Exploratory drilling for oil and gas has been approved within the eco-sensitive zone surrounding the Hollongapar Gibbon Wildlife Sanctuary.
About the Hollongapar Gibbon WLS
Hollongapar Gibbon Wildlife Sanctuary was initially established as Hollongapar Reserve Forest in 1997 and renamed in 2004.
It is the only habitat for hollockgibbons in India.
Located in Assam, with the Bhogdoi River along its northern boundary.
Biome classified as plains alluvial semi-evergreen forests with patches of wet evergreen forests.
Flora:
Upper canopy: Dominated by Hollong trees (Dipterocarpus macrocarpus), Sam, Amari, Sopas, Bhelu, Udal, and Hingori.
Middle canopy: Features Nahar trees.
Lower canopy: Composed of evergreen shrubs and herbs.
Fauna:
Primates: Includes Hoolock Gibbons, Bengal Slow Loris (only nocturnal primate in Northeast India), stump-tailed macaques, northern pig-tailed macaques, eastern Assamese macaques, rhesus macaques, and capped langurs.
Other mammals: Indian elephants, tigers, leopards, jungle cats, wild boars, civets, squirrels, and more.
About the Hoolock Gibbons:
Gibbons are the smallest and fastest apes, and they inhabit tropical and subtropical forests across Southeast Asia.
It is the only ape specie found in India.
They possess high intelligence, exhibit distinct personalities, and have strong familial bonds, reflecting characteristics similar to other ape species.
The current population of hoolock gibbons is estimated at around 12,000, found primarily in Northeast India, Bangladesh, Myanmar, and southern China.
Two distinct species, the eastern hoolock gibbon (Hoolock leuconedys) and the western hoolock gibbon (Hoolock hoolock), were previously reported in India.
Conservation Status
IUCN Red List: the western hoolock gibbon is classified as Endangered, and the eastern hoolock gibbon is classified as Vulnerable.
Both gibbon species in India are placed under Schedule I of the Wildlife (Protection) Act, 1972.
PYQ:
[2010] Consider the following pairs:
Protected Area:: Well-known for
1. Bhitarkanika, Orissa :: Salt Water Crocodile
2. Desert National Park, Rajasthan :: Great Indian Bustard
3. Eravikulam, Kerala :: Hoolock Gibbon
Which of the pairs given above is/are correctly matched?
Q) ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC CSE 2017)
Q) The Gati-Shakti Yojana needs meticulous co-ordination between the government and the private sector to achieve the goal of connectivity. Discuss. (UPSC CSE 2022)
Mentor’s Comment: UPSC mains have always focused on Sustainable Development (2016, 2017, 2018 and 2022), and Budget Initiatives (2017 and 2021).
Currently, India holds only about 0.05% of the global market share in shipbuilding, significantly lower than competitors like China (47%), South Korea (30%), and Japan (17%). This disparity highlights that without addressing inefficiencies in container movement and logistics integration, infrastructure growth alone will not lead to meaningful progress.
The editorial discusses the recent positive developments in India’s shipping industry, particularly following the government’s announcements in the Union Budget 2025-26. This content can be used to present challenges in the Maritime Sector.
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Let’s learn!
Why in the News?
The Union Budget 2025-26 appears to have met most of the shipping industry’s demands; but it has missed an opportunity to address tax disparities.
What specific government initiatives are being introduced to support the shipping industry?
Maritime Development Fund (MDF): This initiative is the establishment of a MDF with an initial corpus of ₹25,000 crore which aims to provide long-term financing for the shipbuilding and maritime sectors, facilitating investment and growth within the industry.
Shipbuilding Financial Assistance Policy: The government has announced a revamp of the Shipbuilding Financial Assistance Policy (SBFAP) which aims to address cost disadvantages faced by domestic shipyards by providing direct financial subsidies, thereby encouraging local shipbuilding and enhancing competitiveness.
Customs Duty Exemptions and Incentives: This Budget extends customs duty exemptions on inputs and components used for manufacturing ships for more than 10 years.
Additionally, credit notes will be issued for shipbreaking activities, promoting a circular economy within the industry in order to make shipbuilding and recycling more competitive.
Extension of Tonnage Tax Scheme: The benefits of the existing tonnage tax scheme, which previously applied only to sea-going ships, will now be extended to inland vessels registered under the Indian Vessels Act, 2021.
This change aims to promote inland water transport and enhance the overall efficiency of the maritime sector.
Establishment of Shipbuilding Clusters: The Indian shipping industry has been advocating for the extension of the Shipbuilding Financial Assistance Policy (SBFAP) for another 10 years under the Amritkaal Maritime Vision 2047.
The government plans to facilitate the creation of shipbuilding clusters to increase capacity and capabilities in ship manufacturing.
How can these initiatives impact India’s position in the global shipping market?
Enhanced Global Competitiveness: By establishing the Maritime Development Fund and revamping financial assistance policies, India aims to boost its shipbuilding capabilities and reduce costs associated with ship construction and repair.
This could elevate India’s ranking in global shipbuilding from 22nd to potentially within the top 10 by 2030 and top 5 by 2047, thereby increasing its share of global ship tonnage from less than 1% to around 5%.
Improved Infrastructure and Efficiency: The government’s focus on port modernization through initiatives like the Sagarmala Programme and Maritime India Vision 2030 is set to enhance port infrastructure, logistics efficiency, and multimodal connectivity.
These improvements will reduce turnaround times for vessels and lower logistics costs, making Indian ports more attractive for international shipping lines and increasing cargo handling capacity significantly.
Attracting Foreign Investment: With a favorable investment climate that allows 100% Foreign Direct Investment (FDI) in port development, India is positioned to attract significant foreign capital into its shipping sector.
This influx of investment can lead to technological advancements, better operational practices, and increased capacity, further solidifying India’s role as a key player in global maritime trade.
What challenges does the Indian shipping industry face despite these positive developments?
High Costs and Financial Constraints: Indian shipyards face significant cost disadvantages compared to global competitors, particularly in terms of higher material and labor costs, as well as expensive financing options.
This results in a 25-30% cost disadvantage for Indian shipyards compared to those in countries like China and South Korea.
Additionally, the imposition of a 5% Goods and Services Tax (GST) on ship imports, which is not refunded for international operations, further strains financial resources for shipping companies.
Does the SARFAESI Act impact loan availability?
Under Section 31(d) of the SARFAESI Act, banks and financial institutions cannot create a security interest in vessels as defined by the Merchant Shipping Act, 1958.
This limitation means that lenders cannot easily seize and auction ships in case of loan defaults, which reduces their willingness to extend credit to shipowners.
The ongoing discussions about amending the SARFAESI Act to include provisions for ships indicate a recognition of these challenges.
By allowing banks to hold security interests in vessels, the government can enhance loan availability and create a more favorable environment for financing within the maritime sector.
Infrastructure Bottlenecks: Major Indian ports are grappling with issues such as congestion, inefficiency, and inadequate infrastructure to support increasing traffic volumes.
The growth in cargo traffic has outpaced the development of port facilities, leading to delays and higher operational costs.
For example, backlogs for rail freight have increased significantly, impacting the timely movement of goods.
Furthermore, labor strikes and outdated technology contribute to lower productivity at ports, making them less attractive to global shipping lines.
Dependence on Foreign Suppliers: Indian shipyards heavily rely on foreign suppliers for critical components and technology, which increases costs and complicates supply chains.
This dependency results in longer lead times for procurement and vulnerability to supply chain disruptions.
The lack of a robust domestic supply chain for high-tech maritime components further exacerbates these challenges, limiting the competitiveness of Indian shipbuilding firms.
Way Forward:
To realize its aspirations under the Amritkaal Maritime Vision 2047, India must prioritize investments in infrastructure, streamline regulatory processes, and foster a skilled workforce.
The path forward requires a concerted effort from all stakeholders to transform these challenges into opportunities for sustainable development in the maritime sector.
Establish a National Port Grid Authority to coordinate development across major and minor ports, promoting specialization and eliminating inter-port competition.
Implementing a hub-and-spoke model with mega ports acting as transshipment hubs can optimize cargo movement and efficiency.
Deploy Smart Port Infrastructure Management Systems (SPIMS) and introduce blockchain-based Port Community Systems to facilitate paperless and IoT based trade.
With the Union Budget now presented, this is the right time to focus on three important types of jobs India needs: climate-friendly jobs, jobs that can adapt to AI, and jobs that match people’s aspirations.
Why must long-term structural reforms in India focus on creating climate-resilient, AI-resilient, and aspiration-centric jobs?
Economic Stability & Climate Adaptation: Climate change threatens agriculture, infrastructure, and livelihoods. Structural reforms must promote green jobs in renewable energy (e.g., solar panel manufacturing, e-rickshaw deployment) and climate adaptation (e.g., afforestation, water conservation projects) to ensure sustainable economic growth.
Future-Proofing Against Automation: With AI disrupting traditional jobs, reforms should focus on AI-resilient employment by upskilling workers for roles in healthcare, education, and creative industries (e.g., AI-assisted medical diagnostics, digital marketing). This will help maintain workforce relevance and prevent large-scale job losses.
Inclusive & Aspirational Workforce: Youth and marginalized groups need jobs that match their ambitions. So, reforms should enhance opportunities in high-growth sectors like tourism, food processing, and local manufacturing (e.g., PM Vishwakarma Yojana for artisans, National Manufacturing Mission in textiles and electronics) to drive social mobility and economic dynamism.
What are the recent allocation of the budget for Jobs creation?
Skill Development Boost: The budget for the skill development ministry has nearly doubled to ₹6,017 crore for FY26, with ₹3,000 crore allocated for upgrading Industrial Training Institutes (ITIs) to enhance vocational training.
Targeted Job Creation: Over 21 lakh direct and indirect jobs are planned in fisheries, tourism, food processing, textiles, and electronics including 11 lakh under PM Matsya Sampada Yojana and 5.8 lakh under the PM Employment Generation Programme.
Sector-Specific Focus: Labor-intensive industries like footwear, leather, textiles, and electronics receive significant support, with initiatives like the Footwear Development Programme (₹350 crore) and the National Manufacturing Mission aiming to create 2-3 million jobs.
Support for Artisans: The PM Vishwakarma Yojana will uplift over 61 lakh artisans, promoting self-employment and economic inclusion for marginalized communities.
Infrastructure & Innovation: Five National Centres of Excellence for skilling will be established, alongside a ₹200 billion allocation for private sector-led R&D to drive technological advancements and job creation.
What types of jobs are necessary for achieving Viksit Bharat?
Manufacturing Jobs: Increasing the contribution of manufacturing to GDP from approximately 16% to 25% by 2030 is crucial. This requires creating jobs in various manufacturing industries, enhancing productivity, and reducing operational costs.
MSMEs are vital for employment generation. Policies aimed at supporting these enterprises can create millions of jobs by fostering entrepreneurship and innovation within local communities.
Boosting Rural Demand and Agricultural Reforms: Jobs that focus on modernizing agriculture through technology and sustainable practices can enhance productivity and create employment in rural areas. This includes initiatives that support local farmers and agricultural workers.
Skill Development Initiatives: With a strong emphasis on skilling the workforce, there is a need for jobs that require specialized training in sectors like technology, healthcare, and renewable energy.
Climate-Resilient Employment: As India faces significant challenges due to climate change, creating jobs focused on sustainability—such as in renewable energy sectors (solar, wind) and environmental conservation—will be critical for long-term resilience.
AI and Digital Economy Roles: With the rise of artificial intelligence and digital transformation, there is a growing demand for jobs that leverage technology. This includes roles in IT services, software development, data analysis, and digital marketing.
Service Sector Jobs: The service sector continues to be a significant contributor to employment in India. Focused efforts on improving service delivery in healthcare, education, and hospitality can create numerous job opportunities.
How can structural reforms in the economy facilitate job creation?
Enhancing Government Investment: Increased funding in infrastructure, education, and healthcare sectors directly correlates with job creation.
For instance, investments in rural infrastructure can stimulate local economies and create jobs in construction and services.
Promoting Industry Participation: Collaborating with industries for training programs ensures that the skills developed align with market needs, thereby improving employability. This approach can help bridge the gap between educational outcomes and industry requirements.
Supporting MSMEs: Strengthening micro, small, and medium enterprises (MSMEs) through financial incentives and easier access to credit can drive job creation. MSMEs are crucial for employment as they account for a significant portion of India’s workforce.
What role does government policy play in bridging the gap between formal and informal economies? (Way Forward)
Implementing Employment Schemes: Programs such as the Employment Linked Incentives (ELI) aim to create jobs through targeted financial support for employers who hire new employees.
This encourages formal employment while providing a safety net for workers transitioning from informal sectors.
Facilitating Skill Development: Policies focused on skill development ensure that workers are equipped with relevant skills for emerging sectors like technology and renewable energy.
This not only helps integrate informal workers into the formal economy but also enhances overall productivity.
Encouraging Entrepreneurship: By fostering an environment conducive to startups and small businesses through grants, tax incentives, and simplified regulations, the government can stimulate job creation across various sectors, particularly in rural areas where traditional job opportunities may be limited.
Mains PYQ:
Q The nature of economic growth in India in recent times is often described as a jobless growth. Do you agree with this view? Give arguments in favour of your answer. (UPSC IAS/2015)
The Ministry of Labour and Employment’s 2024 report indicates that all States and Union Territories must complete harmonization and pre-publication of draft rules for new Labour Codes by March 31, 2025, allowing for mental health provisions.
How does social inequality impact mental health access and outcomes?
Disparity in Access to Care: Social inequality leads to significant disparities in access to mental health care services. Individuals from lower socio-economic backgrounds, particularly blue-collar workers, often face barriers such as lack of awareness, stigma, and inadequate healthcare infrastructure, resulting in a treatment gap of 70% to 92% for mental disorders in India.
Workplace Conditions: Blue-collar workers frequently endure demanding jobs with poor working conditions, job insecurity, and inadequate pay, which can exacerbate mental health issues. These conditions contribute to higher rates of stress and mental disorders among this demographic compared to their white-collar counterparts.
Limited Legislative Protections: The existing labor laws primarily focus on physical safety and do not adequately address mental health concerns. This legislative gap perpetuates the marginalization of blue-collar workers in accessing mental health resources and support.
What legislative and policy changes are necessary to promote inclusivity in mental health care?
Rights-Based Framework: Establishing a rights and duty-based legislative framework that mandates employers to ensure both physical and mental well-being is crucial. This framework should include clear definitions of occupational diseases that encompass mental health issues arising from work conditions.
Inclusion of Mental Health in Labor Codes: The upcoming labor codes should explicitly incorporate provisions for mental health, creating a liability-based framework for employers to prioritize the mental well-being of their employees. This includes recognizing stress-related conditions as occupational hazards eligible for compensation.
Awareness and Accessibility Initiatives: Legislative measures should mandate employers to promote awareness of available mental health resources, such as helplines and support programs like Tele Manas, ensuring that blue-collar workers are informed and encouraged to seek help without stigma.
What are the steps taken by the government?
Implementation of National Mental Health Policies: The Indian government has implemented policies such as the National Mental Health Policy (2014), which emphasizes the integration of mental health services into primary healthcare.
Launch of Mental Health Initiatives and Helplines: Initiatives like Tele Manas, a government-run mental health support service, have been introduced to provide confidential telephonic counselling for individuals.
Increased Mental Health Awareness through Education and Campaigns: Programs like the “Mental Health Awareness Campaign” and partnerships with organizations like WHO have aimed to educate the public about mental health.
How can societal attitudes towards mental health be transformed to reduce stigma? (Way forward)
Education and Awareness Campaigns: Raising awareness through national and local campaigns can help normalize mental health discussions. For example, the “It’s Okay to Not Be Okay” campaign in India aimed at addressing mental health issues in the workplace.
Media Representation and Positive Portrayal: The media plays a significant role in shaping public attitudes. Portraying individuals with mental health issues as strong, resilient, and capable of leading successful lives can help shift negative perceptions. For instance, Bollywood movies like “Dear Zindagi”.
Involvement of Influential Figures: Public figures such as celebrities, politicians, and community leaders can be instrumental in reducing stigma by sharing their personal mental health stories. When Virat Kohli, an Indian cricketer, spoke openly about struggling with mental health issues, it made a powerful impact and encouraged others.
Mains PYQ:
Q ”Economic growth in the recent past has been led by increase in labour productivity.” Explain this statement. Suggest the growth pattern that will lead to creation of more jobs without compromising labour productivity. (UPSC IAS/2022)
Union Minister Nitin Gadkari announced that India will reach its goal of blending 20% ethanol with petrol in the next two months, a year earlier than planned. This will require producing about 1,100 crore litres of ethanol in a year.
Does India’s ethanol distillery industry have the capacity to produce large ethanol?
Current Production Capacity: India’s ethanol distillery capacity has significantly increased to 1,600 crore litres as of 2024-25, up from 423 crore litres in 2019-20. This expansion has been driven by government incentives and a stable market for ethanol.
Projected Production: To meet the target of 20% blending of ethanol in petrol, approximately 1,100 crore litres of fuel ethanol will be produced annually, with sugarcane expected to contribute around 400 crore litres this ethanol year.
Diverse Feedstocks: Ethanol production is now utilizing not just sugarcane but also high-grade molasses, broken rice, and maize, indicating a shift towards a more diversified feedstock strategy.
Government Support: The Indian government has implemented various measures to boost ethanol production, including reducing the Goods & Services Tax on ethanol and encouraging the establishment of grain-based distilleries.
Why have maize imports increased substantially in the past year?
Rising Demand for Ethanol: The increase in maize imports can be attributed to the government’s restrictions on using sugar and high-quality molasses for ethanol production, leading to a greater reliance on maize as an alternative feedstock for ethanol.
Import Figures: From April to June 2024, approximately ₹100 crore worth of maize was imported. For the fiscal year 2023-24, maize imports reached about $33 million, with total imports from April to November 2024 valued at $188 million.
Impact on Domestic Production: As farmers shift towards maize cultivation due to its lucrative potential for ethanol production, maize output is projected to reach around 42 million tonnes for the 2024-25 ethanol year, with an estimated 9 million tonnes available for ethanol production.
Market Adjustments: The growth in maize cultivation is expected to continue without necessitating further imports due to favourable conditions for Kharif crops this year. Farmers are increasingly diverting maize from traditional uses to meet the demands of the ethanol market.
What are the significance of the ethanol distillery industry?
Energy Security and Reduced Import Dependence: The ethanol distillery industry plays a crucial role in enhancing India’s energy security by reducing reliance on imported fossil fuels. By blending ethanol with petrol, India aims to substitute a significant portion of its crude oil imports, which account for over 87% of its needs.
Environmental Benefits: Ethanol production and blending contribute to significant reductions in carbon emissions and urban air pollution. Ethanol’s chemical properties allow for more complete combustion, which lowers harmful emissions such as carbon monoxide and particulate matter.
Economic Growth and Rural Development: The ethanol industry stimulates economic growth by providing additional income streams for farmers through the cultivation of sugarcane, maize, and other biofuel crops. This has led to increased investments in distilleries and agro-processing industries, creating jobs and revitalizing rural economies.
The government’s initiatives, such as the PM-JI-VAN Yojana, further incentivize ethanol production, ensuring stable farmer incomes and promoting diversification in agricultural practices.
Way forward:
Enhancing Domestic Maize Production: Strengthen R&D in high-yield maize varieties, improve irrigation infrastructure, and provide financial incentives to farmers to ensure a stable domestic supply for ethanol production, reducing import dependency.
Sustainable Feedstock Diversification: Promote second-generation (2G) biofuels using agricultural waste and non-food biomass to minimize food security concerns while maintaining ethanol production growth.
PYQ:
Q With reference to the usefulness of the by-products of sugar industry, which of the following statements is/are correct? (UPSC IAS/2022)
Bagasse can be used as biomass fuel for the generation of energy.
Molasses can be used as one of the feed stocks for the production of synthetic chemical fertilizers.
Molasses can be used for the production of ethanol.
Select the correct answer using the codes given below.
Promotes ex-situ conservation, ensuring crop diversity for future breeding, research, and sustainable farming.
PYQ:
[2021] What are the research and developmental achievements in applied biotechnology? How will these achievements help to uplift the poorer sections of society?
Sustainable Resource Utilization: Explore polymetallic nodules, which contain cobalt, nickel, manganese, and copper.
Significant Features:
Manned Submersible: MATSYA 6000:
Being developed by the National Institute of Ocean Technology (NIOT), Chennai.
Developed under Samudrayaan to carry three crew members for up to 12 hours of exploration (extendable to 96 hours in emergencies).
Designed for operation at a depth of 6,000 metres.
Equipped with life-support systems and scientific sensors.
Exploration of India’s Exclusive Economic Zone (EEZ):
Mapping the ocean floor for mineral resources.
Conducting geological and environmental studies for sustainable deep-sea mining.
PYQ:
[2022] With reference to the United Nations Convention on the Law of Sea, consider the following statements:
A coastal state has the right to establish the breadth of its territorial sea up to a limit not exceeding 12 nautical miles, measured from baseline determined in accordance with the convention.
Ships of all states, whether coastal or land-locked, enjoy the right of innocent passage through the territorial sea.
The Exclusive Economic Zone shall not extend beyond 200 nautical miles from the baseline from which the breadth of the territorial sea is measured.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
As part of the Azadi Ka Amrit Mahotsav, National Mission on Cultural Mapping (NMCM) introduced the Mera Gaon Meri Dharohar (MGMD) portal in June 2023, facilitating comprehensive documentation of the cultural heritage of 6.5 lakh villages across India.
About National Mission on Cultural Mapping (NMCM):
Details
Launched by the Ministry of Culture, Government of India and implemented by Indira Gandhi National Centre for the Arts (IGNCA).
Aims and Objectives
Document India’s cultural heritage, including art forms, artists, crafts, and performing arts.
Mapping of 6.5 lakh villages across India; Initial focus on Bihar.
IT-enabled platform to store and manage cultural data via a web portal and mobile app (Mera Gaon Meri Dharohar).
Significant Features
Database creation for cultural elements like oral traditions, art, customs, festivals, food, and historical landmarks.
National Register of Artists and Art Practices for cultural preservation.
Raising awareness about cultural heritage’s role in economic development and national unity.
Initiatives under the Mission
Mera Gaon Meri Dharohar (MGMD): Documents villages, focusing on culture, history, and traditions.
7 Categories of Cultural Data: Arts & Crafts, Ecology, Scholastic Traditions, Epics, History, Architecture, and Unique Features.
Sanskriti Pratibha Khoj: Identification of traditional artists through cultural mapping.
National Cultural Work Place and Outreach: Involves newsletters, magazines, booklets, advertisements, media, and content designing.
The National Green Tribunal (NGT) has sought a response from the Central government regarding the use of two highly invasive and alien fish species—Gambusia affinis (Mosquitofish) and Poecilia reticulata (Guppy)—as biological agents for mosquito control in multiple states.
Both species are classified as “invasive and alien” by the National Biodiversity Authority (NBA).
About Gambusia Affinis (Western Mosquitofish)
It has been widely introduced worldwide as a biological control agent to reduce mosquito populations.
The mosquitofish primarily feeds on mosquito larvae, small insects, and zooplankton.
Despite its intended benefits, Gambusia affinis has been identified as one of the world’s most invasive species.
It is highly aggressive and competes with native fish for resources.
It also preys on the eggs and juveniles of indigenous fish, amphibians, and invertebrates, leading to a decline in local biodiversity.
The Invasive Species Specialist Group (ISSG) has listed it among the 100 worst invasive species globally due to its harmful ecological impact.
About Poecilia Reticulata (Guppy, Millionfish, Rainbow Fish)
Poecilia reticulata, commonly known as the Guppy, Millionfish, or Rainbow Fish, is a small freshwater fish native to Northern South America and the Caribbean.
It is widely recognized for its vibrant colors and adaptability, making it a popular choice for both aquarium enthusiasts and mosquito control programs worldwide.
It is a highly adaptable species, capable of surviving in a variety of freshwater environments.
Guppies are omnivorous, feeding on mosquito larvae, small insects, algae, and organic detritus.
Their feeding habits make them a common choice for mosquito control programs, although their effectiveness is still debated.
While guppies are less aggressive than mosquitofish, their population growth can still disrupt local ecosystems.
PYQ:
[2023] ‘Wolbachia method’ is sometimes talked about with reference to which one of the following?
(a) Controlling the viral diseases spread by mosquitoes
(b) Converting crop residues into packing material
(c) Producing biodegradable plastics
(d) Producing biochar from thermo-chemical conversion of biomass
If you’re gearing up for the UPSC exam, you’ve probably read a lot about cash transfer schemes and their role in welfare. But did you skip over the challenges like financial sustainability or the need for community-driven models? Here’s the deal: UPSC isn’t just about cramming facts, it wants you to dig deeper. It’s not enough to know about PM-Kisan or DBT; understanding the limitations and trade-offs is key. The special part here? The comparison between cash transfer schemes and community-based projects. This insight is crucial for answering those complex GS-2 governance based questions. Don’t miss out!
PYQs Anchoring
GS 2: Electronic cash transfer system for the welfare schemes is an ambitious project to minimize corruption, eliminate wastage and facilitate reforms. Comment. 2013
GS 2: Reforming the government delivery system through the Direct Benefit Transfer Scheme is a progressive step, but it has its limitations too. Comment. 2022
Microthemes: Welfare and Development Schemes
In the Maharashtra and Jharkhand Assembly elections, cash transfer schemes for women became a key focus of political campaigns. In August, the Maharashtra government launched the ‘Mukhyamantri Majhi Ladki Bahin Yojana,’ giving ₹1,500 a month to eligible women in their Aadhaar-linked bank accounts. Similarly, the Jharkhand government introduced the ‘Jharkhand Mukhyamantri Maiya Samman Yojana,’ offering ₹1,000 a month to eligible women.
Reasons for popularity of cash transfer schemes
Direct cash transfer schemes are not a new idea in politics. According to Axis Bank, 14 states in India already have such programs, reaching nearly one-fifth of the country’s adult women. Below are the reasons for rising popularity in cash transfer schemes:
Reason
Description
Example
Increased Voter Turnout
Women’s participation in elections has significantly risen, reflecting their growing political influence.
Women’s voter turnout increased from 47% in 1962 to 66% in 2024, especially in states like Bihar and Uttar Pradesh.
DBT Efficiency
Direct Benefit Transfers (DBT) eliminate middlemen and reduce corruption, ensuring direct delivery of funds to beneficiaries.
The PM-Kisan Scheme directly transfers funds to farmers, cutting delays and middlemen.
Immediate Political Gains
Short-term welfare schemes deliver visible assistance, creating quick political capital compared to long-term projects.
Telangana’s KCR Kit Scheme provides financial aid to mothers immediately after childbirth.
Standardization of Welfare
Successful welfare models inspire replication in other states, showcasing policy learning and adaptation.
Tamil Nadu adopted a maternal welfare scheme modeled after Odisha’s Mamta Scheme.
Fear of Missing Out (FOMO)
States implement similar schemes to remain competitive in garnering electoral support.
Rajasthan’s Guaranteed Income Schemes followed Chhattisgarh’s Nyuntam Aay Yojana.
Addressing Structural Issues
Focused on gender-related challenges like education gaps and child marriage, enhancing targeted social welfare.
Direct Cash Transfer (DCT) schemes have revolutionized welfare delivery by ensuring funds reach beneficiaries directly, reducing delays and leakage. They empower individuals to make choices about spending, boosting financial inclusion and local economies. For instance, schemes like PM-KISAN or DBT in LPG subsidies have shown how effective they can be. However, bypassing middlemen is crucial to realizing their full potential.
Middlemen often dilute the benefits through corruption or mismanagement. Leveraging technology like Aadhaar-linked accounts and real-time monitoring can eliminate such inefficiencies, ensuring every rupee serves its purpose—uplifting lives without unnecessary hurdles.
Advantage
Description
Example
Reduction of Corruption
Minimizes corruption by eliminating intermediaries in welfare distribution processes.
MGNREGA payments transitioned to DBT, reducing delays and systemic corruption.
Personalized Political Relationships
Direct assistance fosters goodwill and loyalty among beneficiaries, enhancing political relationships.
West Bengal’s Lakshmi Bhandar Scheme provides monthly stipends to women, building goodwill.
Delhi’s Widow Pension Scheme provides immediate support to widowed women in financial distress.
Enhanced Accountability
Ensures better tracking and transparency of fund utilization through digital monitoring systems.
PM-KISAN transfers are monitored digitally, ensuring timely and accurate disbursements.
Promotion of Financial Inclusion
Brings unbanked individuals into the formal financial system, empowering them economically.
Jan Dhan-Aadhaar-Mobile (JAM) trinity has enabled access to banking services for millions.
Key Challenges of Cash Transfer Schemes
Lack of Welfare Innovation
Over-reliance on cash transfers hinders the development of diverse, community-based welfare models.
Many states replicate cash assistance programs without exploring alternatives such as local empowerment or infrastructure development.
Political Conformity
Opposition-controlled states often implement cash transfer schemes to align with central government policies, lacking unique or locally adapted welfare strategies.
Even progressive states like Kerala have adopted cash transfers despite previously having strong, distinct welfare systems.
Efficiency vs. State Capacity
A focus on cash transfers diverts attention from addressing systemic issues in welfare delivery.
Critics argue that schemes like PM-Garib Kalyan Yojana address the symptoms of poverty rather than tackling the root causes, such as employment generation and education reform.
Temporary Solutions
Cash transfers offer short-term relief but fail to address long-term solutions to systemic poverty.
Programs like Jagananna Ammavodi in Andhra Pradesh provide financial support for education but lack skill-building components necessary for sustainable growth.
Financial Sustainability
Relying heavily on cash transfers may strain government finances, especially in the long run.
Without regular budgeting adjustments or innovative financing methods, such schemes may face challenges in maintaining financial sustainability.
Exclusion Errors
Cash transfer schemes may exclude deserving individuals due to inaccuracies in beneficiary databases or targeting methods.
Inaccurate beneficiary lists can lead to marginalized groups being left out of crucial assistance programs.
Way Forward
Diversification of Welfare Approaches: Move beyond cash transfers by exploring community-based projects and sustainable welfare models.
Improved Targeting and Inclusivity: Enhance the accuracy of beneficiary identification through better data management systems and regular audits.
Focus on Long-term Solutions: Shift the focus from short-term relief to long-term poverty alleviation strategies. Implement programs that include skill-building, job creation, and education reforms alongside cash transfers to address root causes of poverty.
Financial Sustainability and Innovation: Develop innovative financing mechanisms, such as public-private partnerships, to ensure the long-term sustainability of cash transfer programs.Regularly reassess funding strategies to avoid over-reliance on government budgets and ensure that funds are allocated efficiently and sustainably.
#Back to basics: Cash transfer schemes
Definition: Direct monetary benefits are transferred to beneficiaries’ bank accounts.
What is the difference between cash transfer schemes and community based projects?
Parameter
Cash Transfer Schemes
Example (Cash Transfer)
Community-Based Projects
Example (Community-Based Projects)
Definition
Direct monetary benefits transferred to beneficiaries’ bank accounts.
PM-Kisan: Income support for farmers.
Welfare delivery through community-driven initiatives addressing collective needs.
MGNREGA: Employment for public asset creation.
Focus
Individual financial assistance for immediate relief.
