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  • PM pitches India as trusted base for chip manufacturing

    Why in the News

    The Prime Minister has said the world needs “new and trusted locations” for semiconductor manufacturing and that India is readying itself to meet that requirement, while inaugurating SEMICON India 2026 in New Delhi. He said India has entered the second phase of its semiconductor journey, moving beyond policy announcements and plant construction toward commercial production of chips. The pitch answers a specific market condition, that chip companies are looking to diversify their global supply chains away from a narrow set of manufacturing locations. The tension is between the pitch and the base it rests on. India’s semiconductor demand is projected at $110 billion by FY30, while domestic manufacturing remains at a nascent stage and imports have grown at a compound annual rate of 23%.

    What is the India Semiconductor Mission?

    1. What it does: It is the central programme that provides fiscal support to semiconductor projects in India, covering fabrication, packaging and other parts of the chip value chain.
    2. Phase one scale: Twelve semiconductor projects were approved under the first phase, spanning fabrication, packaging and other value chain segments.
    3. Phase two scope: The programme has moved to Semicon 2.0, a Rs 1.27 lakh crore programme that widens the focus beyond large chip factories.

    Why is India pitching itself as a trusted location now?

    1. Supply chain diversification: Chip companies are looking to spread manufacturing across more countries, which creates an opening for a location that is not already in the established set.
    2. The trust framing: The pitch was made as a claim about reliability rather than cost, on the stated ground that the world’s trust in India is increasing alongside its economic growth.
    3. The supporting economic markers: The claim was anchored on 7.8% quarterly GDP growth, a recent sovereign rating upgrade by a Japanese credit rating agency, and the New Delhi Declaration adopted at the BRICS Summit India hosted this month.
    4. The stated pace: India has achieved in about four years what generally takes countries around a decade to build, though semiconductor manufacturing was described as a journey with no end point.

    What has the first phase actually delivered?

    1. Projects in production: Five of the twelve approved projects have already started commercial production, which is the marker separating phase one from phase two.
    2. Memory output from Gujarat: Micron Technology has begun shipping DRAM (Dynamic Random Access Memory) and NAND memory products to customers globally from its Sanand facility in Gujarat.
    3. The scale up path there: The plant is expected to assemble and test tens of millions of chips this year, scaling to hundreds of millions next year.
    4. Design and engineering presence: Infineon Technologies, a German chipmaker, now has over 2,800 employees in India, and has said India has potential to strengthen its position across the global semiconductor value chain as its domestic market and technology capabilities expand.

    What does Semicon 2.0 change about the approach?

    1. Beyond the fab: The programme extends support to semiconductor equipment, materials, design, research and development, supply chains and skilled manpower, rather than to large chip factories alone.
    2. The ecosystem logic: A fabrication plant depends on a surrounding base of tool makers, chemical and gas suppliers and trained engineers, which the first phase did not fund directly.
    3. Project count: The next phase is expected to see the number of approved projects increase further.

    How large is the demand gap the mission is chasing?

    1. Projected demand: India’s semiconductor demand is projected to reach $110 billion by FY30 and to exceed $200 billion by FY35.
    2. The import bill so far: The country spent almost $150 billion on semiconductor product imports between FY17 and FY25.
    3. The trajectory if nothing changes: Imports grew at a compound annual growth rate of 23% over that period, and on the same trend annual imports could reach $240 billion by 2035.
    4. The policy conclusion drawn: Building a comprehensive semiconductor ecosystem has been identified as an urgent national priority on the strength of that gap.

    Challenges to the India Semiconductor Mission

    1. Utility reliability at fab sites: A fabrication plant needs continuous ultrapure water and uninterrupted power, and an interruption of either scraps the wafers in process. Eg. Taiwan’s chip plants cut water use and trucked in supplies during the 2021 drought when the island’s reservoirs fell to record lows.
      The Fix: Ring fence dedicated water recycling plants and captive power capacity for each approved site as a condition of disbursal.
    2. Fabrication workforce depth: India’s semiconductor engineers sit in design centres rather than in fabrication and process engineering, which is a different skill base. Eg. Design centres of global chipmakers have operated in Bengaluru and Hyderabad for over two decades without a commercial fabrication plant alongside them.
      The Fix: Tie a share of the incentive to process engineer placements trained through partnerships with operating fabs abroad.
    3. Equipment and materials import dependence: The tools and high purity inputs a fab consumes come from a handful of global suppliers, so domestic assembly does not by itself reduce external exposure. Eg. Extreme ultraviolet lithography machines are produced by a single company, ASML of the Netherlands.
      The Fix: Anchor equipment and materials suppliers in India through long term purchase commitments from the approved plants rather than through subsidy alone.
    4. Competition at mature nodes: India’s approved capacity targets older process nodes, where large capacity additions elsewhere can push prices below the level a new entrant needs. Eg. Sustained capacity expansion in China at 28 nanometre and older nodes has driven down prices for legacy chips.
      The Fix: Condition support on secured long term offtake contracts rather than on installed capacity alone.

    Conclusion

    The pitch is that trust and diversification, rather than cost, are what bring chip manufacturing to India. The measurable claim behind it is narrower, five plants in commercial production against a demand curve heading for $200 billion. Semicon 2.0’s widening into equipment, materials and skills is the part that decides whether the fabs have a supply base around them, and the count of projects approved under it is the next thing to watch.

    Matching Previous Year Question

    “[2025, GS3, 15] India aims to become a semiconductor manufacturing hub. What are the challenges faced by the semiconductor industry in India? Mention the salient features of the India Semiconductor Mission.”

  • Who has to pay MDR on UPI and who stands to gain the most?

    Why in the News

    The National Payments Corporation of India (NPCI) has released a circular allowing a Merchant Discount Rate (MDR) to be levied on certain Unified Payments Interface (UPI) payments from 15 October. The charge falls on person to merchant (P2M) payments above Rs 2,000 and is paid by merchants to payment processors and banks rather than by consumers. The circular follows a long public argument over whether UPI would be charged at all, which the Ministry of Finance answered with a press release saying banks have been advised to ensure merchants do not pass the charge on to customers, and that UPI application providers are expressly prohibited from imposing platform fees or hidden charges on users. The tension is over incidence. The Opposition argues the charge will raise prices for consumers, while the government argues it will not, and that even the impact on merchants will be minimal.

    What is the Merchant Discount Rate (MDR)?

    1. Definition: MDR is a fee for using UPI that is paid by the merchant to the payment processors and the banks that carry the transaction. Consumers do not pay it directly.
    2. Who it is collected from: It is deducted from the merchant’s receipts, so the merchant receives less than the amount the customer sent.
    3. Coverage on UPI: It applies only to person to merchant payments above a value threshold, not to transfers between two individuals.

    What does a merchant actually pay, and on which transactions?

    1. The standard rate: Mid to large sized merchants receiving UPI payments in excess of Rs 2,000 per transaction pay 0.4% of the transaction value.
    2. The absolute cap: For transactions of Rs 75,000 and above, the MDR is capped at Rs 300 per transaction, so the charge stops rising with the ticket size.
    3. Essential and thin margin sectors: Transactions of Rs 2,000 or more in railways, telecommunications, insurance, fuel and agricultural inputs attract a flat Rs 5 per transaction. The stated purpose is cost certainty for critical public services and for businesses operating on narrow margins.
    4. Capital market payments: Payments to mutual funds, stockbrokers, dealers and for equities attract 0.02%, capped at Rs 300 per transaction, a lower rate justified as support for retail participation in formal financial markets.

    How much of UPI escapes the charge altogether?

    1. Person to person transfers: All P2P transactions remain free regardless of amount, under the specification that no transaction fee, platform fee or other charge may be imposed on individuals for sending or receiving money through UPI. P2P is about 37% of total UPI transaction volume.
    2. Small ticket merchant payments: Payments to merchants of up to Rs 2,000 remain free of MDR, and these are another 60.5% of all UPI transactions by volume.
    3. The combined exemption: Taken together, 97.5% of all UPI transactions remain free, since P2M payments above Rs 2,000 are just 2.5% of volume.
    4. Small merchants and street vendors: Merchants receiving up to Rs 1 lakh per month through UPI QR codes under the Person to Person Merchant (P2PM) category are exempt, which pushes the charged share below 2.5%.

    How large is the revenue pool, and how is it divided?

    1. Value concentration: P2M transactions above Rs 2,000 are only 2.5% of volume but 20% of all UPI transactions by value.
    2. The monthly ceiling: Of the Rs 29.8 lakh crore transacted over UPI in August 2026, P2M payments above Rs 2,000 were Rs 5.99 lakh crore, so the absolute maximum collectible is about Rs 2,400 crore a month. The caveats, exemptions, flat rates and caps mean the actual receipts will be lower.
    3. The split: The payer’s bank takes about 40%, because it holds the customer’s account and bears the core authorisation, security and settlement costs. The merchant’s bank takes 30% for managing the merchant relationship, QR code deployment and merchant settlements.
    4. The technology layers: The UPI app or Third Party Application Provider (TPAP) receives 20%, and the Payment Service Provider that links the technology partner bank to the central network switches receives the final 10%.
    5. The promotion fund: A dedicated fund to promote UPI adoption among small merchants will receive an amount equal to 5% of total MDR collections. The circular does not specify which payment system player contributes that 5%.

    Which institutions stand to gain the most?

    1. Yes Bank on both legs: It is the payer bank in more than 50% of all UPI transactions and the payee bank in about 55%, so it collects the largest share of both the 40% and the 30% pools.
    2. The next largest banks: ICICI Bank is the second largest payer bank at 18.3%, and Axis Bank is the second largest payee bank at about 19%.
    3. The two dominant apps: PhonePe accounts for about 46% of UPI transactions by volume and Google Pay another 32%, so the TPAP pool flows overwhelmingly to two applications.

    Challenges to the MDR on UPI

    1. Pass through to consumers: The instruction that merchants must not recover the fee from customers is an advisory rather than an enforceable term, so the cost can surface as a higher listed price. Eg. Surcharging on card payments continued at fuel outlets and small retailers for years after similar advisories were issued.
      The Fix: Write the no pass through condition into the merchant onboarding agreement of the acquiring bank, with a customer complaint route attached to it.
    2. Structuring below the threshold: A hard cut off at Rs 2,000 rewards splitting a single large payment into several smaller ones, which costs the payment system volume without collecting revenue. Eg. Cash dealings were routinely broken up below the Rs 2 lakh limit introduced under Section 269ST of the Income Tax Act, 1961 in 2017.
      The Fix: Charge on the merchant’s monthly aggregate receipts above a threshold rather than on each transaction, so splitting yields no saving.
    3. The cliff at the small merchant limit: The P2PM exemption ends abruptly once monthly receipts cross Rs 1 lakh, so a marginal increase in turnover removes the exemption from the whole of a merchant’s qualifying receipts. Eg. A vendor receiving Rs 1.05 lakh a month loses the exemption entirely rather than on the excess alone.
      The Fix: Taper the charge above the limit so only receipts beyond Rs 1 lakh attract MDR.
    4. Reinforcement of app concentration: A revenue stream keyed to transaction share rewards the applications that already hold most of the market. Eg. NPCI’s cap limiting any third party application to 30% of UPI volume has been deferred repeatedly since it was first framed in 2020.
      The Fix: Weight the small merchant promotion fund toward applications below a defined market share, so the subsidy runs against concentration rather than with it.

    Conclusion

    The charge is deliberately narrow in reach and wide in value. Almost all of UPI stays free, yet the fifth of transaction value that is charged sits with a small set of banks and two applications, which is where the revenue will settle. Whether the advisory against pass through holds is the thing to watch once the framework takes effect on 15 October.

    Back2Basics: National Payments Corporation of India (NPCI)

    1. What it is: An umbrella organisation for retail payments and settlement systems in India, incorporated in 2008.
    2. Legal and institutional basis: It was set up as a not for profit company under the guidance of the Reserve Bank of India and the Indian Banks’ Association, and operates under the Payment and Settlement Systems Act, 2007.
    3. Systems it runs: UPI, RuPay, the Immediate Payment Service, the National Automated Clearing House, FASTag and the Aadhaar Enabled Payment System.
    4. Rule making role: It sets the operating circulars, pricing rules and participation norms that member banks and third party applications must follow on these systems.

    Matching Previous Year Question

    “[2018] Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news? (a) The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank. (b) The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services. (c) The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards. (d) The incentive given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards. Answer: (c)”

  • Global Gender Gap Index 2026

    Global Gender Gap Index 2026

    Why in the News?

    The World Economic Forum (WEF) released the Global Gender Gap Index 2026, ranking 145 economies across four dimensions. India retained its 131st position. Iceland remained at the top.

    Key Findings

    • India’s overall gender parity: 64.5%
    • Global average: 69.2%
    • India has closed 4.3 percentage points of its gender gap since 2006.
    • Globally, 69.2% of the gender gap has been closed.
    • Iceland: 1st, with 93% of its gender gap closed.
    • Top three:
      • Iceland
      • Finland
      • Norway
    • Chad: lowest-ranked country.
    • Iran and Pakistan were also among the bottom three.

    Four Dimensions of the Index

    1. Economic Participation and Opportunity

    India’s parity score: 41.2%

    • Improved by 0.5 percentage points from the previous edition.
    • Still 3.5 percentage points below India’s best score in 2013.
    • Professional and technical workers: parity increased from 26.6% in 2006 to 49.9% in 2026.
    • Legislators, senior officials and managers: 13.1% parity.
    • Labour-force participation parity: 44.1%.

    2. Educational Attainment

    • India recorded 96.6% parity.
    • Declined by 0.5 percentage points from the previous year.
    • Educational gains have been a major contributor to India’s improvement since 2006.

    3. Health and Survival

    • India’s parity score: 95.6%.
    • Sex ratio at birth remained nearly one percentage point lower than in 2006.

    4. Political Empowerment

    • India’s highest-performing subindex.
    • 24.5% of the gender gap closed.
    • Global rank: 67th.
    • Parliament: 16.1% of the gender gap closed in 2026.
    • Ministerial level: 5.9%, compared with 3.5% in 2006.
    • India’s ministerial parity had reached 30% in 2019, before declining.

    Important Global Observations

    • Southern Asia was the lowest-scoring region in Economic Participation and Opportunity.
    • Globally, political empowerment recorded the largest gains since 2006, but has experienced a reversal since 2016.
    • Women account for 19.1% of CEO roles globally.
    • Women remain underrepresented in Artificial Intelligence (AI), accounting for fewer than one in five AI engineers.
    • Australia entered the global top 10 for the first time.
    • Iceland was the only country to cross 90% parity, at 93%.

    Important Full Forms

    • WEF: World Economic Forum
    • AI: Artificial Intelligence
    • CEO: Chief Executive Officer

    Prelims Quick Revision

    • Global Gender Gap Index: World Economic Forum
    • 2026 edition: 145 economies
    • India: 131st
    • Top: Iceland
    • India overall parity: 64.5%
    • Global parity: 69.2%
    • Four dimensions:
      1. Economic Participation and Opportunity
      2. Educational Attainment
      3. Health and Survival
      4. Political Empowerment
    • India’s highest subindex: Political Empowerment
    • India’s Economic Participation parity: 41.2%
    • India’s Educational Attainment parity: 96.6%
    • India’s Health and Survival parity: 95.6%
    • Political Empowerment: 24.5% gap closed
  • Mining amendment is unfair to States

    Mining amendment is unfair to States

    Why in the News

    Section 9D of the Mines and Minerals (Development and Regulation) Amendment Act, 2026 restricts State governments from imposing taxes, cesses or other levies on mineral rights or mineral-bearing land, except in accordance with conditions prescribed by the Centre. The provision follows Mineral Area Development Authority vs. Steel Authority of India (2024), in which a nine-judge Bench of the Supreme Court held that royalty payable on minerals is not a tax. The same Bench recognised the States’ legislative power to tax mineral rights and held that mineral-bearing land falls within the States’ taxation power over land. The tension is that Entry 50 of the State List lets Parliament limit State taxation of mineral rights, while the new section extends its restriction to levies on mineral-bearing land, a separate power under Entry 49 of the State List. What is contested is not the revenue States receive today but the levies they may be barred from raising tomorrow.

    What does Section 9D do?

    1. Scope of the restriction: It bars States from imposing taxes, cesses or other levies on mineral rights or on mineral-bearing land except as the Centre prescribes.
    2. Where the discretion sits: The conditions under which a State may levy are set by the Central government, so future State levies depend on a framework the Centre controls.
    3. What it does not touch: Royalty, the auction premium and the other mineral revenues States currently receive are not altered by the section.

    What is the Centre’s case for a uniform levy framework?

    1. Predictability for investors: The stated objective is to create a predictable tax environment, prevent excessive levies and encourage long-term investment in mining.
    2. Project horizons: Mining projects involve enormous investment and operate over decades, so investors need assurance that financial rules will not change unpredictably from one year to the next.
    3. Revenue assurance offered: The Centre’s position is that 90% of mining sector revenue accrues to the States and that this will continue.

    Why do mineral-rich States object?

    1. Uneven distribution of the resource: India’s mineral wealth is concentrated rather than spread evenly. Odisha, Jharkhand, Chhattisgarh and Karnataka hold enormous reserves of coal, iron ore and other minerals that feed industries across the country.
    2. Costs land on the host State: The host State handles resettlement of displaced groups, environmental damage, pressure on public infrastructure and the long-term consequences of extracting minerals that can never be replaced.
    3. Budgets tied to mining receipts: NITI Aayog’s Fiscal Health Index has recognised the role mining receipts play in the strong revenue mobilisation performance of Odisha and Chhattisgarh. Mining accounts for a large proportion of Odisha’s non-tax revenue.
    4. Higher spending needs in mineral districts: Mineral producing districts require greater public expenditure precisely because they bear the costs of mining.
    5. Loss of a natural advantage: A mineral-rich State ordinarily expects some ability to convert that advantage into resources for its own development, and the section substantially reduces that freedom.

    What is the constitutional objection to Section 9D?

    1. Entry 50 and its built-in limit: The Constitution gives States the power to tax mineral rights under Entry 50 of the State List, subject to limitations Parliament may impose through laws relating to mineral development.
    2. Entry 49 is a separate power: The power to tax lands and buildings under Entry 49 of the State List is a distinct constitutional head and carries no equivalent parliamentary limitation clause.
    3. Where the section goes further: By extending the restriction to taxes or levies on mineral-bearing land, the section reaches a power Entry 50 does not authorise Parliament to limit.
    4. Risk to the 2024 ruling: The amendment risks rendering the impact of the nine-judge ruling nugatory, since a power the Court affirmed can be neutralised by prescription rather than by overruling.
    5. The question it raises: How far can a Central law dealing with mineral development restrict a State’s exclusive power to tax land is now a live constitutional question rather than a mining policy dispute.

    Challenges to Section 9D

    1. Responsibility without fiscal capacity: A federal system cannot function where States carry obligations they have no independent means to fund. Eg. Mineral districts must fund resettlement and infrastructure repair from receipts the Centre may now condition.
      The Fix: Confine the prescribed conditions to levies on mineral rights under Entry 50 and leave the Entry 49 land taxation power untouched.
    2. Predictability purchased by narrowing State choice: Uniformity makes taxation more predictable for investors and reduces the fiscal options available to States. Eg. A State cannot design a mineral-linked levy to fund a district-specific rehabilitation programme without Central prescription.
      The Fix: Set a ceiling on State mineral levies in the statute itself rather than routing each levy through Central approval, so investors get the certainty without the States losing the power.
    3. Litigation risk over a settled question: A provision that neutralises a nine-judge ruling by executive prescription invites a fresh round of constitutional challenge. Eg. Mineral Area Development Authority vs. Steel Authority of India itself ran for decades before it was settled in 2024.
      The Fix: Refer the scope of Section 9D to the Inter-State Council under Article 263 before conditions are prescribed, so the levy framework is negotiated rather than litigated.
    4. Concentration of the burden on a few States: The section’s cost is borne almost entirely by a handful of mineral-bearing States rather than spread across the Union. Eg. Odisha, Jharkhand, Chhattisgarh and Karnataka carry the bulk of the country’s coal and iron ore output.
      The Fix: Weight mineral-bearing districts explicitly in the next Finance Commission’s horizontal devolution formula, so extraction costs are recognised in transfers.

    Conclusion

    The minerals beneath a State’s soil serve the entire country, and the costs of extracting them are felt most directly by the people who live above them. A State that bears the infrastructural and social consequences of extraction must retain a meaningful stake in the economic value its natural resources generate. The unresolved point is whether a Central law on mineral development may condition a State’s power to tax land, a power the Constitution places under a separate entry and does not subject to parliamentary limitation. That question now sits between a statute in force and a nine-judge ruling that has not been overruled.

    What is Fiscal Federalism?

    1. About: It is the division of taxation powers, expenditure responsibilities and transfer arrangements between the levels of government in a federation.
    2. Rationale: It exists because the level of government best placed to raise a tax is often not the level that must spend on the service, so the design has to close that gap without destroying accountability.
    3. Vertical imbalance: The Union raises a larger share of revenue than it spends directly, while States carry the larger share of expenditure obligations, and transfers bridge the difference.
    4. Horizontal imbalance: Revenue capacity differs sharply across States of similar need, which is why devolution formulas weight income distance, area and population rather than collections alone.

    Back2Basics: NITI Aayog’s Fiscal Health Index

    1. What it is: A composite index published by NITI Aayog that ranks States on the quality of their public finances.
    2. What it measures: It scores States on sub-indices covering quality of expenditure, revenue mobilisation, fiscal prudence, debt index and debt sustainability.
    3. First edition: The maiden report was released in January 2025 and covered 18 major States.
    4. Why it matters here: It is the benchmark that records mining receipts as a driver of revenue mobilisation performance in mineral-bearing States.

    Matching Previous Year Question

    [2025] Examine the evolving pattern of Centre-State financial relations in the context of planned development in India. How far have the recent reforms impacted the fiscal federalism in India?

  • PMAY-U: Housing, Inclusion and Empowerment

    PMAY-U: Housing, Inclusion and Empowerment

    Why in the News?

    The Ministry highlighted the achievements of Pradhan Mantri Awas Yojana-Urban (PMAY-U) and the progress of PMAY-U 2.0, aimed at achieving Housing for All in urban areas. PMAY-U was launched in June 2015, while PMAY-U 2.0 was launched in September 2024.

    Key Highlights

    PMAY-U

    • Provides all-weather pucca houses with basic civic amenities to eligible urban households.
    • Focuses on:
      • Economically Weaker Sections (EWS)
      • Low Income Groups (LIG)
      • Middle Income Groups (MIG)
      • Slum dwellers
    • Original mission period was up to March 2022, extended up to 30 September 2026 for completion of sanctioned projects.

    PMAY-U 2.0

    • Launched in September 2024.
    • Implementation period: 2024-2029.
    • Target: 1 crore additional urban poor and middle-class families.
    • Financial assistance: up to ₹2.50 lakh per unit.
    • Also includes affordable rental housing.

    Income Categories

    • EWS: Annual income up to ₹3 lakh
    • LIG: ₹3 lakh to ₹6 lakh
    • MIG: ₹6 lakh to ₹9 lakh

    Four Verticals of PMAY-U 2.0

    1. Beneficiary-Led Construction (BLC)

    • Financial assistance up to ₹2.5 lakh.
    • For eligible EWS families.
    • Construction on own available land.
    • Maximum carpet area: 45 sq m.

    2. Affordable Housing in Partnership (AHP)

    • Public/private agencies construct affordable houses.
    • Houses generally have 30-45 sq m carpet area.
    • Financial assistance up to ₹2.5 lakh per unit.

    3. Affordable Rental Housing (ARH)

    • Provides affordable rental accommodation.
    • Covers EWS and LIG beneficiaries, including:
      • Migrants
      • Homeless persons
      • Industrial workers
      • Working women
      • Construction workers
      • Street vendors
      • Rickshaw pullers
      • Contractual workers

    4. Interest Subsidy Scheme (ISS)

    • Provides interest subsidy on eligible home loans.
    • Applicable to loans sanctioned and disbursed on or after 1 September 2024.
    • Covers EWS, LIG and MIG beneficiaries.

    Major Achievements

    As of 9 August 2026:

    • 1.25 crore houses sanctioned under PMAY-U and PMAY-U 2.0.
    • More than 1 crore houses completed and delivered.
    • Under PMAY-U 2.0:
      • 18.38 lakh houses sanctioned
      • 14.40 lakh under BLC
      • 2.48 lakh under AHP
      • 1.36 lakh under ISS
      • 13,046 dwelling units under ARH
    • Around 1 crore houses among the 1.25 crore sanctioned were allotted to women, either in the name of the female head of household or through joint ownership.

    Inclusion and Empowerment

    PMAY-U promotes:

    • Women ownership/co-ownership of houses.
    • Housing access for:
      • Scheduled Castes (SCs)
      • Scheduled Tribes (STs)
      • Other Backward Classes (OBCs)
      • Minorities
      • Senior citizens
      • Persons with disabilities
      • Transgender persons

    Technology-enabled Implementation

    • Unified Web Portal: application, processing, tracking and fund disbursement.
    • PMAY-U Dashboard: real-time monitoring of key indicators.
    • Geo-tagging: tracks houses through five stages:
      1. Grounding
      2. Foundation
      3. Superstructure
      4. Finishing and external development
      5. Completion
    • Technology Sub-Mission (TSM): promotes modern and disaster-resilient construction technologies.
    • Technology and Innovation Sub-Mission (TISM): promotes innovative, green and climate-responsive housing.
    • Technology Innovation Grant (TIG): supports innovative technologies in AHP projects.

    Prelims Quick Revision

    • PMAY-U: launched in June 2015.
    • PMAY-U 2.0: launched in September 2024.
    • PMAY-U 2.0 period: 2024-2029.
    • Target: 1 crore additional families.
    • Four verticals: BLC, AHP, ARH, ISS.
    • PMAY-U 2.0 covers EWS, LIG and MIG.
    • ARH focuses on rental housing, including migrants and working women.
    • ISS relates to home-loan interest subsidy.
    • Technology tools include geo-tagging, dashboards and unified digital platforms.
  • Care That Goes Beyond the Prescription

    Care That Goes Beyond the Prescription

    Why in the News?

    The Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) is expanding affordable healthcare beyond medicines through a wider basket of surgical, medical consumable and supportive-care products.

    Key Highlights

    • 20,000+ Janaushadhi Kendras across India.
    • Product basket as of August 2026:
      • 2,110 medicines
      • 315 surgicals, medical consumables and devices
    • Covers major therapeutic categories such as:
      • Cardiovascular
      • Anti-cancer
      • Anti-diabetic
      • Anti-infectives
      • Gastro-intestinal
      • Anti-allergic

    Affordability Impact

    • Sales during 2021-22 to 2025-26: ₹7,873.85 crore.
    • Estimated savings to citizens: ₹37,200 crore.

    Healthcare Beyond Medicines

    Janaushadhi Bachpan

    • Baby diapers and wipes
    • Baby feeding bottles
    • Manual breast pumps
    • Infant feeding tubes

    Monitoring and Recovery

    • Electrical nebulizers
    • Nebulizer masks
    • Glucometer test strips
    • Pulse oximeters

    Elderly and Dependent Care

    • Jan Aushadhi Swabhiman: adult diapers.
    • Focus on hygiene, comfort, mobility and caregiving.

    Products in Pipeline

    • Knee brace
    • Walker with sit-to-stand support
    • Medical steam vaporizer
    • Foot elevator pillow
    • Pregnancy back support belt
    • Cervical collar

    Important Full Forms

    • PMBJP: Pradhan Mantri Bhartiya Janaushadhi Pariyojana
    • JAK: Jan Aushadhi Kendra

    Prelims Quick Revision

    • PMBJP provides quality-assured generic medicines at affordable prices.
    • Distribution takes place through Janaushadhi Kendras.
    • The basket now includes medicines + surgicals + medical devices + consumables.
    • Janaushadhi Bachpan: infant-care products.
    • Jan Aushadhi Swabhiman: adult diapers.
  • NITI Aayog: Trade Watch Quarterly

    NITI Aayog: Trade Watch Quarterly

    Why in the News?

    NITI Aayog released the 9th edition of Trade Watch Quarterly for Q1 FY27 (April-June 2026), analysing global and Indian trade trends with a special focus on metals and ores.

    Key Highlights

    • Global goods trade: $13.7 trillion in H1 2026, up 12.5% YoY.
    • Global services trade: grew 10.5%.
    • India’s total trade: $506.9 billion in Q1 FY27, up 15.5% YoY.
    • India saw strong merchandise exports in:
      • Mineral fuels
      • Electrical machinery
      • Nuclear reactors
      • Iron and steel
      • Vehicles

    Metals and Ores

    • Metals exports: $34.8 billion (2025).
    • Iron and steel, articles of iron and steel, and aluminium contributed around 78% of metals exports.
    • Metals and ores imports rose from $32.2 billion (2015) to $60.5 billion (2025).
    • Key import-dependent minerals include:
      • Copper
      • Lithium
      • Cobalt
      • Nickel

    Digitally Delivered Services

    • Exports increased from $277 billion (2024) to $317 billion (2025).
    • India became the 4th-largest DDS exporter, after the US, UK and Ireland.

    Trade Diversification

    • Tanzania and South Africa emerged among India’s top 10 export markets.
    • Imports from Latin America and West Africa increased.
    • Northeast Asia, West Asia-GCC and ASEAN together account for around half of India’s imports.
    • Exports to FTA partners increased 36.3%, while imports rose 10%.

    Policy Significance

    • MMDR Amendment Act, 2026 can support exploration and investment in critical minerals.
    • EU CBAM increases the need for competitive, low-carbon steel and aluminium exports.
    • Priorities include:
      • Domestic mineral exploration
      • Recycling of critical minerals
      • Value addition
      • Renewable energy access
      • Lower logistics and financing costs
      • Export-market diversification

    Important Full Forms

    • NITI: National Institution for Transforming India
    • DDS: Digitally Delivered Services
    • FTA: Free Trade Agreement
    • MMDR: Mines and Minerals (Development and Regulation)
    • CBAM: Carbon Border Adjustment Mechanism
    • GCC: Gulf Cooperation Council

    Prelims Quick Revision

    • Trade Watch Quarterly: NITI Aayog publication.
    • Latest edition: 9th edition, Q1 FY27.
    • India’s total trade: $506.9 billion.
    • Metals and ores imports: $60.5 billion in 2025.
    • India: 4th-largest digitally delivered services exporter.
  • CSIR Transfers Technologies for Sustainable Industry and Safer Roads

    CSIR Transfers Technologies for Sustainable Industry and Safer Roads

    Why in the News?

    CSIR transferred indigenous technologies developed by CSIR-CLRI and CSIR-CRRI to industry, focusing on waste valorisation, circular economy, road safety and sustainable infrastructure.

    Key Technologies

    1. Protein-based Syntans from Chrome Shavings

    • Developed by CSIR-CLRI, Chennai.
    • Converts collagen-rich chrome shavings from leather waste into protein-based syntans.
    • Syntans can be reused in leather retanning.
    • Demonstrated at 100-200 kg pilot scale and validated at 1,500 kg commercial scale.
    • Can reduce Total Dissolved Solids (TDS) in post-tanning wastewater by up to 50%.

    2. Spent Pickling Acid Valorisation

    • Recovers iron and chloride from spent pickling acid.
    • Produces pigment-grade iron oxide and ammonium chloride.
    • Converts hazardous industrial waste into useful products.
    • Supports circular economy and waste utilisation.

    3. ClariVisor

    • Developed by CSIR-CRRI, New Delhi.
    • In-vehicle glare mitigation device for four-wheelers.
    • Designed to fit within the footprint of the vehicle’s original OEM sun visor.

    4. Two Pack Onsite Pothole Filling Mix

    • Cold-application road repair technology.
    • Two components are mixed on-site before application.
    • Does not require a hot-mix plant or heating.
    • Reduces energy consumption and emissions.
    • Enables faster pothole repair and reopening of roads.

    Important Full Forms

    • CSIR: Council of Scientific and Industrial Research
    • CLRI: Central Leather Research Institute
    • CRRI: Central Road Research Institute
    • DSIR: Department of Scientific and Industrial Research
    • TDS: Total Dissolved Solids
    • OEM: Original Equipment Manufacturer
    • SDGs: Sustainable Development Goals

    Prelims Quick Revision

    • CSIR-CLRI: Chennai, leather research.
    • CSIR-CRRI: New Delhi, road research.
    • Chrome shavings: Used to recover collagen-based material for syntans.
    • Spent pickling acid: Can yield iron oxide and ammonium chloride.
    • Two Pack Pothole Mix: Cold application, no heating required.
    • ClariVisor: Glare mitigation for four-wheelers.
  • Special Campaign 6: Swachhata in Government Offices

    Special Campaign 6: Swachhata in Government Offices

    Why in the News?

    The Ministry of Housing and Urban Affairs (MoHUA) and Department of Food and Public Distribution (DFPD) are preparing for Special Campaign 6, to be conducted from 2-31 October 2026.

    Key Highlights

    • Objective: Institutionalise Swachhata and reduce pendency in government offices.
    • Preparatory Phase: 15-30 September 2026.
    • Implementation Phase: 2-31 October 2026.
    • Major focus:
      • E-waste collection, segregation and disposal
      • Disposal of pending references
      • Record management
      • Space management
      • Cleanliness and beautification
    • E-waste activities will follow the E-Waste (Management) Rules, 2022.
    • Special attention to field and outstation offices involved in public service delivery.

    Pending Matters Covered

    • MP and State Government references
    • Inter-Ministerial communications
    • Parliamentary Assurances
    • PMO references
    • Public Grievances and PG Appeals through CPGRAMS

    Special Campaign 5.0: DFPD Performance

    • 1,23,853 files weeded out.
    • 49,830 sq ft space freed.
    • ₹1.67 crore revenue generated.
    • Nov 2025-Aug 2026:
      • 72,577 sq ft space freed.
      • ₹25.95 lakh revenue from scrap disposal.
      • 1,493 cleanliness drives conducted.

    Important Full Forms

    • MoHUA: Ministry of Housing and Urban Affairs
    • DFPD: Department of Food and Public Distribution
    • CPWD: Central Public Works Department
    • NBCC: National Buildings Construction Corporation
    • CPGRAMS: Centralised Public Grievance Redress and Monitoring System
    • PMO: Prime Minister’s Office

    Prelims Quick Revision

    • Special Campaign 6: 2-31 October 2026.
    • Preparatory Phase: 15-30 September 2026.
    • Focus: Swachhata + pendency + records + space + e-waste.
    • E-waste management follows E-Waste (Management) Rules, 2022.
    • Special Campaigns have been conducted since 2021.

  • Delhi ranks first, only 2 large states among top performers in EV list

    Why in the News

    NITI Aayog has released the India Electric Mobility Index (IEMI) 2025, which ranks States and Union Territories on the development of the electric mobility ecosystem and on the adoption of electric vehicles (EVs). Delhi topped the index, followed by Maharashtra and Karnataka. Those two are the only large States among the top performers, out of seventeen. The index therefore records a concentration rather than a diffusion: the territories doing best are small, dense and administratively compact, while most of the country’s population lives in States that the index places in its middle tiers.

    What is the India Electric Mobility Index?

    1. What it measures: It is a composite index assessing the policy framework and the implementation outcomes for electric mobility at the State level.
    2. Who built it: NITI Aayog developed the index in collaboration with World Resources Institute (WRI) India.
    3. Its three themes: Transport electrification progress carries 50% weight, charging infrastructure readiness 30%, and EV research and innovation status 20%.
    4. Coverage: It scores all 36 States and Union Territories on a common 100 point scale.

    What does the overall ranking show?

    1. The spread: Composite scores range from 10 to 84, with a median of 40, so half the country sits at or below two fifths of the achievable score.
    2. The leaders: Delhi scored 84, followed by Maharashtra at 78, Karnataka at 73, Chandigarh at 71 and Goa at 65.
    3. Movement against the 2024 index: Delhi and Maharashtra held the top two positions, Karnataka moved to third by overtaking Chandigarh, and Goa climbed ten places to fifth.
    4. The largest single gain: Madhya Pradesh moved from twenty third rank to seventh.

    How have the large States performed?

    1. Only two in the top tier: Maharashtra and Karnataka are the only large States among the top performers, out of seventeen large States assessed.
    2. The frontrunner band: Eight large States scored between 50 and 64, namely Tamil Nadu, Madhya Pradesh, Odisha, Andhra Pradesh, Telangana, Haryana, Rajasthan and Uttar Pradesh.
    3. The emerging band: Seven large States scored between 35 and 49, namely Chhattisgarh, West Bengal, Bihar, Kerala, Jharkhand, Punjab and Gujarat.
    4. What the distribution implies: The States carrying the largest vehicle populations sit in the middle bands, so national electrification outcomes are decided where the index scores are weakest.

    Where do the three themes diverge?

    1. Transport electrification, the heaviest theme: Delhi, Chandigarh and Maharashtra were the only territories qualifying as top performers on it. It evaluates market absorption, consumer acceptance and demand side momentum, meaning how effectively electric vehicles are actually being adopted.
    2. Charging readiness has a different leader: Karnataka recorded the highest score nationwide at 97, followed by Goa at 92 and Maharashtra at 91.
    3. What charging readiness captures: The charger to vehicle ratio, subsidies for charging infrastructure, building bye laws for charging, and power availability.
    4. Research and innovation: Delhi achieved the top score of 94 on this theme.
    5. The divergence matters: A State can lead on chargers and trail on adoption, since infrastructure readiness is scored independently of vehicles actually registered.

    Challenges to State led electric mobility

    1. Distribution company capacity: Charging load falls on distribution utilities already carrying losses, so sanctioned load and feeder capacity cap how fast chargers can be added. Eg. Several State distribution companies carry aggregate technical and commercial losses above 20%.
      The Fix: Ring fence a concessional EV charging tariff and fund feeder upgrades from the State electric mobility policy corpus.
    2. Subsidy dependence: Registrations track State and central purchase incentives and fall when a scheme window narrows. Eg. Electric two wheeler sales dipped after the FAME II demand incentive was reduced in mid 2023.
      The Fix: Shift from an upfront purchase subsidy to a road tax and registration fee waiver that runs for the life of the vehicle.
    3. Geographic concentration of chargers: Chargers cluster in a few metropolitan pockets, leaving intercity corridors and smaller towns unserved. Eg. The index’s leading territories are small and dense, where covering the whole jurisdiction is far easier than across a large State.
      The Fix: Make charging points at fixed intervals a condition of national and State highway concession agreements.
    4. Battery supply and end of life handling: Cells and the lithium, cobalt and nickel behind them are largely imported, and recycling capacity remains thin. Eg. India imports the overwhelming share of the lithium ion cells it consumes.
      The Fix: Enforce the recycling and extended producer responsibility targets under the Battery Waste Management Rules, 2022 alongside domestic cell manufacturing incentives.
    5. Generation mix limits the climate gain: An electric vehicle’s emissions follow the electricity that charges it, so the benefit shrinks where coal dominates supply. Eg. Coal still supplies close to three quarters of India’s electricity generation.
      The Fix: Align charging tariffs to time of day slots that coincide with solar generation hours.

    Conclusion

    The index measures readiness, and readiness is not the same as transition. Its top ranks are held by territories small enough for a single administration to cover with chargers and incentives, which is not the problem a large State faces. The unresolved tension is that the States with the most vehicles to convert have the least fiscal room to subsidise the conversion and the weakest distribution utilities to power it. Watch whether the next edition shows movement in the frontrunner band of large States, because that band is where the national outcome is actually decided.

    Back2Basics

    1. World Resources Institute India: An independent research organisation working on climate, energy, cities, water and sustainable mobility, operating as the India arm of a global research body.
    2. Role here: It provided the research collaboration for the composite index, including the indicator design behind the three themes.
    3. Urban mobility work: It supports Indian cities on bus transport planning, road safety and electric mobility transition programmes.

    Matching Previous Year Question

    “The adoption of electric vehicles is rapidly growing worldwide. How do electric vehicles contribute to reducing carbon emissions and what are the key benefits they offer compared to traditional combustion engine vehicles?”