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GS Paper: GS3

  • Fracture Discovered in a Cosmic Bone of the Milky Way

    Why in the News?

    NASA has released an image of a fractured structure in the Milky Way’s galactic centre. The feature, named G359.13, was captured using X-ray data from Chandra and radio data from South Africa’s MeerKAT array.

    Fracture Discovered in a Cosmic Bone of the Milky Way

    What is G359.13?

    • G359.13 is a long, linear structure near the centre of the Milky Way.
    • It is often referred to as a cosmic bone due to its shape and density.
    • It stretches about 230 light-years in length, making it one of the longest and brightest features of its kind in the galaxy.
    • It lies about 26,000 light-years from Earth, close to the Milky Way’s centre.
    • For context, over 800 stars exist within a radius of 230 light-years from Earth—the same length as this cosmic bone.

    New Discovery: A Fracture in G359.13

    • Astronomers identified a distinct break or fracture in the structure’s continuous body.
    • An X-ray and radio source was also detected precisely at the location of the fracture.
    • Scientists believe a pulsar—a magnetised, rotating neutron star—collided with G359.13.
    • The pulsar was likely moving at a speed of 1–2 million miles per hour at the time of impact.
    • The collision disrupted the structure, creating a visible fracture.

    Back2Basics: What is a Pulsar?

    • A pulsar is a neutron star that emits beams of electromagnetic radiation from its magnetic poles.
    • Though only about 20 km in diameter, it is more massive than the Sun.
    • Pulsars rotate extremely rapidly, some spinning hundreds of times per second.
    • When their radiation beam crosses Earth’s line of sight, we observe pulses of radiation, hence the name.

     

    [UPSC 2003] The time taken by the sun to revolve around the centre of our galaxy is

    Options: (a) 25 million years (b) 100 million years (c) 250 million years* (d) 500 million years

     

  • Microplastics disrupting the Ocean’s Carbon Cycle

    Why in the News?

    A study published in Nature reveals that microplastics have deeply infiltrated the ocean, affecting the planet’s biogeochemical and carbon cycles.

    Microplastics

    Key Findings of the Study:

    • Microplastics (1–100 micrometres) dominate the ocean’s water column, especially below surface layers, unlike larger plastic fragments (100–5,000 micrometres) which remain near the surface.
    • Subsurface microplastics were found as deep as 100 metres within ocean gyres—rotating currents that trap and accumulate debris.
    • Data was compiled from 1,885 ocean stations (2014–2024), focusing on 50 cm below surface (subsurface layer).
    • Over 56 polymer types were detected; buoyant polymers, common in global plastic production, were most prevalent.
    • Sources identified:
      • Fishing gear, including nylon and polyester nets, was a significant contributor to deep-sea microplastics.
      • Plastics sampled often had production dates from the 20th century, highlighting their long degradation timelines.
      • Atmospheric deposition contributes 0.013–25 million tonnes annually, with polyester dominant in airborne microplastics.

    About Allochthonous Carbon:

    • Allochthonous carbon is carbon from external sources introduced into an ecosystem, not produced within it.
    • In oceans, plastics are a major source of allochthonous carbon, as they come from land-based human activities.
    • Microplastics contribute measurable carbon mass to marine systems, altering natural carbon ratios in ocean layers.
    • This distorts the marine carbon pump by affecting the flow and composition of particulate organic carbon (POC).
    • Impacts:
      • Plastic-derived carbon lacks radiocarbon, which may cause marine POC samples to appear around 420 years older.
      • It disrupts microbial activity, nutrient cycling like nitrification and denitrification, and organic matter decomposition.
      • Marine microbes ingest plastic-C, affecting food chains and altering biological processes at the base of ecosystems.
    [UPSC 2012] What would happen if phytoplankton of an ocean is completely destroyed for some reason?

    Statements:

    1. The ocean as a carbon sink would be adversely affected.

    2. The food chains in the ocean would be adversely affected.

    3. The density of ocean water would drastically decrease.

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

     

  • [5th May 2025] The Hindu Op-ed: Shaping the port of the future

    PYQ Relevance:

    [UPSC 2021] Investment in infrastructure is essential for more rapid and inclusive economic growth.” Discuss in the light of India’s experience.

    Linkage: Vizhinjam Port is seen as a major infrastructure project that can bring big economic benefits and boost growth in the region. This “port of the future” is a clear example of how building key infrastructure can help speed up development and strengthen India’s role in global sea trade.

     

    Mentor’s Comment:  The town of Vizhinjam in Kerala has been an important part of global sea trade since ancient times. Inscriptions from the Pandya-Chola period (1129 AD) refer to it as Rajendra Chola Pattinam, a key port in Kerala. Some historians believe that Vizhinjam was earlier known as Balita, a port mentioned in the 1st-century travel book The Periplus of the Erythraean Sea. Over time, however, Vizhinjam lost its importance when colonial powers began to focus on developing other ports like Cochin and Madras.

    Today’s editorial analyses the first deep-water container transhipment port at Vizhinjam. This content would help in the GS Paper II (International Relations) and GS Paper III (Port & Infrastructure).

    _

    Let’s learn!

    Why in the News?

    India’s first deep-water container transshipment port at Vizhinjam has been officially opened by the Prime Minister.

    What historical records highlight Vizhinjam’s ancient maritime significance?

    • Inscriptions from the Pandya-Chola Era (1129 AD): Vizhinjam was referred to as Rajendra Chola Pattinam, highlighting its importance under Chola rule. Eg: Inscriptions found in Tamil Nadu indicate Vizhinjam was a maritime outpost under Rajendra Chola I.
    • Mention in The Periplus of the Erythraean Sea (1st century AD): Scholars correlate Vizhinjam with Balita, a port listed in this Greco-Roman navigational text. Eg: The Periplus details trade with South Indian ports exporting spices, pearls, and textiles.
    • Vital Node in the Ancient Spice Route: Vizhinjam facilitated trade in pepper and aromatics between India and the Greco-Roman world. Eg: Goods from Kerala were shipped to Alexandria and further into Europe via this port.
    • Geographic Advantage as a Natural Port: Vizhinjam’s deep-sea location and sheltering coastline made it ideal for anchorage and monsoon navigation. Eg: Sailors preferred Vizhinjam for docking during the southwest monsoon season.
    • Decline Due to Colonial Maritime Reorientation: Colonial interests bypassed Vizhinjam in favor of Cochin and Madras, leading to its historical obscurity. Eg: The British East India Company developed Cochin, reducing Vizhinjam’s strategic relevance.

    Why is Vizhinjam Port crucial for India’s transshipment strategy?

    • Proximity to International Shipping Routes: Vizhinjam lies just 10 nautical miles from the busy east–west international sea route, reducing diversion time for vessels. Eg: Ships plying between the Persian Gulf and the Malacca Strait can easily access Vizhinjam without significant deviation.
    • Natural Deep-Draft Port: It has a natural depth of over 20 meters, allowing large container ships (like Ultra Large Container Vessels) to dock without dredging. Eg: Unlike ports such as Chennai or Kolkata, Vizhinjam can handle Mother Vessels directly.
    • Reduces India’s Dependence on Foreign Ports: India currently transships ~75% of its cargo through ports like Colombo, Singapore, and Jebel Ali. Vizhinjam aims to internalize this traffic. Eg: Container traffic from Kochi or Tuticorin often goes to Colombo first—Vizhinjam can bypass this.
    • Strategic Location for Regional Hub Development: Located on the southern tip of India, it can serve as a transshipment hub for South Asia and East Africa. Eg: Ports in Maldives, Seychelles, and even parts of the African east coast could be serviced via Vizhinjam.
    • Boosts Sagarmala and Atmanirbhar Bharat Goals: It aligns with India’s vision to develop port-led development and reduce logistic costs under the Sagarmala Programme. Eg: Vizhinjam complements other projects like Vadhavan and Paradip in creating an integrated maritime network.

    Who are the main stakeholders in the Vizhinjam Port project?

    • Government of Kerala: Owns the port infrastructure and plays a key role in policy, land acquisition, and facilitating local support. Eg: Kerala State Industrial Development Corporation (KSIDC) is involved in project coordination.
    • Adani Ports and SEZ Ltd (APSEZ): The main private developer and operator of the port under a Public-Private Partnership (PPP) model. Eg: APSEZ is responsible for design, build, finance, operate, and transfer (DBFOT) of the port.
    • Central Government of India: Provides financial assistance and regulatory approvals via the Ministry of Ports, Shipping and Waterways. Eg: The project received viability gap funding (VGF) from the Centre to make it commercially feasible.
    • Local Community and Fisherfolk: Crucial stakeholders impacted by land use, fishing access, and environmental changes. Eg: Protests by fishing communities in 2022 highlighted concerns over displacement and livelihood loss.
    • Environmental and Regulatory Bodies: Ensure compliance with Coastal Regulation Zone (CRZ) norms, environmental clearances, and sustainable development. Eg: The Ministry of Environment, Forest and Climate Change (MoEFCC) granted conditional clearance after EIA studies.

    How can Vizhinjam’s economic potential mirror global models like Shenzhen?

    • Strategic Coastal Location for Global Trade: Like Shenzhen, Vizhinjam lies close to major global shipping routes, enabling it to become a vital logistics hub. Eg: Vizhinjam is just 10 nautical miles from the international east-west shipping corridor, ideal for transshipment.
    • Integrated Industrial and Port Development: Shenzhen’s success came from combining port infrastructure with export-oriented industrial zones; Vizhinjam can follow suit with Special Economic Zones (SEZs). Eg: Planned industrial corridors around Vizhinjam can attract electronics, pharmaceuticals, and marine processing units.
    • Private Sector-Led Infrastructure Expansion: Like Shenzhen’s model of leveraging private investment for rapid development, Vizhinjam is being developed under PPP with Adani Ports. Eg: Adani Ports has experience in developing Mundra Port as an integrated commercial port ecosystem.
    • Tech-Driven, Green Port Initiatives: Shenzhen is a pioneer in using smart and sustainable technologies; Vizhinjam can adopt automation, renewable energy, and green logistics. Eg: Vizhinjam’s deep draft allows handling of mega ships with less dredging, reducing ecological footprint.
    • Employment and Urban Transformation: Shenzhen evolved from a fishing village to a global metropolis; Vizhinjam can drive local employment, urbanisation, and socioeconomic growth. Eg: Development of port-linked infrastructure is expected to boost tourism, services, and real estate in the Trivandrum region.

    What are the challenges for the ports in India? 

    • Labor Disputes and Industrial Actions: Indian ports have experienced significant disruptions due to labor strikes and protests. Eg: In August 2024, approximately 20,000 port workers initiated a strike demanding wage revisions and improved pension benefits. This industrial action threatened to halt operations across major ports, causing delays in cargo handling and impacting global trade.
    • Inadequate Last-Mile Connectivity: Despite improvements in port infrastructure, many Indian ports suffer from poor last-mile connectivity. Eg: The Jawaharlal Nehru Port in Navi Mumbai often faces delays due to inefficient road networks and underdeveloped transport links, affecting overall port efficiency.
    • Port Congestion and Operational Inefficiencies: Indian ports are grappling with congestion issues, leading to delays in cargo handling and increased turnaround times for vessels. Eg: Factors like outdated cargo tracking systems and regulatory bottlenecks have forced some shipping lines to skip Indian port calls to maintain schedules.

    Way forward: 

    • Improve Port Infrastructure and Last-Mile Connectivity: Enhance road, rail, and port connectivity to streamline cargo movement and reduce congestion. Investments in modernizing transport networks and implementing smart technologies can ensure smoother operations and quicker turnaround times.
    • Strengthen Labor Relations and Efficiency: Resolve labor disputes through better communication and negotiations, ensuring worker welfare while maintaining productivity. Implementing automation and improving operational processes can also reduce dependency on manual labor and improve efficiency.

  • Temporary respite: on GST, India’s manufacturing 

    Why in the News?

    Since the Goods and Services Tax (GST) system started in 2017, India’s GST collections every April have regularly reached new record highs.

    What was the GST collection in April and its year-on-year growth?

    • Record High Collection: In April 2025, India collected ₹2.37 lakh crore in gross GST, marking the highest ever monthly collection since the GST regime began in 2017. Example: This was up from ₹2.10 lakh crore in April 2024.
    • Strong Year-on-Year Growth: This represented a 12.6% growth over the previous year’s April figures, showing improved compliance and economic activity. Example: After refunds, the net collection for the Centre rose by 9.1% compared to April 2024.

    How has GST compliance and fintech adoption boosted tax collection?

    • Higher Tax Filing Discipline: Increased awareness and digital tracking have improved GST compliance among businesses. Eg: The consistent rise in GST collections every April since 2018 from ₹1.03 lakh crore to ₹2.37 lakh crore indicates better adherence to filing norms.
    • Faster Refunds Encourage Participation: Swift processing of refunds, especially for small businesses, has encouraged timely and accurate GST filing. Eg: Refunds to exporters rose by 86% in April 2025, indicating improved trust in the system.
    • Fintech Integration Supports MSMEs: With 87% fintech adoption in India, MSMEs have better access to formal banking and invoicing systems, helping them meet compliance requirements. Eg: Digital invoicing apps and GST-ready accounting tools have simplified filings for small traders and manufacturers.
    • Digital Audit Trails Enhance Enforcement: Fintech tools enable real-time tracking of transactions, reducing scope for tax evasion. Eg: E-invoicing and auto-generated returns allow tax authorities to detect discrepancies quickly.
    • COVID-19 Accelerated Formalization: The pandemic years pushed many informal businesses into the digital and formal economy, making tax compliance a necessity. Eg: Many first-time filers from the MSME sector were onboarded via digital platforms during 2020–21, increasing the taxpayer base.

    What led to the 86% rise in refunds to exporters?

    • Improved GST Processing Systems: The government has streamlined refund procedures with faster digital approvals and reduced delays. Eg: Automation of refund claims has enabled quicker credit settlements to exporters within defined timelines.
    • Higher Volume of Export Orders: A surge in international demand led to increased export activity, resulting in more refund claims under GST. Eg: Orders from regions like Africa, Asia, and the Americas rose significantly in April 2025, boosting GST refund outflow.
    • Greater GST Compliance by Exporters: Better record-keeping and digital documentation encouraged more businesses to file refund claims accurately and on time. Eg: Exporters using fintech platforms for e-invoicing were able to submit error-free refund claims swiftly.

    What is HSBC India PMI? 

    The HSBC India PMI refers to the Purchasing Managers’ Index compiled by HSBC in partnership with S&P Global to track the economic health of India’s manufacturing and services sectors.

    What is Purchasing Managers’ Index (PMI)? 

    • Purchasing Managers’ Index (PMI) is an economic indicator that measures the health and performance of a country’s manufacturing and services sectors. It is based on surveys of purchasing managers across various industries.
    • Index Scale:
      • Above 50: Indicates expansion in economic activity
      • Below 50: Indicates contraction
      • Exactly 50: No change

    Why did the HSBC India PMI show a 10-month high in April?

    • Surge in New Business Orders: Domestic and international demand for Indian-manufactured goods increased, boosting factory activity. Eg: Indian companies saw the largest increase in overseas orders in over 14 years.
    • Export Growth from Global Demand: Strong demand from key regions like Africa, Asia, Europe, West Asia, and the Americas fueled export-oriented production. Eg: Exporters rushed to fulfill orders before the U.S. tariff pause on Chinese goods ends in July.
    • Positive Business Sentiment: Companies expanded production and hiring in response to growing order books and market optimism. Eg: Firms ramped up manufacturing capacity to take advantage of global supply chain shifts toward India.

    How has the U.S. tariff pause on China affected India’s manufacturing sector?

    • Increased Export Orders to India: Global buyers are shifting orders from China to India to avoid potential U.S. tariffs. Eg: Indian manufacturers received a surge in foreign orders, especially from the U.S., ahead of the July 9 tariff deadline.
    • Realignment of Supply Chains: India is emerging as an alternative manufacturing base due to U.S.–China trade tensions. Eg: Apple announced plans to source ‘most of its iPhones’ for the U.S. market from India.
    • Short-Term Boost in Manufacturing Activity: Anticipated U.S. tariffs on Chinese goods have created temporary opportunities for Indian exporters. Eg: India’s manufacturing sector saw a sharp rise in April output, contributing to a 10-month high in the HSBC PMI.

    Way forward: 

    • ​​Strengthen Fintech-GST Integration: Deepen digital infrastructure and incentivize e-invoicing adoption among small businesses to sustain high compliance and broaden the tax base.
    • Enhance Export Ecosystem: Build long-term trade resilience through export incentives, logistics upgrades, and faster refund systems to capitalize on shifting global supply chains.

    Mains PYQ:

    [UPSC 2019] Explain the salient features of the constitution(One Hundred and First Amendment) Act, 2016. Do you think it is efficacious enough ‘to remove cascading effect of taxes and provide for common national market for goods and services’?

    Linkage:  The article shares the latest information on how much money the government collected through GST and how well people are following GST rules. The question is asking about which earlier taxes were included under GST and how GST has affected government income.

  • Biological Diversity (Access and Benefit Sharing) Regulation, 2025

    Why in the News?

    The National Biodiversity Authority (NBA) has released new rules to regulate access to biological resources and ensure fair and equitable benefit sharing, as approved by the Central Government.

    About New Biodiversity Regulation, 2025:

    • It governs how benefits from the use of biological resources and associated traditional knowledge or digital sequence information (DSI) are to be shared.
    • It introduces a tiered benefit-sharing structure based on annual turnover of the user:
      • No sharing for turnover up to ₹5 crore.
      • 0.2% for turnover between ₹5–50 crore.
      • 0.4% for ₹50–250 crore, and 0.6% above ₹250 crore.
    • Users must submit resource usage statements annually if turnover exceeds ₹1 crore.
    • Cultivated medicinal plants are exempt, aligning with the Biodiversity (Amendment) Act, 2023.
    • For high-value or threatened species like red sanders, agarwood, and sandalwood, sharing must be at least 5%, rising to 20% or more for commercial use.
    • The Regulation covers researchers, IP right seekers, and includes digital data as part of benefit sharing for the first time.

    Back2Basics: Convention on Biological Diversity (CBD):

    • CBD was adopted at the 1992 Rio Earth Summit; it came into force since 29 December 1993 with secretariat in Montreal, Canada.
    • It is ratified by 196 countries, excluding the US.
    • Key objectives:
      • Conservation of biological diversity.
      • Sustainable use of biodiversity components.
      • Fair sharing of benefits from genetic resources.
    • It is governed by the Conference of the Parties (COP), meeting biennially.
    • COP16 (2024) in Colombia established a multilateral benefit-sharing mechanism for Digital Sequence Information (DSI).
    • It ensures fair reward for communities protecting biodiversity when their knowledge or genetic data is used commercially.

    Nagoya Protocol on ABS:

    • It was adopted in 2010, enforced in 2014, it supplements the CBD.
    • It provides a legal framework for fair benefit-sharing from the use of genetic resources with the country of origin or local communities.
    • It strengthens the global framework for responsible biodiversity use.

     

    [UPSC 2023] Consider the following statements:

    1. In India, the Biodiversity Management Committees are key to the realization of the objectives of the Nagoya Protocol.

    2. The Biodiversity Management Committees have important functions in determining acces and benefit sharing, including the power to levy collection fees on the access of biological resources within its jurisdiction.

    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

     

  • ‘Kamala’ and ‘Pusa DST Rice 1’ GM Rice

    Why in the News?

    India’s Agriculture Minister has introduced ‘Kamala’ and ‘Pusa DST Rice 1’, the country’s first genome-edited rice varieties, developed by ICAR. These are also the world’s first genome-edited rice varieties.

    About ‘Kamala’ and ‘Pusa DST Rice 1’:

    • Kamala (DRR Dhan 100): Developed by ICAR-IIRR Hyderabad, derived from Samba Mahsuri; shows higher yield, early maturity, drought tolerance.
    • Pusa DST Rice 1: Developed by ICAR-IARI Delhi, based on MTU1010; improves drought and salinity tolerance.
    • Agencies involved: Indian Council of Agricultural Research (ICAR), ICAR-IIRR, ICAR-IARI.
    • They were created using CRISPR-Cas9-based genome editing, specifically Site Directed Nuclease 1 (SDN1). It has NO foreign DNA inserted.
    • It has been approved by Institutional Biosafety Committees (IBC) and Review Committee on Genetic Manipulation (RCGM) under relaxed genome-edit rules.

    Specific Benefits Offered:

    • Yield boost:
      • Kamala: +19% over Samba Mahsuri (avg. 5.37 t/ha, max. up to 9 t/ha).
      • Pusa DST Rice 1: +9.6% to +30.4% over MTU1010 under stress conditions.
    • Climate resilience:
      • Kamala: Drought tolerance, early maturity.
      • Pusa DST: Salt and drought tolerance for saline/alkaline/coastal soils.
    • Water saving: Kamala matures 20 days early → saves 3 irrigations, i.e., 7,500 million m³ water.
    • Emission reduction: Cultivation over 5 million ha may reduce 32,000 tonnes GHG emissions (20% drop).
    • Food security support: Improved paddy output enhances India’s average yield, critical for 40% of total foodgrain basket.
    [UPSC 2018] With reference to the Genetically Modified mustard (GM mustard) developed in India, consider the following statements:

    1. GM mustard has the genes of a soil bacterium that give the plant the property of pest-resistance to a wide variety of pests.

    2.GM mustard has the genes that allow the plant cross-pollination and hybridization.

    3.GM mustard has been developed jointly by the IARI and Punjab Agricultural University.

    Which of the statements given above is/are correct?

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

     

  • Repairability Index (RI) for Mobile and Electronics Sector

    Why in the News?

    The Committee formed to design India’s Repairability Index (RI) framework has submitted its report to Department of Consumer Affairs.

    About Repairability Index (RI):

    • The RI is a standardized label that indicates how easily a product can be repaired by assessing multiple parameters.
    • It is designed to empower consumers to make informed decisions and promote sustainable consumption.
    • The RI is applicable initially to smartphones and tablets and uses a 5-point numeric scale for scoring.
    • The six key parameters used to calculate RI are:
      1. Disassembly Depth
      2. Repair Information
      3. Spare Parts Availability
      4. Software Updates
      5. Tools Required
      6. Fasteners Used
    • The scoring covers priority components such as battery, display, cameras, charging port, microphone, speaker, and hinge mechanism.
    • RI labels must be displayed at the point of sale, on e-commerce platforms, and via QR code on packaging.

    Recommendations of the RI Framework:

    • The RI framework must align with global best practices while maintaining ease of doing business for manufacturers.
    • Original Equipment Manufacturers (OEMs) will self-declare RI scores based on standard criteria, with no extra compliance burden.
    • A clear scoring methodology has been developed, with weightages assigned to each parameter for key parts.
    • The committee identified smartphones and tablets as the initial focus under the RI framework.
    • Stakeholder consultations included manufacturers, consumer groups, academic bodies, and government departments.
    • The framework complements the existing Right to Repair Portal (launched in 2022), which provides repair-related information across four sectors.
    • The committee emphasized the need for a robust post-sale ecosystem for both urban and rural consumers.
    [UPSC 2021] R2 Code of Practices’ constitutes a tool available for promoting the adoption of:

    Options: (a) environmentally responsible practices in electronics recycling industry*

    (b) ecological management of Wetlands of International Importance under the Ramsar Convention

    (c) sustainable practices in the cultivation of agricultural crops in degraded land

    (d) ‘Environmental Impact Assessment’ in the exploitation of natural resources

     

  • “China Plus One” Strategy

    Why in the News?

    Japanese companies, along with other global players, are increasingly turning to India under the China Plus One strategy, aiming to diversify supply chains and reduce overdependence on China.

    About China Plus One Strategy:

    • It is a global business model introduced in 2013 to reduce dependence on China by adding another country to the manufacturing or sourcing base.
    • It emerged due to concerns about geopolitical risks, trade tensions, and regulatory unpredictability in China.
    • The strategy gained momentum after the US–China trade war, China’s Zero-Covid policy, and increasing labour and compliance costs.
    • Its goal is to create resilient and diversified supply chains by operating in China and one or more alternative countries.
    • Vietnam, Mexico, and Taiwan have become early beneficiaries in sectors like machinery, electronics, and transport.

    Benefits for India:

    • India offers a large market, skilled labor, and cost advantages, making it an attractive destination for diversification.
    • The growing digital infrastructure and industrial corridors support the relocation of manufacturing, with government schemes like PLI and Make in India aligning with the China Plus One goals.
    • Challenges:
      • India faces limited integration into global value chains, logistics inefficiencies, and regulatory bottlenecks.
      • Historical protectionist trade policies and lack of participation in trade agreements like RCEP hinder its full potential.
      • To compete with nations like Vietnam or Mexico, India needs labour reforms, improved ease of doing business, and better trade facilitation.
    [UPSC 2021] Consider the following:

    1.Foreign currency convertible bonds 2.Foreign institutional investment with certain conditions 3.Global depository receipts 4.Non-resident external deposits Which of the above can be included in Foreign Direct Investments?

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

     

  • Port economy will drive India’s growth: PM

    Why in the News?

    Prime Minister Narendra Modi said on Friday that coastal states and port cities will play a major role in India’s growth as it becomes more developed. He was speaking after the launch of the ₹8,800 crore Vizhinjam International Deepwater Multipurpose Seaport in Kerala’s capital.

    What is the significance of the Vizhinjam International Deepwater Multipurpose Seaport for India’s maritime trade?

    • Strategic Global Location: Located close to the international East-West shipping route, making it ideal for global container traffic. Eg: Ships passing through the Suez Canal–Malacca route can now directly dock at Vizhinjam without diversion, saving cost and time.
    • India’s First Dedicated Transshipment Port: Will handle transshipment of containers that earlier went to foreign ports like Colombo (Sri Lanka), Dubai, or Singapore. Eg: Around 75% of India’s transshipped cargo is currently handled abroad; Vizhinjam aims to reverse this trend and retain revenue domestically.
    • Natural Deep Draft for Large Vessels: With a natural draft of nearly 20 metres, it can host Ultra Large Container Vessels (ULCVs) without the need for expensive dredging. Eg: Ports like Colombo or Rotterdam require regular dredging, while Vizhinjam offers cost-effective long-term operations.
    • Boost to Logistics and Trade Efficiency: Reduces logistics costs, cargo handling time, and dependence on intermediate ports, increasing India’s ease of doing business. Eg: Indian exporters from hinterland states can now ship directly via Vizhinjam, avoiding time-consuming rerouting through foreign ports.
    • Economic Multiplier Effect and Self-Reliance: Encourages Make in India, builds maritime self-reliance, and fuels coastal economy development. Eg: Encourages investments in warehousing, ship repair, and allied services around the port zone—generating local employment and GDP growth.

    Why is private sector participation considered crucial in developing port infrastructure in India?

    • Mobilization of Capital and Faster Project Execution: The private sector brings in large-scale investments that the government alone may not be able to allocate promptly. Eg: The ₹8,800 crore Vizhinjam Port was developed through a public-private partnership (PPP) with Adani Ports, accelerating infrastructure delivery.
    • Technological Innovation and Operational Efficiency: Private companies often introduce modern technologies and international best practices, improving service quality and turnaround time. Eg: Mundra Port, operated by Adani Ports, has emerged as one of India’s most efficient ports due to automation and smart logistics.
    • Risk Sharing and Long-Term Sustainability: PPP models allow for shared risks between the public and private sectors, reducing the financial burden on the government and ensuring long-term commitment. Eg: The collaboration between Kerala’s state government and Adani Group in Vizhinjam port demonstrates how risk-sharing enables execution even in ideologically diverse environments.

    Where is the new shipbuilding and repair cluster being set up?

    • Strategic Location in Kochi, Kerala: Kochi has been selected for its existing maritime infrastructure and strategic coastal position. The cluster aims to enhance India’s shipbuilding and repair capabilities, reducing reliance on foreign facilities. Eg: The cluster is being developed through a collaboration between Cochin Shipyard Limited and Drydocks World, aiming to create world-class ship repair facilities in Kochi.
    • Public-Private Partnerships Driving Development: The project leverages public-private partnerships to combine government support with private sector efficiency and investment. This approach is expected to bring in advanced technologies and best practices. Eg: Cochin Shipyard Limited, a government-owned entity, has signed an MoU with Drydocks World to jointly develop the ship repair cluster in Kochi.
    • Economic Growth and Employment Opportunities: The cluster is anticipated to generate substantial employment, particularly benefiting the local population in Kerala. It will also contribute to the growth of ancillary industries and services. Eg: The establishment of the shipbuilding and repair cluster in Kochi is expected to create numerous new employment opportunities, providing Kerala’s local talent and youth with a platform for growth.

    What opportunities is it expected to create?

    • Job Creation and Skill Development: The new shipbuilding and repair cluster in Kochi is expected to create thousands of direct and indirect jobs, particularly benefiting the local population by providing employment opportunities in shipbuilding, repair, and ancillary services.  
    • Boost to India’s Maritime and Manufacturing Sectors: The cluster will significantly enhance India’s shipbuilding capabilities, reducing dependence on foreign facilities and positioning India as a key player in global shipbuilding and repair.  

    Way forward: 

    • Strengthen Port Connectivity and Infrastructure: Enhance hinterland connectivity to ensure seamless movement of goods between ports and key industrial zones. Eg: Develop efficient road, rail, and inland waterways to complement the Vizhinjam Port and Kochi shipbuilding cluster.
    • Focus on Skill Development and Innovation: Invest in specialized maritime education and training programs to create a skilled workforce. Eg: Collaborate with global institutions to bring advanced shipbuilding technologies and best practices to India, fostering innovation and sustainability in the maritime sector.

    Mains PYQ:

    [UPSC 2021] “Investment in infrastructure is essential for more rapid and inclusive economic growth.”Discuss in the light of India’s experience.

    Linkage: Coastal states and port cities will be key growth centres and that strengthening the maritime sector through infrastructure is essential for driving economic power and achieving the full potential of the port economy. Thus, this question aligns with the core idea that ports, as critical infrastructure, are drivers of growth.

  • PM inaugurates Vizhinjam Port

    Why in the News?

    Prime Minister has formally commissioned India’s first deep-sea transshipment port at Vizhinjam in Kerala.

    About Vizhinjam Port

    • Vizhinjam Port is India’s first deep-sea transshipment port located near Thiruvananthapuram.
    • Developed under a Public-Private Partnership (PPP) model, the port cost ₹8,900 crore to build.
    • It is operated by Adani Vizhinjam Port Pvt. Ltd., with a 61.5% stake held by Kerala’s government and 9.6% by the Central government.
    • Commercial operations began in December 2024, following a trial run in July 2024.
    • The port has handled 285 ships and processed 5.48 lakh TEUs since its operational launch.
    • Positioned just 10 nautical miles from a major international shipping route, it provides quick access to global trade lanes.

    Notable Features of the Port:

    • It is India’s first semi-automated port, utilizing AI-powered control rooms and the Indigenous Vessel Traffic Management System (VTMS).
    • Its deep natural draft (up to 24 meters) allows it to accommodate Ultra Large Container Vessels (ULCVs).
    • The current infrastructure includes a 3,000-meter breakwater and an 800-meter container berth, with full capacity expected by 2028–29 at 6.2 million TEUs annually.
    • The port is designed as a multi-purpose, green port, ensuring year-round operations.
    • Positioned 20 kilometers from Trivandrum International Airport, it offers seamless air-sea connectivity.
    [UPSC 2023] Consider the following pairs:

    Port—–Well known as

    1. Kamarajar Port—-First major port in India registered as a company

    2. Mundra Port—–Largest privately owned port in India

    3. Visakhapatnam—-Largest container port in India

    Options: (a) Only one pair  (b) Only two pairs*  (c) All three pairs  (d) None of the pairs