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GS Paper: GS3

  • The dystopian side of Insta-commerce

    Why in the News?

    Startup founders publicly claimed to support gig workers’ rights but secretly resist laws that would actually protect them.

    What is the nature of employment in urban labour chowks and mazdoor mandis?

    • Daily Wage and Informal Work: Workers gather at labour chowks every morning, hoping to be hired for the day. Example: Construction workers in Delhi’s Kashmere Gate labour chowk wait for contractors to hire them for masonry or painting jobs.
    • Highly Competitive and Unstable: Large numbers of workers compete for limited jobs, often accepting lower wages out of desperation. Example: In Mumbai’s Dadar labour market, carpenters and plumbers rush to secure work before others.
    • Exploitative Hiring Practices: Employers and thekedars (middlemen) negotiate wages, often offering the lowest possible rates. Example: In Ahmedabad, daily wage workers in textile markets are hired at rates well below the minimum wage.
    • Lack of Social Security and Benefits: No job security, health benefits, or pensions; workers are paid only for the day they work. Example: Brick kiln workers in Hyderabad have no accident coverage despite working in hazardous conditions.
    • Piece-Rate and Task-Based Payment: Workers are often paid per unit of work completed rather than a fixed wage. Example: In Chennai’s wholesale vegetable markets, loaders are paid per sack carried rather than for the number of hours worked.

    Who benefits the most from the presence of thekedars in the labour market?

    • Employers Benefit from Lower Labour Costs: Thekedars help employers negotiate lower wages and better terms by creating a competitive environment among workers. This allows employers to maximize profits by minimizing labor costs. Example: In urban labour chowks, employers can select workers at the lowest possible wage due to the high competition among workers, which benefits the employer financially.
    • Thekedars Themselves Profit from Commissions: Thekedars earn commissions or fees from both workers and employers for their services. This financial gain is a direct benefit to them. Example: In the construction industry, thekedars often receive a percentage of the workers’ wages as a commission for facilitating the hiring process.

    How do digital platforms replicate the role of thekedars in modern gig work?

    • Acting as Middlemen Without Responsibility: Just like thekedars, digital platforms connect workers to employers but do not recognize them as formal employees, avoiding obligations like job security or benefits. Example: Ride-hailing apps like Uber and Ola classify drivers as “partners” rather than employees, denying them benefits like PF or health insurance.
    • Downward Wage Bidding: Workers must accept the lowest possible payment, as platforms set rates based on demand and supply, just like the daily wage auctions in mazdoor mandis. Example: Food delivery workers on Swiggy and Zomato have seen their per-delivery payments decrease over time as competition increases.
    • Algorithm-Controlled Work Allocation: Platforms use algorithms to decide which worker gets a task, replacing the manual selection process of thekedars. Workers have no bargaining power over wages or work hours. Example: Freelancers on Upwork or Fiverr depend on algorithms that prioritize clients, making workers compete for lower pay.
    • Lack of Collective Bargaining: Gig workers are isolated, just like daily wagers in urban labour markets, making unionization and collective bargaining difficult. Example: Amazon Flex workers have no union representation and must accept whatever delivery rates the company offers.
    • Exploitative Rating Systems: Workers must maintain high ratings to get work, forcing them to accept low wages and poor conditions, similar to how thekedars exploit labour desperation. Example: “Insta Maids” service offers house help for ₹49 per hour, making workers compete for ratings instead of fair wages.

    What are the challenges for gig workers in India? 

    • Lack of Job Security and Social Benefits: Gig workers are classified as “independent contractors,” denying them benefits like health insurance, provident fund, and paid leave. Example: Delivery partners for Swiggy and Zomato receive no compensation if injured while working.
    • Low and Unstable Earnings: Payment structures are unpredictable, with fluctuating wages and reduced per-task payouts over time, making financial planning difficult. Example: Uber and Ola drivers often struggle as their earnings depend on peak-hour incentives, which companies frequently revise.
    • Exploitation Through Rating Systems: Workers must maintain high ratings to secure jobs, forcing them to accept unreasonable customer demands and work long hours. Example: Urban Company service providers risk lower earnings or job loss if they receive poor ratings from customers, regardless of actual service quality.

    What steps have been taken by the Indian government? 

    • Code on Social Security, 2020: This legislation brings gig and platform workers under the ambit of social security schemes for the first time. Example: The law mandates that gig workers be eligible for benefits like life and disability cover, health and maternity benefits, and old-age protection.
    • E-Shram Portal (2021): A national database for unorganized workers, including gig workers, was launched to provide them with targeted benefits. Example: Registered workers receive a Universal Account Number (UAN) and accident insurance coverage under the Pradhan Mantri Suraksha Bima Yojana.
    • State-Level Welfare Initiatives: Several state governments have taken initiatives to support gig workers. Example: Rajasthan introduced the Platform-Based Gig Workers Welfare Board (2023) to ensure social security benefits.
    • NITI Aayog Report on Gig Economy (2022): The report highlights the need for policy interventions, including skill development, financial inclusion, and social security for gig workers. Example: Recommendations were made to extend benefits like Employee Provident Fund (EPF) and health insurance to gig workers.
    • PLI Scheme and Skill Development Programs: The government has introduced skill development programs for gig workers, especially in sectors like logistics and e-commerce. Example: The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) helps gig workers upskill and transition into better-paying roles.

    Way forward: 

    • Strengthening Legal Protections & Social Security: Enforce minimum wages, accident insurance, and pension benefits for gig and informal workers. Example: Amend the Code on Social Security, 2020 to ensure mandatory employer contributions.
    • Collective Bargaining & Fair Work Standards: Facilitate unionization and introduce fair algorithmic policies to prevent wage suppression. Example: Implement transparent rating and payment systems on digital platforms like Swiggy and Uber.

    Mains PYQ:

    Q Examine the role of ‘Gig Economy’ in the process of empowerment of women in India. (UPSC 2021)

    Reason: The article explores “insta-commerce,” where gig workers, including women, sell via social media. While the PYQ focuses on empowerment, the article highlights challenges like job insecurity, unfair wages, and the lack of grievance redressal. This perspective offers a nuanced view of the gig economy’s impact, including its dual role in both enabling and potentially disempowering women.

  • Kerala’s drug menace is widespread and escalating

    Why in the News?

    Drug abuse in Kerala has increased over the past three years. In March, the Kerala High Court raised concerns about drug mafias, and the Governor met university officials to address student drug problems.

    What are the key factors contributing to the surge in drug abuse cases in Kerala over the past three years?

    • Increased Drug Trafficking via Coastal Routes: Kerala’s long coastline makes it a transit hub for international drug cartels. Example: In 2023, a Sri Lankan boat carrying 200 kg of heroin was intercepted off the Kerala coast.
    • Rise of Synthetic & Party Drugs Among Youth: Increased use of MDMA, LSD, and methamphetamine, particularly in urban areas and college campuses. Example: In 2022, over 1,000 students were caught in possession of synthetic drugs in Kochi and Thiruvananthapuram.
    • Easy Availability Through Darknet & Courier Services: Online platforms and encrypted messaging apps have facilitated drug trade. Example: In 2024, Kerala police busted a drug network using dark web transactions and fake delivery addresses.
    • Widespread Consumption Beyond Urban Centers: Unlike other states, drug abuse is reported in both rural and urban districts. Example: Every district in Kerala recorded at least 500 NDPS cases in 2022, indicating a statewide crisis.
    • Limited Focus on Major Suppliers & Traffickers: 94% of NDPS cases in Kerala are for possession, with only 6% related to trafficking. Example: While thousands of consumers are arrested, major drug syndicates continue operations largely unchecked.

    What is the situation of drug abuse at all India levels?

    • Steady Rise in NDPS Cases Across India: Cases under the Narcotic Drugs and Psychotropic Substances (NDPS) Act have been increasing, though some states show a decline in recent years. Example: India recorded over 1.5 lakh NDPS cases in 2023, with a significant rise in Punjab, Maharashtra, and Tamil Nadu.
    • Punjab & Northeast Among the Worst-Affected Regions: Punjab has long struggled with heroin addiction, while the Northeast is affected due to drug trafficking from Myanmar’s Golden Triangle. Example: In 2024, Punjab recorded 30 cases per lakh people, the second-highest after Kerala.
    • Shift from Natural to Synthetic & Pharmaceutical Drugs: Synthetic drugs (MDMA, LSD, Meth), opioids, and prescription medicines (Tramadol, Codeine-based syrups) are increasingly being abused. Example: In Mumbai, over 60% of drug-related arrests in 2023 involved synthetic drugs rather than traditional narcotics like cannabis.
    • Growing Use of Dark Web & Digital Payments for Drug Trade: Cryptocurrency transactions, darknet markets, and courier services are being used for drug sales. Example: In 2023, the Narcotics Control Bureau (NCB) dismantled an online drug syndicate operating across multiple Indian states.
    • State-Wise Variation in Drug Trafficking & Consumption Patterns: While Punjab & Northeast face opioid crises, Mumbai & Bengaluru see more party drug use, and Tamil Nadu & Andhra Pradesh have rising cannabis-related arrests. Example: In 2022, Bengaluru accounted for 63% of Karnataka’s NDPS cases, highlighting an urban concentration of drug abuse.

    What are the steps taken by the Government? 

    • Strengthening Law Enforcement & Anti-Drug Operations: The Narcotics Control Bureau (NCB) and state police have intensified crackdowns on drug trafficking networks. Example: In 2023, the NCB seized over 2000 kg of drugs nationwide, including heroin and synthetic substances, in coordinated raids.
    • Expansion of Rehabilitation & De-addiction Programs: The Ministry of Social Justice & Empowerment runs the Nasha Mukt Bharat Abhiyan (NMBA) to promote awareness and rehabilitation. Example: Over 370 de-addiction centres were established under NMBA in states like Punjab, Maharashtra, and Kerala.
    • Use of Technology & AI for Drug Surveillance: Government agencies monitor dark web transactions, cryptocurrency payments, and social media platforms to track drug deals. Example: In 2023, the NCB cracked a crypto-drug syndicate that was smuggling MDMA and LSD through online orders.
    • Public Awareness & Educational Campaigns: Schools, colleges, and workplaces are conducting anti-drug sensitization programs to reduce youth drug abuse. Example: Kerala’s ‘Love-a-Thon’ campaign in universities aims to educate students on the dangers of substance abuse.
    • International Cooperation & Border Security Measures: India has increased cooperation with Myanmar, Sri Lanka, and Iran to curb cross-border drug trafficking. Example: In 2023, the Indian Navy intercepted a Pakistan-based heroin shipment worth ₹1,200 crore in the Arabian Sea.

    Way forward: 

    • Targeted Crackdown on Drug Supply Chains: Strengthen intelligence-led operations against major traffickers, enhance coastal & border security, and increase inter-agency coordination to dismantle drug syndicates.
    • Comprehensive Prevention & Rehabilitation Strategy: Expand school-based drug education, integrate mental health support in de-addiction programs, and enhance community-based rehabilitation to address both urban and rural drug abuse.

    Mains PYQ:

    Q Explain how narco-terrorism has emerged as a serious threat across the country. Suggest suitable measures to counter narco-terrorism. (UPSC 2024)

    Reason: This question is potentially linked with narco-terrorism. The measures suggested to counter narco-terrorism would also be relevant to addressing the drug problem in Kerala, especially if it involves organized crime and cross-border elements.

  • Sarthi and Pravaah Systems of RBI

    Why in the News?  

    The Reserve Bank of India (RBI) was recently awarded the prestigious Digital Transformation Award 2025 by Central Banking, a recognition of its groundbreaking digital initiatives, Sarthi and Pravaah.

    About Sarthi System

    • The Sarthi system was launched in January 2023 by the RBI with the goal of digitizing all internal workflows within the organization.
    • This initiative aimed to reduce the reliance on paper-based processes and enhance operational efficiency across the RBI.
    • Key features include:
      • It can securely store and share documents among the 13,500 employees spread across 40+ locations.
      • It also improves record management and provides enhanced data analysis capabilities through reports and dashboards.
      • Additionally, Sarthi automates internal processes such as task tracking, approvals, and document management, streamlining operations and improving collaboration between departments.
      • To ensure that employees are proficient in using the system, an online training platform, called Sarthi Pathshala, was launched alongside in-person training.
      • Sarthi Mitras, who are designated experts within RBI offices, assist colleagues in navigating and resolving issues related to the system.

    About Pravaah System

    • Building on the success of Sarthi, the RBI introduced the Pravaah system in May 2024.
    • Its primary purpose is to facilitate external users in submitting regulatory applications digitally to the RBI.
    • This platform has greatly enhanced the efficiency and transparency of the application submission process.
    • Key features include:
      • It integrates seamlessly with the Sarthi database, enabling smooth processing of regulatory documents.
      • It supports more than 70 different regulatory applications, significantly improving the speed and accuracy of submissions.
      • It is equipped with centralized cybersecurity measures and digital tracking capabilities, which provide real-time monitoring of applications for both applicants and RBI managers.
      • It has contributed to an 80% increase in monthly applications, marking a significant achievement in reducing delays associated with traditional, paper-based systems and streamlining the overall process.

    PYQ:

    [UPSC 2024] Consider the following statements in respect of the digital rupee:

    1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy.

    2. It appears as a liability on the RBI’s balance sheet. Which of the statements given above is/are correct?

    (a) Only one (b) Only two (c) All three (d) None

     

  • Miller-Urey Hypothesis

    Why in the News?

    A recent study led by Stanford University chemist Richard Zare has introduced a novel perspective on the origins of life on Earth, providing an alternative to the well-known Miller-Urey hypothesis.

    Miller-Urey Hypothesis

    About the Miller-Urey Hypothesis

    • The Miller-Urey hypothesis emerged from an experiment conducted in 1952 by chemists Stanley Miller and Harold Urey.
      • It sought to simulate the conditions of early Earth to understand how life could have originated.
    • They used a mixture of water, methane, ammonia, and hydrogen, gases believed to be present in the early Earth’s atmosphere.
    • The setup also included an electric spark to simulate lightning, which they hypothesized could have played a role in the formation of organic compounds.
    • Results: The experiment successfully demonstrated that organic molecules, like amino acids, essential for life, could form when an electrical spark (simulating lightning) was applied to the gas mixture.
    • Impact and Debate:
      • The experiment was a landmark in understanding life’s chemical origins.
      • However, over time, critics argued that real lightning would have been rare and mostly occurred over open ocean, where organic compounds would have been quickly dispersed.
      • This led to the questioning of lightning as the primary trigger for life’s origins.

    Life on Earth and the Role of ‘Microlightning’ in Water Droplets

    • The Stanford study shows that when water droplets divide, they develop opposing electrical charges—larger droplets become positively charged, and smaller droplets become negatively charged.
    • When these oppositely charged droplets come close together, tiny sparks (termed micro-lightning) can leap between them, mimicking the electrical phenomena that occur in thunderstorms.
    • Experimental Evidence:
      • In the experiment, when water sprays were mixed with nitrogen, methane, carbon dioxide, and ammonia, they produced organic compounds like glycine and uracil, similar to those in the Miller-Urey experiment.
      • Microlightning from water sprays can therefore generate organic compounds, providing a plausible and common natural process for the origin of life.
    • These microlightning events could have been far more common and accessible than lightning strikes, offering an alternative mechanism for the generation of life-building organic molecules.

    PYQ:


    [UPSC 2012] Which one of the following sets of elements was primarily responsible for the origin of life on the Earth?

    (a) Hydrogen, Oxygen, Sodium

    (b) Carbon, Hydrogen, Nitrogen

    (c) Oxygen, Calcium, Phosphorus

    (d) Carbon, Sodium, Phosphorus

     

  • [18th March 2025] The Hindu Op-ed: How climate change affects India’s wheat production

    PYQ Relevance:

     Q Discuss the consequences of climate change on food security in tropical countries. (UPSC 2023)

    Reason: This question directly addresses the impact of climate change on food security.

    Mentor’s Comment:  UPSC mains have always focused on the strategy of consequences of climate change on the food security (2023) and the ‘Climate Change’ is a global problem (2017).

    Heat waves lead to health crises, crop losses, water shortages, and increased energy demand. In 2023, severe heat in India caused record-breaking temperatures, affecting wheat production in Punjab and Haryana. For example, The Indian state of Bihar had the highest number of heat wave days in 2023, with a total of 18 days. This was followed by the states of Andhra Pradesh and Odisha, both having experienced a total of 15 days of heat waves that year.

    Today’s editorial discusses the impact of Extreme heat in India, providing valuable insights for GS Paper 3 in UPSC Mains answer writing.

    _

    Let’s learn!

    Why in the News?

    This year, India experienced its hottest February in 124 years. The India Meteorological Department (IMD) has warned that March will also be hotter than usual, with more days of extreme heat.

    What are the major wheat-producing states in India?

    • Uttar Pradesh is the largest wheat producer, contributing approximately 31.77% to India’s total wheat output. In the crop year 2023-24, it produced around 35.34 million tonnes of wheat from an area of 9.53 million hectares. Example: Districts like Meerut, Muzaffarnagar, and Agra are significant contributors, utilizing both traditional and modern agricultural practices to achieve high yields.
    • Madhya Pradesh ranks second, accounting for about 20.98% of the national production. The state produced approximately 22.58 million tonnes in the same crop year. Example: The Malwa plateau region, particularly districts like Indore and Ujjain, benefits from black soil and moderate temperatures, which are conducive to wheat cultivation.
    • Punjab Known as the “Granary of India,” contributes around 13.87% to India’s wheat output, with a production of about 17.74 million tonnes. Example: Major districts such as Amritsar and Ludhiana utilize advanced farming techniques and well-developed irrigation systems to maintain high productivity levels.

    Why is wheat primarily grown in these regions?

    • Agro-Climatic Conditions – These states have a cool winter and warm summer, which is ideal for wheat cultivation. The Rabi season (sown in November-December, harvested in March-April) aligns perfectly with the climate. Example: The Malwa plateau in Madhya Pradesh benefits from moderate temperatures that support high wheat yields.
    • Fertile Soil – These regions have alluvial and black soil, which retain moisture and provide essential nutrients for wheat growth. The soil is well-suited for irrigated farming. Example: The Indo-Gangetic plains of Uttar Pradesh and Punjab have deep, fertile alluvial soil, which supports extensive wheat cultivation.
    • Irrigation Facilities – These states have well-developed canal and groundwater irrigation systems, ensuring a stable water supply for wheat crops, which require controlled irrigation. Example: Punjab’s extensive canal network, supported by the Bhakra Nangal Dam, ensures year-round irrigation, enabling high wheat productivity.

    Why is extreme heat during the wheat harvest season a serious concern for India’s food security and economy?

    • Reduced Wheat Yield: Extreme heat accelerates wheat ripening, leading to shorter grain-filling periods and lighter grains. This results in lower overall production, affecting food availability. Example: In 2022, a sudden heatwave in March reduced India’s wheat output from the projected 111 million tonnes to ~107 million tonnes.
    • Lower Grain Quality: High temperatures increase protein content but reduce starch accumulation, making wheat harder and affecting its milling quality. Example: Farmers in Punjab and Haryana reported lower market prices in 2023 due to poor grain quality caused by excessive heat.
    • Impact on Food Security: Wheat is a staple for a significant portion of India’s population. Production shortfalls can lead to food shortages, disproportionately affecting low-income communities. The 2025 heatwave poses a serious threat to wheat and rice production, potentially leading to a 6-10% decline, thereby jeopardizing food security for millions.
    • Economic Losses for Farmers: Heat stress forces farmers to spend more on irrigation, fertilizers, and pest control, increasing costs while reducing yields, leading to financial distress. Example: Farmers in Madhya Pradesh and Rajasthan faced heavy losses in 2023 due to unexpected temperature spikes during the grain-filling stage.
    • Disruptions in Procurement & Trade: Lower production impacts government wheat procurement, affecting stock availability for schemes like the Public Distribution System (PDS) and exports. Example: India had to ban wheat exports in 2022 to ensure domestic supply, disrupting global markets and trade agreements.

    What steps have been taken by the Indian government?

    • Minimum Support Price (MSP) – The government announces a minimum support price for wheat every year to ensure farmers get a fair price and are encouraged to produce more. Example: In 2023-24, the MSP for wheat was ₹2,275 per quintal, benefiting farmers in states like Punjab and Uttar Pradesh.
    • Subsidized Inputs – The government provides subsidies on seeds, fertilizers, and electricity to make wheat farming more affordable and increase productivity. Example: Under the National Food Security Mission (NFSM), high-yield variety (HYV) seeds and soil nutrients are distributed to farmers in states like Madhya Pradesh.
    • Irrigation Development – Investment in major irrigation projects has improved water availability, reducing dependence on erratic rainfall. Example: The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has helped expand irrigation in wheat-producing states like Punjab and Uttar Pradesh.
    • Research & Development (R&D) – The Indian Council of Agricultural Research (ICAR) and agricultural universities develop climate-resilient, high-yield wheat varieties to enhance productivity. Example: The DBW-187 wheat variety, developed by ICAR, has helped increase yields in states like Haryana and Madhya Pradesh.
    • Procurement & Storage Infrastructure – The Food Corporation of India (FCI) and state agencies procure large quantities of wheat to ensure food security and stabilize market prices. Example: In 2023, FCI procured over 26 million tonnes of wheat, mainly from Punjab, Haryana, and Uttar Pradesh, ensuring buffer stock availability.

    What adaptation and mitigation strategies can policymakers implement to protect wheat crops from rising temperatures? (Way forward)

    • Development of Heat-Resistant Wheat Varieties: Traditional wheat varieties are vulnerable to heat stress, reducing yield and quality. Example: The Indian Council of Agricultural Research (ICAR) has developed HD 3385, a climate-resilient wheat variety with better heat tolerance, which is expected to perform well in rising temperatures.
    • Shifting Sowing Dates and Crop Calendars: Adjusting the sowing period can help wheat plants escape extreme heat during critical growth phases. Example: The Punjab Agricultural University (PAU) has recommended advancing wheat sowing to mid-October instead of November to allow crops to mature before peak heat in March-April.
    • Improved Irrigation and Water Management: Heat stress increases water loss from soil and plants, requiring efficient irrigation. Example: The “Per Drop More Crop” scheme under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) promotes micro-irrigation (drip and sprinkler systems) to optimize water use in wheat-growing states like Uttar Pradesh and Punjab.
    • Promoting Conservation Agriculture Practices: Practices like zero tillage and residue mulching help retain soil moisture and lower soil temperature. Example: Zero tillage wheat in Haryana and Punjab has shown 5-10% higher yields and reduced water usage compared to conventional plowing methods.
    • Climate Forecasting and Early Warning Systems: Advanced weather predictions help farmers plan for extreme heat events. Example: The Gramin Krishi Mausam Seva (GKMS) provides real-time agro-advisories, warning farmers about heatwaves and recommending protective measures like additional irrigation and mulching.

  • India’s goods Trade Deficit at a 42-month low 

    Why in the News?

    India’s goods trade deficit has dropped to a 42-month low of $14.05 billion in February 2025, driven by reduced imports of gold, silver, and crude oil, according to the latest data from the Ministry of Commerce and Industry.

    Key Insights from February 2025 Trade Data

    • Exports: Goods exports amounted to $36.9 billion in February 2025.
    • Imports: Merchandise imports fell to a 22-month low of $50.9 billion, primarily due to lower demand for gold, silver, and crude oil.
    • Gold and Silver Imports: The value stood at $2.7 billion, the lowest since June 2024.
    • Crude and Petroleum Imports: Reduced to $11.89 billion, marking the lowest level since July 2023.
    • On a year-on-year basis, exports dipped by 10.84% in February 2025, partially due to the base year effect of a leap month.
      • However, imports shrank by 16.3% compared to February 2024.

    Impact of Lower Trade Deficit on India’s Economy

    • Stronger Currency: A lower trade deficit reduces demand for foreign currencies, leading to an appreciation of the Indian Rupee. This makes imports cheaper, benefiting consumers and businesses.
    • Improved Current Account Balance: The lower trade deficit positively impacts India’s balance of payments, reducing dependence on external borrowing or foreign investments, and contributing to financial stability.
    • Boost to Domestic Production: A decrease in imports encourages local manufacturing and reduces reliance on foreign products, stimulating economic growth and creating jobs.
    • Growth in Exports: The reduced deficit reflects a higher level of exports, improving India’s foreign exchange reserves and supporting industrial output.
    • Reduced Inflation: With fewer imports, particularly of essential goods like crude oil and gold, prices of imported goods stabilize, helping reduce inflationary pressures in the economy.
    • Better Fiscal Health: A lower trade deficit leads to less reliance on external financing, helping the government maintain fiscal stability and potentially improve credit ratings.
    • Positive Investor Sentiment: A smaller trade deficit enhances investor confidence, attracting Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI), boosting economic development.
    • Focus on Self-Reliance: Reduced imports drive self-reliance, encouraging domestic production, and decreasing dependency on imports for essential goods and services.

    PYQ:

    [2020] With reference to the international trade of India at present, which of the following statements is/are correct?

    1. India’s merchandise exports are less than its merchandise imports.

    2. India’s imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years.

    3. India’s exports of services are more than its imports of services.

    Select the correct answer using the code given below:

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

     

  • World’s first ‘Supersolid’ created from Light

    Why in the News?

    In a groundbreaking achievement, Italian researchers have successfully transformed light into a supersolid for the first time in history.

    About Supersolid

    • A supersolid is a rare state of matter that behaves like both a solid and a liquid at the same time.
    • While it maintains a rigid structure, similar to a solid, it can also flow like a liquid without any internal friction.
    • How was a supersolid created?
      • Researchers made a supersolid by combining light and matter.
      • They used polaritons (a mix of light and particle pairs called excitons) to create this new state of matter.
      • When these polaritons reach their lowest energy, they form the supersolid that behaves like both a solid and a liquid.
    • Features of a Supersolid:
      • Dual Nature: A supersolid is solid in structure but can also flow like a liquid.
      • Quantum Coherence: The particles inside a supersolid work together in a special way because of quantum mechanics, creating unique behaviors.
      • Zero Viscosity: It moves without any resistance, just like a superfluid, meaning it can flow freely even though it’s solid.
      • Temperature Dependency: Supersolids only form at extremely low temperatures (close to absolute zero, or -273.15°C).

    Applications of Supersolids

    • Quantum Computing: Supersolids could help improve the performance of quantum computers, making them more stable.
    • Superconductors: They might be used to create materials that allow zero-resistance electricity, improving energy transmission.
    • Frictionless Lubricants: Supersolids could lead to frictionless lubricants, making machinery work more efficiently and last longer.
    • Fundamental Physics: Studying supersolids helps us understand quantum physics and how particles behave under extreme conditions.
    • Material Science: Supersolids could help create new materials for advanced technology, including computers, sensors, and energy storage.

  • Air Pollution will Lower India’s Solar Generation Capacity: Study

    Why in the News?

    A new study by IIT Delhi, published in Environmental Research Letters (November 2024), reveals that air pollution and climate change are undermining solar panel efficiency in India.

    Key Findings of the IIT Delhi Study

    • Efficiency Loss Forecast:
      • Scenario 1 (Moderate climate efforts): Solar panel efficiency is projected to decline by more than 2.3% by 2041-2050.
      • Scenario 2 (Weak climate action, strong air pollution control): Efficiency drops by 2.3%, amounting to at least 840 GWh loss annually.
    • Primary Causes:
      • Solar radiation decline is the biggest factor.
      • Temperature increase follows closely, with a 2°C rise in cell temperature predicted by mid-century.
      • Wind speed variations have minimal but present impact.
    • Kerala and Northeast regions could see higher solar potential due to reduced cloud cover, offering opportunities for future solar investments.

    India’s Solar Capacity

    • India, is the 5th-largest solar power producer globally.
    • India has achieved a significant milestone with a total installed solar capacity of 100.33 GW as of January 31, 2025.
    • India’s solar capacity has increased 35 times in the past decade, growing from 2.82 GW in 2014 to 100 GW in 2025.
    • PM SuryaGhar Muft Bijli Yojana has been a key driver in promoting rooftop solar, with nearly 9 lakh rooftop installations already completed.
    • A record 24.5 GW of solar capacity was added in 2024, more than doubling the installations compared to 2023.
    • In 2024, 18.5 GW of utility-scale solar capacity was installed, a nearly 2.8 x increase compared to the previous year.
    • Rajasthan, Gujarat, Tamil Nadu, Maharashtra, and Madhya Pradesh are the top-performing states, contributing significantly to India’s solar installations.
    • India’s solar module production capacity has surged from 2 GW in 2014 to 60 GW in 2024, establishing the country as a global leader in solar manufacturing.

    PYQ:

    [2020] India has immense potential for solar energy though there are regional variations in its developments. Elaborate.

    [2018] With reference to solar power production in India, consider the following statements:

    1. India is the third largest in the world in the manufacture of silicon wafers used in photovoltaic units.

    2. The solar power tariffs are determined by the Solar Energy Corporation of India.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

  • What Laws govern Import of Gold into India?

    Why in the News?

    India is facing a rise in gold smuggling due to higher global gold prices, with a recent high-profile case where an actor was arrested for smuggling over 14 kg of gold from Dubai to Bengaluru.

    Laws Against Gold Smuggling in India:

    • Gold smuggling is regulated by the Customs Act, 1962.
      • Sections 111 & 112 allow confiscation and fines for illegal imports.
      • Section 135 provides up to 7 years imprisonment if the smuggled goods’ value exceeds ₹1 lakh.
    • Under the Baggage Rules, 2016, men abroad for 1+ year can bring 20g duty-free (₹50,000 cap); women can bring 40g (₹1 lakh cap).
    • Customs duty rates:
      • 3% duty: Men (20-50g), Women (40-100g).
      • 6% duty: Men (50-100g), Women (100-200g).
      • 10% duty: Beyond these limits.
    • The Bharatiya Nyaya Sanhita, 2023, punishes organized smuggling with 5 years to life imprisonment under Section 111.
    • Under UAPA Section 15, smuggling that affects India’s monetary stability is treated as a terrorist act, attracting life imprisonment.
    • The Supreme Court (2003) ruled that non-compliant imports are prohibited goods, liable for confiscation and punishment.

    India’s Gold Imports:

    • India is the second-largest gold consumer after China, with gold making up 5% of total imports, mostly for the jewellery industry.
    • Major import sources: Switzerland (40%), UAE (16%), South Africa (10%).
    • Budget 2024 reduced import duty from 15% to 6% to control smuggling and balance trade.
    • In April-July 2024-25, gold imports dipped by 4.23%, easing pressure on the Current Account Deficit (CAD).
    • April-June 2024:
      • Gems & jewellery exports: US$ 6.87 bn.
      • Diamonds: 53.47%, gold jewellery: 32.39% (US$ 608 mn), silver jewellery: 3.36%.
      • Gold jewellery imports: US$ 88.61 mn (June 2024).
    • Major production hubs: Surat, Mumbai, Jaipur, Thrissur, Nellore, Delhi, Hyderabad, Kolkata.
    • India targets US$ 100 billion gems & jewellery exports by 2027, making it a focus sector for export promotion.

    PYQ:

    [2016] What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’?

    1. To bring the idle gold lying with Indian households into the economy.

    2. To promote FDI in the gold and jewellery sector.

    3. To reduce India’s dependence on gold imports.

    Select the correct answer using the code given below:

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

     

  • India’s 1st Exploration Licence Auction for Critical Minerals

    Why in the News?

    Union Coal and Mines Minister has launched the first-ever auction of Exploration Licences (ELs) for 13 critical mineral blocks.

    About the Critical Minerals Exploration Policy

    • India’s Critical Minerals Policy is designed to reduce import dependence, boost domestic production, and ensure secure access to essential minerals required for modern technology, defense, and clean energy.
    • It is driven by amendments to the Mines and Minerals (Development and Regulation) Act (MMDR), 2023, introduces systematic exploration, private sector participation, and transparent auctions.
    • Key Features of the Policy:
      • Private Sector Involvement: Allows private companies to explore and develop mineral blocks through Exploration Licences (ELs).
      • Transparent Auction Process: Introduces an auction-based allocation of exploration blocks, ensuring efficiency and competition.
      • Focus on Deep-Seated Minerals: Encourages the exploration of hard-to-extract minerals like lithium, rare earth elements (REEs), and platinum group metals (PGMs).
      • Financial Support for Exploration: Provides risk-sharing mechanisms, where 50% of exploration costs are borne by the government if minerals are not found.

    What are Critical Minerals?

    • Critical minerals are essential elements required for high-tech industries, clean energy technologies, and national security.
    • They are however at risk of supply chain disruptions due to their limited availability or geopolitical factors.
    • India’s 30 Critical Minerals (2023 List) includes: Lithium, Cobalt, Nickel, Graphite, Rare Earth Elements (REEs), Platinum Group Elements (PGEs), Silicon, Phosphorous, Potash, Tin, Tungsten, Vanadium, Zirconium, and others.

    Uses of Critical Minerals:

    • Electronics & Semiconductors: Copper, gallium, germanium, indium.
    • Electric Vehicles & Batteries: Lithium, cobalt, nickel, graphite.
    • Renewable Energy Technologies: Rare Earth Elements (REEs) for wind turbines and solar panels.
    • Aerospace & Defense: Titanium, tungsten, platinum group elements (PGEs).

    PYQ:

    [2019] With reference to the management of minor minerals in India, consider the following statements:

    1. Sand is a ‘minor mineral’ according to the prevailing law in the country.
    2. State governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
    3. State Governments have the power to frame rules to prevent illegal mining of minor minerals.

    Which of the statements given above is/are correct?

    (a) 1 and 3

    (b) 2 and 3

    (c) 3 only

    (d) 1, 2 and 3