The Coast Guards of India, Japan, the United States, and Australia have initiated the first-ever ‘QUAD At Sea Ship Observer Mission’.
About “At Sea Ship Observer Mission”:
Overview: The ‘At Sea Ship Observer Mission’ is the first cross-embarkation initiative by the Coast Guards of India, Japan, the U.S., and Australia.
Origin and Vision: It was conceptualised under the Wilmington Declaration (2024) to boost interoperability and maritime domain awareness in the Indo-Pacific.
Participation: Officers from all QUAD countries, including women officers.
Joint Training Operations: The mission enables joint SOP drills, search and rescue (SAR), patrolling, and promotes gender inclusion in maritime diplomacy.
QUAD Summit Linkage: It operationalises decisions from the 6th QUAD Leaders’ Summit held in Wilmington, USA.
Future Vision: Sets groundwork for a ‘QUAD Coast Guard Handshake’, enhancing trust, resilience, and standardised operations in the Indo-Pacific.
Regional Impact: Aims to improve emergency response, coordination, and domain awareness among QUAD Coast Guards.
What is QUAD (Quadrilateral Security Dialogue)?
Members: QUAD is a strategic dialogue between India, Australia, Japan, and the United States, focused on Indo-Pacific peace and stability.
Nature of Alliance: Though not a formal alliance, it reflects a strong consensus on open sea lanes, supply chains, and tech partnerships.
Objectives: It promotes a Free and Rules-Based Order, countering coercive actions in the region.
Formation History: Originated post-2004 tsunami, formally proposed in 2007 by Japan’s PM Shinzo Abe.
Dormancy and Revival: Went dormant after Australia’s 2008 withdrawal but was revived in 2017 amid concerns over China’s assertiveness.
Expanded Focus Areas: Beyond security, QUAD now includes cooperation in health, infrastructure, cybersecurity, emerging tech, and climate change.
Joint Activities: The group holds military drills, high-level dialogues, and supports regional capacity-building.
QUAD-Plus Engagements: Also engages countries like South Korea, Vietnam, and New Zealand, signalling future expansion.
[UPSC 2016] With reference to the ‘Trans-Pacific Partnership’, consider the following statements: (2016) 1. It is an agreement among all the Pacific Rim countries except China and Russia. 2.It is a strategic alliance for the purpose of maritime security only.
Which of the statements given above is/are correct?
Options: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2*
Researchers at S N Bose National Centre for Basic Sciences (SNBNCBS) have discovered a novel transport behaviour in chromium antimonide (CrSb), a member of the emerging class of magnetic materials called altermagnets.
What are Altermagnets?
Definition: Altermagnets are a new class of magnetic materials that combine properties of ferromagnets (which show external magnetism) and antiferromagnets (which don’t).
Unique Feature: They don’t attract metals like fridge magnets but still have active internal magnetic behavior, useful in advanced technology.
Use in Spintronics: These materials are ideal for spintronics, a technology that uses electron spin (not just charge) to make faster and energy-efficient devices.
No Magnetic Interference: Altermagnets do not create external magnetic fields, so they are stable and safe for nearby electronics.
Energy Efficient: Their structure helps reduce heat and energy loss, which is perfect for modern low-power gadgets.
Scientific Rarity: Very few altermagnets are known, making each discovery important for materials science.
Potential Applications: They could help build smaller memory chips, faster processors, and even support quantum computing.
Internal Action: Think of them as “quiet magnets” — they work inside devices without magnetic noise.
Recent Discovery- Chromium Antimonide (CrSb):
Indian Breakthrough: Indian scientists found CrSb, a new altermagnet, showing rare direction-dependent conduction.
Directional Behavior: CrSb acts as an n-type material when current flows along its layers, and as a p-type when current flows across them.
First of its Kind: This is the first time an altermagnet has shown such dual conduction behavior in different directions.
Device Simplification: Since CrSb can behave as both p-type and n-type, it can reduce circuit size and eliminate the need for doping.
Eco-friendly Material: CrSb is made from non-toxic, common elements, making it ideal for sustainable electronics.
Potential Applications:
Future Potential: CrSb could be used in solar cells, batteries, and processors to make them greener and more efficient.
Environment-Friendly Tech: CrSb enables low-cost and eco-friendly electronics without sacrificing performance.
[UPSC 2021] Magnetite particles, suspected to cause neurodegenerative problems, are generated as environmental pollutants from which of the following? 1. Brakes of motor vehicles 2. Engines of motor vehicles 3. Microwave stoves within homes 4. Power plants 5. Telephone lines Select the correct answer using the code given below.
Options: (a) 1, 2, 3 and 5 only (b) 1, 2 and 4 only* (c) 3, 4 and 5 only (d) 1, 2, 3, 4 and 5
The Union Ministry of Power announced the formation of a task force to design the India Energy Stack (IES) — a new Digital Public Infrastructure (DPI) for the energy sector.
Objective: It aims to create a unified, secure, and interoperable digital backbone for India’s entire energy ecosystem, including producers, grid operators, discoms, consumers, regulators, and markets.
Task Force: It is led by a 17-member task force with Nandan Nilekani as Chief Mentor, and RS Sharma as Chairperson, supported by REC Ltd as the nodal agency.
Implementation: A 12-month proof of concept (PoC) will pilot key components like the Utility Intelligence Platform (UIP) in states like Delhi, Gujarat, and Maharashtra.
Larger Impact: It is expected to support India’s transition to Net Zero, manage increasing renewable energy share, and enable consumer participation in energy trading.
Key Features of India Energy Stack:
Scalability and Integration: It supports the integration of smart meters, real-time analytics, and battery storage systems, aligning with India’s energy digitisation goals.
Unique IDs: Provides digital identification for consumers, assets, and energy transactions, enabling seamless tracking and verification.
Real-Time Data Sharing: Consent-based, standardised data exchange mechanisms between stakeholders improve efficiency and transparency.
Open APIs: Allows integration of third-party solutions, encouraging innovation and energy fintech ecosystems.
Interoperability: Facilitates communication between currently fragmented digital platforms used by different state utilities and regulators.
Utility Intelligence Platform (UIP): A modular analytics layer to enable grid monitoring, load forecasting, demand-response, and consumer insights.
Peer-to-Peer Energy Trading: Empowers prosumers (producers + consumers) to buy, sell, or store energy using a digital marketplace.
Carbon Offset Tracking: Supports environmental compliance through transparent and verifiable emission reduction accounting.
Decentralised Energy Management: Enables small-scale producers and communities to participate in energy markets via smart contracts and virtual power plants.
[UPSC 2016] Which one of the following is a purpose of ‘UDAY’, a scheme of the Government?
(a) Providing technical and financial assistance to start-up entrepreneurs in the field of renewable sources of energy
(b) Providing electricity to every household in the countries by 2018
(c) Replacing the coal-based power plants with natural gas, nuclear, solar, wind and tidal power plants over a period of time
(d) Providing for financial turnaround and revival of power distribution companies*
The Union Cabinet has approved the Employment Linked Incentive (ELI) Scheme to promote job creation, enhance employability, and expand social security—especially in the manufacturing sector.
About Employment Linked Incentive (ELI) Scheme:
Objective: It aims to promote employment generation, enhance employability, and expand social security across all sectors, with a special focus on the manufacturing sector.
Inception: The scheme was first announced in the Union Budget 2024–25 as part of the Prime Minister’s ₹2 lakh crore Employment and Skilling Package, which targets 4.1 crore youth.
Goal: It seeks to create more than 3.5 crore jobs between 1st August 2025 and 31st July 2027.
Key Features of the ELI Scheme:
It offers direct financial incentives to both first-time employees and employers to promote formalisation and sustained employment. It has 2 major components:
Part A – Incentives to First-Time Employees:
One-month EPF wage (up to ₹15,000) in two instalments.
First instalment after 6 months of continuous service.
Second instalment after 12 months and completion of a financial literacy programme.
Eligibility for employees earning up to ₹1 lakh/month.
Portion of incentive saved in a deposit instrument.
Benefits to approximately 1.92 crore new employees.
Part B – Support to Employers:
Incentives for employers hiring additional employees with salaries up to ₹1 lakh/month.
Amount ranges from ₹1,000 to ₹3,000 per employee per month, based on wage slabs.
Employment must be sustained for at least 6 months.
Manufacturing sector gets incentives for 4 years instead of 2.
Employers must hire:
At least 2 additional employees (if workforce < 50).
At least 5 additional employees (if workforce ≥ 50).
Payment Mechanism:
Employees: via Direct Benefit Transfer (DBT) through Aadhaar Bridge Payment System (ABPS).
Employers: via PAN-linked accounts.
[UPSC 2024] With reference to the Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM) Yojana, consider the following statements:
1. The entry age group for enrolment in the scheme is 21 to 40 years
2. Age specific contribution shall be made by the beneficiary
3. Each subscriber under the scheme shall receive a minimum pension of ₹ 3,000 per month after attaining the age of 60 years
4. Family pension is applicable to the spouse and unmarried daughters
Options: (a) 1 and 4 (b) 2 and 3* (c) 2 only (d) 1,2 and 4
In most modern office environments, internal and external communication is managed through a technology known as EPABX — Electronic Private Automatic Branch Exchange.
About EPABX:
What is it: It is a system used by offices to manage internal and external phone calls efficiently.
Internal and External Communication: It enables intercom communication within the organisation and provides access to external telephone lines through a unified network.
Call Handling Features: EPABX can route, transfer, forward, or hold calls, reducing the need for multiple phone lines and improving overall communication.
Modern Features: Advanced EPABX systems offer voicemail, call recording, automated attendants, and digital tool integration for business productivity.
How EPABX Works?
Starting a Call: When the phone is picked up, an off-hook signal goes to the EPABX, which responds with a dial tone.
Making Internal Calls: Users dial an extension number (like 104), and the EPABX connects them through its internal switching system.
Making External Calls: To reach outside numbers, users dial an access code (usually 0) followed by the number; EPABX connects via the Public Switched Telephone Network (PSTN).
Handling Incoming Calls: Calls from outside are routed to the right extension using either a receptionist or an automated system (IVR) in newer setups.
Switching Logic: The EPABX system works like a railway yard, directing signals along the correct path between the caller and the recipient.
Advancements in EPABX Technology:
Early Systems: Older EPABX systems used electromechanical switches like crossbars for call routing.
Digital Transition: Since the 1980s, systems adopted Pulse Code Modulation (PCM) and Time Division Multiplexing (TDM) to digitise and share voice signals over fewer lines.
VoIP Technology: Modern EPABX uses Voice over IP (VoIP) to transmit calls over the internet, similar to email routing using IP addresses.
[UPSC 2019] With reference to communication technologies, what is/are the difference / differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?
1. LTE ‘is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.
2. LTE is data-only technology and VoLTE is voice-only technology.
Select the correct answer using the code given below.
Options: (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2*
[UPSC 2014] While doctor’s prescription is a must to get drugs, many people buy them over the counter without prescription. Discuss the contributors to the emergence of drug-resistant diseases in India? What are the available mechanisms for monitoring and control? Critically discuss the various issues involved.
Linkage: The wider discussion about checking drug quality and the difficulties in doing so is very important to stop unsafe drugs, like cancer medicines, from reaching patients. This question is relevant because it looks into how drugs are monitored and the problems faced in keeping them safe.
Mentor’s Comment: A major global investigation by the Bureau of Investigative Journalism, reported by The Hindu, has revealed that poor-quality and unsafe cancer drugs, many of them from India, have been sent to over 100 countries. These faulty medicines have caused serious health problems, including the deaths of children in Yemen, Colombia, and Saudi Arabia. The report highlights serious regulatory weaknesses in low- and middle-income countries, and shows that the WHO’s warning system only acts after harm is done. This is especially worrying because it affects cancer patients, one of the most vulnerable groups.
Today’s editorial talks about the poor-quality and unsafe cancer drugs. This topic is important for GS Paper II (Health & Governance) in the UPSC mains exam.
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Let’s learn!
Why in the News?
Recently, a major global investigation by the Bureau of Investigative Journalism, reported by The Hindu, found that low-quality and unsafe cancer drugs.
The Bureau of Investigative Journalism (TBIJ) is an independent, non-profit news organization based in the United Kingdom. It was founded in 2010 with the aim of producing in-depth, public interest journalism that holds power to account.
What are the major quality risks in cancer drug manufacturing and distribution?
Contamination during manufacturing: Risk of bacterial contamination from improper disinfection, untrained staff, or poor cleanroom discipline. Even small errors like air movement or touching non-sterile items can spread bacteria.
Poor quality control: Failure to test raw ingredients, clean equipment, or filter water properly can make life-saving drugs toxic or lethal.
Distribution chain vulnerabilities: Changes in temperature, humidity, or poor handling during transport can degrade drug quality. The complex journey from raw materials to patient requires strict monitoring at each stage.
Why are poorer countries more exposed to unsafe cancer drugs?
Weak Regulatory Frameworks: Many low-income countries lack strong drug regulatory authorities and legal frameworks to ensure medicine quality. Eg: In Nepal, there is no effective testing or monitoring of imported drugs due to limited institutional capacity.
Lack of Testing Infrastructure and Experts: These countries often do not have certified laboratories or trained personnel to check for contamination, dosage accuracy, or manufacturing faults. Eg: Nepal and similar nations lack verified experts or facilities to evaluate drug safety before market entry.
Inability to Track Drugs Through Supply Chains: Poor digital and logistical infrastructure leads to ineffective drug tracking, making it easier for substandard or counterfeit drugs to infiltrate the system. Eg: In countries with porous borders and no tracking systems, drugs can be repackaged or sold without oversight.
Corruption and Weak Enforcement: Corruption in customs, licensing, and procurement processes allows unverified drugs to enter public hospitals and pharmacies unchecked. Eg: In some regions, low-cost cancer drugs without proper quality assurance enter due to bribery and lack of regulatory follow-up.
Dependence on Low-Cost Imports Without Verification: Due to budget constraints, poorer nations rely heavily on cheap generic imports without adequate checks for Good Manufacturing Practices (GMP) or source validation. Eg: In Yemen (2022), at least 10 children died after receiving contaminated methotrexate, highlighting the consequences of poor import verification.
How does WHO ensure drug safety?
Rapid Alert System for Dangerous Drugs: WHO operates a global Rapid Alert System to identify and inform member countries about harmful or substandard medicines. Eg: If contaminated cancer drugs are reported in one country, WHO sends out a global alert so others can take preventive action.
Global Benchmarking and Certification Tools: WHO uses tools like the Global Benchmarking Tool to assess national regulatory systems and ranks them from Level 1 (weakest) to Level 4 (strongest). Eg: In 2023, 70% of member countries were rated at Level 1 or 2, showing limited capacity to regulate drug safety.
Prequalification, GMP, and CoPP Systems: WHO runs prequalification programs to approve safe drugs, ingredients, and labs; enforces Good Manufacturing Practices (GMP); and issues the Certificate of Pharmaceutical Product (CoPP) to confirm quality of exported drugs. Eg: A CoPP acts like a passport for medicines, verifying they are approved and safely made in the exporting country.
What are the steps taken by the Indian Government?
Strengthening Drug Regulatory Framework: The government has empowered the Central Drugs Standard Control Organization (CDSCO) to regulate drug approval, quality checks, and enforcement across India. CDSCO conducts inspections and sampling under the Drugs and Cosmetics Act, 1940 to detect substandard medicines.
Track and Trace Mechanism: India has introduced a barcode-based Track and Trace system for export of pharmaceutical products to improve transparency and traceability. Eg: The system helps monitor supply chain integrity and detect counterfeit drugs, especially in exports.
The Production Linked Incentive (PLI) Scheme for pharmaceuticals promotes domestic manufacturing of quality drugs and APIs while reducing import dependence. Eg: Incentives are given to firms that meet Good Manufacturing Practices (GMP) and global export standards.
Way forward:
Establish a National Drug Quality Monitoring Authority: Create a centralised, independent regulatory body to oversee real-time quality audits, enforce uniform GMP standards, and ensure accountability across manufacturing units.
Invest in Testing Infrastructure and Skilled Workforce: Strengthen drug testing laboratories, equip them with modern technology, and train qualified professionals to carry out rigorous inspections and batch verifications at every stage.
As India completes eight years of implementing the Goods and Services Tax (GST), the focus has moved from its economic benefits to its problems, especially in public health, like the poor taxation of tobacco.
What are GST’s major achievements and gaps after eight years?
Achievements:
Unified Tax System: Replaced multiple indirect taxes with one national tax, promoting the “One Nation, One Tax” concept.
Improved Ease of Doing Business: Simplified compliance through harmonised tax rates and digital processes.
Boosted Logistics Efficiency: Removal of inter-State checkpoints reduced transport time and costs.
Reduced Tax Cascading: The Input Tax Credit mechanism lowered production costs for businesses and prices for consumers.
Gaps:
Ineffective Public Health Taxation: Tobacco taxation remains weak under GST, despite high health and economic burdens.
Decline in Specific Excise Duties: Over-reliance on ad valorem GST weakened price control on harmful products like bidis and cigarettes.
Inadequate Tax on Bidis: Bidis, widely consumed by low-income groups, are under-taxed and not covered under the GST compensation cess.
Loss of Revenue Post-Cess Expiry: The GST compensation cess (a major source of tobacco tax) will expire in 2026, risking affordability and public health.
Weak Deterrent Against Tobacco Use: Unlike pre-GST years, tax stagnation has failed to reduce tobacco consumption, ignoring WHO’s 75% tax recommendation.
Why is GST ineffective in curbing tobacco use?
Lack of Significant Tax Hikes Post-GST: Since the introduction of GST in 2017, there have been no major tax increases on tobacco products. In contrast, during the pre-GST era (2009–17), regular hikes in excise and VAT contributed to a 17% decline in tobacco use.
Low Overall Tax Burden: The total tax on tobacco remains below the WHO-recommended 75% of retail price — only 22% for bidis, 54% for cigarettes, and 65% for smokeless tobacco. This allows tobacco products to remain affordable, especially for youth and low-income groups.
Under-Taxation of Harmful Products like Bidis: Bidis, the most consumed smoked tobacco product, are exempt from the GST compensation cess. Despite causing harm similar to cigarettes, they generate very low tax revenue and are widely used by low-income populations, reducing the deterrent effect of taxation.
Reduced Price Deterrence: After GST, the share of excise duty fell sharply (e.g., from 54% to 8% for cigarettes), weakening the price-based disincentive for tobacco use.
Industry Manipulation of Ad Valorem Taxes: GST relies heavily on ad valorem taxes (based on product price), which are easier for the tobacco industry to manipulate through pricing strategies. Without specific excise duties, companies can keep prices low, making harmful products like bidis and cheap cigarettes affordable to the masses.
What reforms can align tobacco taxes with health goals? (Way forward)
Introduce or Increase Specific Excise Duties: Add a fixed per-unit tax (specific excise) on tobacco products along with GST. Eg: Countries like the Philippines combine ad valorem and specific taxes, leading to higher prices and lower consumption.
Raise GST and Cess to Statutory Limits: Increase GST on tobacco to the legal ceiling of 40% and expand the GST Compensation Cess to include under-taxed products like bidis. Eg: Bidis, used by the poor and causing major health harm, are not covered under the cess, reducing their tax burdenand health deterrence.
Link Tax Policy with Inflation and Income Growth: Regularly update tobacco taxes to offset rising incomes and inflation, preventing increased affordability over time. Eg: WHO recommends adjusting taxes annually so that tobacco doesn’t become more affordable even if incomes rise.
Mains PYQ:
[UPSC 2019] Enumerate the indirect taxes which have been subsumed in the goods and services tax (GST) in India. Also, comment on the revenue implications of the GST introduced in India since July 2017.
Linkage: The article talks about the GST replaced many older taxes like VAT and excise duty, helping create a single national market. Although GST collections have steadily grown—reaching ₹22.08 lakh crore in 2024–25—the revenue from tobacco (about ₹551 billion a year) is much less than the huge cost of tobacco-related health problems, which is ₹2,340 billion every year.
Recently, the world’s growing preference for military force over peaceful talks have made India’s old policy of staying neutral and keeping strategic independence no longer enough.
Why is India’s neutrality no longer viable in the current global conflicts?
Erosion of Strategic Leverage in Multilateral Crises: Neutrality has diminished India’s influence during major global conflicts where clear moral or strategic stands are expected. Eg: During the Israel-Iran conflict, India’s equidistant stance failed to garner goodwill from Iran, while Israel saw no added strategic value either.
Increased Global Polarisation and Military Alignments: The world is now split into rival power groups, and staying neutral is often seen as being unsure or unwilling to take a stand. Eg: The U.S. bombing of Iran’s nuclear sites with bunker buster bombs, along with the growing China-Russia-Iran partnership, shows that being neutral in such a situation can actually be a liability and hurt a country’s interests.
Loss of Support from Traditional Partners: India’s neutral approach during its own security crises has failed to rally international support. Eg: During the recent India-Pakistan conflict, most West Asian countries and even the U.S. remained non-committal, despite India’s outreach in the Global South.
Reduced Credibility of Non-Alignment in a Hard Power World: Global forums are increasingly emphasising military strength over moral positioning. Neutrality is no longer seen as leadership. Eg: At the Shangri-La Dialogue, the U.S. stressed hard power and Indo-Pacific dominance, sidelining softer, non-aligned narratives like India’s.
What are the threats posed by the China-Pakistan military alliance?
Two-Front War Scenario: India faces the real risk of a coordinated military confrontation on both eastern and western borders. Eg: During the India-Pakistan conflict in May, intelligence revealed Pakistan’s preparedness using Chinese-supplied J-10C and JF-17 fighter jets, suggesting synchronised planning with China.
Enhanced Pakistani Military Capabilities: China’s transfer of advanced weaponry has significantly boosted Pakistan’s defence systems, improving its precision strike and surveillance capacity. Eg:Chinese radar, missile systems, and drone technology are now integrated into Pakistan’s command and control network, enhancing its offensive potential against India.
Asymmetric Nuclear Threat: The alliance magnifies the nuclear imbalance in the region, putting India at a strategic disadvantage. Eg: China and Pakistan together possess nearly a 5:1 advantage in nuclear warheads over India, escalating the deterrence challenge and increasing the risk of nuclear brinkmanship.
How has India’s Israel-Iran policy impacted its West Asia standing?
Loss of Credibility as a Neutral Mediator: India’s attempt to balance ties between Israel and Iran has diluted its influence in the region, as it failed to take a principled stand when it was needed most. Eg: During the Israel-Iran conflict, India’s mere call for “restraint on all sides” disappointed Iran, which expected vocal support against targeted attacks by Israel and the U.S.
Strained Relations with Key Regional Powers: India’s visible tilt towards Israel in recent years has alienated several West Asian countries, undermining its strategic and energy interests. Eg: India’s growing defence and technology cooperation with Israel has made its Iran policy less credible, especially after Iran was diplomatically isolated in the recent conflict.
What are the reforms needed to prepare India for a two-front war? (Way forward)
Strengthen Long-Duration War Capabilities: India must boost its ammunition reserves, logistics systems, and supply chain resilience to sustain prolonged conflicts on both fronts. Eg: The UK’s defence audit revealed critical gaps in its own war readiness—India too must conduct similar assessments to plug vulnerabilities.
Develop Advanced Technologies and AI Warfare: Investing in Artificial Intelligence (AI), drone warfare, loitering munitions, and electromagnetic systems is crucial to match modern battlefield requirements. Eg: Lessons from the Russia-Ukraine war show the growing role of AI-guided drones and precision weapons in shaping war outcomes.
Mains PYQ:
[UPSC 2022] How will I2U2 (India, Israel, UAE and USA) grouping transform India’s position in global politics?
Linkage: India’s role in emerging strategic alliances, emphasizing the need to understand how new groupings can re-shape India’s influence and standing in global politics. The article underscores that India’s foreign policy is currently facing an “existential crisis” due to events like the India-Pakistan conflict, the China-Pakistan nexus, and the Israel-Iran conflict, where “neutrality is no longer an option.
The UPSC often frames questions on government schemes by combining policy intent with ground realities. Like in the 2014 PYQ on Aadhaar and NPR, it expects aspirants to not only explain a scheme’s objectives but also weigh its implications — development, equity, implementation concerns, and constitutional debates. That’s where aspirants often falter. They memorise features of schemes (like Shishu, Kishor, Tarun loans under MUDRA) but miss the critical lens — is the scheme truly solving the problem it set out to? Has it created lasting impact? What are the gaps? This article is crafted precisely to address that. It gives you more than a list of facts. It connects the dots — from “why MUDRA was needed” (to fight informal debt and promote self-employment), to “how the change played out” (like women SHGs starting tailoring units in Tiruchirappalli), and finally “where the system needs fixing” (rising NPAs and gender disparities in loan amounts). It helps you think in layers — the kind of thinking UPSC rewards.
This article examines the MUDRA scheme by connecting its policy goals with on-ground realities, which is exactly how UPSC frames questions. As seen in the 2014 question on Aadhaar and NPR, UPSC expects aspirants to go beyond listing features and assess a scheme’s actual impact.
Many aspirants memorise details like Shishu, Kishor, and Tarun loans but overlook critical issues such as effectiveness, inclusion, and long-term outcomes. This article addresses that gap. It explains why MUDRA was introduced, how it has played out through examples like women SHGs in Tiruchirappalli, and what challenges remain, including rising NPAs and unequal access. It encourages layered thinking that links intent, outcome, and reform — exactly the depth UPSC looks for in Mains answers.
PYQ ANCHORING
GS 2: Two parallel run schemes of the Government viz. the Adhaar Card and NPR, one as voluntary and the other as compulsory, have led to debates at national levels and also litigations. On merits, discuss whether or not both schemes need run concurrently. Analyse the potential of the schemes to achieve developmental benefits and equitable growth [2014]
MICROTHEMES: Government Schemes and Policies
Back in April 2015, when the Pradhan Mantri MUDRA Yojana (PMMY) was launched, it promised to rewrite the credit story for India’s smallest entrepreneurs — the street vendor selling chaat, the tailor in a small town, the woman running a home-based pickle business. These were people who were often seen by banks as “too small to lend to,” surviving on high-interest informal loans or personal savings.
PMMY aimed to change that — to bring dignity to micro-entrepreneurship, to unlock dreams with formal credit, and to create a culture of self-employment beyond big cities and boardrooms.
Ten years later, the scheme has crossed major milestones in disbursal numbers and reach. But behind the celebration, some tough questions remain. Has MUDRA genuinely empowered the micro-entrepreneurs it set out to help? Is easy credit leading to sustainable growth — or just more debt ? And most importantly, is India building a robust support system beyond loans to help its smallest businesses thrive?
About Mudra Scheme // PRELIMS
Feature
Details
Purpose
MUDRA was established to promote the development and refinancing of micro enterprises across the country.
Collateral-Free Loans
Loans are collateral-free (no need for security) and can go up to ₹20 lakh.
Who Provides the Loans (MLIs)
Loans are offered by Member Lending Institutions (MLIs), which include:
– Scheduled Commercial Banks (SCBs)
– Regional Rural Banks (RRBs)
– Non-Banking Financial Companies (NBFCs)
– Micro Finance Institutions (MFIs)
Loan Categories (Interventions)
The scheme has three categories of loans, depending on the business stage:
1. Shishu – Loans up to ₹50,000 (for early-stage/startups)
2. Kishor – Loans from ₹50,001 to ₹5 lakh (for growing businesses)
3. Tarun – Loans from ₹5 lakh to ₹10 lakh (for well-established businesses ready to expand)
Focus Areas
Supports income-generating activities in manufacturing, trading, services, and also agriculture-related activities.
Goal
To provide access to formal credit for small entrepreneurs, especially those in rural and underserved areas.
Reasons of introducing Mudra Yojana
Reason
Explanation
1. Credit Gap for Small Businesses
Millions of small businesses in India were running without access to banks. They depended on moneylenders with high interest rates and tough terms.
2. Encourage Job Creators, Not Job Seekers
The scheme promotes self-employment by enabling people to start or grow small businesses instead of waiting for government or private jobs.
3. Boost to Financial Inclusion
It helps bring the informal sector into the formal financial system, especially marginalized communities, women, and rural entrepreneurs.
4. Support the Non-Corporate Sector
Most of India’s economy runs on tiny, non-corporate setups (street vendors, repair shops, artisans, etc.) that were not bank-financed earlier.
5. Fuel Grassroots Economic Growth
By helping small businesses grow, the scheme supports local jobs, incomes, and economic activity at the bottom of the pyramid.
Change in the state of affairs brought by MUDRA
The MUDRA scheme transformed the state of affairs by giving small entrepreneurs, especially those in the informal and underserved sectors, access to formal, collateral-free, affordable credit — helping them grow, create jobs, and become financially empowered.
Problem Before MUDRA
Change Brought by MUDRA
1. No access to formal credit
Enabled collateral-free loans up to ₹10 lakh (later ₹20 lakh) through banks, NBFCs, and MFIs.
2. Dependence on moneylenders
Replaced informal, high-interest borrowing with institutional credit at lower rates.
3. Lack of customized support
Introduced Shishu, Kishor, Tarun categories based on business stage — startup to expansion.
4. Marginalized groups excluded from banking
Brought SC/ST/OBCs (50%), women (68%), and minorities (11%) into the financial mainstream.
5. Stagnant micro-enterprise growth
Encouraged upscaling of businesses — Kishor and Tarun loans grew significantly.
6. No entrepreneurship culture in small towns/villages
Fostered a shift from job-seeking to job-creating, especially in rural and small-town India.
7. Women were financially sidelined
Women became the majority beneficiaries, seeing higher average loan amounts and growing deposit trends.
8. Informal sector lacked structure/support
Helped fund over 52 crore loans worth ₹32+ lakh crore, supporting ~10 crore jobs and building a credit history for many.
IMPACT ASSESSMENT: REAL CHANGE OR HYPE ? /MAINS
The MUDRA scheme has brought visible change on the ground, but the impact is not uniform. While many success stories exist — especially in rural and semi-urban India — the scheme has also faced implementation and quality challenges.
Positive Changes
Area of Impact
Examples & Outcomes
1. Women-led Enterprises Grew
In Tamil Nadu’s Tiruchirappalli, women self-help groups used MUDRA loans to start tailoring units and food stalls.
2. Local Entrepreneurship Boosted
In Uttar Pradesh, roadside vendors and small traders like tea sellers used Shishu loans (₹50,000) to formalize their setup.
3. Credit History Creation
First-time borrowers (especially from SC/ST/OBC backgrounds) now have a credit record, allowing future financial access.
4. Employment in Rural Areas
In Bihar and Odisha, MUDRA loans enabled small shops and service businesses, generating local employment.
5. Upscaling by Existing Businesses
Many who started with a Shishu loan later moved to Kishor and Tarun categories, showing real business growth.
Challenges and Criticism
Issue
Reality on Ground
1. Quality of Loans Questioned
A large share of loans are Shishu loans (small ticket), which may not always lead to real business transformation.
2. Non-Performing Assets (NPAs)
NPAs under PMMY have risen to over 9%, indicating repayment stress in some cases due to poor business viability.
3. Over-Indebtedness in Some Areas
In parts of Maharashtra and Telangana, multiple small loans have burdened borrowers, affecting creditworthiness.
4. Lack of Business Support
Credit was given, but often without training or hand-holding, leading to poor business planning or misuse of funds.
5. Gender Disparities in Usage
While women are 68% of beneficiaries numerically, a majority still get smallest loans (Shishu), reflecting inequality.
MUDRA YOJANA: KEY ROLE IN REALISATION OF SDGs
SDG Number
SDG Title
Contribution of MUDRA Yojana
SDG 1
No Poverty
Provides micro-finance, lifting individuals from poverty by supporting micro-entrepreneurs.
SDG 5
Gender Equality
68% of beneficiaries are women, promoting their economic independence and financial inclusion.
SDG 8
Decent Work and Economic Growth
Contributes to job creation and self-employment by providing financial support to micro-businesses.
SDG 10
Reduced Inequality
Supports marginalized communities, with 50% of MUDRA accounts held by SC/ST/OBCs, and 11% by minorities.
SDG 9
Industry, Innovation, and Infrastructure
Promotes small businesses in MSME sectors, fostering local industrial growth and infrastructure development.
SDG 12
Responsible Consumption and Production
Encourages local production, supporting sustainable consumption patterns and small-scale industries.
Way Forward
Credit-Plus Model: Combine PMMY with schemes like Skill India, Startup India, and ODOP, offering digital tools, mentorship, and market connections. Example: South Korea’s KOSME provides financial and non-financial support, including mentoring and export promotion.
Sector-Specific Targets: Focus MUDRA loans on sectors like agri-tech, renewable energy, health-tech, and EVs. Example: Germany’s KfW Bank offers targeted loans for green energy and tech startups.
NPA Monitoring: Use AI-driven systems and community loan circles to improve repayment culture and prevent defaults.
Formalization & Tax Incentives: Push borrowers to register under UDYAM, file returns, and link with GST/TReDS.
Data & Impact Audits: Conduct annual audits and create public dashboards for enterprise outcomes. Example: UK’s British Business Bank.
Regional Credit Ecosystems: Empower DLCCs to link PMMY with local centers like Krishi Vigyan Kendras, RSETIs, and CSCs. Example: Kenya’s Huduma Centres.
The MUDRA Yojana has made strides in democratizing credit and empowering women and marginalized communities. However, for India’s future, PMMY should evolve from mere loan distribution to fostering quality entrepreneurship, focusing on mentorship, monitoring, and sectoral integration.
#BACK2BASICS: MUDRA YOJANA
Achievements of MUDRA Yojana
Massive Outreach & Mindset Shift: 52+ crore loans worth ₹32.61 lakh crore since 2015, encouraging people in small towns to start businesses.
MSME Credit Growth: MSME loans grew from ₹8.51 lakh crore (2014) to ₹27.25 lakh crore (2024), with 20% of bank credit going to MSMEs.
Women Empowerment: 68% of beneficiaries are women. Loan sizes growing at 13% annually, boosting financial independence.
Inclusion of Marginalized Communities: 50% of accounts are held by SC/ST/OBCs, 11% by minorities, increasing formal financial inclusion.
Growth-Stage Financing: 45% of loans are ₹50K–₹5 lakh, up from 5.9% in 2016, indicating business expansion.
Rising Loan Size & Confidence: Average loan size increased from ₹38,000 (2016) to ₹1.02 lakh (2025), showing growing entrepreneurial confidence.
Top Performing States & UTs: Tamil Nadu, UP, and Karnataka are top disbursers, with J&K leading among UTs.
Funding the Micro Sector: Supports around 10 crore jobs, enhancing livelihoods and mobility.
Significance of MUDRA Yojana
Financial Inclusion: 70% of beneficiaries are first-time borrowers, increasing access to credit.
Democratizing Credit: Benefits first-time entrepreneurs from marginalized communities in rural and semi-urban areas.
Boosting Entrepreneurship: MUDRA loans created 1.12 crore jobs (2015-2018). E.g., Lalita Devi started a tailoring business, now employing five women.
Gender-Inclusive Policy: Increased female labor force participation from 23% to 41.7%. E.g., Shanti Devi expanded her papad-making business, increasing her income from ₹5,000 to ₹25,000.
Supporting Informal Sector: Formalizes informal businesses. 30% of borrowers transitioned to formal credit lines.
Aligning with SDGs: Supports SDG 8 (Decent Work) and SDG 5 (Gender Equality).
Atmanirbhar Bharat: Promotes local manufacturing and self-reliance, especially post-COVID.
Challenges Faced by Micro-Enterprises
Access to Finance: 30% of loan applications are rejected due to documentation issues.
Infrastructure Gaps: Poor roads and unreliable electricity limit business scalability.
Lack of Growth Orientation: 80% of loans support subsistence businesses, hindering growth.
Skill Development Gaps: Only 25% of beneficiaries receive skill training.
Policy Advocacy Needs: 40% of beneficiaries are unaware of tax exemptions like GST.
Market Development Gaps: Only 15% of MUDRA products reach organized markets.
Knowledge Gaps: 60% of borrowers don’t understand loan terms.
Information Asymmetry: 35% of loan rejections are due to insufficient credit history.
Entry-Level Tech Gaps: Only 20% of businesses use digital tools.
The Zoological Survey of India (ZSI) released Version 2.0 of the Checklist of Fauna of India, documenting 105,244 species and subspecies.
Back2Basics: Zoological Survey of India
The ZSI was set up by British zoologist Thomas Nelson Annandale in 1916.
It is the premier taxonomic research organisation in India, based in Kolkata.
It was established to promote surveys, exploration and research leading to the advancement of our knowledge of various aspects of the exceptionally rich animal life of India.
The ZSI had its genesis as the Zoological Section of the Indian Museum at Calcutta in 1875.
Since its inception, the ZSI has been documenting the diversity and distribution of the fauna of India towards carrying out its mandate of conducting exploration-cum-taxonomic-research programmes.
The ZSI has published an extremely large amount of information on all animal taxa, from Protozoa to Mammalia.
Key Findings About ZSI’s Work and Discoveries (2024–25):
Significant Animal Discoveries:
New Genus: Dravidoseps gouensis – a new genus of skink (lizard) from Western Ghats
New Species of Snakes: Anguiculus dicaprioi – named after actor Leonardo DiCaprio, belongs to the Colubridae family
Other Reptiles: 2 new genera and 37 new species of reptiles discovered
Amphibians: 5 new amphibian species, including frogs from northeastern and southern India
Other Invertebrates: Multiple new insect species, particularly among beetles, moths, flies, and bees
Highest representation among newly discovered species were insects, especially:
Coleoptera (beetles)
Lepidoptera (moths and butterflies)
Diptera (flies)
Hymenoptera (ants, bees, wasps)
[2020] With reference to India’s Biodiversity, Ceylon frogmouth, Coppersmith barbet, Gray-chinned minivet and White-throated redstart are:
