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GS Paper: GS3

  • Reimei: World’s 1st Hybrid Quantum Supercomputer goes Online

    Why in the News?

    Japan has officially launched the world’s first hybrid quantum supercomputer, integrating a 20-qubit quantum processor, Reimei, into Fugaku, the world’s sixth-fastest supercomputer.

    About Reimei

    • Reimei is a 20-qubit trapped-ion quantum computer developed by Quantinuum and integrated into Fugaku, the world’s sixth-fastest supercomputer, at Riken, Japan.
    • It is the first fully operational hybrid quantum supercomputer, combining quantum and classical computing for advanced problem-solving.
    • Key Features:
      • Trapped-Ion Qubits: Unlike superconducting qubits, Reimei uses trapped-ion technology, offering higher stability, longer coherence times, and stronger qubit connectivity.
      • Hybrid Integration: Works alongside Fugaku to solve complex calculations faster than classical supercomputers.
      • Ion Shuttling: Enables physical movement of qubits, allowing for more complex quantum algorithms.
      • Error Correction: Uses logical qubits, reducing error rates 800 times lower than standard qubits.
    • Applications:
      • Physics & Chemistry Research: Used for molecular simulations, material science, and high-energy physics.
      • Quantum Cryptography & AI: Enhances cybersecurity and artificial intelligence models.
      • Optimization & Machine Learning:  Solves large-scale optimization problems.
    • Significance:
      • Bridges classical and quantum computing, serving as a transition to fully scalable quantum systems.
      • Paves the way for real-world quantum applications, accelerating scientific and technological advancements.

    PYQ:

    [2022] Which one of the following is the context in which the term “qubit” is mentioned?

    (a) Cloud Services
    (b) Quantum Computing
    (c) Visible Light Communication Technologies
    (d) Wireless Communication Technologies

     

  • [12th February 2025] The Hindu Op-ed: A role for India in South-South climate cooperation

    PYQ Relevance:

    Q) Clean energy is the order of the day.’ Describe briefly India’s changing policy towards climate change in various international fora in the context of geopolitics. (UPSC CSE 2018)

     

    Mentor’s Comment: UPSC mains have always focused on Climate Change (2017), and COP 26 (2021).

    In the Climate Change Performance Index (CCPI) 2025, India ranks among the top 10 climate performers globally, underscoring its commitment to climate action. India has been recognized for its significant role in South-South climate cooperation, reflecting its leadership in fostering collaboration among developing nations to address climate change. 

     

    Today’s editorial highlights how South-South cooperation can help achieve climate goals, promote sustainable development, and empower developing countries to meet their climate targets, drawing attention to India’s strategic opportunities and responsibilities in this area. This content would help in substantiation of answers in Mains GS Paper III (Environment and Biodiversity).

    _

    Let’s learn!

    Why in the News?

    India’s potential role in fostering climate cooperation between developing nations through South-South cooperation in the context of the Paris Agreement is needed for the  global solutions to tackle climate change.

    How does Article 6 of the Paris Agreement benefit India in achieving its climate goals?

    • Carbon Markets: Under Article 6.2, countries can trade carbon credits to meet their emissions reduction targets. India can participate in these carbon markets, generating revenue by selling surplus carbon credits earned through emission reductions in sectors like renewable energy, energy efficiency, and afforestation.
        • By engaging in carbon trading, India can attract foreign investments from companies in developed countries looking to offset their emissions. This can provide funding for clean energy projects, supporting India’s transition to a low-carbon economy.
    • Cooperative Approaches: Article 6.4 establishes a global carbon market mechanism, similar to the Clean Development Mechanism (CDM) under the Kyoto Protocol, but with improvements. India could utilize this mechanism to undertake joint projects with other countries that help reduce emissions while fostering sustainable development.
      • Through cooperative approaches, India can access advanced technologies, practices, and expertise from other countries, enabling its industries to adopt cleaner technologies and improve energy efficiency, contributing to its climate and development goals.
    • Non-Market Approaches:
      • Article 6.8 promotes non-market mechanisms, which focus on facilitating actions like capacity-building, finance, and knowledge sharing to address climate change. This can help India strengthen its national capabilities to implement climate policies and adapt to the impacts of climate change, particularly in vulnerable regions.
      • India, being highly vulnerable to the effects of climate change, can benefit from non-market approaches to enhance its adaptive capacities and resilience, addressing critical sectors like agriculture, water resources, and infrastructure.
    • Flexibility in Meeting Targets:
      • The flexibility provided by Article 6 allows India to find the most cost-effective solutions for emission reductions, especially in sectors where technology deployment is expensive or challenging. It provides an opportunity to meet its Nationally Determined Contributions (NDCs) in a way that balances economic growth with environmental sustainability.

    What are the potential challenges India faces in utilizing ITMOs and engaging in international climate finance?

    • Monitoring, Reporting, and Verification (MRV) Systems: India’s current MRV systems for tracking emissions reductions may not meet the rigorous standards required for ITMOs, which are crucial for ensuring transparency and accountability in carbon markets.
      • Inadequate MRV mechanisms could hinder India’s ability to accurately quantify and report emission reductions, limiting its participation in carbon trading and climate finance.
    • Accessing Climate Finance: Despite being a major developing country, India faces challenges in accessing sufficient and predictable climate finance from international sources, as the global financing mechanisms often favor smaller or more vulnerable nations.
      • Limited access to finance can slow down India’s ability to implement large-scale climate projects, especially in sectors like renewable energy, adaptation, and infrastructure development.
    • Ensuring Environmental Integrity: While ITMOs enable carbon trading, there’s a risk of “low-quality” credits or “double counting” (where emissions reductions are claimed by multiple parties), which could undermine the credibility and environmental integrity of the system.
      • If India is not careful in ensuring robust methodologies for generating and trading ITMOs, it might face challenges in maintaining the credibility of its climate commitments, affecting its international reputation.
    • Domestic Policy and Institutional Coordination: India’s domestic policies on climate change may not be fully aligned with the requirements of international climate finance mechanisms or ITMO systems. There is also a need for better coordination among various ministries and stakeholders to implement and track climate action effectively.
      • Misalignment between international climate goals and domestic policies could result in inefficiencies and missed opportunities to access ITMOs and climate finance.

    What are the opportunities for India under South-South cooperation via Article 6.2?

    • Carbon Trading with Fellow Developing Countries: India can collaborate with neighbouring countries like Sri Lanka, Bangladesh, and others in the South Asian region to work together to reduce emissions through renewable energy, afforestation, or energy efficiency programs.
      • India could sell any surplus carbon credits generated through its own emission reduction efforts to other developing countries that need help meeting their own NDCs (Nationally Determined Contributions). This allows India to both achieve its climate goals and potentially generate revenue.
    • Technology and Knowledge Transfer: India has already made significant progress in solar energy and can offer valuable lessons and technologies to fellow developing countries.
      • India can also help other countries develop adaptation strategies for climate change impacts, such as water management techniques, disaster preparedness, and climate-resilient infrastructure.
      • In return, India could receive new technologies, methods, and knowledge to enhance its own climate resilience.
    • Joint Ventures for Clean Energy Projects: India can partner with other developing countries to co-develop large-scale renewable energy projects, such as solar, wind, or hydropower. Joint initiatives could be supported by carbon markets, with emission reductions which could attract investments, expertise, and improve access to clean energy technologies.
      • By collaborating with other developing countries, India can contribute to the development of affordable, scalable solutions that are tailored to the specific needs of developing nations.
      • These solutions could be implemented locally, reducing emissions and improving energy access.
    • Strengthening Capacity and Institutional Frameworks: South-South cooperation can help India and other developing countries to assist in establishing frameworks for monitoring, reporting, and verifying (MRV) emissions reductions, benefiting both India and its partner countries.
      • India can help south countries in refining its strategies and implementing the best practices that suit their own development contexts.
    • Leveraging Climate Finance: India, by engaging in South-South cooperation, could also have access to international financial instruments that make climate action more affordable.
      • This would be particularly beneficial in sectors where India faces challenges in scaling up clean technologies, like electric vehicles, or in regions like rural areas that require adaptation interventions.
  • Struggling with poor cyber security

    Why in the News?

    Kaveri 2.0, a web portal launched in 2023 to make property registrations in Karnataka easier was recently hit by a DDoS attack carried out using AI-powered bots.

    What is a DDoS attack? 

    • A Distributed Denial of Service (DDoS) attack is a type of cyberattack where multiple computers or bots flood a website or online service with excessive traffic, overwhelming its servers and causing it to slow down or crash.

    What are the key issues with Karnataka’s response to cyber attacks, specifically the DDoS attack on Kaveri 2.0?

    • Lack of Proactive Cybersecurity Measures: Despite previous cyber incidents like the 2017 WannaCry ransomware attack and the 2019 e-procurement portal hack, the State failed to implement robust preventive measures. The DDoS attack on Kaveri 2.0 in December 2024 – February 2025 exposed the absence of real-time threat monitoring systems.
    • Poor Coordination Between Departments: The e-Governance Department did not involve the State cyber crime police until February 7, 2025, despite weeks of disruption. Resistance within departments to share cybersecurity concerns with law enforcement delayed incident response, worsening the crisis.
    • Lack of a Dedicated Cybersecurity Infrastructure: Karnataka lacks a Cyber Security Operation Centre like Maharashtra and Odisha. A ₹20 crore cybersecurity centre, proposed in February 2023, was scrapped after the new government took over, leaving critical digital infrastructure vulnerable.
    • Government Response and Security Measures: While the government has initiated a police probe and FIR registration under the Information Technology Act, and the Kaveri 2.0 application has been restored with enhanced security measures,
      • Karnataka launched a cyber security policy in 2024 to combat rising cybercrime, focusing on awareness, skill building, and industry promotion.

    How have past attacks influenced the current state of cyber security?

    • Failure to Implement Robust Cybersecurity Measures: Despite the 2017 WannaCry ransomware attack on the Karnataka State Data Centre and the 2019 e-Procurement portal hack (₹11.5 crore stolen), the state did not establish strong preventive mechanisms.
      • The lack of a dedicated Cyber Security Operation Centre resulted in inadequate monitoring and delayed responses to threats like the recent DDoS attack on Kaveri 2.0 (2024-25).
    • Persistent Coordination Gaps Between Departments: Earlier attacks, such as the 2022 cyber attack on NIMHANS, highlighted poor inter-departmental coordination, yet similar gaps persisted during the Kaveri 2.0 DDoS attack.
      • The e-Governance Department handled the crisis alone without informing the cyber crime police, delaying investigative action until February 7, 2025.
    • Neglect of Cybersecurity Infrastructure Development: A ₹20 crore Cyber Security Operation Centre, proposed in February 2023, was dropped in the May 2023 budget revision after a change in government.
      • Unlike Maharashtra and Odisha, which have dedicated cyber security setups, Karnataka still lacks a real-time threat detection system, leaving it vulnerable to repeated cyber attacks.

    Why has the coordination between the e-Governance Department and the State Police been ineffective during cyber incidents?

    • Lack of a Unified Cybersecurity Framework: Karnataka’s Cyber Security Committee (2023) is led by bureaucrats without police representation, unlike national-level bodies like I4C (Indian Cyber Crime Coordination Centre) and NCIIPC (National Critical Information Infrastructure Protection Centre).
      • This results in fragmented decision-making, where cybersecurity response remains within the e-Governance Department, sidelining law enforcement agencies.
    • Delayed Involvement of the Cyber Crime Police: In the Kaveri 2.0 DDoS attack (2024-25), the e-Governance Department did not inform the State cyber crime police until February 7, 2025—long after the attack began in December 2024.
      • Earlier incidents like the 2019 e-Procurement portal hack and 2022 NIMHANS cyber attack also saw delayed police involvement, allowing attackers more time to operate.
    • Departmental Hesitation to Engage Law Enforcement: Sources indicate a reluctance within the e-Governance Department to involve the police, possibly due to bureaucratic hurdles or fears of administrative scrutiny.
      • This lack of trust and procedural clarity has led to independent firefighting efforts rather than a coordinated response between technical teams and law enforcement.

    Why is it crucial for the state to establish a Cyber Security Operation Centre similar to the national model?

    • Real-Time Threat Detection and Response: The DDoS attack on Kaveri 2.0 (2024-25) went undetected for weeks, causing major disruptions in property registrations. A Cyber Security Operation Centre (CSOC) would enable 24/7 monitoring and early detection of cyber threats.
      • National agencies like I4C (Indian Cyber Crime Coordination Centre) and NCIIPC (National Critical Information Infrastructure Protection Centre) use AI-driven analytics and real-time threat intelligence to mitigate cyber risks, a model Karnataka must adopt.
    • Coordinated and Rapid Incident Response: Karnataka’s e-Governance Department handled the Kaveri 2.0 attack alone, only involving cyber crime police weeks later, delaying mitigation efforts.
      • A CSOC would centralize cybersecurity efforts, ensuring immediate coordination between technical experts, government departments, and law enforcement agencies to prevent prolonged disruptions.

    Way forward: 

    • Establish a Cyber Security Operation Centre (CSOC): Revive the ₹20 crore CSOC proposal with real-time threat monitoring, AI-driven analytics, and centralized coordination between government agencies and law enforcement.
      • Implement automated response mechanisms to detect and neutralize cyber threats before they escalate.
    • Strengthen Inter-Departmental Coordination and Cybersecurity Framework: Mandate immediate police involvement in cyber incidents and integrate law enforcement into cybersecurity governance structures like the Cyber Security Committee.
      • Conduct joint cybersecurity drills between the e-Governance Department, State Police, and IT experts to improve incident response efficiency.

    Mains PYQ:

    Q What are the different elements of cyber security? Keeping in view the challenges in cyber security, examine the extent to which India has successfully developed a comprehensive National Cyber Security Strategy. (UPSC IAS/2022)

  • [pib] Nationwide Mass Drug Administration (MDA) Campaign for Lymphatic Filariasis (LF) Elimination 

    Why in the News?

    Union Minister for Health and Family Welfare has launched the Annual Nationwide Mass Drug Administration (MDA) Campaign to eliminate Lymphatic Filariasis (LF).

    About Lymphatic Filariasis (LF):

    • Lymphatic Filariasis (LF), or “Hathi Paon”, is a mosquito-borne parasitic disease caused by Wuchereria bancrofti, Brugia malayi, and Brugia timori.
    • It affects the lymphatic system, leading to swelling of limbs (lymphoedema) and scrotal swelling (hydrocele), causing permanent disability.
    • LF spreads through repeated mosquito bites, making it a major public health challenge in tropical regions, including India.
    • India aims to eliminate LF by 2027, ahead of the 2030 Sustainable Development Goal (SDG) target.

    What is Mass Drug Administration (MDA)?

    • MDA is a large-scale public health campaign where anti-filarial medicines are administered to all eligible individuals in endemic areas to stop LF transmission.
    • Medication Regimens:
      • Double Drug Therapy (DA): Diethylcarbamazine Citrate (DEC) + Albendazole
      • Triple Drug Therapy (IDA): Ivermectin + DEC + Albendazole
    • Key Features of MDA
      • Door-to-door supervised drug administration ensures high coverage.
      • Drugs are safe, free, and given twice a year in targeted districts.
      • MDA is crucial for eliminating LF, as it reduces parasite transmission and protects millions from disability.
    • EXCEPTIONS: Children below 2 years, pregnant women, and seriously ill individuals.

    PYQ:

    [2017] Consider the following statements:

    1. In tropical regions, Zika virus disease is transmitted by the same mosquito that transmits dengue.

    2. Sexual transmission of Zika virus disease is possible.

    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

     

  • [pib] Exercise CYCLONE-III

    Why in the News?

    The 3rd edition of Joint Special Forces Exercise CYCLONE commenced at Mahajan Field Firing Ranges in Rajasthan.

    Note: India and the UAE held the ‘Desert Cyclone 2024’ joint military exercise in Rajasthan in January 2024. One must not get confused with this.

    About Exercise CYCLONE-III

    • It is the 3rd edition of the Joint Special Forces Exercise between India and Egypt, aimed at enhancing interoperability, joint tactical operations, and counter-terrorism capabilities.
    • The exercise is conducted at Mahajan Field Firing Ranges in Rajasthan from 10th to 23rd February 2025.
    • CYCLONE is an annual exercise, held alternately in India and Egypt.
      • The previous edition (CYCLONE-II) was conducted in Egypt in January 2024.
    • The exercise focuses on high-intensity special forces training in desert and semi-desert terrains.

    Features and Significance:

    • This exercise involves 25 personnel from each side, focusing on counterterrorism, CQB, hostage rescue, and heliborne operations in desert terrain.
    • The 48-hour final validation exercise tests combat strategies in semi-desert conditions, while an Indian defense technology showcase strengthens military ties.
    • The exercise enhances India-Egypt defense cooperation, improves joint counter-terrorism capabilities, and builds readiness for future operations.
    • It also boosts India’s strategic outreach in the Middle East and North Africa (MENA) region, reinforcing defense collaborations and regional security.
  • India introduces new HS code for GI-recognised Rice Varieties

    Why in the News?

    India has introduced a Harmonised System (HS) code for geographical indication (GI) recognised rice exports under an amendment to the Customs Tariff Act, 1975 announced by Finance Minister Nirmala Sitharaman in the 2025-26 Union Budget on February 1, 2025.

    About Harmonised System (HS) Code

    • HS Code is an internationally recognized classification system for traded goods, developed by the World Customs Organization (WCO).
    • It is used to standardize the identification of products in global trade, ensuring uniformity in customs procedures, tariffs, and trade policies.
    • The HS Code is a six-digit numerical code, categorized as follows:
      • First two digits: Represent the chapter of goods (e.g., “10” for cereals).
      • Next two digits: Indicate the heading (e.g., “06” for rice).
      • Last two digits: Define the subheading (e.g., “30” for semi-milled or wholly milled rice).
    • Countries can extend the HS Code beyond six digits to accommodate specific national requirements (e.g., India uses an 8-digit system).

    Impact of HS Code on GI Rice Exports:

    Trade experts believe that the introduction of an HS code will:

    • Facilitate GI rice exports, even when general rice exports are restricted.
    • Ensure better market access for specialty rice varieties in global markets.
    • Differentiate GI-tagged rice from conventional rice exports to prevent mislabelling.

    About the World Customs Organization (WCO):

    • The WCO is an intergovernmental organization responsible for overseeing and standardizing global customs regulations.
    • It was established in 1952 as the Customs Co-operation Council (CCC) and later renamed the WCO in 1994.
    • Key Functions of the WCO:
      • Develops and maintains the HS Code, used by over 200 countries and territories.
      • Regulates customs procedures, trade facilitation, and enforcement of trade laws.
      • Supports the fight against illegal trade, smuggling, and counterfeit goods.
    • The organization works closely with the World Trade Organization (WTO) and United Nations (UN) to promote global trade efficiency.
    • India is a member of the WCO and follows its HS classification system for trade regulations.
    • The WCO’s Revised Kyoto Convention (RKC) serves as a blueprint for India’s customs modernization efforts.

    PYQ:

    [2017] Consider the following statements:

    1. India has ratified the Trade Facilitation Agreement (TFA) of WTO.
    2. TFA is a part of WTO’s Bali Ministerial Package of 2013.
    3. TFA came into force in January 2016.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 1 and 3 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

     

  • What has the Budget offered scientists?

    Why in the News?

    The Union Budget highlights science, technology, and innovation (STI) as important drivers of the country’s progress, supporting CSIR’s goal of making India more self-reliant and globally competitive.

    How will the 2025 budget impact scientific research funding?

    • Increased Funding for R&D: The Ministry of Science and Technology’s allocation sees a major boost due to a Rs 20,000 crore allocation for the R&D fund, increasing the total allocation from Rs 8,029 crore to Rs 28,508 crore.
    • Support for Deeptech Startups: An additional Rs 10,000 crore will be allocated to the Small Industries Development Bank of India Fund for Startups, aimed at enhancing the “deep tech ecosystem,” particularly for startups focusing on AI, biotech, and space technology.
    • Focus on Mission-Mode Projects: Funding is heavily directed towards specific mission-mode programs such as nuclear energy, AI, and the Jal Jeevan Mission, potentially at the expense of curiosity-driven research.
    • CSIR’s Role in National Missions: The budget aligns CSIR’s various missions (Aroma, Floriculture, Millets, Cotton, Green Hydrogen, etc.) with national initiatives, emphasizing value-added farming, self-reliance, and sustainable development.
    • Concerns Regarding Basic Science and Education: Concerns exist regarding reduced funding for institutions like IISc and IISERs, a lower percentage increase in funding for Central Universities compared to IITs, and the overall low allocation for education as a percentage of GDP.

    What specific allocations are being made for science and technology in the 2025 budget?

    • Ministry of Electronics and Information Technology (MeitY) Funding Increase: The budget for MeitY has been increased by 48%, totalling over ₹26,000 crores. This substantial boost is directed towards initiatives such as the IndiaAI Mission and expanded Production-Linked Incentive (PLI) schemes for semiconductors, large-scale electronics, and IT hardware.
    • IndiaAI Mission: The IndiaAI Mission has received an allocation of ₹2,000 crore for FY25, marking an almost 11-fold increase from the previous year’s revised estimate of ₹173 crore. This funding aims to enhance artificial intelligence research and development across various sectors.
    • Semiconductor and Electronics Manufacturing Support: Allocations for the modified scheme to establish compound semiconductors, silicon photonics, sensor fabs, and semiconductor assembly and testing facilities have risen from ₹2,500 crore to ₹3,900 crore. Additionally, the scheme for setting up semiconductor fabs has seen an increase from ₹1,200 crore to ₹2,499.96 crore.
    • Research and Development Fund: A dedicated fund of ₹20,000 crore has been established to promote research, development, and innovation, particularly supporting private-sector-led initiatives. This fund underscores the government’s commitment to advancing technological progress and fostering innovation.
    • Research Fellowships and Deep Tech Support: The government plans to offer 10,000 research fellowships over the next five years under the Prime Minister’s Research Fellowship scheme, focusing on advancing research in technology at premier institutions like IITs and IISc.

    Are there any new initiatives for scientific research in the 2025 budget?

    • Increased Focus on Health Research: There’s a greater emphasis on health research and biomedical devices, driven by concerns identified in the Economic Survey regarding the harms of ultra-processed foods. This suggests new initiatives and funding to address these health challenges through scientific research.
    • Deeptech Startup Boost: The expansion of the SIDBI Fund for Startups with an additional Rs 10,000 crore specifically targets deeptech startups in AI, biotech, and space technology. This indicates a new initiative to foster innovation and entrepreneurship in these advanced technology areas.
    • AI Education Push: The allocation of funds towards a Centre of Excellence in AI education signifies a new initiative to develop expertise and talent in artificial intelligence. The hope is that this center will also set benchmarks for the beneficial adoption of AI in Indian society.
    • Green Hydrogen Mission: Spearheaded by CSIR, this mission supports research and development towards clean energy transition.
    • Alignment of CSIR Missions: While not entirely new initiatives, the strategic alignment and emphasis on CSIR’s existing missions (like Aroma, Floriculture, Millets, Cotton, etc.) with national goals represents a renewed focus and coordinated effort that will likely drive scientific research in those specific areas.

    Way forward: 

    • Balanced Research Funding: Ensure a more balanced allocation between mission-driven projects and fundamental research to sustain long-term scientific innovation and discovery.
    • Strengthening Scientific Workforce: Expand research fellowships, enhance funding for premier institutions, and create stronger industry-academia collaborations to develop a skilled workforce in emerging technologies.
  • [pib] TROPEX-25

    Why in the News?

    The 2025 edition of TROPEX is currently underway in the Indian Ocean Region, involving all operational Indian Naval units along with significant participation from the Indian Army, Indian Air Force (IAF), and the Indian Coast Guard (ICG).

    About Theatre Level Operational Exercise (TROPEX)

    • TROPEX is the Indian Navy’s flagship biennial operational-level exercise, designed to test and enhance India’s maritime defense capabilities.
    • It is conducted in the Indian Ocean Region with participation from the Indian Navy, Indian Army, Indian Air Force (IAF), and Indian Coast Guard (ICG).
    • It was first held in April 2005.
    • TROPEX-25 is being conducted over a three-month period from January to March 2025 in multiple phases:
    1. Harbour Phase: Focuses on strategic planning, joint training, and coordination before moving to sea operations.
    2. Sea Phase: Simulates real-time combat scenarios to assess the Navy’s operational readiness.
    3. Cyber and Electronic Warfare Operations:  Integrates modern cybersecurity and electronic warfare tactics to counter digital threats.
    4. Live Weapon Firings:  Includes real-world missile and torpedo firings to test combat effectiveness.
    5. Amphibious Exercise (AMPHEX):  Conducts joint land-sea operations, involving amphibious landings and coastal defence drills.

    Mandate and Significance of TROPEX-25

    TROPEX-25 plays a pivotal role in:

    • Strengthening India’s maritime dominance in the Indian Ocean Region.
    • Enhancing interoperability and joint warfighting capabilities among the Navy, Army, Air Force, and Coast Guard.
    • Testing real-world combat readiness in dynamic operational environments.
    • Securing national maritime interests through proactive military preparedness.
    • Projecting India’s naval power to safeguard maritime trade routes and counter emerging threats.
  • Economic Capital Framework (ECF) of the RBI

    Why in the News?

    The Reserve Bank of India (RBI) has initiated an internal review of its Economic Capital Framework (ECF) to assess the contingency risk buffer (CRB) and overall capital reserves.

    What is Economic Capital Framework (ECF)?

    • The ECF is the risk management policy used by the RBI to determine:
    1. How much capital and reserves the central bank should maintain for financial stability.
    2. How much surplus the RBI can transfer to the government under Section 47 of the RBI Act, 1934.
    • Key Components
    1. Contingency Risk Buffer (CRB): A financial safeguard for monetary, fiscal, credit, and operational risks.
    2. Total Economic Capital: Includes capital, reserves, risk provisions, and revaluation balances.
    • Surplus Transfers:
      • FY24: ₹2.11 lakh crore (highest-ever surplus).
      • FY23: ₹87,416 crore | FY22: ₹30,307 crore | FY21: ₹99,122 crore.

    Review of ECF and Its Significance

    • The Bimal Jalan Committee’s recommendations (valid till June 2024) required a periodic reassessment.
    • As of March 31, 2024, the CRB stands at 6.5%, and the RBI is evaluating whether changes are needed.
    • Potential Impact
      • Higher CRB → More financial stability, but lower surplus transfers to the government.
      • Lower CRB → More funds available for government spending, but with potential financial risks.
    • Impact on Budget: RBI’s surplus plays a major role in fiscal planning for infrastructure & welfare programs.
    • The RBI must ensure financial resilience while also supporting economic development.

    About Bimal Jalan Committee (2018)

    • Objective: To review RBI’s reserve management and surplus transfer policy.
    • Key Recommendations:
      • CRB should be between 5.5% – 6.5% of the balance sheet.
      • Periodic ECF review every 5 years.
      • Only realized surplus (net income) should be transferred to the government.
      • Revaluation reserves should not be used for operational losses.
    • Impact:
      • Led to higher surplus transfers and a structured capital policy.
      • Strengthened transparency & financial governance in RBI’s operations.

     

    PYQ:

    [2017] Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)?

    1. It decides the RBI’s benchmark interest rates.
    2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
    3. It functions under the chairmanship of the Union Finance Minister.

    Select the correct answer using the code given below:

    (a) 1 only
    (b) 1 and 2 only
    (c) 3 only
    (d) 2 and 3 only

     

  • [pib] SASCI Scheme

    Why in the News?

    The Government of India has sanctioned 40 projects across 23 states, allocating ₹3295.76 crore under the ‘Special Assistance to States for Capital Investment (SASCI) Scheme for the Financial Year 2024-25.

    What is the SASCI Scheme?

    • The SASCI Scheme was launched in FY 2020-21 to support state capital expenditure and drive economic growth.
    • Initially introduced as a post-COVID recovery measure, it has been expanded in FY 2023-24 with an allocation of ₹1.3 lakh crore.
    • The scheme funds infrastructure projects, urban reforms, tourism development, and sustainability initiatives.
    • Structural Mandate: The scheme has eight parts based on states’ share of central taxes:
    1. General Capital Assistance (₹1 lakh crore): Allocated based on states’ share of central taxes.
    2. Vehicle Scrappage & Testing Facilities:  Incentives for phasing out old vehicles & setting up automated testing centers.
    3. Urban Planning Reforms: Encourages modern land-use planning & governance improvements.
    4. Urban Finance Reforms:  Strengthens municipal revenue models & financial sustainability.
    5. Housing for Police Personnel: Funds residential units for police & their families.
    6. Cultural & Economic Development (Unity Malls):  Promotes One District One Product (ODOP), Make in India & local entrepreneurship.
    7. Digital Libraries at Panchayat/Ward Levels: ₹5,000 crore for library infrastructure & digital learning access.
    8. Development of Iconic Tourist Centres:  Global-scale branding & infrastructure for major tourism hubs.

    Features & Significance:

    • Boosts capital investment to stimulate demand and job creation.
    • Encourages reforms in urban governance, infrastructure, and sustainability.
    • Promotes responsible tourism and global branding of iconic destinations.
    • Strengthens local industries through One District One Product (ODOP).
    • Improves public services like policing, water supply, and rural roads.

    PYQ:

    [2016] Which of the following is/are included in the capital budget of the Government of India?

    1. Expenditure on acquisition of assets like roads, buildings, machinery, etc.
    2. Loans received from foreign governments
    3. Loans and advances granted to the States and Union Territories

    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