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GS Paper: GS3

  • [12th May 2025] The Hindu Op-ed: A fundamental reset to drive manufacturing growth

    PYQ Relevance:

     [UPSC 2023] Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard.

    Linkage: The importance of the manufacturing sector for economic growth and asks about government policies concerning it, including MSMEs. This aligns perfectly with the theme of driving manufacturing growth as discussed in the article.

     

    Mentor’s Comment:  Global manufacturing and trade are quickly changing, focusing more on products that use advanced technology and innovation. This shift is being powered by strong research and development (R&D), modern technology, skilled workers, and complex supply chains. Also, the high tariffs recently introduced by the United States are expected to further change how the manufacturing industry works.

    Today’s editorial talks about how global manufacturing and trade are changing because of the use of advanced technology and innovation. This topic is useful for GS Paper II (International Relations and Policy Making) and GS Paper III (Manufacturing Sector).

    _

    Let’s learn!

    Why in the News?

    As global changes are set to reshape the manufacturing industry, it is important to focus on technical education, core engineering skills, and new ideas (innovation).

    What challenges hinder India’s efforts to match global manufacturing standards?

    • Low Manufacturing Productivity: India’s manufacturing sector is far less efficient compared to global benchmarks. Eg: In 2023, India’s productivity stood at $8.9K, while the global average was $32K, and the U.S. reached $159K.
    • Limited R&D Investment: Innovation-driven manufacturing requires substantial R&D support, which remains inadequate in India. Eg: India spends just 0.65% of its GDP on R&D, while China spends 2.4% and South Korea 4.5%.
    • Skills Mismatch and Weak Technical Education: The gap between academic training and industrial skill requirements slows the shift to high-tech manufacturing. Eg: Most engineering institutions focus on theory, grading, and rote learning, with less than 50% emphasis on practical training.
    • Underdeveloped Industrial Infrastructure: India lacks world-class manufacturing ecosystems with integrated supply chains and R&D support. Eg: Unlike China’s fully equipped industrial parks, many Indian parks lack plug-and-play facilities, design labs, and testing centers.
    • Low Per Capita Manufacturing Output: India’s contribution to manufacturing per individual is among the lowest in major economies. Eg: In 2023, India’s per capita value added was $0.32K, while the global average was $2K.

    Why must India reform technical education for innovation-led manufacturing?

    • Lack of Practical Skill Development: Engineering education in India emphasizes theoretical knowledge over hands-on experience. Eg: Less than 50% of curriculum time is dedicated to lab work or industry projects, reducing readiness for real-world manufacturing tasks.
    • Weak Focus on Creativity and Problem-Solving: Entrance exams and academic culture focus on rote learning rather than fostering innovation. Eg: Students are trained to solve predefined problems, but lack the ability to tackle open-ended, real-world challenges in engineering and design.
    • Outdated Laboratory and Workshop Infrastructure: Many technical institutions lack modern facilities to train students in advanced manufacturing techniques. Eg: Few colleges have tool rooms, CNC machines, or 3D printing labs, which are standard in global manufacturing training programs.
    • Disconnect Between Industry Needs and Curriculum: The current syllabus often fails to align with rapidly evolving industrial technologies and skills. Eg: Courses in AI integration, robotics, and IoT in manufacturing are still missing or underdeveloped in most core engineering streams.
    • Limited Industry-Academia Collaboration: Technical education lacks structured partnerships with manufacturing companies for internships, research, and product development. Eg: Unlike Germany’s dual education model, Indian students rarely work on live industry problems during their course of study.

    How do state-specific manufacturing parks boost industrial ecosystems?

    • Accelerate Industrial Setup with Plug-and-Play Infrastructure: Ready-to-use facilities reduce time and cost for new manufacturing units. Eg: Tamil Nadu’s SIPCOT parks offer land, power, and water connections upfront, attracting auto and electronics manufacturers quickly.
    • Encourage Localized Skill Development and Employment: Parks drive local job creation and training programs aligned with industry needs. Eg: Gujarat’s Dholera SIR includes skill centers to train youth for electronics, EV, and robotics industries.
    • Foster Innovation and Prototype Development: Dedicated facilities help companies develop, test, and refine products. Eg: Karnataka’s Aerospace SEZ near Bengaluru hosts R&D labs, testing units, and design centers supporting aerospace startups.
    • Build Industry Clusters and Supply Chains: Concentration of allied industries creates efficient ecosystems with shared logistics and services. Eg: Andhra Pradesh’s Sri City SEZ houses over 180 companies across sectors like consumer goods and automotive, fostering collaboration.
    • Attract Investment Through Tailored State Policies: State-specific incentives aligned with local strengths draw both domestic and foreign investors. Eg: Maharashtra’s Aurangabad Industrial City (AURIC) offers tax benefits and sector-specific infrastructure to attract high-tech industries.

    Way forward: 

    • Revamp Technical Education and Skilling: Align curricula with industry 4.0 needs, strengthen practical training, and build strong industry-academia partnerships to boost innovation-led manufacturing.
    • Strengthen Industrial Ecosystems: Expand world-class infrastructure, ensure faster regulatory clearances, and scale up R&D investment to create globally competitive manufacturing hubs.

  • FTA with UK: How a stitch in time can boost India’s textile sector

    Why in the News?

    On May 6, India and the UK signed an important Free Trade Agreement (FTA), which was called a historic achievement by Prime Minister Narendra Modi. The FTA creates new opportunities for the textile sector, which now needs to match global styles and standards

    What are the key benefits of the India-UK Free Trade Agreement (FTA)?

    Benefit Description Eg
    1. Enhanced Market Access India gains zero-duty access to UK markets for industrial and agricultural goods; UK exporters get reduced tariffs in India. Indian processed foods earlier faced 10–12% tariffs — now duty-free in the UK. Tariffs on British whiskey reduced from 150% to 40% over 10 years.
    2. Boost to Key Domestic Sectors Labour-intensive Indian sectors like textiles, apparel, toys, and footwear benefit; UK gains in automobiles and spirits. Indian apparel now gets zero-tariff access to UK.

    Tariffs on British cars slashed from 100% to 10%.
    3. Job Creation & Economic Growth Trade expansion leads to employment generation and investment in both countries. India’s textile sector, employing 45+ million people, can boost jobs through increased exports.
    4. Diversification of Trade Partners India reduces dependency on US/EU; UK diversifies beyond EU post-Brexit. India currently holds just 1.8% share in UK imports — FTA targets major increase.
    5. Foundation for Future FTAs Sets a model for India’s trade negotiations with other major economies like the EU and US. Learnings from tariff cuts and ESG compliance can aid future deals with EU/US.

    How can India improve its Textiles and Apparel sector to capitalize on the FTA with the UK?

    • Strengthen the Value Chain and Infrastructure: India must address its fragmented and geographically dispersed T&A value chain. Fast-tracking the operationalization of PM MITRA parks can create integrated textile hubs, reduce logistics costs, and improve delivery timelines. Eg: Bangladesh delivers apparel orders in 50 days compared to India’s 63 days — a more integrated value chain can help India match or exceed this efficiency.
    • Promote Manmade Fibre (MMF) Production: India needs to resolve the inverted GST structure and ease quality norms to boost MMF-based products, which dominate global demand for technical textiles, athleisure, and activewear. Eg: MMF garments are taxed higher at the input stage than at the finished product level, making Indian exports less competitive globally.
    • Focus on Compliance, Design, and Market Relevance: Indian exporters must align with global fashion trends and strengthen ESG (Environmental, Social, Governance) compliance, especially in anticipation of EU and UK sustainability regulations. Eg: The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) will require traceable, ethical supply chains by 2029 — Indian exporters must prepare accordingly.

    Why is the operationalisation of PM MITRA parks important for India’s textile industry?

    • Integrated Value Chain and Reduced Costs: PM MITRA parks aim to bring together the entire textile value chain — from spinning, weaving, processing to garmenting — in one location, reducing logistics costs, delays, and inefficiencies. Eg: Currently, cotton is grown in Gujarat, yarn spun in Tamil Nadu, and garments stitched elsewhere, leading to high costs and long lead times. An integrated park would streamline this process.
    • Boost Export Competitiveness: These parks can help scale up production, attract investment, and improve quality standards for global markets like the UK, where India now enjoys zero-duty access under the FTA. Eg: By focusing PM MITRA parks in export-oriented regions like Navsari (Gujarat) and Virudhunagar (Tamil Nadu), India can cater more efficiently to UK and EU demand.

    Where does India lag behind in terms of manmade fibre (MMF) production compared to global competitors?

    • Inverted GST Duty Structure: The GST on raw materials (like MMF yarn at 12%) is higher than on finished products (5%), leading to increased production costs and reduced global competitiveness. Eg: Indian MMF garments are costlier compared to those from Vietnam or Bangladesh, where tax structures are more balanced.
    • Restrictive Quality Norms and Compliance Issues: Outdated or complex quality standards limit innovation and access to high-performance MMF products demanded in global markets. Eg: Indian firms struggle to meet the quality requirements for technical textiles used in athleisure and activewear segments.
    • Lack of Investment in High-End Functional Fabrics: India has limited capacity for producing value-added MMF fabrics such as moisture-wicking, stretchable or anti-bacterial textiles, unlike China or South Korea. Eg: While China leads in exporting performance-based textiles, India still focuses on basic polyester products.

    Way forward: 

    • Reform Tax Structure & Boost Incentives: Rationalize the GST structure to eliminate the inverted duty issue and offer production-linked incentives (PLI) for MMF textiles to enhance global competitiveness.
    • Invest in R&D and Modern Manufacturing: Encourage investment in high-performance MMF fabric production, innovation, and compliance infrastructure to meet international standards in technical textiles and sustainability.

    Mains PYQ:

    [UPSC 2017] Account for the failure of the manufacturing sector in achieving the goal of labor-intensive exports. Suggest measures for more labor-intensive rather than capital – intensive exports.

    Linkage: Textiles and Apparel (T&A) sector as a labour-intensive sector that employs over 45 million people and can benefit significantly from the FTA by gaining access to high-end markets. This question directly asks about promoting labour-intensive exports, aligning perfectly with the potential benefits highlighted for the T&A sector through the FTA.

  • Gold’s Cosmic Origins from Magnetar Flares

    Why in the News?

    A new study by Columbia University, suggests that the universe may have an alternate mechanism for producing gold — not just in neutron star collisions, as previously believed, but also in magnetar flares.

    Gold's Cosmic Origins from Magnetar Flares

    What are Magnetars?

    • Magnetars are a rare type of neutron star with immensely strong magnetic fields, among the most powerful in the universe.
    • They are formed when a massive star collapses during a supernova, leaving a highly dense stellar core.
    • Due to magnetic instability, magnetars sometimes release intense flares of X-rays and gamma rays.
    • These flares can be millions of times stronger than typical solar flares.
    • A magnetar’s magnetic field is estimated to be about a thousand times stronger than that of ordinary neutron stars.

    r-Process in a Magnetar Flare:

    • The r-process (rapid neutron-capture process) forms heavy elements like gold, platinum, and uranium by rapidly attaching neutrons to atomic nuclei.
    • It was earlier believed to occur mainly in neutron star mergers.
    • In a 2024 study, scientists analysed a 2004 magnetar flare followed by delayed gamma-ray emissions, recorded by NASA’s Compton Gamma Ray Observatory.
    • The radiation patterns matched those of radioactive decay from r-process elements, suggesting neutron-rich nuclei were produced.
    • Around 1.9 septillion kilograms of matter was ejected at near-light speeds, marking the first direct evidence of r-process nucleosynthesis in a magnetar flare.

    Implications for Gold Formation:

    • The study shows that magnetar flares may also produce gold and other heavy elements, not just neutron star collisions.
    • This implies such elements could have formed earlier in the universe than previously believed.
    • The findings broaden our understanding of the origins of chemical elements in space.
    • It confirms that multiple astrophysical events contribute to the formation of heavy elements.
    • It also offers a new perspective on cosmic gamma-ray bursts and ancient stellar compositions.
    [UPSC 2012] Consider the following is/are cited by the scientists as evidence/evidences for the continued expansion of the universe?

    1. Detection of microwaves in space

    2. Observation of redshift phenomenon in space

    3. Movement of asteroids in space

    4. Occurrence of supernova explosions in space

    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

     

  • Scientists create first ‘Pangenome’ of Asian Rice

    Why in the News?

    Chinese researchers has developed a first-of-its-kind rice pangenome by integrating genetic data from 144 wild and cultivated rice varieties from Asia (similar to the Human Genome Project).

    About the Rice Pangenome:

    • A pangenome includes both the core genes shared by all members of a species and the unique genes found in specific varieties, offering a complete view of genetic diversity.
    • The rice pangenome was built using data from 144 wild and cultivated rice varieties across Asia, making it the first comprehensive genomic resource for rice.
    • Researchers led the project from the Chinese Academy of Sciences to explore rice evolution and domestication.
    • Researchers used PacBio HiFi sequencing and advanced computational tools to detect variations, uncovering 3.87 billion base pairs of genetic material previously missing from the standard rice genome.

    Key Findings:

    • The study identified 69,531 genes, including 28,907 core genes common to all varieties and 13,728 genes unique to wild rice.
    • About 20% of all genes were exclusive to wild rice, offering potential for trait improvement in cultivated varieties.
    • The study confirmed that all Asian cultivated rice (Oryza sativa L.) originated from Or-IIIa, a subgroup of Oryza rufipogon.
    • Japonica rice was first domesticated in China, while indica rice arose later via hybridization as japonica spread across Asia.
    • Wild-specific genes were linked to environmental adaptation, phenotypic flexibility, and regenerative traits, offering insights for future crop resilience.
    • Bridging the genetic gap between wild and cultivated rice could lead to climate-resilient and high-yield varieties.

    India’s Contribution:

    • Rice is India’s staple food and the main monsoon crop, grown from June to September.
    • In 2024–25, India produced a record 220 million tonnes of rice over 51,000 hectares, with an average yield of 4.2 tonnes per hectare.
    • The Indian Council of Agricultural Research (ICAR) has developed two genome-edited rice varieties — Samba Mahsuri and MTU 1010 — known for higher yields and drought resistance; these are currently under testing.
    [UPSC 2001] Assertion (A): Scientists can cut apart and paste together DNA molecules at will, regardless of the source of the molecules. Reason (R): DNA fragments can be manipulated using restriction endonucleases and DNA ligases.

    Options: (a) Both A and R are individually true and R is the correct explanation of A * (b) Both A and R are individually true but R is NOT a correct explanation of A (c) A is true but R is false (d) A is fasle but R is true

     

  • BrahMos: the ‘Fire and Forget’ Stealthy Cruise Missile 

    brahmos

    Why in the News?

    The BrahMos supersonic cruise missile has garnered global attention as it was reportedly used for the first time in a combat scenario during Operation Sindoor.

    About the BrahMos Missile:

    • BrahMos is a supersonic cruise missile jointly developed by India and Russia through BrahMos Aerospace.
    • The name is derived from the Brahmaputra River (India) and the Moskva River (Russia).
    • It is one of the world’s fastest cruise missiles, reaching speeds up to Mach 3.
    • It was first successfully tested on June 12, 2001, from Chandipur, Odisha.
    • It is a ‘fire and forget’ missile, requiring no further guidance after launch.
    • It can be launched from land, sea, air, and submarine platforms.
    • It has been inducted into the Indian Navy (2005), Army (2007), and Air Force (2017).
    • Key Features:
      • Classified as a stand-off weapon, it can be launched from a safe distance, avoiding enemy defences.
      • The original range was 290 km, now extended to 350–400 km, with future variants targeting 800 km and hypersonic speeds (Mach 5).
      • It offers high accuracy, extended seeker range, and 9 times more kinetic energy than subsonic missiles.
      • It operates in all weather conditions, day or night, and strikes both land and sea targets with precision.

    Anatomy of the BrahMos Missile:

    • BrahMos is a two-stage missile with advanced propulsion and stealth capabilities.
    • The first stage is a solid-propellant booster that accelerates the missile to supersonic speed.
    • The second stage uses a liquid-fuelled ramjet engine to sustain high-speed cruise up to Mach 3.
    • The ramjet is an air-breathing engine that combines liquid fuel with incoming air for efficient thrust.
    • It features stealth technologies, such as low radar cross-section and special materials.
    • The missile can cruise at up to 15 km altitude and descend to 10 metres in the terminal phase for pinpoint accuracy.
    • It supports multiple launch platforms, including mobile launchers, naval ships, Sukhoi-30 MKI aircraft, and submarines.

    Key Weapons and Systems used by India in Operation SINDOOR:

    Type Name Features & Role in Operation SINDOOR
    Air-Launched Missile SCALP (Storm Shadow) Long-range missile launched from Rafale jets; used for deep strikes on terror camps with minimal collateral damage.
    Precision-Guided Bomb HAMMER Modular weapon with 15–70 km range; delivered from aircraft to hit mid-range targets with high accuracy.
    Surface-to-Air Missile Akash Indigenous system that can engage multiple aerial targets simultaneously; intercepted enemy drones and missiles.
    Air Defence System SAMAR Rapid-response missile system for low-flying threats like UAVs and drones; bolstered India’s layered air defence.
    Anti-Drone System D-4 (Detect, Deter, Destroy) Uses radar, jammers, and laser weapons to disable or destroy hostile drones and UCAVs.
    Loitering Munition SkyStriker Kamikaze drone that hovers over targets before striking; used for precision attacks on enemy assets.
    Satellite Systems Cartosat, RISAT, EOS Series Provided real-time surveillance and intelligence for target tracking and mission planning.
    Navigation System NavIC India’s satellite-based navigation system; enabled sub-metre precision for missile and drone targeting.
    Anti-Aircraft Gun Upgraded L-70 (Bofors) Equipped with radar and auto-tracking; used to shoot down low-flying drones in conflict zones.

     

    [UPSC 2023] Consider the following statements:

    1. Ballistic missiles are jet-propelled at subsonic speeds throughout their fights, while cruise missiles are rocket-powered only in the initial phase of flight.

    2. Agni-V is a medium-range supersonic cruise missile, while BrahMos is a solid-fuelled intercontinental ballistic missile.

    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

     

  • World’s Longest Banana Infructescence Found in Andaman

    World’s Longest Banana Infructescence Found in Andaman

    Why in the News?

    A species of wild banana, Musa indandamanensis, endemic to the Andaman and Nicobar Islands, has set a world record with an infructescence (fruit bunch axis) measuring 4.2 metres — the longest ever recorded among banana species globally.

    About the Musa indandamanensis:

    • Musa indandamanensis is a wild banana species that is endemic to the Andaman and Nicobar Islands.
    • It was first discovered in 2012 near the Krishna Nala reserve forest in Little Andaman and officially described in 2014.
    • The species was later rediscovered in Campbell Bay, located in the Nicobar Islands.
    • The discovery was led by Dr. Lal Ji Singh, Head of the Botanical Survey of India’s Andaman and Nicobar Regional Centre.
    • Due to its limited natural range and habitat vulnerability, it is listed as Critically Endangered by IUCN.

    Notable Features:

    • The species holds the world record for the longest banana infructescence, measuring 4.2 metres.
    • The plant typically reaches a height of about 11 metres, with stem girth varying by location: under 100 cm in Little Andaman and around 110 cm in Campbell Bay.
    • It bears golden yellow to orange fruits, which ripen into a golden-orange pulp containing many irregular-shaped seeds.
    • The plant thrives in moist tropical forests, typically near waterfalls and streams.
    • It is considered a valuable genetic resource for developing drought-resistant, disease-tolerant, and high-yielding banana varieties.
    • Specimens are showcased in botanical institutions such as the Indian Museum in Kolkata and the Andaman and Nicobar Regional Centre.
    • For ex-situ conservation, saplings have been planted in botanical gardens in Howrah, Prayagraj, and Port Blair.
    [UPSC 2016] Recently, our scientists have discovered a new and distinct species of banana plant which attains a height of about 11 metres and has orange-coloured fruit pulp. In which part of India has it been discovered?

    Options: (a) Andaman Islands* (b) Anaimalai Forests (c) Maikala Hills (d) Tropical rain forests of northeast

     

  • It is time to protect India’s workers from the heat

    Why in the News?

    Millions of informal workers in Indian cities are still suffering the most because Heat Action Plans are poorly designed.

    What are the key gaps in current Heat Action Plans for informal workers?

    • Lack of Specific Focus on Informal Workers: Most Heat Action Plans do not explicitly identify or address the unique needs of informal workers. Eg: NDMA’s 2019 heatwave guidelines mention “outdoor workers” broadly, without specific measures for vendors, construction workers, or waste pickers.
    • Absence of Occupational Safety Protocols: There are no provisions for safe working hours, rest breaks, hydration, or emergency response for heat stress. Eg: State-level HAPs often do not mandate rest periods or shaded areas for those working under the sun, unlike Odisha which mandates halts in outdoor work during peak heat hours.
    • Short-term and Crisis-oriented Planning: Most HAPs are activated only during summer months and lack long-term strategies to tackle recurring heatwaves. Eg: City-level HAPs like those in Delhi focus on public awareness during heat alerts but don’t invest in permanent cooling infrastructure.
    • Inadequate Coordination Between Departments: Ministries and departments (Labour, Urban Affairs, Health) work in silos, leading to disjointed efforts. Eg: Urban development plans rarely consult labour departments, leaving out worker welfare components like cooling shelters at work sites.
    • No Budgetary Provision or Worker Participation: Most HAPs are underfunded and formulated without involving worker collectives or unions. Eg: Unlike Ahmedabad’s more inclusive model that adjusted work hours and created shaded rest areas, many cities fail to allocate funds or consult informal worker groups.

    Why are informal workers most vulnerable to heatwaves?

    • Prolonged Exposure to Outdoor Heat: Informal workers often work in open, unshaded environments without protective infrastructure. Eg: Street vendors and construction workers spend long hours on roads or open sites under direct sunlight, increasing the risk of heatstroke and dehydration.
    • Lack of Social and Health Protection: Most informal workers are not covered under formal health insurance or welfare schemes. Eg: Waste pickers or rickshaw pullers facing heat exhaustion rarely get access to medical care or income support during extreme weather conditions.
    • No Control Over Work Conditions: Informal work lacks regulated hours, rest breaks, or heat safety norms. Eg: Gig workers or daily wage labourers often continue working during peak heat hours to avoid income loss, further risking their health.

    Who should be included in drafting worker-focused HAPs?

    • Informal Worker Collectives and Unions: These groups bring first-hand knowledge of occupational challenges and practical needs. Eg: Street vendor associations can guide the placement of shaded stalls or cooling zones in high-traffic market areas.
    • Local Civil Society and NGOs: They have ground-level experience working with vulnerable communities and can ensure inclusive planning. Eg: NGOs working with waste pickers can help identify priority locations for hydration points and rest shelters.
    • Urban Local Bodies and Municipal Officials: City planners and officials must coordinate resources and integrate worker needs into official frameworks. Eg: Municipal corporations can designate public spaces like bus depots or community halls as cooling centers for workers.

    Where should cooling zones be set up for maximum worker benefit?

    • High-Density Work Areas: Install cooling zones where informal workers are concentrated and exposed to heat. Eg: Labour chowks, construction sites, and industrial zones where daily wage workers gather and work outdoors.
    • Public Transport Hubs and Markets: Busy areas with long waiting times or heavy footfall offer strategic relief points. Eg: Bus stations, metro exits, and wholesale markets where street vendors and rickshaw pullers operate.
    • Slum Clusters and Informal Settlements: Set up community cooling centres where workers live in poorly ventilated, heat-trapping environments. Eg: Urban slums lacking trees or open spaces, where indoor heat stress is high during nights and afternoons.

    How can cities integrate heat resilience into governance and planning? (Way forward)

    • Embed Heat-Safety Norms in Urban Planning Frameworks: Include heat adaptation measures in master plans, building bye-laws, and zoning regulations. Eg: Mandating cool roofs, passive ventilation, and shaded pathways in all new public infrastructure projects.
    • Retrofit Informal Workspaces for Thermal Comfort: Upgrade existing markets, labour hubs, and waste collection zones with heat-resilient designs. Eg: Installing reflective roofing, shade nets, and drinking water stations in street vendor zones.
    • Establish Interdepartmental Coordination and Accountability: Create dedicated roles (like a heat officer) and inter-ministerial task forces for climate and labour. Eg: A city-level heat officer coordinating between health, labour, and urban departments to ensure timely responses during heatwaves.

    Mains PYQ:

    [UPSC 2013] Bring out the causes for the formation of heat islands in the urban habitat of the world.

    Linkage: It is time to protect India’s workers from the heat” discusses the growing crisis of extreme heat in Indian cities and its severe impact on urban informal workers.

  • [pib] Credit Guarantee Scheme for Startups (CGSS)

    Why in the News?

    The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has announced the expansion of the Credit Guarantee Scheme for Startups (CGSS).

    About Credit Guarantee Scheme for Startups (CGSS):

    • The CGSS was launched on October 6, 2022, as part of the Startup India Action Plan.
    • The scheme is designed to provide collateral-free credit to eligible startups through recognized financial institutions.
    • It offers credit guarantee cover for loans extended by Scheduled Commercial Banks, All India Financial Institutions (AIFIs), Non-Banking Financial Companies (NBFCs), and SEBI-registered Alternative Investment Funds (AIFs).
    • The guaranteed coverage is available in 2 formats:
      1. Transaction-based (for individual borrowers) and
      2. Umbrella-based (for Venture Debt Funds).
    • The scheme helps startups access funding through instruments such as working capital, term loans, and venture debt.
    • The DPIIT is responsible for the oversight and implementation of the scheme.
    • The scheme is operated by the National Credit Guarantee Trustee Company Limited (NCGTC).
    • A Management Committee (MC) and a Risk Evaluation Committee (REC) have been constituted to supervise and review the operations of the scheme.
    • It aligns with the objective of encouraging innovation, supporting early-stage entrepreneurship, and driving economic self-reliance.

    Key Changes in the Expanded CGSS:

    • Guarantee ceiling increased from â‚č10 crore to â‚č20 crore per borrower.
    • Guarantee cover enhanced to:
      • 85% for loans up to â‚č10 crore.
      • 75% for loans exceeding â‚č10 crore.
    • Annual Guarantee Fee (AGF) reduced from 2% to 1% p.a. for startups in 27 Champion Sectors.
    • The Champion Sectors are identified under the ‘Make in India’ initiative to strengthen domestic manufacturing and services.
    [UPSC 2023] Consider the following statements with reference to India:

    1. According to the ‘Micro, Small and Medium Enterprises Development (MSMED) Act, 2006’, the ‘medium enterprises’ are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore.

    2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.

    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

     

  • [pib] 20th Session of UN Forum on Forests (UNFF20)

    Why in the News?

    India participated in the 20th session of the United Nations Forum on Forests (UNFF20) held at the UN Headquarters, New York, reaffirming its commitment to the United Nations Strategic Plan for Forests (UNSPF) 2017–2030.

    About United Nations Forum on Forests (UNFF):

    • UNFF was established in 2000 by the UN Economic and Social Council (ECOSOC).
    • It aims to promote sustainable forest management and global forest policy coordination.
    • It holds annual sessions at UN Headquarters:
      • Technical discussions in odd years
      • Policy-level dialogues in even years
    • It has universal membership — includes all UN Member States and relevant forest-related agencies.
    • India is a founding member and plays an active role in shaping forest policies.
    • The UN Strategic Plan for Forests (UNSPF) is the guiding framework for achieving global forest goals by 2030.
    • The 19th UNFF Declaration secured high-level political commitment for forest conservation.

    Key Highlights of UNFF20:

    • India reaffirmed its commitment to Voluntary National Contributions (VNCs) under the UNSPF (2017–2030).
    • It reported an increase in forest and tree cover to 25.17% of its geographical area.
    • National efforts included the Aravalli Green Wall, a 7.86% rise in mangrove cover, 1.55 lakh hectares afforested under the Green India Mission, and 1.4 billion seedlings planted under the Ek Ped Maa Ke Naam campaign.
    • India invited countries to join the International Big Cat Alliance (IBCA) for big cat conservation.
    • It urged support for outcomes of the Country-Led Initiative (CLI) on forest fire management held in Dehradun (2023).
    • In a high-level panel, India presented findings on carbon sequestration, water services, biodiversity, and tools like System of Environmental Economic Accounting (SEEA) and Millennium Ecosystem Assessment (MEA).
    • It stressed the need to mainstream ecosystem valuation in forest policy.
    [UPSC 2021] With reference to the ‘New York Declaration on Forests’, which of the following statements are correct?

    1. It was first endorsed at the United Nations Climate Summit in 2014.

    2. It endorses a global timeline to end the loss of forests.

    3. It is a legally binding international declaration.

    4. It is endorsed by governments, big companies, and indigenous communities.

    5. India was one of the signatories at its inception.

    Select the correct answer using the code given below:

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

     

  • Competition Commission issues norms to assess Predatory Pricing

    Why in the News?

    The Competition Commission of India (CCI) has introduced new Cost Regulations 2025 to check if companies are selling below cost to unfairly drive out competitors.

    About Competition Commission of India (CCI):

    • The CCI was established on 14 October 2003 and became fully operational in May 2009.
    • It aims to eliminate anti-competitive practices, prevent abuse of dominant positions, and promote fair competition.
    • It was formed under the Competition Act, 2002, later amended in 2007, replacing the Monopolies and Restrictive Trade Practices Act, 1969 based on Raghavan Committee recommendations.
    • The headquarters is located in Kidwai Nagar (East), New Delhi, and the Commission includes 1 Chairperson and up to 6 Members, all appointed by the Central Government.
    • Members must have at least 15 years of experience in areas such as law, economics, business, finance, or public administration.
    • Jurisdiction of CCI:
      • It is a quasi-judicial statutory body under the Ministry of Corporate Affairs.
      • It has the authority to initiate cases suo motu or respond to public/institutional complaints, and can impose penalties for violations.
      • Its jurisdiction spans all sectors across India, and it is empowered to frame its own regulations under the Act.

    New Cost Definitions under Cost Regulations, 2025:

    • Under the Cost Regulations 2025, Average Variable Cost (AVC) is used to measure cost, calculated by dividing total variable costs by total output.
    • Variable cost excludes fixed costs and overheads and varies with production.
    • Although a sector-specific approach was considered, the CCI adopted a case-by-case evaluation after stakeholder feedback.
    • The new framework is sector-agnostic, allowing flexibility for diverse industries, including the digital economy, and supports better adaptation to market dynamics.
    [UPSC 2020] With reference to Trade-Related Investment Measures (TRIMS), which of the following statements is/are correct?

    1. Quantitative restrictions on imports by foreign investors are prohibited. 2. They apply to investment measures related to trade in both goods and services. 3. They are not concerned with the regulation of foreign investment.

    Select the correct answer using the code given below:

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