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GS Paper: GS3

  • Fast X-ray Transients (FXTs)

    Why in the news?

    Astronomers from the Indian Institute of Astrophysics have traced the likely origin of a rare Fast X-ray Transient (FXT) event, EP241107a, detected by the Einstein Probe in November 2024.

    Key Findings

    • FXTs are energetic, non-repeating flashes of X-rays lasting from a few minutes to several hours.
    • They are a recently discovered class of transient cosmic events whose origin has remained uncertain.
    • Researchers identified a radio counterpart of FXT EP241107a using the Karl G. Jansky Very Large Array.
    • Follow-up observations were conducted using:
      • Himalayan Chandra Telescope
      • GROWTH India Telescope
      • Upgraded Giant Metrewave Radio Telescope

    Likely Origin

    • The event was probably caused by: Collapse of a massive star leading to a supernova and gamma-ray burst (GRB), or Merger of two neutron stars.
    • Researchers concluded that EP241107a is most likely an “orphan afterglow”:
      • A gamma-ray-burst-like explosion whose gamma rays were not directly detected.
      • Represents a lower-energy member of the GRB population.

    Fast X-ray Transients (FXTs)

    • Sudden flashes of low-energy X-rays.
    • Non-repeating and short-lived.
    • Fade rapidly after detection.
    • Associated with highly energetic cosmic explosions.

    Proposed Sources

    • Core-collapse supernovae.
    • Binary neutron star mergers.
    • Magnetars (highly magnetized neutron stars).
    • Tidal disruption events involving white dwarfs and black holes.
    • Gamma-ray bursts (GRBs).

    Gamma-Ray Bursts (GRBs)

    • Most energetic explosions known in the Universe.
    • Emit intense gamma radiation for a few milliseconds to several minutes.
    • Associated with the collapse of massive stars (Long GRBs) and Neutron star mergers (Short GRBs).
    • Followed by multi-wavelength “afterglows” in X-ray, optical, and radio bands.

    Neutron Star

    • Extremely dense remnant of a massive star after a supernova.
    • Mass ≈ 1.4-2 solar masses compressed into a sphere about 20 km across.
    • Composed mainly of neutrons.

    [2023] Consider the following pairs: Objects in space : Description
    1. Cepheids : Giant clouds of dust and gas in space
    2. Nebulae : Stars which brighten and dim periodically
    3. Pulsars : Neutron stars that are formed when massive stars run out of fuel and collapse
    How many of the above pairs are correctly matched ?

    [A] Only one

    [B] Only two

    [C] All three

    [D] None

  • India’s First Commercial-Scale Coal-to-Ammonium Nitrate Project

    Why in the news?

    The Prime Minister will lay the foundation stone of India’s first commercial-scale Coal-to-Ammonium Nitrate Project at Lakhanpur, Jharsuguda district, Odisha. The project, worth ₹25,016 crore, is a major step towards energy security, import substitution, and industrial self-reliance.

    Coal Gasification

    • A process that converts coal into Synthesis Gas (Syngas), mainly consisting of carbon monoxide (CO) and hydrogen (H₂).
    • Syngas can be used to produce Methanol, Urea, Ammonia, Ammonium Nitrate, Synthetic Natural Gas (SNG), Other chemical feedstocks

    Lakhanpur Project

    • India’s first commercial-scale Coal-to-Ammonium Nitrate facility.
    • Developed by Bharat Coal Gasification and Chemicals Limited, a joint venture of Bharat Heavy Electricals Limited and Coal India Limited.
    • Located on about 350 acres under Mahanadi Coalfields Limited land.
    • Capacity: 2,000 tonnes/day of Ammonium Nitrate.
    • Uses indigenous coal gasification technology developed by BHEL.
    • Receives ₹1,350 crore support under the Coal Ministry’s incentive scheme.

    Significance

    • Reduces dependence on imported natural gas, ammonia, methanol, and chemicals.
    • Supports Aatmanirbhar Bharat and domestic manufacturing.
    • Enhances value addition to India’s vast coal reserves (>400 billion tonnes).
    • Expected to boost downstream chemical and fertilizer industries.

    [2025] Consider the following substances:
    I. Ethanol
    II. Nitroglycerine
    III. Urea
    Coal gasification technology can be used in the production of how many of them?

    [A] Only one

    [B] Only two

    [C] All the three

    [D] None

  • RBI Temporarily Lifts Interest Rate Ceiling on FCNR(B) & NRE Deposits

    Why in the news?

    The RBI has temporarily removed the interest rate ceiling on fresh FCNR(B) deposits (3-5 years) and NRE deposits (3 years and above) from 17 June 2026 to 30 September 2026 to attract foreign currency inflows, support the rupee, and ease external financing conditions.

    FCNR(B) Deposits

    • Foreign Currency Non-Resident (Bank) Deposits allow NRIs to maintain fixed deposits in designated foreign currencies.
    • Principal and interest are protected from exchange-rate risk.
    • RBI has removed the interest rate cap on fresh and renewed deposits of 3-5 year tenor.
    • Banks have already increased FCNR(B) deposit rates to around 7%.

    NRE Deposits

    • Non-Resident External (NRE) Accounts are rupee-denominated accounts maintained by NRIs.
    • Both principal and interest are fully repatriable.
    • Interest rate ceiling on fresh and renewed deposits of 3 years and above has been removed temporarily.
    • Transfers from NRO to NRE accounts will not qualify for this relaxation.

    RBI’s Objective

    • Attract larger NRI deposits and foreign currency inflows.
    • Strengthen foreign exchange reserves.
    • Support rupee stability.
    • Reduce overseas borrowing costs for banks and public sector entities.
    • Complement RBI’s concessional forex swap facility announced on 5 June 2026.

    Expected Impact

    • Analysts estimate $30-50 billion of inflows by Q3 FY27.
    • Similar FCNR(B) scheme in 2013 attracted nearly $25 billion.
    • Increased foreign currency liquidity may ease external sector pressures.

    [2021] Consider the following:
    1. Foreign currency convertible bonds
    2. Foreign institutional investment with certain conditions
    3. Global depository receipts
    4. Non-resident external deposits
    Which of the above can be included in Foreign Direct Investments?

    [A] 1, 2 and 3

    [B] 3 only

    [C] 2 and 4

    [D] 1 and 4

  • Is India producing more graduates than what the economy can absorb?

    Why in the News?

    India’s higher education system continues to expand rapidly, producing millions of graduates each year. Yet graduate unemployment remains high, exposing a growing disconnect between educational output and labour market absorption, especially in the age of AI, automation, and capital-intensive growth.

    Why is graduate unemployment rising despite expanding economic opportunities?

    1. Rapid Expansion of Higher Education: Engineering colleges and universities have increased graduate output faster than job creation.
    2. Sectoral Transition: IT services no longer absorb engineering graduates at earlier levels. New opportunities are emerging in banking, finance, defence, aerospace, semiconductors and space sectors.
    3. Mismatch in Skills: Employers seek practical and industry-ready skills that many graduates lack.
    4. Changing Nature of Jobs: New opportunities increasingly require specialised and interdisciplinary competencies.
    5. Weak Industry Exposure: Many students graduate without sufficient laboratory, manufacturing, or real-world experience.
    6. Industry-led Training: Companies increasingly run internal training programmes because many graduates lack industry-ready skills.
    7. Additional Training Burden: Firms often need to retrain recruits before deployment.

    Has AI and technological change widened the employability gap?

    1. Changing Skill Requirements: AI increases demand for problem-solving, analytical, and digital skills.
    2. Curriculum Lag: Universities cannot redesign programmes at the pace of technological change.
    3. Mid-Course Labour Market Shift: Many graduates entered college before AI became mainstream. The labour market changed faster than university curricula.
    4. New Competency Requirements: Employers seek AI literacy, data interpretation, and systems thinking.
    5. Transition Shock: Graduates trained under older curricula enter a rapidly evolving labour market.

    Why is economic growth not translating into proportionate job creation?

    1. Capital-Intensive Investments: Semiconductors and advanced manufacturing generate high output with fewer workers.
    2. Automation of Production: Robotics and digital manufacturing reduce labour requirements.
    3. Automation of Manufacturing: Manufacturing previously absorbed engineers in supervisory and operational roles. Robotics and digital production systems have reduced demand for such middle-level positions.
    4. Limited Labour Absorption: Manufacturing expansion no longer guarantees mass employment.
    5. Output-Employment Decoupling: Factory output can rise significantly without a proportional increase in workforce requirements.

    Is India facing a graduate surplus or a skills mismatch?

    1. Not a Numerical Surplus Alone: Several sectors continue to demand skilled professionals.
    2. Quality Gap: Available graduates often do not possess industry-required competencies.
    3. Design and R&D Shortage: Advanced sectors need specialised talent that remains limited.
    4. Employability Deficit: The issue lies more in readiness than in educational attainment.

    Is India’s employment challenge a problem of graduate surplus or skill deficit?

    1. Graduate Expansion: Higher education enrolment has expanded rapidly, producing graduates faster than formal job creation.
    2. Skill Mismatch: Many graduates lack industry-ready, practical and interdisciplinary skills despite holding degrees.
    3. Dual Reality: Graduate unemployment coexists with shortages of specialised talent in sectors such as AI, semiconductors, finance and advanced manufacturing.
    4. Changing Demand Structure: The economy increasingly rewards digital literacy, problem-solving and applied technical competencies over generic credentials.
    5. Underemployment Trap: Many graduates accept jobs below their qualifications or enter informal and gig work due to limited suitable opportunities.
    6. Core Challenge: India’s employment problem is a structural mismatch between educational output and labour market demand rather than a pure shortage of jobs or graduates.

    Why does manufacturing versus innovation present a false choice?

    1. Manufacturing Needs Innovation: Modern industry depends on design, research, and technology.
    2. Innovation Creates High-Value Jobs: R&D and product development generate skilled employment.
    3. Global Value Chains Reward Innovation: Countries capturing design and intellectual property gain more value.
    4. Balanced Strategy Required: Manufacturing and innovation must advance together.

    Has India developed indigenous technological capabilities?

    1. Growing Corporate Capability: Firms such as Mahindra and Tata Motors have strengthened engineering capacity.
    2. Corporate Capability Building: Indian firms have moved beyond assembly and increasingly participate in engineering, design and product development.
    3. Increasing Design Competence: Indian engineers contribute to complex product development.
    4. Progress in Indigenous Systems: Domestic technological capabilities have expanded across sectors.
    5. Capability Gap Persists: Advanced R&D opportunities remain fewer than the number of graduates produced.

    Can entrepreneurship absorb the growing graduate workforce?

    1. Job Creation Beyond Wage Employment: Startups can become major employment generators.
    2. Need for Risk Capital: Venture funding remains critical for innovation-led firms.
    3. Technology Entrepreneurship Opportunity: Deep-tech sectors offer long-term employment potential.
    4. Ecosystem Constraints: Financing and scaling challenges continue to limit startup growth.

    What must change in higher education?

    1. Industry-Academia Integration: Universities and firms must collaborate closely.
    2. Co-created Curricula: Universities should develop programmes jointly with industry instead of designing courses in isolation.
    3. Practical Learning: Greater emphasis on laboratories, internships, and projects.
    4. Skill Development: Education must prioritise employability alongside academic credentials.
    5. Continuous Upgradation: Institutions must adapt faster to technological change.

    Conclusion

    India’s problem is not an excess of graduates but a growing mismatch between educational outcomes and labour market requirements. AI, automation, and capital-intensive growth have altered the nature of employment faster than universities have adapted. The solution lies in aligning education, industry, innovation, and entrepreneurship so that graduate creation and job creation move in the same direction.

    PYQ Relevance

    [UPSC 2023] Skill development programs have succeeded in increasing human resource supply to various sectors. In the context of the statement, analyze the linkages between education, skill and employment.

    Linkage: The PYQ examines the link between education, skills and employability in India’s labour market. The article highlights how weak alignment between education, skills and industry demand has contributed to rising graduate unemployment despite expanding higher education.

  • Advancing Electrolyte Engineering for Durable and Affordable Aqueous Batteries

    Why in the news?

    Scientists at the Institute of Nano Science and Technology (INST), Mohali, under the Department of Science and Technology (DST), have developed a novel electrolyte additive (BDIM) that significantly improves the performance and lifespan of Aqueous Zinc-Ion Batteries (AZIBs).

    Key Highlights

    • AZIBs are emerging as safer, cheaper, and more sustainable alternatives to lithium-ion batteries.
    • Major challenges:
      • Zinc dendrite formation
      • Hydrogen Evolution Reaction (HER)
      • Corrosion of zinc anode
      • Poor cycling stability
    • Researchers developed BDIM (1,3-bis(1,3-dicarboxypropyl)-1H-imidazole-3-ium chloride) as an electrolyte additive.
    • BDIM selectively adsorbs on the zinc surface and occupies the Inner Helmholtz Plane (IHP).
    • It displaces water molecules, thereby:
      • Suppressing hydrogen evolution
      • Reducing corrosion
      • Preventing dendrite growth
      • Enhancing battery life and safety
    • Researchers used: Ultramicroelectrode (UME) and Fast-Scan Cyclic Voltammetry (FSCV)
      to study zinc deposition mechanisms.

    Significance

    • Extends battery lifespan without costly material redesign.
    • Improves safety and reliability of rechargeable batteries.
    • Supports large-scale renewable energy and grid-storage applications.
    • Can reduce maintenance costs of energy-storage infrastructure.

    Prelims Facts

    • AZIB Electrolyte: Water-based, making it non-flammable and safer than lithium-ion batteries.
    • Inner Helmholtz Plane (IHP): Region near the electrode surface where electrochemical reactions occur.
    • Hydrogen Evolution Reaction (HER): Undesirable side reaction that reduces battery efficiency.

  • Qadian-Beas Railway Line Project Revived

    Why in the news?

    The Government of India has revived the Qadian-Beas New Railway Line Project in Punjab after nearly a century. The project was originally approved during 1928-29 by the North-Western Railway but remained incomplete.

    Key Highlights

    • Length: 39.68 km broad-gauge railway line.
    • Cost: Approximately ₹1,400 crore.
    • Implementing Agency: Northern Railway.
    • Route: Qadian (Gurdaspur) – Dhapai – Ghuman – Butala – Sathiala – Beas (Amritsar).
    • Revived under the Socially Desirable Rail Connectivity Programme.

    Infrastructure Features

    • 2 crossing stations (Ghuman and Butala).
    • 11 major bridges and 121 minor bridges.
    • 54 Road Under Bridges (RUBs).
    • Modern signalling and telecommunication systems.
    • Deployment of Kavach, India’s indigenous train collision avoidance system.

    Significance

    • Connectivity: Brings several areas of Punjab’s Majha region onto the railway network. Improves mobility and accessibility for residents.
    • Strategic Importance: Provides an alternative corridor to the Amritsar-Pathankot railway section during emergencies. Enhances resilience of railway operations in northern India.
    • Economic Benefits
      • Better market access for farmers.
      • Faster transportation of agricultural produce.
      • Boost to trade, commerce, and small-scale industries.
      • Employment generation during construction and operation.
    • Tourism: Improves access to major religious destinations including Qadian, Dera Baba Jaimal Singh, Sri Darbar Sahib, Dera Baba Nanak, and Gurdwara Achal Sahib

  • Indigenous Air Cushion Vehicle (ACV) Inducted into Indian Coast Guard

    Why in News?

    The Indian Coast Guard (ICG) inducted the first of six indigenously built Air Cushion Vehicles (ACVs), or hovercraft, at Goa on 18 June 2026. The vessels are being constructed by Chowgule & Company Private Limited under a Ministry of Defence contract.

    Key Highlights

    • First ACV inducted into ICG service in Goa.
    • Part of a contract for six indigenous hovercraft.
    • Contract signed between the Ministry of Defence and Chowgule & Company Pvt. Ltd. on 24 October 2024.
    • Supports the vision of Aatmanirbhar Bharat.
    • Enhances India’s indigenous maritime manufacturing capability.

    What is an Air Cushion Vehicle (ACV)?

    • A hovercraft that travels on a cushion of pressurised air.
    • Can operate over Water, Mudflats, Marshes, Sandbanks, Shallow and coastal areas
    • Combines features of both marine vessels and aircraft.

  • The RBI and its growing fiscal role 

    Why in the News?

    The RBI approved a record surplus transfer of ₹2.87 lakh crore to the Union government for FY26. The transfer follows a sharp expansion in the RBI’s balance sheet and rising earnings from reserve management, foreign assets and market operations, triggering debate over the RBI’s evolving place within India’s fiscal architecture.

    Why is the RBI no longer functioning only as a monetary authority?

    1. Traditional Role: The RBI’s primary mandate is monetary stability, financial stability and currency management.
    2. Record Fiscal Contribution: The RBI transferred a record ₹2.87 lakh crore to the Union government in FY26, demonstrating its growing importance as a source of fiscal resources.
    3. Expanding Financial Footprint: The RBI’s balance sheet expanded by 20.6% to ₹91.97 lakh crore by March 2026, increasing the scale at which its operations influence fiscal outcomes.
    4. Rising Operational Income: Gross income rose by 26%, reflecting the growing revenue-generating capacity of RBI operations.
    5. Magnitude of Fiscal Impact: The transfer exceeds the annual budgets of several Indian States, indicating the substantial fiscal significance of RBI earnings.
    6. Institutional Shift: Reserve management, foreign asset holdings and market operations now generate fiscal resources alongside monetary outcomes, giving the RBI a role that extends beyond traditional central banking.

    How has the RBI’s management of reserves become a source of fiscal capacity?

    1. Reserve Management: RBI actively manages foreign exchange reserves, gold holdings and securities portfolios as part of its monetary mandate.
    2. Gold Reserve Expansion: RBI acquired almost $12 billion worth of gold, increasing the scale of reserve assets under its management.
    3. Foreign Asset Expansion: RBI purchased roughly $75 billion in foreign currency assets, expanding income-generating reserve holdings.
    4. Income-Generating Operations: Exchange-rate intervention, foreign asset holdings and securities investments generate significant financial returns.
    5. Fiscal Contribution: Returns from reserve management increasingly contribute to the RBI surplus transferred to the Union government.
    6. Institutional Consequence: Activities undertaken for monetary and financial stability now generate substantial fiscal resources, linking reserve management to government finances.

    Can a central bank remain institutionally independent when it becomes fiscally important?

    1. Institutional Distance: Central bank credibility depends on insulation from day-to-day fiscal compulsions.
    2. Fiscal Dependence: Large surplus transfers strengthen government finances without taxation or borrowing.
    3. Monetary-Fiscal Interdependence: Decisions affecting the RBI’s balance sheet increasingly affect fiscal outcomes. The growing fiscal role of central banks blurs the traditional boundary between monetary policy and fiscal policy.
    4. Changing Incentives: Fiscal significance increases political interest in central-bank earnings.
    5. Global Experience: Quantitative easing demonstrated how central-bank balance sheets can become instruments of fiscal support.
    6. Core Tension: The RBI remains a monetary authority while simultaneously becoming an important fiscal actor.

    Why does the RBI’s growing fiscal role create a federalism challenge?

    1. Union Ownership: RBI profits accrue entirely to the Union government.
    2. Outside Fiscal Devolution: RBI transfers are not included in the divisible pool shared through Finance Commission awards.
    3. No Automatic State Share: States receive no direct claim on RBI-generated revenues.
    4. Scale of Asymmetry: The ₹2.87 lakh crore transfer exceeds the annual budgets of several States, highlighting the magnitude of resources accruing exclusively to the Centre.
    5. State Fiscal Constraints: States retain major expenditure responsibilities and face borrowing restrictions under Article 293, limiting their ability to offset revenue asymmetries.
    6. Fiscal Centralisation: Large public resources generated through monetary institutions strengthen the Centre’s fiscal position.
    7. Federal Blind Spot: RBI dividend transfers illustrate a wider pattern in which cesses, surcharges and borrowing restrictions increasingly concentrate fiscal resources at the Union level.

    Conclusion

    The RBI’s record surplus transfer reflects a deeper institutional transformation rather than a one-time financial event. The central bank has evolved from being primarily a guardian of monetary stability into an increasingly important source of fiscal capacity for the Union government. The unresolved challenge is preserving central bank independence and strengthening fiscal federalism as monetary institutions become more deeply intertwined with public finance.

  • World Day to Combat Desertification and Drought 2026

    Why in the news?

    The World Day to Combat Desertification and Drought (17 June) was celebrated across 813 project areas under the WDC–PMKSY 2.0 (Watershed Development Component of Pradhan Mantri Krishi Sinchayee Yojana 2.0).

    WDC–PMKSY 2.0

    • Implemented by the Department of Land Resources (DoLR) under the Ministry of Rural Development (MoRD).
    • Focuses on:
      • Soil and water conservation.
      • Restoration of degraded lands.
      • Enhancing resilience of rainfed agriculture.
      • Sustainable watershed development.

    Major Interventions

    • Check dams, Percolation tanks, Farm ponds, Water harvesting and groundwater recharge structures

    Key Outcomes

    • Improved water availability in rainfed areas.
    • Enables second and third crop cultivation.
    • Enhances farmers’ income and livelihood security.
    • Strengthens drought resilience and climate adaptation.

    Activities Conducted

    • Bhoomi Poojan of 1,444 new watershed development works.
    • Lokarpan (Inauguration) of 8,341 completed watershed assets.
    • Plantation of 51,299 saplings under “Ek Ped Maa Ke Naam” campaign.
    • Public pledge: “For a Developed India, Let Us Build a Drought-Free India.”

    Significance

    • Promotes community-led land and water conservation.
    • Supports land restoration, water security, and climate resilience.
    • Contributes to sustainable rural development and combating desertification.

    [2016] What is/are the importance/importances of the ‘United Nations Convention to Combat Desertification’?

    1. It aims to promote effective action through innovative national programmes and supportive international partnerships.

    2. It has a special focus on South Asia and North Africa regions, and its Secretariat facilitates allocation of major portions of financial resources to these regions.

    3. It is committed to a bottom-up approach, encouraging participation of local people in combating desertification.

    A 1 only

    B 2 and 3 only

    C 1 and 3 only

    D 1, 2 and 3

  • Green Hydrogen Certification Portal of India (GHCI) & National Green Hydrogen Mission (NGHM)

    Why in the news?

    The Ministry of New and Renewable Energy (MNRE) launched the Green Hydrogen Certification Portal of India (GHCI) to ensure transparent certification and regulatory compliance for green hydrogen production.

    GHCI

    • Developed by MNRE (Ministry of New and Renewable Energy).
    • Certifies green hydrogen under the Green Hydrogen Certification Scheme of India (GHCI Scheme).
    • Enhances transparency, traceability, and market credibility.

    National Green Hydrogen Mission (NGHM)

    • Launched in 2023.
    • Outlay: ₹19,744 crore.

    Targets by 2030

    • 5 Million Metric Tonnes (MMT) of green hydrogen production.
    • 125 Gigawatt (GW) dedicated renewable energy capacity.
    • ₹8 lakh crore investment.
    • 6 lakh jobs.
    • Reduction of 50 million tonnes of carbon dioxide (CO₂) emissions annually.

    Key Progress

    • 6 States have dedicated Green Hydrogen Policies; 7 States have integrated hydrogen into existing policies.
    • Incentives awarded to 15 companies for 3,000 MW (Megawatt) per year electrolyser manufacturing capacity.
    • Under SIGHT (Strategic Interventions for Green Hydrogen Transition), incentives approved for 8.62 lakh Metric Tonnes Per Annum (MTPA) of green hydrogen production.
    • Contracts awarded for 30,000 MTPA green hydrogen supply to refineries.
    • Agreements signed for 6.7 lakh MTPA of Green Ammonia supply to 11 fertilizer plants.
    • ₹84 crore sanctioned for hydrogen injection pilot projects in the steel sector.
    • ₹208 crore allocated for 37 hydrogen-powered vehicles and 9 refuelling stations.
    • ₹113 crore allocated for Research and Development (R&D) projects.
    • ₹100 crore startup fund; first 9 startups approved with ₹22 crore support.

    Green Hydrogen

    • Hydrogen produced through electrolysis using renewable energy.
    • A zero-carbon fuel for sectors such as steel, fertilizers, refineries, shipping, and heavy transport.

    [2023] With reference to green hydrogen, consider the following statements:
    1. It can be used directly as a fuel for internal combustion.
    2. It can be blended with natural gas and used as fuel for heat or power generation.
    3. It can be used in the hydrogen fuel cell to run vehicles.
    How many of the above statements are correct?

    [A] Only one

    [B] Only two

    [C] All three

    [D] None