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Day: October 4, 2025

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Foreign Policy Watch: India-Pakistan

[4th October 2025] The Hindu Op-ed: The maritime signalling after Operation Sindoor

op-ed snap | International Relations | Mains Paper 2: India & Its Neighborhood - Relations

PYQ Relevance

[UPSC 2022] What are the maritime security challenges in India? Discuss the organizational, technical and procedural initiatives taken to improve the maritime security.

Linkage: The post-Operation Sindoor naval manoeuvres highlight India’s evolving response to maritime security challenges, reflecting the same organizational, technical, and procedural upgradation, from indigenous fleet expansion (INS Nistar) to enhanced Indo-Pacific coordination, envisaged in this PYQ.

Mentor’s Comment

Operation Sindoor may have concluded in the skies, but its echoes now reverberate across the sea. With both India and Pakistan recalibrating their naval postures, the maritime domain has emerged as the new theatre of strategic competition. This article explores how post-Sindoor developments from naval manoeuvres to capability upgrades are reshaping deterrence dynamics, inviting questions about escalation control, external involvement, and evolving doctrines in the Indian Ocean.

Introduction

While the standoff with Pakistan in May 2025 ended in the air domain, subsequent developments reveal a strategic shift to the maritime theatre. Both nations are now engaged in assertive naval signalling, deploying assets, testing missiles, and broadcasting intent. India’s Operation Sindoor, initially a demonstration of naval deterrence, has transitioned into a long-term posture recalibration with new vessels, strategic patrols, and sharper rhetoric. Defence Minister Rajnath Singh’s warning on October 2 about a “resounding response” to any Pakistani misadventure in the Sir Creek region, coupled with Pakistan’s launch of the Hangor-class submarine PNS Mangro and missile tests, underline a renewed contest at sea. This is significant — because for decades, the India-Pakistan rivalry was air and land-focused, not maritime. The sea, it seems, is now the new frontier of strategic signalling.

Why in the News

The post-Operation Sindoor phase marks the first time in decades that India and Pakistan are simultaneously signalling deterrence through sustained maritime manoeuvres, overlapping missile tests, and forward deployments. India has conducted its first joint patrols with the Philippines in the South China Sea and commissioned the indigenously designed INS Nistar. Pakistan, meanwhile, has expanded naval activity from Karachi to Gwadar, launched new submarines and ballistic missiles, and tested the P282 ship-launched missile. This pattern is unprecedented not just in intensity but in its potential to redefine deterrence stability and crisis escalation in the Indian Ocean.

Why is the Maritime Theatre Gaining Strategic Centrality?

  1. Shift from air to sea: After Operation Sindoor’s air engagement, both sides are redirecting deterrence signalling to the Arabian Sea, with forward deployments and missile tests.
  2. Recalibration of naval posture: India’s Operation Sindoor emphasised a forward deterrent posture, a readiness to act first if provoked.
  3. Symbolic rhetoric: Defence Minister Rajnath Singh’s statement evoking the 1965 war reinforced the seriousness of India’s deterrent message.

What Signals Are India and Pakistan Sending at Sea?

  1. India’s assertive posture: Through INS Nistar, stealth frigates, and joint patrols, India projects both self-reliance and Indo-Pacific alignment.
  2. Pakistan’s parallel moves: Launch of PNS Mangro, expansion of infrastructure in Sir Creek, and P282 missile tests signify deterrence-by-denial.
  3. Operational friction: Overlapping NOTAMs and live-fire drills, sometimes just 60 nautical miles apart, indicate heightened tension and risk of miscalculation.

How Does the Naval Balance of Power Look Now?

  1. India’s advantage but narrowing: Despite a numerical and geographical edge, India’s fleet faces ageing issues, raising modernization concerns.
  2. Pakistan’s modernization: With Chinese-designed submarines and Babur-class corvettes from Türkiye, Pakistan’s Navy now wields improved radar, EW, and anti-surface weaponry.
  3. Emerging parity: The Navy Chief’s acknowledgment of Pakistan’s “surprising growth” underscores a reality where India’s maritime superiority is no longer absolute.

What Makes Maritime Escalation More Risky?

  1. Harder escalation control: Unlike air skirmishes, naval engagements are slow, continuous, and harder to de-escalate.
  2. Psychological vulnerability: Memories of 1971 naval strikes amplify Pakistan’s sensitivity; even limited Indian action could trigger disproportionate reaction.
  3. Anti-Access/Area Denial (A2/AD): Pakistan’s Gwadar and Karachi hubs serve both operational and psychological roles in denying India unchallenged dominance.
  4. Chinese factor: The PLAN’s presence at Gwadar increases risk of external entanglement in future crises.

Is There an External and Doctrinal Dimension?

  1. China’s role: Chinese involvement in Gwadar and Karachi raises fears of dual-use support during crises.
  2. Türkiye’s growing linkages: Supply and training cooperation with Pakistan diversify its defence dependencies, complicating India’s strategic calculations.
  3. India’s Indo-Pacific strategy: Joint patrols and multilateral engagement hint at a twofold Indian approach, deterrence towards Pakistan and cooperation across the Indo-Pacific.
  4. Doctrinal drift: Both nations risk anchoring strategy in outdated crisis models, despite new technologies like drones and hypersonic missiles changing escalation ladders.

Does the Emerging Maritime Pattern Help or Hurt Stability?

  1. Persistent signalling: Continuous naval presence, unlike air sorties, lingers — shaping adversarial perception and intent.
  2. Learning by observation: Regular drills, while risky, can create mutual operational awareness that paradoxically reduces fog of war.
  3. Dual outcome: The same actions that raise tensions might also stabilize future crises through transparency of capability and doctrine.

Conclusion

Operation Sindoor may have ended, but its maritime aftermath is redrawing South Asia’s deterrence geography. The Arabian Sea has emerged as a stage for calibrated signalling, doctrinal experimentation, and external power play. India faces a dual challenge to assert deterrence without escalation and prepare for future crises where the sea, not the sky, sets the tone. The Indian Navy’s modernization drive, from indigenously designed vessels to Indo-Pacific collaborations, suggests a conscious shift one that seeks to combine strategic restraint with decisive readiness. The sea, long a silent frontier, is now a theatre of both opportunity and peril.

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Climate Change Impact on India and World – International Reports, Key Observations, etc.

India’s clean energy rise needs climate finance expansion

Explained | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

Introduction

India’s clean energy story has entered a defining phase. With 24.5 GW of solar capacity added in 2024, India now stands as the third-largest solar power contributor in the world, after China and the U.S. This achievement reflects not only technological progress but also the country’s growing global leadership in renewable energy. Yet, behind this success lies a serious constraint, the widening climate finance gap, estimated at over $2.5 trillion by 2030. Without adequate and innovative financing, India’s clean energy momentum risks slowing down, threatening its ability to stay on course for its 1.5°C-aligned climate targets.

Why in the News

India added 24.5 GW of solar capacity in 2024, emerging as the third largest contributor globally, after China and the U.S., a historic leap for a developing country. Recognised in the UN Secretary-General’s 2025 Climate Report alongside Brazil and China, India has shown that clean energy growth can power both employment (over 1 million jobs) and GDP (5% contribution). However, the optimism hides a crisis: a climate finance gap exceeding $2.5 trillion by 2030, threatening to stall India’s 1.5°C-aligned pathway. The stakes are massive — India’s global credibility, energy security, and development model now depend on how swiftly it can scale climate finance.

The Economic Momentum of India’s Clean Energy Transition

  1. 24.5 GW solar addition (2024): Makes India the third-largest solar contributor globally, marking a defining milestone in renewable energy leadership.
  2. Global recognition: The UN 2025 Climate Report identifies India as a leading developing nation in scaling solar and wind energy.
  3. Employment boost: Renewable energy employed over 1 million people in 2023, with off-grid solar alone employing 80,000 (2021).
  4. GDP contribution: Renewables added 5% to India’s GDP growth, underscoring its macroeconomic importance.
  5. International Solar Alliance (ISA): India’s leadership in creating ISA has positioned it as a norm-setter in global clean energy diplomacy.

Where Lies the Climate Finance Gap?

Massive funding shortfall:

  1. $1.5 trillion required (IRENA) by 2030 for a 1.5°C pathway.
  2. $2.5 trillion+ estimated by the Ministry of Finance for national targets — double the earlier projections.
  3. Finance distribution gaps: Needed for battery storage, green hydrogen, grid strengthening, sustainable agriculture, and transport transition.

Green bonds surge:

  1. Cumulative GSS+ debt issuance: $55.9 billion (2024), up 186% since 2021.
  2. Green bonds: Account for 83% of total sustainable issuance.
  3. Private sector dominance: 84% of green bond issuance.
  4. Key concern: MSMEs and agri-tech innovators face barriers in accessing concessional finance and risk-sharing tools.

How Can India Unlock Climate Finance?

  1. Public finance as catalyst: National and State governments must use budget allocations and fiscal incentives to de-risk green investments.
  2. Blended finance models:
    • Credit enhancement tools (partial guarantees, subordinated debt) to improve risk-return profiles.
    • Performance or loan guarantees to unlock finance for Tier II & III cities.
  3. Domestic institutional capital:
    • Mobilising funds from EPFO, LIC, pension and insurance funds for green portfolios.
    • Requires regulatory reforms, ESG frameworks, and green project pipelines.

Policy Innovations and Carbon Market Potential

  • Carbon Credit Trading Scheme: Offers a new finance stream, provided it remains transparent, regulated, and equitable.
  • Adaptation and Loss & Damage Financing: Focus must extend beyond mitigation to resilience building.
  • Tech-driven climate finance: 
    • Use of Blockchain for finance tracking.
    • AI-based risk assessment for green portfolios.
    • Tailored blended finance suited to India’s socio-economic landscape.

Private Sector and Sovereign Initiatives in Climate Finance

  1. Sovereign Green Bonds: Successful issuance has crowded-in private capital for green projects.
  2. SEBI-regulated Social Bonds: Directed funds to education, healthcare, and climate action.
  3. Solar Park Scheme: Competitive auctions have encouraged private investment in large-scale solar infrastructure.

Conclusion

India’s clean energy transition stands at a defining crossroad — its success no longer depends on technology or intent, but on finance. The renewable boom has demonstrated economic and employment dividends, but without a parallel rise in climate finance mechanisms, it risks plateauing. To sustain momentum, India must blend innovation, public-private synergy, and institutional capital. The clean energy rise must now be matched by a climate finance revolution.

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? Explain.

Linkage: The article complements the 2022 question by highlighting that India’s progress toward meeting 50% renewable energy by 2030 hinges on bridging its $2.5 trillion climate finance gap. It emphasizes that shifting fiscal support and private capital from fossil fuels to renewables is crucial to sustain this transition.

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Internal Security Trends and Incidents

A red sunset? Why Maoist movement is on the decline

Explained | Security Issues | Mains Paper 3: External State & Non-State Actors: Challenges To Internal Security.

Introduction

For nearly six decades, the Maoist insurgency has tested India’s state capacity, governance, and security architecture. Born from socio-economic inequalities and agrarian distress, it once posed a threat spanning the “Red Corridor” from Andhra Pradesh to Bihar. However, in 2025, India seems to be witnessing what could be a historical inflection point, a near end of the movement. The combination of relentless security operations, developmental outreach, and ideological erosion has pushed the insurgency to its lowest ebb in history, limited now to just 38 districts.

Why is this in the news?

For the first time in six decades, the Maoist movement has reached the brink of extinction. This sharp decline is a historic reversal from the early 2000s, when the insurgency had spread across nearly 180 districts, posing an existential challenge to internal peace.

The Union Home Ministry’s data for 2025 reveals:

  1. 270 Maoists killed, 680 arrested, and 1,225 surrendered.
  2. The insurgency is now confined to 38 districts, a dramatic fall from its 2005 peak.
  3. Top Maoist leaders, including Mallojula Venugopal Rao, have called for the “cessation of armed struggle”, signaling an ideological collapse within.
  4. This represents a turning point in India’s counter-insurgency history, where military, governance, and psychological strategies appear to have converged successfully.

What led to the decline of the Maoist movement?

  • Relentless Security Operations
    1. Persistent operations by security forces under the Union Ministry of Home Affairs and state police coordination have dismantled Maoist strongholds.
    2. Leaders such as Katta Ramachandra Reddy and Kalayari Reddy have been neutralized, causing organizational paralysis.
  • Curtailment of Resources: Maoists face acute shortages of arms, ammunition, and funding, with security blockades choking supply lines across Bastar-Dandakaranya region.
  • Collapse of Ideological Unity: 
    1. Internal ideological fractures deepened after the deaths of key leaders like Kishenji and Charu Majumdar.
    2. Letters by surviving leaders calling for surrender reflect a moral fatigue within the movement.
  • Tribal Alienation: Once rooted in tribal grievances, the Maoist narrative lost resonance as tribal communities began benefiting from welfare schemes, education, and employment programs.

Has this happened before? Understanding the cyclical pattern

  • Historical Fluctuations: The Maoist movement, born in Naxalbari (West Bengal, 1967), has seen cycles of rise and suppression.
    1. 1970s: Spread into Andhra Pradesh, Chhattisgarh, Jharkhand, and Odisha.
    2. 1990s: Revival through the People’s War Group (PWG).
    3. 2000s: Peak insurgency affecting nearly 180 districts.
  • Distinctiveness of 2025 Phase: Unlike previous lulls, this decline is structural, not temporary—rooted in the erosion of ideology and grassroots support rather than mere state force.

Is the movement really over?

  1. Residual Threats Persist:
    1. Maoist influence lingers in border areas of Chhattisgarh, Jharkhand, and Odisha.
    2. Their transition to smaller, mobile guerrilla units may prolong low-intensity violence.
  2. Surrender vs. Rehabilitation:
    1. While many cadres have surrendered, effective reintegration policies—jobs, skill-building, and psychological counseling—remain key to ensuring they don’t relapse into militancy.
  3. Need for Vigilance: Experts warn against complacency. Maoism thrives in governance vacuums—where corruption, displacement, or inequality persist, new movements could emerge.

What lessons does this offer for internal security and governance?

  1. Integrated Strategy Works: A mix of security action, development, and psychological outreach has proven effective—embodying the “Samadhan Doctrine” (Solution through Smart Leadership, Aggressive Strategy, Motivation, and Action).
  2. Development as Deterrence: Expanding roads, schools, and welfare programs in tribal areas helped dismantle Maoist influence.
  3. Institutional Coordination: Joint efforts by the Centre and States, under continuous review of MHA, have created sustained momentum.

Conclusion

The “Red Sunset” of the Maoist insurgency is not just a victory of arms but a triumph of governance and persistence. India’s approach, combining security precision with socio-economic inclusion, offers a replicable model for countering internal conflicts.

However, sustaining peace will depend on addressing root causes, land alienation, forest rights, and local governance deficits, lest another insurgency rises from the same soil.

PYQ Relevance

[UPSC 2022] Naxalism is a social, economic and development issues manifesting as a violent internal security threat. In this context, discuss the emerging issues and suggest a multilayered strategy to tackle the menace of Naxalism.

Linkage: The 2025 developments highlighted in “A Red Sunset” perfectly exemplify how the government’s multi-dimensional approach, combining security operations, socio-economic welfare, and ideological disengagement, has yielded tangible results. It reinforces the UPSC 2022 theme that Naxalism is not merely a law-and-order issue but a socio-economic one demanding a holistic, multilayered strategy.

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Internal Security Architecture Shortcomings – Key Forces, NIA, IB, CCTNS, etc.

Sir Creek Border Dispute

Prelims Only | Security Issues | Mains Paper 3: External State & Non-State Actors: Challenges To Internal Security.

Why in the News?

Union Defence Minister recently warned Pakistan against misadventure in the Sir Creek region, stressing India’s resolve to defend its territorial integrity.

Sir Creek Border Dispute

About Sir Creek:

  • Location & Geography: Sir Creek is a 96-km-long tidal estuary in the Rann of Kutch, forming part of the border between Gujarat (India) and Sindh (Pakistan).
  • Physical Features: It flows into the Arabian Sea, with marshy, saline mudflats that provide vital habitat for migratory birds.
  • Historical Name: Originally known as Ban Ganga, renamed Sir Creek after a British surveyor, Sir Richard Burton (commonly credited).
  • Economic & Strategic Importance: The area hosts rich fishing grounds and potential oil and gas deposits, while being crucial for maritime boundary delimitation and coastal security.

Historical Background of the Dispute:

  • 1908 Conflict: Disagreement between the Kutch ruler (British India) and Sindh government over fishing rights and territorial limits.
  • 1914 Bombay Government Resolution: Placed the boundary along the eastern bank (favouring Sindh/Pakistan), but also referred to the Thalweg Principle, supporting India’s claim.
    • This principle defines the border along the line of greatest depth of a river’s main navigable channel
  • 1924–25 Developments: Boundary pillars were erected and Survey of India maps marked the mid-channel as the boundary, strengthening India’s case.
  • Post-Partition Period: Dispute intensified; following the 1965 India–Pakistan war, the Rann of Kutch issue went to a UN-sponsored Tribunal.
  • 1968 Tribunal Award: Allocated 90% of the Rann to India but excluded Sir Creek, leaving it unresolved.
  • Post-1982 UNCLOS Impact: With the introduction of Exclusive Economic Zones (EEZs), control over Sir Creek gained renewed importance for maritime claims and resource access.

India’s Position:

  • Navigability Claim: India asserts that Sir Creek is navigable at high tide, making the Thalweg Principle applicable.
  • Legal & Historical Basis:
    • 1925 Resolution and Survey of India maps.
    • Boundary pillars of 1924 marking mid-channel.
    • 1819 Treaty between East India Company and Kutch rulers, showing continued Indian jurisdiction.
  • Geographical Argument: India maintains the Rann is land, not water, invalidating Pakistan’s demand for median-line division.
  • Strategic Implication: Acceptance of India’s position ensures larger EEZ access, security leverage, and greater control in the Arabian Sea.
[UPSC 2022] Consider the following countries:

1. Azerbaijan 2. Kyrgyzstan 3. Tajikistan 4. Turkmenistan 5. Uzbekistan

Which of the above have borders with Afghanistan ?

Options: (a) 1, 2 and 5 only (b) 1, 2, 3 and 4 only (c) 3, 4 and 5 only* (d) 1, 2, 3, 4 and 5

 

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Festivals, Dances, Theatre, Literature, Art in News

Thumri maestro Pandit Chhannulal Mishra passes away

Prelims Only | Art and Culture | Mains Paper 1: Arts & Culture

Why in the News?

Pandit Chhannulal Mishra, a maestro of Hindustani classical music and Padma Vibhushan recipient, passed away at 89.

Who was Pandit Chhannulal Mishra?

Thumri maestro Pandit Chhannulal Mishra passes away

  • Background: Born in 1936 in Varanasi, Pandit Chhannulal Mishra emerged from a modest family to become one of India’s greatest Hindustani classical vocalists.
  • Musical Lineage: Foremost exponent of the Purab Ang Thumri of the Banaras Gharana, blending the melodic precision of Kirana with the emotive depth of Banaras traditions.
  • Artistic Range: Mastered Thumri, Dadra, Kajri, and Chaiti, combining folk vitality and classical discipline—hallmarks of the Kashi musical spirit.
  • Voice & Expression: His gravelly, resonant voice conveyed devotion, mysticism, and deep emotion, evoking Lord Shiva, the Ganga, and the eternal mood of Banaras.
  • Cultural Symbol: Alongside Ustad Bismillah Khan, he personified the Ganga–Jamuni tehzeeb, symbolising the harmony of Hindu–Muslim artistic traditions.
  • Honours: Recipient of the Padma Vibhushan, his legacy unites classical rigor, folk heart, and spiritual emotion in a single aesthetic stream.

About Thumri Music:

  • Nature: Thumri is a semi-classical vocal genre of North India known for its emphasis on emotion (bhava) rather than rigid raga structure.
  • Origin: Developed in the 19th century under Nawab Wajid Ali Shah of Lucknow; later enriched in Banaras, where it absorbed devotional and folk influences.
  • Etymology: Derived from thumakna (“to walk gracefully”), reflecting its rhythmic, fluid, and expressive nature tied to Kathak dance.
  • Themes: Revolves around Sringara rasa—love, separation, and devotion—especially Radha-Krishna narratives; often sung from a female perspective.
  • Language: Primarily in Braj Bhasha, Awadhi, and Hindi, with traces of Urdu and Sanskrit.
  • Musical Features:
    • Uses popular ragas like Bhairavi, Khamaj, Kafi and tālas like Dadra and Keherva.
    • Allows improvisation, vocal ornamentation (murki, meend, gamak), and interpretive freedom.
  • Forms of Thumri:
    • Bandish-ki-Thumri: Structured composition, rhythmically defined.
    • Bol-Banao Thumri: Lyrical, slow, emotive style allowing deeper expression.
  • Major Gharanas:
    • Lucknow Gharana: Courtly refinement and dance association (Begum Akhtar).
    • Banaras Gharana: Devotional Purab Ang tradition (Girija Devi, Rasoolan Bai, Siddheshwari Devi, Chhannulal Mishra).
    • Patiala Gharana: Fast, rhythm-oriented style with tappa influence (Bade Ghulam Ali Khan).

Thumri and Indian Classical Tradition:

  • Position in the Hindustani system:
    • Thumri is semi-classical, bridging the gap between pure classical forms (like Khayal and Dhrupad) and folk/dance traditions.
    • It prioritises emotional storytelling over technical display, making classical music accessible to the wider public.
  • Connection with Kathak:
    • Thumri complements Kathak dance, aiding abhinaya (expressive gesture) through musical narration.
  • Hindustani vs Carnatic contrast:
    • Hindustani classical music (North India) focuses on raga improvisation;
    • Carnatic music (South India) is composition-centric with structured kritis and rigid tala frameworks.
  • Cultural Role:
    • Thumri mirrors the fusion of classical, folk, and devotional idioms, symbolising India’s cultural inclusivity.
    • It thrives on the interplay of bhava (emotion), raga (melody), and laya (rhythm)—a trinity central to Indian aesthetics.
[UPSC 2019] With reference to Mian Tansen, which one of the following statements is not correct? Options: (a)Tansen was the title given to him by Emperor Akbar.*

(b) Tansen composed Dhrupads on Hindu gods and goddesses.

(c) Tansen composed songs on his patrons.

(d) Tansen invented many Ragas.

 

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Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

Govt identifies 100 Aspirational Agriculture Districts (AADs)

Schemes | Agriculture | Mains Paper 3: Agriculture and related issues

Why in the News?

The Centre has announced the identification of 100 Aspirational Agriculture Districts under the Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY) to boost farm productivity, sustainability, and rural incomes.

What are Aspirational Agriculture Districts (AADs)?

  • Overview: The AADs comprise 100 districts across 29 States and Union Territories with low productivity, moderate crop intensity, and limited access to agricultural credit.
  • Selection Basis: Districts were chosen to ensure balanced regional representation, considering each state’s net cropped area and number of operational holdings.
  • Purpose: Designed as focal points for agricultural transformation, akin to the Aspirational Districts Programme (ADP) model for holistic development.
  • Objective: Accelerate agricultural growth and raise farmers’ income through data-driven governance, technology adoption, and scheme convergence.
  • Leading States: Uttar Pradesh (12), Maharashtra (9), Madhya Pradesh & Rajasthan (8 each), and Bihar (7).
  • Implementation Mechanism: Each district formulates a District Agriculture Development Plan (DADP) integrating existing central and state schemes for productivity enhancement, irrigation, crop diversification, and credit inclusion.
  • Monitoring Framework: Employs a performance-based index with measurable outcome indicators for real-time progress tracking.

About Prime Minister Dhan-Dhaanya Krishi Yojana (PMDDKY):

  • Overview: Introduced in July 2025 by the Ministry of Agriculture and Farmers Welfare.
  • Aim: Transform 100 low-performing agricultural districts into high-productivity, market-linked, and climate-resilient hubs.
  • Design: Modeled on the Aspirational Districts Programme, emphasizing saturation-based development in agriculture.
  • Key Objectives:
    • Boost productivity through modern technology and best practices.
    • Promote crop diversification and climate-resilient farming.
    • Expand irrigation coverage and credit access.
    • Strengthen post-harvest infrastructure, storage, and value addition at grassroots levels.
    • Build market linkages and sustainable practices for inclusive rural growth.
  • Implementation Structure:
    • Convergence of 36 schemes from 11 Ministries/Departments, with no separate budget allocation.
    • District PMDDKY Committees, headed by Collectors, plan and execute projects.
    • 100 Central Nodal Officers (CNOs), mostly Joint Secretaries, monitor implementation.
    • A digital dashboard tracks 117 indicators across agriculture, irrigation, and markets.
  • Budget & Duration: Convergence-based outlay of ₹24,000 crore annually for six years (FY 2025–31), benefiting 1.7 crore farmers.
  • Expected Outcomes:
    • Improved productivity, resilience, and market efficiency.
    • Enhanced credit systems and localized agri-infrastructure.
    • Contribution toward “Viksit Bharat 2047” through sustainable agricultural transformation.
[UPSC 2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

  1. Working capital for maintenance of farm assets
  2. Purchase of combine harvesters, tractors and mini trucks
  3. Consumption requirements of farm households
  4. Post-harvest expenses
  5. Construction of family house and setting up of village cold storage facility

Options:

(a) 1, 2 and 5 only

(b) 1, 3 and 4 only *

(c) 2, 3, 4 and 5 only

(d) 1, 2, 3, 4 and 5

 

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Tax Reforms

Niti Aayog proposes Presumptive Taxation for Foreign Companies

Prelims Only | Economics | Mains Paper 3: Government Budgeting

Why in the News?

NITI Aayog has released a working paper recommending the introduction of an optional presumptive taxation scheme for foreign companies operating in India.

What is Presumptive Taxation?

  • Overview: Presumptive taxation allows taxpayers to declare income at a fixed percentage (presumed rate) of total turnover or receipts without maintaining detailed books of accounts.
  • Purpose: Simplifies taxation for small businesses or specific sectors by reducing compliance and administrative burden.
  • Domestic Example: Under the Income Tax Act, Sections 44AD, 44ADA, and 44AE permit presumptive taxation for small businesses, professionals, and transporters.
  • Key Feature:
    • Tax is levied on deemed profits instead of actual income.
    • Taxpayers opting for this scheme are exempt from detailed audits or complex record-keeping.

What has NITI Aayog Proposed?

  • Scope: Extend the presumptive taxation concept to foreign companies operating in India.
  • Objective: To reduce litigation related to Permanent Establishment (PE) status and profit attribution in cross-border taxation.
  • Main Features:
    • Optional Scheme: Foreign companies can either choose the presumptive scheme for certainty or file regular returns if actual profits are lower.
    • Sector-Specific Rates: Different deemed profit rates for sectors such as manufacturing, digital services, and logistics.
    • Safe Harbour Clause: Once a company opts in, tax authorities cannot separately litigate the PE existence for that activity.
    • Alignment with Global Norms: Codify PE and attribution principles in domestic law consistent with OECD standards.
    • Administrative Reforms: Training of tax officials to ensure consistent application in digital and cross-border cases.

Significance:

  • Provides tax certainty and simplicity for foreign investors.
  • Reduces disputes and promotes ease of doing business.
  • Balances India’s sovereign tax rights with the need for a predictable, investor-friendly regime.
  • Positions India as a more attractive FDI destination, aligned with its economic and tax reform agenda.
[UPSC 2020] With reference to India’s decision to levy an equalization tax of 6% on online advertisement services offered by non-resident entities, which of the following statements is/are correct?

1. It is introduced as a part of the Income Tax Act.

2. Non-resident entities that offer advertisement services in India can claim a tax credit in their home country under the “Double Taxation Avoidance Agreements”.

Select the correct answer using the code given below:

Options: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2 *

 

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