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Distribution: weekly

  • India must address illegal emigration with empathy and urgency

    Why in the News?

    The U.S. deporting dozens of Indians for being illegal immigrants is not unexpected or new.

    What are the reasons behind it? 

    • Illegal Immigration Enforcement: The deportations are part of intensified Immigration and Customs Enforcement (ICE) operations aimed at identifying, detaining, and deporting individuals who are in the U.S. without proper documentation.
    • Large-Scale Illegal Migration – Many Indians, particularly from Gujarat, Punjab, and Haryana, attempt to enter the U.S. illegally through Mexico and Canada due to economic distress and job shortages.

    What is the potential impact of US immigration policies on Indian students and professionals?

    • Legal Migration Channels: The Indian government is keen on ensuring that legal migration channels to the U.S. for Indian nationals are not restricted by the U.S. administration. These legal routes include H-1B visas for skilled workers and visas for students.
    • Deterrence of Illegal Migration: Both the U.S. and India are engaged in deterring illegal migration while creating more avenues for legal migration from India to the U.S.
    • Increased Deportations: Deportation of Indian nationals from the United States surged by 400% in the past three years. In 2024, 1,529 Indians were deported, a significant jump from 292 in 2021.
    • Impact on Undocumented Indians: Approximately 725,000 undocumented Indians reside in the U.S., primarily from Punjab and Gujarat. As of November of the previous year, 20,407 undocumented Indians were either facing final removal orders or were held in detention centers of U.S. Immigration and Customs Enforcement.

    How will this impact the USA? 

    • Labour Market Disruptions:  Deportations can create labor shortages in sectors reliant on immigrant workers, such as construction and hospitality. (Example: Indian workers contribute significantly to the U.S. IT and service industries.)
    • Diplomatic Tensions:  Large-scale deportations may strain U.S.-India relations, especially if handled insensitively. (Example: The use of military flights for deportations sparked protests from other countries like Colombia.)

    How might the deportation of Indian nationals affect the political landscape in India? 

    • Domestic Political Fallout: The deportation of thousands of Indians could become a political issue, with opposition parties blaming the government for failing to create adequate job opportunities at home.
    • Diplomatic Challenges: The mass deportations could strain India-U.S. relations, particularly if deportees face harsh treatment, triggering diplomatic interventions.
    • Public Backlash: The use of military flights and reports of inhumane treatment, such as shackling, may create anti-U.S. sentiment among the Indian public.
    • State-Level Political Implications: States with high numbers of deportees (Gujarat, Punjab, Haryana) may experience political unrest, with local governments facing pressure to provide jobs and reintegration support.
    • Rise in Anti-Illegal Migration Policies: The Indian government may be compelled to introduce stricter measures against illegal immigration and human trafficking networks, affecting those attempting to migrate illegally.
    • Impact on Indian Diaspora Relations: The large-scale return of undocumented migrants could impact remittances, economic support for families, and the broader perception of Indian migrants globally.

    What should India do? (Way forward)

    • Strengthen Domestic Employment Opportunities: Implement targeted economic reforms, boost job creation in high-migration states (Gujarat, Punjab, Haryana), and address the root causes driving illegal migration, such as agricultural distress and unemployment.
    • Enhance Public Awareness & Legal Migration Channels: Conduct awareness campaigns on the risks of illegal immigration while expanding safe and legal pathways for skilled migration through bilateral agreements with the U.S. and other countries.
    • Engage in Diplomatic & Policy Advocacy: Strengthen diplomatic efforts to ensure fair treatment of deported individuals, negotiate favourable visa policies for Indian professionals and students, and collaborate with the U.S. on workforce mobility solutions.

    Mains PYQ:

    Q ‘Indian diaspora has a decisive role to play in the politics and economy of America and European Countries’. Comment with examples. (UPSC IAS/2020)

  • Ocean Coordination Mechanism (OCM)

    Why in the News?

    The Ocean Coordination Mechanism (OCM) was recently announced by the Intergovernmental Oceanographic Commission (IOC) of UNESCO on January 14, 2025.

    What is Ocean Coordination Mechanism (OCM)?

    • The OCM, launched by the Intergovernmental Oceanographic Commission (IOC) of UNESCO, aims to enhance marine conservation and resource management.
    • It focuses on the Caribbean and North Brazil Shelf, regions with rich biodiversity, coral reefs, and fisheries generating $610 million annually.
    • The OCM promotes Blue Carbon Projects, using coastal ecosystems for carbon storage, benefiting both climate resilience and local communities.
    • It has secured $15 million in funding from the Global Environment Facility (GEF) under the UNDP/GEF PROCARIBE+ Project, with an additional $126.02 million in co-financing.

    Intergovernmental Oceanographic Commission (IOC) of UNESCO

    • Established in 1961, the IOC/UNESCO promotes marine science cooperation for sustainable ocean governance.
    • It operates in key areas:
      • Ocean science research:  Supports studies on climate change, biodiversity, and sustainability.
      • Tsunami warning systems:  Maintains early warning mechanisms to mitigate risks.
      • Ocean observations:  Collects and analyzes oceanographic data for policy-making.
    • The IOC leads the UN Decade of Ocean Science for Sustainable Development (2021-2030), known as the “Ocean Decade”, advancing global marine conservation efforts.

     

    Ocean Coordination Mechanism (OCM)

    About the Caribbean Sea

    • The Caribbean Sea is part of the North Atlantic Ocean, located south of the Gulf of Mexico and southwest of the Sargasso Sea.
    • Bordering Nations:
      • Greater Antilles – Cuba, Jamaica, Hispaniola (Haiti & Dominican Republic), Puerto Rico.
      • Lesser Antilles – Includes islands from Virgin Islands to Trinidad & Tobago.
      • South America – Borders Venezuela & Colombia.
      • Central America – Includes Panama, Costa Rica, Nicaragua, Honduras, Guatemala, Belize.
    • Key Features:
      • Deepest Point – The Cayman Trough, at 7,686 meters below sea level.
      • Mesoamerican Barrier Reef – Second-largest barrier reef globally, stretching 1,000 km.
      • Major Gulfs and Bays – Includes Gulf of Venezuela, Gulf of Honduras, and Gulf of Darién.
    • The Caribbean Sea supports rich biodiversity but faces threats from climate change, pollution, and overfishing, making conservation efforts like OCM essential for sustainability.

    PYQ:

    [2021] Consider the following statements :​

    1. The Global Ocean Commission grants licences for seabed exploration and mining in international waters.​

    2. India has received licences for seabed mineral exploration in international waters.​

    3. ‘Rare earth minerals’ are present on seafloor in international waters.​

    Which of the statements given above are correct?

    (a) 1 and 2 only ​

    (b) 2 and 3 only​

    (c) 1 and 3 only ​

    (d) 1, 2 and 3​

  • [pib] Guru-Shishya Parampara Scheme

    Why in the News?

    The Ministry of Culture implements a Central Sector scheme by the name of ‘Financial Assistance for Promotion of Guru-Shishya Parampara (Repertory Grant)’.

    What is the Guru-Shishya Parampara Scheme?

    • The Ministry of Culture launched this scheme in 2003-04.
    • It aims to preserve and promote India’s traditional performing arts.
    • It provides financial assistance to Gurus (mentors) and Shishyas (students) in music, dance, theatre, and folk arts, ensuring structured training under the age-old mentorship system.
    • Aims and Objectives:
      • Preserve and revive rare art forms through direct knowledge transfer.
      • Support traditional artists by providing financial aid for sustainable livelihoods.
      • Encourage young talent by facilitating training under experienced Gurus.
      • Promote classical, folk, and tribal art forms through structured mentorship.

    Features and Significance:

    • Financial Assistance
      • Guru – ₹7,500/month | Accompanist – ₹3,750/month
      • Shishyas – ₹1,500/month (up to four per Guru)
      • Repertory Grant – Guru: ₹15,000/month | Shishya: ₹2,000 – ₹10,000/month
    • Eligibility
      • Indian citizens engaged in traditional performing arts.
      • Gurus aged 45-70 years with national-level recognition.
    • Implementation & Monitoring
      • Each Guru trains 5-8 Shishyas, focusing on rural and tribal artists.
      • Periodic reviews and expert evaluations ensure proper fund utilization.

  • What is the ‘Nuclear Energy Mission’?

    Why in the News?

    The Union Budget 2025-26 introduced the Nuclear Energy Mission, aiming to develop at least 5 indigenous Small Modular Reactors (SMRs) by 2033.

    About Nuclear Energy Mission (NEM):

    Details
    • A flagship initiative announced in Union Budget 2025-26 to accelerate India’s nuclear power capacity towards the target of 100 GW by 2047.
    • It focuses on Small Modular Reactors (SMRs), expansion of Bharat Small Reactors (BSRs), and policy reforms to attract private and foreign investment in nuclear energy.
    Key Highlights  of the NEM
    • 100 GW Nuclear Target by 2047 as part of India’s clean energy transition.
    • ₹20,000 crore allocated for R&D and deployment of Small Modular Reactors (SMRs).
    • Public-Private Collaboration for setting up Bharat Small Reactors (BSRs) and advanced nuclear technologies.
    • Amendments to Atomic Energy Act, 1962 to allow private sector participation.
    • Changes to Civil Liability for Nuclear Damage Act, 2010 to attract foreign investment.
    • Deployment of BSRs (220 MWe) and SMRs (30-300 MWe) to replace coal plants and power remote regions.
    Other Initiatives for Enhancing India’s Nuclear Capacity Expansion of Nuclear Power Capacity:

    • Current capacity: 8,180 MW → Target by 2031-32: 22,480 MW.
    • 10 reactors under construction (8,000 MW) across Gujarat, Rajasthan, Tamil Nadu, Haryana, Karnataka, and Madhya Pradesh.
    • Approval for 6 x 1208 MW AP1000 reactors (USA collaboration) at Kovvada, Andhra Pradesh.

    Deployment of Advanced Nuclear Reactors:

      • Bharat Small Reactors (BSRs): 220 MWe PHWRs for industrial decarbonization.
      • Prototype Fast Breeder Reactor (500 MWe) at Kalpakkam achieved milestones in 2024.
    • High-Temperature Gas-Cooled Reactors (HTGRs) & Molten Salt Reactors (MSRs) under development using India’s thorium reserves.

    Recent Developments: 

    • New uranium deposit discovered at Jaduguda Mines (extends mine life by 50+ years).
    • Operationalization of first two 700 MWe PHWR units at Kakrapar, Gujarat (KAPS-3 & 4).
    • NPCIL-NTPC Joint Venture (ASHVINI) launched to build nuclear plants.
    • Rajasthan Atomic Power Project-7 (RAPP-7) reached criticality in 2024.

     

    PYQ:

    [2018] With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy. (250 Words, 15 Marks)

    [2011] The function of heavy water in a nuclear reactor is to:

    (a) Slow down the speed of neutrons

    (b) Increase the speed of neutrons

    (c) Stop the nuclear reaction

    (d) None of the above

  • How beggar-thy-neighbour policies can make global trade come to a standstill?

    Why in the News?

    In 2025, the United States’ imposition of a 25% tariff on imports from Canada and Mexico, along with a 10% tariff on Chinese goods, exemplifies modern beggar-thy-neighbour policies.

    What is Beggar-Thy-Neighbor Policy?

    • Beggar-thy-neighbor policies refer to protectionist economic policies in which economic strategies are adopted by a country to improve its own economic situation at the expense of other nations.
    • These policies often involve protectionist measures such as tariffs, quotas, or currency devaluation, which can lead to negative repercussions for trading partners. For example, recently the USA imposed tariffs on China.

    What are the positive implications of this policy?

    • Domestic Economic Boost: Proponents argue that these policies can stimulate the domestic economy by protecting local industries and jobs. For example, tariffs on imports can encourage consumers to buy domestic products, potentially reducing unemployment in key sectors.
    • National Security: Supporters often cite national security concerns, suggesting that certain industries need protection from foreign competition to maintain a robust domestic economy.
    • Encouragement of Exports: By depreciating the national currency, a country can make its exports cheaper and more competitive in international markets, which is believed to enhance demand for domestic goods abroad.

    What do the critics say?

    • Global Economic Decline – The U.S.-China Trade War (2018-Present) illustrates how protectionist policies can escalate into retaliatory actions.
      • The U.S. imposed tariffs on Chinese goods, prompting China to retaliate with its own tariffs, disrupting global supply chains and reducing international trade volumes.
    • Higher Consumer Prices – The U.S. Tariffs on Steel and Aluminum (2018) under Section 232 increased production costs for American industries relying on these metals, such as automobile and construction sectors.
      • A study by the Federal Reserve found that these tariffs cost U.S. consumers and businesses over $1.4 billion per month.
    • Historical Warnings – The Smoot-Hawley Tariff Act (1930) in the U.S. significantly raised tariffs on imports, leading to retaliation from trading partners like Canada and European nations.
      • This contributed to a sharp decline in global trade and worsened the Great Depression. Global exports fell by nearly two-thirds between 1929 and 1934, demonstrating the adverse effects of widespread protectionism.
    • Reduced Innovation and Efficiency – India’s License Raj (1947–1991) is a prime example of how excessive protectionism stifled innovation. The heavily regulated economy limited foreign competition, leading to inefficiencies, outdated technology, and slow economic growth.
      • Post-1991 economic liberalization, which reduced trade barriers, spurred competition, efficiency, and innovation across various industries.

    Which countries use this policy? 

    • U.S. Tariffs and Trade War – Under the “America First” policy, the U.S. imposed tariffs on $250 billion worth of Chinese goods in 2018 to shield domestic industries. In response, China introduced retaliatory tariffs on U.S. products, escalating a trade war that disrupted global markets.
    • China’s Currency Policies – China has been accused of currency manipulation to maintain trade advantages. In 2019, the U.S. Treasury labeled China a currency manipulator after the People’s Bank of China allowed the yuan to depreciate, making Chinese exports cheaper and imports more expensive.
    • Japan’s Currency Interventions – To boost exports during economic stagnation, Japan’s central bank has weakened the yen through market interventions. While this makes Japanese exports more competitive, it raises import costs for domestic consumers and affects trading partners negatively.
    • Germany’s Eurozone Trade Advantage – Germany’s strong export-driven economy, supported by fiscal discipline and manufacturing strength, has been seen as creating imbalances within the Eurozone. During financial crises, weaker European economies struggle to compete, intensifying economic disparities.

    Does India use this policy? 

    In recent times, India has indeed engaged in practices that can be characterized as beggar-thy-neighbor policies, particularly in the context of trade and economic strategy.

    • Tariffs on Imports: India has imposed tariffs on various goods to protect its domestic industries.
      • For instance, in 2018, India raised import duties on a range of products, including electronics and agricultural goods, to encourage local manufacturing and reduce reliance on foreign imports. Such measures can be seen as attempts to bolster India’s economy at the expense of exporting countries.
    • Restrictions on Chinese Imports: Following geopolitical tensions, India has implemented stricter regulations and tariffs on imports from China.
      • This includes bans on several Chinese apps (like tiktok) and increased scrutiny of Chinese investments.

    Way forward: 

    • Balanced Trade Policies: Countries should adopt a mix of strategic protectionism and open trade to safeguard domestic industries while preventing trade wars.
      • Strengthening WTO mechanisms and engaging in fair trade negotiations can ensure economic stability.
    • Focus on Competitiveness: Instead of relying on protectionist measures, nations should invest in innovation, skill development, and infrastructure to enhance global competitiveness, ensuring sustainable economic growth without harming trading partners.

    Mains PYQ:

    Q What are the key areas of reform if the WTO has to survive in the present context of ‘Trade War’, especially keeping in mind the interest of India? (UPSC IAS/2018)

  • Why the tax cuts are a one way gamble?

    Why in the News?

    The Union Budget offers a major tax cut, benefiting taxpayers earning above ₹7 lakh. Rebates and exemptions have increased to reduce liabilities, though it may lead to an estimated ₹1 lakh crore revenue loss.

    What is the logic behind the tax rebates?

    • Boosting Household Consumption: Taxpayers earning ₹7–12 lakh/year now qualify for a full rebate (earlier limited to sub-₹7 lakh earners), saving ₹70,000–₹1.1 lakh annually.
      • This exemption limit was raised from ₹3 lakh to ₹4 lakh for those earning above ₹12 lakh, reducing tax burdens across income groups.It will Increase disposable income to drive consumption, savings, and private investment.
      • With weak private investment and uncertain global demand, tax rebates are aimed at stimulating domestic consumption.
    • Leveraging Tax Buoyancy for Revenue Growth: Despite an 8% tax rate reduction, the government anticipates a 14% rise in direct tax revenue (₹14.3 lakh crore), requiring a 24% income growth among taxpayers. It Simplified tax slabs and phased out the old regime to improve compliance and widen the taxpayer base.
    • Focus on Middle-Class Welfare: The overarching goal of these tax rebates is to support the middle class, which constitutes a significant portion of the electorate and plays a vital role in the economy. By alleviating their tax burden, the government seeks to enhance their financial well-being and foster a more equitable economic environment.

    What are the implications if tax buoyancy does not work out?

    • Revenue Shortfalls: A failure in tax buoyancy would lead to lower than expected tax revenues, resulting in budget deficits. This could force the government to cut essential services and social programs, negatively impacting the welfare of vulnerable populations.
    • Pro-Cyclical Fiscal Policy: Insufficient tax revenue may compel the government to adopt a pro-cyclical fiscal policy, reducing public spending during economic downturns instead of stimulating growth. This can exacerbate economic slowdowns and hinder recovery efforts.
    • Increased Tax Burden on Compliant Taxpayers: To compensate for revenue shortfalls, the government might increase taxes on those who continue to pay taxes, placing a heavier burden on compliant taxpayers and potentially discouraging further compliance and economic activity.

    Is it ‘Fiscal Consolidation’ or ‘Fiscal Contraction’?

    • The current approach appears to lean more towards fiscal contraction rather than fiscal consolidation. The Finance Minister has set a lower deficit target of 4.4% for 2025-26, down from 4.8% in the previous year. This suggests a tightening of fiscal policy rather than an expansion aimed at stimulating growth.
    • Critics argue that such contractionary measures are ill-timed given the current economic slowdown, as they limit the government’s ability to invest in growth-promoting initiatives. The expectation seems to hinge on corporate investment and export growth to drive recovery, which may not be sufficient if domestic demand remains weak due to reduced government spending.
    Aspect Consolidation Argument Contraction Criticism
    Deficit Target Lowered to 4.4% of GDP (from 4.8% in FY24), aiming for 3% by FY29 Aggressive deficit cuts during slowing growth (projected 10.1% nominal GDP) risk stifling recovery
    Revenue Strategy Bank on ₹28.37 trillion net tax receipts (+11% YoY) via compliance gains and income growth No compensatory taxes for high earners (30% slab unchanged) or wealth assets, risking ₹1.26 lakh crore shortfall
    Expenditure Focus Capital expenditure raised to ₹11.2 lakh crore (+17.4% YoY) for infrastructure multipliers Social sector allocations remain stagnant, with FY24 revised spending 15% below initial estimates.

    Way forward: 

    • Balanced Fiscal Approach – Instead of aggressive fiscal contraction, the government should adopt a gradual deficit reduction strategy while maintaining targeted public spending, especially in infrastructure and social sectors, to sustain domestic demand and economic growth.
    • Enhancing Revenue without Burdening Taxpayers – Strengthen tax compliance through digital tracking, rationalize subsidies, and explore progressive taxation on wealth and high-income segments to ensure fiscal stability without increasing the burden on the middle class.

    Mains PYQ:

    Q  Comment on the important changes introduced in respect of the Long-term Capital Gains Tax (LCGT) and Dividend Distribution Tax (DDT) in the Union Budget for 2018-2019. (UPSC IAS/2018)

  • [pib] Budget 2025-26 removes 7 Custom Duties for Industrial Goods

    Why in the News?

    The Budget proposes to remove 7 customs tariff rates for industrial goods, following a similar step in Budget 2023-24. This will leave only 8 tariff rates, including a zero rate, making customs duty structure more transparent and predictable.

    What is Customs Duty?

    • Customs Duty is a tax imposed on goods that cross international borders to regulate their movement.
    • It helps protect a country’s economy, jobs, environment, and residents by controlling imports and exports.
    • It prevents illegal trade, ensures fair competition, and generates government revenue.
    • The Customs Act, 1962, which defines and regulates customs duty in India.
    • The Central Board of Indirect Taxes and Customs (CBIC) under the Ministry of Finance manages customs duties.
    • Types of Customs Duties in India:
    1. Basic Customs Duty (BCD): Levied on imported goods (0-100%).
    2. Countervailing Duty (CVD): Imposed to balance foreign subsidies (0-12%).
    3. Social Welfare Surcharge (SWS): 10% surcharge to support welfare projects.
    4. Anti-Dumping Duty: Imposed on goods sold below market price to prevent unfair trade.
    5. Compensation Cess: Levied on items like tobacco and pollution-causing goods.
    6. Integrated GST (IGST): Imposed on imports at 5%, 12%, 18%, or 28% rates.
    7. Safeguard Duty: Applied when excessive imports harm domestic industries.
    8. Customs Handling Fee: 1% charge for customs processing.
    • Customs Duty Calculation: Based on product value, origin, composition, and international trade agreements.

    Key Changes Announced to Customs Tariffs:

    • Tariff rates reduced from 15 to 8, Social Welfare Surcharge was removed on 82 items.
    • 36 new life-saving medicines exempted, 5% duty on six more drugs.
    • Full BCD exemption on 35 EV battery capital goods, 28 mobile battery items, and key minerals like cobalt & lithium.
    • 10-year duty exemption for shipbuilding materials; Ethernet Switch duty cut from 20% to 10%.
    • 20% export duty on crust leather removed, handicraft export timeline extended to 1 year.
    • Frozen fish paste duty cut from 30% to 5% to boost seafood exports.
    • Customs assessments limited to 2 years, quarterly importer reporting instead of monthly.

    How India is Protecting Its Economy from Trade War Impact?

    • Rupee-based trade settlements with Russia, UAE & Sri Lanka to reduce dollar dependence.
    • Stockpiling essential imports like semiconductors, rare earth metals, and crude oil.
    • Attracting companies shifting from China with PLI incentives for manufacturing.
    • Paperless customs clearance, AI-driven trade monitoring, and blockchain documentation for smoother trade.
    • Strengthening global trade alliances like IPEF (Indo-Pacific Economic Framework) and Supply Chain Resilience Initiative (SCRI) (Japan-Australia) for supply chain stability.

    PYQ:

    [2018] Consider the following statements

    1. The quantity of imported edible oils is more than the domestic production of edible oils in the last five years.

    2. The Government does not impose any customs duty on all the imported edible oils a special case.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • [pib] GARBH-Ini-DRISHTI: India’s First Ferret Research Facility

    Why in the News?

    India’s first Ferret Research Facility, GARBH-Ini-DRISHTI, was inaugurated at Translational Health Science and Technology Institute (THSTI) in Faridabad to boost vaccine development and infectious disease research.

    About GARBH-INi-DRISHTI

    • GARBH-INi-DRISHTI is a data repository and information-sharing hub designed to provide comprehensive clinical and biological insights into maternal and child health.
    • Developed under the GARBH-INi program, it is one of South Asia’s largest pregnancy cohort datasets, offering access to clinical data, medical images, and bio-specimens.
    • The platform includes data from over 12,000 pregnant women, newborns, and postpartum mothers, enabling extensive research into maternal and neonatal health outcomes.
    • It is a collaborative initiative, involving India’s top research institutions and hospitals, ensuring scientific synergy in maternal healthcare.
    • Aims:
      • To enhance maternal and neonatal healthcare research through large-scale data accessibility.
      • To support global researchers in conducting transformative studies that can improve birth outcomes.
      • To provide early insights into pregnancy-related complications, fostering better diagnostic and preventive measures.
      • To develop predictive tools for conditions like preterm birth, ensuring better maternal health interventions.
    • Features:
      • Comprehensive Data Repository: Houses clinical, imaging, and bio-specimen data from thousands of pregnant women and newborns.
      • Advanced Data Access: Researchers can explore detailed datasets to study pregnancy outcomes, foetal health, and postnatal development.
      • Secure and Controlled Access:  Provides clear guidance on data usage and approvals, ensuring ethical research practices.
      • Global Research Platform: Enables nationwide and international collaboration, allowing researchers to work on common healthcare challenges.
      • Supports Policy and Decision-Making:  The data can be leveraged to shape maternal health policies, improve diagnostic protocols, and design effective interventions.

  • Gyan Bharatam Mission

    Why in the News?

    The Union Budget 2025-26 has introduced the Gyan Bharatam Mission, a comprehensive initiative for surveying, documenting, and conserving India’s manuscript heritage.

    What is Gyan Bharatam Mission?

    • It is a nationwide initiative launched in the Union Budget 2025-26 to survey, document, and conserve India’s manuscript heritage.
    • The mission aims to cover over one crore manuscripts, ensuring the systematic preservation of ancient texts housed in academic institutions, museums, libraries, and private collections.
    • It is a revival and expansion of the National Manuscripts Mission (NMM), which was originally established in 2003 but had limited impact due to inadequate funding and structural challenges.
    • The mission aligns with India’s broader cultural conservation goals and is expected to create a centralized repository for India’s rich textual and intellectual heritage.
    • Aims and Objectives:
      • Survey and document manuscripts across institutions and private collections.
      • Digitize rare texts and create a centralized repository for research and preservation.
      • Restore and conserve fragile manuscripts using modern preservation techniques.
    • Features and Significance:
      • Budget Allocation Increased:  Funding for NMM raised from ₹3.5 crore to ₹60 crore.
      • Digital Preservation:  AI-driven archiving, metadata tagging, and translation tools for easy access.

    PYQ:

    [2023] With reference to Indian History, Alexander Rea, A. H. Longhurst, Robert Sewell, James Burgess and Walter Elliot were associated with (2023)

    (a) archaeological excavations

    (b) establishment of English Press in Colonial India

    (c) establishment of Churches in Princely States

    (d) construction of railways in Colonial India

  • [4th February 2025] The Hindu Op-ed: Some wind behind the sails of India’s shipping industry

    PYQ Relevance:

    Q) ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC CSE 2017)

    Q) The Gati-Shakti Yojana needs meticulous co-ordination between the government and the private sector to achieve the goal of connectivity. Discuss. (UPSC CSE 2022)

     

    Mentor’s Comment: UPSC mains have always focused on Sustainable Development (2016, 2017, 2018 and 2022), and Budget Initiatives (2017 and 2021).

    Currently, India holds only about 0.05% of the global market share in shipbuilding, significantly lower than competitors like China (47%), South Korea (30%), and Japan (17%). This disparity highlights that without addressing inefficiencies in container movement and logistics integration, infrastructure growth alone will not lead to meaningful progress.

    The editorial discusses the recent positive developments in India’s shipping industry, particularly following the government’s announcements in the Union Budget 2025-26. This content can be used to present challenges in the Maritime Sector.

    _

    Let’s learn!

    Why in the News?

    The Union Budget 2025-26 appears to have met most of the shipping industry’s demands; but it has missed an opportunity to address tax disparities.

     

    What specific government initiatives are being introduced to support the shipping industry?

    • Maritime Development Fund (MDF): This initiative is the establishment of a MDF with an initial corpus of ₹25,000 crore which aims to provide long-term financing for the shipbuilding and maritime sectors, facilitating investment and growth within the industry.
    • Shipbuilding Financial Assistance Policy: The government has announced a revamp of the Shipbuilding Financial Assistance Policy (SBFAP) which aims to address cost disadvantages faced by domestic shipyards by providing direct financial subsidies, thereby encouraging local shipbuilding and enhancing competitiveness.
    • Customs Duty Exemptions and Incentives: This Budget extends customs duty exemptions on inputs and components used for manufacturing ships for more than 10 years.
      • Additionally, credit notes will be issued for shipbreaking activities, promoting a circular economy within the industry in order to make shipbuilding and recycling more competitive.
    • Extension of Tonnage Tax Scheme: The benefits of the existing tonnage tax scheme, which previously applied only to sea-going ships, will now be extended to inland vessels registered under the Indian Vessels Act, 2021.
      • This change aims to promote inland water transport and enhance the overall efficiency of the maritime sector.
    • Establishment of Shipbuilding Clusters: The Indian shipping industry has been advocating for the extension of the Shipbuilding Financial Assistance Policy (SBFAP) for another 10 years under the Amritkaal Maritime Vision 2047.
      • The government plans to facilitate the creation of shipbuilding clusters to increase capacity and capabilities in ship manufacturing.

    How can these initiatives impact India’s position in the global shipping market?

    • Enhanced Global Competitiveness: By establishing the Maritime Development Fund and revamping financial assistance policies, India aims to boost its shipbuilding capabilities and reduce costs associated with ship construction and repair.
      • This could elevate India’s ranking in global shipbuilding from 22nd to potentially within the top 10 by 2030 and top 5 by 2047, thereby increasing its share of global ship tonnage from less than 1% to around 5%.
    • Improved Infrastructure and Efficiency: The government’s focus on port modernization through initiatives like the Sagarmala Programme and Maritime India Vision 2030 is set to enhance port infrastructure, logistics efficiency, and multimodal connectivity.
      • These improvements will reduce turnaround times for vessels and lower logistics costs, making Indian ports more attractive for international shipping lines and increasing cargo handling capacity significantly.
    • Attracting Foreign Investment: With a favorable investment climate that allows 100% Foreign Direct Investment (FDI) in port development, India is positioned to attract significant foreign capital into its shipping sector.
      • This influx of investment can lead to technological advancements, better operational practices, and increased capacity, further solidifying India’s role as a key player in global maritime trade.

    What challenges does the Indian shipping industry face despite these positive developments?

    • High Costs and Financial Constraints: Indian shipyards face significant cost disadvantages compared to global competitors, particularly in terms of higher material and labor costs, as well as expensive financing options.
      • This results in a 25-30% cost disadvantage for Indian shipyards compared to those in countries like China and South Korea.
      • Additionally, the imposition of a 5% Goods and Services Tax (GST) on ship imports, which is not refunded for international operations, further strains financial resources for shipping companies.

    Does the SARFAESI Act impact loan availability?

    • Under Section 31(d) of the SARFAESI Act, banks and financial institutions cannot create a security interest in vessels as defined by the Merchant Shipping Act, 1958.
    • This limitation means that lenders cannot easily seize and auction ships in case of loan defaults, which reduces their willingness to extend credit to shipowners.
    • The ongoing discussions about amending the SARFAESI Act to include provisions for ships indicate a recognition of these challenges.
    • By allowing banks to hold security interests in vessels, the government can enhance loan availability and create a more favorable environment for financing within the maritime sector.
    • Infrastructure Bottlenecks: Major Indian ports are grappling with issues such as congestion, inefficiency, and inadequate infrastructure to support increasing traffic volumes.
      • The growth in cargo traffic has outpaced the development of port facilities, leading to delays and higher operational costs.
      • For example, backlogs for rail freight have increased significantly, impacting the timely movement of goods.
      • Furthermore, labor strikes and outdated technology contribute to lower productivity at ports, making them less attractive to global shipping lines.
    • Dependence on Foreign Suppliers: Indian shipyards heavily rely on foreign suppliers for critical components and technology, which increases costs and complicates supply chains.
      • This dependency results in longer lead times for procurement and vulnerability to supply chain disruptions.
      • The lack of a robust domestic supply chain for high-tech maritime components further exacerbates these challenges, limiting the competitiveness of Indian shipbuilding firms.

    Way Forward:

    To realize its aspirations under the Amritkaal Maritime Vision 2047, India must prioritize investments in infrastructure, streamline regulatory processes, and foster a skilled workforce.

    • The path forward requires a concerted effort from all stakeholders to transform these challenges into opportunities for sustainable development in the maritime sector.
    • Establish a National Port Grid Authority to coordinate development across major and minor ports, promoting specialization and eliminating inter-port competition.
    • Implementing a hub-and-spoke model with mega ports acting as transshipment hubs can optimize cargo movement and efficiency.
    • Deploy Smart Port Infrastructure Management Systems (SPIMS) and introduce blockchain-based Port Community Systems to facilitate paperless and IoT based trade.