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Distribution: weekly

  • Fast-track courts: When they can be established, where they lag

    Why in the News

    Indian Prime Minister assured to set up fast-track courts (FTCs) to try exam paper-leak cases, announced after protests by the Cockroach Janta Party (CJP) at Jantar Mantar. A draft Bill on paper leaks was taken to Cabinet on Friday, but existing fast-track courts show that speed depends on constitutional limits, infrastructure and investigation quality.

    What are fast-track courts, and what legal basis funds them?

    1. No single governing law: There is no central legislation that governs fast-track courts as a category.
    2. 14th Finance Commission origin: The 14th Finance Commission (2015-2020) recommended FTCs to expedite trials of heinous crimes such as murder, kidnapping and property disputes pending over five years, and for cases involving vulnerable groups such as women and children.
    3. 2019 fast-track special courts (FTSCs) scheme: In 2019, following a Criminal Law (Amendment) Act, 2018 and a Supreme Court directive, the Union Government launched a centrally sponsored scheme for fast-track special courts (FTSCs), funded partly by the Nirbhaya Fund, exclusively for rape cases and offences under the Protection of Children from Sexual Offences (POCSO) Act, 2012. (Nirbhaya Fund: Following the Nirbhaya case of 16th December, 2012, the Government has set up a dedicated fund , Nirbhaya Fund, which can be utilized for projects specifically designed to improve the safety and security of women. It is a non-lapsable corpus fund, being administered by Department of Economic Affairs, Ministry of Finance. The Ministry of Women and Child Development (M/o WCD) is the nodal Ministry to appraise/recommend proposals and Schemes to be funded under Nirbhaya Fund.)

    Can a Special Court be created for a single case?

    1. Article 14: Creation of special courts must satisfy the Right to Equality under Article 14.
    2. Anwar Ali Sarkar precedent: In State of West Bengal vs Anwar Ali Sarkar (1952), the Supreme Court struck down a law letting the government arbitrarily pick cases for special courts for the “object of speedier trial” alone, calling “speed” too vague a criterion.
    3. Reasonable Classification: Cases assigned to special courts must be based on an objective and rational classification, such as the nature of the offence or vulnerability of victims.
    4. A precedent for public-demand cases: The Supreme Court directed the Centre to establish a special court for the 2G case to ensure a day-to-day trial, even amid public demand.
    5. NEET’s uncertain path: It remains to be seen whether the NEET case, being heard in a Delhi court, will be sent to a special court by the government or through a court order.

    How quickly are Fast-Track Courts expected to dispose of cases?

    1. No statutory deadline: There is no fixed legal time limit for completing trials.
    2. Bharatiya Nagrik Suraksha Sanhita (BNSS) recommended timelines: Recommends completing criminal trials within two years and sexual offence trials within two months.
    3. FTSC Performance Target: Each Fast-Track Special Court (FTSC) is expected to dispose of 41-42 cases per quarter or at least 165 cases annually.
    4. No judicially prescribed outer limit: In P. Rama Chandra Rao vs State of Karnataka (2002), a seven-judge Constitution Bench ruled it is “neither advisable or feasible, nor judicially permissible” to prescribe an outer limit for concluding all criminal proceedings.

    What do current Fast-Track Court statistics show?

    1. Current strength: As of January, 862 regular FTCs were functioning across 21 states and Union Territories, alongside 774 FTSCs, including 398 exclusive POCSO courts, across 29 states and UTs.
    2. Disposal rates: The disposal rate for special courts stands around 96%, with an FTSC disposing of about 9.5 cases a month compared with 3.3 cases by a regular trial court of similar jurisdiction.
    3. Persistent pendency: More than 2.4 lakh cases remained pending in FTSCs by the end of 2023.
    4. Government’s own explanation: A 2026 Lok Sabha reply from the Ministry of Law and Justice attributed disposal delays to factors including physical infrastructure availability, quality of investigation, and cooperation of the bar, investigation agencies and forensic support.

    Will Fast-Track Courts solve the paper leak problem?

    1. Poor Conviction Record: Out of 45 major exam paper leaks (2002-2025) involving at least one lakh candidates, only two cases resulted in convictions.
    2. Investigation is the Real Bottleneck: Weak investigations and the absence of stringent bail provisions remain the major challenges.
    3. Limited Impact: Experts argue that FTCs alone cannot solve issues such as judicial vacancies, heavy case pendency, and procedural delays.
    4. Mixed Performance: FTSCs have shown limited success in POCSO and Indian Penal Code (IPC) cases because of heavy caseloads, while performing relatively better in cases under the Prevention of Corruption Act, 1988.

    Conclusion

    Fast-track courts can expedite trials only within the constitutional limits set in Anwar Ali Sarkar case(1952) and cases must rest on a rational classification, not speed or public demand alone. Even then, the FTSC record shows disposal depends on infrastructure and investigative quality that a court’s “fast-track” label does not create. With 2.4 lakh cases still pending in FTSCs and only two convictions among 45 major exam leaks since 2002, the paper-leak Bill will resolve little unless it also addresses investigation quality and bail conditions.

    PYQ Relevance

    [UPSC 2024] What are the aims and objects of the recently passed and enforced, The Public Examination (Prevention of Unfair Means) Act, 2024? Whether University/State Education Board examinations, too, are covered under the Act?

    Linkage: The PYQ examines the legal and institutional framework for ensuring the integrity of public examinations. The article builds directly on this theme by evaluating whether fast-track courts can effectively enforce accountability under the proposed paper-leak framework.

  • Is corruption the biggest threat to India’s future?

    Why in the News?

    Thousands of students have been protesting since the National Eligibility cum Entrance Test (NEET) paper leak earlier this year, reviving memories of the India Against Corruption (IAC) movement. The question arises whether the Right to Information (RTI) Act, 2005 has delivered on its promise of accountability or whether institutions meant to enforce it have been weakened.

    Has digitalisation reduced petty corruption?

    1. No reduction on the ground: Digitalisation has been pushed as a “magic wand” but has not prevented corruption; bribery remains an “open secret” in government offices.
    2. A new barrier for the marginalised: Digitalisation has added a layer excluding the poor, the marginalised, and the unlettered, who cannot fill forms online and must pay private cafes “obnoxious amounts” for government services.
    3. No grievance redressal law: Parliament discussed a grievance redressal law in detail in 2014, but it has still not been enacted.

    How has the Digital Personal Data Protection (DPDP) Act, 2023 weakened the RTI Act?

    1. Original balance in the RTI Act: The Act’s original 87-word definition of personal information allowed such information to be denied to citizens, but not to Parliament or state legislatures.
    2. Judicial reinterpretation: The Girish Ramchandra Deshpande Supreme Court judgment was misread to mean all personal information could be exempted from disclosure.
    3. Privacy without balance: The K.S. Puttaswamy judgment recognised a fundamental right to privacy without a balancing test against the right to information.
    4. Section 17A of the Prevention of Corruption Act, 1988: The Prevention of Corruption Act’s Section 19, which required sanction for prosecution, was joined in 2018 by Section 17A, which requires government permission even to investigate corruption charges against a public servant. (Section 17A bars police from conducting any inquiry or investigation into corruption allegations against a public servant without prior government approval. This applies specifically to decisions or recommendations made in their official capacity)

    Why does corruption remain low-risk despite these laws?

    1. Historical conviction data: A 2008 study of the CBI’s anti-corruption branch performance from 1980 to 1984 found 280 people accused in courts, of whom 144 were convicted, with investigations averaging 13.4 months but the first trial averaging 88 months.
    2. Near-zero incarceration: The same 2008 study found only four people had been in prison for more than 20 days.
    3. Heavy Right To Information (RTI) use, weak enforcement: About six million RTI requests are filed annually in India, the highest of any country, and the Act has played a role in exposing the Vyapam scam, the Adarsh Housing Society scam and the electoral bond scheme.
    4. Captured agencies: Certain analysts distate that the CBI, the Enforcement Directorate (ED) and the Lokpal have been “compromised” and are not tackling big-ticket corruption cases.
    5. Lokpal’s cost without output: Public evaluations point out that while the anti-corruption body has historically consumed ₹50-60 crore annually (with a revised budget allocation of ₹30 crore for the fiscal year 2026-27), it has struggled to deliver major, high-profile convictions.

    Is institutional weakness a cause or consequence of corruption?

    1. Vacant appointments: The government delayed filling key posts, leaving the transparency watchdog short-staffed or non-functional for long periods.
    2. Non-transparent appointments even after court orders: Courts repeatedly directed the administration to make timely appointments to prevent the Right to Information (RTI) framework from becoming ineffective. Post-intervention selections often proceeded without fully disclosing applicant vetting details or selection criteria to the public.
    3. India’s rule of law ranking: India’s 79th rank in the World Justice Project Rule of Law Index highlights foundational weaknesses in fundamental rights, civil justice, and institutional checks on executive power. ( According to the World Justice Project (WJP) Rule of Law Index 2025 report,India has slipped to 86th position out of 143 countries globally. India has slipped six places compared to last year (79th rank).)

    Conclusion

    Corruption remains India’s biggest governance risk not for lack of transparency law. But this is because the institutions meant to enforce it, Information Commissions, the Lokpal, the CBI and the ED, have been weakened through non-transparent appointments, the DPDP Act’s rollback of RTI disclosures, and Section 17A’s added layer of protection for public servants. The remedy lies in enforcement: judicial delays cut to under a year, transparent Information Commissioner appointments, and withdrawal of the DPDP Act’s amendments to the RTI Act, 2005.

    PYQ Relevance

    [UPSC 2020] Recent amendments to the Right to Information Act will have profound impact on the autonomy and independence of the Information Commission”. Discuss.

    Linkage: Examines the impact of legal and institutional changes on the effectiveness of the RTI framework and transparency in governance. The article directly analyses how the DPDP Act, 2023 has diluted the RTI Act, weakened Information Commissions, and reduced transparency, thereby increasing the accountability deficit in combating corruption.

  • Is FCNR(B) a litmus test for diaspora deposits?

    Why in the News?

    The Reserve Bank of India (RBI) has revived the Foreign Currency Non-Resident (Bank) [FCNR(B)] concessional swap window, last used when Raghuram Rajan was Governor, to defend a rupee that has depreciated 12% year-on-year against the U.S. dollar. The move comes as Foreign Portfolio Investors (FPIs) withdrew ₹2.87 lakh crore from Indian equities between January and the first week of June 2026, already surpassing the ₹1.66 lakh crore pulled out in all of 2025.

    What is Foreign Currency Non-Resident (Bank) [FCNR(B)] account and its concessional swap window?

    1. Definition: It is a fixed-term deposit account for Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) that keeps funds in foreign currencies like USD, GBP, EUR, JPY, AUD, or CAD with tax-free interest and full repatriation.
    2. No Exchange Risk: Funds stay in the original foreign currency from deposit to maturity, protecting from rupee value changes.
    3. The FCNR(B) concessional swap window: It is a special Reserve Bank of India (RBI) facility that allows Indian banks to swap long-term foreign currency NRI deposits at a heavily discounted hedging cost, helping boost India’s foreign exchange inflows.

    What has the RBI designed to attract diaspora capital, and how has the market responded?

    1. Concessional swap facility: The RBI is offering banks a swap facility for FCNR(B) deposits with maturities of three to five years, cutting the cost of hedging foreign currency exposure by around 3% against prevailing FX swap rates of 2.8%-3.3% for that tenor.
    2. Deposit window: The scheme covers fresh FCNR(B) deposits mobilised until September 30, 2026, and targets $50-70 billion in inflows.
    3. Higher returns for depositors: Most large banks are offering around 6%, and some smaller or private banks up to 7.1%, under the swap window, compared with 4%-4.4% on U.S. Treasuries.
    4. Response so far: Total foreign currency mobilisation under the scheme has reached $20.72 billion, of which $17.4 billion (84%) has come through FCNR(B) deposits alone.
    5. Currencies covered: Deposits are maintained in the U.S. Dollar, Pound Sterling, Euro, Japanese Yen, Australian Dollar, and Canadian Dollar, with both principal and interest denominated in foreign currency.

    Why has this window become necessary now?

    1. Rupee under pressure: The rupee has depreciated 12% year-on-year against the U.S. dollar as of July 22, reflecting elevated geopolitical risk, a stronger dollar, higher import dependence and recently negative Foreign Direct Investment (FDI).
    2. FCNR(B) inflows had collapsed: Net FCNR(B) inflows fell to $946 million in FY26 from $7.1 billion in FY25, a decline of nearly 86%, before the swap window revived them.
    3. FPI outflows outpacing prior years: Foreign Portfolio Investors (FPIs) withdrew ₹2.87 lakh crore from Indian equities between January and the first week of June 2026, already exceeding the entire ₹1.66 lakh crore withdrawn in 2025.
    4. Unwinding forward positions: Reuters reported on July 22 that the RBI has likely used part of the initial inflows to unwind a portion of its forex forward book. (A forex forward book is the total record of all outstanding forward foreign exchange contracts held by an institution, such as the Reserve Bank of India on Reuters or a commercial bank, representing future agreements to buy or sell currencies at preset rates. It shows whether the entity holds more commitments to buy (long) or sell (short) a specific foreign currency like the U.S. dollar)

    Does this mark a return to crisis-driven fundraising, or a shift to strength-based buffer-building?

    1. Earlier crisis episodes: Resurgent India Bonds (1998) followed the Pokhran-II sanctions, India Millennium Deposits (2000) followed the post-Pokhran sanctions and the dotcom bust, and the first FCNR(B) drive (2013) raised about $34 billion from the diaspora during the “taper tantrum.”
    2. Current fundamentals differ: India’s forex reserves exceed $650 billion, there is no Balance of Payments (BoP) crisis, and the country retains investment-grade macroeconomic fundamentals.
    3. Stated aim now is buffer-building: The RBI’s objective is to build additional buffers against geopolitical uncertainty and volatile capital flows, not resolve an emergency.
    4. Liability trade-off remains: FCNR(B) deposits still add to India’s external liabilities even though they carry no exchange-rate risk for depositors.

    What precondition could undermine the scheme’s sustainability?

    1. Dependence on West Asia: West Asia accounts for nearly 50% of India’s inward remittances, which totalled about $129 billion in 2024, the world’s largest, according to the World Bank.
    2. Remittance growth moderating: Growth from Gulf countries has moderated as governments pursue labour nationalisation policies, oil-price volatility affects fiscal spending, and hiring of expatriate workers slows in some sectors.
    3. Competing Gulf deposit rates: Banks in Gulf countries are offering competitive dollar deposit rates amid war risk and digital-rival competition, making it harder for Indian lenders to compete.
    4. Crowding-out concerns: The RBI and the UAE Central Bank have reportedly held talks on concerns that Indian banks’ dollar deposit drive is crowding out UAE banks.
    5. Access gap for smaller banks: Small and mid-sized private banks without overseas branches or a GIFT City presence are exploring tie-ups with larger Indian banks that have a GIFT City presence.

    Conclusion

    The FCNR(B) revival shows India can mobilise diaspora capital from a position of macroeconomic strength, with forex reserves above $650 billion and no Balance of Payments (BoP) crisis, unlike the crisis-driven 1998 and 2013 fundraising drives. Its success is conditional on a precondition now under strain: continued remittance growth from a West Asia destabilised by war, oil-price volatility and labour nationalisation, even as the deposits themselves add to India’s external liabilities.

    PYQ Relevance

    [UPSC 2016] Justify the need for FDI for the development of the Indian economy. Why is there a gap between MOUs signed and actual FDIs? Suggest remedial steps to increase actual FDI in India.

    Linkage: The PYQ examines India’s external capital mobilisation strategy and the role of foreign capital in sustaining macroeconomic stability and economic growth. The FCNR(B) article extends this theme from equity capital (FDI/FPI) to diaspora debt capital. It analyses how the RBI uses FCNR(B) deposits to cushion FPI outflows, stabilise the rupee, augment forex reserves and strengthen external-sector resilience, while highlighting the trade-off of rising external liabilities.

  • Core upgrade: On the Index of Core Industries

    Why in the News?

    The Index of Core Industries (ICI) has been rebased and restructured, joining the Consumer Price Index (CPI), Wholesale Price Index (WPI), Index of Industrial Production (IIP) and national accounts in India’s overdue statistical modernisation cycle. The revised series adds a ninth sector, sharply changes sector weights, and reports a five-month-high growth rate for June 2026. The update, however, exposes a real production shortfall that better statistics cannot fix, and leaves an institutional anomaly in the compilation of core economic indices unresolved.

    What is the Index of Core Industries (ICI)?

    1. Definition: The Index of Core Industries (ICI) is a monthly production volume index released by the Office of Economic Adviser on the DPIIT Portal that measures the output of key foundational infrastructure sectors in India
    2. Predictor of industrial performance: It acts as an early predictor of overall industrial performance well ahead of the broader Index of Industrial Production (IIP) release.
    3. Revised base year: The base year has shifted from 2011-12 to 2022-23 to reflect current economic realities.

    What does the revised Index of Core Industries change, and why now?

    1. New base year and coverage: The ICI has been rebased (2022-23) and now covers nine sectors instead of eight, with iron ore added as the ninth sector.
    2. Correction of double-counting: The measurement of the steel and coal sectors has been revised to remove double-counting present in the earlier series. Only Raw Coal has been retained in the new series of ICI, by excluding Coal Middling and Washed Coal in order to remove double counting, since Coal Middling and Washed Coal are made from Raw Coal.
    3. Reweighting toward electricity: The electricity sector’s weight has risen to more than 30% of the index from less than 20% in the previous series.
    4. Reweighting away from fossil fuels: The coal and natural gas sectors have had their weights nearly halved, to about 5.6% and 3.8% respectively.
    5. Delayed catch-up/Alignment with other Index: The revision aligns the ICI with recent updates to the CPI, WPI, IIP, and National Accounts. Following the earlier practice, the weights of the ICI (2022-23) series have been derived from the weights of the corresponding items of IIP (2022-23) series, which have been pro-rata distributed to 100.

    Does the headline growth number reflect genuine industrial strength or a statistical mirage?

    1. Five-month-high growth: The new series recorded ICI growth of 5% in June 2026.
    2. Base-effect distortion: Iron ore output grew 43.9% and electricity output grew 9.8% in June 2026, but both figures reflect a statistical base effect, since both sectors had contracted in June 2025.
    3. Uncertain durability: It remains unclear whether current growth rates will hold once the base effect wears off in coming months.
    4. Persistent contraction underneath: The crude oil sector has contracted continuously for 18 months and the natural gas sector for 24 months, a real supply-side weakness the new series does not resolve.
    5. The deeper shortcoming: This is a serious shortcoming if India possesses these resources but cannot extract them economically, rather than a case of resource absence.

    Should ICI and WPI be compiled by MoSPI?

    1. The Ministry of Statistics and Programme Implementation (MoSPI) already compiles the Consumer Price Index (CPI) and the Index of Industrial Production (IIP).
    2. However, the Index of Core Industries (ICI) and the Wholesale Price Index (WPI) continue to be compiled by the Ministry of Commerce and Industry.
    3. Methodological Harmonization: ICI weights are derived directly from the IIP basket managed by MoSPI. Unifying them under one roof prevents administrative friction during base-year overhauls and weight redistributions.
    4. Streamlined Deflators: WPI and output-based producer price metrics are heavily relied upon to deflate nominal macroeconomic numbers like Gross Domestic Product (GDP) and IIP. Moving price and production tracking to the nodal statistical ministry improves synchronization.
    5. Institutional Credibility: Centralizing macro data collection reduces inter-ministerial silos, creating a single unified command for official national statistics.
    6. Domain Expertise: The Ministry of Commerce and Industry works closely with industrial stakeholders, trade bodies, and sector-specific experts (like DPIIT), which helps in real-time ground tracking of wholesale prices and core output.

    Conclusion

    The revised Index of Core Industries brings India’s oldest industrial data series current, with a new base year, a ninth sector and reweighted components. But June 2026’s five-month-high growth figure is partly a statistical base effect masking continuous contraction in crude oil and natural gas output. What remains unresolved is not measurement but extraction capability, along with an institutional anomaly by which the WPI and the ICI still sit outside MoSPI, unlike the CPI and the IIP.

  • FDI Allowed in Inventory-Based E-commerce Model for Exports

    Why in News?

    The Department for Promotion of Industry and Internal Trade (DPIIT) has allowed Foreign Direct Investment (FDI) in the inventory-based model of e-commerce for the export of goods manufactured in India, marking the first major relaxation in India’s e-commerce FDI policy.

    What is the New Policy?

    • 100% FDI is now permitted in the inventory-based e-commerce model, only for exports of goods manufactured in India.
    • The relaxation is under the Foreign Trade Policy (FTP), 2023 and related regulations.
    • It does not apply to domestic e-commerce sales.

    Marketplace vs Inventory Model

    • Marketplace Model: The e-commerce platform acts as an intermediary connecting buyers and sellers without owning inventory. 100% FDI under the automatic route is already permitted.
    • Inventory Model: The e-commerce entity owns the inventory and sells directly to consumers. FDI was previously prohibited but is now allowed only for export operations.

    Why is this Significant?

    • Aims to boost India’s e-commerce exports, currently around US$5 billion, compared to China’s US$300 billion.
    • Encourages exports by Micro, Small and Medium Enterprises (MSMEs), artisans, and startups.
    • Supports exports of handicrafts, garments, books, gems and jewellery, and other Made in India products.

    Concerns

    • Monitoring separate inventories for domestic and export sales may be difficult.
    • Experts believe this could become a stepping stone towards permitting FDI in inventory-based domestic e-commerce.

    About DPIIT

    • Full Form: Department for Promotion of Industry and Internal Trade.
    • Ministry: Ministry of Commerce and Industry.
    • Functions:
      • Formulates and administers India’s FDI Policy.
      • Promotes industrial development and ease of doing business.
      • Oversees startup and industrial promotion initiatives.

    [2022] With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct?
    1. They can sell their own goods in addition to offering their platforms as market-places.
    2. The degree to which they can own big sellers on their platforms is limited.
    Select the correct answer using the code given below:

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

  • Gati Shakti Cargo Terminals (GCTs)

    Why in News?

    The Government informed Parliament that 142 Gati Shakti Cargo Terminals (GCTs) have been commissioned under the Gati Shakti Multi-Modal Cargo Terminal (GCT) Policy, with approvals granted for 310 additional terminals to strengthen rail-based logistics.

    What is the Gati Shakti Cargo Terminal (GCT) Policy?

    • Launched to promote private investment in rail-linked cargo terminals.
    • Supports the PM Gati Shakti National Master Plan by improving multimodal logistics.
    • GCT locations are selected based on: Industrial demand, Freight potential, Availability of railway infrastructure, and Logistics potential of the region

    Key Highlights

    • 142 GCTs commissioned across India.
    • 310 additional terminals approved.
    • Freight handling capacity: 224 Million Tonnes Per Annum (MTPA).
    • ₹10,000 crore private investment mobilised.
    • Freight handled in 2025-26: 146 Million Tonnes (MT).

    Benefits

    • Reduces first-mile and last-mile logistics costs.
    • Promotes modal shift from road to rail, lowering logistics costs and emissions.
    • Improves wagon turnaround and freight efficiency.
    • Supports sectors such as: Cement, Steel, Power, Mining, Agriculture, Manufacturing, and Automobiles

    Infrastructure Created

    • GCTs provide modern logistics facilities such as: Warehouses, Silos, Cold storage, and Rail-linked cargo handling facilities
    • These improve market access for industries and farmers while generating employment.

    Prelims Value Added

    • PM Gati Shakti National Master Plan was launched in 2021 as a GIS-based digital platform for integrated infrastructure planning.
    • It aims to improve multimodal connectivity by integrating roads, railways, ports, airports, waterways, and logistics infrastructure.
    • MTPA = Million Tonnes Per Annum.

  • RBI Plans Trial of Polymer (Plastic) Currency Notes

    Why in News?

    The Reserve Bank of India (RBI) is set to begin field trials of polymer (plastic) currency notes, nearly 15 years after an earlier pilot was proposed but not implemented. An RBI subsidiary has invited bids to procure polymer sheets for printing trial notes.

    Why Polymer Notes?

    • More durable: Last 2 to 6 times longer than cotton-based paper notes.
    • Lower long-term costs: Fewer notes need to be printed, transported, and destroyed.
    • Environment-friendly: Worn-out polymer notes can be recycled into plastic products.
    • Better security: More resistant to counterfeiting due to advanced security features.

    India’s Earlier Attempt

    • In 2009, RBI proposed a pilot of ₹10 polymer notes.
    • Field trials were planned in Kochi, Mysuru, Shimla, Jaipur, and Bhubaneswar.
    • The project was shelved after technical issues were identified during evaluation.

    Global Adoption

    • First introduced by Australia (1988).
    • Used in 50+ countries, including the UK, Canada, New Zealand, Singapore, Malaysia, Thailand, and Vietnam.

    Challenges

    • India may initially need to import polymer sheets, creating import dependence.
    • Transition requires fresh investment despite existing domestic facilities for banknote paper and security ink.
    • RBI is therefore expected to adopt a gradual transition.

    Prelims Value Added

    • Indian currency notes are currently made from 100% cotton-based paper.
    • Bharatiya Reserve Bank Note Mudran Pvt. Ltd. (BRBNMPL) is a wholly owned subsidiary of the Reserve Bank of India that prints banknotes.
    • Bank Note Paper Mill India Pvt. Ltd. (BNPMIPL) manufactures banknote paper domestically.
    • Security Printing and Minting Corporation of India Ltd. (SPMCIL) prints banknotes, mints coins, and produces security documents.

    [2025] Which of the following are the sources of income for the Reserve Bank of India?
    I. Buying and selling Government bonds
    II. Buying and selling foreign currency
    III. Pension fund management
    IV. Lending to private companies
    V. Printing and distributing currency notes
    Select the correct answer using the code given below.

    [A] I and II only

    [B] II, III and IV

    [C] I, III, IV and V

    [D] I, II and V

  • DRDO Successfully Flight Tests Indigenous Long-Range SAM ‘Kusha’

    Why in News?

    The Defence Research and Development Organisation (DRDO) successfully conducted the maiden flight test of the indigenous Long-Range Surface-to-Air Missile (LR-SAM) ‘Kusha’ from APJ Abdul Kalam Island, Odisha.

    What is Project Kusha?

    • An indigenous Long-Range Surface-to-Air Missile (LR-SAM) system developed by DRDO.
    • Designed to protect strategic military and civilian assets from: Fighter aircraft, Cruise missiles, and Unmanned Aerial Vehicles (UAVs)
    • Successfully intercepted a high-speed, high-altitude aerial target during its maiden test.

    Key Highlights

    • Long-range SAMs generally have a range of over 200 km.
    • Developed with indigenous missiles, radars, and command & control systems.
    • Will reduce India’s dependence on imported long-range air defence systems.

    Mission Sudarshan Chakra

    • Proposed indigenous multi-layered national air defence shield.
    • Project Kusha and the Integrated Air Defence Weapon System (IADWS) are its key components.
    • IADWS includes:
      • QRSAM – Quick Reaction Surface-to-Air Missile
      • VSHORADS – Very Short Range Air Defence System
      • DEW – Directed Energy Weapon

    Prelims Value Added

    • DRDO: Defence Research and Development Organisation.
    • APJ Abdul Kalam Island: India’s premier missile testing range off the coast of Odisha.
    • SAM: Surface-to-Air Missile designed to intercept aerial threats.

    [2026] Consider the following statements about Mission Sudarshan Chakra of India :
    1.It aims to enhance India’s air defence and aerial offensive capabilities.
    2.This Mission is being designed to enhance rapid, precise, and powerful defence responses, reinforcing India’s strategic autonomy.
    3.One of the aims of this Mission is to cover all public places od India by an expanded nationwide shield by 2035.
    Which of the statements given above is/are correct ?

    [A] 1,2 and 2

    [B] 1 and 2 only

    [C] 2 and 3 only

    [D] 1 only

  • India’s Solar Push Faces Domestic Manufacturing Bottleneck

    Why in News?

    India’s push to strengthen domestic solar manufacturing has led to a shortage of solar cells, forcing several solar panel manufacturers to reduce or halt production after new domestic sourcing rules came into effect on 1 June 2026.

    What is the Issue?

    • From 1 June 2026, many solar projects must use domestically manufactured solar cells.
    • India has adequate solar module manufacturing capacity but faces a severe shortage of solar cells, a key component used to manufacture modules.
    • Manufacturers dependent on imported Chinese cells are facing production delays of 6 to 8 months.

    Why is India Facing a Cell Shortage?

    • India imports nearly 95% of its solar cells from China.
    • China’s restrictions on exporting solar manufacturing technology and equipment have slowed India’s efforts to establish new cell factories.
    • Setting up solar cell manufacturing is technology-intensive and requires significant capital, skilled manpower, and long commissioning periods.

    Impact

    • Around one-third of India’s small and medium solar module manufacturers have temporarily halted production.
    • Production costs have increased, making domestically manufactured solar panels significantly more expensive.
    • The shortage could:
      • Delay renewable energy projects.
      • Increase dependence on coal-based power.
      • Threaten employment and investments.
      • Slow progress towards India’s clean energy targets.

    India’s Solar Manufacturing Capacity

    • Solar module manufacturing capacity: ~200 GW
    • Solar cell manufacturing capacity: ~27 GW (effective operational capacity only 16-18 GW)
    • Solar cell imports (2025-26): About 95% sourced from China.
    • Import value: Around US$1.86 billion, up 37% over the previous year.

    India’s Renewable Energy Targets

    • 500 GW of non-fossil fuel installed capacity by 2030.
    • Current non-fossil fuel capacity: 288 GW.
    • Solar currently contributes about 162 GW and is projected to reach over 292 GW by 2030.

    Prelims Value Added

    • Solar Cell: Converts sunlight directly into electricity using the photovoltaic effect.
    • Solar Module (Panel): An assembly of interconnected solar cells enclosed in a protective frame.
    • Multiple modules connected together form a solar array.

    [2018] With reference to solar power production in India, consider the following statements :
    1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.
    2. The solar power tariffs are determined by the Solar Energy Corporation of India.
    Which of the statements given above is/are correct ?

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

  • Himachal Farmers Pioneer Sustainable Cultivation of Endangered Herb Kutki

    Why in News?

    Farmers in Mandi, Himachal Pradesh, have adopted a sustainable cultivation model for the endangered medicinal herb Kutki (Picrorhiza kurroa), reducing pressure on wild populations while improving rural livelihoods.

    What is Kutki?

    https://images.openai.com/static-rsc-4/eWJ2ajVfg0zD8mqVFk2bAyran6DbVQWDRMwp849TfVFy-KN1JhXyyDk3rpPBkEE95grNmcLcTJrOfGsKlfbQB7DKDSFiDYJduuI7CMrtuVLDHMvt0KP9aej7jW63DUIpIUlxRvBo5G2gKSlXtTHtdQ-pute8ik196DZec7QgGpKSGuy9WiCmGoGjNwUSJeAo?purpose=fullsize
    • A high-value Himalayan medicinal herb found at 2,700 to 4,500 m altitude.
    • Native to Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Sikkim, Nepal and Bhutan.
    • Widely used in Ayurveda for liver and digestive ailments.

    Why is it Endangered?

    • Overharvesting by uprooting the entire plant.
    • Habitat degradation and rising commercial demand.
    • Declining natural populations.

    Sustainable Cultivation Model

    • Developed by the Himalayan Research Group (HRG) under the Department of Science and Technology (DST).
    • Farmers harvest only the stolons (horizontal stems), leaving the mother plant intact.
    • This enables repeated harvesting, conserves the species, and provides a steady source of income.
    • The programme is supported by DST’s Science for Equity, Empowerment and Development (SEED) Division and expanded under the Department of Biotechnology’s Himalayan Bioresource Mission (2022).

    Conservation Status

    • IUCN Red List: Endangered
    • CITES: Appendix II (international trade regulated through permits)

    Prelims Value Added

    • CITES (1973; in force from 1975) regulates international trade in endangered species.
    • Secretariat: Geneva, Switzerland.
    • Appendix I: Commercial trade generally prohibited.
    • Appendix II: Regulated trade.
    • Appendix III: Protected by at least one country seeking international cooperation.

    [2022] With reference to “Gucchi” sometimes mentioned in the news, consider the following statements:
    1. It is a fungus.
    2. It grows in some Himalayan Forest areas.
    3. It is commercially cultivated in the Himalayan foothills of north-eastern India.
    Which of the statements given above is/are correct?

    [A] 1 only

    [B] 3 only

    [C] 1 and 2

    [D] 2 and 3