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GS Paper: GS3

  • What are the key features of the National Clean Air Programme (NCAP) initiated by the Government of India?

    The MoEFCC launched NCAP in 2019 with the objective of improving air quality in 131 non-attainment and Million Plus Cities by engaging all relevant stakeholders.

    Key Features of NCAP

    Multi-sectoral initiative involving the coordinated efforts of the Central and State Governments, Urban Local Bodies (ULBs)

    Objectives

    Achieve up to a 40% reduction in PM10 levels or to meet national standards (60 µg/m³) by 2025-26.

    City specific targets ranging from 4-15% by implementing city specific action plans.

    An annual target of 15% improvement in Good Days (Air Quality Index <200) has been prescribed for 49 Million Plus cities/Urban Agglomerations.

    Funding Convergence – Mobilises resources from Central schemes (SBM-Urban, AMRUT), State/UT budgets and municipal bodies to finance City Action Plans

    City-Specific Clean Air Action Plans (CAAPs) targeting transport, industries, road dust, waste burning, and construction sources.

    Expansion of CAAQMS, manual stations, and low-cost sensors for strengthening Air Quality Monitoring

    Source Apportionment studies to list and quantify the significant sources of pollution in a city

    Performance-Based Funding – Annual city rankings under Swachh Vayu Survekshan

    Significance of NCAP

    First-ever effort in the country to frame a national framework for air quality management with a time-bound reduction target.

    Focus on Non-attainment cities that have fallen short of the National Ambient Air Quality Standards (NAAQS)

    Promotes Scientific and evidence-based Planning

    Strengthens air quality data reliability nationwide.

    Local Governance Reform – Enhances capacity of ULBs in environment management.

    Aligns with India’s Panchamrit Targets in UNFCCC

    Major Challenges

    Non-Binding Targets – Reduction targets are not legally enforceable – weaken accountability.

    Limited Capacity of ULBs/SPCBs – manpower shortage, and technical gaps.

    Inadequate Monitoring Coverage – Rural areas and small towns remain excluded.

    Poor Inter-State Coordination – Transboundary pollution not addressed effectively. Eg- stubble burning

    Insufficient Behavioural Change – Continued preference for private vehicles and biomass burning.

    Funding Constraints – Cities lack dedicated environmental budgets.

    Overlaps between ministries leads to slow decision-making. Eg- between MOEFCC and Ministry of Housing and Urban Affairs

    Way Forward

    Empower municipal bodies for real-time emissions tracking. Eg- AI based dashboards.

    Renewable energy transition. Eg- Rooftop solar power.

    High-resolution air quality monitoring network at the construction site linked to automatic sprayers, mist cannons, or sprinklers to reduce dust

    Adopting Global Best Practices – Eg- California’s reinvestment of pollution fines into green projects.

    Vehicular Emission Control –

    Use catalytic converters to reduce Nitrogen and carbon monoxide emissions,

    Expand EV network

    Regulatory measures – Odd-even and congestion pricing (London Model)

    Waste to energy – Eg- biofuels from agriculture waste in Punjab, Haryana

    Expand Urban Green Infrastructure – Eg- Singapore’s green urban planning

    Strengthening NCAP supports India’s Panchamrit climate goals, cleaner-energy transition, and long-term sustainable development objectives.


    Climate Change

  • Describe the benefits of deriving electric energy from sunlight in contrast to the conventional energy generation. What are the initiatives offered by our Government for this purpose?

    India ranks 3rd globally in Solar Power capacity, (IRENA 2025) with 1.16 GW production. Solar energy is critical for objective of 500 GW of clean energy by 2030.

    Benefits of Deriving Electric Energy from Sunlight vs Conventional Energy Generation

    Sunlight is inexhaustible, unlike fossil fuels that are finite and depleting. India receives 4-7 kWh/m²/day solar radiation.

    Enhances Energy Security – Reduces dependence on imported coal, oil, and gas. (India imports over 85% of crude oil)

    Once installed, solar projects have minimal maintenance and no fuel cost, unlike thermal plants dependent on continuous coal supply.

    Decentralised and Inclusive – Solar energy supports off-grid and rooftop systems. Eg- Solar Pumps under PM Kusum

    Promotes Improved Public Health – Solar reduces air pollution-related diseases linked with thermal power. Eg- asthma, cardiovascular illnesses.

    Solar energy is critical for achieving India’s NDC targets of 50% non-fossil electricity by 2030 and Net Zero by 2070.

    Generates Green Jobs in solar manufacturing, installation, maintenance. India’s RE sector employs 3.7 lakh+ workers (IRENA 2024).

    Government Initiatives to Promote Solar Energy in India

    National Solar Mission – Target of 280 GW solar capacity by 2030.

    PM-KUSUM Scheme – Promotes solar pumps and solarisation of agricultural feeders.

    PM Surya Ghar Muft Bijli Yojana (2024) – Supports rooftop solar installation for households with subsidy and free electricity up to 300 units/month.

    Solar Parks and Ultra Mega Solar Power Projects – Eg- Bhadla (Rajasthan) and Pavagada (Karnataka). (target of 40 GW by March 2026)

    PLI Scheme – Encourages domestic manufacturing of high-efficiency solar PV modules and cells.

    Green Energy Corridor – Strengthens transmission infrastructure.

    International Solar Alliance (ISA) – India’s global initiative to promote solar energy in tropical countries.

    Solar Cities Programme – Promotes solar-based infrastructure in urban and semi-urban areas.

    PM JANMAN: electrifying one lakh un-electrified households in Tribal and PVTG habitations across 18 states

    State-level initiatives

    SMART Solar Scheme (Maharashtra) – Offers subsidies up to 95% for 1 kW rooftop solar system

    Indira Soura Giri Jala Vikasam (Telangana) – 100% subsidy for solar-powered irrigation systems

    These initiatives underscore India’s vision of inclusive, secure, and clean energy for all (SDG -7).

  • How does the draft Environment Impact Assessment (EIA) Notification, 2020 differ from the existing EIA Notification, 2006?

    EIA is a systematic process to evaluate the environmental, social and economic impacts of a proposed project before granting environmental clearance under the Environment (Protection) Act, 1986.

    Differences between EIA Notification, 2006 and Draft EIA Notification, 2020

    Analysis of Draft EIA

    The future lies in restoring public trust, strengthening scientific rigour, ensuring zero post-facto clearances, aligning EIA with climate resilience goals.

  • Discuss the recent measures initiated in disaster management by the Government of India departing from the earlier reactive approach.

    Earlier Approach (Reactive Model)

    Relief and Response-Focused – limited emphasis on preparedness or mitigation.

    Fragmented Institutional Setup – No single coordinating agency.

    Weak Early Warning Systems – limited forecasting for cyclones, floods, and lightning. Eg – 1999 Odisha Super Cyclone caused 10000 deaths

    Delayed Emergency Response Mechanisms before NDRF creation (2006). Eg- delay in 2001 Bhuj Earthquake response

    Ad hoc Funding – minimal pre-disaster investment.

    Poor Infrastructure Resilience – Buildings, dams, roads lacked disaster-resilient design.

    Low Use of Technology – Eg- lack of glacial lake monitoring, real-time rainfall data, or landslide susceptibility mapping in Himalayas

    Limited Community Preparedness – Citizens were passive recipients of relief; evacuation plans rudimentary. Eg- high fatalities after Uttarakhand Floods

    Recent Measures Highlighting the Shift from Reactive to Proactive Approach

    Legal & Institutional Strengthening – DM Act 2005, NDMA, NDRF, SDMAs, and DDMAs ensure permanent, structured disaster governance.

    Strengthened Early Warning through IMD + ISRO + IITs. Eg- Zero human casualties during Cyclone Biparjoy (2023)

    Integrated Alert System (SACHET) is operationalised in all 36 States and UTs to send disaster alerts through SMS. Over 6,899 crore SMS alerts in more than 19 Indian languages were sent.

    Multi-Hazard Early Warning System (MHEWS) – integrates satellite, radar, and IoT data via the IMD’s Decision Support System (DSS). Improves accuracy by 20-40%. Apps used are

    MAUSAM: General weather forecasts.

    DAMINI: Lightning alerts.

    MEGHDOOT: Agromet advisories for farmers.

    Nature-Based Solutions – Mangrove restoration (MISHTI), wetland protection (Amrit Dharohar) to reduce cyclone/flood vulnerability.

    Shift in disaster-financing architecture – from earlier response-only funds to separate mitigation funds at national and state level as per recommendations of 15th FC

    Community-Based Disaster Management under Aapda Mitra/Aapda Sakhi.

    City/state-specific Heat Action Plans (HAPs) for heatwave prediction + response + healthcare preparedness. Eg- Ahmedabad HAP cut mortality by 30-40% since 2013.

    Cyclone Preparedness (Odisha Model) – Mass evacuations, cyclone shelters, and resilient infrastructure. Eg- Only 64 deaths in Cyclone Fani (2019).

    GIS-Based Hazard Mapping– Eg- National Landslide Susceptibility Mapping (NLSM 2023) covers all Himalayan states.

    Global Efforts

    Signatory to Sendai Framework for disaster risk reduction

    Launched coalition of disaster disaster resilient infrastructure

    Way Forward

    Strengthening disaster health management through coordination between NDMA and the Health Ministry

    Transparency in Fund Allocation – formula-based, impact-driven NDRF allocation

    Decentralized Disaster Governance

    Autonomy in fund utilization for SDMA and DDMA.

    Integrating disaster risk reduction (DRR) into development plans

    Climate-Resilient Infrastructure –

    strict enforcement of the National Building Code (NBC), 2016

    disaster-resilient retrofitting of old buildings, bridges, and dams in seismic zones.

    Enhance coordination between IMD, ISRO, NDMA, and NDRF through a unified National Emergency Coordination Hub (NECH).

    Strengthening Financial Resilience via parametric insurance models

    Adopting global best practices

    Singapore -Whole-of-Government (WOG) Approach

    Netherlands -“Room for the River” Programme

    United States -FEMA’s Incident Command System (ICS)

    The Sendai Framework’s proactive approach, focused on risk mitigation, resilient recovery, and inclusive governance, is essential for making Bharat a ‘weather-ready and climate-smart’ nation.

  • What are the main constraints in transport and marketing of agricultural produce in India?

    Efficient transport and marketing are critical components of the agriculture value chain. However, gaps in logistics and markets hinder farmers’ ability to access markets, realise fair prices, and reduce post-harvest losses.

    Main Constraints in Transport of Agricultural Produce

    FCI transit loss stands at Rs 300 crore/annum

    Poor Rural Road Connectivity– About 25% rural habitations lack pucca road connectivity .

    Lack of Multi-Model connectivity – heavy dependence on roads for transport

    Inadequate First-Mile Logistics – Scarcity of tractors, mini-trucks, and affordable transport

    High Post-Harvest Losses in Transit due to improper packaging, rough handling, and delays. 6-18% losses in fruits & vegetables (NABARD/FAO).

    Cold storage capacity in India can only accommodate about 11% of the country’s total produce.

    Fragmented Landholdings – 86% farmers are small/marginal – increase per-unit transport cost

    High Logistics Cost of 14% of GDP – raise farm-to-market cost.

    Main Constraints in Marketing of Agricultural Produce

    63% of agricultural households sold their crops to local markets and only 7.2% sold to APMCs.

    Dominance of Intermediaries leads to low price realisation. Eg- Farmers get only 25-30% of final price in perishables.

    Inadequate Market Infrastructure – Mandis lack grading, sorting, storage, and drying yards. Only 10% of mandis meet required norms (Dalwai Committee).

    APMC operating in monopolised silos limit free inter-state movement and competition.

    Poor Access to real-time price and demand Information – weakens bargaining power of farmers

    Low Digital Integration – Only about 1500 mandis integrated with e-NAM (2024).

    Quality & SPS Compliance Gaps – Inadequate testing infrastructure impacts domestic sales and exports. Eg- EU rejecting Mango consignment

    Way Forward

    Strengthening FPOs to enhance collective bargaining and direct market access for farmers. Eg- Sahyadri FPO in Maharashtra – increased incomes by 30%

    Cold-Chain-as-a-Service (CCaaS) – IoT-based cold storage + logistics integration reduces post-harvest losses

    MSP 2.0 based on 3 D’s – Decentralisation, Diversification and Digital Procurement. Eg- instant payments through e-RUPI.

    Rural Agri-Logistics Nodes under Gati Shakti Framework to develop cold chains, aggregation centers, and packhouses near farm gates.

    Strengthening supply chain management is key to ‘Doubling Farmers Income’.

  • What are the challenges and opportunities of food processing sector in the country? How can income of the farmers be substantially increased by encouraging food processing?

    Food processing refers to the transformation of raw agricultural commodities into value-added, marketable, and storable products through physical, chemical, or biological methods.

    Challenges of the Food Processing Sector in India

    Low Level of Processing – Only ~10% of total agricultural produce is processed (vs 60-70% in developed countries).

    Post-harvest losses of 15-20% due to shortage of cold-storage, and transport infrastructure.

    Fragmented Supply Chain – 86% of farmers are small/marginal – limits aggregation

    High Logistics Cost of 13-14% of GDP (vs 8-9% in developed countries).

    Delay in project implementation – Eg- only 25 out of 42 approved Mega Food Parks operational

    Regulatory & Compliance Issues – Complex FSSAI norms and licensing delays discourage small processors.

    Low Exports – 16% of India’s agri-exports are processed products, compared to 25% in the US and 49% in China.

    Micro and small units struggle to access formal credit, collateral, and working capital.

    Skill gap – Only 3% of the food processing workforce is formally trained

    Quality & Safety Gaps – Inconsistent adherence to food safety standards, and limited testing infrastructure. Eg- Rejection of Indian exports by EU.

    Negligible R&D (<0.5% of sectoral GVA) – stall innovation in packaging and product design

    Opportunities of Food Processing Industry in India

    Large agricultural base

    Second-largest producer of fruits and vegetables.

    Wide product spectrum – Includes dairy, fruits & vegetables, meat, fisheries, beverages, ready-to-eat (RTE), and organic foods.

    Lifestyle Shift – 65% of Indians under 35, rising incomes, urbanization & busy lifestyles have boosted demand for ready-to-eat & processed foods.

    Rapid growth in Organised retail and “shopping mall culture”- better supply chain management. Eg- D-mart

    Export potential – India exports processed foods to 200+ countries

    Nearly 70% of food processing units operate in the unorganised MSME sector – generate rural employment and entrepreneurship.

    Increasing Farmers’ Income through Food Processing

    Encourages production of horticulture, millets, oilseeds, spices – create new income sources beyond cereals.

    Strengthening FPOs – Processors procure directly from FPOs, giving assured prices and eliminating middlemen. Eg- Sahyadri FPO in Maharashtra

    Employment generation – rural non-farm jobs in grading, sorting, packaging, logistics, and processing units.

    Promotion of women entrepreneurship – Eg- Lijjat Papad

    Zero-Waste Processing using circular economy models. Eg- converting fruit peels to bio-plastics

    As India moves forward under the Make in India vision, the food processing industry will continue to be a key driver of economic growth, ensuring food security, quality, and global competitiveness.

  • What are the major factors responsible for making rice-wheat system a success? In spite of this success how has this system become bane in India?

    The rice-wheat system emerged as the backbone of Indian agriculture after the Green Revolution. It led to food self-sufficiency, but over-time it has become ecologically and economically unsustainable.

    Major Factors Responsible for the Success of the Rice-Wheat System

    Assured Irrigation- Expansion of canal irrigation and tube wells in Punjab and Haryana.

    MSP and Procurement Support through FCI and PDS gave farmers assured income.

    Favourable Agro-climatic Conditions- alluvial soil, flat terrain and suitable climate of the Indo-Gangetic plains favoured rice-wheat double cropping.

    Mechanisation – Availability of tractors, combine harvesters, threshers, storage facilities and rural roads reduced labour costs and increased efficiency.

    Input Subsidies- Heavy subsidies on electricity, fertilisers and water made cultivation economically attractive.

    Institutional Credit Availability- Access to cooperative banks, KCC and PSBs enabled farmers to invest in modern inputs.

    Export potential – Eg- High demand for Indian Basmati Rice in international markets.

    However, this system has become bane for India

    Excess Use of Fertilizers leads to nutrient imbalances and soil degradation. Eg-Punjab uses 244 kg/ha of fertilizers vs the national average of 140 kg/ha.

    Deteriorating Soil Health

    N:P:K imbalance 7.7:3.1:1.

    Over 30% of Indian soils is degraded

    Groundwater Depletion: Eg- Punjab’s water table dropping 50 cm annually (Central Ground Water Board).

    Decreasing Productivity: Wheat yields have stagnated at 3.5-4 tonnes/ha due to resource depletion and climate change (ICAR, 2023).

    Pollution from Residue Burning: over 20 million tonnes of paddy straw burned annually (SAFAR).

    Increased Fiscal Burden due to high MSP and fertilizer subsidies. Eg- fertilizer subsidies exceeding in 2024-25.

    Reducing agro-biodiversity – focus on only two crops has displaced millets, pulses and oilseeds.

    Neglect of nutri-cereals and pulses has contributed to hidden hunger and malnutrition.

    Climate Vulnerability – Rice-wheat system is highly sensitive to heatwaves, erratic rainfall and declining water availability.

    Way Forward

    Diversification to Millets, Pulses & Oilseeds

    Efficient Water Management – Drip irrigation, System of Rice Intensification (SRI)

    Soil Health Restoration – organic fertilizers, bio-compost, and crop rotation

    Stubble Management Alternatives – Happy Seeder, bio-decomposers, and straw recycling

    Climate-Resilient Varieties

    Rationalise MSP to break the monoculture cycle.

    Crop diversification is key for doubling farmers’ income and nutritional security.

  • Suggest measures to improve water storage and irrigation system to make its judicious use under depleting scenario.

    India has 18% of the world’s population but only 4% of the freshwater resources. As per NITI Aayog “Composite Water Management Index”, 60 Cr people are experiencing high to extreme water stress.

    ~85% of India’s freshwater is used in agriculture (FAO).

    Groundwater depletion:

    1,006 blocks are over-exploited or critical (CGWB, 2023).

    Punjab and Haryana – ~1 metre annual groundwater decline.

    Per capita water availability fell from 1,820 m³ (2001)1,486 m³ (2025).

    “Day Zero” in cities like Chennai, Bengaluru, and Shimla

    By 2030, water demand could outstrip supply by twofold. (NITI Aayog)

    21 cities could exhaust groundwater by 2030. (NITI Aayog)

    The World Resources Institute ranks India 13th among the 17 most water-stressed nations globally

    2024 Annual Groundwater Quality Report – that 70% of India’s water sources are contaminated

    World Bank projects that climate-induced water scarcity could reduce India’s GDP by up to 12% by 2050

    Measures to improve water management

    Enhancing Water Storage Infrastructure

    Renovation Traditional Water Bodies – Example: Mission Kakatiya (Telangana) and Kudimaramath (Tamil Nadu).

    Farm-Level Storage – Promote farm ponds, percolation tanks, check dams, and contour bunds through MGNREGA. Eg- jalyukta Shivar of Maharashtra

    Rainwater Harvesting – Mandatory rooftop harvesting in water-stressed cities. Eg- Chennai Model

    Interlinking of Rivers – Eg- Projects like Ken-Betwa Link can ease water shortages in Bundelkhand.

    Use recharge wells to replenish aquifers through Atal Bhujal Yojana

    Dam Modernisation to enhance water storage capacity

    Improving Irrigation Efficiency

    Micro-Irrigation Expansion through PMKSY-PDMC. Eg- Drip saves 30-50% water; sprinkler saves 25-35%.

    Canal Modernisation- Improves efficiency from .

    Precision Farming – Use of sensors, fertigation, controlled irrigation for sustainable agriculture and optimal water use.

    Remote Sensing & GIS for Water Accounting – Monitor aquifers, rainfall-runoff, and canal leakages.

    Increase Capital Investment in Irrigation Systems and Fast-track AIBP projects

    Strengthening Community-Led Measures – Eg- Pani Panchayats in Odisha.

    Demand-Side Management

    Crop Diversification – Shift from water-intensive crops (paddy, sugarcane) to millets, pulses, oilseeds, horticulture. Example: Haryana’s Mera Pani Meri Virasat.

    Water Budgeting at Village Level through Gram Sabhas. Eg- Pani Foundation villages in Maharashtra.

    Water Pricing – Rational, volumetric pricing to reduce wastage.

    Water Users Associations (WUAs) – Participatory Irrigation Management for equitable distribution and canal maintenance.

    Incentivise Water Saving – Eg- Punjab’s Pani Bachao Paise Kamao for reducing groundwater usage.

    Implementing Mihir Shah Committee recommendations of One Water Approach by merging CGWB and CWC into a National Water Commission (NWC) is essential to achieve a water-secure economy.

  • Explain the meaning of investment in an economy in terms of capital formation. Discuss the factors to be considered while designing a concession agreement between a public entity and a private entity.

    Investment refers to the creation or addition of capital assets in an economy that enhance its productive capacity. It involves machinery, infrastructure, technology, and human skills.

    Meaning of Investment in Terms of Capital Formation

    Addition to Capital Stock- Eg- Samruddhi Expressway, Foxconn Plant in Chennai.

    Gross Capital Formation (GCF)- additions to fixed assets, inventories, valuables. Eg- Solar Plant in Rajasthan.

    Enhances Productive Capacity- Eg- Dedicated Freight Corridors boosting logistics efficiency.

    Savings and Investment Link- Higher savings enable greater capital formation. Eg- Sovereign Green Bonds funding renewable energy assets.

    Includes Physical, Human and Social Capital- Eg- Skill India Mission, Metro rail projects.

    Creates jobs, improves productivity, accelerates growth. Eg- Sagarmala driving port-led industrialisation.

    Factors to Consider While Designing a Concession Agreement (Public-Private)

    Political / Policy

    Clear Scope Definition- project components, performance standards, service quality benchmarks, and asset ownership.

    Model of partnership – Eg- Hybrid annuity model or BOT Model

    Concession Period based on asset life, investment size, and recovery period. Eg- 20-30 years for highways.

    Economic

    Risk Allocation between government and private entity

    Revenue Model- Eg- tariffs, user charges, annuity payments, or viability gap funding.

    Financial Structure- Terms on capital investment, debt-equity ratio, refinancing rules.

    Social

    Environmental & Social Safeguards- Compliance with EIA and land acquisition laws.

    Transparency and Accountability- Public disclosures, third-party audits, and periodic review.

    Technological

    Performance Metrics- KPIs, service standards, monitoring, penalties, incentives.

    Legal

    Dispute Resolution- arbitration method.

    Renegotiation Rules- framework for handling unforeseen demand or cost shocks.

    Termination Clauses- rules for default, compensation, and asset handback.

    Kelkar Committee recommendations

    Prioritizing service delivery over fiscal benefits in contracts

    Establishing independent sector regulators

    Better risk allocation between stakeholders

    Utilizing advanced risk management techniques

    A well-designed concession agreement ensures efficient public-private collaboration, ultimately leading to sustainable high-quality infrastructure delivery and realisation of a $40 Trillion economy by 2047.

  • Explain the rationale behind the Goods and Services Tax (Compensation to States) Act of 2017. How has COVID-19 impacted the GST compensation fund and created new federal tensions?

    The GST, implemented on 1 July 2017, unified India’s fragmented indirect tax system into a single, destination-based tax, aimed at creating a ‘one nation, one tax’ System.

    Rationale behind the GST (Compensation to States) Act, 2017

    GST subsumed major state taxes (VAT, entry tax, octroi). To prevent short-term revenue loss, the Act assured 14% annual revenue growth for 5 years (2017-22).

    Addressing Loss of Fiscal Autonomy – Compensation ensured states’ fiscal stability during structural shifts.

    Cooperative Federalism- States agreed to adopt GST in exchange for legal assurance of compensation from the Centre.

    Creating Predictability in Budgeting – Guaranteed revenue helped states plan welfare schemes, salaries, and capital projects without fear of instability.

    Compensation Fund Mechanism- A dedicated GST Compensation Cess (on luxury/sin goods like tobacco, coal, automobiles) was created to finance the compensation pool.

    Impact of COVID-19 on the GST Compensation Fund

    According to the 41st GST Council meeting, states projected a for 2020-21. With an estimated , the shortfall in the GST compensation fund was expected to be .

    was due to GST implementation-related revenue gaps, and

    was attributed to the COVID-19-induced economic shock

    The Centre admitted an unprecedented shortfall, stating it could not fully compensate states from the fund.

    Borrowing Controversy

    The Centre asked states to borrow via RBI under two options.

    Many states (Kerala, Punjab, Chhattisgarh) argued that the borrowing burden should lie with the Centre, not states.

    Breakdown of Consensus in GST Council – For the first time since 2017, the Council saw voting instead of consensus. States alleged weakening of cooperative federalism.

    Increased Fiscal Stress on States – Shortfalls forced states to cut capital expenditure, delay welfare payments, and increase market borrowing.

    States demanded extending the compensation period beyond June 2022 due to pandemic losses

    Strengthening the fiscal framework, improving tax buoyancy, and enhancing transparency in compensation mechanisms are essential to restore trust in India’s cooperative federalism.