Archives: News

Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.

PM inaugurates ‘One Nation, One Fertilizer’ Scheme

| Agriculture | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
Prime Minister has inaugurated 600 Kisan Samridhi Kendras and ‘One Nation, One Fertilizer’ scheme and said that these steps were being taken to modernise agriculture.

One Nation One Fertilizer (ONOF)
- The single brand name for UREA, DAP, MOP and NPK etc. would be BHARAT UREA, BHARAT DAP, BHARAT MOP and BHARAT NPK etc. respectively for all Fertilizer Companies, State Trading Entities (STEs) and Fertilizer Marketing Entities (FMEs).
- Also a logo indicating Fertilizer subsidy scheme namely Pradhanmantri Bhartiya Janurvarak Pariyojna will be used on said Fertilizer bags.
- Under the scheme, companies are allowed to display their name, brand, logo and other relevant product information only on one-third space of their bags.
- On the remaining two-thirds space, the “Bharat” brand and Pradhanmantri Bharatiya Jan Urvarak Pariyojana logo will have to be shown.
What is the government’s argument for introducing this scheme?

The government’s logic for introducing a single ‘Bharat’ brand for all subsidised Fertilizers being marketed by companies is as follows:

(1) Subsidies normalization
- The maximum retail price of urea is currently fixed by the government, which compensates companies for the higher cost of manufacturing or imports incurred by them.
- The MRPs of non-urea Fertilizers are, on paper, decontrolled.
- But companies cannot avail of subsidy if they sell at MRPs higher than that informally indicated by the government.
- Simply put, there are some 26 Fertilizers (inclusive of urea), on which government bears subsidy and also effectively decides the MRPs;
(2) Harmonizing markets
- Apart from subsidising and deciding at what price companies can sell, the government also decides where they can sell.
- This is done through the Fertilizer (Movement) Control Order, 1973.
- Under this, the department of Fertilizers draws an agreed monthly supply plan on all subsidised Fertilizers in consultation with manufacturers and importers.
- This supply plan is issued before the 25th of each month for the following month, with the department also regularly monitoring movement to ensure Fertilizer availability as per requirement, including remote areas.
(3) Farmers welfare
- The government is spending vast sums of money on Fertilizer subsidy (the bill is likely to cross Rs 200,000 crore in 2022-23).
- By deciding where and at what price companies can sell, it would obviously want to take credit and send that message to farmers.
What can be the drawbacks of the scheme?
- It may disincentivize Fertilizer companies from undertaking marketing and brand promotion activities.
- They will now be reduced to contract manufacturers and importers for the government. Any company’s strength ultimately is its brands and farmer trust built over decades.
- Currently, in case of any bag or batch of Fertilizers not meeting the required standards, the blame is put on the company. But now, that may be passed on fully to the government.
- Politically, the scheme might well boomerang rather than benefit the ruling party.
Challenges in the fertilizer sector
- Distortion in use due to price difference: In 2019-20, fertilizer use per hectare of cultivated area varied from 70 kg of NPK in Rajasthan to 250 kg in Telangana
- Shift in the composition of fertilizer used:The high price differences among fertilizers (Nitrogen is much cheaper than Potassium and Phosphorus) have disturbed the relative prices of various fertilizers and resulted in a big shift in the composition of fertilizers used in the country in favor of urea and thus Nitrogen.
- Increasing fertilizer subsidy: Fertilizer subsidy has doubled in a short period of three years. For 2021-22, the Union Budget has estimated fertilizer subsidy at ₹79,530 crores (from ₹66,468 crores in 2017-18).
- Burden on exchequer: Taxpayers bear 78% of the cost of urea and farmers pay only 22%. This is expected to increase and is not sustainable.
- Sensitive to Global impacts: The subsidy is likely to reach a much higher level due to the recent upsurge in the prices of energy,the international prices of urea and other fertilizers, and India’s dependence on imports.
- Import dependence: The total demand for urea in the country is about 34-35 million tonnes whereas the domestic production is about 25 million tonnes.
Other issues
- Lesser expansion of Irrigation facilities and consequent low fertilizer consumption leads to low demand and therefore, restricts the growth of the industry.
- Use of Obsolete Technology: Most of the fertilizer industry operates under PSUs that are using decade-old technology and thus making huge losses and also the competitive edge.
Way forward
- India should pay attention to improving fertilizer efficiency through need-based use rather than broadcasting fertilizer in the field.
- The use of bio-fertilizers is necessary to maintain soil health as more and more use of chemical fertilizers kills all the microorganisms available in the soil, which are so essential for maintaining soil health.
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Air Pollution

What are Green Crackers?

Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia
Many states have outlawed firecrackers and mandated the production, sale, and usage of only green firecrackers in light of Diwali’s impending arrival and the air pollution crisis.

What are green crackers?
- Green Crackers are fireworks that are healthy to the environment and can lessen the air pollution that conventional firecrackers produce.
- The Council for Scientific and Industrial Research (CSIR) created these.
- These green crackers, designed by the National Environmental and Engineering Research Institute (NEERI), a CSIR lab, contain flower pots, pencils, fireworks, maroons, bombs, and chakkar.
How are they made?
- Green crackers, also known as eco-friendly crackers, are made from alternative raw materials to have a smaller negative impact on the environment and to pose fewer health hazards.
- It has been stated that green crackers are environmentally friendly because they don’t contain aluminum, barium, potassium nitrate, or carbon.
Are they totally pollution free?
- Green crackers are 30% less polluting than regular ones.
- Green crackers have less or no barium, and that the chemical barium nitrate is what causes the smoke and emissions.
- In addition to lowering air pollution, green crackers are said to have a lower sound level than the ordinary crackers—between 110 and 125 decibels as opposed to roughly 160 decibels for conventional crackers.
- Despite all of their benefits, these environmentally friendly firecrackers are more expensive than standard ones.
Types of green crackers

(1) SWAS – Safe Water Releaser
- They will discharge water vapour into the atmosphere, which will dampen the discharged dust.
- It won’t contain sulphur or potassium nitrate.
- There will be a release of a diluent for gaseous emissions.
- There will be a 30% reduction in the amount of particle dust emitted.
(2) STAR – Safe Thermite Cracker
- Does not contain sulphur and potassium nitrate
- Discharge of less particulate matter
- Lowered noise level
(3) SAFAL – Safe Minimal Aluminum
- Does not contain sulphur and potassium nitrate
- Discharge of less particulate matter
- Lowered noise level as compared to traditional ones
Judicial observation over fire-crackers
- It is made clear that there is no total ban on the use of firecrackers.
- Only those firecrackers are banned (joined, chemical) which are found to be injurious to health and affect the health of the citizens particularly the senior citizens and the children.
What are the traders’ concerns?
- Traders have expressed concerns about the crackers’ shelf life due to the new green cracker composition.
- Manufacturers also need to overcome the rigorous certification process run by the Petroleum and Explosives Safety Organisation (PESO).
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Innovations in Biotechnology and Medical Sciences

Dr. Mahalanabis: the man behind ORS no more

Prelims Only | Science Tech | Mains Paper 3: Achievements Of Indians In S&T
While Oral Rehydration Solution (ORS) as a simple, effective remedy for dehydration is known around the world, the physician who pioneered the treatment, Dr. Dilip Mahalanabis, passed away.

What is ORS?
- Oral rehydration therapy is a type of fluid replacement used to prevent and treat dehydration, especially due to diarrhea.
- It involves drinking water with modest amounts of sugar and salts, specifically sodium and potassium.
- Oral rehydration therapy can also be given by a nasogastric tube.
About Dr. Mahalanabis
- Born on November 12, 1934 in West Bengal, Dr Mahalanabis studied in Kolkata and London.
- He joined the Johns Hopkins University International Centre for Medical Research and Training in Kolkata in the 1960s, where he carried out research in oral rehydration therapy.
- When the 1971 war broke out, millions of people from then East Pakistan took refuge in India.
- Clean drinking water and sanitation were problems at these refugee camps, and cholera and diarrhoea broke out among people anyway exhausted and dehydrated.
- Dr Mahalanabis and his team were working in one such camp at Bongaon.
- Stocks of intravenous fluids were running out, on top of which there weren’t enough trained personnel to administer the IV treatment.
How he discovered ORS?
- From his research, Dr Mahalanabis knew that a solution of sugar and salt, which would increase water absorption by the body, could save lives from Cholera.
- He and his team then prepared solutions of salt and glucose in water and began storing them in large drums, from where patients or their relatives could help themselves.
- The oral solution then consisted of 22 gm glucose (as commercial monohydrate), 3.5 gm sodium chloride (as table salt) and 2.5 gm sodium bicarbonate (as baking soda) per liter of water.
- This was the simplest formula, containing the minimum number of ingredients, previously found to be effective in severely ill patients with cholera.
His legacy
- While initially, the medical fraternity was septical, the WHO eventually adopted ORS as the standard method for treating cholera and other diarrhoeal diseases.
- Today, the WHO recommends a combination of sodium chloride, anhydrous glucose, potassium chloride and Trisodium citrate dihydrate as the ORS formula.
- In India, July 29 is observed as ORS Day.
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Hunger and Nutrition Issues – GHI, GNI, etc.

Reality Check on India’s Hunger Index Rank

op-ed snap | Governance | Mains Paper 2: Poverty & Hunger
Context
- For the second time in two years, the Ministry of Women and Child Development rejected the Global Hunger Index (GHI) that ranked India 107 among 121 countries. India was accorded a score of 29.1 out of 100 (with 0 representing no hunger), placing it behind Sri Lanka (66), Myanmar (71), Nepal (81) and Bangladesh (84). It referred to the index as “an erroneous measure of hunger”.
All you need to know about Global Hunger Index
- Annual report: The GHI is a peer reviewed annual report that endeavours to “comprehensively measure and track hunger at the global, regional, and country levels”. Authors of the report primarily refer to the United Nations’ Sustainable Development Goal 2(SDG 2) that endeavours to achieve ‘Zero Hunger’ by 2030.
- Four Indicators: According to them, the report attempts to “raise awareness and understanding of the struggle against hunger”. The GHI score is computed using four broad indicators under nourishment (measure of the proportion of the population facing chronic deficiency of dietary energy intake), child stunting (low height for age), child wasting (low weight for height) and child mortality (death of a child under the age of five).
Why these four Indicators are considered?
- To acknowledge undernourishment: As per the authors, it provides a basis to measure inadequate access to food and is among the lead indicators for international hunger targets, including the UN SDG 2. Child stunting and mortality, offers perspective about the child’s vulnerability to nutritional deficiencies, access to food and quality of nutrition.
- To address urgent requirement of nutrition: Since children (especially below five) are at a developmental age there is a greater and urgent requirement for nutrition with results particularly visible. This forms the basis of assessing nutritional requirement among children. Adults are at a sustainable age they are not growing but rather subsisting on nutrition for healthy survival. And lastly, on the same rationale, child mortality indicates the serious consequences of hunger.
- Uses data provided by Government: It explains that while FAO uses a suite of indicators on food security, including two important indicators — prevalence of undernourishment and prevalence of moderate or severe food insecurity. The GHI only uses the data obtained through food balance sheets based on data reported by member countries, including India.
- Shows a picture of food supply chain: A food balance sheet provides a comprehensive picture of the pattern of a country’s food supply during a specified reference period. It lists down the source of the supply and its utilisation specific to each food category.
- Takes into account three child specific indicators: On why the GHI uses three child specific indicators out of the four to calculate hunger for a country’s population, the website explains, By combining the proportion of undernourished in the population(1/3 of the GHI score) with the indicators relating to children under age five (2/3of the GHI score), the GHI ensures that both the food supply situation of the population as a whole and the effects of inadequate nutrition within a vulnerable subset of the population are captured.
- International recognition: A Senior Policy Officer at the GHI said that, “All four indicators used in the calculation of the global hunger are recognised by the international community, including India, and used for measuring progress towards the UN SDGs.”
What are the Objections of Government of India?
- Very small sample size of the Index: As per the Ministry for Women and Child Development, the report lowers India’s rank based on the estimates of the Proportion of Undernourished (PoU) population. It elaborates that the U.S. Food and Agriculture Organisation (FAO) estimate is based on the ‘Food Insecurity Experience Scale (FIES)’ survey module conducted using the Gallup World Poll that bears a sample size of 3,000 respondents being asked eight questions. It stated that the data represented a miniscule proportion for account of India’s size.
- Counter assertion by India’s dietary supply is increasing: It countered the assertions in the report pointing to India’s per capita dietary energy supply increasing year on year due to enhanced production of major agricultural commodities in the country over the years.
- Index doesn’t reflect the actual ground reality: According to the Ministry, the report is not only disconnected from ground reality but also chooses to ignore the food security efforts of the Central government especially during the pandemic.
- Efficient PMGKAY: The Union Cabinet through the Pradhan Mantri Garib KalyanAnn Yojana (PMGKAY) provisioned an additional 5 kg ration per person each month in addition to their normal quota of food grains.
What are the Government efforts to address the hunger issue so far?
- The Midday Meal Scheme: The Midday meal is a school meal programme in India designed to better the nutritional standing of school-age children nationwide.
- The programme supplies free lunches on working days for children in primary and upper primary classes in government, government aided, local body, Education Guarantee Scheme, and alternate innovative education centres, Madrasa supported under Sarva Shiksha Abhiyan, and National Child Labour Project schools run by the ministry of labour.
- Serving 120 million children in over 1.27 million schools and Education Guarantee Scheme centres, the Midday Meal Scheme is the largest of its kind in the world.
- PM-POSHAN: The name of the scheme has been changed to PM-POSHAN (Pradhan Mantri Poshan Shakti Nirman) Scheme, in September 2021, by MoE (Ministry of Education), which is nodal ministry for the scheme.
- The Central Government also announced that an additional 24 lakh students receiving pre-primary education at government & government-aided schools would also be included under the scheme by 2022.
Conclusion
- No country becomes great by dwarfing its people. India has certainly improved its poverty and hunger problems but there is still lot of ground yet to cover. Global hunger index may have exaggerated the India’s hunger issue but hunger problem in India is real if not substantial.
Mains Question

Q.Explain the methodology used by global hunger index report and India’s objection to it. What are the initiatives of government to reduce the hunger problem in India?

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Food Procurement and Distribution – PDS & NFSA, Shanta Kumar Committee, FCI restructuring, Buffer stock, etc.

Food Security, Success Story and Challenges Ahead

op-ed snap | Governance | Mains Paper 3: Inclusive Growth & Issues,PDS, Buffer Stock & Food Security
Context
- The Hunger Hotspots Outlook (2022-23) a report by the Food and Agriculture Organization of the United Nations (FAO) and the World Food Programme (WFP) forebodes escalating hunger, as over 205 million people across 45 countries will need emergency food assistance to survive. 16 October is celebrated as World Food Day.
What is the current situation of Food security worldwide?
- Adverse impact of COVID 19 pandemic: Globally, food and nutrition security continue to be undermined by the impacts of the COVID 19 pandemic, climate change, spiralling food inflation, conflict, and inequality.
- Challenge of Severe hunger continues: Today, around 828 million people worldwide do not have enough to eat, and over 50 million people are facing severe hunger.
What are the challenges for ensuring food security?
- The challenge of Climate change: Recent climate shocks have raised concerns about India’s wheat and rice production over the next year. Therefore, it is important to place a greater focus on climate adaptation and resilience building.
- Rising population will need more resource: By 2030, India’s population is expected to rise to 1.5 billion. Agro food systems will need to provide for and sustainably support an increasing population.
- The challenge of Soil degradation: Nutrition and agricultural production are not only impacted by climate change but also linked to environmental sustainability. Soil degradation by the excessive use of chemicals, non-judicious water use, and declining nutritional value of food products need urgent attention.
How India managed its food security?
- Constant efforts towards Self-sufficiency: India has had an inspiring journey towards better production and achieving self-sufficiency and is now one of the largest agricultural product exporters. During 2021-22,it recorded $49.6billion in total agriculture exports a 20%increase from 2020-21.
- Efficient targeted public distribution system: One of India’s greatest contributions to equity in food is its National Food Security Act (NFSA)2013 which anchors the Targeted Public Distribution System (TPDS), the PM POSHAN scheme (earlier known as the Midday Meals scheme), and the Integrated Child Development Services (ICDS).
- Extensive food safety net: Today, India’s food safety nets collectively reach over a billion people. The WFP works with State and national governments to strengthen these systems to reach the people who need them most.
- Large scale digitization of programmes: The Government continues to take various measures to improve these programmes with digitisation and measures such as rice fortification, better health, and sanitation.
- Better buffer stock policy: Food safety nets and inclusion are linked with public procurement and buffer stock policy visible during the global food crisis (2008-12)and the COVID19 pandemic fallout, whereby vulnerable and marginalised families in India continued to be buffered by the TPDS which became a lifeline.
- Successful implementation of PMGKAY: An International Monetary Fund paper titled ‘Pandemic, Poverty, and Inequality: Evidence from India’ asserted that‘ extreme poverty was maintained below 1% in 2020 due to the Pradhan Mantri Garib KalyanAnna Yojana (PMGKAY
How India and World can manage food security?
- Avoiding conventional input intensive agriculture: There is increased recognition to move away from conventional input intensive agriculture towards more inclusive, effective and sustainable agro food systems that would facilitate better production.
- Promoting sustainable practices: Since 1948, the FAO has continued to play a catalytic role in India’s progress in the areas of crops, livestock, fisheries, food security, and management of natural resources through the promotion of sustainable practices.
- Focus on millets: Millets have received renewed attention as crops that are good for nutrition, health, and the planet. As climate-smart crops, they are hardier than other cereals. Since they need fewer inputs, they are less extractive for the soil and can revive soil health.
- India’s Efforts as an example: India has led the global conversation on reviving millet production for better lives, nutrition, and the environment, including at the UN General Assembly, where it appealed to declare 2023 as the International Year of Millets. It is the world’s leading producer of millets, producing around 41% of total production in2020. The national government is also implementing a Sub-Mission on Nutrition-Cereals (Millets) as part of the National Food Security Mission.
- G20 presidency an opportunity for India: India’s upcoming G20 presidency is an opportunity to bring food and nutrition security to the very centre of a resilient and equitable future.
Conclusion
- India can lead the global discourse on food and nutrition security by showcasing home grown solutions and best practices, and championing the principle of leaving no one behind working continuously to make its food system more equitable, empowering, and inclusive.
Mains Question

Q.Food security has become increasingly challenging due to unpredictable weather conditions. Illustrate. How India can contribute to the global food security issue.

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Cyber Security – CERTs, Policy, etc

Making India’s Quantum Cyberspace resilient

op-ed snap | Science Tech | Mains Paper 3: Awareness in various sc and tech fields,Cyber Security
Context
- The Army has collaborated with industry and academia to build secure communications and cryptography applications. This step builds on last year’s initiative to establish a quantum computing laboratory at the military engineering institute in Mhow, Madhya Pradesh.
What is mean by quantum computing?
- Quantum computing is an area of study focused on the development of computer based technologies centered around the principles of quantum theory.
- Quantum computing studies computation systems that make direct use of quantum-mechanical phenomena to perform operations on data.
- Classical computers encode information in bits. Each bit can take the value of 1 or 0. These 1s and 0s act as on/off switches that ultimately drive computer functions.
What is quantum Theory?
- Quantum theory explains the nature and behavior of energy and matter on the quantum (atomic and subatomic) level. Quantum theory is the theoretical basis of modern physics.
- The nature and behavior of matter and energy at that level is sometimes referred to as quantum physics and quantum mechanics.
What is quantum computing laboratory that the Army has set up?
- Two research centres: The Army has set up a quantum computing laboratory and a centre for artificial intelligence (AI) at a military engineering institute in Madhya Pradesh. The Army will get support from National Security Council Secretariat (NSCS).
- Purpose of the quantum lab: To spearhead research and training in this key developing field. It said the Indian Army is making steady and significant strides in the field of emerging technologies
- To Train personnel on the cyber warfare: Training on cyber warfare is being imparted through a state of the art cyber range and cyber security labs.
- The Focus areas: Key thrust areas are quantum key distribution, quantum communication and quantum computing, among others.
What is the rationale behind this development?
- To provide facility centre for extensive and dedicated research: The two centres will carry out extensive research in developing transformative technologies for use by the armed forces.
- To transform the current system of cryptography: Research undertaken by the Army in the field of quantum technology will help it leapfrog into the next generation of communication and transform the current system of cryptography to post-quantum cryptography.
- Developing quantum resistant systems: With traditional encryption models at risk and increasing military applications of quantum technology, the deployment of quantum-resistant systems has become the need of the hour.
- Vulnerable existing digital infrastructure: There is a need of upgrading current encryption standards that can be broken by quantum cryptography. Current protocols like the RSA will quickly become outdated. This means that quantum cyber attacks can potentially breach any hardened target, opening a significant vulnerability for existing digital infrastructure. Hack proofing these systems will require considerable investments.
- To be in a League of nations in this sector: For example US: National Quantum Initiative Act has already allocated $1.2 billion for research in defence related quantum technology. China now hosts two of the world’s fastest quantum computers.
India’s developments in this sector so far?
- National Mission on Quantum Technologies and Applications: In 2019, the Centre declared quantum technology a “mission of national importance”. The Union Budget 2020-21 had proposed to spend Rs 8,000 crore on the newly launched National Mission on Quantum Technologies and Applications.
- Successfully demonstrated a Quantum key Distribution (QKD) link: In February 2022, a joint team of the Defence Research and Development Organization and IIT Delhi successfully demonstrated a QKD link between two cities in UP Prayagraj and Vindhyachal located 100 kilometres apart.
What are the challenges facing India?
- Current capabilities are not sufficient: Currently, India has very few capabilities in developing advanced systems capable of withstanding quantum cyber attacks.
- The china challenge: China’s quantum advances expand the spectre of quantum cyber attacks against India’s digital infrastructure, which already faces a barrage of attacks from Chinese state-sponsored hackers.
- Dependence on Foreign hardware: India is heavily dependent on foreign hardware, particularly Chinese hardware, is an additional vulnerability.
How India can make its cyberspace resilient?
- Procuring quantum resistant mechanism from US: India must consider procuring the United States National Security Agency’s (NSA) Suite B Cryptography Quantum-Resistant Suite as its official encryption mechanism. The NSA is developing new algorithms for their cypher suite that are resistant to quantum cyber attacks. This can then facilitate India’s official transition to quantum-resistant algorithms.
- Enhancing cryptographic standards: The Indian Defence establishment can consider emulating the cryptographic standards set by the US’s National Institute of Standards and Technology (NIST) which has developed a series of encryption tools to handle quantum computer attacks. It has developed a series of four algorithms to frame a post-quantum cryptographic standard.
- Diplomatic partnerships in this sector: Diplomatic partnerships with other techno-democracies countries with top technology sectors, advanced economies, and a commitment to liberal democracy can help India pool resources and mitigate emerging quantum cyber threats.
- Active participation in global avenues: Active participation in the Open Quantum Safe project a global initiative started in 2016 for prototyping and integrating quantum-resistant cryptographic algorithms.
- Providing funds and encouragement: India must start its national initiatives to develop quantum-resistant systems. For this, the government can fund and encourage existing open-source projects related to post-quantum cryptography.
- Start implementing the capabilities: The country should start implementing and developing capabilities in quantum-resistant communications, specifically for critical strategic sectors. QKDs over long distances, especially connecting military outposts for sensitive communications, can be prioritised to ensure secure communications whilst protecting key intelligence from potential quantum cyber attacks.
- Establishing nationwide network: Establish a nationwide communication network integrated with quantum cryptographic systems, thereby protecting cyberspace from any cross-border quantum cyber offensive.
Conclusion
- The world is moving towards an era in which the applications of quantum physics in strategic domains will soon become a reality, increasing cyber security risks. India is getting there slowly but steadily. India needs a holistic approach to tackle these challenges. At the heart of this approach should be the focus on post-quantum cyber security.
Mains Question

Q.The world is moving towards an era in which applications of quantum physics in strategic domains will soon become a reality, increasing cyber security threats. In this context, what steps can India take to make its cyberspace resilient and quantum-resistant? Discuss.

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RBI Notifications

What are Digital Banking Units (DBUs)?

| Economics | Mains Paper 3: Effects Of Liberalization On The Economy, Changes In Industrial Policy and their effects on Industrial Growth
PM has dedicated 75 digital banking units to the nation, taking forward an announcement that was made in the 2022-23 Union Budget.

What are DBUs?
- A digital banking unit is a specialized fixed point business unit or hub, housing a certain minimum digital infrastructure for delivering digital banking products and services.
- It aims at servicing existing financial products and services digitally in self-service mode at any time.
- The RBI has announced the guidelines for DBUs, following the report of a working group of the Indian Banks Association (IBA).
Who can set up these DBUs?
- Commercial banks (other than regional rural banks, payment banks and local area banks) with past digital banking experience are permitted to open DBUs in tier 1 to tier 6 centres.
- They are permitted, unless otherwise specifically restricted, without having the need to take permission from the RBI in each case.
What services will be provided by these units?
- As per the RBI, each DBU must offer certain minimum digital banking products and services.
- Such products should be on both liabilities and assets side of the balance sheet of the digital banking segment.
- Digitally value-added services to conventional products would also qualify as such.
- The services include saving bank accounts under various schemes, current accounts, fixed deposit and recurring deposit accounts, digital kits for customers, mobile banking etc.
- It also includes- Internet banking, debit cards, credit cards, and mass transit system cards, digital kits for merchants, UPI QR codes, BHIM Aadhaar and point of sale (PoS).
What about lending services?
- Other services include making applications for and onboarding customers for identified retail, MSME or schematic loans.
- This may also include end-to-end digital processing of such loans, starting from online application to disbursal and identified government-sponsored schemes that are covered under the national portal.
How will these DBUs compete with fintechs?
- Currently, fintechs operating as neobanks offer digital banking services but they do so in partnership with non-banking financial companies (NBFCs).
- Some of the neobanks offering services in India are Jupiter, Fi Money, Niyo, Razorpay X.
- Compared to conventional banks with online and mobile banking facilities, neobanks or digital banks excel at product innovation and offer far better digital solutions.
- However, given the arrangement they, some in the industry have pegged these digital banks as “glorified digital distribution companies”.
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Foreign Policy Watch: India-China

What is China’s ‘Wolf Warrior’ Diplomacy?

| International Relations | Mains Paper 2: India & Its Neighborhood – Relations
Chinese President Xi Jinping will get an endorsement for a third term as President. His “wolf warrior” style of diplomacy has particularly attracted attention.

What does Wolf Warrior’ Diplomacy mean?
- A term that gained popularity, especially after Xi became President, “wolf warrior diplomacy” is a tactic for the Chinese government to extend its ideology beyond China and counter the West and defend itself.
- It is an unofficial term for the more aggressive and confrontational style of communication that Chinese diplomats have taken to in the last decade.
- A 2015 Chinese action film, titled ‘Wolf Warrior’, and its sequel have served as the inspiration for the term.
- The films, with their nationalist themes and dialogues, focus on Chinese fighters who frequently face off against Western mercenaries.
Do you know?

Panchasheel also called the Five Principles of Peaceful Co-existence was signed on 29p April 1954 and since then it has become a guiding principle of India’s bilateral relations with other countries.

Why China resorts to such diplomacy?

The change in strategy has been attributed to many reasons, such as:
1. Xi’s more authoritarian tendencies as compared to earlier leaders
2. Deteriorating US-China relations under former US President Donald Trump and
3. Coronavirus pandemic-related accusations on China, etc.
What does this look like in practice?
- Some examples can be seen in the form of messaging on social media too, where Chinese officials are quick to counter any allegations by the West and proactively launch attacks.
- For instance, in 2021 Chinese government spokesperson Lijian Zhao tweeted a digitally morphed photo of an Australian soldier killing a child, claiming the Australian army was killing children in Afghanistan.
- This led the Australian Prime Minister to announce he would seek an official apology, but China did not budge.
- But this is not limited to Western countries.
Indian experience
- The new ‘wolf warrior diplomacy’ confronts head-on any criticism of China in the public sphere.
- They lecture host governments and don’t always show up when ‘summoned’ by foreign offices.
- Delhi has been at the receiving end for a while — especially during the recent crises of Doklam and Ladakh.
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Oil and Gas Sector – HELP, Open Acreage Policy, etc.

Tax on windfall profit on crude oil, export of diesel, ATF raised

| Economics | Mains Paper 3: Indian Economy
The government raised the windfall tax on domestically-produced crude oil by more than a third while doubling the rate on export of diesel and reintroducing the levy on export of jet fuel (ATF) in line with the rise in international oil prices.

What is a Windfall Tax?
- Windfall taxes are designed to tax the profits a company derives from an external, sometimes unprecedented event — for instance, the energy price-rise as a result of the Russia-Ukraine conflict.
- These are profits that cannot be attributed to something the firm actively did, like an investment strategy or an expansion of business.
- The US Congressional Research Service (CRS) defines a windfall as an “unearned, unanticipated gain in income through no additional effort or expense”.
- One area where such taxes have routinely been discussed is oil markets, where price fluctuation leads to volatile or erratic profits for the industry.
When did India introduce this?
- In July this year, India announced a windfall tax on domestic crude oil producers who it believed were reaping the benefits of the high oil prices.
- It also imposed an additional excise levy on diesel, petrol and air turbine fuel (ATF) exports.
- Also, India’s case was different from other countries, as it was still importing discounted Russian oil.
How is it levied?
- Governments typically levy this as a one-off tax retrospectively over and above the normal rates of tax.
- The Central government has introduced a windfall profit tax of ₹23,250 per tonne on domestic crude oil production, which was subsequently revised fortnightly four times so far.
- The latest revision was on August 31, when it was hiked to ₹13,300 per tonne from ₹13,000.
Why govt. introduced windfall tax?
- There have been varying rationales for governments worldwide to introduce windfall taxes like:
1. Redistribution of unexpected gains when high prices benefit producers at the expense of consumers,
2. Funding social welfare schemes, and
3. Supplementary revenue stream for the government
Why are countries levying windfall taxes now?
- Prices of oil, gas, and coal have seen sharp increases since last year and in the first two quarters of the current year, although they have reduced recently.
- Pandemic recovery and supply issues resulting from the Russia-Ukraine conflict shored up energy demands, which in turn have driven up global prices.
- The rising prices meant huge and record profits for energy companies while resulting in hefty gas and electricity bills for households in major and smaller economies.
- Since the gains stemmed partly from external change, multiple analysts have called them windfall profits.
Issues with imposing such taxes
- Companies are confident in investing in a sector if there is certainty and stability in a tax regime.
- Since windfall taxes are imposed retrospectively and are often influenced by unexpected events, they can brew uncertainty in the market about future taxes.
- IMF says that taxes in response to price surges may suffer from design problems—given their expedient and political nature.
- It added that introducing a temporary windfall profit tax reduces future investment because prospective investors will internalise the likelihood of potential taxes when making investment decisions.
- There is another argument about what exactly constitutes true windfall profits; how can it be determined and what level of profit is normal or excessive.
- Another issue is who should be taxed — only the big companies responsible for the bulk of high-priced sales or smaller companies as well— raising the question of whether producers with revenues or profits below a certain threshold should be exempt.
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Indian Navy Updates

SLBM launch by INS Arihant

Prelims Only | Security Issues | Mains Paper 3: Various Security Forces, Agencies & Their Mandates
The indigenous ballistic missile nuclear submarine INS Arihant has successfully launched a nuclear capable Submarine Launched Ballistic Missile (SLBM) in the Bay of Bengal with very high accuracy.

About INS Arihant
- Launched in 2009 and Commissioned in 2016, INS Arihant is India’s first indigenous nuclear powered ballistic missile.
- It is capable submarine built under the secretive Advanced Technology Vessel (ATV) project, which was initiated in the 1990s.
- INS Arihant and its class of submarines are classified as ‘SSBN’, which is the hull classification symbol for nuclear powered ballistic missile carrying submarines.
- While the Navy operates the vessel, the operations of the SLBMs from the SSBN are under the purview of India’s Strategic Forces Command, which is part of India’s Nuclear Command Authority.
Its role in India’s nuclear triad
- In November 2019, after INS Arihant completed its first deterrence patrol, the government announced the establishment of India’s “survivable nuclear triad”.
- It completed India’s capability of launching nuclear strikes from land, air and sea platforms.
- This places India in the league of the few countries that can design, construct and operate Strategic Strike Nuclear Submarines (SSBN).
Significance of the test
- The SLBM was launched from the country’s first indigenous Strategic Strike Nuclear Submarine INS Arihant.
- The test is significant for the nuclear ballistic submarine, or SSBN, programme, which is a crucial element of India’s nuclear deterrence capability.
Submarine Launched Ballistic Missiles (SLBMs)
- The SLBMs, sometimes called the ‘K’ family of missiles, have been indigenously developed by Defence Research and Development Organisation (DRDO).
- The family is codenamed after Dr APJ Abdul Kalam, the centre figure in India’s missile and space programmes who also served as the 11th President of India.
- Because these missiles are to be launched from submarines, they are lighter, more compact and stealthier than their land-based counterparts.
- They are lighter compared to the Agni series of missiles which are medium and intercontinental-range nuclear-capable ballistic assets.
Marine Version of SLBM: Sagarika
- Part of the K family is the SLBM K-15, which is also called B-05 or Sagarika.
- It has a range of 750 km.
- INS Arihant can carry a dozen K-15 missiles on board. India has also developed and successfully tested K-4 missiles from the family, which have a range of 3,500 km.
- It is also reported that more members of K-family — reportedly carrying the code names K-5 and K-6, with a range of 5,000 km and 6,000 km respectively — are under development.
Strategic significance of the launch
- The capability of being able to launch nuclear weapons submarine platforms has great strategic significance in the context of achieving a nuclear triad.
- This is especially in the light of the “No First Use” policy of India.
- The sea-based underwater nuclear capable assets significantly increases the second strike capability, and thus validates the nuclear deterrence.
- These submarines can not only survive a first strike by the adversary, but can also launch a strike in retaliation, thus achieving ‘Credible Nuclear Deterrence’.
Message to our hostile neighbours
- The development of these capabilities is important in the light of India’s relations with China and Pakistan.
- India’s capacity building on the nuclear powered submarines and of the nuclear capable missile which can be launched from them is crucial for nuclear deterrence.
- China has deployed many of its submarines, including some that are nuclear-powered and nuclear-capable.
Conclusion
- In an era such as this, credible nuclear deterrence is the need of the hour.
- The success of INS Arihant gives a fitting response to those who indulge in nuclear blackmail.
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