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Subject: Economics

  • [pib] Electronics Components Manufacturing Scheme

    Why in the News?

    The Ministry of Electronics and Information Technology (MeitY) has notified the Electronics Components Manufacturing Scheme to expand the manufacturing capabilities of passive electronic components in India.

    About Electronics Components Manufacturing Scheme:

    • The scheme is designed to promote the manufacturing of select electronic components in India, such as resistors, capacitors, relays, switches, sensors, and connectors.
    • It focuses particularly on passive electronic components, while active components like semiconductors fall under the India Semiconductor Mission (ISM).
    • The scheme has a tenure of 6 years, with a 1-year gestation period.
    • The scheme offers 3 types of incentives:
      1. Turnover-linked incentive: Based on revenue.
      2. Capex-linked incentive: For investments in plants and machinery.
      3. Hybrid incentive model: A combination of both turnover and capex incentives.

    Achievements and Growth in the Electronics Sector:

    • Domestic Production Growth: India’s electronics production has grown from ₹1.90 lakh crore in FY 2014-15 to ₹9.52 lakh crore in FY 2023-24, at a compound annual growth rate (CAGR) of over 17%.
    • Export Growth: Electronics exports have increased from ₹0.38 lakh crore in FY 2014-15 to ₹2.41 lakh crore in FY 2023-24, reflecting a CAGR of over 20%. India is now the second-largest mobile phone producer globally.
    • Future Projections: By 2026, India’s electronics production is projected to reach USD 300 billion.

    Government Initiatives for Electronics Growth:

    • Make in India (2014): Aimed at boosting India’s manufacturing sector and transforming it into a global hub for design and manufacturing.
    • Phased Manufacturing Programme (2017): Focused on increasing domestic value addition in mobile phones and their parts.
    • Production Linked Incentive (PLI) Scheme (2020): Aimed at boosting domestic manufacturing in mobile phones, electronic components, and semiconductor packaging, offering 3-6% incentives on incremental sales.
    • Semicon India Program (2021): With a financial outlay of ₹76,000 crore, this scheme promotes the domestic semiconductor industry.
    • Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS) (2021): Provides a 25% financial incentive for capital expenditure in electronic goods manufacturing.
    • Increased Budget for 2025-26: The allocation for electronics manufacturing has been raised from ₹5,747 crore in FY 2024-25 to ₹8,885 crore in FY 2025-26.
    [UPSC 2016] Recently, India’s first ‘National Investment and Manufacturing Zone’ was proposed to be set up in:

    (a) Andhra Pradesh (b) Gujarat (c) Maharashtra (d) Uttar Pradesh

     

  • [pib] Periodic Labour Force Survey (PLFS), 2024

    Why in the News?

    The latest Annual Report of the Periodic Labour Force Survey (PLFS) for the year 2024, covering the period from January to December, was released on April 8, 2025.

    About the Periodic Labour Force Survey (PLFS):

    • Launched by the National Statistics Office (NSO) in April 2017, the PLFS provides frequent data on labour force indicators to track employment trends.
    • It estimates employment and unemployment indicators in rural and urban areas quarterly and annually, using Current Weekly Status (CWS) and Usual Status (ps+ss).
    • The PLFS Annual Reports offer national estimates on employment and unemployment, broken down by rural and urban areas.
    • The survey tracks indicators like Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR), and Unemployment Rate (UR), helping policymakers understand employment dynamics.

    Key Terminologies Used:

    • Labour Force Participation Rate (LFPR): LFPR is the percentage of the population that is either working or actively seeking work. It measures the active engagement of the population in the labour market.
    • Worker Population Ratio (WPR): WPR is the percentage of the population that is employed. It indicates the proportion of the population that is engaged in productive work.
    • Unemployment Rate (UR): UR is the percentage of individuals in the labour force who are unemployed. It provides insights into the efficiency of the labour market and the availability of employment opportunities.
    • Usual Status (ps+ss): This approach calculates a person’s employment status based on the activities they pursued over the past 365 days. It includes both their principal and subsidiary economic activities.
    1. Principal Status (ps): The main activity a person engaged in during the reference period.
    2. Subsidiary Status (ss): Any additional economic activities undertaken by a person for at least 30 days during the reference period.
    • Current Weekly Status (CWS): CWS measures a person’s employment status based on the activities they pursued in the past 7 days. It focuses on short-term employment fluctuations.

    Key Highlights of the Recent Report (2024):

    Details
    Sample Size and Survey Coverage Surveyed 12,749 Field Survey Units (FSUs) across 6,982 villages and 5,767 urban blocks with 1,01,957 households and 4,15,549 individuals.

    Labour Force Indicators (CWS)
    LFPR (Urban)
    • Urban male LFPR increased from 74.3% to 75.6%, and female LFPR from 25.5% to 25.8%, resulting in an overall increase from 50.3% to 51.0%.
    • Shows gradual improvement in workforce participation, especially among males.
    WPR (Urban)
    • Urban WPR increased from 47.0% to 47.6%, while national WPR remained stable at 53.4% to 53.5%.
    • Indicates a slight improvement in the share of employed people in urban areas.
    Unemployment Rate (UR)
    • Rural unemployment decreased from 4.3% to 4.2%, and urban female unemployment decreased from 8.9% to 8.2%.
    • Indicates small improvements in employment opportunities, especially in rural and female urban sectors.
    Decline in Unpaid Helpers
    • Reduced number of unpaid helpers in rural households led to a decline in WPR and LFPR for rural females.
    • Fewer women are engaged in unpaid family work, which may indicate an increase in formal employment.

    Labour Force Indicators (PS+SS)
    LFPR (National)
    • National LFPR slightly decreased from 59.8% in 2023 to 59.6% in 2024.
    • Shows a slight decrease in overall workforce participation at the national level.
    WPR (National)
    • National WPR slightly decreased from 58.0% to 57.7%, indicating a small drop in employment despite stable participation rates.
    • Reflects a slight decline in the proportion of the population employed.
    Unemployment Rate (UR)
    • National UR slightly increased from 3.1% to 3.2%, reflecting a small rise in unemployment.
    • A minor increase in unemployment, suggests potential challenges in creating enough jobs for the growing population.

     

    [UPSC 2013] Disguised unemployment generally means:

    (a) large number of people remain unemployed (b) alternative employment is not available (c) marginal productivity of labour is zero (d) productivity of workers is low

     

  • [pib] 10 years of the Pradhan Mantri MUDRA Yojana (PMMY)

    Why in the News?

    April 8, 2025, marks the 10th anniversary of Pradhan Mantri MUDRA Yojana (PMMY), launched to fund micro and small enterprises.

    About the Pradhan Mantri MUDRA Yojana (PMMY)

    • The PMMY, launched in 2015 is a Central Sector Scheme designed to provide financial support to non-corporate, non-farm small and micro-entrepreneurs previously excluded from the formal financial system.
    • MUDRA stands for Micro Units Development & Refinance Agency Ltd., a financial institution established to support the development and refinancing of micro-enterprises
    • It aims to foster grassroots entrepreneurship and remove barriers to accessing loans, especially for businesses that lack collateral.

    Loan Categories:

      1. Shishu: Loans up to ₹50,000 for new or small businesses.
      2. Kishore: Loans ranging from ₹50,000 to ₹5 lakh for growing enterprises.
      3. Tarun: Loans from ₹5 lakh to ₹10 lakh for more established businesses with greater capital needs.
      4. TarunPlus: Loan limit up to ₹20 lakh for more established and larger businesses (since July 2024).

    Key Features:

    • Collateral-Free Loans: PMMY loans do not require any collateral, making them accessible to those without assets.
    • Member Lending Institutions (MLIs): These include Public Sector Banks, Private Sector Banks, Regional Rural Banks, Micro Finance Institutions (MFIs), Non-Banking Financial Companies (NBFCs), and Small Finance Banks (SFBs).
    • Credit Guarantee: Loans are backed by the Credit Guarantee Fund for Micro Units (CGFMU), which was established in 2015 to provide security to financial institutions offering loans under PMMY.
    • MUDRA Card: A MUDRA card is issued to manage the working capital portion of the loan, providing convenience to the borrower.

    MUDRA 2.0:

    • MUDRA 2.0 (launched in Union Budget 2024) is an upgraded version of the original PMMY, designed to extend its outreach, particularly in rural and semi-urban areas.
    • This version introduces additional services such as financial literacy programs, business mentorship, and comprehensive business support, aiming to improve the overall impact of the scheme.
    • Enhanced Credit Guarantee Scheme (ECGS) is a new feature introduced to encourage more lending to small and microenterprises by reducing the risk for financial institutions.

    Successes of PMMY:

    • Massive Loan Disbursement: Over ₹32.61 lakh crore disbursed through 52 crore loans, benefitting millions.
    • Inclusivity: 69% of loans are held by women, 51% by SC/ST and OBC entrepreneurs.
    • Job Creation: Promoted self-employment and business growth in rural and semi-urban areas.
    • MSME Credit Growth: Lending increased from ₹8.51 lakh crore in FY14 to ₹27.25 lakh crore in FY24.
    • International Recognition: Praised by IMF for expanding financial access, especially for women-led businesses.

    Challenges:

    • Increase in NPAs: Rising defaults due to lack of collateral.
    • Disbursement Delays: Some banks face challenges in meeting loan targets.
    • Fraud Risk: Collateral-free loans are susceptible to misuse and fraud.
    • Larger Loan Limits: Higher limits under TarunPlus raise default risks for banks.
    • Default Risk: Some borrowers exploit the system through “evergreening” tactics.
    [UPSC 2016] Pradhan Mantri MUDRA Yojana is aimed at

    (a) bringing small entrepreneurs into the formal financial system.

    (b) providing loans to poor farmers for cultivating particular crops.

    (c) providing pensions to old and destitute persons.

    (d) funding the voluntary organizations involved in the promotion of skill development and employment generation.

     

  • PM inaugurates New Pamban Bridge 

    pamban bridge

    Why in the News?

    The newly constructed Pamban Bridge was inaugurated by PM Modi to replace a 110-year-old structure that connected Rameswaram to the Indian mainland.

    About the Pamban Bridge  

    • The Pamban Bridge, completed in 1914, was India’s first sea bridge, connecting Rameswaram on Pamban Island to the mainland.
    • It featured a double-leaf bascule span, allowing ships to pass through when the bridge lifted.
    • Standing 12.5 meters above sea level and spanning 145 piers, the bridge faced challenges, including cyclones and workforce issues.
    • The old bridge had become unsafe due to severe corrosion and structural weaknesses, highlighted by vibrations detected in 2022.
    • The new bridge features a vertical lift span that can raise in just 5 minutes, with a 22-meter clearance to allow larger vessels to pass, compared to the old bridge’s 1.5 meters.
    • Trains can now travel at speeds up to 75 km/h, a significant improvement from the previous 10 km/h limit.

  • India’s Subsea Cable Infrastructure

    Why in the news?

    India is gradually expanding its undersea cable infrastructure, with new systems like Airtel’s 2Africa Pearls and SEA-ME-WE-6 boosting its international internet bandwidth.

    What are Undersea Cables?

    • Undersea cables are fiber optic cables laid on the ocean floor that connect internet networks between countries.
    • These cables are heavily insulated and contain fiber optic strands for transmitting data.
    • They surface at landing points, connect to landing stations, and then link to broader terrestrial networks.
    • Approximately 600 undersea cables exist globally.
    • These cables handle 90% of global data, 80% of world trade, and $10 trillion in financial transactions.

    India’s Current Undersea Cable Ecosystem:

    • India’s two main hubs for subsea cables are Mumbai and Chennai.
      • 17 international cables land in India, with 95% of subsea cables concentrated in a 6-km stretch in Versova, Mumbai.
    • India has two domestic cable systems:
    1. Chennai–Andaman–Nicobar Islands (CANI)
    2. Kochi–Lakshadweep Islands
    • While current bandwidth is considered sufficient, rising data traffic may soon outpace available capacity.
      • Experts warn that India’s current capacity may become inadequate in the near future.
    • India contributes only 1% of global cable landing stations and 3% of subsea cable systems, highlighting its underrepresentation in the global network.

    [UPSC 2016] With reference to ‘LiFi’, recently in the news, which of the following statements is/are correct?

    1. It uses light as the medium for high speed data transmission.

    2. It is wireless technology and is several times faster than ‘WiFi’.

    Select the correct answer using the codes given below:

    (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

     

  • GI Tags Awarded in April 2025

    Why in the News?

    Recently, several Geographical Indication (GI) tags have been awarded to unique products, enhancing their protection in the market and giving them a platform for global recognition.

    Here is the list of all the GI tags recently Awarded:

    State Product Name Description
    Meghalaya Ryndia (Meghalaya Handloom Products) Ryndia is an eco-friendly fabric made from Ahimsa Silk by indigenous Khasi, Bhoi, and Jaintia artisans. Known for its durability and luxurious texture, Ryndia is used to make stoles, shawls, and garments with organic dyes from local plants.
    Kerala Kannadippaya A traditional tribal handicraft made from the inner layers of reed bamboo. This mat, known for its reflective pattern, provides a cooling effect in summer and warmth during winter. It is woven by various tribal communities, including the Oorali, Mannan, Muthuva, Malayan, and Kadar tribes, primarily in the Idukki, Thrissur, Ernakulam, and Palakkad districts of Kerala.
    Tamil Nadu Panruti Cashew This cashew variety is celebrated for its mildly sweet, nutty flavor and its crisp yet tender texture. Grown primarily in Panruti, Tamil Nadu, it has a high demand both domestically and internationally, setting it apart from other cashew varieties due to its unique taste and texture.
    Panruti Jackfruit The Panruti jackfruit is a prized agricultural product from Panruti, where commercial cultivation is concentrated. Known for its large size and distinctive flavor, it is available throughout the year, with different varieties ripening at different times. The jackfruit is widely used for making chips, curries, and sweets and has potential for value-added products.
    Chettikulam Small Onion Grown in the Aalathur block of Perambalur district, this small onion variety is an important crop in Tamil Nadu, known for its strong aroma and robust flavor. Over 8,000 hectares in the district are dedicated to small onion cultivation, producing 65,000 to 70,000 tonnes annually. This variety is integral to local cooking and is used in various dishes, offering a unique flavor to regional cuisine.
    Puliyangudi Acid Lime Known as the Lemon City of Tamil Nadu, Puliyangudi produces acid lime that is small to medium-sized (4–6 cm in diameter) with a vibrant green color and thin, smooth skin. The limes are famous for their tangy taste and are widely used in cooking, especially in Southern Tamil Nadu and Kerala, as well as for producing lime juice and lime-based products.
    Virudhunagar Samba Vathal These bright red, spicy sambal chilies from Virudhunagar are renowned for their distinct flavor and are a crucial ingredient in Southern Indian cuisine. They are often used in the oleoresin extraction process, which plays a significant role in the spice industry.
    Ramanadu Chithiraikar Rice A red rice variety from Ramanadu, this rice is known for its ability to keep hunger at bay for hours, making it a staple in many households. The rice is commonly consumed as a hearty porridge and is recognized for its nutritional value and ability to provide long-lasting energy.
    Kumbakonam Betel Leaf Grown in the fertile Cauvery River basin, Kumbakonam Betel Leaf is known for its distinct taste and aroma. It is used in the preparation of paan and as a symbol of hospitality in the region.
    West Bengal Thovalai Flower Garland A handcrafted floral garland made from a mix of white, red, and green flowers, Thovalai Flower Garland is used for festivals and special occasions. It is woven in a mat-like fashion and is celebrated for its artistic beauty.
    Murshidabad Chhanobora This sweet from Murshidabad is made from chhena (curdled milk) and flavored with cardamom. It is known for its smooth texture and distinct taste, being a traditional treat prepared during festivals and significant occasions.
    Bishnupur Motichur Laddu A traditional Bengali sweet laddu, made from finely ground chickpeas, sugar, and ghee. It has a delicate, aromatic flavor and is often enjoyed during festivals like Durga Puja and Diwali. Its historical roots trace back to the Bishnupur region, known for its unique preparation methods.
    Kamarpukur Sada Bode A fried Bengali sweet, Kamarpukur Sada Bode is made from wheat flour, sugar, and ghee. It is an important part of Bengali festivals and local traditions, valued for its crisp texture and sweet, rich taste.
    Malda Nistari Silk Yarn Known for its fine texture, durability, and the intricate traditional weaving techniques used, Malda Nistari Silk Yarn is produced in Malda, Bengal. This silk is highly sought after for its luxurious feel and is used for making high-quality garments.
    Radhunipagal Rice A local variety of rice from Bengal, Radhunipagal is known for its resilient texture and ability to stay filling for extended periods, making it perfect for hearty meals. This rice is a staple in many traditional Bengali dishes.
    Baruipur Guava Baruipur Guava, grown in the fertile soil of West Bengal, is known for its distinct taste and texture. The fruit has a sweet flavor and is used in juices, jams, and desserts.
    Jammu and Kashmir 

     

    		 Kashmir Namda A woolen rug from Kashmir, Namda is known for its thick texture and intricate designs. Traditionally crafted by hand using sheep wool, it is prized for its insulating properties and is a significant part of Kashmir’s textile heritage.
    Kashmir Gabba A traditional woolen product from Kashmir, Gabba is used in home decor and textiles. It is made using local wool and features intricate handwoven patterns.
    Kashmir Willow Bat Kashmir Willow is used for making high-quality cricket bats, known for their lightweight and durable properties, making it a sought-after material for professional cricket bats.
    Kashmir Tweed Kashmir Tweed is a finely woven fabric, made from wool, and is renowned for its warmth and luxury. It has been traditionally used to make winter garments, particularly coats and shawls.
    Kashmir Crewel A hand-embroidered fabric from Kashmir, Crewel features intricate floral designs and is traditionally used in making home textiles like curtains, bedspreads, and cushions.
    Kashmir Chain Stitch A traditional embroidery technique from Kashmir, Chain Stitch is used to create decorative textiles. The embroidery is vibrant, with floral patterns, and is used in making garments and home furnishings.
    Kashmir Shikara The Shikara is a traditional boat from Kashmir used primarily for tourism and transportation in the Dal Lake. It is a symbol of Kashmir’s rich heritage and has been part of the region’s culture for centuries.
    Kashmir Wagguv Wagguv is a traditional handcrafted product from Kashmir, made using local materials and is known for its unique craftsmanship and cultural significance in the region.

     

    [UPSC 2015] Which of the following has/have been accorded ‘Geographical Indication’ Status?

    (1) Banaras Brocades and Sarees (2) Rajasthani Daal-Bati-Churma (3) Tirupathi Laddu

    Select the correct answer using the code given below.

    (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

     

  • RBI celebrates 90 years

    Why in the News?

    The first monetary policy of RBI Governor Sanjay Malhotra in 2025 marks 90 years since the Reserve Bank of India (RBI) announced its inaugural monetary policy in 1935.

    RBI’s First Monetary Policy in 1935

    • On July 3, 1935, RBI set the bank rate at 3.5%, reflecting the Imperial Bank’s rate.
    • The CRR was set at 5% of demand liabilities and 2% of time liabilities on July 5, 1935.

    Evolution of RBI’s Monetary Policy

    • Bank Rate in Early RBI History:
      • The bank rate was a key tool introduced by the RBI in 1935 to control credit and liquidity. On July 3, 1935, the RBI set the bank rate at 3.5%, mirroring the rate of its predecessor, the Imperial Bank of India.
      • The RBI Act (1934) mandated its use for buying or re-discounting commercial paper, and it played a crucial role in India’s interest rate structure.
    • Role of Cash Reserve Ratio (CRR):
      • The CRR, introduced by the RBI, required banks to maintain a percentage of their deposits as reserves.
      • Influenced by the Federal Reserve Act of the USA, the CRR helped stabilize the banking system, especially during failures.
      • The CRR was set at 5% for demand liabilities and 2% for time liabilities in 1935, with adjustments made over time.
    • Exchange Rate Management
      • In 1935, the RBI managed the exchange rate of the 1 Indian rupee at 1 shilling and 6 pence.
      • This caused friction between nationalists, who favoured a lower exchange rate to boost exports, and the British, who preferred a higher rate to facilitate cheaper imports.
    • Disputes Between Government and RBI
      • The RBI’s decision to reduce the bank rate in 1935 was opposed by the government, fearing rupee depreciation.
      • This led to a conflict, resulting in the resignation of Osborne Smith, the first RBI Governor.
      • The incident highlighted tensions between the RBI’s monetary autonomy and government priorities.

    About Reserve Bank of India (RBI)

    • The RBI is the central bank and monetary authority of India established on April 1, 1935, under the Reserve Bank of India Act, 1934.
    • Its idea was incepted from the recommendations of the Hilton Young Commission.
    • Sir Osborne Arkell Smith, an Australian, served as the inaugural Governor.
    • He was succeeded by Sir C D Deshmukh, the first Indian to hold the position.
    • It is a centralized institution for India to effectively regulate its monetary and credit policies.
    • RBI had its initial headquarters in Kolkata, later moving permanently to Mumbai in 1937.
    • Initially, the RBI operated as a privately owned entity until its full nationalization in 1949.

    Functions and Initiatives:

    • Monetary Authority: The RBI controls the supply of money in the economy to stabilize exchange rates, maintain a healthy balance of payment, and control inflation.
    • Issuer of Currency: Sole authority to issue currency and combat circulation of counterfeit notes.
    • Banker to the Government: Acts as a banker to both the Central and State governments, providing short-term credit and financial advisory services.
    • Lender of Last Resort: Provides emergency liquidity assistance to banks during crises.
    • Custodian of Foreign Exchange Reserves: Manages foreign exchange reserves and administers the Foreign Exchange Management Act, 1999 (FEMA).
    • Regulator and Supervisor of Payment and Settlement Systems: Oversees payment and settlement systems in the country, ensuring efficiency and security.
    • Credit Control and Developmental Role: Promotes credit availability to productive sectors and fosters financial infrastructure development.

    Dr. Ambedkar’s Role in the Establishment of RBI:

    • Dr. B.R. Ambedkar’s contributions were particularly notable during the Hilton Young Commission discussions in 1926, where he presented his recommendations based on his book “The Problem of the Rupee – Its Origin and Its Solution.”
    • These discussions laid the foundation for establishing the RBI on April 1, 1935.

     

    [UPSC 2004] Consider the following statements:

    1. Reserve Bank of India was nationalized on 26 January 1950.

    2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance.

    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

     

  • [pib] NITI NCAER States Economic Forum

    Why in the News?

    The Finance Minister is set to launch the “NITI NCAER States Economic Forum” portal.

    About the NITI NCAER States Economic Forum Portal

    • The “NITI NCAER States Economic Forum” portal is a comprehensive digital platform developed by NITI Aayog in collaboration with the National Council of Applied Economic Research (NCAER).
    • It serves as a centralized repository of data, research reports, and expert commentary on state-level finances and social, economic, and fiscal parameters spanning from 1990-91 to 2022-23.
    • The portal aims to facilitate evidence-based policymaking by providing users with easy access to key trends and insights on state performance.

    Features of NITI NCAER: 

      1. State Reports: Summarizes the macro and fiscal landscape of 28 Indian states. Structured around indicators on demography, economic structure, socio-economic, and fiscal parameters.
      2. Data Repository: Access to a comprehensive database categorized into 5 verticals: Demography; Economic Structure; Fiscal Data; Health; Education.
      3. State Fiscal and Economic Dashboard: Provides graphical representations of key economic variables over time; Includes summary tables and raw data for easy reference.
      4. Research and Commentary: Offers in-depth research reports and expert commentary on state finances, fiscal policy, and financial management; Supports long-term academic and policy research.

    Significance:

    • Benchmarking Capabilities: it enables comparison of state performance with national averages, fostering a competitive and cooperative approach to development.
    • Data Accessibility: it bridges data accessibility gaps, ensuring that policymakers, researchers, and academics can make informed decisions based on reliable and comprehensive data.
    • Promotes Transparency: By offering open access to detailed data, the portal enhances fiscal transparency and encourages cooperative federalism.
    [UPSC 2018] Consider the following statements:

    1.The Fiscal Responsibility and Budget Management (FRBM) Review Committee Report has recommended a debt to GDP ratio of 60% for the general (combined) government by 2023, comprising 40% for the Central Government and 20% for the State Governments.

    2.The Central Government has domestic liabilities of 21% of GDP as compared to that of 49% of GDP of the State Governments.

    3.As per the Constitution of India, it is mandatory for a State to take the Central Government’s consent for raising any loan if the former owes any outstanding liabilities to the latter.

    Which of the statements given above is/are correct?

    (a) 1 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3

     

  • India’s Coal Dependence rose to 79%

    Why in the News?

    According to MoSPI’s Energy Statistics in India 2025, coal contributed 79% to India’s total energy generation, amounting to 16,906 petajoules (PJ), marking a 2% increase from the previous year.

    Share of Coal in India’s Energy Basket:

    • Dominance: As of 2023-24, coal contributed 79% to India’s total energy generation, amounting to 16,906 petajoules (PJ), marking a 2% increase from the previous year.
    • Production Growth: In 2023-24, India saw a 12% increase in coal production, continuing a strong growth trajectory from the 15% growth in 2022-23, marking one of the fastest growth rates in the past decade.
    • Dependence on Imports: Despite a surge in domestic production, India remains 26% dependent on coal imports, although this has decreased from 31% in 2019-20.

    India’s Total Energy Basket:

    • Coal: Discussed above.
    • Nuclear Energy: Nuclear power contributes approximately 1.7% to the total electricity generation capacity, with an installed capacity of about 8,180 MW as of late 2024.
    • Crude Oil: The share of crude oil has decreased from 11% in 2014-15 to 6% in 2023-24, indicating a long-term decline in its contribution to India’s energy mix.
    • Natural Gas: Similarly, natural gas’s share has decreased from 9% in 2014-15 to 7% in 2023-24, reflecting a shift away from natural gas in the energy mix.
    • Renewable Energy: Despite significant investments and efforts by the government, renewable energy sources (solar, wind, hydro, and nuclear) contribute only 7% to the total energy mix in 2023-24, showing slow but steady growth over the past decade.

    Shift Towards Renewable Energy:

    • Total Contribution: Renewable sources contributed 7% of India’s total energy production in 2023-24, a modest increase from 6% in 2014-15. While this share remains small, the absolute production from renewables has grown at a 6.76% CAGR over the past 10 years.
    • Growth in Solar and Wind Energy:
      • The generation from solar, wind, and other renewable sources (excluding large hydro) has surged by 210% over the last decade, increasing from 6,555 KToE in FY15 to 20,279 KToE in FY24.
    • Key Renewable Energy Potential:
      • Wind energy holds the largest share of India’s renewable potential at 55.17%, with an estimated potential of 11,63,856 MW.
      • Solar energy is the second-largest contributor at 35.50%, with a potential of 7,48,990 MW.
      • Large hydro contributes 6.32% of the renewable energy potential with 1,33,410 MW.
    • Future Targets:
      • India added 3.4 GW of new wind capacity in 2024, with Gujarat (1,250 MW), Karnataka (1,135 MW), and Tamil Nadu (980 MW) leading the way.
      • India is aiming for 500 GW of non-fossil fuel-based energy capacity by 2030, which would significantly boost the share of renewables in the energy mix, reducing the reliance on coal and crude oil over the coming years.
    [UPSC 2020] Consider the following statements:

    1. Coal ash contains arsenic, lead and mercury.

    2. Coal-fired power plants release sulphur dioxide and oxides of nitrogen into the environment.

    3. High ash content is observed in Indian coal.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and

     

  • [pib] 10 Years of Sagarmala Project

    Why in the News?

    The Sagarmala Programme, launched in 2015 by the Ministry of Ports, Shipping, and Waterways (MoPSW), has completed 10 years of transformative success, positioning India as a maritime powerhouse.

    About Sagarmala Programme

    • The Sagarmala Programme was launched in 2015 by the Ministry of Ports, Shipping, and Waterways (MoPSW).
    • It aims to transform India’s maritime sector by enhancing port-led development, modernizing ports, and promoting sustainable coastal development.
    • The program is a key part of the Maritime Amrit Kaal Vision 2047 (MAKV), which aims to make India a global maritime leader by 2047.
    • Five Key Components:
    1. Port Modernization & New Port Development: Upgrading ports to boost efficiency and capacity.
    2. Port Connectivity Enhancement: Improving multimodal logistics and port hinterland connectivity.
    3. Port-Led Industrialization: Establishing industrial clusters near ports to foster economic growth.
    4. Coastal Community Development: Supporting skill development and livelihood opportunities for coastal communities.
    5. Coastal Shipping & Inland Waterways Transport: Promoting eco-friendly coastal shipping and inland waterways to reduce congestion.
    • Implementation & Funding
      • Implementation: Managed by Major Ports, central ministries, State Governments, and agencies.
      • Funding: Primarily through Public-Private Partnerships (PPP), IEBR, Grant-in-Aid, and Equity (Sagarmala Development Company Limited).

    Maritime Amrit Kaal Vision, 2047 (MAKV):

    The MAKV sets ambitious targets for India’s maritime sector:

    • 4 million GRT of shipbuilding capacity.
    • 10 billion metric tons of port handling annually.
    • Aiming for top five shipbuilding nations by 2047.

    Progress Till Date:

    • 839 projects identified with ₹5.79 lakh crore investment; 272 completed with ₹1.41 lakh crore investment.
    • 118% growth in coastal shipping over the past decade, reducing logistics costs and emissions.
    • 700% increase in inland waterway cargo, easing road and rail congestion.
    • Over 40 lakh passengers transported via Ro-Pax ferries.
    • Nine Indian ports ranked among the top 100 globally.
    • Sagarmala 2.0 focuses on shipbuilding, repair, recycling, and modernization with a ₹40,000 crore budget.
    • Sagarmala Startup Innovation Initiative (S2I2) launched in March 2025 to support startups in green shipping and sustainable development.
    [UPSC 2019] With reference to India’s projects on connectivity, consider the following statements :

    1. East-West Corridor under Golden Quadrilateral Project connects Dibrugarh and Surat.

    2. Trilateral Highway connects Moreh in Manipur and Chiang Mai in Thailand via Myanmar.

    3. Bangladesh-China -India -Myanmar Economic Corridor connects Varanasi in Uttar Pradesh with Kunming in China.

    How many of the above statements are correct?

    (a) Only one (b) Only two (c) All three (d) None