Tourism Sector

PRASHAD Scheme

Why in the News?

The long-awaited Chamundi Hills development project in Karnataka is finally gaining momentum under the Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASHAD) scheme.

About the PRASHAD Scheme:

  • Launch: It was launched in 2014–15 by the Ministry of Tourism.
  • Core Objective: It aims to revitalize pilgrimage sites and develop spiritual tourism infrastructure across India.
  • Scope and Mission: In 2017, PRASHAD was upgraded to a National Mission, integrating features of the HRIDAY scheme to create a unified heritage and spiritual site development model.
  • Cultural Focus: The scheme emphasises cultural preservation, community involvement, and promoting both domestic and international spiritual tourism.
  • Implementation:
    • Executing Agencies: Projects are executed by state-level agencies appointed by the respective state or union territory governments.
    • Funding Model: The scheme offers 100% central financial assistance for eligible infrastructure and development components.
    • Public-Private Support: It encourages Corporate Social Responsibility (CSR) contributions and Public-Private Partnerships (PPP) to expand sustainability and local ownership.
    • Centre-State Collaboration: Implementation is designed to ensure close cooperation between central and state governments while respecting local cultural and religious traditions.

Key Features:

  • Infrastructure Development: Roads, drinking water, sanitation, solid waste management, lighting, and public conveniences at pilgrimage sites.
  • Connectivity Enhancement: Improved rail, road, and air links to facilitate easier access for pilgrims.
  • Pilgrim Facilities: Creation of accommodation, food courts, wayfinding systems, and security measures for safe and hygienic pilgrimages.
  • Cultural Conservation: Restoration of temples, monuments, ghats, and sacred lakes; integration of cultural traditions in tourism.
  • Community Empowerment: Skill training for locals, development of tourism-linked jobs, and stakeholder participation in project design and operation.
  • Sustainability Focus: Use of eco-friendly technologies, green energy, and promotion of responsible tourism to reduce environmental impact.
[UPSC 2022] The Prime Minister recently inaugurated the new Circuit House near Somnath Temple at Veraval. Which of the following statements are correct regarding Somnath Temple?

1. Somnath Temple is one of the Jyotirlinga shrines.

2. A description of Somnath Temple was given by Al-Biruni.

3. Pran Pratishtha of Somnath Temple (installation of the present day temple) was done by President S. Radhakrishnan.

Select the correct answer using the code given below:

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

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

MGNREGA Scheme

Centre caps MGNREGS spend at 60%

Why in the News?

The Union Finance Ministry has capped spending under the Mahatma Gandhi National Employment Guarantee Scheme (MGNREGS) at 60% of its total annual allocation for the first half of FY 2025-26.

About MGNREGS:

  • Legal Foundation: MGNREGS is a rights-based Centrally Sponsored Scheme launched under the MGNREGA Act of 2005 to ensure the Right to Work for rural households.
  • Origins:
    • The idea of employment guarantee in India began with Maharashtra’s pilot, Employment Guarantee Scheme (MEGS), in 1965 under the V. Naik government.
    • At the national level, the idea was first proposed in 1991 by then PM P. V. Narasimha Rao and later enacted in 2005.
  • Employment Guarantee: It provides 100 days of wage employment per year to any adult willing to do unskilled manual labour in rural India.
  • Legal Obligation: It is the first law in India that imposes a legal duty on the government to provide employment and compensate for non-compliance.
  • Development Goal: The scheme aims to promote livelihood security, inclusive growth, and rural development.

Key Features:

  • Statutory Right: Employment under MGNREGS is a legal entitlement, not just a welfare scheme.
  • Eligibility: Any rural adult aged 18 or above can apply and must be offered work within 15 days.
  • Proximity and Wages: Work must be provided within 5 km of the applicant’s residence with minimum wage, and delays attract compensation.
  • Unemployment Allowance: If work is not provided on time, the state must pay an allowance.
  • Demand-Driven Model: The scheme is worker-initiated, requiring the government to respond to demand.
  • Transparency and Audits: Regular social audits and online updates ensure accountability in job cards, muster rolls, and fund use.
  • Local Implementation: It is decentralised, led by Gram Panchayats, with support from block and state officials, and centrally funded.
  • Women’s Inclusion: At least one-third of beneficiaries must be women, enhancing gender equity.
  • Sustainable Assets: Projects focus on durable rural infrastructure like ponds, roads, canals, and plantations.

Rationale Behind the Spending Cap:

  • Expenditure Control: This cap is part of the Monthly/Quarterly Expenditure Plan to prevent front-loading of funds and mid-year shortages.
  • Previous Trends: In earlier years, over 70% of funds were spent by September, creating dues of ₹15,000–25,000 crore.
  • Current Status: As of June 2025, 28% of the budget is already used, while ₹19,200 crore in dues remain from FY25.
  • Criticism: Experts argue the cap undermines the demand-driven design of the act and may violate the legal right to work.
[UPSC 2006] Consider the following statements in respect of the National Rural Employment Guarantee Act, 2005:

1. The Act provides 100 days of employment to households as a fundamental right.

2. Women are given priority such that half of the employment seekers are women.

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

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Forest Conservation Efforts – NFP, Western Ghats, etc.

Centre sets up Forest Rights Act (FRA) Cells

Why in the News?

Under the Dharti Aba Janjatiya Gram Utkarsh Abhiyaan (DAJGUA), the Ministry of Tribal Affairs has sanctioned the creation of District and State-level Forest Rights Act (FRA) Cells across 18 States and Union Territories.

About Dharti Aba Janjatiya Gram Utkarsh Abhiyaan (DAJGUA)

  • Launch: It was launched in October 2024 by Ministry of Tribal Affairs.
  • Mission Goal: The initiative aims to promote holistic development of tribal communities by addressing gaps in infrastructure, livelihoods, education, and health.
  • Geographical Reach: The program covers over 63,843 tribal-dominated villages across 30 States/UTs, 2,911 blocks, and 549 districts, benefitting over 5 crore tribal people.
  • Funding: The total budget is ₹79,156 crore, with a central share of ₹56,333 crore and a state share of ₹22,823 crore.
  • Inspiration: DAJGUA is modelled after the PM-JANMAN Scheme, which focuses specifically on the welfare of Particularly Vulnerable Tribal Groups (PVTGs).

What are FRA Cells under DAJGUA?

  • Overview: FRA Cells are administrative support units created under the Dharti Aba Janjatiya Gram Utkarsh Abhiyaan (DAJGUA) to assist in implementing the Forest Rights Act (FRA), 2006.
  • Funding Support: These cells are funded directly by the Union Ministry of Tribal Affairs, marking the first instance of central government financing a structured FRA support mechanism.
  • Objective: The core aim of FRA Cells is to help tribal claimants and Gram Sabhas prepare and submit forest rights claims, especially in tribal-dominated districts.
  • Goal: FRA Cells aim to reduce delays and rejections in forest rights applications by improving documentation quality and data management.

Key Features of FRA Cells:

  • Coverage Scale: As of 2025, a total of 324 district-level and 17 state-level FRA Cells have been approved across 18 States and Union Territories.
  • Funding Allocation: Each district-level cell is provided ₹8.67 lakh, and each state-level cell receives ₹25.85 lakh, funded as Grants-in-Aid General by the Centre.
  • Operational Functions: FRA Cells assist in document collection, Gram Sabha resolution drafting, conversion of forest villages into revenue villages, land demarcation, digitization, and record uploads to official portals.
  • Limitations: FRA Cells do NOT interfere with the decision-making powers of statutory authorities like Gram Sabhas, Sub-Divisional Level Committees (SDLCs), or District Level Committees (DLCs).
  • Leading States: The highest number of FRA Cells have been approved in Madhya Pradesh (55), Chhattisgarh (30), Telangana (29), Maharashtra (26), Assam (25), and Jharkhand (24).

Back2Basics: Forest Rights Act (FRA), 2006

  • Overview: The law is officially called The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.
  • Objectives: FRA seeks to recognize and vest forest land rights to Scheduled Tribes (STs) and Other Traditional Forest Dwellers (OTFDs) who have traditionally depended on forests but lacked formal land ownership.
  • Major Provisions: It provides for:
    • Ownership of Minor Forest Produce (MFP)
    • Community rights such as grazing and water use
    • Habitat rights for PVTGs
    • Community Forest Resource (CFR) rights to manage and protect forests
  • Institutional Framework: The Act is implemented through a multi-tier system consisting of Gram Sabhas, Forest Rights Committees (FRCs), SDLCs, DLCs, and State Monitoring Committees.
  • Significance: FRA provides legal protection from evictions, supports livelihoods, and enhances local forest governance through community participation and legal recognition.

 

[UPSC 2021] At the national level, which ministry is the nodal agency to ensure effective implementation of the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006?

Options: (a) Ministry of Environment, Forest and Climate Change (b) Ministry of Panchayati Raj (c) Ministry of Rural Development (d) Ministry of Tribal Affairs*

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Primary and Secondary Education – RTE, Education Policy, SEQI, RMSA, Committee Reports, etc.

Mizoram and Goa declared Fully Literate under ULLAS Scheme

Why in the News?

In a major achievement for adult education in India, Mizoram and Goa have declared themselves “fully literate” under the ULLAS Scheme (Understanding Lifelong Learning for All in Society).

What does “Fully Literate” mean under ULLAS?

  • As per the Ministry of Education (August 2024):
    • A person is literate if they can read, write, and compute with comprehension, including essential life skills.
    • A state is considered fully literate if it achieves 95% literacy or more.
  • This aligns with the National Education Policy, 2020 and the UN Sustainable Development Goals (SDGs) target of achieving universal youth and adult literacy by 2030.

About the ULLAS Scheme:

  • Launch: It is a centrally sponsored scheme launched in 2022.
  • Vision: It is based on the spirit of ‘Kartvya Bodh’ (DUTY) and is being implemented through volunteerism.
  • Official Name: It is formally known as the New India Literacy Programme and is being implemented over a five-year period (2022–2027).
  • Core Objective: The scheme aims to provide foundational literacy and numeracy to 5 crore non-literate individuals aged 15 years and above.
  • Key Learning Components:
    • Beyond Basics: In addition to reading, writing, and arithmetic, learners are taught critical life skills, such as financial literacy and digital literacy.
    • Beneficiary Identification: Individuals are identified through door-to-door surveys conducted by schools and local officials across states and UTs.
    • Volunteer Teaching Model: Teaching is provided by volunteers, including school and college students, teacher trainees, and community members.
  • Learning Support and Certification:
    • Learning Materials: The NCERT develops the core content, which is translated and adapted into 22 languages of India by state authorities.
    • Digital and Offline Modes: A mobile app supports the learning process, though offline teaching is also included for inclusive access.
    • Assessment Process: Learners appear for the Functional Literacy and Numeracy Assessment Test (FLNAT) — a 150-mark exam in multiple languages.
    • Certification: Those who pass the FLNAT are certified by the National Institute of Open Schooling (NIOS) for achieving basic literacy and numeracy.

Key Achievements on Full Literacy under ULLAS:

  • State Declarations:
    • Ladakh: First region to be declared fully literate (June 2024)
    • Goa: Declared fully literate with 99.72% literacy
    • Mizoram: Declared fully literate with 98.2% literacy
  • Performance Insights:
    • 100% pass rate in Goa and Tamil Nadu
    • Over 95% in Punjab, Assam, UP
    • Women-majority participation in several states (over 70% in Mizoram, Jharkhand, Tamil Nadu, etc.)
  • Historical Context: ULLAS Scheme builds on earlier adult literacy programs such as:
    • Saakshar Bharat (2009–2018)
    • National Literacy Mission (1988–2009)
    • National Adult Education Programme (1970s–1980s)
[UPSC 2004] Consider the following statements: As per 2001 Census:

1. the two States with the lowest sex ratio are Haryana and Punjab. 2. the two States with the lowest population per sq. km of area are Meghalaya and Mizoram. 3. Kerala has both the highest literacy rate and sex ratio.

Which of the statements given above is/are correct?

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

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

[pib] NAMASTE Scheme

Why in the News?

The Ministry of Social Justice launched the Waste Picker Enumeration App under the National Action for Mechanized Sanitation Ecosystem (NAMASTE) Scheme to support and formalize India’s informal sanitation workforce.

About NAMASTE Scheme:

  • Launch: It is a Central Sector Scheme launched in 2022.
  • Implementing Agencies: It is jointly implemented by the Ministry of Housing and Urban Affairs (MoHUA) and the Ministry of Social Justice and Empowerment (MoSJE), with the National Safai Karamcharis Finance and Development Corporation (NSKFDC) as the executing body.
  • Initial Focus and Expansion: Initially aimed at sewer and septic tank workers (SSWs), the scheme was expanded in June 2024 to include waste pickers.
  • Core Objective: To promote safety, dignity, skill development, and social inclusion for sanitation workers.

Key Features of the Scheme:

  • Identification: The scheme aims to enumerate SSWs and waste pickers to formally integrate them into government support systems.
  • Skill Training: It provides occupational training to ensure sanitation work is safe and professional.
  • Protective Gear: PPE kits are distributed to reduce workers’ health risks.
  • Health Coverage: Workers and their families receive Ayushman Bharat (PM-JAY) health insurance.
  • Safety Equipment: Sanitation Response Units (SRUs) are supported with modern safety tools.
  • Livelihood Support:
    • Encourages mechanized sanitation work.
    • Offers capital and interest subsidies for buying equipment.
  • Collective Formation: Supports sanitation workers in forming Self-Help Groups (SHGs) and sanitation enterprises.
  • Awareness Campaigns: ULBs and NSKFDC conduct campaigns promoting dignified and safe sanitation practices.

Key Achievements (as of May 29, 2025):

  • Enumerated Workers: Over 80,000 sewer and septic tank workers have been identified and validated.
  • Health Coverage: 26,447 health cards issued under PM-JAY.
  • PPE Distribution: 45,781 PPE kits delivered to frontline workers.
  • Safety Kits: 354 Emergency Response Safety Kits provided to sanitation teams.
  • Waste Picker Integration: NAMASTE now aims to profile 2.5 lakh waste pickers, offering them ID cards, insurance, skilling, and livelihood assistance.
[UPSC 2016] Rashtriya Garima Abhiyaan’ is a national campaign to:

Options: (a) rehabilitate the homeless and destitute persons and provide them with suitable sources of livelihood (b) release the sex workers from their practice and provide them with alternative sources of livelihood (c) eradicate the practice of manual scavenging and rehabilitate the manual scavengers* (d) release the bonded labourers from their bondage and rehabilitate them

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

Continuation of Modified Interest Subvention Scheme (MISS) 

Why in the News?

The Union Cabinet has approved the continuation of the Interest Subvention (IS) component under the Modified Interest Subvention Scheme (MISS) for the financial year 2025–26.

About Modified Interest Subvention Scheme (MISS):

  • Central Sector Scheme: It helps farmers get low-interest short-term loans through the Kisan Credit Card (KCC).
  • Nodal Agencies: The scheme is monitored by RBI and NABARD and implemented through Public Sector Banks, RRBs, Cooperative Banks, and Private Banks.
  • Loan Details:
    • Borrowing Limit: Farmers can borrow up to ₹3 lakh at 7% interest.
    • Interest Support: Banks get 1.5% interest support from the government, helping them offer cheaper loans.
    • Extra Discount: Farmers who repay on time get a 3% Prompt Repayment Incentive, reducing their effective interest rate to 4%.
    • For Livestock & Fisheries: Loans up to ₹2 lakh also qualify for this benefit.
  • Digital Support: The Kisan Rin Portal (KRP), launched in August 2023, improves transparency and tracking of loan disbursal.

Back2Basics: Kisan Credit Card (KCC) Scheme

  • Launch: Started in 1998 based on the R.V. Gupta Committee’s recommendation.
  • Who implements it: Managed by Commercial Banks, RRBs, Cooperative Banks, and Small Finance Banks.
  • Purpose and Uses:
    • Gives quick and easy loans for crop expenses, post-harvest needs, and household costs.
    • Supports dairy, poultry, fisheries, and other allied activities.
    • Offers credit for farming-related business investments.
  • Key Features:
    • Collateral-free loans up to ₹2 lakh.
    • Interest rates as low as 4% with timely repayment (under MISS).
    • Loan limit raised to ₹5 lakh in Budget 2025–26.
    • Uses a revolving credit system — farmers can borrow and repay as needed.
    • Flexible repayment is aligned with crop cycles to reduce stress.
  • Additional Benefits:
    • Includes crop insurance under PM Fasal Bima Yojana (PMFBY).
    • Since 2018–19, also covers farmers in animal husbandry and fisheries.
    • Helps farmers avoid moneylenders, promoting financial inclusion.

 

[UPSC 2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

1. Working capital for maintenance of farm assets

2. Purchase of combine harvesters, tractors and mini truck

3. Consumption requirements of farm households

4. Post-harvest expenses

5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

Options: (a) 1, 2 and 5 only (b) 1, 3 and 4 only* (c) 2, 3, 4 and 5 only (d) 1, 2, 3, 4 and 5

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

Centre restores RoDTEP Scheme

Why in the News?

To boost India’s export strength, the government has restored Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme benefits for eligible exports starting June 1, 2025.

Details of the Latest Update:

  • RoDTEP benefits have now been restored for Advance Authorization (AA) holders, Export-Oriented Units (EOUs), and Special Economic Zones (SEZs).
  • These categories were previously excluded from February 5, 2025, but are now eligible again from June 1, 2025.
  • The move ensures a level playing field for all exporters and encourages broad-based export growth.

About the RoDTEP Scheme:

  • Launch: It started on January 1, 2021, as part of the Foreign Trade Policy 2015–20.
  • Objective: It helps exporters get refunds for hidden taxes and duties that are not refunded under other schemes.
    • Examples of Hidden Taxes: These include taxes like electricity duty, mandi tax, and fuel charges during transport.
  • Why it was introduced: RoDTEP replaced the earlier Merchandise Export Incentive Schemes (MIES) after India lost a case at the World Trade Organisation (WTO).
  • Global Compliance: The scheme is WTO-compliant, following the rule that exported goods should not carry domestic taxes.
  • Administered by: It is managed by the Department of Revenue under the Ministry of Finance.

Eligibility under RoDTEP:

  • Who can apply: All Indian exporters — whether manufacturers or merchant exporters — are eligible.
  • Eligible exports: Exports from SEZs, EOUs, and e-commerce platforms are also covered.
  • Not Eligible: Re-exported goods are not eligible for benefits.
  • Sector Focus: The scheme gives priority to labour-intensive sectors that earlier benefitted from MEIS.

How the refund works:

  • Rebate Calculation: The refund is given as a percentage of the export value (Free on Board value).
  • Mode of Refund: The benefit comes in the form of e-scrips, which are stored in a digital ledger by the Central Board of Indirect Taxes and Customs (CBIC).
  • Usage of E-Scrips: These e-scrips can be used to pay basic customs duty or be transferred to other importers.
[UPSC 2020] With reference to the international trade of India at present, which of the following statements is/are correct?

1.  India’s merchandise exports are less than its merchandise imports.

2. India’s imports of iron and steel, chemicals, fertilizers and machinery have decreased in recent years.

3. India’s exports of services are more than its imports of services.

4. India suffers from an overall trade/current account deficit.

Select the correct answer using the code given below:

Options: (a) 1 and 2 only  (b) 2 and 4 only (c) 3 only (d) 1, 3 and 4 only*

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Make in India: Challenges & Prospects

Self-Reliant India (SRI) Fund Scheme

Why in the News?

The Self-Reliant India (SRI) Fund has invested about ₹10,979 crore in 577 MSMEs across India as of March 2025.  The highest number of investee firms are in Karnataka (151), followed by Maharashtra (144) and Delhi (69).

About the Self-Reliant India (SRI) Fund Scheme:

  • Launch: The SRI Fund was launched in 2020 under the Atmanirbhar Bharat Package to provide equity funding to MSMEs with growth potential.
  • Total Corpus: It targets ₹50,000 crore, with ₹10,000 crore from the Government of India and ₹40,000 crore to be raised from private investors.
  • Structure and Management: The fund is a Category-II Alternative Investment Fund (AIF) registered with SEBI.  The fund uses a two-tier structure:
    1. A Mother Fund managed by NSIC Venture Capital Fund Limited (NVCFL).
    2. 60 empanelled Daughter Funds that make direct investments in MSMEs.
  • Progress: As of March 2025, the SRI Fund has invested ₹10,979 crore in 577 MSMEs.
  • Package Alignment: It is a component of the ₹20 lakh crore Atmanirbhar Bharat package, equivalent to 10% of India’s GDP.

Key Features Impact:

  • Funding Type: Offers equity or quasi-equity support to reduce MSMEs’ reliance on debt and strengthen long-term growth.
  • Sectoral Focus: Prioritises manufacturing, services, and high-growth MSMEs, especially those engaged in innovation, R&D, and exports.
  • Addressing Credit Gap: Helps bridge India’s ₹30 lakh crore MSME credit gap by complementing credit guarantee schemes with equity-based support.
  • Revised Eligibility: With the turnover limit raised to ₹500 crore, more companies now qualify for SRI and related MSME support.
[UPSC 2017] The term ‘Domestic Content Requirement’ is sometimes seen in the news with reference to:

Options: (a) Developing solar power production in our country* (b) Granting licenses to foreign T.V. channels in our country. (c) Exporting our food products to other countries. (d) Permitting foreign educational institutions to set up their campuses in our country.

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

SPICED Scheme

Why in the News?

The Spices Board of India has decided to disburse ₹130 crore to almost 45,000 beneficiaries in 2025-2026 under the SPICED (Sustainability in Spice Sector through Progressive, Innovative and Collaborative Interventions for Export Development) Scheme.

Back2Basics: Spices Board of India

  • The merger of the erstwhile Cardamom Board and Spices Export Promotion Council on 26th February 1987, under the Spices Board Act 1986 led to the formation of the Spice Board of India.
  • The Board functions as an international link between the Indian exporters and the importers abroad with a nodal Ministry of Commerce & Industry.
  • It is headed by a Chairman, a rank equivalent to Joint Secretary to the GoI.
  • Headquartered in Kochi, it has regional laboratories in Mumbai, Chennai, Delhi, Tuticorin, Kandla and Guntur.

About SPICED Scheme and its Features:

  • Launch: It is launched by the Spices Board under the Ministry of Commerce and Industry.
  • Timeline and Budget: The scheme runs till 2025–26 with a total outlay of ₹422.30 crore, aligned with the 15th Finance Commission period.
  • Objectives: It aims to boost spice exports, improve cardamom productivity, enhance post-harvest quality, and promote value addition and sustainability.
  • Funding Support: In 2025–26, about ₹130 crore will be distributed to 45,000 beneficiaries.
  • Focus Areas: Includes Mission Value Addition, Mission Clean and Safe Spices, promotion of GI-tagged spices, and development of Spice Incubation Centres.
  • Priority Beneficiaries: Special focus on farmer groups, FPOs, FPCs, SHGs, SC/ST communities, SMEs, and exporters from the North-East.
  • Monitoring: All activities are geo-tagged for transparency and tracking.

Key Facts about Spices Production and Trade:

  • Global Position: India is one of the largest producers and exporters of spices, cultivating 75 of 109 ISO-listed spices.
  • Major Producing States: Include Madhya Pradesh, Rajasthan, Gujarat, Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Assam, and others.
  • Key Spices: India grows and exports pepper, cardamom, chili, ginger, turmeric, coriander, cumin, fennel, celery, nutmeg, and spice oils.
  • Top Products by Volume: Chili, cumin, turmeric, ginger, and coriander account for 76% of production.
  • Export Leaders: Chili is the top export earner, generating around $1.1 billion annually. Ginger exports are growing at 27% CAGR.
  • Export Value: In 2023–24, India exported $4.25 billion worth of spices, capturing 12% of the global spice trade.
  • Export Destinations: India exported to 159 countries. Key markets include China, USA, Bangladesh, UAE, Thailand, Malaysia, Indonesia, UK, and Sri Lanka — together accounting for 70% of exports.
[UPSC 2019] Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?

(a) Spices

(b) Fresh fruits

(c) Pulses

(d) Vegetable oils

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

[pib] 10 Years of 3 Jansuraksha Schemes

Why in the News?

The 3 Jansuraksha Schemes— Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojana (APY) launched by PM Modi on May 9, 2015, have completed 10 years of providing social security coverage to citizens.

About the Jansuraksha Schemes:

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Pradhan Mantri Suraksha Bima Yojana (PMSBY) Atal Pension Yojana (APY)
Type Accidental Insurance Life Insurance Pension Scheme
Eligibility Age 18 to 70 years 18 to 50 years 18 to 40 years (non-taxpayers)
Premium ₹20 per annum ₹436 per annum Varies by age and pension amount
Coverage/Benefit ₹2 lakh (death/total disability), ₹1 lakh (partial) ₹2 lakh (death due to any cause) ₹1,000–₹5,000 monthly pension after age 60
Policy Term 1 year (June 1 – May 31), renewable 1 year (June 1 – May 31), renewable Contribution till age 60; pension begins post-60
Premiums Payment
Auto-Debit: Yes (from bank/post office account) Auto-Debit: Yes (from bank/post office account) Auto-Debit: Yes (monthly/quarterly/half-yearly options)
Administered By Public Sector General Insurance Companies (PSGICs) and other insurers in partnership with participating banks or post offices Life Insurance Corporation of India (LIC) and other participating life insurers, through tie-ups with banks or post offices Pension Fund Regulatory and Development Authority (PFRDA), implemented through banks and post offices
Achievements (as of 2025) 51.06 crore enrolments; ₹3,121.02 crore paid for 1,57,155 claims; 23.87 crore female and 17.12 crore PMJDY enrolments 23.63 crore enrolments; ₹18,397.92 crore paid for 9,19,896 claims; 10.66 crore female and 7.08 crore PMJDY enrolments 7.66 crore enrolments; ~47% are women subscribers

 

[UPSC 2016] Regarding ‘Atal Pension Yojana’, which of the following statements is/are correct?

1. It is a minimum guaranteed pension scheme mainly targeted at unorganized sector workers.

2. Only one member of a family can join the scheme.

3. Same amount of pension is guaranteed for the spouse for life after subscriber’s death.

Select the correct answer using the code given below.

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

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Start-up Ecosystem In India

[pib] Credit Guarantee Scheme for Startups (CGSS)

Why in the News?

The Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce and Industry, has announced the expansion of the Credit Guarantee Scheme for Startups (CGSS).

About Credit Guarantee Scheme for Startups (CGSS):

  • The CGSS was launched on October 6, 2022, as part of the Startup India Action Plan.
  • The scheme is designed to provide collateral-free credit to eligible startups through recognized financial institutions.
  • It offers credit guarantee cover for loans extended by Scheduled Commercial Banks, All India Financial Institutions (AIFIs), Non-Banking Financial Companies (NBFCs), and SEBI-registered Alternative Investment Funds (AIFs).
  • The guaranteed coverage is available in 2 formats:
    1. Transaction-based (for individual borrowers) and
    2. Umbrella-based (for Venture Debt Funds).
  • The scheme helps startups access funding through instruments such as working capital, term loans, and venture debt.
  • The DPIIT is responsible for the oversight and implementation of the scheme.
  • The scheme is operated by the National Credit Guarantee Trustee Company Limited (NCGTC).
  • A Management Committee (MC) and a Risk Evaluation Committee (REC) have been constituted to supervise and review the operations of the scheme.
  • It aligns with the objective of encouraging innovation, supporting early-stage entrepreneurship, and driving economic self-reliance.

Key Changes in the Expanded CGSS:

  • Guarantee ceiling increased from ₹10 crore to ₹20 crore per borrower.
  • Guarantee cover enhanced to:
    • 85% for loans up to ₹10 crore.
    • 75% for loans exceeding ₹10 crore.
  • Annual Guarantee Fee (AGF) reduced from 2% to 1% p.a. for startups in 27 Champion Sectors.
  • The Champion Sectors are identified under the ‘Make in India’ initiative to strengthen domestic manufacturing and services.
[UPSC 2023] Consider the following statements with reference to India:

1. According to the ‘Micro, Small and Medium Enterprises Development (MSMED) Act, 2006’, the ‘medium enterprises’ are those with investments in plant and machinery between Rs. 15 crore and Rs. 25 crore.

2. All bank loans to the Micro, Small and Medium Enterprises qualify under the priority sector.

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

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Coal and Mining Sector

[pib] Cabinet approves Revised SHAKTI Policy 

Why in the News?

The Cabinet Committee on Economic Affairs (CCEA) has approved a proposal under the Revised SHAKTI (Scheme to Harness and Allocate Koyla Transparently in India) Policy to enhance coal availability for Central/State Sector Thermal Power Plants and Independent Power Producers (IPPs).

About the SHAKTI Policy:

  • The SHAKTI Policy, launched in 2017 by the Ministry of Power, created a transparent mechanism to allocate coal linkages to thermal power plants lacking Fuel Supply Agreements (FSAs).
  • It replaced the earlier nomination-based system with auction-based and tariff-based bidding, enhancing fairness and transparency.
  • While government-owned plants continue receiving coal through nominations, private power producers must obtain coal via competitive bidding.
  • The policy aimed to reduce coal imports, promote the domestic coal industry, and improve energy self-sufficiency.
  • It also intended to revive stressed assets in the power sector, indirectly supporting public sector banks and infrastructure growth.

Key Features of the Revised SHAKTI Policy (2024):

  • The revised 2024 policy simplifies the system by merging eight criteria into just two windows, enhancing the ease of doing business.
  • Window-I allocates coal at notified prices to central and state government utilities, their joint ventures, and subsidiaries, including those with PPAs under Section 62 of the Electricity Act.
  • Window-II permits coal and imported coal-based producers to acquire coal through premium-based auctions for 12 to 25 years, without requiring a PPA.
  • The policy encourages pithead plants, supports new capacity planning, and allows Imported Coal-Based (ICB) plants to transition to domestic coal, reducing import reliance.
  • Existing FSA holders can now purchase coal beyond 100% of their Annual Contracted Quantity (ACQ) during periods of peak demand.
  • Unrequisitioned surplus electricity can be sold on power exchanges, boosting plant utilization.
  • The policy imposes no additional financial burden on coal companies.
  • Beneficiaries include thermal power plants, Coal India, SCCL, railways, state governments, and end consumers.
[UPSC 2023] With reference to coal-based thermal power plants in India, consider the following statements:

1. None of them uses seawater.

2. None of them is set up in water-stressed district.

3. None of them is privately owned.

How many of the above statements are correct?

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

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Road and Highway Safety – National Road Safety Policy, Good Samaritans, etc.

Cashless Treatment Scheme for Road Accident Victims

Why in the News?

The Ministry of Road Transport and Highways (MoRTH) has officially notified the Cashless Treatment of Road Accident Victims Scheme, 2025, which came into force on May 5, 2025.

In 2023, India reported over 4.80 lakh road accidents and 1.72 lakh fatalities, highlighting the urgent need for such a scheme.

About the Cashless Treatment Scheme for Road Accident Victims, 2025:

  • The scheme provides financial coverage up to ₹1.5 lakh per person, per accident, for a maximum of seven days from the date of the accident.
  • All victims, including those without health insurance, are eligible for treatment under this scheme.
  • This initiative was introduced following a Supreme Court directive, urging action under Section 162(2) of the Motor Vehicles Act, 1988.
  • The scheme aims to deliver critical care during the golden hour, defined under Section 2(12A) as the first hour after a traumatic injury, when prompt treatment can save lives.

Key Features of the Scheme:

  • Treatment must be provided immediately and is fully covered up to ₹1.5 lakh for up to 7 days from the accident.
  • Designated hospitals are required to treat victims without delay or demanding any upfront payment.
  • Non-designated hospitals may only offer initial stabilisation, as defined in the guidelines.
  • The State Road Safety Council serves as the nodal agency for implementation at the state level.
  • The Council will work with the National Health Authority (NHA) to onboard hospitals, monitor care, and ensure timely reimbursements.
  • Additional hospitals may be designated by State Health Agencies, beyond those already listed under Ayushman Bharat PM-JAY.
  • Hospitals must file payment claims via an online portal, attaching all required documentation.
  • The State Health Agency will process claims and may approve, partially approve, or reject them, with reasons provided.
  • A national steering committee, chaired by the MoRTH Secretary and NHA CEO, will oversee the scheme’s implementation and compliance.
[UPSC 2023] Consider the following actions:

1. Detection of car crash/collision which results in the deployment of airbags almost instantaneously

2. Detection of accidental free fall of a laptop towards the ground which results in the immediate turning off of the hard drive.

3. Detection of the tilt of the smart phone which results in the rotation of display between portrait and landscape mode.

In how many of the above actions is the function of accelerometer required?

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

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Land Reforms

India to showcase SVAMITVA Scheme at World Bank Land Conference

Why in the News?

India’s SVAMITVA Scheme will be showcased at the World Bank Land Conference, highlighting its role in land governance reform, climate action, and rural empowerment.

About SVAMITVA (Survey of Villages and Mapping with Improvised Technology in Village Areas):

  • Launched on 24th April 2020 by the Ministry of Panchayati Raj, the SVAMITVA Scheme aims to provide legal ownership of residential properties in rural areas using drone and geospatial technology.
  • It is a Central Sector Scheme, fully funded by the Centre.
  • It involves the Ministry of Panchayati Raj, Revenue Departments at the state level, and the Survey of India as the technical partner.
  • The scheme issues property cards to rural households, reducing land disputes and enhancing financial inclusion.
  • These cards serve as legally valid ownership documents (e.g., Gharauni in Uttar Pradesh, Adhikar Abhilekh in Madhya Pradesh), and the scheme aims to formalize property rights in rural India.

Key Features:

  • Drone-based technology ensures high-resolution mapping of village areas for transparency and accuracy.
  • Uses Continuous Operating Reference System (CORS) to achieve mapping precision up to 5 cm.
  • The Gram Manchitra platform helps in village-level development planning, disaster risk mitigation, and infrastructure management.
  • Aims to unlock land value estimated at USD 1.162 trillion, formalizing property ownership and enabling its use as a financial asset.
  • Promotes collaboration between central and state governments and aims to reduce litigation and improve rural governance.
[UPSC 2024] With reference to the Digital India Land Records Modernisation Programme, consider the following statements:

1. To implement the scheme, the Central Government provides 100% funding.

2. Under the Scheme, Cadastral Maps are digitised.

3. An initiative has been undertaken to transliterate the Records of Rights from local language to any of the languages recognized by the Constitution of India.

Which of the statements given above are correct?

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

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Organic Farming – Paramparagat Krishi Vikas Yojna (PKVY), NPOF etc.

Bio-Input Resource Centres (BRCs) to Promote Natural Farming

Why in the News?

The Union Ministry of Agriculture and Farmers’ Welfare has come up with the guidelines for setting up of bio-input resource centres (BRC) under the National Mission on Natural Farming (NMNF).

What are Bio-Input Resource Centres (BRCs)?

  • BRCs are part of the National Mission on Natural Farming (NMNF), aimed at promoting chemical-free and sustainable agriculture.
  • BRCs will produce, store, and supply bio-inputs like Jeevamrit, Beejamrit, and Neemastra using local livestock by-products and plant-based materials.
  • Key Functions:
    1. Local Production: Ensures availability of bio-fertilizers and bio-pesticides, reducing dependency on synthetic inputs.
    2. Training: Provides training on bio-input preparation and natural farming techniques.
    3. Entrepreneurship: Promotes local entrepreneurship, empowering self-help groups (SHGs) and farmers.
    4. Affordability: Aims to make sustainable farming practices accessible to small and marginal farmers.
  • Financial support of Rs 1 lakh per BRC are provided in two tranches of Rs 50,000, though experts raise concerns about its adequacy for infrastructure.

Back2Basics: National Mission on Natural Farming (NMNF):

  • NMNF is a Centrally Sponsored Scheme was launched on November 2024 under the Ministry of Agriculture & Farmers’ Welfare, promoting chemical-free farming.
  • Objectives:
    • Focus on eco-friendly practices and organic methods.
    • Reduce input costs by minimizing chemical usage.
    • Restore soil health, promote biodiversity, and improve climate resilience.
  • Implementation Strategy:
    • Establish 15,000 clusters across Gram Panchayats.
    • Train 1 crore farmers and implement practices on 7.5 lakh hectares.
    • Establish 10,000 BRCs for bio-input accessibility.
    • Deploy 30,000 Krishi Sakhis for mobilization.
  • Financial Outlay: ₹2,481 crore until 2025-26.
[UPSC 2021] How is permaculture farming different from conventional chemical farming?

1.Permaculture farming discourages monocultural practices, but in conventional chemical farming, monoculture practices are predominant. 2.Conventional chemical farming can cause an increase in soil salinity, but this phenomenon is not observed in permaculture farming. 3.Conventional chemical farming is easily possible in semi-arid regions, but permaculture farming is not so easily possible in such regions. 4.The practice of mulching is very important in permaculture farming but not necessarily so in conventional chemical farming.

Select the correct answer using the code given below:

Options: (a) 1 and 3  (b) 1, 2, and 4* (c) 4 only (d) 2 and 3

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Poverty Eradication – Definition, Debates, etc.

Support for Marginalised Individuals for Livelihood and Enterprise (SMILE) Scheme

Why in the News?

Under the SMILE scheme, the Union Social Justice Ministry has identified only 9,958 beggars across 81 cities, compared to 3.72 lakh recorded in the 2011 Census.

About the SMILE Scheme:  

  • The Ministry of Social Justice and Empowerment launched the SMILE scheme in 2022.
  • It is a Central Sector Scheme to rehabilitate individuals engaged in begging and empower transgender persons.
  • It focuses on rehabilitation, livelihood opportunities, skill development, and social empowerment for marginalized individuals.
  • It combines previous programs targeting beggars and transgender persons, providing a more cohesive approach to their empowerment.
  • Key Components:
    • Shelter Homes: Utilizes existing shelter homes managed by state/UT governments; new homes will be established where necessary.
    • Livelihood Support: Provides education, documentation, skill development, and economic linkages to help individuals become self-sufficient.
    • Target Beneficiaries: Around 60,000 marginalized individuals.
  • Implementation:
    • Pilot project has been launched in 30 cities (Phase 1) and extended to 50 more cities (Phase 2).
    • A local survey identifies individuals engaged in begging, aiming to rehabilitate 25 individuals per survey.
    • ₹100 crore has been allocated for FY 2023-24 to 2025-26, with ₹14.71 crore spent by December 2024 on identification and rehabilitation.

Issues in Implementation:

  • Inadequate Shelter Infrastructure: Some regions face a lack of facilities for rehabilitation.
  • Resistance to Rehabilitation: Some individuals resist rehabilitation due to socio-economic factors or distrust in government schemes.
  • Funding and Resource Constraints: Ongoing financial investment is required for sustainability.
  • Sustainability of Rehabilitation: Long-term support is essential for successful reintegration into society.
[UPSC 2016] ‘Rashtriya Garima Abhiyaan’ is a national campaign to-

(a) rehabilitate the homeless and destitute persons and provide them with suitable sources of livelihood*

(b) abolish the Child Labour

(c) salvage the marshy lands and wetlands in the coastal areas and cultivate crops in them

(d) rehabilitate the manual scavengers and provide them with suitable sources of livelihood

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Air Pollution

Particulate Matter Emission Trading Scheme in Gujarat

Why in the News?

A new study highlights the success of Surat’s Particulate Matter Emission Trading Scheme (PM-ETS), the world’s first market-based system for trading particulate emissions.

The scheme has reduced pollution by 20-30%, providing insights into its potential to improve air quality in industrial areas.

About Particulate Matter Emission Trading Scheme in Gujarat:

  • This PM ETS was launched in Surat, Gujarat in 2019.
  • It is the world’s first pilot project targeting particulate pollution using a market-based emissions trading system.
  • It is India’s first emissions trading initiative for any pollutant.
  • The scheme aims to reduce emissions from industries using solid (coal, lignite) and liquid fuels (diesel) by controlling fine particulate matter (PM).
  • How It Works?
    • Cap-and-Trade: Regulators set a cap on total emissions, and industries are issued permits (1 kg of particulate matter per permit).
    • Permit Allocation: 80% of permits are given for free; 20% are sold via auctions.
    • Market Trading: Permits can be bought or sold to meet emission targets. A ceiling price (Rs 100/kg) and floor price (Rs 5/kg) are set.
    • Compliance: Non-compliant industries face fines double the ceiling price for each excess emission.

Successes of PM-ETS:

  • Reduction in Emissions: Participating plants cut emissions by 20-30% compared to traditional methods.
  • Improved Compliance: 99% compliance in participating plants.
  • Cost-Effective: The system allowed industries to choose the most cost-effective methods for compliance.

Limitations of PM-ETS:

  • Over-reliance on Free Permits: Smaller plants may struggle as the number of free permits decreases.
  • Supply Chain Limitations: Tightened caps could increase costs for industries not reducing emissions.
  • Market Manipulation: Concerns over unfair permit trading.
  • Geographical Constraints: Limited to Surat, restricting broader impact.
[UPSC 2011] Regarding “carbon credits’’, which one of the following statements is not correct?

(a) The carbon credit system was ratified in conjunction with the Kyoto protocol.

(b) Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota.

(c) The goal of the carbon credit system is to limit the increase of carbon dioxide emission.

(d) Carbon credits are traded at a price fixed from time to time by the United Nations environment programs. *

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Higher Education – RUSA, NIRF, HEFA, etc.

PM-Vidyalaxmi Scheme

Why in the News?

The PM Vidyalaxmi scheme, aimed at supporting meritorious students, is facing slow uptake due to technical issues, including login failures and frequent auto logouts

About the PM Vidyalaxmi Scheme:

Details
Objective A Central Sector Scheme to provide financial assistance to meritorious students pursuing higher education in quality institutions.
Eligible Students Students gaining admission to the top 860 Quality Higher Education Institutions (QHEIs), including government and private institutions.
Annual Family Income Criteria Up to ₹8 lakh for students who do not qualify for other government scholarships or interest subsidies.
Eligibility Based on NIRF Rankings Top 100 institutions in overall, category-specific, and domain-specific NIRF lists.
State government-run institutions ranked 101-200.
All Central government-governed institutions.
Loan Amounts • Loans up to ₹7.5 lakh with a 75% credit guarantee.
• For loans up to ₹10 lakh, 3% interest subvention during the moratorium period.
Target Beneficiaries Approximately 1 lakh students each year, with preference for students in technical or professional courses from government institutions.
Financial Outlay ₹3,600 crore for the period from 2024-25 to 2030-31.
Expected Impact Benefit for 7 lakh new students through interest subvention during the scheme’s duration.
Application Process Applications can be submitted via the PM-Vidyalaxmi portal for loans and interest benefits.
Payment Processing Interest support payments through e-vouchers and Central Bank Digital Currency (CBDC) wallets.

 

[UPSC 2017] What is the purpose of Vidyanjali Yojana’?

1. To enable the famous foreign campuses in India.

2. To increase the quality of education provided in government schools by taking help from the private sector and the community.

3. To encourage voluntary monetary contributions from private individuals and organizations so as to improve the infrastructure facilities for primary and secondary schools.

Select the correct answer using the code given below:

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

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Hunger and Nutrition Issues – GHI, GNI, etc.

PM-POSHAN Scheme

Why in the News?

The material cost for the PM-POSHAN (Pradhan Mantri Poshan Shakti Nirman) Scheme has been increased by 9.5%, resulting in an additional cost of ₹954 crore to be incurred by the Centre in the 2025-26 financial year.

About PM-POSHAN Scheme:

  • The PM-POSHAN Scheme, formerly known as the Mid-Day Meal Scheme, is a centrally sponsored initiative aimed at providing a hot, cooked meal to children studying in government and government-aided schools across India.
  • Launched under the Ministry of Education, it focuses on improving children’s nutritional status, school participation, retention, and attendance.
  • The scheme complements POSHAN Abhiyan and Mission POSHAN 2.0 to improve nutrition among children and mothers.

Key Features:

  • Target Group: It serves 11.20 crore children in Balvatikas (pre-primary classes) and Classes 1-8 in 10.36 lakh schools. Special focus is placed on disadvantaged children from low-income backgrounds.
  • Nutritional Goals: The scheme provides balanced meals to meet children’s nutritional needs.
    1. Primary Students: 20g pulses, 50g vegetables, 5g oil.
    2. Upper Primary Students: 30g pulses, 75g vegetables, 7.5g oil.
  • Model: The Centre provides 100% funding for food grains through the Food Corporation of India (FCI), while States contribute to meal implementation.
  • Funding Pattern:
    • 60:40 between Centre and States/UTs with the legislature.
    • 90:10 for Northeastern and Himalayan States.
    • 100% central funding for UTs without legislature.
  • 26 lakh metric tonnes of food grains are provided annually, with transportation costs covered by the Centre.
  • It also has a component to promote the development of School Nutrition Gardens in schools
  • Social Audit of the scheme is made mandatory in all the districts.
[UPSC 2014] Which of the following can be said to be essentially the parts of Inclusive Governance?

1 Permitting the Non-Banking Financial Companies to do banking

2 Establishing effective District Planning Committees in all the districts

3 Increasing the government spending on public health

4 Strengthening the Mid-Day Meal Scheme

Select the correct answers using the codes given below:

(a) 1 and 2 only (b) 3 and 4 only (c) 2, 3 and 4 only (d) 1, 2, 3 and 4

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Electronic System Design and Manufacturing Sector – M-SIPS, National Policy on Electronics, etc.

[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

 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

JOIN THE COMMUNITY

Join us across Social Media platforms.

💥UPSC 2026, 2027 UAP Mentorship - Aug Batch Starts
💥UPSC 2026, 2027 UAP Mentorship - Aug Batch Starts