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Type: Prelims Only

  • Tribal Council says Shompen concerns overlooked in the Great Nicobar Island project

    Why in the News?

    The Tribal Council of Great and Little Nicobar has raised concerns that the Great Nicobar Island (GNI) Project could lead to assimilation and disturbance of the Shompen, a Particularly Vulnerable Tribal Group (PVTG).

    What is the GNI Project?

    • Large infrastructure and township project in Great Nicobar.
    • Estimated cost: around ₹91,000 crore.
    • Includes a proposed power plant at Galathea, near Shompen settlements.

    Who are the Shompen?

    • Hunter-gatherer indigenous community.
    • Fewer than 300 members.
    • Recognised as a PVTG.
    • Their isolation makes contact, displacement and forced assimilation particularly sensitive.

    What are PVTGs?

    • PVTG = Particularly Vulnerable Tribal Group: Identified based on characteristics such as:
    • Pre-agricultural technology
    • Low literacy
    • Stagnant or declining population
    • Economic backwardness
    • India recognises 75 PVTGs.

    Key Concerns

    • Assimilation: Proposal to shift the Shompen towards a modern lifestyle.
    • Displacement: Concern over possible settlement and relocation.
    • Consent: Questions regarding consultation over wildlife reserves and project decisions.
    • Health risks: Contact with isolated communities can expose them to diseases and other risks.
    • Assurance gap: Earlier assurance stated that the project would not disturb or displace the Shompen.

    Laws Protecting Tribal Rights

    • Forest Rights Act, 2006: Recognises individual and community forest rights.
    • PESA, 1996: Provides self-governance and consent provisions in Scheduled Areas.
    • Andaman and Nicobar Islands (Protection of Aboriginal Tribes) Regulation, 1956: Restricts entry into tribal reserves.

    Government Initiatives

    • PM-JANMAN: Development of PVTG households and habitations.
    • Development of PVTGs Scheme: Habitat-specific support for 75 PVTGs.

    “[2009] In which one of the following places is the Shompen tribe found?

    (a) Nilgiri Hills

    (b) Nicobar Islands

    (c) Spiti Valley

    (d) Lakshwadeep Islands

  • NCSC to review Union de-reservation proposals of last three years

    The National Commission for Scheduled Castes (NCSC) has decided to comprehensively review all proposals from the Centre over the last three years to dereserve government posts. The decision has exposed a running clash between the Commission and Union departments over the practice of filling reserved vacancies as unreserved ones, particularly in promotion vacancies. The Commission holds that such proposals are often incomplete and fail to show alternate efforts to fill reserved posts.

    What is de-reservation?

    1. Definition: De-reservation is the practice of filling a reserved vacancy as an unreserved one, permitted only in exceptional circumstances.
    2. General ban: Department of Personnel and Training rules impose a general ban on dereserving posts, with very specific exceptions.
    3. Direct recruitment exception: A direct recruitment vacancy may be dereserved only where a Group A service vacancy cannot be allowed to remain vacant in public interest.

    What is the National Commission for Scheduled Castes (NCSC)?

    1. Constitutional body: The NCSC is a constitutional body established under Article 338 to safeguard the interests of Scheduled Castes against exploitation and to ensure their social, economic and educational advancement.
    2. Composition: It consists of a Chairperson, a Vice Chairperson and three other members appointed by the President.
    3. Advisory role on de-reservation: Any de-reservation proposal must first be examined by the Commission before it proceeds further.

    What is the current status of reservation in India?

    1. Category wise quotas: Scheduled Castes hold 15 per cent, Scheduled Tribes 7.5 per cent, Other Backward Classes 27 per cent for the non creamy layer, and Economically Weaker Sections 10 per cent.
    2. Ceiling position: The judicially settled ceiling on reservation is 50 per cent, subject to exceptions such as the EWS quota upheld by the Supreme Court.
    3. Promotion reservation: Reservation in promotions for SCs and STs is permitted subject to data on backwardness, inadequate representation and administrative efficiency.
    4. Backlog and de-reservation: Reserved vacancies that remain unfilled generate a recurring pressure to dereserve, which the Commission is now examining across the last three years.

    Constitutional provisions related to reservation:

    1. Article 338: Establishes the NCSC and empowers it to investigate and monitor safeguards for Scheduled Castes, with the powers of a civil court.
    2. Article 16(4): Enables reservation in appointments for backward classes inadequately represented in state services.
    3. Article 16(4A): Enables reservation in promotions with consequential seniority for SCs and STs inadequately represented.
    4. Article 335: Requires that SC and ST claims be considered consistently with the maintenance of efficiency of administration.
    5. Article 341: Empowers the President to specify the castes deemed Scheduled Castes for a State or Union Territory.

    Why is the NCSC reviewing de-reservation proposals now?

    1. Recurring incompleteness: The Commission found that de-reservation proposals are often incomplete and do not reveal the alternate efforts made to fill the reserved posts.
    2. Consistent rejection: In four of the five Full Commission meetings held since 2024, de-reservation featured high on the agenda, and none of the proposals was agreed to by the NCSC.
    3. Spread of proposals: Proposals came for posts in public sector undertakings and in the Ministries of Law and of Housing and Urban Affairs, the Narcotics Control Bureau, the Central Reserve Police Force and the Ministry of Electronics and Information Technology.
    4. Objection window extended: Nudging by the Commission led the Department of Personnel and Training to double the time SC and ST Commissions get to object, from two weeks to one month.
    5. Systemic remedy sought: The June 4 Full Commission meeting resolved to examine recurring issues and formulate recommendations for effective implementation of the reservation policy.

    What is the procedure for de-reservation?

    1. First scrutiny: A proposal is examined first by the National Commissions for SCs, STs or OBCs, whichever is applicable.
    2. Committee of Secretaries: It then goes to a Committee of Secretaries of the concerned Department, the Department of Personnel and Training and the Social Justice Ministry.
    3. Final authority in direct recruitment: The final decision rests with the Minister of Personnel and Training.
    4. Weaker check in promotions: For promotion vacancies, the recruiting Department or Ministry retains the final say even though it must submit a proposal to the National Commissions and the Department of Personnel and Training.
    5. Alternatives suggested: The Commission proposed that departments explore deputation or short term contracts to fill reserved vacancies with eligible SC candidates rather than dereserving them.

    What are the major debates surrounding de-reservation?

    1. Public interest versus social justice: The Group A public interest exception is contested where it is used to bypass the effort to find eligible reserved candidates.
    2. Weak promotion safeguard: The Commission’s objection carries less weight for promotion vacancies, where the recruiting Ministry retains the final say.
    3. Efficiency argument: Departments invoke administrative efficiency under Article 335, while the Commission stresses the mandate to fill reserved posts first.
    4. Data transparency: The dispute turns on whether departments disclose the alternate efforts and backlog data that justify de-reservation.

    Conclusion: The NCSC has decided to review all Union de-reservation proposals of the last three years and to formulate recommendations on their recurring shortcomings. The immediate friction is the Commission’s finding that such proposals hide the alternate efforts made to fill reserved posts. The next step is the Commission’s examination of the flagged proposals and its recommendations to secure effective implementation of the reservation policy.

    Back2Basics: National Commission for Scheduled Castes

    1. Governing provision: Article 338 of the Constitution.
    2. Origin: Created in its present form by the 89th Constitutional Amendment Act, 2003, which bifurcated the earlier combined Commission for SCs and STs.
    3. Composition: Chairperson, Vice Chairperson and three other members appointed by the President by warrant.
    4. Powers: Investigates and monitors safeguards, inquires into specific complaints, and has the powers of a civil court while inquiring.
    5. Reporting: Submits reports to the President, which are laid before Parliament.

    Way Forward:

    1. Mandatory disclosure: Require every de-reservation proposal to attach the record of alternate efforts and the backlog position.
    2. Strengthen promotion check: Give the Commission a binding role in promotion vacancy de-reservation, not merely a consultative one.
    3. Backlog drives: Conduct special recruitment drives to clear reserved vacancy backlogs before considering de-reservation.
    4. Time bound examination: Use the extended one month window to ensure substantive scrutiny rather than lapse by default.
    5. Deputation and contract routes: Institutionalise deputation and short term contracts to keep reserved posts within the reservation policy.

    Matching Previous Year Question

    “[2018 GS2 10m] Whether National Commission for Scheduled Castes (NCSC) can enforce the implementation of constitutional reservation for the Scheduled Castes in the religious minority institutions? Examine.”

  • Inquiry committee finds charges proved against Justice Yashwant Varma; removal under Judges (Inquiry) Act, 1968

    Why in the News?

    A three member inquiry committee found all three charges proved against former judge Justice Yashwant Varma over unexplained burnt currency found at his official residence. The key issue is whether Parliament can continue the removal process after his resignation.

    Judicial Removal Process

    Under the Judges (Inquiry) Act, 1968:

    1. Motion: Signed by 100 Lok Sabha or 50 Rajya Sabha members.
    2. Admission: Speaker/Chairman may admit or reject it.
    3. Inquiry Committee: Supreme Court Judge, Chief Justice of a High Court, and Distinguished jurist
    4. Parliamentary approval: Motion must pass in both Houses by:
      • Majority of total membership, and
      • 2/3 of members present and voting
    5. Final removal: President issues the removal order.

    Constitutional Provisions

    • Article 124(4): Removal of Supreme Court judges for proved misbehaviour or incapacity.
    • Article 124(5): Parliament can regulate the inquiry procedure.
    • Articles 217 & 218: Apply the removal framework to High Court judges.
    • Article 121: Parliament cannot discuss a judge’s conduct except during a removal motion.

    Varma Inquiry: Three Charges

    1. Unexplained cash: Burnt currency found at his official residence.
    2. Evidence preservation: Failure to preserve the material evidence.
    3. Evasive explanations: Committee found his explanations misleading and unsupported.

    Key Constitutional Issue

    • Removal motion was admitted before his resignation.
    • The law does not expressly clarify whether proceedings can continue after resignation.
    • The issue therefore exposes a legal gap concerning post resignation proceedings and consequences for pension and other benefits.

    “[2019] Consider the following statements:

    1. The motion to impeach a Judge of the Supreme Court of India cannot be rejected by the Speaker of the Lok Sabha as per the Judges (Inquiry) Act, 1968.

    2. The Constitution of India defines and gives details of what constitutes “incapacity and proved misbehaviour” of the Judges of the Supreme Court of India.

    3. The details of the process of impeachment of the Judges of the Supreme Court of India are given in the Judges (Inquiry) Act, 1968.

    4. If the motion for the impeachment of a Judge is taken up for voting, the law requires the motion to be backed by each House of the Parliament and supported by a majority of total membership of that House and by not less than two-thirds of total members of that House present and voting.

    Which of the statements given above is/are correct?

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

  • Retail (CPI) inflation rises to 19-month high of 4.45% in July

    Why in the News?

    India’s CPI (Consumer Price Index) inflation rose to 4.45% in July, driven mainly by food and fuel prices, while remaining within the RBI’s tolerance band.

    What is CPI?

    • CPI = Consumer Price Index
    • Measures changes in retail prices of a fixed basket of goods and services.
    • India’s CPI was rebased to 2024.
    • Sector-wise data under the new series is available from January 2026.

    What Drove Inflation?

    • Food inflation: 5.52%.
    • Onion inflation: 22.54%.
    • Restaurants & accommodation: 7.7%.
    • Transport: 4.4%.
    • Personal care: 14.8%.

    What Remained Stable?

    • Core inflation: 3.9%, excluding food and fuel.
    • Health inflation: 1.3%.
    • Recreation: 1.6%.
      • Stable core inflation suggests limited demand-pull pressure, with the current rise largely driven by supply-side factors.

    Inflation Targeting in India

    • Flexible Inflation Targeting (FIT):
      • Target: 4% CPI inflation
      • Tolerance band: 2% to 6%
      • Implemented by the RBI (Reserve Bank of India).
    • Important RBI Act Provisions
      • Section 45ZA: Inflation target.
      • Section 45ZB: Six-member MPC (Monetary Policy Committee).
      • Section 45ZN: Report to government if inflation target is missed for 3 consecutive quarters.

    Key Challenges

    • Food and weather-related supply shocks.
    • Crude oil price volatility.
    • Geopolitical disruptions.
    • Trade-off between inflation control and growth.
    • Monetary policy transmission lags.

    “[2022] In India, which one of the following is responsible for maintaining price stability by controlling inflation?

    (a) Department of Consumer Affairs

    (b) Expenditure Management Commission

    (c) Financial Stability and Development Council

    (d) Reserve Bank of India

  • NASA invites ISRO to join its mission for lunar outpost

    Why in the News:

    The National Aeronautics and Space Administration (NASA) has invited the Indian Space Research Organisation (ISRO) to join its Moon Base programme, the effort to return humans to the Moon and set up a permanent settlement near the lunar South Pole. The invitation was extended at the ninth meeting of the India and United States Civil Space Joint Working Group, deepening a partnership that already spans the Artemis Accords and a joint radar satellite.

    What was announced and what is the Moon Base programme?

    1. The invitation: NASA invited ISRO to join its Moon Base programme, building on the two countries’ partnership under the Artemis Accords.
    2. The venue: The offer was made at the ninth meeting of the India and United States Civil Space Joint Working Group, held in Bengaluru on 5 and 6 August.
    3. The programme: The Moon Base programme aims to establish humanity’s first outpost on another celestial body, near the South Pole of the Moon.
    4. Wider setting: The meeting advanced civil and commercial space cooperation under a strategic technology initiative aligned with the February 2025 Joint Leaders’ Statement.

    What are the Artemis Accords?

    1. Definition: The Artemis Accords are a United States led set of non binding principles to govern the peaceful civil exploration and use of outer space, including the Moon.
    2. India’s role: India signed the Accords in 2023 as the 27th country, and a total of 70 countries are now part of them.
    3. Relevance: The Moon Base invitation and agreed open scientific data sharing are being pursued under this framework.

    What deepening ties does the invitation reflect?

    1. NISAR mission: The two agencies last year launched the NASA and ISRO Synthetic Aperture Radar (NISAR) mission, a dual frequency radar satellite and a first of its kind joint venture.
    2. Human spaceflight: An Indian astronaut flew to the International Space Station in 2025 through an Axiom mission, a result of a strategic framework for human spaceflight cooperation.
    3. Data cooperation: Both sides agreed to advance open scientific data sharing and discussed joint missions to the Moon and beyond.
    4. Outer space governance: They reaffirmed commitment to United Nations guidelines on the long term sustainability of outer space activities.

    What are India’s own lunar and human spaceflight programmes?

    1. Gaganyaan: ISRO is pursuing its human spaceflight programme to send Indian astronauts to low Earth orbit.
    2. Moon landing target: India has stated plans to achieve a human landing on the Moon by 2040.
    3. Chandrayaan legacy: India’s earlier lunar missions established its capability, including a South Pole region landing.
    4. Complementary strengths: NISAR’s success is seen as a base for more complex joint missions, including the lunar base and human spaceflight.

    Back2Basics: NISAR Mission

    1. Full form: NASA and ISRO Synthetic Aperture Radar mission.
    2. Nature: A joint Earth observation satellite using dual frequency radar, a first of its kind.
    3. Purpose: Monitors changes in land surface, ice sheets, ecosystems and natural hazards.
    4. Significance: Regarded as a landmark joint venture that could enable more complex India and United States space missions.

    Government Initiatives / Programmes in Indian Space

    1. Gaganyaan: India’s human spaceflight programme to send astronauts to low Earth orbit.
    2. Chandrayaan Programme: Series of lunar missions advancing India’s Moon exploration.
    3. IN-SPACe: Regulator and promoter enabling private sector participation in space.
    4. Indian Space Policy 2023: Framework opening the sector to non governmental entities.

    Key Facts about India and Global Space Cooperation

    1. Artemis signatory: India was the 27th country to sign the Artemis Accords in 2023, now numbering 70 countries.
    2. Working group: The invitation came at the ninth India and United States Civil Space Joint Working Group in Bengaluru.
    3. Moon landing goal: India targets a human landing on the Moon by 2040.
    4. South Pole focus: The Moon Base aims for humanity’s first outpost near the lunar South Pole.

    “[2016] Consider the following statements: The Mangalyaan launched by ISRO

    1. is also called the Mars Orbiter Mission

    2. made India the second country to have a spacecraft orbit the Mars after USA

    3. made India the only country to be successful in making its spacecraft orbit the Mars in its very first attempt

    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

  • Rural skilling programme trainees not getting jobs, says panel

    Why in News

    A Parliamentary Standing Committee flagged a major gap between training and employment under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), highlighting low wages, poor retention and distress migration.

    What is DDU-GKY?

    • Ministry: Ministry of Rural Development.
    • Launched: 2014.
    • Target: Poor rural youth aged 15–35 years.
    • Nature: Placement-linked skill development scheme.
    • Training providers are assessed on training, placement and post-placement retention.
    • Implemented through Project Implementing Agencies (PIAs).

    Key Findings of the Committee

    • 18.38 lakh youth trained and 11.94 lakh placed as of March 2026.
    • Low wages and relocation costs lead to early job exits.
    • 9.65 lakh women trained and 6.03 lakh placed.
    • PIAs focus more on initial placement than sustained employment.

    Major Challenges

    • Skill-training does not match labour market demand.
    • Poor training quality and infrastructure.
    • Low wages reduce job retention.
    • Migration creates financial and social pressures.
    • Weak post-placement tracking.

    Committee Recommendations

    • Near 100% placement tracking.
    • Mandatory industry linkages and local placement drives.
    • District-level placement cells.
    • Migration assistance, mentorship and retention support.
    • Assess PIAs on sustained employment, not just initial placement.
    • Set and monitor minimum wage employment targets.

    Skill Development Initiatives

    • Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
    • DAY-NRLM
    • Rural Self Employment Training Institutes (RSETIs)
    • Startup Village Entrepreneurship Programme (SVEP)
    • Skill India Digital

    [2023, GS2, 15 marks] Skill development programs have succeed in increasing human resources supply to various sectors. In the context of the statement analyze the linkages between education, skill and employment.”

    [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?

    [a] 1, 2, and 3

    [b] 1 and 3 only

    [c] 2 only

    [d] 2 and 3 only

  • Centre approves 1 billion Rs 10, Rs 20 polymer banknotes

    Why in News?

    Government approved 1 billion polymer notes each of ₹10 and ₹20 for field trials, following an RBI proposal under Section 25 of the RBI Act, 1934.

    What are Polymer Banknotes?

    • Made from a thin plastic film instead of cotton-paper.
    • More durable, moisture-resistant and hygienic.
    • Offer enhanced anti-counterfeiting features.
    • Have a longer circulation life, reducing replacement needs.

    Government Approval

    • Denominations: ₹10 and ₹20.
    • Quantity: 1 billion each.
    • Will circulate alongside paper notes.
    • Regular issuance will depend on successful field trials.
    • Procurement is at an initial stage, so cost and timeline are not yet fixed.

    Why Polymer Notes?

    • Longer life → lower replacement costs.
    • Higher security → difficult to counterfeit.
    • Better durability → resistant to dirt, water and wear.
    • Global precedent → used by several countries.

    Currency Management: Key Facts

    • RBI: Sole issuer of banknotes, except ₹1 note.
    • Government of India: Issues coins and ₹1 note.
    • Section 22, RBI Act: RBI’s sole right to issue banknotes.
    • Section 24: Specifies permissible denominations.
    • Section 25: Design, form and material require Central Government approval on RBI recommendation.
    • Coinage Act, 2011: Governs coins and ₹1 note.

    Back2Basics: RBI

    • Established under RBI Act, 1934; began operations in 1935.
    • Nationalised in 1949.
    • Functions as India’s central bank and monetary authority.
    • Manages currency, monetary policy, banking and payment systems.

    [2025] Which of the following are the sources of income for the Reserve Bank of India?
    I. Buying and selling Government bonds
    II. Buying and selling foreign currency
    III. Pension fund management
    IV. Lending to private companies
    V. Printing and distributing currency notes
    Select the correct answer using the code given below.

    [A] I and II only

    [B] II, III and IV

    [C] I, III, IV and V

    [D] I, II and V

  • Govt extends PM E-DRIVE scheme timeline, sop halved

    Why in the news?

    The Centre has extended the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme for electric two wheelers till 31 March 2028 and halved the per unit incentive to Rs 2,500 per kilowatt hour from Rs 5,000 earlier. The move signals a planned tapering of demand support as electric two wheeler costs fall and the market matures.

    What is the PM E-DRIVE Scheme?

    1. What it is: PM E-DRIVE is the central scheme providing demand incentives and support infrastructure for electric mobility, administered by the Ministry of Heavy Industries. It succeeds the earlier FAME programme as the main demand side push for electric vehicles.
    2. Outlay and duration: It carries an outlay of Rs 11,900 crore and is implemented from 1 April 2024 till 31 March 2028.
    3. Two wheeler support: For electric two wheelers, the scheme sets a total fund support of Rs 2,767 crore from the Ministry of Heavy Industries.

    What has changed?

    1. Timeline extended: The electric two wheeler segment has been extended till 31 March 2028.
    2. Incentive halved: The per unit incentive is cut to Rs 2,500 per kilowatt hour from Rs 5,000 per kilowatt hour earlier.
    3. Per vehicle cap lowered: The incentive is capped at Rs 5,000 per vehicle, down from Rs 10,000 per vehicle in FY 2024-25.
    4. Eligibility window: Registered electric two wheelers can avail the Rs 2,500 per kilowatt hour incentive for the period between 1 April 2025 and 31 March 2028.
    5. Price ceiling: The maximum ex factory price for an electric two wheeler to qualify is Rs 1.5 lakh.
    6. Lower of two limits: The incentive is limited to the specified cap or 15 per cent of the ex factory price of the electric two or three wheeler, whichever is lower, and is subject to periodic review as vehicle costs fall.

    Back2Basics: PM E-DRIVE Scheme

    1. Ministry: Ministry of Heavy Industries.
    2. Launch year: 2024, implemented from 1 April 2024 to 31 March 2028.
    3. Outlay: Rs 11,900 crore.
    4. Aim: Accelerate adoption of electric vehicles and build charging and testing infrastructure.
    5. Beneficiaries: Buyers of electric two, three, and heavier vehicles, state transport undertakings, and charging infrastructure providers.

    Government Initiatives for Electric Mobility

    1. FAME India (Phase I and II): Earlier demand incentive scheme for electric and hybrid vehicles.
    2. PLI Auto Scheme: Production Linked Incentive for advanced automotive technology products.
    3. PLI ACC Battery Scheme: Incentive for domestic advanced chemistry cell battery manufacturing.
    4. Vehicle Scrappage Policy: Phasing out unfit vehicles to spur cleaner replacements.
    5. e-AMRIT portal: A one stop information platform on electric vehicles.

    Key Facts about PM E-DRIVE

    1. Successor scheme: PM E-DRIVE succeeds FAME II as the flagship electric mobility scheme.
    2. Incentive metric: Support is calculated per kilowatt hour of battery capacity.
    3. Segment coverage: Covers electric two wheelers, three wheelers, buses, trucks, and ambulances, plus charging infrastructure.

    Challenges to Electric Vehicle Adoption

    1. Charging infrastructure gap: Public charging networks remain thin outside major cities.
    2. Battery import dependence: Reliance on imported cells and critical minerals raises cost and supply risk.
    3. High upfront cost: Purchase prices stay above comparable petrol vehicles despite incentives.
    4. Range and grid strain: Range anxiety and grid readiness limit uptake in some segments.
    5. Recycling burden: End of life battery disposal needs robust recycling systems.
    6. Incentive dependence: Demand remains sensitive to the level and continuity of subsidies.

    “[2023, GS3, 15 marks] The adoption of electric vehicles is rapidly growing worldwide. How do electric vehicles contribute to reducing carbon emissions and what are the key benefits they offer compared to traditional combustion engine vehicles?”

    [2025] With reference to India, consider the following pairs: Organization Union Ministry
    1. The National Automotive BoardMinistry of Commerce and Industry
    2. The Coir BoardMinistry of Heavy Industries
    3. The National Centre for Trade
    InformationMinistry of Micro, Small and Medium Enterprises
    How many of the above pairs are correctly matched?

    [A] Only one

    [B] Only two

    [C] All the three

    [D] None

  • As AI threat loomed, UPI players flagged rising security costs

    Why in News?

    UPI platforms have flagged rising cybersecurity costs, especially from AI-enabled fraud, renewing demands to allow Merchant Discount Rate (MDR) on UPI.

    What is MDR?

    • MDR: Fee paid by merchants to banks/payment providers for processing digital payments.
    • UPI: MDR is currently zero, so merchants pay no transaction fee.
    • Costs are borne by banks, payment apps and government reimbursements.

    Why are Security Costs Rising?

    • AI-enabled fraud can make sophisticated cyberattacks cheaper and easier.
    • Security accounts for 20%+ of UPI platform costs.
    • Security infrastructure costs around 10 to 20 paise per transaction.
    • Dependence on imported AI/cloud tools adds dollar and currency risks.
    • Rising transaction volumes keep security expenditure high.

    Why Allow MDR?

    • UPI infrastructure is not costless and someone must bear its cost.
    • Reduces dependence on uncertain government subsidies.
    • Provides dedicated funding for cybersecurity and system resilience.

    Concerns

    • Fees on small-value transactions could push users back to cash.
    • Higher costs may disproportionately affect price-sensitive consumers.
    • Poorly designed MDR could weaken UPI’s role as a public digital infrastructure.
    • Foreign AI security tools create strategic and currency dependence.

    UPI: Back2Basics

    • UPI: Real-time interbank payment system developed by NPCI.
    • Enables instant P2P and P2M payments.
    • NPCI: Umbrella organisation for India’s retail payment systems, established in 2008.
    • Key systems: UPI, RuPay, IMPS, BBPS and FASTag.
    • Regulated by RBI under the Payment and Settlement Systems Act, 2007.

    “[2026] Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is NOT correct?

    (a) UPI is a real-time payment system but Digital Rupee is akin to sovereign paper currency

    (b) In case of UPI, settlement for end users happens instantly; in case of Digital Rupee, wallet balance gets transferred to another wallet (no traditional settlement)

    (c) UPI transactions are recorded by banks and reflected in bank statements; in case of Digital Rupee, no data is captured in bank statements

    (d) In both the cases (UPI and Digital Rupee), the liability lies with the users and their respective banks

  • India’s first privately-built FFSC rocket engine signals a new dawn in space flight

    Why in the News

    Bengaluru-based Astrobase Space Technologies unveiled EVEREST, India’s first privately built 800 kN Full-Flow Staged Combustion (FFSC) LOX-Methane engine on 7 August 2026. India is now the fourth country after Russia, the US and China with FFSC technology.

    What is an FFSC Engine?

    1. About: An advanced liquid rocket engine architecture offering high thrust and efficiency.
    2. Full-flow: Fuel and oxidiser pass through separate pre-burners, driving turbopumps before entering the main chamber.
    3. Advantage: Almost all propellant contributes to thrust, improving efficiency and reusability.

    What is LOX-Methane?

    • LOX: Liquid Oxygen as oxidiser.
    • Methane: Fuel that burns relatively cleanly, reducing engine deposits and aiding faster refurbishment and turnaround.

    What is IN-SPACe?

    • Indian National Space Promotion and Authorisation Centre, an autonomous agency under the Department of Space.
    • Acts as a single-window agency to promote and authorise private space activities.
    • Astrobase received support through its Technology Adoption Fund.

    Why is EVEREST Significant?

    1. Technology: Makes India the 4th FFSC-capable nation.
    2. Reusability: Suitable for reusable launch vehicles with precise throttle control.
    3. Capacity: Could enable reusable systems carrying up to 30 tonnes to LEO.
    4. Manufacturing: Uses advanced manufacturing, including large-scale 3D printing.
    5. Timeline: Development began in 2024; integrated hot-fire tests are planned at Anantapur, with first flight targeted for December 2028.

    Global Comparison

    • Russia: Pioneer in FFSC technology.
    • USA: SpaceX’s Raptor is the only operational FFSC engine.
    • China: LandSpace has developed a commercial high-thrust FFSC engine.
    • India: EVEREST marks its entry into FFSC technology.

    Private Space Sector in India

    • 2020 reforms: Opened space activities to private players through IN-SPACe.
    • Indian Space Policy 2023: Enables greater private participation across the space value chain.
    • NSIL: Commercial arm of the Department of Space.
    • Firms such as Skyroot Aerospace and Agnikul Cosmos are developing indigenous launch technologies.

    “[2026] Consider the following statements about involvement of private entities in India’s space programme:

    1. IN-SPACe is an autonomous agency formed to facilitate participation of private entities.

    2. Agnikul Cosmos launched the world’s first flight using 3D-printed rocket engine.

    3. Skyroot Aerospace has developed liquid fuel for GSLV.

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 2 only

    (d) 1, 2 and 3