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GS Paper: GS3

  • Food vs fuel: Surge in ethanol blending and its impacts

    Why in the News?

    India now aims to increase ethanol blending in petrol to 30% to reduce the use of fossil fuels, after reaching its earlier target of 20% for 2025 ahead of time.

    What factors have contributed to the decline in sugarcane production in India since 2022?

    • Red-Rot Disease: A major fungal infection that affects the stalk and reduces crop health and yield. Eg. In Uttar Pradesh and Maharashtra, outbreaks of red-rot significantly reduced sugarcane productivity post-2022.
    • Deficient Rainfall: Inadequate monsoon rains have led to water stress in sugarcane-growing regions. Eg. In Maharashtra and Karnataka, below-normal rainfall in 2023 led to poor crop growth and lower yields.
    • Flowering Issues: Disruption in the natural flowering cycle affects cane maturity and sugar content. Eg. In southern India, unseasonal weather affected flowering patterns, resulting in underdeveloped canes.
    • Soil Depletion (Soil Fatigue): Continuous sugarcane monocropping depletes soil nutrients, lowering productivity. Eg. In western Uttar Pradesh, repeated sugarcane cultivation without crop rotation has led to reduced soil fertility.
    • Crop Diversion: Farmers are shifting to other crops due to uncertain returns and rising input costs. Eg. In Tamil Nadu and Andhra Pradesh, farmers moved to pulses and cotton, reducing the area under sugarcane.

    Why has the Indian government approved a hike in the Fair Remunerative Price for sugarcane?

    • Support for Farmer Income: The hike in FRP is intended to ensure that farmers receive a fair price for their produce, thus supporting their income. Eg: The increased FRP of ₹355 per quintal (up from ₹340) ensures that farmers are adequately compensated, especially as input costs have risen. This makes sugarcane cultivation more attractive to farmers.
    • Addressing Rising Input Costs: The costs of farming inputs, such as fertilizers, labor, and irrigation, have increased, and the FRP hike helps mitigate these expenses for farmers.
      Eg: With the rise in fertilizer prices, the government’s decision to raise the FRP ensures that farmers can continue cultivating sugarcane without facing financial distress due to high input costs.
    • Incentivizing Sugarcane Production: A higher FRP encourages farmers to cultivate more sugarcane, addressing concerns over declining sugarcane production in India.
      Eg: In regions like Maharashtra and Uttar Pradesh, where production has been affected due to reduced farmer interest, the FRP increase motivates farmers to maintain or increase their sugarcane acreage.
    • Ensuring Steady Sugar Supply: Maintaining sugarcane production through higher FRP ensures a stable sugar supply for the domestic market. Eg: With India being one of the world’s largest sugar producers, ensuring adequate sugarcane production is vital to prevent sugar shortages and price hikes, as seen in previous years.
    • Timely Payments to Farmers: The FRP hike ensures that sugar mills can afford to make timely payments to farmers, thus reducing arrears. Eg: In the past, many farmers faced delayed payments from mills. The higher FRP is expected to make it financially feasible for mills to pay farmers on time.

    Which alternatives is the government considering to offset the sugarcane shortfall for ethanol?

    • B-Heavy Molasses: The government has lifted restrictions on B-heavy molasses for ethanol production, increasing supply without extra sugarcane cultivation. Eg: 750,000 metric tons of B-heavy molasses are now available for ethanol production.
    • Cane Juice and Syrup: Sugar mills can now use cane juice and syrup for ethanol, boosting production capacity. Eg: Policy change allows sugar mills to divert more resources into ethanol production from sugarcane juice.
    • Grain-Based Ethanol: The government is encouraging the use of grains like maize and rice for ethanol, diversifying feedstocks. Eg: India has turned to maize for ethanol production, though it has led to increased corn imports.
    • Food vs. Fuel Balance: The government has adjusted policies to prioritize sugar production when needed. Eg: Restrictions were imposed on ethanol production in December 2023 to ensure sufficient sugar supply.
    • Molasses-Based Ethanol Procurement Price: The government has increased the procurement price for molasses-based ethanol to incentivize production. Eg: The procurement price was raised by 3% to ₹58 per liter to boost ethanol supply.

    Way forward: 

    • Promote Crop Diversification and Sustainable Practices: Encourage farmers to adopt crop rotation and diversified farming practices, alongside promoting resilient sugarcane varieties, to reduce dependency on sugarcane monocropping and mitigate soil depletion.
    • Strengthen Ethanol Supply Chain and Support Alternative Feedstocks: Enhance infrastructure for processing alternative feedstocks like maize and rice for ethanol production, while incentivizing the use of B-heavy molasses and cane juice to ensure a steady supply of ethanol without further straining sugarcane resources.

    Mains PYQ:

    [UPSC 2024] What are the causes of persistent high food inflation in India? Comment on the effectiveness of the monetary policy of the RBI to control this type of inflation.

    Linkage: The rise in sugar price, partly due to diversion for ethanol blending, is “pinching the pockets of consumers”. This question directly addresses the causes of high food inflation, which is a significant impact of the “food vs fuel” dynamic where increased demand for crops for fuel can drive up food prices.

  • UK-India Free Trade Agreement (FTA) signed

    Why in the News?

    India and the United Kingdom signed a Free Trade Agreement (FTA), ending nearly 3 years of negotiations, with an aim to boost trade and investment between the two nations.

    Free Trade Agreement

    What is Free Trade Agreement (FTA)?

    • An FTA is an agreement between two or more countries to reduce or eliminate customs tariffs and non-tariff barriers on trade between them.
    • Objective: To promote trade by making it easier and more cost-effective for businesses to import and export goods and services.
    • FTAs can cover goods, services, investment, and intellectual property rights.
    • By reducing trade barriers, FTAs also benefit consumers by offering a wider range of products at lower prices.
    • FTAs play a key role in boosting economic growth and job creation by facilitating trade between countries.
    • India’s FTAs:
      • India has signed FTAs with 16 countries or regional blocs as of May 2025. 
      • These FTAs cover major partners such as Sri Lanka, Bhutan, Thailand, Singapore, Malaysia, South Korea, Japan, Australia, UAE, Mauritius, ASEAN (10 countries), and EFTA (4 countries).

    Key terms of the UK-India FTA:

    • Trade Growth: Expected to boost bilateral trade by £25.5 billion annually by 2040.
    • Whisky and Gin Tariffs: Tariffs reduced from 150% to 75%, eventually to 40% over 10 years.
    • Automobile Tariffs: India to reduce automotive tariffs from over 100% to 10%.
    • Other Goods: Tariffs reduced on cosmetics, aerospace, medical devices, chocolate, and more.
    • Services and Work Permits: Increased quotas for Indian workers in IT and healthcare, with 100 new visas annually for professionals.
    • Carbon Tax: Dispute over UK’s proposed carbon tax on metal imports.
    • Supply Chain Resilience: FTA aims to reduce reliance on China and improve supply chain security.
    [UPSC 2017] The term ‘Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and:

    Options: (a) European Union* (b) Gulf Cooperation Council (c) Organization for Economic Cooperation and Development (d) Shanghai Cooperation Organization.

     

  • Civil Defence under the Civil Defence Act, 1968

    Why in the News?

    The Union Home Ministry directed all states and Union Territories to conduct a Civil Defence Mock Drill, aimed at assessing and enhancing the readiness of India’s civil defence mechanisms.

    About Civil Defence under the Civil Defence Act, 1968

    • The Civil Defence Act, 1968 was enacted to ensure measures for civil defence to protect citizens, properties, and establishments from hostile attacks or natural disasters.
    • It aims to prepare the population to respond to emergencies such as military attacks, terrorist activities, and natural calamities.
    • Civil Defence Corps is formed at both national and state levels. Volunteers from various sectors are enlisted and trained.
    • The corps operates under the Central Government’s rules for civil defence.
    • Key functions include- Evacuation of civilians; Protection from danger and destruction; Salvage of property; Managing hazardous materials.
    • The Central Government has the authority to:
      • Make rules for civil defence across India.
      • Enforce evacuation procedures, control over dangerous substances, and manage disaster relief.
    • Penalties for non-compliance with the civil defence regulations.

    Recent Context: Civil Defence Mock Drill on 7th May 

    • This exercise assesses and enhances the readiness of India’s civil defence systems to respond promptly during emergencies.
    • The drills will occur across nearly 300 civil defence districts, including sensitive locations like Mumbai, Uran (Jawaharlal Nehru Port), and Tarapur (nuclear power plant).
    • The mock drill aims to improve response time for rescue and relief operations, focusing on critical situations in the first few minutes of an emergency.
    [UPSC 2010] With reference to the National Rehabilitation and Resettlement Policy, 2007, consider the following statements:

    1. This policy is applicable only to the persons affected by the acquisition of land for projects and not to the involuntary displacement due to any other reason.

    2. This policy has been formulated by the Ministry of Social Justice and Empowerment.

    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*

     

  • Total Allowable Catch (TAC) in Fishing

    Why in the News?

    A recent legal dispute between the US and Russia has brought the issue of Total Allowable Catch (TAC) into the spotlight.

    About Total Allowable Catch (TAC):

    • TAC refers to the maximum quantity of a specific fish species that can be legally harvested in a defined period.
    • It is established to prevent overfishing and ensure sustainable fish populations.
    • These limits are essential for maintaining ecological balance and supporting long-term fishing industries.

    Various Laws Governing TAC:

    • TACs are set by international fisheries management organizations like:
      • FAO (Food and Agriculture Organization).
      • RFMOs (Regional Fisheries Management Organizations) for shared or migratory fish stocks.
    • European Union (EU): TACs are managed under the Common Fisheries Policy (CFP), which sets quotas for member states based on scientific advice. Landing obligations ensure that all catches are counted against quotas, preventing waste.
    • India: India enforces a seasonal fishing ban in its Exclusive Economic Zone (EEZ) for 61 days to protect breeding fish. This ban serves as a TAC equivalent of zero for specific periods, supporting fish stock regeneration.
    • New Zealand: The Fisheries Act sets TACs for various stocks and specifies catch limits in terms of weight or numbers, updated by official notices.
    [UPSC 2013] The most important fishing grounds of the world are found in the regions where:

    Options: (a) Warm and cold atmospheric currents meet (b) Rivers drain out large amounts of freshwater into the sea (c) Warm and cold oceanic currents meet* (d) continental shelf is undulating.

     

  • Hydrogen versus Battery: The Cost of Clean Public Transport

    Why in the News?

    In India, a study published in The Lancet found that between 2008 and 2019, breathing in high levels of PM2.5 air pollution for short periods caused around 30,000 deaths each year in 10 major cities—making up about 7.2% of all deaths in those areas.

    What are the major health impacts of urbanisation-related air pollution in Indian cities, as reported by the Lancet study?

    • High Mortality Due to PM2.5 Exposure: Short-term exposure to fine particulate matter (PM2.5) caused nearly 30,000 deaths annually across 10 major Indian cities from 2008 to 2019.
    • Significant Share of Urban Deaths: These pollution-related deaths represented about 7.2% of all deaths in these cities, indicating a severe public health burden directly linked to air quality.
    • City-Specific Impact – Mumbai: Mumbai recorded the highest number of annual deaths due to PM2.5, with approximately 5,100 deaths each year attributed to air pollution.
    • Severe Effects in Eastern and Southern Metropolises: Kolkata and Chennai also showed worrying trends, with 4,678 deaths/year in Kolkata and 2,870 deaths/year in Chennai due to polluted air.
    • Urbanisation Intensifies Health Risks: Rapid urban growth increases traffic congestion and emissions, compounding the effects of air pollution and increasing the risk of respiratory and cardiovascular diseases.

    Why are Fuel Cell Electric Vehicles (FCEVs) considered more suitable for long-distance travel and extreme conditions despite their low adoption?

    • Longer Driving Range: FCEVs offer greater range than battery electric vehicles (BEVs) due to the higher energy density of hydrogen fuel. Eg: Hydrogen-powered vehicles can travel 500–700 km on a single tank, ideal for intercity transport.
    • Quick Refuelling Time: FCEVs can be refuelled in just 5–15 minutes, similar to petrol or diesel vehicles, unlike BEVs which may take hours to recharge. Eg: Hydrogen buses can be quickly refuelled during breaks, making them suitable for continuous long-haul operations.
    • Better Performance in Cold Weather: FCEVs are less affected by cold temperatures, which often reduce the efficiency and range of battery-powered vehicles. Eg: FCEVs are more reliable in regions with harsh winters like high-altitude or Himalayan areas.
    • Lighter Vehicle Weight: Hydrogen fuel cells are generally lighter than large lithium-ion battery packs, improving efficiency and payload capacity. Eg: Fuel cell trucks can carry more cargo weight over rugged terrain compared to heavier BEVs.
    • Ideal for Heavy-Duty and Rugged Use: Due to their durability and efficiency, FCEVs are well-suited for buses, trucks, and long-range vehicles on varied terrains. Eg: Countries like Japan and South Korea are deploying hydrogen buses for public transport in hilly and industrial regions.

    Which countries and regions are leading in global electric car sales and how does India compare?

    Country/Region 2023 EV Sales Market Share Key Highlights
    China 9.05 million 37% of total car sales World’s largest EV market; accounts for ~58% of global EV consumption
    Europe 3.02 million 24% of total car sales Strong adoption in countries like Norway, Germany, and the Netherlands
    United States 1.39 million 9.5% of total car sales Third-largest EV market globally
    India 80,000 ~5% of total car sales Rapid growth; EV sales nearly doubled in 2023; leading in electric three-wheeler sales

    When will hydrogen vehicle costs match battery-electric vehicles?

    • Cost Convergence Expected by 2030: Experts predict that the initial purchase cost of hydrogen Fuel Cell Electric Vehicles (FCEVs) will match that of BEVs by around 2030, due to advancements in hydrogen fuel cell technology and mass production. Eg: A hydrogen-powered bus may cost the same as a battery-electric bus by 2030, narrowing today’s 20–30% cost gap.
    • Technology and Manufacturing Scale-Up: As production scales up, the cost of fuel cells, hydrogen storage systems, and related components is expected to fall significantly. Eg: Mass production of hydrogen tanks and cheaper catalysts could lower vehicle costs similar to how lithium-ion battery costs declined over time.
    • Infrastructure Development and Government Support: Increased investment in hydrogen refuelling infrastructure and government subsidies are crucial for cost parity. Eg: Japan and South Korea are funding hydrogen highways and offering tax incentives to make hydrogen cars more affordable.
    • Operational Costs to Remain High: While initial costs may match BEVs by 2030, running costs are expected to remain significantly higher beyond that due to fuel prices. Eg: Operating a green hydrogen bus currently costs around $0.91/km, compared to $0.17/km for electric buses.
    • Limited Market Segments for Parity: Cost matching is likely only in specific segments like heavy-duty transport, not across all vehicle categories. Eg: Long-haul hydrogen trucks may achieve cost parity with electric trucks sooner than passenger cars due to their high utility.

    What are the steps taken by the Indian Government? 

    • FAME India Scheme: Launched in 2015, it offers financial incentives for EV adoption and charging infrastructure development. Phase II (2019) focuses on public transport EVs and charging stations.
    • PLI Scheme: A ₹26,000 crore initiative to boost domestic EV and hydrogen vehicle manufacturing, reduce imports, create jobs, and support ‘Make in India.’
    • Customs Duty Reduction: Import duties on EVs above $35,000 have been reduced from up to 100% to 15%, with a cap of 8,000 vehicles annually for five years, provided manufacturers commit to local production.
    • NEMMP: The 2013 National Electric Mobility Mission Plan aims to boost EV and hybrid vehicle adoption through technology, infrastructure, and demand generation.
    • State-Level Initiatives: States like Uttar Pradesh, Tamil Nadu, and Delhi have implemented various EV policies, including subsidies, tax waivers, and electric auto rickshaw programs to promote adoption.

    Way forward: 

    • Enhance R&D and Subsidies: Support innovation and provide financial incentives to reduce the cost of hydrogen vehicles and fuel.
    • Build Targeted Infrastructure: Develop hydrogen refuelling stations along key freight corridors and urban hubs.

    Mains PYQ:

    [UPSC 2024] How do electric vehicles contribute to reducing carbon emissions and what are the key benefits they offer compared to traditional combustion engine vehicles?

    Linkage: Electric vehicles (which often implies BEVs) and their role in reducing carbon emissions, aligning with the “clean public transport”.

  • Kaleshwaram Lift Irrigation Project (KLIP)

    Why in the News?

    The National Dam Safety Authority (NDSA) has reported major structural and operational defects in Telangana’s Kaleshwaram Lift Irrigation Project (KLIP), citing “irreparable damage” to three key barrages, including Medigadda.

    Kaleshwaram Lift Irrigation Project (KLIP)

    About Kaleshwaram Lift Irrigation Project (KLIP)

    • KLIP, located on the Godavari River in Telangana, is the world’s largest multi-stage lift irrigation project, inaugurated on June 21, 2019.
    • The project aims to irrigate 45 lakh acres, supply drinking water to Hyderabad, and support industrial use.
    • It plans to lift 240 TMC of water, with 195 TMC from Medigadda, 20 TMC from Sripada Yellampalli, and 25 TMC from groundwater.
    • The infrastructure includes 7 links, 28 packages, a 500 km span, 1,800+ km canal network, 20 reservoirs, and Asia’s largest pump house at Ramadugu.
    • Estimated cost: ₹80,000 crore to ₹1.2 lakh crore.

    Issues with the Project

    • In October 2023, Pillar No. 20 of the Medigadda barrage sank, causing flood-related damages.
    • NDSA’s April 2024 report identified structural distress in all 3 barrages (Medigadda, Annaram, Sundilla) due to poor design, lack of geotechnical studies, and inadequate safety protocols.
    • Overloading of barrages (10 TMC water stored instead of 2 TMC) caused foundation damage.
    • The state incurs ₹16,000 crore annually in loan and interest repayments, despite the project being criticized as a “man-made disaster.”

    Back2Basics: Godavari River

    • The Godavari, also known as Dakshin Ganga, is the largest peninsular river in India.
    • Originates from Trimbakeshwar in Maharashtra, flowing 1465 km to the Bay of Bengal.
    • Its basin spans: Maharashtra, Telangana, Andhra Pradesh, Chhattisgarh, Odisha, and parts of Madhya Pradesh, Karnataka, and Puducherry.
    • Right bank tributaries include Pravara, Manjira, and Maner; Left bank tributaries include Purna, Pranhita, Indravati, and Sabari.

     

    [UPSC 2024] Recently, the term “pumped-storage hydropower” is actually and appropriately discussed in the context of which one of the following?

    Options: (a) Irrigation of terraced crop fields (b) Lift irrigation of cereal crops (c) Long duration energy storage* (d) Rainwater harvesting system

     

  • 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.