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  • ISRO Missions and Discoveries

    India among countries mulling telescopes on, around the moon

    Explained | Science Tech | Mains Paper 3: Achievements Of Indians In S&T,Awareness in various sc and tech fields

    Why in the news? 

    Astronomers are looking forward to opening a new window on the universe by posting high-resolution telescopes on the moon and in orbit around it.

    Why Astronomers are looking forward to opening telescopes on the moon?

    • Radio telescopes launched into orbit around Earth exacerbated the problem of receiving radio noise from the entire planet, along with signals from outer space.
    • The moon’s far side offers pristine, airless conditions ideal for optical telescopes, providing crystal-clear seeing conditions during the two-week lunar night.

    Global Initiatives to Install Telescope on the Moon:

    • NASA’s LuSEE Night Project: LuSEE Night, a joint NASA-Berkeley Lab project scheduled for launch in December 2025, aims to study the Dark Ages period by landing on the far side of the moon, shielded from radio frequency noise from Earth.
    • ESA’s Projects: ESA is preparing to launch a radio telescope to the moon’s far side aboard its lunar lander, ‘Argonaut’, by 2030, along with other projects focused on gravitational wave detection and infrared observations.
    • China’s Initiatives: China is also actively involved in lunar exploration, with plans to launch a moon-orbiting radio telescope in 2026 and deploy the Queqiao-2 satellite, which includes a radio telescope payload, to serve as a communications relay between Earth and future missions.

    Indian Initiative 

    • PRATUSH: Indian scientists plan to deploy the radio telescope PRATUSH on the moon’s far side, built by the Raman Research Institute (RRI) in collaboration with the Indian Space Research Organisation (ISRO).
    • Deployment Process: Initially, ISRO will place PRATUSH into orbit around the Earth, then fine-tune it before launching it towards the moon. Operating in Earth orbit will offer advantages such as free space operation and reduced ionosphere impact compared to ground-based experiments.
    • Observational Advantages: PRATUSH in lunar orbit will have ideal observing conditions, operating in free space with minimal radio frequency interference (RFI) and no ionosphere, essential for studying the signal from the Dark Ages.
    • Instrument Features: PRATUSH will carry a wideband frequency-independent antenna, a self-calibrating analog receiver, and a digital correlator to capture radio noise in the signal from the Dark Ages.

    Conclusion: The global initiative to deploy telescopes on and around the moon aims to overcome Earth’s radio noise and capitalize on the lunar far side’s pristine conditions for groundbreaking astronomical observations, including studying the universe’s early Dark Ages.

    Mains question for practice 

    Q Discuss the global initiatives to deploy telescopes on the moon.

     

     

     

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  • RBI Notifications

    Digital India Trust Agency (DIGITA) to check Illegal Lending Apps

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    Why in the news?

    To address the rising threat of cyber fraud, the Reserve Bank of India (RBI) is planning to establish a Digital India Trust Agency (DIGITA).

    About Digital India Trust Agency (DIGITA)

    DIGITA aims to tackle the proliferation of illegal lending apps by verifying and maintaining a register of authenticated digital lending platforms.

    Role of DIGITA:

    1. Public Register: It will maintain a public register of verified apps, providing transparency and aiding law enforcement agencies in identifying unauthorised platforms.
    2. Verification Hub: It will serve as a central agency for vetting digital lending apps, ensuring their authenticity and compliance with regulations.

    Regulatory Implications

    • Apps lacking the ‘verified’ signature from DIGITA will be deemed unauthorized, enhancing law enforcement efforts against financial crimes in the digital domain.
    • Verification processes will promote transparency and accountability within the digital lending sector, curbing fraudulent activities.

    Progress made so far

    • The RBI has shared a list of 442 digital lending apps with the IT Ministry for whitelisting with Google.
    • Google has removed over 2,200 digital lending apps from its PlayStore, aligning with RBI and DFS directives to only allow apps from regulated entities or their partners.

    PYQ:

    2016:

    Regarding ‘DigiLocker’, sometimes seen in the news, which of the following statements is/are correct?

    1. It is a digital locker system offered by the Government under Digital India Programme.

    2. It allows you to access your e-documents irrespective of your physical location.

    Select the correct answer using the code given below.

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

    Practice MCQ:

    Consider the following statements about RBI led Digital India Trust Agency (DIGITA):

    1.    It aims to tackle the proliferation of illegal lending apps.

    2.    Apps lacking the ‘verified’ signature from DIGITA will be deemed unauthorized.

    Which of the given statements is/are correct?

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2

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  • Global Geological And Climatic Events

    Taiwan’s Earthquake and the Pacific Ring of Fire

    Prelims Only | Enviro & Biodiversity | Mains Paper 1: Salient Features Of World’S Physical Geography

    Why in the news?

    • Taiwan was struck by its most powerful earthquake in at least 25 years.
    • Its susceptibility to earthquakes is attributed to its location along the Pacific “Ring of Fire” where a majority of the world’s seismic activity occurs.
    • Taiwan is primarily influenced by the collision of the Philippine Sea Plate and the Eurasian Plate.

    What is the Pacific ‘Ring of Fire’?

    • The Pacific ‘Ring of Fire’ or Pacific Rim, or the Circum-Pacific Belt, is an area along the Pacific Ocean that is characterized by active volcanoes and frequent earthquakes.
    • Volcanic arcs and oceanic trenches partly encircling the Pacific Basin form the so-called Ring of Fire.
    • It is home to about 75 per cent of the world’s volcanoes – more than 450 volcanoes.
    • Also, about 90 per cent of the world’s earthquakes occur here.

    Its spread

    • Its length is over 40,000 kilometres and traces from New Zealand clockwise in an almost circular arc covering Tonga, Kermadec Islands, Indonesia.
    • It is moving up to the Philippines, Japan, and stretching eastward to the Aleutian Islands, then southward along the western coast of North America and South America.

    Seismic activity of the region

    • The area is along several tectonic plates including the Pacific plate, Philippine Plate, Juan de Fuca plate, Cocos plate, Nazca plate, and North American plate.
    • The movement of these plates or tectonic activity makes the area witness abundant earthquakes and tsunamis every year.
    • Along much of the Ring, tectonic plates move towards each other creating subduction zones.
    • One plate gets pushed down or is subducted by the other plate.
    • This is a very slow process – a movement of just one or two inches per year.
    • As this subduction happens, rocks melt, become magma and move to Earth’s surface and cause volcanic activity.

    PYQ:

    2020: Discuss the geophysical characteristics of Circum-Pacific Zone.

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  • Wildlife Conservation Efforts

    Caracals on the brink of extinction in India

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

    Why in the news?

    • With only an estimated 50 individuals remaining, predominantly in western India, the caracal (Caracal caracal schmitzi) is on the verge of extinction in the country.
    • Ranthambhore Tiger Reserve in Rajasthan and Kutch in Gujarat are the last strongholds for caracals in India, hosting around 28 and 20 individuals, respectively.

    About Caracals

    • Caracals are small wild cats known for their long ears with tufts and a reddish-tan or sandy-brown fur. It is called Siya Gosh in India.
    • It is nocturnal animal typically preys upon small mammals, birds, and rodents.
    • They live naturally in India, especially in Northwestern India. They are also found in Africa, the Middle East, and Central Asia.
    • They are found in Aravalli hill range, semi-deserts, savannahs, scrublands, and dry forests.
    • Caracals used to live all over Central India and the Indo-Gangetic plains, but they haven’t been spotted in those areas for 40 years.

    Conservation Status

    • Caracals are listed as ‘Least Concern‘ on the IUCN Red List globally.
    • It is listed as Near Threatened in India,
    • It falls in the Schedule-I of the Indian Wildlife (Protection) Act, 1972.

    Protection Efforts

    • In 2021, the National Board for Wildlife (NBWL) and the Ministry of Environment, Forest and Climate Change (MOEFCC) announced a plan to recover and increase the population of 22 species in India, including caracals.
    • Areas like Kutch, Aravalli mountains, Malwa plateau, and Bundelkhand region have been identified as potential habitats, with the Ranthambore-Kuno Landscape being a key conservation site.

    PYQ:

    2017:

    In India, if a species of tortoise is declared protected under Schedule I of the Wildlife (Protection) Act, 1972, what does it imply?

    (a) It enjoys the same level of protection as the tiger.

    (b) It no longer exists in the wild, a few individuals are under captive protection; and now it is impossible to prevent its extinction.

    (c) It is endemic to a particular region of India.

    (d) Both B and C stated above are correct in this context.

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  • Wildlife Conservation Efforts

    Nagarjunasagar-Srisailam Tiger Reserve (NSTR)

    National Parks/WS | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the news?

    The Forest Department and a temple authority at Ahobilam have imposed certain restrictions on visitors arriving at a shrine in Nagarjunasagar-Srisailam Tiger Reserve (NSTR).

    About Nagarjunasagar-Srisailam Tiger Reserve

    Details
    Origin of Name Named after Nagarjuna Sagar Dam and Srisailam Dam.
    Location Situated in the Nallamala hill range, part of the Eastern Ghats in Andhra Pradesh.
    Area Largest tiger reserve area in India, covering a total area of 3727 sq km.
    Wildlife Sanctuaries Constituted by the Rajiv Gandhi Wildlife Sanctuary and the Gundla Brahmeswaram Wildlife Sanctuary.
    Vegetation Features tropical, dry, moist, deciduous vegetation with diverse flora and fauna.
    Topography Consists of plateaus, ridges, gorges, and deep valleys.
    River Krishna Traverses through the reserve for approximately 270 kilometers.
    Additional Information
    • Attained tiger reserve status in 1983.
    • Home to Bengal tigers, Indian leopards, and more.
    • Habitat contains several endemic species of plants.
    • Tropical dry deciduous forests with bamboo and grass undergrowth.

     

    PYQ:

    2020:

    Among the following Tiger Reserves, which one has the largest area under “Critical Tiger Habitat”?

    (a) Corbett

    (b) Ranthambore

    (c) Nagarjunsagar-Srisailam

    (d) Sunderbans

     

    2015:

    Consider the following pairs :

    Place of Pilgrimage: Location

    1.    Srisailam : Nallamala Hills

    2.    Omkareshwar : Satmala Hills

    3.    Pushkar : Mahadeo Hills

    Which of the pairs given above is/are correctly matched?

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

    Practice MCQ:

    It is the largest tiger reserve in India, covering a total area of 3727 sq km. It is constituted by the Rajiv Gandhi Wildlife Sanctuary and the Gundla Brahmeswaram Wildlife Sanctuary and features tropical, dry, moist, deciduous vegetation with diverse flora and fauna.

    Which protected area is implied by the above description?

    (a) Nagarjunasagar-Srisailam Tiger Reserve

    (b) Sathyamangalam Tiger Reserve

    (c) Kalakkad Mundanthurai Tiger Reserve

    (d) Biligiriranga Swamy Temple Tiger Reserve

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  • Innovations in Biotechnology and Medical Sciences

    OptiDrop platform for studying Single Cells

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

    Why in the news?

    The Centre for Cellular and Molecular Platforms (C-CAMP) in Bengaluru has unveiled OptiDrop platform designed to simplify and significantly reduce the cost of studying single cells.

    About C-CAMP

    • C-CAMP Initiative was established in 2009 under the aegis of the Department of Biotechnology, Ministry of Science, Technology, and Earth Sciences.
    • It stands as India’s premier biosciences research and innovation hub.

    What is OptiDrop?

    • OptiDrop presents a cost-effective alternative to traditional flow cytometry methods, making single-cell analysis more accessible to a broader range of researchers and institutions.
    • OptiDrop simplifies single-cell analysis by encapsulating individual cells within droplets, facilitating easier manipulation and analysis compared to traditional methods.
    • Key features such as affordability, live data visualization, compact design, and closed-system architecture enhance its suitability for diverse clinical applications.
    Cytometry is the measurement of number and characteristics of cells. Variables that can be measured by cytometric methods include cell size, cell count, cell morphology (shape and structure), cell cycle phase, DNA content, and the existence or absence of specific proteins on the cell surface or in the cytoplasm.

    Applications of OptiDrop

    • Expansive Utility: OptiDrop unlocks various downstream applications, including drug screening, environmental monitoring, immunotherapy, and single-cell genomics, revolutionizing research across multiple domains.
    • Advanced Research Capabilities: Researchers can leverage OptiDrop to study individual cell behavior during drug screenings, identify and monitor environmental contaminants, sort specialized cell populations, and explore genetic heterogeneity within cell populations.

    Benefits offered by OptiDrop

    • Accessible Technology: Unlike conventional cytometers, which can cost up to Rs 40 lakh or more, OptiDrop offers a cost-efficient solution likely priced around Rs 10 lakh, making it accessible to a broader range of research labs and institutions.
    • Affordable Scalability: OptiDrop’s affordable pricing and scalable design allow institutions of varying sizes to adopt the technology, democratizing access to cutting-edge single-cell analysis capabilities.
    • Long-Term Sustainability: By reducing the barrier to entry for single-cell analysis, OptiDrop paves the way for sustainable and impactful research initiatives, driving innovation and discovery in the life sciences.

    PYQ:

    2020:

    Which of the following statements are correct regarding the general difference between plant and animal-calls?

    1.    Plant cells have cellulose cell walls whilst animal cells do not.

    2.    Plant cells do not have plasma membrane unlike animal cells which do.

    3.    Mature plant cell has one large vacuole whilst animal cell has many small vacuoles.

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

    Practice MCQ:

    The OptiDrop equipment recently seen in news finds application in:

    (a) Cytometry

    (b) Astronomy

    (c) Geology

    (d) Radiometry

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  • Global Geological And Climatic Events

    Mother of Dragons Comet: A Rare Celestial Phenomenon

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

    Why in the news?

    • The “Mother of Dragons” comet, officially named Comet 12P/Pons-Brooks, is making a rare appearance in the Northern Hemisphere skies.
    • This Halley-type comet, completing its orbit every 71 years, has emerged marking its first sighting since 1954.

    What is a Comet?

     

    • A comet is a celestial object composed primarily of ice, dust, and rocky particles that orbit the Sun in elongated, elliptical paths.
    • These icy bodies originate from the outer regions of the solar system, specifically from two regions: the Kuiper Belt and the Oort Cloud.
    • Comets are often referred to as “dirty snowballs” or “icy dirtballs” due to their composition.
    • Halley’s Comet is a short-period comet visible from Earth every 75–79 years.
    • It was last seen in Earth’s skies in 1986 and was met in space by an international fleet of spacecraft. It will return in 2061 on its regular journey around the Sun.

     

    About Mother of Dragons Comet

    • It is named by the European Space Agency (ESA).
    • The comet’s name is inspired by its link to the annual “kappa-Draconids” meteor shower, active from November 29 to December 13 each year.
    • It has a width of 17 km. the comet features an elliptical orbit adorned with a mysterious spiral of luminous light enveloping its icy nucleus.
    • It is comprised of ice, dust, rock, and diatomic carbon molecules.
    • It dissipates a radiant emerald hue when illuminated by the sun, captivating observers with its bright green appearance.

    Display Features of the Comet

    • Renowned for its cryovolcanic eruptions, the comet periodically ejects material from its icy core into space, resulting in breath-taking luminosity.
    • Its most recent eruption in July 2023, after 69 years, earned it the moniker “devil comet” due to its dramatic outburst, resembling horns likely caused by internal features.

    PYQ:

    2014:

    What is a coma, in the content of astronomy?

    (a) Bright half of material on the comet

    (b) Long tail of dust

    (c) Two asteroids orbiting each other

    (d) Two planets orbiting each other

     

    Practice MCQ:

    With reference to the “Mother of Dragons” Comet, consider the following statements:

    1.    It is named by the NASA.

    2.    It is comprised of ice, dust, rock, and diatomic carbon molecules.

    3.    It makes appearances after every 10 years.

    How many of the above statements is/are correct?

    (a) One

    (b) Two

    (c) Three

    (d) None

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  • Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

    Nuclear Fusion: KSTAR reaches a temperature of 100 million Celsius

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

    Why in the news?

    • South Korean scientists at the Korea Institute of Fusion Energy (KFE) achieved a significant milestone by producing temperatures of 100 million Celsius for 48 seconds in the Korea Superconducting Tokamak Advanced Research (KSTAR) fusion reactor.
    • KSTAR maintained the high confinement mode (H-mode) for over 100 seconds, demonstrating stability in plasma conditions crucial for sustained fusion reactions.
    • This is a world record.

    What is Tokamak Technology?

     

    • Scientists utilize a tokamak, a donut-shaped reactor, to heat hydrogen variants to extreme temperatures, creating plasma.
    • This reactor replicates the Sun’s fusion reaction, generating immense heat energy.

     

    What is Nuclear Fusion?

    • Nuclear fusion involves fusion of hydrogen and other light elements to release massive energy, akin to the process that powers the Sun and stars.
    • It is a process where two light atomic nuclei combine to form a heavier nucleus, releasing a large amount of energy in the process.
    • This occurs under extremely high temperatures, typically in the range of tens of millions of degrees Celsius, and pressure, similar to those found in the core of stars.
    • In a tokamak reactor, hydrogen variants are heated to extreme temperatures to create a plasma, mimicking conditions found in the Sun’s core.
    • 1 kg of fusion fuel contains about 10 million times as much energy as a kg of coal, oil or gas.

    Significance of KSTAR’s achievements

    • Achieving sustained fusion reactions in laboratory conditions unlocks the potential for unlimited, zero-carbon electricity generation.
    • By extending the duration of high-temperature fusion, scientists aim to sustain plasma temperatures of 100 million degrees for 300 seconds by 2026, pushing the boundaries of fusion research.
    • Progress in fusion research at KSTAR contributes to international efforts, supporting projects like the International Thermonuclear Experimental Reactor (ITER) in France.

    ITER Project

     

    • ITER is a unique partnership of nations jointly responsible for the construction, operation, and decommissioning of an experimental fusion facility.
    • It was founded in 2007 and is based at Saint-Paul-lez-Durance, France.
    • ITER being an experimental reactor, it will allow the study of fusion reaction which governs the Sun and other Stars.
    • Nuclear fusion will take place in the form of Plasma in a Tokamak.

    ITER is run, funded and designed by 7 members:

    1. European Union (EU)
    2. India
    3. China
    4. Japan
    5. Russia
    6. South Korea
    7. United States

    Benefits offered by Nuclear Fusion Energy

    • Clean Energy: Fusion reactions produce minimal radioactive waste compared to nuclear fission, which generates long-lived radioactive waste. Fusion also emits no greenhouse gases, making it an environmentally friendly energy source.
    • Safety and Controlled Nature: Fusion reactions are inherently safer than nuclear fission reactions. Fusion reactors have a lower risk of accidents and do not produce runaway chain reactions like fission reactors.
    • Energy Security: Fusion provides a reliable and secure source of energy, reducing dependence on fossil fuels and volatile energy markets. It offers a sustainable solution to meet global energy demand.
    • High Energy Density: Fusion reactions release a vast amount of energy compared to other energy sources. This high energy density makes fusion power compact and efficient, enabling it to meet large-scale energy needs.
    • Scalability: Fusion reactors can be designed to scale up or down to meet varying energy demands. They can serve as base-load power plants or complement renewable energy sources, providing flexibility in the energy mix.
    • Minimal Environmental Impact: Fusion power plants have a small footprint and do not require large mining operations or fuel transportation, reducing their environmental impact. They also produce no air pollution or carbon emissions during operation.

    PYQ:

    2016:

    India is an important member of the ‘International Thermonuclear Experimental Reactor’. If this experiment succeeds, what is the immediate advantage for India?

    (a) It can use thorium in place of uranium for power generation

    (b) It can attain a global role in satellite navigation

    (c) It can drastically improve the efficiency of its fission reactors in power generation

    (d) It can build fusion reactors for power generation

     

    Practice MCQ:

    The Korea Superconducting Tokamak Advanced Research (KSTAR) fusion reactor has recently set a world record. In this regard, consider the following statements:

    1.    It produced a temperatures of 100 million Celsius for 48 seconds.

    2.    It achieved sustained fusion reactions in laboratory conditions.

    Which of the given statements is/are correct?

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2

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  • Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

    South Asia, India risk squandering demographic dividend: World Bank

    Explained | Economics | Mains Paper 3: Issues relating growth and development, employment

    Why in the News? 

    Recently, the ‘Job for Resilience Report’ was published by the World Bank. The Report talks about how the South Asia region including India is not making use of its demographic dividend.

    • The pace of job creation in the region fell well short of the growth in the working-age population, even as it projected a strong 6.0-6.1% growth for 2024-25 for the region in its South Asia region.’

    Main findings in this report:

    The South Asia’s labor markets as Emerging markets and developing economies: 

    • Declining employment ratio: South Asia’s employment weakened from 2000–23, despite a 6% post-pandemic surge. While most EMDEs remained stable, South Asia declined by 2%, with varied changes within.
    • Low employment ratios: Except for Nepal, South Asian countries have employment ratios significantly lower than other EMDEs, with South Asia’s ratio at 59%, notably lower than the 70% average elsewhere in 2023.
    • Employment weakness for men and women: In South Asia, men’s employment ratios declined over two decades, compared with other EMDEs. Women’s ratios, persistently low and half those elsewhere, primarily contribute to South Asia’s lower overall employment rates.
    • A missing engine of growth: In the 2010s, South Asia experienced a surge in labor productivity growth, which later declined below the EMDE average from 2020–23. Unlike other EMDEs, South Asia’s output growth relied heavily on labor productivity growth and working-age population expansion. However, declining employment ratios hampered output growth.

    Report on Indian Scenario:

    • Trends in employment and labor productivity: India’s employment growth in the 2010s was weak but rebounded post-pandemic. The employment ratio declined significantly until 2022 but partially recovered by 3 percentage points in 2023.
    • Migrant workers:  In India, Migrant workers returned to rural areas, and emigration from rural areas slowed, during the pandemic.5 India has the region’s second-largest share of workers in agriculture (44 per cent) after Nepal.
    • Employment composition: India’s industrial employment grows with public investments, eased labor regulations, and contract labor. The services sector, led by IT, BPO, and healthcare, thrives on a skilled workforce and digital infrastructure, limiting opportunities for unskilled labor.

    Measures to address the challenges highlighted in the Report: 

    • Skill Development Programs: Implementing extensive skill development programs to equip the workforce with the necessary skills demanded by the evolving job market, focusing on both technical and soft skills.
    • Labour Market Reforms: Continuously reviewing and refining labor regulations to strike a balance between protecting workers’ rights and fostering a conducive environment for job creation and investment.
    • Promotion of Inclusive Growth: Implementing policies aimed at promoting inclusive growth, particularly focusing on increasing women’s participation in the workforce through measures like affordable childcare, flexible work arrangements, and addressing cultural barriers.
    • Investment in Infrastructure: Continued investment in infrastructure development to facilitate the growth of industries and services, creating more employment opportunities, particularly in rural areas.
    • Enhancing Productivity: Implementing measures to enhance productivity across sectors through technological advancements, innovation, and efficient resource allocation.

    Conclusion: World Bank warns South Asia, including India, risks wasting demographic dividend due to declining employment ratios and low productivity growth. Urgent measures needed: skill development, labor reforms, inclusive growth promotion, infrastructure investment, and productivity enhancement.

    With inputs from:

    https://openknowledge.worldbank.org/server/api/core/bitstreams/4ec19c2d-65fd-4523-8020-338f0cb98523/content

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  • RBI Notifications

    Let’s make ₹ a global currency: PM to RBI

    Explained | Economics | Mains Paper 3: Indian Economy

    Why in the news? 

    PM Modi asked the RBI to prepare a 10-year strategy to make the Indian rupee a globally “accessible and acceptable” currency and to meet the credit needs of every segment of the country

    What is Global Currency?

    A global currency refers to a single currency that is used by every country in the world. This concept involves all nations adopting the same currency for international trade and transactions

    What are the major challenges for India to make Rupeea a Global Currency?

    • Economic Stability: The Indian economy would need to demonstrate consistent stability and growth to inspire confidence among international investors and users of the currency.  
    • Liquidity in Financial Market Development:  These markets need to be deep and liquid to accommodate large volumes of international transactions denominated in INR.
    • Capital Controls: India currently has restrictions on capital flows in and out of the country. These would need to be eased to facilitate international trade and investment denominated in INR.
    • Legal and Regulatory Framework: There would need to be robust legal and regulatory frameworks in place to govern the use of the INR in international transactions, including clearing and settlement systems, as well as dispute resolution mechanisms.
    • International/ Investors Acceptance: Convincing other countries, businesses, and individuals to adopt the INR as a global currency would require concerted diplomatic efforts, as well as initiatives to promote its use in international trade and finance.
    • Currency Convertibility: Full convertibility of the INR would be necessary for it to become a global currency.

    Indian Efforts to Make Rupee a Global Currency:

    • RBI’s Roadmap for Rupee Internationalization: The RBI has published a report outlining a roadmap for the internationalization of the Rupee. This roadmap recommends actions such as including the Rupee in the Special Drawing Rights (SDR) basket, promoting its use in trade invoicing and settlement, facilitating its use in offshore markets, and developing financial products denominated in Rupees.
    • Promoting Use of Local Currencies for Cross-Border Transactions: India has been engaging in agreements with countries like the UAE to promote the use of local currencies, including the Rupee, for cross-border transactions.

    Way Forward:

    • Need for Transactions in Rupee: To be an accepted International Currency, the Indian rupee is to be freely used in transactions by residents and non-residents and as a reserve currency for global trade.
    • Need to increase the Exports: Indian Trades need to be promoted beyond the Asian region.  All export and import transactions need to be invoiced in Indian rupees.
    • Reducing the Constraints: Legal and Regulatory frameworks need to be freed to attract investors for their business profits without hampering security concerns.

    https://www.hindustantimes.com/india-news/lets-make-a-global-currency-pm-to-rbi-101711996093588.html

    https://theprint.in/opinion/indian-rupee-can-become-global-reserve-currency-but-modi-govt-must-bring-reforms-for-that/1738000/

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