GS Paper: GS3

[27th May 2025] The Hindu Op-ed: Focus on heat-resilience despite the monsoon

PYQ Relevance:

[UPSC 2024] What is disaster resilience? How is it determined? Describe various elements of a resilience framework. Also mention the global targets of the Sendai Framework for Disaster Risk Reduction (2015- 2030).

Linkage: The heat health crisis falls under the broader domain of disaster risk reduction and building resilience, especially considering extreme heat events as climate-induced disasters. It prompts discussion on defining resilience and the frameworks needed, aligning with the call for embedding heat resilience into public health systems.

Mentor’s Comment: India is going through a serious climate-health crisis as rising temperatures and frequent heatwaves put more pressure on the already stretched public health system. At the recent national conference “India 2047: Building a Climate-Resilient Future,” experts shared not only scientific facts like wet-bulb temperatures but also the real-life struggles of informal workers. This showed how heat stress and social inequality are closely linked. The conference highlighted the need to move beyond isolated emergency care and take united, cross-sector, and fair action to build climate resilience into the way we manage public health.

Today’s editorial discusses the serious climate-health crisis as rising temperatures and frequent heatwaves. This content would help in GS Paper II ( Governance & Health Sector) and GS Paper III (Climate change impact).

Let’s learn!

Why in the News?

As extreme weather increases, we need to move from only treating emergencies to preventing problems by focusing on fair and caring public health.

Why is linking weather alerts with health systems crucial?

Enables Timely Preventive Action: Early warning systems allow health workers to prepare and respond before heatwaves lead to medical emergencies. Eg: In Ahmedabad, heat alerts trigger distribution of hydration kits and public advisories, reducing heatstrokecases.
Strengthens Community-Level Response: Alerts shared through ASHA workers or local networks can activate door-to-door checks, especially for the elderly and chronically ill. Eg: ASHAs sending WhatsApp messages and visiting vulnerable residents during red alerts.
Reduces Burden on Emergency Healthcare: By preventing illness through early interventions (like avoiding midday work, increasing hydration), the pressure on hospitals and emergency services is reduced. Eg: Pre-monsoon planning with meteorological inputs helps health centers stock cooling kits and prepare treatment spaces.

What is the impact of extreme heat on India’s public health?

Rise in Heat-related Illnesses and Deaths: Extreme heat leads to heatstroke, dehydration, and worsens heart and kidney conditions. Eg: According to the National Centre for Disease Control (NCDC), over 25,000 heat-related deaths were recorded in India between 1992 and 2020.
Overburdened Healthcare Infrastructure: Hospitals face a surge in emergency cases during heatwaves, straining limited resources. Eg: During the 2022 heatwave, Delhi’s Lok Nayak Hospital reported a 30% increase in patients with heat-related symptoms in just a week.

How does extreme heat act as a “social injustice multiplier”?

Greater Risk to Vulnerable Populations: Outdoor workers, elderly, and slum dwellers suffer disproportionately due to poor shelter and exposure. Eg: A study by the Indian Institute of Public Health (Ahmedabad) found construction workers had a 2.5 times higher risk of heat illness compared to the general population during peak summer.
Limited adaptive capacity: Daily wage workers, street vendors, and waste pickers cannot afford to stop working during heatwaves, making them more vulnerable to heat stress and illness. Eg: Construction workers under tin roofs suffer intense heat but have no choice but to continue working.
Excludes the marginalised from public guidance: Advice like “stay indoors” or “avoid exertion” is often irrelevant to those who lack shelter, depend on outdoor jobs, or live in overcrowded spaces, highlighting deep systemic inequalities. Eg: A homeless person or a street vendor cannot follow “stay indoors” guidance during a red alert.

Who can act as frontline heat-safety champions?

ASHA Workers and Primary Health Workers: Trained Accredited Social Health Activists (ASHAs) and staff at Primary Health Centres (PHCs) are well-placed to spread awareness, monitor vulnerable groups, and respond early to heat-related illnesses. Eg: An ASHA worker in a rural village sends heat alerts via WhatsApp and conducts door-to-door visits during a heatwave.
Health and Wellness Centre Staff: Staff at Health and Wellness Centres can play a key role in educating communities, distributing hydration kits, and advising on preventive measures like staying hydrated and avoiding midday sun. Eg: A nurse at a wellness centre trains local youth on recognizing signs of heat stress and first-aid response.

What are the steps taken by the Indian Government?

Development of Heat Action Plans (HAPs): The government, in collaboration with local bodies and NGOs, has promoted city-level Heat Action Plans to reduce heat-related mortality through early warnings, public awareness, and cooling strategies. Eg: The Ahmedabad Heat Action Plan (2013) includes early warning systems, public cool spaces, and training for health workers.
Integration with Meteorological Services: India Meteorological Department (IMD) provides heat alerts, which are increasingly being integrated into local health response systems to trigger preventive action. Eg: Heat alerts in Odisha are linked to ASHA worker messaging and hydration kit distribution before peak summer.
Policy Push for Climate-Resilient Health Systems: The National Action Plan on Climate Change and Human Health (NAPCCHH) encourages health systems to be climate-ready by building infrastructure, developing clinical protocols, and training staff. Eg: Health ministries now issue advisories on heat stress, including guidance on modifying medication for chronic patients during heatwaves.

What preventive steps can make India’s health system heat-resilient? (Way forward)

Strengthening Primary Health Infrastructure: Equip primary health centres, Health & Wellness Centres, and ASHA workers with training and protocols to identify and respond to heat-related illnesses. Eg: Trained ASHA workers in rural Gujarat conduct door-to-door checks during heat alerts and share hydration tips via WhatsApp groups.
Integrating Heat Risk into Chronic Disease Care: Clinicians should adjust medications, provide heat safety counselling, and track high-risk patients like those with heart or kidney conditions during summer. Eg: In Delhi, doctors monitor diabetic patients more closely during red alerts and advise them on avoiding midday exposure.
Standardising Clinical Protocols for Heat Illness: Create and implement national clinical guidelines for diagnosing and treating heatstroke and heat stress, including summer drills and heat corners in hospitals. Eg: Rajasthan hospitals now stock cooling kits and have designated heat response units during summer months.

May 27, 2025

New Cambrian sea creature Mosura fentoni discovered in Canada

Why in the News?

Scientists have discovered a new sea creature from the Cambrian period named Mosura fentoni, found in Canada’s Burgess Shale, one of the most important fossil sites in the world.

New Cambrian sea creature Mosura fentoni discovered in Canada

About Mosura fentoni:

Discovery Site: Mosura fentoni was discovered in Canada’s Burgess Shale, a well-known Cambrian fossil site.
Biological Group: It belongs to radiodonts, an extinct group of marine predators related to insects, crabs, and spiders.
Size and Structure: The creature is very small (1.5 to 6 cm) but has a long, complex body made of 26 segments.
Body Zones:
- The neck supports the head.
- The mesotrunk has six paddle-shaped flaps for swimming, like mini propellers.
- The posterotrunk has up to 16 segments with rows of thin gills and small flaps.
Breathing Adaptation: The gills in the posterotrunk likely acted as a breathing zone, similar to the tails of horseshoe crabs that help collect oxygen.

Evolutionary Importance:

Arthropod Evolution: The find helps explain how early arthropods (like modern insects and crustaceans) evolved diverse forms.
Advanced Abilities: Despite its small size, M. fentoni had specialised swimming and breathing systems.
Evolutionary Position: It is placed near the base of the hurdiid family in the radiodont family tree.
Segment Specialisation: Its body shows early examples of segment division for specific tasks — a trait common in modern arthropods.
Key Insight: The discovery suggests that complex body planning in arthropods began much earlier than previously thought.

Back2Basics: Cambrian Period:

The Cambrian Period is a division of the geologic time scale that lasted from approximately 541 million to 485 million years ago.
It is the first period of the Paleozoic Era and follows the Precambrian Eon.
It is significant because it marks a time when most major animal groups first appeared in the fossil record.
This period is characterized by the development of complex, multicellular life, especially in marine environments.
The Cambrian Explosion refers to a relatively short evolutionary event—occurring around 541 million years ago—during which a vast number of new animal species and body plans rapidly emerged.
Within about 20 to 25 million years, nearly all major animal phyla (like arthropods, mollusks, and chordates) appeared.
This explosion of biodiversity is seen as one of the most important evolutionary events in Earth’s history.

[UPSC 2019] The word ‘Denisovan’ is sometimes mentioned in media in reference to-

Options: (a) fossils of a kind of dinosaurs (b) an early human species* (c) a cave system found in North-East India. (d) a geological period in the history of Indian subcontinent

May 27, 2025

Scientists verify Mendel’s Experiments on Inheritance

Why in the News?

Researchers have solved the genetic mysteries behind Mendel’s Experiments on Inheritance, using advanced DNA sequencing and genome analysis.

About Mendel’s Experiments on Inheritance:

Who Was Mendel: Gregor Mendel was an Austrian monk who studied pea plants starting in 1856 to find out how traits like height or color are passed from parents to children.
Years of Study: He worked for 8 years and tested over 10,000 plants. His results were shared in 1865 but ignored at the time.
Rediscovered Later: In 1900, other scientists realised how important Mendel’s work was.
What He Studied: He looked at 7 traits in peas – Seed shape, seed colour, flower colour, pod shape, pod colour, flower position, and plant height.
What He Found: Some traits (like round seeds) are stronger than others (like wrinkled seeds). These stronger traits usually show up in the next generation.
Why It Matters: Mendel showed that traits are passed through tiny units called genes, and each gene can have different versions called alleles. This became the foundation of genetics.

Scientists verify Mendel’s Experiments on Inheritance

What the Study Found (2024):

What Scientists Did: In April 2024, scientists studied the DNA of 697 types of pea plants to understand the exact genes behind all 7 traits that Mendel studied.
Big Data: They used powerful machines to look at a huge amount of data — as much as 14 billion pages of information!
Surprising Results: They found that the pea plant family is more mixed than expected, with 8 different genetic groups due to crossbreeding.
New Genetic Details:
- Pod color changes due to a missing piece of DNA.
- Pod shape is controlled by 2 specific genes.
- Flower position changes with a small DNA change.
More Than Mendel: They also found 72 other traits related to seeds, pods, leaves, and roots.
Why It’s Useful: These findings can help farmers grow better crops, protect plants from diseases, and prepare for climate change.

[UPSC 2013] Mycorrhizal biotechnology has been used in rehabilitating degraded sites because mycorrhiza enables the plants to

(1). resist drought and increase absorptive area (2). tolerate extremes of pH (3). resist disease infestation

Select the correct answer using the codes given below.

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

May 27, 2025

Bharat Forecast System for Panchayat-Level Weather Forecasting

Why in the News?

The India Meteorological Department (IMD) has unveiled the Bharat Forecast System (BFS) for weather predictions at panchayat level.

About Bharat Forecast System (BFS)

Launch: The BFS was launched by IMD and developed by IITM Pune under the Ministry of Earth Sciences.
Forecast Accuracy: It delivers hyperlocal weather predictions at the panchayat level, using a 6 km × 6 km grid — the highest resolution in the world.
Supercomputing Power: The system runs on two advanced supercomputers: Arka at IITM Pune and Arunika at NCMRWF Delhi.
Purpose: BFS enhances short- and medium-term forecasts critical for agriculture, disaster preparedness, and public safety.

Key Features of BFS:

High-Resolution Forecasting: It provides 6 km resolution forecasts, improving on the earlier 12 km resolution. It covers the tropical region between 30° South and 30° North latitude.
Advanced Supercomputing: Arka- 11.77 petaflops, 33 petabytes; Arunika- 8.24 petaflops, 24 petabytes; Arka reduces forecast processing time from 10 hours to 4 hours; Includes a dedicated AI system with 1.9 petaflops power.
Real-Time Nowcasting: Uses data from 40 Doppler Weather Radars (set to grow to 100); Provides real-time forecasts for the next 2 hours with high accuracy.
Smart Grid Design: Uses a Triangular-Cubic Octahedral (TCO) grid, focusing computing power on weather-sensitive regions.
Practical Benefits: Helps forecast heavy rainfall, improve crop planning, manage flood risk, and guide resource allocation.
Global Benchmark: Most global models operate at 9–14 km resolution; India is now the only country with 6 km operational weather forecasts.

[UPSC 2017] With reference to ‘Indian Ocean Dipole (IOD)’ sometimes mentioned in the news while forecasting Indian monsoon, which of the following statements is/are correct?

1. IOD phenomenon is characterized by a difference in sea surface temperature between tropical Western Indian Ocean and tropical Eastern Pacific Ocean.

2. An IOD phenomenon can influence an El Nino’s impact on the monsoon.

Select the correct answer using the code given below:

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

May 27, 2025

State of the World’s Animal Health Report, 2025 by WOAH

Why in the News?

The World Organisation for Animal Health (WOAH) released the first-ever State of the World’s Animal Health report.

Key Highlights of the Report:

India faces high risk from transboundary animal diseases, with 47% of global outbreaks between 2005–2023 being zoonotic, affecting both animals and humans.
African Swine Fever (ASF), which jumped 1,800 km to Sri Lanka in 2024, threatens India’s northeast pig-rearing regions already impacted in past years.
Avian Influenza (HPAI) saw outbreaks in non-poultry species surpass poultry in 2024; India’s dense poultry population makes cross-species transmission a growing concern.
Foot and Mouth Disease (FMD), endemic in India, showed new serotype SAT 3 and SAT 1 activity in other countries, posing vaccine adaptation challenges.
Diseases like Lumpy Skin Disease and PPR, both reported in India earlier, are now spreading to new global regions, highlighting potential for reintroduction.
WOAH urges global action on vaccine equity, surveillance, and biosecurity, which align with India’s need to safeguard livelihoods, trade, and food security.

About the World Organisation for Animal Health (WOAH):

Establishment: WOAH, formerly known as OIE, was founded in 1924 and is headquartered in Paris, France.
Membership: It has 183 member countries, including India, and operates independently from the United Nations.
Mandate: WOAH is the global authority on animal health, working to control animal epidemics (epizootics) and improve global animal welfare.
Key Functions:
- Runs the World Animal Health Information System (WAHIS) to track disease outbreaks.
- Sets international health standards for trade in animals and animal products.
- Promotes science-based animal welfare policies and transparent disease reporting.
- Offers technical support to countries, especially developing nations.
Global Cooperation: Works with over 70 global partners, including the FAO.
India’s Role: India is a member and an active participant through the World Assembly of Delegates.

[UPSC 2005] Which one of the following diseases of milching animals are infectious?

1. Foot and Mouth disease

2. Anthrax

3. Black Quarter

4. Cowpox

Select the correct answer using the codes given below.

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

May 27, 2025

Arms deals: India moves away from Russia; Pakistan from the U.S

Why in the News?

Recently, India’s Operation Sindoor has put the spotlight on the evolving nature of India and Pakistan’s defence procurement strategies.

What is the situation of India’s defence import pattern?

Russia’s share in Indian defence imports has decreased from 96.5% in the 1990s to 75% in the 2020s.
India now imports over 9% from France, 5.5% from the UK, nearly 5% from Israel, and 3% from the US. Over 55% of India’s air-power weapons in the 2020s have come from France, the UK, and Israel, indicating greater reliance on Western technology in a critical combat domain.

Why is India moving away from Russia?

Strategic Diversification: To avoid overdependence on a single supplier, India is diversifying defence partnerships. Eg: India’s growing defence ties with France (e.g., Rafale jets) and the U.S. (e.g., Apache helicopters, Predator drones).
Technological Advancement and Reliability: Western nations and Israel offer more advanced, precise, and reliable weapon systems. Eg: Israeli-origin SkyStriker drone used in Operation Sindoor reflects a shift toward high-tech partners.
Geopolitical and Logistical Concerns: Sanctions on Russia post-Ukraine war have raised concerns about timely deliveries and spare parts. Eg: India faces delays in Russian S-400 missile system deliveries due to global sanctions and supply chain disruptions.

What types of foreign weapons did India and Pakistan use during Operation Sindoor?

India’s Use of Israeli and Russian Weapons: India deployed Israeli-origin weapons like the SkyStriker drone and Russian-made systems such as the Pechoraand OSA-AK missiles. Eg: The SkyStriker was used for precision strikes, while Pechora missiles were used for air defence.
Pakistan’s Use of Chinese and Turkish Systems: Pakistan used Chinese-origin PL-15 missiles and Turkish-origin Unmanned Aerial Vehicles (UAVs). Eg: PL-15, a long-range air-to-air missile, reflects Pakistan’s military dependence on China.

Why is China now the dominant arms supplier for Pakistan?

Strategic Partnership and Regional Alignment: China and Pakistan share a strong geopolitical alliance, rooted in regional rivalry with India. Eg: The China-Pakistan Economic Corridor (CPEC) has strengthened military and economic ties.
Decline of U.S. Defence Cooperation: Pakistan’s ties with the United States have weakened, especially due to shifting U.S. strategic priorities and concerns over terrorism. Eg: The U.S. share in Pakistan’s arms imports dropped from 67% in the 2000s to 0.85% in the 2020s.
Cost-Effective and Tailored Equipment: China offers affordable, adaptable military technology suited to Pakistan’s needs. Eg: Weapons like the JF-17 fighter jet and HQ-9 air defence systems are co-developed or exported specifically for Pakistan.

Who leads the global arms export market?

United States – Global Leader: The United States dominates global arms exports, accounting for over 65% of the world’s exports in the 2020s. Eg: U.S. exports advanced systems like F-35 fighter jets, Patriot missile systems, and drones to allies worldwide.
Russia – Declining Influence: Russia’s share has significantly dropped to around 5% due to factors like the Ukraine war, sanctions, and reduced trust. Eg: Former major buyers like India have reduced reliance on Russian defence supplies.
China – Minimal Global Share but Focused Exports: China holds less than 2% of global exports but plays a critical regional role, especially with Pakistan. Eg: Nearly 33% of China’s limited arms exports go to Pakistan, highlighting strategic alignment rather than market dominance.

What is the situation of Indian arms exports?

Emerging Exporter with Limited Share: India is still a minor player in the global arms export market, contributing less than 1% of total global arms exports. Eg: India exports light arms and defence equipment to countries like Vietnam, Myanmar, and African nations.
Focus on Indigenous Defence Systems: India is boosting domestic production under initiatives like ‘Make in India’ and Defence Export Policy 2020, aiming to become an exporter. Eg: Systems like Akash missile, Pinaka rocket launcher, and BrahMos (jointly developed with Russia) are promoted for export.

Way forward:

Accelerate Indigenous Defence Manufacturing: Expand R&D investment and incentivize private sector participation to develop cutting-edge technologies and reduce reliance on imports. Eg: Fast-tracking indigenous programs like AMCA fighter jet and integrating startups under iDEX (Innovations for Defence Excellence).
Forge Strategic Export Alliances: Target defence exports through strategic partnerships and defence diplomacy, focusing on friendly nations in Southeast Asia, Africa, and Latin America. Eg: Boost exports of systems like BrahMos and Akash missiles through government-to-government deals and defence expos.

Mains PYQ:

[UPSC 2020] What is the significance of Indo-US defence deals over Indo-Russian defence deals? Discuss with reference to stability in the Indo-Pacific region.

Linkage: The article talks about the “India and Pakistan Arms Procurement Trends” explicitly notes that India has been gradually reducing its dependence on Russia and increasingly turning to Western countries such as the U.S., France, and the U.K., as well as Israel, for its arms imports.

May 27, 2025

GEDA invites tenders for Solar Waste recycling to tackle growing e-waste in Gujarat

Why in the News?

As India nears 500 GW renewable capacity by 2030, solar waste will surge. Gujarat’s GEDA launches a recycling framework to set standards, promoting sustainable waste management alongside solar growth.

What is Gujarat aiming to achieve with this solar waste recycling initiative?

Standardised Protocols: GEDA aims to formulate robust, eco-friendly, and enforceable protocols for handling solar and electronic waste.
Research-Driven Framework: The tender invites organisations to conduct feasibility studies and material recovery experiments, focusing on valuable materials like silicon, silver, copper, aluminum, and rare metals.
Focus on PV Technologies: The initiative spans across multiple technologies—crystalline silicon, CdTe, CIGS, and TOPCon cells—each requiring specialised recycling approaches.
Dismantling and Worker Safety: It includes drafting of guidelines for safe dismantling, regulatory compliance, and worker safety.

Why is Gujarat suitable for this initiative?

Solar Manufacturing Hub: Gujarat has the highest number of solar module manufacturers in India, creating a large volume of solar waste needing recycling. Eg: Numerous solar factories in Gujarat produce panels, which eventually generate recyclable waste.
Large-scale Solar Projects: The state hosts many big solar power plants, leading to significant quantities of end-of-life solar panels. Eg: Gujarat’s extensive solar farms produce damaged or old panels that require eco-friendly disposal methods.
Government Support: Gujarat’s proactive policies and agency initiatives foster effective recycling infrastructure and standards. Eg: GEDA’s tender for solar waste recycling research demonstrates the state’s commitment to clean energy sustainability.

How serious is the solar waste crisis in India?

Rapid Growth of Waste: From 100 kilotons in FY2023, India’s solar waste is projected to grow to 340 kilotons by 2030, according to CEEW’s 2024 report.
Long-Term Projection: The volume is expected to increase 32-fold between 2030 and 2050.
Panel Lifespan Ending: Panels installed during India’s solar boom (2010–2020) are now nearing the end of their 20–25 year lifespan.
Infrastructure Deficit: India currently lacks a national solar waste policy, making Gujarat’s move even more critical.

What are the challenges for India in recycling of E-waste?

Informal Sector Dominance: A large portion of e-waste recycling is handled by informal workers using unsafe methods, leading to health risks and environmental damage. Eg: Informal dismantling often involves burning or acid baths to extract metals, releasing toxic fumes.
Lack of Infrastructure: Insufficient formal recycling facilities and technology gaps limit efficient and eco-friendly processing of complex e-waste. Eg: Many regions lack certified recycling plants capable of handling advanced electronics like smartphones and solar panels.
Weak Enforcement and Awareness: Poor enforcement of regulations and low public awareness hinder proper e-waste collection and disposal. Eg: Consumers often discard e-waste with regular trash due to lack of knowledge or convenient drop-off options.

What are the steps taken by the Indian government?

Implementation of E-Waste Management Rules: The government has enacted regulations like the E-Waste (Management) Rules to ensure proper collection, recycling, and disposal of electronic waste. Eg: Mandatory Extended Producer Responsibility (EPR) requires manufacturers to take back and recycle e-waste from consumers.
Promoting Formal Recycling Infrastructure: Encouraging the development of certified recycling units with environmentally sound processes to handle e-waste safely. Eg: Setting up authorized e-waste recycling centers that use safe dismantling and recovery techniques.
Awareness and Capacity Building: Conducting campaigns and training programs to educate stakeholders, including consumers and informal sector workers, about e-waste hazards and management practices. Eg: Government and NGOs organizing workshops for informal recyclers to transition into formal, safer e-waste handling roles.

Way forward:

Strengthen Policy Enforcement and Infrastructure: Ensure strict implementation of e-waste and solar waste management regulations while investing in advanced, formal recycling infrastructure to enable safe, efficient, and large-scale recovery of valuable materials.
Promote Stakeholder Collaboration and Awareness: Enhance coordination between government agencies, industry, and informal workers through capacity building, incentives, and public awareness campaigns to foster sustainable recycling practices and support circular economy goals.

Mains PYQ:

[UPSC 2013] What are the legal provisions for management and handling of hazardous wastes in India? What are the strategies to pollution control?

Linkage: The GEDA initiative addresses the recycling of both solar waste and electronic waste (e-waste). E-waste often contains hazardous materials, requiring specialized processing. This question directly probes the legal and strategic framework for managing hazardous waste and controlling pollution, which is highly relevant to the challenges posed by growing e-waste and the need for a robust, eco-friendly recycling framework as envisioned by GEDA.

May 27, 2025

Trade deals will bring opportunities for Indian agriculture. But there will also be challenges

Why in the News?

India achieved record exports of $820.93 billion in FY25, rising 6.5%, but faced growing trade deficits as agriculture lagged, growing only 2.3% yearly despite employing half the workforce.

What was India’s trade performance in FY25?

Total exports (goods + services) reached $820.93 billion, marking a 6.5% increase over FY24.
Merchandise exports contributed $437.42 billion (53% of total exports), while services exports contributed $383.51 billion (47%).
Imports grew by 6.85% to $915.19 billion, with merchandise imports at $720.24 billion (79%) and services imports at $194.95 billion (21%).
The trade deficit widened to $94.26 billion from $78.39 billion in FY24.
The trade-to-GDP ratio stood at a robust 41.4%, reflecting India’s deeper integration with global markets.

How will Trade deals bring opportunities for Indian agriculture?

Reduced Dependence on Price-Sensitive Markets: Trade deals open new and stable markets for Indian agricultural exports, reducing over-reliance on traditional destinations and shielding against price volatility. Eg: The India-UK FTA could boost exports of premium products like Basmati rice, tea, spices, and processed foods to the UK, which is a high-value market with established Indian diaspora demand.

Boost Processed Agricultural Exports: Trade agreements typically reduce tariffs and non-tariff barriers, enhancing competitiveness of value-added and processed agri-products, which fetch higher margins. Eg: Under the India-UK FTA, processed foods and marine products can gain better access, enhancing India’s earnings from exports of ready-to-eat meals, seafood, and organic food products.

Why did agri-export growth slow down over the last decade?

Frequent Export Bans and Restrictions: Domestic policies often imposed export bans or curbs on essential commodities like rice, wheat, sugar, and onions to control inflation, disrupting export momentum. Eg: Restrictions on broken rice exports and duties on Basmati rice led to a 27% fall in rice export volume in FY24.
Global Price Fluctuations: Agri-exports are heavily influenced by global price trends — when world prices fall, Indian exports lose competitiveness and earnings. Eg: Rice export values declined despite volume recovering after lifting restrictions, due to price volatility.
Declining Productivity and Competitiveness: Lack of investment in research, technology, and resource-efficient farming practices lowered growth compared to earlier periods of rapid expansion. Eg: Average annual agri-export growth dropped from 20% (FY05–14) to just 2.3% (FY15–25).

How did rice export restrictions impact trade and prices?

Export Volume Decline: Restrictions like export bans, duties, and minimum export prices caused a sharp drop in rice export volumes. Eg: Rice exports fell by 27% from 22.3 million metric tonnes (MMT) in FY23 to 16.3 MMT in FY24.
Global Price Spike: Reduced supply due to restrictions pushed up global rice prices, affecting international markets. Eg: Imposition of export duties and minimum export price (MEP) on Basmati rice led to a spike in global rice prices.
Value Impact Less Severe than Volume: Despite the fall in export volume, the value of exports dropped only slightly because of higher prices. Eg: Rice export value fell by only 6% even as volumes dropped 27%, showing price effects cushioned revenue loss.

What are the environmental risks of rice exports?

Water Resource Depletion: Rice cultivation requires large amounts of water, which can strain local water supplies. Eg: In regions like Punjab, intensive rice farming has led to groundwater depletion and lowered water tables.
Methane Emissions: Flooded rice paddies emit methane, a potent greenhouse gas contributing to climate change. Eg: In Southeast Asia, vast rice fields are significant sources of methane emissions impacting global warming.
Soil Degradation and Pollution: Continuous rice farming with chemical fertilizers and pesticides can degrade soil quality and contaminate water bodies. Eg: Excessive use of agrochemicals in rice fields in Vietnam has caused soil salinization and river pollution.

What is the status of edible oil imports?

2022–23 (November–October): India imported approximately 16.5 million metric tons of edible oils, marking a 17% increase from the previous year. This surge was driven by lower import duties on key oils like palm, soybean, and sunflower oils.
2023–24 (November–October): Imports declined by about 3.1%, totaling 15.96 million metric tons, due to higher domestic oilseed production and reduced demand amid rising global prices.

The recent reduction in edible oil imports is very small. So, we need to take more steps to further cut down these imports.

How can India cut edible oil import dependence?

Increase Domestic Oilseed Production: Boost cultivation of oilseeds like groundnut, mustard, sunflower, and soybean through better seeds, irrigation, and farmer support. Eg: The “Oilseeds Production Mission” aims to raise domestic output and reduce imports.
Promote Sustainable Farming Practices: Encourage crop diversification and intercropping to improve yields and soil health, reducing reliance on imported oils. Eg: States like Madhya Pradesh have successfully adopted intercropping mustard with wheat to increase oilseed production.
Develop Processing Infrastructure: Invest in modern oil extraction and refining units to enhance local processing capacity and reduce post-harvest losses. Eg: Setting up mega oilseed processing clusters in regions like Rajasthan to strengthen the supply chain and self-reliance.

Way forward:

Strengthen Oilseed Ecosystem: Enhance productivity through quality seeds, MSP support, and targeted R&D under national missions like the Oil Palm and Oilseeds Mission.
Build Agro-Processing Capacity: Invest in decentralized, modern oilseed processing units to reduce wastage, improve value addition, and boost farmer income.

Mains PYQ:

[UPSC 2023] What are the direct and indirect subsidies provided to farm sector in India? Discuss the issues raised by the World Trade Organization(WTO) in relation to agricultural subsidies.

Linkage: Agricultural subsidies are a key area of contention in international trade negotiations, particularly within the WTO. Trade deals often involve discussions around reducing or reforming subsidies, which presents both a challenge (potential reduction of support for farmers) and an opportunity (creating a more level playing field or accessing new markets if other countries also reduce subsidies) for Indian agriculture.

May 26, 2025

Short Selling and Associated Risks

Why in the News?

The Securities and Exchange Board of India (SEBI) is considering a proposal to ease restrictions on short selling in most stocks.

SEBI’s January 2024 proposal to bar short-selling in stocks that are not in the futures and options segment had caused uncertainty.

What is Short Selling?

Definition: Short selling is a strategy where an investor sells a stock first and buys it later, aiming to profit from a price drop.
Opposite of Normal Trade: Unlike regular buying (buy low, sell high), short selling works on selling high and buying low.
How It Works: You borrow the stock from a broker, sell it at the market price, and later buy it back at a lower price to return it.
Example: If a stock is sold at ₹2,100 and later bought at ₹1,900, the profit is ₹200. If the price rises to ₹2,300 instead, the loss is ₹200.

Types of Short Selling:

Short Selling in the Spot Market (Cash Segment):

Shorting is allowed only for intraday trading (buying and selling financial instruments (like stocks) on the same day).
You must square off the position (buy back the stock) before 3:30 p.m. on the same day.
If not squared off, it leads to short delivery, where the exchange settles the trade through an auction.
There may be heavy penalties if the position is not closed on time.

Short Selling in the Futures Market:

Here, you can hold your short position overnight or even roll it over to the next month.
You must deposit margin money, which is generally higher.
Futures shorting is riskier and is mostly used by experienced traders.
This type allows more flexibility but involves greater financial commitment.

Risks Associated with Short Selling:

Unlimited Losses: If the stock price rises sharply, losses are unlimited.
Short Delivery Risk: Failing to buy back in the spot market can lead to penalties.
Liquidity Risk: Hard-to-trade stocks may lead to delayed buybacks and losses.
Margin Requirements: High margin costs in futures trading limit retail participation.
Market Volatility: Sudden movements may cause unexpected losses.
Not for Beginners: Due to complexity and high risk, short selling is unsuitable for new investors.

[UPSC 2025] Consider the following statements:

Statement I: As regards returns from an investment in a company, generally, bondholders are considered to be relatively at lower risk than stockholders.

Statement II: Bondholders are lenders to a company whereas stockholders are its owners.

Statement III: For repayment purpose, bondholders are prioritized over stockholders by a company.

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

(d) Neither Statement II nor Statement III is correct

May 26, 2025

PLI Scheme for 11 Pharma Products rolled out

Why in the News?

The Department of Pharmaceuticals has invited drug manufacturers to apply for benefits under the Production Linked Incentive (PLI) scheme.

It has invited fresh applications for 11 unsubscribed or partially subscribed pharmaceutical products, including Neomycin, Gentamycin, Erythromycin, Streptomycin, Tetracycline, Ciprofloxacin, and Diclofenac Sodium, to boost domestic production capacity.

About the PLI Scheme:

Launch: The Production Linked Incentive (PLI) Scheme was launched in March 2020.
Objectives: Aimed to boost domestic manufacturing, reduce import dependency, and create employment.
Initial Focus: Targeted three sectors — mobile manufacturing, electronic components, and medical devices.
Expansion: Later extended to 14 key sectors, including pharmaceuticals, textiles, IT hardware, automobiles, and electronics.
Incentive Structure: Offered 1%–4% incentives on incremental sales.
Impact: Attracted large-scale investments and enhanced global competitiveness of Indian industries.

PLI Scheme for Pharmaceuticals:

Target Area: Designed to promote bulk drug and formulation manufacturing in India.
Product Focus: Encouraged domestic production of Key Starting Materials (KSMs), Drug Intermediates (DIs), and Active Pharmaceutical Ingredients (APIs).
Strategic Aim: Aimed to reduce import dependence, particularly on China.
Financial Allocation: Total outlay for the pharmaceutical PLI scheme is ₹6,940 crore.

[UPSC 2023] Consider the following statements:

Statement-I: India accounts for 3.2% of global exports of goods.

Statement-II: Many local companies and some foreign companies operating in India have taken advantage of India’s ‘Production-linked Incentive’ scheme.

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 is the correct explanation for Statement-I (b) Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I (c) Statement-I is correct but Statement-II is incorrect (d) Statement-I is incorrect but Statement-II is correct

May 26, 2025