NPCI BHIM Services Ltd. (NBSL), a subsidiary of the National Payments Corporation of India (NPCI), launched BHIM 3.0 with new features aimed at enhancing the user experience and providing new offerings for businesses and banks.
About BHIM (Bharat Interface for Money):
BHIM is a mobile payment app developed by NPCI, based on the Unified Payments Interface (UPI), aimed at promoting cashless transactions and digital payments directly through banks.
Launched on December 30, 2016, BHIM facilitates instant money transfers between over 170 member banks using IMPS infrastructure.
Unlike mobile wallets, BHIM transfers money directly between bank accounts, ensuring quick transactions at any time, including holidays.
BHIM now supports Aadhaar-based authentication for easier digital payments.
BHIM is available in more than 20 Indian languages and is designed to work effectively in areas with low or unstable internet connectivity.
BHIM employs a robust three-factor authentication (3FA) process to ensure the security of transactions:
Device ID and Mobile Number: The app binds with the user’s device ID and mobile number to verify the device.
Bank Account Link: Users must sync their bank account (UPI-enabled or non-UPI-enabled) to the app for transactions.
UPI PIN: A unique UPI PIN is required for completing transactions, which adds an extra layer of security.
NPCI does not chargeany fee for transactions between ₹1 and ₹100,000.
Banks may charge fees for UPI or IMPS transfers, but there is no official information on BHIM-specific charges.
Key Features of BHIM 3.0
Split Expenses: Users can now divide bills for shared expenses (e.g., rent, dining, group purchases) and settle payments instantly.
Family Mode: Users can onboard family members, track shared expenses, and assign specific payments for better financial management.
Spends Analytics: A new dashboard provides a detailed breakdown of monthly expenses, automatically categorizing them for easier budgeting.
Action Needed Alerts: BHIM 3.0 includes reminders for pending bills, activation of UPI Lite, and low Lite balance alerts to help users stay updated.
BHIM Vega: This feature allows merchants to accept in-app payments directly within the BHIM app, streamlining transactions without needing third-party apps.
[UPSC 2018] With reference to digital payments, consider the following statements:
1.BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account.
2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication.
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
The Centre is considering the withdrawal of the 6% Equalization Levy on online advertisement services provided by offshore digital economy firms to Indian businesses.
What is Equalization Levy?
The Equalization Levy was introduced in 2016 under Section 165A of the Finance Act, primarily to tax digital transactions conducted by foreign e-commerce companies with Indian businesses.
It was designed to ensure that foreign companies, particularly in the digital economy, pay taxes for benefiting from Indian markets without a physical presence in the country.
It was primarily aimed at business-to-business (B2B) transactions, which is why it is often referred to as the “Google Tax”.
The levy mechanism involves withholding the tax at the time of payment made by the Indian service recipient to a non-resident service provider.
The annual payment threshold for the levy is ₹1,00,000 for a single service provider in a financial year.
Services covered under the levy:
Online advertisement services (effective from June 1, 2016).
Provision of digital advertising space or sale of goods to Indian residents (effective from April 1, 2020).
Tax Rates:
6% of the gross consideration is levied on online advertisement services.
2% of the gross consideration is levied on e-commerce transactions like the sale of goods or services.
Exclusions:
The levy does not apply if the non-resident has a permanent office in India related to the service.
The payment for the service is below ₹1 lakh.
Tax Withholding: The tax is withheld by the Indian service recipient at the time of payment.
Why it is being Abolished?
This move is part of India’s attempt to reduce tensions with the US, which raised concerns over such taxes.
Similarly, the UK is considering the abolition of its digital services tax by April 2025.
In August 2024, the Indian government removed the 2% levy applied to offshore tech firms (e.g., cloud services, e-commerce).
The 6% levy on online advertisements remained, impacting companies like Google and Meta.
The Finance Bill 2025 proposes a sunset clause to phase out the 6% levy on online advertisements by April 1, 2025.
[UPSC 2012] What is/are the recent policy initiative(s)of Government of India to promote the growth of manufacturing sector? Setting up of:
1. National Investment and Manufacturing Zones
2. Providing the benefit of ‘single window clearance’
3. Establishing the Technology Acquisition and Development Fund
Select the correct answer using the codes given below:
(a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
Question: How does the melting of the Arctic ice and glaciers of the Antarctic differently affect the weather patterns and human activities on the Earth? Explain. (UPSC 2021)
Reason: It addresses the broader impact of melting ice on weather patterns and human activities, a theme relevant to the permafrost thaw in the Himalayas.
Mentor’s Comment: UPSC mains usually focus on the melting of the Arctic ice and glaciers (2021) and the melting of Himalayan glaciers in 2020.
Permafrost, frozen for millennia, is now thawing due to global warming, releasing stored carbon, including methane, a potent greenhouse gas, leading to severe climatic and ecological consequences. It’s melting poses a growing environmental threat in the Kashmir Himalayas, endangering 193 km of roads, 2,415 households, 903 alpine lakes, and eight hydropower projects.
Today’s editorial discusses melting permafrost and its impacts, which is relevant for GS Paper 3 in the UPSC Mains exam.
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Let’s learn!
Why in the News?
A study by researchers from the University of Kashmir and IIT-Bombay, published in Remote Sensing Applications: Society and Environment, found that permafrost covers 64.8% of J&K and Ladakh in different forms.
What is Permafrost?
Permafrost is ground—comprising soil, rock, or sediment—that remains continuously frozenforatleasttwoyears. It is found in high-altitude and polar regions, stores carbon, and supports unique ecosystems. However, rising global temperatures are causing it to thaw, leading to infrastructure damage, greenhouse gas emissions, and environmental disruptions.
What are the major environmental and infrastructural challenges associated with permafrost melting in the Kashmir Himalayas?
Increased Risk of Glacial Lake Outburst Floods (GLOFs): Thawing permafrost destabilizes moraines, increasing the likelihood of sudden lake outbursts. Example: The South Lhonak Lake outburst in Sikkim (October 2023) and the Chamoli disaster in Uttarakhand (February 2021).
Damage to Roads and Infrastructure: Melting permafrost weakens the ground, causing landslides and road subsidence, disrupting connectivity. Example: Strategic roads in Ladakh, crucial for military operations, are at risk due to thaw-induced ground instability.
Threat to Hydropower Projects: Permafrost degradation affects water availability and increases sediment flow, damaging dams and power plants. Example: 8 hydropower projects in J&K and Ladakh are vulnerable to thaw-induced landslides and reduced water flow.
Loss of Permafrost-Dependent Ecosystems: Thawing disrupts alpine ecosystems, affecting vegetation, wildlife, and water cycles. Example: Decline of cold-adapted species and changing river flow patterns impacting local biodiversity.
Release of Greenhouse Gases: Thawing permafrost releases methane, a potent greenhouse gas, accelerating climate change. Example: Increased methane emissions in permafrost-rich Ladakh contribute to global warming.
Where is permafrost most extensively found in Jammu & Kashmir and Ladakh?
Ladakh Plateau & Karakoram Range: Cold-arid climate with high-altitude plateaus and glaciated mountains supports extensive permafrost. Example: Nubra Valley and Changthang Plateau have widespread permafrost due to sub-zero temperatures year-round.
Drass & Zanskar Region: Known as the “Gateway to Ladakh,” Drass is one of the coldest inhabited places in India. Example: Drass (often recording temperatures below -30°C) and Zanskar Valley exhibit permafrost in high-altitude zones.
Upper Indus River Basin: The cold, high-altitude valleys along the Indus River, particularly in the Leh region, have significant permafrost. Example: Permafrost is found in areas along the Indus near Leh, impacting groundwater storage and hydrology.
Siachen Glacier & Surrounding Areas: One of the highest and coldest battlefields in the world, sustaining year-round permafrost. Example: Permafrost is critical in maintaining the stability of the Siachen Glacier and surrounding military outposts.
Higher Reaches of Kargil: Some parts of Kargil, particularly in remote high-altitude areas, experience permafrost conditions. Example: Permafrost is found in higher elevations of Kargil, but lower valleys may lack continuous permafrost.
Which regions lack permafrost coverage?
Kashmir Valley (Srinagar, Anantnag, Baramulla): Relatively lower altitude with temperate climate prevents permafrost formation. Example: Srinagar, despite cold winters, does not have permafrost due to warmer summer temperatures.
Jammu Region (Jammu, Udhampur, Kathua): Lower altitude and subtropical climate make permafrost formation impossible. Example: Jammu city has hot summers and mild winters, ruling out any permafrost presence.
Pir Panjal Range: Lower altitude than the Greater Himalayas, experiencing seasonal snow rather than permanent permafrost. Example: Gulmarg and Poonch receive heavy snowfall but do not sustain permafrost.
Chenab and Jhelum River Valleys: Warmer valley temperatures prevent permafrost formation, though higher peaks may have seasonal ice. Example: Areas like Pahalgam and Kupwara experience snow cover but lack permafrost due to fluctuating temperatures.
Lower Altitudes of Kargil and Leh: While upper reaches have permafrost, lower valleys experience enough summer warmth to prevent it. Example: Kargil town itself does not have permafrost, but surrounding mountains do.
What are the causes of the thawing of permafrost?
Rising Global Temperatures (Climate Change): Increased greenhouse gas emissions lead to higher atmospheric temperatures, accelerating permafrost thaw. Example: In Ladakh, rising temperatures have led to permafrost degradation in the Changthang Plateau, impacting traditional grazing lands.
Infrastructure Development & Human Activities: Roads, buildings, and military installations generate heat, disrupting the thermal balance of permafrost. Example: The construction of roads like the Zojila Tunnel and military bases in Siachen has contributed to localized permafrost thaw.
Reduced Snow Cover & Glacial Retreat: Snow acts as an insulating layer, preventing permafrost from direct exposure to warming air. Reduced snowfall accelerates melting. Example: The retreat of glaciers in Zanskar Valley has exposed underlying permafrost to warmer temperatures, leading to faster thawing.
Increased Rainfall & Changing Precipitation Patterns: More rainfall instead of snowfall leads to surface warming, infiltrating the soil and speeding up permafrost thaw. Example: Parts of Drass have seen changing precipitation patterns, where more rain in summer accelerates permafrost degradation.
Forest Fires & Loss of Vegetation Cover: Vegetation helps insulate the ground; its loss due to deforestation or fires exposes permafrost to direct heat. Example: In Ladakh, overgrazing by livestock in Changthang Wildlife Sanctuary has led to soil erosion, increasing permafrost vulnerability.
What are the steps taken by the government?
Monitoring and Research Initiatives: The Indian government, in collaboration with research institutions like the Defence Geoinformatics Research Establishment (DGRE) and Wadia Institute of Himalayan Geology (WIHG), is conducting studies on permafrost dynamics in Ladakh and Jammu & Kashmir. Example: DGRE has set up monitoring stations in Drass, Kargil, and Siachen to study permafrost stability and assess risks to infrastructure.
Climate Resilient Infrastructure Development: The Border Roads Organisation (BRO) is adopting new engineering techniques, such as thermosyphons and insulated road layers, to prevent permafrost degradation in road and tunnel construction. Example: In the construction of the Zojila Tunnel, special insulation techniques are being used to minimize heat impact on permafrost.
Afforestation and Sustainable Land Management: Programs under CAMPA (Compensatory Afforestation Management and Planning Authority) and National Mission on Himalayan Studies (NMHS) aim to restore vegetation cover, which helps maintain permafrost stability. Example: Reforestation efforts in Changthang Wildlife Sanctuary and Ladakh’s high-altitude areas help in reducing soil erosion and insulating the permafrost layer.
Way forward:
Integrating Climate-Resilient Infrastructure Planning: Adopt permafrost-friendly construction techniques, such as thermosyphons and passive cooling methods, in strategic roads, hydropower projects, and military installations to minimize thawing-related damage.
Strengthening Monitoring and Adaptive Strategies: Expand permafrost monitoring networks, enhance research on thaw impacts, and implement community-based adaptation measures, such as sustainable grazing and afforestation, to mitigate long-term environmental risks.
India is adopting a conciliatory approach towards China, with improving ties since the 2020 border clashes.
Why has India adopted a more conciliatory stance towards China in recent months?
De-escalation of Border Tensions: India and China have gradually disengaged from multiple friction points along the Line of Actual Control (LAC) since the 2020 Galwan clashes. Example: In October 2023, both sides agreed to withdraw troops from the last two major standoff points in eastern Ladakh.
Economic Considerations: China remains India’s largest trading partner, with bilateral trade reaching record levels despite political tensions. Example: In 2023, India’s imports from China exceeded $100 billion, highlighting the economic interdependence.
Strategic Uncertainty in U.S. Policy: With the U.S. showing unpredictability under the Trump administration, India may seek to hedge its bets by stabilizing ties with China. Example: Trump’s reluctance to support Ukraine and potential shifts in U.S. Asia policy raise concerns about long-term American commitments.
Focus on Domestic Growth and Development: India aims to maintain economic stability and avoid prolonged military confrontations that could divert resources from development. Example: Infrastructure projects like “Make in India” and semiconductor manufacturing require a stable geopolitical environment.
Maintaining Diplomatic Leverage: A balanced approach allows India to engage with multiple global powers while keeping strategic options open. Example: While signaling reconciliation with China, India continues military exercises with the Quad (U.S., Japan, Australia) to maintain leverage.
How does the shifting U.S. foreign policy under the Trump administration impact India’s strategic choices regarding China?
Uncertainty Over U.S. Security Commitments: Trump’s ambiguous stance on global security, including reduced support for Ukraine, raises doubts about America’s reliability in countering China’s aggression. Example: The U.S. halted intelligence sharing on Russian missile threats to Ukraine, signaling potential unpredictability in military alliances.
Possibility of a U.S.-China Grand Bargain: Trump’s transactional diplomacy suggests he may prioritize economic deals with China over strategic containment, potentially sidelining India’s concerns. Example: His approach to Russia—offering compromises for economic gains—hints at a similar possibility with China, affecting Indo-U.S. strategic alignment.
Pressure on India to Strengthen Self-Reliance: With the U.S. potentially scaling back its role in Asia, India must enhance its military capabilities and deepen partnerships with other allies. Example: India has intensified defense cooperation with Japan, Australia, and France while increasing indigenous military production (e.g., Tejas fighter jets, submarine projects).
What military limitations has India faced in recent years despite rising security challenges?
Delayed Modernization and Declining Defense Budget: India’s defense spending as a share of GDP has steadily declined over the past decade, limiting critical investments in military modernization. Example: The Indian Air Force still operates outdated MiG-21 fighters, with delays in acquiring Rafale jets and indigenous Tejas aircraft.
Slow Progress in Indigenous Defense Manufacturing: Despite initiatives like Atmanirbhar Bharat (Self-Reliant India), India remains dependent on foreign arms suppliers, leading to procurement delays. Example: The Project 75I submarine program has seen repeated delays, affecting the Navy’s ability to counter China’s growing maritime presence.
Limited Military Buildup Despite Border Tensions: After the 2020 Ladakh standoff, India disengaged from key incursion sites but did not significantly increase troop deployments or infrastructure in vulnerable areas. Example: While China rapidly built roads, bridges, and airstrips near the Line of Actual Control (LAC), India’s infrastructure development in border areas has lagged.
Who are India’s key partners in military cooperation?
United States (U.S.): India and the U.S. have strengthened defense ties through agreements like COMCASA, BECA, and LEMOA, facilitating intelligence sharing and logistics support. Example: India participates in the Malabar naval exercise with the U.S., enhancing interoperability in the Indo-Pacific region.
Russia: Russia remains a key defense supplier, providing advanced weaponry, including fighter jets, submarines, and missile systems. Example: India procured the S-400 air defense system from Russia despite U.S. pressure and CAATSA sanctions concerns.
France: France is a crucial partner in aerospace and naval defense cooperation, supplying high-end military equipment. Example: India acquired Rafale fighter jets from France and is collaborating on Scorpene-class submarines under Project 75.
Israel: India-Israel defense ties focus on advanced technology, particularly in missile defense, drones, and cyber warfare. Example: India procured Barak-8 missile defense systems and Heron UAVs from Israel for border security.
Quad Partners (Japan & Australia): India’s partnerships with Japan and Australia focus on maritime security, intelligence sharing, and defense exercises. Example: The India-Japan 2+2 ministerial dialogue and AUSINDEX naval exercise with Australia boost strategic ties in the Indo-Pacific.
How can operational coordination help strengthen India’s strategic position? (Way forward)
Enhanced Interoperability with Allies: Regular joint exercises improve coordination between India and its military partners, ensuring seamless cooperation in real-world conflicts. Example: The Malabar Naval Exercise with the U.S., Japan, and Australia enhances India’s naval capabilities in the Indo-Pacific.
Force Multiplication through Intelligence Sharing: Coordinated intelligence sharing provides India with real-time situational awareness, helping in threat assessment and strategic planning. Example:BECA agreement with the U.S. enables India to access geospatial intelligence, improving precision targeting and surveillance.
Deterrence Against Aggression: Strengthened operational coordination signals military preparedness, discouraging adversaries from engaging in aggressive actions. Example: Joint patrols with France in the Indian Ocean demonstrate India’s extended reach and deterrence capabilities.
Mains PYQ:
Question: ‘The West is fostering India as an alternative to reduce dependence on China’s supply chain and as a strategic ally to counter China’s political and economic dominance.’ Explain this statement with examples. (UPSC 2024)
Reason:This question directly addresses the strategic implications of China’s rise and India’s potential role in countering it, which is relevant to the theme of deterrence.
The UNEP’s Food Waste Index Report 2024 shows that 1.05 billion tonnes of food were wasted in 2022, about 20% of the world’s food. India is a major contributor, making this a serious environmental and ethical issue.
What are the key differences between food waste and food loss as per the Food Waste Index Report (FWIR) 2024?
Food Waste: It includes both edible and inedible parts discarded at the consumer and retail levels (households, restaurants, supermarkets, etc.). It happens due to over-purchasing, poor storage, and cultural habits of excess food preparation.
Food Loss: It occurs earlier in the supply chain (from production to retail) due to inadequate storage, transportation, handling, and infrastructure failures.
Why does the food waste in India pose a significant environmental and social challenge?
Worsens Hunger and Food Insecurity: Despite being a major food producer, over 20 crore Indians go to bed hungry while 78 million tonnes of food are wasted annually. Example: Tons of edible surplus food from weddings and restaurants are discarded instead of being redistributed to the needy.
Increases Greenhouse Gas Emissions: Food waste in landfills decomposes and releases methane, a greenhouse gas 25 times more potent than CO₂. Example: India’s food waste contributes 10%-12% of total municipal waste, significantly impacting climate change.
Wastage of Natural Resources: Food production requires land, water, and energy. Wasting food means wasting these scarce resources. Example: It takes 1,800 liters of water to produce just 1 kg of rice—if wasted, all that water is also wasted.
Economic Loss and Financial Burden: Wasting food leads to huge financial losses for households, businesses, and the economy. Example: Retailers discard unsold perishable foods like dairy and fruits due to short shelf life, leading to billions of rupees in losses annually.
Aggravates Climate Change and Natural Disasters: Increased food demand due to waste leads to deforestation, soil degradation, and excessive water usage, worsening environmental crises. Example: Rising extreme weather events (droughts, floods) impact crop production, making food security more vulnerable.
Where in the food supply chain do inefficiencies lead to high levels of food wastage in India?
Post-Harvest Losses (Farm Level): Poor harvesting techniques and lack of proper drying/storage cause significant losses. Example: Grains left in open fields get damaged by rain, pests, or rodents due to inadequate storage facilities.
Storage and Transportation Issues: Inadequate cold storage and poor transportation infrastructure lead to spoilage, especially for perishable goods. Example: Fruits and vegetables rot in transit due to a lack of refrigerated trucks, particularly in rural areas.
Retail and Market-Level Losses: Supermarkets and local markets discard unsold food due to short shelf life, improper handling, and strict quality standards. Example: Bruised or oddly shaped vegetables and fruits are rejected and thrown away by vendors, even if they are edible.
Household-Level Waste: Over-purchasing, improper meal planning, and poor storage lead to significant food waste in homes. Example: Families discard leftovers or expired groceries because they were not consumed in time.
Food Service Industry (Hotels, Restaurants, and Caterers): Large-scale food preparation for events, hotels, and restaurants results in excess food being thrown away. Example: Buffet-style dining in weddings and hotels often leads to tons of uneaten food being discarded instead of redistributed.
What are the steps taken by the Indian Government?
“Save Food, Share Food” Initiative: A program launched to redistribute surplus food from individuals, businesses, and organizations to the needy. Example: Collaboration with NGOs and food banks ensures excess food from weddings, hotels, and events is shared rather than wasted.
Strengthening Cold Storage and Supply Chain Infrastructure: Investment in cold storage facilities and refrigerated transport to reduce post-harvest losses. Example: The Pradhan Mantri Kisan SAMPADA Yojana supports food processing industries to improve storage and preservation.
Amendments in Food Safety and Standards Regulations: The Food Safety and Standards Authority of India (FSSAI) encourages supermarkets and restaurants to donate surplus food instead of discarding it.Example: The Food Sharing Guidelines (2019) enable food redistribution through certified food banks and NGOs.
Awareness Campaigns and Behavioral Change Initiatives: Government-led campaigns promote responsible food consumption, meal planning, and waste reduction. Example: The Indian Food Sharing Alliance (IFSA), launched by FSSAI, connects food businesses and NGOs to reduce waste.
Support for Food Processing and Preservation: Encouraging food processing industries to convert surplus produce into value-added products like dried, frozen, or packaged foods. Example: The government provides subsidies and incentives for food processing units under schemes like the Mega Food Parks Scheme to reduce waste.
Way forward:
Strengthening Food Redistribution Networks: Expand and streamline food donation mechanisms through digital platforms connecting surplus food sources (hotels, supermarkets, households) with NGOs and food banks. Example: A nationwide food-sharing app can help track surplus food and ensure efficient redistribution to the needy.
Improving Supply Chain Efficiency with Technology: Leverage AI, IoT, and blockchain for real-time monitoring of food storage, transport conditions, and expiry tracking to reduce wastage. Example: Smart sensors in cold storage and logistics can alert businesses to temperature fluctuations, preventing spoilage of perishable items.
Mains PYQ:
Question: Discuss the consequences of climate change on the food security in tropical countries. (UPSC 2017)
Reason: This question connects climate change to food security, a situation that could be exacerbated by food wastage.
N4S: This article dives deep into the care economy, exploring how unpaid care work -mostly done by women – shapes the economy but remains invisible in GDP calculations. It also evaluates Budget 2025 to see if it addresses these concerns.
UPSC has explored questions on budget provisions, economic structures and social issues, often in an interlinked manner. Questions like “How can care economy be brought into the monetized economy?” (PYQ 2023) test both conceptual clarity and real-world application. Aspirants often falter in such topics by either missing data-driven arguments (like the NSSO Time Use Survey, which shows women spend 3x more time on unpaid work than men) or failing to connect theoretical frameworks to practical solutions (e.g., how investing in care services could create 11 million jobs in India).
This article directly addresses these gaps by not only explaining what the care economy is but also linking it to policy action. It discusses the impact of unpaid care work on GDP (₹22.7 lakh crore contribution, yet unrecognized), evaluates Budget 2025’s indirect wins (like investments in Anganwadis and gig worker welfare), and highlights missed opportunities (lack of formal recognition for unpaid care work). One standout feature of this piece is its structured “Back2Basics” section, which analyses the impact of care economy of Female Labour Force participation to give you a broader picture.
PYQ Anchoring
GS 3: Distinguish between ‘care economy’ and ‘monetized economy’. How can care economy be brought into monetized economy through women empowerment? [2023]
GS 3: One of the intended objectives of Union Budget 2017-18 is to ‘transform, ener gize and clean India’. Analyse the measures proposed in the Budget 2017-18 to achieve the objective. [2017]
Microtheme: Care X Monetized Economy, Current Budget
While hearing a case on insurance compensation for a deceased couple – where the man was a professional and the woman a homemaker – the Supreme Court ruled that the notional income of a homemaker should account not just for her work but also her sacrifices. This wasn’t the first time.
Back in 2021, Kamal Haasan’s Makkal Needhi Maiam (MNM) party brought the conversation into the political mainstream by proposing “due recognition” for unpaid housework in its election manifesto. While paying women for housework within the current system may seem far-fetched, even assigning a notional income helps push the conversation forward—acknowledging housework as work and its place in the economy.
According to NSSO’s Time Use Survey 2019, a staggering 92% of women (aged 15-59) reported doing daily housework, compared to just 29% of men. Women also spend three times more time on domestic chores than men (299 minutes vs. 97 minutes daily).
To make things worse, many working women face the double burden of both professional and domestic responsibilities, often at the cost of their productivity and career growth. The International Labour Organization (ILO) estimates that unpaid care work contributes 9% to the global economy, yet remains largely unmonetized and invisible.
So, where do we go from here? From productivity losses to GDP calculations, the care economy plays a crucial yet overlooked role in shaping national and global economies. Understanding its impact could change the way we view economic growth itself.
Impact of Care Economy on GDP
Parameter
Contribution to GDP & Economy
Unpaid Care Work
– Unpaid care work contributes 15%-17% of GDP (based on 2019 Time Use Survey). – Using minimum wage method: 15% of GDP. – Using weighted average wage method: 17% of GDP.
Total Unpaid Work
– SBI Report (2023) estimates unpaid work contributes ₹22.7 lakh crore (7.5% of GDP).
Impact of Gender Disparities
– Reducing gender gaps in unpaid work could boost India’s GDP by 27%.
Job Creation in Paid Care Sector
– Investing in care services could create 11 million jobs in India. – Globally, care sector growth could generate 475 million jobs by 2030 (ILO data).
Broader Economic Benefits
– Expanding the care economy can increase female labor participation, boosting overall economic growth. – Strengthening care services fosters women-led businesses and entrepreneurship opportunities.
India’s care economy is already a major but undervalued contributor to GDP. Investing in care services and reducing gender inequalities can unlock massive economic growth and job opportunities.
Does Budget 2025 Address the Needs of India’s Care Economy?
Budget 2025 partially addresses the care economy through indirect measures, but it lacks a direct, structured approach to solving core issues like unpaid care work, formalizing care jobs, and large-scale care infrastructure investment.
Budget 2025: Indirect Wins for the Care Economy
Positive Impact
How Budget 2025 Helps
Substantiation (Data/Examples)
Support for Women (Nari Focus)
Women’s empowerment initiatives could benefit those engaged in unpaid care work.
Women in India perform 312 minutes of unpaid care work per day compared to men’s 31 minutes (OECD, 2019). Recognizing this through targeted policies would help bridge this gap.
Childcare & Nutrition (Anganwadis & Poshan 2.0)
Strengthening Saksham Anganwadi & Poshan 2.0 could improve early childhood care and nutrition.
India has 1.37 million Anganwadi centers, but many lack proper infrastructure. More investment is needed to improve accessibility (MoWCD Report, 2022).
Healthcare Expansion (Medical Education & Cancer Day Care Centers)
More doctors, hospitals, and specialized cancer care centers indirectly benefit the care economy.
India has 1 doctor per 1,511 people, below the WHO standard of 1:1,000. Expanding medical education could improve this (NMC, 2023).
If care workers (e.g., home nurses, elderly caregivers) are included, they may receive healthcare benefits.
The e-Shram portal has registered 29.8 crore unorganized workers, but formal recognition of care workers remains unclear (MoLE, 2023).
MSME & Entrepreneurship Support
Women-led care businesses (daycares, elderly care services) could benefit from easier credit access.
98% of women entrepreneurs in India operate micro-enterprises, many in caregiving sectors, yet face difficulty securing loans (IFC, 2022).
Skill Development Initiatives
More National Skill Centers could improve the training of care workers.
India needs 2 million additional eldercare workers by 2050 due to a rapidly aging population (UNFPA, 2021).
State-Level Capital Investments
50-year interest-free loans to states could fund care infrastructure if prioritized.
Kerala has state-funded elderly care schemes, but most states lack structured care investments (Economic Review, 2023).
Budget 2025: Missed Opportunities for the Care Economy
Missing Area
What’s Lacking in Budget 2025
Substantiation (Data/Examples)
No Recognition of Unpaid Care Work
The budget does not propose policies to reduce, redistribute, or recognize unpaid care work.
Women’s unpaid labor contributes $10 trillion globally, yet remains unrecognized in GDP calculations (ILO, 2018).
Limited Focus on Care Jobs & Wages
No provisions for minimum wages, job security, or benefits for domestic workers and caregivers.
India has 4 million domestic workers, many of whom lack legal protections and social security (PLFS, 2022).
No Large-Scale Care Infrastructure Investment
No direct funding for daycares, eldercare homes, or disability care centers.
Only 0.3% of India’s GDP is spent on care-related infrastructure, compared to 2% in OECD countries (World Bank, 2022).
No Private Sector Incentives for Care Services
No tax breaks or subsidies for private investments in the care sector.
Japan offers tax incentives for elderly care businesses, leading to 50% growth in eldercare services (Japan Care Economy Report, 2021).
No Data Collection on Care Work
No new initiatives for tracking unpaid and paid care work trends.
India’s Time Use Survey (2019) was the first in 20 years to measure unpaid care work, but needs continuous updates for policy action.
Way Forward
Acknowledging unpaid care work is important, but the real challenge lies in translating recognition into policy and economic reform. Governments and institutions need to explore solutions like care credits, paid family leave, social security benefits, and workforce inclusion policies to ensure women’s labor—both paid and unpaid—is valued. Some of such policies are:
Policy Pillar
Key Focus
Recommendations
1. Leave Policies
Helping people balance work and caregiving
– Support maternity leave costs for small businesses – Introduce parental leave for both parents – Encourage employers to offer care-related leave and flexible work options
2. Subsidies for Care Services
Making care services more affordable
– Provide financial support to Self-Help Groups (SHGs) for childcare and elder care – Offer tax benefits to women-led small businesses in the care sector – Expand government-backed childcare schemes like Palna
3. Investment in Care Infrastructure
Building more care facilities
– Increase funding for childcare centers – Develop government-supported care homes for elderly, disabled, and long-term care – Attract private investment through Public-Private Partnerships (PPPs)
4. Skill Training for Care Workers
Improving the quality of care services
– Create structured training and certification programs – Encourage private institutes to offer care-related training – Partner with international organizations to enhance training quality
5. Quality Assurance & Regulation
Ensuring high standards in care services
– Set up national and state-level monitoring systems – Collect gender-based data on paid and unpaid care work – Establish a Care Sector Skill Council to regulate training and service quality
#BACK2BASICS: IMPACT OF CARE ECONOMY ON FEMALE LABOUR FORCE PARTICIPATION
Comparison of Time Spent on Unpaid Work by Gender in India
There is a stark gender disparity in the time spent on unpaid work in India, with women shouldering a significantly heavier burden than men.
Women Spend More Time on Unpaid Work
Women of working age (15-59 years) spend an average of 5.6 hours daily on unpaid household work, whereas men in the same age group contribute only 30 minutes.
Employed women dedicate 5.8 hours to unpaid tasks, significantly more than employed men, who spend just 2.7 hours.
Unemployed men spend under four hours on unpaid work, still far less than the seven hours spent by women in the same category.
Rural vs. Urban Divide
The gender gap is more pronounced in urban areas, where women spend 9.6 times more time on unpaid care work than men.
In rural areas, the disparity is slightly lower but still substantial, with women spending 8.2 times more than men.
Weekly and Overall Impact
On a weekly basis, women spend 36 hours on unpaid tasks, compared to just 16 hours for men.
93% of working women perform unpaid domestic services for their families, while only 31% of working men do the same.
Women outside the labour force undertake 11.5 times more unpaid work than their male counterparts.
This persistent gender gap not only reinforces traditional gender roles but also limits women’s participation in the formal economy, ultimately impacting India’s economic growth. Addressing this imbalance could significantly improve women’s access to paid employment and contribute to the country’s GDP.
Impact of Unpaid Care Work on Female Labour Force Participation
Key Impact
Explanation
Supporting Data/Examples
Primary Barrier to Workforce Entry
Unpaid care work limits women’s time and energy for formal employment.
ILO Report: Unpaid care work is a major barrier preventing women from entering the labor force.
Declining Female Labour Force Participation Rate (LFPR)
Caregiving responsibilities contribute to low LFPR in India.
PLFS 2022-23: Female LFPR in India rose to 37% (from 23.3% in 2017-18), but mainly in self-employment, not formal jobs.
Underemployment & Labour Underutilization
Women often take up low-paying, part-time jobs due to caregiving duties.
ILO 2018: Women are overrepresented in informal, part-time, and unpaid family work.
“Double Burden” of Work
Employed women also handle most domestic care work, increasing stress and limiting career growth.
ILO 2018: Employed women spend 6x more time on unpaid care than men.
“Time Poverty” Reduces Productivity
Excessive unpaid work restricts women’s ability to engage in paid labor and skill-building.
2019 Time Use Survey: Working-age women spend 7 hours/day on unpaid work.
Reinforces Gender Norms
Cultural expectations push women toward care work, limiting career choices.
ILO 2022: Women’s workforce participation is higher in countries with strong caregiving support systems.
Lack of Support Systems
Insufficient childcare and eldercare services increase women’s unpaid workload.
World Bank 2022: India spends only 0.3% of GDP on care-related infrastructure (OECD average: 2%).
Unpaid care work directly limits women’s workforce participation, pushing them into informal jobs, reducing work hours, and reinforcing gender inequality. Policy interventions like subsidized childcare, parental leave, and flexible work arrangements are essential for boosting female employment.
The 20th meeting of the Commission on Genetic Resources for Food and Agriculture (CGRFA-20) is currently underway in Rome.
AboutCommission on Genetic Resources for Food and Agriculture (CGRFA)
The CGRFA is the only permanentintergovernmental body addressing all components of biodiversity-related to food and agriculture.
It was established in 1983 as the Commission on Plant Genetic Resources for Food and Agriculture.
It operates under the Food and Agriculture Organization (FAO) of the United Nations.
It aims to create international consensus on managing biodiversity in food systems and ensuring the fair and equitable sharing of benefits from these genetic resources.
Membership: 179 countries (including India) and the European Union
Focus: Coordinates global efforts on biodiversity affecting agriculture, forestry, livestock, and aquatic species, including pollinators, soil organisms, and other vital species for food production.
Structure and Mandate
Structure:
Governed by a biennial session where member countries discuss and make decisions.
A bureau, elected by member states, guides the Commission’s work.
The CGRFA Secretariat, hosted by FAO, offers technical and logistical support.
Mandate:
Policy Formulation: Develops global action plans, codes of conduct, and policy instruments for sustainable use and conservation of genetic resources for food and agriculture.
Global Assessments: Guides preparation of periodic assessments to monitor the status and trends of genetic resources and biodiversity.
Sustainable Use of Biodiversity: Promotes biodiversity use for food security, sustainable agriculture, and climate adaptation.
Fair and Equitable Benefit Sharing: Ensures fair distribution of benefits from genetic resources, especially plant materials under international treaties.
Achievements:
International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA): Adopted in 2001, it recognizes farmers’ contributions to crop diversity and provides a global system for accessing plant genetic materials for breeders, farmers, and scientists.
[UPSC 2014] Consider the following international agreements:
1. The International Treaty on Plant Genetic Resources for Food and Agriculture
2. The United Nations Convention to Combat Desertification
3. The World Heritage Convention
Which of the above has / have a bearing on the biodiversity?
Options: (a) 1 and 2 only (b) 3 only (c) 1 and 3 only (d) 1, 2 and 3
India is set to strengthen its military and maritime ties with African nations through two significant initiatives—Exercise Aikeyme (Africa-India Key Maritime Engagement) and IOS Sagar (Indian Ocean Ship Sagar).
About Exercise Aikeyme
Aikeyme is India’s first-ever multilateral naval exercise with 10 African nations, aimed at improving maritime cooperation, enhancing maritime security, and addressing regional threats.
It will be held off Dar-es-Salaam, Tanzania, from April 13 to 18, 2025.
The nations taking part include Tanzania (co-host), Comoros, Djibouti, Eritrea, Kenya, Madagascar, Mauritius, Mozambique, Seychelles, and South Africa.
It is aimed at increasing interoperability between the Indian Navy and African navies, with a focus on combating common threats like piracy and drug trafficking.
The goal is to make this exercise a biennial event and expand participation in future editions to include West African nations.
Key Features:
Visit Board Search and Seizure (VBSS) drills.
Arms firing exercises.
Helicopter operations.
Search and rescue missions.
Table-top and command post exercises on anti-piracy operations and information-sharing.
IOS Sagar (Indian Ocean Ship) Initiative
The IOS Sagar initiative focuses on deepening India’s maritime cooperation with IOR countries.
It involves the deployment of the Indian Navy’s INS Sunayna, which will be manned by a combined crew of Indian sailors and 44 personnel from nine African countries.
The initiative will take place from April 5 to May 8, 2025.
Key Participating Countries: Sri Lanka, Maldives, Mauritius, Comoros, Kenya, Madagascar, Mozambique, Seychelles, and South Africa.
Activities:
The ship will undertake port calls at Dar-es-Salaam, Nacala, Port Louis, Port Victoria, and Male.
The ship will also engage in joint surveillance of the Exclusive Economic Zones (EEZs) of Tanzania, Mozambique, Mauritius, and Seychelles.
The personnel will undergo two-week training capsules at Kochi, including sea training, watchkeeping, and other professional naval activities.
This newscard is an excerpt from the original article published in ‘The Hindu’.
AboutLapis Lazuli
Lapis lazuli is a deep-blue metamorphic rock prized for its vibrant colour, often used in jewellery and decorative items.
It is composed mainly of lazurite, with other minerals like calcite and pyrite, which give it its characteristic golden specks.
It is mainly found in Afghanistan’s Badakhshan province, though it is also present in Chile, Russia, and the US.
It has been valued since ancient times, particularly in Egypt, Mesopotamia, and Greece, and is known for its use in making pigments, especially ultramarine.
Lapis Lazuli in Indus Valley Civilization (IVC):
The Indus Valley Civilization (IVC) (3300-1900 BC) had extensive trade with Mesopotamia and Afghanistan, where lapis lazuli was imported.
It was used for beads and ornaments found at Mohenjo-daro and Harappa, underscoring its value in Indus jewellery.
It was a sacredstone, often used in beads, pendants, and amulets, symbolizing spirituality and high social status.
It was likely associated with religious ceremonies and used to represent the gods.
The Indus people were skilled at bead-making, often combining lapis lazuli with other stones, such as gold.
The intricate designs, including incised or painted beads, reflect their technical expertise.
Other Semi-Precious Stones Found in IVC:
Several semi-precious stones were used by the IVC to create jewellery and ornaments:
Carnelian beads were made into pendants and rings, valued for their reddish-orange hue and durability.
Amethyst beads, a purple quartz variety, were also used, likely imported from other regions.
Jasper, a chalcedony variety, was used for beads and pendants, valued for its earthy tones.
Turquoise was used in beads, often combined with lapis lazuli and carnelian.
Steatite (Soapstone) was used for seals and beads, often engraved with animal motifs or symbols.
Crystal and quartz were used for translucent beads, adding a mystical quality to jewelry.
Gold, combined with semi-precious stones like lapis lazuli, carnelian, and turquoise, was extensively used in necklaces, bracelets, and earrings.
[UPSC 2023] Lothal, a significant site of the Indus Valley Civilization, was particularly well-known as a:
(a) major agricultural centre
(b) centre for textile production
(c) major trade hub for beads, gems, and ornaments
