India’s CPI (Consumer Price Index) inflation rose to 4.45% in July, driven mainly by food and fuel prices, while remaining within the RBI’s tolerance band.
What is CPI?
CPI = Consumer Price Index
Measures changes in retail prices of a fixed basket of goods and services.
India’s CPI was rebased to 2024.
Sector-wise data under the new series is available from January 2026.
What Drove Inflation?
Food inflation: 5.52%.
Onion inflation: 22.54%.
Restaurants & accommodation: 7.7%.
Transport: 4.4%.
Personal care: 14.8%.
What Remained Stable?
Core inflation: 3.9%, excluding food and fuel.
Health inflation: 1.3%.
Recreation: 1.6%.
Stable core inflation suggests limited demand-pull pressure, with the current rise largely driven by supply-side factors.
A Parliamentary Standing Committee has recommended a review and rationalisation of Foreign Direct Investment (FDI) limits governing the operation and acquisition of existing private hospitals, warning that aggressive corporatisation and an influx of foreign capital could push up healthcare costs. The recommendation exposes a tension between attracting capital to expand hospital capacity and protecting the affordability of medical care from a shift of healthcare from a public service into a purely capitalistic enterprise.
What is Foreign Direct Investment (FDI) in hospitals?
Definition: FDI is a non-debt-creating capital flow in which a foreign entity takes a lasting stake in an Indian enterprise, here in the ownership, operation or acquisition of hospitals.
Current position: Hospitals in India permit 100% FDI under the automatic route, which the Committee flags for the acquisition and operation of existing facilities.
Who examined the issue and in which report?
Committee: The Department-related Parliamentary Standing Committee on Health and Family Welfare.
Report: Its 176th report on the Affordability and Accessibility of Healthcare Facilities in the Public and Private Sector.
Why does the Committee want FDI limits reviewed?
Consolidation risk: Foreign capital is facilitating the acquisition of cost-effective, mid-sized hospitals by larger corporate entities.
Corporatisation: Such aggressive corporatisation is transforming healthcare from a public service into a purely capitalistic enterprise.
Cost inflation: This has the potential to inflate the cost of medical procedures and trigger price increases across the healthcare ecosystem.
Selective openness: Foreign capital should be encouraged in medical devices, consumables and specialised medicines for rare diseases, while its use in direct operation and acquisition of hospitals needs greater scrutiny.
What is the evidence of a public-private cost gap?
Cost divergence: Citing the 80th round of the National Sample Survey, the panel put the average cost of hospitalisation at Rs 50,508 in private hospitals against Rs 6,631 in government hospitals.
Regulator role: A strong public healthcare system could act as a market regulator by offering an affordable alternative and exerting competitive pressure on private providers.
Price standardisation: It called for mechanisms to standardise and cap the cost of essential treatments, diagnostics and routine procedures in private hospitals.
What structural measures did the Committee recommend?
Public multispeciality hospitals: Autonomous, efficiently managed public multispeciality hospitals in every revenue division to cut dependence on major cities for tertiary care.
Redirected capital: Incentives to steer foreign investment toward local manufacturing of medical technologies and pharmaceuticals.
Tier-2 and tier-3 push: Tax holidays and other incentives to attract private multispeciality hospitals in smaller cities and rural areas, with public-private partnerships for underserved regions.
Cross-subsidisation: Private hospitals receiving government support to use revenue from higher-paying patients to help poorer patients.
Reserved beds: Raising mandatory bed reservation for Below Poverty Line, Economically Weaker Section and AB-PMJAY beneficiaries from 10% to 20%.
Fee scrutiny: Hospital-level ethics committees to examine professional fees.
Why is aggressive corporatisation a two-sided problem?
The capital case: Foreign investment can expand hospital capacity, technology and specialised care that public systems struggle to fund.
The affordability case: Consolidation of mid-sized hospitals by large corporates can raise prices and weaken affordable options.
The unresolved gap: Without a strong public alternative and price caps, foreign capital risks entrenching a high-cost private tier.
Challenges to affordable healthcare in India
Out-of-pocket burden: A large share of health spending is paid directly by households, pushing many into distress.
Public-private divide: A wide cost gap between government and private care.
Regional maldistribution: Concentration of tertiary hospitals in metros and large cities.
Regulatory weakness: Limited standardisation and capping of procedure costs.
Human resource shortage: Deficits of doctors, nurses and specialists in rural areas.
Low public spending: Government health expenditure remains a small share of GDP.
Conclusion
The Committee has urged the government to review and rationalise FDI in the operation and acquisition of existing private hospitals while redirecting foreign capital toward medical manufacturing. The current status is a tabled recommendation; the next milestone is the government’s response on FDI norms, price standardisation and expanded public hospital capacity.
Healthcare Financing in India (Foundational Context)
About: Healthcare in India is delivered through a mix of public facilities, private hospitals and insurance-funded care.
Scale: Private hospitals dominate tertiary care, with hospitalisation costs several times higher than in government facilities.
Structural fact: High out-of-pocket expenditure remains a defining feature of Indian health financing.
Government Initiatives for Healthcare
Ayushman Bharat PM-JAY: Health cover of up to Rs 5 lakh per family per year for eligible beneficiaries.
Ayushman Arogya Mandirs: Primary health and wellness centres for screening and preventive care.
National Health Mission: Support for public health infrastructure and human resources.
Production Linked Incentive for pharma and medical devices: Boosts domestic manufacturing of medicines and equipment.
Challenges in Health Financing
High out-of-pocket spending, pushing households into poverty.
The government told Parliament that the current Unified Payments Interface (UPI) model is financially unsustainable, and that it is examining two routes to make the platform self-supporting without inflating the Budget. The trigger exposes a core tension: the zero-charge design that drove mass adoption now starves the ecosystem of the revenue needed for cybersecurity, fraud prevention and network upkeep.
What is Unified Payments Interface (UPI)?
Definition: UPI is a real-time payment system built by the National Payments Corporation of India (NPCI) and the Indian Banks’ Association that lets money move instantly between two bank accounts through a mobile app. It was launched as a pilot in April 2016 and became fully operational in August 2016.
Scale: More than 55 crore people use UPI and 703 entities, from banks to payment service providers, facilitate its transactions. Of the 28,174 crore digital transactions recorded in 2025-26, 86% ran on UPI.
What is the Merchant Discount Rate (MDR)?
Definition: MDR is the fee that banks, payment processors and gateways levy on a merchant for accepting a digital payment.
Current position:MDR is charged on most debit card and all credit card transactions. UPI and RuPay debit card transactions were exempted in 2020, making them zero-cost for merchants.
What Makes Up MDR?
Interchange fee: Money sent to the customer’s card-issuing bank.
Network fee: Charges paid to card networks like Visa or Mastercard.
Processor fee: Markup kept by the payment gateway or processor for handling the tech
Why is the current UPI model financially unsustainable?
Cost recovery gap: The subsidy scheme reimbursing processors is far short of actual cost. There is a mismatch between the roughly Rs 2,000 crore allocation and the industry’s estimated operational cost of about Rs 20,700 crore a year.
Coverage shortfall: The Standing Committee on Finance found the incentive covers merely 11% of the industry’s actual costs and 14% of potential MDR collections.
Investment risk: The gap threatens critical spending on cybersecurity, fraud prevention and network infrastructure as volumes scale toward a projected 150 billion transactions per month.
What options is the government exploring?
Selective MDR: Restoring MDR on certain high threshold transactions and high turnover merchants, leaving small merchant payments untouched.
Tiered incentives: A tiered incentive structure to phase out government support over the next few years.
Legal enabler: An amendment to the Payment and Settlement Systems Act, 2007 has already removed the bar on charging merchants a fee for receiving UPI payments.
Industry proposal: Payment firms seek an MDR of 0.3% to 0.6% on payments above Rs 2,000 to large merchants, about 4% of person to merchant transactions but 68% of value.
Conclusion
The government has confirmed that UPI cannot indefinitely run on subsidies and is examining selective MDR and a tapering incentive structure to make it self-sustaining. The next milestone is a framework that funds the ecosystem through charges on large merchants while shielding small merchants.
[UPSC 2026] Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is NOT correct?
(a) UPI is a real-time payment system but Digital Rupee is akin to sovereign paper currency
(b) In case of UPI, settlement for end users happens instantly; in case of Digital Rupee, wallet balance gets transferred to another wallet
(c) UPI transactions are recorded by banks and reflected in bank statements; in case of Digital Rupee, no data is captured in bank statements
(d) In both the cases, the liability lies with the users and their respective banks.
The National Aeronautics and Space Administration (NASA) has invited the Indian Space Research Organisation (ISRO) to join its Moon Base programme, the effort to return humans to the Moon and set up a permanent settlement near the lunar South Pole. The invitation was extended at the ninth meeting of the India and United States Civil Space Joint Working Group, deepening a partnership that already spans the Artemis Accords and a joint radar satellite.
What was announced and what is the Moon Base programme?
The invitation: NASA invited ISRO to join its Moon Base programme, building on the two countries’ partnership under the Artemis Accords.
The venue: The offer was made at the ninth meeting of the India and United States Civil Space Joint Working Group, held in Bengaluru on 5 and 6 August.
The programme: The Moon Base programme aims to establish humanity’s first outpost on another celestial body, near the South Pole of the Moon.
Wider setting: The meeting advanced civil and commercial space cooperation under a strategic technology initiative aligned with the February 2025 Joint Leaders’ Statement.
What are the Artemis Accords?
Definition: The Artemis Accords are a United States led set of non binding principles to govern the peaceful civil exploration and use of outer space, including the Moon.
India’s role: India signed the Accords in 2023 as the 27th country, and a total of 70 countries are now part of them.
Relevance: The Moon Base invitation and agreed open scientific data sharing are being pursued under this framework.
What deepening ties does the invitation reflect?
NISAR mission: The two agencies last year launched the NASA and ISRO Synthetic Aperture Radar (NISAR) mission, a dual frequency radar satellite and a first of its kind joint venture.
Human spaceflight: An Indian astronaut flew to the International Space Station in 2025 through an Axiom mission, a result of a strategic framework for human spaceflight cooperation.
Data cooperation: Both sides agreed to advance open scientific data sharing and discussed joint missions to the Moon and beyond.
Outer space governance: They reaffirmed commitment to United Nations guidelines on the long term sustainability of outer space activities.
What are India’s own lunar and human spaceflight programmes?
Gaganyaan: ISRO is pursuing its human spaceflight programme to send Indian astronauts to low Earth orbit.
Moon landing target: India has stated plans to achieve a human landing on the Moon by 2040.
Chandrayaan legacy: India’s earlier lunar missions established its capability, including a South Pole region landing.
Complementary strengths: NISAR’s success is seen as a base for more complex joint missions, including the lunar base and human spaceflight.
Back2Basics: NISAR Mission
Full form: NASA and ISRO Synthetic Aperture Radar mission.
Nature: A joint Earth observation satellite using dual frequency radar, a first of its kind.
Purpose: Monitors changes in land surface, ice sheets, ecosystems and natural hazards.
Significance: Regarded as a landmark joint venture that could enable more complex India and United States space missions.
Government Initiatives / Programmes in Indian Space
Gaganyaan: India’s human spaceflight programme to send astronauts to low Earth orbit.
Chandrayaan Programme: Series of lunar missions advancing India’s Moon exploration.
IN-SPACe: Regulator and promoter enabling private sector participation in space.
Indian Space Policy 2023: Framework opening the sector to non governmental entities.
Key Facts about India and Global Space Cooperation
Artemis signatory: India was the 27th country to sign the Artemis Accords in 2023, now numbering 70 countries.
Working group: The invitation came at the ninth India and United States Civil Space Joint Working Group in Bengaluru.
Moon landing goal: India targets a human landing on the Moon by 2040.
South Pole focus: The Moon Base aims for humanity’s first outpost near the lunar South Pole.
“[2016] Consider the following statements: The Mangalyaan launched by ISRO
1. is also called the Mars Orbiter Mission
2. made India the second country to have a spacecraft orbit the Mars after USA
3. made India the only country to be successful in making its spacecraft orbit the Mars in its very first attempt
Which of the statements given above is/are correct?
Civil society groups and mining affected communities have alleged that the Supreme Court appointed High Powered Committee (HPC) on the Aravallis left out several districts and did not adequately hear local people during its consultations. The dispute exposes the tension between expert led regulation of mining and genuine participation of the communities whose lands and livelihoods the decision will affect.
What is the High Powered Committee on the Aravallis?
Origin: The Supreme Court of India constituted a high-powered expert committee headed by Kanchan Devi to review the definition and delineation of the Aravalli hill range, guide mining regulations, and protect the fragile ecosystem from continuous environmental degradation.
Mandate: It is to submit a report that will shape decisions on mining and conservation across the range, with an August 31 deadline.
Consultation window: The panel held a 21 day period for stakeholders to submit comments, which has now ended.
Field visits: It conducted field visits in Gurgaon, Alwar, Ajmer and Udaipur between 6 and 10 August.
Why are activists challenging the consultation process?
Villages left out: The Aravalli Virasat Jan Abhiyan claims the HPC did not visit any mining affected villages to understand ground realities.
Urban centric hearings: Public hearings were held at urban centres that affected villagers could not reach, and information was not publicised in local newspapers, on radio, or at panchayat offices.
Lobby dominance: Around 80 percent of representations in Ajmer were pro mining, with a similar pattern elsewhere, and those speaking against mining were allegedly threatened.
Access failures: A scheduled Udaipur meeting for 10 August was moved to the evening of 9 August, making it hard for many to attend, and requested visits to villages hit by limestone mines and stone crushers did not happen.
Central demand: The group wants the HPC to seek an extension of the August 31 deadline and hold meaningful consultations across all 64 districts in Delhi, Haryana, Rajasthan, Uttar Pradesh and Gujarat.
What is an Eco Sensitive Zone?
Definition: An Eco Sensitive Zone is an area notified around protected areas or ecologically fragile landscapes where activities such as mining are regulated or prohibited to act as a shock absorber.
The National Wildlife Action Plan (2002-2016) recommended that State governments identify areas within 10 km of national parks and wildlife sanctuaries for declaration as Eco-Sensitive Zones (ESZs).
The recommendation was to be implemented under the Environment (Protection) Act, 1986, under the framework of the Ministry of Environment, Forest and Climate Change (MoEFCC).
Relevance: Regulation of mining in the Aravallis turns on how such protective boundaries and restrictions are drawn and enforced.
Why does the Aravalli range matter for mining regulation?
Ecological role: The Aravallis are India’s oldest mountain range and act as a barrier against desertification spreading eastward from the Thar.
Mining pressure:Limestone mines, stone crushers and other extraction have degraded stretches of the range.
Legal history: Courts have repeatedly intervened to restrict illegal and unregulated mining in the range.
Livelihood stakes: Rural and Adivasi communities depend on the hills, so decisions affect both ecology and livelihoods.
Why does the mining lobby versus affected communities tension shape the outcome?
Capture risk: Hearings dominated by pro mining representations risk producing a report that understates ground level harm.
Precedent invoked: Activists demand a systematic outreach approach similar to the one adopted a decade ago by the Western Ghats Ecology Expert Panel, which held direct public hearings.
Intimidation: Alleged threats to those opposing mining undermine the credibility of the consultation.
Deadline pressure: A fixed August 31 deadline discourages the fuller consultation the communities are demanding.
Conclusion
The current status is a contested consultation process, with affected communities demanding a deadline extension and direct village level hearings before the HPC finalises its report to the Supreme Court. The dispute turns on whether expert regulation of Aravalli mining can be legitimate without hearing the people most affected by it. The next milestone is whether the committee seeks an extension or submits its report by August 31 as scheduled.
Back2Basics:
Foundational Context: Mining in India
About: Mining is the extraction of minerals from the earth and is regulated as a hazard prone activity with significant environmental impact.
Scale: India produces a range of major and minor minerals, with states such as Rajasthan, Odisha and Jharkhand holding large reserves.
Environmental impact: Mining causes deforestation, dust and air pollution, groundwater depletion, and land degradation.
Governance: Mineral development is regulated under central law with clearances layered across environment, forest and pollution statutes.
Statutory Framework Governing Mining and the Aravallis
Mines and Minerals (Development and Regulation) Act, 1957: The principal law regulating the mining sector and grant of mineral concessions.
Environment (Protection) Act, 1986: Enables environmental clearances and the notification of Eco Sensitive Zones.
Forest (Conservation) Act, 1980: Requires clearance before diverting forest land for mining.
Air (Prevention and Control of Pollution) Act, 1981: Regulates dust and emissions from mining and crushing.
National Green Tribunal Act, 2010: Provides the forum for adjudicating mining and environmental disputes.
The Aravalli Range
Designation: India’s oldest fold mountain range, running across Delhi, Haryana, Rajasthan and Gujarat.
Location and extent: Stretches roughly 690 kilometres from Delhi to Gujarat, with Guru Shikhar as its highest peak.
Ecological function: Acts as a natural barrier checking the eastward spread of the Thar desert and supports groundwater recharge.
Distinguishing feature: Hosts unique biodiversity and forms the watershed for several rivers.
Current concern: Threatened by illegal mining, stone crushing and encroachment.
Government Initiatives for Aravalli and Land Restoration
Aravalli Green Wall Project: Initiative to create a green belt along the range to combat land degradation and desertification.
Compensatory Afforestation Fund: Funds afforestation to offset forest land diverted for mining and other uses.
National Afforestation Programme: Supports regeneration of degraded forest land.
Desertification action: India’s commitments under the United Nations Convention to Combat Desertification guide land restoration.
Key Facts about the Aravallis and Mining
Districts covered: The HPC’s mandate spans 64 districts across five states.
Oldest range: The Aravallis are among the oldest mountain systems in the world.
Deadline: The committee faces an August 31 report deadline.
Precedent: The Western Ghats Ecology Expert Panel is cited as a model of participatory consultation.
Weak consultation: Affected rural and Adivasi communities are inadequately heard.
Enforcement gaps: Overlapping jurisdictions weaken monitoring of mining bans.
Encroachment: Construction and settlement erode the range.
Desertification risk: Degradation of the range threatens its role as a desert barrier.
Intimidation of activists: Reported threats deter local opposition to mining.
Way Forward
Direct village outreach: Hold public hearings in affected villages, not only urban centres.
Extend timelines: Allow adequate consultation before finalising a decision of this scale.
Strengthen enforcement: Deploy satellite monitoring and strict penalties against illegal mining.
Protect participants: Ensure safety for community members opposing mining.
Restore degraded land: Scale up afforestation and green wall efforts across the range.
PYQ Relevance
[UPSC 2025] Mineral resources are fundamental to the country economy and these are exploited by mining. Why is mining considered an environmental hazard? Explain the remedial measures required to reduce the environmental hazard due to mining.
Linkage: The PYQ directly connects with the environmental hazards of mining and remedial measures for sustainable mineral extraction. The Aravalli case highlights illegal mining, ecological degradation, weak enforcement and the need for participatory conservation.
A gazette order of 10 August from the National Mission for Clean Ganga (NMCG) has removed the blanket declaration in the 2016 law that the Ganga flood plain is a construction free zone, replacing the total ban with a stratified, approval based regime. The change exposes the tension between protecting the river’s ecology and permitting development in areas subject only to moderate or rare flooding.
What is the River Ganga Authorities Order that was amended?
Instrument: The River Ganga (Rejuvenation, Protection and Management) Authorities Order, 2016, notified under the Environment (Protection) Act, 1986, governs protection and management of the river.
Original ban: The 2016 order declared the bank of the river and its flood plain a construction free zone to reduce pollution and preserve natural groundwater recharge.
What the amendment does: The 10 August order deletes the no construction clause and replaces the total ban with a regulated system in which some construction is permissible after official clearances.
How does the new stratified definition of a flood plain work?
Active flood plain: The zone immediately along the channel that submerges at least once every five years, where strict building prohibitions continue, with minor exceptions for temporary set ups such as religious events.
Regulatory zone: The middle band subject to moderate flooding once every five to 25 years, where construction is now permissible subject to clearances.
Warning zone: The outer periphery that floods only during severe events of 25 to 100 year frequency, where construction is also now permissible subject to clearances.
Earlier gap: The 2016 order banned construction in the active flood plain but never defined what active meant, an inconsistency the amendment claims to correct.
Why did the government amend the order?
Stated rationale: A senior official said the amendment does not dilute standards but corrects an inconsistency in the law between the flood plain definition and the construction ban.
Litigation pressure: Litigants had routinely cited the blanket construction free zone mandate against riverfront roads, embankments and sewage treatment plants before the National Green Tribunal.
Scope limit: The new order does not grant blanket permission for development and keeps a regulated approval process in place.
Does the change protect the river or dilute safeguards?
The protection case: Confining strict prohibition to the active flood plain leaves the ecologically most sensitive channel margin protected while allowing regulated use elsewhere.
The dilution concern: Opening the regulatory and warning zones to construction reduces the natural groundwater recharge and pollution buffer the 2016 order sought to preserve.
Enforcement risk: An approval based system shifts protection from a clear legal bar to case by case clearances that depend on administrative capacity and vigilance.
What are the challenges to regulating the Ganga flood plain?
Encroachment pressure: Dense settlement and commercial demand along the river make flood plains attractive for construction.
Weak demarcation: Flood plain zoning requires accurate hydrological mapping that is incomplete across the basin.
Fragmented jurisdiction: Multiple states, municipal bodies and agencies share authority over the river, complicating uniform enforcement.
Climate variability: Changing flood frequencies undermine fixed five, 25 and 100 year return period assumptions.
Pollution load: Untreated sewage and industrial effluent continue to enter the river despite protection orders.
Conclusion
The amendment ends the 2016 blanket ban on flood plain construction and installs a three zone regime that permits regulated building beyond the five year flood line after clearances. The government frames this as correcting a legal inconsistency, while the ecological question is whether an approval based system can protect the river’s recharge and pollution buffer as effectively as an outright prohibition did. The next test lies in how clearances are granted and whether active flood plain protection holds against development pressure.
Back2Basics:
Foundational Context: Ganga Rejuvenation in India
About: Ganga rejuvenation is a national programme to abate pollution and conserve and rejuvenate the river through sewage treatment, riverfront management and flow protection.
Scale: The Ganga basin covers roughly one fourth of India’s land area and supports a large share of the population.
Institutional design: The effort is coordinated by the National Mission for Clean Ganga under the National Ganga Council, with the Jal Shakti Ministry as the nodal ministry.
Approach: It combines infrastructure such as sewage treatment plants with regulatory tools such as flood plain zoning and construction control.
Statutory Framework Governing the Ganga
Environment (Protection) Act, 1986: The parent statute under which the 2016 River Ganga Authorities Order and its amendment are notified.
Water (Prevention and Control of Pollution) Act, 1974: Establishes pollution control boards that regulate effluent discharge into the river.
River Ganga (Rejuvenation, Protection and Management) Authorities Order, 2016: Creates the tiered institutional structure, including the National Ganga Council and NMCG, and governs flood plain regulation.
National Green Tribunal Act, 2010: Constitutes the forum where flood plain and riverfront disputes are adjudicated.
National Mission for Clean Ganga (NMCG)
Nature: Implementation wing for Ganga rejuvenation and the Namami Gange programme.
Governing framework: Registered as a society and given statutory backing through the River Ganga Authorities Order, 2016.
Parent body: Functions under the National Ganga Council, chaired by the Prime Minister.
Nodal ministry: Department of Water Resources, River Development and Ganga Rejuvenation under the Jal Shakti Ministry.
Mandate: Ensures effective abatement of pollution and rejuvenation of the river by adopting a comprehensive, basin wide approach.
Government Initiatives / Schemes for Ganga Rejuvenation
Namami Gange Programme: Integrated conservation mission covering sewage treatment, riverfront development, afforestation and biodiversity.
Arth Ganga: Model to build a sustainable economic bridge between the river and people through livelihoods, tourism and natural farming along the banks.
Ganga Gram: Programme for sanitation and solid waste management in villages along the river.
Jal Shakti Abhiyan: Water conservation campaign that supports groundwater recharge in the basin.
Key Facts about the Ganga
Length: The river runs roughly 2,525 kilometres from Gomukh to the Bay of Bengal.
National River: The Ganga was declared India’s National River in 2008.
Flood plain zones: The amended order recognises active, regulatory and warning zones based on five, 25 and 100 year flood frequencies.
Dolphin link: The Gangetic dolphin, the National Aquatic Animal, depends on healthy river flow.
Challenges in Ganga Conservation
Sewage burden: A large volume of untreated urban sewage continues to reach the river.
Industrial effluent: Tanneries and other industries discharge pollutants along the course.
Reduced flow: Barrages, abstraction and diversion lower ecological flow in stretches.
Flood plain encroachment: Construction and settlement erode the river’s natural buffer.
Coordination gaps: Multiple states and agencies weaken uniform enforcement.
Solid waste and religious use: Immersion waste and idol immersion add pollution loads.
Way Forward
Complete flood plain mapping: Finalise accurate zonation to make the three tier regime enforceable.
Strengthen sewage treatment: Close the gap between sewage generated and treatment capacity.
Ensure ecological flow: Mandate minimum environmental flows across barrages.
Tighten clearance scrutiny: Apply strict, transparent conditions before approving construction in regulatory and warning zones.
Empower basin governance: Reinforce NMCG and state bodies with clear enforcement powers.
PYQ Relevance
[UPSC 2015] Discuss the Namami Gange and National mission for clean Ganga (NMCG) programmes and causes of mixed results from the previous schemes. What quantum leaps can help preserve the river Ganga better than incremental inputs?
Linkage: The PYQ directly connects with Ganga rejuvenation, conservation and the effectiveness of government interventions. The flood plain amendment highlights the challenge of balancing river conservation, pollution control and development pressures.
A Parliamentary Standing Committee flagged a major gap between training and employment under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), highlighting low wages, poor retention and distress migration.
What is DDU-GKY?
Ministry: Ministry of Rural Development.
Launched: 2014.
Target: Poor rural youth aged 15–35 years.
Nature: Placement-linked skill development scheme.
Training providers are assessed on training, placement and post-placement retention.
Implemented through Project Implementing Agencies (PIAs).
Key Findings of the Committee
18.38 lakh youth trained and 11.94 lakh placed as of March 2026.
Low wages and relocation costs lead to early job exits.
9.65 lakh women trained and 6.03 lakh placed.
PIAs focus more on initial placement than sustained employment.
Major Challenges
Skill-training does not match labour market demand.
Poor training quality and infrastructure.
Low wages reduce job retention.
Migration creates financial and social pressures.
Weak post-placement tracking.
Committee Recommendations
Near 100% placement tracking.
Mandatory industry linkages and local placement drives.
District-level placement cells.
Migration assistance, mentorship and retention support.
Assess PIAs on sustained employment, not just initial placement.
Set and monitor minimum wage employment targets.
Skill Development Initiatives
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
DAY-NRLM
Rural Self Employment Training Institutes (RSETIs)
Startup Village Entrepreneurship Programme (SVEP)
Skill India Digital
[2023, GS2, 15 marks] Skill development programs have succeed in increasing human resources supply to various sectors. In the context of the statement analyze the linkages between education, skill and employment.”
[2018] With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:
It is the flagship scheme of the Ministry of Labour and Employment.
It, among other things will also impart training in soft skills, entrepreneurship, financial and digital literacy.
It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.
Which of the statements given above is/are correct?
Government approved 1 billion polymer notes each of ₹10 and ₹20 for field trials, following an RBI proposal under Section 25 of the RBI Act, 1934.
What are Polymer Banknotes?
Made from a thin plastic film instead of cotton-paper.
More durable, moisture-resistant and hygienic.
Offer enhanced anti-counterfeiting features.
Have a longer circulation life, reducing replacement needs.
Government Approval
Denominations: ₹10 and ₹20.
Quantity: 1 billion each.
Will circulate alongside paper notes.
Regular issuance will depend on successful field trials.
Procurement is at an initial stage, so cost and timeline are not yet fixed.
Why Polymer Notes?
Longer life → lower replacement costs.
Higher security → difficult to counterfeit.
Better durability → resistant to dirt, water and wear.
Global precedent → used by several countries.
Currency Management: Key Facts
RBI: Sole issuer of banknotes, except ₹1 note.
Government of India: Issues coins and ₹1 note.
Section 22, RBI Act: RBI’s sole right to issue banknotes.
Section 24: Specifies permissible denominations.
Section 25: Design, form and material require Central Government approval on RBI recommendation.
Coinage Act, 2011: Governs coins and ₹1 note.
Back2Basics: RBI
Established under RBI Act, 1934; began operations in 1935.
Nationalised in 1949.
Functions as India’s central bank and monetary authority.
Manages currency, monetary policy, banking and payment systems.
[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.
The Centre has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme for electric two wheelers till 31 March 2028 and halved the per unit incentive to Rs 2,500 per kilowatt hour from Rs 5,000 earlier. The move signals a planned tapering of demand support as electric two wheeler costs fall and the market matures.
What is the PM E-DRIVE Scheme?
What it is: PM E-DRIVE is the central scheme providing demand incentives and support infrastructure for electric mobility, administered by the Ministry of Heavy Industries. It succeeds the earlier FAME programme as the main demand side push for electric vehicles.
Outlay and duration: It carries an outlay of Rs 11,900 crore and is implemented from 1 April 2024 till 31 March 2028.
Two wheeler support: For electric two wheelers, the scheme sets a total fund support of Rs 2,767 crore from the Ministry of Heavy Industries.
What has changed?
Timeline extended: The electric two wheeler segment has been extended till 31 March 2028.
Incentive halved: The per unit incentive is cut to Rs 2,500 per kilowatt hour from Rs 5,000 per kilowatt hour earlier.
Per vehicle cap lowered: The incentive is capped at Rs 5,000 per vehicle, down from Rs 10,000 per vehicle in FY 2024-25.
Eligibility window: Registered electric two wheelers can avail the Rs 2,500 per kilowatt hour incentive for the period between 1 April 2025 and 31 March 2028.
Price ceiling: The maximum ex factory price for an electric two wheeler to qualify is Rs 1.5 lakh.
Lower of two limits: The incentive is limited to the specified cap or 15 per cent of the ex factory price of the electric two or three wheeler, whichever is lower, and is subject to periodic review as vehicle costs fall.
Back2Basics: PM E-DRIVE Scheme
Ministry: Ministry of Heavy Industries.
Launch year: 2024, implemented from 1 April 2024 to 31 March 2028.
Outlay: Rs 11,900 crore.
Aim: Accelerate adoption of electric vehicles and build charging and testing infrastructure.
Beneficiaries: Buyers of electric two, three, and heavier vehicles, state transport undertakings, and charging infrastructure providers.
Government Initiatives for Electric Mobility
FAME India (Phase I and II): Earlier demand incentive scheme for electric and hybrid vehicles.
PLI Auto Scheme: Production Linked Incentive for advanced automotive technology products.
PLI ACC Battery Scheme: Incentive for domestic advanced chemistry cell battery manufacturing.
Vehicle Scrappage Policy: Phasing out unfit vehicles to spur cleaner replacements.
e-AMRIT portal: A one stop information platform on electric vehicles.
Key Facts about PM E-DRIVE
Successor scheme: PM E-DRIVE succeeds FAME II as the flagship electric mobility scheme.
Incentive metric: Support is calculated per kilowatt hour of battery capacity.
Segment coverage: Covers electric two wheelers, three wheelers, buses, trucks, and ambulances, plus charging infrastructure.
Challenges to Electric Vehicle Adoption
Charging infrastructure gap: Public charging networks remain thin outside major cities.
Battery import dependence: Reliance on imported cells and critical minerals raises cost and supply risk.
High upfront cost: Purchase prices stay above comparable petrol vehicles despite incentives.
Range and grid strain: Range anxiety and grid readiness limit uptake in some segments.
Recycling burden: End of life battery disposal needs robust recycling systems.
Incentive dependence: Demand remains sensitive to the level and continuity of subsidies.
“[2023, GS3, 15 marks] The adoption of electric vehicles is rapidly growing worldwide. How do electric vehicles contribute to reducing carbon emissions and what are the key benefits they offer compared to traditional combustion engine vehicles?”
[2025] With reference to India, consider the following pairs: Organization Union Ministry 1. The National Automotive BoardMinistry of Commerce and Industry 2. The Coir BoardMinistry of Heavy Industries 3. The National Centre for Trade InformationMinistry of Micro, Small and Medium Enterprises How many of the above pairs are correctly matched?
India’s electric mobility transition is gathering momentum as adoption rises and circular economy principles enter industrial policy. India’s policy has advanced the recycling tier of circularity through scrappage but neglected the higher priority reuse tier, exposing a gap where structurally sound vehicles are scrapped rather than retrofitted.
What is the circular economy hierarchy?
Definition: The circular economy is built on a hierarchy that prioritises reducing resource consumption, then reusing existing assets, and only recycling materials once products have genuinely reached the end of their useful life.
Reuse versus recycle: Recycling recovers materials after a product becomes waste, while reuse preserves functionality before the asset becomes waste. Reuse sits higher in the hierarchy.
What is vehicle retrofitment?
What it is: Retrofitment replaces the internal combustion engine, fuel system, and related components of an existing vehicle with an electric powertrain, while retaining the core vehicle structure.
Why it counts as reuse: By keeping a structurally sound chassis and body in service, it preserves and extends the value already embedded in the asset rather than recovering value only after the vehicle becomes waste.
How far has India progressed on recycling?
Rules framework: The Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021, and the Environment Protection (End of Life Vehicles) Rules, 2025, strengthened responsible vehicle recycling and material recovery.
Facilities on ground: As of January 2026, 129 Registered Vehicle Scrapping Facilities were operational across 21 States and Union Territories.
Vehicles processed: About 4.3 lakh vehicles had been processed through these facilities, building a formal ecosystem for recycling and resource recovery.
Why does retrofitment matter?
Per vehicle waste: A single two wheeler generates approximately 90 kilograms of recyclable material and 18 kilograms of landfill waste when scrapped.
Fleet scale burden: Scaled across India’s fleet of about 30 crore vehicles, a scrap first approach would generate 2.7 crore tonnes of recyclable material and 0.54 crore tonnes of landfill waste.
SDG alignment: Retrofitment supports United Nations Sustainable Development Goal 12 on responsible consumption and production by reducing material demand and waste.
Old but sound: A vehicle can be old yet retain a strong chassis, intact body, and years of service life, making retrofitting more circular than scrapping.
What is the three pathway vehicle hierarchy?
First pathway, continued use: Vehicles that remain safe, compliant, and efficient should keep operating with routine maintenance, since age alone should not trigger removal.
Second pathway, retrofitment: Vehicles with sound structure but ageing or polluting powertrains can be converted to electric through certified processes, extending life while cutting emissions.
Third pathway, scrappage: Vehicles with compromised safety, severe structural degradation, accident damage, or significant corrosion proceed to scrappage and recycling.
The missing middle path
Not a competition: Retrofitment is not a competing strategy to scrappage but the missing middle path that policy has not focused on yet.
Condition over age: Treating every ageing vehicle as a disposal candidate overlooks the chance to extend asset life while accelerating electrification.
Public acceptance: A condition assessed transition would make scrappage more acceptable, as citizens would see that older vehicles are assessed for transformation rather than dismissed indiscriminately.
What are the challenges to a reuse led EV transition?
Certification gap: Retrofitment needs robust certified conversion technology and testing standards to ensure safety.
Cost and financing: Conversion costs can rival buying a new two wheeler, limiting uptake without incentives.
Battery supply dependence: Electric powertrains depend on imported cells and critical minerals, a supply chain vulnerability.
Policy bias toward scrappage: Existing incentives favour scrappage and new vehicle purchase, leaving reuse unsupported.
Skilled workforce shortage: A trained network of certified retrofit workshops is largely absent at scale.
End of life battery waste: Retrofitted vehicles eventually generate battery waste requiring recycling infrastructure.
Conclusion
India’s transport transition is a question of resource efficiency, not a contest between new electric vehicles and older ones. Adopting an age assessed pathway that distinguishes continued use, retrofitment, and scrappage would align the transition with genuine circular economy principles. This would prevent waste before it is created and confine recycling to vehicles that have truly reached the end of their useful life.
What is Circular Economy? (Foundational Context)
About: A circular economy keeps materials and products in use for as long as possible, extracting maximum value before recovery and regeneration, in contrast to the linear take, make, dispose model.
Rationale: It exists to cut resource extraction, greenhouse gas emissions, and waste while sustaining economic value.
Named hierarchy: It rests on reduce, reuse, and recycle in that order of priority, with reduce and reuse ranked above recycling.
Key Concerns Regarding the Circular Economy
Recycling bias: Policy attention concentrates on recycling while the higher value reduce and reuse tiers are neglected.
Informal sector dominance: Much recycling occurs in the informal sector with poor environmental and safety standards.
Extended producer responsibility gaps: Enforcement of producer take back obligations remains weak.
Data deficits: Weak material flow data limits measurement of circularity outcomes.
Back2Basics: Sustainable Development Goal 12
What it is: SDG 12 is the goal on responsible consumption and production within the 2030 Agenda for Sustainable Development.
Adopted: It was adopted by United Nations member states in 2015.
Focus: It targets sustainable consumption patterns, resource efficiency, and reduced waste generation.
Relevance: Vehicle retrofitment directly advances its call for better resource efficiency and reduced waste.
Government Initiatives for EVs and Circularity
PM E-DRIVE Scheme: Provides demand incentives for electric two and three wheelers and other electric vehicles.
FAME India Scheme: Faster Adoption and Manufacturing of Electric Vehicles, supporting demand and charging infrastructure.
Vehicle Scrappage Policy: Encourages phasing out of unfit and polluting vehicles through registered scrapping facilities.
PLI schemes: Production Linked Incentives for advanced chemistry cell batteries and automobiles.
Way Forward
National vehicle hierarchy: Adopt a framework treating vehicles by condition rather than age alone.
Certified retrofit ecosystem: Standardise conversion technology and expand certified workshops.
Incentivise reuse: Extend fiscal support to retrofitment on par with scrappage and new purchase.
Strengthen battery circularity: Build reverse logistics and recycling for end of life batteries.
Skilling: Train technicians for certified electric powertrain conversion.
“[2025] Consider the following statements:
Statement I: Circular economy reduces the emissions of greenhouse gases.
Statement II: Circular economy reduces the use of raw materials as inputs. Statement III: Circular economy reduces wastage in the production process.
Which one of the following is correct in respect of the above statements?
(a) Both Statement II and Statement III are correct and both of them explain Statement I
(b) Both Statement I and Statement II are correct and Statement I explains Statement II
(c) Only one of the Statements II and III is correct and that explains Statement I
(d) Neither Statement II nor Statement III is correct
Question (2023, GS3): “The adoption of electric vehicles is rapidly growing worldwide. How do electric vehicles contribute to reducing carbon emissions and what are the key benefits they offer compared to traditional combustion engine vehicles?
