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  • [14th May 2025] The Hindu Op-ed: Ecology is the world’s permanent economy

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    PYQ Relevance:

    [UPSC 2024] The groundwater potential of the gangetic valley is on a serious decline. How may it affect the food security of India?

    Linkage: The concept that ecological health (groundwater levels) is fundamental to human survival and security (food security). It highlights how the depletion of a natural resource affects a critical aspect of the economy and human well-being, demonstrating the link between ecology and a “permanent economy” that sustains life.

    Mentor’s Comment: The phrase “Ecology is the permanent economy” means much more than just a catchy line. It reminds us of a basic truth: human well-being depends on the health of nature. We cannot grow our economy without using natural resources, and we cannot keep our economy stable without protecting them. Today, as we face big problems like climate change and loss of wildlife, we need to seriously think about whether we truly understand and follow this idea.

    Today’s editorial discusses the idea that “Ecology is the permanent economy”. This topic is useful for GS Paper III in the UPSC Mains Exam, especially for questions related to the economy and environment.

    _

    Let’s learn!

    Why in the News?

    Understanding the idea that “Ecology is the permanent economy” will help us see that a healthy environment is essential for our survival, a strong economy, and protection against climate change.

    What does the phrase “Ecology is the permanent economy” signify in relation to human prosperity and ecological health?

    • Foundation of Human Survival and Economy: Ecology provides essential resources like air, water, food, and fertile soil — the base of all economic activity. Eg: Agriculture depends on healthy soil, pollinators, and water cycles. Degraded ecosystems lead to crop failures and food insecurity.
    • Long-term Economic Stability Requires Ecological Balance: Sustainable use of natural resources ensures continued economic benefits without exhausting the environment. Eg: Overfishing depletes fish stocks, harming both marine biodiversity and the fishing industry. Conservation efforts like fishing quotas help restore balance and maintain livelihoods.
    • Ecological Health Mitigates Climate and Disaster Risks: Ecosystems act as buffers against natural disasters and climate change impacts, protecting both lives and infrastructure. Eg: Mangroves protect coastal areas from storms and floods. Their destruction increases disaster vulnerability and economic loss.

    How has human evolution led to a disconnection from nature?

    • Shift from Nomadic to Settled Life: Early humans lived in close contact with nature, relying on it for daily survival. With agriculture and settlements, dependency became indirect. Eg: Nomads hunted and gathered in forests, while modern societies buy packaged food, unaware of its natural source.
    • Urbanisation and Infrastructure Development: Rapid urban growth has replaced natural landscapes with concrete, isolating people from natural surroundings. Eg: Children growing up in cities often have limited exposure to forests, rivers, or wildlife.
    • Technological Advancements: Machines, internet, and artificial environments have reduced daily interaction with the natural world. Eg: Air conditioning replaces the need to adapt to seasons; virtual reality replaces outdoor experiences.
    • Consumerism and Resource Overuse: The pursuit of material comfort leads to overexploitation of nature without regard for ecological balance. Eg: Excessive mining or deforestation for products like electronics or furniture disrupts ecosystems.
    • Loss of Traditional Knowledge and Practices: Indigenous ecological wisdom is being lost as modern lifestyles dominate, weakening the cultural connection to nature. Eg: Practices like rainwater harvesting or sacred groves are being forgotten in many regions.

    What impact has this had on biodiversity?

    • Habitat Destruction: Expansion of urban areas, agriculture, and infrastructure has led to large-scale loss of natural habitats. Eg: Deforestation in the Amazon rainforest has destroyed habitats for countless species, pushing many toward extinction.
    • Species Extinction: Disruption of ecosystems and overexploitation of species has accelerated extinction rates. Eg: The dodo bird and the western black rhinoceros became extinct due to hunting and habitat loss.
    • Invasive Species Introduction: Human activities have introduced non-native species that outcompete or prey on native species. Eg: Introduction of Nile perch in Lake Victoria led to the decline of hundreds of native fish species.
    • Pollution and Climate Change: Industrial waste, plastic pollution, and greenhouse gas emissions degrade ecosystems and affect species survival. Eg: Coral bleaching caused by ocean warming has severely damaged coral reef biodiversity.
    • Disruption of Natural Cycles: Unsustainable development alters food chains, migration patterns, and breeding cycles. Eg: Light pollution in cities affects nocturnal species like sea turtles, which rely on natural darkness for nesting.

    Why is balancing environmental protection and economic development crucial for long-term sustainability?

    • Ensures Resource Availability for Future Generations: Overexploitation today can lead to resource depletion, affecting future livelihoods. Eg: Sustainable forestry in countries like Sweden ensures timber is harvested without degrading forests.
    • Prevents Environmental Degradation: Economic development without ecological concern leads to pollution, soil erosion, and climate change. Eg: Unchecked industrialisation along the Ganga River caused severe water pollution, harming both people and biodiversity.
    • Supports Climate Resilience: Ecosystem protection helps buffer against climate impacts like floods, droughts, and heatwaves. Eg: Mangrove conservation in the Sundarbans protects coastal areas from cyclones and sea-level rise.
    • Boosts Green Economic Opportunities: Investing in renewables and green technology creates jobs while reducing emissions. Eg: India’s solar energy mission has generated employment and reduced dependency on fossil fuels.
    • Promotes Health and Well-being: A clean environment ensures access to clean air, water, and food, essential for human health. Eg: Delhi’s vehicular emission controls aim to reduce air pollution, improving public health outcomes.

    What paradox arises from relying on nature-based solutions while continuing to exploit natural resources?

    • Dual Dependence Creates Contradiction: We expect ecosystems to mitigate climate change while simultaneously degrading them through deforestation and pollution. Eg: Planting trees for carbon offset while clearing rainforests for agriculture defeats the purpose.
    • Undermines Long-Term Effectiveness: Continuous exploitation weakens the very systems relied upon for climate resilience and biodiversity restoration. Eg: Wetlands restoration projects fail when nearby urban expansion continues to encroach on wetland areas.
    • Ecological Imbalance Intensifies: The more we harm natural systems, the less capable they become in acting as buffers against environmental crises. Eg: Overfishing damages marine ecosystems, reducing their ability to regulate carbon and support livelihoods.

    What are the steps taken by the Indian government? 

    Way forward: 

    • Integrate Ecology into Economic Planning: Make environmental sustainability a core part of all development policies to ensure long-term resource security and resilience.
    • Promote Community-Led Conservation: Empower local communities with incentives and rights to manage natural resources, ensuring inclusive and effective environmental protection.

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  • Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

    Big deal: On the U.S.-China trade deal

    Explained | International Relations | Mains Paper 2: Effect Of Policies & Politics Of World On India’S Interests

    Why in the News?

    Recently, the U.S. has agreed to temporarily reduce its tariffs on Chinese goods from 145% to 30% for 90 days, while China will lower its tariffs on American products from 125% to 10%.

    What are the key terms of the U.S.-China trade truce?

    • Tariff Reductions: The U.S. has temporarily lowered tariffs on Chinese goods from 145% to 30%, and China has reduced its duties on American imports from 125% to 10%.
    • 90-day Breather: The reprieve is limited to 90 days, giving both sides a window for further negotiations.
    • Global Market Response: The announcement led to a 2%-3.8% rise in markets worldwide, reflecting investor relief.
    • Exclusion from Previous Pause: Earlier, in April, the U.S. had excluded China from a 90-day reciprocal tariff pause, indicating that this thaw represents a strategic pivot.

    Why has the U.S. trade deficit with China remained unresolved despite the tariff rollback?

    • Temporary and Limited Rollback of Tariffs: The U.S. reduced tariffs from 145% to 30% only for 90 days, which is not a permanent structural solution. Eg: Such short-term measures may ease tensions but do not address long-term trade imbalances rooted in production and consumption patterns.
    • Core Issue of Trade Imbalance Not Addressed: The agreement focuses on reducing tariffs but does not compel China to increase imports of U.S. goods or alter its export-driven model. Eg: The U.S. continues to import large volumes of electronics, machinery, and pharmaceuticals from China while exporting relatively fewer goods.

    How might the U.S.-China agreement affect India’s position in the China+1 manufacturing strategy?

    • Reduced Urgency for Diversification: The easing of tensions may lead global firms to reconsider shifting away from China, reducing momentum behind the China+1 strategy. Eg: Companies that were exploring alternatives like India or Vietnam may delay or reverse their relocation plans.
    • India’s Limited Gains from China+1 Exposed: India has not fully leveraged the China+1 opportunity due to infrastructure and policy bottlenecks, making it less competitive. Eg: Despite global supply chain shifts during the trade war, India attracted far less investment than Vietnam or Indonesia in electronics and apparel sectors.
    • Renewed Focus on China’s Scale and Efficiency: Investors might return to China due to its unmatched manufacturing scale, efficient logistics, and mature supply chains. Eg: Apple’s decision to continue manufacturing a large share of its products in China despite exploring India illustrates the challenge India faces in replacing China.
    Note: China+1 is a business strategy adopted by multinational companies to diversify their manufacturing operations and supply chains beyond China, by adding at least one other country—hence “China plus one”.

    What challenges does India face in its trade negotiations with the U.S.?

    • Retaliatory Tariff Pressures: India has had to respond to U.S. tariff hikes on steel and aluminium with potential reciprocal measures, increasing trade tension. Eg: After the U.S. imposed duties under Section 232, India notified the WTO of its plan to raise tariffs on American products like almonds and apples.
    • Pending Comprehensive Trade Agreement: Despite ongoing talks, both countries have struggled to finalize a broad-based trade deal due to divergent priorities and domestic pressures. Eg: Disagreements over market access for U.S. dairy products and medical devices have repeatedly stalled progress on a bilateral trade pact.
    • Impact of U.S.-China Trade Developments: A thaw in U.S.-China trade ties may reduce Washington’s interest in deepening trade relations with India, limiting India’s leverage. Eg: If U.S. firms regain confidence in China post-agreement, India may lose the strategic advantage it gained during earlier trade disruptions.

    Why must Indian States implement labour and land reforms to reduce dependence on Chinese imports?

    What are the steps taken by the Indian government? 

    • Labour Law Reforms to Boost Ease of Doing Business: The Indian government has amended labour laws to make it easier for industries to hire and fire workers, fostering a more flexible labour market. Eg: The Code on Industrial Relations (2020) consolidates multiple labour laws and provides greater flexibility for businesses to operate efficiently.
    • Land Acquisition and Infrastructure Development: The government has streamlined land acquisition processes and enhanced infrastructure to attract investments in manufacturing. Eg: The National Industrial Corridor Development Corporation (NICDC) is developing dedicated industrial zones with improved connectivity and land acquisition processes to boost manufacturing.

    Way forward: 

    • Enhance Policy Frameworks: India should strengthen its infrastructure, labor, and land reforms to offer a more competitive and attractive environment for global companies, ensuring it can capitalize on the China+1 strategy.
    • Focus on Technology and Skill Development: India must invest in advanced manufacturing technologies and skill development to match China’s scale and efficiency, thus making itself a more viable alternative for global supply chains.

    Mains PYQ:

    [UPSC 2018] How would the recent phenomena of protectionism and currency manipulations in world trade affect macroeconomic stability of India?

    Linkage: The US-China trade deal, as described in the article arose from a “tense global trade environment” involving “tariffs being ratcheted up by both sides”. This context of rising protectionism and trade tensions between major powers directly relates to the “phenomena of protectionism” mentioned in this PYQ and its potential impact on India’s macroeconomic stability.

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  • Higher Education – RUSA, NIRF, HEFA, etc.

    In India, education without employment

    Explained | Indian Society | Mains Paper 2: Health & Education

    Why in the News?

    The National Education Policy 2020 does not effectively address the employability issues faced by India’s graduates in the workforce.

    What are the key flaws in NEP 2020 regarding employability?

    • No Industry Participation in Policy Design: The NEP drafting process excluded industry leaders, leading to poor alignment between education and job market requirements. Eg: Graduates often lack practical skills needed for sectors like AI, renewable energy, or advanced manufacturing.
    • Ineffective Skill Training Mechanisms: Although vocational training and multiple entry/exit options were introduced, they often lead to low-quality outcomes without real career growth. Eg: Students trained under NEP frequently end up in low-paying jobs like delivery services, despite completing higher education.
    • Weak Implementation and Accountability: Despite ambitious reforms, there is little evidence of measurable improvement in graduate employability over the years. Eg: Employability of graduates was only 42.6% in 2025, showing minimal change from 44.3% in 2023.

    Are India’s higher education institutions truly improving?

    • Selective Celebration of Rankings: Government highlights QS WUR improvement (11 institutions in top 500) while ignoring low actual rankings (mostly above 100).
    • Low Research Quality: India’s CNCI rank rose from 17th to only 16th among G20 nations, showing marginal improvement.
    • Misleading Statistics: The 318% “performance growth” touted is percentage-based inflation, not reflecting real innovation or academic excellence.

    How does India’s GII performance expose its innovation gaps?

    • Low Quality of Research Output: Despite improvements in overall GII ranking (from 81 in 2015 to 39 in 2024), India’s Category Normalized Citation Impact (CNCI) — a measure of research quality — remains poor, ranking 16th out of 19 G-20 countries. Eg: While quantity of publications has increased, their global influence and citations remain low, showing a gap in impactful innovation.
    • Weak Innovation Clusters: India’s top innovation hubs like Bengaluru, Delhi, and Chennai rank low globally (56th to 84th), and cluster intensityis poor compared to global leaders. Eg: Bengaluru, often called India’s Silicon Valley, ranks only 56th, far behind real Silicon Valley (2nd), indicating weak industrial-scientific synergy.
    • Limited High-End Technological Innovation: India lags in patent filings and high-tech outputs compared to nations like South Korea, the U.S., and China. Eg: Samsung Electronics is the top patentee in Bengaluru, not an Indian firm — showing a dependence on foreign innovation in domestic clusters.

    Who benefits from international university rankings like QS World University Rankings?

    The QS World University Rankings are published by Quacquarelli Symonds (QS), a global higher education company known for providing specialized services in university rankings, student recruitment, and education consulting.

    • Universities: High rankings enhance global reputation, attract top students and faculty, and secure more funding. Eg, IIT Bombay benefits from its high QS ranking by attracting international collaborations and research opportunities.
    • Students: International rankings help students choose universities with better academic quality, resources, and future career prospects. Eg, students opting for Harvard University often benefit from its global recognition and network.

    What are the limitations of using such rankings as indicators of educational quality?

    • Overemphasis on Research Output: Rankings often prioritize research publications and citations, which may not reflect the quality of teaching or employability. Eg, IIT Bombay ranks highly globally for research, but the focus on research may overshadow the quality of undergraduate education.
    • Neglect of Local Context and Industry Relevance: Global rankings may not consider how well a university serves its local economy or industries. Eg, Jadavpur University in Kolkata is renowned for its engineering programs but is ranked lower globally, despite its significant contributions to local technology and industry development.

    What are the steps taken by the Indian Government? 

    • Promotion of Start-ups and Innovation: The government has launched various initiatives like Startup India and Atal Innovation Mission (AIM) to encourage entrepreneurship and innovation in the education sector. Eg, AIM supports schoolchildren with access to cutting-edge technology and resources to create new ideas.
    • Skill Development Programs: Programs like Pradhan Mantri Kaushal Vikas Yojana (PMKVY) aim to provide skill training to youth, improving their employability. Eg, the scheme offers certification in sectors like electronics and manufacturing, ensuring that graduates are job-ready.

    Way forward: 

    • Industry-Academia Collaboration: Strengthen partnerships between industries and educational institutions to design curricula that align with market needs, enhance practical training, and provide internships. Eg, tech companies collaborating with universities for real-time software development projects.
    • Focus on Research Quality and Innovation: Increase investment in high-impact research and innovation by improving research infrastructure and promoting collaboration with global leaders. Eg, providing incentives for Indian firms to file patents and innovate domestically.

    Mains PYQ:

    [UPSC 2016] Demographic Dividend in India will remain only theoretical unless our manpower becomes more educated, aware, skilled and creative. What measures have been taken by the government to enhance the capacity of our population to be more productive and employable?

    Linkage: Education and skills to the concept of employability and the realization of India’s demographic dividend. It implies that simply having a young, educated population is not enough; they must be “productive and employable” for this potential to translate into economic benefit, highlighting a potential gap.

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  • Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

    Highlights of the Sample Registration System (SRS) 2021 Report

    DOMR | Indian Society | Mains Paper 1: Population & Associated Issues

    Why in the News?

    According to the Sample Registration System (SRS) 2021 report, the Total Fertility Rate (TFR) in India remains unchanged at 2.0 children per woman, the same as in 2020.

    Also, the annual crude birth rates for Tamil Nadu, Delhi and Kerala are declining at 2x the rate of the national average.

    About Sample Registration System (SRS) 2021 Report:

    • The SRS survey is released by the Registrar General of India (RGI).
    • It covered 8,842 sample units and a population of 84 lakh across all states.
    • Despite the delay in the national Census (last held in 2011), the SRS remains India’s primary source for annual fertility and mortality statistics.

    Important Highlights of the SRS, 2021:

    [A] Birth Rate Trends :

    • India’s crude birth rate in 2021 was 3, declining at 1.12% annually between 2016 and 2021.
    • Fastest declines were seen in Tamil Nadu (2.35%), Delhi (2.23%), and Kerala (2.05%).
    • Other states with above-average decline: Maharashtra (1.57%), Gujarat (1.24%), Odisha (1.34%), Himachal Pradesh (1.29%), Haryana (1.21%), J&K (1.47%).
    • Slowest declines: Rajasthan (0.48%), Bihar (0.86%), Chhattisgarh & Jharkhand (0.98%), Assam & MP (1.05%), West Bengal (1.08%), UP (1.09%).
    • Rise in registered births noted in 11 regions, including Bihar, Rajasthan, UP, Uttarakhand, West Bengal, J&K, Ladakh, Lakshadweep, Arunachal Pradesh, Mizoram, and Nagaland.

    [B] Total Fertility Rate (TFR) and Demographic Shifts:

    • India’s TFR in 2021 stayed at 0, unchanged from 2020.
    • Highest TFR: Bihar (3.0); Lowest TFR: Delhi and West Bengal (1.4).
    • States below or at replacement level:
      • TFR 1.5: Tamil Nadu, Andhra Pradesh, J&K, Kerala, Maharashtra, Punjab
      • TFR 1.6: Himachal Pradesh, Telangana, Karnataka
      • TFR 1.8: Odisha, Uttarakhand
      • TFR 2.0: Gujarat, Haryana
      • TFR 2.1: Assam
    • Age Structure Shift (1971–2021):
      • Children (0–14): declined from 41.2% to 24.8%
      • Working-age (15–59): rose from 53.4% to 66.2%
      • Elderly (60+): increased from 6.0% to 9.0%
      • Aged 65+: grew from 5.3% to 5.9%
    • Highest elderly population: Kerala (14.4%), Tamil Nadu (12.9%), Himachal Pradesh (12.3%)
    • Lowest elderly population: Bihar (6.9%), Assam (7.0%), Delhi (7.1%)
    • Mean female marriage age rose from 3 years (1990) to 22.5 years (2021).
    [UPSC 2024] The total fertility rate in an economy is defined as:

    (a) the number of children born per 1000 people in the population in a year.

    (b) the number of children born to a couple in their lifetime in a given population.

    (c) the birth rate minus death rate.

    (d) the average number of live births a woman would have by the end of her child-bearing age. *

     

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  • Differentiated Banks – Payment Banks, Small Finance Banks, etc.

    What are Digital Banking Units (DBU)?

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    Why in the News?

    In October 2022, 75 Digital Banking Units were launched across remote districts to commemorate India’s 75th Independence Day, but their momentum has declined from past 2 years.

    About Digital Banking Units (DBUs):

    • DBUs are specialized, fixed-location banking hubs designed to deliver a wide range of digital financial services using modern infrastructure.
    • They operate in both self-service and assisted modes, offering customers 24/7 access to banking in a paperless, secure, and cost-effective environment.
    • The RBI permits commercial banks with digital banking experience to establish DBUs in Tier I to Tier VI cities, without prior approval unless restricted.
      • RRBs, payment banks, and local area banks are not eligible.
    • In October 2022, as part of India’s 75th independence anniversary, 75 DBUs were launched across 75 remote districts to promote financial inclusion and bring banking services closer to citizens in semi-urban and rural areas.

    Services and Features:

    • DBUs offer digital services such as account opening, internet and mobile banking kits, debit and credit card applications, and UPI QR-based merchant solutions.
    • Customers can apply online for retail loans, MSME loans, and government-sponsored schemes, with the entire process—from application to disbursal—handled digitally.
    • Each DBU operates independently from existing branches and must follow RBI guidelines, including housing in separate premises with automated-only cash services.
    • They are equipped with interactive teller machines, cash recyclers, document upload systems, and video KYC facilities.
    • A senior bank executive is appointed as Chief Operating Officer (COO) to manage each unit.

    Benefits Offered:

    • DBUs offer a convenient, paperless banking experience, reducing the need to visit traditional branches.
    • They support inclusive banking by expanding access to financial services in underserved regions.
    • Customers in remote areas benefit from both automated and assisted service options.
    • For banks, DBUs help optimize costs while improving service delivery and outreach.
    [UPSC 2024] Consider the following statements in respect of the digital rupee:

    1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy. 2. It appears as a liability on the RBI’s balance sheet. 3. It is insured against inflation by its very design. 4. It is freely convertible against commercial bank money and cash.

    Which of the statements given above are correct?

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

     

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  • Renewable Energy – Wind, Tidal, Geothermal, etc.

    Dirang Geothermal Project

    Prelims Only | Geography | Mains Paper 1: Geographical Features & Their Location

    Why in the News?

    The Centre for Earth Sciences and Himalayan Studies (CESHS) has successfully drilled India’s first geothermal production well in Dirang, located in Arunachal Pradesh’s West Kameng district.

    This could potentially make Dirang the first geothermal-powered town in the country.

    What is Geothermal Energy?

    • Geothermal energy is derived from heat stored in the Earth’s interior, primarily from the decay of radioactive elements.
    • It can be utilised for electricity generation, heating, and industrial applications.
    • It is considered a renewable energy source as the Earth continuously generates heat.

    About Dirang Geothermal Project:

    • This project in West Kameng, Arunachal Pradesh, is the first successful geothermal drilling site in Northeast India.
    • It is led by CESHS under the Arunachal Pradesh Department of Science and Technology, with support from the Ministry of Earth Sciences.
    • It is a medium-to-high enthalpy zone (~115°C), with a fault between quartzite and schist, enabling efficient, low-impact drilling.
    • The site was selected after two years of geochemical and structural surveys, and can support applications like agricultural drying, space heating, and controlled storage.
    • International partners include the Norwegian Geotechnical Institute, Geotropy ehf (Iceland), and Guwahati Boring Service for execution.

    India’s Geothermal Landscape:

    • The Geothermal Atlas of India (2022) identifies 381 thermally anomalous sites across the country.
    • India has an estimated geothermal potential of 10,600 MW, enough to power over 10 million homes.
    • Geothermal energy offers base load power, unlike intermittent solar and wind sources.
    • The first operational plant was a 20 kW binary cycle pilot in Manuguru, Telangana, developed by SCCL.
    • A 25 MW project in Khammam remains stalled due to tariff issues with the Andhra Pradesh Electricity Regulatory Commission.
    • In Puga Valley, Ladakh, ONGC resumed work in 2024 on a 1 MW pilot plant, after a 2022 hot water leak raised safety concerns.
    • In Dholera, Gujarat, geothermal energy is used for cooking and air conditioning at a temple, showing direct-use feasibility.
    • India has signed MoUs with Iceland (2007) and Saudi Arabia (2019), and included geothermal energy in the 2023 RETAP agreement with the United States.
    [UPSC 2013] Consider the following: (1). Electromagnetic radiation (2). Geothermal energy (3). Gravitational force (4). Plate movements (5). Rotation of the earth (6). Revolution of the earth

    Which of the above are responsible for bringing dynamic changes on the surface of the earth?

    Options: (a) 1 only (b) 2 and 3 only (c) 1, 2 and 3 (d) None*

     

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  • Capital Markets: Challenges and Developments

    India rolls over $50M Treasury Bill to help Maldives

    Prelims Only | Economics | Mains Paper 3: Mobilization Of Resources

    Why in the News?

    India extended critical financial assistance to the Maldives by rolling over a $50 million Treasury Bill, continuing its support under a government-to-government arrangement since 2019.

    About Treasury Bill:

    • A T-Bill is a short-term debt instrument issued by the GoI through the Reserve Bank of India (RBI).
    • They are part of Government Securities (G-Secs) and are used to raise short-term funds.
    • They are zero-coupon securities, meaning they do not carry periodic interest payments.
    • Instead, they are issued at a discount and redeemed at face value upon maturity.
    • They were first introduced in India in 1917.
    • They are ideal for investors seeking safety and liquidity over short periods.

    Features of the T-Bills:

    • Tenures Available: 91-day, 182-day, and 364-day maturity periods.
    • Issued at a Discount: T-Bills are sold at a lower price than their face value. The return (yield) is the difference between purchase price and face value.
    • Minimum Investment: Starts at ₹25,000, and in multiples of ₹25,000 thereafter.
    • Zero-Coupon Nature: No interest payments during the tenure. Investors earn via the discounted purchase price.
    • Risk-Free Investment: Backed by the Government of India, making it virtually risk-free.
    • High Liquidity: Due to short tenure, T-Bills can be easily converted to cash.
    • Auction Mechanism: Sold through competitive and non-competitive bidding at RBI auctions.
    • Taxable Gains: Returns are treated as short-term capital gains and are taxable.
    • Sensitive to Inflation: Fixed returns can be impacted by rising inflation, reducing real returns.
    [UPSC 2018] Consider the following statements:

    1.The Reserve Bank of India manages and services GoI Securities but not any State Government Securities.

    2.Treasury bills are issued by the GoI and there are no treasury bills issued by the State Governments.

    3.Treasury bills offer are issued at a discount from the par value.

    Which of the statements given above is/are correct?

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

     

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  • Air Pollution

    [13th May 2025] The Hindu Op-ed: How is shipping industry tackling emissions?

    op-ed snap | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    PYQ Relevance:

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

    Linkage: The shipping industry’s contribution to GHG emissions (approximately 1 billion metric tonnes annually, about 2.8% of total global emissions) and the IMO’s efforts to reduce these emissions to align with goals like the Paris Agreement. The question’s focus on international climate agreements (Kyoto Protocol) is relevant to the IMO’s regulatory efforts.

     

    Mentor’s Comment: The adoption of the Net Zero Framework, which is based on Market-Based Measure (MBM) by the International Maritime Organization (IMO) to regulate and reduce greenhouse gas (GHG) emissions from international shipping, marking a historic shift in global climate governance. It highlights the geopolitical negotiations, competing national interests, and the struggle to balance environmental effectiveness with economic fairness in formulating a global carbon levy on shipping emissions.

    Today’s editorial talks about regulation of greenhouse gas (GHG) emissions from international shipping.  This topic is useful for GS Paper II (International Relations and Policy Making) and GS Paper III (Environment).

    _

    Let’s learn!

    Why in the News?

    At the Marine Environment Protection Committee (MEPC-83) session of the IMO, a major step was taken by approving a new system to cut shipping emissions.

    What is the International Maritime Organisation (IMO)? 

    The International Maritime Organization (IMO) is a United Nations specialized agency responsible for regulating international shipping, promoting maritime safety, environmental protection, legal matters, and technical cooperation among member states.

    Why is it a landmark step? 

    • First Legally Binding Global Emission Levy: Shipping is the first industry with a mandatory, global emissions levy under the MARPOL treaty—unlike aviation (ICAO) or manufacturing, which follow voluntary or regional norms.
    • Equity Through CBDR-RC: The mechanism incorporates equity—ZNZ fuel users are rewarded, while underperformers bear the financial burden, aligning with developing countries’ interests.
    • Clear, Time-Bound Targets: IMO sets concrete milestones: 40% cut in carbon intensity by 2030, 70% by 2040, and net-zero by 2050—unlike ICAO’s vague goals.

    What were the challenges while taking this step?

    • Resisted by the Oil-Exporting Nations: Countries like Saudi Arabia, which depend heavily on fossil fuel exports, opposed stringent carbon levies, fearing these would harm their economies. They resisted the transition to green fuels, advocating for minimal changes.
    • Developed vs. Developing Countries: Developed nations like the EU supported aggressive emission reductions, while developing countries like China pushed for a market-driven approach to preserve competitiveness and avoid excessive financial burdens.

    How is the shipping industry tackling emissions as per the IMO?

    • Reduction of GHG emissions: The International Maritime Organization (IMO) has implemented measures like the Energy Efficiency Design Index and the Ship Energy Efficiency Management Plan to reduce carbon emissions from ships.
    • Targets for carbon intensity: The IMO has set a goal to reduce carbon intensity by at least 40% by 2030 (compared to 2008 levels) and 70% by 2040, with the ultimate aim of achieving net-zero emissions by 2050.
    • Green technologies and fuel alternatives: The IMO is pushing for cleaner fuels and innovative technologies for emissions reduction, including efforts in alternative fuels such as green hydrogen.

    What is the Net Zero Framework adopted by the IMO?

    The Net Zero Framework is a Market-Based Measure (MBM) to reduce emissions in the shipping industry. It aims to implement a mandatory emissions levy on global shipping to ensure that the sector meets net-zero targets by 2050.

    How would it work? 

    • Emission-Based Levy with Incentives: Ships emitting high greenhouse gases must pay a carbon levy, while those using Zero or Near-Zero (ZNZ) fuels receive financial rewards or credits. Eg: A ship using green hydrogen below the IMO’s emission threshold earns surplus credits, reducing its future levy.
    • Tiered Compliance via GHG Fuel Standard (GFS): Ships are classified based on fuel efficiency and emission levels. Underperformers must purchase remedial units, while high performers gain tradable surplus units. Eg: A vessel exceeding emission targets must buy units from a cleaner ship, creating a carbon market within global shipping.

    What is the limit on carbon emissions?

    • As per IMO reward thresholds:
      • Until 2034: The carbon limit is 19.0 g CO₂e/MJ
      • From 2035 onwards: It tightens to 14.0 g CO₂e/MJ

    How will the Market-Based Measure (MBM) framework impact India’s maritime sector and trade costs by 2030 and 2050?

    • Trade Costs: The MBM framework is likely to increase shipping costs due to carbon pricing and fuel surcharges, making Indian exports less competitive. Eg: Textile and agricultural exports from India to Europe may become costlier by 2030 due to EU’s Emission Trading System (ETS) expansion to maritime transport.
    • Equity Concerns: Uniform carbon levies do not consider developmental disparities, placing a higher burden on countries like India with limited historical emissions. Eg: India has argued at the IMO that MBMs should reflect Common But Differentiated Responsibilities (CBDR), as it is still building infrastructure and trade capacity.
    • Green Shipping Transition: To comply with decarbonization norms by 2050, India must shift to alternative fuels (e.g., green hydrogen, ammonia) and upgrade port infrastructure, requiring massive investments. Eg: Jawaharlal Nehru Port Trust may need to install green bunkering facilities and electrified cargo handling systems.
    • Technological and Financial Gaps: Lack of access to clean technology and climate finance may hinder India’s ability to transition smoothly, increasing dependence on foreign solutions. Eg: Advanced nations may dominate green shipbuilding, while Indian shipyards lag due to lack of R&D support and capital.
    • Opportunity for Green Growth: If supported with international finance and technology transfer, MBMs can stimulate domestic innovation and green job creation in maritime sectors. Eg: India’s “Green Ports” initiative could align with MBM goals and boost employment in clean energy, retrofitting, and logistics.

    Way forward: 

    • Differentiated Levy Design: IMO should adopt a flexible carbon pricing model that reflects Common But Differentiated Responsibilities (CBDR), allowing developing countries like India room to grow while contributing to climate goals. Eg: Tiered levy based on national capacities and emission intensity.
    • Technology Transfer & Climate Finance: Establish dedicated funding mechanisms for green shipping innovation, infrastructure upgrades, and capacity building in developing nations. Eg: An IMO-led global Green Maritime Fund supported by developed countries.

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  • Waste Management – SWM Rules, EWM Rules, etc

    India’s rising e-waste, the need to recast its management

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

    Why in the News?

    India has overhauled its e-waste governance through the E-Waste (Management) Rules, 2022, which came into force on April 1, 2023, replacing the 2016 version. These rules mark a major policy shift to tackle India’s rapidly growing e-waste crisis.

    How Does the New EPR Framework Work?

    • Mandatory Registration: All manufacturers, producers, refurbishers, and recyclers must register with the Central Pollution Control Board (CPCB) through an online portal.
    • EPR Targets: These entities must meet specific collection and recycling targets, as set by the CPCB.
    • Liability for Non-compliance: Failure to meet targets invokes environmental compensation and penalties.

    What is the role of EPR floor pricing in e-waste management?

    • Ensures Fair Returns to Formal Recyclers: EPR floor pricing guarantees minimum compensation for authorized recyclers, making formal recycling economically viable and discouraging unsafe informal practices. Eg: A certified recycler adopting advanced e-waste extraction technologies is assured stable earnings, promoting compliance and expansion.
    • Reduces Informal Sector Dominance: By offsetting the cost advantage of informal recyclers, floor pricing shifts e-waste processing to the formal sector, where health and environmental standards are enforced. Eg: In India, 95% of e-waste is handled informally; floor pricing helps shift this to regulated channels.
    • Boosts Circular Economy and Material Recovery: Stable pricing encourages recyclers to focus on resource recovery—such as copper, gold, and rare metals—rather than mere disposal. Eg: Proper recycling of circuit boards in formal facilities helps recover precious metals worth crores, reducing raw material imports.

    What are the economic and social consequences of poor e-waste management?

    • Economic loss from pollution: Over $10 billion lost annually due to pollution from toxic e-waste processing.
    • Social cost: Informal processing results in $20 billion in social loss, affecting women and children, whose average lifespan is under 27 years.
    • Lost revenue and metals: India forfeits ₹80,000 crore annually in metal value and $20 billion in tax revenue due to untracked, cash-based operations.
    • Health impacts: Open incineration and use of cyanide and sulphuric acid cause air, water, and soil pollution, compounding public health crises.

    How does stable pricing support formal recycling?

    • Ensures Financial Viability for Formal Recyclers: A minimum (floor) price for EPR certificates guarantees fair compensation, encouraging recyclers to invest in safe, modern technologies. Eg: Certified recyclers can recover precious metals like gold and copper efficiently with advanced equipment, making operations economically viable.
    • Discourages Hazardous Informal Practices: Stable pricing removes the informal sector’s cost advantage, shifting recycling away from unsafe, illegal methods. Eg: With assured returns, recyclers prefer compliance over risky open burning and acid-leaching methods that dominate 95% of the sector.
    • Drives Compliance and Investment: Predictable prices create trust in the system, helping producers meet EPR obligations and promoting infrastructure development.

    What are the challenges? 

    • Dominance of the Informal Sector: A large share of e-waste in India is processed by the informal sector using hazardous and unsafe methods like acid baths and open burning. Eg: In Seelampur (Delhi), a major informal e-waste hub, workers dismantle electronics without protection, exposing themselves to toxic substances like lead and mercury.
    • Low Consumer Awareness and Participation: Many consumers are unaware of proper e-waste disposal methods, leading to hoarding, landfilling, or selling to unregulated recyclers. Eg: In cities like Bengaluru and Mumbai, residents often discard electronics with household waste or sell them to local kabadiwalas despite having formal collection centers.

    Way forward: 

    • Strengthen Awareness and Consumer Participation: Promote widespread consumer education on e-waste disposal through campaigns and incentives for responsible recycling, ensuring more e-waste is directed to formal, safe channels.
    • Enhance Infrastructure and Enforcement of EPR: Develop advanced e-waste recycling infrastructure and strictly enforce EPR compliance to ensure producers meet recycling targets and transition e-waste processing to the formal sector.

    Mains PYQ:

    [UPSC 2023] What is the status of digitalization in the Indian economy? Examine the problems faced in this regard and suggest improvements.

    Linkage: India’s growing e-waste problem is linked to its fast digital growth and greater use of electronic gadgets. This issue mainly relates to the economy but also highlights how digitalisation is a key reason behind the rise in e-waste.

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  • Minimum Support Prices for Agricultural Produce

    Explained: Why farmers prefer growing rice and wheat

    Explained | Agriculture | Mains Paper 3: Major Crops & Cropping Patterns

    Why in the News?

    The combination of assured government support and scientific advancements in breeding technologies has made rice and wheat the most preferred crops among Indian farmers, while other crops lag due to lack of similar incentives and innovations.

    Why do farmers prefer rice and wheat?

    • Assured Procurement at MSP: The government provides near-guaranteed purchases of rice and wheat at Minimum Support Prices (MSP), reducing market risk. Eg: In Punjab, rice area increased from 29.8 lakh hectares in 2015-16 to 32.4 lakh hectares in 2024-25 due to consistent MSP support.
    • Lower Yield Risk Due to Irrigation and Research Support: Rice and wheat are mostly grown under irrigated conditions and benefit from superior public research, leading to more stable yields. Eg: Wheat variety HD-3385, released in 2023, offers 6 tonnes/hectare yield with resistance to rust diseases and adaptability to different sowing times.
    • Continuous Breeding Innovations and Higher Returns: These crops have seen regular improvements through breeding, enhancing productivity, stress tolerance, and input efficiency. Eg: Genetically-edited rice variety Kamala yields up to 9 tonnes/hectare and matures faster, saving water and fertilizer costs.

    What drives yield growth in these crops?

    • Genetic Improvements and Breeding Innovations: Continuous breeding has led to development of high-yielding, stress-resistant varieties. Eg: Wheat variety HD-3385, released in 2023 by ICAR, yields an average of 6 tonnes/hectare with a potential of 7.3 tonnes, and is resistant to all three major rusts (yellow, brown, and black).
    • Improved Agronomic Practices and Technology Adoption: Advanced farming practices like early sowing, use of fertiliser-responsive varieties, and direct seeding have boosted productivity. Eg: Direct-Seeded Rice (DSR) technology eliminates the need for nursery and transplanting, saving water and labour, and supporting yield levels up to 10 tonnes/hectare in some hybrid varieties.
    • Public Research and Extension Support: Rice and wheat receive consistent support from government research institutions, unlike many other crops. Eg: The CRISPR-Cas edited rice variety Kamala, developed by ICAR in 2024, produces 450-500 grains per panicle (vs. 200-250 in parent variety), yields up to 9 tonnes/hectare, matures 15-20 days earlier, and requires less fertiliser and water.

    How has government policy influenced the cropping patterns in states?

    • Minimum Support Price (MSP) and Procurement Assurances: Farmers prefer crops with assured government procurement at MSP, reducing market risk. Eg: In Punjab, rice area increased from 29.8 lakh hectares in 2015-16 to 32.4 lh in 2024-25 due to near-guaranteed MSP procurement, while cotton area declined from 3.4 lh to 1 lh.
    • Skewed Research and Input Support: Rice and wheat have received consistent research and extension support, unlike pulses or oilseeds. Eg: ICAR has developed multiple improved wheat and rice varieties (e.g., HD-3385, Kamala), while no major breakthrough has happened in cotton since Bt cotton (2002-06).
    • Irrigation Infrastructure Bias: Government investment in irrigation has favoured crops like rice and wheat, making them less yield-risk prone. Eg: In Madhya Pradesh, wheat area rose from 59.1 lh to 78.1 lh and rice from 20.2 lh to 38.7 lh, as irrigation expansion supported these water-reliant crops.

    Which innovations improved rice varieties?

    • Semi-Dwarf and High-Yielding Varieties: Introduction of semi-dwarf varieties reduced lodging and increased fertiliser response and yields. Eg: IR-8, released in 1966, was the first semi-dwarf rice variety, yielding 4.5–5 tonnes/hectare in just 130 days, compared to 1–3 tonnes in traditional varieties over 160–180 days.
    • Gene Editing using CRISPR-Cas Technology: Advanced gene-editing allows precision improvements in yield and stress tolerance. Eg: Kamala, a GE mutant of Samba Mahsuri developed by ICAR in 2024, yields up to 9 tonnes/hectare, matures earlier, and has 450–500 grains per panicle (vs. 200–250 in the original).
    • Abiotic Stress Tolerance Breeding: Development of varieties tolerant to drought, salinity, and heat stress for resilience in changing climates. Eg: Pusa DST Rice 1, a GE version of Cottondora Sannalu, with edited DST gene, shows improved tolerance to drought and salt stress, enabling cultivation in marginal soils.

    Way forward: 

    • Diversify MSP and R&D Focus: Extend assured procurement and research support to pulses, oilseeds, and millets to reduce over-reliance on rice and wheat.
    • Promote Sustainable Practices: Encourage water-saving technologies like direct-seeded rice, crop rotation, and climate-resilient varieties to ensure long-term agricultural sustainability.

    Mains PYQ:

    [UPSC 2024] What are the major challenges faced by Indian irrigation system in recent times? State the measures taken by the government for efficient irrigation management.

    Linkage: Farmers prefer rice and wheat partly because of access to irrigation which reduces yield risk. Challenges and management of irrigation systems directly impact this aspect of their decision-making.

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