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  • Textile Sector – Cotton, Jute, Wool, Silk, Handloom, etc.

    Why is the textile industry struggling to perform better?

    Explained | Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth

    Why in the News?

    Union Minister announced the Indian textile sector’s $350 billion business target by 2030, aiming to generate 3.5 crore jobs, despite recent challenges affecting the projected 10% CAGR.

    Present Status:

    • The Indian textile and apparel industry is currently valued at $153 billion (2021), contributing significantly to India’s GDP (2.3%) and manufacturing GVA (10.6%).
    • The industry employs around 105 million people and is highly dependent on global markets, with 80% of its capacity in MSMEs.
    • India was the third largest textile exporter in FY22, but faced a slowdown in FY23 and FY24, with significant drops in exports and domestic demand.

    What caused the slump in the Indian textile sector in the last two financial years?

    • Geopolitical Tensions: Global geopolitical issues reduced demand in key export markets.
    • High Raw Material Prices: Cotton and Man-Made Fibre (MMF) prices surged, hurting competitiveness.
    • Import Duties: A 10% import duty on cotton made Indian cotton more expensive than global prices.
    • Supply Chain Disruptions: Quality control measures affected the availability and price stability of MMF, further straining production.

    What are the other challenges?

    • Evolving Business Models: The rise of e-commerce and direct-to-consumer retailing is reshaping traditional business systems in the textile industry.
    • Sustainability Standards: Global brands are increasingly focusing on ESG (Environmental, Social, and Governance) criteria, forcing Indian manufacturers to adopt sustainable practices.
    • Changing Consumer Preferences: Growing demand for comfort wear, athleisure, and multi-brand outlets is shifting consumer behavior, impacting smaller or less-known brands.
    • Labour Costs and Productivity: Labour constitutes 10% of production costs, and the industry faces pressure to improve productivity through technology adoption and workforce skilling.

    Way forward: 

    • Enhance Global Competitiveness: The government should consider reducing import duties on key raw materials like cotton and stabilize supply chains by aligning domestic prices with international markets, ensuring competitiveness in global exports.
    • Invest in Technology and Sustainability: The industry should focus on adopting advanced technologies to improve productivity and meet global ESG sustainability standards, while simultaneously upskilling the workforce to handle these technological advancements effectively.

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  • Nobel and other Prizes

    Machine Learning pioneers win Physics Nobel

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Why in the News?

    John Hopfield and Geoffrey Hinton have been awarded the Nobel Prize in Physics, 2024 for their pioneering work that laid the foundation for machine learning and artificial neural network.

    What is Artificial Neural Network?

    • Artificial neural networks are systems inspired by the structure of the brain.
    • In these networks, nodes represent the brain’s neurons, and they influence each other through connections, similar to synapses in the brain.
    • These connections can be made stronger or weaker through training.
    • For instance, connections between nodes with high values can become stronger as the network learns.
    • Since the 1980s, Hopfield and Hinton have been conducting important research on artificial neural networks.

    Significance of their contribution

    • Hinton’s work on the Boltzmann machine and other neural networks helped drive the explosive growth of machine learning.
    • His methods continue to play a significant role in modern AI, enabling technologies like image classification and pattern recognition.

    PYQ:

    [2020] With the present state of development, Artificial Intelligence can effectively do which of the following?

    1 Bring down electricity consumption in industrial units

    2. Create meaningful short stories and songs

    3. Disease diagnosis

    4. Text-to-Speech Conversion

    5. Wireless transmission of electrical energy

    Select the correct answer using the code given below:

    (a) 1, 2, 3 and 5 only

    (b) 1, 3 and 4 only

    (c) 2, 4 and 5 only

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

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  • Innovations in Biotechnology and Medical Sciences

    [pib] Combination Therapeutic Clotting Implant

    Prelims Only | Science Tech | Mains Paper 3: Achievements Of Indians In S&T

    Why in the News?

    Scientists at the Institute of Nano Science and Technology (INST), Mohali, in collaboration with other researchers have developed the Combination Therapeutic Clotting Implant.

    What is the Combination Therapeutic Clotting Implant?

    • It is a hybrid implant made of metal-based nano-medicine combined with patient-derived blood clotting components.
    • It is designed to reduce localized tumor recurrence after surgery.
    • It uses nanotechnology and autologous fibrin (derived from the patient’s own blood) to enhance post-surgical cancer treatment by providing localized therapy and promoting healing in the tumor bed.

    How does It Work?

    • The implant is created using Nano-Micro-Sera (NMS), which consists of drug and metal-based nanomedicine stabilized by the patient’s own serum protein corona.
    • The hybrid implant is reinforced into autologous fibrin, which quickly bonds with damaged tissue in the tumor bed after surgery.
    • Once the surgical site is closed, the implant delivers localized chemo-phototherapy, triggering immunogenic cell death (ICD).
    • This process activates dendritic cells and T-cells, which boosts the body’s immune response and prevents the recurrence of tumors.

    Significance of the Implant

    • The implant offers an affordable and effective solution for localized post-surgical cancer management, especially for marginalized patients.
    • By using the patient’s own serum proteins and fibrin, the implant ensures personalized treatment, reducing the risk of systemic toxicity.
    • The implant’s design is resource-efficient, making it accessible for bedside fabrication with simple equipment, ensuring wider availability.
    • It has demonstrated superior outcomes in suppressing recurrent breast tumors, and its use could prevent tumor recurrence and reducing the chances of metastasis.

    PYQ:

    [2015] With reference to the use of nanotechnology in health sector, which of the following statements is/are correct?

    1. Targeted drug delivery is made possible by nanotechnology.

    2. Nanotechnology can largely contribute to gene therapy.

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

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  • Roads, Highways, Cargo, Air-Cargo and Logistics infrastructure – Bharatmala, LEEP, SetuBharatam, etc.

    [pib] ‘Humsafar Policy’ for Wayside Amenities along the National Highways

    Prelims Only | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Why in the News?

    The Ministry of Road Transport and Highways has launched the ‘Humsafar Policy’ in New Delhi to improve travel convenience on National Highways and boost the development of Wayside Amenities.

    About the ‘Humsafar Policy’

    • The Humsafar Policy is an initiative launched by the Ministry of Road Transport and Highways to enhance the convenience and experience of travelers on National Highways (NHs).
    • It focuses on developing Wayside Amenities along highways to provide a range of facilities for highway users, ensuring smooth, safe, and comfortable journeys.
    • The policy also emphasizes environmental sustainability by incorporating eco-friendly practices like water conservation, solar energy, and waste recycling.

    Features of the Humsafar Policy

    • Wayside Amenities: Includes food courts, fuel stations, EV charging stations, parking, toilets, ATMs, and pharmacies.
    • Standardized Facilities: Ensures well-maintained and hygienic services for commuters.
    • Visibility for Service Providers: Featured on the ‘Rajmarg Yatra’ app, with signage space and renewal fee waivers for high-rated providers.
    • Monitoring & Inspection: Regular third-party checks to maintain service quality, with alerts for low-rated facilities.
    • Green Focus: Encourages solar energy, water conservation, and waste recycling.

    Significance

    • Better User Experience: Enhances travel with high-quality facilities.
    • Economic Impact: Creates jobs and supports local communities.
    • Standardization: Ensures consistent quality and accountability.
    • Technological Integration: The ‘Rajmarg Yatra’ app gives real-time facility info and allows feedback from users.

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  • ISRO Missions and Discoveries

    Hanle Dark Sky Reserve Star Party observed in Ladakh

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Why in the News?

    Expert astro-photographers and astronomers have gathered at the Hanle Dark Sky Reserve from for the second Star Party.

    Star Party and Its Details

    • The Star Party at the Hanle Dark Sky Reserve is a gathering of amateur astronomers and astro-photographers who travel to Hanle to observe and capture celestial phenomena.
    • It was hosted by the Indian Institute of Astrophysics (IIA) from and attended by over 45 astronomy enthusiasts from across India.
    • Participants brought their own telescopes and cameras to capture unique celestial events, including faint galaxies, the Zodiacal Light, and the rare sight of Venus casting a shadow.

    About Hanle Dark Sky Reserve (HDSR)

    • The HDSR is a designated area in Changthang region of eastern Ladakh created to control man-made light pollution and protect the naturally dark night skies.
    • It spans approximately 1,073 square kilometers and is home to the Indian Astronomical Observatory, operated by the Indian Institute of Astrophysics (IIA).
    • Established to promote astronomy and astrophotography, it offers some of the darkest skies in India, ideal for astronomical research.
    • Hanley is also the home to second-highest optical telescope in the world, established in 2001 by IIA.

    Special Features of HDSR and the Surrounding Region

    • High Altitude: Hanle is situated at a high altitude, providing clearer skies with minimal atmospheric interference.
    • Minimal Light Pollution: The region has low light pollution, which makes it perfect for observing faint celestial objects.
    • Dry Climate: The dry weather in the region contributes to excellent visibility, reducing the impact of humidity on astronomical observations.

    Significance of HDSR

    • Astrophotography and Research: The dark skies allow for detailed observation of celestial phenomena and astrophotography, attracting enthusiasts and researchers.
    • Astro-Tourism: The reserve fosters astro-tourism, boosting the local economy by creating jobs for guides and supporting infrastructure.
    • Preservation of Night Skies: It plays a crucial role in preserving the natural darkness of the sky, curbing light pollution in the region.
    • International Attention: The reserve has attracted amateur and professional astronomers from across India and beyond, making it a hub for astronomical events.
    PYQ:

    [2018] Consider the following phenomena:

    1. Light is affected by gravity.
    2. The Universe is constantly expanding.
    3. Matter warps its surrounding space-time.

    Which of the above is/are the prediction/predictions of Albert Einstein’s General Theory of Relativity, often discussed in media?

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

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  • Foreign Policy Watch: Indo-Pacific and QUAD

    A re-balancing of India’s great power relations

    Explained | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

    Why in the News?

    India’s participation in the sixth Quad Leaders’ Summit in Wilmington, Delaware, U.S., on September 21, 2024, has heightened expectations for strengthening security cooperation among the “four key maritime democracies in the Indo-Pacific.”

    How can India navigate its relationships with major powers?

    • Strategic Autonomy: India maintains a policy of non-alignment, balancing relations with both the U.S. and Russia. It is careful not to be drawn into formal alliances but seeks to leverage its partnerships for national interests.
    • Quad vs. Russia: India’s engagement with the U.S.-led Quad strengthens its Indo-Pacific strategy, while its ties with Russia (a Quad opponent) focus on maintaining historical military and strategic benefits.
    • Russia-China Dynamics: As Russia moves closer to China, India seeks to rebalance, ensuring its interests are not sidelined, particularly in the context of China’s growing influence in Asia and unresolved border disputes.
    • U.S. Partnership: While deepening ties with the U.S., India is cautious about fully aligning with Washington’s agenda (for exports), especially regarding tensions with Russia.

    What role does India play in Global Conflict Resolution?

    • As a Peace facilitator: India is increasingly positioning itself as a peace facilitator, evidenced by the NSA (Ajit Dowal) of India’s outreach to Russia and France regarding the Ukraine conflict and peace plan.
    • As a ‘Vishwa Bandhu’: India’s engagement with both Ukraine and Russia shows its willingness to serve as an interlocutor, navigating complex diplomatic terrains while pushing for dialogue in global conflicts.
      • India’s attempts to mediate in conflicts like Ukraine emphasize its independent foreign policy, aiming to project itself as a “Vishwa Bandhu” (friend to the world).

    What implications do Domestic Issues have on India’s Foreign Policy?

    • Economic Dependencies: India’s reliance on Russian military equipment and discounted oil affects its stance on the Ukraine war, pushing for a more nuanced approach in balancing U.S. and Russian relations.
    • Border Tensions with China: Domestic security concerns, such as the standoff at the LAC, influence India’s foreign policy decisions, especially in its cautious relationship with China despite economic interdependence.
    • Public Opinion and Strategic Decisions: India’s foreign policy must account for domestic perceptions of global powers, balancing national security with economic growth and political stability in a complex international environment.

    Way forward: 

    • Strengthen Strategic Autonomy: India should continue balancing its relationships with major powers by deepening economic and security ties with both the U.S. and Russia, while maintaining flexibility to protect its national interests, particularly in the Indo-Pacific and vis-à-vis China.
    • Expand Peace Diplomacy: India can further leverage its role as a mediator in global conflicts, enhancing its international standing by promoting dialogue and peace initiatives.

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  • Urban Transformation – Smart Cities, AMRUT, etc.

    How high-performance buildings are the next step towards a sustainable future?

    Explained | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Why in the News?

    Due to rapid urbanization, India is facing the challenge of exceeding global energy efficiency and carbon benchmarks. High-performance buildings (HPBs) offer resilient, adaptive, and self-sufficient designs, promoting healthier indoor environments and better air quality.

    What are High-Performance Buildings (HPBs)?

    • These are structures designed to achieve peak levels of energy efficiency, sustainability, and occupant comfort.
    • They go beyond standard building practices by integrating advanced technologies and smart design strategies to minimize environmental impact, optimize resource use, and improve overall performance.
      • For example, Unnati (Greater Noida) and Indira Paryavaran Bhawan (New Delhi) showcase smart designs like sun-optimized facades and advanced HVAC systems, reducing energy use.

    Key features of HPBs include:

    • Energy Efficiency: HPBs use cutting-edge technologies like energy-efficient HVAC systems, smart lighting controls, and advanced insulation to reduce energy consumption.
    • Water Conservation: Techniques like greywater recycling and rainwater harvesting help HPBs minimize water usage.
    • Sustainable Materials: HPBs use eco-friendly, durable materials to reduce their carbon footprint and increase building longevity.
    • Site-Specific Design: HPBs leverage natural lighting, ventilation, and terrain-specific water management to enhance thermal efficiency and reduce energy demand.
    • Building Management Systems (BMS): HPBs employ BMS to monitor real-time performance metrics such as energy usage, water consumption, and indoor air quality, ensuring continuous optimization of resources.

    How can HPBs help Indian cities?

    • Resource Efficiency: HPBs help reduce energy consumption and promote water conservation, addressing India’s resource scarcity and fluctuating energy markets.
    • Urban Resilience: By being energy-efficient and self-sufficient, HPBs can help cities adapt to rising temperatures and urbanization pressures.
    • Healthier Environments: HPBs enhance indoor air quality, thermal comfort, and occupant well-being through intelligent systems like air filtration, natural lighting, and smart temperature control.
    • The strain on Infrastructure: HPBs can relieve pressure on public infrastructure by minimizing resource usage, making them crucial for fast-growing cities.
    • Sustainable Growth: HPBs are key to driving India’s transition to a low-carbon economy, supporting sustainable urbanization, and enhancing property value through long-term cost savings.

    Way Forward: 

    • Scaling Adoption of HPBs: Promote widespread implementation of HPBs through government incentives, regulations, and public-private partnerships, aligning with SDG Goal 11 (Sustainable Cities and Communities) to foster inclusive, safe, and resilient urban spaces.
    • Innovation and Capacity Building: Encourage innovation in building technologies and workforce training to develop HPBs, contributing to SDG Goal 7 (Affordable and Clean Energy) by ensuring energy efficiency and reducing carbon emissions in cities.

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  • Capital Markets: Challenges and Developments

    On the need for a different framework for passive Mutual Funds

    Explained | Economics | Mains Paper 3: Indian Economy

    Why in the News?

    On September 30, the Securities and Exchange Board of India (SEBI) launched the liberalized Mutual Funds Lite (MF Lite) framework specifically for passively managed schemes.

    What is a Passive Mutual Fund? 

    • A Passive Mutual Fund is a type of investment fund that follows a market index, like Nifty50, trying to match its performance.
    • They can be easily tracked, whereas, Active Mutual Funds need expert fund managers to actively monitor them and make investments in securities of their choice accordingly.
    • Since there’s no need for constant research, analysis, or active trading the costs are lower.

    Key highlights of the liberalized Mutual Funds Lite (MF Lite) framework:

    • Separate Framework for Passive Funds: It is tailored for passively managed schemes, which are less risky and require minimal active management.
    • Relaxed Entry Requirements: Lowered net worth requirement (₹35 crore), simplified criteria for sponsor eligibility (profitability, track record).
    • Encouraging New Players: It provides easier entry for new AMCs (Asset management companies) and market players in the passive fund segment.
    • Governance Flexibility: It has reduced oversight for trustees; operational responsibilities shifted to AMC boards, focusing on fees, expenses, and tracking error.
    • Cost Efficiency Focus: It emphasizes on lowering Total Expense Ratio (TER) and minimizing tracking error for better returns.
    • Simplified Disclosures: The Scheme Information Documents (SID) are simplified to focus on key metrics like benchmark index, TER, and tracking error.
    • Risk Management: Audit committees of AMCs can handle risk management duties due to the lower risk profile of passive funds.

    Why a Separate Framework for MF Lite is Needed?

    • Lower Risk Profile: Passively managed funds are generally less risky because they track established benchmarks like BSE Sensex or Nifty50, reducing the need for active decision-making.
    • Minimal Asset Manager Discretion: Unlike actively managed funds, asset managers of passive funds have limited discretion in asset allocation and investment objectives. They simply mirror the performance of the benchmark index.
    • Inapplicability of Existing Regulations: The current framework is designed primarily for actively managed funds, which involve more risks and require more oversight. It is less suitable for passive funds, which operate with predefined, transparent rules.
    • Cost-Effective Market Entry: To encourage new players and make the passive fund industry more competitive, SEBI introduced relaxed regulations regarding eligibility, net worth, and profitability.

    What about risks and disclosures? 

    • Success depends on Total Expense Ratio (TER) and tracking error. Lower costs and minimal deviation from the benchmark are crucial for performance.
    • Scheme Information Documents (SID) focus on key metrics like the benchmark name, TER, and tracking error, leaving out complex strategies.
    • Risk management responsibilities are streamlined, allowing the audit committee of the AMC to handle oversight, reflecting the lower risks of passive funds.

    Way forward: 

    • Enhance Investor Education: Develop targeted educational initiatives to inform retail investors about the benefits, risks, and operational aspects of passive mutual funds, fostering informed investment decisions.
    • Ongoing Regulatory Evaluation: Establish a framework for periodic assessment and adaptation of the MF Lite regulations to ensure they remain effective and relevant, promoting competition while safeguarding investor interests.

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  • Rural Distress, Farmer Suicides, Drought Measures

    Farmers to receive aid under Rythu Bharosa

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

    Why in the News?

    After the completion of the loan waiver, the Telangana government will provide Rythu Bharosa assistance to support farmers further.

    About the Rythu Bharosa Scheme:

    Details
    Scheme Name Rythu Bharosa Scheme (Farmer’s Investment Support Scheme – FISS)
    Launch Year 2018-19 Kharif season (Telangana Govt’s Navratna Scheme)
    Objective To support the initial investment needs of farmers by providing financial aid for agriculture and horticulture crops.
    Benefits ₹5,000 per acre per season as a grant for input purchases, with no cap on the number of acres owned by farmers.
    Eligibility
    • Farmers must be residents of Telangana.
    • Must own agricultural land.
    • Small and marginal farmers are eligible.
    • Farmers cultivating land with Record of Forest Rights (ROFR) document (mainly from Scheduled Tribe communities).
    Ineligible Farmers
    • Commercial farmers.
    • Farmers working on a rental contract or tenant farmers.

    Significance of the move

    • Financial Relief for Farmers: By waiving loans of up to ₹2 lakh per farmer, the scheme provides significant financial relief, helping farmers manage their debt and invest in future agricultural activities.
    • Boost to Agricultural Sector: The waiver will enable farmers to focus on improving productivity and crop yields without the burden of debt, potentially boosting the state’s agricultural output.
    • Reduction in Farmer Distress: This move will alleviate distress among farmers, especially those affected by unpredictable weather and fluctuating crop prices, reducing the risk of farm-related suicides and financial instability.

    PYQ:

    [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

    Select the correct answer using the code given below:

    (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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  • Policy Wise: India’s Power Sector

    CERC steps in to tackle sudden Surges in Power Demand

    Prelims Only | Economics | Mains Paper 3: Infrastructure: Energy, Ports, Roads, Airports, Railways Etc.

    Why in the News?

    India’s power regulator, the Central Electricity Regulatory Commission (CERC), has appointed a Single Member Bench to assess the challenges of a sudden surge in power demand.

    Projected Power Demand for October 2024

    • India’s projected peak power demand for October 2024 is 230 Gigawatts (GW).
    • After factoring in Inter-State Transmission System (ISTS) losses, the demand is expected to rise to 232.2 GW.
    • To meet this demand, an additional 12.60 GW of generation resources is required.

    Concerns over Power System Operation:

    • The steep rise in electricity demand, without enough generation sources, could pose a risk to power system operations.
    • The Regional Load Despatch Centres (RLDCs) and State Load Despatch Centres (SLDCs) are responsible for conducting operational planning to manage this surge, especially due to seasonal variations.

     

    About Central Electricity Regulatory Commission (CERC):

    Details
    Establishment It was constituted on July 24, 1998, under the Electricity Regulatory Commissions Act, 1998, and later brought under the Electricity Act, 2003.
    Type Statutory body with quasi-judicial status under Section 76 of the Electricity Act, 2003.
    Ministry Functions under the Ministry of Power, Government of India.
    Primary Functions – Regulates tariffs of power generation companies (owned/controlled by the Government of India).
    – Regulates interstate transmission tariffs.
    – Issues licenses for interstate transmission and trading.
    Key Role in Tariff Evolution – Introduced a Two-Part Tariff in 1992.
    – Introduced Availability Based Tariff (ABT) in 2000 to improve grid stability.
    Advisory Role – Contributes to National Electricity Policy and Tariff Policy.
    – Promotes competition, efficiency, and investment in the electricity sector.
    Licensing – Issues licenses for electricity transmission and interstate trading.
    Grid Operation Standards Enforces standards under the Indian Electricity Grid Code (IEGC) to improve grid stability and power quality.
    Dispute Resolution Adjudicates disputes involving power generation companies and transmission licensees.
    Collaboration Signed a MoU with the U.S. Federal Energy Regulatory Commission (FERC) in 2009 for enhancing power market regulation and grid reliability.
    First Chairman Mr. S.L. Rao (1998–2001).

     

    PYQ:

    [2016] Which one of the following is the purpose of ‘UDAY’, a scheme of the Government?

    (a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy

    (b) Providing electricity to every household in the country by 2018

    (c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time

    (d) Providing for financial turnaround and revival of power distribution companies

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