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GS Paper: GS3

  • Apr-Jun unemployment at 5.4%, highest in 4 quarters

    Why in the News

    The unemployment rate for persons aged 15 years and above rose to 5.4% in April-June 2026, a four-quarter high, according to the Periodic Labour Force Survey (PLFS). Youth and urban women experienced the sharpest increase.

    What is PLFS?

    • PLFS: Periodic Labour Force Survey.
    • Conducted by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation (MoSPI).
    • Launched in 2017.
    • Replaced the earlier quinquennial Employment-Unemployment Surveys.
    • Provides regular employment and unemployment estimates.

    What did April-June 2026 PLFS Show?

    • Overall: 5.4% from 5.0% in the previous quarter.
    • Rural: 4.8% from 4.3%.
    • Urban: 6.7% from 6.6%.
    • Female: 5.7% from 5.3%.
    • Male: 5.3% from 4.8%.
    • Employed population: About 566 million, including 402 million males and 164 million females.

    Where is Joblessness Concentrated?

    • Youth (15-29 years): 15.9%, the highest in the current PLFS series.
    • Female youth: 19.6%, a series high.
    • Urban females: 8.7% compared with 6.1% for urban males.
    • Rural females: 4.7%, close to rural males at 4.8%.
      • Key takeaway: The headline unemployment rate masks much higher youth and urban female unemployment, pointing to problems of job quality, skills and labour-market absorption.

    About Unemployment

    • Unemployment refers to people in the labour force who are willing and able to work but do not have work.
    • Key Labour Indicators
      • Labour Force Participation Rate (LFPR): Labour force as a percentage of the working-age population.
      • Worker Population Ratio (WPR): Employed persons as a percentage of the population.
      • Unemployment Rate (UR): Unemployed persons as a percentage of the labour force.

    Types of Unemployment

    1. Structural: Skill or location mismatch with available jobs.
    2. Frictional: Temporary unemployment while changing jobs.
    3. Cyclical: Caused by economic downturns.
    4. Disguised: More workers employed than required, common in agriculture.
    5. Seasonal: Employment varies with seasons, especially agriculture.

    Back2Basics: PLFS

    • Full form: Periodic Labour Force Survey.
    • Conducted by: National Statistical Office (NSO).
    • Ministry: Ministry of Statistics and Programme Implementation (MoSPI).
    • Launched: 2017.
    • Coverage: Rural and urban India.
    • Key measures: Usual Status and Current Weekly Status (CWS).
    • Youth: Persons aged 15-29 years.

    Government Initiatives

    • MGNREGA: Mahatma Gandhi National Rural Employment Guarantee Act, providing up to 100 days of rural wage employment.
    • PMKVY: Pradhan Mantri Kaushal Vikas Yojana, promoting skill development.
    • Skill India Mission: Develops a skilled workforce.
    • Startup India & Stand-Up India: Promote entrepreneurship.
    • ELI: Employment Linked Incentive Scheme, encouraging formal employment creation.

    “[2023, GS3, 15 marks] Most of the unemployment in India is structural in nature. Examine the methodology adopted to compute unemployment in the country and suggest improvements.”

    [2018] With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements :

    1. It is the flagship scheme of the Ministry of Labour and Employment.
    2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.
    3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.
    Which of the statements given above is/are correct?

    (a) 1 and 3 only

    (b) 2 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

  • Seamless digital payments have a price / UPI and the cost of policy reversal

    Why in the News

    Parliament has passed the Taxation and Other Laws (Amendment) Bill, 2026, allowing a legal framework for possible charges on Unified Payments Interface (UPI) and RuPay debit card transactions. The debate centres on whether digital payments should remain free to promote inclusion or adopt a sustainable funding model.

    What is UPI?

    • UPI: Unified Payments Interface.
    • Enables instant bank-to-bank payments through mobile applications.
    • Operated by the National Payments Corporation of India (NPCI).
    • Processed 23.6 billion transactions in July.

    What is Merchant Discount Rate (MDR)?

    • MDR: Merchant Discount Rate.
    • A fee charged for processing digital payments, generally paid by merchants.
    • Credit-card MDR: around 1-3%.
    • Debit-card MDR: up to 0.9%.
    • UPI has followed a zero-MDR regime since 2020.

    What Does the 2026 Bill Do?

    • Amends Section 10A of the Payment and Settlement Systems Act, 2007.
    • Creates legal space for the government to notify charges on specified electronic payment modes.
    • A proposed MDR of 0.25-0.5% has been discussed for UPI transactions above ₹2,000.
    • This could cover about 5% of transactions by volume but around 65% by value.
    • The government has stated that consumers and small merchants will not bear MDR and the final framework is yet to be decided.

    Why is Zero-MDR Considered Unsustainable?

    1. Infrastructure costs: Huge transaction volumes require continuous investment.
    2. Fraud prevention: Cybersecurity and fraud-control systems require funding.
    3. Government support: ₹8,730 crore was provided through incentives during 2021-22 to 2024-25.
    4. Funding gap: This covered only a limited share of industry costs.
    5. Market concentration: PhonePe and Google Pay together account for around 80% of UPI transactions.

    What is a Two-Sided Market?

    • A platform connecting two groups whose participation reinforces each other.
    • UPI: Consumers ↔ Payment platforms ↔ Merchants
    • More users attract more merchants, while more merchants attract more users. Therefore, imposing a charge on one side may reduce the network effect.

    Why Could MDR Affect UPI?

    Arguments for charges

    • Provides sustainable revenue for infrastructure.
    • Supports innovation and fraud prevention.
    • May attract more competitors into the UPI ecosystem.

    Arguments against charges

    • Could discourage merchants and consumers from using digital payments.
    • Intermediaries may absorb the cost rather than pass it on.
    • Could weaken India’s financial inclusion and formalisation gains.
    • May encourage a shift back towards cash.

    About India’s Digital Payments Ecosystem

    • RBI: Reserve Bank of India, the regulator.
    • NPCI: National Payments Corporation of India, operator of major retail payment rails.
    • Banks and fintechs: Participate as payment service providers.
    • UPI: Real-time account-to-account payment system.
    • RuPay: India’s domestic card payment network.

    Statutory Framework

    • Payment and Settlement Systems Act, 2007: Regulates payment systems under RBI supervision.
    • Section 10A: Provides the framework for charges on specified electronic payment modes.
    • RBI Act, 1934: Establishes the Reserve Bank of India.
    • Information Technology Act, 2000: Provides legal recognition to electronic records and authentication.

    Back2Basics: NPCI

    • Full form: National Payments Corporation of India.
    • Established: 2008.
    • Nature: Not-for-profit company.
    • Promoted by: Banks under the guidance of RBI and Indian Banks’ Association (IBA).
    • Key systems: UPI, RuPay, Immediate Payment Service (IMPS), FASTag and Bharat Bill Payment System (BBPS).

    Government Initiatives

    • UPI Incentive Scheme: Supports the cost of low-value UPI transactions.
    • Digital India Programme: Expands digital infrastructure and inclusion.
    • BHIM: Bharat Interface for Money, NPCI’s UPI application.
    • RuPay: Domestic card network.
    • JAM: Jan Dhan-Aadhaar-Mobile trinity supporting digital transfers and financial inclusion.

    “[2026] Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is NOT correct?

    (a) UPI is a real-time payment system but Digital Rupee is akin to sovereign paper currency

    (b) In case of UPI, settlement for end users happens instantly; in case of Digital Rupee, wallet balance gets transferred to another wallet (no traditional settlement)

    (c) UPI transactions are recorded by banks and reflected in bank statements; in case of Digital Rupee, no data is captured in bank statements

    (d) In both the cases (UPI and Digital Rupee), the liability lies with the users and their respective banks

  • Evidence of non-Mendelian inheritance in mice

    Why in the News

    Researchers have reported evidence of non-Mendelian inheritance in mice, involving DNA methylation, genomic imprinting and paramutation. Nanopore sequencing helped detect these epigenetic marks.

    What is Epigenetic Inheritance?

    1. Definition: Transmission of heritable changes in gene activity without altering the underlying DNA sequence.
    2. Major mechanism: Chemical modifications such as DNA methylation can influence whether genes are switched on or off.
    3. Non-Mendelian: Unlike classical Mendelian inheritance, the inherited information is not limited to changes in the DNA sequence.
    4. Genomic imprinting: Expression of certain genes depends on whether they are inherited from the mother or father.
    5. Paramutation: One allele can induce a heritable change in the expression of another allele without changing its DNA sequence.
    6. Nanopore sequencing: Can detect certain DNA modifications, including methylation, while sequencing DNA.

    Why does it matter?

    • Expands inheritance theory: Heritable information can involve regulatory/epigenetic states in addition to DNA sequence.
    • Environment and inheritance: Some environmental factors can influence epigenetic states, though not every acquired epigenetic change is necessarily inherited.
    • Disease relevance: Abnormal epigenetic regulation is associated with cancers and other diseases.
    • Biotechnology: Advanced sequencing can help identify epigenetic modifications alongside DNA sequences.

    “[2021, GS3, 15 marks] What are the research and developmental achievements in applied biotechnology? How will these achievements help to uplift the poorer sections of society?

    [2021] In the context of hereditary diseases, consider the following statements:
    1. Passing on mitochondrial diseases from parent to child can be prevented by mitochondrial replacement therapy either before or after in vitro fertilization of egg.
    2. A child inherits mitochondrial diseases entirely from mother and not from father.
    Which of the statements given above is/are correct?

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

  • AI tool can shrink and rewrite proteins

    Why in the News

    A university team has developed Raygun, an AI tool that can redesign and miniaturise proteins while retaining their function. This could improve the delivery of protein-based therapies and accelerate drug development.

    What is AI-based Protein Engineering?

    1. Protein engineering: Designing or modifying proteins to obtain desired properties such as smaller size, stability or specific biological functions.
    2. AI-based design: AI models trained on protein sequences can predict and generate redesigned protein structures.
    3. Raygun: The tool can shrink proteins while attempting to preserve their function, potentially making them easier to deliver.

    Why does it matter?

    • Gene therapy: Delivery vectors have limited cargo capacity. Smaller functional proteins can make therapeutic delivery easier.
    • Drug development: AI can reduce dependence on lengthy trial-and-error approaches in protein design.
    • Precision medicine: Engineered proteins could potentially be tailored for specific therapeutic functions.
    • Biosafety: Powerful AI-enabled biological design raises concerns regarding misuse, unintended effects and governance.

    Protein engineering ≠ gene editing

    • Protein engineering: Modifies/designs the protein to alter its properties.
    • Gene editing: Directly modifies DNA sequences.
    • AI protein design: Uses computational models to predict or generate useful protein sequences/structures.
    • Gene therapy: Uses genetic material or biological mechanisms to treat disease.

    [2026] Which of the following statements with regard to genetic medicine is/are correct ?
    1. Genetic medicines correct/compensate for the faulty genes responsible for disease.
    2. Engineered viruses and lipid nanoparticles are used as carriers of the genetic medicine.
    3. Genetic medicines alter the entire DNA sequence.
    Select the answer using the code given below :

    [A] 1 only

    [B] 2 and 3 only

    [C] 1 and 2 only

    [D] 1, 2 and 3

  • Assam floods linked to rat-hole and riverbed mining

    Why in the News

    Localised floods in Sivasagar, Charaideo and Jorhat districts of Assam have drawn attention to the role of rat-hole coal mining and riverbed mining in altering local drainage and aggravating flood impacts.

    What is Rat-Hole Mining?

    1. Method: A hazardous form of coal extraction through narrow horizontal tunnels, often too small for mechanised mining.
    2. Region: Historically prevalent in Meghalaya and other parts of Northeast India.
    3. NGT Ban: The National Green Tribunal (NGT) banned rat-hole coal mining in Meghalaya in 2014, citing environmental degradation and safety concerns.
    4. Environmental impact: Unregulated mining can disturb soil, drainage channels and river systems.

    How Can Mining Aggravate Floods?

    • Altered drainage: Mining and riverbed extraction can modify natural water-flow pathways.
    • Siltation: Mining activities can increase sediment entering waterways, reducing effective channel capacity.
    • Loss of natural buffers: Landscape disturbance can reduce the ability of terrain to absorb and retain water.
    • Compounded disaster: Heavy rainfall combined with degraded drainage can intensify flooding and displacement.

    Governance Issue

    • NGT ban → weak enforcement → continued illegal mining → environmental degradation → greater disaster vulnerability

    [2018] Which of the following is/are the possible consequence/s of heavy sand mining in riverbeds ?

    1. Decreased salinity in the river
    2.Pollution of groundwater
    3.Lowering of the water-table
    Select the correct answer using the code given below :

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

  • India’s first open-access ecoacoustic biodiversity dataset

    Why in the News

    Researchers have released India’s first open-access, crowdsourced ecoacoustic biodiversity dataset, capturing 518 species across 5,815 minutes of recordings from 25 states and union territories.

    What is ecoacoustics?

    1. Ecoacoustics is the study of sounds produced by organisms and the surrounding environment to understand ecosystems, biodiversity and ecological change.
    2. Instead of relying only on visual surveys, passive acoustic recorders can continuously capture:
      • Bird calls, Insect sounds, Frog and bat calls, Reptile and mammal vocalisations, Marine animal sounds, Background environmental sounds such as rain, wind and human activity

    Why does it matter?

    1. Non-invasive monitoring: Sound-based surveys track biodiversity cheaply and continuously across large areas.
    2. Open science: An open-access, crowdsourced dataset lets any researcher reuse the data for conservation.
    3. Baseline data: It creates a reference against which future biodiversity loss can be measured.

    [2023] Which of the following organisms perform waggle dance for others of their kin to indicate the direction and the distance to a source of their food?

    [A] Butterflies

    [B] )Dragonflies

    [C] Honeybees

    [D] Wasps

  • BNHS launches India’s first invasive-fish removal programme

    Why in the News

    The Bombay Natural History Society (BNHS) has launched India’s first community-driven removal programme for the invasive suckermouth catfish in Ujani Reservoir, Maharashtra.

    Suckermouth Catfish: Key Facts

    • Origin: Amazon River basin, South America.
    • Entry into India: Introduced through the aquarium trade and later released into natural waterways.
    • Local name: “Helicopter fish”.
    • Why invasive?
      • Feeds on fish eggs.
      • Competes with native bottom-feeding fish.
      • Burrows into riverbanks and can weaken earthen structures.
      • Adapts to adverse conditions.

    Scale of the Invasion

    • Around 97% of fish in Ujani are alien species including suckermouth catfish, Tilapia and African catfish.
    • Native fish account for only 3%.
    • Suckermouth catfish alone constitute around 30 to 40% of the total fish population.

    Impact on Fishermen

    • Around 20,000 people including fishermen, traders, transporters and labourers depend on the reservoir.
    • Invasive fish damage fishing nets and reduce the catch of economically valuable Rohu, Catla and Mrigal.
    • Fishermen may need to replace nets every 15 to 20 days, adding to costs.

    BNHS Removal Model

    • Collection centre established at Bhigwan fish market.
    • Fishermen receive financial incentives for collecting the invasive fish.
    • 36+ tonnes have already been removed.
    • Fish is processed into molasses used as fertiliser.
    • Creates a removal + livelihood + waste-utilisation model.

    “[2023] Invasive Species Specialist Group (that develops Global Invasive Species Database) belongs to which one of the following organizations?

    (a) The International Union for Conservation of Nature

    (b) The United Nations Environment Programme

    (c) The United Nations World Commission for Environment and Development

    (d) The World Wide Fund for Nature.

  • VB-GRAM G rural jobs fall in its first month

    Why in the News

    After replacing MGNREGS on 1 July 2026, the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB-GRAM G] recorded nearly a 50% year-on-year decline in rural employment generated during its first month.

    What is VB-GRAM G?

    1. New framework: Replaced MGNREGS from 1 July 2026.
    2. Employment guarantee: Increased from 100 to 125 days per rural household.
    3. Digital monitoring: Retains face-authentication-based attendance.

    Why did employment fall?

    1. Transition friction: Migration of registrations, job cards and payment systems disrupted work allocation.
    2. Sowing season: Provision for pausing employment demand during peak agricultural operations reduced July person-days.
    3. Comparability issue: Comparing July 2026 with July 2025 may exaggerate the decline because the institutional framework has changed.
    4. Implementation lag: Initial administrative bottlenecks may have temporarily reduced employment generation.

    MGNREGS: Back to Basics

    • Ministry: Ministry of Rural Development.
    • Legal basis: MGNREGA, 2005.
    • Guarantee: At least 100 days of wage employment per rural household.
    • Nature: Demand-driven, rights-based employment programme.
    • Eligibility: Rural households whose adult members volunteer for unskilled manual work.

    [2011] Among the following who are eligible to benefit from the Mahatma Gandhi National Rural Employment Guarantee Act?

    (a) Adult members of only the scheduled caste and scheduled tribe households

    (b) Adult members of below poverty line (BPL) households

    (c) Adult members of households of all backward communities

    (d) Adult members of any household.

  • Gujarat port concessions near expiry, reopening the BOOT debate

    Why in the News

    Concessions for Gujarat’s Pipavav and Mundra ports near expiry, reopening the debate on the Build-Own-Operate-Transfer (BOOT) model and how India structures private port infrastructure.

    What is the BOOT model?

    1. Definition: Under Build-Own-Operate-Transfer (BOOT), a private operator finances, builds, and runs an asset for a fixed concession period, then transfers it back to the public authority.
    2. Application: Gujarat’s 1997 BOOT framework let private players develop ports like Mundra and Pipavav on state maritime board land.

    What is at stake as concessions expire?

    1. Asset transfer terms: Expiry forces a decision on renewal, renegotiation, or transfer of high-value operating ports.
    2. Investment signal: The treatment of expiring concessions shapes confidence for greenfield private ports such as Vizhinjam and Dhamra.
    3. Federal split: Major ports fall under the Centre while non-major ports like Gujarat’s fall under state maritime boards, complicating policy.

    “[2026] Consider the following statements with reference to the Sagarmala Programme of the Government of India :
    I. The Sagarmala Programme seeks to achieve port-led economic growth through cost-effective and sustainable coastal infrastructure.
    II. The success of the Sagarmala Programme is reflected in significant growth in coastal and inland waterway shipping, along with improved global port rankings.
    III. Sagarmala 2.0 aims to position India as global maritime innovation hub aligned with Atmanirbhar Bharat and Viksit Bharat 2047 visions.
    Which of the following relationships among the above statements is/are correct?
    1. Statement II validates the effectiveness of the strategies envisioned in statement I.
    2. Statement III extends the objectives of statement I by embedding them into a future-oriented innovation framework.
    3. Statement I contradicts statement III by focusing only on traditional infrastructure instead of modern innovation.
    Select the answer using the code given below:

    [A] 1 only

    [B] 1 and 2

    [C] 2 and 3

    [D] 3 only

  • FDI approval threshold for CCEA clearance to rise sharply

    Why in the News

    The government plans to raise the FDI threshold requiring CCEA approval from ₹5,000 crore to ₹15,000 crore, reducing political-level scrutiny for large investments.

    What is the FDI Approval System?

    1. Automatic route: No prior government approval is required.
    2. Government route: Requires approval from the concerned ministry/department.
    3. CCEA layer: Very large proposals above the prescribed threshold require Cabinet Committee on Economic Affairs (CCEA) approval.

    What is the impact of Raising the Threshold?

    1. Fewer escalations: Investments between ₹5,000 crore and ₹15,000 crore can avoid CCEA clearance.
    2. Faster approvals: Reduces procedural delays and improves the ease of doing business.
    3. Greater investment autonomy: Gives ministries greater authority to clear large investments.
    4. Liberalisation: Continues India’s shift towards a simpler, faster FDI regime, following the abolition of FIPB in 2017.

    Back2Basics

    1. FDI: Investment by a foreign entity in an Indian enterprise with a lasting interest.
    2. FIPB: Abolished in 2017; its role was transferred mainly to the concerned ministries/departments.
    3. Key balance: Faster approvals must be accompanied by national security, competition and strategic-sector safeguards.

    PYQ Relevance

    [UPSC 2016] Justify the need for FDI for the development of the Indian economy. Why is there a gap between MoUs signed and actual FDIs? Suggest remedial steps to be taken for increasing actual FDIs in India.

    Linkage: The PYQ examines FDI as a driver of investment, growth and ease of doing business. Raising the approval threshold can reduce delays and help convert investment proposals into actual FDI inflows.