GS Paper: GS3-15.Science and Technology- Developments and their Applications and Effects in Everyday Life.

Centre gives nod for National Quantum Mission (NQM)

quantum

Central idea: The Union Cabinet has approved the National Quantum Mission (NQM) with a budget of ₹6,003 crore. The mission aims to fund research and development in quantum computing technology and associated applications.

What is Quantum Computing?

	Explanation
What is it?	A type of computing that uses quantum-mechanical phenomena to perform operations on data.
Qubits	Quantum bits, which can be 0, 1, or both simultaneously (a superposition of 0 and 1).
Computational speed	It can perform certain calculations much faster than traditional computing, especially for complex algorithms and large amounts of data.
Entanglement	The use of entanglement allows quantum computing to process multiple pieces of data simultaneously, further increasing computational power.
Research	Governments, universities, and private companies around the world are researching quantum computing.
Challenges	Building practical quantum computers is a major challenge due to the fragility of qubits and the difficulty of controlling and measuring them accurately.
Development stage	Quantum computing is still in its early stages of development.

National Quantum Mission (NQM)

Mission duration	2023-2031
Total cost	Rs. 6,003.65 crore
Leading Department	Department of Science and Technology (DST)
Supporting departments	Other government departments
Focus	Development of physical qubit-based quantum computers
Applications	Healthcare and diagnostics, defense, energy, and data security
India’s positioning	Among the top six nations involved in quantum research and development

Key focus areas

(1) Thematic Hubs

The mission will be structured around four broad themes:

Quantum Computing,
Quantum Communication,
Quantum Sensing and Metrology, and
Quantum Material and Devices.

Thematic hubs will be established at research institutes and R&D centres already working in the field.
The effort is to create an ecosystem that favours quantum technology development in the country.

(2) Satellite-based Communication

One of the key areas of focus for the NQM will be the development of satellite-based secure communication between ground stations and receivers located within a 3,000 km range over the first three years.
NQM will lay communication lines using Quantum Key Distribution over 2,000 km for satellite-based communication within Indian cities.
Tests will be conducted in the coming years for long-distance quantum communication, especially with other countries.

(3) Quantum Computing

The mission will focus on developing quantum computers (qubit) with physical qubit capacities ranging between 50 – 1000 qubits, developed over the next eight years.
The development of computers up to 50 physical qubits will take three years.
50 – 100 physical qubits will be developed in five years, and computers up to 1000 physical qubits will be developed in eight years.

Applications

The mission would have a wide range of applications, including in healthcare and diagnostics, defense, energy, and data security.
Quantum technologies are expected to be far more powerful than traditional computing systems and capable of performing the most complex problems in a highly secure manner.

Various challenges

Sub-zero temperatures: Current prototype systems require extremely cold (close to -273 C) conditions to work, along with developing the materials capable of such computations.
Still evolving: Quantum computers are still a work in progress globally, and no one has built a practical computer that can actually work and solve meaningful problems.
No global breakthrough: IBM, D-Wave of Canada or China’s Zuchongzhi 2.1, all of whom have prototype systems, have not built a quantum computer that can solve a problem that anybody cares about.

Conclusion

The NQM represents a significant step forward for India’s research and development efforts in the quantum technology sector.
By focusing on the development of quantum computers and related technologies, the country is positioning itself as a key player in this field, with wide-ranging applications across multiple sectors.

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April 20, 2023

AI Regulation in India: Ensuring Responsible Development and Deployment

Central Idea

As the deployment of Artificial intelligence (AI) based systems continues to grow, it is important for India to develop and implement regulations that promote responsible development and deployment, while also addressing concerns related to privacy, competition, and job losses.

The Potential of AI and its Risks

Limitless potential: The potential of AI is vast and encompasses a wide range of applications across various fields. AI has the potential to improve productivity, increase efficiency, and provide personalized solutions in many areas such as healthcare, finance, education, manufacturing, transportation, defense, space technology, molecular biology, deep water mining, and exploration.
Significant risks: While the potential of AI is immense, it also comes with significant risks that need to be addressed. Some of the risks associated with AI include biased algorithms, misdiagnosis or errors, loss of jobs for professionals, unintended harm or civilian casualties, and cybersecurity threats. It is important to ensure that AI development and deployment are carried out with caution and that potential risks are mitigated.

Takeaway keyword Box from civilsdaily: AI applications in various fields, advantages, challenges and associated risks.

Fields	AI Applications	Advantages	Challenges	Risks
Healthcare	Diagnosis and medical imaging, drug discovery, personalized medicine, virtual nursing assistants, remote monitoring of patients, health data analysis	Improved accuracy and speed of diagnoses, personalized treatment plans, faster drug discovery, remote patient monitoring	Integration with existing healthcare systems, ethical and regulatory concerns, data privacy and security	Misdiagnosis or errors, biased algorithms, loss of jobs for healthcare professionals
Finance	Fraud detection, customer service chatbots, personalized financial advice, risk assessment and management, trading algorithms	Improved fraud detection and prevention, personalized customer support, optimized risk management, faster trading decisions	Integration with existing financial systems, ethical and regulatory concerns, data privacy and security	Biased algorithms, systemic risks, cyber attacks
Education	Personalized learning, adaptive learning, intelligent tutoring systems, student engagement analytics, automated grading and feedback	Improved student outcomes, personalized learning experiences, increased student engagement, reduced workload for educators	Integration with existing education systems, ethical and regulatory concerns, data privacy and security	Biased algorithms, loss of jobs for educators, lack of human interaction
Manufacturing	Quality control, predictive maintenance, supply chain optimization, collaborative robots, autonomous vehicles, visual inspection	Increased efficiency and productivity, reduced downtime, optimized supply chains, improved worker safety	Integration with existing manufacturing systems, ethical and regulatory concerns, data privacy and security	Malfunctioning robots or machines, loss of jobs for workers, high implementation costs
Transportation	Autonomous vehicles, predictive maintenance, route optimization, intelligent traffic management, demand forecasting, ride-sharing and on-demand services	Reduced accidents and fatalities, reduced congestion and emissions, optimized routing and scheduling, increased accessibility and convenience	Integration with existing transportation systems, ethical and regulatory concerns, data privacy and security	Malfunctioning autonomous vehicles, job displacement for drivers, cybersecurity threats
Agriculture	Precision agriculture, crop monitoring and analysis, yield optimization, automated irrigation and fertilization, pest management, livestock monitoring	Increased crop yields, reduced waste and resource use, optimized crop health, improved livestock management	Integration with existing agriculture systems, ethical and regulatory concerns, data privacy and security	Malfunctioning drones or sensors, loss of jobs for farm workers, biased algorithms
Defense	Intelligent surveillance and threat detection, unmanned systems, autonomous weapons	Improved situational awareness and response, reduced human risk in combat situations	Ethical and legal concerns surrounding the use of autonomous weapons, risk of AI being hacked or malfunctioning in combat scenarios	Unintended harm or civilian casualties, loss of jobs for military personnel
Space technology	Autonomous navigation, intelligent data analysis, robotics	Increased efficiency and productivity in space exploration, improved accuracy in data analysis	Risk of AI being hacked or malfunctioning in space missions, ethical and regulatory concerns surrounding the use of autonomous systems in space	Damage to equipment or loss of mission due to malfunctioning AI
Molecular biology	Gene editing and analysis, drug discovery and development, personalized medicine	Faster and more accurate analysis of genetic data, improved drug discovery and personalized treatment plans	Ethical and regulatory concerns surrounding the use of AI in gene editing and personalized medicine	Misuse of genetic data or personalized treatment plans, loss of jobs for medical professionals
Deep water mining and exploration	Autonomous underwater vehicles, intelligent data analysis	Increased efficiency and productivity in deep sea exploration and mining, improved accuracy in data analysis	High costs and technical challenges of developing and deploying AI systems in deep sea environments	Malfunctioning AI systems, environmental damage or destruction due to deep sea mining activities

The Need for Regulation

Current regulatory system not well equipped: The current regulatory system may not be equipped to deal with the risks posed by AI, especially in areas such as privacy and competition.
Develop regulations in collaboration: Governments need to work with tech companies to develop regulations that ensure the responsible development and deployment of AI systems.
Balanced regulations: The regulation needs to be adaptive, flexible and balance between the benefits and risks of AI technology. This way, AI technology can be developed while taking into account societal concerns.
Privacy Concerns and responsible usage: AI-based systems, such as facial recognition technology, raise concerns related to privacy and surveillance. Governments need to develop regulations that protect citizen privacy and ensure that data is collected and used in a responsible way.
Risk assessment: Risk assessment could help in determining the risks of AI-based systems and developing regulations that address those risks.
For instance: Europe’s risk assessment approach may serve as a useful model for India to develop such regulations.

Competition and Monopolization

AI powered checks and balance: The dominance of Big Tech in the tech landscape raises concerns of monopolization and the potential for deepening their control over the market. However, the presence of multiple players in the AI field generates checks and balances of its own.
Healthy market for AI technology: The development of new players and competitors can promote innovation and ensure a healthy market for AI technology.

Conclusion

AI technology holds immense potential, but its risks need to be mitigated, and its development and deployment need to be carried out responsibly. Governments must work towards developing regulations that ensure that AI technology benefits society, while addressing concerns related to privacy, competition, and job losses. Responsible development and deployment of AI technology can lead to a brighter future for all.

Mains Question

Q. AI has limitless potential in various fields. In this light of this statement enumerate some of its key revolutionary applications in various fields and discuss challenges and associated risks of deploying AI in various fields.

April 14, 2023

5G: Security Features and Concerns
Central Idea
- With the arrival of 5G technology, all electronic devices will potentially be connected to the internet. Cyber damage scenarios, imagined only in dystopian fiction, could become a reality. A collaborative approach between the government, academia, and businesses is necessary to address these cyber security concerns and ensure that 5G technology is safe and secure for consumers.
What exactly is 5G?
- Latest advancement: 5G, or fifth-generation wireless technology, is the latest advancement in mobile communication and internet technology.
- Higher frequency spectrum: 5G operates on a higher frequency spectrum than 4G, typically between 24 GHz to 90 GHz. This higher frequency range allows for faster data transfer rates and lower latency.
- MIMO technology: 5G uses a technology called MIMO (Multiple Input Multiple Output) to transmit and receive multiple data streams simultaneously. This allows for greater capacity and faster speeds.
- Network slicing: It also utilizes network slicing, which enables the creation of multiple virtual networks on a single physical network. This allows for more efficient use of network resources and can improve overall network performance.
- Applications: 5G technology is expected to enable the development and implementation of emerging technologies such as self-driving cars, virtual and augmented reality, and smart cities.
Security Features of 5G Technology
- Security-by-Design Approach: 5G technology is designed with a security-by-design approach that embeds security features from the beginning. This approach ensures that security is an integral part of the technology, rather than an afterthought.
- Strong Encryption Standards: 5G technology incorporates strong encryption standards that make it extremely difficult for attackers to access and use any information they might obtain. Even if an attacker manages to obtain some information, it will be in an unusable format.
- Interconnected Device Protection: 5G technology also includes protocols that protect the confidentiality of interconnected devices. These protocols prevent unauthorized access and ensure that data transmitted between devices remains secure and private.
What are the Concerns?
- Inheriting past vulnerabilities: The initial wave of 5G will be built on existing 4G infrastructure, therefore, it will inherit vulnerabilities of the past.
- Multiplying privacy concerns: More devices connected to the internet increase the scope of cyber-attacks. In a connected network, such attacks can spread like wildfire if not contained in time. Privacy concerns are bound to multiply as the number of devices increases.
- Concerns about pre-ban imported equipment: A bulk of 5G network components have been imported and manufactured in factories based in China. Imports of such equipment have been banned. However, concern remains about the use of the equipment that was imported before the ban came into effect.
- For instance, concerns over user privacy: Many countries including the USA and Canada have expressed concerns over protocols used by Huawei and ZTE that compromise the privacy of users.
What can be done to Ensure 5G Security
- Collaborative efforts between government, academia, and businesses: Governments should work with industry experts and academia to develop comprehensive security measures and policies that align with the rapidly evolving technological landscape.
- Ongoing security testing: Telecom companies should perform regular security testing of their 5G infrastructure to identify vulnerabilities and address them before they can be exploited by attackers. Telecom companies and ethical hackers can be invited to test infrastructure.
- For instance: C-DOT’s 5G alliance focuses on security aspects, it needs to be scaled up as a Center of Excellence involving IITs and CERT-In.
- Reward mechanisms: Offering incentives to 5G service providers who adhere to high security standards can promote better security practices across the industry.
- Consumer education: Government agencies like CERT-In can publish easy-to-understand advisories to educate end-users on best practices to protect themselves and their devices from potential security breaches.
- Greater responsibility: All stakeholders must assume greater responsibility to protect the 5G ecosystem from cyber threats.
- International cooperation: International cooperation between governments and organizations can help establish global standards and guidelines for 5G security, promoting greater consistency and transparency in security practices.
Conclusion
- Consumers are at the heart of the 5G ecosystem and need to be aware of the security challenges. Exciting times await us in 2023. All stakeholders need to prepare for the security challenges of the 5G package.
Mains Question

Q. Technology upgrade comes with advantages and challenges. In this light discuss security features concerns related to the implementation of 5G technology?

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March 8, 2023
Hidden corridor discovered in Pyramid of Giza using Cosmic-Ray Muon Radiography
A hidden corridor has been unearthed by scientists inside the Great Pyramid of Giza using a non-invasive technique called cosmic-ray muon radiography.

What is Cosmic-Ray Muon Radiography (CMR)?
- CMR is a technique used to study the density and composition of materials hidden within large and dense objects, such as geological formations, archaeological sites, and industrial facilities.
- The technique involves using muons, a type of cosmic-ray particle, to generate images of the interior of such objects.
- Muon particles are created when cosmic rays, mostly protons and atomic nuclei, collide with atoms in the Earth’s upper atmosphere.
- These muons travel through the atmosphere and penetrate deep into the ground, passing through objects along their path.
- Muons are highly penetrating particles that can penetrate several meters of rock or other materials, making them ideal for imaging the internal structure of objects.
Working principle
- The principle behind CMR is to measure the flux of muons passing through an object and compare it to the expected flux based on the object’s geometry and composition.
- Differences in the measured and expected flux indicate variations in the object’s density or composition, which can be used to create an image of the object’s internal structure.
Applications

Some key applications of cosmic-ray muon radiography include:
1. Volcano monitoring: By using muon radiography to create images of the interior of volcanoes, scientists can better understand their structure and potential eruption hazards.
2. Archaeology: Muon radiography can be used to explore the interior of pyramids and other ancient structures without damaging them.
3. Nuclear reactor monitoring: Muon radiography can be used to detect the presence of nuclear materials within reactors and to monitor their condition over time.
Great Pyramid of Giza
- The Great Pyramid is the largest of the three pyramids in Giza, originally standing roughly 147 m above the Giza plateau.
- Construction was started in 2550 BC, during the reign of Khufu, often considered the greatest pharaoh of Egypt’s old kingdom.
- It is estimated that the pyramid was built using 2.5 million stone blocks, each weighing between 2.5 and 15 tonnes.
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March 4, 2023
Surya Nutan: A Stove of Green Energy Transition
Central Idea
- The formal launch of the Indian Oil Corporation’s patented solar cook-stove at the India Energy Week 2023 (February 6-8, 2023 in Bengaluru as part of the G-20 calendar of events) by the Prime Minister Narendra Modi must be looked at closely from the point of view of India’s national energy story. While Mr. Modi claimed the stove would soon reach three crore households within the next few years, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri called it a catalyst in accelerating adoption of low-carbon options along with biofuels, electric vehicles, and green hydrogen.
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Salient features of Surya Nutan solar cook-stove
- Indoor solar cooking: Surya Nutan is a Stationary, rechargeable, and always kitchen-connected indoor solar cooking.
- Patented by Indian Oil: This is a patented product designed and developed by Indian Oil R&D Centre, Faridabad.
- Maximum utilization of solar energy: It offers online cooking mode while charging through the Sun which maximizes the system efficiency and ensures high utilization of energy from Sun.
- How it will work?: It collects energy from the sun, converts it into heat through a specially designed heating element, stores thermal energy in a scientifically proven thermal battery and reconverts the energy for use in indoor cooking. The energy captured not just covers day time cooking needs of a family of four but also the night meal.
- Hybrid mode: It works on a Hybrid Mode (i.e. can work on both solar & auxiliary energy source simultaneously) which makes the Surya Nutan a reliable cooking solution for all weather conditions.
- Minimises heat loss: Insulation design of Surya Nutan minimizes radiative and conductive heat losses.
- Surya Nutan is available in three different models: The premium model (Breakfast +Lunch+Dinner) of Surya Nutan can cook all the meals for family of four.
- What will be the cost: Initially, cost of the product is around Rs 12,000 for base model, and Rs. 23,000 for Top Model. However, the cost is expected to reduce substantially with economies of scale. At a price of Rs. 12,000-14,000/- for Top Model, assuming annual consumption of 6-8 LPG cylinders, this product can pay back the buyer in first 1-2 years itself.
- Inbuilt Safety aspects: All the safety aspects required in any indoor appliances are inbuilt in Surya Nutan.
- substitute for fossil fuels: The stove, which entails a one-time procurement cost and has zero maintenance, is being touted as a substitute for fossil fuels. It does not have a traditional battery that needs replacement. Also, the solar panel has a 25-year life.
- Modular system: Surya Nutan is a modular system and can be designed in different sizes as per the requirement.
India’s national energy story
- In 1950s, the National Physical Laboratory (NPL) fabricated a solar cooker and state-led hydroelectric power but failed to address rural energy consumption.
- Parallel efforts to improve the traditional stove proved unsuccessful, such as the Hyderabad Engineering Research Laboratories smokeless chulha.
- 1980s government launched improved chulhas program to reduce fuelwood consumption and benefit women’s health/finances with 50% subsidy incentive. But the program failed due to construction, maintenance, and corruption issues. Women still rely on chulha despite hazards.
- Cooking is 80% of rural Indian household’s energy use. 668m people in India use biomass for cooking/lighting, despite LPG scheme success. Fuel price inflation and subsidy withdrawal force women to use chulha with hazards.
India Energy Week 2023
- India’s G20 Presidency: India Energy Week 2023 is being organised during India’s G20 Presidency, under the tagline “Growth, Collaboration, Transition”, from 6-8 February 2023 in Bengaluru.
- Opportunity for India: It provided a unique opportunity to showcase India as both an engine of global economic growth and a driver for global consumption, supported by a conducive and investment-friendly environment, and a skilled workforce.
- Opportunity for strategic policy making and knowledge sharing: IEW 2023 was an unprecedented opportunity for regional, international leaders and CEOs to come together for strategic policy making and technical knowledge sharing.
Why In India?
- India is projected to witness the largest increase in energy demand of any country over the next two decades, as its economy continues to grow and create opportunities for its people to fulfil their potential.
- India’s share in global energy consumption will rise from 7% to 14% by 2050
- IEA predicts India will account for 25% of energy demand growth from 2020 to 2040
- India’s oil and gas demand will triple by 2050
- Gas consumption to grow threefold by 2030
- Share of gas in energy mix to rise from 6.3% today to 15% by 2030
Do you know “THE PANCHAMRIT” (The five-nectar-element commitments)?
1. Indian Will take its non-fossil energy capacity to 500 GW by 2030.
2. Indian will meet 50 % of its energy requirements from renewable energy by 2030.
3. India will reduce the total projected carbon emissions by one billion tonnes from now till 2030.
4. By 2030, India will reduce the carbon intensity of its economy by less than 45 percent.
5. By the year 2070, India will achieve the target of net zero
Conclusion
- Surya Nutan has the potential to transform our energy security situation, as India currently imports 50% of its LPG requirements. It also reduces India’s CO2 emissions drastically and keeps our citizens insulated from the vagaries of the high international fossil fuel prices. India’s energy transition will play a pivotal role in global energy markets. India Energy Week comes at a critical time, with the challenges of energy security and environmental sustainability impacting long-term energy transition and paths towards decarbonisation.
Mains Question

Q. Indian Oil Corporation recently launched the Surya Nutan a solar cook-stove at the India Energy Week 2023. Discuss its salient features and potential benefits for energy security for rural households.

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February 27, 2023
UPI: Internationalization of Digital Payments
Central Idea
- On Tuesday, the Union government unveiled India’s first cross-border real-time payments systems linkage, with the Unified Payments Interface (UPI) connecting with Singapore’s PayNow payment system.
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What is Unified Payments Interface (UPI)
- UPI is India’s mobile-based fast payment system, which facilitates customers to make round-the-clock payments instantly, using a Virtual Payment Address (VPA) created by the customer.
- It eliminates the risk of sharing bank account details by the remitter.
- UPI supports both Person-to-Person (P2P) and Person-to-Merchant (P2M) payments and it also enables a user to send or receive money.
What is PayNow?
- It is a fast payment system in Singapore.
- It enables peer-to-peer funds transfer service, available to retail customers through participating banks and Non-Bank Financial Institutions (NFIs) in Singapore.
- It allows users to send and receive instant funds from one bank or e-wallet account to another in Singapore by using just their mobile number, Singapore National Registration Identity Card (NRIC)/Foreign Identification Number (FIN), or VPA.
Overview: Remarkable success of UPI
- Changed the landscape of electronic payments: The introduction of UPI in 2016-17 led to a dramatic change in the electronic payments landscape of the country.
- Instrumental in dramatic growth of digital payments: Along with the JAM trinity of Jan Dhan, Aadhaar and mobile phones, this payment architecture has been instrumental in facilitating the dramatic growth of digital payments in the country, aided by a conducive regulatory framework.
- Value and volume increasing day by day: Over the years, various reports by the RBI have documented the significant increase in digital payments transactions in the country, with per person digital transactions growing both in terms of value and volume.
- Dramatic surge during the pandemic: Contactless payments also witnessed a surge during the pandemic. In fact, as per another study, roughly one-third of households surveyed had transacted digitally for the first time during the lockdown.
- Statistics for instance:
1. In January 2023, roughly 8 billion transactions were carried out on the UPI platform, whose value touched almost Rs 13 lakh crore.
2. In comparison, in January 2020, just prior to the pandemic, 1.3 billion transactions were routed through the UPI platform, which touched Rs 2.1 lakh crore in value.
- Aided in accelerating financial inclusion: The convenience of real-time transfer of payments, the zero-cost framework for users, the rapid expansion in the acceptance touch-points, have encouraged its widespread adoption. This has also aided in accelerating financial inclusion by providing access to financial services at low cost.
Did you know? “UPI Lite”
- UPI Lite is a on device wallet feature similar to the ones seen on popular digital payment apps such as Paytm, Freecharge, MobiKwik and others.
- The feature will allow you to make faster near real-time small value payments without internet connection via the money added in the wallet.
- In phase one, UPI Lite will process transactions in near offline mode i.e. debit offline and credit online, and at a later point, UPI Lite will process transactions in complete offline mode i.e. debit and credit both offline.
All you need to know about UPI-PayNow interlinkage facility
- How is the interlinkage benefit users?
1. With this facility, funds held in bank accounts or e-wallets can be transferred to /from India using just the UPI ID, mobile number, or Virtual Payment Address (VPA), which is essentially the address to or through which you can make UPI money transfers.
2. With this payment facility, both inward and outward remittances will happen instantly.
- Who can undertake remittance transactions through this facility: Account holders of participating banks and financial institutions in India and Singapore.
- Participating banks in India and Singapore:
1. Banks from India are Axis Bank, DBS Bank India, ICICI Bank, Indian Bank, Indian Overseas Bank and State Bank of India (SBI). Going forward, the UPI-PayNow interlinkage will cover more banks and financial institutions.
2. From Singapore, DBS Bank Singapore and Liquid Group (Non-Bank Financial Institution) are selected.
3. Popular payment platforms such as PhonePe and Google Pay have been excluded from the ambit of this framework. Perhaps, over time, these platforms will also be brought under this framework, aiding in its widespread adoption.
- The daily transaction limit:
1. Banks in India have not communicated about any restrictions on transfers yet.
2. It is Rs 60,000 (around SGD 1,000). Initially, DBS customers can use PayNow-UPI only to transfer funds up to SGD 200 per transaction, capped at SGD 500 per day.
3. There is no such communication about capping for transferring funds through Liquid Group (Non-Bank Financial Institution) to India.
Conclusion
- The UPI-PayNow interlinkage is a milestone moment for cross-border transfers. Not only India but the world has witnessed how UPI revolutionized the landscape of domestic digital payment infrastructure. With this encouraging development we are now going to see a similar revolution in the cross-border payments space as well. This internationalization of the digital payments architecture, will help bring down both the cost and the time associated with such transfers, bringing benefits to migrant workers, students, and professionals, among others.
Mains Question

Q. Recently India launched its first cross-border real-time payments systems linkage with Singapore. In this light highlight Discuss remarkable success of UPI and prospect of internationalization of UPI.

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February 23, 2023
India’s Central bank digital currency (CBDC) in detail
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Context
- The Reserve Bank of India (RBI) has launched the first pilot of the retail digital rupee, also known as e₹-R, on December 1, 2022. The digital token that represents legal tender will be issued in the same denominations as paper currency and coins. The RBI’s pilot on the digital rupee will test the robustness of the new system. Let’s understand it in detail.
The first pilot project of retail digital rupee
- Allowed banks: Initially, only four banks- State Bank of India, ICICI Bank, Yes Bank and IDFC First Bank in four cities have been allowed to offer e₹-R. The scope of the pilot will be increased gradually to include more banks, users and locations.
- Transaction: People will get e₹-R from banks and will be able to make transactions via their digital wallets. The digital rupee can be stored on mobile phones or devices.
What is a Central bank digital currency (CBDC)?
- Like fiat currency in digital form: CBDC is a legal tender issued by the central bank in digital form. Like rupee notes or coins, which are in physical form. Like fiat currency, it can also be exchanged between people. Simply, put it’s just like rupee (₹) notes but in digital form (e₹). You can also exchange e₹ for physical currency notes.
- Unlike fiat currency no need to have account: However, unlike fiat currency that’s usually stored in banks and hence their liability, CBDC is a liability on the RBI’s balance sheet. That’s why you don’t necessarily need to have a bank account to own a digital rupee.
Why do we need CBDC?
- Cost efficient management: CBDC will cut the cost related to physical cash management. India spent ₹4,984.80 crore on printing money in FY22 and ₹4,012.10 crore a year before that. These expenses are borne by people, businesses, banks and the RBI. e₹ cuts all kinds of printing, storage, transportation and replacement and settlement costs. Though the RBI will invest a significant amount in building CBDC infrastructure, subsequent marginal operating costs will be very low.
- Boost to digital economy and financial inclusion: It’ll fulfil the higher cash requirement of the country. The government will be able to make money available in areas where it’s a challenge to provide physical cash. Also, it’ll boost India’s digital economy, enhance financial inclusion, and make the financial system efficient.
- People will have money in uncertain times: Since e₹ is the central bank money, in any uncertain situation like COVID-19, it’ll save people’s savings. Banks only insure deposits up to Rs 5 lakh. In case of defaults, people could lose their savings.
- Multiple saving and transaction options: e₹ will provide you with other options like e-wallets, mobile banking, and UPI to make payments.
- Much safer payment option: e₹ is a safe central bank instrument, with direct access to the RBI money for payment and settlement. It is an electronic version of cash, whose main use case is retail
Will CBDC replace UPI?
- Not expected to substitute but supplement payment option: The CBDC-based payment system is not expected to substitute other modes of existing payment options. It will supplement by providing another payment avenue to people.
- India already has a sound payment system: UPI uses your money deposited with banks but with CBDC, the money becomes the liability of RBI India already has a sound payment system, with payment products like RTGS, NEFT and UPI, etc., coupled with an exponential increase in digital transactions.
No interest on e₹? but why?
- No interest on digital money: According to the RBI, if it starts paying interest on digital money, it could lead to a massive disintermediation in the financial system, in which banks will lose deposits, and thus hurt their credit creation capacity in the economy.
- Rationale behind No interest on digital rupee: Banks may be compelled to increase deposit rates, which will increase their costs of funding and decrease net interest income. Ultimately, the cost will be passed on to borrowers.
- CBDC will be attractive payment option without interest: If there is no interest, CBDC can still be attractive as a medium of payment, even while its attractiveness as a savings instrument diminishes. Also, banks would restrain themselves from distributing CBDCs if they find it as a threat to bank deposits, which can hamper credit flows and the adoption of CBDCs.
How will CBDC be different from crypto?
- CBDC is Algorithm based unlike crypto mining: The central bank will be issuing CBDCs based on algorithm-driven processes, rather than mining through competitive reward methods. These algorithms will have energy efficiency and environmental friendliness as their core principles, unlike private crypto mining.
- Less energy consumption unlike crypto: Therefore, issuance and management of CBDCs are expected to have much lesser energy consumption vis-à-vis more energy-intensive processes normally associated with the mining and distribution of private cryptocurrencies.
- Legal consumer protection: Unlike private cryptos wherein any individual can compete to mine and create the cryptocurrency, only the central bank can issue the CBDC and can simply opt for conversion of the bank’s existing balances to CBDC balances. So, CBDCs will provide the public with the benefits of virtual currencies, while ensuring consumer protection by avoiding the damaging social and economic consequences of private virtual currencies.
Why India needs a digital rupee?
- Online transactions: India is a leader in digital payments, but cash remains dominant for small-value transactions.
- High currency in circulation: India has a fairly high currency-to-GDP ratio.
- Cost of currency management: An official digital currency would reduce the cost of currency management while enabling real-time payments without any inter-bank settlement.
Conclusion
- e₹-R is a digital token that has real value like rupee notes or coins. CBDC will make transactions and currency exchange smoother, and it’ll boost financial inclusion. The RBI’s pilot on the digital rupee will test the robustness of the new system.
Mains question

Q. What is central bank digital currency? Why do we need CBDC? It is said that digital rupee is different from crypto currency. Discuss.

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December 3, 2022
Is India a Diabetes capital of the world?
Context
- India is often referred to as the ‘Diabetes Capital of the World as it accounts for 17%percent of the total number of diabetes patients in the world. There are currently close to 80 million people with diabetes in India and this number is expected to increase to 135 million by 2045. World Diabetes day is observed on 14 November.
What is Diabetes?
- Diabetes is a chronic (long-lasting) health condition that affects how our body turns food into energy.
- Diabetes is a metabolic disorder in which the body has high sugar levels for prolonged periods of time.
- The lack of insulin causes a form of diabetes.
- Type-I Diabetes: It is a medical condition that is caused due to insufficient production and secretion of insulin from the pancreas. Type 1 diabetes is thought to be caused by an autoimmune reaction (the body attacks itself by mistake). This reaction stops your body from making insulin. Approximately 5-10% of the people who have diabetes have type 1
- Type-2 diabetes: With type 2 diabetes, your body doesn’t use insulin well and can’t keep blood sugar at normal levels. About 90-95% of people with diabetes have type 2.
Type-2 diabetes in brief
- Long term Condition: It is long-term (chronic) condition which results in too much sugar circulating in the bloodstreams and poor response of insulin. Eventually, high blood sugar levels can lead to disorders of the circulatory, nervous and immune systems. Type 2 diabetes is an impairment in the way the body regulates and uses sugar (glucose) as a fuel. It is a defective response of Insulin
- More common in adults: Type 2 is more common in older adults, but the increase in the number of children with obesity has led to more cases of type 2 diabetes in younger people.
- Slow signs and symptoms: Signs and symptoms of type 2 diabetes often develop slowly. Symptoms include, Increased thirst, Frequent urination, Increased hunger, Unintended weight loss, Fatigue, Blurred vision, Slow-healing sores, Frequent infections etc. It develops over many years and is usually diagnosed in adults (but more and more in children, teens, and young adults).
- Cure for Type-2: There’s no cure for type 2 diabetes, but losing weight, eating well and exercising can help you manage the disease. If diet and exercise aren’t enough to manage your blood sugar, you may also need diabetes medications or insulin therapy.
What is insulin?
- Insulin is a hormone produced by the pancreas.
- Insulin regulates the movement of sugar into your cells.
- Blood glucose levels tightly controlled by insulin.
- When the blood glucose elevates (for example, after eating food), insulin is released from the pancreas to normalize the glucose level
The prevalence of diabetes in India
- People living with Diabetes in India: There are an estimated 77 million people with diabetes in India. Which means one in every 10 adults in India has diabetes. Half of those who have high blood sugar levels are unaware. Even among those who have been diagnosed with diabetes, only half of them have their blood sugar level under control.
- Rapid increase in younger population: According ICMR report, the prevalence of diabetes in India has increased by 64 percent over the quarter-century. prevalence among the younger population has also increased above 10%.
- Children impacting more: Worryingly, in India, a large number of children are also impacted by diabetes. Children are developing obesity and metabolic syndrome early because of the change in diets to more processed and fast foods.
- Projected Estimation: About 98 million Indians could have diabetes by 2030, these projections come from the International Diabetes Federation and the Global Burden of Disease project.
- Children impacting more: Worryingly, in India, a large number of children are also impacted by diabetes. Children are developing obesity and metabolic syndrome early because of the change in diets to more processed and fast foods.
Why Indians are more prone to diabetes?
- Lifestyle changes: The current exponential rise of diabetes in India is mainly attributed to lifestyle changes. The rapid change in dietary patterns, physical inactivity, and increased body weight, especially the accumulation of abdominal fat, are some of the primary reasons for increased prevalence.
- Ethnically more prone: Ethnically, Indians seem to be more prone to diabetes as compared to the Caucasians, although the precise mechanisms are not well known. we Indians have a greater degree of insulin resistance which means our cells do not respond to the hormone insulin. And when compared to Europeans, our blood insulin levels also tend to rise higher and more persistently when we eat carbohydrates.
- Greater genetic predisposition: The epidemic increase in diabetes in India along with various studies on migrant and native Indians clearly indicate that Indians have an increased predilection to diabetes which could well be due to a greater genetic predisposition to diabetes in Indians.
- Decrease in traditional diets: At the same time, the increased ‘westernization’, especially in the metros and the larger cities, has led to a drastic change in our dietary pattens. Indian diets have always been carbohydrate-heavy and now the reliance on refined sugars, processed food in the form of quick bites and fuss-free cooking and trans fatty acids are creating havoc.
- Mechanization of day-to-day work: With the increasing availability of machines to do our work, there’s also a substantial drop in day-to-day activities.
- Consumption of high calorie food and lack of physical activities: Obesity, especially central obesity and increased visceral fat due to physical inactivity, and consumption of a high-calorie/high-fat and high sugar diets, thus become major contributing factors.
- Rapid urbanization: Currently, India is undergoing a rapid epidemiological transition with increased urbanization. The current urbanization rate is 35% compared to 15% in the 1950’s and this could have major implications on the present and future disease patterns in India with particular reference to diabetes and coronary artery disease.
- Rural-urban migration: The rural migration to urban areas and associated stress plays a significant role in lifestyle change.
Ways to manage Increasing Diabetes in India
- Aggressive Screening procedures: Indians need an upstream approach or prioritizing protection of the population as a whole, beginning with women and children. This can be done with aggressive screening procedures. “Anybody above 18, with a clear-cut risk like family history, weight issues and young women with polycystic ovarian syndrome (PCOS) should be tested. All Indians above 30 should be screened.
- Timely diagnosis and right management: Medical experts feel that timely detection and right management can go a long way in helping patients lead a normal life.
- Diet discipline for children: For children, Doctors recommends a serious diet discipline. “Only healthy meals are the option that remains. Tutor the tastebuds of the young and stop their access to fast foods. There can be supportive policy measures making healthy fruits and vegetables accessible in a cost-effective manner to all instead of plain carbs. The mid-day meal or tiffin needs to be looked at thoughtfully and to make it healthy.
- Promoting physical activities: “The overall decline in physical activity has had devastating impacts on our metabolism,” while agreeing with the 30-minute a day exercise and activity schedule, sounds a note of caution. The recent scientific evidence suggests even five minutes of walk after any meal provides some protection.
- Adopting healthy Lifestyle: Though a chronic medical condition, Diabetes can be curbed at the initial level by introducing lifestyle changes. Experts suggests, reduce stress; sleep on time and for minimum of seven hours, maintaining ideal body weight, regular physical activity stop smoking, stopping/ minimum alcohol intake and get early treatment for any pre-existing or co-morbid health condition such as hypertension.
- Regular check-ups: Regular visits to the doctor are important to assess sugar control and assessment/ prevention of complications related to the disease.
Conclusion
- With the country having the highest number of diabetic patients in the world, the sugar disease is posing an enormous health problem to our country today. According to a World Health Organization (WHO) fact sheet on diabetes, an estimated 3.4 million deaths are caused due to high blood sugar in the world.
Mains Question

Q. Diabetes is increasing alarmingly across all age groups in India. Discuss the reasons and suggest measures to manage epidemic of diabetes if it is not curable?

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November 18, 2022
Countering Chinese monopoly in Electric vehicle market
Context
- The start of COP27 in Egypt has renewed the world’s focus on climate change. Electric vehicles (EVs) are key in the global quest to decarbonizing. In India, which also faces serious air pollution issues, the transition to EVs is critical. However, there is a China-size risk in the supply chain for electric vehicles. The recent saber-rattling across the Taiwan Straits ought to be a warning for the world. Given India’s troubled relationship with China, the risk may be even more acute.
What are Electrical vehicles (EV’s)?
- Electric vehicles (EV) are a part of the new normal as the global transportation sector undergoes a paradigm shift, with a clear preference towards cleaner and greener vehicles.
- The electric vehicle is a vehicle that runs on electricity alone. Such a vehicle does not contain an internal combustion engine like the other conventional vehicles. Instead, it employs an electric motor to run the wheels.
The global status of EVs production and supply chain.
- 50% of global EV’s production comes from China: EVs themselves, China has a share of around 50 per cent in global production.
- 25% from Europe: Europe is a distant and stands at second position with 25 per cent.
- 10% from US: Surprisingly, the US is a small player in the EV supply chain, producing only 10 per cent of vehicles and containing just 7 per cent of battery production capacity.
- India’s position is still not noteworthy: India does not feature as a player of note.
What makes China a dominant player in EVs supply chain?
- Every part of EV concentrated in China: According to a recent report by the International Energy Association, every part of the EV supply chain is highly concentrated, mostly in China.
- High global mining output of Key minerals, specifically graphite: The first stage of the supply chain is the key minerals required for batteries, namely lithium, nickel, cobalt and graphite, In graphite, China has an 80 per cent share of global mining output.
- Chinese control over Politically unstable DRC’ Mines of cobalt: In Cobalt, the politically highly unstable Democratic Republic of Congo mines two-thirds of the global supply and Chinese companies control a big share of that country’s mining.
- China dominates the processing of ore/minerals: Globally, over 60 per cent of lithium processing, over 70 per cent of cobalt processing, 80 per cent of graphite processing and about 40 per cent of nickel processing takes place in China.
- China’s heavy production of cell components: Other than Japan and south korea, China produces two-thirds of global anodes and three-fourths of cathodes.
- Same case with the battery cells: China has a 70 per cent share in the production of battery cells.
The status of Governmental spending’s of energy transition
- China the biggest spender on energy transition: According to a report by Bloomberg’s New Energy Fund (NEF), in 2021, out of a total global spend of $750 billion in climate-related investments (90 per cent of which went into renewable energy and electric transport), China alone spent $266 billion.
- US stands at second: The US was a distant second with $114 billion. The major countries of Europe combined would equal the US. In Europe, about 75-80 per cent of the spending is on EVs, which is why it leads the US in this sector.
- India holds 7th rank but needs a focused approach: India was in 7th place not a bad rank to occupy with $14 billion invested. However, almost 40 per cent of Chinese and US spending was on EVs, while more than 95 per cent of India’s spending is on renewable energy. In India, despite intent, EVs have not received sufficient investment.
What Strategy India can follow?
- Accelerating the mechanism of acquiring overseas mines of critical minerals: A recently formed government venture, KABIL, which is a JV between three minerals and metals PSUs, is tasked with the job of identifying and acquiring overseas mines
- Liberalizing the domestic exploration policies: An alternate option is to liberalize exploration policies domestically, benchmark them with global best practices and invite global investors to find and mine in India.
- Stitching up the supply alliances: It is important to stitch up supply alliances with countries ex-China, as has been done with Australia. At higher ends of the value chain, from battery cells onwards, there is a need to invest much more in R&D.
- Making vibrant start up ecosystem and public private partnership: A public-private partnership is vital. The vibrant startup ecosystem must be leveraged because it is more likely to be innovative than legacy firms.
Do you know The Khanij Bidesh India Limited (KABIL)?
- A joint venture company namely Khanij Bidesh India Ltd. (KABIL) set up with the participation of three Central Public Sector Enterprises namely, National aluminium Company Ltd.(NALCO), Hindustan Copper Ltd.(HCL) and Mineral Exploration Company Ltd. (MECL).
- The objective of constituting KABIL is to ensure a consistent supply of critical and strategic minerals to Indian domestic market. While KABIL would ensure mineral security of the Nation, it would also help in realizing the overall objective of import substitution
Conclusion
- The dragon has showed its evil side during the pandemic. China is weaponizing the trade to counter its adversaries. Excessive reliance on China for critical mineral resources is like falling into China’s trap. India and world need to restrain China to have monopoly over Electric Vehicle market.
November 14, 2022
Balancing the Free Speech and Social Media Regulation
Context
- Recently Facebook, one of the social media giant set up the Oversight Board, an independent body, which scrutinizes its ‘content moderation’ practices.
What are the IT rules of 2021?
- Regulating social media intermediaries (SMIs): World over, governments are grappling with the issue of regulating social media intermediaries (SMIs).
- Addressing the issues of SMI controlling the free speech: Given the multitudinous nature of the problem the centrality of SMIs in shaping public discourse, the impact of their governance on the right to freedom of speech and expression, the magnitude of information they host and the constant technological innovations that impact their governance it is important for governments to update their regulatory framework to face emergent challenges.
- Placing obligations on SMI: In a bid to keep up with these issues, India in 2021, replaced its decade old regulations on SMIs with the IT Rules, 2021 that were primarily aimed at placing obligations on SMIs to ensure an open, safe and trusted internet.
What are the recent amendments?
- Draft amendments in June 2022, the stated objectives of the amendments were threefold.
1. Protecting the constitutional rights: There was a need to ensure that the interests and constitutional rights of netizens are not being contravened by big tech platforms,
2. Grievance redressal: To strengthen the grievance redressal framework in the Rules,
3. To avoid the dominance: That compliance with these should not impact early-stage Indian start-ups.
- This translated into a set of proposed amendments that can be broadly classified into two categories.
1. Additional obligation on SMI: The first category involved placing additional obligations on the SMIs to ensure better protection of user interests.
2. Appellate mechanism: The second category involved the institution of an appellate mechanism for grievance redressal.
Why social media is said to be double-edged sword?
- Moderation of content by platforms: Social media platforms regularly manage user content on their website. They remove, priorities or suspend user accounts that violate the terms and conditions of their platforms.
- Excessive power in government’s hands: In today’s online environment, however, the existing government control on online speech is unsustainable. Social media now has millions of users. Platforms have democratized public participation, and shape public discourse.
- Platforms of democratic freedom: As such, large platforms have a substantial bearing on core democratic freedoms.
- Hate speech on internet: Further, with the increasing reach of the Internet, its potential harms have also increased. There is more illegal and harmful content online today.
- Disinformation campaigns: On social media during COVID19 and hate speech against the Rohingya in Myanmar are recent examples.
What could be the balanced approach between free speech and regulation?
- Government orders must be respected: Government orders to remove content must not only be necessary and proportionate, but must also comply with due process.
- Example of DSA: The recent European Union (EU) Digital Services Act (DSA) is a good reference point. The DSA regulates intermediary liability in the EU. It requires government takedown orders to be proportionate and reasoned.
- Platforms can challenge the governments order: The DSA also gives intermediaries an opportunity to challenge the government’s decision to block content and defend themselves. These processes will strongly secure free speech of online users. Most importantly, an intermediary law must devolve crucial social media content moderation decisions at the platform level.
- An idea of co-regulation: Platforms must have the responsibility to regulate content under broad government guidelines. Instituting such a coregulatory framework will serve three functions.
1. Platforms will retain reasonable autonomy over their terms of service: Coregulation will give them the flexibility to define the evolving standards of harmful content, thereby obviating the need for strict government mandates. This will promote free speech online because government oversight incentivizes platforms to engage in private censorship. Private censorship creates a chilling effect on user speech. In turn, it also scuttles online innovation, which is the backbone of the digital economy.
2. Coregulation aligns government and platform interests: Online platforms themselves seek to promote platform speech and security so that their users have a free and safe experience. For instance, during the pandemic, platforms took varied measures to tackle disinformation. Incentivizing platforms to act as Good Samaritans will build healthy online environments.
3. Outsourcing the content regulation: instituting coregulatory mechanisms allows the state to outsource content regulation to platforms, which are better equipped to tackle modern content moderation challenges.
- Platforms must follow the due process of law: Platforms as content moderators have substantial control over the free speech rights of users. Whenever platforms remove content, or redress user grievance, their decisions must follow due process and be proportionate. They must adopt processes such as notice, hearing and reasoned orders while addressing user grievances.
- Transparency in algorithm: Platform accountability can be increased through algorithmic transparency.
Conclusion
- The GACs must be re-looked because they concentrate censorship powers in the hands of government. A Digital India Act is expected to be the successor law to the IT Act. This is a perfect opportunity for the government to adopt a coregulatory model of speech regulation of online speech.
Mains Question

Q. Social media is a double-edged sword in the realm of free speech. Substantiate. Explain in detail the Idea of coregulation of social media.

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November 9, 2022