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GS Paper: GS3

  • Jharkhand to set up its first Tiger Safari near Palamau TR

    Why in the News?

    The Jharkhand government has announced to establish its first tiger safari in the fringe area of the Barwadih Western Forest Range in Latehar district, which is part of the Palamau Tiger Reserve (PTR).

    What is a Tiger Safari?

    • About: A tiger safari is a tourist activity where visitors observe tigers in natural-like habitats, usually around tiger reserves.
    • Legal Status: The Wildlife Protection Act, 1972 does NOT define tiger safaris but restricts construction in protected areas unless approved by the National Board for Wildlife.
    • Policy Origin: The idea was formally introduced in 2012 by the National Tiger Conservation Authority (NTCA) under its tourism guidelines.
    • Rules on Tiger Inclusion (2016): Initially, safaris were allowed only in buffer or fringe zones and could host rescued or conflict tigers, not zoo-bred ones.
    • Amended Rules (2019): The NTCA later allowed even zoo-bred tigers, with Central Zoo Authority (CZA) in charge of animal welfare.
    • Supreme Court Ruling (2024): The court ordered that safaris must be built outside core and buffer zones to protect wild habitats.

    About Jharkhand’s Tiger Safari Project:

    • Location: Planned in the Barwadih Western Range, outside core and buffer zones of Palamau Tiger Reserve (PTR), in line with the Supreme Court’s order.
    • Animal Inclusion: Will house only rescued, injured, or orphaned tigers from various reserves and zoos — not wild tigers from PTR.
    • Tourism and Employment: The project aims to boost tourism and create jobs for around 200 locals as guides and staff.
    • Approval Process: The plan is still in early stages. After state Forest Department approval, a Detailed Project Report (DPR) will go to NTCA and CZA.

    Back2Basics: Palamu Tiger Reserve

    • It is located in Jharkhand’s Latehar and Garhwa districts, is one of India’s oldest tiger reserves, established under Project Tiger in 1973.
    • Spanning over 1,014 sq. km, it features a diverse landscape of valleys, hills, plains and is nourished by rivers like the North Koel, Auranga, and Burha.
    • The reserve is rich in moist and dry deciduous forests, dominated by Sal and bamboo.
    • It is home to key wildlife species, including tigers, Asiatic elephants, leopards, and sloth bears.

     

    [UPSC 2020] Among the following Tiger Reserves, which one has the largest area under “Critical Tiger Habitat”?

    Options: (a) Corbett (b) Ranthambore (c) Nagarjunsagar-Srisailam* (d) Sunderbans

     

  • Steep decline: On the Index of Industrial Production

    Why in the News?

    India’s industrial output grew by only 2.7% in April 2025, the slowest pace in 8 months, showing a clear slowdown at the start of the new financial year (FY26).

    What are the key reasons behind the slowdown in India’s factory output and IIP growth in April 2026?

    • Weak Performance of Core Sectors: The eight core industries, which have a 40% weight in the IIP, grew by just 0.5% in April 2026, the lowest in eight months. Eg: Refinery products, steel, and cement showed subdued output, dragging overall industrial growth.
    • Contraction in Mining Activity: Mining output shrank by 0.2%, marking its first contraction since August 2024, adversely affecting raw material availability for other industries. Eg: Reduced coal and mineral extraction hit electricity generation and steel production.
    • Slowdown in Manufacturing and Electricity Generation: Manufacturing grew only by 3.4% (down from 4.2%) and power generation by 1.1% (down from 10.2%). Eg: Weak electricity demand and reduced industrial usage reflected sluggish overall economic activity.
    • Trade and Tariff-Related Uncertainties: Global trade volatility, tariffs, and supply chain disruptions have reduced demand for export-oriented goods. Eg: Decline in orders from U.S. and EU markets affected electronics and textile manufacturing.
    • Persistently Low Rural Demand: Consumer non-durables contracted for the third consecutive month, indicating weak rural consumption despite low inflation. Eg: Low sales of food and hygiene products in rural markets signal demand compression in the FMCG sector.

    Why is the contraction in consumer non-durables output a concern for rural consumption trends?

    • Indicates Weak Rural Demand: Consumer non-durables, such as food and hygiene products, form a major part of rural consumption. A contraction suggests low purchasing power and reduced rural spending. Eg: Declining sales of items like cooking oil, soap, and packaged food in rural areas reflect demand stagnation.
    • Signals Broader Economic Distress in Agriculture-Dependent Households: Despite low inflation, rural incomes haven’t risen due to falling crop prices and below-MSP realizations. This affects demand for basic goods. Eg: Farmers selling wheat and pulses below MSP in mandis earn less, reducing their ability to buy essential goods.
    • Affects Industrial and FMCG Sector Recovery: Sustained low rural consumption weakens demand for consumer non-durables, impacting production and profits in the FMCG and small-scale industries. Eg: Companies like Hindustan Unilever or Dabur see lower rural sales, leading to reduced factory output and job cuts.

    How can implementing MSPs more systematically help boost rural incomes and demand?

    • Ensures Price Stability and Income Security for Farmers: A guaranteed MSP reduces the risk of distress sales and provides a stable income floor for farmers, encouraging spending. Eg: If paddy is procured at the MSP instead of below-market rates, farmers are assured of fair returns, enabling them to spend on consumption and inputs.
    • Enhances Rural Purchasing Power and Consumption Demand: Higher farm incomes lead to greater spending on goods and services, especially consumer non-durables, which form a bulk of rural consumption. Eg: A farmer earning better returns on wheat is more likely to purchase goods like clothing, packaged food, and household items.
    • Stimulates Local Economies and Industrial Output: With higher rural demand, local businesses and FMCG industries see increased sales, encouraging higher production and employment. Eg: Higher MSP-based procurement leads to better incomes in Punjab, increasing demand for tractors, fertilizers, and daily-use goods, boosting factory output.

    Who should drive capital expenditure to revive demand?

    • Private Sector as the Primary Driver: The private sector must lead CapEx to create productive assets, jobs, and income, especially in manufacturing and infrastructure. Eg: Large firms investing in semiconductor plants or logistics hubs generate employment and boost demand for allied sectors.
    • Government as a Catalyst through Public Investment: The government should maintain strong capital spending on infrastructure, rural development, and connectivity to crowd in private investment. Eg: Projects like Bharatmala or PM Gati Shakti improve transport networks, encouraging private factories and warehousing units to set up nearby.
    • Public-Private Partnerships (PPPs) to Leverage Resources and Efficiency: PPPs can combine government support with private expertise and funding, especially in sectors like renewable energy, urban transport, and health. Eg: Hybrid Annuity Model (HAM) in road construction allows private players to build highways with shared investment risk, boosting economic activity.

    Way forward: 

    • Boost Rural Demand through Targeted MSP Implementation and Welfare Schemes: Ensure systematic MSP procurement and expand rural employment and income support to revive consumption of consumer non-durables and support FMCG growth.
    • Accelerate CapEx through Private Investment and Strategic Public Spending: Encourage private sector-led capital expenditure in manufacturing and infrastructure, complemented by government investments in connectivity and logistics to stimulate industrial output and job creation.

    Mains PYQ:

    [UPSC 2016] The nature of economic growth in India in recent times is often described as a jobless growth. Do you agree with this view? Give arguments in favour of your answer.

    Linkage: The concept of “jobless growth” is highly relevant in a scenario where economic expansion, or lack thereof, is debated in relation to employment generation. A slowdown in industrial output could exacerbate concerns about job creation.

  • JNCASR develops Fast-Charging Sodium-Ion Battery

    Why in the News?

    Scientists at Jawaharlal Nehru Centre for Advanced Scientific Research (JNCASR), Bengaluru have developed a super-fast charging Sodium-ion battery.

    About Sodium-Ion Battery and Its Working:

    • What it is: Sodium-ion batteries are rechargeable batteries that use sodium (Na⁺) ions to carry electric charge, instead of lithium.
    • How it works: During charging and discharging, sodium ions move between the anode (negative) and cathode (positive) — similar to how lithium-ion batteries function.
    • Innovation: A sodium-ion battery developed by JNCASR uses NASICON-type chemistry, a special material structure that ensures fast ion movement and stability.
    • Performance Boost: The team used nano-particles, added a carbon coating, and used aluminium doping to improve charging speed and battery life.
    • Fast Charging & Long Life: The battery can charge up to 80% in 6 minutes and last over 3,000 charge-discharge cycles.
    • Tested for Safety: The battery passed tests using electrochemical cycling and quantum simulations, proving it is safe and durable.

    Advantages over Lithium-Ion Batteries:

    • Sodium is abundant and cheaper than lithium, and it can be extracted from seawater.
    • Sodium-ion batteries are safer, as they can be transported at zero voltage and used in high temperatures without risk of fire.
    • They are more eco-friendly, with less environmental damage during extraction compared to lithium.
    • Material costs are lower because they use aluminium instead of copper.
    • India can reduce its dependence on China, which controls much of the lithium battery supply chain.
    • These batteries are ideal for renewable energy applications, such as solar grids, electric vehicles, drones, and rural electrification in extreme climates.
    [UPSC 2025] In the context of electric vehicles, consider the following elements:

    I. Cobalt II. Graphite III. Lithium IV. Nickel

    How many of the above usually make up battery cathodes?

    (a) Only one (b) Only two (c) Only three * (d) All the four

     

  • Quality Council of India (QCI)

    Why in the News?

    The Minister of State for Commerce and Industry inaugurated the new unified headquarters of the Quality Council of India (QCI) at the World Trade Centre in New Delhi.

    About Quality Council of India (QCI):

    • Establishment: QCI was set up in 1997 as an autonomous, non-profit body through a public-private partnership between the GoI and industry associations ASSOCHAM, CII, and FICCI.
    • Legal Status: It is registered under the Societies Registration Act, 1860.
    • Leadership: Ratan Tata was QCI’s first Chairman; the current chairman is appointed by Prime Minister.
    • Parent Department: QCI works under the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry.
    • Role: Acts as India’s national accreditation body, offering independent assessments of products, services, and processes.
    • Mission: To improve quality standards in key areas like education, healthcare, environment, governance, and infrastructure.
    • Financial Model: It is a self-sustaining organisation, generating its own revenue without regular government funding.

    Structure, Divisions, and Key Functions:

    • Governing Council: A 38-member council with equal representation from government, industry, and stakeholders oversees QCI.
    • Key Divisions: QCI operates through 5 major boards, each focusing on a different sector:
      1. National Accreditation Board for Testing and Calibration Laboratories
      2. National Accreditation Board for Hospitals and Healthcare Providers
      3. National Accreditation Board for Education and Training
      4. National Accreditation Board for Certification Bodies
      5. National Board for Quality Promotion
    • Core Activities:
      • Develops accreditation systems and quality frameworks.
      • Conducts third-party audits for schemes like Swachh Bharat Abhiyan and Pradhan Mantri Kaushal Vikas Yojana.
      • Runs the National Quality Campaign to build a culture of quality across sectors.
      • Helps boost India’s global competitiveness through quality certification and awareness initiatives.
    [UPSC 2017] With reference to Quality Council of India (QCI), consider the following statements:

    1. QCI was set up jointly by the Government of India and the Indian Industry.

    2. Chairman of QCI is appointed by the Prime Minister on the recommendations of the industry to the Government.

    Which of the above statements is/are correct?

    Options: (a) 1 only (b) 2 only (c) Both 1 and 2* (d) Neither 1 nor 2

     

  • 17th Edition of Exercise Nomadic Elephant

    Why in the News?

    The 17th edition of the India–Mongolia Joint Military Exercise NOMADIC ELEPHANT is being held in Ulaanbaatar, Mongolia from May 31 to June 13, 2025.

    About Exercise NOMADIC ELEPHANT:

    • About: It is a bilateral military exercise between the Indian Army and the Mongolian Armed Forces.
    • Launch Year: It was first conducted in 2004 in Mongolia, followed by the second edition in 2005 in Vairengte, Mizoram.
    • Frequency and Hosting: The exercise is held annually, with India and Mongolia alternating as hosts.
    • Recent Editions: The 15th edition was conducted in Ulaanbaatar in July 2023, and the 16th edition was held at Umroi, Meghalaya in July 2024.

    Objectives and Focus:

    • Interoperability: The main goal is to improve joint operational coordination between the two-armed forces.
    • Terrain Focus: It trains troops for task force operations in semi-urban and mountainous regions under a UN peacekeeping mandate.
    • Counter-Terrorism Training: The exercise enhances capabilities in counter-terrorism and counter-insurgency operations.
    • Regional Cooperation: It helps build mutual trust, encourages regional peace, and supports strategic cooperation.
    [UPSC 2008] ‘Hand-in-Hand 2007’, a joint anti-terrorism military training was held by the officers of the Indian Army and officers of the Army of which one of the following countries?

    Options: (a) China (b) Japan (c) Russia (d) USA*

     

  • Govt. releases Provisional GDP Estimates

    Why in the News?

    The Ministry of Statistics and Programme Implementation (MoSPI) released two important data sets on May 30, 2025 — one for India’s GDP growth in Q4 (January–March) FY25, and another for the provisional estimates for the entire FY25 (2024–25).

    How is Economic Growth measured?

    • Gross Domestic Product (GDP) measures economic growth by adding all expenditures in the economy — including private, government, and business spending. It shows demand-side performance.
    • Gross Value Added (GVA) measures the supply-side. It calculates how much value is added by each sector of the economy.
    • GDP and GVA are related:
      GDP = GVA + (Taxes) – (Subsidies)
    • MoSPI reports both in:
      • Nominal terms: Includes current prices.
      • Real terms: Adjusted for inflation to reflect true growth.

    Why are these Estimates called “Provisional”?

    • GDP estimates are revised in stages:
      • January: First Advance Estimates (FAE)
      • February: Second Advance Estimates (SAE)
      • May: Provisional Estimates (PE)
    • Final figures come later:
      • First Revised Estimate: After 1 year
      • Final Estimate: After 2 years
    • FY25’s final numbers will come in 2026 and 2027.

    Key Takeaways from FY25 Data

    • India’s Economy Size:
      • India’s economy is now worth ₹330.7 lakh crore or $3.87 trillion.
      • GDP grew by 9.8%, which is slower than in previous years.
    • Real GDP Growth:
      • After removing inflation, real GDP grew by 6.5%.
      • This is slower than the 9.2% growth seen last year (as mentioned in the Provisional Estimates). (Disputed: India’s real GDP growth rate was 8.2% in FY 2023-24 as per Economic Survey.)
    • Sector Performance:
      • Agriculture grew well at 4.6%.
      • Manufacturing grew only 4.5%, which is a concern.
      • Construction was strong with 9.4% growth.
      • Services grew by 7.2%.
    • Manufacturing Worry:
      • Manufacturing is growing slower than agriculture.
      • This is affecting urban jobs, especially for youth.
    • Best Growth in Jan–Mar 2025 (Q4):
      • GDP growth was 7.4% in Q4 — the highest for the year.
      • Construction grew fastest at 10.8%.
      • Agriculture and Services also did well.
    • Spending Trends:
      • People spent more — household spending rose 7.2%.
      • Investment in assets grew 7.1%, slower than last year.

     

    [UPSC 2015] With reference to Indian economy, consider the following statements:

    (1) The rate of growth of Real Gross Domestic product has steadily increased in the last decade. (2) The Gross Domestic product at market prices (in rupees) has steadily increased in the last decade.

    Which of the statements given above is/are correct?

    Options: (a) 1 only (b) 2 only* (c) Both 1 and 2 (d) Neither 1 nor 2

     

  • Danger in the sea: On Kerala and the MSC Elsa 3 sinking

    Why in the News?

    The container ship MSC Elsa 3 sank off the coast of Kochi on May 24, triggering a major environmental and maritime safety crisis that could turn into one of India’s worst maritime pollution disasters.

    What led to the sinking of MSC Elsa 3?

    • Operational Failure at Sea: On May 24, MSC Elsa 3 began tilting off the coast of Kochi due to an unspecified operational problem. Despite attempts by the crew, the ship could not be stabilised.
    • Aging Vessel and Abandonment by Crew: Although structurally considered safe, the ship was nearly 30 years old. The crew abandoned it after unsuccessful efforts to right it, leading to its eventual sinking.
    • Unfavourable Sea Conditions: Monsoon-related rough weather worsened the situation, with containers dislodging and floating, further destabilising the vessel before it sank to a depth of 50 metres.

    Why are the sunken containers considered hazardous?

    • Reactive Chemicals: Some containers hold substances that react dangerously with water, posing immediate chemical and fire hazards. Eg: 12 containers had calcium carbide, which reacts with seawater to produce acetylene gas, a highly flammable and explosive compound.
    • Toxic Leakage: Leaked substances from damaged containers can pollute seawater and pose health hazards to marine life and humans. Eg: A container with rubber solution leaked and reacted with seawater, leading to the appearance of plastic pellets along the Kerala coast.
    • Long-Term Environmental Impact: Chemicals from sunken containers can gradually seep out, causing persistent marine pollution and ecological damage. Eg: If not retrieved, chemicals from these containers may enter the food chain, harming marine biodiversity and impacting fisheries.

    Who handles oil spill response in India?

    The Indian Coast Guard is the nodal agency under the National Oil Spill Disaster Contingency Plan (NOS-DCP).

    How does this incident test India’s maritime disaster readiness?

    • Inter-agency Coordination: Effective disaster response requires smooth coordination between multiple agencies such as the Coast Guard, pollution control boards, and port authorities. Eg: In the 2017 Chennai oil spill, response was delayed due to confusion and poor coordination, leading to severe coastal damage.
    • Emergency Response Infrastructure: The ability to quickly deploy salvage teams, pollution control equipment, and monitoring systems is essential. Eg: After MSC Elsa 3 sank, authorities had time to prepare, making it a critical test of India’s readiness to act swiftlybefore oil or chemicals leak.
    • Policy Implementation and Preparedness: Real-time implementation of national plans and compliance with international protocols demonstrate operational strength. Eg: The National Oil Spill Disaster Contingency Plan (NOS-DCP) designates the Coast Guard as the nodal agency, and this incident checks how well the plan is executed.

    What are the steps taken by the Indian Government? 

    • Activation of Nodal Agencies: The Indian Coast Guard has been designated as the nodal agency under the National Oil Spill Disaster Contingency Plan (NOS-DCP) to coordinate the response. Eg: In the MSC Elsa 3 case, the Coast Guard is actively engaged in monitoring oil leakage and coordinating salvage efforts.
    • Deployment of Salvage Operations: Salvage teams are being engaged following international insurance protocols to prevent further environmental damage. Eg: Authorities have mobilised professional salvers to safely retrieve containers and prevent hazardous leaks from the sunken ship.
    • Monitoring and Cleanup Measures: Environmental agencies have been tasked with identifying and addressing the pollution caused, including plastic pellets and chemical residues. Eg: The Kerala government is coordinating with central pollution control authorities to manage the shoreline impactand protect marine life.

    Way forward: 

    • Strengthen Maritime Hazard Protocols and Container Screening: India must enforce stricter pre-shipment screening of cargo for hazardous materials and mandate real-time tracking of containers carrying reactive or toxic substances.
    • Enhance Rapid Response Infrastructure and Inter-agency Coordination: Develop a unified maritime disaster response framework with clearly defined roles for all agencies — Coast Guard, pollution boards, port authorities, and state governments.

    Mains PYQ:

    [UPSC 2022] Discuss in detail the photochemical smog emphasizing its formation, effects and mitigation. Explain the 1999 Gothenburg Protocol.

    Linkage: The MSC Elsa 3 incident directly involves environmental pollution, specifically marine pollution from hazardous cargo and fuel oil, necessitating mitigation efforts. This question reflects the UPSC’s interest in environmental pollution issues.

  • Pedicularis rajeshiana: New plant species from Himalayas

    rajesh

    Why in the News?

    A new plant species named Pedicularis rajeshiana has been discovered in the western Himalayas of India.

    About Pedicularis rajeshiana:

    • Discovery: It is a newly discovered plant species found at Rohtang Pass, Himachal Pradesh, at an altitude of 4,390 metres.
    • Research Publication: The discovery was made by a scientist from the Botanical Survey of India (BSI), Dehradun, and published in the journal Phytotaxa.
    • Plant Family: It belongs to the Orobanchaceae family and is part of the Lousewort group of plants.
    • Plant Type: It is a hemiparasitic plant, meaning it draws some nutrients from nearby plants but also performs photosynthesis.
    • Habitat: Grows on shaded, rocky mountain slopes, making it rare and possibly endangered due to its specific environment.
    • Diversity: With this addition, India now has 83 Pedicularis species, including 36 in the western Himalayas.

    Key Features of the Plant:

    • Unique Floral Structure:
      • Flowers have a deeply cut lower lip and stamens at three different levels — a very rare combination.
      • Some flowers show a twin galea (double hood), never observed before in this genus, possibly an evolutionary trait to enhance pollination.
    • Microscopic Details: Pollen grains have a croton-like texture and a distinct shape, confirmed through microscope studies.
    • Distinctiveness: Compared to related species like P. porrecta and P. heydei, this plant is smaller, with fewer flowers and leaflets.
    [UPSC 2018] Why is a plant called Prosopis juliflora often mentioned in news?

    Options: (a) Its extract is widely used in cosmetics. (b) It tends to reduce the biodiversity in the area in which it grows. * (c) Its extract is used in the synthesis of pesticides. (d) (None of the above.

     

  • Initial Public Offering (IPO)

    Why in the News?

    OpenAI has announced its readiness for a future Initial Public Offering (IPO).

    Laws Governing IPOs in India:

    • SEBI Act, 1992: Empowers SEBI to regulate capital markets and IPO processes.
    • Companies Act, 2013: Governs company formation, prospectus rules, and disclosure norms.
    • SEBI (ICDR) Regulations, 2018: Specifies detailed rules on IPO eligibility, pricing, disclosure, and allotment.
    • Securities Contracts (Regulation) Act, 1956:  Regulates the listing and trading of securities on stock exchanges.
    • SEBI (LODR) Regulations, 2015: Mandates continuous disclosure requirements and corporate governance standards for listed companies.

    What is an IPO?

    • Definition: An IPO is when a private company offers its shares to the public for the first time.
    • Objective: It marks the company’s move to become a publicly listed company on a stock exchange.
    • End Goal: Through an IPO, companies raise money from investors, and the public gets a chance to become shareholders.

    How is an IPO Listed in India?

    • Regulatory Filing: A company must file an offer document with SEBI (Securities and Exchange Board of India).
    • Offer Document Includes:
      • Details of the company and promoters.
      • Financial history and business goals.
      • The reason for raising capital and IPO structure.
    • SEBI Approval: After review, SEBI gives permission for the listing process to begin.

    IPO Eligibility & Pricing:

    • Eligibility Criteria (SEBI Rules):
      • Minimum Rs 3 crore in tangible assets in the last 3 years.
      • Minimum Rs 1 crore in net worth each year for 3 years.
      • Rs 15 crore average pre-tax profit in at least 3 out of the last 5 years.
    • Who sets the Price:
      • The company and its merchant banker decide the price based on valuation.
      • Factors include assets, profits, and future growth.
      • SEBI does NOT fix IPO prices.

    Who can invest in an IPO?

    • Eligibility: Anyone 18 years or older with a brokerage account can apply.
    • Investor Categories:
      1. Qualified Institutional Buyers (QIBs): Mutual funds, banks, insurance firms, FPIs, etc.
      2. Retail Investors: Individuals investing up to Rs 2 lakh.
      3. High Net Worth Individuals (HNIs): Investing more than Rs 2 lakh.
    [UPSC 2025] Consider the following statements:

    I. India accounts for a very large portion of all equity option contracts traded globally, thus exhibiting a great boom.

    II. India’s stock market has grown rapidly in the recent past, even overtaking Hong Kong’s at some point in time.

    III. There is no regulatory body either to warn small investors about the risks of options trading or to act on unregistered financial advisors in this regard.

    Which of the statements given above are correct?

    Options: (a) I and II only* (b) II and III only (c) I and III only (d) I, II and III

     

  • Continuation of Modified Interest Subvention Scheme (MISS) 

    Why in the News?

    The Union Cabinet has approved the continuation of the Interest Subvention (IS) component under the Modified Interest Subvention Scheme (MISS) for the financial year 2025–26.

    About Modified Interest Subvention Scheme (MISS):

    • Central Sector Scheme: It helps farmers get low-interest short-term loans through the Kisan Credit Card (KCC).
    • Nodal Agencies: The scheme is monitored by RBI and NABARD and implemented through Public Sector Banks, RRBs, Cooperative Banks, and Private Banks.
    • Loan Details:
      • Borrowing Limit: Farmers can borrow up to ₹3 lakh at 7% interest.
      • Interest Support: Banks get 1.5% interest support from the government, helping them offer cheaper loans.
      • Extra Discount: Farmers who repay on time get a 3% Prompt Repayment Incentive, reducing their effective interest rate to 4%.
      • For Livestock & Fisheries: Loans up to ₹2 lakh also qualify for this benefit.
    • Digital Support: The Kisan Rin Portal (KRP), launched in August 2023, improves transparency and tracking of loan disbursal.

    Back2Basics: Kisan Credit Card (KCC) Scheme

    • Launch: Started in 1998 based on the R.V. Gupta Committee’s recommendation.
    • Who implements it: Managed by Commercial Banks, RRBs, Cooperative Banks, and Small Finance Banks.
    • Purpose and Uses:
      • Gives quick and easy loans for crop expenses, post-harvest needs, and household costs.
      • Supports dairy, poultry, fisheries, and other allied activities.
      • Offers credit for farming-related business investments.
    • Key Features:
      • Collateral-free loans up to ₹2 lakh.
      • Interest rates as low as 4% with timely repayment (under MISS).
      • Loan limit raised to ₹5 lakh in Budget 2025–26.
      • Uses a revolving credit system — farmers can borrow and repay as needed.
      • Flexible repayment is aligned with crop cycles to reduce stress.
    • Additional Benefits:
      • Includes crop insurance under PM Fasal Bima Yojana (PMFBY).
      • Since 2018–19, also covers farmers in animal husbandry and fisheries.
      • Helps farmers avoid moneylenders, promoting financial inclusion.

     

    [UPSC 2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

    1. Working capital for maintenance of farm assets

    2. Purchase of combine harvesters, tractors and mini truck

    3. Consumption requirements of farm households

    4. Post-harvest expenses

    5. Construction of family house and setting up of village cold storage facility

    Select the correct answer using the code given below:

    Options: (a) 1, 2 and 5 only (b) 1, 3 and 4 only* (c) 2, 3, 4 and 5 only (d) 1, 2, 3, 4 and 5