💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF

GS Paper: GS3

  • New GDP Series to Better Capture Economy

    Why in the News

    The Ministry of Statistics and Programme Implementation will release a new GDP series on February 27, 2026, updating the base year to 2022-23 and introducing major data and methodological improvements.

    Key Changes

    1. Base Year Updated

    • From 2011-12 to 2022-23
    • Reflects current economic structure including digitalisation and formalisation

    2. Better Corporate & Government Data

    • Sector-wise allocation based on actual activity share
    • Inclusion of government housing services
    • Expanded coverage of autonomous and local bodies

    3. Stronger Household & Informal Sector Estimates

    • Annual use of ASUSE and PLFS data
    • More granular measurement of private consumption

    4. New Data Sources

    • Wider use of GST data for output estimation
    • Banking data from Reserve Bank of India
    • Actual NBFC data instead of proxy estimates

    5. Technical Upgrade

    • Use of double deflator method for better real GDP estimation

    Prelims Takeaway

    • GDP and GVA series now aligned to 2022-23 base year
    • GST integrated more deeply in estimation
    • Informal and unincorporated sector measurement improved
    • Double deflation enhances accuracy of real growth calculation
    [2013] The national income of a country for a given period is equal to the (a) total value of goods and services produced by the nationals 

    (b) sum of total consumption and investment expenditure 

    (c) sum of personal income of all individuals 

    (d) money value of final goods and services produced

  • DGCA Revises Airfare Refund and Cancellation Rules

    Why in the News

    The Directorate General of Civil Aviation has revised airfare refund and cancellation rules to address rising passenger grievances. The new rules will come into effect from March 26, 2026.

    Why the Changes Were Introduced

    • DGCA stated that refund related complaints have become a major source of grievance, including:
      • Delayed refunds
      • Airlines adjusting refunds against future travel
      • Disputes over refund value

    Key Changes in the New Rules

    1. Faster Refunds for Agent Bookings

    • Earlier: 30 working days
    • Now: 14 working days
    • Applies to tickets booked through travel agents and online portals.

    2. Extended “Look-In” Period

    • The “look-in” period allows cancellation or amendment without charge.
    • Earlier: 24 hours
    • Now: 48 hours
    • However, conditions changed:
    • Must be booked at least:
      • 7 days before departure for domestic flights
      • 15 days before departure for international flights
    • Applies only to tickets booked directly via airline websites.
    • Not automatically applicable for bookings via agents or portals.

    3. Name Correction Window

    • Free correction allowed within 24 hours.
    • Now applies only if ticket is booked directly through airline website.
    • Bookings via agents may attract charges even within 24 hours.

    4. New Medical Emergency Clause

    • Refund or credit shell allowed in case of:
      • Hospitalisation of passenger
      • Hospitalisation of family member on same PNR
    • For other medical cases:
      • Refund subject to medical fitness certification from an airline aerospace medicine specialist or DGCA empanelled expert.

    What Remains Unchanged

    • Most other refund provisions remain the same.
    • Government maintains non interference in airline commercial pricing.
    • Benchmarks fixed to protect consumer interest.

    Prelims Pointers

    • DGCA functions under Ministry of Civil Aviation.
    • It regulates safety, licensing and consumer standards in aviation.
    • “Look-in” period allows free cancellation within a limited time after booking.
    • Refund timelines are now 14 working days for agent bookings.
    • Medical emergency clause newly introduced in 2026 revision.
    [2025] With reference to the Government of India, consider the following information: Organization : Some of its functions : It works under I. Directorate of Enforcement : Enforcement of the Fugitive Economic Offenders Act, 2018 : Internal Security Division–I, Ministry of Home Affairs 

    II. Directorate of Revenue Intelligence : Enforces the provisions of the Customs Act, 1962 : Department of Revenue, Ministry of Finance 

    III. Directorate General of Systems and Data Management : Carrying out big data analytics to assist tax officers for better policy and nabbing tax evaders : Department of Revenue, Ministry of Finance 

    In how many of the above rows is the information correctly matched?

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

  • What are carbon capture and utilization technologies?

    Why in the News?

    Carbon Capture and Utilisation (CCU) has gained attention as India advances its Draft 2030 CCUS Roadmap and aligns industrial policy with its Net Zero 2070 commitment. With India remaining the world’s third-largest CO₂ emitter and emissions concentrated in hard-to-abate sectors like cement and steel, CCU is being positioned as a key strategy to decarbonise industry while sustaining economic growth.

    What is Carbon Capture and Utilisation (CCU) and how does it function within the carbon cycle?

    1. Definition: Captures carbon dioxide (CO₂) from industrial flue gases or ambient air and converts it into usable products.
    2. Source of Capture: Extracts carbon dioxide from cement plants, steel units, power plants, chemical industries, or through Direct Air Capture (DAC).
    3. Conversion Pathways: Transforms carbon dioxide into fuels (methanol, synthetic fuels), chemicals (olefins), building materials (concrete curing), and polymers.
    4. Difference from CCS: Utilises carbon for economic value instead of permanent geological storage.
    5. Circular Carbon Economy: Recycles carbon within production systems, reducing fresh fossil extraction.

    Why has Carbon Capture and Utilisation become a governance priority in India’s decarbonisation strategy?

    1. Emission Profile: India ranks as the third-largest CO₂ emitter, with emissions concentrated in power generation, cement, steel, and chemicals.
    2. Hard-to-Abate Sectors: Industrial processes remain inherently carbon-intensive despite renewable penetration.
    3. Net-Zero Alignment: Supports India’s Net Zero 2070 target and Long-Term Low Emissions Development Strategy (LT-LEDS).
    4. Circular Economy Transition: Converts waste carbon into economic inputs, strengthening resource efficiency.
    5. Industrial Competitiveness: Enables low-carbon industrial exports amid global carbon border adjustment measures.

    How does CCU reshape industrial policy and value chains in India?

    1. Carbon as Feedstock: Converts CO₂ into fuels, chemicals, lightweight concrete blocks, olefins, and specialty chemicals.
    2. Value Chain Creation: Integrates capture, transport, conversion, and downstream manufacturing clusters.
    3. Bio-CCU Innovation: Organic Recycling Systems Limited (ORSL) leads India’s first pilot-scale Bio-CCU platform converting CO₂ from biogas into bio-alcohols.
    4. Cement Sector Adoption: JK Cement collaborates on CCU to capture CO₂ for concrete applications.
    5. Private Sector Participation: Ambuja Cements and Adani Group pilot Indo-Swedish CCU technologies at IIT Bombay.

    What institutional and regulatory measures has India initiated to support CCU deployment?

    1. Research Roadmap: Department of Science and Technology develops dedicated CCU research and development framework.
    2. Draft 2030 CCUS Roadmap: Ministry of Petroleum and Natural Gas identifies projects suitable for CCU deployment.
    3. Pilot Demonstration Projects: Facilitates early-stage technology validation across cement and energy sectors.
    4. Cluster-Based Approach: Recognizes need for co-located industrial clusters for CO₂ transport and utilisation.
    5. Policy Gap: Lacks carbon pricing, standards, certification mechanisms, and demand guarantees for CO₂-derived products.

    How do international policy models shape India’s CCU strategy?

    1. EU Bioeconomy Strategy: Integrates CCU into a circular economy framework for fuels, chemicals, and materials.
    2. EU Circular Economy Action Plan: Links CCU to sustainability and resource efficiency goals.
    3. U.S. Incentive Model: Combines tax credits and funding to scale CO₂-derived fuels and chemicals.
    4. Industrial Trials: ArcelorMittal (Belgium) and Mitsubishi Heavy Industries collaborate with D-CRBN to convert CO₂ into carbon monoxide for steel and chemicals.
    5. UAE Model: Al Reyadah project integrates CCU with green hydrogen for CO₂-to-chemicals hubs.

    What governance and economic risks constrain large-scale CCU adoption in India?

    1. Cost Competitiveness: Capturing, purifying, and converting CO₂ remains energy-intensive and expensive.
    2. Market Viability: CO₂-derived products struggle against cheaper fossil-based alternatives.
    3. Infrastructure Deficit: Requires reliable CO₂ transport networks and integrated industrial clusters.
    4. Regulatory Uncertainty: Absence of standards and certification creates investor hesitation.
    5. Demand-Side Weakness: Limited market signals reduce private capital mobilisation.

    Does CCU advance constitutional environmental principles and climate accountability?

    1. Article 48A: Strengthens State responsibility to protect and improve the environment.
    2. Article 51A(g): Encourages responsible environmental stewardship.
    3. Intergenerational Equity: Supports sustainable industrial growth without locking in emissions.
    4. Polluter Responsibility: Encourages industry-led carbon management mechanisms.

    Conclusion

    Carbon Capture and Utilisation (CCU) bridges the gap between industrial growth and climate responsibility. It enables decarbonisation of hard-to-abate sectors while supporting circular economy and energy security objectives. However, large-scale deployment requires cost competitiveness, regulatory clarity, infrastructure development, and market incentives. Its effectiveness will depend on coordinated policy action, technological scaling, and institutional accountability aligned with India’s Net Zero 2070 pathway.

    PYQ Relevance

    [UPSC 2022] Discuss global warming and mention its effects on the global climate. Explain the control measures to bring down the level of greenhouse gases which cause global warming, in the light of the Kyoto Protocol, 1997.

    Linkage: Carbon Capture and Utilisation (CCU) directly fits under Kyoto Protocol-based mitigation mechanisms aimed at reducing industrial greenhouse gas emissions. It represents a technology-driven control measure to decarbonise hard-to-abate sectors while aligning with global climate commitments.

  • How are India firms training LLMs?

    Why in the News?

    India has made its first major push into foundational AI model training by releasing domestically developed 35B and 105B parameter LLMs using subsidised Graphics Processing Unit (GPU) infrastructure under the IndiaAI Mission. With over 36,000 GPUs commissioned and 4,096 allocated to select firms, the move marks a strategic shift from dependence on foreign frontier models to state-supported indigenous AI capability.

    Why Is Training Large Language Models on Indian Soil Financially and Logistically Challenging?

    1. GPU Dependence: Requires high-end Graphics Processing Units for model training and inference; combined hardware and electricity costs run into millions of dollars.
    2. Electricity Intensity: Compute-heavy training increases power consumption and operational expenses.
    3. Capital Requirements: Large upfront investment limits private-sector experimentation in foundational AI.
    4. Data Constraints: Internet training corpora disproportionately represent English and European languages.
    5. Token Inefficiency: Indian language tasks require more tokens due to translation layers, increasing inference cost.

    How Has the IndiaAI Mission Lowered Entry Barriers for Domestic AI Firms?

    1. Public Compute Infrastructure: Commissioned 36,000+ GPUs in domestic data centres operated by firms such as Yotta.
    2. Cluster Allocation: Provided 4,096 GPUs through a shared government compute facility.
    3. Subsidised Access: Enabled startups and researchers to train and deploy models at relatively nominal fees.
    4. Institutional Facilitation: Ministry of Electronics and Information Technology supports long-term indigenous AI capacity.
    5. Ecosystem Development: Encourages domestic research, experimentation, and AI entrepreneurship.

    How Does the Mixture of Experts (MoE) Architecture Improve Cost Efficiency in Model Deployment?

    1. Selective Activation: Activates only a fraction of parameters during inference rather than the full network.
    2. Compute Reduction: Lowers electricity consumption compared to dense models.
    3. Inference Efficiency: Enables large models such as 105B parameters to run at lower operational cost.
    4. Scalable Design: Allows domestic firms to optimise performance without matching trillion-parameter scale.
    5. Cost Competitiveness: Enhances feasibility of AI deployment in education, healthcare, and governance contexts.

    Does Parameter Size Alone Determine Strategic AI Capability?

    1. Model Scale: Domestic models at 35B and 105B parameters remain smaller than global frontier systems.
    2. Contextual Alignment: Designed for Indian languages and domestic sectoral use.
    3. Sector-Specific Model: A 17B multilingual model developed for education and healthcare applications.
    4. Incremental Scaling Strategy: Prioritises contextual performance before expanding model size.
    5. Capability Gap: Comparative benchmarking with frontier systems remains limited.

    How Does Linguistic Data Imbalance Affect Digital Inclusion?

    1. Language Dominance: English and European languages dominate global internet datasets.
    2. Indian Language Underrepresentation: Limits model accuracy in vernacular contexts.
    3. Translation Dependence: Machine translation remains inferior to native-language modelling.
    4. Governance Impact: Weak vernacular performance may affect citizen-facing digital services.
    5. Inclusion Objective: Indigenous LLMs aim to strengthen equitable AI access.

    What Transparency and Accountability Concerns Arise from Publicly Funded AI Infrastructure?

    1. Open-Source Ambiguity: Models described as open but not fully accessible on major global platforms.
    2. Limited Independent Scrutiny: Restricted external evaluation affects benchmarking.
    3. Public Investment Oversight: Large-scale GPU subsidies require measurable performance assessment.
    4. Benchmark Transparency: Absence of publicly standardised comparison metrics.
    5. Energy Governance: Limited disclosure of sustainability audits for compute-intensive infrastructure.

    Way Forward: Strengthening Indigenous AI Capacity

    1. Transparent Benchmarking: Establishes clear performance metrics for publicly funded LLMs against global standards to ensure accountability.
    2. Green Compute Standards: Mandates energy-efficiency norms and renewable integration for GPU-intensive data centres.
    3. Vernacular Data Expansion: Builds high-quality Indian language datasets through public–private collaboration.
    4. Outcome-Linked Subsidy: Links GPU allocation and funding to measurable innovation and adoption outcomes.
    5. Regulatory Framework: Defines standards for data governance, algorithmic transparency, and institutional accountability.

    Conclusion

    India’s entry into foundational LLM training marks a shift from AI consumption to domestic capability creation. Public compute subsidies under the IndiaAI Mission reduce entry barriers but require transparent benchmarking, fiscal oversight, and sustainability safeguards. Long-term competitiveness will depend on strengthening vernacular data ecosystems, improving cost-efficient architectures, and institutionalising regulatory accountability.

    PYQ Relevance

    [UPSC 2023] Introduce the concept of Artificial Intelligence (AI). How does AI help clinical diagnosis? Do you perceive any threat to privacy of the individual in the use of AI in healthcare?

    Linkage: Indigenous LLM development strengthens AI capability for governance and sectoral applications such as healthcare diagnostics. It simultaneously raises concerns of data protection, algorithmic transparency, and privacy, core issues highlighted in the 2023 AI question.

  • Land Use Change Reshaping Spider Communities in the Himalayas

    Why in the News

    A new study published in Insect Conservation and Diversity by researchers from the Wildlife Institute of India finds that land use change and elevation are significantly reshaping spider communities in the north western Indian Himalayas, potentially reducing ecosystem resilience.

    What Did the Study Examine?

    • Surveyed spiders along an elevational gradient of 1,500 to 4,500 metres in Himachal Pradesh.
    • Compared three land use types:
      • Forests
      • Agricultural lands
      • Human dominated regions
    • Recorded:
      • 2,936 individuals
      • 126 species
      • 65 genera
      • 26 families

    What is Functional Diversity?

      • Functional diversity refers to the ecological roles species perform, rather than just counting the number of species.
    • Examples of spider traits studied:
        • Circadian activity
        • Hunting strata
        • Ballooning ability
        • Hunting guild
        • Prey range
    • Higher functional diversity means:
      • Greater ecological stability
      • Better pest control
      • More resilience against disturbances

    Key Findings

    • Decline with Elevation: Species richness and functional redundancy decrease with altitude, with a critical threshold around 3,000 to 3,500 metres near the Himalayan treeline, increasing ecosystem vulnerability.
    • Agricultural Homogenisation: Functional diversity remains stable across elevations in agricultural areas, indicating trait homogenisation due to intensification, with dominance of ground dwelling spiders like Lycosidae.
    • Forest Elevational Gradients: Forest ecosystems show clear trait shifts with altitude, with communities largely dominated by cathemeral species.
    • Human Dominated Landscapes: Greater trait richness at lower elevations supports the intermediate disturbance hypothesis, with presence of synanthropic species adapted to human environments.

    Ecological Importance of Spiders

    • Among the most voracious arthropod predators.
    • Consume over 600 million tonnes of insects annually.
    • Help regulate pest populations and disease vectors.
    • Act as bioindicators of habitat disturbance.
    [2011] The Himalayan Range is very rich in species diversity. Which one among the following is the most appropriate reason for this phenomenon? (a) It has a high rainfall that supports luxuriant vegetative growth. 

    (b) It is a confluence of different biogeographical zones. 

    (c) Exotic and invasive species have not been introduced in this region. 

    (d) It has less human interference.

  • New GDP Series Will Not Use UPI Data

    Why in the News

    The Ministry of Statistics and Programme Implementation has decided not to use Unified Payments Interface transaction data in India’s new GDP series with base year 2022 to 23, citing instability and classification limitations.

    Why Was UPI Data Considered?

    • UPI transaction data from the National Payments Corporation of India provides:
    • Value of transactions in rupees
    • Volume of transactions
    • Merchant category codes
    • It was proposed as a non traditional indicator to estimate Private Final Consumption Expenditure (PFCE), a key component of GDP from the expenditure side.

    Why Was It Rejected?

    • Overlapping Merchant Categories: Merchant codes such as 5411 for supermarkets cover multiple product types, making it difficult to classify transactions under specific PFCE consumption heads.
    • Non Consumption Transactions Included: Certain categories like debt collection agencies do not represent household consumption but account for notable transaction value.
    • Unstable and Incomplete Data Coverage: Continued reliance on cash and ongoing digital transition mean UPI trends do not yet fully capture overall consumption patterns. The Advisory Committee suggested reconsideration once data stabilises.

    About GDP Estimation in India

    • India calculates GDP using:
      • Production or Income Approach
      • Expenditure Approach
      • PFCE forms more than half of India’s GDP.
    • Under the new series:
      • Base year updated from 2011 to 12 to 2022 to 23
      • PFCE items expanded from 46 to 128
      • Published data will cover 49 items across 13 categories

    Alternative Data Sources Being Used

    • Goods and Services Tax data
    • Vahan vehicle registration data
    • Sector specific indicators
    [2013] The national income of a country for a given period is equal to the (a) total value of goods and services produced by the nationals 

    (b) sum of total consumption and investment expenditure 

    (c) sum of personal income of all individuals 

    (d) money value of final goods and services produced

  • Cassava Harvest in Punjab Signals Shift Beyond Paddy

    Why in the News

    • An experimental cultivation of cassava on three acres in Malsian village, Jalandhar, has yielded promising results, signalling Punjab’s push toward crop diversification and water saving alternatives to paddy.
    • The initiative involved scientists from the ICAR Central Tuber Crops Research Institute and experts from Punjab Agricultural University.

    What is Cassava?

    • Scientific name: Manihot esculenta
    • Native to South America
    • Widely cultivated in Africa and South India
    • Gluten free tuber crop
    • High starch content
    • India currently grows cassava mainly in Kerala and Tamil Nadu.

    Why Punjab is Exploring Cassava?

    • Water Crisis

        • Cassava requires nearly one tenth the water used for paddy.
        • Only first two months need irrigation.
        • Highly drought tolerant.
    • Climate Resilience

        • Tolerates dry conditions.
        • Tubers can remain in soil after maturity without rotting.
        • Suitable if sown in early March in Punjab conditions.
    • Economic Returns

      • Yield reported: about 250 quintals per acre green weight.
      • Estimated income: ₹2.5 to ₹2.6 lakh per acre.
      • Compared to wheat plus paddy: about ₹90,000 per acre.
    [2025] Consider the following pairs: Plant: Description 

    I. Cassava: Woody shrub 

    II. Ginger: Herb with pseudostem 

    III. Malabar spinach: Herbaceous climber 

    IV. Mint: Annual shrub 

    V. Papaya: Woody shrub 

    How many of the above pairs are correctly matched? 

    (a) Only two   (b) Only three   (c) Only four   (d) All the five

  • [24th february 2026] The Hindu OpED: India’s energy shift through the green ammonia route

    PYQ Relevance

    [UPSC 2022] Do you think India will meet 50 percent of its energy needs from renewable energy by 2030? Justify your answer. How will the shift of subsidies from fossil fuels to renewables help achieve the above objective?

    Linkage: Green ammonia auctions operationalise renewable energy targets through industrial decarbonisation. The subsidy shift logic mirrors SIGHT incentives and viability gap funding for green hydrogen.

    Mentor’s Comment

    India’s green hydrogen strategy has entered an implementation phase through competitive green ammonia auctions. The Solar Energy Corporation of India (SECI) has operationalised aggregated demand under the National Green Hydrogen Mission, securing long-term offtake contracts at prices nearly 40-50% lower than earlier global benchmarks. The development signals a structural shift from policy intent to market creation and positions India as a price-setter in emerging clean fuel markets.

    Why in the News?

    At India Energy Week 2026, the government operationalised its clean energy vision through SECI’s large-scale green ammonia auctions under the SIGHT programme, offering 10-year fixed-price contracts. 

    What is Green Ammonia?

      1. Green ammonia is a 100% renewable, carbon-free fertilizer and energy carrier produced by combining nitrogen from the air with green hydrogen (generated via water electrolysis using solar or wind energy). 
      2. Unlike traditional “grey” ammonia that uses fossil fuels, green ammonia emits zero, offering a sustainable solution for agriculture, energy storage, and marine fuel.
    • Production: Water is split into hydrogen and oxygen using renewable electricity. This green hydrogen is then combined with nitrogen using the Haber-Bosch process to produce ammonia.

    What is the SECI Green Ammonia Auction Model?

    The SECI Green Ammonia Auction Model, under the National Green Hydrogen Mission’s SIGHT Scheme (Mode 2A), is a competitive, cost-based e-reverse auction for procuring green ammonia. It is designed to bridge the price gap with conventional ammonia. It features a 10-year, fixed-price contract, with SECI acting as an intermediary to facilitate demand, resulting in record-low prices around ₹55.75/kg as of mid-2025

    Key Features of the SECI Green Ammonia Model:

    1. SIGHT Scheme Mode 2A: The auction is part of the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme, which provides financial incentives for producing and supplying green ammonia, implemented by SECI.
    2. Intermediary Procurement Model: SECI acts as an intermediary, bidding for and procuring green ammonia from producers and supplying it to fertilizer companies, addressing the “chicken-and-egg” demand-supply challenge.
    3. Competitive Bidding & Reverse Auction: The process involves e-bidding followed by an e-reverse auction to ensure the most competitive, market-driven pricing.
    4. Long-Term Contracts: Green Ammonia Purchase Agreements (GAPA) are signed for a period of 10 years, providing certainty to developers and investors.
    5. Payment Security Mechanism: A robust, built-in payment security mechanism ensures the financial viability of projects and reassures stakeholders.
    6. Aggregated Demand: The model aggregates demand for green ammonia, with planned auctions covering a cumulative capacity of over 7 lakh MT per annum, promoting economies of scale.
    7. Record-Low Pricing: The first auction in 2025 achieved a significant breakthrough, with prices dropping to roughly ₹55.75/kg, making green ammonia increasingly competitive with traditional, gray ammonia.

    How Does the Green Ammonia Auction Model Reflect a Governance Shift from Subsidy to Market Creation?

    1. Aggregated Demand Mechanism: SECI pooled demand of up to 7,24,000 tonnes annually across 13 fertiliser plants, reducing fragmented procurement and enhancing scale efficiency.

    2. Long-term Offtake Contracts: Provides 10-year fixed-price agreements, ensuring revenue certainty and reducing investor risk.
    3. Competitive Bidding Framework: Attracted 15 bidders, with 7 successful awardees, strengthening transparency and price discovery.
    4. Production Subsidy Support: Includes viability gap support of ₹8.82/kg, ₹7.06/kg, and ₹5.3/kg over three years under SIGHT.
    5. Outcome: Establishes a cost-competitive domestic green ammonia market.

    How Does India’s Price Discovery Compare with Global Benchmarks and What Does it Indicate?

    1. Price Range Achieved: ₹49.75-₹64.74/kg ($572-$744/tonne).
    2. Global Benchmark Comparison: Nearly 40-50% lower than H2Global auction prices.
    3. Grey Ammonia Benchmark: Grey ammonia prices reach $515/tonne, narrowing cost gap significantly.
    4. Cost Gap Reduction: Long-term contracts and subsidies reduce transition risks.
    5. Outcome: Positions India as a potential global price influencer in green fuels.

    How Does the Policy Strengthen Energy Security and Reduce Import Vulnerability?

    1. Import Substitution: Contracted volume equals nearly 30% of India’s ammonia imports.
    2. Price Predictability: Fixed-price contracts reduce exposure to global volatility, currency risks, and geopolitical disruptions.
    3. Domestic Value Chain Creation: Integrates renewable energy, storage, hydrogen electrolysis, and ammonia synthesis.
    4. Energy Independence Objective: Aligns with India’s shift from energy security to energy independence.
    5. Outcome: Enhances strategic autonomy in fertiliser and energy sectors.

    What Institutional and Regulatory Innovations Support Market Viability?

    1. Pre-identified Delivery Points: Located near coastal fertiliser plants, enabling maritime logistics and reducing transportation bottlenecks.
    2. Banking and Grid Regulations: Requires harmonised regulations for renewable integration.
    3. Certification Alignment: Necessitates globally accepted green hydrogen certification frameworks.
    4. Risk Mitigation Mechanisms: Long-tenor blended finance and extended offtake agreements enhance bankability.
    5. Outcome: Strengthens institutional accountability and reduces implementation risks.

    How Does Green Ammonia Contribute to India’s Decarbonisation Commitments?

    1. Industrial Decarbonisation: Supports fertiliser sector transition from grey to green ammonia.
    2. Hard-to-Abate Sectors: Enables decarbonisation in shipping, power generation, and heavy industry.
    3. Renewable Integration: Utilises low-cost renewable energy at scale.
    4. National Green Hydrogen Mission Alignment: Operationalises Mission targets through market instruments.
    5. Outcome: Advances India’s Nationally Determined Contributions (NDCs).

    What Implementation Risks Could Affect Long-Term Sustainability?

    1. Financial Risk: High capital intensity of electrolysers and renewable infrastructure.
    2. Technology Risk: Need for hybrid renewable-storage integration.
    3. Regulatory Uncertainty: Grid access, incentives, and safety standards require stability.
    4. Global Competition: Emerging green ammonia producers may affect export competitiveness.
    5. Outcome: Sustained coordination between policymakers, developers, and financiers remains essential.
  • Centre unveils policy to tackle terror threats

    Why in the News?

    The Union Home Ministry has unveiled India’s first National Counter Terrorism Policy and Strategy (PRAHAAR). The policy seeks to criminalise all terrorist acts, disrupt terror financing, deny logistical support, and strengthen coordination across Central and State agencies. The policy marks a structural shift from reactive counter-terror responses to an integrated, ecosystem-based national security framework covering land, air, water, cyber, and financial domains. The move assumes significance amid rising cross-border terrorism, drone-enabled attacks, and digital radicalisation.

    What is the rationale behind this policy?

    1. The move follows the April 22, 2025 Pahalgam terror incident, which exposed vulnerabilities in intelligence coordination and emerging drone misuse. 
    2. Previously, counter-terror responses were largely reactive and dispersed across agencies without a single doctrinal framework. 
    3. The policy is significant because it integrates prevention, detection, prosecution, and financial disruption under one strategy, covering both state and non-state actors. 
    4. It also formally recognises technological threats such as encrypted platforms, cryptocurrency, and dark web logistics, marking a shift from traditional cross-border terror focus to hybrid and networked terror ecosystems.

    What is the doctrinal architecture of PRAHAAR: Pillar-wise Breakdown

    1. P-Prevention of Terror Attacks; Focus: Intelligence-led, proactive neutralisation. It includes
      1. Intelligence Primacy: Intelligence-guided counter-terror approach; threat neutralisation before execution.
      2. MAC & JTFI Framework: Real-time intelligence aggregation through Multi Agency Centre (MAC) and Joint Task Force on Intelligence under IB.
      3. OGW Disruption: Systematic dismantling of Over Ground Worker logistics and recruitment networks.
      4. Cyber Disruption: Targeting online propaganda, recruitment modules, encrypted communication misuse.
      5. Critical Infrastructure Security: Protection of power, railways, aviation, ports, defence, space, atomic energy sectors.
      6. Border Surveillance: Technological tools deployed across land, air and maritime frontiers.
      7. Core Shift: From reactive policing to preventive security architecture.
    2. R-Responses (Swift & Proportionate); Focus: Layered operational response model. It includes:
      1. Local Police as First Responder: Federal structure respected; decentralised operational response.
      2. State ATS & Special Counter terrorism (CT) Units: Specialised anti-terror forces in vulnerable States.
      3. NSG as National Nodal Force: National Security Guard for major attacks and capacity building.
      4. SOP-Based Coordination: Standard Operating Procedures for apex-level coordination via MHA.
      5. CAPF Deployment: Central Armed Police Forces assisting States in counter-terror operations.
      6. High Conviction Emphasis: NIA-led investigations ensuring deterrence through prosecution.
      7. Core Shift: Structured escalation matrix for response.
    3. A-Aggregating Internal Capacities; Focus: Whole-of-Government synergy. It includes:
      1. Modernisation Mandate: Continuous upgradation of weapons, surveillance tools, training modules.
      2. Standardisation Across States: Uniform anti-terror structures, investigation methodologies.
      3. BPR&D Role: Training and best practice dissemination for State Police & CAPFs.
      4. NSG Urban Combat Training: Specialised combat readiness for metropolitan threats.
      5. Resource Gap Identification: Institutional capacity audit and correction
      6. Core Shift: Elimination of silo-based security functioning.
    4. H-Human Rights & Rule of Law Based Processes; Focus: Constitutional legitimacy. It includes:
      1. Legal Framework Anchoring: The Unlawful Activities (Prevention) Act (UAPA), 1967, as principal law; supported by BNS 2023, BNSS 2023, BSA 2023, PMLA 2002, Arms Act 1959, Explosives Act 1908.
      2. Judicial Oversight: Multi-tier judicial review up to the Supreme Court.
      3. Human Rights Act 1993: Protection against rights violations.
      4. International Commitments: Adherence to Universal Declaration of Human Rights (UDHR) 1948 and International Covenant on Civil and Political Rights (ICCPR).
      5. Due Process Safeguards: Appeals and legal redressal mechanisms ensured.
      6. Core Shift: Security operations embedded within constitutional democracy.
    5. A-Attenuating Conditions Conducive to Terrorism; Focus: Addressing root drivers. It includes:
      1. Graded De-radicalisation: Calibrated intervention based on degree of radicalisation.
      2. Community Engagement: Involvement of religious leaders, NGOs, moderate preachers.
      3. Prison Monitoring: Preventing indoctrination within correctional facilities.
      4. Youth Engagement: Constructive programs to prevent extremist recruitment.
      5. Socio-Economic Interventions: Addressing poverty, unemployment, housing and education gaps.
      6. Women & Youth Empowerment Schemes: Scholarships and loan support to reduce vulnerability.
      7. Core Shift: Terrorism treated as socio-psychological and developmental challenge, not merely law-and-order issue.
    6. A-Aligning & Shaping International Efforts; Focus: Transnational cooperation. It includes:
      1. Mutual Legal Assistance Treaties (MLATs) & Extradition Treaties: Legal cooperation for evidence sharing and fugitive return.
      2. Joint Working Groups (JWG): Bilateral intelligence engagement platforms.
      3. UN Designation Support: Pursuit of global terrorist listings.
      4. Agency-to-Agency Cooperation: Intelligence sharing with foreign counterparts.
      5. Global ICT Misuse Countering: Addressing terrorist exploitation of digital ecosystems.
      6. Core Shift: Counter-terror extended beyond national jurisdiction.
    7. R-Recovery & Resilience (Whole-of-Society Approach); Focus: Post-attack stabilisation. It includes:
      1. Public-Private Partnership: Private sector participation in recovery.
      2. Civil Administration Leadership: Reconstruction and restoration.
      3. Psychological Rehabilitation: Doctors, psychologists, civil society involvement.
      4. Community Reintegration: Social healing and confidence rebuilding.
      5. Preventive Reinforcement: Strengthened security measures post-incident.
      6. Core Shift: From counter-terror to societal resilience model.

    How Does the Policy Restructure India’s Counter-Terror Governance Framework?

    1. National Framework Institutionalisation: Establishes India’s first unified counter-terror doctrine integrating Centre-State coordination.
    2. Ecosystem Approach: Targets not only terrorists but also financiers, handlers, recruiters, and facilitators.
    3. Multi-Domain Coverage: Addresses threats across land, air, water, cyber, and financial systems.
    4. Inter-Agency Coordination: Strengthens operational synergy among intelligence, enforcement, and financial monitoring agencies.
    5. Legal Backing: Aims to criminalise all forms of terrorist support infrastructure.

    How Does the Policy Address Cross-Border and State-Sponsored Terrorism?

    1. Recognition of Proxy Warfare: Identifies state and non-state actors targeting India through terrorism.
    2. Cross-Border Networks: Acknowledges foreign handlers coordinating logistics and recruitment.
    3. Global Jihadist Linkages: Notes influence of outfits such as Al-Qaeda and IS in inciting lone-wolf or cell-based violence.
    4. Punjab & J&K Linkages: Recognises drone-based smuggling of arms and narcotics across borders.
    5. Transnational Cooperation: Emphasises international collaboration to counter financing and safe havens.

    How Does the Policy Respond to Emerging Technological Threats?

    1. Drone Regulation: Identifies misuse of drones for smuggling arms and reconnaissance.
    2. Encrypted Platforms: Flags encrypted messaging apps as tools for coordination.
    3. Cryptocurrency Monitoring: Recognises dark web and crypto wallets as terror-financing channels.
    4. Cyber Radicalisation: Targets online propaganda and recruitment networks.
    5. Digital Forensics: Strengthens use of technical intelligence in disruption operations.

    How Does the Policy Strengthen Preventive and Pre-Emptive Mechanisms?

    1. Pre-Emptive Intelligence: Enhances predictive threat assessment models.
    2. Community Engagement: Involves civil society and religious leaders to counter radicalisation.
    3. Youth De-Radicalisation: Focuses on preventing extremist recruitment among youth.
    4. Capacity Building: Improves training of state police forces in counter-terror techniques.
    5. Chemical, Biological, Radiological, Nuclear, and high-yield Explosives (CBRNE) Preparedness: Recognises risks of Chemical, Biological, Radiological, Nuclear, and Explosive materials.

    How Does the Policy Reinforce Institutional Accountability and Federal Balance?

    1. Central-State Synergy: Promotes coordinated response while respecting federal structure.
    2. Role of NIA: Strengthens investigative mandate of the National Investigation Agency in major terror cases.
    3. Legal Standardisation: Ensures uniform procedures across states.
    4. Process Standardisation: Encourages similar and synergistic response frameworks.
    5. Parliamentary Oversight Potential: Opens scope for legislative scrutiny of implementation effectiveness.

    What Are the Regulatory and Legal Implications of the Policy?

    1. Criminalisation Framework: Broadens scope to include logistical and financial support.
    2. Financial Disruption: Targets funding channels through financial intelligence units.
    3. Safe Haven Denial: Focuses on dismantling recruitment and shelter networks.
    4. Surveillance Expansion: Raises concerns on balancing security with privacy rights under Article 21.
    5. Counter-Terror Cell Coordination: Enhances role of specialised Counter Terrorism Cells.

    Conclusion

    The National Counter Terrorism Policy marks a transition from fragmented counter-terror responses to a structured, ecosystem-based security doctrine. Its effectiveness will depend on inter-agency coordination, federal cooperation, technological capability, and safeguards against misuse. Institutional balance between national security and civil liberties remains central to sustainable implementation.

    PYQ Relevance

    [UPSC 2023] Give out the major sources of terror funding in India and the efforts being made to curtail these sources. In the light of this, also discuss the aim and objective of the ‘No Money for Terror (NMFT)’ Conference recently held at New Delhi in November 2022.

    Linkage: This question directly maps to GS Paper 3 (Internal Security), particularly terror financing, money laundering, and transnational security cooperation. It links with India’s PRAHAAR doctrine and NMFT initiative, highlighting the financial disruption pillar of counter-terror strategy and global coordination against terror funding networks.

  • ₹14,601 Crore Undisclosed Offshore Investments Brought to Tax

    Why in the News

    The Central Board of Direct Taxes disclosed through an RTI reply that ₹14,601 crore worth of undisclosed offshore investments, revealed in the Panama, Paradise and Pandora Papers investigations, have been “brought to tax” by the Income Tax Department.

    Background: Global Offshore Investigations

    The investigations were conducted by The Indian Express in collaboration with the International Consortium of Investigative Journalists and global media partners.

    1. Panama Papers

    • Published in 2016
    • ₹13,800 crore brought to tax

    2. Paradise Papers

    • Published in 2017
    • ₹115 crore brought to tax

    3. Pandora Papers

    • Published in 2021
    • ₹686 crore brought to tax
    • Total: ₹14,601 crore

    What Does “Brought to Tax” Mean?

    • In taxation terminology, “brought to tax” means that income, assets, or investments that were previously undisclosed or underreported have been formally assessed by tax authorities and subjected to tax liability under the law.
    • It does not automatically mean that the tax has already been collected.

    Enforcement Action Taken

    • 1,255 tax cases filed in total
      • 426 Panama
      • 494 Paradise
      • 335 Pandora
    • Multi Agency Group formed after Pandora Papers revelations
    • Financial Intelligence Unit India sent requests to foreign jurisdictions regarding 482 persons
    • Seven meetings of the Multi Agency Group held

    Legal and Institutional Framework

    • Income Tax Act, 1961
    • Black Money Undisclosed Foreign Income and Assets Act, 2015
    • Information exchange under international tax treaties
    • Global cooperation to tackle tax havens
    [2021] Which one of the following effects of the creation of black money in India has been the main cause of worry to the Government of India? (a) Diversion of resources to the purchase of real estate and investment in luxury housing 

    (b) Investment in unproductive activities and purchase of precious stones, jewelry, gold, etc. 

    (c) Large donations to political parties and the growth of regionalism 

    (d) Loss of revenue to the State Exchequer due to tax evasion