory Council and the Board of Trade have no members from the region.
● The government introduced The Trade Connect ePlatform as a single digital window for exporters.
● The Trade Intelligence and Analytics (TIA) portal was launched to provide real-time market data.
India-Myanmar Border and ASEAN Linkages
● Since the 2021 coup in Myanmar, trade across the border has collapsed. Zokhawthar (Mizoram) and Moreh (Manipur)
have become securitised outposts instead of trade hubs.

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Fiscal Deficit…

● India’s trade balance stood at a deficit of about $4 billion in February compared with a surplus of $2.7 billion a year
earlier. The deficit was due to merchandise exports staying flat while imports of both merchandise and services
grew significantly.
● As per the Ministry of Commerce and Industry data, total exports , including merchandise and services , grew 11% to
$76.1 billion.
● Total imports rose 21.7% to $80.1 billion. Merchandise exports were largely flat at $36.6 billion in February
compared with $36.9 billion a year earlier. Merchandise imports climbed 24.2% to $63.7 billion.
● The situation may worsen in March due to the West Asia crisis. Merchandise exports have been doing well despite
challenges. Exports will likely see a downward trend because of logistical challenges.
● In February , services exports climbed almost 25% to $39.5 billion. Services imports grew almost 13% to $16.4
billion.

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Gold…

Why in news: India has attracted over $1 trillion in gross FDI since 2000. In 2024 , global investment fell by over 11% ,
and international project finance deals dropped by 27%.
● Gold stands as the most compelling domestic asset , serving both as a store of value and a symbol of security. Indian
households collectively hold around 25,000 tonnes of gold — the largest private reserve in the world.
● At current prices, this equates to $2.4 trillion , or over 55% of India’s GDP (FY26 terms) — a value greater than all
bank credit combined. Despite this, India remains a major gold importer , meeting 87% of domestic demand , with
imports forming 8% of the total import bill.

Silver…

Why in news: DGFT has restricted the import of plain silver jewellery unless
expressly authorised. The move aims to curb misuse of India’s FTAs.
● Follows a steep rise in plain silver jewellery imports.
● Thailand accounted for bulk of imports , a 330% surge.
● DGFT (attached office of the Department of Commerce, which operates
under the Ministry of Commerce and Industry) now requires importers of
plain silver to obtain a valid import authorisation from the Directorate. Step
is intended to monitor trade flows and prevent circumvention of FTA
benefits through unauthorised imports.

RoDTEP…

Why in news: GoI extended the Remission of Duties and Taxes on Exported Products scheme until March 31, 2026.
● The RoDTEP scheme , launched in 2021 , provides refunds for embedded duties, taxes, and levies not refunded under
other schemes. Earlier, the scheme was available only until February 2025.
● In May 2025 , after lobbying by exporters , the government restored RoDTEP benefits for Advance Authorisation (AA)
holders , Export-Oriented Units (EOUs) , and SEZ units.
● Textile exporters have expressed apprehension that exports will be hit with reduction of Remission of Duties and Taxes
on Exported Products ( RoDTEP ) scheme rates.
● Cotton textile exports accounts for 30% of India’s textile and clothing exports.
● Close to 58% of the exports of cotton textiles have been affected by the sudden reduction in RoDTEP rates.
● The RoDTEP scheme is only remission of the taxes and duties already paid and exporters would have calculated the
costs based on the earlier RoDTEP rates.

Export Promotion Mission…

● The Centre approved an Export Promotion Mission with an outlay of ₹25,060 crore for 2025-26 to 2030-31.
● Designed to boost India's exports by creating a unified, tech-driven framework for MSMEs, first-time exporters, and
labor-intensive sectors, focusing on finance access (NIRYAT PROTSAHAN) and non-financial support like market
access and branding (NIRYAT DISHA) to enhance global competitiveness.
● Strengthen Competitiveness: Make Indian exporters more competitive globally.
● Empower MSMEs: Provide targeted support for MSMEs, women-led enterprises, and SHGs.
● Finance Access: Improve access to affordable trade finance and credit.
● Market Diversification: Reduce reliance on single markets by exploring new ones.
● Digital Ecosystem: Create a seamless, technology-enabled platform for export support.
● Two Core Sub-Schemes: NIRYAT PROTSAHAN: Focuses on financial aspects, ensuring access to affordable trade
finance. NIRYAT DISHA: Addresses non-financial needs like quality, branding, logistics, and trade intelligence.
● Implementation: Collaborative Approach: Involves the Department of Commerce, Ministry of MSME, Ministry of
Finance, and other bodies. Offers digital assistance for compliance, certification, branding, and packaging.

India’s Pharma Future…

● 100% tariff on branded and patented pharmaceutical imports from October 1, 2025.
● Pharma exports to the U.S. alone reached close to $9 billion in fiscal 2025 — a 14.29% surge year-on-year.
● India’s $50 billion pharmaceutical sector contributes nearly 1.72% to the nation’s GDP.
● Germany ($119.85 billion) , Switzerland ($99.08 billion), and the U.S. ($90.30 billion) were lead exporters in 2023-24,
while the U.S. ($212.67 billion) in imports in 2024, Switzerland, Germany, Belgium, and China top importers.
● India, the third-largest exporter by volume. Generics dominate , with 70% of exports to the U.S. and Europe.
● $5 billion in annual imports, mainly active pharmaceutical ingredients ( API ) from China (72%) , exposes supply chain
risks. India supplies 40% of U.S. generics.
● GST : Drug and medicine rates dropped from 12% to 5% , with 36 essential items at nil, saving consumers $1.2 billion
annually. Medical device rates fell from 18% to 5% , easing $5 billion in imports.

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● Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) : Total of 16,912 Jan Aushadhi Kendras have been opened
(June 2025), with 2,110 medicines and 315 surgicals, medical consumables and devices under the scheme product
basket.

Export Promotion Mission Expansion…

● The Government introduced two new components in the Export Promotion Mission (EPM) aimed at easing and
reducing the cost of the credit-access process for exporters.
● Ministry of Commerce and Industry notified guidelines for a market access scheme under the EPM.
● 3 of the 11 schemes under the EPM have been operationalised.
● The two schemes were under the Niryat Protsahan category, which is meant to lower the cost of credit for exporters.
● Interest Subvention for Pre- and Post-Shipment Export Credit scheme will reduce the cost of export finance and
strengthens MSME liquidity, improve competitiveness and supports India’s integration into global value chains , while
ensuring fiscal prudence and compliance.
● Eligible MSME exporters can avail interest subvention on rupee export credit (pre- and post-shipment) extended by
scheduled banks , in accordance with RBI Master Directions.
● The second sub-scheme — Collateral Support for Export Credit — is aimed at giving MSME exporters the ability to
access bank credit even with limited collateral or third-party guarantees.
● The scheme would be implemented through the Credit Guarantee Fund Trust for Micro and Small Enterprises
( CGTMSE ) on a pilot basis and be applicable to export-linked working capital loans.
● Micro & small exporters would be eligible for up to 85% guarantee , while medium exporters 65% guarantee.

7 New Measures under Export Promotion Mission…

● Ministry of Commerce introduced seven additional measures under the Export Promotion Mission which is meant to
strengthen MSMEs to compete in global markets.
● Interventions would seek to address structural constraints faced by MSMEs including high cost of capital, limited
access to diversified trade finance instruments, compliance burdens in international markets, logistics disadvantages,
and barriers to market entry.
● The measures seek to enable exporters to access new markets or those with higher element of risk, through varied
risk-sharing mechanisms and credit instruments.
● Aiming to provide credit assistance to e-commerce exporters , the provisions would offer structured credit facilities
that would provide interest subvention and partial credit guarantees.
● Direct e-commerce credit facility , meant to provide working capital as an avenue for risk mitigation, would provide
support up to ₹50 lakh with 90% guarantee coverage.
● The overseas inventory credit facility would extend support of up to ₹5 crore with 75% guarantee coverage. For both,
an interest subvention of 2.75% would be available.

Credit Guarantee Scheme for Exporters (CGSE)…

● To provide 100% credit guarantee coverage of ₹20,000 crore to lenders. The scheme covers loans extended to
eligible exporters , including MSMEs.
● Coverage & Purpose: 100% guarantee coverage on additional working capital/term loans to help exporters.
● Loan Amount: Up to 20% of existing fund-based/non-fund-based working capital limits, with a maximum loan of ₹50
crore per borrower. Interest Rates: Capped at 10% p.a. for Banks/FIs and 14% p.a. for NBFCs (1% below existing facility
rates). Fees & Terms: Zero guarantee/processing fees and no prepayment penalties.
● Validity: Valid for loans sanctioned from November 19, 2025, to March 31, 2026.
● Eligibility: MSME (≥5% export turnover) and non-MSME (≥20% export turnover).

E-Commerce…

Country of Origin…

● Union Department of Consumer Affairs draft rules propose mandatory searchable and sortable filters by country of
origin for packaged commodities sold online. Proposal applies to e-commerce platforms selling imported products.
● Draft Legal Metrology (Packaged Commodities) (2nd) Amendment Rules, 2025 propose adding sub-rule (10) to Rule

The government said the move will enhance consumer empowerment and transparency in online shopping.

Dark Patterns…

Why in news: The Government has directed e-commerce platforms to conduct regular audits to identify and eliminate
dark patterns , rather than waiting for CCPA intervention.
● Dark patterns (or deceptive patterns ) are design tricks used by websites/apps to manipulate user behavior against
their intent. Example : Ads with tiny or hidden close buttons that mislead users into clicking them.
● The term was coined by UX designer Harry Brignull in 2010.

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● In 2023 , CCPA issued guidelines specifying 13 dark patterns for regulation: False urgency , Basket sneaking (Adds
products to cart without consent), Confirm shaming (Guilt-tripping users), Forced action , Nagging , Subscription
traps , Bait & switch (Advertises one product, delivers another (often inferior) etc.

Manufacturing, Skill Development and Trade…

Dutch Disease…

● High government salaries draw workers away from manufacturing. Dutch disease refers to an economic windfall
causing negative effects on sectors like manufacturing. The term was coined after the discovery of the Groningen gas
fields (1959) and its impact on Dutch manufacturing.
● Higher incomes of government employees increase demand , raise domestic prices , and under free trade boost
imports , reducing demand for domestic manufactures. The theory of induced innovation holds that labour scarcity
and high wages can drive technological and capital-biased growth.
● John Habakkuk argued that 19th-cent Britain grew faster than the U.S. due to relative scarcity of land and labour.

Self-reliant India…

Why in news: Atmanirbhar Bharat Abhiyan (2020) reinforced self-reliance with a focus on state-of-the-art value
chains and reducing import dependence in strategic areas like: Defence, electronics, semiconductors, pharmaceuticals,
and critical minerals.
● India hosts the world’s 3rd-largest startup ecosystem.
● India’s defence exports reached ₹23,622 crore (FY25) , targeting ₹50,000 crore by 2029
● Key national missions include : National Quantum Mission and India Semiconductor Mission.
● Contributing to AI growth through: Projects like Bhashini , FutureSkills Prime for training AI-skilled professionals.

SEZ Norms - Electronics…

Why in news: The Union government has notified changes to SEZ regulations for semiconductor and electronic parts
manufacturing. The changes aim to reduce the minimum plot size and allow domestic supply besides exports.
● Rule 5 of the SEZ Rules, 2006, amended: the minimum contiguous land area is reduced to 10 hectares from 50
hectares. Rule 7 amended: allows the Board of Approval to relax encumbrance-free land norms if land is mortgaged or
leased to government agencies. Rule 18 amended: SEZ units in semiconductors and electronic components can now
supply to the rest of India after paying applicable duties, not just export.
● Board of Approval approved Micron Semiconductor Technology (Sanand, Gujarat) ; Aequs (Dharwad, Karnataka).
● Semiconductors are essential to modern electronics, powering devices like phones, computers, smart TVs, and cars.
Core to technologies like AI, machine learning, automation, and digitisation.
● In 2021 , China accounted for 35% of global semiconductor production.

Quality Control Orders…

Why in news: Government will use QCOs to push Indian industry towards international competitiveness.
● All non-subsidy support will focus on land acquisition and easing regulatory hurdles. The government believes
subsidies have not been effective in boosting India’s exports.
● Discussions have emerged on providing subsidies for production of rare earth batteries due to supply crunch after
China’s export ban. QCOs mandate that products manufactured, imported, sold in India, or exported must meet
minimum quality standards set by the Bureau of Indian Standards (BIS).
● Exemptions from mandatory QCOs exist for imports used in export production under schemes like advance
authorisations, EOUs, and SEZs.

Factories (Gujarat Amendment) Ordinance…

Why in news: Gujarat amended Factories Act, 1948 to allow women to work night shifts with safety measures.

● E-Jagriti is an integrated digital platform developed by the Department of Consumer Affairs and NIC to merge
e-Daakhil, Confonet , and OCMS into one unified system to simplify access for consumers, officials, judges,
advocates, industry experts , and mediators.
● Launched on National Consumer Day 2024 (celebrated on 24th December ), alongside the ‘Jago Grahak Jago
App’ , ‘Jagriti App’ , and ‘Jagriti Dashboard’.
CCPA (Central Consumer Protection Authority)
● Constituted under Section 10(1) of Consumer Protection Act, 2019 , which came into force in 2020 , replacing 1986
Act to protect consumer rights and address unfair trade practices , false , and misleading advertisements.
● CCPA can act suo motu , or based on a complaint or direction from the central government.
● It comprises a Chief Commissioner and other Commissioners , appointed by the Central Government. Central
Government defines the qualifications, tenure, salary, and service conditions of the Commissioners.
● CCPA has an Investigation Wing headed by a Director General ; District Collectors are empowered to investigate
local consumer complaints.

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● Maximum daily working hours have been increased from 9 to 12 hours , with the weekly limit retained at 48 hours.
Factories can extend work shifts to 12 hours per day (including intervals) with workers’ written consent.
● Overtime wages will be paid at double the ordinary rate. Employers must ensure adequate lighting , CCTV
surveillance , female security personnel , and safe transportation. A minimum of 10 women must be scheduled per
night shift, and no worker can be forced to work night shifts without consent.

Employment-Linked Incentive…

Why in news: ELI scheme to support employment generation. First-time employees will get 1 month’s wage (up to
₹15,000 in 2 installments, 1st installment after 6 months of service and 2nd after 12 months, both via DBT), while
employers will get incentives for up to 2 years for generating additional jobs.
● Aims to incentivise creation of more than 3.5 crore jobs over two years.
● Employees with salaries up to ₹1 lakh will be eligible under the scheme. The government will provide incentives up to
₹3,000/month for two years for each additional employee with at least six months of sustained employment.
● In the manufacturing sector , incentives will continue for the third and fourth years.

● The EPFO will implement the scheme. A portion of the incentive will be kept in a “savings instrument of deposit
account” for a fixed period, withdrawable later.
● Formal manufacturing sector has seen a significant negative change in employment structure in recent decades.
Share of contract labour doubled from 20% (1999-2000) to 40.7% (2022-23) across industries. Contract workers
hired through third-party contractors excluded from Industrial Disputes Act 1947 safeguards.

Women - STEM…

Why in news: 43% of STEM graduates in India are women , the highest among major economies. However, only 27% of
the STEM workforce is female.
● FLFPR rose to 41.7% in 2023-24, higher in rural areas (47.6%) than urban (25.4%). Globally, only 31.5% of
researchers are women (UNESCO, 2021). Gender Budget increased from 6.8% (2024-25) to 8.8% (2025-26).
● UN Women’s WeSTEM programme with Madhya Pradesh, Gujarat , and Micron Foundation focuses on skills, mindset
change, and community engagement.

Chemical Exports…

Why in news: NITI Aayog proposed measures to nearly double India’s $44 billion chemical exports by 2030.
● Suggested developing production clusters , improving port infrastructure , and introducing a sales-linked incentive
scheme to localise production and boost exports of critical chemicals.
● In 2023 , India had a $31 billion trade deficit in chemicals and held a 3.5% share in global value chains (GVCs) ,
compared to China’s 23%. India could double its GVC share to 5-6% by 2030 by shifting from specialty chemicals.
● Called for revamping existing PCPIRs (Dahej, Paradeep, Vizag), noting Paradeep and Vizag PCPIRs are far from
completion. Plan includes developing eight high-potential clusters across 14 major and 12 minor ports in India.

PM - Random…

● Zero Defect Zero Effect (enhancing the competitiveness of MSMEs by encouraging them to produce high-quality
goods ("Zero Defect") with minimal environmental impact ("Zero Effect")).
● Country had now become the third largest start-up ecosystem in the world.
● In Azamgarh , UP , local people cleaned the Tamsa river , which crosses Ayodhya and merges with the Ganga.
● UAE is celebrating 2026 as the Year of the Family.
● PM spoke about millets in reference to efforts of farmers in Tamil Nadu’s Kallakurichi and Ramsar in Rajasthan.

SASCI…

● UT of J&K included under the Centre’s Special Assistance to States for Capital Investment (SASCI) scheme.
● SASCI is a soft loan for a period of 50 years. It will help in infrastructure development.
● Scheme was launched in FY 2020-21 to support state capital expenditure and drive economic growth.

● For EPF wage slab up to ₹10,000, an incentive of ₹1,000 will be given to the employer. For wage slab over ₹10,000
and up to ₹20,000, a benefit of ₹2,000 will be provided. For wages over ₹20,000 (up to ₹1 lakh/month), an
incentive of ₹3,000 will be given.
● EPFO-registered establishments must hire at least two additional employees (if workforce <50) or five (if
workforce ≥50) for at least six months. Payments to first-time employees under Part A will be made via DBT.
Payments to employers under Part B will be credited to their PAN-linked accounts.
● The scheme duration is two years, from August 1, 2025 to July 31, 2027.
● It is part of the Prime Minister’s Package for Employment and Skilling, with a budget 24-25 outlay of ₹2 lakh crore.

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India’s gem, jewellery industry…

● The Indian gem and jewellery industry expects major impact due to geopolitical tensions in West Asia. The war
involving U.S., Israel and Iran spreading to the Gulf Cooperation Council (GCC).
● Gem & Jewellery Export Promotion Council (GJEPC) warned of a dual shock to the supply chain.
● India is heavily dependent on the UAE for exports and raw materials. Cut and Polished Diamond (CPD) and gold
jewellery exports flow to the UAE. UAE supplies rough diamonds and bullion to India. War causing supply
disruptions and threats to raw material inflows.
● Rerouting via the Red Sea increasing freight and insurance costs.
● GCC share of India’s exports increased from 14% (FY22) to 22% (FY25) and 36% (April–December 2025).
● India’s gem and jewellery exports to GCC increased from $5.1 billion (FY22) to $8.3 billion (FY25).
● UAE and Saudi Arabia are leading importers.
● GCC share of India’s gem and jewellery imports increased to 32%.
● Imports from GCC increased from $16 billion (FY22) to $28 billion (FY25).
● GCC countries supply over 30% of India’s gem and jewellery imports.
● Dubai serves as a key diamond trading hub.
● GCC accounts for over 50% of India’s gold jewellery exports.

Bharat Audyogik Vikas Yojna (BHAVYA)…

● The Union Cabinet approved the Bharat Audyogik Vikas Yojna (BHAVYA). The scheme aims for development of
100 ‘plug-and-play’ industrial parks across the country.
● The aim is to create 100 “future ready” industrial parks integrated with the PM GatiShakti. The parks will make use
of multimodal connectivity and last-mile access.
● The parks will ensure reliability, reducing inefficiencies and enhancing productivity across sectors.
● Scheme’s duration would be six years starting 2026-27. The first phase would see 50 parks being set up.
● The minimum land need would be 100 acre , and 25 acre for industrial parks in hilly or North Eastern States. The
maximum size is 1,000 acre. The Union government will provide up to ₹1 crore per acre.
● The scheme is meant to involve State governments as well as the private sector.
● The scheme pushes for deregulation and ease of doing business. It includes streamlined approvals, effective
single-window systems, and investor-friendly reforms led by States.

GST…

GST on Online Gaming
Why in news: SC heard arguments between the government and online gaming companies on whether games of skill
(rummy, chess, bridge) become games of chance when money is involved , making them taxable under GST.
● Betting on any game — skill or chance — is gambling and thus taxable with 28% GST.
● Government insists on 28% GST on total entry amount , while companies argue for GST only on their earnings.

NITI Aayog & GST…

Why in news: 10th Governing Council Meeting of NITI Aayog.
● NITI Aayog Governing Council meets only once a year despite rules requiring meetings at least once a quarter.
● Governing Council of NITI Aayog includes the PM, CMs of all States and UTs with Legislature, Lt Governors of other
UTs, Ex-Officio Members, Vice Chairperson, Full-time Members, and Special Invitees.
● It was first constituted in 2015 and reconstituted in 2021 , embodying the spirit of cooperative federalism.
● The Council provides a platform to address inter-sectoral, inter-departmental, and federal issues for national
development. Governing Council chaired by the Prime Minister.
● GST registration is mandatory if all-India aggregate turnover is above ₹40 lakh for supply of goods (₹20 lakh in
Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand).
● For supply of services or mixed supplies , GST registration is mandatory if turnover is above ₹20 lakh (₹10 lakh in
Manipur, Mizoram, Nagaland, Tripura).

Tax Contribution vs Devolutions…

● Maharashtra had the biggest negative difference , where the share in taxes collected exceeded the share in
devolution, contributing 36.1% of total revenue but receiving 6.65% of the Centre’s tax devolution.
● Other States with negative differences include Karnataka (8.8 percentage points), Haryana (4.3 pps), Gujarat (3.5
pps), Tamil Nadu (2.95 pps), Telangana (1.4 pps) and Goa (0.04 pps).
● On the other hand, Bihar’s share in devolution exceeded its contribution to total taxes by 8 pps , Madhya Pradesh’s by
5.5 pps , and Rajasthan by 3.55 pps.

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Tobacco Control…

Why in news: Since its introduction in 2017 , GST replaced multiple indirect taxes, establishing “One Nation, One Tax”.
● 28.6% of adults and 8.5% of school-age children (13–15 years) in India consume tobacco.
● Post-GST, there have been no significant tax hikes on tobacco. Overall tax burden remains below WHO’s 75%
recommendation : 22% for bidis , 54% for cigarettes , 65% for smokeless tobacco.
● GST relies heavily on ad valorem taxes , which are less effective in curbing harmful product consumption than specific
excise taxes. Since GST rollout, central excise’s share in tobacco taxation dropped from 54% to 8% (cigarettes) , 17%
to 1% (bidis) , and 59% to 11% (smokeless tobacco).
● Bidis , although widely consumed and equally harmful, are not subject to the GST compensation cess.
● Way Forward: Raising GST rates on tobacco to the peak statutory rate of 40%.
● India has ratified the WHO Protocol to Eliminate Illicit Trade in Tobacco Products.

GST Compensation Cess…

Why in news: GST collections in June 2025 stood at ₹1.85 lakh crore , the lowest in four months.
● As a consumption tax , low collections indicate low economic activity and system inefficiencies.
● Fuel & alcohol remain outside GST. GST Council’s fitment & rate-setting committees reviewed rate rationalisation.
● The GST Compensation Cess was levied above the 28% slab. Initially meant to compensate States for 5 years , it was
extended till March 2026 to repay post-COVID loans.

GST Reforms 2025
Why in news : The GST Council in its 56th meeting approved major reforms: GST slabs reduced from four (5%, 12%,
18%, 28%) to two (5% and 18%). A new 40% slab introduced. W.e.f September 22, 2025.
What is GST?
● Introduced in 2017 as a unified indirect tax , subsuming state and central levies like VAT, octroi, luxury tax, entry tax.
Based on destination principle – tax levied where goods are consumed.
● Allows input tax credit for manufacturers.
● Broadened the tax base by formalising businesses.
● Reform aimed at boosting demand and setting off a virtuous capex cycle : Cheaper goods → higher disposable
income; More consumption → higher production & investment; More jobs → more spending, continuing the cycle.
● 7 Pillars of GST Reforms are: Rate Rationalisation, Inclusion of Petroleum and Alcohol, Enhanced Compliance and
Technology, Reduction of Litigation, Support for MSMEs, Greening the GST, Export Competitiveness.
Impact on Goods:
● Cheaper : Common-use items (toothpaste, butter, cheese, condensed milk, pasta, packaged coconut water, nuts,
dates, sausages), electronics (ACs, TVs, small cars, bikes), and medical items (gauze, bandages, diagnostic kits).
● Higher tax : Clothes costing more than ₹2,500 (from 12% to 18%).
● Luxury & sin goods (high-end vehicles, tobacco) taxed at 40% slab , but overall burden may reduce on removal of
compensation cess.
● FM launched the GST Appellate Tribunal (GSTAT). Justice in GST disputes will now be fair, fast, transparent, and
accessible to all
● The GST compensation cess stands abolished , marking the end of the compensation era.
● Article 246 demarcates taxation powers; residuary power vests with the Centre. 92nd Amendment introduced
Service Tax; 101st Amendment brought GST in 2017.
● GST created a destination-based tax , shared tax base, and caused erosion of States’ fiscal autonomy.
Role of the Finance Commission
● Articles 268–293 define Centre-State financial relations.
● Finance Commission (Article 280) determines transfers to States.
● FC grants supplemented by CSS , Central Sector Schemes , and earlier Planning Commission grants (ended 2014).
● Article 282 : direct Union grants; Article 275 : statutory grants.
● 80th Amendment introduced global sharing , replacing sharing of individual taxes. FC recommendations rose from
29.5% → 30.5% → 32% → 42% → 41% (post J&K change). Actual devolution consistently lower due to rising cesses
and surcharges.
Dependence on Central Transfers
● Central transfers constitute 44% of States’ revenue receipts.
● Expenditure: Pre-GST Centre 47% & States 53%; Post-GST Centre 48% & States 52%. Rise in Centre’s expenditure
linked to expanded Centrally Sponsored Schemes on State subjects.

Apparel GST…

Why in news: Readymade garments priced above ₹2,500 now attract 18% GST , placing them in luxury goods.
● The domestic apparel market is estimated to be worth $100 billion, with ethnic wear constituting around 25% of the
total. Earlier, branded garments priced above ₹1,000 attracted 12% GST.
● This means a saree priced at ₹1 lakh attracts only 5% GST as it is classified under textiles , whereas a salwar set priced
above ₹2,500 incurs 18% GST as a ready-made garment.

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● Previously, manmade fibre (MMF) attracted 18% GST , MMF yarn 12%, and garments 5%. Now, the GST on all MMF
products has been unified to 5% , streamlining the tax structure for the synthetic textile sector.

Workforce…

Jobs…

● According to RBI-KLEMS , while only 2.9 crore jobs were created between 2004–2014, more than 17 crore jobs were
created in the following decade. Formalisation has accelerated, as seen from EPFO data.
● 65% of India’s population is under 35 years , offering a demographic dividend.

SPREE - ESIC…

● Union Labour Ministry said that SPREE and other reforms in the EPFO and ESIC have extended the social security net
to more than one crore workers.
● SPREE 2025 is an ESIC initiative (1 July 2025 to 31 January 2026) by the Ministry of Labour & Employment to expand
social security coverage under the ESI Act, 1948.
● It allows voluntary registration for employers/employees without penalties, inspections, or past dues.
● To increase voluntary compliance and bring unregistered establishments (10+ employees) under the ESI fold.
● Implementation: Digital registration via ESIC , Shram Suvidha, and MCA portals.
● Failure to register may lead to strict penalties/damages after 31 January 2026.

IT Sector…

● Employs 1% of workforce but contributes around 7% to India’s GDP. Issues: AI-driven automation , Generative and
Agentic AI models , Skill mismatch, restrictive U.S. immigration policies — increased H-1B visa fees and tariffs.
● There are over 1,800 Global Capability Centres in India. It has historically been cheaper for companies to hire Indians
who immigrate to the U.S. than to set up local units. However, U.S. and others are limiting newcomers.

Digital Labour Chowk…

● The Construction Workers’ Federation of India (CWFI) has questioned its launch by the Union Labour Ministry.
● Ministry: A Ministry of Labour initiative under the e-Shram 2.0 framework, digitizing the traditional "Labour Chowks."
● Direct Marketplace: Creates a B2C/B2B platform connecting workers (plumbers, masons) directly to
households/contractors, eliminating middleman commissions.
● Social Security: Automatically links registered workers to PM-SYM (Pension) and Accident Insurance via their
Universal Account Number (UAN).
● Skill Mapping: Uses GIS-tagging to locate workers and integrates with the Skill India Digital Hub.
● Urban Inclusion: Aims to formalize the informal urban workforce.

Menstrual Leaves…

● Karnataka has become 1st State to approve 1 day of paid menstrual leave per month for all women employees. The
leave applies to women in government offices, educational institutions, factories, and private organisations.

PLFS…

Why in news: GoI will revamp PLFS , started by NSSO under MoSPI in 2017 , to enhance PLFS coverage and sampling
design for high-frequency indicators.
● The revamped PLFS will provide monthly estimates of key indicators like Labour Force Participation Rate, Worker
Population Ratio, and Unemployment Rate for both rural and urban areas under the Current Weekly Status (CWS).
Quarterly estimates for rural and urban areas at national and major State levels will also be generated under CWS.
● Annual estimates of employment indicators will be given under both Usual Status (ps+ss) and CWS frameworks.
● LFPR is defined as the number of persons/ person-days in the labour force per 1000 persons /person-days.
● FLFPR measures the share of women who are either employed or actively seeking work. A higher FLFPR indicates
greater gender equality and a more dynamic labour market.
● FLFPR fell from 31.2% in 2011-12 to 23.3% in 2017-18, before rising to 41.7% in 2023-24.
● Workers in India are classified into self-employed, regular salaried, and casual workers. Economic development
usually leads to a shift from agriculture to non-agriculture sectors. However, the share of rural women in
agriculture increased from 71.1% in 2018-19 to 76.9% in 2023-24.
● From 2025 onwards , PLFS annual results will be based on the calendar year (January–December) to enhance
labour market analysis and enable timely updates to international labour statistics databases.
● Each selected household will be visited four times over four consecutive months for detailed data collection.
● Usual Status (ps+ss) refers to activity over past 365 days , while CWS refers to the last 7 days prior to the survey.
● Currently, urban PLFS data is released quarterly , rural annually , and combined annual reports are published. In
comparison, CMIE provides weekly and monthly employment surveys.

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Unemployment - PLFS…

● PLFS shows rural unemployment among persons aged 15+ declined to 4.4%. Urban unemployment rate “ edged up
slightly ” to 6.2% for males and 9.0% for females. Overall unemployment among 15+ dropped to 5.2%.
● Self-employment dominated in rural areas, while urban jobs were primarily regular wage or salaried employment.
● The rural workforce continued to concentrate in agriculture , with 57.7% engaged in the sector..
● In urban areas, the tertiary sector remained dominant, employing 62% of workers.
● The FLFPR aged 15+ increased to 33.7%. LFPR increased to 55.8% in November , the highest since April.
● Rise in LFPR was primarily driven by rural areas. The female LFPR showed a steady rise from June 2025 to November
2025. Worker Population Ratio (WPR) for persons aged 15 years and above in rural areas increased.
● LFPR: Percentage of persons in labor force (i.e. Working or seeking or available for work) in the population.
● WPR: WPR is defined as the percentage of employed persons in population.
● Unemployment Rate (UR): Percentage of persons unemployed among the persons in the labour force.

Global Unemployment…

● ILO’s Employment and Social Trends 2026 report, released in Geneva , says that the global unemployment rate is
projected to remain at the historically low level of 4.9% — equivalent to 186 million people.
● 284 million workers still live in extreme poverty with an earning of less than three dollars a day and added that more
than two billion workers around the world remain in informal employment.
● The report noted that between 2015 and 2025 , the share of workers living in extreme poverty declined by only 3.1
percentage points , to 7.9% , compared with a decline of 15 percentage points in the previous decade.
● Global rate of informality increased by 0.3% points between 2015-25 , after having declined in previous decade.

Gig Workers…

Why in news: 2025 Budget formally recognised gig and platform workers and extended social protection schemes to
them. Despite this, PLFS 2025 did not incorporate meaningful changes to classify or represent gig work accurately.
● Code on Social Security, 2020 defines gig and platform work as employment outside a traditional
employer-employee relationship, yet the definitions remain vague. PLFS continues to classify gig workers under
ambiguous categories such as ‘self-employed’, ‘own-account workers’, or ‘casual labour’.
● The 2022 Hindi film Zwigato by Nandita Das and the book OTP Please (2025) by Vandana Vasudevan highlight the
struggles of gig workers and the impact of the gig economy on society.
● NITI Aayog (2022) : Gig workforce projected to grow from 7.7 million (2020-21) to 23.5 million (2029-30). Indian
digital economy expected to be worth $1 trillion in 5 years.
● The gig economy , employing 80 lakh–1.8 crore workers , could grow to 9 crore by 2030.
● As per Labour Ministry’s draft Rules to operationalise the refreshed labour codes , gig workers will be inducted into
the new framework only on social security , not on wages or working conditions.
● Social security code draft Rules require gig workers to register on a portal and every aggregator to upload details of
engaged workers and update them every quarter.
● The Centre may also notify additional eligibility conditions; in any case, a worker must have engaged for at least 90
days with an aggregator or 120 cumulative days across aggregators in the financial year.

CII Partnership Summit-2025…

● The 30th edition of the CII Partnership Summit 2025 was held in Visakhapatnam, Andhra Pradesh.
● Organized by CII in collaboration with the Ministry of Commerce and Industry and the Government of Andhra Pradesh
under the theme: "Technology, Trust and Trade: Navigating the New Geoeconomic Order".

Workplace Accidents
Why in news: British Safety Council estimates that one in four fatal workplace accidents worldwide occur in India.
● The Factories Act, 1881 was the first law regulating labour conditions in India.
● The Factories Act, 1948 covered factory licensing, machinery maintenance, working hours, rest breaks, canteens, and
crèches. Based on the principle that decent working conditions and safety go hand in hand.
● Workmen’s Compensation Act, 1923 and Employees’ State Insurance Act, 1948 ensure compensation for loss of
earnings or lifetime income. However, these laws do not hold employers criminally accountable.
Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020
● Enacted to consolidate 13 existing labour laws related to safety, health, and working conditions.

Labour Codes…

● Centre notified 4 Labour Codes , ushering in universal social security for gig workers, gender pay parity, expanded
rights and safety for women workers, statutory backing for minimum wages, and fixed-term employment.
● Codes: Code on Wages (2019), Industrial Relations Code (2020), Code on Social Security (2020), and the
Occupational Safety, Health and Working Conditions (OSHWC) Code (2020).
● Codes replace 29 fragmented labour laws , many dating back to 1950s.

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● Although passed between 2019 and 2020 , implementation had been held back due to protests from trade unions.
Background
● Second National Commission on Labour recommended consolidation into broader functional codes. Labour is in the
Concurrent List , requiring both Centre and States to frame Rules.
● The Centre published draft Rules in 2020. As of 2025, 32 States and Union Territories have pre-published draft Rules.
West Bengal and Lakshadweep have not pre-published draft Rules under any Code.
● Delhi has pre-published draft Rules only under the Code on Wages. Tamil Nadu is yet to pre-publish draft Rules under
the Code on Social Security.
● Wage per worker (FY23): China>MH>KN>AP>KR>GJ>India>Vietnam.
Codification and Legal Changes
● Code on Wages repeals the Payment of Wages Act (1936), Minimum Wages Act (1948), Payment of Bonus Act (1965),
and Equal Remuneration Act (1976).
● Industrial Relations Code amalgamates the Trade Unions Act (1926), Industrial Employment (Standing Orders) Act
(1946), and Industrial Disputes Act (1947).
● Code on Social Security nullifies nine Acts, including the Employees’ Compensation Act (1923), Maternity Benefit Act
(1961), and Unorganised Workers’ Social Security Act (2008).
● OSHWC Code repeals the Factories Act (1948), Mines Act (1952), and the Inter-State Migrant Workmen Act (1979).
Worker-Centric Provisions
● Universal minimum wages, a national floor wage, and mandatory appointment letters for all workers.
● Timely payment of wages and clarity on working hours, including a 48-hour work week.
● Gender-neutral pay, equal remuneration, and prohibition of discrimination against women and transgender persons.
● Provident Fund and State insurance coverage extended to all workers, including gig and platform workers.
● The Code on Social Security provides universal ESIC coverage without geographic restriction, streamlined EPF
procedures, simplified construction cess payments, and establishes a National Social Security Fund. The Union PF
contributions by employers and employees in excess of the statutory monthly wage ceiling of ₹15,000 are voluntary.
● The OSHWC Code strengthens safety through safety committees, free preventive health check-ups, and improved
workplace standards. Women are permitted to work at night with consent and adequate safety measures.
Compliance Simplification and Enterprise Benefits
● Shift to single registration, single licence, and single return, reducing annual compliance, especially for MSMEs.
● Uniform definition of wages reduces disputes.
● Decriminalisation of minor offences promotes trust-based compliance.
● Increased use of digital processes, including algorithm-based inspections.
● Free market advocates have argued that earlier labour laws were a hindrance to India’s growth potential.
Workforce Profile and Future of Work
● India has 643mn workers , among largest
and youngest workforces.
● India is expected to contribute 66% of
new global workforce entrants.
● Between 2017–24 , 16.83 crore jobs were
created, and unemployment declined
from 6% to 3.2%.
● Gig and platform workers are covered
under the Social Security Code , with
numbers projected to grow from 1 crore
(2024–25) to 2.35 crore (2029–30).
● India’s female labour force participation
rate stands at 32.8%.
● Critics questioned whether the Codes
address demands such as ₹400 per day
national minimum wage, MGNREGA,
Right to Health Act, urban employment
guarantee, social security for unorganised
workers, and ending contract labour in
core government functions.

Rules for four Labour Codes…

● Mandate 48 hours of work per week and lay down measures for women in night shifts.
● Rules define workers , wages , types of employment, gratuity, bonus and social security , including gig workers.
● Minimum rate of wages will be fixed on criteria of the standard working class family. It includes a spouse and two
children apart from the earning employee and criteria are:
● An equivalent of three adult consumption units and a net intake of 2,700 calories per day per consumption unit; 66
metres of cloth per year and housing rent expenditure to constitute 10% of food and clothing expenditure; Fuel and
electricity and other miscellaneous items to constitute 20% of minimum wage.

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● Expenditure for children’s education and medical requirements , and recreation.
● Expenditure on contingencies to constitute 25% of minimum wage.
● Union government will consider geographical area and experience in the area of employment.
● Also skill levels under unskilled, semi-skilled, skilled, highly skilled categories.
● On fixing floor wage , the Rules propose a Central Advisory Board.
● It will consider minimum living standard , including food, clothing, housing and other factors.
● National Social Security Board will be constituted with representatives of unorganised sector workers , employers’
associations. 5 members from gig workers and platform workers will be members on rotation.

Shram Shakti Niti, 2025
Why in news: Draft National Labour and Employment Policy was released for public consultation. It proposes to make
social security universal and portable, aligning with the vision of a developed India by 2047.
● Universal and portable social security through a universal account integrating: EPFO, ESIC, PM-JAY, e-SHRAM and
State Welfare Boards.
● Implementation of the Occupational Safety and Health Code with: Risk-based inspections, Gender-sensitive
standards and Convergence of skill schemes.
● Rooted in India’s civilisational ethos of śrama dharma — the dignity and moral value of work.
● Expected Policy Outcomes: Universal worker registration and social security portability, Near-zero workplace
fatalities, Female labour-force participation to increase to 35% by 2030, Reduction in informal jobs through digital
compliance, AI-driven labour governance across all States, Creation of millions of green and decent jobs, A One
Nation Integrated Workforce ecosystem.
● Phase I (2025–27): Institutional setup and integration of social-security systems. Phase II (2027–30): Nationwide
rollout of universal social security accounts, skill-credit systems, and district-level Employment Facilitation Cells.
● Phase III (Beyond 2030): Paperless governance, predictive analytics, and continuous policy renewal.
● Accountability and Monitoring: Progress tracking through real-time dashboards. Creation of a Labour & Employment
Policy Evaluation Index (LPEI) to benchmark States. Annual Report to be presented to Parliament.
● Employment and labour welfare are part of the Concurrent List of the Constitution.

Banks - Pension - NPS…

● India’s pension fund regulator has allowed banks to sponsor pension funds that will manage monies under NPS , in a
bid to bolster competition in the sector.
● PFRDA has given in-principle approval for banks to independently set up pension funds to manage the NPS , subject
to eligibility norms aligned with the Reserve Bank of India’s guidelines WRT net worth , market capitalisation , and
prudential soundness.
● Currently, banks serve as points of presence , handling subscriber registrations , contributions , and other system
services. Some existing pension funds have ties to financial institutions , including banks.
● In December last year, the PFRDA allowed NPS subscribers to invest in gold , silver exchange-traded funds, the Nifty
50 index, and Alternative Investment Funds.

PMKVY (Pradhan Mantri Kaushal Vikas Yojana)…

● Flagship skill development scheme implemented by the National Skill Development Corporation , providing free
training to youth for better employability.
● Focus on industry-relevant & new-age skills (AI, 5G, coding, etc.). Training duration: 300–600 hours.
● Types of Training: Short-Term Training (STT): Skill training for fresh candidates; Recognition of Prior Learning (RPL):
Certification of existing skills. Special Projects: For marginalized or remote groups.
● Eligibility: Indian citizens aged 15–45 years School/college dropouts or unemployed youth.

India’s Skilling Facts…

● Between 2015-25 , India’s flagship skilling programme, Pradhan Mantri Kaushal Vikas Yojana , has trained and certified
around 1.40 crore candidates.
● India’s Gross Enrolment Ratio (GER) stands at 28% , but the NEP 2020 aims to raise it to 50% by 2035.
● Despite years of investment, only about 4.1% of India’s workforce has received formal vocational training , barely
improving from about 2% a decade ago ( PLFS; World Bank ).
● Across OECD countries , about 44% of upper-secondary learners are enrolled in vocationals , rising to around 70% in
countries such as Austria , the Czech Republic, Finland, the Netherlands, the Slovak Republic and Slovenia.
● The India Skills Report 2025 by Wheebox, CII & AICTE shows that post-degree skilling by graduates is not a
mainstream or high-participation behaviour in India. National Apprenticeship Promotion Scheme (NAPS) has
increased participation , but its effects are still unequal , particularly among bigger companies.
● Sector Skill Councils were created with a mandate : to act as industry-facing institutions that define standards , ensure
relevance, and anchor employability. That mandate has not been fulfilled.

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Global Access to Talent from India (GATI)…

● Govt signals indicate a structured push to re-engage India’s global talent through initiatives including GATI.
● GATI is nonprofit focused on creating an enabling ecosystem for overseas employment from India. Through research,
policy engagement, ecosystem partnerships, on-ground interventions, GATI seeks to improve worker preparedness,
reduce informality, and support safe, ethical, and productive cross-border labour mobility.
● eMigrate V2.0 (launched by MEA in 2024 ), enhances safe and legal migration for Indian workers abroad.
● Visiting Advanced Joint Research (VAJRA) Faculty Scheme ( DST in 2017 ), is program to attract foreign scientists,
NRIs/OCIs to work as adjunct faculty in Indian public-funded institutions.

Bonded Labour…

● Nation observed 50 years of the enactment of the Bonded Labour System (Abolition) Act.
● To end debt bondage and forced labour , which are prohibited under Article 23. It abolished all existing bonded debts
and created district-level Vigilance Committees to identify, release, and rehabilitate labourers.
● Offences : Forced labor is a cognizable offence punishable by up to 3 years imprisonment and fines.
● Rehabilitation Scheme : The Central Sector Scheme for Rehabilitation of Bonded Labourers (2016/2021) provides
financial assistance of ₹1–3 lakh per rescued worker.

Financial Markets…

Short Selling…

Why in news: Short selling (shorting) involves selling first and buying later. It allows selling without owning. The trade is
completed when the seller buys back the stock to square off the position.
Types of Short Selling
● Spot Market(Cash Segment) : Intraday. Must squareoff trade on same day before 3:30p.m. No carry-forward allowed
● Futures Market : Short positions can be carried forward or rolled over. Requires margin money.
● If unable to square off in time, it results in short delivery , a default. The exchange settles through auction , and the
trader incurs a hefty penalty. Especially risky for illiquid stocks where buyers/sellers are not easily available.

SEBI Conflict of Interest…

● SEBI has proposed expanding the definition of family , strengthening disclosures , and placing investment restrictions
on board members under a new framework to overhaul conflict of interest regulations.
● SEBI formed the committee, headed by former CVC chief Pratyush Sinha , after allegations of violating conflict of
interest rules by former SEBI chief from which she was later exonerated.
● The committee recommended creating an Office of Ethics and Compliance , headed by an Executive Director-level
officer , to oversee the framework.
● Family to include: Any person for whom the member/employee is a legal guardian ; Any person related by blood or
marriage to the employee or spouse and substantially dependent on the employee.
● These rules will apply to SEBI employees and board members.
● Under the 2008 guidelines , the definition of family was limited to spouse and children. The term ‘relative’ will now be
defined in line with the Companies Act, 2013 , and applied to both members and employees.

Reforms…

● Nominee rules vary; a person may nominate multiple for mutual funds , with unclear legal rights.
● India’s corporate bond market remains shallow, illiquid, and opaque , despite policy focus for decades. RBI had
directed NSE to develop a secondary bond market , but it was ignored in favour of more profitable equity trading.
● As a FATF member , India is must follow KYC norms & ensure identification of Ultimate Beneficial Owners. India’s
current UBO thresholds (10% for companies, 15% for partnerships) allow for evasion of true ownership identification.
● NBFCs, brokers, and margin lenders are functioning like banks without full oversight, posing major systemic risk.
● To counter cyber frauds and market manipulators , SEBI is planning a robust system in coordination with investigative
agencies. No SEBI-regulated entity can advertise with unregistered influencers.
● SEBI is focusing on investor awareness , warning against F&O losses.
● SEBI is pushing for whitelisting of apps , ensuring only approved apps remain on platforms like Play Store.
● A new UPI system is being developed so that money can only go to verified accounts , minimizing fraud risk.
● SEBI mandated that SIPs with three consecutive failed installments (daily, weekly, monthly, fortnightly) be marked
invalid. For quarterly and bi-monthly SIPs , failure to pay for two consecutive periods would render them invalid. Asset
Management Companies must process SIP cancellation within 10 days of investor request. SEBI instructed AMCs and
AMFI to start providing transparent SIP cancellation data by April 1, 2024.
● SEBI has introduced framework for risk monitoring and increased position limits for futures and options. SEBI’s latest
circular replaces the notional value-based method with a delta-based method to calculate open interest. The
delta-based method weighs open interest by price sensitivity , making it impossible to manipulate trades.

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Securities Market Code Bill 2025
● Seeks to unify 3 laws governing the securities market and was referred to the Standing Committee on Finance. To
consolidate the Securities Contracts (Regulation) Act, 1956 , SEBI Act, 1992 , and the Depositories Act, 1996.
● The move was announced in the Union Budget 2021-22 to provide a modern regulatory framework for investor
protection and capital mobilisation.
● To increase SEBI members to 15 from the current 9. Board will include Chairperson , 2 Central Govt officers , 1 RBI
ex-officio member , and 11 others. At least 5 members will be whole-time members , compared to 3 at present.
● The government proposed to decriminalise minor, procedural and technical violations into civil penalties.
● The objective is to facilitate ease of doing business and reduce compliance burden.
● The Bill would bring unlawful gains or losses under civil penalties. Criminal punishment would be limited to market
abuse , including insider trading and trading with material non-public information.
● The Bill mandates disclosure of direct or indirect interests by Board members to prevent conflict of interest.

Cat Bonds…

● Catastrophe bonds are hybrid insurance-cum-debt product that convert insurance into tradable securities & shift
hazard risk from countries to the global financial market , enabling faster payouts and reduced counter-party risk.
● Sovereign nations sponsor cat bonds and pay premiums; intermediaries like the World Bank issue the bonds.
● Investors risk losing principal in case of disaster, leading to higher coupon rates. Coupon rates vary: 1–2% for
earthquakes , higher for cyclones and hurricanes.

Tier I & II Bonds…

Points Tier 1 Bonds (AT1) Tier 2 Bonds
Capital Type Core/Going Concern (CET1 buffer) Supplementary/Gone Concern
Maturity Perpetual, callable after 5 years Fixed, min. 5 years with amortization
Loss Absorption Trigger-based write-down/conversion Subordination in liquidation
Subordination Junior to Tier 2/deposits Senior to Tier 1/equity
Coupon Payments Non-cumulative, discretionary Fixed/regular, higher yields
Liquidity High (easy to sell) Lower (harder to liquidate)
Security Unsecured, no guarantee Unsecured subordinated debt
Investor Options No put option No put; call after min. period
CAR Contribution
(India)

Up to 1.5-2.5% of total (RBI phase-in) Up to 2% of total CAR

Purpose Absorb losses while operating Secondary buffer post-Tier 1

KIIFB Masala Bond Probe…

● ED has slapped a show-cause notice on Kerala CM in connection with alleged FEMA violations linked to the masala
bond issued by the Kerala Infrastructure Investment Fund Board. It is part of the funds raised through
rupee-denominated bonds (masala bonds) , was used to purchase land, and this action was “specifically prohibited”.
● The KIIFB had floated ‘masala bond’ in the London Stock Exchange and the Singapore stock exchange to raise funds
under external commercial borrowing.
Masala Bonds:
● A bond is an instrument to borrow money. Can be floated/issued by government or company to raise funds.
● Since government bonds (referred to as G-secs in India, Treasury in the US, and Gilts in the UK) come with the
sovereign’s guarantee, they are considered one of the safest investments.
● Masala Bonds are the rupee-denominated bonds issued to overseas buyers for raising money by the Indian
corporates. The price of the bond is denominated in Indian currency.
● International Finance Corporation, investment arm of the World Bank, named them ‘masala’ , literally meaning
‘blend of spices’, to reflect Indian culture. Earlier, for raising money from abroad, Indian corporates relied on
avenues such as external commercial borrowings.
● Challenge with ECBs: A weakening of the rupee during the bond’s tenure can significantly increase costs at
redemption or repayment. By pricing or issuing bonds in rupees, the issuer gets rid of this risk, which instead
passes on to the investor.
● In issuance of Masala Bonds, investors pay USD amount equivalent to INR principal determined at the market
exchange rate on the date of transactions undertaken for issue and servicing of the bonds.
● The 2017 directive of the RBI stated that the minimum original maturity period for Masala Bonds raised upto USD
50 million equivalent in INR per financial year should be 3 years. For bonds raised above USD 50 million
equivalent in INR per financial year, the minimum original maturity period should be 5 years.
● The first Masala bond was issued by the International Finance Corporation in 2014 for infrastructure projects. In
2019, Kerala became the first state to tap into the market for Masala Bonds to raise development funds.

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Various Bonds…

Type of Bond Description Key Features
Government
Bonds

Issued by the government to fund infrastructure,
development, or debt refinancing.

Low risk, backed by government credit; includes
Treasury Bills (short-term), Treasury Notes
(mid-term), and Treasury Bonds (long-term).
Corporate
Bonds

Issued by corporations to raise capital for
operations, expansion, or debt refinancing.

Higher returns than government bonds but higher
risk; interest rates depend on the issuer's
creditworthiness.
Municipal
Bonds

Issued by local governments to fund public
projects like schools, hospitals, and roads.

May offer tax exemptions but carry higher risk due
to varying creditworthiness of issuers.

Zero-Coupon
Bonds

Sold at a discount to face value and do not pay
periodic interest. Investors receive full face
value at maturity.

Attractive for predictable returns; no regular
interest payments; suitable for long-term
investments.
Floating Rate
Bonds

Have variable interest rates that adjust
periodically based on a benchmark rate.

Protect against rising interest rates; can be
callable or non-callable; in India, rates are reset
every six months.
High-Yield
Bonds

Also known as junk bonds, issued by companies
with low credit ratings.

Offer higher returns to compensate for higher
default risk; suitable for investors willing to take on
more risk.
Convertible
Bonds

Can be converted into equity shares of the
issuing company at a predetermined price.

Hybrid investment offering potential equity-like
returns while maintaining bond security; fixed
interest rate until conversion.
Fixed-Rate
Bonds

Pay a constant interest rate throughout their
tenure.

Provide stable income; unaffected by market
interest rate fluctuations.
Callable
Bonds

Allow issuers to redeem the bond before its
maturity date.

Riskier for investors as they may lose out on
higher potential returns if called early; often issued
with higher coupon rates to attract buyers.
Puttable
Bonds

Allow investors to sell the bond back to the
issuer before maturity.

Offer flexibility for investors concerned about
falling bond values or rising interest rates;
generally trade at a premium due to added
investor advantage.
Tax-Free
Bonds

Issued by government-backed entities for
specific purposes like infrastructure
development.

Interest income is exempt from taxes; suitable for
conservative investors seeking tax-efficient
returns.
Investment-G
rade Bonds

Issued by entities with high credit ratings (e.g.,
AAA-rated bonds).

Low-risk investment option with stable returns;
popular among conservative investors.
Climate/Gree
n Bonds

Issued specifically to fund environmentally
sustainable projects like renewable energy or
climate change mitigation.

Attract socially responsible investors; often
backed by government or private institutions
aiming for sustainability goals.

External Commercial Borrowings (ECB):
● Commercial loans in the form of bank loans, buyers’ credit, suppliers’ credit, securitized instruments (e.g. floating
rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference
shares) availed of from non-resident lenders with a minimum average maturity of 3 years.
● ECB policy is applicable to the Foreign Currency Convertible Bonds (FCCBs) which are bonds issued by an
Indian company expressed in foreign currency , and the principal and interest in respect of which is payable in
foreign currency. They are also required to adhere to the provisions of FEMA.
FEMA :
● FEMA came in 1999 as a successor to FERA of 1973 , with changing economic conditions post-liberalisation to
boost external trade and payments and promote the development of the foreign exchange market in India.
● FERA was designed for an era in India marked by a shortage of foreign exchange. It was aimed at conserving
forex to ensure it was utilised only in the interest of the development of the country.
● Under FEMA, offences or violations were made a civil (rather than criminal) offence. It made transactions that are
part of the current account, such as travelling abroad for tourism, education, etc., a matter of right.
● Restrictions were put in place on the capital account. Director and Assistant Director of ED has the power to
conduct investigations into any violations of FEMA.

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Masala Bonds Rupee-denominated bonds issued by Indian
entities in foreign markets to raise funds without
currency risk exposure for issuers.

Denominated in INR but issued overseas; used for
infrastructure projects and corporate expansion;
reduces currency risk for issuers while transferring
it to investors.
Panda Bonds RMB-denominated bonds issued in China's
domestic market by foreign entities like
governments or international organizations.

Provides access to China's bond market;
denominated in Chinese Renminbi; requires
compliance with Chinese regulations.
Samurai
Bonds

Yen-denominated bonds issued in Japan by
non-Japanese entities to raise funds from
Japanese investors.

Denominated in Japanese Yen; allows access to
Japan’s financial market while exposing issuers to
currency risks unless hedged.
AT1 Bonds Additional Tier-1 bonds are perpetual debt
instruments issued primarily by banks to
enhance their core capital base under Basel III
norms, allowing them to absorb losses during
financial stress.

High risk due to potential loss absorption and
coupon cancellation; no fixed maturity date but
often include a call option; can defer or skip
coupon payments; subordinate to other debt but
senior only to equity in liquidation scenarios.

Qualified Institutional Placement…

Why in news: SBI has launched its qualified institutional placement (QIP) of up to Rs 25,000 crore.
● QIP is a capital raising instrument used by listed companies to raise funds by issuing equity shares to qualified
institutional buyers. QIBs include venture capital funds, pension funds and mutual funds.
● A listed company trades its securities on a stock exchange and is regulated by SEBI.

Domestic r/t FPI…

● India’s capital markets are witnessing a structural shift as domestic household savings replace FPI money , reducing
exposure to volatile global capital but raising concerns about preparedness of new retail investors.
● FPI ownership has fallen to a 15-month low , while domestic mutual funds and retail investors now own nearly 19% of
the equity market , making domestic savers the key stabilising force.
● This shift gives RBI greater monetary policy flexibility , with reduced pressure to defend the rupee and more room to
manage the growth–inflation trade-off.
● However, high IPO valuations and the “performance problem” in active fund management raise risks for retail
investors, potentially worsening wealth inequality and undermining inclusive growth.

Gold ETF…

● Surging gold prices , geopolitical tensions , increased purchases by global central banks , and tariff-related
uncertainties have drawn investors towards gold ETFs.
● Gold ETFs are ETFs with gold as the underlying asset , allowing investors to hold gold electronically instead of
physically. They offer safety since there are no risks of theft or purity issues.
● Investors prefer gold ETFs for better liquidity, transparency, and global price alignment. Earlier, gold ETFs were taxed
as per individual tax slabs. Now, LTCG on gold ETFs held for over 12 months are taxed at 12.5%.

SEBI Intraday Regulations…

Why in news: SEBI has introduced a new framework for monitoring intraday positions in equity index derivatives.
● Net intraday position capped at ₹5,000 crore per entity in index options (earlier ₹1,500 crore end-of-day limit).
● Gross intraday position restricted at ₹10,000 crore, same as the existing end-of-day limit.
● The restriction applies separately to long and short positions. Framework is effective from October 1.
● Objective : Facilitate market-making activity on all trading days and prevent outsized intraday positions on expiry day
for orderly trading. Applicability : restricted only to index options, which dominate the derivatives market.
● In simple terms, SEBI’s new rule oversees large trading positions of individual entities during the day.
● India launched its first weather derivatives market, developed by NCDEX-IMD. This initiative provides rainfall-based
derivative products, allowing farmers, agri-traders, and industries to hedge against risks.

● An ETF (exchange traded fund) is a marketable security that tracks an index, commodity, bonds, or a basket of
assets like an index fund. Unlike regular MFs, an ETF trades like a common stock on a stock exchange.
● The traded price of an ETF changes throughout the day as it is bought and sold on the exchange.
● The trading value of an ETF is based on the net asset value (NAV) of its underlying stocks.
● ETFs typically offer higher daily liquidity and lower fees than mutual fund schemes.
● ETFs are considered more tax efficient compared to other mutual fund schemes.
● There are five types of ETFs : equity ETF, bonds ETF, commodity ETF, international ETF, and sectoral/thematic ETF.

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US Treasury Securities…

Why in news: Ahead of US’s 50% tariff on Indian imports, India reduced its exposure to US Treasury Bills (T-bills) over
the past year. This marks a cautious shift in the RBI’s foreign exchange reserve strategy.
● India ranks 10th-largest investor in US Treasury Bills. Analysts note that the US can freeze or restrict access to
Treasury securities in exceptional geopolitical or national security cases. After Russia’s invasion of Ukraine, US blocked
Russia’s access.
● RBI’s gold held abroad fell. Gold held domestically rose sharply. This shows the RBI’s dual approach of diversification
and liquidity maintenance.
● Treasuries, backed by the US government, are part of the world’s largest and most active bond market. Investments in
T-bills and government bonds are in highly rated sovereign, central bank, and supranational debt.
● With foreign exchange reserves hitting record highs in 2025 , RBI aims to balance liquidity, security, and returns by
spreading investments across sovereign debt, supranational bonds, deposits, and gold.

Securities Transaction Tax…

Why in news: SC decided to examine a plea challenging the constitutional validity of (STT , a direct tax levied on
securities transactions under the Finance Act, 2004.
● Double taxation is a key point raised: stock market traders pay capital gains tax on profits and also have to pay STT on
the same transaction. STT is unique in India as it is imposed on the act of carrying out a profession , regardless of
whether a profit is made, making it almost punitive.
● STT was introduced in 2004 to combat tax evasion in the stock market, similar to TDS for salaried individuals.
● However, TDS is refunded or adjusted at the end of the year, but STT has no such provision.

Small Savings Scheme…

Why in news: Small Savings Schemes , also known as Post Office Savings Schemes.
● Interest rates are set by the government quarterly. For the current quarter, the rates remain unchanged. This means it
is beneficial to investors. The basis for fixing rates is that the interest rate will be aligned with G-Sec rates of similar
maturity with a spread i.e. mark-up.

Mutual Funds Regulations…

Why in news: SEBI has proposed major changes to mutual fund regulations to reduce investor costs and simplify rules.
● Proposals remove old rules , simplify language , and rationalise fee structures.
● SEBI noted that numerous amendments over 29 years have made MF
regulations voluminous and complex.
● SEBI has therefore undertaken a comprehensive review of MF regulations. As
part of efforts to make MF schemes cheaper for investors , SEBI has removed
additional expense of 0.05% charged by AMCs over exit load.

SEBI Broadens MF…

● SEBI has broadened mutual fund categories & has introduced new category
called the lifecycle fund and done away with retirement and children’s fund.
The regulator said that the lifecycle funds would have a minimum duration of
five years and maximum duration of 30 years.
● SEBI also said that the sectoral debt funds may be launched in financial
services, energy, infrastructure, housing, and real estate.

Official Action Indicated (OAI)…

● Shares of Sun Pharmaceutical Industries closed 2.77% lower after the U.S. classified the company’s facility in Baska,
Gujarat , as OAI. OAI status implies regulatory and/or administrative actions are recommended.
● OAI is one of three classifications the U.S. FDA issues post facility inspection. Voluntary Action Indicated means
objectionable conditions or practices were found but the agency is not prepared to take action. No Action Indicated
means no objectionable conditions or practices were found during inspection.

Financial Conditions Index…

Why in news: In a bid to enhance real-time monitoring of the country’s financial health , a recent RBI study has
proposed the construction of a Financial Conditions Index (FCI) for India with daily frequency.

● The US remains the largest destination for India’s reserve investments. RBI also holds high-rated government
securities from Japan, Germany, France, and the UK. A portion of reserves is invested in bonds issued by
multilateral institutions like the World Bank, IMF, and ADB. Other allocations include deposits with central banks
and the Bank for International Settlements (BIS) , along with physical gold.
● This diversification ensures India’s reserves are not overly dependent on a single asset class or geography.
● Japan is the largest investor in US Treasury securities. The UK and China follow.

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● The proposed FCI would serve as a composite indicator capturing conditions across the money market, G-sec,
corporate bonds, equities , and the foreign exchange market.
● The index aims to provide a high-frequency gauge of how tight or easy financial market conditions are , relative to
their historical average since 2012.
● Instruments types in bond market: G-sec – 45%, State Development Loan – 25%, Corporate Bond – 22%, Treasury
Bill – 4%, Commercial Paper – 2% and Certificate of Deposit – 2%.

Insolvency and Bankruptcy Code (IBC)…

Why in news: In 2016 , the IBC introduced a time-bound, creditor-in-control framework to streamline corporate
insolvency and reduce delays, with a maximum resolution period of 330 days.
● The RBI’s 2024 report notes IBC accounted for 48% of total bank recoveries in FY 2023–24.
● NCLT and NCLAT face a dual burden of corporate insolvencies and cases under Companies Act. NCLT's structure,
based on Eradi Committee recommendations from 1999, is outdated for current economic demands. NCLT has a
sanctioned strength of 63 members.
About NCLT:
● It comes under the Ministry of Corporate Affairs (MCA).
● It is a quasi-judicial body in India, established in 2016 , under Section 408 of the Companies Act, 2013.
● Its creation was based on the recommendations of the Justice Eradi Committee and aimed to streamline corporate
dispute resolution. The principal bench is in New Delhi. It serves as the primary adjudicating authority for insolvency
cases under the Insolvency and Bankruptcy Code (IBC), 2016 , determining whether to revive or liquidate companies.
● You can appeal an NCLAT decision to the Supreme Court of India on a point of law.
NCLAT
● Quasi-judicial body established under Section 410 of the Companies Act, 2013.
● Serves as appellate authority for orders passed by NCLT, IBC, CCI, National Financial Reporting Authority.
● Constituted on 1 June 2016 by the Central Government to provide a specialized forum for corporate and insolvency
matters , reducing the burden on regular civil courts.
● Headquarters: New Delhi (Principal Bench), with an additional bench in Chennai.

Gold ETFs…

● Mutual fund investors chose gold ETFs over equity-oriented schemes in December 2025, following the rally in gold
and the suboptimal returns.
● The emergence of gold ETFs may point to both an improving diversification of the Indian mutual fund investors and a
safe haven demand.
● ETFs are marketable, passive investment funds that track indices, commodities, or bonds, trading on stock exchanges
like individual stocks. They offer high liquidity, lower costs, and diversification, allowing investors to buy/sell at market
prices throughout the day. ETFs are regulated by SEBI in India.
● Types: Equity ETFs, Gold ETFs, Debt/Bond ETFs (e.g., Bharat Bond ETF).
● ETF vs. Mutual Funds: ETFs trade like stocks, while mutual funds are bought/sold at the end-of-day NAV.
● ETFs vs. Physical Gold: Gold ETFs eliminate the risk of purity verification and storage costs.

Systematic investment plans (SIPs)…

● Monthly contributions to mutual fund schemes through systematic investment plans (SIPs) dipped 3.7% in
February 2026. This is the steepest decline since 2021 , when SIP contributions dipped 6%.
● SIPs , one of the most sought after routes to invest in mutual funds , reduced both on value and volume. The decline
followed continued global shocks that kept markets volatile.
● Net inflows into gold exchange traded fund (ETF) fell 78%. Gold ETFs track gold prices.
● The moderation suggests some defensive positioning is unwinding.
● February 2026 saw the slowest pace of decline.

Adani - SEC…

● U.S. Securities Exchange Commission (SEC) moved a U.S. court to bypass India and send summons to Adani.
● India, the SEC said, has previously refused two requests to serve the summons. Law Ministry had turned down the
first one sent in April 2025 citing the absence of an “ink signature” on the SEC’s cover letter and a seal on the
documents, neither of which is required under the Hague Convention.
● 2nd request, sent in September 2025 , was also rejected , stating that law did not explicitly mention “summons.”

Resources, Minerals and Energy…

Energy and Efficiency…

Why in news: India’s peak power deficit rose from 0.69% (FY20) to about 5% (FY24) as new fossil-fuel-based
production is time-consuming, and renewable integration poses challenges.

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● Enhancing energy efficiency holistically is quickest and least expensive way to tackle rising power demand. UJALA
scheme , launched a decade ago, reduced cost of LED bulbs. UJALA included the Street Lighting National Programme ,
leading to 1.34 crore LED installations and peak demand reduction. LED bulbs consume half the power of CFLs and
one-ninth that of incandescent bulbs.
● Following the Energy Conservation Act, 2001 , India adopted further efficiency measures across sectors.
● According to the International Energy Agency , energy efficiency (2000–2018) helped avoid 15% energy demand and
300 Mt of CO ₂ emissions. Rising urbanisation and cooling needs have pushed India’s peak power demand to 250 GW ,
making it the third-largest power consumer after China and the U.S.
● 70% of India’s energy still comes from coal , with plans to add another 90 GW of coal capacity by 2032.

Why in news: As of January 31, 2026, non-fossil fuel sources account for approximately 52.2% of India’s total installed
electricity capacity. The country officially reached the 50% mark in June 2025, achieving its Paris Agreement target five
years ahead of the 2030 deadline. However, public data shows that clean energy contributes less than 30% to the actual
electricity generated and supplied.
● Experts attribute the gap between installed capacity and actual usage to the lower Capacity Utilisation Factor of
renewables. Solar CUF is ~20%, wind is 25–30%, while coal is 60% and nuclear is 80%.
● Hybrid projects combining solar, wind, hydro, and storage are recommended to meet peak and round-the-clock
power demand.
● Energy Transition Index 2024 , released by WEF, ranked 120 countries on progress toward a sustainable, affordable,
and secure energy future. India ranked 63rd out of 120 countries in 2024 Global Energy Transition Index, improving
from 67th in 2023. India’s rank dropped from rank 63 in 2024 to rank 71 in 2025.
● India added 31.25GW of renewable energy, including 24.28 GW of solar power, in the current financial year alone.
● It took nearly 70 years to reach milestone of 1 Terawatt of power from renewable sources. 2nd Terawatt capacity in
renewable energy sector was achieved in just two years. Between 2022-24 alone , India contributed 46 GW to global
solar additions , becoming the third-largest contributor.
● According to the latest PIB and MNRE data, the total installed capacity stands at 520.5 GW. Non-Fossil Fuel Sources:
271.97 GW (52.2%; Solar Power: 140.60 GW; Wind Power: 54.65 GW; Large Hydro: 51.16 GW; Nuclear: 8.78 GW;
Biomass & Others: ~16.7 GW). Fossil Fuel Sources: 248.54 GW (47.8%).

● Odisha is emerging as renewable energy hub with 3.1 GW renewable
energy capacity and 34% clean share in the power mix. Projected thermal
power requirement is expected to grow to 307GW by 2035.
● India holds the world’s fifth-largest coal reserves and is the second
largest consumer of coal.

Power Generation Capacity…

● India has added highest-ever capacity addition in a single year.
● India commands a total power generation capacity of 5,20,510.95 MW.
48% , is based on fossil fuels.
● Renewable represent about 50.5% of the overall capacity, while nuclear
accounts for 1.6% at 8,780 MW.

Captive power generation…

● The Union government amended the Electricity Rules, 2005 to strengthen captive power generation. The
amendments aim to remove ambiguities in the sector. The changes seek to align the captive generation regime
with modern corporate structures and industrial energy needs.
● Companies are increasingly investing in non-fossil fuel based captive power projects. The amendments clarify
ownership provisions. They simplify rules for group captive arrangements. They establish a clear verification
mechanism. The aim is to reduce regulatory ambiguity and disputes.
● Captive power generation involves industries producing electricity for their own needs.
● One amendment mandates verification of captive status for the entire financial year. This is to ensure clarity and
uniformity in implementation.

Top 5 Countries:

Bottom 5 Countries:

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● States and Union Territories will designate a nodal agency from April 1. The National Load Despatch Centre will
verify inter-state captive power.
● Pending verification, cross-subsidy surcharge and additional surcharge will not be levied. This applies if captive
users submit a prescribed declaration.
● The amendments provide flexibility for group captive power projects. Captive users can draw power based on
operational requirements. Users will not be disqualified if consumption exceeds proportionate entitlement.
● The definition of ownership now includes subsidiaries and holding companies. This recognises modern structures
where power assets are developed through group entities or special purpose vehicles.

Coal stock…

● India has an overall coal stock of 210 million tonnes (MT). The stock would be adequate for about 88 days. The Coal
Ministry informed this as India prepares to spur coal production to meet peak summer demand.
● For the first time in half a century, coal-fired electricity generation in India saw a year-on-year decline in 2025, driven
largely by rapid growth in renewables , according to Centre for Research on Energy and Clean Air.

Grid Emission Factor…

● India’s Grid Emission Factor (GEF) — measuring carbon intensity of electricity has increased from 0.703 tCO₂/MWh in
2020–21 to 0.727 tCO₂/MWh in 2023–24. This rise indicates that India’s electricity grid is becoming more
carbon-intensive , even with more renewables in the mix.
● While renewables form a large share of installed capacity , they generate less electricity annually compared to coal or
nuclear plants. Solar and wind plants typically operate at 15–25% capacity utilisation, whereas coal and nuclear
operate at 65–90%. In 2023–24 , renewables (including hydro) supplied only 22% of total electricity.
● Energy efficiency offers a key solution by reducing demand before supply needs to increase. Improving energy
efficiency helps lower peak demand (especially at night), thereby reducing reliance on coal-fired power.
● Central Electricity Authority’s National Electricity Plan projects India’s GEF to fall to 0.548 by 2026–27 and 0.430 by
2031–32. India has reduced emissions intensity by 33% between 2005 and 2019, as per its Fourth Biennial Update
Report to the UNFCCC.

Oil and Gas…

● India is now the 3rd largest energy and oil consumer , 4th largest refiner , and 4th largest LNG importer.
● By 2047, India’s energy demand is expected to grow 2.5 times , contributing 25% of global incremental demand.
● Exploration acreage doubled to 16% , targeting 1 million sq km by 2030.
● ‘No-Go’ areas reduced by 99% , with streamlined OALP rounds and pricing incentives.
● New gas pricing mechanism pegs rates to 10% of Indian crude basket, with 20% premium for new wells.
● Ethanol blending rose from 1.5% (2013) to 19.7% (2025).
● SATAT (Sustainable Alternative Towards Affordable Transportation) operationalised 100+ CBG (Compressed Bio Gas)
plants, targeting 5% blending mandate by 2028.
● Gas pipeline network spans 25,000 km; target: 33,000 km by 2030. Gas included in ‘No Cut’ category , ensuring
stable supply for transport and domestic use.
● Oilfields (Regulation & Development) Amendment Act 2024 enabled hybrid leases for renewables and hydrocarbons.
Discovered small fields (DSF) brought under simplified contracts to unlock marginal reserves. Under PM Gati Shakti ,
over 1 lakh assets and pipelines mapped digitally.
Andaman Discovery
● Oil India Limited discovered natural gas reserves in Andaman Sea, approximately 17 km east of the Andaman Islands at
the Sri Vijayapuram-2 well. Testing confirmed high-quality, 87% methane gas at a depth of 2,650 meters.
● Found in the block AN-OSHP-2018/1 (near Sri Vijayapuram), roughly 9.20 nautical miles off the Andaman coast.
● Major contributors are Western Offshore (~29.3%) and Eastern Offshore (~23.5%), followed by Assam (~14.4%),
Rajasthan (~6.4%), and Andhra Pradesh (~5.5%).

Oil and Gas - $100 bn Investments…

● India’s oil and gas sector is eyeing to scale $100 billion in investments by the end of the current decade.
● India Energy Week held in Goa. India aspires to expand the exploration acreage to 1 million sq. km. It is with this
thought that more than 170 exploration blocks have been awarded in the past.
● Andaman Nicobar basin is becoming our next hydrocarbon hope.
● The India Energy Week , being held in Goa this year, is the flagship conference of the country’s oil and gas sector,
collaborating stakeholders from both India and outside, for agreements and consultations.

● Union Minister of Coal and Mines launched the Koyla Shakti Dashboard and the Coal Land Acquisition,
Management, and Payment (CLAMP) Portal.
● Koyla Shakti enables real-time monitoring of coal movement through rail, road, and multimodal systems ,
facilitating data-driven decision-making and predictive analytics for demand forecasting and logistics planning.
● The CLAMP Portal is a unified digital solution to streamline land acquisition, compensation , and rehabilitation &
resettlement (R&R) processes in the coal sector.

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OALP-X…

● Oil India (Maharatna) undertook seismic study of the blocks awarded during the ninth round of OALP to chart a
bidding strategy for the tenth round.
● Government had launched Hydrocarbon Exploration and Licensing Policy (HELP) in 2016. Under this policy, Open
Acreage Licensing Policy (OALP) was started.

India’s Oil Sources…

● There has been a “notable increase” in the number of countries from where India imports crude oil.
● Crude oil imports from Libya, Egypt, Brazil, U.S. and Brunei climbed. Dip in imports from Russia, Saudi Arabia, Iraq
and Venezuela. UAE’ share increased from 9.4% to 11.1% and Nigeria from 2.2% to 3.3%.

Oil-Gas Imports - Solutions…

Why in news: India’s energy security is at a critical juncture with rising reliance on imported crude oil and natural gas ,
comprising over 85% and 50% of its needs respectively.
● Crude oil and natural gas imports accounted for nearly $170 billion , or 25% of India’s total merchandise imports.
● This substantial outflow of foreign exchange puts pressure on the rupee , increases the trade deficit , and affects
macroeconomic stability. Despite the push for renewables , fossil fuels still meet over 80% of global energy demand,
with hydrocarbons powering more than 90% of transport.
Import Basket
● Before 2005 , over 70% of the crude oil came from Saudi Arabia, Iraq, Iran, Kuwait and UAE. From 2005 to 2015 ,
crude oil supplies broadened to include Nigeria and Angola in Africa and Venezuela in South America.
● Iran’s share in India’s crude basket dropped to 0 by 2020.
● Russia accounted for less than 2% of India’s crude oil imports in 2021-22. It stood at 35.8% in 2024-25.
Solutions
● Coal Gasification : Leveraging India’s 150bn tonnes of coal with advances in gasification and carbon capture.
● Biofuels : Expanding ethanol blending and compressed biogas (CBG) production through schemes like SATAT.
● India has successfully reduced dependency on West Asia for crude oil, with imports from the region now under 45% ,
a shift reflecting long-term strategy.

Global Oil Dynamics…

Why in news: Crude remains the world’s most valued commodity , with 100 mbpd produced and daily global trade
exceeding $3 billion.
● Supply boost due to shale , horizontal drilling , and ultra-deep shelf drilling.
● IMF WEO : global economy “ in Flux, Prospects Remain Dim ”, with growth slowing to 3.2% (2025) and 3.1% (2026) ;
world trade growth at 2.9% (2025-26). These indicators point to downside risks to oil prices.
● India’s oil imports (2024-25): $137 billion ; every $1 decline in oil price improves CAD by $1.6 billion.
● Benefits include : Lower subsidy burden, Reduced inflation, Improved fiscal balance as government retains most gains,
Enhanced capital expenditure and growth momentum.

Oil Prices…

● The price of petrol sold in India has been reduced 1.9% since June 2022, even as the price of oil has fallen 41.5% since
then as per data from the Petroleum Planning and Analysis Cell (PPAC).
● Fuel prices were kept unchanged for more than 21 months , until mid-March 2024. This freeze marked an unofficial
digression from the official dynamic pricing policy the government had adopted in 2017 for petrol under which
OMCs were to fix the price of fuel on a daily basis based on prevailing oil prices.
● Ministry of Petroleum and Natural Gas has informed Parliament that the setting of fuel price is the exclusive domain of
the OMCs , and that the government has no part to play in this.
● OMCs have in the past passed on oil price hikes to consumers in the form of higher petrol prices, but have not passed
on the benefits of falling oil price.

Special Petroleum Reserve (SPR)…

● India has sufficient stocks of crude oil and energy products for 50 days of sufficiency (25 days crude + 25 days
petrol and diesel). The crude reserve does not include the Special Petroleum Reserve (SPR).
● Concerns emerged as tensions rose in West Asia after Israel and U.S. strikes on Iran.
● India is comfortably placed with respect to liquefied natural gas (LNG) and liquefied petroleum gas (LPG).
● India has sufficient LNG supplies for the next two to three weeks.
● The Petroleum and Natural Gas Ministry established a 24×7 control room to monitor supply and stock position of
petroleum products. Safeguarding interests of Indian consumers is the highest priority.

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Oil release from strategic reserves…

● The International Energy Agency (IEA) has proposed the largest release of oil reserves in its history. The move is
aimed to restrain soaring crude prices amid the U.S.-Israel war with Iran.
● The proposed release would exceed the 182 million barrels of oil released in 2022 after Russia’s invasion of Ukraine.
The IEA called an extraordinary meeting of members.
● The plan would be adopted if there were no objections. Protests by even one country could delay the effort.
● The Centre welcomed the decision to release emergency oil stocks amid supply disruptions.

Essential Commodities Act (ECA), 1955
● The Centre invoked the Essential Commodities Act (ECA), 1955 directing oil refiners to prioritise LPG production.
● Oil refining companies asked to maximise propane and butane streams for LPG production. LPG to be supplied to
public sector oil marketing companies (OMCs). LPG to be supplied solely to domestic LPG consumers.
● Refiners directed not to divert propane or butane for petrochemical products.
● LPG is a mixture of propane and butane. About 60% of India’s LPG is imported , mainly from Persian Gulf countries.
Strait of Hormuz closure has affected LPG imports.
● OMCs like Indian Oil Corporation and Bharat Petroleum Corporation produce about 40% of LPG domestically.
● Government prioritising household cooking gas availability.
● Indian Oil Corporation (IOCL) said India has adequate reserves and dismissed fuel shortage concerns as rumours.
● Domestic cooking gas (LPG) prices were hiked by ₹60 per cylinder. Commercial LPG cylinders price increased by
₹114.50. Beneficiaries of Pradhan Mantri Ujjwala Yojana (PMUY) will also bear the ₹60 increase. Over 10 crore
households received LPG connections under PMUY since 2016.
Related news:
● Invoking the Essential Commodities Act, 1955 , the Ministry of Petroleum and Natural Gas (MoPNG) sought
diverting natural gas to priority sectors.
● Priority sectors include domestic piped natural gas (PNG) , Compressed Natural Gas (CNG) for vehicular fuel ,
Liquified Petroleum Gas (LPG) production , fertilizer manufacturing , tea industries, manufacturing and other
industrial consumers.
● The Centre had earlier invoked the Essential Commodities Act for prioritising LPG supply to domestic
consumers. The notification introduced tiered allocation priorities to sectors.
● Domestic PNG, CNG for transport and LPG production have been accorded priority allocation. Supplies to these
sectors will be upheld uninterrupted at hundred per cent , subject to operational availability.
● Fertilizer plants would be supplied 70% of consumption requirements. This is based on their average
consumption in the previous six months.

Natural gas supply…

● The natural gas supply crunch in India likely to be short-lived.
Higher prices making imports from distant sources
economically viable. India could face a temporary shortage due
to longer shipping time.
● LPG output increased by 10% after prioritising household
supplies.
● Government directed refiners to maximise propane and butane
use for LPG production.
● Alternative LNG sources include Qatar, Norway and the U.S.
● Shipping LNG from distant sources may take about two months.
India diversifying LPG and LNG supplies.

India’s LPG dependence…

● The war between the U.S.-Israel and Iran has put stress on India’s Liquefied Petroleum Gas (LPG) supply. India’s
LPG supply was already heavily import dependent and in need of government aid.
● The Centre paid ₹30,000 crore to public sector Oil Marketing Companies (OMCs). The subsidy was to cover
losses for selling cooking gas cheaply amid soaring global prices. With war breaking out, India faces possible
disruptions to LPG supplies and higher global prices.
● Ministry of Petroleum and Natural Gas directed domestic oil refining companies to maximise LPG production.
Refiners were barred from diverting output for other petrochemical production. The OMCs were directed to supply
LPG solely to domestic consumers.
● India produces only about 40% of its LPG requirement. The rest is imported , mostly from the West Asia region.
India’s LPG use has been rising as more people switch to cleaner cooking fuel.
● The government said LPG coverage increased to nearly 100% of households , from 62% in 2016. This rise followed
the launch of the Pradhan Mantri Ujjwala Yojana.

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● In 2025 , Qatar accounted for about 34% of India’s LPG imports. The UAE accounted for 26% , and Kuwait for 8.3%.
In 2020 , nearly 37% of LPG imports came from Qatar.
● The Strait of Hormuz , between Iran and Oman , is a critical energy shipping route.
● India’s Liquefied Natural Gas (LNG) imports reached 27 MMT in 2024-25 , the highest on record. This is double the
13.5 MMT imported in 2011-12. About half of India’s LNG also comes from Qatar.
● LNG powers fertilizer plants, electricity generation, and gas pipelines. LNG also fuels vehicles and commercial
kitchens. Like LPG, LNG is largely sourced from West Asian suppliers caught in the conflict.

LPG output rises 25%…

● India’s production of liquified petroleum gas (LPG) has increased 25% since the government instituted the supply
maintenance order.
● India’s domestic LPG production has increased by 25% and is being directed to household consumers.
● The government is working to expand the delivery authentication code (DAC) system to 90% of domestic
consumers. This is aimed at addressing diversion at the distributor level.
● Concerns over LPG supply arose after the closure of the Strait of Hormuz by Tehran.
● According to government data, India imports 60% of its LPG requirements. About 90% of LPG imports are routed
through the Strait of Hormuz.

LPG deficit…

● With LPG shortage hitting day-to-day life in India, data suggest India opted for a dramatic surge in LPG use ,
especially among poor households , driven by imports. There was no plan to boost long-term, strategic LPG
reserves in parallel. More than 85% of India’s LPG imports cross the Strait of Hormuz.
● With limited back-up storage , disruption hit quickly unlike auto fuels where strategic reserves equal two months of
consumption. The Indian LPG system is designed for operational flow, not stockpiling.
● There are no concrete proposals to increase large underground storage. International Energy Agency flagged the
lack of storage as an infrastructural weakness. IEA figures show India’s LPG imports increased threefold from
2011-12 to 2024-25 to about 20 million tonne. Imports constitute about 60% of India’s LPG needs.
● Import dependency increased from 47% in 2015 to current levels.
● India is the second-largest consumer of LPG in the world. Total storage capacity can feed less than half of the
monthly requirement. Most storage is in tanks at import terminals such as Ennore.
● India has two underground LPG caverns – Mangaluru and Visakhapatnam.
● The total underground storage equals less than two days of consumption.
● More than 85% LPG consumption is by households.
● About 10 crore connections were added since 2017 through Pradhan Mantri Ujjwala Yojana. It aimed to provide
clean cooking gas to poor households. Scheme aimed to free women from firewood-based chulhas, cow-dung,
kerosene stoves. Scheme provided deposit-free LPG connections to adult women from poor households.
● U.S. cargoes take about 45 days to reach India. Persian Gulf cargoes reach faster.
● Europe can store about 25% of total annual gas consumption. European countries do not have a strategic
government-controlled gas reserve.
● India has three geological zones relevant for gas storage. The Peninsular Shield underlies about 60% of peninsular
India. Both LPG caverns are located in this zone.
● The second zone is the Deccan Traps , covering about 5,00,000 sq km. The Deccan Traps present challenges for
storage.
● The third zone is the salt formations of Rajasthan’s Bikaner–Barmer belt. Salt caverns are cheaper and faster to
construct. Salt caverns are naturally impermeable and allow rapid injection and withdrawal. A refinery is under
construction at Barmer. Crude pipelines traverse the region.
● A fourth option of depleted gas reservoirs in Krishna–Godavari, Cambay and Mumbai offshore basins is under
study.

LPG Imports
● The government said recent measures have led to a 25% increase in domestic liquefied petroleum gas (LPG)
production. This increase amounts to about 10% of daily LPG consumption. There is still a shortfall of 50% to be
filled by LPG imports. India does not have much strategic, long-term LPG storage.
● In 2024-25 , India’s LPG production was about 13 million tonnes. Total production of petroleum products was 283
million tonnes. India’s LPG consumption was about 31 million tonnes. Broadly, there is a 60-40 import-export split.
● Domestic LPG production comes from three sources. One source is LPG available freely in crude oil , separated
during distillation.
● The main source is refineries with Fluid Catalytic Cracking Units (FCCU). FCCUs crack heavier crude fractions into
lighter fractions. LPG is one of the major products from FCCU. FCCU also produces crack naphtha which is
processed to produce petrol. Operating conditions and catalysts in FCCUs can be modified to increase LPG
production. FCCU also produces propylene , which is used to produce polypropylene.

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● Polypropylene is used in plastics and synthetic rubber. Increasing LPG production can reduce polypropylene
production. It can also affect the quality of petrol. LPG is also produced in small quantities from catalytic reformers.
These reformers produce components for petrol blending.
● Minor adjustments can increase LPG yield. The government ordered refineries not to divert propane-butane for
petrochemical products or downstream derivatives.

LPG carriers…

● The Shivalik , an Indian-flagged LPG carrier with a cargo
capacity of more than 54,000 tonnes , crossed the Strait of
Hormuz. The ship departed from Ras Laffan, Qatar. Its
original destination was the U.S.
● The Indian Navy denied reports that the Shivalik was
being guided by naval vessels.
● The LPG carrier is owned by the Shipping Corporation of
India (SCI).
● The Shivalik’s 55,000 tonnes of cargo could amount to
nearly one day of India’s LPG imports. The Shivalik and
Sahyadri were inducted into the SCI fleet in 2025.
● The Jag Prakash is an oil products tanker with a capacity of
48,000 tonnes. The Jag Prakash loaded cargo at Sohar
port in Oman. Its original destination was Tanzania.
● Journey involved risks such as GPS spoofing and
jamming. These measures can confuse ships by giving
false locations. Ship reportedly went into “digital
darkness” and used manual navigation. Ships equipped with Automatic Identification System can become easy
targets. AIS identifies vessels and makes them easy to track.

Piped natural gas (PNG)…

● Seeking to ensure a steady supply of liquefied petroleum gas (LPG) to domestic consumers , the government
mandated that individuals with a piped natural gas (PNG) connection cannot obtain a new LPG connection.
● Such individuals cannot retain an existing additional LPG connection. The amended supply order also bars them
from obtaining any LPG refill.
● Individuals having both LPG and PNG connections must immediately surrender their domestic LPG connection. The
move comes amid LPG imports being affected due to the closure of the Strait of Hormuz.
● India imports about 60% of its cooking gas requirements. About 90% of LPG imports are routed through the Strait
of Hormuz.
● The Ministry of Petroleum and Natural Gas directed that propane and butane be utilised to increase cooking gas
production. LPG is a mixture of propane and butane.
● The Centre urged commercial users to switch from LPG to PNG where possible. The objective is to ease pressure
on LPG supplies amid the ongoing geopolitical situation.

India’s thermal independence…

● Industrial clusters like Morbi and Ludhiana are facing disruption due to the U.S.–Iran conflict affecting the Strait of
Hormuz. India imports nearly half of its natural gas and faced gas allocation cuts to 65–80% of contracted volumes
for non-priority sectors.
Concentrated Solar Thermal (CST) technology
● CST uses mirrors to concentrate sunlight onto a receiver. Heats fluids like water or molten salt up to 400°C. Textile
processes require 100°C to 180°C. Parabolic troughs can generate steam directly from sunlight.
● India has 15 GW CST potential.
Electrification of heat
● Traditional systems burn fuel to create heat with inefficiencies. Gas boilers lose 20–30 percent energy in exhaust.
● Electrification replaces flame with electromagnetic fields and plasma.
● Induction heating generates heat directly in the material. Efficiency rates exceed 90 percent.
● Ceramic units experimenting with plasma torches. Plasma allows precise temperature control.
● Industrial heat accounts for around 25 percent of India’s total energy consumption.
● CST generates on-site thermal energy. Allows storage in insulated tanks. Enables operation without drawing from
the national grid. Thermal storage cheaper than lithium-ion battery storage.

Ethanol Blending…

Why in news: Debate on ethanol blending in petrol resurfaces due to concerns over food security, vehicle compatibility,
and consumer choice in India.
● Ethanol (ethyl alcohol) is a biofuel derived from biomass , used as an oxygenate in petrol to improve combustion.

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● Sources : C-heavy molasses (28–32%), B-heavy molasses (48–52%), sugarcane juice/syrup/sugar, damaged grains
like broken rice/maize, and lignocellulosic biomass.
● Process : Fermentation of sugars → ethanol + CO ₂ (via invertase and zymase enzymes).
● Lower calorific value than petrol → less energy per litre. Higher octane number than petrol → better knock resistance.
● Ethanol blending began after the 1970s oil shock. Promoted as carbon neutral.
● India’s Case: Import substitution can save $10 billion annually. Gains offset by $10 billion fertilizer imports.
Technical and Vehicle Concerns
● Mileage drop from E10 → E20 is minor , becoming significant only at higher blends.
● Ethanol is hygroscopic , absorbing water → causes corrosion, rust, clogged fuel lines.
● Damages rubber/elastomer parts (pipes, tanks, injectors, filters), but not the combustion chamber.
● BS-IV/BS-VI vehicles manage better; issues limited.
● Older carbureted vehicles (pre-2020, ~95%) lack ECUs and cannot adjust to E20.
● ECU-equipped vehicles adapt air-fuel ratio and spark timing , reducing NOx, PM, CO emissions. For E20, engines
may need spark timing advanced by 2–3°. Government: replacing rubber/gaskets is a one-time, low-cost fix.
Impact in India So Far
● Ethanol blending rose from 1.5% (2014) to 20% (2025).
● New vehicles (since 2023) carry E20 compatibility stickers; older ones need material replacement.
● Sugarcane is water-intensive (60–70 tonnes water/tonne), stressing aquifers in Maharashtra and other low-rainfall
areas. 30% of India’s land degraded (Desertification Atlas 2021).
● India adopted two ethanol-specific norms , planning E27 like Brazil.
Types
● E5: Contains 5% ethanol and 95% petrol. This was the early standard in India’s blending program.
● E10: Contains 10% ethanol and 90% petrol. Most Indian vehicles manufactured after 2001 are compatible with E10.
● E20: Contains 20% ethanol and 80% petrol. India achieved nationwide rollout by 2025, five years ahead of the original
2030 target under the National Policy on Biofuels. Requires E20-compliant engines to avoid long-term damage to
rubber and plastic parts. E20 is produced from sugarcane, rice, and maize.
● E27: Contains 27% ethanol and 73% petrol. GoI announced plans to target 27% blending by 2030.
● E85 (Flex Fuel): Contains 85% ethanol and 15% petrol. Used in Flex-Fuel Vehicles (FFVs), which can automatically
adjust to any blend of ethanol and petrol.
● E100: Represents 100% pure ethanol. This is used as a standalone fuel in specially designed engines, primarily in Brazil
and under trial for commercial vehicles in India.
● Engine Health: Higher blends (above E10) can be corrosive to older engines not designed for them. Performance:
Ethanol has a higher octane rating (reducing engine "knock") but lower energy density, which can cause a slight
(3-6%) drop in fuel mileage.
● 1G: Made from food crops (sugarcane, corn, wheat). 2G: Made from agricultural waste (rice straw, corn husks). 3G:
Made from algae or industrial waste gases. 4G: Produced by genetically engineered microbes or algae that directly
convert captured and green hydrogen into fuel.
Butanol and ABE Biofuels
● Butanol & ABE (acetone-butanol-ethanol) mixtures are superior to ethanol as fuels.
● Produced by solventogenic Clostridia , capable of fermenting cellulosic & hemicellulosic substrates.
● Clostridium beijerinckii BA101 – a butanol tolerant, high-yield strain.
Biohydrogen
● Fuel cells: ~50% electrical efficiency, higher than most thermal technologies.
● Produced via heterotrophic acid fermentation of glucose → ABE solvents / carboxylic acids, with max yield: 4 mol
H₂ per mol glucose. Key enzyme: Hydrogenase.
● Clostridium (high-yield), Bacillus (wastewater hydrogen), Caldicellulosiruptor saccharolyticus (92% theoretical
yield, pulp-paper waste carbon).
Photosynthetic Biohydrogen
● Carbon-neutral, requires chlorophyll, water, CO₂, light.
● Cyanobacteria solutions:
○ Spatial segregation – vegetative cells (oxygen), heterocysts (hydrogen).
○ Temporal segregation – photosynthesis (day), hydrogen evolution (night).
● Photosynthetic bacteria: can perform water-gas shift reaction at room temperature → hydrogen generation.
Biodiesel
● Produced by transesterification of plant & animal fat (triglycerides) with methanol + KOH catalyst.
● Novel catalysts: amorphous carbon, SiO₂-ZrO₂, ion exchange resins – recyclable & cleaner.
● Carbon footprint: ~55% CO₂ reduction, lower SO₂, CO, particulates.
● Concerns: higher NOx, hydrocarbon emissions, soot mutagenicity.
Chemically Synthesised Liquid Fuels
● Via pyrolysis → produces syngas (CO + H₂). With transition metal catalysts, syngas → liquid fuels.
● Lignocellulosic biomass use: ~90% fossil fuel emission reduction. Low SO₂ generation. Utilises woody low-grade
land material → reduces land-use pressure.

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E20 - RON 95

● Centre has mandated sale of petrol with up to 20% ethanol and a minimum Research Octane Number (RON) of 95
from April 1. This shift boosts fuel quality , reduces knocking (pre-ignition), and improves engine efficiency in
high-compression engines, contributing to reduced carbon emissions.
● RON is a standard measure of a petrol engine's resistance to " knocking " or "pinging" during combustion.
● Knocking causes premature wear and tear, reducing engine efficiency. Higher RON reduces engine knocking, enabling
higher compression ratios and better performance.

Bamboo-based Ethanol…

Why in news: PM inaugurated the country’s first bamboo-based ethanol plant in Golaghat district, Assam.
● He also laid the foundation stone for a ₹7,230-crore polypropylene plant at the Numaligarh Refinery.
● Described as the world’s first to produce ethanol from green bamboo.

Ethanol - Cooperatives…

Why in news: Padma Shri Vitthalrao Vikhe Patil pioneered the world’s first cooperative sugar factory, bringing
prosperity to farmers in Maharashtra, Gujarat, Karnataka, and Uttar Pradesh.
● Amit Shah urged sugar cooperatives to adopt multi-feed ethanol production using vegetable waste, corn, and rice
during the non-crushing season. National Cooperative Development Corporation (NCDC) will finance these
conversions, and cooperatives will be prioritised over private entities for ethanol procurement.

Isobutanol + Diesel…

Why in news: Transport Minister announced that the Automotive Research Association of India is exploring the
possibility of blending isobutanol with diesel after efforts to blend ethanol with diesel failed.
● Isobutanol is an alcoholic compound with flammable properties, used as a solvent in industries such as painting. It can
also serve as a biofuel, offering potential for emission reduction and import substitution in India’s energy mix.
● Isobutanol blends better with diesel than ethanol, without requiring additives. It has a higher flash point than ethanol
— making it less volatile and safer. Ethanol’s low flash point was one reason it was deemed unsuitable for diesel
blending. There is a surplus of ethanol in India; diverting part of this feedstock for isobutanol production could utilise
excess capacity and support sugar mills.
● The India Sugar and Bio-Energy Manufacturers Association (ISMA) noted that ethanol supply potential exceeds 50%
of the requirement for 20% petrol blending.
● Feedstock: Isobutanol can be made from sugarcane syrup, molasses, or grains — the same as ethanol.
● Process: Specially engineered microbes ferment natural sugars to produce isobutanol instead of ethanol. Production
requires only minor retrofitting of existing ethanol plants.
Technical and Performance Issues
● Miscibility: Diesel and isobutanol may have limited miscibility , which can be improved by adding biodiesel.
● Cetane number: Isobutanol has a significantly lower cetane number than diesel, meaning slower ignition and less
efficient combustion. Lower cetane can cause diesel knock (uneven fuel burning) and engine damage.
● Safety: A higher flash point makes isobutanol safer to handle compared with ethanol.
● If successful, India would be the first country to achieve diesel blending with isobutanol.

Green Ammonia and Green Methanol…

● The government announced standards for green ammonia and green methanol under the National Green Hydrogen
Mission. The mission aims to make India a global hub for production, utilisation and export of green hydrogen and
its derivatives.
● Standards outline emission thresholds and eligibility norms to classify ammonia and methanol as ‘green’.

Blue-green Ammonia…

Why in news: Combining blue and green ammonia production pathways provides cost and efficiency advantages.
● The blue pathway uses natural gas with carbon capture, while the green pathway uses renewable-powered
electrolysis. The hybrid design utilizes oxygen from electrolysis in the natural gas reforming step and air as the
nitrogen source. This approach reduced the levelised cost of ammonia by 7% compared to standalone plants.
● It also cut lifecycle greenhouse gas emissions by 63% , making the process more sustainable and cost-effective.

● Challenge: High production costs → less competitive vs fossil fuels. If economical, better CO₂ & particulate
reduction than E85 (gasoline-ethanol blend).
Microalgal Biodiesel
● Productivity up to 100x higher than best oilseed crops. Can be grown in pond systems using CO₂ from flue gas of
thermal plants. Heterotrophic algae cultivation (e.g., Chlorella protothecoides, Scenedesmus obliquus) → high
triglyceride accumulation using corn hydrolysate.

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Green Ammonia Route…

● India Energy Week (IEW) held in January 2026 (India's premier global energy event organized by the Ministry of
Petroleum and Natural Gas and FIPI , aiming to bolster energy security , sustainable transition, and investment, with
the 2026 edition held in Goa ).
● Green ammonia — produced by combining nitrogen with green hydrogen.
● Recently, a tender was concluded by the Solar Energy Corporation of India (SECI) under the Strategic Interventions
for Green Hydrogen Transition (SIGHT) programme of India’s National Green Hydrogen Mission.
● Green ammonia is ammonia produced using renewable energy , typically via water electrolysis to produce hydrogen ,
which is then combined with nitrogen. It is a 100% carbon-free alternative to "grey" ammonia, aimed at decarbonizing
fertilizers, marine fuel , and long-term energy storage.

Extracting and Producing Nickel…

Why in news: Nickel powers gadgets, EVs, and green technologies , but its extraction process is carbon-intensive and
polluting. Producing 1 tonne of nickel can emit 20+ tonnes of CO ₂. While EVs are clean in operation, battery material
sourcing shifts pollution to mining and processing sectors.
New Hydrogen Plasma Method
● Uses hydrogen plasma instead of carbon as the reducing agent in an electric arc furnace.
● Hydrogen gas is converted to plasma (high-energy ions) that rapidly reduces metal oxides.
● The byproduct is water (H ₂ O) instead of carbon dioxide (CO₂).
● Single-step, carbon-free process that is: 18% more energy efficient, Cuts CO ₂ emissions by 84% compared to
conventional methods.
● Works effectively on laterite ores (abundant but lower-grade). India’s Odisha Sukinda region has significant nickel
laterite deposits (0.4%-0.9% nickel). Reduces India's dependence on imported high-grade ores.

AC Temperature…

Why in news: The Union Ministry of Power is considering restricting the temperature range of new ACs in India to
20–28 degrees Celsius for households, hotels, and cars.
● In 2018, BEE issued voluntary guidelines to commercial establishments like airports, hotels, malls, offices,
government buildings for optimum temperature settings. In 2020, government mandated a default setting of 24°C for
air conditioners but allowed users to change settings.
● According to BEE estimates , air conditioning load in India may reach 200 GW by 2030. India’s current cooling
demand is about 50 GW, which is one-fifth of India’s peak power demand.
● Every 1°C increase in AC temperature setting saves 6% of electricity consumption. Temperatures below 18°C are
“uncomfortable” & “unhealthy” as they raise blood pressure through vasoconstriction & sympathetic activation.
Systolic blood pressure rises by 6-8 mm (Hg) at lower temperatures, raising long-term hypertension risk.
● Some studies suggest 16–19°C for healthy young adults improves sleep quality. Infants and older adults may prefer
around 19°C due to weaker thermoregulation. WHO’s 2018 Housing and Health Guidelines recommend 18°C minimum
for safe living-room temperature in cooler climates. 2016 longitudinal study : people 50+ in spaces under 18°C had
higher blood pressure, lower vitamin D, poorer lung function.

Copper Wire…

Why in news: India’s copper cathode imports declined 34% y-o-y in FY25 , mainly due to a three-month supply
disruption caused by a QCO.
● Copper is a critical mineral due to limited domestic production and its use in EVs, ACs, and wind turbines.
● India imports 30% of its copper cathode demand. The QCO mandates BIS certification for both domestic and foreign
copper cathode suppliers to sell in India. Most Japanese producers received BIS certification only after QCO
enforcement.

Energy Stack…

Why in news: The India Energy Stack (IES) is being proposed as a digital public infrastructure for the power sector,
aiming to transform energy access, usage, and trading.
● Aims to integrate the fragmented power ecosystem — producers, grid operators, consumers, exchanges, and
regulators. Enables peer-to-peer energy trading and compliance with carbon offsetting.

● Copper wire imports rose 17% , mainly from UAE. Imports rose despite the QCO enforced by DPIIT.
● Domestic copper cathode production increased 12.6% in FY25. Hindalco Industries Ltd produced 70%. India was
self-sufficient in copper cathode until 2018 , when Vedanta’s Tuticorin plant shut down.

● In India, electricity is a concurrent subject.
● The IES will enable unique identification , data integration , and digital system interoperability.
● IES could foster a new energy ecosystem including energy fintech , virtual power plants , and peer-to-peer trading.
● Prosumers could buy surplus energy , store in batteries , or sell rooftop solar at peak prices.
● IES would support decentralisation and enable prosumers to manage assets more actively and efficiently.

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● Maharashtra, UP, Punjab, Gujarat, Tamil Nadu, Karnataka, Rajasthan, West Bengal, MP and Andhra Pradesh account for
70% of India’s electricity consumption.
● Total installed capacity grew from 305 GW in 2015–16 to a projected 475 GW in 2024–25.
● As of June 2025 , India has already achieved 235.7 GW from non-fossil fuel sources , including 226.9 GW of renewable
energy and 8.8 GW of nuclear power. This accounts for 49% of the total installed power generation capacity of 475
GW. In 2017 , the per unit cost of solar power fell below that of coal power , spurring business interest in
ground-mounted solar projects.
● Indian-made solar modules are 1.5–2 times more expensive than those from China due to China’s larger capacity, raw
material control, and superior production lines.

Building-Integrated Photovoltaics…

Why in news: India has installed over 17 GW of rooftop solar (RTS) capacity. RTS is increasingly important for the urban
renewable energy transition , but is limited by scarce shadow-free rooftop spaces.
● To scale further, India needs to move towards Building-Integrated Photovoltaics. BIPV integrates solar elements
directly into the architectural components of buildings. Serves dual purpose : electricity generation & acting as
structural element. Unlike RTS systems, BIPVs are embedded in façades, roofs, windows, railings.
● Key BIPV installations include : CtrlS Datacenters , Navi Mumbai, Renewable Energy Museum , Kolkata – solar dome,
Jindal Steel & Power , Odisha – large BIPV setup, Railway stations in Vijayawada and Sahibabad.
● India’s PM Surya Ghar Muft Bijli Yojana (2024) includes BIPV for limited rooftop areas.
● India aims for 300 GW solar by 2030 — this can’t be met by rooftop and ground-mounted systems alone.
● Perovskites are commonly used in photovoltaic (PV) solar cells. They are called “metal-halide perovskites” as they are
made of a combination of organic ions, metals, and halogens. Name “perovskite” comes from their crystal structure.
Metal-halide perovskites serve as the main absorbing material or “active layer” in Perovskite Solar Cells. A thin layer of
perovskite absorbs light, exciting electrons, which when extracted, generate electric power.

Silicon PVs - Green Hydrogen…

Why in news: Silicon photovoltaics are the most widely adopted renewable solution.
● Invented in 1954 by Bell Labs , first used in satellites, later adopted globally. Current panels 18-21% reported efficiency ,
in-field 15-18%. Around 80% of global supply from China ; India’s production at 6 GW and rising.
● Higher efficiency tech like gallium arsenide thin-film (47%) already demonstrated.
● Lower efficiency of silicon means larger land area required; land scarcity worsens challenge.
Costs of Green Hydrogen
● Produced via electrolysis using renewable electricity. Environment friendly but energy-intensive , needing more
energy for production than its usable value. Storage and transport difficult due to low density and leakage.
● Alternatives : conversion into green ammonia (NH3) or green methanol (CH3OH) for easier transport, but
reconversion requires more energy.
CO2 Recycling and Future Technologies
● Artificial photosynthesis (APS): mimics natural photosynthesis using water, sunlight, CO2/N2 to produce fuels.
● Renewable Fuels of Non-Biological Origin (RFNBO): being pursued in Europe; India must also invest.

Revamped Distribution Sector Scheme (RDSS)…

● Installation of rooftop solar power plants is being expedited in Rajasthan under RDSS to reduce transmission and
distribution losses and improve power supply quality.
● Fixing meters on transformers has also been taken up rigorously under the RDSS.
● The Centre’s nodal agency for RDSS is the Rural Electrification Corporation (REC).
● The RDSS is aimed at modernising power distribution and making it more efficient and financially stable , with focus
on smart metering, infrastructure upgrades and reforms, while funding is linked to performance targets.

RTS…

Why in news: Only 13.1% of the targeted 1 crore solar rooftop installations under the PM Surya Ghar Yojana achieved.
● The PMSGY is a Centre-led initiative aimed at encouraging households to install rooftop solar systems, with the
government providing capital upfront via loans.
● Subsidy disbursements crossed $1.05 billion benefiting over 16 lakh households. The 4.9 GW of installations under
PMSGY accounted for 44.5% of India’s total residential rooftop capacity as of 2025.
● The PM solar scheme incentivises only “DCR-compliant modules” , i.e., solar components entirely manufactured in
India. These DCR-compliant modules are costlier by ₹12/watt compared to imported variants.

Panchet Solar Issue…

● Panchet Dam (1959) is the last of the four multipurpose dams built under the first phase of the DVC.

● Utility Intelligence Platform is a key application layer of IES that would enable integrated digital energy services.

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● The project will install floating solar panels on the reservoir surface and a ground-mounted solar PV system.
● This follows India’s ‘Panchamrit goals’ announced at COP26, Glasgow (2021).
○ Non-Fossil Capacity: Reach 500 GW of non-fossil energy capacity by 2030.
○ Renewable Energy: Meet 50% of total energy requirements from renewable energy sources by 2030.
○ Emission Reduction: Reduce total projected carbon emissions by one billion tonnes between 2021 and 2030.
○ Carbon Intensity Reduction: Lower the carbon intensity of the economy by 45% by 2030, compared to 2005 levels.
○ Net-Zero: Achieve the target of net-zero carbon emissions by the year 2070.
● Renewable energy projects , especially solar , are land-intensive in a land-scarce country like India. Such projects are
often exempted from mandatory social and environmental impact assessments.
● 48% of renewable energy project conflicts are located on common lands. These common lands have historically been
used by indigenous communities, Dalits, and Adivasis.

Global Solar Expo–Rajasthan 2025
● Organised by EQ International , the expo served as a platform for industry leaders, policymakers, and innovators to
showcase cutting-edge solar technologies.

Solar Rise…

Why in news: India added 24.5 GW of solar energy capacity in 2024 , becoming the third-largest contributor globally
after China and the US. UN Secretary-General’s 2025 Climate Report recognises India, alongside Brazil and China , as a
leading developing country in scaling solar and wind energy.
● According to IRENA, if India follows a 1.5°C-aligned pathway, it could achieve 2.8% average annual GDP growth
through 2050, more than double the G-20 average.
● By December 2024, India’s cumulative green, social, sustainability and sustainability-linked (GSS+) debt issuance
reached $55.9 billion, a 186% increase since 2021, with green bonds accounting for 83%.
● Green bond investment crossed $45 billion in 2025, with sustainable finance targets aiming for $100 billion by 2030.
The private sector contributed 84% of total green bond issuance.
● Successful examples include solar energy auctions under the Solar Park Scheme, sovereign green bonds, and
SEBI-regulated social bonds channeling funds into climate action, education, and health care.
● Rajasthan holds the highest solar power potential in India, with an estimated capacity of over 142 GW, driven by its
vast, arid land and high solar irradiance. Other top states include Gujarat, Karnataka, and Tamil Nadu, which dominate
in capacity. Conversely, Northeastern and Himalayan states like Arunachal Pradesh and Jammu & Kashmir have lower

potential due to rugged terrain and limited sunlight.

Solar Modules…

● India’s solar module manufacturing has increased to more than twice since last year.
● Solar module manufacturing has increased 128.6% on a YoY basis to 144GW in 2025. 63 GW in 2024.
● Most of the world’s biofuels come from sugarcane , cereal crops such as corn, and oil crops such as soybean and palm
oil. These are mostly grown in Brazil , the United States , the European Union, and Indonesia.
● Collectively, these biofuels produce around 4% of the world’s energy demand for transport.
● Once we consider the climate impact of growing the food and manufacturing the fuel, the carbon savings relative to
petrol can be small.
● Solar panels convert 15% to 20% of sunlight into electricity, with some recent designs achieving 25%.
● That means replacing crops with solar panels will generate a lot more energy.

Solar Ingot…

● MNRE said from June 2028 , only ingots and wafers made in India would be eligible for domestic projects.
● Solar ingots and wafers are constituents of solar cells fitted on solar panels.
● The Ministry announced the Approved List of Module Manufacturers (ALMM) List-III for Ingots and Wafers. The
ALMM is a list of firms making the components. Such an ALMM list already exists for manufacturers of solar cells
and modules. The ALMM is a compulsory registration regime by the MNRE , first issued in 2019.
● Only ALMM-listed modules can be used in government-funded, open-access and net-metering solar projects.
● These include PM Surya Ghar , PM Kusum scheme and Solar Energy Corporation of India tenders.
● Only domestic produce are eligible for Production-Linked incentives.
● Suitable grandfathering provisions have been built in to protect projects already in the pipeline.
● The order extends mandatory sourcing needs from ALMM lists for modules and cells to include ingots and wafers.
Ingots and wafers are heavily import-dependent.
● India has targeted adding 280 GW of solar capacity by 2030. India had installed about 132 GW as of Nov 2025.

Battery Energy Storage Systems…

Why in news: BESS offers grid stability and enables better integration of renewables.
● BESS supports peak load management, demand-supply balance , and decentralised energy systems.

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● By enabling microgrids , it ensures clean and resilient energy access even in remote areas.
● Battery costs have dropped by 90% in the past 15 years, but regulatory, financial, and technical barriers persist.
● India targets 500 GW non-conventional energy capacity by 2030.
● Govt plans to install 47 GW of BESS by 2032 to support renewable deployment and grid integration. A pilot BESS
project in Delhi by BSES Rajdhani, IndiGrid, GEAPP aims to create a technical playbook and regulatory reforms.

Sodium-ion Technology…

● By 2024 , global lithium-ion manufacturing capacity had reached nearly 2.5 times annual demand , further
accelerating cost reductions through economies of scale. As a result, costs have fallen dramatically, from nearly $1,100
per kWh in the early 2010s to about $108 per kWh in 2025.
● These batteries are highly resource-intensive and depend on critical minerals.
● GoI has made sustained efforts to build domestic battery manufacturing capacity , most notably through the PLI
scheme for Advanced Chemistry Cells (2021). Under this scheme, around 40 GWh capacity has been allocated so
far. Just over 1 GWh commissioned to date.
● Sodium-ion batteries exhibit lower specific energy (Wh/kg) than lithium-ion batteries, because sodium has a higher
atomic mass than lithium, which leads to more mass per unit of stored energy. Layered oxide sodium-ion batteries are
now approaching the specific energy of lithium iron phosphate (LFP) batteries.
● Safety is one of the most compelling advantages of sodium-ion batteries. Sodium-ion cells exhibit significantly lower
peak temperature rise during thermal runaway events compared to lithium-ion cells.
● Lithium-ion batteries are classified as “Dangerous Goods” by national and international transport authorities,
necessitating strict packaging, handling, and transportation requirements.
● Sodium-ion batteries are compatible with existing lithium-ion manufacturing infrastructure.
● Sodium-ion batteries require more stringent vacuum drying conditions , as residual moisture can have a greater
negative impact on performance. While lithium-ion cells can tolerate drying at mild vacuum levels.
● Sodium is derived from abundant resources such as soda ash , which are far more geographically diversified than
lithium. Several sodium-ion chemistries eliminate the need for critical minerals.
● In addition, sodium-ion batteries use aluminium as the current collector for both electrodes. Aluminium is cheaper,
lighter, and more widely available than copper, resulting in cost savings and weight advantages.

ACC-PLI…

● Delays in visa approvals for Chinese technical specialists , requirements that mandate local manufacturing & lack of
critical technologies threaten govt’s ACC-PLI scheme.
● The scheme was launched in October 2021 to catalyse domestic, next-generation battery manufacturing.
● As of October 2025 , however, only 1.4 GWh worth of battery cells have been commissioned.
● The 2021 plan had envisaged battery cell-manufacturing capacity of 50 GWh by 2026.
● Advanced Chemistry Cells are components of modern batteries using technologies such as lithium-ion.
● They are different from the lead-acid batteries that start a car or run inverters.
● The scheme, launched by the Ministry of Heavy Industries , promised emergent battery manufacturers a financial
incentive for every battery sold.
● It aimed to build a local battery supply chain and accelerate EV adoption and energy storage.
● China is dominant supplier of such battery cells. With an outlay of ₹18,100 crore , ACC-PLI sought to attract large
companies by mandating a ₹1,100 crore investment.
● Companies would receive maximum subsidy of ₹2,000 per kWh.
● Companies have to ensure 25% local manufacturing within two years, and 60% within five years.

Aadhaar-like Number for EV batteries…

● The Transport Ministry has proposed assigning Aadhaar-like unique identification numbers to EV batteries to ensure
their end-to-end traceability and efficient recycling.
● The proposed framework will make it mandatory for battery producers or importers to assign a 21-character
BPAN (Battery Pack Aadhaar Number) to batteries.
● They will also have to upload the relevant Battery Pack Dynamic data on the official BPAN portal.

Decade of Hydropower…

Why in news: The Arunachal Pradesh Cabinet declared 2025-2035 as the ‘Decade of Hydropower’.
● Arunachal aims to harness its potential to generate 58,000 MW of electricity through hydropower.
● Arunachal Pradesh will receive 12% free power from each HEP, plus 1% for local area development fund as per
agreements. These projects aim to generate 19 GW of electricity.
● Cabinet approved creation of escrow account for effective utilisation of free power revenues. Move aims to enable
strategic financial decisions for long-term sustainable growth and prosperity.
● Centre declared Siang Upper Multipurpose Project a national project in 2008 due to its national significance. The
SUMP is seen as a counter to China’s proposed 60,000 MW project on the Yarlung Tsangpo River in Tibet.

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Geothermal Pilots…

Why in news: India’s new national policy on geothermal energy aims to build on interest from research firms in the US,
Iceland, and Norway to test its commercial viability. Companies from Iceland and Norway are exploring R&D and pilot
projects in the Gulf of Cambay, Arunachal Pradesh, and Uttarakhand.
● Geothermal energy taps the earth’s heat from hot water springs or underground reservoirs, using steam to spin
turbines, generate electricity. It is renewable and can be used for heating, cooling, greenhouses, and aquaculture.
● The Geological Survey of India (GSI) has mapped 381 hot springs with surface temperatures between 35°C and 89°C,
which the MNRE policy seeks to support for exploration and development.
● India has an estimated 10.6 GW of geothermal potential , which could increase with further exploration.
● Key sites include the Himalayan Geothermal Province (Uttarakhand, Himachal Pradesh, Ladakh, Jammu and Kashmir,
Arunachal Pradesh), the Cambay Graben in Gujarat, and the Andaman and Nicobar Islands.
● Globally, less than 17 GW of geothermal capacity is harnessed, led by the US, Indonesia, and the Philippines , while
Iceland and Norway have pioneered innovative technologies.
● According to the IEA, China, the US, and India have the largest market potential for next-generation geothermal
electricity, accounting for three-quarters of the global total. IEA estimates India’s geothermal market potential to
reach 4.2 GW by 2035 and nearly 100 GW by 2045.

Local Sourcing Norms…

Why in news: As India targets 500 GW of non-fossil energy capacity by 2030 , wind energy is expected to contribute
one-fifth of that goal. Only 4% of India’s 1.1 TW wind potential has been tapped.
● MNRE has revised the Revised List of Models & Manufacturers ( RLMM) guidelines, mandating local sourcing of critical
components like blades, gearboxes, generators, and towers.
● India has over 20 GW turbine manufacturing capacity , but only 20% is utilised ; blade capacity is 28 GW and
generator capacity is 17 GW , both underutilised.
● Wind turbines are grid-connected, data-exchanging systems & a single breach could lead to national grid failure.

Wind Energy vs Birds…

Why in news: In H1 2025 , India added 3.5 GW wind capacity (82% YoY growth), taking total to 51.3 GW.
● India’s gross wind potential at 150m height estimated at 1163.9 GW (National Institute of Wind Energy).
● Thar Desert wind farms show highest bird mortality globally, including Great Indian Bustard.
● Mortality rate: Thar Desert = 1.24 birds/turbine/month vs. earlier 0.47/year (Kutch, Davangere).
● Factors : bird density, infrastructure density, configuration, geography, season.
● Thar Desert is part of the Central Asian Flyway , a major migratory route. Raptors most affected. Power line collisions
also contributed to mortality.
● Global offshore wind capacity: ~83 GW. India targets 30 GW offshore wind by 2030.
● National Offshore Wind Energy Policy mandates EIAs, unlike other renewables. Gulf of Khambhat rapid EIA:
documented 5 marine mammals (including dolphins, sharks) and one reptile.

New Wind Energy Capacity…

Why in news: 6.34 GW of new wind capacity added, the highest-ever annual addition.
● India is moving towards the goal of achieving 500 GW of renewable energy by 2030, with wind power contributing
100 GW or more. India currently has 54 GW of installed wind energy and 30 GW under implementation.
● Tamil Nadu, Karnataka, Andhra Pradesh together contribute almost half of India’s total wind capacity of 54 GW.
● India’s wind industry has 70% local content and under the Atmanirbhar Wind Mission , the goal is to increase this to
85% by 2030. GST on wind equipment has been reduced from 12% to 5%, cutting turbine cost.
● With Approved List of Models and Manufacturers (ALMM) – wind framework , India can meet 10% of global wind
demand by 2030 and up to 20% by 2040, emerging as a global hub for turbine and component manufacturing.
● Government launched a Viability Gap Funding scheme for offshore wind projects , targeting 1 GW in the first phase —
500 MW each off Gujarat and Tamil Nadu.
● Capacity added in 2025 is 85.4% higher than the capacity added in the preceding calendar year.

Nuclear Energy Targets…

● Using the correlation between HDI and per capita Final Energy Consumption (FEC) , one can determine the energy
needed to reach a specific HDI. To reach HDI 0.9 , India will need to generate about 24,000 TWh per annum.
● About 60% will be used as electricity , and the rest to generate hydrogen in electrolysers. Hydrogen is needed to
decarbonise sectors such as steel , fertilizers , and plastics. When alternative hydrogen processes are developed at
scale, less electricity will be needed.

SMRs…

Why in news: Rail Vikas Nigam Ltd (RVNL) is in talks with Russia’s Rosatom to build SMRs for energy needs of four
mega rail projects , including the Rishikesh-Karnaprayag line.

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● SMRs are advanced nuclear reactors with capacity up to 300 MW & require less installation space. Nuclear Energy
Mission under Budget 2025–26 allocated Rs 20,000 crore for SMR R&D. Mission targets 5 indigenously designed and
operational SMRs by 2033. India aims to achieve 100 GW nuclear power capacity by 2047 & net zero by 2070.
● India’s three-phase nuclear power programme was envisioned by Dr Homi J Bhabha and Dr Vikram Sarabhai, focusing
on energy security through optimal fuel use.
● Stage 1: Utilises Pressurised Heavy Water Reactors with natural
uranium fuel, producing plutonium-239 (Pu239) and using heavy
water as coolant and moderator; supplemented by imported Light
Water Reactors (LWRs).
● Stage 2: Involves Fast Breeder Reactors like those at Kalpakkam,
using plutonium-based fuel, which can breed U-233 from thorium,
enhancing fuel sustainability. Reprocessing of spent fuel is essential
in Stage 2 to utilise plutonium and fertile thorium efficiently.
● Stage 3: Based on the Thorium-U-233 (Th–U233) cycle, aiming
to use U-233 in advanced thermal and fast reactors like the
Advanced Heavy Water Reactor. Molten Salt Reactors are also
being explored as a Stage 3 alternative, enabling long-term energy
security through thorium utilisation.
● Bihar will be among the first states in India to get its first atomic plant under Nuclear Energy Mission. Alongside the
nuclear plant, the Centre has approved a 1,000 MW battery storage capacity project in Bihar to enhance grid stability
and support renewable energy integration.
● COP28 ‘Declaration to Triple Nuclear Energy’ , IAEA–World Bank collaboration to support nuclear in developing
nations. (Mahi Banswara Rajasthan Atomic Power Project to come up near the Mahi Dam. 2,800 MW plant will feature
4 x 700 MWe indigenous PHWRs, developed by Anushakti Vidhyut Nigam (ASHVINI) JV of NPCIL and NTPC).

Clean Core Thorium Energy (CCTE)…

● CCTE received an export licence from the US Department of Energy to sell nuclear technology to India and will
partner NTPC Ltd on thorium-based nuclear fuel. Chicago-based Clean Core Thorium Energy (CCTE) is only the
second American company in nearly two decades to receive such an export licence.
● NTPC Ltd , India’s largest power utility , will partner CCTE to develop thorium as an alternative to uranium. The move
comes amid closer India–US cooperation on atomic energy.
● The investment aligns with NTPC’s goal of setting up 30 GWe of atomic energy capacity by 2047. NTPC is exploring
an entry into the nuclear fuel cycle in line with India’s strategic objectives.
Thorium and Energy Security
● The move signals plans to deploy thorium-based fuel in India’s Pressurised Heavy Water Reactors (PHWRs). This
could strengthen energy security and fuel security.
● Thorium has been viewed since 1954 as a long-term solution due to its abundance in India.
● Thorium produces less long-lived radioactive waste and has lower proliferation risk. India has limited uranium
reserves but abundant thorium deposits.
ANEEL Fuel and PHWR Deployment
● Clean Core’s fuel is called ANEEL (Advanced Nuclear Energy for Enriched Life). ANEEL combines thorium with small
amounts of enriched uranium. It can potentially be deployed in existing or new PHWRs. This approach uses
domestically available thorium. It improves safety , proliferation resistance , and reduces nuclear waste.
Three-Stage Nuclear Programme
● Thorium can be converted to fissile uranium in PHWRs. This can be done through irradiation of thorium with HALEU
uranium fuel. It allows an earlier launch of the thorium phase without waiting for large fast breeder capacity. PHWRs
form the first stage of the programme.
● Used fuel from PHWRs can be recycled. It can support additional power generation, including molten salt reactors
(MSRs). This can accelerate energy independence from imported nuclear fuel.
● Most global nuclear powers focus on light water reactors (LWRs). LWRs use normal water as coolant and moderator.
The SHANTI Act opens doors for imported LWR-based reactors.
● Department of Atomic Energy’s 3-stage power programme envisages utilising India’s abundant thorium reserves
found in coastal sands of Kerala, Tamil Nadu, Odisha, Andhra Pradesh, Maharashtra, Gujarat and inland riverine
sands of Jharkhand and West Bengal to generate electricity.
● 2nd stage of the 3-stage plan involves FBRs , where operational progress has been slow.
● PHWRs are suited to handling thorium because heavy water absorbs fewer neutrons , increasing fission efficiency.
● There are over 45 PHWRs worldwide : 19 in India , 17 in Canada , three each in Argentina and South Korea , and two
each in China and Romania.
Thorium:
● Radioactive metallic element named after a Norse god , has long been seen as key to India’s energy security.
● It has been promoted as an alternative to uranium since 1954 due to greater abundance , lower long-lived
radioactive waste , and reduced proliferation risk.

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● Thorium is not fissile like uranium , as its atoms do not easily split on absorbing a neutron. Thorium is fertile and can
absorb neutrons to transform into uranium-233 , which is fissile and can release nuclear energy.

HALEU-Th fuel…

● A report in the journal Current Science by scientists at the Bhabha Atomic Research Centre (BARC) compared
different uranium fuel mixes for nuclear power. The study concluded that HALEU-thorium (HALEU-Th) was
unsuitable for India’s current fleet of reactors.
● The conclusion was criticised by nuclear scientist Anil Kakodkar as “misleading”. The study drew a reaction from
Clean Core Thorium Energy (CCTE). CCTE is led by Indian-origin entrepreneur Mehul Shah. CCTE has developed a
HALEU-Th fuel called ANEEL.
● In 2025 , CCTE reported significant burn-up for HALEU-Th at a reactor run by the U.S. Department of Energy. CCTE
entered an agreement with NTPC to explore use of ANEEL in Indian reactors.
● The study modelled performance of Pressurised Heavy Water Reactors (PHWRs) with three fuel combinations.
These included natural uranium , HALEU-Th , and slightly enriched uranium.
● U-235 sustains a chain reaction. U-238 and thorium act as fertile materials.
● HALEU-Th combination showed highest burn-up of 50 GWd/t. It generated least amount of spent fuel (radioactive
waste). Waste was only 14% of what current reactors produce. Study said HALEU-Th may require significant design
changes in Indian reactors. It reduced the effectiveness of shutdown rods by about 26%.
● The study concluded HALEU-Th is not a ‘drop-in’ option for current PHWRs. Anil Kakodkar , former chairman of the
Department of Atomic Energy , disagreed. He said 700-MWe PHWRs require no modification. He said 220-MWe
PHWRs require negligible modification.
● Dr. Kakodkar suggested India should test the HALEU-Th fuel. He referred to India’s goal of 100 GW nuclear energy
by 2047. He referred to the SHANTI agreement for possible collaboration.
● This reactor marks the second stage of India’s nuclear programme. The aim is to generate plutonium for future
thorium reactors. This could reduce dependence on imported uranium.
● HALEU is considered commercially limited and expensive. Concerns were raised about replacing one import
dependence with another. Experts said India must allow its nuclear programme to unfold naturally.

Private Players in Nuclear…

Why in news: For the first time, India’s nuclear establishment has involved private players in a key nuclear power plant
process previously handled entirely in-house.
● Mumbai-based TEMA India has been entrusted with testing equipment required for upgrading depleted heavy water ,
crucial for PHWRs. Earlier, this testing was done solely by BARC.
● The facility was designed and built by TEMA India’s nuclear vertical under technology transfer from BARC and a
purchase order from NPCIL.
● TEMA India dispatched the first batch of tested distillation column sections for Unit 8 of Rawatbhata Nuclear Power
Plant in Rajasthan. RAPP-8 is scheduled to go critical soon.

China’s Reactor Density Limit…

● Nuclear fusion reactor in China pushed plasma density 65% beyond a special threshold, entering a stable state.
● This overcomes a long-standing barrier to achieving burning plasma , where a fusion reaction becomes
self-sustaining. Fusion power mimics what happens inside the sun.
● Hydrogen atoms fuse into helium , releasing copious amounts of energy.
● The reaction works at extreme temperature , typically more than 100,000,000°C.
● Scientists measure success using the triple product : density, temperature and confinement time.
● All three numbers need to be very high for successful fusion.
● Density is the number of fuel particles that can be squeezed into the reactor.
● More density means more collisions and more fusion.
● For decades, tokamaks , the donut-shaped magnetic vessels, ran into the Greenwald density limit.
● Beyond this limit, the plasma collapses in a disruption that could damage the reactor.
● The Greenwald formula links this limit to the plasma current and reactor size.
● The EAST fusion reactor in Hefei in China reported stable plasmas at densities 1.3x to 1.65x of the limit.

● Heavy water (D ₂ O) is water with deuterium (a heavier isotope of hydrogen) instead of regular hydrogen. It is used
as a coolant and moderator for slowing fast-moving neutrons , essential for sustaining nuclear fission.
● D ₂ O must be 99.9% pure for efficient functioning. Over time, it gets contaminated with light water , requiring the
depleted D ₂ O to be upgraded back to 99.9% using a distillation process.
● There are 24 operational nuclear reactors in India with an installed capacity of 8,780 MW.
● The immediate target is 22.4 GW of installed nuclear capacity by 2032.

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DISCOMs and The Road Ahead…

● DISCOMs , 72 across the country (44 State-owned , 16 private-sector entities, and 12 power departments), face losses,
also called AT&C losses , and the consequent widening gap between the ACS and the ARR.
● State Electricity Boards (SEBs) were formed under the Electricity (Supply) Act, 1948. Section 59 of the law had
originally required SEBs to make a profit of 3% or more, as specified by State governments.
● DISCOMs recorded a positive Profit After Tax (PAT) of ₹2,701 crore in the financial year 2024-25, marking “a
decisive turnaround” from a loss of ₹67,962 crore in 2013-14.
● Govt steps taken: Revamped Distribution Sector Scheme (RDSS) , amendments to the Electricity Rules , and the
introduction of the Late Payment Surcharge Rules.
● RDSS’s objective is to improve the quality and reliability of power through a financially sustainable and operationally
efficient distribution sector, with release of funds linked to execution of necessary measures.
● DISCOMs have been able to achieve the turnaround , essentially due to tariff subsidies received from and the takeover
of losses by their respective governments.
● The present position of DISCOMs enjoying revenue surplus appears to be transient, because when the utilities may
have to effect pay revision for employees in a few years, the probability of them slipping back to square one —
revenue deficit — is quite high.
● As Niti Aayog noted in its August 2021 study on the distribution sector, DISCOMs should be proactive in promoting
the use of solar pumps in agriculture. The political executive must resist the temptation to offer free electricity
universally to domestic consumers.

300 critical mineral exploration projects…

● Geological Survey of India (GSI) plans to pursue approximately 300 projects for exploration of critical minerals in
the upcoming field season. The number of critical mineral exploration projects will increase from 236 to 300.
● About 125 to 150 projects are for exploration of rare earths.
● GSI aims to outdo the target of 1,200 exploration projects for critical minerals before FY 2030-31 under the
National Critical Minerals Mission (NCMM).
● The idea is to give as many probable critical blocks for auction as possible.
● The figure does not include copper , which is classified as a critical mineral. GSI will also undertake approximately
50-60 more projects for copper during the 2026-27 field season.
● Alongside exploration, it is essential to spur midstream processing , transforming critical minerals present in ores for
end-use industrial usability.
● Rare earths are available not only in beach sand , but also inland within rocks like carbonatite or other alkali rocks.
Large deposits of rare earths are present in Assam, Ambadongar in Gujarat, and Siwana in Rajasthan.
● Mining of lithium and nickel in India require an altogether different strategy.
● GSI is exploring the feasibility of a site in Zambia for copper.

Rare earth MoU with Brazil…

● India and Brazil signed an MoU on rare earths and critical minerals during President’s visit to India. The agreement
covers the full mineral value chain including exploration, mining, processing, recycling and refining.
India’s Critical Minerals Strategy
● Union Cabinet approved the National Critical Mineral Mission (2025) covering exploration, mining, beneficiation,
processing and recovery from end-of-life products. Mission period: 2024-25 to 2030-31.
● India published a list of 30 critical minerals (2023). Mines and Minerals (Development and Regulation) Amendment
Act 2023 gives the Centre more power to auction critical mineral blocks.
● Khanij Bidesh India Ltd. exploring overseas acquisitions including in Argentina and Chile.
● India is promoting domestic production of rare earth permanent magnets by 2026 to reduce import dependence in
electric vehicles and defence.
Significance of the MoU for India
● Brazil has substantial reserves , with only about 30% explored. The MoU is non-binding. Enhances India’s bargaining
power by diversifying sources.
Link with Pax Silica
● Pax Silica is a U.S.-led initiative to secure the “silicon stack” supply chain. India joined Pax Silica. India-Brazil MoU
could support supply chain security for minerals. MoU does not make Brazil a Pax Silica member.
● Brazil has reserves of 21 million tonnes rare earth-oxide equivalent , 2.7 billion tonnes bauxite , 270 million tonnes
manganese , and 0.4 million tonnes lithium.

Plastic product prices…

● Plastic product prices are expected to rise by 50-60% from April if the West Asia crisis continues to impact supply
of crude oil. Prices of polymer , derived from crude oil and natural gas , have risen by 50-60% in the last few days.
● Plastic manufacturers are managing with inventory procured before the war , but stocks are fast depleting.
● Manufacturers are procuring raw material based on the order on a day-to-day basis. Pricing of supplies is being
done based on the raw material price.

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Ethyl chloroformate…

● India opened an anti-dumping investigation into ethyl chloroformate imports from China. A domestic producer
alleged the chemical was being sold at unfairly low prices.
● Ethyl chloroformate is used in pharmaceutical and agrochemical manufacturing.
● The Directorate General of Trade Remedies (DGTR) initiated the probe.
● The application alleged that imports from China had caused “material injury” to domestic producers.
● In December , India imposed a three-year import tariff of 11% to 13% on some steel imports. The move was aimed at
curbing cheap Chinese products.
● Ethyl chloroformate is organic chemical intermediate widely used in pharma and agrochemical manufacturing.

Land Reforms…

Why in news: The Centre’s push for land and industrial reforms has led to a reduction in land wastage and a sharp rise
in land records digitisation. In 2020 , the Centre launched the Scheme for Special Assistance to States for Capital
Investment , offering 50-year interest-free loans.
● While some loans were untied, a significant portion was conditional on implementing reforms like road construction,
digitisation, optical fibre, urban reforms, disinvestment, and monetisation.
● 22 States reformed building bylaws for industrial and commercial plots , with 18 States reducing land wastage in
factory plots to below 30%. Earlier, about 50% of factory land was used for parking and setbacks.
● 90% of cadastral maps showing land ownership boundaries have been digitised. 30% of land parcels have been
assigned Unique Land Parcel Identification Numbers (ULPINs). 91% of Records of Rights have been digitised.

Textiles…

India’s Sector…

Why in news: Faces challenges from geopolitical tensions, fragmented supply chains, price volatility, climate change
and consumer preferences.
● As 6th-largest textile exporter , aligning with these trends enables India to leverage the China Plus One strategy and
reduce dependency on China.
● Regenerative (regen) farming is conservation-based approach that restores soil health, boosts biodiversity, and
sequesters atmospheric carbon to fight climate change. Unlike sustainable farming, which seeks to maintain the status
quo, regenerative farming aims to actively improve degraded resources through methods like no-till cultivation, cover
cropping, and livestock integration..
● India accounts for 8.5% of global annual textile waste ; embracing circularity is essential to stay competitive.

Quality Control Order…

● The Centre has revoked the QCO on polyester fibre and yarn , and PTA and MEG. The decision was issued under
Section 16 of the BIS Act. Earlier QCOs had restricted imports of polyester yarn, fibre, filament, and raw materials PTA
and MEG. India faces a shortage of PTA and MEG , yet QCOs were introduced on them.
● These are critical raw materials for the man-made fibre (MMF) sector.
● The textile industry has urged the government not to impose anti-dumping duty (ADD) on Mono Ethylene Glycol
(MEG) , a key raw material for polyester fibre and filament production.
● Textile industry consumes 70%-75% of locally produced Purified Terephthalic Acid (PTA) and MEG.

Textiles Focused Research, Assessment, Monitoring, Planning and Start-up…

● Centre has approved the TEX-RAMPS Scheme to strengthen research, innovation, and competitiveness in the textiles
sector. The scheme will be effective from 2025-2026 to 2030-2031 and will bring together research, data, and
innovation to position the nation as a global leader in sustainability, technology, and competitiveness.
● Tex-RAMPS is designed to address critical gaps in research, data systems, innovation support, and capacity
development. The scheme aims to create robust data systems including employment assessments , supply chain
mapping , and the India-size study to facilitate evidence-based policymaking.
● It will strengthen State-level planning and aid in dissemination of best practices , capacity-building workshops , and
organisation of sectoral events. Incubators, hackathons, and academia-industry collaborations will be supported to
nurture high-value textile start-ups and entrepreneurship.
● National textile ministers conference, Guwahati (Theme India’s Textiles: Weaving Growth, Heritage & Innovation ).
● Scheme is designed to improve coverage , quality , timeliness, credibility of textile-related statistical products.

● India is the second largest producer of cotton after China, accounting for 24% of global production.
● The textile and apparel industry contributes 13% to industrial production, 12% to exports, and about 2% to GDP.
● As per the Index of Industrial Production (IIP), textile manufacturing has slightly contracted over the past 10 years.
● The PLI Scheme for Textiles aims to promote MMF apparel, MMF fabrics, and technical textiles, to create 60-70
global players. The PM MITcRA Parks scheme aims to set up 7 textile parks on Greenfield/Brownfield sites.

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● The initiative drives integrated planning for key sectors including handlooms, handicrafts, apparel, and technical
textiles by focusing efforts directly at the cluster and district levels.
● The Ministry provides an annual grant of ₹12 lakh to each State or UT. An additional grant of ₹1 lakh a year will be
provided for each district, based on the development and execution of specific district action plans.

National Technical Textiles Mission (NTTM)…

● Introduced by Ministry of Textiles in 2020. Ending in March 2026 , will likely be extended by two years.
● 4 components: research, innovation and development, market development, export promotion, education-training.
● Its primary goal is to position India as a global leader in technical textiles—functional fabrics used for their
performance rather than aesthetics (e.g., medical masks, bulletproof vests, agrotech or geotextiles).

National Handloom Day…

● 10th National Handloom Day was celebrated on August 7, 2024. The date commemorates the 1905 Swadeshi
Movement , which championed indigenous industries and hand-woven textiles.
● VIRAASAT Exhibition: A special fortnight-long exhibition titled "Viraasat" was organized at Handloom Haat, Janpath,
featuring hand-woven masterpieces from across India. E-Commerce Integration: The India Handmade portal was
further promoted to provide weavers direct market access, bypassing middlemen.
● Bhartiya Vastra Evam Shilpa Kosh: The 10th anniversary saw expanded updates to this National Repository of Indian
Textiles and Crafts, which documents over 200,000 craft items for designers and researchers.

Infrastructure - Telecom & Power…

Starlink…

Why in news: Elon Musk’s Starlink has received a licence for providing satellite internet services in India.
● Starlink is 3rd company after Eutelsat OneWeb & Jio Satellite Communications to get licence from Department of
Telecommunications for satellite internet services in India. Amazon’s Kuiper (4th) , is still awaiting approvals.
● Starlink received authorisation to operate its broadband satellite constellation over India from IN-SPACe. IN-SPACe
functions under the Department of Space. This is the second major approval for Starlink in India after GMPCS
authorisation from the DoT. Starlink could provide internet where mobile connection is unavailable.

Satellite Internet Service Rules
Why in news: Department of Telecommunications issued amendments to the Unified Licence (UL) and GMPCS
authorisation , which satellite internet services require to operate in India.
● New rules include enabling surveillance of users’ web traffic , similar to existing norms for telecom and broadband
operators. Satellite terminals sold abroad must be disabled on Indian soil , and India-purchased terminals must be
disabled abroad. Terminals used in India must be manufactured domestically within 5 years.
● Introduced geofencing requirements to prevent cross-border signal spillover and enhance surveillance capabilities.
● Global Mobile Personal Communications by Satellite is a license enabling mobile communication via satellite,
especially in remote areas. It ensures network control localization and security monitoring near borders.
● Geofencing is a location-based technology that creates a virtual geographic boundary triggering alerts or actions
when a device enters or exits the zone. Geofencing has been used by the government for monitoring quarantine
compliance during COVID-19 and in applications like security and marketing.

Satellite Phones…

● Security agencies have issued an alert on the illegal use of satellite communication devices in Indian waters , terming
it not only a violation of existing laws but also a potential threat to national security.
● Directorate General of Shipping has proposed stricter penal provisions to prevent unauthorised usage.
● Security alerts also indicated the use of Zoleo satellite devices connected to smartphones compatible with Iridium
satellite communication systems for messaging in areas without cellular network coverage.
● DGS permits the use of Iridium-based satellite communication equipment in Indian waters exclusively for Distress and
Safety Communications under the Global Maritime Distress and Safety System (GMDSS). However, the use of
Thuraya satellite equipment continued to remain banned in Indian waters.

Telecom Policy Draft…

Why in news: The government will soon release a new National Telecom Policy , seven years after the last one.
● The vision is to create a “telecom product nation” driven by innovation , connecting citizens meaningfully.
● The policy aims to reduce the telecom sector’s carbon footprint by 30% and improve cybersecurity. Targets include
90% population coverage with 5G by 2030 and 100% with 4G , and increasing fiber-connected towers from 46% to
80%. Plans call for 1 million Wi-Fi hotspots and promotion of satellite internet in underserved areas.
● The draft pushes local R&D in telecom and aims for 150% growth in domestic manufacturing by 2030.

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● AI use in telecom is encouraged for cybersecurity and complaint resolution.
● Policy adds a “circular economy” focus by promoting recycling of telecom equipment materials for sustainability.

Regulatory Assets…

Why in news: SC directed State Electricity Regulatory Commissions and DISCOMs to clear existing regulatory assets in
4 years and cap them at 3% of ARR , while mandating intensive audits and transparent recovery roadmaps.
● Regulatory assets represent the unrecoverable revenue gap between Average Cost of Supply (ACS) and ARR. When
ACS > ARR , DISCOMs incur losses per unit sold, which are deferred and recovered from consumers in the future,
often with added interest.
● Contributing factors: Non-cost reflective tariffs, Delays in subsidies, Fuel price hikes.
● Consumers face higher tariffs due to deferred recovery of costs. Interest charges on regulatory assets further increase
the burden on consumers. DISCOMs face cash flow pressures and often borrow to cover the shortfall, increasing their
debt burden. Financial distress limits investment in: grid modernization, renewable etc.

Internet Access…

● SDG Target 4.4.1 : Share of population with basic ICT skills. SDG Target 4.4.2 : Share of population with proficiency in
digital skills. Broadband Penetration National average :
● 76.3% households with broadband. ( Rural : 71.2%; Urban : 86.5%).
● States with >90% connectivity : Delhi, Goa, Mizoram, Manipur, Sikkim, Haryana, Himachal Pradesh.
● States with <70% connectivity : WB (69.3%), Andhra Pradesh (66.5%), Odisha (65.3%), Arunachal Pradesh (60.2%).
● Mobile ownership : 94.2% rural, 97.1% urban households.
● 4G usage : >50% rural, >70% urban. Non-4G tech (2G/3G) : 40.4% population. 5G usage : Negligible across India.
Digital Skill Proficiency (15+ Age Group)
● Internet use : 53.6% rural, 74% urban. Online banking : Only 37.8% can perform transactions.
● PM-WANI (Prime Minister’s Wi-Fi Access Network Interface) is a national framework launched by DoT to
democratize internet access through a decentralized network of public Wi-Fi hotspots.
● Over 4.08 lakh Wi-Fi hotspots had been set up across India. Initiatives for 2026 aim to integrate PM-WANI with
BharatNet. TRAI has set a limit on what ISPs can charge PDOs for broadband plans up to 200 Mbps.

Right of Way…

● Telecom companies are sparring with the Adani Group and have sought the Centre’s intervention over the latter’s
refusal to grant Right of Way (RoW) at the recently opened Navi Mumbai airport for deploying infrastructure to
provide cellular services to air travellers.
● As per them, as airport qualifies as public entity as per Telecommunications Act, 2023 & Telecommunications (Right
of Way) Rules, 2024 the airport operator is statutorily obligated to grant Right of Way (RoW) permission.
● The Telecommunications (Right of Way) Rules, 2024 streamline the deployment of 5G and fiber infrastructure ,
introducing faster, online, time-bound approvals, and, for the first time, regulating access to private property.
● Key features include zero fees on private property , mandatory appointment of nodal officers, and deemed approval
within 60 days for public property applications.
● Zero Fees on Private Property : Public entities are prohibited from charging fees, rent, or requiring bank guarantees
for establishing, operating, or maintaining telecom infrastructure on private land.

Telecom Subscriptions…

● India crossed 100 crore Internet connections in November. India’s total Internet users numbered nearly 1.02 billion by
September 2025 , a sharp increase from about 250 million in 2014. The country is also the world’s second largest
smartphone market , with around 750 million devices.

Source Code of Smartphones…

● The Centre is considering legally imposing a set of requirements for
smartphone makers in Indian markets as part of a raft of “security
measures”.
● MeitY disputed media report on plans.
● Report was based on an ITSAR document , issued by National Centre for
Communication Security under the Department of Telecommunications in

ITSAR does mention that source code should be open to third party audits, and that news of software updates must be intimated to the government. ● Source code is the core repository of software programmes and their associated digital assets that drives a digital system. ● While some parts of the code, especially of Android phones , is open to begin with, there are significant modifications and adaptations that phone manufacturers make to that codebase.

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● Source code is kept secret not just for commercial reasons , but also as a security measure.
● ITSARs are technical standards used in the MTCTE framework. MTCTE framework stems from the Indian Telegraph
(Amendment) Rules, 2017.
● However, shortly after the Telecommunications Act, 2023 was passed, the DoT and MeitY decided that the MTCTE
regime should be done away with for smartphones, which already go through a certification process for India
administered by the Bureau of Indian Standards.

6GHz Band for WiFi…

● DoT de-licensed half the spectrum in the 6 gigahertz (GHz) band , a heavily contested band of airwaves that tech
firms have argued needs to be freed up for WiFi and other free-of-cost use cases, while telecom firms have
maintained it should be auctioned for use in future mobile telephony.
● Some restrictions remain, such as use on moving vehicles and oil rigs, but for most indoor use, 5,925–6,425 MHz is
now open for WiFi. Routers that support 6GHz have typically switched the frequency off in India. A software update
may be issued for devices.

Telecom Spectrum…

● SC laid down that telecom service providers do not own spectrum , a precious and finite public resource meant to be
used for common good of all & cannot include it among their pool of “assets” for insolvency or liquidation.
● Insolvency and Bankruptcy Code excludes any assets over which a corporate debtor has no ownership rights.
● SC said spectrum was a scarce natural resource owned by the people of India, with legal title vesting exclusively in the
UoI , which holds it in trust for the public. Licensees acquire no proprietary interest in spectrum.
● The mere grant of spectrum under a licence does not mean a complete transfer of a finite natural resource from the
Union government to a TSP. It confers only a limited, conditional and revocable privilege to use spectrum, subject to
statutory requirements, licence conditions and public interest.
● SC: Union is the owner and trustee of spectrum and TRAI is the regulator. The statutory regime under IBC cannot be
permitted to make inroads into the telecom sector and restructure the rights and liabilities.

Google India, U.S. Link…

● Google will work on an undersea cable project directly linking the U.S. and India.
● This would be the second planned subsea cable system that would link the U.S. and India, after Facebook and
WhatsApp parent Meta’s Project Waterworth (incomplete).
● So far, subsea cable systems, carrying vast majority of Internet traffic between continents, do not have a direct
Indo-U.S. link , relying instead on relay points like Singapore.
● It also announced “Google DeepMind partnership to boost AI-powered science and education in India and expanded
workforce development efforts,” earmarking $30 million Google.org AI grant for Government Innovation Impact
Challenge to support AI-powered government-to-citizen solutions.

Cable cuts…

● Bharti Airtel Ltd.’s network has been facing disruptions in Europe-bound traffic. Cloud providers such as Digital
Ocean and Oracle Cloud shifted bulk data flows to other international transit providers.
● The disruptions led to large-scale packet loss and raised latency.
● The disruptions were caused by an undersea cable cut off the coast of Jeddah, Saudi Arabia. Subsea cables account
for the majority of intercontinental Internet traffic.
● Cloud providers started routing traffic via other cable systems.
● The impacted cable likely MENA SCS connects Mumbai to Italy through Oman and Egypt.
● Repairs to multiple subsea cables in the Red Sea are yet to be completed. Repairs may be delayed due to the Iran
conflict.
● Oracle transported data over Tata Communications Ltd.’s network.
● Digital Ocean withdrew routes from Airtel citing network instability.
● Repairing subsea cables is cumbersome and telcos allow networks to be used
by affected entities.

Infrastructure- Railways…

Aizawl Rail Link…

Why in news: Aizawl , Mizoram , has been linked to the national railway network via
the Bairabi–Sairang line.
● Bairabi , located in Kolasib near Assam, was previously Mizoram's only railhead;
Sairang is a satellite town 20 km from Aizawl. Bairabi–Sairang New Line spans 51.38 km. Mizoram becomes the fourth
NE state with its capital connected by rail, after Assam, Tripura, and Arunachal Pradesh.
● It is divided into four sections; the Bairabi–Hortoki, Hortoki–Kawnpui, Kawnpui–Mualkhang, & Mualkhang–Sairang.

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● It includes India’s tallest pier bridge (Bridge 144) with a height of 105–114 metres, taller than the Qutub Minar.
● Technically, the line is Mizoram's 2nd railway connection , but it is officially celebrated as the state's "first" because it
provides first direct link to capital, Aizawl, and integrates the state fully into the national broad-gauge network

Kashmir Rail Link…

Why in news: PM inaugurated Srinagar–Jammu–Delhi link , marking 1st-ever all ‑ weather rail connectivity for Kashmir.
● The Udhampur–Srinagar–Baramulla Rail Link (USBRL) project is now fully operational. USBRL has been under
construction for 28 years , overcoming extreme Himalayan terrain to achieve completion.
● Chenab bridge is the world’s highest
railway arch bridge, standing 359 m
above the riverbed—35 m taller than
the Eiffel Tower.
● Designed by Prof G. Madhavi Lata
(IISc), bridge remains stable even if 1
of its 8 supporting piers fails.
● It is the only arch-shaped railway
bridge in India , with few equivalents
globally (e.g. China).
● Anji Khad Bridge: India’s first
cable ‑ stayed railway bridge. USBRL
comprises 927 bridges , including the
Chenab and Anji Khad structures.
● A Vande Bharat Express service
between Srinagar and Katra has also
been flagged off.

Amrit Bharat Station Scheme…

Why in news: PM inaugurated 103
redeveloped railway stations under
the Amrit Bharat Station Scheme
including Deshnoke in Bikaner , near
the Pakistan border.
● Launched in 2022 , aims to transform 1,337 stations into modern “city centres”. Redeveloped stations feature modern
toilets, lifts, escalators, free Wi-Fi, executive lounges, better waiting areas, and improved signage.
● The building designs reflect local culture and heritage , with aesthetically designed porches and landscaping.
● Most projects are being executed via EPC model, while 20 major stations like Pune, Delhi, Vijayawada, and Chennai
Central are under PPP mode.

Aabhar Online Store…

● Indian Railways will patronise the newly launched ‘Aabhar’ online store to promote local talent , exquisite gift items
manufactured by indigenous tribes, handloom weavers , and others under One District One Product and GI.
● The ‘Aabhar’ online store is hosted by the Government e-Marketplace.
● It sources products exclusively from the Central Cottage Industries Emporium , Khadi and Village Industries
Commission , and various Central and State Handicraft and Handloom Emporiums.
● The initiative is promoted under the ‘Vocal for Local’ campaign to promote India’s rich heritage through handlooms,
handicrafts, artisanal goods & to provide market access to artisans, rural entrepreneurs, and women enterprises.
● To provide a market for local and indigenous products and create additional income opportunities for marginalised
sections, the Indian Railways launched the ‘One Station One Product’. Under OSOP, artefacts made by indigenous
tribes, handlooms by local weavers, and handicrafts such as chikankari are showcased across railway stations.

DRISHTI System…

● Railways is planning to install AI-based technology ‘DRISHTI’ to enhance the safety of freight trains.
● The AI-based Locking Monitoring System ‘DRISHTI’ will reduce traditionally manual checks which are
time-consuming and impractical for long-haul rakes under dynamic conditions.
● The technology is being developed through a collaborative initiative between the Northeast Frontier Railway (NFR)
and the IIT-Guwahati Technology Innovation and Development Foundation (IITG TIDF).

Ticket Booking…

Why in news: The e-ticketing system of IRCTC is one of India’s most widely used e-commerce platforms.
● An anti-bot system has been implemented , leading to the de-activation of 2.5 crore suspect user IDs.
● Aadhaar verification is mandatory immediately after booking a ticket.

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● Authorised agents are restricted from booking Tatkal tickets during the first 30 minutes of the booking window.

Hydrogen-powered Train…

Why in news: Indian Railways tested its first hydrogen-powered coach at the Integral Coach Factory (ICF), Chennai.
● Supports India’s mission to reduce greenhouse gas emissions and increase renewable energy share.
● 3,000-kg hydrogen facility at Jind to fuel hydrogen through a 1-MW polymer electrolyte membrane (PEM)
electrolyser. Operated as per PESO standards under DPIIT. Hydrogen will be used to refill fuel tanks on the train ,
where fuel cells will convert it into electricity to power the train’s electric motors.
● Electrolysis Principle: An electrolyser splits H₂O into H₂) and O₂ using electricity. At the anode, oxygen is released as
electrons flow through an external circuit to the cathode. PEM allows only protons to pass through, which combine
with electrons at the cathode to form hydrogen gas. Membrane, typically made of fluoropolymer (like Nafion), ensures
hydrogen and oxygen remain separated.
● Fuel Cell Principle: Inside the locomotive, the reaction is reversed. Hydrogen at the anode splits into protons and
electrons. Protons pass through the membrane, while electrons flow through an external circuit, generating electric
current. At the cathode, oxygen from air combines with protons and electrons to form water, the only by-product —
making the process clean and emission-free.
● The fuel cell reaction (hydrogen + oxygen → water) is spontaneous and generates electricity.
● The electrolysis reaction (water → hydrogen + oxygen) is non-spontaneous and requires electrical energy input.

Removable Solar Panel…

Why in news: Varanasi has become the first city in India to have portable solar panels between railway tracks.
● Banaras Locomotive Works (BLW) commissioned the indigenously-designed installation.
● Indian Railways has set a target to become a Net Zero Carbon Emission Railway by 2030.

Green Railways…

Why in news: The successful trial of India’s first hydrogen-powered coach at the Integral Coach Factory (ICF) marks
more than a technological breakthrough.
● Over 98% of the broad gauge network stands electrified , reducing diesel dependence. The renewable integration
includes 553 MW of solar, 103 MW of wind, and 100 MW of hybrid capacity, totalling 756 MW commissioned.
● The Bureau of Energy Efficiency’s “Shunya” net-zero label recognises innovations such as the first hydrogen-powered
train, part of the “Hydrogen for Heritage” initiative to deploy 35 such units.
● Parallel measures include shifting freight from road to rail to raise its modal share to 45% by 2030.
● The Indian Railway Finance Corporation (IRFC) has played a pivotal role in mobilising climate-aligned capital,
beginning with its $500 million green bond issuance in 2017 for electric locomotive refinancing.
● Priority is to match electrification with genuinely decarbonised electricity, as a coal-heavy grid can dilute gains.
● If the net-zero target is achieved by 2030 , Indian Railways could prevent over 60 million tonnes of annual CO₂
emissions, equivalent to taking 13 million cars off the road.
Hydrogen for Heritage
● Aimed at introducing hydrogen-powered trains on scenic and culturally significant narrow-gauge and hill routes.
● Trains will use Hydrogen Fuel Cells instead of diesel engines. Green Hydrogen (produced via renewable energy) will be
the fuel source. Target: Retrofitting/manufacturing 35 Hydrogen trains by 2024-25.
● Initial Routes: 8 heritage routes identified, including: Matheran, Darjeeling, Kalka-Shimla, Kangra Valley, Nilgiri.

● Northern Railway zone’s hydrogen train project has two major components: conversion of two 1600 HP diesel
power cars into hydrogen fuel cell-powered traction system and setting up hydrogen fuelling facility at Jind.
● Primary design, validation, and testing is being undertaken by Indian Railways’ RDSO.
● Planned operation is between Jind & Sonepat stations of Northern Railway in Haryana.
● Hydrogen trains eliminate smoke emissions, reduce noise pollution. They can operate on both electrified and
non-electrified routes , offering greater operational flexibility. Hydrail technology is ideal for routes where
catenary electrification (overhead wiring) is unfeasible or prone to damage and disruption. Can be refuelled in
20–25 minutes , which is faster than the recharge time required by battery-electric trains.
Hydrogen:
● Hydrogen is lightest element, colourless, odourless, tasteless, and highly flammable, requiring safety precautions.
● It is the most common element in nature but exists only in combination with other elements and must be
extracted from compounds like water (H₂O).
● Hydrogen is a clean molecule, but its extraction process is energy intensive. Grey hydrogen produced from fossil
fuels and constitutes the bulk of current hydrogen production. Blue hydrogen produced from fossil fuels with
carbon capture and storage. Green hydrogen produced using electrolysers powered by renewable energy sources.
National Green Hydrogen Mission:
● Approved by the Union Cabinet in 2023. Supported by the MNRE. NGHM views Green Hydrogen as a sunrise
sector for India. It targets building capacity to produce at least 5 MMT per annum of Green Hydrogen by 2030.

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Metro Network…

Why in news: India’s metro train network has expanded rapidly over the past decade, growing from 248 km across 5
cities in 2014 to over 1,000 km across 23 cities by 2025.
● This growth makes India the world’s third-largest metro network , after China and the United States.
● Delhi (394km) > Bengaluru (96 km) > Mumbai (80.2 km) > Kolkata (74 km).
● Smaller and newer metro systems in Nagpur, Lucknow, and Pune are also expanding.
● In 2024, Kolkata launched India’s first underwater metro tunnel.
● Maharashtra signed MoU with IIT Madras-incubated startup TuTr Hyperloop Pvt Ltd to build a high-speed,
cargo-focused hyperloop to connect JNPT in Navi Mumbai and Vadhavan Port in Palghar. The system will use Linear
Induction Motor (LIM)-based, electromagnetic propulsion and magnetic levitation (mag-lev).

Kavach…

● Indigenous anti-collision Kavach safety system commissioned on over 2,000 km.
● Comprises 5 major components. It required continuous laying of optical fibre cable (OFC) along tracks and
installation of telecom towers. Connected 767 stations to data centres.
● Trackside equipment has been deployed along 3,413 km. 4,154 locomotives have been equipped with the Kavach
system. Stations are being upgraded under the Amrit Bharat Station Scheme.
● An indigenously developed (RDSO) automatic train protection system that applies brakes automatically within
specified speed limits to avert collisions if loco pilot fails to act.
● Alternative Systems: European ETCS Level II system could have been adopted temporarily in critical sections while
Kavach matures. (European Train Control System is a radio-based train control system that provides continuous
communication between the train and trackside, allowing for real-time movement authority updates and eliminating
the need for traditional lineside signals in most cases). Installing Kavach costs ₹50 lakh per kilometre of track.

Bio-plastic on Trains…

● Northeast Frontier Railway has become India’s first railway zone to shift to compostable bio-plastic on trains.
● The ISO 17088-compliant bioplastic used as packaging material was developed at IIT Guwahati.

Rudrastra…

● Railways operated “Rudrastra” , a long freight train formed by combining six empty BOXN rakes at Ganjkhwaja station
of Pandit Deen Dayal Upadhyay Division. Length : about 4.5 km → longest freight train of Indian Railways till date.
● Undertaken by DDU Division of East Central Railway to boost freight capacity of Indian Railways.

First Vande Bharat Sleeper…

● Will ply between Guwahati and Kolkata between Howrah and Kamakhya stations.
● The Minister also announced that the country’s first bullet train would be ready in August 2027 , and the route would
be opened in a phased manner. The first section to open will be from Surat to Bilimora.
● The 508-km Mumbai-Ahmedabad high-speed rail corridor will see speeds of up to 320 kmph and is set to reduce
travel time between Mumbai and Ahmedabad to two hours.
● PM laid foundation stone for the rehabilitation and four-laning of the Dhupguri-Falakata section of NH-31D.

Bullet Train…

● 1 st mountain tunnel breakthrough of Mumbai-Ahmedabad High Speed Rail project was achieved in Maharashtra’s
Palghar. The 1.5-km tunnel is the longest among the seven planned in Maharashtra for the bullet train corridor.
● The breakthrough has been achieved in an approximately 1.5 km long mountain tunnel ( MT-5 ), located between
Virar and Boisar bullet train stations. The 508-km MAHSR project has an overall tunnel length of 27.4 km. Among this,
21 km is underground tunnels, while 6.4 km is surface tunnels.
● Overall, the MAHSR has eight mountain tunnels , with seven tunnels alone in Maharashtra having a combined length of
about 6.05 km , and one tunnel of 350 metres located in Gujarat.

Kerala’s High-speed Rail Corridor…

● Centre considered a new high-speed rail corridor for Kerala. State Cabinet gave in-principle approval for the
implementation of the 583-km RRTS project from Thiruvananthapuram to Kasaragod.
● Operating at speeds of 160–180 kmph , with short station intervals and high passenger capacity, the RRTS is
considered suitable for Kerala.

Connect NE…

● Union Minister for Railways said plans are afoot to lay underground railway tracks along a 40-km strategic corridor in
West Bengal, connecting the Northeast with the rest of India.
● Underground lines will be between Tin Mile Haat and Rangapani railway stations in West Bengal.

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Infrastructure - Ports and Shipping…

Australia Ship…

Why in news: An Australian boatbuilder launched what it described as the world’s largest electric-powered ship.
● The 130-metre behemoth is capable of carrying 2,100 passengers. Identified by boatbuilder Incat as Hull 096 , the ship
is an aluminium catamaran.

Vizhinjam Port…

Why in news: PM inaugurated the Vizhinjam International Sea Port in Kerala.
● Vizhinjam referred to as Rajendra Chola Pattinam in 1129 AD Pandya-Chola inscriptions. Possibly the same as Balita ,
mentioned in 1st-century AD Periplus of the Erythraean Sea. In the 1940s , Travancore explored Vizhinjam’s port
potential; after decades, India’s first deep-water container transshipment port has been inaugurated.
● Currently, 75% of India’s transshipment cargo is handled at Colombo, Singapore, and Klang (Malaysia).
● India’s first greenfield and semi-automated port , with a skilled women workforce.
● MSC Irina , the world’s largest container ship , is expected to dock in 2025.
● Infrastructure like NH-66 , Balaramapuram railway link , and Thiruvananthapuram ORR (63 km) are crucial for port
success.Proposal to rename the port as Trivandrum International Sea Port Limited for global branding.
● Union is advised to reconsider the Colachel transshipment port , only 40 km from Vizhinjam , to avoid economic
duplication. A greenfield port policy may be needed, akin to airports , preventing new ports within 750–1000 km.
● A transshipment port is where cargo containers are transferred from one vessel to another en route to their final
destination. India has 13 major ports and 217 non-major ports , including private ones like Adani’s Mundra and
Krishnapatnam. JNPT (Navi Mumbai) and Mundra Port are India’s largest container ports, each handling over 7 million
containers annually.

Maritime Development Fund…

Why in news: Budget 2025 launched a maritime push with mega clusters , a ₹25,000 crore Maritime Development
Fund , customs duty exemptions , and infrastructure status for large vessels (having a gross tonnage (GT) of 10,000 or
more, under the Indian ownership and flag; or having a GT of 1,500 or more which are built in India and are under Indian
ownership and flag).
● Marine engines , forms 15–20% of a ship’s cost , are vital for performance, emissions , & life-cycle management. Over
90% of >6 MW marine engines used in Indian ships are imported.
● Maritime Development Fund offers long-term, low-cost financing for shipbuilding, repair , and maritime
infrastructure. Government will contribute 49% of the fund, with the rest from ports and private sector.
● This initiative aims to generate ₹1.5 lakh crore in investments by 2030.
● India ranks 2nd globally in ship recycling (2024) , with a 33% share in 2023 , by tonnage dismantled. The Alang Ship
Breaking Yard in Gujarat is a key hub.

Click here to Enroll

Shipping Regulations…

Why in news: Singapore-flagged MV Wan Hai 503 caught fire 88 nautical miles off Kerala’s Beypore coast. Earlier,
Liberian container ship MSC ELSA 3 sank off Kochi, Kerala.

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● International Maritime Organization (IMO) regulates global merchant shipping & norms cover pollution, safety,
accidents, liabilities, responsibilities ; India implements them via DG of Shipping and domestic legislation.
● India has not ratified the 2004 Ballast Water Convention and 2010 Hazardous and Noxious Substances (HNS)
Convention. HNS Convention covers liability for hazardous substances; India may consider ratification due to
increasing coastal accidents. In MSC ELSA 3, India will use its merchant shipping laws to seek remedies.
● Flags of Convenience (FOC) and Ownership: Ships often owned in one country but registered in another for
operational ease; these nations offer less intrusive scrutiny (FOC). Examples: Liberia, Marshall Islands.
● Ship owner liable for both cargo loss and environmental damage. Bill of lading governs cargo transport contracts;
importer ultimately holds bill post-payment. Cargo damage claims covered by Protection and Indemnity (P&I) Club.
● Polluter Pays Principle upheld under International Convention for the Prevention of Pollution from Ships.
● Nairobi Convention on Removal of Wrecks, 2007 governs salvage operations; India is a signatory. Ship owner
responsible for salvage within India’s sovereign waters (200nm) ; liable for damages if ship cannot be refloated.
● Safety of Life At Sea (SOLAS) evolved after Titanic sinking due to human error. SOLAS mandates sufficient lifeboat
capacity on both sides of ships.

Shipping Decarbonization…

Why in news: With global shipping aiming for decarbonisation by 2040–2050 , India has a unique opportunity to
emerge as a green fuel hub , supplying green methanol and ammonia.
● Presently, ships run on Very Low Sulphur Fuel Oil (VLSFO) , diesel , and LNG , with LNG acting as a transition fuel
before adoption of green fuels like ammonia, e-methanol, and biofuels.
● Green hydrogen , used to make green ammonia and methanol, is produced by electrolysis of water using renewable
power. Green ammonia (hydrogen + nitrogen) is stable but requires extensive onboard changes. Green methanol
(hydrogen + CO₂) is easier to adopt and stored at ambient temperatures.
● Green methanol costs $1,950/tonne vs. $560/tonne for VLSFO. PLI schemes for electrolysers and CCUS incentives
for CO₂ capture can support cost-efficient green methanol production. Government is creating 1.5 GW electrolyser
capacity and expanding industrial CO ₂ sources , enabling integrated fuel hubs.
● E-methanol (electro-methanol) is a low-carbon, renewable liquid fuel produced by combining green
hydrogen—generated via renewable energy electrolysis—with captured CO₂. The world's first commercial-scale
e-methanol plant has officially opened in Kasso, Denmark.

Indian Carriage of Goods by Sea Act, 1925
Why in news: Carriage of Goods by Sea Bill, 2025 was passed, repealing Indian Carriage of Goods by Sea Act, 1925.
Bill Name The Carriage of Goods by Sea Bill, 2024
Replaces Indian Carriage of Goods by Sea Act, 1925
Existing Act Basis Based on Hague Rules (1924) and its amendments
Scope of Existing Act Established responsibilities, liabilities, rights, and immunities for goods carried from a
port in India to another port in India or abroad
Bills of Lading A document issued by a freight carrier to a shipper containing details of type, quantity,
condition, and destination of goods
Adopted Rules Hague-Visby Rules (globally accepted maritime standard, followed by countries like UK )
Expected Outcomes Simplifies maritime trade laws , reduces litigation risks , enhances transparency and
commercial efficiency in cargo movement by sea

LPG carrier Sahyadri…

Why in news: Shipping Ministry inducted Sahyadri , a Very Large Gas Carrier (VLGC). Built in South Korea.
● Purpose: transport LPG between Persian Gulf and India , securing a vital energy lifeline.
● Vessel named Sahyadri after the Western Ghats mountain range.
● Flag-hoisting ceremony held at Hamad Port, Qatar , in presence of Indian crew.
● Second vessel to be renamed Shivalik , joining later this FY.

Kaleshwaram Project…

Why in news: Described as Telangana’s lifeline is under controversy after barrages suffered damages within three years
of inauguration and others developed cracks.
● Multi-purpose irrigation project on the Godavari River at Kaleshwaram, Bhupalpally, Telangana.
● Billed as the world’s largest multi-stage irrigation project with a canal network of 1,800 km.

Shipbuilding…

Why in news: India , with less than 1% share in global shipbuilding , is on course to be among the world’s top five
countries in this sector by 2047.
● The nation has a goal of ranking among the top 10 maritime nations by 2030 and top 5 by 2047.

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● The maritime sector currently contributes 4% to India’s GDP and just 1% of global tonnage, with a vision to raise its
share to 12% of national GDP and move from the 16th to the 5th position globally by 2047.
● Indian seafarers represent 12% of the global workforce , with a goal to expand this to around 25%.
● The government is supporting this ambition through initiatives such as the Shipbuilding Finance Assistance Scheme ,
the Maritime Development Fund , shipbuilding and repair clusters , a National Shipbuilding Mission , the Shipbreaking
Credit Note Scheme , and upfront subsidies of up to 30% for non-conventional builds.
● Under the Maritime India Vision , India is firmly on course to emerge as a global maritime superpower.
● Government has taken unprecedented measures including the creation of a $3 billion Maritime Development Fund ,
with 45% earmarked for shipbuilding and ship repair and 20% for building Indian tonnage.

Adani Ports…

Why in news: Adani Ports and Special Economic Zone (APSEZ) , India’s largest private port operator , has banned
sanctioned shipping vessels from docking at its ports.
● The restriction includes the Mundra Port , which handles nearly 10% of India’s total crude oil imports.
● APSEZ operates 15 domestic ports and terminals , holding a 27.8% market share , with 6 ports on the west coast , 5 in
the south , and 4 on the east coast.

New Maritime Initiatives…

Why in news: Event, ‘Samundar se Samridhi’ (Transforming the Maritime Sector) , was jointly hosted by Make in India ,
the Ministry of Ports, Shipping and Waterways , the Gujarat Government , and the Gujarat Maritime Board.
● PM inaugurated the Mumbai International Cruise Terminal at Indira Dock , and laid the foundation stone for a new
container terminal and facilities at Syama Prasad Mookerjee Port in Kolkata.

Bureau of Port Security (BoPS)…

● BoPS will be a dedicated body to oversee the security of vessels and port facilities in India. It is modelled on the
Bureau of Civil Aviation Security & will be constituted as a statutory body under Merchant Shipping Act, 2025.
● Will function under the MoPSW & headed by a Director General , an IPS officer (Pay Level-15).
● During the one-year transition period , the D G of Shipping (DGS/DGMA) will function as Director General, BoPS.
● CISF is designated as a Recognised Security Organisation (RSO) for seaport facilities. Coastal security responsibilities
are currently shared by Coast Guard , CISF , State maritime police , and the Navy.
● The BoPS will ensure timely analysis, collection and exchange of security-related information. It will have a special
focus on cybersecurity , safeguarding port IT infrastructure from digital threats.
● The Bureau will provide regulatory oversight relating to the security of ships and port facilities. It will address threats
such as maritime terrorism , arms smuggling , drug trafficking , human trafficking , poaching , illegal migration , piracy ,
and cybersecurity threats.
● Will enforce international standards , including the International Ship and Port Facility Security (ISPS) Code.
India’s Maritime Expansion and Governance
● Cargo handled at Indian ports increased to 1,594 MMT in 2025. Ship turnaround time reduced to 48 hours.
● Inland waterways cargo increased to 145.5 MMT (2025). 9 Indian ports featured in the World Bank Container Port
Performance Index. The Maritime India Vision 2030 was launched in 2021.
● The new legislation grants the Union government greater authority over non-major (State-owned) ports.

Shipping Corporation of India (SCI)…

● Government announced that the state-owned SCI would buy more than 200 merchant ships through joint ventures ,
marking a turnaround for SCI, which had been on the verge of privatisation.
● This marks a turnaround for a mini-ratna that once occupied the commanding heights of Indian shipping.
● SCI had a fleet of more than 120 ships , making it one of the biggest ship owners in the world.
● SCI’s decline began during LPG in 1990s. Under WTO’s GATS , India committed to Most Favoured Nation principles for
maritime carriers. Indian ships’ share in India’s exim cargo fell from 27% to 7%.
● Funds from the Maritime Development Fund are being allocated for SCI-led joint ventures. These ventures will
purchase ships with backing from other PSUs.

Upgrading Shipyards…

Why in news: The government has announced a ₹69,725 crore package to revitalise India’s shipbuilding and maritime
ecosystem, replacing the 2015 shipbuilding package that expires in March 2026.
● The package aims to expand India’s large merchant shipbuilding capacity to 4.5 million gross tonnage.
● Over the past 10 years , only about six small merchant ships were built in India.

India Maritime Week…

Why in news: $5-billion Great Nicobar infrastructure project includes a transshipment port, power plant, and airport.

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● 4th edition of India Maritime Week 2025 by MoPSW at NESCO Exhibition Centre, Mumbai, Maharashtra. Theme:
"Uniting Oceans, One Maritime Vision".
● Since the inaugural India Maritime Week in 2016 , the event has evolved into a global summit , now featuring
participation from 85 countries.
● India’s performance in the World Bank’s Logistics Performance Index has improved significantly.
● The maritime sector contributes nearly 4% of India’s GDP. Trade Volume: The maritime sector handles 95% of India's
trade by volume and 70% by value.
● The government aims to reduce logistics costs to single digits — around 9%, down from the current 16%. China’s
logistics cost is around 8% of GDP and Europe’s about 12%.
● Green Tug Programme: Aiming for 100 eco-friendly tugs by 2040. Digi Bandar: A national framework launched to
make all Indian ports data-driven and AI-enabled. Green & Digital Corridors: Agreement with the Netherlands to
establish a sustainable shipping corridor connecting Indian ports with the Port of Rotterdam.
● Sagarmanthan – The Great Oceans Dialogue: The second edition (co-hosted with ORF) focused on blue economy
and ocean governance. Global Maritime India Summit (GMIS): A core summit for high-level policy and investment
discussions. QUAD Ports of the Future Partnership: High-level discussions on regional maritime security and
economic cooperation.
Maritime Amrit Kaal Vision 2047 (GMIS 2023)
● Port Capacity: Increase from ~2,600 MTPA to 10,000 MTPA (Million Tonnes Per Annum).
● Shipbuilding: Aiming for India to be among the Top 5 global shipbuilding nations (currently outside the top 10).
● Transshipment Hubs: Development of three major hubs: Vizhinjam (Kerala), Galathea Bay (Great Nicobar), and
Kanyakumari (Tamil Nadu). Inland Waterways: 500 MTPA of cargo movement through National Waterways.

Yamuna River Cruise Project…

● The project aims to introduce recreational boat cruises and ferry services on the Yamuna.
● The 1,080-km Yamuna stretch from Jagatpur in Delhi to Prayagraj in Uttar Pradesh has been notified as NW-110.

MSC Irina…

Why in news: MSC Irina , the world’s largest container vessel , operated by Mediterranean Shipping Company (MSC) ,
reached Vizhinjam International Seaport.
● This marks the first time that MSC Irina is calling at a South Asian port.
● It is the third Irina-class ship to call at Vizhinjam, after MSC Türkiye and MSC Michel Cappellini.

Infrastructure- Roads and Highways…

Road Accidents…

Why in news: With one of the world’s largest road networks , India also sees one of the highest road traffic fatalities.
● In 2022 , India recorded 1.68 lakh road accident fatalities , translating to 12.2 deaths per 1 lakh population.
● Right to safe road travel is a part of Right to Life (Article 21) of the Constitution.
● By 2047 , urban population is expected to reach 50% of the total population.
● The Safe System Approach focuses on human vulnerability and error in road design. It accepts that mistakes will
occur but aims to ensure these don’t lead to fatalities or serious injuries.
● World Bank Report 2020 estimates a need for $109 billion investment over a decade to reduce fatalities by 50%.

Road Accidents
Why in news: Over 1.73 lakh people were killed and 4.47 lakh injured in road accidents in 2023 , according to NCRB.
● Two-wheeler riders accounted for nearly 46% of total fatalities.

● Vizhinjam port is India’s first deepwater transshipment port. The port is managed by Adani Ports and SEZ Private
Limited under a design, build, finance, operate and transfer (DBFOT) model. A transshipment port has terminals
where cargo containers are shifted from one vessel to another before reaching their final destination.
● Located in the Arabian Sea , Vizhinjam lies just 10 nautical miles from the congested east-west international
shipping lane. Its natural depth of 18 to 20 metres is just 1 km from shore , allowing largest cargo vessels to dock
without dredging.

● Transport accounts for 25% global energy-related CO2 emissions , with road transport being largest contributor.
● Trains emit only 19g CO ₂ /passenger-km , compared to 63g for buses , 123g for aeroplanes , and 148g for cars.
● Continued dependence on road transport in lower-income countries could cause a 16% rise in GHG emissions
from the transport sector. The EU aims to shift 30% of road freight to rail or ship by 2030, and over 50% by 2050.
China has seen reduced road traffic and a cleaner environment by shifting to rail.
● National Rail Plan aims to increase rail freight share to 45% by 2030 via Dedicated Freight Corridors.
● India is the third-largest GHG emitter , with 14% of emissions from transport, mostly road-based.
● In 2020 , 90% of transport CO ₂ emissions came from road transport : two-wheelers (16%), cars (25%), buses (9%),
freight LDVs (8%), and freight HDVs (45%).

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● Speeding and careless driving were the two major causes of road accidents.
● Tamil Nadu and Uttar Pradesh reported the most deaths in two-wheeler accidents.
● Uttar Pradesh also reported the highest number of deaths due to SUV/car/jeep accidents (19.2% of total).
● Cause-wise analysis showed 58.6% were due to speeding and 23.6% due to dangerous/careless driving or
overtaking. National Highways accounted for 34.6% of total deaths , followed by State Highways at 23.4%.
● Top court asked States, U.T.s to frame road safety rules under Sections 138(1A) and 210-D of the Motor Vehicles Act,
1988. Section 138(1A) empowers States to regulate pedestrian and non-mechanical vehicle movement on public roads
and national highways. Section 210-D mandates standards for design, construction, and maintenance of roads other
than national highways.
● To identify road defects , NHAI will deploy advanced sensors and data acquisition systems across 23 States , covering
over 20,000 km. Exercise will involve deploying vehicles equipped with advanced sensors , including a 3D laser-based
system, a GPS, and an electronic device measuring acceleration and angular velocity.
● The collected data will be uploaded on NHAI’s AI-based portal Data Lake , where it will be analysed by a dedicated
team of experts. Electronic Detailed Accident Report (e-DAR) project is a central repository for reporting and
managing road accidents data.
● PM RAHAT Scheme: Accident victims will get cashless treatment of up to ₹1.5 lakh. (PM’s Road Accident Victims'
Hospitalisation & Assured Treatment) scheme, launched in February 2026, provides immediate cashless treatment up
to ₹1.5 lakh per victim for up to 48 hours in life-threatening cases. It covers road accident victims for up to 7 days
post-accident, bridging the golden hour gap for treatment in both insured and uninsured hit-and-run cases. The
scheme utilizes eDAR (Electronic Detailed Accident Report) and TMS 2.0 (Transaction Management System) to
connect police and hospitals. Funded through the Motor Vehicle Accident Fund (MVAF), involving insurance
companies and government budgetary support.
● The scheme will cover road accidents anywhere in the country, and not just on national highways. The first 60 minutes
after a severe accident is known as the “Golden Hour” during which immediate and necessary medical attention could
increase the survival rate of a victim. Medical coverage would be under third party insurance bought at the time of a
car purchase, and where a vehicle was not insured, the government would fund the medical expenses under the Road
Safety Fund. A person who brings a victim to the hospital, who the government is calling “rahavir” , would be given a
₹25,000 cash award. This could not be claimed by more than one individual. Government’s pledge to reduce road
deaths by 50% by 2030.
● Brasilia Declaration on Road Safety, 2015 was signed at the second Global High-Level Conference on Road Safety ,
which was held in Brazil.
● Under the declaration, the countries plan to achieve SDG 3.6 , which is to halve the number of global deaths and
injuries from road traffic accidents by 2030.
● India is a signatory to the declaration and is committed to a reduction in fatalities.
● Decade of Action for Road Safety 2021-2030 : The UN General Assembly adopted resolution “ Improving global
road safety ” with the ambitious target of preventing at least 50% of road traffic deaths and injuries by 2030.
● The Global Plan aligns with the Stockholm Declaration , by emphasizing the importance of a holistic approach to
road safety. Bloomberg Initiative for Global Road Safety (BIGRS) 2020-2025 aims to reduce road crash fatalities
and injuries in low and middle-income countries and cities by implementing a comprehensive set of actions that
are proven to save lives.

Actionable Intelligence for Sustainable Traffic Management…

Why in news: To curb traffic violations near educational institutions , the Bengaluru Traffic Police will roll out a new
feature on the ASTraM app to enable college students to report offences occurring around their campuses.

FASTag…

Why in news: Highway Minister announced a FASTag-based annual pass priced at ₹3,000 for non-commercial private
vehicles like cars, jeeps, and vans. The pass will ensure “hassle-free highway travel” , valid from August 15 for one year
or 200 trips , whichever is earlier.
● FASTag is electronic toll collection system managed by NPCI-NHAI, launched in 2014 as pilot and made mandatory at
toll plazas in 2021, uses RFID to automatically deduct toll from a linked bank account or prepaid wallet.
● RFID is a wireless tracking system to communicate identity or information via radio waves. RFID tags can carry
encrypted data, serial numbers, and short descriptions; some high-memory tags are used in aviation. 3 types :
○ Passive tags (used in FASTag): powered by reader’s electromagnetic energy.
○ Active tags : have their own battery and transmit signals regularly. Range longer than passive tags.
○ Semi-passive tags : have an internal circuit with a power source but use reader’s radio waves to respond.
● RFID tags operate at various frequencies: Low Frequency, High Frequency, and Ultra-High Frequency. The host
computer system translates radio wave responses from tags into readable data.
● MoRTH will implement the ANPR-FASTag-based Barrier-Less Tolling System to enable barrier-free vehicle
movement at selected toll plazas. AFS combines Automatic Number Plate Recognition (ANPR) technology with the
existing FASTag system for toll deduction. High-performance ANPR cameras and FASTag readers will identify vehicles

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and automatically charge tolls.

Cash at Toll Plazas…

● NHAI may discontinue cash transactions at toll plazas from April 1, 2026, allowing payments only through FASTag or
UPI to improve lane throughput , reduce congestion, enhance transparency in toll collections.
● NHAI has already achieved 98% toll transactions through FASTag.
● Under the National Highways Fee Rules, vehicles entering a toll plaza without a functional FASTag are charged twice
the applicable user fee if they pay in cash. Highway users who choose to pay via UPI are charged 1.25 times the user
fee for their respective vehicle category.

Network Survey Vehicles
● NHAI will deploy Network Survey Vehicles (NSVs) in 23 states, covering 20,933 km of NHs , for collection, processing,
and analysis of road inventory and pavement condition data.
● An NSV is a specialised van or SUV equipped with Laser, GPS, Video image processing tools, cameras, Inertial
Measurement Units, Distance Measuring Indicator. These vehicles will collect data on the condition of NHs.
● Data will be collected for 2/4/6 and 8 lane projects with NSV before the start of work and thereafter at regular
intervals of six months. Data will be used for pavement maintenance, asset management, infra planning.
● Pavement condition surveys will be carried out using a 3D laser-based NSV system capable of automatic capture and
reporting of road defects without human intervention, using high-resolution 360-degree cameras.
● Policy guidelines on NSV surveys have existed since 2019 , mandating surveys by the authority’s engineer and an
independent engineer before issuing completion certificates for new highway stretches.
● With this initiative, NHAI aims to collect necessary data , process and analyse it, and upload it on the Road Asset
Management System in the prescribed format.

Toll Collection…

● National Highways Act, 1956 : Section 7 → Government may levy fees for services on highways. Section 9 → Union
government can make rules.
● National Highways Fee Rules, 2008 : base rates fixed nationwide, not linked to cost recovery. Toll rates rise by 3%
annually + 40% of WPI increase.
● Collection models: Publicly funded highways → Union government collects. PPP models (BoT, ToT, InvIT) →
Concessionaire collects. 2008 amendment : allowed toll collection in perpetuity; after concession period, toll goes to
Consolidated Fund of India.
● Under the amended National Highways Fee (Determination of Rates and Collection) Rules, 2008 , non-FASTag users
paying through UPI will be charged 1.25 times the normal toll fee. Currently, cash payments attract double the toll fee,
making the new UPI option cheaper but still higher than FASTag payments.

Steel Truss Bridges…

Why in news: Steel truss bridges resist collapse even after major damage & have been the backbone of transport
networks since the late 19th century, built from interconnected steel bars ideal for railways and highways. Famous Indian
examples include Pamban, Howrah, and Saraighat bridges.
● The experiments revealed six fundamental secondary resistance mechanisms : Panel distortions, torsion of the whole
structure, hinged rotations, out-of-plane bending, bridging by nearby members, and uniaxial bending.

Bharat Taxi…

● India’s first cooperative-based ride-hailing platform, placing drivers — referred to as sarathis — at the centre of
ownership, operations, and value creation, freeing them from exploitative aggregator-based models.
● Bharat Taxi aims to expand to all States and cities across the country in the next two years.

Datalake
● MoRTH has developed RAMS (also called Datalake) to create a single road database for planning, budgeting,
managing and maintaining the entire NH network through systematic and scientific life cycle analysis.
Satellite-based Tolling System
● Government has deferred adoption of the Global Navigation Satellite System for toll collection due to privacy
concerns. Under GNSS , toll collection works using satellites and an on-board unit fitted in vehicles, and toll is
calculated based on the distance travelled.
Additional information:
● RFID is a wireless tracking system consisting of tags and readers.
● Radio waves are used to communicate information or identity to nearby readers.
● RFID tags can carry encrypted information, serial numbers and short descriptions.
● There are high-memory RFID tags designed for use in the aviation industry.
● Types of RFID tags include passive tags, semi-passive tags, and active tags.

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● Bharat Taxi will guarantee minimum base rate per kilometre for all its drivers. The platform will send 80% of profits to
drivers based on kilometres driven, with the remaining 20% retained as cooperative capital.
● Home minister said that Bharat Taxi would follow the ‘Amul model’.
● Drivers on the ride-hailing platform can become co-owners by purchasing a share worth ₹500 and seats on Bharat
Taxi’s Board of Directors would be reserved for driver representatives as membership grows.
● The app’s ‘Saarathi Didi’ feature allows women passengers travelling alone to prioritise female drivers.

Musical Path…

● Mumbai’s Coastal Road has become first ‘musical path’ in India with installation of special rumble strips that produce
tune of the Oscar-winning song, Jai Ho, when motorists drive over them at a designated speed.
● This is the fifth such road in the world and the first of its kind in India.
● Similar concepts have been implemented in Hungary , Japan, South Korea, and the United Arab Emirates.
● The concept is based on Hungarian technology.

Infrastructure - Aviation…

AI‑ 171 Dreamliner…

Why in news: Boeing 787 ‑ 8 Dreamliner (Flight AI ‑ 171 ) crashed shortly after take‑off from Ahmedabad to London.
● Both fuel control switches shifted to CUTOFF three seconds after
take-off , shutting down both engines. This led to fuel starvation , loss of
thrust , and eventual crash of the Boeing 787-8.
● This is the first-ever crash involving a Boeing 787 variant.
● The accident draws parallels with Air India Flight AI ‑ 855 (“Emperor
Ashoka”) in 1978 , which crashed near Bandra.
● Other incidents include AI 182 (“Emperor Kanishka”) mid ‑ air bombing
in 1985 , and Air India Express AI 1344 skid‑off in 2020.
● Boeing 787 can fly 330 min on one engine—dual failure odds ≈ 1 in 1 bn.
Black Boxes:
● Black boxes , painted bright orange, include the Cockpit Voice Recorder
(CVR) and Digital Flight Data Recorder (DFDR). They record flight
parameters and audio for post ‑ crash reconstruction.
● Use solid ‑ state memory , are water ‑ resistant , and have locator beacons.
● Despite ICAO Annex 13 mandating a 30 ‑ day preliminary report , India
has no legal deadline. DGCA’s 360° evaluation involves flight
operations , infrastructure , ATC , airworthiness , licensing , aerodrome
standards , and training.
Sustainable Aviation Fuel (SAF)
● ATF is a major source of carbon emissions, with aviation contributing 2.5% of global energy-related CO₂ emissions
in 2023. The Indian government is preparing to introduce SAF blended with ATF for domestic flights.
● This aligns with the mandatory phase of ICAO’s CORSIA (Carbon Offsetting and Reduction Scheme for
International Aviation), effective from 2027. CORSIA applies to international flights and requires airlines to offset
emission growth beyond 2020 levels.
● SAF is a biofuel made from sustainable feedstocks and is compatible with existing aircraft engines. Blending SAF
with ATF allows airlines to stay within CORSIA emission limits and reduce their carbon footprint.
● Indian Oil Corporation (IOC) to start producing Sustainable Aviation Fuel (SAF) at Panipat refinery. IOC became
the first company in India to receive the ISCC CORSIA certification for SAF production.
● Under NBCC (National Biofuel Coordination Committee), India has set indicative SAF blending targets for
international flights: 1% blending in 2027 and 2% blending in 2028.
● Feedstock: Oils and fats, oil-rich seeds, algae oils, animal fats, Municipal Solid Waste (MSW), Agricultural &
forestry residues: wood waste, sugarcane bagasse, corn stover, husks, straw, sugars & starches.
Montreal Convention 1999 (MC99)
● India is the third-largest domestic aviation market globally, after the US and China. Montreal Convention 1999
(MC99) is a treaty for the unification of rules governing international air carriage, finalized under ICAO.
● It provides a comprehensive legal framework for the carriage of passengers, baggage, and cargo by air, balancing
the interests of travelers, cargo shippers, and the aviation industry.
● India became the 91st member of the Montreal Convention by signing it in 2009.
● In India, its provisions are implemented via the Carriage by Air (Amendment) Act, 2009, covering international
carriage by airlines.
ICAO
● UN agency, established by the Chicago Convention of 1944 to ensure the safe and orderly growth of international
civil aviation worldwide. ICAO officially came into existence on 4 April 1947, after sufficient ratifications of the
Chicago Convention. The first official ICAO Assembly was held in May 1947 in Montreal.

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IndiGo…

Why in news: India’s largest airline ( 65% market share ). 60–70 aircraft grounded due to Pratt & Whitney engine issues.
Experts : Restricting Turkish Airlines cooperation is counterproductive. Code-shares & partnerships expand reach, offer
competitive fares.

Flight Duty Time Limitation…

● IndiGo cancelled over 1,000 flights following implementation of revised FDTL rules. However, International flights
accounted for less than 10% of the cancellations , as they generate higher revenue.
● DGCA granted IndiGo exemption from night duty restrictions , including the cap on two landings , until February 10.
Evolution of FDTL Regulations
● In 2019, the DGCA introduced new rules reversing some pilot-friendly provisions of the 2011 rules. 2011 Nasim Zaidi
Committee report had recommended safeguards on FDTL. After pilot bodies approached Delhi HC, revised norms
were notified in 2024.

Airport Tariff…

● In SC, Government & Airport Economic Regulatory Authority of India appealed TDSAT decision redefining tariff
calculation. TDSAT had held that aeronautical and non-aeronautical revenue must be considered together for
calculating aeronautical charges, known as the ‘single-till’ mechanism.
● AERA is a statutory body established under the AERA Act, 2008, to regulate tariffs and other charges for aeronautical
services at "major" airports. It operates as an independent regulator under the Ministry of Civil Aviation.

SAF National Policy…

● The Centre will release a national policy on Sustainable Aviation Fuel SAF, derived from non-fossil sources.
● Global need for SAF was 2 million tonne which by 2040 would rise to 183 million tonne.

Chicago Convention:
● Convention on International Civil Aviation, known as the Chicago Convention, was signed in 1944. The
Convention's technical standards are overseen by ICAO. All 193 ICAO member countries, including India, the
United States, and the United Kingdom, have agreed to follow its rules.
● Annex 13 of the Convention lays out the international protocols for investigating aircraft accidents and serious
incidents. Chapter 5 of Annex 13 outlines the core responsibilities for conducting investigations.
● The objective of such investigations is not to assign blame or liability, but to improve aviation safety by identifying
causes and preventing future accidents.
Bureau of Civil Aviation Security (BCAS):
● It is a regulatory authority under the Ministry of Civil Aviation responsible for civil aviation security in India.
● Formulates security standards, conducts audits & inspections, trains aviation security personnel, implements
advanced security technologies at airports. Safeguards civil aviation against unlawful interference.
● DGCA is the statutory (Aircraft (Amendment) Act, 2020) regulatory body for civil aviation, operating under the
Ministry of Civil Aviation. It primarily oversees aviation safety, licensing, and airworthiness standards.
Aircraft Accident Investigation Bureau (AAIB)
● Statutory body under India's Ministry of Civil Aviation responsible for conducting independent investigations into
civil aircraft accidents and serious incidents within Indian airspace.
● Establishment: Set up in 2012 to separate investigation from regulation, which was previously handled by DGCA.
● Legal Basis: Functions under the Aircraft (Investigation of Accidents and Incidents) Rules, 2017, which are framed
under the Aircraft Act, 1934. International Alignment: Its operations are aligned with Annex 13 of the Chicago
Convention (1944) of the International Civil Aviation Organization (ICAO). Headquarters: New Delhi.
January Update:
● Directors General of Civil Aviation Conference on Global Aviation Safety Strategy held in Montreal.
● The National Transportation Safety Board (NTSB) of the USA and the Air Accident Investigation Bureau (AAIB)
of the UK were participants in the investigation.
● The Cockpit Voice Recorder (CVR) and the Digital Flight Data Recorder (DFDR) were recovered and the NTSB’s
help was taken in downloading and decoding the contents of the two recorders.

● Revised FDTL Rules: Mandatory weekly rest period for pilots increased from 36 hours to 48 hours. Weekly cap on
landings between midnight and early morning reduced from six to two. Maximum flying time limited to eight
hours. Duty time capped at 10 hours. Restrictions imposed on pilot flying hours for flights extending into night
hours. Personal leave is not counted as part of the 48-hour weekly rest period.
Maintenance, Repair, and Overhaul (MRO):
● While addressing the annual general meeting of the International Air Transport Association , PM listed MRO as a
sunrise sector. India is accelerating to establish a $4-billion MRO hub in the country by 2030.
● 100% FDI under automatic route , GST reduction , and tax rationalisation have given momentum to the sector.
● India is the world’s third-largest and fastest-growing major aviation market.

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● India has a surplus of 213 million tonne of agricultural residue along with adequate manufacturing capacity.
● To achieve 1% blending of SAF by 2027 , India will require 30 million litre , while the 2% target for 2028 translates to 62
million litre. Local oil makers collectively have an annual production capacity o f 70 million litre.

Automatic Message Switching System (AMSS)…

● Air traffic at Delhi’s IGI Airport was disrupted due to a technical failure in the AMSS, the core communication
backbone of ATC , handling flight plans, NOTAMs, weather updates, and coordination messages across major Indian
airports; its failure forced manual handling of 2,500+ daily aircraft movements.
● Delhi’s AMSS uses outdated message-switching software , faces server overload, integration issues, limited trained
manpower , and lacks modern cloud-based redundancy.

Internet on Aeroplanes…

● In-flight internet works by treating the aircraft as a flying Wi-Fi router , with passengers’ devices connecting to
onboard Wi-Fi rather than directly to ground networks.
● Backhaul connectivity is provided either via Air-to-Ground (ATG) towers over land or satellites , with LEO satellites
offering lower latency than older geostationary satellites. Inside the aircraft, a local network of routers and Wi-Fi
access points distributes connectivity, with access managed through captive portals and traffic controls.
● Bandwidth is limited and shared , often resulting in slower speeds and restrictions on data-heavy services.
● Airplane mode is required to prevent uncontrolled cellular transmissions that could interfere with aviation systems and
overload terrestrial mobile networks. Certified in-flight internet systems are designed to avoid interference , using
regulated frequencies, shielding, and rigorous safety testing to ensure flight safety.

Airbus A320 Aircraft…

● Intense solar radiation corrupted critical flight control data of Airbus A320 family aircraft.
● Required software-hardware modification. The A320 family includes A319, A320 and A321 aircraft.

Navi Mumbai International Airport…

● Adding a new aviation gateway to the Mumbai Metropolitan Region (MMR) , Navi Mumbai International Airport
(NMIA) , developed and operated by Adani Airports commenced commercial flight operations.
● This is a greenfield airport , established to take the load off the existing Mumbai airport.

Bhogapuram…

● A validation flight was completed at Bhogapuram International Airport in Vizianagaram, Andhra Pradesh.
● GMR Visakhapatnam International Airport Ltd. (GVIAL) is constructing the greenfield airport.

Airports Privatisation…

● 3rd round of airport privatisation , covering 11 airports , has moved forward with the Ministry sending a proposal to the
Public Private Partnership Appraisal Committee (PPPAC) for its in-principle clearance.
● Include airports at Amritsar and Kangra ; Varanasi, Kushinagar and Gaya; Bhubaneswar and Hubli; Raipur and
Aurangabad; Tiruchi and Tirupati. Once the PPPAC completes its appraisal and the Union Cabinet signs off on the
plan, bids will be invited from private operators.
● The 11 airports were selected from among all AAI facilities handling 0.1–1 million passengers annually.
● The privatisation goals are also part of the National Monetisation Pipeline (NMP) that aims at monetising operating
public infrastructure to unlock idle capital and reinvest that in other assets.
● Launched in August 2021 , the NMP set an aggregate indicative target of ₹6 lakh crore to be raised by leasing
brownfield infrastructure assets over the four-year period from FY 2022 to FY 2025.
● 88.3% of the total NMP target has been achieved by various infrastructure ministries, of which roads and railways
remain the top contributors, but the aviation sector remains a laggard.
● Budget 2025-26 announced launch of the Asset Monetisation Plan 2025-30 to plough back ₹10 lakh crore.
● Privatisation of airports started in 2003. It approved the privatisation of two brownfield airports, i.e., Delhi and Mumbai
airports, with 26% AAI stake and 74% stake owned by private JV partners.
● Two greenfield PPP airports followed, which included Bengaluru and Hyderabad in 2004.
● In 2019 , six more airports (Ahmedabad, Lucknow, Jaipur, Mangaluru, Guwahati, Thiruvananthapuram) were privatised,
which were all won by the Adani. The revenue-share model was replaced by per passenger fee.
● PPPAC will evaluate key aspects, including revenue-sharing models versus per-passenger fees and whether the User
Development Fee collected from passengers as a component in the airfare will be determined for each airport
independently or as a joint asset.
● Only about 6% of Indians currently travel by air, highlighting the enormous scope for growth in what is already the
world’s third-largest aviation market.

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Automobile…

EV Manufacturing…

Why in news : Central Government notified guidelines to promote domestic manufacturing of electric cars by reducing
import duty to 15% (from 70–100%) for companies investing ₹4,150 crore in India’s EV manufacturing.
● The scheme, titled Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) , allows up to
8,000 fully built EVs per year to be imported at the reduced duty for five years , provided operations begin within
three years. Imported EVs must have a minimum CIF value of $35,000 to avail the 15% customs duty.
● Manufacturers must ensure 25% Domestic Value Addition in 3 years and 50% in 5 years.
● China has world’s highest EV adoption rate , largest charging network , and top EV production.
● In FY 2025, EVs made up 7.8% of India’s vehicle sales : Electric three-wheelers: 57% of category, Electric
two-wheelers: 6.1%, Passenger vehicles: 2.6% and Commercial vehicles: 0.9%.
● India emerged as largest market for electric 3-wheelers in 2024, but electric passenger vehicle share remains low.
● In 2024, Indian OEMs (Tata, Mahindra) produced 80% of electric cars domestically , while Chinese EV imports
remained under 15% due to high duties and strong local offerings.
● Neodymium-Iron-Boron (NdFeB) magnets are essential for EV electric motors , providing strong magnetic fields for
efficient performance. Also vital for power steering, wiper motors, and braking systems in EVs.
● India’s electric 4-wheeler manufacturing capacity is set to be 4th-largest EV manufacturer globally , after China ,
Europe , and the US. EV penetration in India was just 2% in 2024 , compared to Vietnam’s 17%.

EV Growth - Niti Aayog…

Why in news: The report titled ‘Unlocking a $200 Billion Opportunity: Electric Vehicles in India’ said continuation of
incentives alone may not help India reach the 2030 target of 30% EV sales.
● India’s EV adoption is slower than China, US, and EU. Global EV penetration = 17%, while India = 7.6%.
● According to the report, India has the highest EV penetration rate in three-wheelers (16%), followed by two-wheelers
(5%), buses (7%), cars (2%), and trucks (0.07%).

EV…

Why in news: Cities like Cairo, Dakar, Santiago , and Bogotá are adopting cleaner public transport to reduce pollution.
● China leads global EV sales, followed by Europe and the U.S.
● Fuel Cell Electric Vehicles offer benefits like longer range, quick refuelling and are lighter than Battery Electric
Vehicles. They are suited for long-distance travel, rugged terrain, and extreme cold. Fuel cell buses and trucks cost
20–30% more than BEVs.
● In 2023 , EVs made up 5% of total vehicle sales in India. Electric car registrations grew by 70% against a 10% growth in
overall car sales. India saw the fastest growth in the three-wheeler segment , capturing ~60% of global electric
three-wheeler sales. India overtook China as the largest electric three-wheeler market.
● India ranks second globally in electric two-wheeler sales behind China. China, India, ASEAN countries dominate
global two- and three-wheeler market , while other regions account for <5% of global sales in these categories.
● National Electric Mobility Mission Plan (NEMMP) 2013 had an ambitious (though unfulfilled) goal of achieving 6–7
million units of hybrid and electric vehicles on Indian roads by 2020.
● Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME India) scheme.
○ FAME-I (2015): Focused on Technology Development, Demand Creation, Pilot Projects, Charging Infrastructure.
○ FAME-II (2019): Shifted focus to public and shared transportation, subsidizing electric buses, three-wheelers, and
two-wheelers. FAME-III (2024–2025): Expanded incentives to include heavy electric trucks and EV charging
stations Ministry of Heavy Industries.

● EVs include both pure electric vehicles and plug-in hybrid electric vehicles (with both battery and ICE ).
● Key government initiatives include PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM
E-Drive) , e-AMRIT , and state-level EV subsidies.

● Battery EV: Replaces ICE vehicles with a Li-ion battery, fully powered by electricity. More efficient compared to
hybrids and plug-in hybrids.
● Plug-in Hybrid EV: Uses both ICE and a battery charged from an external socket (has a plug). The battery is
charged using electricity rather than the engine. More efficient than HEVs but less efficient than BEVs.
● Hybrid EV: Combines internal combustion engine (usually petrol) and a battery-powered motor. The petrol engine
drives the vehicle and charges the battery when empty. Less efficient than BEVs and PHEVs.
● Fuel Cell EV: Generates electric energy from chemical energy. Hydrogen FCEV uses hydrogen and air to generate
electricity, producing heat and water as byproducts. Powered entirely by electricity, but has range and refueling
processes similar to conventional cars and trucks, unlike BEVs.
● Sodium-Ion (Na-Ion) Battery: JNCASR (Bengaluru) has developed a super-fast charging sodium-ion battery. Can
charge up to 80% in just six minutes and is expected to last over 3,000 charge cycles. Promising Alternative to
Lithium-Ion Batteries. Sodium is more abundant than lithium and can be extracted from seawater at lower costs.
NASICON is a class of polyanionic materials with a known structure in electrochemical materials.

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Auto PLI…

● The Ministry of Heavy Industries has proposed doubling the allocation for the PLI for automobiles and auto
component manufacturers to ₹5,800 crore.
● The PLI auto scheme incentivises local production of only those products that achieve a domestic value add of 50%.
It focuses on zero emission vehicles, i.e., battery electric vehicles and hydrogen fuel cell vehicles.
● The scheme was announced in 2021 , but FY 2023-24 was the first performance year.

e-LCV Transition…

● Light commercial vehicle are small ( sub-3.5 tonne ) trucks that are backbone of India’s e-commerce.
● LCVs operate without corporate average fuel efficiency (CAFE) norms , despite their high utilisation.
● In late July, 2025 , the Bureau of Energy Efficiency (BEE) unveiled a fuel consumption standard proposal for LCVs,
which will run from 2027 through 2032.
● PM E-DRIVE incentive scheme excludes LCVs , though some State policies provide support.

Scheme to Promote Manufacturing of Electric Passenger Cars (SPMEPC)…

● Ministry of Heavy Industries invited auto players to submit interest for the SPMEPC in India. The scheme permits
automakers to import up to 8,000 EVs at a reduced duty rate of 15% (instead of 70–100%) if they commit to invest
₹4,150 crore in local EV manufacturing. The deadline for submissions ended with not a single applicant.

China - India - WTO - EV - PLI…

Why in news: China has filed a complaint over India’s subsidies for EVs and batteries and PLI Scheme.
● China has also filed similar complaints against Türkiye, Canada, and the European Union (EU).
● China has sought consultations with India , which is the first step in the WTO dispute settlement process. If
consultations do not yield a satisfactory resolution, China can request the WTO to establish a panel.
● China is India’s second-largest trading partner , underscoring the economic importance of bilateral relations.
● In 2024–25 , India’s exports to China fell by 14.5%. However, imports from China increased by 11.52%.
● The complaint concerns three PLI schemes related to : Advanced Chemistry Cell (ACC) battery manufacturing,
Automobile and Advanced Automotive Technology (AAT) products, and Electric Vehicle (EV) production.
● China claims that the PLI schemes provide financial benefits contingent upon Domestic Value Addition , violating
WTO’s non-discrimination principles amounting to Import Substitution subsidies prohibited under WTO law.
WTO Law on Subsidies
● The Agreement on Subsidies and Countervailing Measures (SCM) governs the use of industrial subsidies.
● Article 1 defines a subsidy as a financial contribution by a government that confers a specific benefit.
● Subsidies are classified as:
○ Prohibited subsidies — export-based or import-substitution subsidies.
○ Actionable subsidies — permissible but challengeable if they cause trade injury.
○ Non-actionable subsidies — allowed under specific conditions (e.g., R&D, environmental objectives).
● Under Article 3.1(b) of the SCM , import-substitution subsidies (those contingent on using domestic over imported
goods) are prohibited as they distort fair trade.
● An IS subsidy also breaches:
○ Article III.4 (GATT): requires national treatment, prohibiting countries from treating imported goods less favourably
than domestic products.
○ Article 2.1 (TRIMS): prohibits investment measures that conflict with national treatment obligations. TRIMs explicitly
identifies local content requirements as prohibited.
● India maintains that DVA requirements are not equivalent to local content mandates. Domestic value addition can
occur through multiple means — including assembly, R&D, and innovation — not just use of local materials.
Dispute Resolution at the WTO
● The process begins with bilateral consultations between India and China to reach an amicable settlement.
● If unresolved, the case proceeds to a three-member WTO Dispute Settlement Panel. However, Appellate Body of the
WTO has been non-functional since 2019, due to U.S. blocking appointments. Any appeal would therefore suspend
final adjudication, effectively maintaining the status quo.

Involution - Chinese EV Sector…

Why in news: China is facing what is locally called nèijuǎn or “involution” , where price wars in certain sectors, especially
EVs , are causing losses due to low prices. Similar trends seen earlier in China’s solar industry.

Draft CAFE Rules…

Why in news: India has proposed to revamp its vehicle emissions rules , known as the Corporate Average Fuel
Efficiency (CAFE) norms , with the introduction of CAFE 3 draft standards.
● The CAFE 3 norms aim to address a long-standing demand by carmakers to provide emissions relaxation for small,
lightweight cars, a metric followed in some countries globally.

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● The draft norms , issued by BEE for public consultation , will apply to all M1 category vehicles — passenger cars with a
seating capacity of up to nine people including the driver and a maximum weight of 3,500 kg. Under the proposed
rules, each carmaker must meet specified emissions targets , failing which penalties will be imposed.
● The CAFE 3 draft introduces new concepts such as emissions pooling , allowing multiple carmakers to combine their
emissions data to meet targets. The rules also propose emissions discounts for carmakers that sell EVs.
● The proposed framework brought out by the BEE seeks tightening fleet-average CO2 emissions from 113 gram/km to
91.7 gram/km. Draft includes a relaxation for petrol cars weighing 909 kg or less, measuring under four metres, and
equipped with engines up to 1,200 cc. Such cars will get a 3 g/km relaxation in their CO2 numbers.

New Fuel Emission Rules…

● India scrapped a planned concession for small cars in upcoming fuel-efficiency rules. A September draft had
proposed leniency for petrol cars weighing 909 kg (2,004 lb) or less and with engine capacity not exceeding 1200 cc.
● Transport accounts for about 12% of India’s energy use and is a major driver of petroleum imports and carbon
emissions. Passenger vehicles make up nearly 90% of transport-related emissions.
● Corporate Average Fuel Efficiency ( CAFE ) norms dictate permissible CO₂ emissions across a manufacturer’s fleet of
passenger cars weighing less than 3,500 kg (7,716 lb).
● Proposed carbon emission norms for passenger vehicles slated to take effect from 2027.

Fishing…

Fishing Limit
Why in news: Total Allowable Catch (TAC) is a limit on the total quantity of fish that fishers can catch in a particular
area. Governments and agencies impose TACs to prevent overfishing and ensure sustainable fish populations.
● Recent TAC-related dispute involves U.S. and Russia over Patagonia toothfish caught in South Atlantic Ocean. In
2021, Russia refused to admit TAC for this species set by Commission on the Conservation of Antarctic Marine Living
Resources (CCAMLR). As a result, a U.S. judge blocked the import of Patagonia toothfish last month.

Fisherwomen’s Day…

● Celebration of the first International Fisherwomen’s Day in Mumbai. Fisherwomen from over 40 countries
participated in the events marking the day.
● Organisations such as World Forum for Fisherpeople and National Fishworkers Forum highlighted role and struggles
of fisherwomen. Fisherwomen stated that their land is being grabbed under Slum Redevelopment Authority.
● They sought reimplementation of the 2011 Coastal Regulation Zone (CRZ) notification and demanded scrapping of
the CRZ 2019 notification. Under the 2011 CRZ notification , fishing colonies are protected under CRZ III.
● Women constitute nearly half of the employed fisheries workforce globally, though fisheries has been traditionally
male-dominated. Indian fisherwomen account for about 44% of the total fisher population, according to the
government. They form a workforce of more than 1.24 crore in fisheries.

Deep-sea Fishing…

● GoI notified rules for Sustainable Harnessing of Fisheries in EEZ , giving priority to fishermen cooperative societies and
fish farmer producer organisations (FFPOs) for deep-sea fishing operations.
● Rules aim to facilitate deep-sea fishing & enhance seafood exports through value addition, traceability, certification.
● The rules define an “operator” as an individual, enterprise, FFPO, or Fisheries Cooperative , including multi-State
cooperatives, responsible for operating or managing a fishing vessel. Centre will provide training & capacity-building
for traditional & small-scale fishers, fisheries cooperatives, SHGs, & FFPOs.
● The mother-and-child vessel concept will enable mid-sea transshipment under an effective monitoring mechanism.
● In the Andaman & Nicobar Islands and Lakshadweep , accounting for 49% of India’s EEZ , this is expected to boost
exports of high-quality fish.
● The rules require applications for catch certificates and health certificates to be submitted through designated online
portals , integrated with the ReALCRaft portal.
● The EEZ Rules take a firm stand against harmful fishing practices such as LED light fishing, pair trawling, and bull
trawling. A minimum legal size for fish species will be prescribed to conserve biodiversity.
● Mariculture practices such as sea-cage farming and seaweed cultivation will be promoted as alternate livelihoods.

● Bharat Stage (BS) emission standards are norms instituted by the government to regulate air pollutants from
ICEs, including motor vehicles. India has been following Euro emission norms with a time lag of five years.
● India introduced emission norms in 1991 and tightened them in 1996 , requiring technology upgrades like catalytic
converters to reduce exhaust emissions. Fuel specifications based on environmental considerations were notified
in 1996 , implemented by 2000 , and incorporated in BIS 2000 standards.
● Following the Supreme Court order of 1999 , the Centre notified BS-I (BIS 2000) and BS-II norms. BS-I and BS-II
were broadly equivalent to Euro I and Euro II respectively.
● BS-II applied to the NCR and other metros , while BS-I applied to the rest of India.

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Fisheries Schemes…

● On World Fisheries Day 2025 (Nov 21) , the FAO calls for a renewed commitment to Blue Revolution , supporting the
Government’s theme: “India’s Blue Transformation: Strengthening Value Addition in Seafood Exports.”
● India contributed 10.23 million tonnes , becoming the second-largest aquaculture producer globally.
● Past decade marked transformation under India’s Blue Revolution and Pradhan Mantri Matsya Sampada Yojana,
Climate-Resilient Coastal Fishermen Villages Programme and draft National Fisheries Policy 2020.
● FAO-India collaboration began with the Bay of Bengal Programme (BOBP) , improving small-scale fishing
technologies , sea safety , and post-harvest management.
● The BOBLME project supported the Ecosystem Approach to Fisheries Management (EAFM) and National Plans of
Action against IUU fishing.
● A Technical Cooperation Programme (TCP) aims to strengthen fishing ports and harbours , with pilot sites at
Vanakbara (Dadra & Nagar Haveli and Diu) and Jakhau (Gujarat). TCP will provide strategic and operational tools for
investment planning to address environmental, social, and economic challenges.
● Matsya Seva Kendras (MSKs): To provide a one-stop solution for a range of extension services through trained
aquaculture professionals; Government Assistance: Up to 60% support for women and weaker sections; Mobilize
start-ups, cooperatives, and fish farmers' organizations to share best practices.
● Centre will develop 100 climate-resilient coastal fishermen villages across the country. Funding: ₹2 crore per village
under the Pradhan Mantri Matsya Sampada Yojana. Common facilities like fish-drying yards, processing centres, fish
markets, and emergency rescue facilities will be created. Promoting Climate-Resilient Practices like seaweed
cultivation, artificial reefs, and green fuel.
● WTO Agreement on Fisheries Subsidies entered into force after WTO received instruments of acceptance from
two-thirds of its membership (111 members). It is the first WTO agreement with environmental sustainability at its core
& establishes mandatory multilateral rules to curb harmful subsidies that lead to the depletion of global fish stocks.
Specifically targets subsidies for: Illegal, Unreported, and Unregulated (IUU) fishing, fishing of overfished stocks &
fishing on the unregulated high seas. Directly supports SDG 14.6. WTO Fisheries Funding Mechanism (Fish Fund) was
established to provide technical assistance and capacity building for LDCs. Originally adopted at the 12th WTO
Ministerial Conference (MC12) in 2022; not ratified by India.

Fish Export Issues…

● Tariff uncertainty and the impact of climate change. White spot syndrome virus destroyed farming of black tiger
shrimp, popular brackish water species penaeus monodon. Ministry has asked States to promote diversification in
inland aquaculture by promoting scampi, tilapia, pangasius in place of varieties such as rohu (Labeo rohita) and catla
(Catla catla) which do not have a global market presence.
● To avoid farmers’ dependency on Litopenaeus vannamei (whiteleg shrimp) & to ensure disease-free species,
scientists are working on improving two indigenous varieties — Penaeus indicus (Indian white prawn) and Penaeus
monodon (giant tiger prawn). Kerala’s popular karimeen, or pearl spot, also has an international appeal. Centre has
decided to help States in promoting seaweed marine cage culture , a common practice in China and Norway.
● India exports seafood products to about 128 countries such as the U.S., Japan, China, Vietnam, Thailand, Canada,
Italy, and Russia, and those of West Asia, the European Union and Southeast Asia.
● Andhra Pradesh accounted for 30% to 35% of the exports.

Regional and International Bodies…

WTO - PLI Scheme…

Why in news: The U.S. questioned India’s PLI scheme for specialty steel at the WTO , citing concerns over subsidies
amid global steel overcapacity. India defended the scheme , stating it aims to reduce import dependence on higher
grades of steel and promote self-sufficiency.
● Specialty steel is among 14 sectors covered under the PLI scheme launched in 2021. It aims to boost domestic
manufacturing , attract global investment , generate employment in high-growth sectors.
● India countered that it was a net importer of steel in FY25 , justifying the need to enhance local output. Although India
is the second-largest steel producer , it remains dependent on imports for specialty and high-end steel.
● India clarified that the PLI scheme is WTO-compliant , with no export obligations or export-linked subsidies.

IMF - EFF…

Why in news: IMF Executive Board approved funding to Pakistan under EFF and RSF. India abstained from the vote,
citing Pakistan’s poor track record , potential misuse for state-sponsored terrorism. India, Bangladesh, Bhutan, and Sri
Lanka collectively hold only 3.05% of the IMF vote share, while U.S. holds 16.49% , Japan 6.14% , and China 6.08%.
● Extended Fund Facility provides assistance to countries with serious medium-term balance of payments problems
due to structural weaknesses. It offers repayment periods to support medium-term structural reforms. Unlike
development banks, the IMF does not finance specific projects, but supports policy reforms through financial aid.

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Retaliatory Tariffs…

● India maintains U.S. measures are not consistent with GATT 1994 and the Agreement on Safeguards (AoS). India
argues the U.S. failed to hold mandatory consultations under Article 12.3 of AoS , giving India the right to retaliate.
● India proposes to suspend concessions and increase tariffs on selected U.S. products after 30 days.
● Under Article 1 of GATT (1994) , all WTO members must grant MFN status to other member countries. MFN status
ensures non-discrimination in trade— any special favour (e.g., lower tariffs) given to one country must be extended to
all WTO members.

Budget…

Customs Duty…

● The Union Budget envisions simplification of the Customs procedures.
● For chewing tobacco and Jarda-scented tobacco, the National Calamity Contingent Duty will be increased to 60%
from 25% from May 1. However, effective duty rate on these products will remain unchanged.
● Custom duty on critical minerals (monazite), renewable energy, nuclear energy, electronics, civil aviation, defence,
drugs/medicines has been reduced to 0.

STT…

● The Budget increased the tax on derivative trades.
● FM increased the Securities Transaction Tax (STT) by 150%, from 0.02% to 0.05%.
● STT hike will increase trading costs, particularly for high-frequency traders and scalpers who rely on small price
movements to profit. This could lead to a shift away from short-term speculative trading, pushing more retail investors
towards long-term investment strategies.
● Unlike retail traders, brokers will also be hit by this move & may experience a decline in transaction volume as retail
activity in high-frequency trading decreases due to increased cost.
● The recent changes to buyback taxation are advantageous for both retail and promoter investors in terms of absolute
returns. The new law treats buyback as a capital gain, taxing it at special rates: 20% for short-term gains and 12.5% for
long-term gains for retail investors.

Capital Markets…

● FM increased investment limits for NRIs, rationalised taxation on share buybacks, proposed measures to deepen bond
markets. FM proposed to raise the STT on Futures to 0.05% from 0.02%, on Options Premium and Exercise of Options
to 0.15% from the present rates of 0.1% and 0.125% respectively.
● Individual Person Resident Outside India will be permitted to invest in equity instruments of listed Indian companies
through Portfolio Investment Scheme. It is also proposed to increase the investment limit for an individual PROI under
this scheme from 5% to 10%, with an overall investment limit for all individual PROIs to 24%, from the current 10%.
● FM proposed to provide a ₹100-crore incentive for single municipal bond issuances above the value of ₹1,000 crore.

Data Centres…

● Expanding the safe harbour threshold to ₹2,000 crore alongside an automated approval system provided
much-needed fiscal predictability for large Global Capability Centres (GCCs).
● The proposal includes tax holiday until 2047 for any foreign company establishing data centres in India, coupled with a
specific safe harbour of 15% on cost for companies providing data services from India to a related entity.
● In today’s VUCA (Volatile, Uncertain, Complex, Ambiguous) landscape, this move transformed India from a mere
delivery hub into a stable, strategic sanctuary for global enterprises.

Textile, MSMEs…

● Textile sector saw 25% jump in budgetary allocation
while the MSME sector will see doubling of allocation.
● A Scheme for Enhancement of Construction and
Infrastructure Equipment would be introduced to boost
local manufacturing of high-value and
technologically-advanced equipment.
● A Textile Expansion and Employment Scheme to
modernise traditional clusters with capital support for
machinery, technology upgradation and common testing
and certification centres.
● A National Handloom and Handicraft programme would ensure targeted support for weavers and artisans, Mahatma
Gandhi Gram Swaraj initiative would boost khadi, handloom and handicraft, Tex-Eco Initiative would promote globally
competitive and sustainable textiles and apparel and Samarth 2.0 would upgrade the textile skilling ecosystem.

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● TReDS (Trade Receivables Discounting System) would be a mandatory transaction settlement platform for all
purchases from MSMEs by CPSEs. A credit guarantee support mechanism would be introduced through CGTMSE for
invoice discounting on the TReDS platform.

Biopharma…

● Budget proposed a biopharma strategy for healthcare advancement through knowledge, technology, and innovation
with an outlay of ₹10,000 crore over the next five years to develop India as a global biopharma manufacturing hub.
● Biopharma SHAKTI will build the ecosystem for domestic production of biologics and biosimilars. Biopharma is part of
the seven strategic and frontier sectors identified for scaling up by the government.
● Setting up 3 new National Institutes of Pharmaceutical Education and Research & upgrading existing 7 facilities along
with creation of a network of over 1,000 accredited India clinical trial sites forms part of the strategy on biopharma.
● Biopharmaceuticals are complex molecules and unlike other medicines they are not manufactured through chemical
synthesis. Biological products are generally large, complex molecules produced through biotechnology in a living
system such as a microorganism, plant cell or animal cell.
● Biopharma SHAKTI will enable domestic companies to expand into more complex products such as biosimilars.

Mental Health; AYUSH…

● The government proposed the establishment of two new national mental health institutes, in Ranchi and Tezpur,
alongside plans to create a new NIMHANS in North India.
● The Budget also unveiled a comprehensive push to scale up India’s AYUSH ecosystem and announced the
establishment of three new All India Institutes of Ayurveda to strengthen education and clinical excellence in
traditional medicine.

Semiconductors, REEs…

● Building on India Semiconductor Mission 1.0, Budget proposes India Semiconductor Mission 2.0, expanding the focus
from fabrication to domestic production of semiconductor equipment and materials, development of full-stack Indian
intellectual property, and stronger supply chains.
● Budget proposed the creation of dedicated Rare Earth Corridors to strengthen domestic supply chains by integrating
mining, processing and manufacturing.
● Proposals for Mega Textile Parks and the Mahatma Gandhi Gram Swaraj initiative aim to strengthen value addition,
market access and skills, expanding labour-intensive employment and rural self-employment opportunities,
particularly for weavers, artisans and youth.

New Rural Jobs Scheme…

● The budget for rural employment schemes saw a 43% hike.
● There are approximately 8.65 crore active job card holders under the scheme. If all active job card holders are
provided 125 days of employment, and the average cost per person per day is ₹355, the total expenditure required
would be ₹3,83,844 crore. At a 60:40 cost-sharing ratio, the Government of India’s share would amount to
approximately ₹2.3 lakh crore.
● The new law has not yet been notified; once it is, State governments will have six months to roll out their version of the
scheme. In the interim, the MGNREGS will continue.

Coconut, Cocoa, Sandalwood…

● Centre will support high-value crops such as coconut, sandalwood, cocoa, and cashew in coastal areas. Agar trees in
the Northeast and nuts such as almonds, walnuts, and pine nuts in hilly regions will also be supported.
● India is world’s largest producer of coconuts and about 30 million people depended on coconuts for their livelihood.
● Proposed a Coconut Promotion Scheme to increase production and enhance productivity through various
interventions, including replacing old and
non-productive trees with new saplings.
● Programme proposed for Indian cashew and cocoa
to make country self-reliant in raw cashew & cocoa
production.
● Regarding sandalwood, the Centre would partner
with State governments to promote focused
cultivation and post-harvest processing to restore
the sandalwood ecosystem.

Boost for Defence…

● Union Budget has allocated a record ₹7.85 lakh
crore to defence services, marking the highest-ever outlay for the sector.

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● The allocation accounts for 2% of the estimated GDP for the financial year 2026–27, and reflects a 15.19% increase
over the Budget Estimates for the current year. Defence spending now constitutes 14.67% of the Union government’s
total expenditure, the highest among all Ministries.
● Of Ministry’s total allocation, 27.95% has been earmarked for capital expenditure, 20.17% for operational sustenance
and preparedness, 26.4% for pay and allowances, 21.84% for defence pensions, and 3.64% for civil organisations.
● A major thrust has been placed on indigenisation, with ₹1.39 lakh crore, or 75% of the capital acquisition budget,
earmarked for procurement from domestic industries.

Livestock, Fisheries Sectors…

● The Budget proposes integrated development of 500 reservoirs and Amrit Sarovars.
● Steps will be taken to strengthen the fisheries value chain in coastal areas.
● Market linkages involving start-ups, women-led groups and Fish FPOs will be enabled to reduce post-harvest losses
and improve price realisation.
● Country has one of the world’s largest networks of inland reservoirs, spanning about 31.5 lakh hectares, offering
significant potential for inland fisheries development.
● Key provisions in the Budget focus on improving productivity, animal health, and infrastructure across the livestock
value chain, breed improvement programmes, expansion of veterinary services, and disease prevention initiatives to
safeguard farmers’ assets and ensure quality livestock output.

Budget Analysis…

● Budget makes a clear strategic choice: maintain fiscal
discipline while using public investment to strengthen
India’s long-term competitiveness and improve ease of
living for citizens.
● A defining feature of the Budget is its emphasis on
declining debt-to-GDP ratio. The ratio is projected to fall
from 56.1% in 2025–26 to 55.6% in 2026–27.
● This has allowed the government to raise public capital
expenditure to ₹12.2 lakh crore, even as the fiscal deficit
is reduced to 4.3% of GDP.
● Operationalisation of 20 new national waterways, starting with NW-5 in Odisha, and the launch of a Coastal Cargo
Promotion Scheme aim to double the modal share of waterways and coastal shipping to 12% by 2047.
● Rare Earth Corridors (RECs): By supporting mineral-rich States such as Odisha, Kerala, Andhra Pradesh and Tamil
Nadu to develop integrated corridors spanning mining, processing, research and manufacturing, the government is
addressing a critical vulnerability in global supply chains.
● The proposed SME Growth Fund, liquidity support through a strengthened TReDS ecosystem, and professional
compliance assistance aim to help MSMEs.
● The establishment of a National Institute of Hospitality for training in the service sector, setting up girls’ hostels in
STEM institutions across districts, and several measures in the tax proposals to boost the manufacturing sector were
significant announcements.

Education and Skilling…

● FM announced ‘Education to Employment and Enterprise’ Standing Committee to focus on the “services sector as a
core driver of Viksit Bharat”.
● Allocation for the Union Education Ministry in 2026–27 has risen to about ₹1.39 lakh crore, an increase of 14.21%
compared with the revised estimates for the current fiscal.
● Much of the allocation for the Skills Ministry has been towards the PM Skilling and Employability Transformation
through Upgraded Industrial Training Institutes scheme, launched in 2025.
● Provisions to set up ‘Content Creator Labs’ across 15,000 secondary schools and 500 colleges to promote pathways
in the Animation, Visual Effects, Gaming, and Comics (AVGC) sector and the reduction of Tax Collected at Source
(TCS) from 5% to 2% for pursuing education abroad.

Persons with Disabilities…

● GoI is preparing to launch two new schemes for persons with disabilities, aimed at training them for “dignified
livelihood opportunities” and providing them with “timely access” to assistive devices by setting up “modern
retail-style” Assistive Technology Marts across the country.
● Two new schemes — the Divyangjan Kaushal Yojana and Divyang Sahara Yojana.

Jal Jeevan Mission
● Jal Jeevan Mission programme, which aims to provide potable water to every rural household, has been allotted
₹67,600 crore for the financial year 2026–27 (more than Budget for 25–26).

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● Announced by PM in 2019 to provide potable tap water to every rural household by 2024.
● As of 2023, 77% of target has been achieved, with 15/19 crore households provided tap water connections.
● Tap Connections vs. Water Supply: There is a difference between households having tap connections and receiving daily
quota of 55 litres per person per day of potable water.
● Objective: To ensure households with taps but no water, and those without taps, are provided potable water.

Rare Earth Corridors…

● U.S. is the second largest importer of Chinese rare
earths after Japan.
● India’s rare earth imports increased from $14.1 million
in 2014 to $17.5 million in 2024. Over 45% of these
minerals come from China.
● Promethium is not included in the list as it is
radioactive and does not occur in mineable quantities.
They are critical components in clean energy
technologies such as electric vehicles and wind turbines,
as well as in defence applications.
● Although rare earth deposits exist in countries such as Brazil, Australia, and India, China holds nearly half of the global
reserves. China is the world’s largest producer, contributing over 60% of global production in the last five years.
● China dominates the value chain with around 92% of global refining capacity.
● In the last 5 years, China has been largest exporter, supplying close to 30% of global demand.
● Budget strengthens project viability by making exploration expenditure for nine critical minerals (lithium, graphite,
potash, beryllium, niobium, tantalum, indium, rhenium, and glauconite) eligible for tax deductions. 4 (beryllium,
tantalum, lithium and niobium) were on the restricted atomic minerals list just three years ago.
● Mission Anveshan focuses on hydrocarbon discovery using seismic AI tools.

Clean Energy…

● The basic customs duty on sodium antimonate, used in the manufacture of solar glass, has been cut from 7.5% to
zero. “Specified” capital goods required for manufacturing lithium-ion cells for battery energy storage systems have
also been exempted from duty, along with several components used in the manufacture of nuclear power projects,
including controller and protector absorber rods.

Semiconductor Mission 2.0 - ECMS…

● Outlay for Electronics Component Manufacturing Scheme would be increased from ₹22,805 crore to ₹40,000 crore.
● The ECMS’s application window is open until 2027 for just one category of goods: indigenously manufactured capital
machinery to make components.
● Last year, the cabinet approved ECMS for a period of 6 years. The scheme focuses on passive component and
sub-assembly manufacturing to increase domestic value addition. Unlike past production-linked incentive schemes ,
this scheme offers incentives based on factory turnover and employment creation.
● Active components include semiconductors and other critical elements , while the scheme also targets
sub-assemblies like display and camera controllers. It also includes support for ‘bare components’ such as circuit
boards, hardware enclosures, and lithium-ion batteries.

CCUS…

● Budget earmarked ₹20,000 crore towards Carbon Capture Utilisation and Storage (CCUS).
● CCUS capture CO₂ emissions from large point sources — such as power plants, steel, cement, chemicals, and
refineries — and either use CO₂ as an input for products or permanently store it in geological formations.
● Prioritises point-source capture — especially from cement, steel, fertilizers, and power generation — and emphasises
indigenous technology development, and shared
transport and storage infrastructure.

Seven Rail Corridors…

● Budget announced 7 high-speed rail corridors,
connecting 5 South Indian States & others.
● “Growth connectors” would link Mumbai–Pune,
Pune–Hyderabad, Hyderabad–Bengaluru,
Hyderabad–Chennai, Chennai–Bengaluru,
Delhi–Varanasi, and Varanasi–Siliguri.
● These corridors will be 4,000 km in length.

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Container-making, Inland Waterways…

● The Budget features several proposals to boost coastal shipping and inland shipping.
● It also promises ₹10,000 crore to support the making of containers in India.
● GoI aims to develop inland and coastal shipping so that its share in total cargo carried through road, rail and water
increases from 6% to 12%. Being a cheaper mode, inland waterways can facilitate market access.
● Budget has proposed to establish a new Dedicated Freight Corridors connecting Dankuni in east to Surat in west and
operationalise 20 new NWs, starting with Brahmani–Mahanadi NW-5.
● This NW can connect mining centres in Talcher to industrial centres and feed Paradip and Dhamra ports.

Training Aircraft, Seaplane Operations…

● Budget announced incentives for the manufacture of aircraft in India, including training aircraft and seaplanes &
proposed removal of the 7.5% to 15% basic customs duty on components and parts required for the manufacture of
civilian, training and other aircraft.
● A viability gap funding scheme will also be introduced to support the use of seaplanes.
● Seaplane flights are part of the UDAN scheme since 2018, but no routes have taken off yet.

Buddhist Circuits, Hiking Trails…

● Budget announced a pilot scheme for upskilling 10,000 guides in 20 iconic tourist sites and setting up of a National
Institute of Hospitality to train professionals in the sector.
● National Destination Digital Knowledge Grid to digitally document all places of cultural, spiritual and historic
significance would be set up.
● To boost tourism in the Northeast, FM proposed a scheme for the development of Buddhist circuits Arunachal
Pradesh, Sikkim, Assam, Manipur, Mizoram, and Tripura.
● FM announced the development of ecologically sustainable environment tourism trails, including mountain trails in
Himachal Pradesh, Uttarakhand and J&K; Araku Valley in the Eastern Ghats; Podhigai Malai in the Western Ghats
(Tamil Nadu), turtle trails along key nesting sites in the coastal areas of Odisha, Karnataka and Kerala; and
bird-watching trails along the Pulicat Lake on the Andhra Pradesh–Tamil Nadu border.

Champion MSMEs…

● Various measures aimed at creating ‘Champion MSMEs’, providing them equity, liquidity, and professional support,
must be implemented quickly. MSMEs account for 48.6% of India’s exports. Overall, capital expenditure is set to grow
to ₹12.2 lakh crore in 2026–27, amounting to 4.4% of GDP, the highest in at least the last 10 years.
● Income-tax revenue has been budgeted to grow 1.9% over the BE of 2025–26. Gross GST revenue has been projected
to contract 13.5% in 2026–27, a reflection of the September 2025 rate rationalisation and the end of the
Compensation Cess. Taken together, the Centre’s fiscal deficit has been projected at 4.3% of GDP in 2026–27, down
from 4.4% estimated for 2025–26.

Rakhigarhi…

● Budget proposed to develop Rakhigarhi, the largest site of the Harappan culture in the Indian subcontinent, into a
“vibrant, experiential cultural destination”.
● Aside from Rakhigarhi, FM had, in her 2020–21 Budget, announced the development of four other archaeological sites
— Hastinapur (UP), Sivasagar (Assam), Dholavira (Gujarat), Adichanallur (TN) — as iconic sites with on-site museums.
● FM proposed to develop 15 sites; Lothal, Dholavira, Rakhigarhi, Adichanallur, Sarnath, Hastinapur, and Leh Palace.

Fiscal Deficit…

● Centre targets a debt-to-GDP ratio of 55.6%, in line with the efforts to reduce the ratio to 50% by 2031.
● A declining debt-to-GDP ratio will gradually free up resources for priority sector expenditure by reducing the outgo
on interest payments. Centre’s net tax receipts, after accounting for devolutions to States, is budgeted at ₹28.7 lakh
crore, up 7.2% over the level in the revised estimates of 2025–26.
● Budget 2026 does not contain any big tax cuts for salaried or corporate taxpayers. Gross corporate tax revenue is
budgeted at ₹12.3 lakh crore, 11% higher than the amount received in 2025–26.
● Gross income tax revenue has been budgeted to grow 11.7% to ₹14.7 lakh crore over the same period.
● Target of FRBM Act 2018 is 40% debt-GDP ratio and 3% fiscal deficit to GDP ratio.
● Maintaining an unduly high debt-GDP ratio leads to a high interest payment to revenue receipts ratio.
● The effective interest rate for central government debt is estimated at 7.12% in 2026-27 (BE). This rate has been
rising progressively for the last three years. Interest payment to revenue receipts ratio is close to 40%, thereby
squeezing the space for the required primary expenditures.
● Centre’s fiscal deficit at end of January stood at 63% of the annual budget target for 2025-26, compared with 74.5%
in the year-ago period. Centre estimates the fiscal deficit during 2025-26 at 4.4% of GDP, or ₹15.58 lakh crore.

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Solar…

● Budget substantially scales up the PM Surya Ghar Muft Bijli Yojana rooftop solar scheme — ₹22,000 crore in 2026-27
from ₹17,000 crore (RE) for the current year.
● Allocations for PM-KUSUM (solar irrigation pumps) have been sustained at ₹5,000 crore. For nuclear energy, the
government has extended zero basic customs duty on imports of nuclear plant equipment until 2035.

NRIs…

● NRIs held less than 1% of shares of NSE listed companies in the last three fiscal years even as Union Budget doubled
investment limit for them to 10% from the existing 5%.
● NRIs owned just 0.62% of NSE-listed shares. None of the Nifty 50, which is the 50 most representative companies of
corporate India, were in the list of 20 companies with the most NRI shareholding.
● Foreign investment limit by NRIs is delineated under the Portfolio Investment Scheme brought in under the FEMA in

The limits were fixed at 5%/NRI and 10% for all NRIs put together. ● Investments above 10% were allowed up to 24% with RBI approval. Under Budget 26-27, limits were increased to 10% and 24% respectively without any need for an approval to promote “ease of business.” ● Indian equity markets have under-performed in dollar terms in comparison with major markets in the past year. FII interest in Indian equities is at a multi-decadal low, with more than ₹1.6 lakh crore stocks sold by funds. Systematic Investment Plans (SIPs) and retail investors have largely kept the markets afloat.

Infrastructure…

● Budget 2026 has proposals to introduce a market-making framework for corporate bonds, develop total-return swaps
and bond-index derivatives, establish an Infrastructure Risk Guarantee Fund, and recycle Central Public Sector
Enterprises (CPSE) real estate assets through dedicated Real Estate Investment Trusts (REIT).
● Government securities outstanding are close to 90% of GDP, comparable to many large economies. At around
15%–16% of GDP, India’s corporate bond market is less than half the size of China’s.
● Indian banks carry roughly 60%–65% of all non-financial corporate debt, compared with about 30% in the U.S. and
40% in Europe. This is not what banks are designed for.

Gender…

● Budget has allocated ₹5.01 lakh crore for women and girls under various schemes in the Union Budget 2026–27,
which saw an increase of 11.55% from the previous fiscal as per the recently released Gender Budget Statement (GBS).

Budget - Formulation…

● Expenditure
○ Capital Expenditure : Used for asset creation (e.g., constructing schools, hospitals).
○ Revenue Expenditure : Includes salaries, subsidies, interest payments , does not create assets.
○ Classified into: General services, Economic services (transport, rural development, agriculture), Social services
(education, health) and Grants-in-aid & contributions.
● Receipts
○ Revenue Receipts : Includes tax and non-tax income , does not increase liabilities.
○ Non-Debt Capital Receipts : Includes loan recovery, disinvestment proceeds.
○ Debt-Creating Capital Receipts : Leads to higher liabilities and future payment commitments.
● Deficit Indicators
○ Fiscal Deficit = Total Expenditure - (Revenue Receipts + Non-Debt Capital Receipts).
○ Primary Deficit = Fiscal Deficit - Interest Payments.
○ Revenue Deficit = Fiscal Deficit - Capital Expenditure.
● Higher Revenue-to-GDP ratio → Lower aggregate demand.
● Higher Fiscal Deficit-to-GDP ratio → Higher government borrowing, potential inflation risks.
● India’s fiscal rule follows the N.K. Singh Committee recommendations , which include: Debt-to-GDP ratio (Stock
target); Fiscal Deficit-to-GDP ratio (Flow target); Revenue Deficit-to-GDP ratio (Composition target)
● Expenditure is adjusted to meet fiscal targets, not tax rates.

Reports and Misc…

RBI’s Remittances Survey…

Why in news: Inward remittances hit a record $118.7 billion in 2023–24 , surpassing FDI inflows and financing over half
of India’s merchandise trade deficit.
● Advanced Economies (AEs) like the U.S. (27.7%), U.K., Canada, Australia, and Singapore now contribute 51.2% of
India’s remittances, overtaking the six GCC countries (37.9%).
● Large-value transfers above ₹5 lakh make up 29% of total remittance value , although they represent just 1.4% of all
transactions , indicating dominance by high-earning Indians.

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● States like Maharashtra, Kerala, and Tamil Nadu receive 51% of remittances , while Bihar, Uttar Pradesh, and Rajasthan
get under 6% , reflecting historical out-migration and unequal access to migration infrastructure.

World Inequality Report…

● Income inequality in India remains among the highest
in the world, with top 10% of earners capturing 58% of
national income , while bottom 50% receive only 15% ,
according to the World Inequality Report 2026.
● India’s wealth inequality Gini was 75.
● Wealth inequality is even greater in India, with the
richest 10% holding around 65% of total wealth and the
top 1% holding about 40% , the report released by the
World Inequality Lab said.
● As per the World Inequality Report 2022 , the top 10%
in India held 57% of the total national income while the
bottom 50% share was 13% in 2021.
● Global top 10% owns 75% of all wealth, while the
bottom 50% holds just 2%. The top one-in-a-million
collectively hold 3% of global wealth, more than the bottom half of the world’s adult population.
● Women earn only 61% of what men earn per working hour ; when unpaid labor is included, this falls to 32%.
● Poorest half of the global population accounts for only 3% of carbon emissions associated with private capital
ownership. The top 10% account for 77% of emissions.
● Elites pay proportionally less than households earning much lower incomes.

● According to the Global Inequality Report , 83% of countries experience high income inequality , covering 90% of the
world’s population. High income inequality corresponds to a Gini coefficient above 0.4.
● A Gini coefficient of 0 indicates perfect equality , while 1 represents perfect inequality.
● A major reason for persistent inequality is the rising share of national income accruing to capital compared to labour
income. Between 1990 and 2024 , the capital share of national income increased in 56% of countries , covering 74% of
the world’s population.
● In India , 97% of the population lives in households with less than $100 annual capital income per person.
● Between 2019 and 2024 , average global CEO pay increased by 50% , while average worker pay rose by less than 1%.
Due to unequal wealth accumulation, private wealth has far outpaced public wealth.

Gini Index…

Why in news: WB report shows inequality in India has decreased significantly between 2011-12 and 2022-23. India is
now the fourth most equal country globally on the Gini Index , after Slovak Republic, Slovenia, and Belarus.
● India’s Gini Index fell from 0.288 (2011-12) to 0.255 (2022-23) , placing it in the “moderately low” inequality
category. Extreme poverty declined from 16.2% to 2.3% over the same period.
● India’s Gini score is lower than China (35.7) and much lower than the U.S. (41.8).
● The Gini Index measures income, wealth, or consumption distribution , ranging from 0 (perfect equality) to 100
(absolute inequality). India’s measurement is based on consumption inequality , not income or wealth.
● Consumption inequality is naturally lower since poorer households spend most of their income, unlike the rich who
save and accumulate wealth. HCES surveys used by the World Bank may miss high incomes and involve
methodological changes , making comparisons less reliable.

Hurun India Wealth Report 2025
● According to the Mercedes-Benz Hurun India Wealth Report 2025 , India is projected to have 871,700 millionaire
families by 2025 , each with a net worth of at least Rs 8.5 crore (US$1 million). This marks a sharp jump.
● Maharashtra has consolidated its position as the country’s richest state.
● Mumbai is at the top among the cities , followed by New Delhi and Bangalore.

Financial Sector Assessment (FSA) Report…

● World Bank , in its latest Financial Sector Assessment report , stated that India achieving its vision of becoming a $30
trillion economy by 2047 would require impetus to financial sector reforms to boost private capital mobilisation.

● Gini index/coefficient , named after the early 20th century Italian statistician Corrado Gini , has historically been
the most commonly used measure of inequality.
● It measures inequality on a scale from 0 to 1 (or 0% to 100%) , with higher values indicating higher inequality.
● The Gini Index measures the extent to which the distribution of income or consumption among individuals or
households within an economy deviates from a perfectly equal distribution. In simpler terms, it provides a clear
picture of how evenly income is distributed within a country.

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Meghalaya Filmmaking…

Why in news: Meghalaya has launched a film policy positioning the State as a preferred destination for film shoots.
● The policy is open to films in all languages. Financial assistance up to ₹1 crore will be provided to production houses
shooting at least 75% of their content in Meghalaya.
● An additional ₹50 lakh incentive will be granted if local artists, musicians, and other talent are engaged.

Homestays in Uttarakhand…

Why in news: Army inaugurated a tent-based homestay facility in the border village of Garbyang, Pithoragarh district,
Uttarakhand. The initiative aims to promote sustainable tourism and enhance rural livelihoods.
● Under Operation Sadbhavana , the Army is focusing on sustainable development in border villages. The project will
promote tourism and boost rural development. It aligns with the Centre’s Vibrant Villages Programme.

Nobel Economics Prize…

Why in news: Joel Mokyr, Philippe Aghion, and Peter Howitt won the 2025 Nobel Prize in Economics for “having
explained innovation-driven economic growth,” the Royal Swedish Academy of Sciences announced.
● The award, formally called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, is worth 11
million Swedish Kronor ($1.2 million). Nobel economics prize is the final prize of the year to be awarded.
● Laureates have shown that sustained growth cannot be taken for granted.
● Joel Mokyr used historical observations to identify the factors necessary for sustained growth based on technological
innovations. Philippe Aghion and Peter Howitt developed a mathematical model of creative destruction, describing an
endless process where new and better products replace the old.
● The original Nobel Prizes were established in the will of Swedish inventor Alfred Nobel and have been awarded since
1901. The Economics Prize was established later , first awarded in 1969 to Norway’s Ragnar Frisch and Jan Tinbergen of
the Netherlands for their work in dynamic economic modelling.
● Nikolaas Tinbergen , Jan’s brother, also became a Nobel laureate , winning the Medicine Prize in 1973.

Indian Institute of Packaging…

● Autonomous body under the Ministry of Commerce and Industry, established in 1966 to upgrade the standards of
packaging in India, opened its Bengaluru Centre. HQ in Mumbai.
● It is a UN-certified agency for testing and certifying packaging for the transport of dangerous goods by air, sea, and
road. IIP is leading the "Green Packaging Initiative" to find alternatives to Single-Use Plastics (SUP).
● The new facility would play a vital role in packaging education, research, testing, and certification.
● IIP Bengaluru would integrate AI-enabled testing, data analytics, and smart packaging demonstrations, building
capacity for innovation, skill development, and industry collaboration in next-generation packaging technologies.

HDI…

Why in news: India moved up 3 spots in HDI , ranking 130 out of 193 countries in 2023 , as per the
Human Development Report 2025 by UNDP. India’s HDI value improved to 0.685 in 2023 from 0.676
in 2022, placing it in the medium human development category.
● GNI per capita rose to $9,046.76 in 2023 from $2,167.22 in 1990, showing substantial growth. 135
million Indians escaped multidimensional poverty between 2015-16 and 2019-21.
● Inequality reduces India’s HDI by 30.7% , among the highest losses in the region. While health and
education inequality have improved, income and gender disparities remain significant. FLFPR and
political representation lag.
● Life expectancy in India rose to 72 in 2023 from 58.6 in 1990 , the highest since the index began,
reflecting post-COVID recovery.

Extreme Poverty Eradication Programme…

● On its 69th Formation Day (November 1, 2025) , Kerala declared the eradication of extreme poverty.
● The achievement follows a four-year, state-led programme under the Extreme Poverty Eradication Programme
(EPEP) launched in 2021 , driven by the LSG & extensive community participation.
● As per NITI Aayog’s National Multidimensional Poverty Index (2023) : Kerala recorded only 0.55% multidimensionally
poor population — lowest in India, compared to the national average of 14.96%. (UNDP MPI 10 indicators are Nutrition,

● Published by the Human Development Report Office for UNDP , exploring themes using the human development
approach since 1990. UNDP publishes several indices: HDI , IHDI , Gender Development Index , Gender Inequality
Index , Gender Social Norms Index , Multidimensional Poverty Index , and Planetary Pressures-adjusted HDI.
● HDI is a composite index measuring average achievement in life expectancy, expected years of schooling, mean
years of schooling, and GNI per capita (PPP$ 2017).
● HDI classification: < 0.550 : Low human development; 0.550–0.699 : Medium human development; 0.700–0.799 :
High human development; ≥ 0.800 : Very high human development.
● China, SL, Bhutan are better ranked than India.

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Child Mortality, Years of Schooling, School Attendance, Cooking Fuel, Sanitation, Drinking Water, Electricity, Housing,
Assets. Niti Aayog uses 12 including bank account and maternal health.)
Implementation
● Around 4 lakh trained enumerators, including Kudumbashree workers and local officials, identified extremely poor
households through field surveys, avoiding self-enrolment errors. (Kudumbashree Mission, a globally recognised
self-help group model, promoted women’s empowerment and community participation).
● A total of 64,006 extremely poor families were identified and verified through Grama Sabhas. Each family received a
customised micro-plan, tailored to its unique needs — a shift from one-size-fits-all welfare models.

World Bank Poverty and Equity Brief 2025
● Published biannually by the World Bank. Poverty Fell from 16.2% (2011–12) to 2.3% (2022–23).
● About 171 million people lifted out of extreme poverty. 46% of India’s poor live in 3 states: UP, Bihar and MP.

GIFT City…

● International Financial Services Centres Authority (IFSCA) is a special unified regulator for all financial services ,
created under the Ministry of Finance , to act as a single regulatory window for financial services companies looking to
do business in Gujarat International Finance Tec-City (GIFT City).
● Companies are given a corporate tax holiday for 10 consecutive years out of 15 years of operation , and there is no
GST on services received by units in GIFT IFSC or provided to GIFT IFSC units.
● When you open a company in GIFT City , it is designated a non-resident so all the business is conducted in
international currencies not the rupee.
● $19 billion off $61 billion of external commercial borrowing done by Indian firms now come from GIFT City.

Start-ups - DSIR…

● The Centre relaxed the norms for deep-tech start-ups to get financial assistance from the DSIR. At the 42nd
foundation day celebrations of the DSIR , Union Minister announced removal of 3-year viability criteria.
● Deep-tech start-ups can get financial assistance of up to ₹1 crore under the Industrial Research and Development
Promotion Programme. The DSIR extends financial assistance up to ₹1 crore under its IRDPP if start-ups prove
sustainability for three years.
● However, start-ups will have to maintain evaluation standards linked to technological maturity.

44,000 Start-ups Added…

● Nearly 44,000 start-ups registered in 2025 , the highest annual addition since Startup India (2016).
● It seeks to foster innovation , promote entrepreneurship , and enable investment-driven growth.
● India has the third-largest start-up ecosystem in the world.
● Government has significantly revised the Startup Recognition Framework.
● General Turnover Limit increased from ₹100 crore to ₹200 crore.
● Deep Tech Category with an age limit of 20 years and turnover threshold of ₹300 crore.
● Covers sectors like semiconductors and quantum computing.
● Cooperatives now eligible for startup recognition to decentralise innovation.
● Implemented by the DPIIT under the Ministry of Commerce & Industry.
● Fund of Funds for Startups (FFS) : ₹10,000 crore corpus managed by SIDBI.
● Startup India Seed Fund Scheme (SISFS) provides grants up to ₹20 lakh and ₹50 lakh.
● Credit Guarantee Scheme (CGSS) offers collateral-free loans.

Deep Tech Start-ups…

● DPIIT has provided definition of what constitutes a “deep tech” start-up in India; one that is primarily concerned with
producing a solution based on new knowledge or advancements in scientific or engg discipline.
● It must spend most of its money on R&D activities ; owns or is in the process of creating novel IP and taking steps to
commercialise the same; faces extended development timelines, long gestation periods, high capital and
infrastructure requirements, and carries large technical or scientific uncertainty.
● A start-up — DPIIT says — is company that is less than 10 years old or has a turnover less than ₹200 crore. A deep
tech company can consider itself start-up for as long as 20 years and has a turnover of up to ₹300 crore.
● To be counted as a deep tech start-up , companies must apply to the DPIIT for a certificate. The DPIIT is the final
authority that determines whether a company qualifies as a startup or a deep tech startup.
● It will decide this based on “guidance” from an Inter-Ministerial Board of Certification , which includes a Joint
Secretary, DPIIT (Convener); a representative from DST; representative from Department of Biotechnology.
● The notification also prohibits a defined start-up from investing in activities that are not directly connected to its core
mandate of working and creating new knowledge.
● ANRF is the custodian of the ₹1 lakh crore RDI Fund that is expected to invest in emerging technology and fund
research over seven years. A part of these investments will go to deep tech start-ups.

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Live Events Development Cell…

● The Information and Broadcasting Ministry has established a Live Events Development Cell (LEDC) to facilitate the
expansion of the “concert economy” , boosting employment and tourism in the country.
● In his address at the WAVES Summit (May 2025) , Prime Minister highlighted the vast untapped potential of India’s
live entertainment sector.
● Constituted in July 2025 , the LEDC serves as a single-window facilitation mechanism for the sector. It brings
together representatives of the Central and State governments, industry associations, music rights societies and
major event companies.

Creator’s Corner…

● Prasar Bharati launched ‘Creator’s Corner’ , a dedicated platform on DD News for content created by digital creators
from across the country. WAVES platform launched last year added one crore youth , generating new employment
opportunities, and contributing nearly ₹5,000 crore to the ecosystem.
● Creator’s Corner was a significant step for a booming ‘orange economy’ , which refers to economic activities that
leverage creativity, culture, and intellectual property to generate wealth and jobs.
● The initiative aims to promote the digital economy by encouraging the creation of quality content and expanding its
reach through a partnership between Prasar Bharati and individual content creators.
● Creator’s Corner will feature content across a wide range of themes , including news, culture, travel, cuisine, art and
literature, music and dance, health, education, science and technology, inspiring stories, environment and sustainable
development, and entertainment.

GATT - WTO…

● At the core of international trade treaties is the robust multilateral trade agreement established by the General
Agreement on Tariffs and Trade (GATT) and WTO.
● Interestingly, while the WTO establishes a trading regime based on non-discrimination , it allows its members to sign
preferential trading agreements on a non-MFN basis.
● Two such arrangements are recognised in Article XXIV of GATT — free trade areas and Customs Unions ( CUs ).
● Since these arrangements are an exception to the MFN principle , they are subject to stringent conditions.

BEPS Base Erosion and Profit Shifting moves profits to low or no-tax countries with little real
business there, reducing taxes in countries like India.

Product Nation Country that transforms from being a consumer, assembler, or service provider into a
creator of Intellectual Property (IP)-driven, high-value goods, competing globally. It
focuses on the entire lifecycle—R&D, design, and branding.

Financial Stability
Report & Public Debt

● RBI FSR 2025 flags rising public debt in India.
● Financial Stability and Development Council (2010): chaired by FM; includes RBI, SEBI,
PFRDA, IRDA → ensures financial stability & regulatory coordination.
● Public debt, or government debt, is the total outstanding financial obligations of a
country's government, encompassing both internal (domestic) and external (foreign).
aTypes: Internal (96.6%) & External (3.4%) [Budget 2025–26].

Financial Inclusion Index RBI Financial Inclusion Index (FI-Index) for March 2025 rose to 67.0, up from 64.2 in
March 2024, reflecting improved access, usage, and quality of financial services across
India. The index, which ranges from 0 (total exclusion) to 100 (full inclusion), shows steady
progress in digital payments, banking, and insurance reach. The index comprises three
main dimensions: Access (35%), Usage (45%), and Quality (20%).

WTO World Trade
Report 2025

Titled "Making trade and AI work together to the benefit of all." Highlights that artificial
intelligence (AI) could boost global trade by 34–37% and global GDP by 12–13% by 2040.

WEF Davos World Economic Forum meeting held in Davos. It is a Swiss international non-profit
foundation and an independent organization for public-private cooperation.

RBI’s consumer
confidence survey

While rural Indians began the year feeling relatively confident, their urban counterparts
remained cautious. While the rural population is driving consumption beyond essentials,
urban consumers remain financially conservative.

Export Preparedness
Index (EPI)

NITI Aayog EPI 2024 evaluates Indian States and UTs on their export readiness across four
pillars: Policy (20%), Business Ecosystem (40%), Export Infrastructure (20%), and Export

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Performance (20%). It focuses on enhancing competitiveness to achieve > $1 trillion in
merchandise exports, with Maharashtra, Tamil Nadu, Karnataka, and Gujarat frequently
leading in recent editions.

AGRICULTURE…

Food & Crops…

Genome Edited Rice…

Why in news: India becomes 1st country to develop rice varieties using genome editing technology.
● Developed by ICAR-led researchers.
● DRR Dhan 100 (Kamala) : Derived from Samba Mahsuri, known for superior yield, drought tolerance, high nitrogen use
efficiency, and 20 days earliness.
● Pusa DST Rice 1 : Derived from MTU 1010, showed 9.66% higher yield under inland salinity, 14.66% under alkalinity, and
30.4% advantage under coastal salinity stress.
● Developed using Site-Directed Nuclease 1 and 2 (SDN-1 and SDN-2) genome editing techniques.
● Kamala and Pusa DST Rice 1 are not GM crops, as SDN-3, which involves foreign genes, was not used.
● SDN-1 repairs DNA without external input, and SDN-2 uses a guide sequence; both result in precision mutation.
● No foreign gene present in the final product; hence, exempt from GM regulations in several countries.
● Both varieties field-tested under the All India Coordinated Research Project on Rice during 2023 and 2024.
● International scientific community has approved both.

● Genetic Engineering is different from GM, which involves inserting genes from unrelated species into host plants.
GM crops may use genes from organisms like Bacillus thuringiensis to produce pest-toxic proteins. GE only edits
the native genes of a plant without incorporating foreign DNA.
● India has exempted GE crops from biosafety regulations under the Environment Act, 1986. These regulations
apply to GM crops , which are treated as “hazardous substances” under the Act. The exemption means GE crops
no longer require clearance for field trials or commercial release under these rules.
● CRISPR-Cas technology uses Cas enzymes as molecular scissors to precisely modify DNA sequences.
(CRISPR-Cas9 technology won the Nobel Prize in Chemistry in 2020.)
● Scientists at IIRR used CRISPR-Cas12 to edit the ‘cytokinin oxidase 2’ (Gn1a) gene in Samba Mahsuri rice. The
Gn1a gene controls the number of grains per panicle by regulating an enzyme’s expression. Editing this gene
reduces its expression, thereby increasing grain number and improving yield.
● The new GE rice line IET-32072 or ‘Kamala’ has an average yield of 5.37 tonnes/hectare with a potential of 9
tonnes/hectare. This is higher than the parent Samba Mahsuri variety, which yields 4.5 tonnes (average) and 6.5
tonnes (potential) per hectare.
● Paddy is India’s principal kharif crop , occupying one-third of the total area under all foodgrain crops. It
contributes approximately 40% to India’s overall foodgrain production.
● Scientists have created the first rice pangenome by combining key genomic parts from 144 wild and cultivated
Asian rice varieties. Like the Human Genome Project, the pangenome reveals full genetic diversity including both
core and unique genes across rice types. It will help in developing rice varieties with traits like disease tolerance
and climate resilience, crucial amid rising temperatures and arsenic uptake concerns.
● Gene Chalk9 controls chalkiness in rice grains. Discovery enables breeders to reduce chalkiness and improve
grain quality. Chalky rice grains appear opaque instead of translucent after milling. Increases breakage during
milling, lowering quality. Influenced by multiple genes and environmental factors like high temperature.

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GM Maize Trials…

● Field trials of two GM maize varieties are set to begin this kharif season at Punjab Agricultural University. The trials
were approved by the GEAC after getting consent from the Punjab government.
● The GEAC recommended Bayer Crop Science Ltd.’s proposal for confined field trials of herbicide-tolerant and
insect-resistant transgenic maize. The trials aim to study weed-control efficacy using glyphosate-K salt and the
efficacy of insect-protected maize against lepidopteran pests.
● Trials are for research purposes only , and any commercial decision lies with the Central government.
● Scientific literature documents glyphosate's harmful effects on human health and the environment.

Clustering Maize…

● Novel form of plant communication in maize (Zea mays) involving compound linalool , which could help strengthen
crop resilience against pests and diseases. Linalool , a volatile compound with a floral scent, acts as a warning signal
between plants. When maize plants are attacked by insects , they release linalool , which alerts neighbouring plants.
● In densely planted fields, inner plants suffered less damage, showing that crowding boosts protection. However, this
stronger defence caused slower growth & lower biomass, revealing a trade-off between protection & productivity.
● Maize (Zea mays) was domesticated from teosinte , a wild grass in Mesoamerica over 9,000 years ago. It is now the
world’s most widely grown grain , serving as food, animal feed, biofuel , and a raw material for various industries.
However, its reliance on large-scale monocultures makes it vulnerable to pests, diseases , and climate change.
● Experts project that under the high-emissions scenario (SSP585) , maize productivity could fall by up to 24%.
● Exposure to linalool activates jasmonate signalling in maize roots — a stress-response hormone linked to pest and
wound resistance. This induces production of HDMBOA-Glc , a defensive metabolite released into the soil.
HDMBOA-Glc enriches beneficial bacteria , which trigger salicylic acid signalling in neighbouring plants.

GM Mustard…

Why in news: Two key decisions — FSSAI’s 2021 ban on blended mustard oil and the Supreme Court’s 2024 ruling
against GM mustard (DMH-11) — were aimed at protecting consumer health.
● Indian mustard oil contains 40–54% erucic acid , significantly above the internationally accepted level of <5%.
○ Erucic acid is a monounsaturated omega-9 fatty acid found in high amounts in Indian mustard and rapeseed oil.
○ It has potential cardiotoxic effects, leading to international regulations limiting safe consumption to less than 5%.
● Canola oil , developed in Canada, contains <2% erucic acid and is widely used as a healthier substitute.
● Blending mustard oil with other edible oils can lower erucic acid content, improve fatty acid profiles, reduce LDL and
raise HDL cholesterol.

About Site-Directed Nuclease (SDN) 1, 2 and 3:
● SDN1 produces a double-stranded break in the plant genome and modifies an existing trait without inserting
foreign DNA or editing the site directly.
● SDN2 makes double-stranded break & during the cell’s repair process, edits a small sequence at the target site.
● SDN3 involves site-specific insertion of a large foreign DNA fragment to introduce a new trait into the genome.
Rice Yield & Microbes
● Microbes in rice paddies determine whether arsenic , a carcinogen and plant toxin, builds up in rice grains and
triggers drastic crop losses.
● The study identified a balance between arsenic-methylating bacteria (convert inorganic arsenic into toxic organic
forms) and demethylating archaea (undo this process). Where methylating bacteria dominate , rice absorbs DMA
and its more toxic derivative DMMTA , which pose health risks and induce straighthead disease.
● The condition can cause up to 70% yield losses , even when total arsenic levels are low.
● Newly cultivated paddy regions in U.S., southern Europe, and China have high methylating-to-demethylating
ratios, making them high-risk zones. India mostly has old paddies with balanced microbes.
● Silicon fertilisation reduces arsenic uptake; crop rotation can avoid destabilising microbial communities.
Transposon
● ICAR ’s CRRI Institute demonstrated that RNA-guided transposon associated protein can perform genome editing in
rice plants. Transposons, or "jumping genes," are DNA sequences that move between locations in a genome, causing
mutations, genetic diversity, and changes in DNA quantity. Discovered by Barbara McClintock in the 1940s, these
elements constitute a large portion of many eukaryotic genomes (e.g., 50% of human DNA). They move via
"cut-and-paste" or "copy-and-paste" mechanisms.

● HT-Bt cotton , engineered to survive glyphosate spraying , never received official clearance in India as trials by
Mahyco-Monsanto were suspended over a decade ago and no approval followed.
● Despite the lack of approval, HT-Bt seeds leaked into farms across Gujarat, Maharashtra, Telangana, Andhra
Pradesh, and Punjab , with illegal cultivation covering 15–25% of cotton acreage.
● Since 2015 , government intervention in private seed contracts has been a major challenge, with the Cotton Seed
Price Control Order (SPCO) slashing Bt cotton seed royalties , discouraging research and development.
● Cotton exports declined after 2011-12 , and by 2024-25 , India became a net importer of raw cotton.

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● The indigenous GM mustard DMH-11 has 30–35% erucic acid , lower than traditional varieties. Cultivating DMH-11
would reduce the need for oil blending and cut down India’s edible oil import bill.

Neera Production…

Why in news: Bihar launched the Mukhymantri Neera Samvardhan Yojana to promote neera (palm nectar) production.
● Under the Act (Bihar Prohibition and Excise Act, 2016), toddy is banned.
● Neera is promoted as a health drink rich in minerals (calcium, iron, potassium, sodium, phosphorus), antioxidants , and
is a natural probiotic aiding immune system and haemoglobin levels.

Turmeric…

● Union Home Minister inaugurated the HQ of National Turmeric Board (NTB) in Nizamabad, Telangana.
● The government has set a target of achieving one billion dollars in turmeric exports by 2030.
● India is the largest producer, consumer, and exporter of turmeric in the world.
● Most turmeric production comes from Telangana, Maharashtra, and Meghalaya.
● India holds more than 62% share of world turmeric trade.

Beej Utsav…

Why in news: A four-day ‘Beej Utsav’ (seed festival) was held in the tribal belt at the tri-junction of Rajasthan, MP, and
Gujarat. The festival highlighted the role of indigenous seeds in agricultural sustainability.
● Activities: ‘Beej Samvad’ (seed dialogue), biodiversity fairs, ‘seed ball’ making, and plantation drives. Community
honours like ‘Beej Mitra’ (seed friend) and ‘Beej Mata’ (seed mother) were awarded to seed-preserving farmers.
● Nearly 70% of small farmers rely on market-driven hybrid seeds , urging a return to seed sovereignty.
● India’s total foodgrain production reached 353.96 million tonnes , marking an increase of 6.5% over previous year.

Eggs…

● FSSAI clarified reports alleging carcinogenic substances like nitrofuran metabolites (AOZ) in eggs.
● The use of nitrofurans is strictly prohibited at all stages of poultry and egg production under the Food Safety and
Standards (Contaminants, Toxins and Residues) Regulations, 2011.
● An Extraneous Maximum Residue Limit (EMRL) of 1.0 microgram per kilogram is prescribed for nitrofuran metabolites
for regulatory enforcement only. EMRL represents the minimum detectable level by advanced laboratory methods and
does not permit use of the substance.

Bamboo…

● Bamboo is an ancient plant well known to people in Asia and Latin America.
● Best grown in tropical and humid conditions , with good sunlight exposure and soil rich in organic matter.
● Bamboo States: Assam, Tripura, Mizoram, Odisha, Andhra Pradesh, Karnataka, Kerala and Tamil Nadu.
● Bamboo’s Use: In place of plastics for disposable cutlery. In Numaligarh in Assam, PM inaugurated a bio-refinery
slated to produce 50,000 MT of ethanol from bamboo. Bamboo products include clothing, baskets, mats, chairs,
tables, shelves, roofing and flooring, musical instruments (flutes and drums) and incense sticks.
● GoI launched National Bamboo Mission 2025 to expand cultivation, strengthen industry linkages, and reduce import
dependence, to increase bamboo plantations on non-forest lands such as farms, homesteads, community lands, and
irrigation canal borders, thus enhancing farmers’ incomes and ensuring a steady raw material supply for industries.
● There is export of bamboo and its materials such as glass mirrors, cotton textiles and bamboo jewellery to US,
Denmark, and Nigeria. India ranks among its top three exporters (the others are China and Vietnam).
● Scientists were rethinking bamboo as superfood as it could provide essential amino acids, vitamins A, B6, and E, and
regulate blood sugar and lipid levels. These are good against diabetes and heart disease & are high in antioxidants
and offer probiotic benefits.
Assam’s tea gardens make room for bamboo to fuel bioethanol plant
● In 2022 , the government tweaked the Assam Fixation of Ceiling on Land Holding Act, 1956 to allow tea gardens to
use up to 5% of their land for non-tea purposes.
● A few tea gardens within a 300-km radius of the world’s first commercial-scale 2G bioethanol plant using bamboo as
feedstock are using the permitted portion of their area for bamboo cultivation.
● Ethanol production is costlier in a 2G or second-generation plant than a 1G plant, but ensures food security , is more
sustainable , and leaves a lower carbon footprint.
● While 1G ethanol is produced from food crops using simple fermentation, 2G ethanol is derived from non-food farm
waste or residue.

Policies & Misc…

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Climate Resilient Agriculture…

● It uses a range of biotechnology and complementary technologies to guide farming practices and reduce
dependence on chemical inputs, while maintaining or improving productivity.
● These tools include biofertilizers and biopesticides , and soil-microbiome analyses.
● Genome-edited crops can be developed to withstand drought, heat, salinity, or pest pressures. AI-driven analytics
can integrate multiple environmental and agronomic variables to generate locally tailored strategies.
● Around 51% of India’s net sown area is rainfed , and this land produces nearly 40% of the country’s food.
● In 2011, the ICAR launched a flagship network project ‘National Innovations in Climate Resilient Agriculture’.
● The National Mission for Sustainable Agriculture has been formulated to enhance agricultural productivity, especially
in rainfed areas, focusing on integrated farming, water use efficiency, soil health management, and synergising
resource conservation.

CROPIC…

Why in news: Ministry of Agriculture and Farmers Welfare plans to launch CROPIC , a study to gather crop information
using field photographs and AI-based models.
● CROPIC stands for Collection of Real Time Observations & Photo of Crops. Crops will be photographed 4–5 times
during their cycle to assess health and potential mid-season losses. Will use an AI-based cloud platform for photo
analysis and information extraction & a web-based dashboard for visualisation.
● The study is conducted for the Pradhan Mantri Fasal Bima Yojana (PMFBY) to create a directory of crop signatures
and enable automation of loss assessment and compensation to eligible farmers. CROPIC mobile app has been
developed for field photograph collection , and photos will be crowd-sourced directly from farmers.
● The photographs will be analysed for crop type, crop stage, crop damage, and its extent. It will use an AI-based cloud
platform for photo analysis and information extraction , and.
● CROPIC will be rolled out initially in 50 districts per season , covering different agro-climatic zones and three major
notified crops in each district for each season.
● The Fund for Innovation and Technology (FIAT) under PMFBY is used for funding CROPIC. FIAT has a total outlay of
around ₹825 crore for different technology innovations under crop insurance schemes.

Dairy’s Circular Economy…

● Implementation of circular economy model across country will increase dairy farmers’ income by 20% over the next 5
years. Banas Dairy’s model : Selling biogas and fertilizer produced from cattle dung procured from farmers.
● The circular economy model also includes leather production from hides harvested from the cattle that die naturally.

Wheat - Desertification…

● An innovative experiment to grow wheat for the first time in arid land using desert ‘soilification’ technology powered
by an indigenous bioformulation has been carried out by researchers at the Central University of Rajasthan (CUoR).
● The initiative aims to halt the expansion of the Thar Desert towards NCR , addressing the accelerating desertification
caused by the degradation of the Aravali ranges.

BHARATI…

● APEDA launched a new initiative called BHARATI , Bharat’s Hub for Agritech, Resilience, Advancement and
Incubation for Export Enablement. It is designed to empower 100 agri-food and agri-tech startups.

Mayonnaise
Why in news: Tamil Nadu became the third State after Kerala and Telangana to ban mayonnaise made from raw eggs.
Raw egg mayonnaise poses high food poisoning risks due to contamination by Salmonella typhimurium, Salmonella
enteritidis, E. coli, and Listeria monocytogenes.
● The ban applies only to raw egg-based mayonnaise , not to pasteurised egg or vegetarian mayonnaise.
● Improper preparation and storage of raw egg mayo, especially at room temperature, raises contamination risks.

Namo Drone Didi:
● Central sector scheme to empower 15000 women-led SHGs by providing drone technology for agricultural
services. Goal of creating at least two crore Lakhpati Didis (rural women earning in lakhs) through SHGs.
● Under the scheme, each woman receives a drone worth ₹10 lakh for just ₹2 lakh , with 80% subsidy on drone cost.
● Drone Pilot training is included as part of the Drone Package.
More:
● FIAT was approved by the Union Cabinet in 2025 to fund technological initiatives under schemes like Yield
Estimation System using Technology (YES-TECH) and Weather Information and Network Data Systems (WINDS).
● Digital Agriculture Mission , approved in 2024 aims to create DPI , with key components being AgriStack, Krishi
Decision Support System, and Soil Profile Maps.
● SATHI (Seed Authentication, Traceability, and Holistic Inventory) is a national portal by the Ministry of Agriculture
and NIC to monitor seed production and distribution, ensuring traceability from origin to farmers.

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● Salmonella can contaminate eggs internally before shell formation, making raw egg-based products risky.

Ethanol - Food vs Fuel…

Why in news: India has achieved its 20% ethanol blending target in FY25 , ahead of schedule , and now aims to increase
the ethanol-petrol blending ratio to 30%.
● Sugarcane production has declined since 2022, prompting the Centre to increase FRP to protect farmers. As a result,
retail sugar prices have risen, affecting consumer affordability.
● Factors behind the decline include red-rot disease, deficient rainfall, and flowering issues.
● Ethanol Blending Programme began in the early 2000s to reduce fossil fuel dependence and oil imports. Ethanol
supply grew from 40 crore litres in FY14 to 670 crore litres in FY24 , after bans on using sugarcane juice, syrup, and
B-heavy molasses were lifted.
● Native to India: Saccharum barberi is native to North India; however, the modern high-yielding variety (Saccharum
officinarum) originated in South East Asia/New Guinea.
● Top Producing States: UP (Highest production), Maharashtra (Highest recovery rate), Karnataka, Tamil Nadu, Bihar.
● Top Producing Countries: Brazil (World Leader), India (2nd largest), China, Thailand, Pakistan.
● Climate: Tropical to Sub-tropical, 21°C to 27°C temperature, 75cm to 150cm rainfall, deep rich loamy soil.
● Tropical (South) cane has higher sugar content and longer crushing seasons compared to Sub-tropical (North).

Sugar - Ethanol Sourcing…

● The sugar sector has expressed concern over the reduction in ethanol sourcing for the 2025–2026 ethanol supply
year. ISMA urged the Centre to ensure that at least 50% of ethanol is sourced from the sugar sector.
● Sugar mills seek revision of minimum selling price.

Biohappiness…

Why in news: In Arunachal Pradesh, tribal communities like the Nyishi and Apatani consume diverse greens, millets,
legumes, tubers, and wild fruits with known nutritional and medicinal properties.
● Traditional knowledge and culinary practices of tribal communities are disappearing at a similar pace.
● India hosts 8% of global biodiversity on just 2% of global land area , is one of 17 megadiverse countries , and contains
parts of 4 biodiversity hotspots. It is also one of 8 global food-crop diversity centres , with forest services valued at
₹130 trillion annually , sustaining rural livelihoods.

● FRP is the minimum price sugar mills are legally required to pay sugarcane farmers & is decided annually by the
CCEA , headed by PM, based on recommendations of the CACP.
● Unlike MSP, FRP has legal backing , and mills must pay it within 14 days as per the Sugarcane Control Order, 1966.
Failure to pay FRP allows the cane commissioner to take action, including attachment of mill properties.
● FRP is linked to sugar recovery rate ; higher recovery leads to higher FRP. MSP is a floor price at which the
government procures crops if market prices fall below it. It was introduced in 1966–67.
● MSPs are recommended by CACP. Final decisions on MSPs & FRP are made by CCEA.
● While recommending MSPs, CACP considers demand-supply, cost of production, market price trends, inter-crop
parity, terms of trade, 50% margin, and consumer impact.
● MSP covers 7 cereals : paddy, wheat, maize, bajra, jowar, ragi, barley; 5 pulses : chana, arhar/tur, urad, moong,
masur; 7 oilseeds : mustard, groundnut, soybean, sunflower, sesamum, safflower, nigerseed; 4 commercial crops :
cotton, sugarcane, copra, raw jute.
● Government procurement of minor forest produce (MFP) at MSP saw a sharp dip.

● Till 2017-18 , mills produced ethanol only from C-heavy molasses , final dark brown liquid byproduct of cane
processing. From 2018-19 , mills began making ethanol from B-heavy molasses and whole cane juice.
● From 2018-19 , the government fixed separate ex-distillery prices for ethanol made from rice, maize and
damaged foodgrains. This move was mainly intended to help sugar mills.
● The grains used were largely maize and rice , sourced from FCI and the open market.
● Ethanol production involves fermentation of sugar by yeasts. In molasses or cane juice , sugar is present as
sucrose. Grains contain starch , which must be extracted and broken down into simple sugars before
fermentation, distillation and dehydration. Ethanol is produced with 99.9% alcohol concentration.
● It is different from 94% rectified spirit , used in paints, pharmaceuticals, personal care products and other
industries. It is also different from 96% extra neutral alcohol , which is used to make potable liquor.
Sugarcane
● Modern sugarcane plants are hybrids with multiple chromosomes (polyploidy) , arising due to commercial
transport and breeding by humans across regions and countries, including Afghanistan, Sri Lanka, and Indonesia.
● Sugarcane , apart from being a cash crop for sweetness , is also used for bioethanol production.
● India produces large quantities of sugarcane across 13 States. The top five producing States were Uttar Pradesh,
Maharashtra, Karnataka, Tamil Nadu, and Gujarat. The Sugarcane Breeding Institute, Coimbatore , the oldest such
institute, conducted molecular genetic analyses in 2006.
● Brazil > India > China > Thailand > Pakistan.
● Traditional medicine practitioners in China, India, and Pakistan have long used sugarcane in therapies.

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● Global food systems depend heavily on rice, wheat, and maize , providing over 50% of plant-based calories. This
overdependence causes nutritional imbalances, higher vulnerability to climate, and rising NCDs.
● Indigenous crops like millets, buckwheat, amaranth, jackfruit, yams , and tubers , classified as Neglected and
Underutilized Species (NUS) or orphan crops , are being revived.
● Over 50 years ago, M.S. Swaminathan envisioned an Evergreen Revolution based on ecological balance and nutrition
security , not chemical intensification.
● Megadiverse Countries: Australia, Brazil, China, Colombia, DRC, Ecuador, India, Indonesia, Madagascar, Malaysia,
Mexico, PNG, Peru, Philippines, South Africa, US, Venezuela.
● 4 Biodiversity Hotspots of India: Himalayas, Western Ghats, Indo-Burma Region, Sundaland (includes Nicobar).
● 8 Global Food-Crop Diversity Centres (Vavilov Centres identified by Nikolai Vavilov, these are primary centers of
origin for major cultivated plants): China, India, Central Asia, Asia Minor (Near East), Mediterranean, Abyssinia
(Ethiopia), Central America (Mexico-Guatemala), South America (Andean region).

Biostimulants…

● A biostimulant is a substance or microorganism that stimulates plant processes to improve nutrient uptake, growth,
yield, quality and stress tolerance. Biostimulants are separate from fertilisers and are used mainly as a spray to
enhance crop yield, quality and growth.
● Biostimulants are usually sold across the counter in liquid form and sprayed on crops.
● Example: Protein hydrolysate is a mixture of amino acids and peptides formed by breaking down proteins. Protein
hydrolysates can be derived from plants such as soy or maize or from animal sources like feathers, hides or tissue.
● Fertiliser (Inorganic, Organic or Mixed) (Control) Order (FCO), 1985 : Before 2021, biostimulants were sold freely in
India with no specific rules governing their sale, safety and efficacy. In 2021, the Government brought them under the
FCO, requiring companies to register products and prove safety and effectiveness.

Women in Agriculture…

Why in news: UNGA declared 2026 as International Year of the Woman Farmer.
● NFHS data puts female land ownership at 8.3%.
Government Initiatives Supporting Women Farmers
● Mahila Kisan Sashaktikaran Pariyojana : skill enhancement and resource access.
● Sub-Mission on Agricultural Mechanisation : 50–80% subsidy on farm machinery.
● National Food Security Mission : 30% budget allocation for women farmers in several States and UTs.
ENACT Project
● Enhancing Climate Adaptation of Vulnerable Communities through Nature-based Solutions and Gender
Transformative Approaches in Assam led by WFP and Govt. of Assam.
● Weekly agriculture and climate advisories sent via phones to 300+ farmers across 17 villages. Climate Adaptation
Information Centres enable video conferencing, expert consultations, and weather advisories.
● Partnerships with agriculture departments, rural livelihoods missions, meteorology, and universities.
● Promotes flood-resistant rice, livelihood diversification, and market linkages.

Prime Minister Dhan-Dhaanya Krishi Yojana…

● Cabinet approved PMDDKY to boost agricultural productivity and promote sustainable practices. The scheme was
announced in the Union Budget 2025–26. It is expected to benefit 1.7 crore farmers across the country.
● PMDDKY will focus on augmenting post-harvest storage at the panchayat and block levels, improving irrigation, and
facilitating long-term and short-term credit.
● The implementation will be done through convergence of 36 schemes, State-level programmes, and private sector
partnerships. Includes major schemes like PM-KISAN, PM Fasal Bima Yojana, and relevant State schemes.
● 100 districts will be identified based on low productivity, low cropping intensity, less credit disbursement &
geographic representation. Scheme will benefit at least 1 district in each State/UT, with number of districts per State
based on Net Cropped Area and operational holdings. PMDDKY is modelled on the Aspirational District Programme.
● Progress to be tracked using 117 key indicators , monitored monthly. Success depends on inclusion of States, local
self-governments, PACS, agriculture universities, and farmer/trader organizations.

Fisheries Sustainability…

● 10 Indian marine and saline fish and shrimp varieties are set to receive Marine Stewardship Council (MSC)
certification soon. The first batch will be submitted for certification in 2026.
● Experts estimate that the certification could increase the revenue of the fisheries sector by 30%.
● Under the Pradhan Mantri Matsya Sampada Yojana (PMMSY) , the Union Government will subsidize the certification
process, which is conducted by third-party auditors. (National Fisheries Development Board is nodal agency for this
scheme having both CSS and central sector components).
● Sustainability is a key aspect of India's fisheries, and while some fish varieties may not immediately qualify, many are
amenable to certification. Certification will provide access to premium markets and ensure better prices.
● Certification is based on the FAO Code of Conduct for Responsible Fishing and Guidelines for Eco-labelling of fish.

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● Marine Stewardship Council (MSC) certification is a global gold standard for sustainable, wild-capture fisheries. NGO
was founded by WWF and Unilever. Products with the "Blue Fish" label guarantee the seafood was caught using
sustainable methods. Ashtamudi Lake Short-neck Clam (Kerala) was India's first fishery to receive certification.

Terrace cultivation…

● It is also known as step farming , and is practiced, for example, in Senapati district of Manipur. An ancient agricultural
technique of growing crops on hills or mountains by cutting the slope into flat platforms or steps called terraces.
● It prevents soil erosion and surface runoff by reducing the slope gradient and allowing water to be retained and
absorbed , conserving soil moisture and nutrients. It increases cultivable area on hilly or mountainous terrain.
● Types of terraces include bench terraces , contour terraces , and broad-based terraces , each suited for different slope
gradients and crop requirements.
● Terrace farming promotes sustainable agriculture by improving soil fertility , controlling water flow , and supporting
crops like rice, wheat, barley, and vegetables in hilly areas.

CIMMYT…

● Norman Borlaug ushered in India’s Green Revolution through his high-yielding, semi-dwarf wheat varieties such as
Lerma Rojo 64A, Sonora 63, Sonora 64 and Mayo 64.
● International Maize and Wheat Improvement Center (CIMMYT) , headquartered in Mexico , is seeking financial
support from the Indian government and private sector.
● CIMMYT works on wheat and maize , which together cover over a quarter of the world’s cropped area. It is facing fund
crunch due shutting down of USAID. CIMMYT’s research and field trials focus on raising yields and breeding varieties
with heat tolerance, disease resistance and biological nitrification inhibition (BNI) traits.
● Wheat is prone to yield losses from mercury spikes. Studies show every 1°C rise in night temperatures lowers wheat
yields by an average of 6%.

World Food Prize…

Why in news: Brazilian microbiologist Mariangela Hungria has been awarded the 2024 World Food Prize for her work
on biological alternatives to chemical fertilizers. The World Food Prize is awarded by the Iowa-based World Food Prize
Foundation and carries a $500,000 reward.
● She worked with Brazilian farmers to implement these natural nitrogen-enriching methods to maintain high yields
without chemical fertilizers. Her research helped boost yields of wheat, corn, and beans , with especially strong results
in soybeans , making Brazil the world’s largest soybean producer.
● Norman Borlaug , Nobel Peace Prize winner in 1970, founded the World Food Prize , which has honoured 55 individuals
since 1987.
● Ms. Hungria’s method involves soil bacteria interacting with plant roots to naturally produce nitrogen, reducing
greenhouse gas emissions and water pollution. In contrast, U.S. soybean farming requires less intervention due to
residual nitrates from corn , making her method less applicable there.

M.S. Swaminathan…

● Immunisation programme and the Green Revolution led by M.S. Swaminathan were key reasons for the fall in India’s
death rate , said Gopalkrishna Gandhi.
● The Man Who Fed India, biography of Dr. Swaminathan by P. Jayakumar was launched.
● Moved by the Bengal famine (1942-43) , he shifted from medical science to agriculture.
● He chose genetics and plant breeding because a good variety benefits both small and large farmers.
● In 1954 , he joined the Central Rice Research Institute, Cuttack , working on gene transfer from Japonica to Indica rice
varieties for higher yield.
● He stressed the need for semi-dwarf varieties responsive to fertilisers , unlike traditional tall varieties that lodged
under heavy grain load.
● His experiments with mutagenesis failed, leading
him to collaborate with Orville Vogel and Norman E.
Borlaug.
● With Borlaug’s help, Mexican dwarf wheat
varieties (‘Lerma Rojo’, ‘Sonora-64’) were bred with
Japanese varieties in India. By 1963-68 , this
resulted in the “Wheat Revolution”. 1968 wheat

● The early Green Revolution blockbuster varieties in India were developed through selections from CIMMYT
materials, including Kalyan Sona (1967), Sonalika (1968) and PBW 343 (1995).
● In 2011, CIMMYT established the Borlaug Institute for South Asia (BISA) as a joint venture with ICAR. BISA has
three research stations at Ludhiana (Punjab), Jabalpur (Madhya Pradesh) and Samastipur (Bihar).
● CIMMYT has opened a “doubled haploid” facility for maize at Kunigal (Karnataka) with the University of
Agricultural Sciences, Bangalore. This first-of-its-kind facility in Asia produces genetically pure inbred lines of
maize for further crossing and breeding of hybrids by public institutions and private seed companies.

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harvest success enabled phasing out of PL 480 imports. Later, overuse of water and fertilizers caused environmental
concerns.
● Swaminathan also worked on mangrove restoration and coastal land preservation in Odisha (1994–2006).
● In 1999 , he introduced trusteeship management of biosphere reserves.
● He implemented the Gulf of Mannar Biosphere Reserve Trust with support from the Global Environment Facility. After
the 2004 Indian Ocean tsunami , he advised mangrove plantation along shorelines to reduce disaster impact.
● As head of National Commission on Farmers , he recommended MSP = cost of production + 50% margin. (
Committee on Doubling Farmers' Income, chaired by Ashok Dalwai, was constituted by the GoI in 2016, to develop a
comprehensive strategy for raising farmers' income by FY 2022-23).
● India lags behind: China has 8 agri-research institutes in world top 10 , India none in top 200.
● Funding : India spends 0.43% of agri-GDP on R&D, half of China’s level.

Farmer Suicides…

● NCRB reported that 10,786 farmers and agricultural workers committed suicide in 2023.
● The highest number of cases were from Maharashtra (38.5%) , followed by Karnataka (22.5%).
● Farm suicides accounted for 6.3% in the country in 2023.
● Andhra Pradesh (8.6%) , Madhya Pradesh (7.2%) , and Tamil Nadu (5.9%) recorded high numbers.
● West Bengal, Bihar, Odisha, Jharkhand, Himachal Pradesh, Arunachal Pradesh, Goa, Manipur, Mizoram, Nagaland,
Tripura, Chandigarh, Delhi, and Lakshadweep reported no farm suicides.

Pulses Self-Reliance Mission…

● PM launched Pulses Self-Reliance Mission , worth over ₹11,000 crore , seeks to expand pulse cultivation by 35 lakh
hectares , directly benefitting around 2 crore pulse farmers.
● India produced 252.4 lakh tonnes of pulses in 2024-25 , yet procurement of notified pulses at MSP fell substantially in
the last two years. The country imported ₹1.2 lakh crore worth of edible oil and ₹30,000 crore worth of pulses in
2023-24. About 55% of edible oil demand is met through imports.
● The Prime Minister urged farmers to go beyond wheat and rice , emphasising the importance of protein-rich crops like
pulses for addressing India’s nutritional needs , especially for children and vegetarians.
● India manages demand for pulses using a mix of import , price stabilisation, conditional MSP procurement.
● Pulse output has hovered around 2.5 crore tonnes while demand is estimated to be three crore tonnes.
● Pulses account for a quarter of non-cereal protein intake and support five crore farmers and their families.
● It aims to eliminate India's import dependency on pulses by 2027. Target: Increase production to 325 Lakh Tonnes by
2027 (India is currently the world’s largest producer, consumer, and importer of pulses).
● Focus Crops: Tur (Arhar), Urud, and Masur (Lentils), as India is mostly self-sufficient in Chana (Gram) and Moong.
● Strategy: Expanding area under cultivation (especially in rice fallows and inter-cropping) and increasing productivity
through HYV. Procurement: The government (via NAFED and NCCF) offers assured procurement at MSP for farmers
who register on the E-Samridhi Portal for Tur and Masur.
● Seed Hubs: Setting up over 150 Pulse Seed Hubs through ICAR to provide quality climate-resilient seeds.

Tractor Exports…

● India is emerging as a leading global tractor supplier , with exports worth $1.15 billion reaching 162 countries in
2024–25. However, growing export volumes have led to increasing environmental externalities.
● An analysis by the International Council on Clean Transportation (ICCT) found that emissions from tractors and other
non-road equipment in India are projected to surpass those from road vehicles by 2030.
● India’s adoption of Bharat Stage (TREM) IV standards for agricultural tractors in 2023 cut particulate emission limits
by up to 94%, nearly matching U.S. and EU norms. By April 2026 , the Bharat Stage (TREM) V standards will align
most Indian tractors with U.S. Tier 4f and EU Stage V requirements.
● Tractor exports to Belgium surged following the implementation of TREM IV norms. Also expanding in markets
without emission norms , such as Bangladesh, South Africa, and Thailand.
● An expert committee appointed by the Centre recommended ‘Tractor Emission Norms (TREM) Stage V’ from
October 1, 2026. Farmers’ outfits urged the government not to treat tractors as commercial vehicles. They said
stricter emission norms should apply only to tractors above 70 horsepower (HP) , which are often used for
non-agricultural purposes.

Paddy Procurement…

● The State government has requested the Centre to relax the permissible moisture content for paddy procurement
from 17% to 22% due to recent rainfall. Lower moisture prevents the grain from heating up and rotting in silos.
● Milling Yield: Ideally, for the best Out Turn Ratio (OTR)—which is 67% for raw rice—the moisture should be controlled
to prevent the grains from breaking during de-husking.
● Under the Decentralised Procurement Scheme (DCP) of the Union Ministry, State governments procure paddy and
wheat on behalf of the Centre. States are also responsible for storing and distributing the grain in accordance with the

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Centre’s food policies. The Union government bears the full cost of procurement and is responsible for monitoring the
quality of foodgrains procured. Farmers are paid MSP fixed by the Central government.
● Since procurement follows Central norms , State governments must comply with specified quality and moisture
standards. Centre can relax quality norms if a State requests it due to uncontrollable factors such as rainfall. In the
past, such relaxations have been granted to Andhra Pradesh and Punjab.
Madhya Pradesh
● MP government has sought Centre’s permission to withdraw from DCP scheme due to growing financial strain from
wheat and paddy purchases. CM has requested that the State be allowed to return to the Centralised Procurement
Scheme through the FCI.

PLISFPI…

● PM inaugurated 11 food processing projects worth ₹808 crore under PM Kisan Sampada Yojana and PLISFPI.
● Production Linked Incentive Scheme for Food Processing Industry is a Central Sector Scheme aimed at creating
"Global Food Manufacturing Champions" under Ministry of Food Processing Industries (MoFPI) from 2021-22 to
2026-27. Managed through a Project Management Agency (PMA), which is currently IFCI Limited.
● Viksit Krishi Sankalp Abhiyan , a nationwide campaign celebrating India’s progress in agriculture.

Draft Pesticides Management Bill…

● To replace 57-year-old Insecticides Act, 1968 & Insecticides Rules, 1971 , with enhanced penalties.
● The Bill incorporates digital methods and technology to streamline processes while imposing stricter controls on
spurious pesticides through higher penalties.
● Key features include mandatory accreditation of testing labs to ensure quality pesticides reach farmers, and
provisions for compounding of offences with enhanced penalties to be defined by State-level authorities.
● Will regulate manufacture, import, packaging, labelling, storage, advertisement, sale, transport, distribution, use and
disposal of pesticides to “ensure availability of safe and effective pesticides”.
● The Bill strives to minimise risk to human beings, animals, living organisms other than pests, and the environment,
and promote pesticides that are “biological and based on traditional knowledge”.
● It defines “pesticide” as substance or mixture of substances, including formulation, of chemical or biological origin
intended to prevent, destroy, attract, repel, mitigate or control pest in agriculture, industry, pest control operations,
public health, storage or for ordinary use. Definition includes any substance intended for use as a plant growth
regulator, defoliant, desiccant, fruit thinning agent, or sprouting inhibitor & also any substance applied to crops either
before or after harvest to protect them from deterioration during storage & transport.
● The draft provides for constituting the Central Pesticides Board to advise the Central government and State
governments on scientific and technical matters on administering the proposed Act.
● As per the draft Bill, the Union government can appoint a registration committee to make decisions on registration of
pesticides, specify conditions subject to which a certificate of registration is granted.
Toxicity by Pesticides
● India is among 4 countries (China, Brazil, the U.S., and India) that contribute almost 70% to the world’s total applied
toxicity (TAT) in the form of pesticides. In 2022, at the United Nations Biodiversity Conference, countries committed
to reducing pesticide risk by 50% by 2030.
● Terrestrial arthropods were most affected, followed by soil organisms and fish and people as well.
● The Insecticides Act 1968 focuses on agricultural use, with few provisions for “ordinary use” in homes, hotels,
construction sites, and transport systems.
● Pesticides Management Bill 2025 aims to reduce the risk to the environment and push for pesticides that are
“biological and based on traditional knowledge”.

Herbicides…

● Reports of dwarfing disease in rice caused by the white-backed plant hopper have been observed in Punjab and
Haryana during the current kharif season. Crop protection chemicals are commonly known as “pesticides”.
● The white-backed plant hopper feeds on rice plants and spreads Fiji virus disease , causing stunted growth (dwarfing
disease). Insect injects virus while sucking sap from young plants.
● Pesticides also include fungicides for fungal diseases like blast, sheath blight in rice, powdery mildew, rusts in wheat.
They include herbicides to kill or inhibit growth of weeds. Herbicide market is growing at highest rate – over 10%.
● Weeds , unlike insect pests and disease-causing pathogens , don’t directly damage crops but compete for
nutrients, water and sunlight. Yield losses occur because crops are deprived of these essential resources.
● Weeds sometimes harbour pests and pathogens , causing further harm. Weed control has traditionally been done
through manual removal by hand or with lightweight short-handled tools like the khurpi.
● There are also power weeders with 3-10 horsepower engine capacity used between rows of standing crops to
remove weeds.

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Fake Fertilizers…

● Sale of counterfeit or substandard fertilizers is prohibited under Fertilizer (Control) Order, 1985 , under Essential
Commodities Act, 1955. States directed to stop forced tagging of nano-fertilizers or biostimulants with conventional
fertilizers. Permission to sell biostimulants cannot be given if farmers are not benefitting from them.

Fertilizer Prices…

● India is preparing for higher fertilizer prices ahead of the crucial rabi (winter) crop season after China suspended
exports of urea and specialty fertilizers. Suspension covers specialty fertilizers like TMAP (Technical
Monoammonium Phosphate) and Urea-solution products like AdBlue , conventional fertilizers such as DAP and urea.
● With the kharif season set to begin by month-end , the Parliamentary Standing Committee on Fertilizers warned of an
acute shortage of essential fertilizers.
● The report cited geopolitical tensions in West Asia and pressure on international shipping routes.
● The government maintained there is adequate stock of urea, NPK and DAP fertilizers. Domestic production of urea
stood at 306.67 lakh metric tonne (LMT) in 2024-25. Imports of about 85 LMT are projected.
● Domestic production meets only about 10% of rock phosphate requirements. Potash is almost entirely imported.
Sulphur also has limited domestic availability.

Fertilizer Effects…

● Unscientific use of fertilizers and climate change are contributing to degradation of organic carbon. When organic
carbon is low , deficiency of micronutrients in soil is high, and when organic carbon is high , the deficiency is low.
● Organic carbon is highly correlated with elevation — higher elevation means higher organic carbon.
● Organic soil carbon is negatively correlated with temperature — regions like Rajasthan and Telangana with high
temperatures have low organic carbon content.
● Temperature, rainfall and elevation are the three important factors determining organic carbon concentration.
● ‘Agri-ecological base’ map to assess the impact of cropping systems and fertilizer use on organic carbon. The map
can help in policy decisions, particularly for carbon credit and assessing land degradation.
● Haryana, Punjab and parts of western UP have intensified fertilizer application skewed towards urea and phosphorus ,
which has negatively impacted organic carbon in the soil.

Food Systems - Emissions…

● The EAT-Lancet Commission on Healthy, Sustainable, and Just Food Systems report highlights that food systems
drive five of the six breached planetary boundaries. Food production accounts for about 30% of GHGs.
● Foods from animals contribute the major share of agricultural emissions , while grains dominate nitrogen, phosphorus,
and water use.
● India’s cereal-heavy diet needs to evolve to include more vegetables, fruits, nuts, and legumes to meet sustainability
benchmarks by 2050. Supply-side reforms are crucial to address water stress , soil degradation , and dependence on
fossil fuels in cold chains and food processing.

● Biostimulants stimulate physiological processes in plants and help enhance the yield from a harvest.
Plant-derived waste materials and seaweed extracts are sometimes used in biostimulant production.
● The Fertiliser (Inorganic, Organic or Mixed) (Control) Order, 1985 regulates the manufacturing and sale of
biostimulants. Biostimulants are defined as substances or microorganisms that enhance nutrient uptake, growth,
yield, crop quality, and stress tolerance in plants.
● Biostimulants do not include pesticides or plant growth regulators , which are regulated under the Insecticide Act,
1968. As they did not fall under fertiliser or pesticide categories, biostimulants were sold without government
approval for a long time. Fertilisers are governed by the 1985 Fertiliser Control Order and pesticides by the
Insecticides Act, 1968. The Union Ministry of Agriculture and Farmers’ Welfare issues the FCO under the
Essential Commodities Act, 1955 , and updates it as needed.

● India’s urea consumption is set to touch 40mt due to surplus monsoon-induced demand and MRP remaining
unchanged for over a decade due to government making neem coating mandatory for all urea ( 2015).
● Neem coating was expected to enable gradual release of 46% nitrogen, improve nutrient use efficiency, reduce
bags per acre, and curb illegal diversion. Neem coating , 45-kg bags (2018) and Nano Urea launched in 2021 have
not lowered consumption after 2017-18. Urea is India’s most widely used fertiliser.
● There are two concerns over rising urea consumption : The first concern is imports. Even
domestically-manufactured urea uses natural gas as feedstock, which is mostly imported. India’s consumption of
urea is second only to China’s 51 mt, with China’s production largely coal-based.
● The second concern is NUE. Barely 35% of the nitrogen (N) applied through urea is utilised by crops to produce
yields. The remaining 65% N is lost through ammonia release or leaching after conversion into nitrate. Declining
NUE has led farmers to apply more fertiliser for the same yield.
● India cannot sustain the increase in consumption of urea , DAP , muriate of potash and other fertilisers containing
only primary nutrients (N, P, K). Fertilisers must be coated with secondary nutrients ( S, calcium, magnesium ) and
micronutrients ( zinc, boron, manganese, molybdenum, iron, copper and nickel ).

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Draft Seeds Bill…

● After two failed attempts in 2004 and 2019 , the Union government has introduced a new draft Seeds Bill.
● The proposed legislation aims to replace the Seeds Act, 1966 and the Seeds (Control) Order, 1983.
● Seeks to regulate seed quality , ensure farmers’ access to high-quality seeds at affordable rates , protect farmers from
losses, and liberalise seed imports to promote access to global varieties.
● Proposes to decriminalise minor offences , promoting ease of Doing Business and reducing compliance burden.
● Every seed dealer must obtain a registration certificate from the State government before selling, importing,
exporting, or supplying any seed.
● Mandates regulation of seed sales so that seed varieties meet minimum standards of germination, genetic purity,
physical purity, traits, seed health , and other norms as per the Indian Minimum Seed Certification Standards.
● Establishes 27-member Central and 15-member State seed committees. Central committee can recommend
minimum limits of germination, genetic and physical purity, traits, seed health and additional standards. State
committee can advise on registration of seed producers, processing units, dealers, distributors and nurseries.

Crop Loss Norms…

● Agriculture Ministry recognised modalities for covering crop loss due to wild animal attacks and paddy inundation
under the Pradhan Mantri Fasal Bima Yojana. Crop loss due to wild animal attacks will be recognised as the fifth
‘Add-on Cover’ under the ‘Localised Risk’ category.
● States will notify the list of wild animals responsible for crop damage and identify vulnerable districts or insurance
units based on historical data. Farmers will be required to report losses within 72 hours using the Crop Insurance app
by uploading geotagged photographs.
Pradhan Mantri Fasal Bima Yojana
● Capped Premiums: Farmers pay only 1.5% to 2% for food grains and 5% for commercial crops.
● End-to-End Coverage: Protects against sowing failure to post-harvest losses and wild animal attacks.
● Tech-Led Audits: Uses satellite imagery (YES-TECH) and AI for instant, unbiased damage assessment.
● 72-Hour Window: Localized losses must be reported within 72 hours via the mobile app for claim eligibility.
● Guaranteed Payouts: Features a 12% interest penalty for late payments to ensure farmers get paid on time.

Plant Varieties Act…

● A committee headed by eminent agriculture scientist R.S. Paroda , appointed by the Protection of Plant Varieties and
Farmers’ Rights Authority (PPVFRA) , has started stakeholder consultations on the amendments.

PDS…

● Anna Sahayata Holistic AI Solution (ASHA) , an AI-based platform allowing beneficiaries to share feedback through
AI-enabled calls in their preferred language. Through ASHA, beneficiaries can report whether they received full
entitlement , the quality of foodgrains , and any difficulty at Fair Price Shops.
● The system uses multilingual translation , sentiment analysis , automated grievance categorisation , and real-time
dashboards for administrators.
● ASHA reaches 20 lakh beneficiaries monthly , developed with the Wadhwani Foundation and backed by the India AI
mission via Bhashini’s multilingual AI infrastructure.
● CWC’s new enterprise resource planning platform ‘Bhandaran 360’ , integrates 41 modules covering HR, finance,
marketing, warehouse management, contract management, project monitoring and other core functions.
● ‘Smart EXIM Warehouse System’ for container freight stations and general warehouses.
● ANNA DARPAN , microservices-based platform replacing the existing Depot Online System , was also launched.

Natural Farming…

● South India Natural Farming Summit 2025 was conducted by farmers’ associations to propagate the ideals of G.
Nammalvar , the late organic farming scientist. Organized by Tamil Nadu Natural Farming Stakeholders Forum ; linked
to national schemes like BPKP (Bharatiya Prakritik Krishi Paddhati) and PKVY (Paramparagat Krishi Vikas Yojana).

● The Indian seed industry was built on a strong foundation in the 1960s with the establishment of the National Seeds
Corporation , and boosted by enabling policies and regulatory support from the late ’80s.
● The Protection of Plant Varieties & Farmers Rights Act, 2001 , and the release of Bt cotton hybrids in 2002, were
important milestones towards a technology-driven seed sector, boosting industry growth and farm productivity.
● 1966 legislation was enacted during Green Revolution , when private seed industry was minimal. High-yielding
wheat and paddy varieties, developed by ICAR institutes and SAUs, made India self-reliant in cereals by the 1980s.
● Public sector institutions continue to dominate breeding of wheat, paddy (including basmati), sugarcane, pulses,
soyabean, groundnut, mustard, potato, onion, and other crops grown as open-pollinated varieties (OPV). OPVs
allow farmers to save grain as seed for re-planting.
● Current Seeds Act applies only to notified varieties. Seeds of non-notified varieties or hybrids cannot be certified.
● Most private hybrids are neither “notified” nor “certified” , as they are not officially released. These seeds are
“truthful labeled” , where companies state minimum germination , genetic purity , and physical purity parameters.

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● The National Mission on Natural Farming , initiated last year, has had its effect on lakhs of farmers.

Food Colouring…

● Chemical adulteration in food , particularly through the use of non-permitted synthetic dyes. One of the most
persistent among them is auramine O , a bright yellow industrial dye banned under Indian food safety regulations.
● It is a synthetic yellow dye used in textile and leather processing, printing inks, paper manufacturing , and
microbiological staining procedures. It is not approved for use as a food colour in India.
● Research links its ingestion to liver and kidney damage , enlargement of the spleen , mutagenic effects , and potential
carcinogenic outcomes.

International Treaty on Plant Genetic Resources for Food and Agriculture…

● Scientists for Genetic Diversity expressed concern over the “compromise proposal” at the 11th session of the
governing body (GB11) of the International Treaty on Plant Genetic Resources for Food and Agriculture.
● GB11 held in Lima , Peru. The proposal relates to enhancing the functioning of the Multilateral System on Access and
Benefit Sharing (MLS) , including a revised Standard Material Transfer Agreement (SMTA).
● Mandatory payment schedules and rates for genetic resource use were shelved to GB12.

Animal Blood Bank Network…

Why in news: Department of Animal Husbandry has released draft Guidelines for Blood Transfusion & Blood Bank for
Animals in India to formalise and standardise veterinary blood banking and transfusion practices.
● India’s livestock population is 536.76 million (20th Livestock Census, 2019). India has the world’s largest cattle and
buffalo population and the second-largest goat population.
● Animal husbandry and dairying sector contributes about 30% of agricultural GVA and 5.5% of national economy.
● India lacks a national regulatory framework and standardised protocols for veterinary transfusion medicine.
● The draft prohibits monetary incentives for animal blood donation by pet or livestock owners.
● The blood volume in humans and animals ranges between 7% and 9% of body weight. Transfusion is required when
blood volume falls below this level. Like humans, animals have multiple blood groups based on species-specific
antigens on red blood cell membranes. Number of blood groups: Cattle – 11, Dogs – 9, Horses – 8, Cats – 4.

Globally Important Agricultural Heritage Systems…

Why in news: FAO designated 6 new GIAHS across Brazil, China, Mexico, and Spain. Total is 104 sites in 29 countries.
● India hosts 3 GIAHS: the Koraput region in Odisha (Paddy), the Kuttanad farming system in Kerala (below-sea-level
farming landscape), and the Saffron Heritage of Kashmir.
● GIAHS are living heritage systems inhabited by communities that maintain an intricate relationship with their territory.
These evolving and resilient systems are characterized by remarkable agrobiodiversity, traditional knowledge,
invaluable cultures, and landscapes.

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From Last Year’s Compilation
● FM announced that one crore farmers will be initiated into natural farming over the next two years. The initiative will
be supported by certification, branding, scientific institutions, and gram panchayats, with 10,000 bio-input resource
centres to be established. The scheme is part of the National Mission on Natural Farming (NMNF), aimed at
motivating farmers to adopt chemical-free farming.
● Natural farming excludes the use of chemical fertilizers and pesticides , promoting biomass recycling, mulching,
cow dung-urine formulations, and pest management through diversity. Natural farming can enhance farmers'
income, restore soil fertility, improve environmental health, and mitigate greenhouse gas emissions. Study found
improved crop yields, farmers’ incomes with lower biological input costs, increasing food security. There is a need
for rigorous scientific studies on crop yields before large-scale implementation.

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SECURITY…

Illegal Immigrants…

Deportation vs Pushback…

Why in news: West Bengal residents suspected as Bangladeshis were wrongly pushed back.
● Deportation involves legal process , court conviction, and confirmation from the foreign government.
● Pushback is not codified in law , carried out at border security's discretion , often bypassing courts.
● Citizenship and foreigner matters fall under the Union List , but States implement orders from MHA.
● Immigrants (Expulsion from Assam) Act, 1950 grants district commissioners power to declare and evict illegal
migrants from Assam. Enacted during Partition-induced disturbances , with Assam-specific provisions.
● Section 2 empowers the Union government to issue removal orders if the presence of foreigners is seen as
detrimental to public or tribal interests.

Mizoram - Myanmar Refugees…

Why in news: Since the 2021 Myanmar coup , Mizoram has seen a steady refugee inflow.
● In 2024 , about 4,000 refugees crossed into Champhai district. Refugees are afraid to return to villages like
Khawmawi across the Tiau river.
● Free Movement Regime formalised in 1968 , reduced from 40 km to 16 km (2004), and to 10 km (2024).
● After 2021 coup , thousands entered Mizoram; later joined by 2,000 Bawm refugees (2022) from Bangladesh.
● India is not a signatory to the 1951 Refugee Convention and has no national refugee law.

Demography Mission…

Why in news: PM announced a High-Powered Demography Mission to address challenge of illegal immigration.
● There is no officially verified estimate of illegal immigrants, though in 2016 , the government stated around 20 million
illegal Bangladeshi migrants were in India.
● Immigration and Foreigners Act, 2025 empowers authorities to detect, detain, and deport illegal immigrants.
● The National Register of Citizens (NRC) was updated in Assam under Supreme Court supervision.
● For border management, Comprehensive Integrated Border Management System (CIBMS) uses radars, sensors, and
drones for surveillance.

Border Management…

Northeast…

Why in news: Rising Northeast Summit held.
● Organised by: Ministry of Development of North Eastern Region (DoNER) to highlight and unlock trade and
investment potential of the North East Region (NER).
● I naugurated by: PM, with the “EAST” vision — Empower, Act, Strengthen, and Transform — as the guiding framework
for Northeast’s development.
● Focus: On NER’s geostrategic location and connectivity with ASEAN and BBN nations.
● Key sectors promoted: Agriculture, food processing, textiles, handlooms, sports, tourism, healthcare, IT, energy,
infrastructure, and logistics.
● Infrastructure focus: India–Myanmar–Thailand Trilateral Highway and the Kaladan Multimodal Transit Project.
● PM Modi is set to visit Manipur for the first time since ethnic violence erupted in 2023.
● The two locations represent the region’s divide : Churachandpur – Kuki-Zo majority; Imphal – Meitei stronghold
● The PM will inaugurate projects worth ₹8,500 crore across hill and valley districts.
● Senapati , the headquarters of the Naga-majority district , is located about 60 km north of Imphal.
National Highway-2 (NH-2)
● NH-2 connects the Imphal Valley to Dimapur (Nagaland) and further to Assam.
● The highway is essential for supplying the landlocked Imphal Valley , including access to the Imphal airport , which
Kuki-Zo people have not been able to reach since 2023 violence.
● Buffer zones between the valley (Meitei) and hills (Kuki-Zo) became formally operational after President’s Rule.
● Two days after the PM’s visit, the Kuki-Zo Council rescinded the agreement signed with MHA regarding the
reopening of NH-02.
Women’s Market
● The Ima Market in the centre of Imphal , Manipur, is entirely run by women. It is known as Ima Keithel (Mothers’
Market) or Nupi Keithel (Women’s Market). Established in the 16th century , the market hosts 5,000–6,000 women
vendors. Male shopkeepers and vendors are not allowed to run stalls.
India-Myanmar border
● Demarcated by British in 1826 without consulting local population.
● In Manipur’s Moreh region , some villages straddle the border , with homes partly in Myanmar , while in Nagaland’s
Mon district , the border cuts through the chief’s house in Longwa village , dividing it between the two countries.

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Assam Indigenous Communities…

Why in news: Assam government has decided to issue arms licences to “eligible” indigenous communities in remote
and vulnerable areas , especially along Bangladesh border.
● Assam classifies indigenous peoples in government records to include—among others— Assamese Hindus,
Koch-Rajbongshis, Bodos, Rabhas, Mishings, Tiwas, Sonowal Kacharis, Lalungs, Chutias, Morans, Mataks, Deoris ,
and other tribal and Scheduled Caste communities considered native to Assam.
● Licences won’t apply to communities near inter-State borders.
● Under the Arms Act, 1959 and Arms Rules, 2016 , arms licences are meant to be restricted.

Nagas…

Why in news: NSCN (Isak-Muivah faction / NSCN-IM) is a key organisation in the Naga political movement.
The larger Naga World
● This encompasses more than 57,400 sq. km and is divided between India and Myanmar. Naga Self-Administered
Zone is part of Naga world located in Myanmar. Location: Naga Hills area of Sagaing Region, Myanmar.
● Larger Naga world also includes Naga-inhabited regions such as those in Manipur and Nagaland.
● The NSCN (I-M) signed the Framework Agreement with the Government of India in 2015. Thuingaleng Muivah is
revered by Manipur’s Nagas as Avakhrrar meaning ‘eldest father’ or ‘godfather’ in the Tangkhul language.

AFSPA…

Why in news: MHA extended the Armed Forces (Special Powers) Act in parts of Manipur, Arunachal Pradesh, and
Nagaland for six months. 1958 law gives power to Army and CAPF to kill, arrest, and search without a warrant and
provides protection from prosecution without Union government sanction.
● AFSPA , enacted in 1958 , empowers armed forces in “disturbed areas” declared by the Governor/Central Government
to maintain public order amid insurgency. Key powers under Section 4 include firing after warning , warrantless
arrests , searches , and destroying insurgent hideouts.
● Section 6 grants legal immunity to personnel from prosecution without Central Government approval.
● AFSPA is in force in parts of Manipur, Nagaland, Arunachal Pradesh , Assam and Jammu and Kashmir.

Reserved Areas…

Why in news: Fifty-two villages along the LAC and the LoC have been declared reserved by administration of Ladakh.
The move enables residents of these identified areas to receive reservation benefits in recruitment and other sectors.
● Declaration follows structured process initiated through one-member Commission under Justice Bansi Lal Bhat.
Residents will receive benefits in recruitment processes, ensuring better participation in government jobs.
● The reservation status will enable residents to benefit from other government welfare schemes and programs.
● The move is intended to support the socio-economic development of the strategically important areas.

Village Guards…

Why in news: Post Operation Sindoor , the BSF has started arms training for Village Defence Guards (VDGs) along the
Jammu border with Pakistan.
● The VDG initiative was revived in 2022 after two decades, amid a resurgence in terrorist activity in Jammu.
● The scheme to arm the civilians was first started in 1995 in 10 districts of the Jammu region, when members of Hindu
community were targeted and killed by terrorists.

Infiltrators…

● Of the 1,643-km India–Myanmar border , only 9.2 km has been fenced so far.
● Following the 2023 ethnic violence in Manipur , the FMR was regulated , with territorial limits reduced from 16 km to
10 km , and 43 designated entry–exit gates , biometrics , and gate passes introduced.
● Border fencing status : 93.25% of the India–Pakistan border (2,289.66 km) and 79.08% of the India–Bangladesh
border (4,096.70 km) are physically fenced. (Bangladesh (4,096.7 km), China (3,488 km), Pakistan (3,323 km),
Nepal (1,751 km), Myanmar (1,643 km), Bhutan (699 km), Afghanistan (106 km)).

Vibrant Village Programme-2…

● The second phase of the Vibrant Village Programme will cover 1,954 strategic villages along the land borders with
Pakistan, Nepal, Bangladesh, Bhutan, and Myanmar in 15 States and two UTs.
● VVP was launched in 2023 by MHA , originally to assist development in villages along the China border. The CSS was
approved in Feb 2023 for comprehensive development of border villages along the northern land border in Arunachal

● A citizen of the United States was arrested by NIA along with 6 Ukrainians for illegally crossing into Myanmar via
Mizoram to train armed ethnic groups in weapons handling and drone warfare methods.

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Pradesh, Himachal Pradesh, Sikkim, Uttarakhand, and Ladakh. It aims to reduce migration and enhance security by
providing infrastructure and livelihood opportunities.
● The VVP-II was cleared by the Union Cabinet in April 2025.

Left Wing Extremism…

LWE Measures…

Why in news: Nambala Keshava Rao alias Basavaraju , General Secretary of the banned CPI (Maoist) , was killed in
Chhattisgarh by a joint operation of CRPF and District Reserve Guard. He figured in the NIA’s most wanted list.
● NSG has been deployed for the first time in LWE-affected Gadchiroli (Maharashtra).
● The deployment is part of the Union government’s goal to eliminate Naxalism by March 2026.
● NSG is elite counter-terror, counter-hijack, and VVIP security force , drawing 100% of its personnel from CAPFs and
Army on deputation.
● Maoists originally found safe havens in Andhra Pradesh, Odisha, and Chhattisgarh.
● The turning point came with
the deployment of the
Commando Battalion for
Resolute Action (CoBRA) —
a specialised unit of the
CRPF trained in jungle
warfare and guerrilla tactics.
● The District Reserve Guard
(DRG) , comprising
surrendered Maoists and
former members of the
disbanded Salwa Judum ,
played a pivotal role in
Operation Black Forest ,
which destroyed a major
Maoist stronghold and the headquarters in the Karregutta hills , marking a significant operational victory for security
forces.
Mission Sankalp
● Launched aiming to eliminate LWE in Bastar and surrounding areas. The operation involves the deployment of
around 24,000 security personnel , including IAF, CRPF, CoBRA, Chhattisgarh/Telangana police, DRG, STF, and
Bastar Fighters. Forces surrounded the Karregutta hills , a 60 km stretch along the Chhattisgarh-Telangana border.
Surrender and Rehabilitation Policies
● Target Naxalites/LWE, militants in J&K, and insurgents in the Northeast.
● For Naxal-affected states , MHA guidelines offer Rs 1.5 lakh immediate grant (fixed deposit) , Rs 2,000 monthly
stipend for 3 years , vocational training , and weapon surrender incentives under the SRE scheme.
● The Northeast scheme (revised 2018) for 6 states (excluding Sikkim/Mizoram) provides Rs 4 lakh immediate grant,
skill development, monthly stipend (Rs 2,500–3,000 for 3 years), and 90% reimbursement to States.
● J&K policies (1995, 2004, 2010) emphasize economic rehabilitation, counseling, and business training for local
terrorists; the Army proposed an enhanced draft in 2020 for better reintegration.
● Odisha’s revised Maoist policy (2025) enhances financial aid/rewards to prevent recidivism, focusing on
employment and entrepreneurship in LWE areas.
NSG
● Delegations from over 17 countries including the U.S., Russia, Japan, Israel, Germany, Indonesia are participating in
the 23rd NSG Counter-Terror International Seminar, Delhi. Theme: “Forging Collaboration and Innovation to
Counter Terror Threats and Address the Complexities of Modern Terrorism.”
● This two-day flagship event aims to foster inter-agency coordination, operational synergy, and strategic integration
in Counter-Terrorism (CT) and Counter-IED operations.
KGH-2
● The operation, code-named ‘KGH-2’, in the Nambi and Korgotalu Hills region forms part of the Union government’s
declared objective of eradicating LWE from the country by March 2026.
● CRPF is the lead force in implementing government schemes in Maoist-affected areas. Recently, the Chhattisgarh
government designated CRPF company locations in interior areas as “Integrated Centres” for implementing the
“Niyad Nellanar Yojna”, a multi-dimensional developmental initiative.
● Target Areas of scheme: The scheme focuses on five key districts: Bijapur, Sukma, Kanker, Dantewada, and
Narayanpur. Goal: To bridge the infrastructure gap in insurgency-hit areas by delivering government services
directly to the residents. Focus Groups: It specifically prioritizes PVTGs.

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Naxalism 11 Districts…

● The number of “most-affected” districts has fallen from six to three , namely Bijapur, Sukma, and Narayanpur — all
located in Chhattisgarh. In 2013 , there were 126 districts affected by LWE.
● Other LWE-affected districts include Dantewada, Gariaband, Kanker, Mohla-Manpur-Ambagarh Chowki
(Chhattisgarh), West Singhbhum (Jharkhand), Balaghat (MP), Gadchiroli (Maharashtra), and Kandhamal (Odisha).
● The “Red Corridor” , once stretching from Pashupati in Nepal to Tirupati in Andhra Pradesh , has been significantly
reduced in geographical spread due to sustained security and development efforts.

Bastar & Naxalism…

● Home minister declared that Kanker, Kondagaon, Bastar, Sukma, Bijapur, Dantewada and Narayanpur would become
the most developed tribal districts by December 2030.
● The statement was made at the concluding ceremony of the Bastar Olympics. The Bastar Olympics is an annual mega
sports event in Jagdalpur , where participants from all seven districts compete in various sports events , with
participation from surrendered Maoists this year.
● The movement began as a peasant uprising under the CPI (Marxist-Leninist) in 1967 at Naxalbari in West Bengal. The
movement was revived in Andhra Pradesh in 1980.
● It later spread across Andhra Pradesh, Odisha, Chhattisgarh, Madhya Pradesh, Bihar, Jharkhand and parts of
Maharashtra to create a ‘Red Corridor’. Maoists established ‘Janatana Sarkar’ parallel governance system.
● The Union government launched Operation Kagar (Black Forest) in 2025. It involved forces including CoBRA (CRPF) ,
DRG (Chhattisgarh) , SOG (Odisha) , Greyhounds (Andhra Pradesh) , and C-60 (Maharashtra).
● The operation made inroads into core strongholds such as Karregutta and Abujhmad.

Abujhmad…

Why in news: Abujhmad means ‘incomprehensible plateau’ in Hindi, but Abujhmadiyas trace it to the Gondi word for
‘sal forest’. It is a dense, unsurveyed forest region across Narayanpur, Bijapur, Dantewada (Chhattisgarh) and
Gadchiroli (Maharashtra) , larger than Goa. It has been declared free of “Naxalism”.
● Home to ~40,000 Abujhmadiya tribals , one of Chhattisgarh’s seven PVTGs. Declared an ‘excluded area’ during
British rule under the Government of India Act, 1935 ; development bypassed it post-independence too.
● Maoists declared Abujhmad a “liberated zone” due to “state absence”.

Cyber Security…

DDoS…

Why in news: FM chaired a meeting to review cybersecurity preparedness of India’s financial institutions.
● Banks must designate 2 senior officials : 1 for cyber incident reporting and 1 for operational continuity including ATM
cash availability. Banks confirmed the deployment of anti-DDoS systems. DDoS attack is attempt to disrupt the
normal functioning of a targeted server, service, or network by overwhelming it with a flood of internet traffic.
● Unlike Denial of Service attack, which involves a single source, DDoS attack leverages multiple compromised systems
to generate the traffic. These compromised systems are collectively known as a botnet.
● Bot detection technologies, such as CAPTCHA can identify and block automated tools or bots.

Cyberbullying…

Why in news: India lacks a dedicated law to address online hate speech and sustained trolling.

● Maoism, Naxalism, and Left-Wing Extremism (LWE) have distinct origins despite often being conflated. Maoism is
based on Mao Zedong’s doctrine of agrarian revolution and guerrilla warfare. Its Indian variant emerged with the
1967 Naxalbari uprising , leading to the broader Naxalite movement.
● Epicentre : Dandakaranya region (Bastar, Gadchiroli, Odisha, Andhra Pradesh).
● ‘Urban Naxal’ refers to supporters of Naxalism , including those providing intellectual and financial support.
● Three key tribal initiatives:
○ Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN)
○ Dharti Aaba Janjatiya Gram Utkarsh Abhiyan (DA-JGUA)
○ Eklavya Model Residential Schools (EMRS)
● PM-JANMAN aims to improve the socio-economic status of PVTG by addressing gaps in health, education, and
livelihoods. DA-JGUA targets saturation coverage of government schemes in health, infrastructure, education, and
livelihood. DA-JGUA was earlier called Pradhan Mantri Janjatiya Unnat Gram Abhiyan (PM-JUGA).
● "Dharti Aaba" , meaning “father of the earth” , is a title used in Jharkhand to honour Birsa Munda , a tribal leader who
fought British rule in the late 19th century.
● The Eklavya Model Residential School (EMRS) is the third major component of tribal welfare in the budget.
● Tribal Sub-Plan introduced in 1974–75 to address resource allocation for STs , requiring budget allocations
proportional to tribal population. TSP approach later evolved into the ST Component (STC) and Development
Action Plan for STs (DAPST). In the last 10 years , the budget under DAPST has increased manifold.

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● BNS : Section 74 (outraging modesty), Section 75 (sexual harassment), Section 351 (criminal intimidation), Section
356 (defamation), Section 196 (promoting enmity).
● IT Act, 2000 : Section 66C (identity theft), Section 66D (impersonation), Section 67 (obscene material).
● These laws do not explicitly criminalise persistent, non-obscene, anonymous online abuse.
● Section 69A of the IT Act allows the government to block content for reasons like public order or national security ,
with non-compliant platforms losing safe harbour under Section 79.
● In 2023 , Delhi HC judge acknowledged doxxing (search for and publish private or identifying information about a
particular individual on the internet, typically with malicious intent) as a serious threat. DPDPA exempts “ publicly
available data ” but fails to define what constitutes it, potentially enabling cyber harassment via data aggregation.
● Non-Consensual Intimate Image Abuse (NCII) : Algorithms generate deepfake pornographic images without one’s
knowledge. Recently, the US enacted Take It Down Act” to tackle harmful deepfakes online.
● Scheme for Innovation and Technology Association with Aadhaar (SITAA) to foster collaboration between startups,
academia, and industry to enhance the security and capabilities of India's digital identity framework.

CoinDCX Breach
Why in news: Indian crypto exchange CoinDCX disclosed that one of its internal operational accounts had been hacked.
The incident revived memories of the 2024 WazirX hack , India’s largest crypto breach.
● CoinDCX, FIU-registered with 1.6 crore users , reported that an operational hot wallet (cryptocurrency wallet that is
continuously connected to the internet, allowing for quick and easy transactions) on a partner exchange was
compromised through a server breach.
● WazirX hack (2024) : N.Korean attackers exploited a multi-signature wallet (that requires multiple keys to unlock
funds or approve transactions), stealing $230M.
● CoinDCX hack (2025) : Only internal liquidity wallet affected; no customer funds compromised.

Quantum Cyber Readiness…

Why in news: MeitY , CERT-In , and SISA launched a whitepaper titled “Transitioning to Quantum Cyber Readiness” to
address the cybersecurity impact of quantum technologies.
● It warned that quantum computers threaten current encryption algorithms , especially RSA-based cryptography as
they can solve complex problems and perform tasks like machine learning and optimization far faster.
● It highlighted threats such as Harvest Now, Decrypt Later (HNDL) attacks , where encrypted data can be stored now
and decrypted later.

APK Scam…

Why in news: India is witnessing a surge in APK fraud , where malicious apps mimic official portals and trick users into
granting permissions and can be exploited to spread malware.

● GENIUS Act , CLARITY Act , Anti-CBDC Act were passed by US after resolving privacy concerns on central bank
digital currency (CBDC). GENIUS Act enables issuance of stablecoins — asset-backed cryptocurrency — likely
indexed to the US dollar or US Treasury bills to reinforce trust.
● Trump sees stablecoins as a way to strengthen the US dollar’s role as the world’s reserve currency amid
de-dollarisation fears after the 2022 Russia-Ukraine war and US asset freezes on Russia.
● Global reactions include countries increasing gold purchases and diversifying away from the US dollar to protect
reserves from potential asset freezes.

● The National Cyber Crime Reporting Portal was launched in 2019 but it was officially dedicated to the nation in
2020 under I4C by the MHA , enabling online reporting of cybercrimes.
● Covers diverse offenses including financial frauds, ransomware, cyberbullying, child pornography, online stalking,
and social media crimes ; allows evidence upload and anonymous filing for sensitive cases.
● Users can track complaint status via a reference ID ; complaints are forwarded to law enforcement for investigation.
Features cyber safety tips , guidelines on 24 crime types (e.g., phishing, vishing).
● Financial Fraud Risk Indicator developed by DIU under DoT (Ministry of Communications). Concept: Risk metric
classifying mobile numbers (not just accounts) into Medium / High / Very High fraud risk. Data Sources: Real-time
inputs from NCCRP, Sanchar Saathi (incl. Chakshu), Banks/NBFCs. Mandatory for SCBs & UPI apps (via APIs) for
real-time fraud detection/blocking.
Cyber Fraud SOPs
● To strengthen cybercrime response and ensure timely relief to victims of online financial fraud , MHA has approved
the SOP for NCRP’s Cyber Financial Crime Reporting and Management System (CFCFRMS).
● The SOP establishes a uniform process for banks, payment aggregators, NBFCs, e-commerce platforms,
stock-trading apps, mutual fund houses, and other financial intermediaries to follow when a cybercrime complaint
is lodged against a suspicious transaction.
● The SOP introduces a simplified system to restore funds that were defrauded. For small-value frauds, where the
amount < Rs 50,000 , refund can be processed without a court order.
● Launched in 2020 , I4C aims to combat Cybercrime in the country and strengthen the overall security apparatus

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2FA…

Why in news: Two-Factor Authentication (2FA) adds a second layer of security, widely implemented using Google
Authenticator and TOTP (Time-based One-Time Password) codes.
● First factor : something you know (password). Second factor : something you have (authenticator app).
● Uses One-Time Passwords (OTPs) valid only for ~30 seconds.
● TOTP uses a cryptographic function (HMAC-SHA-256) to generate short numeric code.
● Both device and server compute the same code → match = authenticated.
● Hash function : one-way function giving fixed-length output; sensitive to small changes.
● HMAC (Hash-based Message Authentication Code) : combines secret key + message with hash
● Other 2FA Methods: HMAC-based OTP (HOTP) : uses counter instead of time. Push-based 2FA apps : send
notifications for approval. Hardware tokens (e.g., YubiKeys) : generate codes on physical device.
Increased Sophistication of Cyber Frauds
● Modern frauds include: Phishing attacks via fake emails/SMS; Remote access scams using malicious apps; Job and
loan scams ; OTP and UPI frauds exploiting user authorisations; Identity theft involving misuse of Aadhaar, PAN, and
bank details ; Digital arrests , where criminals impersonate officials.
● These offences are covered under Section 66D of IT Act, 2000 , which states that cheating by impersonation using a
communication device or computer resource is punishable with imprisonment up to three years and a fine up to one
lakh rupees. Karnataka accounted for more than one-fourth of all cybercrime cases nationwide in 2023.
● Cybercrime cases under Section 66D include deepfake-related offences and digital impersonation scams.
● Karnataka was the first State in India to establish a dedicated city-level cybercrime police station.

Scam Hubs in Southeast Asia…

● About 500 Indian citizens who recently fled KK Park cyber crime hub in Myawaddy , Myanmar, are set to be
repatriated by the Indian government. One of the most notorious “scam cities” on the Myanmar-Thailand border — a
purpose-built compound controlled by a junta-allied Border Guard Force (BGF).
● Most infamous scam: “pig butchering” — investment + romance fraud using fake cryptocurrency platforms.
● Cambodia is a major hub (Sihanoukville, Bavet, O’Smach).

to fight against Cybercrime.
● In 2024 , four I4C platforms : Cyber Fraud Mitigation Centre (CFMC) , the ‘Samanvaya’ platform , a Cyber
Commandos programme and a Suspect Registry were launched.
● It provides a framework for law enforcement agencies to deal with cybercrime in a coordinated manner.
● To combat digital payment frauds the RBI introduced an exclusive internet domain for Indian banks – ‘bank.in’.
This aims to minimise cyber security threats and strengthen trust in the country’s digital banking system.
CyberPeace Summit 2026
● The Global CyberPeace Summit 2026 organised in New Delhi to focus on pressing digital challenges ranging from
cybercrime, AI risks, misinformation, and critical infrastructure protection.
● Global Quantum Threat Alliance (GQTA): A landmark initiative launched in partnership with Synergy Quantum to
address security risks posed by quantum computing to critical infrastructure and global commerce.
● AI Scholarship Programme: To train the workforce in AI governance and security.
RBI - Cyberfraud Compensation
● RBI has proposed to introduce a framework to compensate victims of online frauds up to ₹25,000 for losses
incurred in small-value fraudulent transactions.
● RBI will pay from its Depositor Education and Awareness Fund , which amounts to nearly ₹85,000 crore.

● Supreme Court underlined the importance of international cooperation in
combating cybercrimes and asked the Centre to take a call on ratifying the
United Nations Convention against Cybercrime.
● The world’s first universal legislative framework to combat cybercrime moved
closer to becoming legally binding after 72 of the 193 UN member states signed
the United Nations Convention against Cybercrime in Hanoi, Vietnam. As of
October , India has not signed the treaty.
● It proposes a legislative framework to boost international cooperation among
law enforcement agencies and provide technical assistance to countries lacking
adequate cybercrime infrastructure. The treaty includes provisions on illegal
interception , money laundering , hacking , and online child sexual abuse material.
● A “Digital Arrest” scam involves fraudsters impersonating law enforcement
through video calls and threatening fake arrests to extort money. In most cases,
online fraudsters claim victims have sent or are to receive parcels containing
illegal goods , drugs , fake passports , or other contraband.
● Cybercrime cases surged by 31.2% in 2023 compared to 2022..
● Fraud, extortion and sexual exploitation accounted for the majority of cybercrime cases in India.

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GPS Spoofing…

● Aircraft flying over Delhi have been experiencing “severe” GPS spoofing , causing false navigation data such as
incorrect aircraft positions and misleading terrain warnings.
● GNSS spoofing involves transmitting counterfeit satellite signals , leading to incorrect aircraft position data , higher
pilot workload, and potential safety risks despite onboard redundancies.
● Such interference is rare over inland metropolitan airspace and is seen in border areas or conflict zones.
● While it was common to experience GPS spoofing over India’s border with Pakistan , such incidents over Delhi were
unusual.
● Spoofing is a type of cyberattack that transmits false GPS signals to mislead navigation systems.
● Delhi has emerged among the top 10 global hotspots
for such incidents.
● GPS spoofing doesn’t hamper safety of aircraft , as
systems are built with several redundancies , including
Inertial Reference System , which continues to
operate safely for up to 5 hours even if primary
system fails.

Mule Bank Accounts…

● Mule bank accounts are used by cybercriminals to launder proceeds from investment scams , gaming apps , QR code
frauds , and digital arrests , obscuring money trails through layered transactions.
● RBI launched MuleHunter.AI for detection.

Sachet Portal…

● Provides information and guidance for filing complaints related to financial irregularities. Complaints lodged on
Sachet Portal are redirected to concerned authorities to initiate necessary actions. User can track their complaints.

WiFi Signals for Surveillance…

● Modern Wi-Fi beamforming uses unencrypted Beamforming Feedback Information (BFI) , which devices broadcast to
help routers steer signals efficiently.
● A new study by researchers at Karlsruhe Institute of Technology shows that BFI alone can identify individuals moving
through a room , purely from how their bodies disturb Wi-Fi signals.
● Unlike Channel State Information (CSI) , which needs specialised hardware and firmware, BFI is accessible on
off-the-shelf Wi-Fi equipment , making it a greater real-world privacy risk.
● BFI outperformed CSI in identification accuracy despite CSI having higher time resolution.
● No network access or Wi-Fi password is required ; an attacker only needs a listening device within radio range.
● The study highlights a hidden surveillance risk: Wi-Fi access points can enable covert tracking , unlike visible CCTV,
creating an “inverse panopticon.”
● Once identities are inferred from gait, other Wi-Fi sensing tasks (activity recognition, occupancy tracking) can be
linked to the same individuals over time, compounding harm.

● Karnataka reported the highest number of cybercrime cases among all states.
Convention against Cybercrime
● UN convened a signing ceremony for the new Convention against Cybercrime, the only multilateral criminal jus
instrument to be negotiated in over two decades. India is among the member states that didn’t sign the convent
along with the United States, Japan and Canada.
● The text adopted by the General Assembly in December 2024 received support from 72 countries.
● Conceived through a resolution proposed by Russia in 2017. Russia and China collaborated to reshape the status qu
global cyber governance frameworks, which so far hinged on the 2001 Budapest Convention on Cybercrime , a Europ
effort with 76 parties, not involving either Russia or China.
● Budapest Convention limits accession to only invited states and India stayed out of it.
● Delhi engaged in the negotiations of the UN Convention. But its proposals, such as those aimed at retaining gre
institutional control over its citizens’ data , were not retained.
● The definition of cybercrime in the Convention is not precise. It allows signatories to stretch the scope of crim
offences, potentially to the detriment of human rights.

● NavIC ( Navigation with Indian Constellation) , is independent navigation satellite system developed by ISRO.
● As per I4C , there are several rackets; digital arrest , trading scam , investment scam romance/dating scam.
● Under the provisions of section 70B of the Information Technology (IT) Act, 2000 , the CERT-In is designated as
the national agency for responding to cyber security incidents.
● CERT-In plays a vital role in controlling cybersecurity incidents and coordinating incident response activities. It
acts as central agency for incident response , vulnerability handling , and security management.
● Cyber Swachhta Kendra is an initiative that focuses on detecting and removing malicious botnet programs from
computers and devices. It provides free tools for malware analysis and helps improve the security of systems.

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● Existing mitigation strategies are weak , often focus on CSI rather than BFI, and may require special hardware, leaving
regulatory and design gaps in wireless privacy protection.

VPN…

● The authorities suspended virtual private network services in Poonch and Rajouri districts for two months.
● VPN traffic gets encrypted and creates a point-to-point tunnel , masks IP addresses , and sidesteps website blocks
and firewalls , thus making sensitive data vulnerable to cyberattacks.

● In 2022 , CERT-In published directions requiring VPN providers to maintain logs of Indian users.
● VPN providers , which market services to avoid online tracking , refused to comply with the request.
● Large paid VPN firms such as ExpressVPN and NordVPN shifted their “India” servers to Singapore.
● These firms bought Internet Protocol (IP) blocks associated with India while serving traffic from Singapore.

NATGRID…

● National Intelligence Grid is for the police and investigating agencies to securely access government and private
databases in real time.
● Instead of security agencies seeking data from multiple sources , NATGRID provides the information on a single
platform.

● NATGRID has been linked to the National Population Register (NPR) that has the family-wise details of 119 crore
residents in India.
● An Organised Crime Network Database has been developed on
NATGRID’s IT platform to facilitate secure data-sharing between NIA and
State Anti-Terror Squads (ATS).
● Upgraded NATGRID tools , particularly “Gandiva” , are supporting
multi-source data collection and analysis ex, facial recognition.

Terrorism and Organized Crime…

Multi Agency Centre…

Why in news:
MHA
inaugurated the
revamped Multi Agency Centre , a counter-terrorism grid
under IB , originally conceptualised post-Kargil war in 2001.
● The new MAC network connects all police districts in
India securely and was built at a cost of ₹500 crore.
● 28 organisations , including RAW, armed forces, and State
police , are part of MAC, sharing real-time intelligence
inputs. MHA stated the new MAC will help combat the
terror ecosystem linked with organised crime.
● Functions 24/7 to collate and analyze inputs under heads
like J&K, Northeast, LWE, Rest of India , and coordinates
via Subsidiary MACs (SMACs) in States/districts.
● Upgraded in 2025 at ₹500 crore by Home Minister,
integrating AI/ML, GIS for predictive analytics and hotspot
mapping, covering all police districts including remote areas.
● Enhances counter-terrorism and organized crime response through a secure network and connects NATGRID,
CCTNS for seamless data fusion and last-mile connectivity.
● Conference on “Extradition of Fugitives: Challenges and Strategies” , organised by the CBI.

Fugitives…

● As many as 71 fugitives wanted by India were located in a foreign country in 2024-25, the highest in the last 12 years,
according to the 2024-25 annual report of DoPT.
● CBI’s Global Operations Centre geo-locates wanted criminals and fugitives in cooperation with foreign law
enforcement agencies, via Interpol channels and through the issue of Interpol notices.
● India has signed extradition treaties with 48 countries and has extradition arrangements with 12 countries.

● CERT-In issued an advisory about an active threat campaign targeting WhatsApp users.
● The attack uses a new technique called GhostPairing to hijack WhatsApp accounts. GhostPairing allows
cybercriminals to take complete control of WhatsApp accounts without needing passwords or SIM swaps.
● The attack exploits WhatsApp’s "Linked Devices" feature, tricking victims into authorizing an attacker's browser
as a "ghost" device, granting them full, real-time access to chats, media, and contacts.

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● India is party to multilateral conventions such as the UN Convention against Corruption , which can serve as a legal
framework to bring back fugitive criminals from other countries which are parties to these conventions.
● CBI processed more than 22,200 applications for renunciation of Indian citizenship on the MHA portal.

Delhi Terror Attack - Ricin…

● Arrests were over plot involving chemical weapons and connections with global terror network. The accused were
developing ricin , an extremely lethal toxin derived from castor beans , for use in planned terror strikes.
● Two infiltrators were killed in a gunfight while trying to cross into the valley in the Keran sector of north Kashmir’s
Kupwara under Operation Pimple.

Delhi Terror Attack - FTIR…

● Fourier Transform Infrared Spectroscopy (FTIR) and Attenuated Total Reflectance-FTIR (ATR-FTIR) are used to
analyse how samples interact with infrared light.
● Forensic experts study the spectrum of absorbed light to determine chemical interactions.
● The chemical composition of explosives is detected using Raman spectroscopy.
● Scanning Electron Microscopy (SEM) is used to analyse the morphology of explosion fragments.
● Energy Dispersive X-ray (EDX) techniques are used for elemental analysis of residues.
● Thermal analysis is used to determine chemical activity and stability of explosives.

Delhi Terror Attack - Misuse of Technology…

● Encrypted communication via the Swiss messaging app Threema , known for its high privacy design. Threema does
not require a phone number or email ; it assigns a random user ID unlinked to personal identifiers. Threema offers
end-to-end encryption , no metadata storage , and message deletion , making reconstruction of communication chains
extremely difficult.
● ‘Dead-drop emails’: Suspects used a shared email account to communicate via unsent drafts. Messages were saved
as drafts, accessed by others, then deleted — leaving no incoming or outgoing email record. This “dead drop” method
generates almost no digital footprint.

● Ricin is essentially a protein that can be extracted from the castor bean , largely grown industrially for the
production of castor oil in countries such as India, Brazil, and China.
● The seeds typically contain 30 per cent to 60 per cent castor oil , with ricin accounting for 1 per cent to 5 per
cent of the weight of the solid residue.
● Once consumed, ricin attaches itself to ribosomes , which are cell organelles made up of RNA and protein and
are responsible for reading genetic code and synthesising proteins.
● Once the poison binds with the ribosome , it stops protein synthesis in cells , and depending on which cells
absorb the poison, a person can suffer multi-organ failure and even death.
● There is no antidote or specific treatment for ricin poisoning , and the treatment is symptomatic.

● Petroleum and Explosives Safety Organization (PESO) has the objective of ensuring safety and security of
public and property from fire and explosion. As a statutory authority , it administers the Explosives Act, 1884 ,
Petroleum Act, 1934 , and Inflammable Substances Act, 1952 , along with the Rules framed under these Acts. It
functions under the DPIIT , Ministry of Commerce and Industry.
● Forensic analysis of explosives used in the blast outside the Red Fort confirmed a mixture of ammonium nitrate
and triacetone triperoxide (TATP).
● Ammonium nitrate and TATP are highly potent chemicals whose sale and handling are heavily regulated.
● TATP: Commonly known as the "Mother of Satan" due to its extreme sensitivity and "hair-trigger" volatility. It is a
peroxide-based organic compound Unlike most traditional military explosives (like TNT or RDX), TATP is
nitrogen-free , which allows it to evade detection by standard nitrogen-detecting explosive scanners. It is highly
sensitive to friction, shock, heat, and even static electricity. It can detonate without a traditional detonator. Unlike
most explosions which are thermochemical (releasing heat), TATP’s detonation is described as an "entropy
burst". Every molecule of solid TATP breaks down into four gaseous molecules (one ozone and three acetone
molecules), creating devastating blast pressure. It can be synthesized using common household ingredients:
Acetone (found in nail polish remover); Hydrogen Peroxide (found in hair bleach or disinfectants); Acid Catalyst
(such as sulfuric, hydrochloric, or citric acid).
NIA :
● Established in the aftermath of the 26/11 Mumbai terror attacks , the NIA was created to address the critical need
for a specialised agency capable of investigating complex, inter-state, and trans-national terror plots.
● The NIA Act of 2008 , enacted immediately after the attack, established the NIA under the administrative control
of MHA as a specialised, central agency capable of investigating transnational and complex terror plots.
● The agency’s primary function is to investigate and prosecute scheduled offences (mentioned in the NIA Act,
2008 ), which are serious crimes involving national security and those under the UAPA, 1967. Since its inception,
the NIA’s role has expanded significantly.
● The agency now focuses not just on acts of terrorism but also on dismantling the broader ecosystem supporting
terrorism. This brings the financial and logistical wings of terror networks , including organised criminal gangs,

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National Counter-Terrorism Policy and Strategy - PRAHAAR…

● 2-day Anti-Terrorism Conference-2025 organised by NIA.
● MHA released country’s first-ever anti-terror policy titled PRAHAAR.
● It states that India faces terrorist threats on all three fronts — water, land and air — and that capacities have been
developed to protect critical sectors of the economy, including power, railways, aviation, ports, defence, space and
atomic energy, from both state and non-state actors.
● Zero Tolerance Policy: Formally institutionalizes a "zero tolerance" stance against all forms of terrorism, regardless of
religion, caste, or nationality.
● Modern Threat Focus: Specifically targets 21st-century threats, including drones/robotics, cyber-attacks,
cryptocurrency financing, and the dark web.
● Critical Sector Protection: Outlines specialized strategies to protect vital economic sectors, including power grids,
railways, aviation, and atomic energy.
● The policy is structured around a seven-pillar framework represented by the acronym:
○ P – Prevention: Intelligence-led, proactive measures to disrupt threats before they materialize.
○ R – Response: Swift, proportionate, and coordinated action across central, state, and local agencies.
○ A – Aggregating Capacities: Modernization of law enforcement with advanced technology and weaponry.
○ H – Human Rights: Ensuring operations are grounded in the rule of law and constitutional safeguards.
○ A – Attenuating Conditions: Addressing root causes through de-radicalization & socio-economic engagement.
○ A – Alignment: Strengthening international cooperation via treaties, extradition, UN-led global norms.
○ R – Recovery & Resilience: Rebuilding and long-term stability after terror incidents.

FATF…

Why in news: In 2020, India seized dual-use autoclaves from a Pakistan-bound vessel Da Cui Yun at Kandla port, later
found linked to Pakistan’s National Development Complex (NDC) —a key missile development entity.
● FATF confirmed shipment was mis-declared and violated MTCR guidelines. Autoclaves are critical for chemical
coating and insulation of missile motors , and their export without clearance breaches non-proliferation norms.

FATF Report…

Why in news: FATF has, for the first time , included a separate section on state-sponsored terrorism in its report.
● The 2025 Comprehensive Update on Terrorist Financing Risks states that terrorist organisations continue to receive
financial and other support from national governments.
● The project was co-led by the UNSC Counter-Terrorism Committee Executive Directorate and France , with India
playing a significant role.
● India’s 2022 National Risk Assessment had identified Pakistan as a state sponsor of terrorism. U.S. 2024 National
Terrorist Financing Risk Assessment noted terrorism threats from Pakistan , Afghanistan and East Africa.

FATF Asset Recovery Framework…

● FATF released the “Asset Recovery Guidance and Best Practices” guidelines to strengthen asset recovery systems
against financial crimes & outlines practical measures to identify, trace, freeze, manage, confiscate, and return assets
derived from criminal activities.
● It includes examples from ED cases , cited as models of effective asset recovery and inter-agency coordination.
● For the first time , FATF has mandated non-conviction-based confiscation, allowing asset recovery without a criminal
conviction when prosecution is not feasible. The guidance encourages the use of extended confiscations and
unexplained wealth orders , requiring individuals to prove the lawful origin of assets under reasonable suspicion.
● It places greater emphasis on provisional measures to secure assets early and prevent their dissipation.

narco-terrorism and financing of terror activities , under its purview.
● The NIA (Amendment) Act of 2019 significantly broadened the agency’s powers.

● Established : 1989 by G7 countries. Purpose : Combat money laundering and terrorist financing. HQs: Paris, France.
● Set Standards: Develop and promote international standards for combating financial crimes.
● Policy Development: Recommend measures to enhance financial systems' integrity.
● Evaluation: Assess member countries' compliance with FATF recommendations.
● Comprises 39 members, including both countries and regional organizations. India became a member in 2010.
● Grey List: Countries under increased monitoring, encouraged to address deficiencies in AML/CFT regimes.
● Black List: Countries that are non-cooperative in combating money laundering and terrorist financing.
● 21 countries on Grey List and three countries on Black List, Iran, Myanmar, and North Korea.

● ED was established in 1956 , as the ‘Enforcement Unit’ under the DEA in the Ministry of Finance to handle violations
of exchange control laws under the Foreign Exchange Regulation Act, 1973.
● Later renamed ED and transferred to Department of Revenue , and entrusted with enforcing financial laws.
● The enactment of FEMA in 1999 and PMLA in the early 2000s increased the powers of ED.
● These changes aligned ED’s functions with international standards to combat financial crimes.

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Laundromat…

Why in news: Since 2015, the ED has taken up 5,892 cases under PMLA (2002) , but only 15 convictions have been
secured, raising questions on both rising cases and low conviction rates.
● Laundromat: Term originated in the U.S. crime syndicates. Functions as an all-purpose financial vehicle : laundering
crime proceeds, hiding asset ownership, embezzlement, tax evasion, offshore transfers.
● Defined under Section 3, PMLA as concealing/using proceeds of crime and projecting them as untainted property.
● Stages : Placement : introducing illicit money. Layering : moving funds via investments/transactions. Integration :
reintroducing into economy. About PMLA:
● Enacted in line with UN 1990 declaration to prevent laundering and confiscate assets.
● Features: Burden of proof on accused , ECIR (internal document created by ED when a case is opened under PMLA.
It is similar to FIR) sufficient to initiate proceedings, scheduled offence is essential for prosecution under Sec 3.
● Scheduled offence required for prosecution, But property attachment under Section 5 can proceed without
pre-registered case → scope for misuse. ED can provisionally attach a property if it has a "reason to believe" it is
linked to proceeds of crime, even if the predicate offense is not yet registered.

Drone-driven Drug Smuggling…

Why in news: Rise in drone-based drug smuggling along the India–Pakistan border in Punjab , as per NCB Report.
● The “Death Crescent” (Afghanistan–Pakistan–Iran) remains the main source of heroin, hashish, and
amphetamine-type stimulants (ATS) entering India through the western coast.
● The “Death Triangle” (Myanmar–Thailand–Laos) continues to be the primary source of synthetic drugs , especially
methamphetamine , entering India through the eastern coast.
● NCB , established in 1986 under the NDPS Act 1985 by the MHA , serves as the nodal agency for drug law
enforcement, intelligence, and coordination against trafficking nationwide.
● Key functions include coordinating with State police, customs, CBI , collecting and disseminating intelligence ,
analysing seizures and trends , training enforcement personnel, and monitoring borders.
● Implements international obligations via liaison with UNODC, INCB, INTERPOL , prepares national drug statistics ,
and supports anti-abuse awareness programs.
● Headed by the Narcotics Commissioner with 10 zonal offices (e.g., Mumbai, Delhi) and sub-zones (e.g., Amritsar,
Hyderabad) for enforcement and operations.
● Empowered to investigate and prosecute under the NDPS Act; directly reports to the MHA for policy advice on
narcotics control and demand reduction.

Operation MED MAX…

Why in news: Narcotics Control Bureau conducted operation to crack down on illegal pharmaceutical drug trade.

Operation Crystal Fortress…

● The NCB) and Delhi Police Special Cell (Counter Intelligence) arrested two drug peddlers in Delhi , concluding
Operation Crystal Fortress. The operation was a four-month-long exercise conducted by NCB , Delhi Police , and
Nagaland Police. The transnational drug racket was operated from Dubai.
● “Crystal” refers to methamphetamine , and “fortress” denotes the secured hiding area. Methamphetamine is also
known as the “Ice” drug due to its white, crystal-like appearance and demand at rave parties.

● In 2006 , India received observer status in FATF , created in 1989 to coordinate anti-money laundering efforts.
● In 2010 , India became a member state of FATF.

● Operation MED MAX targeted the illegal pharmaceutical drug trade. NCB dismantled a transnational drug
trafficking syndicate. The syndicate used encrypted digital platforms, drop shipping models, and cryptocurrency.
Drugs were smuggled across four continents.
● Delhi Police busted an international drug cartel operating in India, Thailand and the UAE. Hydroponic marijuana,
also called ocean-grown weed, is cultivated using hydroponic methods.
● The Directorate of Revenue Intelligence (DRI) launched Operation WeedOut. It was a pan-India operation to
dismantle a hydroponic weed smuggling syndicate. DRI functions under the Central Board of Indirect Taxes &
Customs, Ministry of Finance. It is tasked with curbing smuggling of contraband, including drug trafficking.
● Operation Samudragupt was launched in 2022. It is a joint initiative of the Indian Navy and the NCB. The
objective is to combat drug trafficking in the Indian Ocean Region (IOR).
● Operation NARCOS was launched in 2022 by the Railway Protection Force (RPF). The drive aims to curb drug
smuggling on trains. RPF intensified checks and identified black spots across the country. The operation was
carried out in coordination with NCB.
International Day against Drug Abuse and Illicit Trafficking:
● In 1987, the General Assembly declared June 26 as International Day against Drug Abuse and Illicit Trafficking to
encourage action and collaboration towards the goal of a drug-free world.

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Defense Policies…

Inter-Services Organisations (Command, Control and Discipline) Act, 2023
Why in news: The Act aims to bolster effective command, control, and functioning of Inter-Services Organisations
(ISOs) to promote jointness among armed forces.
● The Act empowers Commanders-in-Chief and Officers-in-Command of ISOs to exercise command and control over
service personnel for discipline and administration.
● Streamlines processes for quicker resolution of cases. Minimises need for multiple proceedings.
● Facilitates better coordination among personnel from different services. Supports the transition to integrated theatre
commands. Ensures better command and control for ISOs.

22nd Shangri-La Dialogue…

Why in news: CDS will visit Singapore to attend the event hosted by the International Institute for Strategic Studies.
● It is an annual international security conference held in Singapore. It is Asia’s premier defence and security summit ,
featuring Defence Ministers, military chiefs, and strategic experts from across the globe.

Agniveers…

Why in news: With first batch of Agniveers set to retire in 2026, Home Ministry has been assigned to coordinate their
career progression. An online portal will be launched to monitor the post-service career prospects.
● GoI (Allocation of Business) Rules, 1961 were amended, officially assigning this responsibility to the Ministry.
● The Agnipath scheme , launched in 2022 , recruits soldiers, airmen, and sailors for four-year terms.
● 75% of Agniveers will exit service after four years;
● The first batch will be eligible for CAPF recruitment (CISF, BSF, CRPF, ITBP, SSB, Assam Rifles) in 2026.
● Age bracket set at 17.5–21 years; capped intake of 1.75 lakh till 2026. Aims to bring down average age of armed forces
from 32 to 26 years , aligning with global standards.
● Army to induct 40,000 Agniveers annually, while Navy and Air Force recruit around 3,000 each. They can receive a
lump sum on exit; no pension eligibility.
● Skill Development: Offers educational opportunities and skill certificates to enhance employability post-service.
● Department of Military Affairs , headed by CDS, has sought feedback from the forces on the Agnipath scheme.
● Home Ministry announced that 10% of all vacancies in the Central Armed Police Forces would be reserved for
Agniveers who have completed four years of service. Ministry had decided to enhance reservation for former Agniveers
in the Group C posts of all CAPFs from the existing 10% to 50%.
● Ministry notified that 50% vacant constable posts in the BSF would be reserved for ex-Agniveers.
● Vande Mataram Coastal Cyclothon 2026: Indian coasts were “very porous” and there was a need to reach out to
coastal communities that would help in gathering information and strengthen national security. Two teams of 130 CISF
personnel will cycle along 6,553 kilometre of coastline covering 72 districts to sensitise local people about the threats
emanating from the smuggling of drugs, weapons and explosives.

Emergency Procurement…

Why in news: Defence Ministry has concluded 13 contracts under EP mechanism. Procurement was done through
fast-track procedures under EP mandate.
● The EP route continues to be a key enabler in bridging urgent capability gaps and ensuring timely induction of vital
operational equipment.

Defence Production…

Why in news: The private sector’s share in defence production reached a record 23% in FY 2024–25 , marking the third
consecutive year of growth , per the Department of Defence Production.
● Defence Acquisition Procedure 2020 prioritizes domestic procurement , opening major contracts to private firms.
● The FDI policy (2020) allows up to 74% FDI via Automatic Route and 100% via Government Route.

● It is also known as World Drug Day, with the day aiming to increase action and collaboration in the effort to end
illicit drug use throughout the globe.
● The theme for 2025, “Break the Cycle. #StopOrganizedCrime“, emphasises the significance of focused
long-term action to break the cycle of organised crime and drug trafficking.
World Drug Report 2025:
● The UN Office on Drugs and Crime (UNODC) launched the World Drug Report, which provides a scientific and
impartial overview of drug trends and patterns around the world.
● According to the report titled “Global instability compounding social, economic and security costs of the world
drug problem”, 316 million people used a drug (excluding alcohol and tobacco) in 2023, or six per cent of the
population aged between 15 and 64, compared to 5.2 per cent of the population in 2013.
● Cannabis was the most widely used drug followed by opioids, amphetamines, cocaine, ecstasy.

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● Positive Indigenisation Lists restrict imports of over 5,500 items , ensuring domestic sourcing.
● Make in India and SRIJAN portal (Self-Reliant Initiatives through Joint Action platform developed by the Department
of Defence Production, Ministry of Defence, to promote indigenisation of defence items) promote indigenous
manufacturing and attract private investment in defence.
● Innovation schemes like iDEX and ADITI support startups and MSMEs in developing AI, drones, and quantum tech.
● iDEX: Innovations for Defence Excellence, launched in April 2018 by the Prime Minister, is a flagship initiative to foster
innovation, indigenization, and technology development in India’s Defence and Aerospace sectors. It engages
startups, MSMEs, innovators, and academia through the Defence Innovation Organisation (DIO) to create a
self-reliant, modern defense ecosystem.
● ADITI: Acing Development of Innovative Technologies with iDEX by the Ministry of Defence during DefConnect 2024
to foster innovation in critical and strategic defence technologies and achieve self-reliance (Aatmanirbharta).
Start-ups are eligible for a grant-in-aid of up to ₹25 crore for R&D. ADITI 3.0 was launched, introducing new
challenges in areas like AI, military communication, and autonomous bots.
● India’s target for defence production by 2029 is ₹3 lakh crore.
● There has been a 223% surge in defence production between 2014–15 and 2024–25.
● 65% of defence equipment is now manufactured domestically , compared to earlier 65–70% imports.
● Defence exports from India have increased 34 times between 2013–14 and 2024–25.
● India now exports to over 100 countries , with leading buyers including the USA, France, and Armenia.

Drone Industry…

● Defence Minister called for self-reliance in drone technology. He urged industry stakeholders to work in mission
mode to establish India as a global hub for indigenous drone manufacturing by 2030.
● He was addressing National Defence Industries Conclave at the Manekshaw Centre.
● He highlighted that many countries rely on imports from China for key drone components.
● He launched the 14th edition of the Defence India Start-up Challenge (DISC-14). He also launched the fourth edition
of ADITI challenges. These are under the Innovations for Defence Excellence (iDEX) framework.
● India has successfully tested Bhargavastra , an indigenous, low-cost "hard-kill" anti-drone system developed by Solar
Defence & Aerospace Limited. This system uses micro-rockets to detect, engage, and neutralize drone swarms with
high precision within seconds. It boasts a detection range of 6km and an interception range of 2.5km.

Homegrown Dual-use AI Systems…

● Indian Army unveiled a suite of indigenous AI solutions at the India AI Summit, underlining its ongoing transformation
into a data-centric and AI-enabled force.
● The Army’s display highlighted dual-use platforms designed to serve both defence operations and civilian
applications such as disaster management, cybersecurity and governance.
● Army showcased AI Examiner , an automated assessment and feedback platform aimed at modernising education and
training frameworks. SAMUN , a geospatial and AI-enabled situational awareness system designed for mission
planning, disaster response and integration with smart command centres.
● EKAM (AI-as-a-Service), a secure, air-gapped indigenous AI cloud platform focused on ensuring data sovereignty
and secure processing of sensitive information. PRAKSHEPAN , an AI-driven climatology and disaster prediction
system capable of providing early alerts for landslides, floods and avalanches.
● XFace , AI-powered facial recognition system for identity verification, along with Deepfake Detection and AI Cyber
Security Systems to counter synthetic media manipulation, malware, cyber threats.
● Nabh Drishti , a mobile telemetry-based real-time reporting and visualisation platform; an AI-enabled Driver Fatigue
Detection device for real-time drowsiness alerts; a portable AI-in-a-Box solution designed for deployment in remote
or disconnected environments; and an AI-powered Vehicle Tracking System for fleet monitoring and logistics
optimisation.

Military AI - REAIM…

● India abstained from signing a pledge to govern the deployment of AI in warfare at the third global summit on
Responsible Artificial Intelligence in the Military Domain (REAIM), Coruna, Spain.
● About a third of the participating countries signed the ‘Pathways to Action’ declaration. The United States, India, and
China were among those that did not. The previous summit saw 60 countries sign a document outlining a blueprint for
action. This year, that number decreased, with only 35/85 countries signing.
● Complex question is what to do about lethal autonomous weapons systems (LAWS), one of the most controversial use
cases of AI. The UN Convention on Certain Conventional Weapons’ (CCW) Group of Governmental Experts convened
twice last year, but failed to issue concrete recommendations.
● India has not signed either the 2024 Blueprint for Action in Korea or the ‘Pathways to Action’ declaration.

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Women in Forces…

Why in news: The parliamentary consultative committee on Defence , headed by Defence Minister was briefed on
women’s representation in the armed forces.
● As per MoD data , women form 13.4% of the IAF workforce (highest), 6.85% in the Army , and 6% in the Navy.
● Twelve Army branches , including combat , are open to women officers. In the Navy , all branches are open for women
except submarines. In the Air Force , all branches are open for women officers.
● Women are eligible for technical and non-technical roles through different entry schemes.
● Most defence training institutes and academies have been opened for women.

Tri-services Education Corps…

Why in news: India’s top military hierarchy decided to form three joint military stations , the first in the country , and
merge the education branches of the three defence services into a single tri-services Education Corps.
● There are two tri-service commands : the Andaman and Nicobar Command and the Strategic Forces Command
(SFC) , which manages India’s nuclear arsenal.
● The Headquarters Integrated Defence Staff (HQIDS) was created after the Kargil conflict to provide an institutional
framework for higher management of defence.
Combined Commanders’ Conference:
● It is organized under the aegis of the Ministry of Defence (MoD) , with the Armed Forces hosting the event.
● It is an apex tri-service forum held biennially , convenes top military leadership, MoD officials, the PM, and the
Raksha Mantri for strategic dialogue on reforms, jointness, and national security.
● The 2025 edition (16th) was held in Kolkata at Eastern Command HQ , inaugurated by PM Modi.
● The 2025 theme was ‘Year of Reforms – Transforming for the Future’ amid complex geo-strategic challenges.

CMS-03 (GSAT-7R)…

Why in news: ISRO will launch the military communication satellite CMS-03 (GSAT-7R).
● The satellite will be launched aboard the Launch Vehicle Mark 3 (LVM3) , ISRO’s most powerful operational rocket.
● CMS-03 is a multi-band communication satellite designed to provide secure and reliable communication services
across a wide oceanic region, including the Indian landmass.
● The satellite weighs approximately 4,400 kg , making it the heaviest communication satellite to be launched into
Geosynchronous Transfer Orbit (GTO) from Indian soil.
● The launch of CMS-03 marks the first mission of the LVM3 rocket in over two years. The last LVM3 mission took
place in 2023 , when it successfully launched the Chandrayaan-3 lunar mission.

Seventh NSG Hub…

Why in news: A new hub of the National Security Guard (NSG) , the elite counter-terror and counter-hijack force , will
be established at Ayodhya in Uttar Pradesh.
● This would be in addition to the six NSG hubs operational in Mumbai, Chennai, Kolkata, Hyderabad, Ahmedabad, and
Jammu. At these hubs, NSG commandos are stationed round the clock throughout the year.

Security Categories…

Why in news: The Centre plans to transfer the Vice-President’s Z-plus security cover from the Delhi Police to the
Central Reserve Police Force (CRPF) after a recent security assessment and fresh threat inputs.
● As per protocol, the Vice-President currently receives Z-plus security from the Delhi Police’s security division , which
includes three Assistant Police Commissioners serving as Personal Security Officers (PSOs).
● The Z-plus category is the second-highest security level in India after the Special Protection Group (SPG) cover
provided to the Prime Minister and their immediate family.
● The security arrangements for the President, Vice-President, and Prime Minister follow the “Blue Book” — a set of
detailed protocols issued by the Union Home Ministry under the SPG Act.
● MHA decides level of security at the national level, while state governments determine it within their jurisdictions.
● Security assessments rely on inputs from intelligence agencies such IB.
● There are six categories of security cover: X, Y, Y+, Z, Z+, and SPG. The SPG is reserved exclusively for the Prime
Minister and his immediate family. It also extends protection to former Prime Ministers and their families for five
years after leaving office, provided they live at the residence allotted to them.
● Security classifications:
○ X: One gunman. Y: One gunman for mobile security and one (plus four on rotation) for static security.
○ Y+: Two policemen (plus four on rotation) for mobile security and one (plus four) for residence security.
○ Z: Six gunmen for mobile security and two (plus eight) for residence security.
○ Z+: Ten security personnel for mobile security and two (plus eight) for residence security.

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Comprehensive Nuclear-Test-Ban Treaty Organization…

● CTBTO emerged in 1996 to support CTBT , aiming for a global, verifiable ban on all nuclear explosions , though the
treaty has not entered into force due to pending ratifications.
● Its core strength is the International Monitoring System (IMS) with 337 global facilities using seismic, hydroacoustic,
infrasound and radionuclide sensors , analysed by the International Data Centre.
● The CTBTO’s paradox lies in its success: while it can detect any test effectively , renewed testing by major powers
would damage its political legitimacy , exposing the fragility of global nuclear restraint norms.

DPSUs - Miniratna Status…

● Defence Minister chaired a review meeting of
DPSUs at the newly inaugurated DPSU Bhavan at
World Trade Centre. Munitions India Limited (MIL) ,
Armoured Vehicles Nigam Limited (AVNL) , India
Optel Limited (IOL) , and Hindustan Shipyard
Limited (HSL) were granted Miniratna
(Category-I) status. There are currently
approximately 75 Miniratnas in India (approx. 62 in
Category I and 13 in Category II).

Rashtrapati Bhavan - Param Vir Chakra…

● Portraits of all 21 Param Vir Chakra awardees are now on display at the Rashtrapati Bhavan , replacing portraits of 96
British Aide-de-Camps (ADCs).
● Param Vir Chakra is India’s highest military honour , awarded for exceptional valour, courage and self-sacrifice during
war. The initiative aims to honour soldiers who laid down their lives in service of the nation.
● President inaugurated the ‘Param Vir Dirgha’ at the Rashtrapati Bhavan.
● The Indian Navy’s ensign removed the Saint George’s Cross and adopted a design featuring the National Flag and a
Navy blue-gold octagon dedicated to Chhatrapati Shivaji Maharaj.
● In 2018 , Ross Island was renamed Netaji Subhash Chandra Bose Dweep , Neil Island as Shaheed Dweep , and Havelock
Island as Swaraj Dweep.
● In 2024 , Port Blair was renamed Sri Vijaya Puram , and 21 islands were named after Param Vir Chakra awardees.
● The Mughal Garden of the Rashtrapati Bhavan was renamed Amrit Udyan.

Military in Lakshadweep…

● A new naval detachment is expected to be fully operational by next year on Bitra island , according to the Southern
Naval Command. Air Force is expanding its facility on Agatti and building a new air base on Minicoy.

Border Infrastructure…

● Technological advancements include indigenous Class 70 modular bridges.

Biosecurity…

● Biosecurity refers to the set of practices and systems designed to deter the intentional misuse of biological agents,
toxins or technologies. It covers everything from safeguarding labs handling dangerous pathogens to detecting and
containing an intentional outbreak of a pathogen.
● Biosecurity differs slightly from biosafety , which prevents the accidental leakage of pathogens. A robust biosafety
protocol feeds into biosecurity.
● After instances of bioweapons development , the Biological Weapons Convention (1975) came into existence. It
prohibited the use and development of biological weapons of mass destruction and asked signatories to destroy
existing stockpiles.
● India is part of international platforms such as the Biological Weapons Convention and the Australia Group.

● Shyok Tunnel is a 920-metre cut-and-cover tunnel on the 255 km long DS-DBO road , which is the only
operational road connecting Durbuk to the Depsang Plains and DBO in the north.
● DBO hosts one of the world’s highest operational airfields , which is a key strategic air infrastructure for India.
● Shyok Tunnel is of key strategic significance as it would provide all-weather connectivity to areas close to LAC.
It would particularly help in the quick mobilisation and redeployment of troops when needed.
● The DS-DBO road is one of the two roads aimed at connecting the lower rsegion of eastern Ladakh to DBO.
● The Shyok tunnel has been built on this road.
● Atal Tunnel: 9.02 km long, horseshoe-shaped highway tunnel in Himachal Pradesh, connecting Manali to the
Lahaul-Spiti valley throughout the year. Situated at an altitude of 10,000 feet (3,000+ meters) in the Pir Panjal
range, it is recognized as the world's longest highway tunnel above this altitude.

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DAC Approvals…

● Achieving ₹50,000 crore defence exports by 2029 requires simplifying procedures and policy continuity.
● The Defence Acquisition Council (DAC) , chaired by the Defence Minister , accorded Acceptance of Necessity.
● For the Indian Navy , the AoN was accorded for procurement of Bollard Pull (BP) Tugs , High Frequency Software
Defined Radio (HF SDR) Manpack systems , and leasing of High Altitude Long Endurance (HALE) Remotely Piloted
Aircraft Systems (RPAS).
○ BP Tugs will assist naval ships and submarines during berthing, unberthing and manoeuvring. HF SDR Manpack will
enhance long-range secure communications during boarding and landing operations.
○ The HALE RPAS will provide persistent intelligence, surveillance and reconnaissance and strengthen maritime
domain awareness across the Indian Ocean Region.
○ SPICE-1000 kits will enhance the IAF’s long-range precision strike capability.
● DRDO also successfully conducted the maiden flight test of the Pinaka Long Range Guided Rocket.

Japan’s Record Defense Budget…

● Japan plans to build a ‘Synchronised, Hybrid, Integrated and Enhanced Littoral Defence (SHIELD)’ system. The
SHIELD system will use a massive fleet of unmanned drones across air, sea-surface, and underwater domains.

78th Army Day…

● Indian Army Day is observed every year on January 15 to honour the bravery and sacrifices of soldiers who dedicated
their lives to protecting the country.
● The official theme for Indian Army Day 2026 is “ Year of Networking and Data Centricity ”.
● The day commemorates the occasion when General (later Field Marshal) K M Cariappa took over the command of
the Indian Army from F R R Bucher , the last British Commander-in-Chief , in 1949 and became the first Indian
Commander-in-Chief of Independent India.

Indian Coast Guard…

● Indian Coast Guard, established on February 1, 1977, observed its 50th Raising Day.
● ICG is divided into five regions: North-West (Gandhinagar), West (Mumbai), East (Chennai), North-East (Kolkata),
and Andaman & Nicobar (Port Blair).
● Motto: "Vayam Rakshamah" (Sanskrit for "We Protect").
● Key Inductions: Next-generation offshore patrol vessel (OPV) 'Shachi' and ICGS Achal , fifth vessel in a series of eight
indigenously designed Adamya-class Fast Patrol Vessels, on March 31, 2026, and the commissioning of the Fast Patrol
Vessel ICGS Akshar in late 2025.

ITBP - LAC…

● ITBP , which guards the 3,488-km-long India–China LAC , is establishing 10 all-woman border posts.
● ITBP’s 64th Raising Day parade held in Jammu.
● The ITBP is establishing two all-women BOPs in Ladakh’s Lukung and Thangi in Himachal Pradesh.
ITBP:
● The ITBP was established in 1962 , to reorganise the frontier intelligence and security setup along the
Indo-Tibetan border. Only four Battalions were sanctioned to begin with.
● ITBP was initially raised under the CRPF Act. In 1992 , parliament enacted the ITBPF Act and the rules thereunder
were framed in 1994. The motto of the Force is “Shaurya-Dridhata-Karma Nishtha”.
● The Crest of the ITBP shows a national emblem , i.e. Ashoka’s Lion Capital mounted on the Chakra crossed by
two loaded rifles.
● Presently ITBP has been guarding the India-China border in Jammu & Kashmir, Himachal Pradesh, Uttarakhand,
Sikkim and Arunachal Pradesh from the Karakoram pass to Jechap La.
● ITBP Battalions are also providing security to installations of national importance including Rashtrapati Bhawan ,
Vice-President House , Rumtek Monastery , Tihar Jail and LBSNAA.
● ITBP has also excelled in UN peacekeeping operations. The Force personnel were deployed in Angola, Namibia,
Cambodia, Bosnia Herzegovina, Mozambique and Kosovo.
● ITBP has been providing security, communication and medical cover during the Annual Kailash Mansarovar
Yatra since 1981. ITBP provides cover from Gunji to Lipulekh Pass in coordination with MEA and Kumaon Mandal
Vikas Nigam. Since 2015 , the Kailash Mansarovar Yatra is also conducted from the Nathula route.
● ITBP is at the forefront of preservation of the Himalayan environment ecology.
CAPFs:
● The Armed Police Organisations , referred to as CAPFs , such as the Assam Rifles (AR), BSF, CISF, CRPF, ITBP,
NSG and SSB , function under the administrative control of the MHA. Though the AR functions under the
administrative control of the MHA , its operational control rests with the Ministry of Defence.
● Of the CAPFs , the AR, BSF, ITBP and SSB are border guarding forces.
● The NSG is a commando-trained force organisation in India and is used for special operations.

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Security Regulations for Seaports…

● To plug gaps in coastal security , Govt has designated CISF as the security regulator for over 250 seaports.
● CISF currently provides security to all 13 major seaports across India. Presently, there is no uniform security template
for seaports, with security handled by private agencies and local police at many locations.
● Under a hybrid security model , core security functions at export-import ports will be handled by CISF , while
non-core duties may be undertaken by State Police or Private Security Agencies.

Reservation for Agniveers…

● The MHA decided to enhance reservation for ex-Agniveers in Group C posts of the CAPFs from 10% to 50%.
● The Ministry notified that 50% vacant constable posts in BSF will be reserved for former Agniveers. The first batch of
Agniveers will be eligible for recruitment in the CAPFs in 2026.
● The CAPFs comprise the CISF , BSF , CRPF , ITBP , SSB , and the Assam Rifles.
● Agniveers are recruited by the armed forces for a four-year period.
● (CDS inaugurated Bharat Himalayan International Strategic Manch (BHISM), a think tank in Dehradun. It would provide
informed policy recommendations to the Government of India on strategic issues).

BvS10 Sindhu…

● L&T and BAE Systems have bagged a contract from the Indian Army for supply of BvS10 Sindhu , a specialised
all-terrain armoured vehicle. BvS10 Sindhu is an upgraded variant of the proven BvS10 all-terrain vehicle.

National IED Data Management System…

● Union Home Minister inaugurated the operationalisation of NIDMS , a centralised and secure national platform for th
management of data related to Improvised Explosive Device incidents.
● Developed under the aegis of NSG , NIDMS is designed to serve as a single, authoritative repository of IED-relate
information across the country to support prevention, investigation and response mechanisms by enabling systematic da
collection, analysis, and dissemination among authorised stakeholders.
● NIDMS headquarters is located at the NSG garrison in Manesar , Haryana. Online database can be accessed by State polic
CAPFs, investigating agencies. NSG is the primary force for conducting post-blast analysis.
● Rashtriya Raksha University (RRU) in Gujarat has played a pivotal role in the development of the NIDMS initiative throug
its collaboration with the National Security Guard.
● The NIDMS is set to keep track and maintain a database of the techniques, tactics and procedures followed by the terr
networks to carry out IED activities in the country and to identify their modus operandi by utilising the advance
technology, including the current AI/ML technology.
● There will be training of troops over 3D model of IEDs , and faster formulation and dissemination of immediate an
long-term counter measures against futuristic IED threats.
● NIDMS is a digital platform including details related to explosive materials, initiation mechanisms, locations, forens
findings, and operational patterns of every bomb blast that has occurred in India since 1999.
● The International Bomb Data Center Working Group consists of 40 member States and an additional 12 countri
participating with observer status.
● These members include bomb data centers from : Argentina, Australia, Austria, Belgium, Canada, Colombia, Franc
Finland, Germany, Hong Kong, Hungary, Israel, Luxembourg, Malaysia, Netherlands, New Zealand, Philippines, Roman
Singapore, South Africa, Spain, Sweden, Switzerland, the UK and the US.

Defence Budget
● FY 2027 defence budget hovers near the substantial ₹8 lakh crore mark.
● This allocation accounts for 14.7% of the Government’s total expenditure at the BE stage for FY 27.
● In the FY 27 BE, the share of capital outlay has risen to 27.9% of the total defence budget.
● Share of pensions in the total defence budget has contracted to 21.8% in FY 27, down from 26% in FY 20. Before FY
1987-88, pensions came under central government pensions and were not clubbed with the defence budget.
● Salary component has moderated to 22.4%, a sharp decline from the 30% high seen in FY 20.
● At 2% of the GDP , defence budget is being touted as being the first double digit jump in India’s defence expenditure
in decades , ever since its steady decline from 2017.

● The CISF provides security and protection to industrial undertakings and vital installations.

● An IED is basically a home-made bomb & can come in many forms, ranging from a small pipe bomb to a
sophisticated device capable of causing massive damage and loss of life. IEDs can be deployed using a vehicle ,
carried, placed, or thrown by a person, delivered in a package, or concealed on the roadside.
● While they have been in used for over a century, the term “IED” first entered common usage during the US’ Iraq
invasion (beginning in 2003) , where such bombs were commonly used against US forces.

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● 75% of the capital acquisition budget for procurement has been earmarked for domestic industries , which includes
private players. The “Buy Indian-IDDM” (Indigenously Designed, Developed, and Manufactured) route of the Defence
Acquisition Procedure is being explored.

Defence Personnel Books…

● Defence Ministry is working on detailed guidelines for serving and retired armed forces personnel who wish to publish
books in future.
● There are no specific service rules barring ex-servicemen or retired Army officers from authoring or publishing books.
OSA continues to apply for life, even after retirement, making it a criminal offence to disclose classified information,
sensitive operational details, or any material prejudicial to national security.
● While retired personnel are no longer governed by the Army Act or Army rules in matters of publication , statutory
laws remain applicable. If a manuscript contains operational or sensitive details, authors are expected to submit it to
the Ministry for clearance.

Aeronautics 2047
● Air Chief Marshal congratulated the Aeronautical Development Agency (ADA) for the completion of 25 years of flight
by the light combat aircraft Tejas. The ADA designed and developed the Tejas.
● The focus of “Aeronautics 2047” is to explore modern aerospace technologies, including manufacturing and
assembly for next generation aircraft, digital manufacturing, aerodynamics for next generation combat aircraft,
propulsion technologies, and flight testing techniques.
● Aviation 2047 aims to transform India into a global aviation hub by its centenary, targeting 350-400 airports, 25
million+ jobs, and a $10 trillion economy contribution by 2047.

Air Based Weapons…

Dhruv Helicopter…

Why in news: Army and Air Force versions of the Advanced Light Helicopter (ALH) Dhruv have been cleared for
operations after being grounded since January.
● Dhruv was missing in action at Aero India 2025 , and the IAF’s Sarang Helicopter Display Team did not participate
due to grounding.

Dhruv NG Helicopter…

● HAL marked a breakthrough in India’s civil aviation ecosystem as the Dhruv New Generation (NG) helicopter
successfully undertook its maiden flight at the HAL Helicopter Division in Bengaluru.
● This signals the PSU’s formal entry into the civil helicopter market. HAL received DGCA certification for indigenous
manufacturing of the Shakti civil engine , a first-of-its-kind achievement in Indian aviation.
● This marks the first aero engine certified by DGCA for indigenous production.

MH-60R…

● Navy will commission its second MH-60R helicopter squadron , INAS 335 (Ospreys) at INS Hansa in Goa.
● 2025 marks 75 years since approval of the Fleet Air Arm by the Government of India.
● The Navy commissioned its second P-8I maritime patrol aircraft squadron at INS Hansa in 2022.
● The Navy is acquiring 15 MQ-9B Sea Guardian remotely piloted aircraft.

Apache Helicopters…

Why in news: Following the India–U.S. Defence Ministers’ dialogue , the Indian Army has now received the first batch of
three Apache AH-64E helicopters from the U.S. at the Hindon airbase. The Defence Minister also urged timely delivery
of U.S.-made General Electric engines for the Tejas Mk1A light combat aircraft.
● The Indian Army Aviation Corps had raised its first Apache Squadron at Jodhpur last year.

UH-3H Helicopter…

Why in news: UH-3H helicopter , once active in India , is now a museum exhibit on Beach Road, Visakhapatnam.
● It was de-inducted by Indian Naval Air Squadron 350 in 2024.
● Nearby museums include INS Kursura Submarine Museum , TU-142 Aircraft Museum , Sea Harrier Museum , and
Visakha Maritime Museum. Together, they form a coastal corridor of naval history.
● The UH-3H helicopter was originally designed by Sikorsky for the United States Navy. Six refurbished aircraft were
acquired with INS Jalashwa and inducted into the Indian Navy in 2009. These aircraft, known as Saaras , were
stationed at INS Dega.

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H125 Helicopters…

Why in news: India’s first helicopter final assembly line in the private sector set up at Vemagal in Kolar district,
Karnataka. Facility will be established by Tata Advanced Systems Ltd. (TASL) to build Airbus H125 helicopters.
● It will also meet the Indian armed forces’ need for a light multi-role helicopter.

Seahawks…

● India sealed deal with the US for the Indian Navy’s fleet of 24 Seahawk helicopters for five years.
● Letters of Offer and Acceptance cover sustained support for the MH-60R helicopter fleet ..

Aircraft Carriers - Rafale-M…

Why in news: India is buying 26 Rafale-M jets from France to equip both its aircraft carriers.
● The crew will train in both France and India. Rafale-M will operate from INS Vikramaditya and INS Vikrant.
● INS Vikrant , India’s first indigenous carrier, can carry an air wing of 30 aircrafts.
● Both carriers use the STOBAR system (Short Take-off But Arrested Recovery) with ski-jump launch and three arrester
wires for landing.

Operation Sindoor Weapons…

Why in news : Pakistan launched 300–400 drones across the western border, believed to be Songar drones by
Asisguard (Turkey) with a 3-km operational radius.
● Over 500 quadcopters were sighted. Indian Army intercepted these using L-70, Zu-23, Shilka air defence guns.
● Modern systems included SPYDER with Python-5 and Derby missiles , Akash and Akash-NG , Barak-8 , and S-400
Triumf (Sudarshan Chakra).
● L-70 guns were upgraded by Bharat Electronics Ltd. (BEL) with optical sights and hydraulic systems for better
tracking. India retaliated with loitering munitions such as Harop and Harpy drones.
● Indian airspace monitoring was conducted using IAF’s Integrated Aerial Command and Control Systems (IACCS).
● India’s layered air defence system includes S-400 (400 km) , MRSAM (70 km) , Akash (25 km) , Spyder (10 km) ,
Osa-AK , Tunguska , and Igla-S (man-portable, shoulder-launched surface-to-air missile).
● Akash short-range surface-to-air missile effectively intercepted incoming threats.
● Pakistan’s Chinese HQ-9 SAMs failed to counter India’s precision-guided strikes.
● Akashteer system and IACCS provided seamless integration for ground and air-based air defence.
● India’s Heron MK-II and TAPAS-BH-201 drones conducted deep missions inside Pakistan.
● Pakistan responded with Operation Bunyan-um-Marsoos , using Shahpar-II MALE drones , Burraq drones , Bayraktar
TB2 , CH-4 , and Wing Loong II.
Akashteer:
● India's fully indigenous, AI-enabled, automated Air Defence Control and Reporting System designed to automatically
detect, track, and engage aerial threats like drones, missiles, and aircraft. By BEL, DRDO and ISRO.
Changing Global Arms Trade Dynamics
● India deployed indigenous weapons , Israeli SkyStriker drones , and Russian-origin Pechora and OSA-AK missiles.
● Pakistan used Chinese PL-15 missiles and Turkish-origin UAVs.
● As per SIPRI , India’s reliance on Russian arms dropped from 96.5% (1990s) to 75% (2020s).
● India increased arms imports from France (9%) , UK (5.5%) , Israel (5%) , and USA (3%).
● USA’s share in Pakistan’s arms dropped from 67% (2000s) to 0.85% (2020s).
● Over 55% of India’s air defence imports in the 2020s came from France, UK, and Israel.
● Pakistan continued to import 50–85% of air systems from China across three decades.
● USA remains the top global exporter with 65% global arms share in the 2020s.
● Russia’s share fell to 5% , largely due to the Ukraine war.
● China’s share is below 2% , with 33% of its exports going to Pakistan.
● HAMMER is a precision-guided air-to-ground weapon for the Rafale aircraft , with a range of up to 70 km , capable
of low-altitude launches and resistant to jamming. Built by Safran , HAMMER is highly agile and versatile , suited for
medium-range tactical precision strikes.
● SCALP (also known as Storm Shadow in the UK) is a stealth cruise missile with a range of 450 km , used for
long-range deep strikes in all weather and light conditions. SCALP , made by MBDA , uses INS, GPS, and terrain
referencing , and can penetrate bunkers and ammo stores.
● METEOR is a Beyond Visual Range Air-to-Air Missile (BVRAAM) designed to perform in dense electronic warfare.
METEOR’s ramjet engine provides continuous thrust and the largest No Escape Zone among air-to-air missiles.
● BRAHMOS is a supersonic cruise missile co-developed by DRDO and Russia’s NPO Mashinostroyeniya ,
operational in all three Indian defence services. BRAHMOS flies at Mach 3 speed. It is a two-stage missile with
solid propellant booster as first stage and liquid ramjet as the second stage. The Defence Minister recently
inaugurated the Brahmos Aerospace Testing Facility in Lucknow, Uttar Pradesh.
● Loitering munitions are used for target surveillance and identification , capable of autonomous precision strikes ;
they are increasingly being procured by the Indian Armed Forces.

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Army scales up induction of drones, aims to make every soldier a drone operator…

Why in news: Indian Army is rapidly scaling up the induction of drones and counter-drone systems.
● Army Chief General visited a drone facility at Likabali in Arunachal Pradesh. Training is being conducted at Indian
Military Academy (Dehradun) , Infantry School (Mhow) , and Officers Training Academy (Chennai).
● Concept is described as “Eagle in the Arm” — meaning every soldier should operate a drone like carrying a weapon.
● Composite Divyastra batteries will be raised to enhance precision and survivability.

Saksham…

Why in news: Indian Army has initiated procurement of indigenously developed ‘Saksham’ Counter-Unmanned Aerial
Grid System. It stands for Situational Awareness for Kinetic Soft and Hard Kill Assets Management.
● It has been developed in collaboration with Bharat Electronics Limited (BEL), Ghaziabad.
● Saksham is designed to detect, track, identify, and neutralise hostile drones and unmanned aerial systems (UAS).

‘Ghost Bat’ Drone…

Why in news: MQ-28A Ghost Bats , 38-foot-long military drones act as robot wingmen. Australia is investing heavily in
developing collaborative combat aircraft to defend its shores.
● These will be the first aircraft designed and manufactured in Australia in over half a century.

Heron Mk II UAVs…

● To enhance unmanned capabilities , armed forces have signed up for more satellite-linked Heron Mk II UAVs.
● The Army and Air Force already operate Heron Mk II drones. Indian Navy is acquiring Heron Mk II for the first time.
The Navy, which has relied on Israeli-made Searcher UAVs for surveillance, will transition to the Heron..

IAF’s Fighter Jets…

Why in news: After over six decades of service , MiG-21 fighter jets retired from IAF which reduces IAF’s fighter
strength from 31 to 29 squadrons , against the sanctioned 42.
MiG-21s
● Inducted in 1963 from Soviet. India’s 1st supersonic fighter & 1st non-western aircraft. Nicknamed “flying coffins” after
450+ accidents. Crucial in 1965 & 1971 wars, 1999 Kargil conflict, 2019 Balakot.
● Used as Stage III trainer until 2008 due to lack of Advanced Jet Trainer. Currently two squadrons active — No. 23
‘Panthers’ and No. 3 ‘Cobras’ (first to get upgraded MiG-21 Bison, now first to get LCA-Mk1A ).
Current Status of the IAF
● Early variants of Jaguars, Mirage-2000s, MiG-29s will phase out by end of decade.
● Remaining fleet: Su-30MKI , LCA variants, upcoming MRFA and indigenous AMCA.

● S-400 Triumf is a long-range surface-to-air missile system developed by Russia’s Almaz Central Design Bureau
and named SA-21 Growler by NATO. The S-400 functions as an anti-access/area denial (A2/AD) asset , protecting
key military, political, and economic sites. It uses long-range radars to detect aerial threats, calculates their
trajectory, and launches missiles from a command vehicle.
● Akash SAM was developed by DRDO starting in the late 1980s under the Integrated Guided Missile Development
Programme. Akash is a Short Range Surface-to-Air Missile (SRSAM) system designed to protect vulnerable areas
and simultaneously engage multiple targets. It has Electronic Counter-Counter Measures (ECCM) to resist
electronic deception and is deployed on a mobile platform.
● MRSAM (Medium Range Surface-to-Air Missile) is jointly developed by DRDO and Israel. MRSAM is designed to
replace India’s ageing air defence systems and is available in Army, Navy, and Air Force variants.
● Cartosat, RISAT, and EOS satellites provide surveillance over the subcontinent , aiding military operations with
high-resolution imagery. Some satellites in these series can identify objects as small as 25–30 cm in size.
● NavIC , India’s regional navigation system, offers positional accuracy of 10–20 cm.
● China: Large and diverse drone fleet (e.g., Soaring Dragon, BZK-005, TB-001, Wing Loong II, CH-901 kamikaze).
2026 Updates:
● Switzerland-based Centre for Military History and Perspective Studies stated that IAF had achieved air superiority
over significant portions of Pakistani airspace.
● PAF employed Songar armed drones, Yihaa-III (Turkish designed) suicide drones, higher-altitude Bayraktar TB2,
Akinci drones , Fatah-I and Fatah-II rockets and Hatf-II ballistic missiles.
● IAF fired BrahMos, SCALP-EG and Rampage missiles from within Indian airspace using Su-30MKI, Jaguar, Rafale.
● On reports regarding alleged strikes on Pakistan’s Kirana Hills during the operation, Air Marshal said the IAF had
targeted terror infrastructure and several military installations only.
● Vayu Shakti is IAF biennial exercise. Held at the Pokharan in Rajasthan.
● Rafale, Su-30MKI, Mirage-2000, MiG-29, Jaguar, Tejas aircraft, Helicopters (Apache, Chinook, light combat
helicopter Prachand, advanced light helicopter), transport aircrafts (C-130J, C-17, C-295) took part.
Surface-to-air systems Akash and SpyDer showcased, including the deployment of M-777 howitzers, L-70 guns.

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● Two squadrons of LCA-Mk1 in service; deliveries of LCA-Mk1A delayed due to GE F-404 engine supply issues.
● Contract for 83 Mk1A jets signed. Deal for 97 additional jets expected; HAL scaling up to 24 jets/year.
● LCA-Mk2 to replace Mirage-2000s, Jaguars, MiG-29s; first flight by 2026.
● Interim talks for small number of 5th-gen imports (options: Russian Su-57, American F-35 ).

Fighter Jet Acquisitions…

● Defence Acquisition Council (chaired by defence minister) cleared procurement of 114 Rafale jets from Dassault
Aviation. French President committed to technology transfer during his India visit.
● Denial of sharing critical source codes may hamper India’s autonomy in customising software systems and
integrating sensors and radar systems & may limit indigenisation of Indian Air Force squadron ‘Golden Arrows’.
Rafale Procurement and IAF Capability Gap
● Indian Air Force operates 29 fighter squadrons against authorised strength of 42.
● Pakistan maintains around 25 squadrons , China around 65.
● Of 114 aircraft , 18 fly-away condition and 96 manufactured in India.
● Indigenous content targeted at 30% initially and 60% eventually.
● Tata Advanced Systems to manufacture four fuselage sections in Hyderabad.
Alternatives and Diversification
● Russia reportedly offered access to Su-57 fighter aircraft source code.
● India nearing deal to export Su-30MKI fighters to Armenia valued at $3 billion.
● India diversifying across France, Russia, Israel, United States.
● Defence production reached ₹1.51 lakh crore (2024-25). Private sector share 23%.
● China’s defence spending about $249 billion , India $93 billion. India is world’s fifth largest military spender ($86.1
billion in 2024). Indigenous value-add in licensed production 25–35%.
● Indian Air Force achieved TruVal Rating of 69.4 in World Directory of Modern Military Aircraft 2026 (sixth globally).

HAL - Fighter Jets…

● The repair and overhaul of every fighter jet, irrespective of its origin, is done by HAL.
● HF-24 Marut was designed by HAL’s Aircraft Design Bureau and produced on its shop floor. Projects such as trainer
aircraft HT-2 and HJT-16 were similar. Tejas is hybrid as a large part of its design is by DRDO’s ADA while the series
production and lifetime support rests with HAL.
● Since HAL and ADA are government agencies, there is an element of singular control by the Ministry of Defence. In
AMCA case, design agency (ADA) is under the govt but the executor will be a private entity.

AMCA…

Why in news: Defence Minister approved execution model for Advanced Medium Combat Aircraft (AMCA) project.
● Under this model, HAL will compete with private industry to manufacture the indigenous fifth-generation fighter jet.
● Aeronautical Development Agency (ADA) will execute the programme through industry partnership.
● China has 2 5th-generation jets and plans to supply 40 J-35s to Pak. HAL is India’s only fighter jet producer so far.
● Execution model allows equal opportunity to public & private sectors, either independently or as joint ventures.
● AMCA is a 25-tonne, twin-engine stealth aircraft and will feature internal weapons bay and diverterless supersonic
intake. AMCA can carry 1,500 kg internal payload, 5,500 kg external payload, 6,500 kg internal fuel.
● Development will occur in two phases : Mk1 with GE F-414 engine, and Mk2 with a co-developed engine in partnership
with Saran of France.
● India’s first indigenous fighter, HF-24 Marut , developed by HAL , was promising but underpowered. It used British
Orpheus 703 turbojets , far below the desired thrust levels, crippling its combat potential despite a solid design. Only
147 units were built, retired by 1990.
● The Kaveri GTX-35VS was initiated by DRDO’s GTRE in 1989 for the Light Combat Aircraft (LCA). It failed to meet
performance benchmarks. A 2016 revival attempt with French Snecma under Rafale offsets collapsed.
● India turned to GE’s F404-IN20 engine for LCA Mk1. A 2021 contract for 99 F404 engines for LCA Mk1A saw a
13-month delay , jeopardizing timely induction. AMCA Mk1 and LCA Mk2 now depend on GE-F414 engines.
● No commitment to share critical engine tech such as single-crystal blades & advanced thermal coatings , crucial for
engine longevity. ADA is exploring alternatives with Safran and Rolls-Royce , but no outcomes yet.
● India’s AMCA project will make it one of the few nations with fifth-generation fighter aircraft , alongside the US
(F-22, F-35) , China (J-20) , and Russia (Su-57).
● Stealth is achieved through low electromagnetic signature , making it difficult for enemy radar to detect. The
aircraft will feature advanced sensors and next-gen weapons to detect and neutralise enemy aircraft signatures.
● Stealth components include an internal weapons bay and a larger internal fuel tank , allowing a payload of 1,500 kg ,
including four long-range air-to-air missiles and precision-guided munitions.
● External fuel tanks and weapons increase radar detectability, whereas special radar-absorbing material on the
AMCA will divert radar waves , enhancing stealth.
● Rafale , a 4.5th generation fighter , is also used by Egypt, Qatar, UAE, Greece, Indonesia, Croatia, and Serbia.

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HAL - 97 LCA…

Why in news: The Defence Ministry signed a contract with Hindustan Aeronautics Ltd. (HAL) to procure 97 Tejas
Mark-1A light combat aircraft for the Indian Air Force (IAF).
● The Tejas Mk-1A has over 64%
indigenous content and 67 new
features compared to the 2021
contract version.
● It includes advanced systems
such as UTTAM AESA Radar ,
Swayam Raksha Kavach , and
indigenous control surface
actuators.
● The aircraft are being procured
under the ‘Buy (India-IDDM)’
category of the Defence
Acquisition Procedure 2020.
● Tejas Mk-1A is most advanced
variant of indigenously designed fighter jet. The IAF will receive its first LCA Tejas Mk1A.

Decoys & Deceptions…

Why in news: During Operation Sindoor , IAF is believed to have used AI-enabled X-Guard Fibre-Optic Towed Decoy
(FOTD) systems on Rafale jets, reportedly confusing Pakistan Air Force’s J-10Cs and diverting PL-15E missiles. This
highlights how decoys and deception technologies have become a critical layer of modern warfare.
● IAF Rafale fighters used X-Guard FOTD , developed by Israel’s Rafael. Mimics Rafale’s radar cross-section, Doppler
velocity, and spectral signature.
● Lightweight (30 kg), retractable and reusable system trailing ~ 100m behind the aircraft.
● Creates a convincing illusion for enemy radars and missiles. Has 360-degree jamming signal capability.
● Comparable systems : BriteCloud (Eurofighter, Gripen-E, F-16); AN/ALE-50/55 (F/A-18 Super Hornet); Adaptable for
UAVs (MQ-9 Reaper, Heron).
● Land-Based Decoys: Inflatable, radar-reflective, heat-emitting dummies simulate tanks, artillery, missile batteries.
● Naval Decoys: Warships use floating chaff, acoustic decoys, and offboard deception systems. Nulka decoy
(Australia-U.S.) : self-propelled, mimics radar signature of a larger ship to divert missiles.

IAF 93rd Anniversary…

Why in news: The IAF celebrated its 93rd anniversary with a ceremonial parade at Air Force Station, Hindon.
● ‘Dhwaj’ formation flypast of Mi-17 1V helicopters carrying the National Flag , IAF Flag , and Operation Sindoor Flag.
● Heritage Flight section performed an aerial display featuring Tiger Moth, HT-2, and Harvard trainer aircrafts.
● A static display of frontline assets — including Rafale Multirole Fighter, Su-30MKI Fighter, Apache Attack Helicopter,
MiG-29 Fighter, C-17 Globemaster Heavy-Lift Transport, C-130J Transport Aircraft, Akash Missile System
Surface-to-Air Missile.
● The production lines of the light combat aircraft Tejas Mk1A and the training aircraft HTT-40 begin at Nashik.

● Tata Advanced Systems Limited is a major Indian player in aerostructures, aero-engines, airborne systems,
defence, and land mobility. Key TASL project: Final assembly of Airbus C295 tactical airlift aircraft for the Indian
Air Force , highlighting deep global joint ventures in defence.
The ‘generation’ in the fighter jet engine
● 1st Gen (1943–1955) : Introduced during WWII; mostly subsonic , with basic avionics and no self-protection.
Examples: Messerschmitt Me 262, MiG-15, F-86 Sabre, Hawker Hunter.
● 2nd Gen (1955–1970) : Achieved transonic/supersonic speeds , featured early fire-control radars and semi-active
guided missiles. Examples: MiG-21F, SU-9, F-104 Starfighter, F-105 Thunderchief, SU-7B.
● 3rd Gen (1960–1970) : Introduced multi-role design and beyond visual range (BVR) air combat capabilities.
Examples: F-4 Phantom, MiG-23, Harrier.
● 4th Gen (1970–2000s) : True multi-role capabilities , fly-by-wire systems , and enhanced maneuverability.
Examples: F-14 Tomcat, F-16, F/A-18 Superhornet, Su-35, Eurofighter Typhoon, HAL Tejas, Dassault Rafale.
● 5th Gen (2000+) : Features full stealth , integrated avionics , network-centric warfare , and battlefield awareness.
Operational Examples: F-22, F-35 (US) , Su-57 (Russia) , J-20 (China). Under Development: India’s AMCA
● Sukhoi Su-57 (Felon) is Russia's fifth-generation stealth multirole fighter, featuring supercruise (Mach 1.3 without
afterburners), supermaneuverability via thrust-vectoring, and Mach 2 top speed. For stealth, it incorporates
reduced radar cross-section through airframe design and internal weapons bays. Powered by twin engines.

● Army has issued Requests for Information (RFI) to procure up to 45 Low
Level Light Weight Radars (Enhanced) (LLLR-E) and up to 48 Air Defence
Fire Control Radar-Drone Detectors (ADFCR-DD).
● Army has also called for 10 Low Level Light Weight Radars (Improved)
(LLLR-I) , capable of detecting all aerial targets within a 50-km range and
tracking over 100 targets simultaneously.
● LLLR-E features an Electro-Optical Tracking System (EOTS) and a passive
radio-frequency detection system , enabling it to identify low-RCS drones
and swarms.
● ADFCR-DD integrates search radar, track radar, fire control systems, and
Identification Friend-or-Foe (IFF) on a single vehicle. It will control the fire of
at least two L/70 guns and provide targeting data to Very Short Range Air
Defence Systems (VSHORADS) for close-range interception.

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HAL - GE - Fighter Jet Engines…

● HAL sealed a $1-billion deal with GE Aerospace to procure 113 jet engines for Tejas light combat aircraft.

1971 Victory…

● IAF celebrated triumph in the 1971 war with an event at the Mohanbari Air Force Station in Assam.
● The IAF said a flying display featuring Su-30 MKI (Fighter), C-130 (MTA), Dornier (Maritime Surveillance), An-32
(MTA), Chinook (Helicopter), Mi-17 (Helicopter), ALH (Helicopter) and Cheetah aircraft recreated iconic missions of
the 1971 war , including the Tangail Airdrop , Meghna River Crossing , and the attack on the Governor’s House in Dhaka.

Fighter Escape System…

● DRDO carried out a high-speed rocket-sled test of an indigenous fighter aircraft escape system.
● The trial was conducted with HAL and Aeronautical Development Agency.

C-390 Planes…

Why in news: Brazilian aerospace company Embraer opened its India office.
● Embraer marked the occasion by signing a strategic cooperation agreement with the Mahindra Group.
● The agreement aims to advance the C-390 Millennium military transport aircraft.

Hansa-3 Plane…

● CSIR–National Aerospace Laboratories, Bengaluru , launched the production version of the indigenous Hansa-3 (NG)
trainer aircraft. CSIR-NAL is developing 19-seater Light Transport Aircraft SARAS Mk-2 for civilian and military
operations.

SJ-100…

Why in news: HAL and Russia’s United Aircraft Corporation (UAC) have signed MoU for the production of the civil
commuter aircraft SJ-100 in India. SJ-100 is a twin-engine, narrow-body aircraft , with over 200 units already produced
and operated by more than 16 commercial airlines worldwide.
● SJ-100 would be a game changer for short-haul regional connectivity under the UDAN (Ude Desh ka Aam Nagrik).
● The last such project was HAL’s production of the AVRO HS-748 aircraft , which began in 1961 and ended in 1988.

F-35B…

Why in news: A Royal Air Force aircraft carrying an expert team of engineers from U.K. reached Thiruvananthapuram
International Airport to repair the grounded F-35B jet.
● An Airbus A400M Atlas , a four-engine military transport aircraft is capable of carrying heavy payloads, military
equipment, troops , and humanitarian aid over long distances.
● The F-35B is the only fifth-generation fighter jet with short take-off and vertical landing (STOVL) capabilities,
allowing it to operate from smaller decks, austere bases, and ships. Known as the ‘Lightning’ in British service.

Jaguar…

Why in news: Jaguar trainer aircraft crashed near Churu in Rajasthan. This is third crash of Jaguar fighter jet in 2025.
● The Jaguars , developed by an Anglo-French company , were inducted into the IAF in the late 1970s. The IAF operates
six squadrons of Jaguars and is the world’s only Air Force still operating the Jaguar IS/IB/IM variants.
● It is a 3rd Generation twin-engine aircraft designed for Deep Penetration Strike Missions.
● It serves as a designated nuclear -capable platform for the IAF. India has extensively modernised its fleet through the
DARIN (Display Attack and Ranging Inertial Navigation) program, making Jaguar India's first combat aircraft with
Active Electronically Scanned Array capability.

Hawk Mk-132 jets…

Why in news: IAF’s Surya Kiran Aerobatic Team showcased breathtaking manoeuvres. Performance featured their
iconic red-and-white Hawk Mk-132 jets. The display took place at the Mysuru Dasara Air Show.
● Hawk Mk-132 is jet trainer aircraft used by the Indian Air Force (IAF) and Indian Navy for training fighter pilots.
● It is developed by BAE Systems and produced by Hindustan Aeronautics Limited (HAL) under license in India.
● The aircraft features a tandem two-seat cockpit for instructor and trainee.
● Powered by a Rolls-Royce Adour Mk 871 turbofan engine. It achieves a maximum speed of about 1,028 km/h.
● It is capable of combat roles in addition to training missions.

Falcon 2000 Civilian Planes…

Why in news: Dassault Aviation will manufacture its Falcon 2000 business jet at Nagpur in partnership with Reliance
Aerostructure Ltd (RAL). This marks the first time Dassault is producing Falcon 2000 jets outside France.
● It is also the first-ever instance of a foreign aircraft manufacturer setting up a Final Assembly Line (FAL) in India.

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● Airbus , in partnership with the Tata group , will set up an FAL for helicopters , not fixed-wing civilian aircraft.

P-81, HAPS etc…

● AoN was approved for air-ship-based high-altitude pseudo satellite (AS-HAPS). The AS-HAPS platform will be
deployed for persistent intelligence, surveillance and reconnaissance (ISR), electronic intelligence (ELINT) etc.
● DAC accorded AoN for the procurement of anti-tank mines (Vibhav) and the overhaul of vehicle platforms of
armoured recovery vehicles (ARVs), T-72 tanks and infantry combat vehicles (BMP-II).
● Navy received AoN for six additional P-8I long-range maritime reconnaissance aircraft from the U.S. P-8I will bolster
Navy’s long-range anti-submarine warfare, maritime surveillance, maritime strike capabilities.
● For the Indian Coast Guard, the AoN was granted for the procurement of electro-optical/infrared (EO/IR) systems for
its Dornier aircraft. The systems will enhance maritime surveillance.

Golden Dome…

Why in news: U.S. announced the “Golden Dome” , a $175-billion space-based missile shield.
● It aims to protect against ballistic, hypersonic, and orbital threats using a satellite constellation.
● Outer Space Treaty Article IV (1967) prohibits nuclear weapons or WMDs in orbit and military activity on celestial
bodies. It does not prohibit conventional weapons , creating a loophole exploited by the Golden Dome.
● The “peaceful purposes” clause is ambiguously interpreted — some see it as allowing non-aggressive military use ,
others demand total demilitarisation.
● Challenges UN's PAROS resolutions , though non-binding , have created a global norm against space weaponisation.
● India’s upcoming Space Activities Bill will define dual-use regulation , private participation , treaty compliance. Golden
Dome developments may influence India’s domestic legal framework for space governance.

Patriot Air Defence…

Why in news: Germany is exploring the purchase of additional Patriot air defence systems from the U.S. for Ukraine.
● Patriot stands for Phased Array Tracking Radar for Intercept on Target , developed by Raytheon Technologies (U.S.)
as an all-weather, all-altitude air defence system.
● It can intercept aircraft, ballistic missiles, cruise missiles, and loitering munitions.

THAAD…

● Terminal High Altitude Area Defence system deployed by U.S. in West Asia during conflict with Iran.
● An advanced missile defence platform developed by the United States to intercept ballistic missiles in the final stage
of flight. Can intercept missiles inside and outside the atmosphere. It counters short, medium and limited
intermediate-range ballistic missiles.
● Uses “hit-to-kill” technology (kinetic energy instead of explosives). Destroys targets through direct collision at high
speed. Reduces risk of explosive debris. Engagement range of about 150–200 km.
● Integrates with Patriot (PAC-3) and Aegis Ballistic Missile Defence.
● ( Iran reportedly destroyed AN/TPY-2 radar at Muwaffaq Salti Air Base (Jordan)).

Javelin Missiles…

Why in news: India has submitted a letter of request to the United States for the co-production of Javelin anti-tank
guided missiles (ATGMs). The move aligns with the “Make in India” initiative.
● The initiative aims to ensure operational readiness and reduce dependence on foreign support.
● Javelin missile is among the most advanced third-generation ATGMs globally.
● Javelin is jointly developed by Raytheon and Lockheed Martin , two leading U.S. defence companies.
● MPATGM (Man-Portable Anti-Tank Guided Missile) developed by DRDO also features fire-and-forget and top-attack
capabilities like Javelin.

Tomahawk…

Why in news: US President hinted he may send Tomahawk cruise missiles to Ukraine.
● US began developing Tomahawk in the early 1970s. Tomahawks first saw combat in the 1991 Persian Gulf War.

● Iron Dome is Israel’s short-range, ground-to-air defence system developed by Rafael Advanced Systems and
Israel Aerospace Industries post the 2006 Israel-Lebanon war. It uses radars , not satellites.
● ICBMs enter space during flight; hence satellite tracking and space interceptors are considered superior to
ground-based defence for such threats.
● The 1967 UN Outer Space Treaty (OST) governs peaceful use of outer space. Key principles include: No national
appropriation or sovereignty claims, No placement of WMDs in orbit, Peaceful use of celestial bodies, States liable
for space object damage and Contamination of space must be avoided.
● Artemis Accords (2020) , signed by 53 countries including India , build on OST and promote: Transparency,
Peaceful space exploration, Sharing scientific data, Responsible space behaviour through non-binding agreements.

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● Due to their long range, accuracy, and low cost compared to piloted warplanes, Tomahawks are a go-to Pentagon
weapon. Tomahawks can cover over 1,600 km.
● In cruise mode, they fly low to the ground , making them harder to detect by radar.
● They fly at nearly 900 kmph , about 70% of the speed of sound.

Typhon Missile…

Why in news: China urged Japan and the United States to withdraw the U.S.-developed Typhon missile system , which
was unveiled in Japan for the first time during joint military exercises.
● Japan and the U.S. began the “Resolute Dragon” military drills.

Oreshnik Missile…

● Russia hit Ukraine with its hypersonic Oreshnik missile. The Oreshnik ( Russian for "Hazel Tree" ) is a Russian
intermediate-range ballistic missile (IRBM) designed to carry multiple warheads (MIRV).

Burevestnik Missle…

Why in news: Russia announced a successful final test of a new nuclear-powered cruise missile , the Burevestnik.
● Burevestnik has “unlimited range”. During the last test, the missile flew for some 15 hours , travelling 14,000 km. This
was not the upper limit for the weapon.

Astra Missile…

Why in news: DRDO and IAF successfully conducted the flight-test of the indigenous beyond visual range air-to-air
missile (BVRAAM) ‘Astra’ from an Su-30 fighter jet.
● The missile is equipped with an indigenous radio frequency seeker.
● Uses three-stage guidance system: Initial Inertial guidance. Mid-course: Datalink updates from the mother aircraft.
Terminal: Indigenous Active Radar Homing or Radio Frequency Seeker that allows for 'Fire and Forget' capability.

Agni-Prime Missile…

Why in news: The DRDO and the Strategic Forces Command (SFC) successfully test-fired the Intermediate Range
Agni-Prime missile. The test was conducted from a rail-based mobile launcher under full operational conditions.
● The Agni-Prime is a next-generation missile with a range of up to 2,000 km.
● The missile features advanced technologies and was launched for the first time from a specially developed rail-based
system. It allows rapid, low-visibility deployment and offers cross-country mobility.

Akash Prime Missile…

Why in news: Army successfully conducted trials of the indigenously developed Akash Prime air defence system in
eastern Ladakh at an altitude of over 15,000 feet.
● Akash Prime is the latest version of the Akash medium-range surface-to-air missile system.
● Also confirmed successful test-firing of Prithvi-II and Agni-I short-range ballistic missiles from Chandipur, Odisha.

Long-range Missiles…

Why in news: After Operation Sindoor , the IAF is prioritising induction of air-to-ground and air-to-air missiles with
strike ranges exceeding 200 km.
● The aim is to engage targets from beyond reach of enemy air defence. During operation, IAF used BrahMos, SCALP,
Rampage, and Crystal Maze missiles , striking targets from 250–450 km , bypassing Chinese HQ-9 air defence.

● IAF is interested in acquiring the Russian R-37 missile , with a range of over 200 km.
● IAF is pressing for rapid progress on Project Kusha , indigenous long-range air defence missile system.
● Plans to procure 2 squadrons of Russian S-400 Triumf systems.

Multi-layered Defence…

Why in news: DRDO successfully conducted maiden flight tests of the Integrated Air Defence Weapon System.
● The IADWS is a multi-layered system comprising Quick Reaction Surface-to-Air Missiles ( QRSAM ), Advanced Very
Short Range Air Defence System ( VSHORADS ), and a laser-based Directed Energy Weapon ( DEW ).

● Army will establish Rudra brigades — all-arms brigades with UAVs and logistical elements. This will involve
restructuring infantry, armoured, and artillery brigades , allowing Rudra brigades to function as independent
integrated units for future warfare.
● Divyastra artillery batteries are being created with next-generation long-range guns and loitering munitions.
Divyastra batteries will have anti-drone systems for self-defence and area protection.

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Pralay and Akash Prime Missiles…

Why in news: DRDO conducted two consecutive successful tests of Pralay from Dr APJ Abdul Kalam Island, Odisha.
Pralay:
● Pralay is indigenously-developed solid propellant quasi-ballistic
missile with state-of-the-art guidance and navigation ensuring high
precision.
● The missile is capable of carrying multiple types of warheads.
● Developed by Research Centre Imarat (Hyderabad) in collaboration
with three Pune-based DRDO facilities — ARDE, HEMRL, R&DE.
● Ballistic Missiles : Powered initially, then follow a gravity-driven arch.
● Quasi-ballistic missiles : Have low trajectory, follow ballistic path but
can change course and maneuver during flight.
Akash Prime missile:
● Upgraded variant of Akash was successfully tested in Ladakh.
● Initial version of Akash : 27–30 km range , flight altitude of ~18 km.
● Akash Prime : Same range but with indigenous active RF seeker for improved accuracy.
● Enhancements ensure reliable performance in low-temperature high-altitude environments (>4,500 m).
● Akash (meaning sky): short-to-medium range surface-to-air missile , designed to provide air defence cover.
● The system can simultaneously engage multiple targets & has ECCM features to counter electronic deception.
Feature Ballistic Missiles Cruise Missiles

Motion/Path Use projectile motion , parabolic trajectory Fly low and parallel to ground , not parabolic

Power Phase Powered briefly , then under laws of physics Continuously powered by jet engines

Platforms Mostly land and sea-based Can be launched from ground, air, sea

Tracking Easier to track due to predictable trajectory Harder to detect , can maneuver and evade

Warhead Can carry nuclear or conventional warheads Generally conventional , can carry nuclear

Examples Agni I, Agni II, Prithvi I, Prithvi II, Dhanush BrahMos, Tomahawk, Kalibr, AGM-86 ALCM

Agni-5 missile…

Why in news: India successfully test-fired its intermediate-range ballistic missile Agni-5.
● The missile tested was a variant of Agni-5 , India’s indigenously developed ICBM with a range of 5,000 km.
● Agni-5 was designed by DRDO , keeping in view India’s long-term security requirements.
● The previous trial in 2024 , successfully tested Agni-5 equipped with MIRV (Multiple Independently Targetable
Re-entry Vehicle) technology , enabling it to strike multiple targets with a single launch.

ATACMS Missiles…

● Ukraine’s military said it had attacked military targets in Russia with U.S.-supplied ATACMS missiles.

NASAMS Air Defence Missile System…

● The United States approved sale of RTX-made NASAMS air defence systems to Taiwan.

Akash Missile…

● DRDO has successfully completed trials of Akash–New Generation (Akash-NG) for IAF.
● Development of Akash , a short to medium range surface-to-air missile , began in the late 1980s under the Integrated
Guided Missile Development Programme led by Dr APJ Abdul Kalam.
● Akash weapon system can engage multiple targets simultaneously in group or autonomous mode and has electronic
counter-counter measures (ECCM).
● In 2020 , Cabinet approved Akash for exports ; the export version will differ from systems used by Indian forces.
● The NG version has a range of up to 70 km , a sleeker and lighter profile , and a smaller ground system footprint.
● Akash Prime variant has same range as the earlier version but includes an indigenous active RF seeker for improved
accuracy. All systems were designed by DRDO laboratories with Indian industry support.

Scramjet Combustor Test…

● The DRDO has successfully conducted an extensive long-duration ground test of its Actively Cooled Scramjet Full
Scale Combustor at the state-of-the-art Scramjet Connect Pipe Test (SCPT) facility.

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● The trial achieved a path-breaking milestone in the development of hypersonic missile technology i.e. capable of
exceeding five times the speed of sound or over 6,100 kilometres per hour for extended periods.
● The speed is achieved through a cutting-edge air-breathing engine , which utilises supersonic combustion.
● Mach number (M) = Object speed ÷ Speed of sound Speed of sound in air ≈ 343 m/s at sea level.
● Subsonic: M < 1 Speed less than sound. Smooth airflow. Example: Commercial aircraft.
● Transonic: M ≈ 0.8–1.2 Near speed of sound. Mixed subsonic + supersonic airflow.
● Sonic: M = 1 Exactly speed of sound. Supersonic: M = 1–5 Faster than sound. Example: Fighter jets.
● Hypersonic: M ≥ 5. Example: Missiles, space re-entry vehicles.

Solid Fuel Ducted Ramjet (SFDR) Technology
● DRDO demonstrated Solid Fuel Ducted Ramjet (SFDR) technology, capability for the development of long-range
air-to-air missiles that enhance combat effectiveness.
● Unlike traditional solid-propellant rockets that burn out quickly, SFDR uses a ramjet engine that breathes air. This
allows the missile to maintain supersonic or hypersonic speeds throughout its flight.
● By conserving energy and sustaining high speed until the very end of its trajectory, it significantly increases the
"No-Escape Zone," making it nearly impossible for enemy aircraft to out-manoeuvre the missile.

Suryastra…

● Army has signed a contract with the private defence manufacturer NIBE Ltd., in collaboration with Israel , for the
supply of an advanced long-range rocket launcher system with strike capabilities of 150 km and 300 km.
● The system, Suryastra, is India’s first Made in India universal multi-calibre rocket launcher, capable of executing
precision surface-to-surface strikes at ranges up to 300 km.
● Under the EP provisions , the armed services can procure weapons systems worth up to ₹300 crore on an urgent basis
without any further clearances.

MPATGM…

● DRDO flight-tested the indigenously developed 3rd-generation fire-and-forget man portable anti-tank guided missile
(MPATGM) with top-attack capability against a moving target in the K.K. Ranges in Ahilya Nagar, Maharashtra.
● It incorporates cutting-edge indigenous technologies, including an imaging infrared (IIR) homing seeker.

HAMMER…

● State-owned BEL and French Safran signed an agreement for production of HAMMER smart precision Guided
air-to-ground weapons in India. Also known as a glide bomb , HAMMER precision-guided munitions have a range of
up to 70 km and can be fitted to 250kg, 500kg and 1,000kg standard bombs.

NAMIS & GBMES…

Why in news: Defence Acquisition Council (DAC) chaired by Defence Minister approved capital acquisition proposals
worth around ₹79,000 crore aimed at strengthening the operational capabilities of the Army, Navy, and Air Force.
● For the Army , the DAC accorded Acceptance of Necessity (AoN) for the procurement of the Nag missile system
(tracked) Mk-II (NAMIS). It is indigenous "tank killer" for the Indian Army, a "Fire-and-Forget" Anti-Tank Guided
Missile (ATGM) developed by DRDO under the Integrated Guided Missile Development Programme (IGMDP).
● The Army will also procure the ground-based mobile ELINT System (GBMES). It will provide round-the-clock
electronic intelligence on enemy emitters.

Iran-USA Weapons in News…

● Iran’s True Promise: Fattah, Sejjil-2, Kheibar (Khorramshahr-4), Haj Qasem and Kheybar Shekan.
● US’ Epic Fury: Tomahawk, Precision Strike Missile (PrSM), JASSM-ER, Trident II and LRASM.
● US’s aircraft carrier USS Abraham Lincoln approached by Shahed-139 drone of Iran. USS Gerald R. Ford (CVN-78)
and USS George H.W. Bush (CVN-77) were also in news.

Water Based Weapons…

Arnala, ASW-SWC…

Why in news: Navy commissioned its Anti-Submarine Warfare Shallow Water Craft, Arnala.
● Navy targets a 175-ship force by 2035 , moving closer to full indigenisation in warship building , enabling faster
commissioning timelines.
● INS Vagsheer , 6th Kalvari-class submarine under Project 75 , was commissioned in 2025. It is a diesel-electric
submarine designed for silent coastal patrols.
● Project 75I , which aims to build six advanced conventional attack submarines , is currently in the staff evaluation
and cost negotiation phase.

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● This will mark formal induction of first of 16 ASW-SWC-class ships into the Navy. Arnala is designed & constructed
by GRSE, Kolkata , in partnership with L&T Shipbuilders.
● Has more than 80% indigenous content , showcasing India's self-reliance in defence manufacturing.
● Arnala is equipped for subsurface surveillance, search and rescue missions, and low-intensity maritime operations.
● 77-metre-long warship with gross tonnage of over 1,490 tonnes is largest Indian warship propelled by diesel
engine-waterjet combination.
● INS Androth , 2nd in a series of 8 ASW-SWC built by Garden Reach Shipbuilders & Engineers, Kolkata, has over 80%
indigenous content.

Adamya…

Why in news: Coast Guard ship Adamya , 1st in series of 8 Adamya-class fast patrol vessels , was commissioned.
● The 51-metre-long vessel was designed and built by Goa Shipyard Limited.
● The ship has over 60% indigenous content , showcasing progress under the Make in India initiative.

Stealth Frigate INS Tamal…

Why in news: Indian Navy commissioned INS Tamal (F71), a stealth multi-role frigate, at Kaliningrad in Russia.
● INS Tamal , 2nd Talwar (Project 1135.6) stealth frigate under 2016 Indo-Russia agreement. Deal with Russia involving 4
frigates— two built in Russia , and two at Goa Shipyard Limited with technology transfer.
● Its sister ship, INS Tushil , was commissioned in 2024 at Russia’s Yantar Shipyard and arrived in India in 2025.
● It will be last warship built outside India and eighth Krivak-class frigate inducted from Russia in two decades.
● Under the Tushil-class contract , India is also building two similar frigates (Triput class) at Goa Shipyard Ltd. with
Russian technology and design assistance.
● Upon completion, the Indian Navy will operate 10 ships with similar capabilities , spanning four different classes.
● Armaments include the BrahMos long-range cruise missile , capable of targeting both at sea and land.
● Upon commissioning, INS Tamal will join the Western Fleet , known as the “Sword Arm” of the Indian Navy.

INS Tabar…

Why in news: INS Tabar , an Indian Navy stealth frigate , responded to distress call from Palau-flagged MT Yi Cheng 6.

INS Udaygiri & INS Himgiri…

Why in news: Defence Minister commissioned 2 Project 17A stealth frigates — INS Udaygiri and INS Himgiri — at the
Eastern Naval Command base, Visakhapatnam.
● Udaygiri is the second of the seven Project 17A (P-17A) frigates under construction at Mazagon Dock Shipbuilders
Ltd. (MDSL), Mumbai and Garden Reach Shipbuilders and Engineers, Kolkata.
● These multi-mission frigates can operate in a ‘blue water’ environment , countering both conventional and
non-conventional threats in India’s maritime interests.
Project 17A: Next-Gen Stealth Frigates
● Follow-on class of the Shivalik-class (Project 17) frigates with improved stealth, sensors, and weapons.
● Designed by the Warship Design Bureau (WDB) , overseen by Warship Overseeing Teams.
● Equipped with: CODOG propulsion system (Combined Diesel or Gas), Integrated Platform Management System,
Advanced Indian-made weapons and sensors.
INS Himgiri
● Third ship of Nilgiri-class (Project 17A) , built by GRSE, Kolkata.
● Inspired by the erstwhile INS Himgiri (Leander-class) , decommissioned in 2025 after 30 years of service.
● Showcases ergonomic design and modern stealth features.
INS Udaygiri
● Marks the 100th indigenously designed vessel — celebrating 50 years of Indian warship design.
● Joins heritage of earlier INS Udaygiri with enhanced combat capabilities.
● Both ships feature ~75% indigenous content , supported by 200+ MSMEs.

INS Guldar…

Why in news: INS Guldar , a decommissioned Navy warship , will be scuttled (deliberately sunk) to create an artificial
reef and underwater tourist attraction. It will be India’s first underwater museum.
● Scuttled ships have been used worldwide for artificial reefs , but this is the first attempt in India. Scuttling is usually a
wartime tactic : deliberate sinking of a vessel to prevent enemy capture or in emergencies.
● Archimedes Principle refers to the law of buoyancy (ability of an object to float in fluids). If buoyant force > weight →
object rises. If buoyant force < weight → object sinks. If buoyant force = weight → object remains in equilibrium.
● INS Guldar is a Kumbhir-class landing ship designed for amphibious warfare and capable of beach landings.
● It was part of India’s peacekeeping mission in Sri Lanka.
● Built at Poland’s Gdynia Shipyard , commissioned in the Indian Navy in 1985.

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INS Nistar…

Why in news: Navy commissioned the first indigenously designed and constructed diving support vessel.
● 75% indigenous , 118-metre ship is the first of two diving support vessels being built by Hindustan Shipyard Ltd.
● It is designed to undertake complex deep sea saturation diving and rescue operations , a capability only select navies
possess globally.
● Currently, all 57 new warships in pipeline are being constructed indigenously.
● It can undertake diving and salvage operations up to 300 metres depth.
● Nistar’s sister ship Nipun was launched in 2022.
● The DSVs support deep-sea diving and submarine rescue operations , enhancing India’s operational preparedness
and strategic maritime posture.
● The original INS Nistar was a submarine rescue vessel from the Soviet Union (1969), commissioned in 1971 , and
served till 1989. It has an endurance of 60+ days , far larger than its 800-tonne predecessor.
● Nistar will act as mothership for Deep Submergence Rescue Vehicle ; India bought two DSRVs from UK.
● It can carry a 15-tonne subsea crane , support helicopter operations , and has an operation theatre, ICU, and
eight-bedded hospital.
● Nistar will serve as the DSRV mothership on the Eastern Seaboard (Visakhapatnam), and Nipun will serve on the
Western Seaboard (Mumbai).
● Participating in biennial Exercise Pacific Reach 2025 (XPR 25) in Singapore. It involves more than 40 nations.

Extended Range Anti-Submarine Rocket…

Why in news: India successfully tested the indigenous anti-submarine rocket system ERASR.
● Extended Range Anti-Submarine Rocket is indigenous weapon designed to combat submarines.
● The system uses an indigenously developed Electronic Time Fuze for precise detonation.
● Designed and developed by DRDO’s Armament Research & Development Establishment (ARDE), Pune.

Khabarovsk…

● Russia has launched its newest nuclear submarine ‘Khabarovsk’ , intended to carry the Poseidon nuclear drone.
● Poseidon, often described as a ‘doomsday missile’ , is reportedly capable of devastating coastal nations.

INS Ikshak…

● Third vessel of Survey Vessel Large (SVL) class , INS Ikshak , commissioned into Navy at Naval Base in Kochi.
● Marks a significant step in strengthening India’s hydrographic survey and maritime operational capabilities.
● INS Ikshak is first SVL designed with dedicated women’s accommodation.

Fujian…

● China has commissioned its latest aircraft carrier. Fujian was commissioned at a naval base on Hainan island.
● The Fujian is China’s third carrier and the first that it both designed and built itself.
● Goal is to dominate the South China Sea, East China Sea and Yellow Sea around the First Island Chain (Strategic arc
from Japan through Taiwan to the Philippines, forming a barrier off China's coast).
● China wants to control the Second Island Chain (extends further east, including Japan's Bonin Islands, Guam, the
Marianas, Palau, and New Guinea, serving as a secondary defensive line and projection point into the Pacific,
significant in the U.S.-China strategic competition), where the U.S. has important military facilities.
● China’s first carrier, the Liaoning , was Soviet-made , and the second, the Shandong , was built in China but based on
the Soviet model. Both earlier carriers use ski-jump type systems to help planes take flight.
● The carrier skips past the steam catapult technology used on most American carriers. It employs an electromagnetic
launch system found only on the latest U.S. Navy Ford-class series. The new system allows for more precise control
over speed. China has three carriers compared to the U.S. Navy’s 11.
● China’s carriers are conventionally powered , while the U.S. carriers are nuclear powered , allowing them to operate
almost indefinitely without refuelling , increasing their range.

INS Mahe…

● Navy commissioned INS Mahe , the first Mahe-class anti-submarine warfare shallow water craft , in Mumbai.
● It represents Aatmanirbhar Bharat in defence with 80%+ indigenous content , built by Cochin Shipyard..
● INS Mahe’s motto is ‘Silent Hunters’ , reflecting its stealth and readiness. It is the lead ship of eight vessels in its class.
The vessel is specially designed for anti-submarine operations in coastal and shallow waters.

Anjadip…

● Navy received Anjadip , the third of eight ASW SWCs , indigenously designed and built by GRSE.
● The ASW SWC project is executed under a public-private partnership between GRSE and L&T Shipyard.
● ASW SWCs are about 77 metres long and are the largest Indian naval warships propelled by waterjets.

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● Anjadip is named after Anjadip Island near Karwar, Karnataka , and reincarnates the erstwhile INS Anjadip ,
decommissioned in 2003. With this, GRSE delivered five warships in a single year.

INS Taragiri Commissioned…

● Indigenous stealth frigate , the fourth ship of Nilgiri Class (Project 17A) and the third built by Mazagon Dock
Shipbuilding Ltd (MDL) , was delivered to the Indian Navy on 28 Nov 2025. It is built under the codename Project 17A ,
a follow-on vessel of the Shivalik class or Project 17 frigates that are currently in service.
● Ships are fitted with a supersonic surface-to-surface missile system , a Medium Range Surface-to-Air Missiles
(MRSAM) system , a 76 millimetre upgraded gun , and a combination of rapid-fire close-in weapon systems.

Nuclear Attack Submarines (SSN) & SSBN…

● Design of first SSN is expected to take another 5 years , leveraging experience from ballistic nuclear missile
submarine (SSBN) programme.
● India previously leased 2 SSNs, INS Chakra I & II , from Russia. A third leased SSN is expected to be delivered by
2027-end. SSNs provide unlimited endurance. CCS approved indigenous construction of 2 SSNs.
● India currently operates 3 SSBNs : INS Arihant commissioned in 2016 , INS Arighaat commissioned in 2023. The third
SSBN, INS Aridhaman (S4) commissioned in 2026. The SSN and SSBN programmes are vital for India's nuclear triad.
INS Arighaat successfully fired a Submarine Launched Ballistic Missile (SLBM of 750km).
● India’s fourth nuclear-powered ballistic missile submarine (SSBN) , referred to as S4* was launched at Ship Building
Centre in Visakhapatnam. S4* carries advanced 3,500 km range SLBM K-4. The K-4 will be the mainstay of India’s
undersea nuclear deterrence as it provides standoff capability, to launch nuclear weapons while submerged in Indian
waters, till a 5,000 km range SLBM is developed and fielded.

Samudra Pratap Vessel…

● Defence Minister commissioned the ICG ship Samudra Pratap , the first of two pollution control vessels, in Goa. It is
equipped with systems to detect oil spills, enabling comprehensive pollution response operations. It is capable of
recovering pollutants from viscous oil, analysing contaminants, and separating oil from contaminated water.
● It has over 60% indigenous content & is built by Goa Shipyard Limited (GSL).
● It is the largest ship in the Coast Guard’s fleet so far.
● In a notable first, Samudra Pratap will have two women officers aboard.

ICG Ship Sarthak…

● Indian Coast Guard Ship Sarthak , an offshore patrol vessel , entered Chabahar port for a four-day visit.
● It marks the first-ever visit of an Indian Coast Guard ship to Chabahar.
● The visit is aligned with India’s SAGAR and MAHASAGAR vision.

INS Vaghsheer…

● President undertook a dive sortie aboard the Indian Navy’s submarine INS Vaghsheer on the western seaboard.
● She embarked on the indigenous Kalvari-class submarine at the Karwar Naval Harbour in Karnataka.
● She became only second President of India to undertake a sortie aboard a submarine after A.P.J. Abdul Kalam. She is
the only president to sortie aboard Rafale and Sukhoi.
● The sortie reflected dedication in accordance with the motto ‘Veerta Varchasva Vijaya’.

Nuclear Weapons…

French Nuclear Umbrella…

Why in news: French President expressed openness to stationing French nuclear weapons in other European countries.
● Nuclear sharing allows nuclear-armed states to station weapons in non-nuclear allies’ territory with specific
peacetime arrangements. Within NATO , U.S. deploys B61 tactical nuclear bombs in Belgium, Germany, Italy, the
Netherlands, and Turkiye.

● Indian Ocean Ship (IOS) Sagar is an initiative towards continued cooperation with IOR nations. One Indian Naval
ship ( INS Sunayna ) is being deployed to the Southwest IOR with a combined crew of India and nine Friendly
Foreign Countries. The countries include Comoros, Kenya, Madagascar, Maldives, Mauritius, Mozambique,
Seychelles, Sri Lanka and South Africa.
● A large scale multilateral maritime engagement exercise with African countries titled ‘Africa India Key Maritime
Engagement (AIKEYME)’ is an initiative to enhance interoperability with navies/maritime agencies.
● AIKEYME means ‘Unity’ in Sanskrit.
● The maiden edition of the exercise was co-hosted by the Indian Navy and Tanzania Peoples’ Defence Force.
● (Cutlass Express is annual multinational maritime exercise in East Africa and the Western Indian Ocean).

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● France has an estimated 290 nuclear warheads , delivered via submarine-launched ballistic missiles and
Rafale-jet-launched cruise missiles.
○ Russia’s own 2023 tactical nuclear deployment in Belarus is cited as a precedent in this escalation cycle.
● 1968 Nuclear NPT prohibits transfer of nuclear weapons or control to non-nuclear states (Article I). NATO’s nuclear
sharing is justified as NPT-compliant since legal control remains with the nuclear state during peacetime.

Technology Perspective and Capability Roadmap…

Why in news: Plan to reinforce nuclear deterrence and expand drone warfare capabilities under the Technology
Perspective and Capability Roadmap (TPCR-2025) , a 15-year blueprint for military preparedness.
● The document highlights measures to sustain credible nuclear deterrence.
● While it avoids reference to specific warhead technologies , it outlines future acquisitions such as nuclear
command-and-control infrastructure , radiation detection tools , and mobile decontamination units.
● Unmanned ground vehicles for chemical, biological, radiological and nuclear (CBRN) reconnaissance are also on the
agenda, aimed at strengthening protection against potential nuclear or chemical fallout.
● TPCR-2025 envisages adaptive jamming systems and electronic denial bubbles.

Nuclear Warheads…

Why in news: All nine nuclear-armed countries continued nuclear modernisation in 2024 by upgrading weapons and
adding new delivery systems, according to SIPRI's 2025 report.
● India slightly expanded its arsenal and developed new canisterised missiles capable of carrying nuclear warheads.
● Pakistan also advanced its delivery systems and increased fissile material stock.
● India’s stored warheads increased to 180 in 2025 from 172 in 2024, while Pakistan’s remained at 170.
● United States has 1,770 deployed and 1,930 stored warheads with a total inventory of 5,177 in 2025.
● Russia has 1,718 deployed and 2,591 stored warheads with a total inventory of 5,459.
● China’s inventory rose to 600 warheads in 2025 from 500 in 2024, with 24 deployed and 576 stored.
● Global nuclear inventory stands at 12,241 warheads , of which 9,614 are in military stockpiles and 3,912 are deployed.

Military Exercises…

Golden Dragon…

Why in news: Cambodia and China began their largest-ever joint military exercises, Golden Dragon 2025.

Nomadic Elephant…

Why in news: Military contingents of India and Mongolia are participating in 17th edition of the bilateral exercise in
Ulaanbaatar. The exercise focuses on exchanging best practices in counter-terrorism operations and precision sniping.
● Conducted alternately in India and Mongolia every year. The last edition was held at Umroi, Meghalaya, in 2024.
● Exercise emphasizes non-conventional operations in semi-urban and mountainous terrain under a UN mandate. Key
features include simulated UN peacekeeping operations designed to mirror real-world multinational scenarios.

Khaan Quest…

Why in news: The Indian Army contingent arrived in Ulaanbaatar, Mongolia to participate in the multinational military
exercise “Khaan Quest”. The annual exercise was initiated in 2003 between the U.S. and Mongolia.
● It evolved into a multinational endeavour from 2006 , bringing together military forces from across the globe.
● The exercise aims to collaborate and enhance peacekeeping capabilities of participating nations.

Shakti…

Why in news: An Indian Army contingent departed for France to participate in the 8th edition of Exercise Shakti.
● Exercise Shakti is a biennial Indo-French military exercise. The aim is to enhance interoperability , operational
coordination , and military-to-military engagement.

● The SIPRI Yearbook 2025 provides an overview of international security , weapons and technology , military
expenditure , arms production and trade , and armed conflicts and conflict management.
● It also covers global efforts to control conventional , nuclear , chemical , and biological weapons.
● 2025 marks the 80th anniversary of the only wartime use of nuclear weapons —the bombings of Hiroshima (6
August 1945) and Nagasaki (9 August 1945).

● On International Day of UN Peacekeepers , Brigadier General Amitabh Jha (UNDOF) and Havildar Sanjay Singh
(MONUSCO) were honoured with the Dag Hammarskjold medal.
● The theme for this year’s International Day of UN Peacekeepers is ‘Future of Peacekeeping’.
● The theme emphasizes that the ‘Pact for the Future’ , adopted by world leaders last year , includes a commitment
to adapt peacekeeping to the changing world.

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Achook Prahar…

Why in news: Troops of the Indian Army’s Spear Corps and ITBP undertook 4 days of firepower drills under simulated
battlefield conditions in central Arunachal Pradesh.

Bright Star…

Why in news: Multilateral exercise hosted by Egypt in conjunction with the US since 1980 , and is one of the largest
Tri-Service multilateral exercises in the region. Held biennially , with the last edition in 2023 , which included India
among participating nations.

Bold Kurukshetra…

Why in news: 14th Edition of India–Singapore Joint Military Exercise held as Table Top Exercise and Computer-Based
Wargame. It aims to validate operational procedures for mechanised warfare between the two armies.

SIMBEX…

Why in news: The Indian Navy participated in the 32nd Singapore-India Maritime Bilateral Exercise held in Singapore.
The exercise originated as “Exercise Lion King” in 1994.
● Annual naval exercise , one of India’s longest uninterrupted maritime drills. The exercise aligns with India’s Vision
SAGAR (Security and Growth for All in the Region) and the Act East Policy.

Talisman Sabre…

Why in news: Australia’s largest multilateral military exercise held in Sydney.
● It began in 2005 as a biennial joint exercise between the U.S. and Australia. It involves 19 nations and over 35,000
military personnel participating across land, sea, air, space, and cyberspace domains.
● Major participants include the U.S., Canada, France, Germany, India, Indonesia, Japan, New Zealand, Norway, and the
U.K. Observers of the exercise are Malaysia and Vietnam.
● Features live-fire drills, field training activities, amphibious landings, ground manoeuvres, air-maritime operations.
● Australia launched missiles from its M142 HIMARS during live-fire exercises at the Shoalwater Bay Training Area in
Queensland. The HIMARS launchers were recently acquired from the United States.
● For the first time , Talisman Sabre activities are being held outside Australia , including in Papua New Guinea.
● Papua New Guinea , Australia’s nearest neighbour , is a new location for the drills.

Jaa Mata…

Why in news: Japanese Coast Guard ship Itsukushima arrived in Chennai for the joint exercise “Jaa Mata”.
● Jaa Mata is a bilateral sea exercise between the Japan Coast Guard and the Indian Coast Guard.

National Cybersecurity Exercise (Bharat NCX 2025)…

● Conducted by National Security Council Secretariat (NSCS) in collaboration with Rashtriya Raksha University (RRU),
Gandhinagar, Gujarat. Theme: "Enhancing the Operational Preparedness of Indian Cyberspace".

SLINEX…

Why in news: INS Rana (Guided Missile Destroyer) and INS Jyoti (Fleet Tanker) arrived at Colombo for the 12th edition
of Sri Lanka–India Naval Exercise. Bilateral naval exercise between India and Sri Lanka , initiated in 2005.

MILMEDICON…

Why in news: Minister of State for Defence inaugurated “MILMEDICON-2025” , an international conference on physical
and mental trauma in military settings at Manekshaw Centre, New Delhi; focusing on trauma care, AI in military
medicine, and the centenary of Military Nursing Service.

Indian Ocean Naval Symposium…

Why in news: Emerging leaders panel discussion under aegis of IONS was held at Southern Naval Command, Kochi.
● 19 member-countries participated, providing a platform for young naval leaders to exchange ideas and deliberate on
maritime cooperation in the Indian Ocean Region.
● It is a voluntary initiative launched by the Indian Navy in 2008 to enhance maritime cooperation and security.
● The forum comprises 25 member states and 9 observer countries , grouped into four sub-regions — South Asian,
West Asian, East African, and South East Asian & Australian littorals.
● IONS meetings are held biennially , and chairmanship rotates every two years among members.
● India will chair IONS from 2025 to 2027. Key focus areas include Humanitarian Assistance & Disaster Relief (HADR) ,
capacity building , counter-piracy , and maritime crime control through joint exercises and dialogue.

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Exercise Siam Bharat…

● IAF conducted an in-situ bilateral exercise with the Royal Thai Air Force in the Indian Ocean Region, aimed at
strengthening military cooperation and enhancing operational synergy.
● Air combat training exercise featured IAF’s Su-30MKI multirole fighter aircraft & RTAF’s SAAB Gripen jets.
● IAF’s IL-78 mid-air refuelling tankers enabled extended-range maritime operations. (IL-76: Airlifter).

Vajra Ghaat…

● K-9 Vajra tanks showcased their artillery capabilities during the ‘Vajra Ghaat’ exercise, conducted by the Southern
Command's White Tiger Division in the Pokhran Field.

Maritime Security Belt 2026
● Iran and Russia conducted naval manoeuvres in the Sea of Oman (bordered by four nations: Oman to the south and
southwest, UAE to the west, Iran to the north, and Pakistan to the east/northeast), alongside China in February.

International Fleet Review & MILAN…

● International Fleet Review (IFR) and MILAN-2026 held in Visakhapatnam.
● India-US exercises include Malabar, MILAN, RIMPAC etc.
● Both Navies operate P-8I aircraft and MH-60R helicopters, which are capable of anti-submarine warfare.
International Fleet Review (IFR):
● IFR third edition hosted by India after Mumbai (2001) and Visakhapatnam (2016).
● Conducted off the Visakhapatnam coast by the Indian Navy on behalf of President.
● Featured participation from 74 countries (including US, Russia, Iran). Included around 19 foreign warships. Included
Indian platforms like INS Vikrant , destroyers and submarines.
● Exclusions: China, Pakistan, Turkiye.
● Serves as a major maritime diplomacy tool. Demonstrates naval capabilities , fosters global cooperation , and signals
India's strategic maritime resolve. Integrated into MILAN 2026 events.
● Highlighted interoperability and India’s indigenous shipbuilding prowess under Act East Policy.
MILAN-2026:
● It is a biennial multilateral naval exercise conducted by the Indian Navy.
● It was the 13th edition held at Visakhapatnam under the Eastern Naval Command. It is the largest ever edition with
74 nations. Theme: “Camaraderie, Cooperation and Collaboration”.
● Includes Harbour Phase with seminars and exchanges. Includes Sea Phase with ASW, air defence and SAR
exercises. The Sea Phase involved 42 ships, submarines and 29 aircraft.
● Showcases indigenous assets like INS Vikrant and Visakhapatnam-class destroyers.
● MILAN is biennial since 1995. The first edition had 8 nations. Participation grew to 61 nations by MILAN-24.
● Members/Participants: 74 nations including ASEAN countries, Quad partners US, Japan, Australia, and Russia.
RIMPAC (Rim of the Pacific):
● It is the world's largest multinational maritime exercise. It is led by the US Navy's Pacific Fleet in Hawaii. It focuses
on interoperability among Indo-Pacific navies. It is a biennial event since 1971.
● Participation from 29 nations including US, Australia, Canada, India and Japan.
● Phases: Harbour Phase includes planning, seminars and visits. Followed by Sea Phase including live-fire, ASW, air
defence, amphibious operations and cyber exercises.
● India's participation since 2014. India deployed INS Shivalik in 2024.
● Participation aligns with SAGAR doctrine and Quad objectives.
● RIMPAC 2024 Theme: “Partners: Integrated and Prepared”. China was excluded.
● RIMPAC 2026: 30th edition planned for mid-2026 in Hawaii. Aims to address Indo-Pacific maritime challenges.

LAMITIYE-2026…

● 11th edition of the India–Seychelles Joint Military Exercise conducted at the Seychelles Defence Academy.
● The exercise marks the first tri-services edition. The training focuses on enhancing interoperability in
sub-conventional operations in semi-urban environments.
● The focus is particularly within the framework of United Nations peacekeeping missions.

Yudh Kaushal 3.0…

Why in news: The Indian Army conducted exercise in the high-altitude Kameng region of Arunachal Pradesh.
● The exercise showcased preparedness for next-generation warfare in extreme Himalayan conditions.
● A major highlight was the operational debut of the newly raised ASHNI platoons , integrating advanced technology
with traditional combat skills for decisive battlefield advantage.

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Zapad…

Why in news: Russia and Belarus began major joint military drills named ‘Zapad’.
● The 2025 edition of Zapad is the first to be held during the Russia-Ukraine conflict.
● Russia announced that it had fired a Zircon hypersonic cruise missile at a target in the Barents Sea (Norway & Russia)
during ongoing military exercises.
● India, Iran, Bangladesh, Tajikistan, and African nations including Burkina Faso, Mali, Niger, and DRC took part. China
and Pakistan attended as observers.

21st Yudh Abhyas…

Why in news: 21st edition of Yudh Abhyas , the annual joint military exercise between India and the USA , was held.
● Madras Regiment trained with US soldiers.
● In 2024 , India and the US signed a Security of Supply Arrangement (SOSA) and a Memorandum of Agreement
regarding the Assignment of Liaison Officers , strengthening defence and security cooperation.
● Logistics Exchange Memorandum of Agreement (LEMOA) – 2016
● Communications Compatibility and Security Agreement (COMCASA) – 2018
● Basic Exchange and Cooperation Agreement (BECA) – 2020

Cold Start…

Why in news: The Army, Navy, and Air Force will conduct a joint exercise to test drones and counter-drone systems.
The exercise, named “Cold Start” , is likely to be held in Madhya Pradesh. The exercise “Cold Start” underscores India’s
focus on drone warfare, technological adaptation, and integrated air defence.

Konkan-25…

Why in news: UK’s Carrier Strike Group commenced Exercise Konkan-25 with Navy in the Western Indian Ocean.
● The four-day maritime drill aims to enhance combined maritime and air capabilities between the two navies.
● Exercise Konkan , first held in 2004 , has traditionally been a biennial engagement.
● This edition marks the first-ever exercise involving the CSG of both nations.
● Operation Highmast is a multinational deployment led by the U.K. CSG. Norway, Canada, Spain, Australia, India, Japan,
United States, Italy, France, New Zealand, Portugal, Malaysia, Singapore took part.

Tri-services Exercise Trishul
● Led by the Indian Navy , with participation from the Indian Army and the Indian Air Force , the large-scale 12-day joint
drills will take place across the creek and desert sectors of Rajasthan and Gujarat.
● The drills will include extensive maritime operations , such as amphibious landings using INS Jalashwa and Landing
Craft Utility vessels , carrier operations , and air-sea coordinated missions with the Air Force.
● A major focus of Trishul 2025 will be on joint intelligence, surveillance, and reconnaissance (ISR) , electronic warfare ,
and cyberwarfare , use of indigenous systems.
BRASS TACKS Exercises:
● In 1987 , exercise named Exercise BRASS TACKS IV was carried out in Punjab and Rajasthan along Pak border.
● BRASS TACKS IV was the final sequence in a series of four exercises that began in the summer of 1986.
● BRASS TACKS I and II were conducted as command post exercises to test administrative, communication, and
logistics skills of Army commanders. Gen K Sundarji , Chief of Army Staff , was the force behind this exercise.
India’s latest Joint Defence Exercises:
● Yudh Abhyas : The 21st edition of Yudh Abhyas, the annual joint military exercise of US and India, was held at Fort
Wainwright in Alaska. The exercise underlines steady strategic and defence ties despite strain in relations over
tariffs and India’s purchase of Russian oil.
● Mitra Shakti : The 10th edition of the India-Sri Lanka Joint Military Exercise ‘Mitra Shakti’ was conducted at the
Army Training School, Maduru Oya. It is an annual training event conducted alternatively in India and Sri Lanka.
The last edition was conducted in Pune.
● Passage Exercise (PASSEX) : Navy’s stealth frigate INS Tabar, a submarine, and P-8I maritime patrol aircraft
participated in a PASSEX with the United Kingdom’s Carrier Strike Group in the North Arabian Sea. The exercise
demonstrates deepening cooperation and a shared commitment to maritime security and robust bilateral ties.
● Nomadic Elephant : The 17th edition of the India-Mongolia Joint Military Exercise NOMADIC ELEPHANT is being
conducted in Ulaanbaatar, Mongolia. It is an annual event conducted alternately in India and Mongolia. The 2024
edition was conducted at Umroi, Meghalaya.
● Dustlik : The sixth edition of the India-Uzbekistan Joint Military Exercise ‘Dustlik’ is being held at the Foreign
Training Node (FTN), Aundh, Pune. Exercise Dustlik is a yearly event conducted alternatively in India and
Uzbekistan. The last edition was conducted at Termez in Uzbekistan and Pithoragarh in Uttarakhand in 2023. The
aim is to foster military cooperation and enhance combined capabilities for joint operations in varied
environments and terrains.

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EKUVERIN

● The bilateral military exercise EKUVERIN between the Indian Army and the Maldives National Defence Forces (MNDF)
concluded with a joint validation exercise in Thiruvananthapuram marking the culmination of two weeks of intensive
training.

SURYAKIRAN

● The India-Nepal joint military exercise SURYAKIRAN-XIX concluded at Pithoragarh in Uttarakhand.
● The Indian Army said the validation phase showcased joint tactics, techniques and procedures for counter-terrorism
operations mandated under Chapter VII of the UN Charter.
● This included ISR (intelligence, surveillance, and reconnaissance). It also involved synchronised mission planning and
coordinated execution of combined tactical operations in a counter-terrorism environment.

Desert Cyclone-II
● An Indian Army contingent has departed for UAE to participate in the second edition of the India–UAE Joint Military
Exercise DESERT CYCLONE–II , scheduled to be held at Abu Dhabi.
● Aim of the exercise is to enhance interoperability and further strengthen defence cooperation between the Indian
Army and the UAE Land Forces.

NATPOLREX-X

Why in news: Coast Guard and Navy conducted exercise NATPOLREX-X off Chennai coast to tackle marine oil spill
emergencies. It was organised to strengthen India’s preparedness for marine pollution response.

Samudra Pradakshina
Why in news: Defence Minister flagged off the historic tri-service all-women circumnavigation sailing expedition
“Samudra Pradakshina” from the Gateway of India, Mumbai. The expedition is the first of its kind in the world.
● 10 women officers will sail aboard the indigenously-built Indian Army Sailing Vessel (IASV) Triveni , a 50-foot yacht.
● The expedition will follow an easterly route covering nearly 26,000 nautical miles , crossing the Equator twice , and
rounding the three great Capes — Leeuwin, Horn, and Good Hope.
● Samudra Pradakshina is India’s first tri-service all-women circumnavigation sailing expedition , flagged off by
Defence Minister in 2025 from Mumbai aboard the indigenous 50-foot yacht IASV Triveni.
● Covers ~26,000 nautical miles in 9 months via an easterly route , crossing the Equator twice and rounding the
Great Capes (Leeuwin, Horn, Good Hope).
● The 10-women crew led by Lt Col Anuja Varudkar (Army) and Sqn Ldr Shraddha P Raju (IAF) showcases Nari
Shakti , jointness among Army-Navy-Air Force, and Aatmanirbhar Bharat in shipbuilding.
● Promotes military diplomacy through port calls and cultural exchanges, and conducts scientific research with NIO
on micro-plastics, ocean biodiversity, and marine health.
● Builds on prior Indian feats like Navika Sagar Parikrama (2017-18) , symbolizing women's resilience amid Southern
Ocean challenges such as Cape Horn storms.
● Cape Leeuwin: Located in Australia (Southwest tip). It is the meeting point of the Indian and Southern Oceans.
● Cape Horn: Located in Chile (South America). Known as the "Sailing Everest," it is the northern boundary of the
Drake Passage (body of water between Cape Horn (South America) and the South Shetland Islands (Antarctica)).
Drake Passage is 600-mile wide, roughly 11,000-foot deep body of water separating South America's Cape Horn
from the South Shetland Islands of Antarctica. Renowned as the "wildest stretch of ocean on Earth".
● Cape of Good Hope: Located in South Africa. Originally named the "Cape of Storms," it marks the transition between
the Atlantic and Indian Oceans.

● GARUDA: Bilateral air exercise between Indian Air Force and French Air and Space Force. VINBAX: Bilateral
army exercise between India and Vietnam. Sagar Kavach: Biannual coastal security exercise conducted by the
Indian Coast Guard to assess preparedness in handling coastal security emergencies.
● Garuda Shakti exercise between India and Indonesia Joint Special Forces held in Bakloh, Himachal.
● Exercise Harimau Shakti 2025 is the fifth edition of the joint military exercise between the Indian Army and the
Malaysian Army, held from December 5-18, 2025, at Mahajan Field Firing Range, Rajasthan. The exercise focuses
on strengthening bilateral defense cooperation, enhancing operational synergy, and conducting
counter-terrorism operations under the UN Chapter 7 mandate.
● Maitree: Annual joint military exercise between the Indian Army and the Royal Thailand Army, initiated in 2006.
14th edition took place at Umroi, Meghalaya.
● IAF participated in Exercise Ocean Sky , multinational air combat drill hosted by the Spanish Air Force at Gando
Air Base in the Canary Islands. India became the first non-NATO country to join this exercise.

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United Nations Troop Contributing Countries
● UN peacekeeping : Nearly 2,90,000 Indian personnel had served in over 50 missions across the world.
● UNTCC refers to member states that provide military, police, and civilian personnel to UN peacekeeping missions,
with over 120 nations contributing ~60,000 uniformed personnel across 11 operations.
● Top contributors include Bangladesh, Nepal, India , Rwanda , and Pakistan ; African and Asian nations dominate ,
enabling monitoring of ceasefires and peace processes.
● India has contributed nearly 300,000 troops cumulatively , the largest ever by any country.
● The UNTCC Chiefs Conclave 2025 , hosted by the Indian Army in Delhi , gathered 32 nations (e.g., India,
Bangladesh, Brazil, Egypt) to discuss challenges like asymmetric threats, interoperability etc. in peacekeeping.

Siliguri Corridor
● New establishments comprise Lachit Borphukan Military Station in Dhubri district, Assam , and forward bases at
Kishanganj (Bihar) and Chopra (West Bengal) , close to the India-Bangladesh border.
● The Tri-Shakti Corps , responsible for Sikkim and the corridor , already fields Rafale jets at Hashimara , BrahMos
missiles , and advanced air-defence systems.
● Army exercise Poorvi Prachand Prahar near the LAC in Arunachal Pradesh.
● Recently, a Pakistan Navy ship visited Chattogram port, Bangladesh , the first since 1971.

Swavlamban 2025
● Swavlamban 2025 , to be held at the Manekshaw Centre , will showcase breakthrough technologies , indigenous
innovations , and the Navy’s push for Aatmanirbharta.

Operation Pawan
● Chief of the Army Staff paid homage to soldiers who laid down their lives during Operation Pawan , the 1987 Indian
Peace Keeping Force mission in Sri Lanka.

Samudra Utkarsh - Maritime Capabilities
● Samudra Utkarsh seminar organised by Department of Defence Production , in Delhi.
● Minister invited global stakeholders to tap into India’s potential in co-building sustainable technologies and resilient
supply chains for an innovative, inclusive and secure maritime future.
● The Minister commended the private sector for RoRo ships (Roll-on/Roll-off ships are specialized cargo vessels
designed to transport wheeled cargo like cars, trucks, buses, and trailers).

Chanakya Defence Dialogue-2025
● Third edition of the Indian Army’s Chanakya Defence Dialogue-2025. It was organised by the Indian Army with the
Centre for Land Warfare Studies (CLAWS). Theme: “Reform to Transform: Sashakt, Surakshit aur Viksit Bharat”,
focusing on defence reforms for Viksit Bharat@2047.

International Fleet Review
● To reinforce the themes of being “United through Oceans” and strengthening “Bridges of Friendship”.
● India last conducted an IFR in 2001 to mark 50 years of the Republic , and the 2026 edition coincides with the 75th
anniversary. (TH mentioned that this is 2nd IFR (Link added) even as this is 3rd. IFR 2001: Held in Mumbai,
commemorating 50th anniversary of Republic. IFR 2016: Held in Visakhapatnam, saw participation from over 50
countries. IFR 2026: Held in Visakhapatnam, featuring 74 countries).
● Navy participates in nearly 20 bilateral exercises including SIMBEX (Singapore), Varuna (France), and CORPAT
(Thailand) , and multilateral engagements such as QUAD, MILAN, Malabar, and Konkan (UK).