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GS Paper: GS3

  • [2nd June 2025] The Hindu Op-ed: Regulating India’s virtual digital assets revolution 

    PYQ Relevance:

    [UPSC 2021] What is Cryptocurrency? How does it affect global society? Has it been affecting Indian society also?

    Linkage: India’s leadership in grassroots crypto adoption and the significant investment by retail investors, indicating its presence and potential impact on Indian society. Understanding this impact is a foundational aspect of the broader discussion on regulating VDAs.

     

    Mentor’s Comment:  The Supreme Court’s recent observation questioning the absence of comprehensive crypto regulation highlights the urgent need for India to replace punitive taxation with structured oversight. Between December 2023 and October 2024, Indian investors traded over ₹2.63 trillion worth of crypto on offshore platforms, causing the country to miss out on substantial tax revenues and governance control. The article emphasizes this contradiction—a rapidly growing industry at the grassroots level and a fragmented, reactionary policy at the top.

    Today’s editorial will talk about the comprehensive crypto regulation. This content would help in GS Paper II ( Governance) and GS Paper III (Science & Technology).

    _

    Let’s learn!

    Why in the News?

    India has kept its top position in grassroots crypto adoption for the second year in a row, according to the 2024 Chainalysis Geography of Crypto report. But this achievement comes at a time when clear regulations are missingand government policies on crypto remain confusing and inconsistent.

    What drives India’s lead in grassroots crypto adoption?

    • High Retail Investor Participation: Indian retail investors have shown strong enthusiasm, investing $6.6 billion into crypto assets (NASSCOM report). Eg: A large number of small-ticket retail trades contribute to India topping Chainalysis’ 2024 grassroots crypto adoption index.
    • Growing Web3 Developer Ecosystem: India hosts one of the fastest-growing Web3 developer communities, driving innovation and ecosystem engagement. Eg: Startups and developers building decentralized apps (dApps) and blockchain solutions across Tier-2 and Tier-3 cities.
    • Youthful Demographic and Digital Penetration: A young, tech-savvy population, high smartphone usage, and digital literacy foster wide crypto experimentation. Eg: College students and freelancers using stablecoins and crypto wallets for micro-transactions and cross-border payments.
    • Lack of Traditional Investment Access and Inflation Hedge: Limited access to formal investment channels and search for inflation-resistant assets prompt people to explore crypto. Eg: Young earners in semi-urban areas using crypto as an alternative to gold or fixed deposits for wealth storage.

    Why did the Supreme Court flag regulatory gaps in 2025?

    • Absence of a Comprehensive Legal Framework: The Court noted the lack of clear and cohesive legislation for Virtual Digital Assets (VDAs), which hampers effective regulation and enforcement. Eg: In May 2025, the Supreme Court remarked, “Banning may be shutting your eyes to ground reality,” highlighting the disconnect between policy and practice.
    • Overreliance on Prohibitive Taxation Instead of Regulation: India imposed heavy taxes (30% capital gains, 1% TDS) as a stop-gap, without establishing regulatory clarity or investor safeguards. Eg: Despite taxation, crypto users shifted to offshore platforms, leading to over ₹60 billion in uncollected TDSand loss of oversight.
    • Risk of Pushing Activity Underground: The absence of regulation combined with enforcement gaps drove users towards non-compliant and unregulated exchanges, increasing systemic risk. Eg: The Court observed that without enabling regulation, users bypassed restrictions via VPNs and mirror sites, undermining regulatory intent.

    Who ensures compliance in India’s crypto ecosystem?

    • Reserve Bank of India (RBI): As the monetary authority, RBI oversees the impact of crypto on financial stability, capital controls, and payment systems. Eg: RBI issued circulars in 2013 and 2018 warning financial institutions against dealing with crypto-related entities.
    • Financial Intelligence Unit-India (FIU-IND): FIU-IND monitors suspicious transactions, enforces anti-money laundering (AML) and counter-terror financing (CFT) norms. Eg: Indian Virtual Asset Service Providers (VASPs) collaborated with FIU-IND to strengthen AML/CFT compliance, gaining positive feedback from FATF.
    • Virtual Asset Service Providers (VASPs): VASPs act as domestic intermediaries ensuring KYC norms, reporting standards, and overall ecosystem transparency. Eg: After the 2024 crypto hack ($230 million loss), Indian VASPs enhanced cybersecurity, created insurance funds, and implemented industry-wide security guidelines.

    Where are most Indian crypto assets traded?

    • Offshore, Non-Compliant Platforms: A significant portion of Indian crypto trading happens on offshore exchanges that do not comply with Indian regulations. Eg: Between July 2022 and December 2023, Indians traded over ₹1.03 trillion worth of VDAs on such platforms.
    • Limited Domestic Exchange Usage: Only about 9% of India’s estimated ₹1.12 trillion worth of crypto assets are held or traded on domestic exchanges. Eg: This limited use reflects investor preference for platforms with broader asset choices or less stringent controls.

    How have Indian Virtual Asset Service Providers (VASPs) improved security and compliance?

    • Strengthened Anti-Money Laundering (AML): Indian VASPs have collaborated closely with the Financial Intelligence Unit-India (FIU-IND) to enhance monitoring and reporting standards. Eg: This cooperation earned positive feedback from the Financial Action Task Force (FATF) for improved compliance.
    • Enhanced Cybersecurity Measures: After the 2024 crypto hack that resulted in a $230 million loss, many Indian exchanges implemented stronger security protocols and real-time risk monitoring. Eg: Exchanges set up dedicated insurance funds to protect users against future thefts.
    • Industry-Wide Standardization and Collaboration: Indian VASPs united to create and enforce common cybersecurity guidelines and best practices across the ecosystem. Eg: This collective effort has improved overall trust and resilience of India’s crypto platforms.

    Way forward: 

    • Formulate a Comprehensive, Risk-Based Regulatory Framework: India must develop clear, future-ready legislation that classifies, governs, and monitors Virtual Digital Assets (VDAs) in alignment with global standards (like FATF, IMF). Eg: A dedicated VDA Regulatory Authority or inclusion under SEBI/RBI oversight can ensure investor protection, AML enforcement, and innovation support.
    • Strengthen Domestic VASP Ecosystem Through Incentives and Integration: Encourage onshore compliance by lowering tax burdens, supporting innovation sandboxes, and integrating VASPs into India’s formal financial ecosystem. Eg: Offering tax rebates or compliance credits to VASPs adopting stringent KYC/CFT and cybersecurity norms can enhance trust and reduce offshore migration.

  • Growing pains: On economic performance, Viksit Bharat

    Why in the News?

    India’s economic data for 2024–25 shows a mixed picture: the economy grew strongly by 7.4% in the last quarter, which was better than expected, but the overall yearly growth dropped to 6.5% — the lowest in four years since the pandemic.

    What led to the higher-than-expected GDP growth in Q4 2024-25?

    • Robust Growth in Construction and Agriculture Sectors: The construction sector returned to double-digit growth, and agriculture performed strongly, both of which are key employment generators. Eg: Infrastructure expansion and favourable harvests boosted rural incomes and demand.
    • Strong Performance of Services Sector: The services sector maintained steady and strong growth, contributing significantly to the GDP rise. Eg: IT, finance, and hospitality services saw sustained recovery post-pandemic.
    • Statistical Boost from Higher Net Taxes: A 12.7% increase in net tax collections inflated the GDP figure, even though underlying economic activity was slower. Eg: Higher indirect tax revenues during the quarter pushed headline growth from ~6.8% to 7.4%.

    Why is 6.5% annual GDP growth seen as inadequate despite being the highest globally?

    • Below the Required Rate for ‘Viksit Bharat 2047’ Vision: To achieve the developed nation goal by 2047, India needs sustained annual growth of around 8% or more. Eg: The Economic Survey states that consistent 8% growth is essential to meet infrastructure, employment, and welfare needs by 2047.
    • Mismatch with India’s Domestic Demands and Aspirations: India’s population growth and development needs demand faster economic expansion, regardless of how the rest of the world is performing. Eg: Even though India outpaces global peers, a 6.5% rate may not create enough jobs or uplift per capita incomes sufficiently.
    • Limited Acceleration Potential Under Stable Growth Phase: While 6.5% reflects stability, it also signals a plateau, with low inflation but no signs of rapid acceleration in the near future. Eg: Chief Economic Adviser V. Anantha Nageswaran indicated India may not see major growth spurts soon, making it harder to catch up with long-term development targets.

    How do net taxes affect the true picture of GDP growth?

    • Artificial Boost to Headline GDP: A significant rise in net taxes (taxes minus subsidies) can inflate GDP figures without a corresponding increase in real economic activity. Eg: In Q4 2024–25, GDP growth was 7.4%, but without the 12.7% surge in net taxes, real growth would have been around 6.8%.
    • Distorts Sector-Wise Contribution Assessment: High net tax contributions may overshadow sluggish performance in core sectors like manufacturing or consumption, giving a misleading impression of overall health. Eg: Despite weak private consumption, GDP looked robust due to the statistical impact of increased tax revenue.

    Is stable growth enough for India’s transition?

    • Stability Reduces Risk but Limits Acceleration: While stable growth ensures low inflation and reduced economic volatility, it may not generate the momentum needed to transform India into a developed economy. Eg: As per the Chief Economic Adviser, India has entered a phase of low inflation and stable growth, but such stability might cap faster economic acceleration.
    • Inadequate for Meeting Rising Aspirations: India’s growing population and developmental needs require higher employment, infrastructure, and productivity, which stable but slow growth may not adequately support. Eg: A 6.5% GDP growth may not create enough jobs or income levels to match the goals of schemes like ‘Viksit Bharat 2047’.
    • Missed Opportunity in a Global Slowdown: In a “growth-scarce” global environment, India has the chance to become a key economic engine. Relying on stable growth without pushing for higher gains may lead to missed strategic opportunities. Eg: Despite outperforming other major economies, India’s slow capital investment pace until late FY25 indicates underutilization of its potential.

    Way forward: 

    • Accelerate Structural Reforms and Investments: India must boost productivity by investing in infrastructure, manufacturing, skilling, and digitalisation, while simplifying regulations to attract both domestic and foreign investment. Eg: Fast-tracking initiatives like Gati Shakti and PLI schemes can unlock higher economic momentum.
    • Enhance Domestic Demand and Job Creation: Policies should focus on reviving rural consumption, supporting MSMEs, and expanding labour-intensive sectors to ensure inclusive growth. Eg: Increasing public expenditure on health, education, and affordable housing can stimulate demand and generate employment.

    Mains PYQ:

    [UPSC 2024] Examine the pattern and trend of public expenditure on social services in the post-reforms period in India. To what extent this has been in consonance with achieving the objective of inclusive growth?

    Linkage: Inclusive growth is a core objective for a “transitioning economy” like India aiming for goals such as ‘Viksit Bharat’, and challenges in achieving it represent “growing pains”.

  • How the technology industry is trying to meet its climate goals

    Why in the News?

    A groundbreaking study by Microsoft and WSP Global, published in Nature, shows major progress in making data centres more environmentally friendly.

    What are Data centres? 

    Data centres are specialized facilities used to store, process, and manage data for organizations. They house large numbers of computer servers, network equipment, storage systems, and cooling systems, and form the backbone of the digital infrastructure that powers the internet, cloud computing, and various IT services.

    What are the environmental benefits of using cold plates and immersion cooling in data centres?

    • Lower Greenhouse Gas Emissions: These methods reduce emissions by 15–21% compared to traditional air cooling. Eg: Microsoft’s study showed that using immersion cooling in their data centres significantly reduced carbon emissions during peak operations.
    • Reduced Energy Consumption: They use 15–20% less energy, as liquid coolants transfer heat more efficiently than air. Eg: Alibaba’s deployment of cold plate cooling led to lower power usage effectiveness (PUE), cutting energy bills and environmental impact.
    • Significant Water Conservation: Water usage drops by 31–52%, helping conserve freshwater resources Eg: In water-stressed regions like Arizona, using cold plate cooling helps tech firms operate data centres without heavy reliance on water-based air conditioning systems.

    How does life cycle assessment aid in evaluating cooling technologies?

    • Measures Full Environmental Impact (Cradle to Grave): LCA evaluates emissions, energy use, and water consumption across a product’s entire lifecycle — from manufacturing to disposal. Eg: The Microsoft-WSP study assessed cold plates and immersion cooling from production to end-of-life, revealing their overall environmental benefits.
    • Identifies Trade-offs Between Technologies: LCA highlights sustainability trade-offs, helping compare the true impact of different cooling methods. Eg: It showed that while immersion cooling reduces emissions, the type of coolant used may raise separate ecological concerns.
    • Supports Informed Decision-Making for Climate Goals: LCA provides data-driven insights for industry and policymakers to adopt greener technologies that align with emissions targets. Eg: The ICT sector can use LCA results to choose cooling systems that help cut emissions by 42% by 2030, as per global climate goals.

    Why is renewable energy essential for sustainable data centre cooling?

    • Drastically Reduces Carbon Emissions: Using renewable energy like solar or wind can cut emissions by 85–90%, regardless of the cooling technology used. Eg: A data centre powered by wind energy in Sweden showed near-zero emissions even with traditional air cooling.
    • Enhances the Impact of Green Cooling Technologies: When combined with cold plates or immersion cooling, renewables amplify environmental benefits by further lowering energy and water use. Eg: The Microsoft-WSP study found that with 100% renewables, water savings could increase up to 50%.
    • Ensures True Sustainability Across the System: Cooling innovations alone aren’t enough if the electricity source is polluting; renewables make the entire system eco-friendly. Eg: A server cooled efficiently but powered by coal-based electricity still carries a high carbon footprint.

    In what ways are liquid-cooling methods superior to air cooling?

    • Higher Cooling Efficiency and Performance: Liquid-cooling systems like cold plates and immersion cooling transfer heat more efficiently than air, reducing the risk of overheating and improving hardware performance. Eg: In Microsoft’s data centres, cold plate cooling reduced component temperatures significantly compared to air-cooled setups, boosting system reliability.
    • Lower Energy and Water Consumption: Liquid methods use 15–20% less energy and up to 52% less water, making them more sustainable and cost-effective in the long run. Eg: Alibaba’s immersion-cooled servers showed reduced electricity bills and water usage in high-demand operations.

    To what extent can cooling innovations help meet ICT emission targets by 2030?

    • Significant Reduction in Greenhouse Gas Emissions: Advanced cooling technologies like cold plates and immersion cooling can reduce ICT data centre emissions by 15–21%, directly contributing to the 42% emission cut target set for 2030 (from 2015 levels). Eg: Microsoft’s deployment of cold plate systems showed measurable emissions drops in large-scale data operations.
    • Supports Scalable, Energy-Efficient Data Centre Growth: As demand for cloud services increases, liquid cooling enables high-performance computing without a corresponding rise in energy and carbon footprint, helping the sector scale sustainably. Eg: Alibaba’s use of immersion cooling enabled expansion of AI and cloud infrastructure while keeping energy use in check.

    Way forward: 

    • Promote Policy Incentives for Green Cooling Technologies: Governments should provide tax breaks, capital subsidies, and faster approvals for data centres that adopt liquid-cooling systems and renewable energy integration. Eg: Extending schemes like India’s PLI (Production-Linked Incentive) to green tech in data centres can fast-track low-emission infrastructure adoption.
    • Mandate Life Cycle Assessments and Emission Reporting: Introduce mandatory Life Cycle Assessments (LCA) and carbon disclosure norms for large-scale data centres to encourage transparent, science-based decisions. Eg: Requiring firms to report environmental impact from cooling systems can guide smarter industry shifts aligned with ICT sector’s 2030 emission targets.

    Mains PYQ:

    [UPSC 2022] How will India achieve the target of 50% of its installed capacity from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective? Explain.

    Linkage: Switching to renewable energy is a more effective way for the tech industry to run energy-hungry data centers in a cleaner, more sustainable way. This helps them meet climate goals and support national environmental targets.

  • In news: Valley of Flowers National Park

    Why in the News?

    The Valley of Flowers in Uttarakhand opened to tourists on June 1 for its annual four-month window.

    Valley of Flowers National Park

    About the Valley of Flowers National Park:

    • Location: The park is in Chamoli district, Uttarakhand, within the Nanda Devi Biosphere Reserve.
    • Altitude and Size: It covers 87 square kilometres and lies at 3,352 to 3,658 metres above sea level.
    • Protected Status: Declared a National Park in 1980 and became a UNESCO World Heritage Site in 1988.
    • Natural Features: Known for its colourful meadows, dense forests, waterfalls, and snow-capped mountains.
    • Mountain Range: Lies in the transition zone between the Zanskar and Great Himalaya ranges.
    • River System: The Pushpawati River, from the Tipra Glacier, flows through the valley into the Alaknanda River.
    • Ecosystem: It is part of the Nanda Devi Biosphere Reserve, which was named a UNESCO Man and Biosphere (MAB) Reserve in 2004.

    Flora and Fauna of the Valley:

    • Plant Diversity: The valley has over 520–650 species of flowers like orchids, primulas, poppies, daisies, and the sacred brahmakamal.
    • Flora by Altitude Zones:
      1. Sub-alpine (3,200–3,500 m): Trees like maple, fir, birch, and rhododendron.
      2. Lower alpine (3,500–3,700 m): Shrubs like junipers, willows, and geraniums.
      3. Higher alpine (above 3,700 m): Mosses, lichens, and the blue Himalayan poppy.
    • Animal Life: Includes rare species like the Asiatic black bear, snow leopard, musk deer, brown bear, red fox, and the Himalayan monal bird.
    [UPSC 2019] Which one of the following National Parks lies completely in the temperate alpine zone?

    Options: (a) Manas National Park (b) Namdapha National Park (c) Neora Valley National Park (d) Valley of Flowers National Park*

     

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

    Why in the News?

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

    What is a Tiger Safari?

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

    About Jharkhand’s Tiger Safari Project:

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

    Back2Basics: Palamu Tiger Reserve

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

     

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

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

     

  • Steep decline: On the Index of Industrial Production

    Why in the News?

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

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

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

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

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

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

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

    Who should drive capital expenditure to revive demand?

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

    Way forward: 

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

    Mains PYQ:

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

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

  • JNCASR develops Fast-Charging Sodium-Ion Battery

    Why in the News?

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

    About Sodium-Ion Battery and Its Working:

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

    Advantages over Lithium-Ion Batteries:

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

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

    How many of the above usually make up battery cathodes?

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

     

  • Quality Council of India (QCI)

    Why in the News?

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

    About Quality Council of India (QCI):

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

    Structure, Divisions, and Key Functions:

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

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

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

    Which of the above statements is/are correct?

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

     

  • 17th Edition of Exercise Nomadic Elephant

    Why in the News?

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

    About Exercise NOMADIC ELEPHANT:

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

    Objectives and Focus:

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

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

     

  • Govt. releases Provisional GDP Estimates

    Why in the News?

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

    How is Economic Growth measured?

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

    Why are these Estimates called “Provisional”?

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

    Key Takeaways from FY25 Data

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

     

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

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

    Which of the statements given above is/are correct?

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