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GS Paper: GS3

  • Culling of Vermins

    Why in the News?

    The Kerala Cabinet is exploring the legal possibility of introducing a bill to permit scientific and regulated culling of wild animals, particularly feral boars.

    What are Vermins?

    • Definition: Vermins are animals considered harmful or nuisance-causing because they damage crops, threaten livestock, or pose risks to human life and property.
    • Examples: Common vermins include rats, mice, common crows, and fruit bats.
    • Legal Effect: When an animal is classified as vermin, it loses legal protection and becomes exempt from conservation safeguards.

    Provisions Related to Vermin in Wildlife Protection Act (WPA), 1972:

    • Schedule V: Lists animals classified as vermin, which can be hunted freely.
    • Section 62: Allows the central government to declare any wild animal (except those in Schedule I and Part II of Schedule II) as vermin for a specified area and time period.
    • Protection Status: Once declared vermin, the animal is treated as a Schedule V species, losing protection.
    • Exclusions: Animals in Schedules I and II (e.g., tigers, elephants) enjoy the highest protection and cannot be declared vermin.
    • Section 11: Chief Wildlife Wardens can allow trapping, capture, or killing of animals like wild boars in cases of public safety or property damage.
    • Wildlife Protection (Amendment) Act, 2022:
      • Reduction of Schedules: From six to four, with Schedule V has been removed.
      • Direct Declaration Power: It allows the Centre to directly declare any species (except those in Schedule I) as vermin, enabling broader culling without the older categorisation system.

    How are Vermins Declared?

    • State Initiation: The state sends a formal request to the Ministry of Environment, Forest and Climate Change (MoEFCC).
    • Declaration: If justified, the Centre issues a notification, declaring the species vermin for a specific region and time frame.
    • Temporary Status: This declaration is not permanent and applies only to the area and time mentioned.
    • Examples:
      • Wild boar in Uttarakhand
      • Nilgai (blue bull) in Bihar
      • Rhesus monkeys in Himachal Pradesh
    [UPSC 2024] Consider the following statements:

    Statement-I: The Indian Flying Fox is placed under the “vermin” category in the Wild Life (Protection) Act, 1972.

    Statement-II: The Indian Flying Fox feeds on the blood of other animals. Which one of the following is correct in respect of the above statements?

    Options: (a) Both statement I and Statement II are correct and statement II explains statement I (b) Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I (c) Statement- I is correct , but Statement II is incorrect* (d) Statement-I is incorrect, but Statement-II is correct

     

  • [29th May 2025] The Hindu Op-ed: India’s financial sector reforms need a shake-up

    PYQ Relevance:

    [UPSC 2013] The product diversification of financial institutions and insurance companies, resulting in overlapping of products and services strengthens the case for the merger of the two regulatory agencies, namely SEBI and IRDA. Justify.

    Linkage: The structure and efficiency of financial sector regulation by discussing the potential merger of two key regulatory bodies (SEBI for capital markets and IRDA for insurance). In this article, talks about the reforming India’s Financial Sector” calls for a “coherent, forward-looking strategy that harmonises rules across verticals” and mentions the need for regulatory scrutiny and transparency.

     

    Mentor’s Comment:  India’s financial sector is at a critical turning point. Even after years of policy changes, major problems remain — especially in areas like corporate bond markets, retirement savings, nomination rules across banks and financial services, and the growing risks from unregulated shadow banking. These aren’t just small technical issues; they are deep flaws that hurt investor confidence, customer safety, and the country’s economic strength.

    Today’s editorial will talk about the issues related to the Financial sector in India. This content would help in GS Paper III ( Indian Economy).

    _

    Let’s learn!

    Why in the News?

    There must be consistent rules across all financial sectors, support for a strong corporate bond market, active development of retirement savings options, and better regulation to control shadow banking.

    What are the major structural issues plaguing India’s financial sector?

    • Fragmented Nomination Rules Across BFSI Sectors: Inconsistent nomination rules in banks, mutual funds, and insurance create confusion and legal disputes. Eg: A person can nominate multiple people for a mutual fund but only one for a bank account, with different legal interpretations of nominee rights—leading to litigation among family members.
    • Underdeveloped Corporate Bond Market: The bond market remains shallow, illiquid, and lacks transparency, increasing the cost of capital for businesses. Eg: The RBI once directed the NSE to build a secondary bond market, but the exchange prioritized more profitable equity trading instead.
    • Opaque Capital Flows and Weak UBO Disclosures: Lack of transparency in identifying Ultimate Beneficial Owners (UBOs) hinders regulatory oversight. Eg: SEBI struggled to get ownership details from Mauritius-based Elara and Vespera Funds, delaying investigations into their Indian stock market investments.
    • Unregulated Shadow Banking Activities: NBFCs and brokers offer bank-like services without full regulatory supervision, exposing the system to financial risks. Eg: Brokers provide margin funding to retail investors at interest rates over 20%, without clear disclosure—mirroring unregulated lending seen before the 2008 global financial crisis.

    Why is a harmonised nomination framework across BFSI (Banking, Financial Services, and Insurance) verticals necessary?

    • Reduces Legal Ambiguity: Different sectors (banks, mutual funds, insurance) treat nominees differently—causing confusion between nominee rights and legal heirs’ claims. Eg: A nominee in a mutual fund may only act as a trustee, while in a life insurance policy, the nominee may receive full benefits—leading to conflicting court battles.
    • Prevents Exploitation of Loopholes: Inconsistent rules create loopholes that can be exploited by unscrupulous actors to divert funds or delay inheritance. Eg: A person can deliberately name different nominees across instruments to cause confusion or suppress rightful heir claims.
    • Simplifies Compliance for Citizens: A uniform nomination system makes it easier for ordinary people to understand, update, and track their financial nominations. Eg: A senior citizen managing multiple accounts would benefit from a single, standard process rather than navigating different forms and rules for each institution.
    • Reduces Litigation and Administrative Burden: Courts and financial institutions face prolonged legal disputes due to conflicting nominee laws, which could be avoided with uniformity. Eg: Banks and mutual funds spend years contesting claims when legal heirs and nominees disagree—slowing down asset transfer.
    • Increases Trust and Transparency: Harmonisation builds trust in the financial system by making processes predictable and fair, thus encouraging formal savings. Eg: When savers know that nomination rules are clear and uniformly applied, they are more likely to invest in insurance or mutual funds without hesitation.

    How can a well-developed corporate bond market benefit India’s economy?

    • Lowers Cost of Capital for Businesses: A deep bond market enables companies to raise funds at competitive interest rates, reducing their dependence on bank loans. Eg: An efficient bond market could lower borrowing costs by 2–3%, improving viability for sectors like infrastructure and manufacturing.
    • Diversifies Sources of Funding: It provides an alternative to bank financing, thereby reducing systemic risks and enhancing financial stability. Eg: Large firms like NTPC or Reliance can raise capital directly from investors through bonds, easing pressure on public sector banks.
    • Encourages Long-Term Investment: Corporate bonds are ideal for funding long-gestation projects like highways, power plants, and green energy, attracting pension funds and insurance firms. Eg: The National Investment and Infrastructure Fund (NIIF) can tap bond markets to finance long-term infrastructure.
    • Boosts Financial Market Development: A vibrant bond market leads to greater depth, liquidity, and transparency in the financial system. Eg: Countries like South Korea and Malaysia have developed strong bond markets that support efficient capital allocation.
    • Enhances Retail Participation and Savings Mobilization: If made accessible and credible, bond markets can attract retail investors, expanding financial inclusion and mobilizing household savings. Eg: Government-backed platforms could offer secure corporate bonds to middle-class savers as an alternative to fixed deposits.

    Who is responsible for regulating and curbing the risks of shadow banking in India?

    • Reserve Bank of India (RBI): RBI regulates Non-Banking Financial Companies (NBFCs), ensuring they comply with capital adequacy, liquidity norms, and risk management frameworks. Eg: After the IL&FS crisis, RBI tightened norms on NBFCs’ asset-liability management and enhanced their supervision.
    • Securities and Exchange Board of India (SEBI): SEBI oversees brokers, margin lenders, and mutual funds that may engage in shadow banking-like activities, ensuring transparency in trading and lending practices. Eg: SEBI took steps to curb margin funding risks offered by brokers to retail investors under complex lending structures. 
    • Ministry of Finance: The Ministry designs regulatory frameworks and inter-agency coordination, enabling RBI and SEBI to monitor and respond to emerging risks in shadow banking. Eg: The government supported RBI’s proposal to bring large NBFCs under bank-like regulations and backed a risk-based supervision model.

    Way forward: 

    • Unified and Risk-Based Regulatory Framework: Adopt a harmonised, activity-based regulation where entities performing similar financial functions are subjected to similar oversight, regardless of their institutional form. Eg: Apply the same capital, disclosure, and consumer protection standards to both NBFCs and banks offering credit, ensuring no regulatory arbitrage.
    • Enhanced Supervisory Capacity and Real-Time Monitoring: Strengthen inter-agency coordination (RBI, SEBI, Ministry of Finance) and invest in AI-powered data analyticsto track complex transactions and hidden risks. Eg: Use advanced analytics to monitor NBFC balance sheets and digital lending platforms in real time, enabling early warning systems and prompt corrective action.

  • Why India is the 3rd-largest Economy, NOT 4th or 5th?

    Why in the News?

    Recently, the CEO of NITI Aayog announced that India has moved ahead of Japan to become the world’s fourth-largest economy.

    What is the key difference between nominal GDP and PPP-based GDP?

    • Nominal GDP: Measured using current market exchange rates in US dollars. Eg: If India’s GDP is ₹270 lakh crore and $1 = ₹75, then nominal GDP = ₹270 lakh crore ÷ 75 = $3.6 trillion.
    • PPP-Based GDP: Adjusted for differences in the cost of living and price levels between countries. Eg: If goods and services are cheaper in India, PPP adjusts the GDP upward to reflect greater actual consumption — India’s GDP could be $12 trillion in PPP terms, even though nominal GDP is lower.

    When did India become the third-largest economy by PPP estimates?

    In 2009, India overtook Japan in PPP-based GDP. This milestone occurred during the tenure of the Manmohan Singh-led UPA government. India has retained the 3rd position ever since, behind only China and the United States. The PPP-based ranking reflects India’s large population and lower cost of living, which boosts its effective domestic consumption.

    How do exchange rates affect nominal GDP rankings?

    • Conversion Dependency: Nominal GDP is calculated in US dollars, so a country’s GDP in local currency must be converted using the exchange rate. Eg: If India’s GDP is ₹300 lakh crore and $1 = ₹75, its dollar GDP would be $4 trillion; but if $1 = ₹85, the same GDP becomes $3.5 trillion.
    • Exchange Rate Fluctuations Can Distort Rankings: A country’s global GDP rank can change without any real economic growth or decline, simply due to currency appreciation or depreciation. Eg: If the Japanese yen strengthens against the dollar, Japan’s nominal GDP in dollars rises—even if its actual output hasn’t changed.
    • Unfair Comparison Across Countries: Countries with volatile or weakening currencies may appear smaller in nominal terms than they are in real domestic terms. Eg: India’s GDP may seem lower than the UK’s in nominal terms due to a weaker rupee, even if India produces more goods and services overall.

    Why is per capita GDP more reflective of individual prosperity?

    • Accounts for Population Size: Per capita GDP divides total GDP by the population, showing the average income per person, unlike aggregate GDP which may hide disparities. Eg: India’s GDP is higher than the UK’s in total, but because India has over 20 times the population, its per capita GDP is much lower.
    • Better Indicator of Living Standards: It reflects the average economic well-being and purchasing power of citizens, making it more relevant for assessing prosperity. Eg: A country with $50,000 per capita GDP (like the UK) offers far better public services, infrastructure, and living conditions than one with $2,800 (like India), even if total GDPs are comparable.
    • Highlights Income Distribution and Development Needs: Low per capita GDP suggests widespread poverty or unequal wealth distribution, even if overall GDP is growing. Eg: Despite being the world’s 5th largest economy, India’s low per capita GDP shows most individuals have limited incomes and access to economic benefits.

    What does India’s per capita GDP reveal compared to the UK’s?

    Aspect India UK Example 
    Per Capita GDP (2025) 10,020 PPP dollars 58,140 PPP dollars UK’s per capita income is ~6 times higher than India’s.
    Living Standards & Services Lower access to quality services Higher standard of living, social welfare Indians have limited access to healthcare, education, and housing
    Economic Inequality & Prosperity Aggregate GDP is growing, but benefits are not evenly distributed Prosperity is more widely shared Despite India’s growth, individual prosperity remains low on average.

    Way forward: 

    • Invest in Human Capital and Social Infrastructure: India must enhance spending on education, healthcare, and skill development to improve productivity and raise per capita incomes. Improved human capital directly boosts innovation, employability, and long-term economic growth.
    • Focus on Inclusive and Equitable Growth: Policies should ensure that economic gains are widely distributed, especially through rural development, MSME support, and targeted welfare schemes. This will reduce income disparities and lift more people into the formal, productive economy, improving per capita prosperity.

    Mains PYQ:

    [UPSC 2022]  Is inclusive growth possible under market economy? State the significance of financial inclusion in achieving economic growth in India.

    Linkage: India’s high aggregate economic rank alongside low per capita income, raises questions about how India’s economic growth model is translating into shared prosperity, a central theme of inclusive growth. This question explicitly asks about the possibility and mechanisms (like financial inclusion) of achieving “inclusive growth” within a market economy.

  • AMCA Project

    Why in the News?

    The defence minister has cleared the execution model for the Advanced Medium Combat Aircraft (AMCA) project, where Hindustan Aeronautics Limited (HAL) must now compete with private companies for the production contract under a new industry partnership model.

    amca

    About the AMCA Project:

    • Overview: The Advanced Medium Combat Aircraft (AMCA) is India’s fifth-generation stealth fighter being developed by ADA under DRDO.
    • Approval: The project received Cabinet Committee on Security (CCS) approval in March 2024, with a budget of ₹15,000 crore.
    • Timeline: The first prototype is expected by 2028–29, production by 2032–33, and induction by 2034.
    • Key Features:
      • Stealth design, internal weapons bay, and diverterless supersonic intake.
      • Payload: 1,500 kg internal and 5,500 kg external.
      • Fuel: Internal capacity of 6,500 kg.
    • Development Phases:
      1. AMCA Mk1 will use the GE F-414 engine.
      2. AMCA Mk2 will have a co-developed engine with France’s Safran.
    • Strategic Importance: AMCA will help India counter threats from regional powers like China, which already deploy J-20 and J-35 fighters.

    What are 5th Generation Fighter Aircrafts?

    • Definition: Fifth-generation fighters are the most advanced combat aircraft in service today.
    • Examples: Include the F-22 and F-35 (USA), Su-57 (Russia), and J-20 (China).
    • Core Features:
      • Stealth technology to avoid radar detection.
      • Beyond-visual-range (BVR) combat capabilities.
      • AI-based systems and automated battle management.
    • Roles: These jets can perform air combat, surveillance, and ground attacks with precision and multi-role capability.

    What does “Generation” mean in Fighter Aircrafts?

    • Classification: Fighter jets are grouped by technological advances that can’t be added through upgrades.
    • Evolution:
      • 1st–3rd Gen: Basic jets with limited speed and weaponry.
      • 4th Gen: Improved radar, manoeuvrability, and precision weapons (e.g., Rafale, Su-30MKI).
      • 5th Gen: Introduces stealth, super-cruise, sensor fusion, and electronic warfare.
    • Comparative Use: While not a perfect measure, “generation” helps compare air force capabilities across countries.

     

    [UPSC 2025] With reference to India’s defence, consider the following pairs:

    Aircraft type: Description

    I. Dornier-228: Maritime patrol aircraft

    II. IL-76: Supersonic combat aircraft

    III. C-17 Globemaster III: Military transport aircraft

    How many of the pairs given above are correctly matched?

    Options: (a) Only one (b) Only two* (c) All three (d) None

     

  • TR1 Cells: The Hidden Warriors in Malaria Immunity

    Why in the News?

    Scientists at Stanford University discovered that TR1 cells play a dominant role in fighting malaria reinfections.

    Understanding the Body’s Immune Response:

    • What is the Immune System? It’s the body’s defence system that protects us from infections like malaria.
    • First Defence: The skin and body surfaces block germs from entering.
    • Innate Immunity: If germs get in, the innate immune system reacts fast, like an emergency response team.
    • Adaptive Immunity: Then, the adaptive immune system kicks in, targeting germs specifically and remembering them for future protection.
    • B-Cells and T-Cells:
      • B-cells make antibodies to fight germs.
      • T-cells attack infected cells and guide other immune cells.
    • Helper T-Cells: A type called CD4+ T-cells helps organise the defence. Earlier, scientists thought TH1 cells were key in malaria, but a new study shows TR1 cells are more important, especially in repeat infections.

    What are TR1 Cells?

    • Role of TR1 Cells: These are special T-cells that help control the immune system and prevent overreaction.
    • Major Response in Malaria: Though small in number, during malaria, TR1 cells become the main helper cells.
    • Study in Uganda: In young children with repeated malaria, TR1 cells grew in number and improved the body’s ability to fight malaria without severe illness.
    • Memory and Immunity: TR1 cells remember the malaria parasite and return stronger with each infection.
    • Types of TR1 Cells:
      • Naïve TR1 – not yet active.
      • Effector TR1 – fighting infection.
      • Memory TR1 – remembering past infections.
    • Epigenetic Role: TR1 cells may respond by switching genes on or off, not by changing the genes themselves.

    Key Findings of the Study:

    • Research Team: Scientists from Stanford University studied people in Uganda over many months and years.
    • Tracking Infections: They followed individuals through multiple malaria infections to see how immune cells behaved.
    • Gene Scanning: A special technique was used to read the genes of each immune cell — like scanning a barcode.
    • Findings: TR1 cells were accurate, long-lasting, and clearly connected to malaria (not other infections).
    • Why it matters: This discovery can help in making better malaria vaccines, boosting long-term protection, and even improving treatments for other serious diseases.
    [UPSC 2025] With reference to monoclonal antibodies, consider the following:

    I. They are man-made proteins. II. They stimulate the patient’s immune system to fight the specific disease. III. They are produced using animal cells only.

    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) All the three *

     

  • Cabinet approves hike in MSP for Kharif Crops

    Why in the News?

    The Cabinet Committee on Economic Affairs chaired by Prime Minister has approved the increase in the Minimum Support Price (MSP) for 14 kharif crops for 2025-26.

    What is the Minimum Support Price (MSP)?

    • MSP in India originated in response to food shortages in the 1960s, notably during the Bihar famine of 1966–1967.
    • Agricultural Price Commission (APC) was established in 1965 to implement price policies like procurement at pre-decided prices and MSP.
    • Over time, the APC evolved into the Commission for Agricultural Costs and Prices (CACP) in 1985, with broader terms of reference.
    • Announcement: The government bases its announcement on the recommendations given by the Commission for Agricultural Costs & Prices (CACP).

    Steps involved in Fixing MSPs:

    • CACP sends its recommendations to the Government of India.
    • The reports are shared with state governments and concerned central ministries for comments.
    • After reviewing all inputs, the Cabinet Committee on Economic Affairs (CCEA) takes the final decision on MSPs.
    • Once approved, CACP publishes all its reports online, ensuring transparency and explaining the rationale behind its recommendations.

    How is MSP fixed?

    • Formulae for Calculation:
      • A2: Costs incurred by the farmer in production of a particular crop. It includes several inputs such as expenditure on seeds, fertilisers, pesticides, leased-in land, hired labour, machinery and fuel
      • A2+FL: Costs incurred by the farmer and the value of family labour
      • C2: A comprehensive cost, which is A2+FL cost plus imputed rental value of owned land plus interest on fixed capital, rent paid for leased-in land
    • National Commission of Farmers also known as the Swaminathan Commission (2004) recommended that the MSP should at least be 50 per cent more than the weighted average Cost of Production (CoP), which it refers to as the C2 cost.
    • The government maintains that the MSP was fixed at a level of at least 1.5 times of the all-India weighted average CoP, but it calculates this cost as 1.5 times of A2+FL.
    • Crops covered are: CACP currently recommends MSPs for 23 key crops:
      • 7 Cereals: Paddy, Wheat, Maize, Sorghum (Jowar), Pearl Millet (Bajra), Barley, and Ragi
      • 5 Pulses: Gram (Chana), Tur (Arhar), Moong, Urad, and Lentil (Masur)
      • 7 Oilseeds: Groundnut, Rapeseed-Mustard, Soybean, Sesame, Sunflower, Safflower, and Nigerseed
      • 4 Commercial Crops: Copra, Cotton, Raw Jute and Sugarcane (Fair and Remunerative Price (FRP) is announced by CACP.)
    [UPSC 2020] Consider the following statements:

    1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India.

    2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise.

    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*

     

  • Energy and efficiency: On India and greater energy efficiency mandates

    Why in the News?

    Despite rising power deficits amid urbanisation and climate pressures, India’s UJALA scheme showcases energy efficiency’s impact—saving $10B and 9,500 MW—highlighting efficiency over mere capacity expansion.

    What challenges does India face in meeting its peak power demand?

    • Rising Peak Demand due to Urbanisation and Climate Change: Rapid urbanisation and increasing use of cooling appliances during hotter summers have significantly increased electricity demand. Eg: In 2023–24, India’s peak power demand reached 250 GW, making it the third-largest power consumer globally.
    • Slow Expansion of Power Generation Capacity: Building new power plants, especially coal-based, is capital- and time-intensive, which cannot keep pace with rising demand. Eg: Despite efforts, power deficit widened from 0.69% in FY20 to about 5% in FY24, reflecting supply constraints.
    • Integration Challenges with Renewable Energy: While renewables are growing, their intermittent nature and grid integration issues limit their effectiveness in meeting peak demand. Eg: Solar and wind power face supply variability, making it difficult to meet peak-hour requirements consistently.

    What is UJALA Scheme? 

    The UJALA scheme (Unnat Jyoti by Affordable LEDs for All) is a flagship energy efficiency program launched by the Government of India in 2015. It aims to promote energy-saving lighting solutions by distributing LED bulbs, tube lights, and energy-efficient fans at affordable prices

    How has the UJALA scheme contributed to energy efficiency and savings?

    • Massive Reduction in Power Consumption: The scheme distributed over 37 crore LED bulbs and enabled the sale of 407 crore more, replacing energy-inefficient lighting. Eg: LED bulbs consume half the power of CFLs and 1/9th the power of incandescent bulbs, leading to major power savings in households.
    • Reduction in Peak Demand and Generation Needs: By improving lighting efficiency nationwide, UJALA helped reduce peak power demand by over 1,500 MW. Eg: It avoided the need to build 9,500 MW of new power capacity—equivalent to 19 new 500 MW coal-fired plants.
    • Lower Costs and Emissions: UJALA reduced the cost of LED bulbs from ₹500 to ₹70, making them accessible and cutting emissions. Eg: The scheme has helped India save over $10 billion and significantly reduced CO₂ emissions.

    Why is enhancing energy efficiency crucial for India’s energy future?

    • Bridges the Gap Between Demand and Supply: India faces a widening peak power deficit (from 0.69% in FY20 to ~5% in FY24) despite increased generation. Eg: Energy efficiency helps reduce demand quickly—schemes like UJALA lowered peak demand by 1,500 MW, easing pressure on the grid.
    • Delays the Need for New (Often Fossil-Based) Power Plants: Building new fossil-fuel-based power plants is time-consuming and costly. Eg: Efficiency measures like LED lighting under UJALA avoided building 19 new coal plants (9,500 MW)—cutting cost, time, and pollution.
    • Supports Climate Goals and Reduces Emissions: India’s energy mix still depends 70% on coal, worsening climate and pollution. Eg: Energy efficiency improvements between 2000–2018 helped avoid 300 Mt of CO₂ emissions, according to the International Energy Agency.

    Where can further energy efficiency mandates be applied in India?

    • Buildings and Construction Sector: Residential and commercial buildings consume significant energy, especially for cooling and lighting. Eg: Mandating energy-efficient designs and green building codes (like ECBC) in urban housing projects can reduce long-term electricity use.
    • Home Appliances: Many households still use inefficient devices that consume more electricity. Eg: Expanding BEE’s star-rating program to cover more appliances like fans, refrigerators, and ACs can push consumers toward efficient options.
    • Micro, Small and Medium Enterprises (MSMEs): MSMEs often use outdated machinery that wastes energy. Eg: Energy audits and subsidized upgrades in sectors like textiles or ceramics can reduce energy costs and improve competitiveness.

    Way forward:

    • Invest in Grid Flexibility and Energy Storage: Promote battery storage, pumped hydro, and smart grid systems to manage peak loads and integrate renewable energy reliably.
    • Strengthen Energy Efficiency Mandates: Enforce stricter efficiency norms for buildings, appliances, and MSMEs, backed by incentives, audits, and awareness campaigns.

    Mains PYQ:

    [UPSC 2016] “Give an account of the current status and the targets to be achieved pertaining to renewable energy sources in the country. Discuss in brief the importance of National Programme on Light Emitting diodes (LEDs).”

    Linkage: Despite growth in electricity generation, including recent additions of renewable energy, India has faced peak power demand deficits. While adding new power production capacity takes time, especially for fossil fuels, focusing on energy efficiency is presented as the quickest and least expensive way to address rising power demand and climate change. This question is highly relevant as it specifically asks about renewable energy targets and the importance of the National Programme on LEDs.

  • Centre restores RoDTEP Scheme

    Why in the News?

    To boost India’s export strength, the government has restored Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme benefits for eligible exports starting June 1, 2025.

    Details of the Latest Update:

    • RoDTEP benefits have now been restored for Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zones (SEZs).
    • These categories were previously excluded from February 5, 2025, but are now eligible again from June 1, 2025.
    • The move ensures a level playing field for all exporters and encourages broad-based export growth.

    About the RoDTEP Scheme:

    • Launch: It started on January 1, 2021, as part of the Foreign Trade Policy 2015–20.
    • Objective: It helps exporters get refunds for hidden taxes and duties that are not refunded under other schemes.
      • Examples of Hidden Taxes: These include taxes like electricity duty, mandi tax, and fuel charges during transport.
    • Why it was introduced: RoDTEP replaced the earlier Merchandise Export Incentive Schemes (MIES) after India lost a case at the World Trade Organisation (WTO).
    • Global Compliance: The scheme is WTO-compliant, following the rule that exported goods should not carry domestic taxes.
    • Administered by: It is managed by the Department of Revenue under the Ministry of Finance.

    Eligibility under RoDTEP:

    • Who can apply: All Indian exporters — whether manufacturers or merchant exporters — are eligible.
    • Eligible exports: Exports from SEZs, EOUs, and e-commerce platforms are also covered.
    • Not Eligible: Re-exported goods are not eligible for benefits.
    • Sector Focus: The scheme gives priority to labour-intensive sectors that earlier benefitted from MEIS.

    How the refund works:

    • Rebate Calculation: The refund is given as a percentage of the export value (Free on Board value).
    • Mode of Refund: The benefit comes in the form of e-scrips, which are stored in a digital ledger by the Central Board of Indirect Taxes and Customs (CBIC).
    • Usage of E-Scrips: These e-scrips can be used to pay basic customs duty or be transferred to other importers.
    [UPSC 2020] With reference to the international trade of India at present, which of the following statements is/are correct?

    1.  India’s merchandise exports are less than its merchandise imports.

    2. India’s imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years.

    3. India’s exports of services are more than its imports of services.

    4. India suffers from an overall trade/current account deficit.

    Select the correct answer using the code given below:

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

     

  • Kumbakonam Vetrilai Betel Leaf gets GI Tag

    Why in the News?

    The Kumbakonam Vetrilai (betel leaf or paan leaf) has received the Geographical Indication (GI) tag from the Government of India.

    About Kumbakonam Vetrilai

    • Cultivation: It is grown in the Thanjavur region, especially in Kumbakonam, Thiruvaiyaru, Papanasam, Thiruvidaimarudur, and Rajagiri.
    • Characteristics: The leaf is heart-shaped, dark to light green, with a strong aroma and pungent taste, thanks to the fertile Cauvery basin soil.
    • Cultural Importance: It is a main ingredient in paan, a popular post-meal chew in South Asia.
    • Harvest: The first-year yield, called maaruvethalai, produces the largest and longest-lasting leaves (6–7 days shelf life); Farmers hand-pick leaves, working from early morning until late night due to the labour-heavy process.

    Back2Basics: Geographical Indication (GI) Tag

    • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
    • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
    • The tag stands valid for 10 years and can be renewed.

     

    [UPSC 2015] Which of the following has/have been accorded ‘Geographical Indication’ status?

    (1) Banaras Brocades and Sarees (2) Rajasthani Daal-Bati-Churma (3) Tirupathi Laddu

    Select the correct answer using the code given below.

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

     

  • Conservation of Dugongs

    Why in the News?

    May 28 is celebrated every year as World Dugong Day.

    Conservation of Dugongs

    About Dugongs:

    • Species Info: Dugong dugon, also known as sea cows, are herbivorous marine mammals closely related to manatees but live only in saltwater.
    • Habitat: They live in shallow coastal waters and are mainly found in the Andaman and Nicobar Islands, Gulf of Mannar, Palk Bay, and Gulf of Kutch.
    • Diet and Role: Dugongs feed on seagrass species like Cymodocea, Halophila, Thalassia, and Halodule. As they graze, they stir up the seabed, earning the nickname “farmers of the sea.”
    • Lifespan and Behaviour: They can live up to 70 years and are usually solitary or seen in mother-calf pairs.
    • Reproduction: Females mature at 9–10 years and give birth every 3–5 years, resulting in a slow population growth of about 5% per year.
    • Conservation Concern: India’s dugong population has dropped to an estimated 200 individuals, with shrinking range and numbers.

    Conservation Efforts in India:

    • IUCN Status: Dugongs are listed as ‘Vulnerable’ globally and ‘Regionally Endangered’ in India.
    • Legal Protection: They are protected under Schedule I of the Wild Life (Protection) Act, 1972.
    • Global Agreements: India joined the Convention on Migratory Species in 1983 and signed the Dugong Conservation MoU in 2008.
    • Dugong Reserve: In 2022, India established its first Dugong Conservation Reserve in Palk Bay, Tamil Nadu, covering 448.3 sq. km.
    [UPSC 2015] With reference to ‘dugong’ a mammal found in India, which of the following statements is/are correct?

    1. It is a herbivorous marine animal. 2. It is found along the entire coast of India. 3. It is given legal protection under Schedule I of the Wildlife (Protection) Act 1972.

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