💥Join UPSC 2027,2028 Mentorship (July Batch) + XFactor Notes & Microthemes PDF

Search results for: “”

  • Centre scraps capital gains, interest tax on FII govt bond investments to pull foreign funds

    Why in the News?

    The Union Government promulgated the Income-tax (Amendment) Ordinance, 2026, which received President Droupadi Murmu’s assent on June 5, 2026. The ordinance completely exempts Foreign Institutional Investors (FIIs) from capital gains tax and withholding tax on interest income earned from Indian government securities, effective from April 1, 2026. The move seeks to attract large foreign debt inflows, address a projected $50-60 billion Balance of Payments (BoP) gap, and support rupee stability amid weak portfolio and FDI inflows.

    How Has The Tax Treatment Of Foreign Investors Changed?

    Previous Tax Regime

    1. Long-Term Capital Gains Tax (LTCG): FIIs paid 12.5% tax on gains from bonds held for more than 12 months.
    2. Short-Term Capital Gains Tax (STCG): FIIs paid 30% tax on short-term gains.
    3. Withholding Tax: Foreign investors paid nearly 20% tax on interest income from government bonds.
    4. Global Comparison: India’s withholding tax was among the highest globally after the concessional 5% rate expired in 2023.
    5. Gross Taxation: Non-resident investors paid withholding tax on gross interest income and could not offset losses against past gains.

    New Tax Regime

    1. Capital Gains Exemption: The government has completely scrapped both Long-Term Capital Gains (LTCG) and Short-Term Capital Gains (STCG) taxes on investments made by FIIs in government bonds.
    2. Interest Income Exemption: The government has also scrapped the withholding tax (Tax Deducted at Source) that FIIs were required to pay on their interest income derived from government debt instruments/bonds.
    3. Coverage: Applies to investments through the General Route and Fully Accessible Route (FAR).
    4. Effective Date: Changes become effective from April 1, 2026 following Presidential assent to the ordinance amending the Income Tax Act, 2025.
    5. Institutional Coverage: Benefits extend to FIIs and the Bank for International Settlements (BIS).

    Why Is India Seeking Greater Foreign Debt Inflows?

    1. Balance of Payments Pressure
      1. BoP Deficit: India may face a $50-60 billion BoP deficit in FY27.
      2. External Financing Need: Sustained capital inflows are necessary to finance the deficit without exerting pressure on foreign exchange reserves.
    2. Rupee Stability
      1. Exchange Rate Stress: The rupee had nearly breached the ₹97 per US dollar level recently.
      2. Recent Recovery: Rupee strengthened from ₹95.79/$ on Thursday to ₹94.94/$ on Friday.
      3. Currency Support: Higher debt inflows increase foreign exchange supply and support currency stability.
    3. Weak Portfolio and FDI Flows
      1. Equity Outflows: FPIs have withdrawn approximately $28 billion from Indian equities in FY26.
      2. FDI Moderation: Net FDI inflows have weakened, increasing reliance on alternative capital sources.

    How Large Could The Potential Foreign Inflows Be?

    1. Expected Debt Inflows
      1. Axis Bank Estimate: Tax exemptions could attract $45-50 billion into government debt markets over the next two years.
      2. BoP Gap Financing: Such inflows could bridge a major portion of the projected external financing requirement.
    2. Untapped Market Potential
      1. Current Holdings: FIIs hold only ₹3.75 lakh crore.
      2. Total Market Size: Government securities outstanding amount to ₹112.42 lakh crore.
      3. Foreign Share: Foreign participation remains limited at 3.34%.
    3. Global Investor Appeal
      1. Tax Neutrality: Aligns India more closely with major sovereign bond markets.
      2. Yield Attraction: Indian government bonds offer relatively attractive yields compared to many developed markets.

    What Additional Measures Have Been Taken To Liberalize Government Bond Investments?

    1. Expansion Of Fully Accessible Route (FAR) Securities
      1. Coverage Expansion: RBI is considering inclusion of all new issuances of 15-year, 30-year and 40-year government bonds under FAR.
      2. Accessibility: Ensures unrestricted foreign investment in a larger segment of sovereign debt.
    2. Removal Of Investment Restrictions
      1. Short-Term Investment Limits: Proposed removal of caps on short-duration investments.
      2. Concentration Limits: Removal of concentration restrictions on FII investments.
      3. Individual Security Limits: Greater flexibility for investors across government securities.
    3. Complementary RBI Measures
      1. Overseas Borrowing: RBI eased norms for state-owned enterprises to borrow abroad.
      2. Foreign Currency Deposits: Banks allowed greater mobilization of foreign currency deposits.
      3. Objective: Strengthens overall foreign capital inflow architecture.

    How Can Greater Debt Inflows Benefit The Indian Economy?

    1. External Sector Stability
      1. BoP Financing: Ensures financing of current account and capital account gaps.
      2. Reserve Protection: Reduces pressure on foreign exchange reserves.
    2. Rupee Appreciation
      1. Forex Supply: Higher inflows increase dollar availability.
      2. Exchange Rate Support: Reduces depreciation pressures on the rupee.
    3. Bond Market Development
      1. Market Depth: Broadens investor base in government securities.
      2. Liquidity: Enhances trading activity and price discovery.
    4. Lower Borrowing Costs
      1. Demand Expansion: Increased demand for government bonds may lower yields over time.
      2. Fiscal Benefit: Reduces government borrowing costs.
    5. Global Financial Integration
      1. Market Confidence: Signals policy commitment to capital market reforms.
      2. International Participation: Improves India’s standing in global bond markets.

    What Risks And Concerns Remain?

    1. Dependence On Portfolio Flows
      1. Volatility Risk: Debt inflows can reverse quickly during global financial stress.
      2. External Vulnerability: Excessive reliance on foreign capital may increase exposure to global shocks.
    2. Revenue Implications
      1. Tax Foregone: Government sacrifices tax revenues to attract foreign investment.
      2. Cost-Benefit Question: Actual inflows must justify revenue losses.
    3. Monetary Management Challenges
      1. Liquidity Effects: Large inflows may complicate liquidity and exchange-rate management.
      2. Sterilization Costs: RBI may need intervention to manage excess forex inflows.
    4. Structural Constraints
      1. Investment Decisions: Tax incentives alone may not overcome concerns relating to regulations, global risk appetite, and geopolitical uncertainties.

    Conclusion

    Amid global economic uncertainty and pressure on India’s external sector, the reform seeks to attract foreign capital, support the rupee, and deepen the sovereign debt market. It aligns with India’s broader aspiration of becoming a $5 trillion economy and a globally integrated financial powerhouse while ensuring macroeconomic stability.

    PYQ Relevance

    [UPSC 2016] Justify the need for FDI for the development of the Indian economy. Why is there a gap between MOUs signed and actual FDIs? Suggest remedial steps for increasing actual FDIs in India

    Linkage: The PYQ examines policy measures undertaken by the government to attract foreign capital and strengthen investment inflows. The reform uses tax incentives to attract foreign capital and deepen India’s debt market.

  • Can scheme to replace NCR’s old trucks and buses curb pollution

    Why in the News?

    The Union Cabinet has approved a two-year Clean Mobility Scheme aimed at replacing older trucks and buses in Delhi-NCR with BS-VI-compliant vehicles. The move is significant because heavy commercial vehicles constitute only a small fraction of the vehicle fleet but contribute disproportionately to particulate and nitrogen oxide emissions. 

    What is the Clean Mobility Scheme for Delhi-NCR?

    1. Approval: Approved by the Union Cabinet for a two-year period to reduce air pollution and promote clean mobility in Delhi-NCR.
    2. Objective: Accelerates replacement of BS-IV and older trucks and buses with BS-VI-compliant or electric vehicles (EVs).
    3. Funding Mechanism: Financed through the National Capital Region Planning Board (NCRPB) under the Ministry of Housing and Urban Affairs (MoHUA).
    4. Implementing Agencies: Implemented by the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Petroleum and Natural Gas (MoPNG) in collaboration with Delhi, Haryana, Rajasthan and Uttar Pradesh.
    5. Financial Outlay: Provides a total package of ₹9,585 crore, including ₹5,041 crore Central assistance and ₹1,601 crore estimated State tax concessions.
    6. Coverage: Targets nearly 2.07 lakh vehicle owners, including 1.91 lakh trucks and 16,329 buses across Delhi-NCR.
    7. Vehicle Replacement Norms: Mandates scrapping of BS-III and older vehicles at Registered Vehicle Scrapping Facilities; BS-IV vehicles may be scrapped or sold outside NCR in non-NCAP cities/towns.
    8. Delhi-Specific Provision: Requires electric Light Goods Vehicles (LGVs) and permits only BS-VI CNG or electric buses under the scheme.
    9. Exclusion: Government-owned vehicles are not eligible for scheme benefits.

    What Incentives Does the Scheme Provide?

    Central Government Support

    1. Interest Subvention: Provides 5% interest subsidy on vehicle loans for five years.
    2. Fuel Support: Provides monthly fuel vouchers of up to ₹4,800, depending on vehicle category.
    3. EV Incentives: Offers lump-sum benefits for electric vehicle purchases or Certificate of Deposit trading.

    State Government Support

    1. Registration Fee Waiver: Exempts eligible new vehicles from registration charges.
    2. Motor Vehicle Tax Relief: Provides up to 100% tax concession for new vehicles and 50% concession for used vehicles for 10 years.
    3. Liability Waiver: Waives pending liabilities on old vehicles participating in the scheme.

    Industry Support

    1. OEM Contribution: Participating automobile manufacturers provide 8% discount on ex-showroom prices.

    How Will the Scheme Be Implemented and Monitored?

    1. Digital Platform: Uses an integrated portal for real-time eligibility verification, automated claims processing and fuel voucher disbursement.
    2. Outcome Monitoring: Tracks pollution-reduction outcomes and scheme performance digitally.
    3. Long-Term Support: Central benefits continue for five years from registration of the new vehicle, extending beyond the two-year enrolment period.
    4. Empowered Committee: Monitored by a high-level committee chaired by the Cabinet Secretary, with representation from NITI Aayog, MoHUA, MoRTH, MoPNG, DFS and NCR States.
    5. District-Level Oversight: District Collectors/District Magistrates will supervise implementation and monitoring at the local level.

    Can the Replacement of Old Trucks and Buses Significantly Improve Delhi-NCR Air Quality?

    1. Disproportionate Emission Burden: Old trucks and buses contribute significantly higher emissions despite constituting a small share of the total fleet.
    2. PM2.5 Contribution: Trucks and buses account for 36% of transport-sector PM2.5 emissions, directly affecting respiratory and cardiovascular health.
    3. Cleaner Technology: BS-VI vehicles incorporate advanced emission-control systems, cleaner fuels and onboard diagnostic technologies.
    4. Emission Reduction Potential: Transition from older emission norms to BS-VI can substantially reduce NOx, PM and CO emissions.

    Why Are Heavy Commercial Vehicles a Major Pollution Challenge?

    1. Large Fleet Size: Delhi-NCR has approximately 2.98 crore registered vehicles.
    2. Rapid Growth: Vehicle numbers are increasing by nearly 7% annually.
    3. High Emission Intensity: A pre-BS heavy vehicle emits up to 14 times more pollution than a BS-VI vehicle.
    4. Legacy Fleet: Large numbers of trucks and buses continue operating under outdated emission standards.
    5. Ageing Vehicles: Emission performance deteriorates beyond regulatory life due to engine wear and weakening pollution-control systems.

    What Does the Evidence Say About Transport-Sector Pollution?

    1. Winter PM2.5 Share: Transport contributes around 23% of winter PM2.5 pollution in Delhi-NCR.
    2. Summer PM2.5 Share: Transport contributes around 19% of summer PM2.5 emissions.
    3. Carbon Monoxide Emissions: Transport accounts for nearly 40% of CO emissions.
    4. Nitrogen Oxide Emissions: Transport contributes around 63% of NOx emissions.
    5. Scientific Basis: Source-apportionment studies (2015–2019) identified transport as a major pollution source.
    6. Institutional Assessment: Studies were evaluated by panels constituted under the Commission for Air Quality Management (CAQM).

    How Much Cleaner Are BS-VI Vehicles?

    1. Advanced Standards: BS-VI represents India’s most stringent vehicular emission norm.
    2. Pollutant Control: Introduces tighter limits on NOx and particulate matter emissions.
    3. Fuel Quality Improvement: Operates with cleaner fuels containing 10 ppm sulphur content.
    4. Diagnostic Systems: Uses advanced on-board diagnostic (OBD) systems for emission monitoring.
    5. BS-IV Gap: BS-IV vehicles emit 2.7 times more pollution than comparable BS-VI vehicles.
    6. Technology Transition: Aligns Indian emission standards with advanced global regulatory practices.

    What Is the Current Composition of Delhi-NCR’s Commercial Vehicle Fleet?

    1. Goods Vehicles: Account for 4.1% (11.80 lakh) of Delhi-NCR’s 2.88 crore vehicle fleet.
    2. Bus Share: Buses constitute only 0.6% of the total vehicle fleet.
    3. BS-VI Buses: 34,449 buses are BS-VI compliant.
    4. Older Buses: 1,26,549 buses fall within the pre-BS to BS-IV categories.
    5. Pollution Concentration: A relatively small commercial fleet contributes disproportionately to emissions.

    Why Is Delhi-NCR Particularly Vulnerable to Air Pollution?

    1. Multiple Sources: Pollution arises from transport, dust, industrial emissions and biomass burning.
    2. Meteorological Factors: Weather conditions influence pollutant accumulation and dispersion.
    3. Regional Nature: Pollution originates from both local and regional sources.
    4. Winter Inversion: Seasonal atmospheric conditions trap pollutants closer to the ground.
    5. Population Exposure: High population density magnifies health impacts.

    What Are the Potential Benefits and Limitations of the Scheme?

    Benefits

    1. Emission Reduction: Accelerates removal of highly polluting vehicles.
    2. Fleet Modernisation: Promotes adoption of cleaner commercial transport.
    3. Health Gains: Reduces exposure to PM2.5 and NOx.
    4. Regulatory Compliance: Supports implementation of CAQM directives.
    5. Climate Co-benefits: Improves fuel efficiency and lowers emission intensity.

    Limitations

    1. High Replacement Cost: Fleet owners may face financial constraints.
    2. Enforcement Challenges: Effective scrappage and replacement monitoring remain critical.
    3. Partial Solution: Transport is only one component of Delhi-NCR’s pollution problem.
    4. Regional Coordination: Requires cooperation among multiple NCR states.

    Conclusion

    The Clean Mobility Scheme aligns with India’s commitment to achieve Net Zero by 2070, reduce the emissions intensity of GDP by 45% by 2030, and promote sustainable urban transport. By targeting a small fleet responsible for a disproportionately large share of vehicular pollution, the scheme can complement the National Clean Air Programme (NCAP) target of reducing particulate pollution in non-attainment cities while advancing SDG 3 (Good Health), SDG 11 (Sustainable Cities) and SDG 13 (Climate Action).

    PYQ Relevance

    [UPSC 2020] What are the key features of the National Clean Air Programme (NCAP) initiated by the Government of India?

    Linkage: The PYQ focuses on policy measures and institutional interventions for tackling air pollution in India. The Clean Mobility Scheme complements NCAP by targeting vehicular emissions, a major source of PM2.5 and NOx pollution in Delhi-NCR, through fleet modernisation and BS-VI transition.

  • 100 Years of Solar Data Reveal Clues About Sun’s Activity Cycle

    Why in News?

    Scientists from Indian Institute of Astrophysics used over 100 years of observations from Kodaikanal Solar Observatory to study how convection patterns on the Sun are linked to the 11-year solar activity cycle.

    Key Highlights

    • Study based on: More than 34,000 Ca II K solar images.
    • Published in: Astrophysical Journal Letters.
    • Researchers examined:
      • Lane widths
      • Intensities
      • Their relation with sunspot numbers and solar cycles.

    Note: The 34,000 Ca II K solar images mean a historic, 100-year-old archive of solar photographs from India’s Kodaikanal Solar Observatory that scientists recently digitized and used to solve mysteries about the Sun’s 11-year magnetic cycle.

    What are Supergranulations?

    • Large-scale convection patterns on the Sun’s surface.
    • Form network-like structures on the solar surface.

    Features

    • Average lifetime: Around 24 hours.
    • Average size: About 30,000 km.
    • Cooler intergranular lane width: Around 6,000 km.

    Note: An intergranular lane is the darker, cooler region found between bright granules (bright cellular structures visible on the Sun’s surface) on the Sun’s surface.

    Major Findings

    Correlation with Solar Cycle

    • Lane widths and intensities strongly correlate with Sunspot activity.

    Latitude Dependence

    • Strongest correlations observed around ±11° to ±22° latitudes.
    • Peak lane-width correlation 18°N and 20°S.
    • Peak intensity correlation 13°N and 14°S.

    Time Lag

    • Lane width correlations peak:
      • During solar maximum.
    • Intensity correlations peak:
      • 1.25 to 1.5 years after solar maximum.
    • Lag varies with latitude:
      • Near zero around ±20°.
      • Increases toward equator.

    Significance of Study

    • Helps understand:
      • Solar dynamics
      • Magnetic flux transport
      • Solar irradiance variations.
    • Important for:
      • Future solar cycle prediction.
      • Understanding UV radiation changes from the Sun.
    • Confirms:
      • Supergranular properties are influenced by solar magnetic activity.

    About Kodaikanal Solar Observatory

    • Located in: Kodaikanal.
    • Known for: One of the world’s longest continuous solar observation datasets.
    • Operated by: Indian Institute of Astrophysics.

    About Solar Cycle

    • The Sun undergoes an approximately: 11-year cycle of magnetic activity.
    • Characterized by variation in:
      • Sunspots
      • Solar flares
      • Solar radiation.
    • Solar maximum: Period of highest solar activity.
    • Solar minimum: Period of lowest solar activity.

    [2022] If a major solar storm (solar flare) reaches the Earth, which of the following are the possible effects on the Earth?:
    1. GPS and navigation systems could fail.
    2. Tsunamis could occur at equatorial regions.
    3. Power grids could be damaged.
    4. Intense auroras could occur over much of the Earth.
    5. Forest fires could take place over much of the planet.
    6. Orbits of the satellites could be disturbed
    7. Shortwave radio communication of the aircraft flying over polar regions could be interrupted.
    Select the correct answer using the code given below;

    [A] 1, 2, 4 and 5 only

    [B] 2, 3, 5, 6 and 7 only

    [C] 1, 3, 4, 6 and 7 only

    [D] 1, 2, 3, 4, 5, 6 and

  • India Showcases Carbon Credit Trading Scheme at WTO

    Why in the news?

    India showcased its Carbon Credit Trading Scheme (CCTS) and renewable energy standards during the WTO Trade and Environment Week 2026 held in Geneva.

    Key Highlights

    • Event: WTO Trade and Environment Week 2026.
    • Theme of India’s session:
      • “Showcase of India’s Carbon Credit Trading Scheme and Standardization in Renewable Energy”.
    • Focus areas:
      • Sustainable development
      • Clean energy transition
      • Carbon markets
      • Renewable energy standards
      • Climate commitments under the Paris Agreement.

    India’s Climate Achievements

    Non-Fossil Fuel Capacity

    • Share of non-fossil fuel-based installed electricity capacity: 53.21% as of March 2026.
    • Target: 50% by 2030.
    • Achieved nearly five years ahead of schedule.

    Emissions Intensity

    • India reduced emissions intensity of GDP by: 37.38% between 2005 and 2022.
    • NDC target: 33–35% reduction by 2030.
    • Achieved ahead of timeline.

    Carbon Credit Trading Scheme (CCTS)

    • Objective: Develop a national carbon market in India.

    Features

    • National electronic carbon credit trading platform.
    • Uses market-based mechanisms to Reduce greenhouse gas emissions. Promote low-carbon technologies.

    Importance

    • Encourages industries to:
      • Improve energy efficiency.
      • Reduce carbon emissions.
      • Participate in carbon trading.

    Green Hydrogen Standards

    • Under National Green Hydrogen Mission
    • Focus: Emission thresholds and technical standards for classifying hydrogen as “Green Hydrogen”.
    • Purpose: Ensure Transparency, Credibility, Investor confidence, Development of green hydrogen ecosystem.

    India’s Climate Principles

    India highlighted: Equity, Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC), Multilateral cooperation.

    India-Japan Discussions at WTO

    • India and Japan discussed:
      • Transparency in climate-related trade measures.
      • Concerns regarding unilateral trade-restrictive environmental measures.
    • Focus: Avoiding unnecessary barriers to international trade.

    About WTO Trade and Environment Week

    • Organized under: World Trade Organization
    • Purpose: Discuss links between Trade, Climate change, Sustainability, and Environmental regulations.

    [2025] Consider the following statements:
    Statement I: Article 6 of the Paris Agreement on climate change is frequently discussed in global discussions on sustainable development and climate change.
    Statement II: Article 6 of the Paris Agreement on climate change sets out the principles of carbon markets.
    Statement III: Article 6 of the Paris Agreement on climate change intends to promote inter-country non-market strategies to reach their climate targets.
    Which one of the following is correct in respect of the above statements?

    [A] Both Statement II and Statement III are correct and both of them explain Statement I

    [B] Both Statement II and Statement III are correct but only one of them explains Statement I

    [C] Only one of the Statements II and III is correct and that explains Statement I

    [D] Neither Statement II nor Statement III is correct

  • E85 Fuel Rollout in India

    Why in the news?

    Hardeep Singh Puri launched E85 fuel at an Indian Oil Corporation retail outlet in New Delhi on World Environment Day 2026.

    What is E85 Fuel?

    • E85 is a high ethanol-blended fuel containing: 80–85% ethanol and 14–19% petrol.
    • Designed specifically for: Flex-Fuel Vehicles (FFVs).

    What are Flex-Fuel Vehicles (FFVs)?

    • Vehicles capable of operating on: Ethanol blends from E20 to E100.
    • They automatically adjust engine functioning according to fuel blend composition.

    Rollout Plan

    • Initial rollout: 48 retail outlets of Public Sector Oil Marketing Companies (OMCs).
    • Expansion target: 500 outlets by December 2026. 5,000 outlets by December 2027.
    • Goal: Raise ethanol blending levels to nearly 26% by 2030-31.

    Ethanol Blending Achievements

    • Ethanol blending increased from 1.53% in 2014 to 20% in 2026.
    • India achieved 20% ethanol blending target five years ahead of schedule.
    • Benefits achieved:
      • Saved over ₹1.84 lakh crore in foreign exchange.
      • Replaced nearly 302 lakh metric tonnes of crude oil imports.

    Benefits of E85

    Economic Benefits

    • E85 priced nearly ₹20 per litre cheaper than conventional petrol.
    • Can generate Demand for over 312 crore litres of ethanol if FFV adoption increases.
    • Could transfer Nearly ₹12,403 crore to farmers annually.

    Environmental Benefits

    • Reduces lifecycle greenhouse gas emissions by: Around 61% compared to petrol.
    • Higher ethanol blending: Improves combustion efficiency and Reduces particulate matter emissions.
    • Potential reduction: 66.4 lakh metric tonnes of CO₂ annually.

    [2025] Consider the following statements:
    Statement I: Of the two major ethanol producers in the world, i.e., Brazil and the United States of America, the former produces more ethanol than the latter.
    Statement II: Unlike in the United States of America where corn is the principal feedstock for ethanol production, sugarcane is the principal feedstock for ethanol production in Brazil.
    Which one of the following is correct in respect of the above statements?

    [A] Both Statement I and Statement II are correct and Statement II explains Statement I

    [B] Both Statement I and Statement II are correct but Statement II does not explain Statement I

    [C] Statement I is correct but Statement II is not correct

    [D] Statement I is not correct but Statement II is correct

  • 4 Years of Jan Samarth Portal

    Why in the news?

    Jan Samarth Portal has completed four years since its launch on 6 June 2022, marking progress in digital financial inclusion and seamless credit delivery.

    About Jan Samarth Portal

    • A single-window digital platform for credit-linked government schemes.
    • Connects:
      • Beneficiaries
      • Banks
      • Government schemes through one integrated system.
    • Objective:
      • Simplify access to institutional credit.
      • Improve financial inclusion and digital lending.
    • Sectors covered:
      • Agriculture
      • Business
      • Housing
      • Renewable energy
      • Livelihoods.

    Schemes Available on the Portal

    Agriculture and Rural Sector

    • Kisan Credit Card
    • Agriculture Infrastructure Fund
    • Agri Clinics and Agri Business Centres Scheme (ACABC)

    Business and Livelihood

    • Pradhan Mantri Mudra Yojana
    • PM SVANidhi
    • Prime Minister’s Employment Generation Programme
    • Loan for Startups

    Renewable Energy

    • Rooftop Solar Installation Financing.

    Housing

    • Home loans for:
      • Economically Weaker Sections (EWS)
      • Lower Income Group (LIG)
      • Middle Income Group (MIG)

    Scale and Impact

    • Applications Processed 54.10 lakh applications processed.
    • Loan Value ₹3,00,951 crore applications processed through the portal.
    • Digital Approvals
    • 49.55 lakh beneficiaries approved.
    • ₹2,76,493.78 crore sanctioned digitally.

    [2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
    1.Working capital for maintenance of farm assets
    2.Purchase of combine harvesters, tractors and mini trucks
    3.Consumption requirements of farm households
    4.Post-harvest expenses
    5.Construction of family house and setting up of village cold storage facility
    Select the correct answer using the code given below:

    [A] 1, 2 and 5 only

    [B] 1, 3 and 4 only

    [C] 2, 3, 4 and 5 only

    [D] 1, 2, 3, 4 and 5

  • Empowering India’s Annadatas

    Why in the news?

    The Government of India highlighted major achievements and reforms in the agriculture sector over the past 12 years, focusing on farmer welfare, productivity, infrastructure, digital agriculture, and allied sectors.

    Growth in the Agriculture Sector

    • Agriculture and allied sector GVA increased from:
      • ₹20.9 lakh crore (2014-15)
      • to ₹48.7 lakh crore (2023-24).
    • Sector contributes:
      • About 18% of total Gross Value Added (GVA).

    Foodgrain Production

    • Total foodgrain production increased from:
      • 265.05 million tonnes (2013-14)
      • to 357.73 million tonnes (2024-25).

    Major Crops

    • Rice production: 150.18 million tonnes in 2024-25.
    • Wheat production: 117.94 million tonnes.
    • Maize production: 43.40 million tonnes.

    Oilseeds

    • Production reached: 42.99 million tonnes in 2024-25.

    Important Agricultural Schemes

    Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)

    • Provides: ₹6,000 annual income support through DBT.
    • Beneficiaries: Over 9.44 crore farmer families.

    Pradhan Mantri Fasal Bima Yojana (PMFBY)

    • Crop insurance scheme covering: Entire crop cycle.
    • Claims disbursed: ₹1.96 lakh crore till December 2025.

    MSP Reforms

    • MSP fixed at: Minimum 1.5 times cost of production since 2018-19.
    • MSP announced for: 22 mandated crops.

    Kisan Credit Card (KCC)

    • Operative accounts: Increased to 7.81 crore in 2024-25.

    Sustainable Agriculture

    Irrigation

    • Irrigation coverage increased from: 49.3% to 55% of gross cropped area.

    Soil Health Card Scheme

    • Nearly: 26 crore soil health cards issued.

    Organic Farming

    • Paramparagat Krishi Vikas Yojana promotes organic farming.
    • 18.84 lakh hectares covered under PKVY.

    Natural Farming

    • National Mission on Natural Farming covered:
      • 9 lakh hectares
      • 19 lakh farmers.

    Renewable Energy in Agriculture

    PM KUSUM

    • Promotes solar pumps and solarisation of agriculture.
    • Benefited: Over 21.77 lakh farmers.

    Cooperatives and FPOs

    Ministry of Cooperation

    • Established in: 2021.

    Farmer Producer Organisations (FPOs)

    • 10,000 FPOs registered by February 2026.

    Digital Agriculture

    Digital Agriculture Mission

    • Farmer IDs created: 7.63 crore.
    • Crop plots digitized: 23.5 crore.

    Namo Drone Didi

    • Promotes drone usage by women SHGs.
    • Approved outlay: ₹1,261 crore.

    National Pest Surveillance System

    • Covers:
      • 66 crops and 432 pest species.

    Allied Sector Achievements

    Dairy

    • India remains: World’s largest milk producer.
    • Milk production: Increased to 247.87 million tonnes in 2024-25.

    Fisheries

    • Fish production: Increased from 9.58 MT to 19.78 MT.

    Beekeeping

    • Honey exports increased by: 240%.

    Ethanol Blending Programme

    • Ethanol blending reached: 20% in ESY 2025-26.

    [2016] With reference to ‘Pradhan Mantri Fasal Bima Yojana’, consider the following statements:
    1. Under this scheme, farmers will have to pay a uniform premium of two percent for any crop they cultivate in any season of the year.
    2. This scheme covers post-harvest losses arising out of cyclones and unseasonal rains.
    Which of the statements given above is/are correct?

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

  • India’s Biodiversity: Commitments and Achievements

    Why in News?

    The Government of India highlighted recent achievements and policy measures related to biodiversity conservation, governance, and sustainable use under the Convention on Biological Diversity (CBD).

    Biodiversity Governance Structure

    • India follows a three-tier biodiversity governance system:
      • National Biodiversity Authority at national level
      • State Biodiversity Boards (SBBs)
      • Biodiversity Management Committees (BMCs) at local level.
    • India has:
      • More than 2,76,653 Biodiversity Management Committees (BMCs)
      • Over 2,72,648 People’s Biodiversity Registers (PBRs).

    Note: Biodiversity Management Committees (BMCs) are local-level statutory bodies in India, mandated by the Biological Diversity Act of 2002.

    About Biodiversity

    • Biodiversity refers to the variety of life forms including:
      • Plants
      • Animals
      • Microorganisms
      • Ecosystems.

    Biological Diversity Act, 2002

    • India’s principal law for:
      • Biodiversity conservation
      • Sustainable use
      • Fair and equitable benefit sharing.

    Biological Diversity (Amendment) Act, 2023

    • Promotes:
      • Research and innovation
      • Traditional knowledge-based practices
      • Community participation.

    Important Concepts

    People’s Biodiversity Register (PBR)

    • Local biodiversity database prepared by BMCs.
    • Records:
      • Biological resources
      • Traditional knowledge
      • Local species and habitats.

    Access and Benefit Sharing (ABS)

    • Ensures benefits from biological resources are shared with local communities.

    Nagoya Protocol

    • Supplementary agreement under CBD adopted in Nagoya, Japan in 2010.
    • Focuses on fair sharing of benefits arising from genetic resources.

    Kunming-Montreal Global Biodiversity Framework (KMGBF)

    • Adopted during CBD COP-15 in Montreal in 2022.
    • Global target:
      • Halt and reverse biodiversity loss by 2030.

    National Biodiversity Strategy and Action Plan (NBSAP 2024-2030)

    • Aligns India’s biodiversity goals with KMGBF.
    • Promotes:
      • Whole-of-government
      • Whole-of-society approach.

    Key Achievements

    Forests and Protected Areas

    • Forest and tree cover: 8.27 lakh sq. km (25.17% of geographical area).
    • Protected areas: More than 1,134 protected areas covering 1.88 lakh sq. km.

    Species Conservation

    • Tiger population increased from: 2,226 (2014) to 3,682.

    Community Participation

    • National campaign underway for digitisation of PBRs into e-PBRs.

    ABS Achievements

    • ₹145 crore released to beneficiaries till May 2026.
    • Benefited around 11,000 BMCs (Biodiversity Management Committees).

    [2023] Consider the following statements:
    1. In Biodiversity the India, Management Committees are key to the realization of the objectives of the Nagoya Protocol.
    2. The Biodiversity Management Committees have important functions in determining access and benefit sharing, including the power to levy collection fees on the access of biological resources within its jurisdiction.
    Which of the statements given above is/are correct?

    [A] 1 only

    [B] 2 only

    [C] Both 1 and 2

    [D] Neither 1 nor 2

  • [5th June 2026] The Hindu OpED: Funding India’s climate future, a trillion-dollar question

    PYQ Relevance[UPSC 2022] Describe the major outcomes of the 26th session of the Conference of the Parties (COP26) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference?Linkage: The PYQ tests understanding of India’s climate commitments and the policy mechanisms required to achieve them. The PYQ asks about India’s climate targets, while the article explains the climate-finance architecture needed to fund and implement those targets.

    Mentor’s Comment

    India’s climate finance challenge has come into sharp focus on World Environment Day amid striking estimates that the country requires nearly ₹162.5 trillion (about $2.5 trillion) by 2030 to meet its Nationally Determined Contributions (NDCs), and around $10.1 trillion to achieve net-zero emissions by 2070. The issue has gained significance because India is no longer merely discussing climate action but is now confronting the financing architecture required to implement it at scale.

    Why is India’s climate finance requirement unprecedented?

    1. NDC Financing Requirement: India requires nearly ₹162.5 trillion (around $2.5 trillion) by 2030 to achieve its Nationally Determined Contributions.
    2. Net-Zero Financing Need: Achieving net-zero emissions by 2070 requires approximately $10.1 trillion.
    3. Scale of Challenge: The estimated requirement is nearly three times India’s current GDP.
    4. Investment Imperative: Climate finance must support mitigation, adaptation, resilient infrastructure, and low-carbon development simultaneously.

    How large is the financing gap in key emitting sectors?

    1. Sectoral Concentration: Steel, cement, power, and road transport account for more than half of India’s carbon emissions.
    2. Additional Capital Need: These four sectors alone require an additional $467 billion between 2022 and 2030.
    3. Annual Requirement: Equivalent to roughly $54 billion annually.
    4. GDP Share: Represents nearly 1.3% of GDP annually.
    5. Economic Viability Constraint: Green steel and green cement remain commercially challenging without policy support and regulatory incentives.
    6. Private Sector Limitation: Large-scale private investment remains difficult without de-risking mechanisms.

    Why is international climate finance insufficient?

    1. Developing Country Requirement: Developing economies require nearly $5-6 trillion for climate action by 2030.
    2. Unfulfilled Commitment: Developed countries promised $100 billion annually under climate finance commitments but failed to consistently meet the target.
    3. Baku NCQG Commitment: The New Collective Quantified Goal (NCQG) commits approximately $300 billion annually by 2035.
    4. Adequacy Concern: India considers this commitment insufficient relative to actual financing needs.
    5. RBI Assessment: RBI estimates India requires additional annual investment of at least 2.5% of GDP for green financing until 2030.
    6. Domestic Mobilisation Necessity: Most climate finance will need to be raised within India rather than relying on external support.

    What progress has India already made in climate finance?

    1. Green Debt Mobilisation: India issued $55.9 billion in green, social, sustainability, and sustainability-linked debt by the end of 2024.
    2. Rapid Growth: Represents a 186% increase since 2021.
    3. Green Bond Dominance: Green debt constituted approximately 83% of total sustainable debt issuance.
    4. Sectoral Allocation: Most funds flowed into clean energy and transport sectors.
    5. Sovereign Green Bonds: Government-issued sovereign green bonds worth approximately ₹477 billion helped establish market benchmarks.
    6. Investor Confidence: Sovereign issuance improved credibility and attracted long-term investors.

    Why is institutional architecture more important than funding availability?

    1. Instrument Availability: Green bonds, sovereign green bonds, blended finance, transition finance instruments, and Infrastructure Investment Trusts (InvITs) already exist.
    2. Missing Ecosystem: Absence of taxonomy, guarantee mechanisms, liquidity support, and regulatory incentives constrains deployment.
    3. Cost Differential: Green projects often face higher financing costs than conventional projects.
    4. Capital Deployment Challenge: The principal bottleneck lies in directing capital efficiently toward climate priorities.
    5. Institutional Deficit: Finance exists but deployment architecture remains underdeveloped.

    How has the RBI emerged as a major climate-finance regulator?

    1. Climate Risk Directions: RBI issued Climate Finance and Management of Climate Risks Directions for commercial banks and Small Finance Banks in 2025.
    2. Risk Integration: Requires climate risks to be integrated into lending and risk-management practices.
    3. Priority Sector Lending Recognition: Eligible green activities can qualify under Priority Sector Lending (PSL).
    4. Sovereign Green Bond Recognition: Investments in sovereign green bonds receive regulatory recognition.
    5. Financial Mainstreaming: Climate considerations are being embedded into core banking operations.

    Why is Priority Sector Lending becoming a climate-finance lever?

    1. PSL Scale: Banks must ensure approximately ₹4,000 crore of PSL lending for every ₹10,000 crore of loans.
    2. Credit Reallocation Potential: Enables large-scale redirection of credit toward green sectors.
    3. Regulatory Leverage: Provides a powerful mechanism to channel finance into climate-sensitive activities.
    4. Adaptation Financing Opportunity: Climate adaptation projects can be incorporated into PSL frameworks.

    What additional regulatory reforms has the RBI proposed?

    1. Green Bond Collateralisation: Proposal to accept sovereign green bonds as collateral with greater flexibility.
    2. Reserve Requirement Adjustments: Scope for modifying reserve requirements to support green credit.
    3. Differentiated Capital Requirements: Lower capital requirements for green lending and higher requirements for carbon-intensive lending.
    4. Climate Risk Pricing: Encourages incorporation of climate risks into financial decision-making.
    5. Climate Stress Testing: Supports comprehensive climate stress-testing frameworks for banks.
    6. Regulatory Sandbox: Sustainable finance initiatives have been included within RBI’s regulatory sandbox.
    7. Climate Risk Information System: Development of systems for climate-related financial risk assessment.

    Why is a Climate Finance Taxonomy critical?

    1. Definition Standardisation: Establishes a legal and technical definition of what qualifies as “green”.
    2. Investor Confidence: Enables verification of sustainable investments.
    3. Greenwashing Prevention: Reduces misleading sustainability claims.
    4. PSL Classification Support: Improves classification of green activities under banking regulations.
    5. International Compatibility: Facilitates participation of global investors.
    6. Policy Foundation: Forms the basis of the broader climate-finance ecosystem.

    How can blended finance unlock private capital?

    1. Blended Finance Model: Uses public or concessional capital to de-risk private investment.
    2. Capital Mobilisation Effect: A first-loss guarantee of $100 million can unlock $500 million to $1 billion in private investment.
    3. Target Sectors: Solar energy, offshore wind, green hydrogen, climate-resilient agriculture, and resilient infrastructure.
    4. Risk Absorption: Public finance absorbs initial losses that private investors are unwilling to bear.
    5. Investment Multiplier: Generates substantially larger private-sector participation.

    Why is climate adaptation finance the most neglected area?

    1. Adaptation Deficit: Climate adaptation receives significantly less attention than mitigation.
    2. State-Level Responsibility: Adaptation programmes are largely implemented by states.
    3. Examples of Adaptation: Drought-proofing in Vidarbha and spring rejuvenation in Himalayan regions.
    4. State Capacity Constraint: States often lack borrowing power and institutional capacity to access international climate finance.
    5. Federal Finance Gap: Climate finance architecture remains insufficiently aligned with India’s federal structure.

    What reforms are necessary to close India’s climate finance gap?

    1. Climate Finance Taxonomy
      1. Classification Framework: Finalises nationally accepted definitions of green activities.
      2. Investment Clarity: Facilitates investment flows and prevents greenwashing
    2. RBI-Led Green Finance Regulation
      1. Capital Incentives: Introduces differentiated capital requirements.
      2. Mandatory Stress Testing: Embeds climate risk assessment into banking supervision.
      3. Expanded PSL: Includes climate adaptation alongside mitigation.
    3. State Climate Finance Facility
      1. Sub-National Financing: Enables states and municipalities to access green finance.
      2. Institutional Support: Utilises Union Government, NABARD, and international sources.
    4. Expansion of Sovereign Green Bonds
      1. Market Deepening: Strengthens domestic green bond markets.
      2. Foreign Capital Attraction: Encourages long-term international investment.
      3. SLR Integration: Embeds sovereign green bonds within statutory liquidity frameworks.

    Conclusion

    As the UNEP notes, the world faces a climate emergency but also a financing opportunity. For India to achieve its NDC targets by 2030 and net-zero by 2070, the challenge is not merely raising capital but building institutions that can channel finance at scale. A robust climate-finance architecture will be critical to translating ambition into action and ensuring sustainable growth.

  • The power of mangroves over seawalls

    Why in the News?

    Cyclone Dana highlighted how Odisha’s mangroves protected coastal communities, strengthening the case for nature-based coastal defence over seawalls. This has renewed attention on India’s continued preference for spending ₹2,641 crore on hard infrastructure despite evidence that mangroves and other coastal ecosystems provide long-term, cost-effective protection to nearly 250 million coastal residents.

    Why Are India’s Coastal Regions Becoming Increasingly Vulnerable to Climate Change?

    1. Rising sea levels: The Arabian Sea and Bay of Bengal are experiencing accelerating sea-level rise, threatening low-lying coastal districts, deltas, and island territories.
    2. Intensifying cyclones: Climate change is increasing both the frequency and intensity of cyclones along India’s coast, the eastern seaboard (Odisha, Andhra Pradesh, West Bengal) is particularly exposed.
    3. Saline intrusion: Saltwater intrusion into freshwater aquifers and agricultural land is degrading livelihoods. This directly affects food security and drinking water in coastal communities.
    4. Storm surges: Storm surges linked to cyclonic events are intensifying. These cause disproportionate damage to ecologically fragile coastal landscapes and displacing communities.
    5. Compound risk: These interacting hazards do not operate independently. They multiply threats along India’s coastline, making the fragile coastal landscape both physically and economically vulnerable.
    6. Large Population Exposure: Nearly 250 million people living along India’s coastline face direct impacts of climate-related coastal risks.
    7. Extensive Coastline: India’s 11,000-km coastline increases exposure to multiple climate hazards simultaneously.

    Why Are Mangroves, Seagrasses and Coral Reefs Considered Natural Coastal Defences?

    1. Coral Reefs: The First Line of Defense
      1. Natural Breakwaters: Coral reefs sit furthest out in the ocean and absorb up to 97% of incoming wave energy before it can reach the shore.
      2. Friction and Depth: The jagged, complex structures of coral skeletons create immense bottom friction, forcing waves to break early and lose their destructive power
    2. Seagrass Meadows(The Middle Buffer): Reduce coastal erosion, trap sediments and support marine biodiversity.
      1. Erosion Control: Located in the shallow waters between reefs and the shore, seagrasses act as underwater carpets that anchor the seabed with their roots.
      2. Sediment Trapping: Their long blades slow down water currents, forcing suspended sand and organic particles to drop to the seafloor, which actively builds up the underwater terrain.
    3. Mangroves: The Intertidal Shield
      1. Storm Surge Mitigation: Mangrove forests act as the final, dense barrier against extreme weather, capable of reducing storm surge heights by up to 66%. 
      2. Energy Dissipation: Their massive networks of tangled prop roots and thick trunks create a dense obstacle course that rapidly saps the remaining power of waves and incoming floods.

    How Does Ecosystem-based Adaptation (EbA) Strengthen Climate Resilience?

    EbA uses biodiversity and ecosystem services to help people adapt to climate change. This reduces climate impacts while sustaining ecosystems that support fisheries, agriculture, and tourism.

    1. Climate Risk Reduction: Uses biodiversity and ecosystem services to help people adapt to climate change.
    2. Livelihood Protection: Supports fisheries, agriculture and tourism-dependent communities.
    3. Long-Term Sustainability: Maintains ecosystem functions while reducing climate vulnerabilities.
    4. Cost Effectiveness: Avoids repeated expenditure on expensive hard infrastructure maintenance.
    5. Disaster Risk Reduction: Reduces losses from cyclones, flooding and coastal erosion.
    6. Nature-based Solutions: Integrates conservation and restoration into adaptation planning.

    What Evidence Demonstrates the Effectiveness of Ecosystem-based Adaptation?

    Bhitarkanika Mangroves During Cyclone Dana

    1. Cyclone Protection: Mangroves in Odisha’s Bhitarkanika quietly protected communities from cyclone impacts.
    2. Natural Buffer: Reduced climate impacts while strengthening ecosystem health and livelihoods.

    Global Evidence

    1. Protection Capacity: A healthy hectare of coastal habitat protects more people per hectare than almost any other natural asset.

    Sundarbans Example

    1. Mangrove Restoration: Around 18,000 women restored 4,600 hectares of mangroves.
    2. Cyclone Mitigation: Restoration reduced impacts of Cyclones Amphan and Yaas.
    3. Livelihood Benefits: Strengthened local economic opportunities and social outcomes.

    Kerala Example

    1. Seawall Consequences: Armouring and erosion-control measures protected specific sites.
    2. Adjacent Damage: Accelerated erosion in neighbouring areas, illustrating unintended consequences of hard infrastructure.

    Why Does India Continue to Prefer Seawalls and Embankments?

    Seawalls are massive, heavy-duty structures built directly parallel to the shoreline where the sea meets the land. They are designed as a last line of defence to protect high-value coastal areas, like cities and roads, from intense wave action. Embankments are raised earthen ridges or mounds constructed along rivers, lakes, or low-lying coastlines. They focus on holding back water from flat, expansive areas rather than fighting heavy, crashing ocean waves.

    1. Engineering Bias: Adaptation planning strongly favours hard infrastructure such as seawalls, groynes, embankments and tetrapods.
    2. Political Visibility: Seawalls and embankments provide visible and immediate outputs, making them attractive for governments.
    3. Institutional Preference: Existing planning, procurement and budgeting systems are designed around construction-based projects.
    4. Administrative Familiarity: Engineers and local authorities are more experienced with hard infrastructure than ecosystem restoration.
    5. Perceived Certainty: Seawalls provide tangible and measurable protection, whereas ecosystem benefits are often viewed as less predictable.

    What does India’s coastal adaptation spending pattern reveal about institutional bias toward hard infrastructure?

    1. Hard protection dominance: Coastal States spent ₹2,641 crore on hard protection measures over the last decade. This reflects a stark preference for engineered measures such as seawalls, groynes, embankments, and tetrapods.
    2. National Coastal Mission decline: Budget fell from ₹195 crore in 2022-23 to just ₹50 crore in 2024-25.
    3. PSL and visibility bias: Fragile institutional mandates, weak monitoring, and a preference for visible infrastructure often leave ecosystem-based interventions buried within broader sectoral programmes rather than recognised as adaptation in their own right.
    4. Reporting gap: Adaptation benefits of coastal ecosystems are rarely assessed or recorded separately, making India’s coastal EbA portfolio appear much weaker than it is.

    What Prevents Ecosystem-based Adaptation from Becoming Mainstream Policy?

    1. Fragmented Terminology: EbA overlaps with Nature-based Solutions (NbS), Coastal Adaptation (EbCA), Ecosystem-based Disaster Risk Reduction (Eco-DRR) and related concepts.
    2. Classification Challenges: Similar interventions are recorded under conservation, restoration or management categories instead of adaptation.
    3. Weak Monitoring: Limited mechanisms exist to measure adaptation outcomes.
    4. Institutional Fragmentation: EbA interventions remain dispersed across multiple schemes and sectors.
    5. Inadequate Recognition: Policymakers often fail to identify adaptation benefits generated by ecosystem restoration.
    6. Limited Financing: Absence of dedicated adaptation financing restricts scale and replication.

    Why Does Classification of Ecosystem-based Adaptation Matter?

    1. Policy Recognition: Enables clear identification of adaptation actions.
    2. Monitoring Frameworks: Facilitates tracking and evaluation of adaptation outcomes.
    3. Financing Access: Strengthens eligibility for climate adaptation funding.
    4. Evidence Generation: Supports measurement of climate resilience benefits.
    5. Policy Integration: Ensures ecosystem restoration becomes part of mainstream adaptation planning.

    How Does the Mangrove Initiative for Shoreline Habitats and Tangible Incomes (MISHTI) Reflect the Potential of EbA?

    MISHTI is a dedicated central government scheme in India aimed at reviving and expanding the country’s mangrove cover while generating sustainable livelihoods for coastal communities. Announced during the Union Budget 2023-24 and officially launched on World Environment Day (5 June 2023), it serves as a core part of India’s strategy to build a nature-based “bio-shield” against climate change.

    1. Programme Objective: Targets restoration of 540 sq km of mangroves across nine States.
    2. Climate Resilience: Enhances natural protection against coastal hazards.
    3. Livelihood Support: Generates economic opportunities linked to ecosystem restoration.
    4. Current Limitation: Primarily framed as a restoration programme rather than a climate adaptation initiative.

    What Policy Reforms Are Needed to Mainstream Ecosystem-based Adaptation?

    1. Policy Integration: Embeds EbA within coastal planning and adaptation frameworks.
    2. Dedicated Financing: Expands budgetary support for ecosystem-based interventions.
    3. Outcome Monitoring: Develops indicators for adaptation benefits.
    4. Institutional Coordination: Harmonises fragmented schemes and programmes.
    5. Climate Accounting: Recognises ecosystem restoration as an adaptation investment.
    6. Natural Capital Approach: Treats ecosystems as strategic climate-resilience assets.

    Conclusion

    The choice before India is not merely between two adaptation techniques but between two development pathways. While seawalls offer localised and short-term protection, mangroves and other coastal ecosystems provide durable climate resilience, biodiversity conservation and livelihood security. Mainstreaming Ecosystem-based Adaptation will be critical for protecting India’s 250 million coastal residents in an era of accelerating climate change.

    Value Addition

    Nature-based Solutions (NbS)

    Definition: Nature-based Solutions (NbS) is an umbrella concept defined by the International Union for Conservation of Nature (IUCN) as actions to protect, sustainably manage, and restore natural or modified ecosystems. These actions address societal challenges, such as climate change, food security, water security, human health, and disaster risk, while simultaneously providing human well-being and biodiversity benefits.

    1. India’s NDC 2022 references NbS for carbon sequestration through forests.

    Ecosystem-based Adaptation (EbA)

    Definition: Use of biodiversity and ecosystem services to help people adapt to adverse impacts of climate change.

    Key Features

    1. Ecosystem conservation
    2. Ecosystem restoration
    3. Climate risk reduction
    4. Community participation
    5. Livelihood enhancement
    6. Disaster resilience

    Ecosystem-based Coastal Adaptation (EbCA)

    EbCA is a subset of Ecosystem-based Adaptation (EbA). It focuses specifically on helping coastal communities adapt to the long-term, gradual changes brought by climate change.

    1. The Core Strategy: It uses coastal biodiversity and ecosystem services to help human societies adapt to climate pressures.
    2. Primary Targets: Sea-level rise, coastal erosion, saltwater intrusion into agricultural land, and changing ocean temperatures.
    3. Example: Dynamically planting salt-tolerant mangrove species along an eroding coastline. As sea levels rise, the mangroves naturally trap sediment, raising the land.

    Ecosystem-based Disaster Risk Reduction (Eco-DRR)

    Eco-DRR focuses on using ecosystems to reduce the immediate impact, frequency, and severity of sudden natural disasters.

    1. The Core Strategy: It manages and restores ecosystems to act as physical shock absorbers against extreme physical hazards.
    2. Primary Targets: Sudden disasters like cyclones, tsunamis, massive storm surges, and flash floods.
    3. Example: Protecting an offshore coral reef. When a cyclone strikes, the reef acts as a natural breakwater, absorbing up to 97% of the wave energy before it crashes into coastal towns, directly reducing casualties and property destruction.

    Ecological Bio-Shields:

    1. A bio-shield is a dense strip of vegetation planted along a coast to act as a barrier against natural hazards. 
    2. Casuarina trees, mangroves, and coastal palms are frequently used together to create multi-tiered, living walls that trap flying debris and slow down incoming water.If

    Integrated Coastal Zone Management (ICZM): 

    1. India’s ICZM project (World Bank-assisted) aimed to address coastal erosion, pollution, and habitat loss through integrated planning. 
    2. EbA mainstreaming is its natural evolution.

    PYQ Relevance

    [UPSC 2022] Explain the causes and effects of coastal erosion in India. What are the available coastal management techniques for combating the hazard?

    Linkage: The PYQ examines coastal vulnerability and compares different coastal protection approaches, including structural and ecosystem-based measures. The article extends the PYQ by assessing whether ecosystem-based solutions such as mangroves can provide more sustainable and cost-effective coastal protection than conventional seawalls and embankments.