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

Civilsdaily

Login

Subject: Economics

  • Industrial Accidents in India – The Human Cost of Indifference

    Industrial accidents in India are neither rare nor accidental; they are recurring human tragedies rooted in systemic negligence, regulatory apathy, and corporate cost-cutting. From chemical plant explosions in Telangana to firecracker unit disasters in Tamil Nadu, these incidents underscore a grim reality, industrial safety in India is still treated as a compliance hurdle rather than a fundamental right.

    Magnitude of the Problem

    1. 6,500 workers have died in the last five years in factories, construction sites, and mines averaging three fatalities every day in peacetime.
    2. Centre for Science and Environment (2022): Over 130 major chemical accidents in 30 months post-2020, causing 218 deaths and over 300 injuries.
    3. Small and medium-sized enterprises (SMEs) are disproportionately involved, often escaping robust inspections.

    Root Causes of Industrial Accidents in India

    1. Regulatory Non-compliance:
      1. Factories operating without Fire Department No-Objection Certificates (NOCs).
      2. Missing or dysfunctional firefighting systems, alarms, and sensors.
    2. Unsafe Work Practices:
      1. Absence of permit-to-work systems for high-risk jobs.
      2. Migrant and contract workers without language-appropriate training or signage.
    3. Infrastructure Failures:
      1. Locked or blocked emergency exits.
      2. Poor maintenance of hazardous material storage.
    4. Weak Enforcement and Accountability:
      1. Safety audits treated as formalities.
      2. Negligible penalties and rare convictions for violations.
    5. Cultural Mindset:
      1. Safety seen as an “overhead” instead of a core operational value.
      2. Class bias — migrant and contract workers’ lives undervalued.

    Comparative Global Perspective

    • Germany, Japan: Safety is embedded into industrial design and workplace culture.
    • South Korea, Singapore: Corporate manslaughter laws hold senior executives criminally liable for gross safety failures.

    Policy and Governance Gaps in India

    1. Industrial safety boards are under-resourced.
    2. Weak whistle-blower protections discourage reporting of hazards.
    3. Digital risk-reporting systems are minimal or absent.
    4. Limited integration between labour inspection, pollution control boards, and disaster management authorities.

    India-Specific Legal and Policy Framework

    1. Factories Act, 1948: Provides provisions on workplace safety, health, and welfare of workers, mandates fencing of machinery, safety officers, and periodic medical examinations.
    2. Occupational Safety, Health and Working Conditions Code, 2020: Consolidates 13 labour laws on safety and health, Introduces provisions for free annual health check-ups, safety committees, and hazard communication.
    3. Environment (Protection) Act, 1986: Framework law for protecting and improving environmental safety, including hazardous process management, Manufacture, Storage and Import of Hazardous Chemical Rules, 1989, Requires industries to prepare onsite and offsite emergency plans.
    4. Explosives Act, 1884 & Petroleum Act, 1934: Regulate storage, handling, and usage of explosive and flammable substances.
    5. Bhopal Gas Leak (Processing of Claims) Act, 1985: First special legislation to address industrial disaster victims’ compensation
    6. National Disaster Management Act, 2005: Guides chemical, biological, radiological, and nuclear safety protocols through the NDMA.

    Way Forward

    1. Strengthen Enforcement: Make industrial safety audits independent and transparent; link non-compliance to criminal liability.
    2. Digitisation: Use real-time IoT monitoring for hazard detection and compliance tracking.
    3. Worker Empowerment: Mandate safety training in local languages for all employees, especially contract labour.
    4. Corporate Accountability: Introduce Corporate Manslaughter Legislation for gross negligence causing worker deaths.
    5. Social Responsibility: Shift from post-accident compensation to pre-accident prevention culture.

    Conclusion

    Industrial accidents are not “acts of God” but acts of neglect. India possesses the legal framework to ensure safe workplaces, but without societal outrage, political will, and corporate responsibility, these frameworks remain on paper. For every worker who risks life and limb, industrial safety must be recognised and enforced as a right, not a privilege.

     

    Practice Mains Question:

    “Industrial accidents in India are not acts of fate but outcomes of systemic negligence.” Discuss the causes, implications, and reforms needed, with reference to recent incidents and existing legal frameworks.

    (250 words, 15 marks)

  • The Coastal Shipping Bill, 2024: A Legislative Milestone for Maritime Growth

    The Coastal Shipping Bill, 2024, which replaced Part XIV of the Merchant Shipping Act, 1958, marks a significant legislative reform aimed at modernizing and streamlining India’s coastal trade. It is a key component of the government’s vision for a “Viksit Bharat” and “Aatmanirbhar Bharat,” aiming to unlock the vast potential of India’s coastline. It provides a dedicated legal framework to boost coastal trade, reduce logistics costs, and promote sustainable transportation.

    Need for the new Coastal Shipping Bill, 2024:

    1. Repeals Part XIV of the Merchant Shipping Act, 1958, which was outdated and limited in scope.
    2. Coastal cargo movement had been growing (119% increase from 2014–15 to 2023–24), yet regulatory hurdles, outdated provisions, and fragmented oversight hindered its full potential.
    3. Aligns with key national missions such as PM Gati Shakti, National Logistics Policy, Sagarmala Programme and Maritime Amrit Kaal Vision 2047

    Key Provisions of the Coastal Shipping Bill, 2024

    The Act’s jurisdiction extends to vessels engaged in trade within India’s coastal waters, which include territorial waters (up to 12 nautical miles) and adjoining maritime zones (up to 200 nautical miles).

    1. Expanded Definition of Coastal Trade:
      • Earlier: Only carriage of goods and passengers.
      • Now: Includes services such as exploration, research, and commercial activities, excluding fishing.
      • Recognizes maritime zones up to 200 nautical miles from the Indian coast.
    2. Simplified Licensing Framework: Supports Indian shipbuilding, maritime employment, and reduces regulatory burden.
    Vessel Type Licensing Requirement
    Indian-owned vessels Exempted for coastal trade
    Foreign/chartered vessels License required (issued by DG Shipping)
    OCI-chartered vessels operating outside India No license required

     

    1. Mandated Strategic Planning: National Coastal and Inland Shipping Strategic Plan must be prepared within 2 years and reviewed biennially. It is to be designed by a committee with state representation, ensuring cooperative federalism.
    2. National Database for Coastal Shipping: Aims for real-time tracking, transparency, and data-driven policymaking. It keeps investors informed and supports infrastructure planning.
    3. Modernised Penalties and Decriminalisation

     

    Strategic Vision and Long-term Impact

    “This is a forward-looking, holistic framework aligned with global cabotage practices.”

    — Union Minister of Ports, Shipping and Waterways

    1. Economic Transformation:
      1. Aims to increase India’s coastal cargo share to 230 million metric tonnes by 2030.
      2. Reduces logistics cost (currently ~14% of GDP) by shifting cargo from roads/rails to coastal routes
      3. Coastal shipping is 80% cheaper and more energy-efficient than road transport
    2. Environmental Sustainability:
      1. Supports Net Zero by 2070
      2. Encourages green transport and lower-emission logistics
    3. Job Creation and Industry Support:
      1. Boosts shipbuilding, port services, and manning jobs
      2. Encourages Make in India in the maritime sector.
    4. Strengthened Maritime Security: Greater share of domestic cargo handled by Indian ships reduces reliance on foreign vessels.
    5. Cooperative Federalism: Includes states and UTs in decision-making, enabling inclusive and participatory governance.

    The Coastal Shipping Bill, 2024, represents a landmark step towards building a seamless, efficient, and globally competitive maritime ecosystem in India. By modernizing regulations, promoting domestic industry, and integrating coastal shipping with inland waterways, the Act lays the foundation for a future-ready logistics network that is central to the nation’s economic and strategic goals.

    Mains Practice Question:

    1. Discuss the significance of the Coastal Shipping Act, 2025 in India’s vision for a sustainable and cost-effective transport ecosystem.
    2. Evaluate the role of strategic planning and digital infrastructure under the new Coastal Shipping Act in achieving India’s Maritime Amrit Kaal Vision 2047.

  • Parliament passes Carriage of Goods by Sea Bill, 2025

    Why in the News?

    Parliament has passed the Carriage of Goods by Sea Bill, 2025, replacing the nearly century-old Indian Carriage of Goods by Sea Act, 1925.

    About Carriage of Goods by Sea Bill, 2025:

    • Replaces: The colonial-era Indian Carriage of Goods by Sea Act, 1925.
    • Purpose: Regulates the rights, duties, liabilities, and immunities of parties involved in shipping goods by sea from Indian ports to domestic or international destinations.
    • International Alignment: Retains consistency with the Hague Rules (1924), which also formed the basis of the 1925 Act.
    • Objective: Modernises maritime law in line with global standards and boosts India’s ease of doing business in the maritime sector.

    Key Features:

    • Bills of Lading Defined: It outlines the details of the shipment, including the type and quantity of goods, the origin and destination, and the terms of the agreement between the shipper and the carrier.
      • Includes details on goods’ type, quantity, condition, and destination.
      • Serves as a legally binding contract between the shipper and carrier.
    • Central Government Powers:
      • May issue directions for implementation.
      • Can amend the Schedule of Rules related to bills of lading.
    • Part of Broader Maritime Reforms:
      • Supports port development and coastal trade.
      • Encourages creation of State Maritime Boards and a Maritime State Development Council.
      • Covers port safety, disaster response, pollution control, and dispute resolution.
    • Global Compliance: Aligns India’s shipping laws with evolving international conventions and practices.
    [UPSC 2016] The term ‘import cover’, sometimes seen in the news, refers to

    (a) It is the ratio of value of imports to the Gross Domestic Product of a country

    (b) It is the total value of imports of a country in a year

    (c) It is the ratio between the value of exports and that of imports between two countries

    (d) It is the number of months of imports that could be paid for by a country’s international reserves*

     

  • Asset Under Management (AUM)

    Why in the News?

    India’s Mutual Fund (MF) industry has witnessed exponential growth, with Assets Under Management (AUM) reaching ₹74.40 lakh crore as of June 2025, a sevenfold increase over the past decade.

    What are Assets Under Management (AUM)?

    • Definition: AUM refers to the total market value of financial assets (stocks, bonds, etc.) managed by an investment firm on behalf of clients.
    • Growth Drivers:
      • Net investor inflows and redemptions
      • Market performance
      • Dividend reinvestments
    • Importance:
      • Indicates fund size, investor confidence, and fund stability
      • Reflects fund manager performance and popularity
      • Higher AUM allows better liquidity and portfolio diversification
      • Impacts management fees and minimum investment limits

    What is a Mutual Fund?

    • Definition: A mutual fund pools money from multiple investors to invest in a diversified portfolio.
    • Management: Handled by professional fund managers to balance risk and return.
    • Unit-Based Investment: Investors purchase fund units; each unit’s value is called the Net Asset Value (NAV), which changes with market movement.

    Classification of Mutual Funds

    a. Based on Asset Class:

    1. Equity Funds: Invest in stocks; includes large-cap, mid-cap, and small-cap funds.
    2. Debt Funds: Invest in bonds and other fixed-income instruments.
    3. Hybrid Funds: Mix of equity and debt for balanced risk-return.

    b. Based on Investment Objective:

    1. Growth Funds: Focus on capital appreciation; suitable for long-term investors.
    2. Income Funds: Aim for regular income via bonds/dividends.
    3. Liquid Funds: Invest in short-term debt; low risk and high liquidity.
    4. Tax-saving Funds (Equity Linked Savings Scheme): Offer Section 80C tax benefits; equity-focused.
    5. Pension Funds: Meant for retirement; long-term return-focused.

    c. Based on Structure:

    1. Open-ended Funds: Investors can enter or exit anytime; highly liquid.
    2. Closed-ended Funds: Fixed maturity; investments only during the initial offer period.
    3. Interval Funds: Allow purchase/redemption only at specific intervals.

     

    [UPSC 2025] Consider the following statements:

    I. India accounts for a very large portion of all equity option contracts traded globally, thus exhibiting a great boom. II. India’s stock market has grown rapidly in the recent past, even overtaking Hong Kong’s at some point in time. III. There is no regulatory body either to warn small investors about the risks of options trading or to act on unregistered financial advisors in this regard.

    Which of the statements given above are correct?

    Options:  (a) I and II only * (b) II and III only (c) I and III only (d) I, II and III

     

  • [pib] India Electric Mobility Index (IEMI)

    Why in the News?

    To support India’s net-zero transport goal by 2070, NITI Aayog launched the India Electric Mobility Index (IEMI) to track and rank States/UTs on their shift to electric mobility.

    [pib] India Electric Mobility Index (IEMI)

    About India Electric Mobility Index (IEMI):

    • Launched by: NITI Aayog in 2024.
    • Purpose: To evaluate and benchmark the progress of Indian States and Union Territories (UTs) in achieving their electric mobility and transport decarbonization goals.
    • Scoring: States and UTs are scored out of 100 using 16 indicators grouped under 3 core themes.
    • Core Themes:
      1. Transport Electrification Progress – Measures EV adoption across segments (2W, 3W, 4W, buses, etc.)
      2. Charging Infrastructure Readiness – Assesses public charging station density, coverage, and policy support.
      3. EV Research & Innovation Status – Tracks EV startups, R&D activity, patents, and skilling efforts.
    • Significance:
      • Supports tailored policymaking and cross-learning.
      • Enables transparency and healthy competition among states.
      • Aligns with India’s net-zero emissions target by 2070.
    • Methodology: Based on VAHAN data, charging infrastructure maps, and stakeholder consultations.
    • Accessibility: Publicly available dashboard and report for rankings, scores, and methodology.

    Key Highlights (2024 Edition):

    • Top Performers: Delhi, Maharashtra, and Chandigarh lead overall in EV readiness.
    • Category Leaders:
      • Transport Electrification: Delhi and Maharashtra.
      • Charging Infrastructure: Karnataka, Haryana, Himachal Pradesh, Ladakh.
      • Research & Innovation: Delhi, Tamil Nadu, Maharashtra, Karnataka, Telangana, Haryana.
    • EV Policy Status: 29 States/UTs have formal EV policies; 4 are in the draft stage.
    • EV Adoption Data:
      • EVs make up 5.3% of private vehicle sales in 2024.
      • Over 12 lakh EVs registered in India during the year.
    • Public Charging Network: India has over 25,000 public EV charging stations.
    • State Categories:
      • Performers: Karnataka, Tamil Nadu, Uttar Pradesh, Chhattisgarh, Odisha, Haryana, Goa.
      • Aspirants: Punjab, Rajasthan, Telangana, Andhra Pradesh, Assam, Bihar, Kerala, North-East states.
    [UPSC 2024] Which one of the following is the exhaust pipe emission from Fuel Cell Electric Vehicles powered by hydrogen?

    Options: (a) Hydrogen peroxide (b) Hydronium (c) Oxygen (d) Water vapour*

     

  • Sawalkote Hydro Project

    Why in the News?

    After suspending the Indus Waters Treaty, India is asserting water control in J&K by reviving the Sawalkote Hydroelectric Project — the UT’s largest planned hydro project.

    Sawalkote Hydro Project

    About Sawalkote Hydro Project:

    • Location: Ramban and Udhampur districts, Jammu and Kashmir.
    • River: Built on the Chenab River (a western river under the Indus Waters Treaty).
    • Agency: Implemented by National Hydroelectric Power Corporation.
    • History: Proposed in the 1960s; delayed due to Pakistan’s objections, environmental issues, and red tape. Revived after India suspended the Indus Waters Treaty post the April 2025 Pahalgam terror attack.
    • Status (2025): Forest clearance granted; tenders floated on 29 July 2025; declared a project of national importance.
    • Timeline: 96 months post-clearance; expected commissioning by or after 2032.

    Key Features:

    • Type: Run-of-the-river (utilizes the natural flow and elevation drop of a river) hydroelectric project.
    • Capacity: 1,856 Megawatts (8 × 225 MW + 1 × 56 MW).
    • Dam: 192.5 m high, roller-compacted concrete gravity dam; reservoir holds 550 million cubic meters.
    • Powerhouse: Underground, with Francis turbines.
    • Cost: ₹22,704.8 crore (~2.6 billion United States Dollars).
    [UPSC 2009] Gandhi Sagar Dam is a part of which one of the following?

    Options: (a) Chambal Project * (b) Kosi Project (c) Damodar Valley Project (d) Bhakra Nangal Project

     

  • [1st August 2025] The Hindu Op-ed: Why the world needs better green technologies

    PYQ Relevance:

    [UPSC 2024] The world is facing an acute shortage of clean and safe freshwater. What are the alternative technologies which can solve this crisis? Briefly discuss any three such technologies citing their key merits and demerits.

    Linkage: This question directly related to “alternative technologies” to address a critical global environmental and resource crisis (freshwater scarcity). This aligns with the broader theme that the world needs better and diverse green technologies to tackle urgent environmental problems and ensure resource self-sufficiency, as emphasized in the context of energy innovation.

     

    Mentor’s Comment: As the push for sustainable energy intensifies, concerns are rising over the efficiency limits of widely used silicon photovoltaics. With the growing need for green hydrogen and land constraints, experts are questioning whether next-gen solar technologies offer better solutions. India must invest in efficient, diverse, and scalable innovations to meet climate goals and ensure energy self-sufficiency.

    Today’s editorial analyses the concerns that are rising over the efficiency limits of widely used silicon photovoltaics. This topic is important for GS Paper III (Environment) in the UPSC mains exam.

    _

    Let’s learn!

    Why in the News?

    Recently, as the global need for clean energy has increased and countries aim to fulfill their climate promises, silicon solar panels have become the most popular choice, changing the look of places from city rooftops to large solar farms in villages.

    What limits silicon photovoltaics in meeting India’s climate goals?

    • Low Energy Efficiency: Silicon solar panels have an in-field efficiency of only 15–18%, meaning a significant portion of solar energy is not converted into electricity. Eg: In Rajasthan, more panels are required to meet energy demand, increasing cost and land use due to low conversion efficiency.
    • High Land Requirement: Due to their low efficiency, silicon panels need a larger surface area to generate the same output compared to newer technologies. Eg: The Rewa Solar Park in Madhya Pradesh covers over 1,500 hectares, reducing land availability for agriculture and conservation.
    • Slow Climate Impact: Despite growing solar capacity, CO₂ levels have risen from 350 ppm in 1990 to ~425 ppm in 2025, indicating renewables are not scaling fast enough. Eg: Even after installing 4.45 TWh of renewable energy by 2024, India remains behind on its climate targets.
    • Environmental Footprint of Manufacturing: The production of silicon panels involves high energy use and toxic chemicals, partially offsetting their green benefits. Eg: Most panels are imported from China, where coal-powered factories dominate, adding to indirect emissions.
    • Incompatibility with Advanced Applications: Silicon PVs are less suitable for high-efficiency applications like green hydrogen production, which needs more consistent, high-output energy. Eg: In pilot projects in Gujarat, using silicon panels reduces the overall efficiency of green hydrogen production due to energy losses.

    Why rethink electrolysis-based green hydrogen?

    • High Energy Consumption: Electrolysis requires more energy to produce green hydrogen than the energy hydrogen provides when used, making the process energy-inefficient. Eg: In India’s pilot projects in Ladakh, the high electricity input from solar panels results in low net energy gain, raising concerns about economic viability.
    • Storage and Transportation Challenges: Hydrogen has very low density, making it difficult and expensive to store and transport, often requiring high-pressure tanks or cryogenic conditions. Eg: In hydrogen mobility projects, such as those in Delhi, leakage and compression issues have hampered safe and cost-effective deployment.
    • Compounding Energy Losses in Conversion: Using green hydrogen to produce green ammonia or methanol, and then extracting hydrogen back, leads to multiple stages of energy loss. Eg: In proposed export hubs like Vizag, converting hydrogen to ammonia for shipping and then reconverting it abroad reduces overall energy efficiency.

    How do land and efficiency issues impact India’s solar push?

    • Low Efficiency Increases Land Requirement: Silicon solar panels with 15–18% efficiency require larger surface areas to generate the same energy as advanced solar technologies. Eg: In Rajasthan’s Bhadla Solar Park, vast desert land is used to compensate for low panel efficiency, which limits deployment in land-constrained states.
    • Urbanisation Limits Land Availability: Rapid urban expansion and the need to conserve green zones reduce the availability of suitable land for large-scale solar projects. Eg: In Mumbai’s metropolitan region, limited open space has pushed the focus toward rooftop solar, which has its own technical and regulatory hurdles.
    • Hinders Achievement of Renewable Energy Targets: The inefficient land-to-energy ratio slows down the pace of solar capacity expansion, affecting progress toward India’s net-zero commitments. Eg: In Tamil Nadu, where land is both fertile and scarce, competing demands between agriculture and solar installations have delayed key solar proposals.

    What role can artificial photosynthesis play in renewable energy?

    • Direct Conversion of Sunlight into Fuel: Artificial photosynthesis (APS) mimics natural photosynthesis to convert sunlight, water, and CO₂directly into fuels like green methanol or hydrogen, offering a clean, efficient alternative to traditional energy-intensive processes.
    • Bypasses Inefficiencies in Current Technologies: APS has the potential to eliminate multiple energy-loss steps such as electrolysis, storage, and reconversion, thereby enhancing the overall energy efficiency of renewable fuel production systems.

    Why invest in next-gen renewable tech like RFNBO? (Way forward)

    • Enhances Energy Independence: Renewable Fuels of Non-Biological Origin (RFNBO) can reduce India’s heavy reliance on imported fossil fuels (currently ~85%), promoting energy self-sufficiency in a geopolitically volatile world.
    • Supports Diverse and Efficient Decarbonisation: RFNBO technologies enable the production of cleaner fuels like green hydrogen, ammonia, and methanol using renewable electricity, offering higher efficiency and adaptability for industrial and transport sectors.
    • Future-Proofing India’s Energy Strategy: Investing in RFNBO ensures India is aligned with global clean energy innovations, allowing it to meet net-zero targets and remain competitive in emerging green fuel markets.

  • IMF releases World Economic Outlook (WEO)

    Why in the News?

    The International Monetary Fund (IMF) has released the July 2025 update to its World Economic Outlook (WEO).

    IMF releases World Economic Outlook (WEO)

    About World Economic Outlook (WEO):

    • Published By: International Monetary Fund (IMF)
    • Frequency: Biannual (April, October) + updates in January and July
    • Purpose: Provides global forecasts on GDP, inflation, trade, and policy trends
    • Data Sources: IMF consultations with member nations and internal models
    • Audience: Governments, institutions, investors, researchers
    • July 2025 Update Title: “Global Economy: Tenuous Resilience amid Persistent Uncertainty”

    Key Highlights – July 2025 Update:

    • Global Growth Projections:
      • 2025: 3.0% (↑ from 2.8% in April)
      • 2026: 3.1% (↑ from 3.0%)
    • Despite multiple shocks—COVID-19, the Ukraine war, tariff increases—global growth continues.
      However, resilience remains fragile due to:

      • US–China tariff tensions and rising protectionism
      • Conflicts in Ukraine and the Middle East
      • High public debt in advanced economies is raising interest rates
    • Country Forecasts for 2025:  United States: 1.9%,  China: 4.8% (↑ from 4.0%),  Euro Area: 1.0%,  Germany: 0.1%,  United Kingdom: 1.2%,  Japan: 0.7%,  Russia: 0.9%,  Pakistan: 2.7%.

    India – The Bright Spot:

    • Growth Rate: 2023: 9.2%;  2024: 6.5%;  2025: 6.4% (strongest among major economies).
    • Drivers of Growth:
      • Robust domestic demand
      • Strong services and manufacturing output
      • Effective inflation and monetary policy management
    • Strategic Position:
      • Set to overtake several advanced economies in GDP size
      • Viewed globally as a “bright spot” amid persistent uncertainties
    [UPSC 2014] Which of the following organisations brings out the publication known as ‘World Economic Outlook?

    Options: (a) The International Monetary Fund * (b)The United Nations Development Programme (c) The World Economic Forum (d) The World Bank

     

  • What are Skill Impact Bonds (SIB)?

    Why in the News?

    Skill Impact Bonds (SIB) were recently highlighted by the Skill Development Ministry.

    About the Skill Impact Bond:

    • Launched: November 2021
    • Nature: India’s first Development Impact Bond (DIB) focused on employment-linked skill development
    • Lead Agency: National Skill Development Corporation (NSDC), under the Ministry of Skill Development and Entrepreneurship
    • Collaborators: British Asian Trust, HSBC India, Michael & Susan Dell Foundation
    • Target: Train and place 50,000 youth over 4 years, with 62% women participation
    • How it Works:
      • Risk Investors: Provide upfront capital to training providers
      • Training Providers: Deliver skill training and ensure job placements
      • Outcome Funders: Repay investors only if job outcomes are achieved
      • Evaluators: Independently assess outcomes via CATI surveys and document verification

    Key Features:

    • Outcome-Focused Approach: Measures success by certification, placement, and 3-month retention, not just enrolment
    • Eligibility Criteria:
      • Age: 18–40 years; Education: Undergraduate or below
      • Status: Unemployed or earning below ₹15,000/month, or household income below ₹25,000/month
    • Sectoral Coverage: Retail, Healthcare, Apparel, Logistics, Information Technology & IT-enabled Services, Banking, Financial Services & Insurance.
    • Women-Focused Design: Ensures 62% female participation to bridge the gender employment gap
    [UPSC 2018] With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:

    1. It is the flagship scheme of the Ministry of Labour and Employment.

    2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.

    3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.

    Which of the statements given above is/are correct?

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

     

  • [pib] Digital Payments Index (DPI)

    Why in the News?

    According to the Reserve Bank of India (RBI), digital payments registered a 12.6% year-on-year rise as of March 31, 2024, as measured by the RBI’s Digital Payments Index (DPI).

    About RBI’s Digital Payments Index (DPI):

    • Launched by: Reserve Bank of India (RBI) in January 2021
    • Purpose: Measures the extent of digital payment adoption across India
    • Base Period: March 2018 (Index value = 100)
    • Release Frequency: Semi-annually (with a 4-month lag)
    • Objective: Track usage, infrastructure, and growth in digital payments
    • Key Parameters (with Weightage): These evaluate infrastructure readiness, transaction volume, user adoption, and innovation.
      1. Payment Enablers – 25%
      2. Payment Infrastructure – Demand Side – 10%
      3. Payment Infrastructure – Supply Side – 15%
      4. Payment Performance – 45%
      5. Consumer Centricity – 5%

    Growth Highlight:

    • Growth Trends in RBI-DPI: DPI grew nearly 5 times from 100 in March 2018 to 493.22 in March 2025, reflecting India’s rapid digital payment adoption.
    • Nearly 5× increase from the base value in 7 years
    • Driven by rapid expansion of Unified Payments Interface (UPI), mobile wallets, and QR code infrastructure
    [UPSC 2024] Consider the following countries:

    I. United Arab Emirates II. France III. Germany IV. Singapore V. Bangladesh

    How many countries amongst the above are there other than India where international merchant payments are accepted under UPI?”

    Options: (a) Only two (b) Only three* (c) Only four (d) All the five

    Answer: (b) Only three (UAE, France, Singapore)